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Thursday, 3 September 2009

Media Alert: "An Existential Threat": The US, Israel & Iran

On August 26, the Guardian newspaper published an article titled, ‘US takes on Israeli-Palestinian conflict and Iran's nuclear programme in one massive gamble.’ Julian Borger and Ewen MacAskill told readers:

“The Obama administration's approach to two of the world's most intractable and dangerous problems, the Israeli-Palestinian conflict and Iran's nuclear programme, is to link them together in the search for a solution to both.

“The new US strategy aims to use its Iran policy to gain leverage on Binyamin Netanyahu's government.”

The “Iran policy” is based on US Secretary of State Hillary Clinton’s threat of “crippling sanctions” against Iran. (BBC online, ‘Israel-US settlement deal “close”’, Analysis by Jeremy Bowen, August 26, 2009; http://news.bbc.co.uk/1/hi/world/middle_east/8221559.stm)

The sanctions threat is to ensure that Iran does “not compromise on uranium enrichment by the end of next month.” The Guardian told its readers that not only are sanctions supposed to pre-empt any Israeli military action against Iran, “they are also a bargaining chip offered in part exchange for a substantial freeze on Jewish settlements in the West Bank.” The paper quoted one official “close to the negotiations”:

"The message is: Iran is an existential threat to Israel; settlements are not."

So much for Obama’s much-hailed Cairo speech in June 2009 in which he promised a “new beginning between the United States and Muslims around the world.” (‘Obama speech in Cairo’, Huffington Post, June 4, 2009; http://www.huffingtonpost.com/2009/06/04/obama-speech-in-cairo-vid_n_211215.html)

The Guardian article presented the US as a valiant peace-seeker:

“The Obama administration is setting out to juggle two potentially explosive global crises, while walking the tightrope of a shaky and nervous global economy. It is not going to be easy, but Washington appears to have decided it has no option but to try.” (Borger and MacAskill, op. cit.)

This is a deeply misleading picture of the US in the Middle East and the wider world, as we have often explained in our books and in media alerts. We are to believe that the world’s number one rogue state is searching for benign solutions to the world’s most “intractable problems”. This fiction is standard in corporate media coverage.

As the independent journalist Jonathan Cook commented to us:

“This analysis in yesterday's Guardian is almost a masterclass in how the liberal media unthinkingly reflect elite priorities." (Jonathan Cook, email, August 27, 2009)

But then the Guardian has form. Recall, as one of many examples, the front-page story in May 2007 claiming that Iran had secret plans to wage war on, and defeat, US forces in Iraq by August 2007. (Simon Tisdall, ‘Iran’s secret plan for summer offensive to force US out of Iraq’, Guardian, May 22, 2007). The bogus claim was based almost solely on unsupported assertions: ‘US officials say’; ‘a senior US official in Baghdad warned’; ‘the official said’; and so on. There were fully 26 references to official pronouncements with no scrutiny, balance or counter-evidence. The high-profile Guardian piece was little more than a Pentagon press release. It was a particularly onerous and blatant example of propaganda. But Guardian reporting on the Middle East is routinely restricted to an established framework that accepts uncritically the stated intentions of US power.


A Challenge To Face-Value Guardian “Journalism”

We wrote to the Guardian’s diplomatic editor, Julian Borger, on August 28:

Hello Julian,

Hope all’s well there. I’m sorry to say your article on Tuesday was poor journalism. [1]

Your analysis took Washington’s stated policies and motivations at face value. Why did you stick to the Israeli and Washington view of Iran’s nuclear programme - a legal, civilian nuclear programme - as one of “the world’s most intractable and dangerous problems”?

On the issue of Middle East peace, you give two “expert” opinions, both from people closely associated with the pro-Israel lobby in Washington. Superficially, your article might look balanced; but it is not.

The article asserts that:

“Washington’s plan to link two intractable problems raises international hopes of deal to restart the Middle East peace process.”

But an honest analysis would note that for the past 30 years “the Middle East peace process” has largely been a sham. Throughout that period, the US has consistently opposed the international consensus on a peaceful solution. Instead, the US has consistently provided valuable cover for Israel – militarily, diplomatically, economically – in evading its obligations under international law. Genuine peace in the region is actually a threat to an Israeli programme of illegal occupation and expansion that can be achieved only through violence under cover of war, conflict and the crushing of Palestinian human rights. [For more details and background references, see Chapter 9 of ‘NEWSPEAK in the 21st Century’, David Edwards and David Cromwell, Pluto Press, 2009.]

And you twice mention Iraqi “sanction-busting”. But you are silent about the sanctions themselves which directly contributed to the deaths of over one million Iraqis between 1990-2003; half a million of them were children under the age of five. Hans von Sponeck, the former UN humanitarian coordinator in Baghdad, documented the effect of the UN sanctions regime, maintained with cruelty by Washington and London, in ‘A Different Kind of War’: a book which the Guardian appears to have totally ignored.

Why did you quote nobody with the above widely-held rational views?

Why, instead, was your analysis so one-sided? Why so skewed towards the propaganda framework favoured by the US and Israel?

Regards,

David Cromwell


Reference

[1] Julian Borger and Ewen MacAskill, ‘US takes on Israeli-Palestinian conflict and Iran's nuclear programme in one massive gamble’, Guardian online, August 25 [August 26 in print version], 2009; http://www.guardian.co.uk/world/2009/aug/25/us-obama-israel-palestine-iran

We have received no response from the Guardian.

SUGGESTED ACTION

The goal of Media Lens is to promote rationality, compassion and respect for others. If you do write to journalists, we strongly urge you to maintain a polite, non-aggressive and non-abusive tone.

Julian Borger, Guardian’s diplomatic editor
Email: julian.borger@guardian.co.uk

Ewen MacAskill, Guardian’s Washington DC bureau chief
Email: ewen.macaskill@guardian.co.uk

Please copy to:

Alan Rusbridger, Guardian editor
Email: alan.rusbridger@guardian.co.uk

Siobhain Butterworth, Guardian readers’ editor
Email: reader@guardian.co.uk

Please also send a copy of your emails to us.
Email: editor@medialens.org

Please do NOT reply to the email address from which this media alert originated. Please instead email us:
Email: editor@medialens.org

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Tuesday, 1 September 2009

Wall Street Rules: The Bernanke Reappointment

The reappointment of Ben Bernanke as Chairman of the Federal Reserve -- cleverly timed to defuse the news of burgeoning federal deficits -- was preordained. The "markets" demanded it, and as James Carville noted, when the markets speak, presidents listen. (Carville, shocked at how Bob Rubin's arguments about the markets trumped all Clinton campaign pledges, exclaimed: "I used to think if there was reincarnation, I wanted to come back as the president or the pope or a .400 baseball hitter. But now I want to come back as the bond market. You can intimidate everybody.")

The conventional wisdom holds that Bernanke's reappointment is well-deserved. Officially, we are told the recovery is beginning. Bernanke is credited for the bold, inventive and unprecedented wielding of the power of the Federal Reserve to stave off a depression. And now, as the Fed faces the next perilous months, it is hard to imagine anyone else entrusted with the job. Or as the more cynical suggest, Bernanke helped create the mess, it is only right that he be charged with cleaning it up.

But before the Senate bestows upon Bernanke the reverence once reserved for Alan Greenspan, some basic questions should be posed. Senator Chris Dodd, chair of the Senate Finance Committee, has a particular stake in challenging Bernanke about what he has learned from the past desperate months as well as what he intends for the next years. Consider.

1. What do you know now that you didn't know then?

Before the crisis, Bernanke served as Sancho Panza to Alan Greenspan's Don Quixote, extolling the virtues of deregulation, lauding the ability of markets to self-regulate, celebrating the strength of our banking system, seconding Greenspan as he jousted with imagined inflation while oblivious to the housing bubble, orgiastic greed and gambling, and predatory lending that constituted real and present dangers. Greenspan has now admitted that he was blinded by a "mistaken" set of beliefs. How has the crisis disabused Bernanke of his ideological predilections? How, in concrete ways, has it changed his views about how the economy works, and about the role of regulation and regulators in curbing Wall Street's excesses?

2. Why shovel trillions into the banks and finance houses and ask nothing of them for the American people?

Once the Federal Reserve belatedly awoke to the severity of the crisis, Bernanke joined with Treasury Secretary Paulson, and former New York Federal Reserve Bank president (now Treasury Secretary) Tim Geithner in cobbling together a series of ad hoc emergency measures to stave off financial collapse. Mistakes -- like letting Lehman go belly up -- were made, but that was to be expected since they had to make it up as they went along. For this, Bernanke deserves the thanks of a grateful nation and world.

But the Senate should press the Chairman on how he defends the terms of the deals, and what he would do now to change them.

Essentially, Bernanke, Geithner and Paulson flooded the financial system with dollars, about two trillion and still counting. They chose to resuscitate essentially bankrupt banks, not take them over and reorganize them. They asked little or nothing from the banks in return -- no requirements on lending, no marking of toxic paper to market, no change in business models or compensation schemes, no changes in management.

So now, the banks are officially said to be "healing." But they still are burdened with toxic paper; they still aren't doing much lending. People are still losing their jobs and their homes, credit card and commercial defaults remain at high levels. And the most aggressive of the investment houses seem to be headed back to the old ways. Goldman Sachs shamelessly announces that it is putting aside several billion for bonuses, based on profits largely from computerized gambling essentially with taxpayers' money.

Why not "resolve" the banks rather than just try to resuscitate them? Why not require changes in compensation schemes, limits on exotic trading and securities, mandates to return to the essential business of lending money to Main Street? Why not force changes in management to hold people accountable for their catastrophic actions?

3. If you are going to spend our money, why can't we see the books?

In the emergency, the Federal Reserve has revealed its power to put literally trillions into the economy without a vote of Congress. This untrammeled power was vital in the crisis, and is utterly corrosive in a democracy, particularly in an insulated institution that sees itself as Wall Street's protector. Bernanke has opposed a bi-partisan effort by the Congress to get an audit of the Fed's books, so that Congress could learn where the money went.

Senator Dodd should make himself the tribune of the American people here. Why should the Fed have this power? How can it be made more accountable to Main Street than Wall Street? Why should its books not be audited? Would Bernanke support the creation of a Congressional Finance Office to give Congress independent advice on the Fed and the financial community, as the Congressional Budget Office provides on the budget?

4. If you don't know where you are going, you are likely to end up in the wrong place. (from the existential philosopher, Yogi Berra)

Going forward, President Obama has stated that we can't go back to the old economy where finance captured 40% of the nation's profits. To achieve that, the banking sector should be smaller and strictly regulated. The casino should be shut down. Banking should return to the boring profession of taking deposits and distributing loans.

Yet thus far the emergency policies have consolidated the banking sector, subsidized the big guys, increased concentration, and done little to reform practices, protect consumers, curb dangerous compensation schemes, or outlaw exotic securities. The bankers have responded to even the meekest of reform proposals with full court lobbying, arguably using some of the money taxpayers provided to lobby against the protections that taxpayers desperately need.

How does Bernanke propose we get finance under control? Does he agree with Obama that the financial system must be smaller and more constrained? How would he propose to do that?

5. Why should we reward failure with more authority?

The Federal Reserve had significant powers to regulate the housing market, to crack down on predatory lending, to curb the speculative excesses of the banking sector. Yet under Greenspan and Bernanke, those powers went unused Bernanke argued forcefully that the Fed should not act to counter asset bubbles, echoing Greenspan that it was easier to clean up the messes after they burst. Clearly the last months have punctured that illusion. But Bernanke continues to argue that the Federal Reserve play the lead role in regulating the banks, assessing systemic risk, overseeing those institutions deemed "too big to fail."

Why? Why should the Fed, Wall Street's instrument from its inception, pretend to be an effective cop on the financial beat? Why not leave it to do monetary policy, and assign regulation to independent agencies more accountable to the Congress? Why would we reward failure by increasing the Fed's powers? Shouldn't Congress enforce anti-trust policies to insure that no institution is ever too big to fail, rather than trying to regulate such institutions? Why not have an independent agency tasked with protecting consumers from predatory financial practices?

6. What has the Fed learned from Japan's mistakes?

As Bill Greider and Paul Krugman have argued, the US looks more and more like Japan in its lost decade. Here, as in Japan, the major insolvent banks were subsidized, not reorganized. They remain weak, reluctant to lend, a heavy weight on the economy. As in Japan, the "green shoots" of recovery have been watered by heavy deficit spending, but political opposition is growing to taking on more debt. In Japan, when the economy would show signs of growth, worried politicians would cut spending, and the economy would sink again. The result was a decade of stagnation, until finally the Japanese garnered the gumption to restructure the banks -- and were able to export into America's bubble.

Bernanke should be pressed: Aren't the major banks in their present condition likely to remain a drag on any recovery? How will we avoid a decade of stagnation? What will provide the source of growth, since we can't relay on exports to the US?

Ben Bernanke has performed valiantly in an unprecedented crisis. But save the laurels for later; the Senate should grill him, not deify him. He was wrong about deregulation of financial markets, blind to the dangers of the housing bubble, wrong about its impact on the real economy once it burst, slow in seeing the recession coming. We need to know how his core beliefs have changed given that reality.

And his bold steps to stave off the crisis have reflected the many of the same ideological predispositions - reluctance to take over and reorganize the major banks, unwillingness to force heads to roll, opposition to mandates on the banks that were bailed out, insistence on preserving the powers and the prerogatives of the "Temple." A crisis, it is said, changes everything. We now know that the Fed has powers far beyond the mysteries of monetary policy. The Chairman can no longer hide behind opaque language, or argue that the mysteries of the Temple must be preserved. The Chairman has been revealed as the second most, if not the most powerful figure in Washington. So, before the Senate gives its consent to his reappointment, Senator Dodd, Chair of the Finance Committee, should insist that we learn learn how Mr. Bernanke's beliefs have changed, and how he would change his policies going forward.



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Facts and Understanding Are Often In Conflict

Living In a Culture of Delusion Leads to Denial, Ignorance and Worse
By Danny Schechter

What do we have a right to know? In this web-based age, where we can Google almost everything, you’d think we would be better informed than we are.

We have Freedom of Information acts and a President who has promised transparency, offering some details on what he’s doing on an easy to access website. And yet, there is much more that we still don’t know, and maybe never will.

At long last a report on CIA abuse of detainees came out, but years after the fact, and in a heavily “redacted” form – i.e. censored. Already the prosecutor chosen to prosecute says there’s not enough information there to do so.

The President’s “Pay Czar” is afraid to release what he’s found out about corporate compensation for fear it might lead, heaven forbid, to naming “targets of populist anger.” Reuters reports:

“Kenneth Feinberg has said he is uncertain how much information will be made public. Privacy laws and fears that highly compensated executives will become targets for populist anger argue for limiting such disclosure.

Feinberg, speaking on Martha’s Vineyard on August 16 in his only public remarks since becoming President Obama’s point-man on executive pay, called the issue of disclosure ‘a serious problem.’

‘There is a tension between not wanting to put on the front page of every newspaper in the country the specific compensation packages of these individuals… versus the public’s right to know,’ he said.”

What are they afraid of? Apparently embarrassing protest. Here’s the worry cited: an earlier disclosure sparked criticism of Treasury Secretary Timothy Geithner “and prompted left-leaning groups to organize bus tours to visit the homes of AIG employees.”

OMG, Oh no!

Finally, a judge is ordering the Federal Reserve Bank to reveal information it has insisted on keeping secret. That’s a good thing. Bloomberg reports:

“Manhattan Chief U.S. District Judge Loretta Preska rejected the central bank’s argument that the records aren’t covered by the law because their disclosure would harm borrowers’ competitive positions. The collateral lists ‘are central to understanding and assessing the government’s response to the most cataclysmic financial crisis in America since the Great Depression,’ according to the lawsuit that led to yesterday’s ruling.”

Of course, the absence of information, pervasive media misinformation and the spin control exercised by powerful lobbies influences what people know, think and think about. Or, more likely, don’t think about!

It is even worse than that. Sometimes, we cling to beliefs even when they are not true, there seems to be a need to believe, facts be dammed.

James Howard Kuntsler has been tracking the financial decline. He writes, “The key to the current madness, of course, is this expectation, this wish, really, that all the rackets, games, dodges, scams, and workarounds that American banking, business, and government devised over the past thirty years – to cover up the dismal fact that we produce so little of real value¬ these days – will just magically return to full throttle, like a machine that has spent a few weeks in the repair shop. This is not going to happen, of course.”

Sounds right, but will people who so want the economy to miraculously bounce back accept this reality or do they prefer our state of denial?

A new study even says that many of us lean to comfortable truths, and reject uncomfortable ones. One journal reports:

“In a study published in the most recent issue of the journal Sociological Inquiry, sociologists from four major research institutions focus on one of the most curious aspects of the 2004 presidential election: the strength and resilience of the belief among many Americans that Saddam Hussein was linked to the terrorist attacks of 9/11. Although this belief influenced the 2004 election, they claim it did not result from pro-Bush propaganda, but from an urgent need by many Americans to seek justification for a war already in progress.

The findings may illuminate reasons why some people form false beliefs about the pros and cons of health-care reform or regarding President Obama’s citizenship, for example.

The study, ‘There Must Be a Reason: Osama, Saddam and Inferred Justification’ calls such unsubstantiated beliefs ‘a serious challenge to democratic theory and practice’ and considers how and why it was maintained by so many voters for so long in the absence of supporting evidence.”

So, our culture not only forges consciousness but also manufactures false consciousness.

Take the idea of equality. We think our country is embracing more equality when, in fact, facts point in another direction, i.e. towards more economic inequality.

Writing in the London Review of Books, Walter Benn Michaels challenges our illusions in an essay on “Who Cares about the White Working Class?” edited by Kjartan Páll Sveinsson:

“An obvious question, then, is how we are to understand the fact that we’ve made so much progress in some areas while going backwards in others. And an almost equally obvious answer is that the areas in which we’ve made progress have been those which are in fundamental accord with the deepest values of neoliberalism, and the one where we haven’t isn’t.

We can put the point more directly by observing that increasing tolerance of economic inequality and increasing intolerance of racism, sexism and homophobia – of discrimination as such – are fundamental characteristics of neoliberalism. Hence the extraordinary advances in the battle against discrimination, and hence also its limits as a contribution to any left-wing politics. The increased inequalities of neoliberalism were not caused by racism and sexism and won’t be cured by – they aren’t even addressed by – anti-racism or anti-sexism….

Thus the primacy of anti-discrimination not only performs the economic function of making markets more efficient, it also performs the therapeutic function of making those of us who have benefited from those markets sleep better at night.”

The fight for transparency and more information is critical, but it has to be accompanied by an effort to explain the facts and connect the dots to find truth. Otherwise, we will continue to live a world of delusions. See Chris Hedges new book, Empire of Illusion for a plethora of detail.

– News Dissector Danny Schechter edits Mediachannel.org. He is making a film and finishing a book on the financial crisis as a crime story. Comments to dissector@mediachannel.org



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2014: a media odyssey

As the pace of change in media continues to gather momentum, Suzy Bashford looks into the future to assess where the industry will be in five years' time

2014: a media odyssey

Imagine a world where outdoor posters can recognise your face and address you personally. Where you can update your Twitter feed as you watch TV and the morning commute is a sea of people reading Metro on their Amazon Kindle.

Sound far-fetched? These are all trends the futurologists and experts consulted by Media Week on the following pages believe will be commonplace in the next five years.

Think back to 2004: you would have been laughed out of the pub if you had brought up the subject of tweeting, and you couldn't have discussed what you watched on the iPlayer last night - because it didn't exist, and neither did Facebook, Spotify or the iPhone.

Even the now-ubiquitous Google had only just arrived 10 years ago. Mark Howe, Google's country sales director, says: "There's no way anyone would have had any concept of search becoming so big. Similarly, as we forecast now, there will undoubtedly be another entrant to the community that no one is getting their heads around at this point in time."

But although media changes at breakneck speed, and it is impossible to predict which start-ups will produce the next 20-something billionaire and which will fade into media obscurity - remember Second Life? - experts agree on a couple of points. One, media will continue to rapidly converge and two, technology will enable channels to gather more data on consumers so advertisers can relate to customers more intelligently.

Richard Titus, chief executive at Associated Northcliffe Digital, believes advertisers' information will soon be so compelling, there will be no difference between editorial and advertising.

He says: "This delights me, because advertising will be less shouting and more talking, but terrifies me, because we won't know the agenda of the person speaking to us."

Consumers will also become more reliant on recommendations from sources they trust. Professor Stephen Heppell, futurologist at Bournemouth University, says: "We are living in a people century and a sense of belonging will become ever-more important. Brands will have to reinvent themselves as memberships, communities and clubs that value people's contributions."


The internet

The internet will become the glue that holds all the other media channels together.

Ed Stivala, managing director at N3W Media, says: "Over the next five years, the internet will become a utility in our lives, in the same way that you purchase water and power."

Stivala imagines a future where your alarm clock will wake you according to how congested the roads are for your commute to work, and your car automatically maps out fuel stops. He adds: "Your virtual diary will keep track of your shopping list and whether you are planning to watch any cookery TV programming that week. You will no longer need to think about when you need to visit the supermarket, because your virtual diary will schedule it."

The internet will also become a moveable feast, increasingly accessed on the go. Google's Howe believes this means voice search will become "significantly more prevalent". He says: "We're testing it now. You search via voice into a smartphone and you get the results by voice, text or image. Users will be able to ask a question into their mobile and we will provide the most relevant answer, depending on what the algorithm says."


Gaming

The internet will continue to have a seismic effect on gaming. "The web will expand and enrich the gaming experience," says Jim McNiven, founder of specialist gaming agency Kerb Games. "The website will sit at the hub of the game, tying together a selection of interrelated games across a variety of different platforms and devices."

McNiven explains how this might happen, using the example of Grand Theft Auto. He says: "A fan of the game can log in from work to play for short bursts throughout the day, using their Facebook Connect ID. Within the site he communicates with other gamers and his progress is relayed to his social network accounts to prompt his friends to get involved.

"On his commute home, he can play a series of missions on his PSP or his mobile handset. These will be mini-games that make use of GPS and use the camera as an augmented reality device. These missions will be supported by intelligent billboard ads in the real world from which he can glean useful information to progress in the game."

Ian Pearson, futurologist at Futurizon, believes gaming will become "the point of convergence for other media", enabling players to download video, stream music, form communities and experience new technology, such as augmented reality. He predicts: "There will be growing convergence between gaming and social media."


Social media

James Kirkham, director of digital agency Holler, forecasts that new social media sites will spring up around niches and specialist interests, and that social media will become "a part of everything". He says: "You will constantly access Facebook and Twitter on your smartphone, you will be able to simultaneously watch TV, give your friends a status update and share comments with them alongside the programme."

As people get used to continually talking about their lives, brands will have to be far more transparent. Matthew Yeomans, chief consultant at digital agency Radar DDB, comments: "Companies will need to have a dynamic voice and tell their story. In five years' time, most companies will have an interactive customer services division - along the lines of Twitter -through which they can have a conversation with customers."

Location-based technology will evolve social networks still further. Robin Grant, managing director of social media agency We Are Social, predicts: "Imagine you are out with a group of friends. You will be able to take a photo of where you are and post it on Facebook. The photo will automatically be geotagged and tell your friends where you are and how they can get there."


Mobile

Location-sensitive information, alongside a constant connection to the internet, will revolutionise mobile media.

Google's Howe comments: "The one thing that will absolutely change the face of consumer interaction will be mobile. Mobile will be key to the growth of search, video and social media on the web. We already know that when someone adopts an iPhone or GPhone, their search activity increases more than 50 times."

Howe predicts that mobile technology linking consumers' location to shops will become commonplace - such as Google's Compare Anyway application, which allows consumers to scan a product and gives them maps of where they can buy it. He says: "These kinds of applications could change the face of consumers' interactions with retailers."

Todd Tran, managing director of WPP's mobile division Joule, imagines a future where a consumer points their camera phone at a cinema and is instantly given show times and the option to purchase tickets. "Image interactivity is in its infancy, but in the future, you will be able to point your camera phone at a car to receive a whole host of information about it, such as video and images. The future of search is not word search, but image search."

Tran also predicts the mobile will be used as a remote control phone - it will unlock your car, turn on the radio, unlock your home and turn the lights off.

He says: "Your credit card, loyalty card, keys to your home and Oyster card will all sit in a chip in your mobile phone. If you want to unlock your door, you will simply tap your phone on it." Tran predicts the mobile phone will become consumers' main transactional tool, able to retrieve cash from a dispenser and pay at a till by having its chip scanned.


Music

Miles Lewis, senior vice- president, international sales at Last.fm, predicts that by 2020, anyone under 40 will view others controlling their music as "faintly amusing". He says: "The concept of not being able to listen to what you want, when you want, will be alien."

John Mitchell, UK sales chief at Spotify, agrees, believing that music will be streamed everywhere via ubiquitous wireless internet connections.

He predicts Spotify will be accessed via mobile phone more than any other device, which will revolutionise advertising on music media. "Brands will be able to deliver personally tailored ads based on information users have given our database and on the information we have from tracking their activity online," he adds. "This, combined with location-based information, will be very powerful."

Oli Threthewey, business development director at Frukt, believes hologram, alternative reality and augmented reality technology will play a big part in the music of tomorrow. He says: "I can imagine Girls Aloud playing a gig in Rio de Janeiro and this being beamed three-dimensionally, so listeners all around the world can download the same music experience via holographic projections - the next best thing to actually being there."


Television

The convergence of the TV and internet will change all the traditional broadcast rules. Suranga Chandratillake, founder of video search engine Blinkx, says: "Viewers won't depend on a schedule and there will be no such thing as prime time."

Chandratillake envisions a time when TV shows will be pre-programmed specifically for each viewer. He says: "It might be news tailored to the industry you work in or the weather forecast for your exact location. For light relief, your TV will find you some tennis, as it knows you like this sport from your previous viewing habits. On your commute to work, you might start watching the latest episode of your favourite soap on a mobile device, but pause it so you can watch the rest on your way home."

Nigel Walley, managing director of consultancy Decipher, forecasts that traditional broadcast will drop to about 60% of viewing time. He says: "Broadcasters will respond to this trend by making more programmes that demand to be viewed live by integrating their video-on-demand content into the broadcast stream and by building deeper relationships with their users through data, so they can do things like reward loyalty."

Tony Effik, chief strategy officer at Publicis Modem, predicts that Apple, Microsoft and Google will become significant TV players. He says: "Apple will launch an improved version of Apple TV linked to iTunes, YouTube and Hulu, and Google will work with Sky and Apple to offer pay-per-click models for the TV advertising. Pay-per-click will become hugely successful and will force change in TV business models."

Effik also forecasts better targeting based on Google technology, which will give advertisers viewing data on each household, as well as click data on advertising. He adds: "Targeting and pricing of advertising will be based on individual profiles, with some viewers worth more."

In addition, consumers will access sites such as Flickr and YouTube via the TV, and will watch with the constant accompaniment of a Twitter-type feed.

Damian Ryan, head of digital at consultancy Results International, suggests this could be called "Twelevision", enabling viewers to interact around content. He says: "There will also be the option for viewers to take control of broadcast under certain moderated conditions."


Out-of-home

In five years' time, posters will be able to recognise your face and address you personally - or at least, identify your gender and tailor their messages. Consumers will also be able to use "bokodes" to gather more information about a product by pointing their smartphone at the billboard.

Mike Hemmings, brand manager at CBS Outdoor, says: "This technology will allow consumers to take snapshots to decode information embedded in the ad, which in turn either directs the consumer to a URL or plays out video or audio content. Short codes will not measure engagement and interaction, rather simpler mechanics such as camera interactivity leading to web traffic, downloads and purchase."

Hemmings also forecasts that streaming and user-generated content will feature more prominently within digital outdoor, as will asking consumers to vote about, contribute to and manipulate their advertising experience.

Simon Waddell, head of Clear Channel's Create division, agrees that digital billboards will soon be able to interact on a far more personal level.

He says: "I can imagine being able to log in to a poster via fingerprint recognition and having a much more personal dialogue with a brand. That poster will also be intelligent enough to know you have interacted with it, so next time it talks to you it will serve you personalised content."


Cinema

Cinema is about to be revolutionised by the roll-out of digital, which will pave the way for 3D films, where objects appear to jump out of the screen.

Mike Hope, enterprise director at Pearl & Dean, says: "Cinema will become a place where you can be entertained and enjoy a far more immersive experience. People will come to cinemas to watch live music, sport and comedy and to take part in gaming challenges."

Audiences will have far more influence on content - the audience reaction throughout a film could determine its end or audiences could vote to choose the colour of a car or dress, either in the film or an ad. Hope also predicts "scent advertising", where smells are emitted through the air conditioning, will become commonplace and that sensors on chairs that add to the tactile film experience are "a definite possibility".


Press

Tim Brooks, managing director of Guardian News & Media, believes newspapers will move towards "a more complex model with multiple revenue streams" - a combination of eReaders, mobile, subscription and membership. He says: "All these opportunities will take their place in a far more dynamic and diverse business mix."

Andrew Walmsley, co-founder of I-Level, is convinced eReaders will prove the best replacement for print papers. He says: "Online newspapers are not the best replacement, because people don't give websites the same amount of dwell time. eReaders give a far more newspaper-like experience: they use e-ink and are readable in ambient light. You can read them like a book and the quality of the reading experience is extremely high."


Media agencies

The most fundamental effect of the changes in technology and consumer behaviour will be the evolution of media planning.

Mark Holden, global thought leader at PHD Worldwide, believes that by 2014, planners will morph into "uber-planners", advising clients on everything from packaging design to new product launches. TV buyers will be renamed audiovisual buyers to reflect the merging of TV and online, and will play a greater role in behavioural targeting.

He says: "Media agencies will take on more creative briefs and they will employ a more diverse workforce, including software developers and specialist mobile planners and buyers. These specialists will work in agencies' content creation departments, which will become sizeable revenue generators, even mini quasi-creative agencies, in their own right."

In addition, a new breed of "digital relationship managers" will be responsible for building huge databases of customer data, storing learnings from thousands of previous campaigns. These knowledge banks will allow planners to create predictive models and clients will even ask to audit these databases as part of the pitch process.

Expect to see powerful channel-led, full-service systems in place by 2014; the days when all the media agency did was plan and buy a campaign will be long gone.



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Join the Journalism Clubs — “Members Only”

Desperate to stay alive, beleaguered newspaper executives first tried to “monetize” their “content.”

Now they’re desperately trying to “monetize” their “journalists.” And although the Washington Post recently stumbled badly in offering its pay-to-play sponsored ‘salons” to access seekers, the fact that the paper’s own ombudsman called the offer “an ethical lapse of monumental proportions” hasn’t deterred other journalistic powerhouses in their pell-mell rush to revenue. The latest cases in point: the New York Times and the Guardian

As the indispensable Nieman Lab reported recently, “School’s in session at The New York Times this fall, and the professors include some big bylines on campus: Nicholas Kristof, Gail Collins, and Eric Asimov.” And if, like me, you are an indefatigable student of journalism, here is what’s on offer from the newspaper-of-record’s Knowledge Network adult-education program, operated in partnership with local universities: one hundred weeklong, largely online courses for Times readers willing to pay between $125 and $185 in exchange for getting schooled by the likes of Times Op-Ed stars like Kristof and Collins.

The courses taught by Kristof and Collins also include a “live, interactive Webcast,” three written lessons, and a message board where students can interact with their instructors – although, caveat emptor, only a few of the hundred courses actually include the participation of Times writers…

This year marks the first time that Times columnists have participated in the three-year-old project – which as Nieman Lab noted, “could be a precursor to the membership model the Times is considering in its search for new revenue streams on the web.”

As Britain’s Daily Telegraph newspaper reported last month, Scott Heekin-Canedy, the president and general manager of The New York Times Media Group, “is deciding between two charging systems – a ‘metered’ and a ‘membership’ model,” and a decision is expected imminently.

“The metered model, as the Financial Times uses, gives access without a charge for a certain number of page views. The so-called “membership model” includes a collection of different privileges and services not available to the non-paying reader.

‘We have events – called Times Talks – where journalists interview important people. If you come in on the website, you might get special access to discussions with a journalist. There might be special offers for other products and services,’ he says, adding that special offers for hotels and restaurants could be included in any offer.

The decision by the publisher of the New York Times comes as the global recession forces newspaper owners to step up efforts to increase profits from their digital operations.

While a decision on how to charge will be made shortly, Mr Heekin-Canedy said formal plans will only be announced when the technology is in place. However, the group is hoping for a speedy roll-out of the system.”

The membership model was hawked just last month in a Times reader survey describing how paid ‘members’ of the Times Exclusive Journalism Club – oops, I mean “NYT Gold” — might purchase special access:

“TimesInsider: Ever wanted to talk cooking with Mark Bittman or to discuss books with Janet Maslin? How about a tour of the Times headquarters, including the newsroom? NYT Gold gives you insider’s access to the people who bring you the Times everyday.”

Meanwhile, The UK’s Guardian newspaper is moving ahead with its own plans for a membership program that might also include exclusive events and access to journalists. As a recent job posting for general manager of the “Guardian Club” explains:

“Increasingly we believe our future resides at the centre of a community of engaged readers and users, whose relationship with us will be much closer and more involved. The Guardian Club will be our transformational next step in bringing these customers to the centre of our business, rewarding loyalty while growing our reach and revenues. We want members of the Club to feel that they are genuinely part of our organisation, and as close as it is possible to get to the editorial heart of our company.”

As a Guardian spokeswoman said, “It makes sense for the business and for our readers to both harness and reward that loyalty. Our recently launched subscription scheme is one way of doing so and another idea under consideration is a Guardian offering based around the concept of a ‘friends’ scheme or members’ club.”

Although certain aspects of these Members Only club plans have been trotted out in the past — it was less than two years ago that the NYT stopped offering its TimesSelect premium online service, which charged for access to blogs and columnists – Times GM/President Heekin-Canedy told the Telegraph that times (pun intended?) have changed:

“The climate seems to have changed. There seems to be more of a willingness to pay. We charged roughly $50 a year for Times Select and we had about 200,000 paying subscribers. The reason we discontinued Times Select is that we came to the conclusion that search engine optimisation had changed and it would give us the ability to generate more advertising revenue if we did not charge for content.”

What’s next in the endless quest for newspaper revenue enhancement – wine clubs? Oops — there I go again! Well, maybe you can just take Times wine columnist Eric Asimov’s NYT Gold course instead. After all, $125 will buy your way in to the single session – although the price of the booze isn’t included! Didn’t these jokers learn anything in journalism school?



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News Corp. pushing to create an online news consortium

As newspapers across the country struggle with declining readership and advertising revenue, News Corp. executives have been meeting in recent weeks with publishers about forming a consortium that would charge for news distributed online and on portable devices -- and potentially stem the rising tide of red ink.

Chief Digital Officer Jonathan Miller has positioned News Corp. as a logical leader in the effort to start collecting fees from online readers because of its success with the Wall Street Journal Online, which boasts more than 1 million paying subscribers. He is believed to have met with major news publishers including New York Times Co., Washington Post Co., Hearst Corp. and Tribune Co., publisher of the Los Angeles Times.

"The reality is that unless a lot of people who produce news act in unison to start charging for content, then individually they will fail," said Alan D. Mutter, a former newspaper columnist and editor and consultant on new media ventures.

News Corp.'s solution is the latest proposal to publishers seeking to wring money from Internet readers to offset double-digit drops in print and online revenue. Steve Brill's Journalism Online initiative garnered attention this spring when it announced plans to create the tools to allow publishers to collect fees for digital distribution, and recently announced that more than 500 newspapers had joined.

Others who have been offering competing approaches in meetings with news executives include Borders Books and Webvan co-founder Louis Borders, according to people who have attended the briefings.

The notion of charging for digital access to news, either online or on devices, has been gaining momentum ever since the Associated Press' annual meeting in San Diego in April. William Dean Singleton, chairman of the AP and chief executive of MediaNews Group Inc., railed against the "misappropriation" of news on the Internet -- a reference widely interpreted as a swipe at search giant Google Inc.

"We can no longer stand by and watch others walk off with our work under misguided legal theories," he said. "We are mad as hell, and we are not going to take it anymore."

Wall Street Journal Editor Robert Thomson added to the invective, saying Google and other news aggregators who believe that content should be free are "parasites or tech tapeworms in the intestines of the Internet."

The hot rhetoric has yielded to more cold-eyed assessment of how to make money from the digital distribution of news. News Corp. chief Rupert Murdoch said in an analyst call this month that he hoped to "build significant revenues from the digital delivery." News Corp. is among the world's largest newspaper publishers, as the owner of the New York Post, the Times of London and nearly two dozen papers in Australia.

Industrywide, ad revenue fell 28% in the first quarter of 2009, according to the nonprofit Newspaper Assn. of America. Researchers like the Pew Research Center's Project for Excellence in Journalism say half of that decline can be blamed on the poor economy, as auto dealers go out of business and retailers close or cut back. The rest can be attributed to structural changes buffeting the industry, as readers and advertisers go online.

Although newspapers have made major strides in building online readership, the revenue hasn't followed. Internet ads account for just 12% of a newspaper's revenue, according to the association.

"This, after 10 years of effort," said veteran newspaper analyst John Morton. "The only positive thing to be said for online revenue for newspapers is it's going down less rapidly."

Analysts are skeptical that any efforts to collect online subscription fees, or even small payments for individual articles, will amount to a significant new source of cash for newspaper publishers. Specialized financial publications, such as the Wall Street Journal and the Financial Times, have succeeded because they provide timely access to valuable information traders need to make money. It's not clear there's any willingness to pay for more general information about sporting events, entertainment or local news.

"It's probably going to be small dollars," said Edward Atorino, media analyst at Benchmark Co. "For a big media company, it's going to add a little bit to a giant pile."

Mutter, the new media ventures consultant, said efforts to erect pay walls around news stories are doomed because such barriers are so easily breached by anyone who knows how to cut and paste a document.

Instead, he said a consortium, such as the one that News Corp. is proposing, would be more effective if it were to create a single online registration for readers to use across all news sites and track the stories each person reads. When married with geographic and demographic data, this anonymous reader information would be valuable to advertisers seeking to reach a particular consumer.

A consortium of newspaper publishers is bound to attract scrutiny from federal regulators, who would seek to determine whether it reduces competition, said antitrust attorney Robert W. Doyle Jr., a partner in the Washington law firm of Doyle, Barlow & Mazard.

"The antitrust concern arises if there's no pro-competitive reasons why they have to get together," Doyle said. "If there is a pro-competitive benefit, that's weighed against the anti-competitive problem of allowing competitors to get together."

Murdoch, who built a media empire from a single newspaper in his native Australia, has been in search of a solution to the industry's broken business model. The search has led to meetings with representatives of ventures like Journalism Online as well as makers of e-readers, those portable devices whose screens simulate the appearance of ink on paper.

Like other newspaper publishers, Murdoch has been frustrated with Amazon.com's Kindle e-reader, in part because of the unfavorable terms offered by the online bookseller, which keeps 70% of the revenue from digital subscriptions and owns the relationship with the reader. He has been interested in finding a way to distribute news to multiple devices.

Miller, who joined News Corp. in April to oversee the media company's digital strategy, has taken charge of this initiative. He talked about the need to support premium journalism in Pasadena last month, at Fortune magazine's Brainstorm: Tech conference.

In an onstage interview, Miller hinted at a broader role for News Corp., which has gained expertise in managing subscribers to Dow Jones Factiva's business information service, and whose Wall Street Journal Online has a subscriber base that could be leveraged to sell subscriptions.

"In looking at all of News Corp.'s assets, it's clear that we're in a unique position to play a key role in creating new business models that will support premium journalism on digital platforms," he said.

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The Two-Track Economy: Inequality Emerging From Today’s Recession

Simon Johnson, a professor of entrepreneurship at M.I.T.’s Sloan School of Management, is the former chief economist at the International Monetary Fund.

The quick way to talk about how any economy is doing is in terms of “growth.” This is just what it sounds like — a measure of how much the total value of production in a country has increased in the last month, quarter or year.

Thinking in terms of total production — more precisely, this is usually gross domestic product (G.D.P.) — never tells you everything that you want to know, but it usually gives you a sense of the near-term dynamics: Are business prospects expanding or contracting; is unemployment going to rise further; and will people’s wages outpace or fall behind inflation?

Seen in these terms, the balance of opinion on the near-term outlook for the United States today has definitely shifted toward being more positive. A number of prominent analysts have revised their growth expectation for the second half of this year considerably upward — for example, the ever-influential Goldman Sachs was recently expecting 1 percent growth (annualized), but now guesses it will be closer to 3 percent.

“Potential” growth in the United States is generally considered to be 2 to 3 percent per year — this is how fast the economy can usually grow without causing inflation to increase. So the Goldman swing in opinion is equivalent to switching from saying the second half of this year will be “miserable” to saying there will be a fairly strong recovery.

But at this stage in our economic boom-bust cycle, is it still helpful to think in terms of one aggregate measure of output? Or are we seeing the emergence of a two-track economy: one bouncing back in a relatively healthy fashion, and the other really struggling?

Think about this in terms of individuals and the households in which they live. Some people have lost their jobs and are finding re-employment very difficult; many will exhaust their unemployment benefits soon. Others find that what they owe on their mortgages far exceeds the value of their home. And many find they have been cheated by financial products, particularly home loans and credit cards — which is why we need effective consumer protection for finance, and in a hurry.

The traditional American recession remedy is to move to another, more prosperous part of the country. But nowhere is exactly booming at present. And how do you move if you can’t sell your house?

The overall numbers on outcomes by groups can get complicated (here’s a partial guide), but the simple version is: The top 10 percent of people are going to do fine, those in the middle of the income distribution have been hard hit by overborrowing, and poorer people will continue to struggle with unstable jobs and low wages.

Can the richest people spend enough to power a recovery in overall G.D.P.? Perhaps, but is that really the kind of economy you want to live in?

The United States has, over the past two decades, started to take on characteristics more traditionally associated with Latin America: extreme income inequality, rising poverty levels and worsening health conditions for many. The elite live well and seem not to mind repeated cycles of economic-financial crisis. In fact, if you want to be cynical, you might start to think that the most powerful of the well-to-do actually don’t lose much from a banking sector run amok — providing the government can afford to provide repeated bailouts (paid for presumably through various impositions on people outside the uppermost elite strata).

Ultimately, of course, you get lower growth. But by the time that is clear in the numbers, it may be too late to do much about it.



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Media multitasking doesn't work say researchers

Multitaskers of media activities like watching YouTube, writing e-mail and talking on the phone are not very good at any of their tasks, according to a Stanford University report on Monday.

Researchers who published the report in the Proceedings of the National Academy of Sciences said the results had surprised them. They were looking for the secret to good media multitaskers but instead found broad-based incompetence.

"Heavy multitaskers are lousy at multitasking... The more you do it, the worse you get," said Stanford communications professor Clifford Nass.

Compulsive media multitaskers are worse at focusing their attention, worse at organizing information, and worse at quickly switching between tasks, the Stanford scientists wrote.

After testing about 100 Stanford students, the scientists concluded that chronic media multitaskers have difficulty focusing and are not able to ignore irrelevant information.

Nass said that multitasking is becoming more widespread -- some jobs require workers to keep an instant message window open -- and the scientists were surprised at the results.

"We knew that multitasking was difficult from a cognitive perspective. We thought, 'What's this special ability that people have that allows them to multitask?' ... Rather than finding things that they were doing better, we found things they were doing worse," Stanford symbolic systems professor Eyal Ophir said.

A bright side to such distraction may mean that the media multitaskers will be first to notice anything new, Ophir said.



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Toward Climate Justice - Can we turn back from the abyss?

The summer and fall of 2009 will surely be noted in the annals of environmental history. This period could be remembered as the time when the world's elites slowly began to crawl toward a meaningful solution to the threat of accelerating global climate disruptions. But if events continue along the path of recent months, it could mark the beginning of an inexorable slide toward an increasingly unstable planetary climate regime, an unstable and chaotic world that our ancestors would barely recognize.

Relying on the mainstream media for news, you'd think the outlook was fairly rosy. For example, a somewhat cautious note of triumph accompanied the G8's pronouncement in early July that the world was committing to holding the global temperature rise below two degrees Celsius. The obstacle? "Developing Nations Rebuff G-8 on Curbing Pollutants," proclaimed the New York Times headline.

You had to read through most of the article to discover that the main objection of those pesky "developing nations" representatives was to establishing a long-range goal for reducing greenhouse gas emissions (50 percent by 2050) without proportionate commitments from the major industrialized countries to nearer-term commitments—at least 20 percent reductions by 2020, as accepted by most European governments—that would facilitate meaningful progress toward the more distant goal. One astute European activist pointed out that the G8 outcome was "nothing but hot air," akin to pronouncing that there would be luxury resorts on Mars by 2050. With no intermediate goals nor tangible steps toward implementation, politicians can pledge to do anything at all 40-plus years into the future.

What, then, does two degrees of global warming mean? Last April, following a series of articles in the journal Nature that offered some important new revelations about the state of our climate projections, the climatologists who edit the indispensable scientific blog RealClimate.org wrote, "We feel compelled to note that even a 'moderate' warming of 2°C stands a strong chance of provoking drought and storm responses that could challenge civilized society, leading potentially to the conflict and suffering that go with failed states and mass migrations. Global warming of 2°C would leave the Earth warmer than it has been in millions of years, a disruption of climate conditions that have been stable for longer than the history of human agriculture. Given the drought that already afflicts Australia, the crumbling of the sea ice in the Arctic, and the increasing storm damage after only 0.8°C of warming so far, calling 2°C a danger limit seems to us pretty cavalier."

Two degrees also turns out to be a rather daunting goal, in terms of the current world economy. At pre-recession rates of economic growth, with CO2 emissions increasing 2 percent per year, we are almost certain to exceed 2 degrees of warming by 2100, according to the European researchers whose results were reported in Nature last spring. To keep the odds below 50 percent, developed countries would need to reduce their emissions by at least 80 percent over the next 40 years. But there is a large uncertainty in that prediction, depending on the vagaries of the global carbon cycle and other hard-to-predict factors. The only reliable way to meet such targets for minimizing the global temperature rise is for cumulative world emissions to be kept below a rather austere target, equivalent to a total of 400 billion tons of carbon between 2000 and 2050. Emissions since 2000 "have used up almost a third of that allowance already," according to a commentary by one of Nature's U.S. editors. And for all the trading and offsetting of CO2 and other greenhouse gas emissions since the Kyoto Protocol was signed in 1997, only the past year's economic recession has led to substantial reductions in those emissions. The Kyoto agreement, which required wealthy countries to reduce their emissions by 2012 to 6-8 percent below 1990 levels, "has produced no demonstrable reductions in emissions, or even in anticipated emissions growth," according to a widely quoted report published in Nature in 2007.

In the diplomatic sphere, the world's hopes for an agreement to curtail emissions and forestall more catastrophic climate changes currently rest on the outcome of the next UN climate summit, scheduled for December 7-18 in Copenhagen. While some are hoping for a breakthrough in back-channel discussions between the U.S. and China, together responsible for 40 percent of global greenhouse gas emissions, the U.S. continues to play a largely obstructive role in the negotiations leading up to the Copenhagen summit. So does Japan, which announced in June that it would only aim to reduce its greenhouse gas emissions another 2 percent beyond its Kyoto Protocol obligation over the next decade.

Following the latest in a series of UN meetings in advance of Copenhagen, Martin Khor of the Malaysia-based Third World Network, a decades-long participant in the UN process, wrote "not only is the climate in crisis, the climate talks are also in crisis." Corporate representatives have been hovering like vultures over UN climate meetings, seeking to define the terms of what they hope will be a rapidly expanding market in tradable carbon allowances, and the World Bank is jockeying to control the funds to curtail deforestation, which is responsible for as much as a quarter of current global warming. Given the pivotal role of the U.S. in these upcoming proceedings, it is important to understand what is wrong with the current domestic debate on global warming now playing out in the U.S. Congress.


Climate Politics in Washington

Even more than the G8 discussions on climate, the U.S. House of Representatives' passage of a significant global warming bill in late June was received by the mainstream press, and many environmentalists, with a palpable sense of triumph. Rep. Henry Waxman (D-CA), one of the bill's two main sponsors, called it a "decisive and historic action," and President Obama described the bill as "a bold and necessary step." Fred Krupp of the Environmental Defense Fund, among the most corporate-friendly of the major environmental groups, called it no less than "the most important environmental and energy legislation in the history of our country."

Environmental Defense, along with the Natural Resources Defense Council (NRDC) and the Nature Conservancy, played an important role in the development of the bill. As members of the U.S. Climate Action Partnership, a collaboration with corporations such as Alcoa, BP, Dow, DuPont, GE, and the former big three U.S. automakers, among others, they helped articulate what would become the bill's broad outlines: an emphasis on long-range goals, trading of emissions allowances, initially free distribution of those allowances, and a generous offset provision that permits companies to defer significant pollution reductions well into the future.

While many environmentalists breathed a sigh of relief, and suggested that any step in the direction of regulating carbon dioxide and other climate damaging greenhouse gases is better than nothing, others remained skeptical. As the bill meandered its way through various House committees, groups like Friends of the Earth, Public Citizen, and Greenpeace issued sharp critiques. Even more scathing were analyses from smaller independent groups such as Chesapeake Climate Action and the Arizona-based Center for Biological Diversity (CBD). The bill that passed the House falls far short of international standards in mandating a meaningful level of reductions in global warming pollution and seeks to implement decades of emissions cuts through the market-based device known as "cap-and-trade." It also contains a number of Trojan Horse provisions that could ultimately forestall, rather than encourage, genuine climate progress.

By the time the bill had passed through the relevant committees, as well as last-minute horse-trading on the House floor, the loopholes were staggering to behold. Recall that reductions in greenhouse gas emissions on the order of 20-40 percent are needed in the next decade or so to prevent a slide toward uncontrollable global climate chaos, with reductions on the order of 80-95 percent by the leading industrial economies required by mid-century. The House bill—cosponsored by Waxman and Markey (D-MA), and now up for debate in the Senate—first attempts to shift the terms of the discussion by measuring emissions relative to 2005 levels rather than the accepted Kyoto Protocol benchmark of 1990. It promises a 17 percent reduction by 2020, relative to 2005, which only translates into 4 or 5 percent less global warming pollution than the U.S. produced in 1990. The much-touted cap-and-trade provision of the bill accounts for about a 1 percent reduction by 2020, according to the Center for Biological Diversity's analysis, with the remainder coming from regular, old-fashioned performance standards for smaller pollution sources, including automobiles, and from a controversial USAID effort to reduce deforestation in poorer countries. For comparison, recall that most wealthy countries agreed over a decade ago in Kyoto to reduce their emissions by 2012 to 6-8 percent below 1990 levels.

It's important to note that the deforestation provisions of the bill mirror a highly controversial international climate mitigation strategy promoted by the UN and the World Bank under the name of Reducing Emissions from Deforestation in Developing Countries (REDD). REDD mainly targets intact forested lands, largely occupied by indigenous peoples, which are threatened with privatization for use as carbon offsets. Soon after the current U.S. bill passed the House, an Anglo-African brokerage firm announced that it would sell "avoided deforestation" credits to buyers of voluntary carbon offsets in the U.S., threatening a wave of corporate takeovers of African forest lands.

Cap-and-trade, of course, is the latest catch phrase for attempting to control pollution by establishing an artificial market in permits to emit carbon dioxide. Since George Bush Senior's Acid Rain Program of the early 1990s, advocates have aggressively promoted the idea that the most efficient pollution reductions come from the government setting a cap and then allowing companies to freely trade pollution permits in order to nominally encourage development of the most cost-effective technologies. The Acid Rain Program succeeded modestly, but mainly because still-regulated electric utilities (this was the pre-Enron era) were mandated by state officials to hold true to their obligations and actually reduce their output of acid rain-causing sulfur dioxide. Trading contributed only marginally to the 50 percent pollution reductions from that program. An effort to reduce air pollution in southern California by a similar scheme appears to have mainly delayed the installation of emission controls, and the region still has the dirtiest air in the country. In Europe just three years ago, the value of tradable carbon dioxide allowances plummeted and the carbon trading system almost collapsed under the weight of excess permits that were freely granted to favored industries.

Under the House bill, some 7,400 facilities across this country would be given annual allowances to continue emitting carbon dioxide and other greenhouse gases. As many as 85 percent of the allowances would initially be given to polluting companies for free, reversing Obama's campaign pledge that they should mainly be auctioned off. (In Europe, utilities routinely bill their customers for these newly acquired credits.) Meanwhile, the quantity of available pollution allowances would actually increase through 2016, only falling gradually thereafter, and companies would be allowed to indefinitely "bank" them for future use, borrow from their future allowances, and finally trade them with other regulated companies as well as with Wall Street firms and an emerging cadre of brokers in carbon futures. If all this reads a little too much like the financial machinations that nearly brought down the world's financial markets in 2008, consider that carbon market boosters are projecting a worldwide trading system ultimately valued at $10 trillion a year—perhaps launching the next major financial bubble. All this potential for increased financial fraud and manipulation is for a mere one percent in CO2 reductions over the next decade, and a questionable promise of 70 percent by mid-century.

Many argue that, for all their uncertainty, these highly manipulable financial dealings are worth the risk because they facilitate the phase-in of an enforceable cap on global warming pollution. But the legislation replicates another of the most egregious features of the largely failed Kyoto Protocol: a virtual "hole in the cap," in the form of an offset feature that allows companies to meet their obligations by investing in pollution control projects anywhere in the country, and even overseas. Companies could satisfy their full obligation to reduce CO2 by buying offsets until 2027; those familiar with the bill's fine print suggest that companies could stretch this out for 30-40 years.

An entirely new global mythology has arisen around the idea of carbon offsets. Nearly every time you buy tickets for an airplane flight, or for some major cultural events, someone is out to sell you offsets to alleviate your contribution to global warming. Carbon offsets have become the postmodern version of the indulgences the Catholic Church used to sell in the Middle Ages to buy your way out of sin. But on a global scale, with corporations instead of individuals as the main players, they have become a scam of gigantic proportions. Rather than promoting innovative measures to reduce energy use in poor countries, as they are usually advertised, carbon offsets are subsidizing the already routine destruction of byproducts from China's rising production of ozone-destroying hydrofluorocarbons, minor retooling of highly polluting pig iron smelters in India, and methane capture from a notoriously toxic landfill in South Africa.

One of the most notorious cases is that of the French chemical company, Rhodia, which is anticipating a billion dollars in carbon offset credits in exchange for a $15 million investment in 1970s-vintage technology to destroy the potent greenhouse gas nitrous oxide in its facility in South Korea. Carbon offsets have become the company's most profitable line of business. Major hydroelectric projects—mainly in China, India, and Brazil—represent a quarter of applications for offset credits, and nearly all of these projects were already under development before applying for the credits. As the International Rivers Network and others have pointed out, large-scale hydro, far from being green, is responsible for huge quantities of methane and other greenhouse gases. A German study of UN-approved carbon offset projects in 2007 reported that as many as 86 percent of offset-funded projects would likely have been carried out anyway. This runs counter to the Kyoto Protocol guidelines requiring that projects granted emissions offsets must be "additional," that is, they cannot already have been planned.

Allowing companies to postpone their own greenhouse gas reductions by buying offsets is one Trojan Horse provision in the climate bill that could forestall future progress against the continued disruption of the climate. Another such measure largely prohibits the EPA from using the Clean Air Act to impose future regulation of greenhouse gas emissions. Recall that it was a 2007 Supreme Court decision allowing the EPA to regulate greenhouse gases as a pollutant that forced the Bush administration to finally start talking about global warming. Removing this authority represents a massive concession to polluting industries, one that would essentially remove the teeth of enforcement from future measures to forestall climate chaos.

Along with these systemic measures to weaken the climate bill, politically powerful industries wrote in further concessions of their own. (The Center for Public Integrity reported in February that some 2,340 lobbyists are working in Washington on this issue.) The coal industry gets until 2025 to comply with the bill's mandated pollution reductions, with ample means for gaining further extensions. Agribusiness, which is responsible for as much as a quarter of U.S. greenhouse gas emissions, is exempt from most of the bill's provisions—but large scale farmers who may, for example, reduce tillage by growing crops genetically engineered to withstand megadoses of herbicides, may be eligible for offset credits. Assessments of ethanol's eligibility as a "renewable fuel" are to exclude its effects on land use, a factor that researchers from Princeton and the University of Minnesota proved decisive in a pair of landmark studies last year, which showed that industrial biofuels are often net contributors to global warming. Finally, the nuclear industry promises to be a leading beneficiary of the bill's free allocation of emission allowances; a memo leaked to the Huffington Post reports that Exelon, currently the largest U.S. nuclear power company, expects a $1-1.5 billion annual windfall from the bill in its current form. This despite the fact that nuclear power is yet another false solution to climate change, one that results in huge greenhouse gas emissions throughout the nuclear fuel cycle.

With horse-trading continuing on the House floor right up to the time of the vote, the bill ultimately included "billions of dollars in special interest favors," according to the New York Times. These included $1 billion for green job creation/job training in low income communities, viewed as a relatively minor concession by many inner city activists. But the biggest giveaways were clearly to oil, coal, and gas producers. Requirements for utilities to invest in truly renewable energy were severely curtailed to satisfy some southern Democrats. Still, despite all these concessions, Senators beholden to major polluting industries are already jockeying for much more, threatening to hold up the bill indefinitely if they cannot win even bigger concessions. A bill that passed the Senate's Energy and Natural Resources Committee, just a week prior to the final vote on the House bill, would open large new tracts in the Gulf of Mexico to oil and gas drilling, fund a new gas pipeline in Alaska, and increase funds for scientifically dubious efforts to permanently capture and store CO2 emissions from coal-burning power plants.


A Movement for Climate Justice

At various venues around the world, activists have been meeting for over a year to plan a concerted grassroots response to the upcoming UN climate summit. Anticipating that the forthcoming Copenhagen agreement is likely to fall far short of what the world needs to prevent unprecedented climate disruptions, their focus from the outset was to highlight the limits of business-as-usual and the need for direct action against the root causes of climate change, while demonstrating just and sustainable alternatives. At a meeting this summer of the emerging Climate Justice Action network, participants from more than 20 countries, including several from the global South, agreed on an ambitious alternative agenda to the business-dominated deal-making at the UN level.

"We cannot trust the market with our future, nor put our faith in unsafe, unproven and unsustainable technologies," the meeting's declaration reads. "Contrary to those who put their faith in 'green capitalism,' we know that it is impossible to have infinite growth on a finite planet." The statement calls for leaving fossil fuels in the ground, popular and community control over production, reducing the North's overconsumption, respecting indigenous and forest peoples' rights and, notably, reparations for the ecological and climate debts owed by the richest countries to those who are most affected by resource extraction and climate-related disasters. The emerging issue of climate debt will be the focus of an entire day of action during the Copenhagen summit, as part of a full week of actions around the summit site. Climate Justice Action has already stirred controversy among European activists for suggesting that they may choose to occupy the summit locations to challenge false solutions and rising corporate influence over the UN proceedings.

The emerging discourse of climate justice reflects a growing understanding that those most affected by accelerating climate-related disasters around the world are usually the least responsible for causing disruptions in the climate. Thus any movement seeking an adequate response to global climate changes needs to clearly face this discrepancy and prioritize the voices of the most affected communities. Many people around the world are simultaneously impacted by climate disruptions and by the emerging false solutions to climate change, including carbon trading and offsets, the destruction of forests to create biofuel (agrofuel) plantations, large-scale hydroelectric developments, and nuclear power. Corporate "solutions" to global warming often expand commodification and privatization, whether of land, waterways, or the atmosphere itself, largely at the expense of the same affected communities.

This outlook was first widely articulated following a meeting in Durban, South Africa in the fall of 2004. Representatives from groups (including social movements and indigenous peoples organizations) based in Brazil, India, Samoa, the U.S., and UK, as well as South Africa, drafted the Durban Declaration on Carbon Trading, which has since gained over 300 signatories from around the world. The Durban Group has helped bring people to the sites of various UN meetings to represent those affected by increased resource extraction over the past several decades, as well as the accelerating conversion of forests to monoculture plantations that is partly justified by the North's desire for carbon offsets. In discussions following the December 2007 UN climate summit in Bali, where representatives of affected peoples made a strong showing both inside and outside the official proceedings, a more formal worldwide network emerged under the slogan, "Climate Justice Now!"

In the U.S., this effort is increasingly led by environmental justice activists, mainly from communities of color that have been resisting daily exposure to chemical toxins and other environmental hazards for more than 20 years. An important two-day conference in New York City last January, organized by West Harlem Environmental Action (WE ACT) brought together inner city activists, community and youth organizers, indigenous representatives, and farmworker advocates with students, environmental lawyers, scientists, public health advocates, and government officials to discuss the relevance of the climate justice framework for communities of color and their allies across the U.S.

Throughout this event, speakers of widely differing backgrounds and perspectives articulated a sharp critique of carbon trading and offsets. This was despite the efforts of a handful of mainstream environmental representatives to paint "cap-and-trade" as a moving train that activists either had to board, or else be excluded from important debates around its implementation. A physician from Los Angeles described carbon trading as yet another means of "redistributing wealth from the poor to the wealthy," and José Bravo of the Just Transition Alliance suggested that "when we put a price on every square inch of air, there are some of us who won't be able to afford to breathe." Many speakers described the emerging climate justice movement as a continuation of the civil rights legacy, and of the continuing "quest for fairness, equity and justice," to quote the pioneering environmental justice researcher and author, Robert Bullard. Others explained how, in recent years, the environmental justice movement has broadened its scope to areas of food justice, housing justice, and transportation justice. Hence, their embrace of the global climate justice agenda is a logical continuation.

In the U.S. and around the world, an impressive array of interests is coming together to contribute to shaping the climate justice agenda. First among these are the opponents of mountaintop removal coal mining, who have put their bodies on the line repeatedly to expose the profound hazard posed by this exceedingly destructive practice. Growing numbers of people in coal-dependent communities in Appalachia are expressing the need for an alternative development model that relieves the stranglehold of the coal companies over their communities, protects people's health, and facilitates the phase-out of the single most climate-destructive form of energy production. Indigenous communities, many organized under the umbrella of the Indigenous Environmental Network, are resisting increased mining of coal and uranium and advancing education about the false solutions to global warming. An emerging youth climate movement is carrying out creative direct actions, not only at coal mining sites, but also at corporate headquarters, industry conferences, and even the headquarters of corporate-friendly environmental groups such as Environmental Defense (see risingtidenorthamerica.org).

Internationally, people from Pacific Island nations, in some cases already losing land and groundwater to rising seas, have been in the forefront of calls for immediate action. The worldwide confederation of peasant movements, Vía Campesina, with affiliated groups in more than 80 countries, has joined the call for actions in Copenhagen, challenging the status of carbon as a newly privatized commodity and arguing that the UN climate convention "has failed to radically question the current models of consumption and production based on the illusion of continuous growth." Critical civil society organizations, many working within the framework of Climate Justice Now! continue to challenge the status quo inside the UN negotiations. Further, hundreds of cities and towns in the U.S. have defied the federal government's 20-year trend toward inaction and committed to substantial, publicly-aided CO2 reductions of their own.

In the fall of 2008, U.S. organizations actively working for climate justice both nationally and internationally, including Indigenous Environmental Network, Global Justice Ecology Project, and Rising Tide North America, launched the Mobilization for Climate Justice, or MCJ (actforclimatejustice.org). The Mobilization was founded to link the climate struggle in the U.S. to the growing international climate justice movement, with an eye toward building for actions around the Copenhagen climate summit and beyond. Its objective is to provide a justice-based framework for organizing around climate change that opens space for leadership by representatives of communities in the U.S. that are most impacted by climate change and the fossil fuel industry.

The MCJ issued a broadly focused open letter to potential allies, calling for "a radical change in direction to put climate justice, ecological integrity and people's rights at the center of international climate negotiations," and is working toward a nationwide day of action on November 30, a week before the Copenhagen talks begin. Activists confronting the toxic legacy of Chevron's refinery complex in Richmond, California are already developing action plans for that day, and gatherings in Chicago and Pittsburgh this fall will focus on developing plans for other regions of the country. In Pittsburgh, a climate action camp, modeled on similar camps in the UK and across Europe, will begin during the Pittsburgh Coal Conference (September 21-23), and continue through the September 24-25 meeting of the G-20 heads of state, also in Pittsburgh. The climate camp and subsequent protests against the coal conference and the G-20 will bring together climate justice advocates from throughout the eastern U.S. to build pressure on the Obama administration and others to commit to real and just action on climate change in Copenhagen. Other groups are focusing their efforts on dates throughout the fall, including the annual commemorations of Indigenous People's Day on October 12 (see ienearth.org), and an international day of climate actions on United Nations Day, October 24, initiated by prominent environmentalists including Bill McKibben and David Suzuki (see 350.org).

The increasing urgency of the climate crisis has clearly hit a nerve among people of many walks of life, all around the world. While the outcome of this fall's events remains highly uncertain, it is clear that such a flowering of creative and determined popular responses is precisely what is needed to reverse decades of willful inaction by the world's elites and reach beyond the limits of politics-as-usual.

Z


Brian Tokar is the director of the Vermont-based Institute for Social Ecology (social-ecology.org). His books include Earth for Sale, Redesigning Life? and the forthcoming collection (co-edited with Fred Magdoff), Crisis in Food and Agriculture: Conflict, Resistance and Renewal (Monthly Review Press). Thanks to Anne Petermann and Orin Langelle for helpful suggestions. Photos are by Langelle/GJEP.

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