Socialist Sonnet No. 92

Facing the New Year

 

Janus standing on the threshold, his rear

View taking in the past fifty two weeks,

When prices rose again to higher peaks

As wages fell. It begins to appear

Food banks are for many possessed by fear

Of impoverishment. Meanwhile, war still seeks

Pyrrhic victories for psychotic freaks

Posing as helmsmen, claiming they can steer

Their ships of state to port in some promised land,

That capital’s already colonised,

Drained and reduced to destitution.

The climate’s taken more than it can stand,

While socialism remains unrealised.

Janus looks for New Year resolution.

 

D. A.

Protecting Big Pharma Profits

  



An analysis, conducted by the healthcare research company 3 Axis Advisors, said that Big Pharma corporations including Pfizer, AstraZeneca PLC, and Sanofi SA are set to raise the list prices—which do not include any rebates—on over 350 drugs early in January.

 The pharmaceutical giants plan to raise U.S. prices for hundreds of drugs next month in anticipation of the Biden administration’s Inflation Reduction Act, which will allow Medicare to negotiate the cost of certain drugs starting in 2026.

Pharma Giants to Hike 350+ US Drug Prices in the New Year: Analysis (commondreams.org)

Corporate Charity Giving

 Coca-Cola announced that it would donate the equivalent of a meal to charity for every person who visits its Christmas truck tour in the UK this year. It’s only at the very end of its announcement that the world’s richest beverage company explains it will give a maximum of just £25,000 to the charity Fairshare, which redistributes surplus food to the hungry.

According to Fairshare, £25,000 is enough to supply 100,000 meals. But the donation amounts to less than 0.01% of the £259.9m profit Coca-Cola made in the UK—the equivalent of a millionaire donating three £30 turkeys to charity. By contrast, Coca-Cola handed £440m in dividends to shareholders in 2021, dipping into its reserves to do so.

BAE Systems, also among the 30 biggest companies in the UK,donated £150,000 to food banks last Christmas—just 0.007% of its £2.3bn profit for 2021. The arms manufacturer said it gave £11m overall to charity in 2021. By comparison, it handed out £1.1bn to shareholders in dividends and share buybacks.

British Gas owner Centrica—among the top 100 largest UK companies—also gave £250,000 to food bank operator Trussell Trust last Christmas. The donation was equivalent to 0.03% of its profits in 2021—which stood at £948m, double what it made the previous year. The charity says the number of people using food banks rose by 40% between April and September this year.

For the last two years, staff working at Jaguar Land Rover have donated £5,000 of their own money to charity and tens of thousands of grocery items to food banks—but, asked if the company itself had contributed, a spokesperson told openDemocracy they were only aware of the donations given by employees.

“These companies’ charitable giving is too small even to call it reputation washing. This seems more like the corporate equivalent of using a drop of spit to clean something off the side of your mouth,” said Alex Cobham, chief executive of the Tax Justice Network.

Amazon, meanwhile—one of the world’s richest companies—donated an estimated £256,000 to charity in the UK last Christmas.

The company said it gave £120,000, split between 120 local charities nominated by employees: £50,000 to children’s charity Barnardo’s, £25,000 each to homeless charity Depaul and family support charity Home-Start, and £10,000 to rapper Stormzy’s #MerkyFoundation.

Amazon UK also said it also donated £500 to “every local food bank” near its 24 warehouses. openDemocracy estimates this could amount to a £26,000 donation given there are 52 food banks run by the Trussell Trust within five miles of Amazon’s 24 sites.

Amazon UK Services, the warehouse and logistics arm of its business, made profits of £204m before tax in the UK last year, according to accounts filed at Companies House. The corporation’s Christmas donations in the UK would amount to 0.13% of this income.

But Amazon’s total profits in the UK were likely much higher than this figure. The company reported that revenue for all its business in the UK—including retail and cloud computing services not included in the £204m figure—was £23.2bn in 2021. It would not reveal how much profit it made from this.

Amazon paid no corporation tax in the UK that year, thanks to the “super-deduction” scheme for businesses that invest in infrastructure that was introduced the same year by the then chancellor, Rishi Sunak, according to research from the Fair Tax Foundation.

“Big businesses like to pretend that, left to their own devices, they will do the right thing. These figures show clearly how hollow those claims are,” said Nick Dearden, director of campaign group Global Justice Now.

Opinion | Corporations Are the Modern-Day Scrooges | Common Dreams

Why the rich got richer

 



 “Higher wealth tends to be associated with capture of government and state institutions by the elite,” Francisco Ferreira, director of the International Inequalities Institute at the London School of Economics (LSE) said. This, he said, can take different forms in different democratic contexts. But the result is the same. “The bargaining power of the rich increases due to various tools they use such as lobbying,” he said. “Policies end up benefitting the wealthy and that again creates a cycle. But, this time, it’s a political cycle.”

According to the Bloomberg Billionaires Index, 131 billionaires more than doubled their net worth during the pandemic. 

The world’s richest person, Louis Vuitton chief Bernard Arnault, was worth $159bn on December 27, 2022, up by around $60bn compared with early 2020. 

Elon Musk, the planet’s second-wealthiest man, boasted a $139bn fortune — it was less than $50bn before the pandemic. 

And India’s Gautam Adani, third on the index, has seen his wealth increase more than tenfold in this period, from approximately $10bn at the start of 2020 to $110bn at the end of 2022.

At the same time, close to 97 million people — more than the population of any European nation — were pushed into extreme poverty in just 2020, earning less than $1.90 a day (the World Bank-defined poverty line).

 The global poverty rate is estimated to have gone up from 7.8 percent to 9.1 percent by late 2021.

 Now, skyrocketing inflation is affecting real wage growth, eating into the disposable incomes of people around the world.

Billionaires saw their fortunes increase as much in 24 months as they did in 23 years, according to Oxfam’s “Profiting from Pain” report released in May this year. Every 30 hours, while COVID-19 and rising food prices are pushing nearly one million more people into extreme poverty, the global economy is also spawning a new billionaire.

A year into the pandemic, capital markets had risen $14 trillion, with 25 companies — mostly in the technology, electric vehicles and semiconductors segment — accounting for 40 percent of the total gains, according to an analysis of stock performance of 5,000 companies by consulting firm McKinsey.

“The result is that this pandemic period has seen the biggest surge in billionaire wealth since the records began,” Oxfam America’s Director of Economic Justice Nabil Ahmed told Al Jazeera. “And we are still coming to terms about how extraordinary that rise has been.”

143 of 161 countries analysed by Oxfam froze tax rates for the rich during the pandemic, and 11 countries reduced them.

When the pandemic began o save the economy from collapsing, central banks slashed interest rates, thereby lowering borrowing costs and increasing the supply of money. They also pumped trillions of dollars into financial markets with the aim of encouraging companies to invest in the economy. Major central banks have infused more than $11 trillion into the global economy since 2020. These interventions triggered a boom in the value of stocks, bonds and other financial instruments — but the rise in asset prices wasn’t accompanied by an increase in economic production.

“The easy money policy that began after the global financial crisis led to really low to negative interest rates and big liquidity in the financial system,” Jayati Ghosh, professor of economics at the University of Massachusetts Amherst, told Al Jazeera. “So, in the past 15 years, corporations chose to reinvest the money into buying more financial assets chasing high returns, rather than increasing their production.”

Yannis Dafermos, a senior lecturer in economics at SOAS University of London explains, “Even when inflation has increased, the profit margins of firms have not declined.” Large companies are retaining profits to give dividends to their shareholders rather than increasing wage incomes, even as smaller companies suffer due to a lack of investments by bigger firms, he said.

“Because of the way the global financial system works, there will be a lot of pressure on developing countries to implement austerity measures,” Dafermos said. “That can create more inequalities and for me, this is perhaps more significant because it limits their capacity to provide social protection to the poor.”

According to Oxfam, lower-income countries spent approximately 27 percent of their budgets in repaying their debts – twice the money spent on education and four times that on health.

Why do the rich get richer — even during global crises? | Business and Economy | Al Jazeera

The Cost of Climate Change

  



Extreme weather events caused severe human suffering from food insecurity, drought, mass displacements and loss of life. No corner of the globe was spared from the costliest climate impacts in 2022.

 A devastating drought has affected more than 36 million people in East Africa, pushing many to the brink of famine. Whilst people in East Africa have been suffering from drought, in West Africa 1.3 million people were displaced by floods which killed more than 600 people in Nigeria, Cameroon, Mali and Niger.

February’s Storm Eunice set a new UK wind speed record of 122mph and Hurricane Fiona struck the Caribbean and Canada in September and caused losses valued at more than $3 billion in just a few days. Other events took months to unfold, like the droughts in Brazil and China which lasted all year.

 Hurricane Ian struck the US and Cuba in September costing $100 billion and displacing 40,000 people. The drought in Europe heatwave in Europe cost $20 billion while floods in Pakistan killed more than 1,700 people, displaced a further 7 million

The increasing frequency of heatwaves, due to climate change, resulted in an estimated 98 million more people suffering from moderate or severe food insecurity in 2020 compared to the 1981–2010 average.

https://mediacentre.christianaid.org.uk/download?id=10041

Remember the Rohingya

 At one time the plight and suffering of the Rohingya were headline news. Now other events around the world have relegated their continuing misery to mere passing mentions in the media. More than a million Rohingya Muslims are crowded into squalid refugee camps in southern Bangladesh after having fled ethnic cleansing and other violence and repression in Rakhine state, Myanmar, which is ruled by a military dictatorship. Since 2020, thousands of Rohingya have fled the camps by sea.

Tun Khin, a Rohingya activist and refugee who now heads the Burmese Rohingya Organization U.K. said, “These people are facing genocide in Burma. It is a hopeless situation for them in Bangladesh, there is no dignity of life there.”

The rescue of hundreds of Rohingya refugees by fishers and local authorities in Indonesia’s Aceh province was praised Tuesday as “an act of humanity” by United Nations officials, while relatives of around 180 Rohingya on another vessel that’s been missing for weeks feared that all aboard had perished. The United Nations High Commissioner for Refugees (UNHCR) said that “Indonesia has helped to save 472 people in the past six weeks from four boats, showing its commitment and respect of basic humanitarian principles for people who face persecution and conflict.”

“UNHCR urges other states to follow this example. Many others did not act despite numerous pleas and appeals for help,” the Geneva-based agency added. “States in the region must fulfil their legal obligations by saving people on boats in distress to avoid further misery and deaths.”

Residents of Ladong, a fishing village in Aceh, rushed to help 58 Malaysia-bound Rohingya men who arrived Sunday in a rickety wooden boat, many of them severely dehydrated and starving. The following day, 174 more starving Rohingya men, women, and children, were helped ashore after more than a month at sea.

Babar Baloch, the UNHCR regional spokesperson in Bangkok, stated that 26 people had died aboard the rescued vessel, which left Bangladesh a month ago.

“We were raising alarm about this boat in early December because we had information that it was in the regional waters at least at the end of November,” he said. “After its engine failure and it was drifting in the sea, there were reports of this boat being spotted close to Indian waters and we approached and asked them as well and we were also in touch with authorities in Sri Lanka,” Baloch continued. According to the BBC, the Indian navy appears to have towed the boat into Indonesian waters after giving its desperate passengers some food and water. The boat drifted for another six days before it was allowed to land.  Baloch stressed that “countries and states in the region have international obligations to help desperate people.”

‘A Sigh of Relief’ as Hundreds of Rohingya Refugees Rescued After Harrowing Sea Journeys (commondreams.org)

Quis custodiet ipsos custodes? Who watches the watchers?

 It’s been revealed by sources within the US Department of Justice that direct messages sent through Facebook by American users, along with public postings, have been rigorously monitored, and reported to the Federal Bureau of Investigation (FBI) if they express anti-government, anti-authority views, or if they question the legitimacy of the November 2020 presidential election’s outcome.

Under the terms of a secret collaboration agreement with the FBI, a Facebook staffer has, over the past 19 months, been red-flagging content they consider to be “subversive” and immediately transmitting it to the Bureau’s domestic terrorism operational unit, without the FBI having filed a single subpoena – outside the established US legal process, without probable cause, and in breach of the First Amendment, in other words.

Just as shockingly, these intercepted communications were then provided as leads and tips to FBI field offices across the US, which in turn secured subpoenas in order to officially obtain the private conversations that they already possessed, and thus cover up the fact the material had been obtained extra-legally. Facebook invariably complied with these subpoenas, and would send back “gigabytes of data and photos” within an hour, suggesting the content sought was already packaged and awaiting legal confirmation before distribution.

It is uncertain quite how many users were flagged, but it’s abundantly clear a specific type of person was of interest to the FBI – “red-blooded” conservative right-wingers, many of whom supported the right to bear arms. No one connected to Antifa, BLM or any other left-wing group was ever informed on.

It seems not a single Facebook user snitched upon for daring to be possessed of troublesome political opinions was ever arrested, or prosecuted, for their wrongthink, even though some were reportedly subject to covert surveillance and other forms of intrusion and harassment. Their views were consistently found to not translate to criminality or violence – their words were simply brutal condemnations of Biden’s election and presidency, and aggressive calls for protests.

However, once these users’ information reached FBI headquarters, it appears to have been selectively and misleadingly edited, “the most egregious parts highlighted and taken out of context” in order to perk the interest of field offices. Once the same data was sought and accessed by them via subpoena, the conversations “didn’t sound as bad” and none pointed to any “plan or orchestration to carry out any kind of violence.” No one spoke of injuring, let alone killing, anyone.

The entire operation appears to have been a gigantic waste of time but, given the Biden administration’s rhetoric about the January 6 Capitol “insurrection,” it would hardly surprise if the FBI was under intense political pressure to make as many arrests as possible of “right-wing terrorists” in order to make the sensationalist fantasies of White House officials a reality.

During the War on Terror, the FBI was in effect charged with creating a domestic terror threat, and delivered on a grand scale. Almost every major terrorism-related case in the post 9/11 period was effectively entrapment, with informants and undercover agents encouraging often mentally ill people to commit violent acts, helping them sketch mass casualty plans, and even providing the weapons to be used in the plots, which the FBI heroically busts at the last minute.

Luckily for those Facebook users flagged to the FBI, none were the victim of similar sting operations, although in the case of the October 2020 kidnapping plot targeting Michigan governor Gretchen Whitmer by militia members, at least 12 individuals involved in the planning were working for the Bureau.

In two separate statements to the New York Post, a Facebook spokesperson seemed to contradict themselves on whether the Justice Department whistleblowers’ claims were accurate. First, they said the allegations were “false because they reflect a misunderstanding of how our systems protect people from harm and how we engage with law enforcement.” An hour later, they got in touch unprompted to say the accusations were “just wrong,” rather than “false.”

Coincidentally, that spokesperson previously worked for Planned Parenthood and “Obama for America.” The latter campaign, to get the then-President re-elected in 2012, not only employed the exact same tactics as Cambridge Analytica to harvest user data without knowledge or consent, but has also admitted it was allowed by Facebook to “do things they wouldn’t have allowed someone else to do because they were on our side.”

For its part, the FBI would neither confirm nor deny the incendiary charges, although that the Bureau maintains a little-known “unclassified/law enforcement sensitive” relationship with Facebook has long-been a matter of record, and a spokesperson did concede that this connection allows for a “quick exchange” of information in an “ongoing dialogue.”

Even more ominously, if we accept that Facebook’s denial it has a subpoena-less agreement for the unfettered sharing of private user data to be truthful, this could imply that the FBI is running an agent –a “confidential human source,” in Bureau parlance– within the social media giant who has unfettered access, whether granted or not, to sensitive, private information on millions of users

Of course, Facebook’s denial could just be a lie – or a literally true but consciously dishonest statement, in that it is aware a senior staffer is passing the FBI information and has approved the arrangement but this is not formal or officially admitted. Such a setup would grant the social media monopoly plausible deniability were questions to arise about misuse of users’ data – as they now have.

There are strong grounds to believe that whether Facebook is fully aware of the staffer’s relationship with the FBI or not, it would approve of the arrangement, and its upper-tier employees assisting US security and intelligence agencies in their work.

The Washington Post recently exposed how the Pentagon is conducting an extensive internal audit of all its psychological warfare operations online, after several fake accounts it was running were identified by researchers. 

A fascinating passage in the article noted that, back in Summer 2020, David Agranovich, Facebook’s Director of Global Threat Disruption, who spent six years at the Pentagon then served as Director for Intelligence at the elite White House National Security Council, got in touch with his Pentagon pals directly, to warn them he and his team had identified a number of US military-managed trolls and bots on its network, and “if Facebook could sniff them out, so could US adversaries.” 

“His point was, ‘Guys, you got caught. That’s a problem.’”

The obvious meaning of all this, which The Post apparently missed, is that senior Facebook staff consider their platform being weaponized for information warfare purposes to be acceptable if not welcome, as long as it’s US military and intelligence operatives doing it, and they don’t get “burned” – and they are willing to provide American spies with helpful guidance on how to operate in secret more effectively.

RT 6\10\22

Dave C.