banks

The Side Effects of Shadow Banking on Liquidity Provision

Published by Anonymous (not verified) on Wed, 13/11/2019 - 11:00pm in

Tags 

banks, liquidity

Teodora Paligorova and João A.C. Santos

Correction: When this post was first published, line labels in the panel showing Tier 1 capital ratios were reversed; the labels have been corrected. (November 13, 10:40 a.m.)

The Side Effects of Shadow Banking on Liquidity Provision

Over the past two decades, the growth of shadow banking has transformed the way the U.S. banking system funds corporations. In this post, we describe how this growth has affected both the term loan and credit line businesses, and how the changes have resulted in a reduction in the liquidity insurance provided to firms.

The Syndicated Loan Market before and after the Mid-1990s

The chart below shows the contributions of banks, shadow banks, and “other nonbank investors” to the financing of syndicated loans taken out by U.S. corporations over the past three decades. Shadow banks include collateralized loan obligations (CLOs), loan funds, pension funds, and hedge funds, while “other nonbank investors” include insurance companies and finance companies. A syndicated loan is financing offered by a group of lenders—referred to as the loan syndicate—who work together under the direction of the lead arranger to provide funds for a borrower.

LSE_2019_shadow-banks_santos_ch1ab-c_art

Banks funded about 90 percent of outstanding term loans in the early 1990s, with the remaining 10 percent funded by nonbank institutional investors, as shown in the left panel of the chart. However, starting in the mid-nineties, the portion of term loans funded by banks began to decline steadily, leveling off at less than half by 2010. The exit of banks was entirely compensated by the growth of shadow banks. As a result, by 2010 shadow banks were as important as banks, with each responsible for funding 45 percent of outstanding term loans. The remaining 10 percent of loans were funded by “other nonbank investors,” which is unchanged since 1990.

In contrast to that of term loans, the funding structure of credit lines did not change over the past three decades, as shown in the right panel of the chart. Throughout this period, banks preserved their exclusive role in funding nearly all of the credit lines granted to corporations. In a term loan, the borrower accesses the entirety of the funding at the time of the loan origination. In contrast, in a credit line, borrowers earn the right to draw down their funds at their will. This uncertainty poses liquidity risk to providers of credit lines and explains why banks dominate this business. Their deposit funding base gives them a wedge to deal with that liquidity risk.

Shadow Banks’ Indirect Effect on Credit Lines

The absence of shadow banks from the credit line business, however, does not mean they had no effect on credit lines. As we document in this paper, the arrival of shadow banks in the term loan business had a negative impact on the liquidity insurance that credit lines provide to corporations.

Firms usually take out deals that comprise both term loans and credit lines. Historically, the set of banks that funded the term loan would also fund the credit line. With the growing presence of shadow banks in the term loan business, some banks, in particular the financially safer ones, exited term loans and in the process also exited the credit line. They may have exited term loans because of the additional competition from shadow banks, or because of the changes introduced in term loans to attract shadow banks. (Specifically, traditional term loans with linear amortization schedules were gradually replaced with “bullet loans” that amortize only at maturity. Bullet loans are more attractive to CLOs and funds because they do not require the lender to manage the stream of cash flow payments from amortization. However, bullet amortization makes loans riskier than traditional term loans and thus not as attractive to banks with lower risk appetite.)

After several years of decline in the concentration of credit line syndicates, since the late 1990s this trend has reversed and concentration has been increasing in parallel with the growth of shadow banks in the term loan business, as shown in the left panel of the chart below. The right panel, which plots the average tier 1 capital ratio in credit line syndicates, shows that credit line syndicates in deals with shadow banks have, on average, lower capital ratios compared to syndicates of credit lines in deals without shadow banks. Here, too, the difference emerges in the period of rapid growth of shadow banks in the term loan business.

LSE_2019_shadow-banks_santos_ch2ab-c_art

These changes in credit line syndicates are important because both the concentration and risk profile of syndicates are critical to the value of a credit line. Credit lines will meet borrowers' expectations solely to the extent that syndicate members are able to deliver on their credit commitments, because each syndicate member is only formally responsible for its share of the loan investment. In other words, when a syndicate member is unable to meet its loan commitment, the funds available to the borrower are reduced, unless another syndicate member steps in to fill the void left by the former member. Therefore, the more concentrated a credit line syndicate is and/or the riskier are its member banks, the lower the liquidity insurance the syndicate provides to borrowers.

Conclusion

Starting in the mid-nineties, shadow banks began to increase their presence in the term loan business, and by 2010 they were as important to that business as banks, with each being responsible for funding 45 percent of outstanding term loans taken out by U.S. corporations. Throughout this period, shadow banks remained virtually absent from the credit line business. However, their growing presence in the term loan business triggered the exit of some banks, in particular the financially safer ones, from both term loans and the credit lines in the deals containing those term loans. As a result, credit line syndicates became more concentrated and made up of financially riskier banks, thereby reducing the liquidity insurance they offer corporations.

Teodora Paligorova is a principal economist at the Board of Governors of the Federal Reserve System.

João A.C. Santos

João A.C. Santos is a senior vice president in the Federal Reserve Bank of New York’s Research and Statistics Group.

How to cite this post:

Teodora Paligorova and João A.C. Santos, “The Side Effects of Shadow Banking on Liquidity Provision,” Federal Reserve Bank of New York Liberty Street Economics, November 13, 2019, https://libertystreeteconomics.newyorkfed.org/2019/10/the-side-effects-o....




Disclaimer

The views expressed in this post are those of the authors and do not necessarily reflect the position of the Federal Reserve Bank of New York or the Federal Reserve System. Any errors or omissions are the responsibility of the authors.

A central dysfunction: house price inflation, stagnant economy

Published by Anonymous (not verified) on Mon, 11/11/2019 - 12:11pm in

[Published at Pearls & Irritations, 7 Nov]

The problem with the housing bubble is not a shortage of housing, the problem is an excess of money. The solution is to restrict the amounts banks can loan. The solution is a credit squeeze. But it would have to be done carefully and the government would have to be willing to spend.

The housing market is rebounding. It is through the slump. The downturn is over and the market is making gains. So say the media reports, written by the property industry. Rising house prices are good.

Except they’re a disaster for everyone else.

In my small town, Sydney property money is spilling into the local market and pricing people out of their homes. Older women and single mums are homeless, couch surfing, taking anything the local community can find for them. Across the country young people can’t afford a house anything like the one their parents bought.

At the same time, the economy is stagnant. The Reserve Bank is begging the Government to spend some money, because near-zero interest rates can no longer do the heavy lifting to stimulate the economy. The Federal Government refuses, because it is stuck in its simplistic obsession with balancing the budget, cheered on by the government-hating libertarian media.

The Reserve Bank is caught in a hopeless dilemma. It lowers interest rates to stimulate the economy, and instead stimulates the housing market. If it raises interest rates it risks tipping the economy into actual recession, not just a per capita recession, and that risks popping the housing market bubble and bringing on a major downturn.

Why does economic management seem to be so hard these days? It is little remembered or remarked that in the postwar decades Australian GDP growth averaged above 5% per annum, unemployment averaged 1.3%, inflation was a moderate 3.3% and average wage earners could afford to buy their home. Why can’t we do that again?

We probably can, but we might have to regulate the banks. If that sounds wicked and leftist, then Bob Menzies was a pinko lefty because he imposed credit squeezes when the economy was ‘overheating’. But we don’t do that any more, it’s against our religion. Insead we rely solely on the wet-lettuce weapon of interest rates.

Banks are free to loan as much as their minimal duty of care suggests to them. As property prices rise, they can loan more. That allows property prices to be bid even higher, feeding a spiral. Economists used to be very alert to wage-price spirals, until employee rights were crushed, but many remain oblivious to house-price spirals, also known as property bubbles. In case anyone still disputes the existence of a bubble, house prices are two or three times higher than they used to be, relative to GDP or average incomes.

Australia has one of the highest ratios of private debt to GDP in the world and it is mostly household mortgage debt. This is dangerous because if the bubble bursts the money supply will shrink and bring down the whole economy. When that happened in the US it triggered the Global Financial Crisis.

All of this was pointed out some time ago by economist Steve Keen. He is widely disparaged because he unwisely tried to predict when the housing bubble would burst. Predicting the timing of a collapse is nearly impossible, even when the potential is obvious. Keen did not count on governments’ zeal in keeping the bubble inflated.

So here we are with a severely distorted, anaemic and precarious economy. The economic managers either deny there’s a problem or are unwilling to do anything about it, either because they’re afraid to disturb it, they don’t know what to do, or the remedy is against their religion.

The problem is not a shortage of housing, the problem is an excess of money.

The central problem is that bank deregulation allowed banks to loan more, which allowed asset-price inflation to take off. Money is channeled into unproductive property speculation rather than into productive investment.

The solution is to restrict the amounts banks can loan. The solution is a credit squeeze. The best solution would be to restrain credit for purchasing existing assets but not for investment in productive activities – activities like hiring people to make useful stuff. With two levers to work, the Reserve Bank would have some hope of effective action.

The trouble is the economy is now so precarious there would be a risk of triggering a crash. That’s the trouble with unregulated, unstable markets, their feedback dynamic can suddenly reverse, switching from an accelerating boom to an even faster bust. Mainstream economists have nothing to say about unstable markets because their theories exclude instability to keep the maths more manageable and their delusions unscathed.

A carefully coordinated slowing of property credit combined with government spending that could be rapidly ramped up might pull off the balancing act. Something like what Rudd and Swan pulled off during the GFC.

In the medium term it might be necessary to allow some general inflation so other prices and wages catch up and rebalance the economy. That could cause a bit of pain for the propertied class, but they’ve had it pretty good for a long time and mostly they would not be thrown out of their houses, as is happening to the unpropertied now. As always, an alert and willing government (hard to imagine, I know) could be ready to help out any hardship cases.

David Rosenberg’s Refutation of Latest Corbyn Anti-Semitism Smears

As I said a few days ago, the Tories must be desperate. They and their allies in the press have fallen back to the old smears of anti-Semitism against Jeremy Corbyn. A Reform Rabbi, Jonathan Romain, wrote an article in last Friday’s Times warning its readers not to vote for Labour, because he was afraid of the terrible consequences of a Corbyn-led government for Britain’s Jews. And Stephen Pollard, the non-Jewish, goysplaining editor of the Jewish Chronicle, has written an article aimed squarely at gentile Brits, urging us not to vote for Corbyn because ditto.

David Rosenberg of the Jewish Socialist Group has written another excellent reply to the latest round of smears. Rosenberg himself has been the subject of smear attacks and protests by ultra-rightwing Zionists. A few days ago Jonathan Hoffman, a former leader of the Zionist Federation, was doing his usual schtick of marching around screaming about anti-Semitism in protest at a talk Mr Rosenberg was given to the East London Humanists. Whom he also accused of anti-Semitism, because they’re militant atheists and are anti-Judaism. Well yes, they are. They are also anti-Christianity, anti-Islam, anti-Hinduism, and anti-religion generally. That does not mean that they stand for the persecution of Jews, or Christians, Muslims, Hindus or anyone else. As for Rosenberg being an anti-Semite himself, his piece, ‘Who’s Afraid of Jeremy Corbyn’, begins with him describing a journey he made as part of a group of sixty people on a four day educational visit to Poland. It was organised by Unite Against Racism and many of the people on it were trade unionists and members of the Labour party. They also ranged from sixth former to older people, including Holocaust survivors, some of whose terrible experiences he briefly describes. Rosenberg was a speaker at the event, but before he did, they were treated to a message by Jeremy Corbyn. It was not electioneering, but a private message, meant for the travelers alone. Rosenberg writes

But just before I spoke, we watched a video message that had been filmed in one of theScreen Shot 2019-11-06 at 17.22.31 busiest weeks of Jeremy Corbyn’s year. The election had only just been called but he found time to record a message to wish our group well on our visit. This was not electioneering. This was not a social media post to be broadcast by Labour’s Press Team for sharing far and wide. It was simply a private, personal, heartfelt message to our group, from someone who has spent their life confronting racism and fascism and posing an alternative to hatred.

“Your visit to Auschwitz,” Corbyn told us, “will be a poignant experience. I have been there myself.” He described antisemitism as an “evil cult that has to be destroyed in all forms.” He recalled a visit he made, in summer this year, “to a small Jewish museum in Romania next to a railway line, where hundreds of thousands of Jews were rounded up in 1944 and deported to their deaths.” He closed by calling on us to “unite as people to say we will not tolerate racism in any form in our society, be it antisemitism, be it Islamophobia, be it homophobia or any other kind of discrimination.”

Rosenberg goes on to criticise Romain’s article, which was part of the media’s general evidence-free argument against the Labour party. He also discusses how the Tories have been responsible for deliberately racist policies such as the Hostile Environment policy, and are now led by Boris Johnson and his vile remarks about ‘grinning picaninnies’ and women in hijabs. He also reminds voters thinking of switching from Labour to the Fib Dems because of the smears of racism just how racist the Lib Dems themselves are. They not only supported Tory austerity policies, which disproportionately affect ethnic minorities, they also supported the Hostile Environment. And they did some extremely racist campaigning themselves in Tower Hamlets. He writes

Some of us with longer memories might recall the role of the Liberal Democrats in Tower Hamlets in the early 1990s where Lib Dem leaflets linked the presence of Black and Asian people with the housing shortages, giving further credibility to the overtly racist BNP who were polling well. Other leaflets distributed by the Lib Dems accused Labour of diverting funds towards the area’s Asian communities. In the end the BNP won that seat, and the Lib Dems locally were widely seen as playing a despicable and racist role.

He also attacks the Torygraph article which quotes Conservative chairman James Cleverly that British Jews are preparing to flee Britain if Corbyn gets in. He notes that three years into Corbyn’s leadership of the Labour party, fewer Jews than ever are actually leaving for Israel. But he also notes the anti-Semitic undertones of the Torygraph and Jewish Chronicle’s article. Both stereotype Jews as rich capitalists. He writes

But the more serious point contained in this suggestion is the not-so-subtle antisemtism of both the Telegraph and Cleverly.

In essence they argue that a Corbyn government will launch a vengeful attack on wealth. Those most committed to private enterprise fear being squeezed by a radical Labour government, and the suggestion seems to be that the Jewish community, often stereotyped as an overwhelmingly rich, business-orientated community, will especially feel that pinch. It is an argument that has been rehearsed by the very right wing Jewish Chronicle editor, Stephen Pollard, who gave space in December 2018 for an appalling article in his paper by Alex Brummer with a headline you might have expected to see in a fascist journal: “The thought of Jeremy Corbyn as PM has Jewish investors running for the hills”.

Three months earlier, Pollard himself, had attacked a tweet by Jeremy Corbyn in which Corbyn said that the people who caused the financial crash of 2008 “call me a threat. They’re right. Labour is a threat to a damaging and failed system rigged for the few.” Pollard tweeted: “This is ‘nudge, nudge, you know who I’m talking about don’t you? And yes I do. It’s appalling” In response I tweeted: “Stephen Pollard and Jeremy Corbyn. One of them seems to think all bankers are Jews. Clue: it is not Jeremy Corbyn.”

But when I read this drivel, stereotyping the Jewish community as capitalists, I think of the many Jews I know well who work in the health service and caring professions who will be boosted by the prospect of a Labour government that is committed to funding their sectors rather than selling them off. I think of the struggling Jewish single parents and pensioners I know, and unemployed Jews, who have every reason to welcome a Corbyn-led government that would boost welfare payments rather than cut them, and would undertake other serious anti-poverty measures. I think of Jews I know who are users of mental health services, whose provision has been cut to the bone by the Tories. I think of elderly Jewish acquaintances living in the East End for whom repairs to their council housing and a well resourced health service are very high on their agendas. These people need a Labour government to be returned on December 12th as much as as their non-Jewish counterparts.

Absolutely. I’ve met Jews, who’ve despised the Tories for what they’ve done to the Health Service because they’ve, or their parents, have worked in it.

He also gives more news that you won’t find in the lamestream media. Apparently here are two new initiatives by British Jewish young people to tackle the Tories. One is Vashti Media, which states that it is a ‘microphone for the Jewish Left’, and another is ‘Jews Against Boris’.

He also discusses a talk the group were given by a Polish socialist and anti-fascist, who talked about the current political situation in his country and the mobilisation of anti-Fascists to combat the recent nationalist marches through Warsaw. His article concludes by commenting on the way the Fascist and Nationalist right in Poland and eastern Europe are being supported by right-wing forces across the continent, including Britain’s Tories.

As we sat in a cab driving to the airport on Monday, we passed a wall graffitied with a crossed out Star of David in a circle. The populist right and far right in Poland, and other countries central and eastern Europe, have been drawing support from right wingers in Western Europe including Britain’s Tory Party. Those elements in Britain that are leading the false charge against Jeremy Corbyn, as if he were some sort of threat to Jews in Britain, need to stop playing dangerous factional political games and face up to where the threats are really coming from.

https://rebellion602.wordpress.com/2019/11/06/whos-afraid-of-jeremy-corbyn/

As Rosenberg and other, genuine anti-Fascist activists both Jewish and gentile have made clear, Jeremy Corbyn is not an anti-Semite. Since he’s been leader of the Labour party, the level of anti-Semitism has been at the lowest its ever been for years. Anti-Semitism, like racism generally, is always strongest on the right. And that means the very same Tories, who are trying to smear Corbyn as a Jew-hater.

 

BBC Denies Political Bias and that Politicians’ Views Are Their Own

Ah, the allegations that the Tories are massively biased in favour of the Tories are clearly starting to upset the Beeb. The Corporation’s Director of News, Fran Unsworth, has appeared in the pages of today’s I newspaper for Tuesday, 5th November 2019, denying that the Beeb is biased and saying that allowing politicians to give their views is not platforming them. The I’s article by Richard Vaughan, ‘Political views are not our own, BBC tells viewers’, which reports her comments runs

The BBC news director has been forced to remind audiences that interviewing politicians does not mean the corporation endorses their political opinions.

Fran Unsworth told viewers that “interviewing is not platforming” and said that audiences will have their beliefs challenged as the country prepares for five weeks of generation election campaigning.

Journalists have been regularly booed and jeered at political events by audiences objecting to the line of questioning of a political leader.

Last week, an audience member at the launch of Labour’s election campaign catcalled the BBC’s political editor Laura Kuenssberg, blaming her for the party’s failure to win a majority in the 2017 election.

When Ms Kuenssberg pointed out Jeremy Corbyn did not secure enough votes to gain a majority in 2017, an audience member shouted, “No thanks to you, Laura.”

During the Conservatives leadership campaign Sky’s political editor Beth Rigby was subjected to booing by Tory activists for asking Boris Johnson a question.

Ms Unsworth told audiences to expect a range of political opinions to be given air time by the BBC. She reiterated that airing political opinions is not endorsing them, and the BBC will not seek to create a false balance in its general election reporting.

She wrote: “We have one simple priority over the next few weeks – our audiences. They have a wide range of views, and political allegiances, and we are here to serve all of them, wherever they live, whatever they think, and however they choose to vote.

“We do not support ‘false balance’. There are facts and there are judgments to be made. And we will make them where that is appropriate.”

Ms Unsworth has cited Ofcom research indicating that audiences tended to shy away from spaces or programmes in which their opinions will be challenged.

Just who does Unsworth and the Beeb think they’re kidding? 

There is an abundance of evidence that the Beeb is extremely biased against Labour. I’ve blogged before about how the media monitoring units at Glasgow, Edinburgh and Cardiff universities found that the Beeb was far more likely to talk to Conservative politicians and spokesmen for the City about politics and the economy than Labour politicians and trade unionists. And Barry and Saville Kushner, the authors of  Who Needs the Cuts? attacking austerity, state that the Beeb and the media generally far prefers talking to Tories and other politicians and economists, who support the wretched Tory policy. They won’t have on trade unionists or politicians that oppose them. When these voices do appear, they are shouted down or rapidly cut short in what they have to say. The Beeb is very definitely platforming the Tories. Only the other day I reblogged a graphic from EL4JC showing just how biased the Tories were in their selection of guests for their news and politics panels. These are mostly Tory, but Centrist politicians are also included more than the Left. To deny that this is not platforming the Tories is ridiculous.

And then there’s the issue of the bias of the interviewers. Like regarding the anti-Semitism smears. In fact, Labour is the party with the least anti-Semites within it, as I’ve said. The witch hunt to root out anti-Semitism isn’t about Jew hatred at all. It’s a cynical ploy by the Blairites to purge the party of Corbyn’s supporters, which they’ve tried to do on risible, trumped up charges. As they’ve done to people like Ken Livingstone, Jackie Walker, Tony Greenstein, Martin Odoni, Marc Wadsworth and Mike. The right-wing Zionists hate Corbyn and his supporters because they criticise Israel for its brutal treatment of the Palestinians. The Tories and the political and media establishment, on the other hand, are simply using the accusations as a useful tool to smear Labour, because they’re really afraid of a government that will overturn Thatcherism and actually help ordinary working people. Which naturally include Jews.

Hence whenever a Labour politician is interviewed, as John McDonnell was on Sunday, there are questions about the anti-Semitism issue. But the Tories have a higher level of anti-Semitism in the ranks, and a vicious strain of Islamophobia. But this is certainly not subjected to the same scrutiny.

And then there’s the insulting treatment they give ordinary Labour politicians, and the stunts they pull for the benefit of the right. Like the mass resignation of Blairite Labour MPs, which was announced on the Andrew Marr show, appears to have been planned with the show’s producer. Fiona Bruce has disgraced Question Time by gaslighting Diane Abbott and falsely claiming that the Leave campaign did not break electoral law. And when she did ask a tough question of a Conservative panelist, she tried to soothe it all over by telling him she was ‘just teasing’. And so on ad nauseam.

Unsworth’s comments about Ofcom don’t cut any ice either. Not when the Beeb has received a massive number of complaints about the flagrant bias of their Panorama documentary about anti-Semitism in the Labour party. Mike’s posted an extensive critique of this journalistic travesty, as have very many other left-wing blogs. And a complaint has been made to Ofcom or the relevant authorities. There’s even a documentary being made and about to be released about the programme’s bias.

Unsworth is, I believe, simply lying through her teeth when she claims that the Beeb is not biased. It is, and provably so. And she insults us by telling us that isn’t. But the fact that she has had to try to defend and rebut the accusations show how they’re biting.

Good. Let’s continue until every last shred of credibility the Beeb has for its news reporting is gone and the Corporation is forced to admit its bias and correct it.

If that’s possible.

JOE Spoof Video: Jacob Rees-Mogg Sings ‘Monster Crash’

Published by Anonymous (not verified) on Tue, 05/11/2019 - 7:30am in

It was Halloween last Friday, and those merry funsters over at JOE released another of their spoof videos to celebrate. This consisted of edited footage of the young master, Jacob Rees-Mogg, singing a parody of the old hit, ‘Monster Mash’. Mogg and Johnson both have financial interests in Britain suffering an economic catastrophe thanks to Brexit. With Mogg, it’s personal through his own financial interests, while Johnson is supported by Hedge Funds, which have been shorting British companies and gambling on Brexit devastating our economy.

The video begins with Rees-Mogg singing

I was counting my money

Late one night

When my eyes beheld

A most frightful sight

There’s only £55 million

In my account

So I hatched a plan

To get a larger amount.

Then BoJob comes in with

‘Let’s cause a crash.’

Rees-Mogg: We’ll cause a monster crash.

BoJob: A monster crash.

Rees-Mogg: Let’s make loads of cash.

BoJob: A monster crash.

Rees-Mogg: Get filthy rich in a flash.

BoJob: A monster crash.

Rees-Mogg: And I’ll increase my stash.

I’ve got a great big mansion

In the rural southwest

An ancestral home, and a London address.

I’ve a hedge fund company,

Money offshore,

But it’s just not enough,

I still want more.

BoJob: Let’s cause a crash.

Rees-Mogg: We’ll cause a monster crash.

BoJob: A monster crash.

Rees-Mogg: Let’s make loads of cash.

BoJob: A monster crash.

Rees-Mogg: Get filthy rich in a flash.

BoJob: A monster crash.

Rees-Mogg: And I’ll increase my stash.

Back to BoJob: Let’s cause a crash.

And as they continue singing the refrain, there are shots of Rees-Mogg as Dracula, fleeing a victim wielding the EU flag like a cross, Michael Gove as the Mummy, Boris Johnson as Frankenstein’s Monster, and Iain Duncan Smith as Nosferatu.

The last scene is of a hand thrust up from a grave market ‘Margaret Thatcher’.

Ooooh! Spooky!

 

 

Desperate Tories Now Reduced to Anti-Semitism Smears Again

Do I scent fear hitting the Tory ranks? Surely not! But the proof is there, as the increasingly desperate Torygraph and the Jewish Chronicle are reviving the old smear that Jeremy Corbyn is an anti-Semite. But they’re simply parroting the claim of James Cleverly, the Tory chairman – and Mike’s absolutely right that his monicker is a misnomer – that Jewish families are going to leave the UK, ’cause they’re afraid of what Corbyn’s going to do if he gets in.

Really? I don’t believe it!, to use Victor Meldrew’s old catchphrase. Has anybody asked the views of Corbyn’s many Jewish supporters? Like, you know, Jewish Voice for Labour? Jewdas, with whom Corbyn spent a Passover seder? Mr Shraga Stern and the Haredi community, who Corbyn gave his support to their campaign to save their historic London cemetery from redevelopment? Or just ordinary, grassroots Jewish Labour voters, like those, who have appeared on YouTube and in print stating clearly that there is anti-Semitism in the Labour party, but they personally haven’t experienced it.

No, clearly not, because this would undermine the narrative the British political establishment want to push: that Jeremy Corbyn is a vicious anti-Semite, and so are his supporters – decent, anti-racist women and men like Jackie Walker, Tony Greenstein, Marc Wadsworth, Ken Livingstone, Mike, Martin Odoni and too many others. The pro-Israel right is pushing this for all it’s worth, because Corbyn isn’t an anti-Semite. But he does want a just peace in Israel with the Palestinians. And that can’t be tolerated. As for the Tories, they’re simply using any smear they can to destroy Labour, while it’s been repeated by the Blairites within the party as a way of ousting him and purging his supporters.

As for the two papers pushing this story, they’re going down the tubes at a rate of knots. The Torygraph has lost much of its readership, partly due to its mercenary editorial policy, which has seen it sacrifice journalistic integrity to the interests of its advertisers. And the Jewish Chronicle is under the helm of Stephen Pollard, who’s as Jewish as I am. Hence writer and academic Michael Rosen, who I think was Children’s Poet Laureate, has accused him of ‘Jewsplaining’. Yes, Pollard’s a non-Jew, who’s taken it upon himself to tell Jews what to believe as Jews. But he’s also a right-wing hack, who when he was with the Depress and similar rags wrote foam-flecked rants demanding the destruction of the welfare state, attacking the trade unions, and claiming that Labour and the Scary Muslims are going to destroy western civilisation.

The Tories have been pushing this line for a long time, ever since around about 9/11, I think. I remember Frederick Raphael giving a glowing review in the Spectator to a novel set a few years hence, in which the remains of the socialist parties in the EU and the Scary Muslims have joined together to begin a new Holocaust. And long before Corbyn won the Labour party leadership, the Right were already leveling accusations of anti-Semitism. Their target was Ed Miliband, who was, er, Jewish. And there was more than a shade of anti-Semitism in their attacks on him. Like the Mail’s article attacking his father, Ralph Miliband, as the ‘Man Who Hated Britain’. Miliband pere was a Belgian immigrant, who fled here from the Nazis. And unlike the father of former editor Paul Dacre, who stayed put in Britain as their society correspondent, Miliband fought for this country in the War. And then there’s the Mail’s own infamous history of supporting Mosley and the British Union of Fascists, and how the father of the newspaper’s current editor, Geordie Grieg, was a member of one of the pro-Nazi British societies before the War.

And the anti-Semitism continues, along with the islamophobia and bog-standard racism. Zelo Street has posted a very good riposte to Sunday’s Andrew Marr Show, where the show’s host interviewed John McDonnell. Of course Marr had to raise the question about what Labour was doing to allay the fears of the Jewish community about anti-Semitism. It’s now part of the standard set of questions the media now ask. But they don’t ask it of the Tories, despite the flagrant examples in the Tory ranks.

For example, how about Jacob Rees-Mogg calling John Bercow and Oliver Letwin ‘illuminati’ in parliament? As I’ve blogged previously, the Illuminati were a freethinking sect, who infiltrated the Freemasons in Bavaria. They are now at the centre of a bonkers conspiracy theory, which sees them as the secret force behind the world’s governments, manipulating politics and industry. Not all varieties of this theory are anti-Semitic. In some, they’re just the global elite, who are seen as Masonic Satanists. But it does merge with the stupid, murderous theories about Jewish bankers. The accusation so alarmed one Jewish academic, that he wrote an article about it revealing the anti-Semitic underpinnings behind the accusation. But it was about the Tories, so the media ignored it. Oh well, at least Mogg didn’t accuse Bercow and Letwin of being members of the Zionist Occupation Government.

Then there’s Priti Patel’s support of the Viktor Orban, the head of the viciously anti-Semitic and islamophobic Fidesz party of Hungary, and her denunciation of the ‘north London liberal elite’. Now she might be referring simply to rich liberals in that part of London. But it also sounds very much like an attack on a certain religious/ethnic group, who stereotypically live in Golders Green.

Gove has also tried to smear Labour again with another accusation of anti-Semitism, following a tweet from an individual, who wasn’t a member of the party. Apart from the fact that Labour can’t suspend people who aren’t members, Gove himself was also criticised by the Jewish Chronicle, amongst others, for opposing an attempt by the European Parliament to censure Orban’s government in Hungary for its anti-Semitism.

And this is all quite apart from the rabid islamophobia and racism of the various twitter and Facebook groups supporting Boris and Jacob Rees-Mogg, and Gove’s equally odious wife, Sarah Vine, declaring that the statement that there should be ‘less Islam in Britain’ was funny.

Going back to the claim that Jewish families are going to leave Britain to escape Corbyn, Mike points out on his blog how this resembles Phil Collins’ statement back in the early ’90s that if Labour won the election, he’d go to America. Well, he didn’t. The Tories won the ’92 election, so he didn’t have to. But he didn’t leave when they won the ’97 election either.

It also reminds me of the curious case of Danny Cohen. Cohen was a senior Beeb executive, who bogged off to Israel claiming that Labour was anti-Semitic and Britain was unsafe for Jews. Not that unsafe, however, as I think he’s come back. So much for the claim that contemporary Britain is like Germany in 1937. It isn’t, not by a very long chalk.

Treat all this as just more scaremongering from the Tories. It’s just more lies, from a desperate and lying party. And one that hopefully will be out of power after the election.

For more information, see: https://voxpoliticalonline.com/2019/11/04/jewish-families-will-leave-this-nonsense-claim-is-the-upshot-of-the-labour-anti-semitism-witch-hunt/

https://zelo-street.blogspot.com/2019/11/michael-gove-more-tory-anti-semitism.html

 

EL4JC Video Showing Just How Impartial the Beeb Isn’t

Mike over on Vox Political has reproduced a series of tweets showing a video produced by EL4JC. This is a graph showing the cumulative proportion of left, right and centre guests on various Beeb news and politics programmes. The columns in the graph increase as the figures for each day and programme is added to the sound of Greig’s ‘In the Hall of the Mountain King’ from the Peer Gynt suite. This ends by showing how massively biased the Beeb is in its selection of guests. Here’s a shot of the last image.

Embedded video

As you can see, the Beeb is massively biased in favour of the Right. Those guests, who are not from the Right are drawn far more from the Centre than the Left. One of those, who retweeted the image, Julie Houghton, commented

this is appalling. Retweet everyone and share. Sick of seeing right wing nutters having such a biased platform. Handed to them on a plate by the BBC & don’t get me fucking started on right wing lying newspapers, distorting the truth. Something has to change.

Yes, it does. And this analysis of Beeb bias won’t surprise anyone – not on the Left at least. Barry and Saville Kushner in their book, Who Needs the Cuts, tell how the Beeb on its news programmes always featured people supporting austerity to the exclusion of trade unionists, Labour politicos and protesters arguing otherwise. When these dissenting voices were allowed on, they were quickly silenced, or in some cases actually shouted down by the presenters. The media research departments at Glasgow, Edinburgh and Cardiff universities have also produced reports into Beeb political bias. They concluded that the Beeb is far more likely to have speaking on their programmes Conservatives and spokesmen from the City than Labour politicians and trade unionists.

But why this massive bias now? Mike also reproduces this image, containing a tweet from a former BBC newsman, Marcus Moore, and a graphic about the career of Sarah Sands, now editor of the Radio 4 Today programme.

View image on Twitter

View image on Twitter

Moore’s statement that this all follows Cameron’s decision to appoint John Browne, formerly of BP, to the government department responsible for recruiting management and senior executives from private business to reformed government departments also deserves comment. I don’t doubt that Moore’s absolutely correct in that the ultimate responsibility for all this lies with Cameron. But Tony Blair was also keen to have the BBC parrot lines spouted by New Labour. And the appointment of private business people to the heads of government departments was not only a New Labour corporatist policy, but also that of the Nazis in their promotion of private industry. Not that the Beeb wasn’t biased in favour of the Tories long before that.

So where should people go for proper information?

Mike suggests that people would be better served taking it from social media, and the independent sources that so terrify the establishment media. So much so that there are now groups like Stop Funding Fake News, who adopt a spurious concern to prevent people getting their news from extremist sources. By which they mean websites like The Canary, which supports Jeremy Corbyn, but is not ‘extremist’ nor does it retail false information. The establishment claim that people taking their information from online sites like The Canary is not only fueling extremism, it is also destroying the ideological consensus built by people all reading and watching the same newspapers and news programmes. In other words, they’re afraid that people are moving away from them and their influence is being undermined by their online competitors.

Good.

The lamestream media are all pushing, to a greater or lesser degree, the same Thatcherite policies that have done so much damage to our country, and have destroyed so many lives – of the unemployed, the poor, and the disabled. It deserves nothing but our contempt, and people are far better advised looking at excellent left-wing blogs and sites like The Canary, The Skwawkbox, Novara Media, Evolve Politics, Vox Political, Zelo Street, Another Angry Voice, the Disability News Service and so on.

But Mike’s piece also concludes with a tweet from Mike Smart, warning people only to take their anger out on Beeb news programmes. Otherwise they will play into the hands of the right-wing and corporate shills wishing to privatise the Beeb altogether.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Review: Revolutionary Love by Rabbi Michael Lerner

Published by Anonymous (not verified) on Sat, 02/11/2019 - 4:43am in

J. Edgar Hoover called Rabbi Michael Lerner, “The most dangerous man in America.” Get Rabbi Lerner’s new book, Revolutionary Love: A Political Manifesto to Heal and Transform the World, and you’ll know why. You already know America is f’d-up. Here is a

The post Review: Revolutionary Love by Rabbi Michael Lerner appeared first on Greg Palast.

Have I Got News For You Pushes the Anti-Semitism Smears against Corbyn

Hey, ho! Another day, another anti-Semitism smear against the Labour party from the Beeb. I might be overreacting here, but my respect for Victoria Coren has just taken a very severe dent. On Have I Got News For You tonight she made a very stupid joke about Corbyn believing in the classic conspiracy theory about Jewish bankers. She told the world that Labour had gone from a surplus in funds of several million to being £650,000 in debt. She then told Corbyn, ‘Jeremy, if you want to know someone good with money, it’s the Jewish bankers you believe are conspiring against you.’ Or something like that. I’ve forgotten the precise wording, but no doubt someone will put it up on YouTube tomorrow. But whatever the wording, she definitely mentioned Corbyn and the Jewish banking conspiracy.

I’m really disappointed as I thought she was better than that.

I can’t say I’m a fan of Have I Got News For You. I got sick and tired of seeing the Beeb push lies on it. It annoyed me so much at one point I stopped watching it completely. I wasn’t really keen on seeing it tonight, truth be told. Perhaps I should have kept well away.

But for the information of Victoria Coren-Mitchell and anyone else who might be taken in by the media’s lies, neither Jeremy Corbyn nor his followers believe in stupid, murderous theories about Jewish bankers. Indeed, as Mike and so many others have put up on their blogs, Corbyn has a proud record of defending the British Jewish community. He even criticised the Beeb and other broadcasters for not putting on enough programmes to cater for the Jewish community. What he has done to cause outrage to the Conservative British Jewish establishment – the Board of Deputies of British Jews, the Jewish Leadership Council and former Chief Rabbi Jonathan Sacks, among others, is demand proper civil rights and equality for Palestinians. Freedom from torture, house demolitions, arbitrary arrest, seizure and eviction from ancestral lands by the Israeli state and militant settlers, the dismantlement of the system of apartheid that exactly mirrors that of White South Africa. You know, basic human rights like that.

In his criticism of Israel, Corbyn has enjoyed the support of Jews, who share his concerns. Hajo Meyer, at whose speech criticising Israel Corbyn committed the heinous crime of nodding in agreement, is not only Jewish but a Holocaust survivor. Many of the entirely decent people smeared as anti-Semites and suspended or expelled from the Labour party by their kangaroo court, are also Jews. People like Tony Greenstein, Jackie Walker, Martin Odoni and many, many others.

No-one from the BBC has ever had the decency to talk to any of the people smeared by the witch-hunters, whether anti-racist gentiles like Mike or Ken Livingstone, or the self-respecting, Torah-observant and secular Jews like those I’ve mentioned. They have sought comments on the anti-Semitism smears from people like the Israel-critical Jewish American scholar, Norman Finkelstein, and have given only grudging airtime to Jewish Voice for Labour. Nor has anyone mentioned that some of the heroes of the Warsaw Uprising against the Nazis, like Marek Edelman, were also supporters of the Palestinians. Indeed, Edelman caused notoriety in Israel by stating that the Palestinian rebels were the equivalent of his comrades in their revolt against occupation and murder by the Nazis. Edelman has passed on, but his legacy as an anti-Fascist and supporter of Palestinian rights is admired by veteran anti-racists in the Labour party like Tony Greenstein. A man who is also justly proud of the way British Jews and their gentile comrades in the Labour movement and trade unions resisted Mosley and his thugs before the War.

All this has gone by the wayside. Instead, the Beeb has followed the media pack and its self-imposed groupthink, and pushed ad nauseam the lie that Corbyn and the Labour party are institutionally anti-Semitic. And this latest smear of Corbyn is very suspicious in its timing. Zelo Street yesterday suggested that Louise Ellman’s resignation and the way news of it seemed to come first from the wretched Guido Fawkes was deliberately timed to do damage to Labour. Boris Johnson was in trouble, there hadn’t been an anti-Semitism smear scandal in a little while, so lo! Ellman manufactured one. As has the Beeb. As Mike and Zelo Street have pointed out, Ellman was a Thatcherite entryist parachuted into Liverpool by Blair. Jewish members of her constituency party have made a video stating that they have always been welcomed in the party and they do not recognise her comments about it.

https://zelo-street.blogspot.com/2019/10/louise-ellman-and-guido-fawkes.html

Good riddance to Louise Ellman and her lies about Corbyn and anti-Semitism

I don’t expect anything better than the BBC in this. The Beeb has been pushing the anti-Semitism smears ever since they were first made. But I did expect better of Victoria Coren-Mitchell. How wrong I was.

 

Private Eye Cheers Defunding Campaign Against the Canary

I’ve blogged many times before about Private Eye’s hatred of Jeremy Corbyn and their poisonous support for the anti-Semitism smear campaign against Labour. One of those pushing it in the Eye is ‘Ratbiter’, revealed by Tony Greenstein a little while ago to be the pseudonym of Groaniad/Absurder hack Nick Cohen. Cohen, who isn’t actually Jewish despite his name, is clearly one of those miffed that Labour has elected someone who’s actually going to do something for Britain’s working people, and isn’t prepare to ignore or support crimes committed by the British establishment’s favourite colonialist state in the Middle East. He’s the author of a piece, ‘Faking Hell…’ in this fortnight’s issue of the satirical rag for 18th-31st October 2019, praising the Stop Funding Fake News organisation for their campaign to stop advertisers using those social media sites they consider to be outlets for fake news. Cohen’s article starts by praising the site for doing what he believes Google should be doing in preventing firms advertising with extremist web sites. He starts off by describing how those on the extreme right have had their advertising revenues hit, as firms like Sky, Macmillan Cancer Care, Which?, the World Wide Fund for Nature, Manchester United, Chelsea, Ted Baker, Experian and Ebay have requested Google to take down their advertising on Breitbart, Westmonster, and TR, the site of the notorious islamophobe and jailbird Tommy Robinson. Thanks to their campaign, Robinson’s site has lost 70 per cent of its income. Which might stop some of his jaunts abroad for a little while. But almost inevitable, the article goes on to attack The Canary. This has been a particular bete noir of the Eye for some time. They really don’t seem able to stand the idea that there are any social media sites supporting Corbyn, not least because they’re also a rival to the lamestream media. Which also includes Private Eye. Describing SFFN’s attacks on The Canary and its effects, Cohen says

While far-right sites target Muslim immigrants, far-left sites target Jews. “The Canary”, the campaign tells its followers and advertisers, “regularly publishes fake news and attempts to justify anti-Semitism”. it also feeds the conspiracy theories of the far left. One hideous example came when the campaign discovered that Unicef, which tends to the victims of the Syrian and Venezuelan regimes, was advertising on the Canary, which has denied the humanitarian crisis in Venezuela and pretended that Syrian president Bashar al-Assad did not use chemical weapons against Syrian civilians in Douma. In August, the Canary cut its staff from 25 to seven. Perhaps inevitably, it blamed “political Zionists” targeting advertisers.

The toppling of the Canary is “the strongest evidence yet that the clickbait business model can be defeated”, the campaign said. Combine it with changes to Facebook’s algorithms to reduce the prominence of media businesses, and fake news in the UK is taking a hit.

Let’s go through and critique this pile of driveling hogwash. 

Firstly, the Canary isn’t a ‘far left’ site. As I understand it, it supports Jeremy Corbyn. Corbyn’s programme of nationalisation, the restoration of the NHS, welfare state, worker’s rights and trade unions, isn’t extreme left, except in the addled brains of convinced Thatcherites. It’s actually a return to the social democratic consensus, which was actually the centre left before the appearance of Thatcher and her campaign of privatisation, deregulation and the destruction of the welfare state and the decimation of working class organisations.

Secondly, it doesn’t promote anti-Semitism. What it has done is attack, rebut and refute the anti-Semitism smears against the Labour party and specifically Corbyn’s and his supporters. And these are very much politically motivated. It comes from the Blairites, who are determined to cling to power whatever the cost, the British political and media establishment, which is simply terrified of anyone giving back any power to working people, and the Israel lobby. And a large part of it comes from the Israel lobby. Tony Greenstein, Jackie Walker, Asa Winstanley of the Electronic Intifada, and the Jewish American academic and critic of Israel, Norman Finkelstein,  have described at length how Israel and its supporters have been smearing any and all critics of Israel as anti-Semites since the 1980s, even when they are anything but Jew-haters, as in the case of those above. It’s their only defence against the justifiable criticism and condemnation of Israel’s government for its crimes against the Palestinians. It’s hasbara, the Hebrew term for Israeli civilian propaganda. The campaign against Israel’s critics, including Corbyn, is run by a special department of the Israeli state. This is why one of those smeared as an anti-Semite is Cyril Chilson. Mr Chilson is the son of a Russian Red Army pilot and a holocaust survivor.  He’s Israeli, and served in the IDF and then an intelligence unit producing such propaganda. It’s because of his work for the Israeli military that he recognised the attacks on Corbyn and his supporters for what it was, and denounced it. And as result, this man, the son of people whose resistance and survival of Nazism was truly heroic, has been smeared as a Jew-hater. Disgusting.

Thirdly, the Anglo-American media have been producing fake news about Venezuela and Syria. Some of the footage of refugees supposedly fleeing persecution by Maduro’s regime was faked. Independent experts analysing the footage and evidence of the chemical weapons attack at Douma have come to the conclusion that this was also faked. Assad is a monster, who has killed and tortured in order to maintain power, and he does oppress his country’s Sunni Muslim population. But it doesn’t look like he was responsible for that atrocity. That lies instead with the ‘freedom fighters’ – ahem- which we’re supporting. You know, groups connected with ISIS and what evolved from the Syrian branch of al-Qaeda. But the neocons have been pushing for the overthrow of the Syrian regime since the 1990s, because Assad is a Shi’a, like the Iranian regime, although of a much more radical branch of that faith. He’s therefore allied to Iran, which the Americans also want to overthrow. See the pieces produced by the Jimmy Dore Show about this.

Cohen in his attack on the Canary for rightly rejecting the received view of these events is therefore parroting Neocon propaganda.

Zelo Street has written extensively about Stop Funding Fake News, exposing how it attacks decent left-wing social media sites, while at the same time remaining very shadowy itself. No-one knows who runs it, as their identities and connections are very much hidden. The Sage of Crewe has therefore advised companies not to be influenced by their misinformation and pronouncements, until they themselves become much more transparent.

And then there’s Private Eye’s hypocrisy for printing this drivel.

Ian Hislop, the magazine’s editor, appeared on Radio 4 a few years ago in a piece about satire down the centuries, explaining that what his magazine attacked was humbug, double standards. Private Eye is one of the few mainstream magazines that tries to bring the public the news behind the news, exposing double-dealing, lies and hypocrisy in the press, the government and industry. But publishing this attack on the Canary is very hypocritical, consisting as it does of nothing but lies and propaganda.

The Defunding of Arab Satirists Al-Hudood

And it’s especially hypocritical as a few pages before Cohen’s wretched piece, there’s a little article in the magazine’s ‘Street of Shame’ column, ‘Joke Now, Pay Later’, about how the Arabic satirical website, Al-Hudood, was experiencing a funding crisis. Metro Bank has told them it will no longer act as their bank, and they have not been able to find anyone else to do so. There has been no explanation from the banks for this refusal to deal with them.

This seems to be the same tactics Stop Funding Fake News are taking with the Canary and other left-wing bloggers and vloggers: try to take them down through preventing people from supporting them financially. Perhaps whichever oppressive regime or organisation has leant on the banks to withdraw their support for al-Hudood also considers that they’re ‘fake news’ and a dangerous, extremist organisation.

Private Eye does much good in its exposure of some of the underhand dealings in Britain and around the world. But this attack on the Canary is, like their attacks on Corbyn and his supporters, just pure hypocritical establishment lies.

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