January, 28 2010, 04:30pm EDT
![Center for Economic and Policy Research (CEPR)](https://assets.rbl.ms/32012691/origin.png)
For Immediate Release
Contact:
Alan Barber, (202) 293-5380 x115
Statement on Ben Bernanke's Re-Approval
WASHINGTON
The following statement by economist and CEPR co-director Dean Baker was released following Ben Bernanke's confirmation hearing:
The Senate approval of a second term for Ben Bernanke as Fed chairman
sends exactly the wrong message to the Federal Reserve Board and the
country. First and foremost, Mr. Bernanke failed in his job about as
spectacularly as is humanly possible. He sat back and watched the
housing bubble grow to a level where its collapse jeopardized the
stability of the U.S. economy.
The financial crisis and the economic downturn of the last two years
were entirely predictable outcomes of this collapse. Yet, Mr. Bernanke
insisted that there was no problem with the housing market, first in
his capacity as a governor of the Federal Reserve Board since 2002 and
then in his capacity as chairman since January of 2006.
Attacking the bubble would have been politically difficult since it
required going after a source of enormous profit for the financial
industry. Nonetheless, a responsible Fed chair would have used all of
the Fed's tools and power to prevent the bubble from expanding to such
dangerous levels, even knowing that he would face fierce opposition
from the financial industry.
Bernanke opted not to go this route, and tens of millions of people are
now facing the consequences in the form of unemployment, foreclosures
and/or lost savings. If he can get reappointed in spite of this lapse
in responsibility, it is difficult to see why any future Fed chair
would ever confront the financial industry under similar circumstances.
In addition to sending the wrong message with Bernanke's reappointment,
there were also several aspects to the debate around his reappointment
that set a discouraging precedent. First, Bernanke's supporters
repeatedly referred to the drop in the stock market in response to
concerns that his approval could be blocked as a reason for approving
Bernanke.
No serious economist would advocate setting policy around fluctuations
in the stock market. Economists from across the political spectrum
argue that policy must be focused on getting the economic fundamentals
right. It is unfortunate that Mr. Bernanke's supporters felt that they
had to use such a fallacious argument to advance their agenda and even
more unfortunate that this argument was apparently effective.
The second troubling aspect to the debate was the effective creation of
a false counter-factual. Many of Bernanke's supporters praised his
policies for turning around the economy quicker than had been
predicted. It is easy to show that this is not true. The January 2009
projections from the Congressional Budget Office, the Obama
administration, and most private forecasters proved to be overly
optimistic. The economy has done worse, not better than expected. The
claim that Bernanke's effective management in the post-Lehman era led
to a quick turnaround is a pure invention by his supporters.
Finally, it was disturbing to see that President Obama was apparently
able to get senators who opposed Bernanke to vote for cloture, when he
has apparently been unable to accomplish a similar feat with health
care and many other pieces of legislation. This suggests a prioritizing
of Bernanke's reappointment that is not in any way justified by his
importance to the economy or the country.
Even with all the pressure bought to bear, Bernanke was approved by the
smallest margin for any Fed chairman in history. There was strong
opposition from members of both parties. It would be encouraging if
Bernanke's opponents could press forward with the demand for a full
audit of the Fed. This would be an important step towards having a Fed
that is not exclusively accountable to the financial industry.
The Center for Economic and Policy Research (CEPR) was established in 1999 to promote democratic debate on the most important economic and social issues that affect people's lives. In order for citizens to effectively exercise their voices in a democracy, they should be informed about the problems and choices that they face. CEPR is committed to presenting issues in an accurate and understandable manner, so that the public is better prepared to choose among the various policy options.
(202) 293-5380LATEST NEWS
Bowman Calls for Primary Voters to Reject AIPAC Money at Rally With Sanders, AOC
Flanked by progressive heavyweights, Rep. Jamaal Bowman called for "the many" to defeat "the money" of AIPAC, which has set funding records in its effort to help defeat the pro-Palestine Congressman.
Jun 22, 2024
Congressman Jamaal Bowman, a prominent critic of Israel's war on Gaza, called on Saturday for voters to defeat the influence of the American Israel Public Affairs Committee, which has poured millions of dollars into defeating him, as he made his final campaign push before the Democratic primary in New York's 16th Congressional District on Tuesday.
The contest has seen one of the largest influxes of money of any U.S. House of Representatives primary race in history, mainly because of AIPAC's super PAC, the United Democracy Project (UDP), which has spent more than any interest group has ever spent on a House race—more than $14 million, according to The New York Times.
"AIPAC is scared to death," Bowman (D-N.Y.) said at an animated rally in the Bronx in which Sen. Bernie Sander (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.) also spoke. "They are afraid they have already lost," he said, citing public opposition to AIPAC's agenda.
"They are in this race because we called for a permanent cease-fire in Gaza," Bowman said of AIPAC. "And we’re going to keep calling for a permanent cease-fire."
Progressive standard-bearers Sanders and Ocasio-Cortez came to the rally, where placards read "for the many, not the money," to help stave off a possible Bowman defeat to challenger George Latimer, a pro-Israel Democrat who leads in the polls. An Emerson College poll from early June showed Latimer up 17 points, 48% to 31%. The race has been seen as a bellwether for the fate of other pro-Palestine progressives such as Rep. Cori Bush (D-Mo.), who faces a primary challenge in August.
It is TWO million degrees but we are happy to be alive folks @JamaalBowmanNY @AOC @BernieSanders take The Bronx pic.twitter.com/Q0KArxNOWm
— Anna Bahr (@anna_bahr) June 22, 2024
Latimer has not just the backing of AIPAC but also some local support and connections. He is the Westchester County Executive and has political clout there—Politico called him "the Cher of suburban New York." The 16th district includes the southern part of the county and a slice of the northern Bronx, giving it a wide mix of demographics.
Latimer was accused by Bowman and others of using an Islamophobic dog whistle in a recent debate, when Latimer said that Bowman's constituency was Dearborn, Michigan—a majority Arab-American city.
In a blow to Bowman, who has described himself as an "outspoken Black man," Jewish voters in the county recently formed Westchester Unites, a group that has mobilized votes for Latimer, including a substantial proportion of the early and mail-in voting that's already underway.
The race has been "nationalized," or "Israelized," as The Nation's Richard Lingeman wrote, with the two candidates' positions on Gaza dictating their fundraising hauls.
The Times reported that UDP was spending up to "$17,000 an hour" and "filling television screens, stuffing mailboxes, and clogging phone lines with caustic attacks." Other pro-Israel groups have also given money.
UDP's ads and messages "almost never" mention Israel, the Times noted. This is in keeping with AIPAC's strategy in races across the country as support for Israel's war on Gaza wanes.
Yet the groups attacking Bowman plan to put forward a different message if the race goes they way they want.
"Assuming the outcome is as we expect it, the message is going to be that being pro-Israel is not just wise policy, it's smart politics," said Mark Mellman, founder of the Democratic Majority for Israel, an advocacy group that spent $1 million against Bowman, told the Times.
Marshall Wittmann, an AIPAC spokesman, told the Times that Latimer was "pro-Israel" while "Jamaal Bowman has refused to support the Jewish state as it fights a moral and just war against Iranian terrorist proxies."
The pro-Israel lobby's all-out attack on Bowman for his opposition to the war led Karen Attiah, columnist at The Washington Post, to label its strategy as "shut up or else"—a way of using money to silence public criticism of Israel.
Sanders, who campaigned with Bowman both Friday and Saturday, emphasized the same disturbing dimension to AIPAC's efforts. "This is the message of this campaign: You stand up to powerful interests, they will try to bring you down,” he told the Times.
"Are we a democracy or an oligarchy?" Sanders wrote on social media Thursday, pointing to AIPAC's spending in the Bowman race.
People in New York have also expressed opposition to AIPAC's attempt to influence a local race.
"The funding toward Latimer from AIPAC has definitely turned me off a lot," Sasha Fuller, a 23-year old who attended a Bowman rally on Friday, told the Times. "He’s kind of a more traditional corporate Democrat, so I don’t really support his politics."
Just as Bowman argued that AIPAC was scared, some of his supporters have found a silver lining in the group's blitz of attack ads. Jeremy Cohan, spokesperson for the New York chapter of the Democratic Socialists of America, said the spending was a sign of change, as public opinion moves further from the positions of groups like AIPAC.
"I do see it as, to some degree, a sign of desperation," Cohan toldAl Jazeera.
“They are doing that because they see where the tides are moving," he added. "They see where history is moving.”
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Hind Rajab Killing: Analysis Finds Israeli Tank Fired 335 Bullets Into Car at Close Range
"It's not plausible that the shooter could not have seen that the car was occupied by civilians, including children," an investigation of the five-year-old Palestinian girl's death found.
Jun 22, 2024
An Israeli tank or tanks likely fired the bullets that killed five-year-old Palestinian Hind Rajab and six relatives as they sat in a car in northern Gaza in January, according to an analysis released Friday that adds to evidence of the Israeli military's role in an indiscriminate killing which galvanized anti-war protests around the world earlier this year.
A tank had to have been positioned between 13 and 23 meters from the family car when it fired the shots that killed Layan Hamada, Hind Rajab's 15-year-old cousin, and it's "not plausible that the shooter could not have seen that the car was occupied by civilians, including children," wrote the authors of the analysis, which was completed by U.K. research agency Forensic Architecture, based at Goldsmiths, University of London, with Earshot, an NGO, and Al Jazeera journalists.
The investigators found 335 bullet holes on the body of the Kia Picanto the family was using.
An Israeli tank also likely killed the two Palestine Red Crescent Society (PRCS) paramedics who came to the scene, the analysis found. The new analysis refutes Israel's contention that its forces were not responsible for the killings, which caused an international outcry.
More amazing investigative journalism by my colleagues @ForensicArchi on the murder of #HindRajab by Israeli forces: "it is not plausible that the shooter could not have seen that the car was occupied by civilians". No UK media outlet has picked it up yet https://t.co/GLSpgVdKps
— Des Freedman (@lazebnic) June 22, 2024
On January 29, seven extended family members including the young Rajab tried to flee Gaza City by car. Rajab remained alive for at least three hours after the other six had been killed, and was on the phone with the PRCS, pleading for help. "I'm so scared, please come," she said, according toThe Guardian.
Hamada, the 15 year old, had herself been on the phone with the PRCS when she was killed. A released audio recording of her final moments, in which she explains that a tank is next to the car and shooting at them, went viral.
⏺️Audio recording of the moment gunfire was directed at 15-year-old Layan Hamadeh while she was speaking on the phone with the Palestine Red Crescent team.
💔Layan was killed, and 6-year-old Hind remained trapped inside the car surrounded by the occupation tanks and soldiers.… pic.twitter.com/iMHGdoRcni
— PRCS (@PalestineRCS) January 30, 2024
The bodies of the seven family members and two paramedics, whose vehicle was attacked nearby, were found 12 days later, on February 10.
The new analysis broadly fits with findings of an in-depth investigation of the family's killing conducted by The Washington Post in April, adding new details and strengthening the case that Israeli forces were culpable. Following the new release, Medhi Hasan, editor-in-chief of Zeteo News, argued that those who continue to support the killing of Palestinian children are sociopaths.
Columbia student protesters honored Rajab by naming an occupied academic building "Hind's Hall" in late April. Rajab was generally reported as having been six years old at the time of her death, but The Guardian issued a correction in May stating that she had been just five years old.
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'They've Done It Again': Israeli Strikes Kill Dozens in Tents Near Rafah
U.S. President Joe Biden "must stop sending weapons to Israel," said one critic. "This is egregious."
Jun 21, 2024
The Israel Defense Forces on Friday yet again shelled tents of displaced Palestinians near the city of Rafah in the Gaza Strip, killing at least 25 and wounding another 50, local health and emergency officials said.
"According to Ahmed Radwan, a spokesperson for Civil Defense first responders in Rafah, witnesses told rescue workers about the shelling at two locations in a coastal area that has become filled with tents," The Associated Pressreported.
"The locations of the attacks provided by the Civil Defense appear to be just outside an Israeli-designated safe zone," the news agency noted. "The Israeli military said the episode was under review but that 'there is no indication that a strike was carried out by the IDF' inside the safe zone, using an acronym for the Israeli forces. It did not offer details on the episode or say what the intended targets might have been."
The AP shared firsthand accounts from survivors of the Al-Mawasi attack, as did Al Jazeera:
"We had just eaten and were about to sleep and take some rest, and the next we knew was the sound of resounding explosions destroying our places! We find ourselves alone not knowing what to do. We still can't process what happened!" a survivor told Al Jazeera.
"Oh Lord, look at us, oh world, see our condition. There are a lot of injured still inside. We are no longer able to do anything. What is happening to us? The fire is consuming us from every direction."
Another survivor said that "today, before the afternoon, a bomb was thrown near the Red Cross. My husband went out after hearing the sound of the explosion. The second bomb was near the Red Cross building. All the young men went there because some people were injured."
"My husband went, and I looked for him but couldn't find him," the witness added. "Everyone was forced to flee in their clothes without taking their belongings. Some people took us with them in their car. We don't know what happened after that."
The International Committee of the Red Cross in Israel and the occupied territories announced on social media Friday that "the ICRC office—which is surrounded by hundreds of displaced civilians living in tents—was damaged by nearby shelling in Gaza" that the group said "caused a mass casualty influx" at its hospital, which received 22 of those killed and 45 of the people injured.
The Friday attack follows a pair of bombings that killed dozens of Palestinians and injured hundreds in and near Rafah late last month. Like with the attacks last month—which analyses suggest involved U.S.-supplied weaponry—there were swift calls for the Biden administration and other governments to cut off support for the Israeli assault on the Hamas-governed enclave.
"Israel has run out of buildings, schools, and hospitals to bomb and is once again targeting displaced civilians in tents," saidAJ+ senior editor Kareem Yasin. "Any Western government excusing or denying these intentional attacks is complicit."
The Israeli war on Gaza—launched after the Hamas-led October 7 attack on Israel—has killed more than 37,430 Palestinians and injured over 85,650 others, according to local officials. Survivors face devastated civilian infrastructure and limited food, water, shelter, and medical supplies, as Israel limits the flow of humanitarian aid.
South Africa is leading a genocide case against Israel at the International Court of Justice and International Criminal Court Prosecutor Karim Khan is seeking arrest warrants for Israeli Prime Minister Benjamin Netanyahu and Defense Minister Yoav Gallant as well as three Hamas leaders.
"They've done it again," U.S.-based policy analyst Omar Baddar said of Israel Friday. "Nearly every day for the past 260 days, Israel has committed another massacre against Palestinian civilians in Gaza. Fathers, mothers, siblings, children, their bodies burnt or torn apart, while our government gives more weapons for these atrocities."
Even before October 7, the United States gave Israel billions of dollars in annual military aid—but such support has increased during the war. U.S. President Joe Biden previously called an Israeli assault on Rarah a "red line," but as the IDF has killed Palestinians in and around the Gaza city, the White House has signaled that his boundary has not yet been crossed.
Biden "must stop sending weapons to Israel," Nina Turner, a senior fellow at the Institute on Race, Power, and Political Economy, declared in response to the Friday attack. "This is egregious."
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