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Exxon, Kochs still support climate science deniers — now in secret — Transition Voice
Exxon, Kochs still support climate science deniers — now in secret — Transition Voice.
The largest, most-consistent money fueling the climate denial movement are a number of well-funded conservative foundations built with so-called “dark money,” or concealed donations, according to an analysis released Friday afternoon.
The study, by Drexel University environmental sociologist Robert Brulle, is the first academic effort to probe the organizational underpinnings and funding behind the climate denial movement.
It found that the amount of money flowing through third-party, pass-through foundations like Donors Trust and Donors Capital, whose funding cannot be traced, has risen dramatically over the past five years.
– Robert Brulle, Drexel University
In all, 140 foundations funneled $558 million to almost 100 climate denial organizations from 2003 to 2010.
Meanwhile the traceable cash flow from more traditional sources, such as Koch Industries and ExxonMobil, has disappeared.
The study was published Friday in the journal Climatic Change.
“The climate change countermovement has had a real political and ecological impact on the failure of the world to act on global warming,” Brulle said in a statement. “Like a play on Broadway, the countermovement has stars in the spotlight – often prominent contrarian scientists or conservative politicians – but behind the stars is an organizational structure of directors, script writers and producers.”
“If you want to understand what’s driving this movement, you have to look at what’s going on behind the scenes.”
Consistent funders
To uncover that, Brulle developed a list of 118 influential climate denial organizations in the United States. He then coded data on philanthropic funding for each organization, combining information from the Foundation Center, a database of global philanthropy, with financial data submitted by organizations to the Internal Revenue Service.
According to Brulle, the largest and most consistent funders where a number of conservative foundations promoting “ultra-free-market ideas” in many realms, among them the Searle Freedom Trust, the John Williams Pope Foundation, the Howard Charitable Foundation and the Sarah Scaife Foundation.
Another key finding: From 2003 to 2007, Koch Affiliated Foundations and the ExxonMobil Foundation were “heavily involved” in funding climate change denial efforts. But Exxon hasn’t made a publically traceable contribution since 2008, and Koch’s efforts dramatically declined, Brulle said.
Coinciding with a decline in traceable funding, Brulle found a dramatic rise in the cash flowing to denial organizations from Donors Trust, a donor-directed foundation whose funders cannot be traced. This one foundation, the assessment found, now accounts for 25 percent of all traceable foundation funding used by organizations promoting the systematic denial of climate change.
[updated Dec. 24] Jeffrey Zysik, chief financial officer for DonorsTrust, said in an email that neither DonorsTrust nor Donors Capital Fund “take positions with respect to any issue advocated by its grantees.”
“As with all donor-advised fund programs, grant recommendations are received from account holders,” he said. “DonorsTrust and Donors Capital Fund ensure that recommended grantees are IRS-approved public charities and also require that the grantee charities do not rely on significant amounts of revenue from government sources. DonorsTrust and Donors Capital Fund do not otherwise drive the selection of grantees, nor conduct in-depth analyses of projects or grantees unless an account holder specifically requests that service.” [end update]
Matter of democracy
In the end, Brulle concluded public records identify only a fraction of the hundreds of millions of dollars supporting climate denial efforts. Some 75 percent of the income of those organizations, he said, comes via unidentifiable sources.
And for Brulle, that’s a matter of democracy. “Without a free flow of accurate information, democratic politics and government accountability become impossible,” he said. “Money amplifies certain voices above others and, in effect, gives them a megaphone in the public square.”
Powerful funders, he added, are supporting the campaign to deny scientific findings about global warming and raise doubts about the “roots and remedies” of a threat on which the science is clear.
“At the very least, American voters deserve to know who is behind these efforts.”
Originally published at the Daily Climate. The Daily Climate is an independent, foundation-funded news service that covers climate change. Find us on Twitter @TheDailyClimate or email editor Douglas Fischer at dfischer [at] DailyClimate.org.
– Douglas Fischer, the Daily Climate
The Real Numbers Behind America’s Phony Recovery |
The Real Numbers Behind America’s Phony Recovery |.
The Real Numbers Behind America’s Phony Recovery
Wednesday is the big day. Investors are on the edges of their seats, waiting to find out what the Fed will do. Taper? No taper? Or maybe it will taper on the tapering off?
Our guess is the Fed will not commit to a serious program of reducing its support to the bond, equity and housing markets. It’s too dangerous. Ben Bernanke – the man who didn’t see the housing crash coming – won’t want to see the stock market collapse just before he leaves office. He’ll want to go out on a high note…
…and that means guaranteeing more liquidity.
Investors don’t seem worried. On Monday, the Dow rose 130 points. Gold was up $10 an ounce. Most of the reports we read tell us the economy is improving. Unemployment is going down. Meanwhile, manufacturing levels are rising. Compared to Europe, the US is a powerhouse of growth and innovation, they say. Compared to emerging markets, it is a paragon of stability and confidence.
How much do investors love the US? Let us count the ways:
1. GDP per capita is running 7% – ahead of where it was in 2007. Among the world’s major developed economies only Germany can boast of anything close. All the rest are falling behind.
2. The budget deficit – which was running at about 10% of GDP – is now down to just 4% of GDP.
3. Unemployment is going down, too. Heck, just 7 out of 100 Americans are officially jobless. Didn’t Bernanke say he would tighten up when it hit that level?
4. And look at prices. Consumer price inflation is running at just 1% over the last 12 months. No threat from inflation, either.
Statistical Folderol
But wait …
What if all these things were delusions… statistical folderol… or outright lies? What if the true measures of the economy were feeble and disappointing? What if the US economy was only barely stumbling and staggering along?
Well, dear reader, you surely expect us to tell that the US economy is a hidden disaster… and we won’t disappoint you. GDP? Carmen Reinhart studied the performance of rich economies following a financial crisis. Her paper, “After the Fall,” showed that, six years after a crisis, per capita GDP was typically 1.5 percentage points lower than in the years before the crisis. But in the US, per capita GDP growth is running 2.1% lower than its pre-crisis level – significantly worse than average.
Deficits? Super-low interest rates have helped debtors everywhere. “Never have American companies brought a greater share of their sales to the bottom line,” writes Bill Gross. How did they do that? Largely by taking advantage of the Fed’s interest rate suppression program. But hey, the US government is the world’s biggest debtor. It is the primary beneficiary of the Fed’s miniscule rates.
That’s part of the reason why deficits are low. Let the yield on the 10-year T-bond return to a “normal” 5%, and we’ll see deficits soar again. (Interest payments, under this scenario, would add an additional $360 billion a year to the deficit.) Besides, it’s not only the deficit that counts. It’s also the total level of debt… and particularly the debt financed with funny money from the Fed.
Only twice in US history has the ratio of US Treasurys held at the Fed gone over 10% – once in 1944 and again today. The first time, it was a national emergency: World War II. Now, the Fed is merely fighting to protect a credit bubble.
Inflation? Yes, consumer price inflation is low. But what that shows is that real demand is still in a deleveraging trough. The money multiplier – the ratio of money supply to the monetary base – collapsed in 2008. It has not come back. Neither has the economy.
Unemployment? The rate has been doctored by removing people from the labor pool. The workforce is now smaller – as a percentage of the eligible pool – than at any time since 1978.
Besides, what is important is not the rate, but what people get from employment. On that score, it is a catastrophe. According to a Brookings Institution study, the average man of working age earns 19% less in real (inflation adjusted) terms today than he did during the Carter administration!
A Strange Kind of Recovery
What kind of economy is it that reduces a man’s wages over a 43-year period? We don’t know. But it’s not likely to win any prizes. But why, with so many strikes against it, does the US economy still have the bat in its hands?
It’s partly because the Fed has pumped up stock, bond and house prices – not to mention net corporate profit margins (by reducing the interest expenses on corporate debt) and consumer spending (through entitlement programs funded through the Treasury with ultra-low interest rates). So, the averages look pretty good… and they mask the ugliness beneath them.
The rich got richer on the Fed’s EZ money. But the average “capita” is actually poorer. The bottom 90% of the population – people in 9 houses out of 10 – have 10% less income than they had 10 years ago.
This is not a success story. It’s a disaster. And not one that tempts us into an overvalued US stock market.
Canadian banks to be compelled to share clients’ info with U.S. – Politics – CBC News
Canadian banks to be compelled to share clients’ info with U.S. – Politics – CBC News.

James Fitz-Morris
Parliament Hill
James Fitz-Morris has been reporting from Parliament Hill for more than a decade and joined the CBC’s parliamentary bureau in 2006, covering finance and foreign affairs among his beats. Fluent in English and French, he has also worked in Beirut and is still grappling with Arabic.
Starting next July, Canadian banks will be required to ask anyone opening a new account if they are now, or ever have been, an American “person.”
It comes at the behest of the U.S. government and its efforts to “smoke out” tax dodgers.
The Foreign Accounts Tax Compliance Act, or FATCA, was passed by the U.S. Congress in 2010 and comes into force July 1, 2014.
The law forces all banks and other financial institutions outside the U.S. to search for customers who have certain “indicia.” Those are markers that show the person may be a U.S. citizen or a former permanent resident who, under U.S. law, must file income tax returns to Uncle Sam no matter where they reside in the world.
The only other country with similar tax rules for expats is Eritrea.
When announcing the law, U.S. President Barack Obama said, “if financial institutions won’t cooperate with us, we will assume they are sheltering money in tax-havens and act accordingly.”
The threat is a withholding tax of 30 per cent levied on every transaction a non-compliant bank has coming from, or even passing through, the U.S.
“Bottom line is: there is absolutely no way that a large, modern financial institution like a Canadian bank or a large credit union could escape FATCA,” says Marion Wrobel, vice-president of policy and operations at the Canadian Bankers Association (CBA).
Wrobel says his organization has been fighting FATCA since it was announced, calling it the “extra-territorial” application of American law.
“The only reason the Americans can do it is because it is a large economy, financial markets are integrated globally,” Wrobel adds, “and it is virtually impossible for a large institution like a Canadian bank, an insurance company, a securities dealer, a large credit union to avoid being caught up in a FATCA net.”
Starting July 1, 2014, banks will be required to scour the records of all of their customers with more than $50,000 in an account.
They will be looking indicators such as: place of birth, alternate addresses and phone numbers, and past residency in the United Sates. Every file with at least one indicia marker will be flagged as a “U.S. Reportable Account.”
At the same time, anyone wanting to open a new account will be asked directly if they are a “U.S. person” as defined by the IRS. Anyone who answers affirmatively will be flagged.
Wrobel says refusing to answer the question could also land any Canadian in trouble.
“If you refuse to answer it you could be considered recalcitrant and your information could be reported.”
So far the banks’ protests have changed little. The best they have been able to do is take some of the heat off themselves directly. Canada is close to negotiating an Inter-Governmental Agreement (IGA) with the U.S. to implement FATCA.
Once in place, the bank would no longer be required to send private customer information directly to a foreign government agency. Instead, Canadian banks will flag their customers to the Canada Revenue Agency, and — under the terms of the agreement — the CRA will be the one that automatically transmits all the information to the IRS.
‘Infringement of liberty and privacy’
To enact the IGA, the Canadian government would almost certainly need to introduce a new law or amend existing ones to allow financial institutions to breach the privacy of Canadian citizens and residents.
It’s not clear how that can be done without running afoul of the Canadian Charter of Rights and Freedoms.
Constitutional lawyer and expert Peter Hogg wrote to the Finance Department to express his concerns about the proposed deal.
In a copy of the letter released under Access to Information, he says: “To impose on financial institutions the duty to report to CRA (en route to the IRS) the names, addresses, place of birth and date of birth and details of the bank accounts of account-holders identified only by their place of birth in or citizenship of the United States, and all under the implicit threat of taxes, penalties or prosecutions by the IRS, seems to me to be a clear case of discrimination in contravention of [Section] 15 [of the Charter].”
He goes on to say: “There is no mechanism in the Model IGA whereby individuals who are suspected to be U.S. citizens would even know that their personal information was provided, “ Hogg’s letter argues, “thus there may be no opportunity to provide additional information or take other steps in order to prevent the transmission of this information from Canada.”
At best, Hogg believes, it is an infringement “of liberty and privacy,” but possibly also violations of at least three sections of the Charter.
The plan has critics around the world.
“I don’t think it’s pejorative to use the term ‘fishing expedition,’ that term has been used by the U.S. government already and people talking about FATCA — that’s exactly what this is,” says Allison Christians, the Stikeman Chair of Tax Law at McGill University.
She points out Canada and the U.S. already have a tax treaty that’s been in place for almost 20 years, which allows the IRS to obtain information on specific individuals from the CRA automatically.
“But FATCA wants more,” Christians adds. “They want not just the ones we have already identified; they want to, in the words of a former treasury secretary, ‘smoke out’ the Americans who are hiding.”
And this is where many experts believe FATCA might not just be unconstitutional, but also misguided.
“It’s not risk-based, it’s not targeting known tax havens. It’s looking at places like Canada, you know — Americans do not come to Canada for the low taxes,” says Wrobel.
Perhaps to add insult to injury, the individual Canadian financial institutions being deputized by the IRS to sniff out wayward U.S. taxpayers need to cover the cost of the added scrutiny, monitoring, and reporting themselves.
The CBA estimates it will likely cost the big banks $100 million each to comply with FATCA.
Families Spend More On Tax Than Necessities: Report
Families Spend More On Tax Than Necessities: Report.
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