Image: YDPhotos.co.uk/WENN.com

Occupy Wall Street first took to the streets of NYC in 2011 to protest, as its website states “the corrosive power of major banks and multinational corporations over the democratic process, and the role of Wall Street in creating an economic collapse that has caused the greatest recession in generations.” Since its inception, OWS has not only gained global attention but support from celebrities, including hip-hop notables Russell Simmons, Kanye West, Common and Mos Def, just to name a few.

But don’t add Jay Z to this list. It seems one of New York City’s now most prominent businessmen doesn’t put his substantial weight behind the movement.

Jay Z, who is celebrating one of his greatest non-music efforts — the opening of Barclays Center and the Brooklyn debut of the basketball team he partly owns, the Nets — told The New York Times magazine he never really “got the OWS message.” He goes on to say that he thought OWS’ message was not clear and that the movement demonized entrepreneurs.  “I’m not going to a park and picnic, I have no idea what to do, I don’t know what the fight is about,” he said.

Ironically, the clothing company Jay Z co-founded, Rocawear (which he sold to Iconix Brand Group for $204 million), was selling Occupy Wall Street t-shirts. Consumers may have thought the proceeds were being donated to OWS, but the company never disclosed where they were going. Rocawear eventually yanked the products off the market amid claims it was exploiting the movement.

Jay Z, who is worth an estimated $460 million, stated in the Times magazine interview that he felt OWS is actually against what America stands for — capitalism. “This is free enterprise. This is what America is built on,” he continued.

Still, you can’t accuse Hova of being apolitical. He and the missus are hosting a fundraiser for President Obama on September 18 at Jay Z’s 40/40 club. The donation: $40,000. See you there?

(Forbes) — Is a “free market” agenda the same thing as a “pro-business” agenda? Economists of a libertarian persuasion find this frustrating because our enthusiasm for free markets is often mistaken as enthusiasm for specific businesses or corporate interests. But just because something is good for General Motors does not mean it is necessarily good for America.

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By Charles Payne, CEO & Principal Analyst

“3 billion human lives ended on August 29th 1997.
The survivors of the nuclear fire called the war Judgment Day.
They live only to face a new nightmare,
The war against the Machines…”

I guess that it’s hard to declare war on prosperity without declaring war on automation and other contributors to productivity. Last week, we learned that unit labor costs continued its downward march, reflecting the large pool of workers and the natural advantages it gives employers. However, it also underscores how computers, robots, and other machines are doing the work.

Over the next week we will see two industries come under immense pressure for failures of their machines or mechanical systems. In many ways, hearings on the BP incident and stock market meltdown will provide high ground to take shots at capitalism’s role in the evolution of non-human systems. The idea that accidents are a natural part of effort means nothing to those eager to advance an agenda.

Speaking of agendas, EU finance ministers worked all weekend on a game plan to save the Euro. The urgency with respect to the Euro suggests that the contagion can’t be halted just at Greece. If Portugal and Spain falter there will be funds to shore up the Euro, although I’m not sure where funds come from to shore up those two nations which must be looking at the Greek drama with equal portions of dread and optimism. If Greece is bailed out then somehow they will be also. In the meantime, public opposition in Germany to these bailouts has dealt a serious blow to Angela Merkel. Election returns from North Rhine-Westphalia has her Christian Democrat Union on the outside looking in, and it will have nationwide implications. The bigger election story is in the United Kingdom, where the Conservative Party came up short of a clear victory and could still find them shut out of leadership.

Then there was the GOP Convention on Saturday, which can be seen not only as a significant shift for the Republican Party but also as a shot across the bow of all incumbents. Three term incumbent Robert Bennett (R – Utah) was unceremoniously kicked to the curb in what is being described as a shocking outcome. The Left is terrified, and offended, by the results which is further proof that Tea Parties matter and voters in general are just fed up. Last week, I put up a list of political contributions from Fannie Mae.

As it turns out, no Republican has received as much money from Fannie and Freddie as Robert Bennett at $107,999 (Chris Dodd (D-CT) at $165,400 and Barack Obama (D-Il) at $126,349 are the only politicians to receive more since 1989).

Bennett was viewed by many as a moderate that could get things done across the aisle, but the fact is that Republicans have had no voice in government as even their most commonsense suggestions are dismissed. These days, compromise means that you agree with the President…period. Still, Bennett had plenty of conservative support, and was endorsed by the NRA and Mitt Romney. Mitt Romney should really be worried about this latest development. Bennett seems to have made unforgivable mistakes that included:

* Voting for TARP
* Bringing home too much bacon…huge earmarks
* Co-sponsored healthcare insurance bill

BP Dome

I’m no engineer but that BP dome looked corny from the start, and as it turns out needs more work. The company is working hard, and may actually be missing smarter ways to fix this problem because of the unrelenting political pressure. Does anyone think that the company wanted this to happen or doesn’t have a sense of urgency to get it fixed? As it stands now images we’ll see over the next few days will seal the deal on new offshore drilling projects, and I think that’s a pity because we will need the energy to move our world and keep us competitive. There have been deadly mining accidents in China, the United States, and over the weekend Russia, but we aren’t going to stop using coal. There will be talk of more regulations, and we’ve already heard “profit” put forth as the nefarious force that created the environment for these accidents.

* Over the weekend, a Staten Island ferryboat misjudged the pier, hurting 37 passengers. The Andrew J. Barberi is the same ferry that crashed in 2003, killing 11 people. Officials are saying that this weekend’s crash was the result of mechanical error. In New York, accidents are part of development and movement of the city.
* New York Water Tunnel No. 3 is a prime example. Construction on the tunnel began in 1970, and is scheduled to be finished by 2020. To date, 23 workers have died during construction and one 12 year old boy playing in the construction zone.
* The George Washington Bridge was completed in 1931 at a cost of $59.0 million and 12 deaths.

I hope that BP figures out how to fix the leak, and I hope we have the will not to abandon the use of our own natural resources to bridge the move to alternatives. I’m not even sure that there are enough alternatives or technology that we could use to exploit for fulfilling our needs.

Desperate Measures

The EU has hammered together a $968.0 billion bailout of the Euro. In addition, the ECB has already begun buying bonds to stabilize that market. Funding for the package;

* €440.0 billion in Euro zone loans
* €60.0 billion in EU Emergency Fund
* €250.0 billion from IMF

The Euro is soaring, and equities are poised to do the same this morning. I’m a little shocked at how high equity futures are, but it points to the notion that bailouts are good, near-term, and that’s all the stock market cares about. This issue isn’t going away, but for today the can has been kicked far enough down the road for celebration. This package will cost America another $54.9 billion via the IMF (another $180 per American), which is in addition to the funds assigned for the bailout of Greece. But, the next few weeks and months promise to be challenging. So-called PIIGS nations have $215.0 billion in debt due over the next three months (Italy $126.0 billion).

There are more details to come.

In the meantime, it’s more than likely a coalition government will be hammered together between UK’s Conservative and Liberal Democrat with a focus on reducing the deficit. This deal could be hastened by the large tab hoisted upon British taxpayers to bailout the Euro. Despite not being a Euro nation, reports overnight say EU rescue efforts will cost the UK £43.0 billion. So David Cameron and Nick Clegg have to move swiftly before its left with an even larger financial headache. But political damage is clear throughout the western world which continues to beg, borrow and steal (from future generations) to maintain lifestyles they can no longer afford.

Jobs Numbers

The more I think about the jobs report the more disappointing it becomes. Of the 290,000 job gains in April, 188,000 came courtesy of the Labor Department’s infamous birth/death model. True unemployment climbed to 17.1% from 16.9%, and 6.7 million people are unemployed for more that 27 weeks. I don’t think that the market was reacting to those statistics on Friday. In fact, when President Obama spoke about the jobs data the market staged an impressive intra-day rally but it faded away on other concerns. Investors have been able to squeeze good elements from more dubious “economic reports and trends” so look for the jobs report to be a positive driver in May.

Market Parameters

The S&P 500 is off more than 8% from its April high, but the NASDAQ composite is off more than 10% as investors have been rotating into quality names for weeks. Initial resistance for the index comes at 2,316, and then the bigger hurdle is 2,400.

Charles Payne is the CEO and Principal Analyst of Wall Street Strategies . This post was republished, with permission, from his company’s column, WStreet Market Commentary.

By Charles Payne, CEO & Principal Analyst

There isn’t much economic data out this week so we have a chance to look at data you don’t hear much about. It is amazing when we hear about how rich and great this nation is and it’s explained that we can afford to clip profits and whack rich people for their earnings because it’s simply the right thing to do. Yet, this notion of robbing Peter to pay Paul seemed more compassionate back in Sherwood Forest than in a nation that sees self made millionaires minted throughout each day. In America, people would rather fish than have someone fish for them, especially if they weren’t born into a welfare family and welfare mentality. For now, Americans don’t like handouts no matter how well meaning. And, I’m talking about Americans on the receiving end of those handouts.

Yet, we all have to eat. With that in mind, I’m proud to live in a nation that feeds its hungry (and take care of the sick as well despite the nonsense that makes it seem like people die in the streets of America), but I’m even prouder of a nation that provides opportunities for people to feed themselves. Our government has given up on the notion that our system of capitalism, or the American people themselves, can find ways to fill up their pantries. When I was growing up as a teenager my happiest days were those when we went grocery shopping. To fill the cabinets and refrigerator with food felt so blessed. It made the house feel safer, it gave me more confidence, and it filled me with pride. That pride came from knowing my mother worked hard to provide the food, and there were times when I worked and chipped in, too.

These days too many Americans are getting their nourishment through the government food stamp program. In fact, the number of Americans on food stamps has soared above 40,000,000. Just think about that number for a moment. It’s simply frightening. Just a week ago it was reported that U.S. farmers are going to plant 88.8 million acres of corn this year, and that will be an all-time record. Soybeans will be planted on 78.1 million acres of land, down 2% from an all-time record. Part of that corn crop is going to new fuel standards that demand ethanol be a greater percentage of gasoline blends. The soybean growth has been driven by demand from China. Last year, only 53.8 million acres were devoted to wheat, the smallest amount since 1970. America is the breadbasket of the world but 40,000,000 people can’t afford this bounty.

I think that it’s more than a shame; it’s an indictment of a system that seems to prefer its citizens to need government. I’ve marveled all my life at how the will of people can be slowly taken away from them. Water boarding known terrorists is a no-no but slowly making people wards of the state is seen as compassion. Whether a hunter or gatherer, the nature of humans is to go out and find food. Many take it for granted and maybe don’t feel great when they walk out of a supermarket with a basket of food, but the day they have to wait for the mailman to come by before they can go grocery shopping it awakens that primal sensation of achievement.

Since February 2009, the number of Americans on food stamps is up more than 8.0 million. That is a horrific number. We’ve seen spikes in recent years, for instance after that tough 2005 hurricane season, but nothing like this.

In the meantime, I don’t think that this is data point that will become part of the monthly reports to be analyzed and ripped apart. But, I can’t think of a better way to judge the performance of our government and the Administration’s policies. Job numbers can be manipulated and are up for interpretation, when people can’t feed themselves or their families the interpretation is clear…the focus at the top must change. Just move out of the way, stop sucking up resources, and stop demonizing businesses and watch how many people find their way back to the grocery store to spend the money they made at work.

Heck, it wouldn’t take them long to take it for granted. That is a sign of success.

Charles Payne is the CEO and Principal Analyst of Wall Street Strategies . This post was republished, with permission, from his company’s column, WStreet Market Commentary.

(Bloomberg) – Tea Party activists, who are becoming a force in U.S. politics, want the federal government out of their lives except when it comes to creating jobs.

More than 90 percent of Tea Party backers interviewed in a new Bloomberg National Poll say the U.S. is verging more toward socialism than capitalism, the federal government is trying to control too many aspects of private life and more decisions should be made at the state level.

Read More…

(Bloomberg) – Tea Party activists, who are becoming a force in U.S. politics, want the federal government out of their lives except when it comes to creating jobs.

More than 90 percent of Tea Party backers interviewed in a new Bloomberg National Poll say the U.S. is verging more toward socialism than capitalism, the federal government is trying to control too many aspects of private life and more decisions should be made at the state level.

Read More…

Capitalism, slavery and prison labor have been bedfellows since the 1800s. African American male labor was exploited then, and this exploitative coupling continues into this century. In 1860, there were 1,981,385 black male slaves in the Unites States—a figure computed from the Historical Demographics, Economic, and Social Data: U.S., 1790-1970, ICPSR.  Once these slaves were manumitted and no longer a free workforce, Douglas A. Blackmon describes how their labor was recaptured in his book Slavery By Another Name: The Re-Enslavement of Black Americans from the Civil War to World War II. Black male labor was recaptured, according to Blackmon, by charging Negroes with crimes such as vagrancy and other non-consequential acts, and this need for cheap labor paralleled an increased enforcement of these frivolous laws—i.e., harvesting time. As a result of this system, Blackmon describes this indentured servitude (debt slavery) as forced labor. As prison labor became a more necessary part of the capitalist system during Reconstruction, as a result of the devastation brought on by the Civil War, landowners exploited this peonage system and needed to build new prisons to house these former slaves and lease them to labor-hungry entrepreneurs.

These labor-hungry entrepreneurs decided to expand on this idea of convict leasing in the 1800s and created the first private prisons. States such as California, Louisiana, Oklahoma, and Texas had privately operated prisons between 1850 and 1950. The industry of contracting out prison labor was extremely profitable up until 1950, but things became unglued with the discovery of rampant abuse in these private prisons. Private prisons reappeared in the 1980s as a result of the “war on drugs,” and the concomitant laws associated with this war such as California’s notorious three-strikes-and-you-are-out laws. These campaigns such as the “war on drugs” and “get tough on crime” have been a dismal failure and have afflicted non-violent African American offenders, especially males, with a permanent handicap—a lifetime of limited opportunities.

The collateral consequences of a felony conviction also play a role in the burgeoning African American male unemployment rate. African American male unemployment, according to the Bureau of Labor Statistics, is 15.6%, which economists assert is a Depression-era level number. The U.S. economy, it has been widely reported, has not added jobs since December of 2007 and has shed 7.2 million jobs overall since then, according to reports. Even worse, it is accepted that many jobs will not return for several years. Of course, African American males will be the most affected by the structural and racial flaws in the economy.

In my book, Merchandizing Prisoners: Who Really Pays for Prison Privatization?, I show how the United States is returning to systems of prison labor exploitation. Over 2 million U.S. citizens are now incarcerated in the U.S., and half of them are African American males. This return to slavery has been facilitated by private prison corporations that lease factories in prisons and then lease the prisoners they house for the state out to these factories to perform work for companies such as Dell, Victoria’s Secret, and other multinational corporations and Fortune 500 companies. According to Yahoo Finance, Corrections Corporation of America has a 2.69 billion market cap.

There is a phenomenon eerily similar to what Blackmon describes regarding the nominal fees Black men were forced to pay to forestall forced labor. This is now happening to the formerly incarcerated who come out of prisons with crushing debt. These economic sanctions come in the form of probation fees, jail fees, special assessments, fines, and restitution. These fees are assessed on money deposited for prisoners by their family members. When ex-prisoners cannot pay these fees, they are returned to prison on a technical violation and are then forced into labor again.

Instead of states spending more money on corrections over education and building more prisons, they should embrace this idea of justice reinvestment to attack disproportionate minority contact with the criminal justice system, outsourcing and African American unemployment. Justice reinvestment strategies, according to Susan Tucker and Eric Cadora, contend that the billions of dollars spent on corrections should be redirected to build “human resources, physical infrastructure such as schools in those neighborhoods devastated by high levels of incarceration like the million dollar blocks in Brooklyn, NY.” A million dollars a year, according to Tucker and Cadora, is being spent to incarcerate people from one block in Brooklyn.

Redirecting money to create jobs in these high incarceration communities would go a long way towards improving education in these communities, improving employments prospects, and de-commodifying Black men so that their labor is not stolen by capitalists looking to exploit the captive labor the prisons provide them. Finally, states should follow New Jersey’s state legislature’s example of exploring laws which remove barriers that affect successful reintegration back into society by the formerly incarcerated, such as not being able to stay in public housing or receive welfare benefits, not being able to secure occupational licenses, and asking the question, “Have you ever been convicted of a felony?”

Dr. Byron E. Price is a professor of political science at Texas Southern University and is the author of Merchandising Prisoners: Who Really Pays for Prison Privatization.