Sunday, May 27, 2012

Happy Memorial Day Weekend! Prepare For Country's Fiscal Health Going Off Cliff In 2013 (Will Happen Automatically If Congress Does Nothing (Which It Seems Designed To Do))



[BREAKING NEWS:   NC Businessman's Principled Stand Against Amendment One Has Cost Him Let's give this gentleman some business at Replacements, Ltd.]

With the withdrawal of troops from Afghanistan, the cost of fighting wars is projected to drop – but the “base” defense budget (the annual cost of paying troops and buying planes, ships, and tanks – not including the costs of actually fighting wars) is scheduled to rise. The base budget is already about 25 percent higher than it was a decade ago, adjusted for inflation.
One big reason: It’s almost impossible to terminate large defense contracts. Defense contractors have cultivated sponsors on Capitol Hill and located their plants and facilities in politically important congressional districts. Lockheed Martin, Raytheon, and others have made spending on national defense into America’s biggest jobs program.
So we keep spending billions on Cold War weapons systems like nuclear attack submarines, aircraft carriers, and manned combat fighters that pump up the bottom lines of defense contractors but have nothing to do with 21st-century combat.


Robert Reich | Memorial Day Thoughts on National Defense

 

“We can best honor those who have given their lives for this nation in combat by making sure our military might is proportional to what America needs. The United States spends more on our military than do China, Russia, Britain, France, Japan, and Germany put together. With the withdrawal of troops from Afghanistan, the cost of fighting wars is projected to drop – but the ‘base’ defense budget (the annual cost of paying troops and buying planes, ships, and tanks – not including the costs of actually fighting wars) is scheduled to rise.” 

Read on for a better understanding of exactly what our military has prepared for the U.S.'s continued decline.

As readers of this blog understand from my past essays, I do not believe that the leadership in the Congress has necessarily tried to do the best job for the citizens by whom they were voted into office; more likely they have tried to do a really good job for their financial backers, with any benefits actually occurring to the taxpayers being the "trickle down" effect that they hope we believe in.



U.S. Congressional Leadership

Congress Ignores Obvious Policy Solution To Major Economic Threat



If Congress passed legislation to fund the federal government for a year, then scattered to the four winds, the United States would find itself in recession sometime in 2013.
That’s what the non-partisan Congressional Budget Office concluded in a Tuesday report, meant to alert elected officials to the dangers of allowing the country to fall off the “fiscal cliff.” That’s shorthand for allowing all of the Bush tax cuts and the payroll tax holiday, extended unemployment benefits, and Medicare physician reimbursement rates to expire; and to allow spending on domestic and defense programs to be cut indiscriminately. All of these things will happen automatically at the beginning of the year if Congress does nothing.
Budget deficits would fall dramatically, but at the expense of hundreds of thousands or millions of jobs at a time when the country’s current economic maladies are just beginning to heal. By contrast, protecting the recovery likely means large budget deficits will persist for quite some time.
If there were an obvious way around this conundrum you’d think Congress would’ve taken it. In reality, according to policy experts and economists of a wide range of ideological leanings there is an obvious way around this conundrum — and yet Congress isn’t taking it.
You can summarize the easy approach as “stimulus now, fiscal restraint later.” CBO hinted at this approach in its report.
“[I]f lawmakers changed fiscal policy in late 2012 to remove or offset all of the policies that are scheduled to reduce the federal budget deficit by 5.1 percent of GDP between calendar years 2012 and 2013…CBO estimates, the growth of real GDP in calendar year 2013 would lie in a broad range around 4.4 percent, well above the 0.5 percent projected for 2013 under current law,” the report reads.
“However, eliminating or reducing the fiscal restraint scheduled to occur next year without imposing comparable restraint in future years would reduce output and income in the longer run relative to what would occur if the scheduled fiscal restraint remained in place.”
In other words Congress could promote real growth by keeping deficits high now, and avoid the future downside risks of large, structural budget deficits by enacting sequential legislation to reduce deficits that won’t take effect until the economy’s growing at a decent clip.
“I think we should pass a very tough deficit reduction plan now and provide for it to trigger when the economy has reached like three percent growth for a few quarters,” Bill Clinton told guests at the Pete Peterson Fiscal Summit a week ago.
Even Fed Chairman Ben Bernanke — a Republican, who for institutional reasons is constrained from providing specific policy recommendations — has outlined a similar approach.
“[T]he two goals of achieving fiscal sustainability—which is the result of responsible policies set in place for the longer term—and avoiding the creation of fiscal headwinds for the current recovery are not incompatible,” he said in a speech last August.
“Acting now to put in place a credible plan for reducing future deficits over the longer term, while being attentive to the implications of fiscal choices for the recovery in the near term, can help serve both objectives. Fiscal policymakers can also promote stronger economic performance through the design of tax policies and spending programs.
To the fullest extent possible, our nation’s tax and spending policies should increase incentives to work and to save, encourage investments in the skills of our workforce, stimulate private capital formation, promote research and development, and provide necessary public infrastructure. We cannot expect our economy to grow its way out of our fiscal imbalances, but a more productive economy will ease the tradeoffs that we face.”
Just because it’s obvious, doesn’t mean it’s easy. There are a lot of members of Congress, and they all have different spending and tax priorities. And, of course, there’s an election coming. But members aren’t even bickering within the framework Clinton, Bernanke and the CBO have outlined.
A lot of Democrats are sympathetic to this approach, but Republicans are only on board if the future deficit reduction comes only from massive cuts to government services. They might be willing to defer the budget consolidation, but only if Democrats agree to use the country’s budget deficits as a forcing mechanism to shrink the government’s role in providing social insurance to the poor, middle class, and elderly.
The parties can’t even agree on the broadest contours of a strategy to nurture the recovery and then phase out the remnant structural deficits. Which is why this week’s CBO report rattled policy makers so much.



Saturday, May 26, 2012

It's Not Creeping Fascism (You Know) When the Fascists Are In Charge: Jaime (Legs) Di(a)mon(d) Exposed



Jamie Dimon Banking CEO's Testify Before House On Use Of TARP Funds

Everyone who still thinks "creeping" is the correct adjective, needs to read this concise essay. And then think up some new arguments.



The Creeping Fascism of American Politics

Juan Cole, Informed Comment

20 May 12

wo congressmen are attempting to insert a provision in the National Defense Authorization act that would allow the Department of Defense to subject the US domestic public to propaganda. The bipartisan amendment was introduced by Rep. Mac Thornberry from Texas and Rep. Adam Smith from Washington State.

Nothing speaks more urgently to the creeping fascism of American politics than the assertion by our representatives, who apparently have never read a book on Germany in the 1930s-1940s or on the Soviet Union in the Stalin period, that forbidding DoD and the State Department from subjecting us to government propaganda "ties the hands of America's diplomatic officials, military, and others by inhibiting our ability to effectively communicate in a credible way." And mind you, they want to use our own money to wash our brains!
As Will Rogers observed, "This country has come to feel the same when Congress is in session as when the baby gets hold of a hammer."

I love our guys and gals in uniform, but they can be extremely obnoxious in any discussion about US government policy that 'gets off point' or 'doesn't serve the mission.' At Washington think tank events, I've seen them repeatedly close down discussions among e.g. State Department foreign service officers. You don't want most of the DoD types providing information to us, because it won't be in any way balanced.

Of course, having a Pentagon propaganda unit at all is highly anti-democratic. The best defense of the truth is a free press. It should also be remembered that nowadays everything in Washington is outsourced, so government propaganda is often being turned over to Booz Allen or the American Enterprise Institute, which have a rightwing bias.

Doing propaganda abroad has the difficulty that it doesn't stay abroad. False articles placed in the Arabic press in Iraq were translated into English by wire services, who got stung.

Then, another problem is that the Defense Intelligence Agency analysts *also* read the false articles placed in the Arabic press by *another* Pentagon office, which they did not know about. So the analysts were passing up to the White House false information provided by their own colleagues!

I was told by an insider that one reason Washington analysts often read my blog in the Bush years was that I had a reputation for having an accurate bull crap meter, and thus my judgments on what was likely to be true helped them fight the tendency to believe our own propaganda!

Not only should this amendment be gotten rid of quick, but their constituents should please vote out of office Reps. Thornberry and Smith next November.

Jamie Dimon And The Legitimacy Of The Federal Reserve System



There are two diametrically opposed views of how the largest financial companies in our economy operate. On the one hand, there are those like Charles Ferguson, director of the Academy Award-winning documentary “Inside Job” and author of the new book, “Predator Nation.” Mr. Ferguson takes the view that greed and immorality now prevail to an excessive degree at the heart of Wall Street.
Academics and other experts have become corrupted, the responsible regulators have been intellectually captured, and law enforcement officials refuse to act – despite the accumulation of evidence before their eyes.
“Inside Job” was gripping and emotional; “Predator Nation” contains many more specific details and evidence, as this excerpt dealing with academics (one Republican and one Democrat) makes clear.
The second view is that the people in charge of large banks and bank holding companies have done nothing wrong. To see this view in action, look no further than this week’s debate about whether Jamie Dimon, chief executive of JPMorgan Chase, should resign from the board of the Federal Reserve Bank of New York. The New York Fed oversees his organization, including assessing whether it is taking dangerous risks, so there are reasonable questions about whether this creates a potential conflict of interest.
A balanced account of this debate appeared in American Banker, which kindly agreed to bring the entire article out from behind its paywall. The strongest statement from the pro-Dimon corner comes from Ernest Patrikis, a partner with White & Case L.L.P. and former general counsel of the New York Federal Reserve:

“I don’t see Jamie Dimon’s conflict of interest. What’s the conflict? He’s expected to represent the banks’ view, the lenders’ view.”
Yet even people who are generally sympathetic to banks feel that there is a perception problem with Mr. Dimon’s position. Treasury Secretary Timothy Geithner said exactly that to the “PBS NewsHour” last week.
Kenneth Guenther, the former head of the Independent Community Bankers of America, told American Banker:
“I do think there is a public perception problem when the head of the largest bank gets into a massive highly publicized trading loss, which he articulately condemns, when he’s tied to the Federal Reserve Bank of New York, and the president of the Federal Reserve Bank is vice chair of the Federal Open Market Committee. There is a perception problem. I don’t think there’s any way around it.”
What exactly is a conflict of interest? Narrowly defined, an actual conflict of interest would involve using public office for personal financial gain – and would be a matter for criminal prosecution.
There is only one case that I am aware of in which a director of the New York Fed went to prison for such a violation – Robert A. Rough was indicted in December 1988, on charges that he leaked sensitive interest-rate information to a brokerage firm. He was sentenced to six months in prison.
More broadly, however, in modern America we use the term “conflict of interest” when we believe someone may be promoting private interests while acting in a public role.
Allowing big bankers to become too influential is an important part of what Mr. Ferguson writes about. If you don’t understand the channels through which influence actually works in the United States today, you need to see “Inside Job,” which touched a nerve and won an Oscar precisely because it is profoundly undemocratic when powerful people are able behave in this way.
Elizabeth Warren, a Democratic candidate for the Senate in Massachusetts, said Mr. Dimon should resign from the board of the New York Fed. The recent spectacular trading losses at his company require a full investigation, which should include an examination of how the supervision process broke down. How can this be anything other than awkward for the New York Fed while Mr. Dimon – hardly known as a shrinking violet – sits on its board?
Senator Bernie Sanders, independent of Vermont, would go further, proposing legislation that would remove any bankers from the boards of Federal Reserve banks. For more background, you may want to consult Page 65 and other parts of this report from the Government Accountability Office, which deal with potential conflicts of interest in the Federal Reserve System, or at least read Senator Sanders’s summary of the report.
To be clear, directors of the New York Fed are in principle kept away from bank-supervision matters – a point that was codified in December 2010, following the passage of the Dodd-Frank financial reform legislation.
Under the current bylaws, directors are not involved in appointing, monitoring or compensating the head of supervision, although they have input into the selection and remuneration of the head of research (an important position, as this person helps to shape the Fed’s view on bank capital and all technical matters relative to risk management), and they oversee other management issues. Bill Dudley, the president of the New York Fed, interacts with the board at least several times a month, as you can see from his schedule.
Mr. Dudley, a former Goldman Sachs executive, was originally appointed president of the New York Fed by a board that included Mr. Dimon as a voting member.  The Dodd-Frank legislation stripped so-called “Class A” directors, of which Mr. Dimon is one, from voting on such appointments.  Mr. Dudley was subsequently reappointed by the Class B and Class C directors of the board.  (For more on the different classes of directors, see this page)
Mr. Dimon has also been an outspoken opponent of financial reform of late – including the Volcker Rule (on proprietary trading) and attempts to strengthen capital requirements.
He is an intensely political figure, despite the fact that an important footnote in the Board of Governors’ policy on political activity by Reserve Bank Directors says,

In all instances, directors should avoid any political activity that would publicly identify the director as being associated with the Federal Reserve System or would embarrass the System or raise questions about the independence of the director or the ability to perform Federal Reserve duties.
Directors are allowed to lobby and engage in other specific activities. The issue is whether these actions undermine the effectiveness of the New York Fed.
There is recent precedent for New York Fed board members resigning when there is a perceived conflict of interest – and when the legitimacy of the Federal Reserve System would undoubtedly have been undermined if they had refused to resign.
Dick Fuld, the chief executive of Lehman Brothers, resigned (on Thursday, September 11, 2008) shortly before his firm collapsed (on September 15, but its last day of business was Friday, September 12) – and presumably because the New York Fed was at the center of intense discussions about who should suffer what kind of losses or get rescued. Did he resign of his own volition or was he encouraged to resign?
Stephen Friedman, then the former chief executive of Goldman Sachs, resigned in early 2009 when it became clear that he had bought Goldman stock after Goldman became a bank and therefore fell under the supervision of the New York Fed.
Mr. Friedman was chairman of the New York Fed at that time. (To be clear, Mr. Friedman was not involved in any of the decisions that saved Goldman in fall 2008, and I am not accusing him of using his public position for personal financial gain.)
For those of you keeping score at home, Mr. Fuld was a Class B director and Mr. Friedman was a Class C director.
If you think Mr. Dimon should resign from the New York Fed, you can express your opinion by signing this on-line petition, which I drafted. (For more background on why he should resign, see this blog post.)
If Mr. Dimon refuses to resign – as seems likely – he can removed by the Board of Governors of the Federal Reserve System (not by his fellow directors at the New York Fed). The petition is therefore addressed to the Board of Governors.
There is an undeniable perception problem. It is damaging the legitimacy of the Federal Reserve. As Treasury Secretary Geithner implied, this must be “addressed” – a great Washington euphemism – by Mr. Dimon leaving the board of the New York Fed.

Jamie Dimon Should Resign From the Board Of The New York Fed

Continue reading

The Need For An Independent Investigation Into JP Morgan Chase

 Continue reading


Friday, May 25, 2012

It's All A Fraud and All About the Maintenance of Power (See Watergate, Iran-Contra, and the Social Security Lie Fest) Until We Regain Public Control of the Airwaves



[News from all over proving my point]

Members of New GOP Women's Caucus Voted Against Equality for Women

he 24 Republican Congresswomen in the U.S. House announced yesterday that they have joined to form the Women’s Policy Committee, a caucus aimed at “raising the profile of GOP women in their roles as lawmakers, highlighting their diverse achievements and providing a unique, unified voice on a wide range of critically important issues.”

But a ThinkProgress review of their voting records shows that the two dozen women have been fairly consistent in their legislative opposition to women’s rights . . . .

We’re Killing Civilians While Al Qaeda Is Trying To Turn On The Electricity

(Because the people we supposedly hired to do this task were too inept and/or corrupt.)

The United States drone program is killing civilians simply for traveling in large groups while the ‘terrorists’ are trying to provide humanitarian services
.

On Democracy Now! investigative blogger Marcy Wheeler who has been covering the so-called “War on Terror” over at Empty Wheel discusses some key points about the US assassination program that the corporate media does not dare inform the public about.

The interview discusses several things Americans should be made aware of including the shady background and history of lies of Obama’s newly appointed Assassination Czar and some shocking details about the secret war the U.S. is waging in across the middle east.


For starters, Marcy explains how Al-Qaeda operatives in the area are struggling to provide humanitarian services to people in the Middle East’s poorest country while the US funnels $300 million plus into the region, most of which is used to conduct a covert war.

She goes on to explain how the so-called enemy is struggling to provide food and turn on electricity for people in the area while the United States is running around murdering civilians.

Then she makings some stunning revelations about America’s assassination program and the two methods used to decide how drone strikes will be carried out.

. . . another look behind the Matrix, this time at the Facebook IPO lawsuit (do click) and what it says about the "markets."
Matt Taibbi sums things perfectly in this Taibblog post . . . . As always, you can look at the Matrix or behind it. The "markets" are not your friend.

And in other news, Facebook is also not your friend. Who'da guessed?
The Facebook IPO: Shareholders Weren't Invited to the Real Party

Neocons Assail Possible Compromise on Iran Talks 

“Given the Iranian regime’s long-standing pattern of deceptive and illicit conduct, we believe that it cannot be trusted to maintain enrichment or reprocessing activities on its territory for the foreseeable future — at least until the international community has been fully convinced that Iran has decided to abandon any nuclear-weapons ambitions,” wrote three prominent pro-Israel senators in the Wall Street Journal Thursday.

“We are very far from that point,” according to Republican Sens. John McCain and Lindsay Graham and independent Democrat Joseph Lieberman, the so-called “Three Amigos,” who often travel overseas together and have long argued that U.S. military action will likely be the only way to prevent Tehran from acquiring nuclear weapons.
_ _ _ _ _ _ _

From the pen of the fabulous Dean Baker we learn the truth (for a change).

Author pic

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He previously worked as a senior economist at the Economic Policy Institute and an assistant professor at Bucknell University. He is the author of several books, including
Social Security: The Phony Crisis, Plunder & Blunder: The Rise and Fall of the Bubble Economy, False Profits: Recovering from the Bubble Economy, The Conservative Nanny State: How the Wealthy Use the Government to Stay Rich and Get Richer and The United States Since 1980.*

He was the editor of Getting Prices Right: The Debate Over the Consumer Price Index, which was a winner of a Choice Book Award as one of the outstanding academic books of the year. He appears frequently on TV and radio programs, including CNN, CBS News, PBS NewsHour, and National Public Radio. His blog, Beat the Press, features commentary on economic reporting. He received his B.A. from Swarthmore College and his Ph.D. in economics from the University of Michigan.


The wealth that these people command was not created out of thin air. It came from suckers who bought the hype. With Steve Case, the big suckers were the top management at Time-Warner. They effectively sold the largest media company in the world for almost nothing, giving away most of the company’s shares in exchange for AOL stock. Shareholders who took the deal and did not immediately dump their AOL shares lost more than half of the value of their holdings.
If Facebook shares plunge we don’t know yet who the big losers will be. Insofar as it is individual investors who knowingly took risks in the hope that Facebook will look more like Google than Webvan, the loss is part of the game. This is like buying a lottery ticket.
But if the list of losers ends up including pension funds, university endowments and other institutional investors, then the public should ask some serious questions of the people who manage these funds. Typically they get paychecks that are many hundreds of thousands or even millions of dollars a year. They should know better than to be suckered by an over-hyped startup.
It will be a while yet before we can tally up the winners and losers. But if Facebook turns out to be mostly a media darling and not a hugely profitable company then the genius of Zuckerberg and crew will be in running a successful scam, not creating anything of great value to society.
_ _ _ _ _ _ _

It is way too early to tell whether Facebook shares will end up being a good buy, but the reaction to the initial public offering (IPO) on the first day of trading should serve as a serious warning. While the website may have hundreds of millions of users worldwide, it is not clear that this will translate into profits for the company.  Facebook could follow in the footsteps of Pets.com, Webvan and other end-of-the-century start-ups that quickly collapsed following multi-billion dollar IPOs.

Of course Facebook is unlikely to go out of business, but it is certainly possible that its business model is not sufficiently robust to justify a position among corporate America’s elite in market capitalization. A year or two down the road it may well turn out that its share price ends up at half or less of its IPO price.

In this case there will have been an enormous transfer of wealth from the purchasers of Facebook stock to those able to cash out following the IPO. This will make many of those on the inside of the company fantastically wealthy. However, much of their wealth would not result from making a good product that society valued; rather it came from being part of a successfully hyped company.

These insiders benefitted from the ability of Mark Zuckerberg and his colleagues to convince investors that Facebook had much more profit potential than in fact was true. This ability to hype a product, in this case company stock, can be an incredibly valuable skill, but it provides nothing of value to society. In that way it is similar to the skills of Fabrice Tourre (a.k.a. "Fabulous Fab"), who was apparently very skilled in putting together complex mortgage derivatives for Goldman Sachs that were designed to fail.

In the last two decades the economy seems to have created many openings for people whose primary skill is lifting money out of other people’s pockets, not in doing anything productive. Wall Street is the center of such practices. Many of the country’s biggest earners run hedge funds that specialize in computer algorithms that allow them to front-run large trades. This means that if a major investor is about to buy a large amount of a company’s stock, these high-speed traders can buy shares ahead of them and then resell the shares second later for a profit.

Article image
In effect, this is a form of insider trading. It is very profitable for those who can do it successfully, but it provides no benefit to society. It actually harms society and the economy since it reduces the return to honest investors, making them less willing to put their money in the stock market.

Wall Street has many other tricks, most notably being able to rely on the no-cost government insurance provided by the implicit too-big-to-fail guarantee. But today’s story is not Wall Street, or at least not directly Wall Street, today’s story is over-hyped technology companies. Even if Facebook ends up losing much of its value in the years ahead, it is virtually certain that Mark Zuckerberg and other inside players will remain incredibly wealthy individuals. After all, Steve Case is still one of the country’s richest people even though his former company, AOL, could be purchased for pocket change today.
 
The wealth that these people command was not created out of thin air. It came from suckers who bought the hype. With Steve Case, the big suckers were the top management at Time-Warner. They effectively sold the largest media company in the world for almost nothing, giving away most of the company’s shares in exchange for AOL stock. Shareholders who took the deal and did not immediately dump their AOL shares lost more than half of the value of their holdings. 
If Facebook shares plunge we don’t know yet who the big losers will be. Insofar as it is individual investors who knowingly took risks in the hope that Facebook will look more like Google than Webvan, the loss is part of the game. This is like buying a lottery ticket.

But if the list of losers ends up including pension funds, university endowments and other institutional investors, then the public should ask some serious questions of the people who manage these funds. Typically they get paychecks that are many hundreds of thousands or even millions of dollars a year. They should know better than to be suckered by an over-hyped startup.
 
It will be a while yet before we can tally up the winners and losers. But if Facebook turns out to be mostly a media darling and not a hugely profitable company then the genius of Zuckerberg and crew will be in running a successful scam, not creating anything of great value to society. 
Of course it may turn out that Facebook is actually worth its market value in which case none of this discussion is relevant. We will have to wait to know for sure, but until then, don’t believe the hype.

About anything.

Thank you, Dean.

* The United States from 1980

This provocative book describes the sharp right turn the United States has taken following the election of Ronald Reagan as president in 1980. The treatment details how the policies pursued by the Reagan administration were a break from both the policies pursued by prior administrations and those pursued in other wealthy countries.

The Reagan administration policies had the effect of redistributing both before- and after-tax income upward, creating a situation in which the bulk of the economic gains over the last quarter century were directed to a small segment of the population. The analysis explains how both political parties have come largely to accept the main tenets of Reaganism, putting the United States on a path that is at odds with most of the rest of the world and is not sustainable.


Oh, about that Arab (American-CIA-led) Spring?

President Mursi from California?



Thursday, May 24, 2012

Shame IS Due! The "Liberal?" Media Loves To Sink Liberals - Something Stinks: John Edwards and a Thirty Year Jail Term?



Just try mentioning the inequality obviousness. It'll get you 30 years.

And you didn't even murder anyone.

Russ Baker strikes again!

Something Stinks: John Edwards and a Thirty Year Jail Term?


By  

Does no one else find the very fact of John Edwards being on trial curious? Does no one else wonder about the criminal basis for the prosecution? About who in politics does and does not end up being destroyed by matters related to sexual behavior? Let me preface my take on the Edwards trial with one general observation: Not all politicians are created equal. And not all are treated equally. Therein lies an issue deserving a much, much closer look: whether vulnerable Democrats, chiefly of the liberal persuasion, are targeted for destruction.  Or at least helped along to their doom by a double standard.


***
But first, the specifics of the Edwards case
. He faces a potential $1.5 million fine, but, far more seriously, up to thirty years imprisonment. Thirty years. His crime? Not murder, not torture, not armed robbery, not stealing money from clients. No, his crime was his failure to report campaign contributions. While preparing for his second presidential bid, in 2006, he got caught up in an extramarital affair that produced a child. And, not exactly able to announce that fact or ask his sick wife to sign off, the wealthy Edwards turned to some wealthy backers to take care of the woman and the baby and hide the whole thing from Elizabeth Edwards and presumably everyone else. Two people gave him a total of $900,000.






So much for the notion of a “liberal” media showing favoritism to its own.  My experience is that the “liberal” label when applied to journalists is a red herring which distracts us from the fundamentally accommodationist nature of the corporate-owned media.

But the liberal label is effective in pressuring journalists to prove they do not coddle liberals — by doing the exact opposite.






No coward Russ.

(Now will you read his book,

Family of Secrets: The Bush Dynasty, America's Invisible Government, and the Hidden History of the Last Fifty Years?)



And although I campaigned for John and knew Elizabeth, it never occurred to me after seeing the facts and knowing the law surrounding these charges, that they were anything but politically inspired. And not by true liberals. (If there are any still in existence.)

You can laugh at me if you like, but it seems crystal clear from Pottersville that the fascists are triumphing as the fascism fans are not prosecuted and the democrats are.

Wednesday, May 23, 2012

Tyranny? You Wanna Talk Tyranny? (Kucinich Outs the Real NATO; Krugman Lectures Mittens & Legs Dimon) RomneyWorld = PottersVille and Europe Commits Suicide? (For Poor)



They all gotta go!

Every single one who voted against their country's best interests.

[BREAKING NEWS:  Facebook, Zuckerberg, Banks Like Morgan Stanley Sued Over IPO

 The Facebook Fallacy - For all its valuation, the social network is just another ad-supported site. Without an earth-changing idea, it will collapse and take down the Web. . . The daily and stubborn reality for everybody building businesses on the strength of Web advertising is that the value of digital ads decreases every quarter, a consequence of their simultaneous ineffectiveness and efficiency. The nature of people's behavior on the Web and of how they interact with advertising, as well as the character of those ads themselves and their inability to command real attention, has meant a marked decline in advertising's impact. ]

Chicago police officers watch protesters during a demonstration in downtown Chicago on the eve of the NATO summit, 05/19/12. (photo: Getty Images)

This Is What Tyranny Looks Like


By Carl Gibson

21 May 12


Occupy Wall Street: Take the Bull by the Horns

emember when police beat Tea Party activists with batons, raided homes without warrants, unjustly arrested and strip-searched Tea Party protesters, or attacked and intimidated journalists covering Tea Party rallies?

Me neither. But, then again, the Tea Party took to the streets in favor of higher profits and less regulations for the richest 1 percent, whose ranks they hope to but will never join. The media is more than happy to inflate their crowd estimates, and police are more than happy to let pro-status quo protests take to the streets undisturbed. The Tea Party has since phased out street protests to take over a major political party and make it bend to their every radical whim.

While it hasn't yet taken over a major party, the Occupy movement has successfully exposed the oppressive fascist police state that has reared its ugly head in the past year. If you want to see what tyranny looks like, consider what happened to the estimated 75,000 protesters who took on the military-industrial complex at last weekend's NATO summit in Chicago, after the mayor revoked protesters' attempts to lawfully assemble.

  • A night before protests even begun, the Chicago Police Department raided an activist's home and arrested several on unproven allegations of terrorist activity, all without a valid warrant.
  • At the front of a police line surrounding a NATO gathering, police suddenly started beating unarmed protesters with batons in an eerie video resembling police at Egypt's Tahrir Square.
  • While covering the protests, credentialed journalists were attacked by police who used bicycles as weapons.
  • After a day of covering the protests, three livestreamers were surrounded by Chicago police at gunpoint and had their car and property impounded without cause.

But the oppression isn't coming from just the police. The federal government is now openly embracing totalitarian tactics in suppressing political dissent, including unwarranted surveillance, denial of due process rights, and even psychological warfare:

  • FBI agents pressured a group of anarchists in Ohio to blow up a bridge on May Day, going so far as to pick out a target and provide the explosives. They were held without bond after their arrest. White supremacists in Florida planning an actual terrorist attack at a May Day protest were outed by state police, and ignored by federal law enforcement. Their bond was set at $500.

  • The Department of Homeland Security assembled almost 800 pages of documents detailing possibly unconstitutional monitoring of the Occupy movement, and collaboration with city governments.
  • Congress voted down an amendment to the National Defense Authorization Act that would have prohibited the federal government from detaining American citizens indefinitely, without trial, based on pure suspicion. They did so exactly one day after US District Judge Katherine Forrest struck down NDAA detention provisions as unconstitutional.

    Congress also passed a law allowing protesters to be arrested on felony charges anywhere there is secret service protection, and is actively seeking to lift a ban on the use of propaganda on American citizens.
  • The Supreme Court ruled in a 5-4 decision to allow invasive and humiliating strip searches for any arrest, no matter the charge (like protesting).

So why the violent police oppression and government suppression of rights? As Dan Rather stated on Bill Maher's program, "Big business is in bed with big government."

A great portion of the federal government is sponsored by big corporations, so naturally, nearly every act of Congress and the Supreme Court is done so with the ultimate goal of deregulating industry and maximizing corporate profits at the expense of citizen and consumer rights.
These puppets of industry occupying our government will discredit and crack down on anyone trying to stop, delay, or reverse the process by any means necessary.

In 1963, JFK famously said our nation was "... founded on the principle that all men are created equal, and that the rights of every man are diminished when the rights of one man are threatened." The historic street demonstrations of 2012 will be meaningless unless citizens use the power of the vote this year to remove the worst offenders from office. They can start with the Representatives and Senators who voted NO to due process rights.


(Carl Gibson, 25, is co-founder of US Uncut, a nationwide creative direct-action movement that mobilized tens of thousands of activists against corporate tax avoidance and budget cuts in the months leading up to the Occupy Wall Street movement. Carl and other US Uncut activists are featured in the documentary "We're Not Broke," which premiered at the 2012 Sundance Film Festival. He currently lives in Old Lyme, Connecticut. You can contact Carl at carl@rsnorg.org, and listen to his online radio talk show, Swag The Dog, at blogtalkradio.com/swag-the-dog.)

Dennis to the rescue?

As usual.

And you might want to practice saying, "Defense from what?"

NATO Talks a Sham

By Dennis Kucinich

22 May 12


he North Atlantic Treaty Organization is not a benevolent organization. NATO is not about the North Atlantic and it's not about our collective defense.

NATO is a cost-sharing organization that finances aggressive military action. By hiding behind the claim that the organization provides for 'common defense,' NATO allows us to wage wars of choice under the guise of international peacekeeping. The most recent example was the unconstitutional war in Libya where NATO, operating under a United Nations mandate to protect civilians, instead backed one side in a civil war and pursued a policy of regime change.

Today, NATO leaders are meeting in Chicago to discuss the future of Afghanistan. The talks are being billed as discussions of plans to end the war. The war in Afghanistan is not ending. These talks are simply about financing the next phase of the war.


The Strategic Partnership Agreement between the U.S. and Afghanistan commits us to the country for at least another decade, despite public support for the war being at an all-time low. The United States will pay for half of the estimated $4.1 billion per year cost of supporting 352,000 Afghan army and police officers. Afghanistan's contribution will be $500,000. The rest will be financed by our 'NATO partners.' It is not surprising that support for the war among NATO members is waning, with France threatening to pull out its troops by the end of this year.

Our participation in NATO comes at a great financial cost to the U.S. We contribute the majority of funds for NATO's common budget, including 25% of the military budget. Between fiscal years 2010 and 2012 alone, we contributed more than $1.3 billion to NATO's military budget. We also incur significant costs through the deployment of our forces in support of NATO missions. According to The Atlantic, the war in Libya cost the United States $1.1 billion.

NATO was originally founded to provide a strategic counterbalance to the Soviet Union. Its founding purpose no longer exists, but NATO continues to circumvent the authority of the United Nations and to provoke other nations. NATO is an anachronism. Instead of trying to bolster the organization, we should begin serious discussions to dismantle it.

Paul Krugman hands Mittens (and Legs (Jamie) Di(a)mon(d)) their hats.

About time someone in authority did. (Thanks for the Pottersville plug, Paul!)

Portrait, New York Times columnist Paul Krugman, 06/15/09. (photo: Fred R. Conrad/NYT)

Dimon’s Déjà Vu Debacle



Sometimes it’s hard to explain why we need strong financial regulation — especially in an era saturated with pro-business, pro-market propaganda. So we should always be grateful when someone makes the case for regulation more compelling and easier to understand. And this week, that means offering a special shout-out to two men: Jamie Dimon and Mitt Romney.

I’ll come back shortly to the troubles at JPMorgan Chase, the bank Mr. Dimon runs. First, however, let me talk about Mr. Romney, whose remarks about those troubles were so off-point that they constitute a teachable moment.

Here’s what the presumptive Republican presidential nominee said about JPMorgan’s $2 billion loss (which may actually have been $3 billion, or $5 billion, or more, but who’s counting?): “This was a loss to shareholders and owners of JPMorgan and that’s the way America works. Some people experienced a loss in this case because of a bad decision. By the way, there was someone who made a gain.”

What’s wrong with this statement? Well, suppose that someone — say, Jimmy Stewart in the movie “It’s a Wonderful Life” — runs a bank that takes in deposits and invests the money in various ways. And suppose that one of those investments is a risky bet on some complex financial instrument, with Mr. Potter, the evil plutocrat, on the other side.

If Jimmy Stewart’s bet pays off, we’re in Romneyworld: he’s made money, Mr. Potter has lost money, and that’s that. But suppose Jimmy Stewart loses his bet. If the bet was big enough, he no longer has enough assets to pay off his depositors. His bank collapses, probably in a chaotic bank run that takes down the whole town’s economy as collateral damage. Mr. Potter makes money on the deal, but so what?

The point is that it’s not O.K. for banks to take the kinds of risks that are acceptable for individuals, because when banks take on too much risk they put the whole economy in jeopardy — unless they can count on being bailed out. And the prospect of such bailouts, of course, only strengthens the case that banks shouldn’t be allowed to run wild, since they are in effect gambling with taxpayers’ money.

Incidentally, how is it possible that Mr. Romney doesn’t understand all of this? His whole candidacy is based on the claim that his experience at extracting money from troubled businesses means that he’ll know how to run the economy — yet whenever he talks about economic policy, he comes across as completely clueless.

Anyway, it goes without saying that Jamie Dimon is no Jimmy Stewart. But he has, in a way, been playing Jimmy Stewart on TV, posing as a responsible banker who knows how to manage risk — and therefore the point man in Wall Street’s fight to block any tightening of regulations despite the immense damage deregulated banks have already inflicted on our economy. Trust us, Mr. Dimon has in effect been saying, we’ve got this covered and it won’t happen again.

Now the truth is coming out. That multibillion-dollar loss wasn’t an isolated event; it was an accident waiting to happen. For even as Mr. Dimon was giving speeches about responsible banking, his own institution was heaping on the risk. “The unit at the center of JPMorgan’s $2 billion trading loss,” reports The Financial Times, “has built up positions totaling more than $100 billion in asset-backed securities and structured products — the complex, risky bonds at the center of the financial crisis in 2008. These holdings are in addition to those in credit derivatives which led to the losses.”

And what was going on as these positions were being accumulated? According to a fascinating report in Sunday’s Times, the reality behind JPMorgan’s facade of competence was a scene all too reminiscent of the behavior that brought down firms like A.I.G. in 2008: arrogant executives shouting down anyone who tried to question their activities, top management that didn’t ask questions as long as the money kept rolling in. It really is déjà vu all over again.

The point, again, is that an institution like JPMorgan — a too-big-to-fail bank, not to mention a bank whose deposits are already guaranteed by U.S. taxpayers — shouldn’t be engaged in this kind of speculative investment at all. And that’s why we need a return to much stronger financial regulation, stronger even than the Dodd-Frank regulations passed back in 2010.

Will we get that kind of regulation? Not if Mr. Romney wins, obviously; he wants to repeal Dodd-Frank, and in general has made it clear that he would do everything in his power to set us up for another financial crisis. Even if President Obama is re-elected, getting the kind of regulation we need will be an uphill struggle. But as Mr. Dimon’s debacle has just demonstrated, that struggle remains as necessary as ever.

And Europe doubles down on a civilization-losing strategy?

Europe's Leaders Double Down on a Failed Strategy

Tuesday, 22 May 2012

Paul Krugman, Krugman & Co.

Germany train carting along EU(Image: CartoonArts International / The New York Times Syndicate)I guess we knew this was coming, but in the face of the French and Greek election results and the broader evidence that Europe's economic strategy is an utter failure, the usual suspects are, you guessed it, doubling down.

Simon Wren-Lewis, an economics professor at Oxford, has looked on in horror as the Dutch have agreed on completely unnecessary austerity measures, as a way of showing their commitment to Europe's totally misguided fiscal pact. "Towards the end of April the Dutch conservative coalition government collapsed when the far-right party refused to discuss further budget cuts," Mr. Wren-Lewis wrote on his blog on May 7. "The prime minister resigned. And yet a few days later other parties rallied round to give their support to a similar package of austerity measures, which now have majority support in parliament."

British Prime Minister David Cameron vowed "no going back" on his failed austerity strategy in a speech after the elections.
And Jens Weidmann, president of the German central bank, vowed to destroy the euro. O.K., that's not what he said in so many words, but that's the implication of his op-ed in the Financial Times on May 7.
The meat is at the end: "Monetary policy in the euro zone is geared towards monetary union as a whole; a very expansionary stance for Germany therefore has to be dealt with by other, national instruments," Mr. Weidmann wrote. "However, this also implies that concerns about the impact of a less expansionary monetary policy on the periphery must not prevent monetary policy makers' taking the necessary action once upside risks for euro zone inflation increase.

Delivering on its primary goal to maintain price stability is the prerequisite for safeguarding the most precious resource a central bank can command: credibility."

Let's parse this. "A very expansionary stance for Germany therefore has to be dealt with ..." I'm pretty sure is code for saying that Germany will try to prevent any inflationary impact of low European Central Bank rates with fiscal contraction. Austerity for all! (And no help for peripheral economies in the form of above-normal German inflation.)
And then, a declaration that the E.C.B. will tighten to prevent any "upside risks for euro zone inflation" — even if the southern economies are facing deflation.
Put it together, and it's a declaration that all of the burden of "internal devaluation" — the need to bring costs and prices in Spain and others down relative to the core — will be borne by deflation in the south.
This won't work, of course; it's a prescription for catastrophic failure of the euro.
What is Mr. Weidmann thinking?
My guess is that he isn't — or at least that there's no model there, just a series of central bankerish catch-phrases strung together, in a way that fails to reveal the underlying impossibility of the strategy.
All in all, nothing learned, and no willingness to reconsider.

Sounds like they're retiring tomorrow and moving to Switzerland (or the Scandinavian countries) ASAP to me.