Buddhists stole my clarinet... and I'm still as mad as Hell about it! How did a small-town boy from the Midwest come to such an end? And what's he doing in Rhode Island by way of Chicago, Pittsburgh, and New York? Well, first of all, it's not the end YET! Come back regularly to find out. (Plant your "flag" at the bottom of the page, and leave a comment. Claim a piece of Rhode Island!) My final epitaph? "I've calmed down now."

Thursday, October 29, 2009

"America's Priorities," by the Beltway elite

Endless war in Afghanistan is an absolute necessity. Health care for Americans is a luxury that can wait.

Glenn Greenwald, Salon.com

Oct. 24, 2009

Something very unusual happened on The Washington Post Editorial Page today: they deigned to address a response from one of their readers, who "challenged [them] to explain what he sees as a contradiction in [their] editorial positions": namely, the Post demands that Obama's health care plan not be paid for with borrowed money, yet the very same Post Editors vocally support escalation in Afghanistan without specifying how it should be paid for. "Why is it okay to finance wars with debt, asks our reader, but not to pay for health care that way?"

The Post editors give two answers. They first claim that Obama will save substantial money by reducing defense spending -- by which they mean that he is merely decreasing the rate at which defense spending increases ("from 2008 to 2019, defense spending would increase only 17 percent") -- as well as withdrawing from Iraq. But so what? Even if those things really happen, we're still paying for our glorious, endless war in Afghanistan by borrowing the money from China and Japan, all of which continues to explode our crippling national debt. We have absolutely no ability to pay for our Afghan adventure other than by expanding our ignominious status as the largest and most insatiable debtor nation which history has ever known. That debt gravely bothers Beltway elites like the Post editors when it comes to providing ordinary Americans with basic services (which Post editors already enjoy), but it's totally irrelevant to them when it comes to re-fueling the vicarious joys of endless war.

The Post attempts to justify that disparity with their second answer, which perfectly captures the prevailing, and deeply warped, Beltway thinking: namely, escalating in Afghanistan is an absolute national necessity, while providing Americans with health care coverage is just a luxury that can wait:

All this assumes that defense and health care should be treated equally in the national budget. We would argue that they should not be . . . Universal health care, however desirable, is not "fundamental to the defense of our people." Nor is it a "necessity" that it be adopted this year: Mr. Obama chose to propose a massive new entitlement at a time of historic budget deficits. In contrast, Gen. McChrystal believes that if reinforcements are not sent to Afghanistan in the next year, the war may be lost, with catastrophic consequences for U.S. interests in South Asia. U.S. soldiers would continue to die, without the prospect of defeating the Taliban. And, as Mr. Obama put it, "if left unchecked, the Taliban insurgency will mean an even larger safe haven from which al-Qaeda would plot to kill more Americans."

Actually, a recent study from the Harvard Medical School and Cambridge Health Alliance documented that "nearly 45,000 annual deaths are associated with lack of health insurance" in America. Whatever the exact number, nobody doubts that lack of health insurance causes thousands of Americans to die every year. If you're Fred Hiatt and you already have health insurance, it's easy to dismiss those deaths as unimportant, "not fundamental," not a "necessity" to tend to any time soon. No matter your views on Obama's health care reform plan, does it really take any effort to see how warped that dismissive mentality is?

But it becomes so much worse when one considers what we're ostensibly going to do in Afghanistan as part of our venerated "counter-insurgency" mission. In an amazingly enlightening interview with Frontline, military expert Andrew Bacevich explains what that supposedly entails:

I think the best way to understand the term "counterinsurgency" is to understand what the U.S. Army and the Marine Corps today mean by that term. What they mean is an approach to warfare in which success is to be gained not by destroying the enemy but by securing the population.

The term "securing" here means not simply keeping the people safe, but providing for the people a series of services -- effective governance, economic development, education, the elimination of corruption, the protection of women's rights. That translates into an enormously ambitious project of nation building. . . .

John Nagl says that in effect we are engaged in a global counterinsurgency campaign. That's his description of the long war.

Now, think about it. If counterinsurgency, according to current doctrine, is all about securing the population, if securing the population implies not simply keeping them safe but providing people with good governance and economic development and education and so on, what then is the requirement of a global counterinsurgency campaign?

Are we called upon to keep ourselves safe? To prevent another 9/11? Are we called upon to secure the population of the entire globe? Given the success we've had thus far in securing the population in Iraq and in Afghanistan, does this idea make any sense whatsoever?

Can anybody possibly believe that the United States of America, ... facing a federal budget deficit of $1.8 trillion ... has the resources necessary to conduct a global counterinsurgency campaign? Over what? The next 20, 50, 80 years? I think [there] is something so preposterous about such proposals. I just find it baffling that they are treated with seriousness by supposedly serious people.

So according to The Washington Post, dropping bombs on, controlling and occupying Afghanistan -- all while simultaneously ensuring "effective governance, economic development, education, the elimination of corruption, the protection of women's rights" to Afghan citizens in Afghanistan -- is an absolutely vital necessity that must be done no matter the cost. But providing basic services (such as health care) to American citizens, in the U.S., is a secondary priority at best, something totally unnecessary that should wait for a few years or a couple decades until we can afford it and until our various wars are finished, if that ever happens. "U.S. interests in South Asia" are paramount; U.S. interests in the welfare of those in American cities, suburbs and rural areas are an afterthought.

As demented as that sounds, isn't that exactly the priority scheme we've adopted as a country? We're a nation that couldn't even manage to get clean drinking water to our own citizens who were dying in the middle of New Orleans. We have tens of thousands of people dying every year because they lack basic health care coverage. The rich-poor gap continues to expand to third-world levels. And The Post claims that war and "nation-building" in Afghanistan are crucial while health care for Americans is not because "wars, unlike entitlement programs, eventually come to an end." Except, as Bacevich points out, that's false:

Post-Vietnam, the officer corps was committed to the proposition that wars should be infrequent, that they should be fought only for the most vital interests, and that they should be fought in a way that would produce a quick and decisive outcome.

What we have today in my judgment is just the inverse of that. War has become a permanent condition.

Beltway elites have health insurance and thus the costs and suffering for those who don't are abstract, distant and irrelevant. Identically, with very rare exception, they and their families don't fight the wars they cheer on -- and don't even pay for them -- and thus get to enjoy all the pulsating benefits without any costs whatsoever. Adam Smith, all the way back in 1776, in An Inquiry into the Nature And Causes of the Wealth of Nations, described this Beltway attitude exactly:

In great empires the people who live in the capital, and in the provinces remote from the scene of action, feel, many of them, scarce any inconveniency from the war; but enjoy, at their ease, the amusement of reading in the newspapers the exploits of their own fleets and armies . . .

Lounging around in the editorial offices in the capital of a rapidly decaying empire, urging that more Americans be sent into endless war paid for with endless debt, while yawning and lazily waving away with boredom the hordes outside dying for lack of health care coverage, is one of the most repugnant images one can imagine. It's exactly what Adam Smith denounced. And it's exactly what our political and media elite are.

-- Glenn Greenwald

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Don't be surprised the media elite sided with Fox

Washington reporters know that Democrats complain, but Republicans get even

By Gene Lyons

Oct. 29, 2009

Nobody should be surprised to see the nation's esteemed celebrity news media align with Fox News against the White House, although even a cynical observer like me found the unanimity mildly shocking. Don't they remember what journalism is supposed to be?

Supposedly, the press regulates its own behavior; in reality, that's been a joke for two decades. "Claiming the moral authority of a code of professional ethics it idealizes in the abstract but repudiates in practice," I wrote in 2003, "today's Washington press corps has grown as decadent and self-protective as any politician or interest group whose behavior it purports to monitor."

Today, even the fig leaf has been removed. A "journalist," so-called, is anybody paid by a media organization to enact the role on television.

Otherwise, anything goes.

The Obama administration's basic charge against Fox News is undeniably true: The network functions as the propaganda wing of the Republican Party. Fox openly organizes and promotes partisan political events such as April's "Fox News Tea Party." Its coverage of congressional "Town Hall" meetings reflected not a single individual supporting healthcare reform, as documented by Media Matters for America. Not one. Fox portrays every perceived setback for the Obama White House as a "victory" for "Fox Nation."

As necessary, Fox resorts to sheer fiction: Reporting that Glenn Beck's ballyhooed October Tea Party event drew upward of 2 million protesters to Washington. In reality, considerably more fans (102,941) attended the Auburn-Tennessee football game. (Political tip: If you hope to draw big crowds of Southern white men, avoid Saturdays in October.)

The point's neither complex nor subtle. In this country, journalists don't sponsor or participate in partisan political events. Maybe in Venezuela or China, but in the United States, no. Explaining to the New York Times, deputy White House communications director Dan Pfeiffer said, "We simply decided to stop abiding by the fiction, which is aided and abetted by the mainstream press, that Fox is a traditional news organization."

Yet neither the Times nor most "mainstream" pundits evaluated the claim on its merits. Most pretended not to grasp the White House's point, and then went straight to the aiding and abetting. Many invoked the ghost of Richard Nixon. Why, to criticize Fox, claimed the Washington Post's Ruth Marcus and Charles Krauthammer, was downright "Nixonian."

NPR's Ken Rudin recalled "what Nixon and Agnew did with their enemies list." So did CNN's Anderson Cooper. Rudin subsequently apologized for the "boneheaded" comparison; Cooper didn't.

Excuse me, but Nixon's enemies list was secret. Journalists and others got subjected to illegal FBI wiretaps, "black bag" break-ins and IRS audits. White House officials even discussed murdering columnist Jack Anderson.

Meanwhile, Nixon's Oval Office tapes are the gift that keeps giving to historians like "Nixonland's" Rick Perlstein. "Bob, PLEASE get me the names of the Jews, you know the big Jewish contributors of the Democrats," Nixon begged aide H.R. Haldeman. "Could we please investigate some of the (bleepbleepers)?"

Now that's what I call an enemies list.

Meanwhile, poor little Fox got criticized publicly. Oh, the horror!

Look, here's the deal. Where Democrats are concerned, journalism's vaunted ethical code quit functioning as anything but camouflage during President Clinton's first term. Out of scores of examples Joe Conason and I documented in "The Hunting of the President," the easiest to explain briefly may be a 1995 ABC "Nightline" broadcast in which a creatively edited video clip was used to insinuate that Hillary Clinton lied about "Whitewater" legal work.

After excising the words "I was what we called the billing attorney" from the first lady's remarks, ABC's Jeff Greenfield suggested that concealing that very fact explained "why the White House was so worried about what was in Vince Foster's office when he killed himself."

The phony quote then showed up everywhere: on CNN, in New York Times editorials, Maureen Dowd's column, etc. William Safire used it to predict Mrs. Clinton's indictment. After all, as Newsweek's Michael Isikoff wrote, "It is Foster's suicide that lends Whitewater its aura of menace."

Ancient history? Maybe so. But there was Jeff Greenfield on CBS News last week (he's worked for everybody), making the obligatory Nixon comparison and assuring Katie Couric that "if Fox is feeling any pain from the White House's stance, it's crying all the way to the bank."

As do they all.

See, while Fox News acolytes remain convinced of "liberal media bias," the reality is that celebrity journalists rarely, if ever, get hurt for abusing Democrats. Mistreat a name-brand Republican, however, and ...

Well, remember "60 Minutes'" Dan Rather?

Democrats complain; Republicans get even.

Hence "mainstream" political journalists, who cower like beaten dogs for fear of ending up on Fox boss (and Nixon alumnus) Roger Ailes' own enemies list, haven't had to fear the Obama White House. Last week's collective cringe makes it abundantly clear how badly they'd like to keep it that way.

© 2009 by Gene Lyons. Distributed by Newspaper Enterprise Assn.

-- By Gene Lyons

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Wednesday, October 28, 2009

Bankers Vs. The People: Which Side Is The White House On?

By Dan Froomkin, Huffington Post, October 28, 2009

As the battle lines are drawn between the people and the bankers outside the ABA convention in Chicago, the question arises: Which side is the White House on, exactly?

Yes, the Obama administration is pushing to dramatically increase the regulation of consumer and other financial transactions that have run amok, but there is widespread concern from across the political spectrum that the White House is neither going far enough nor fighting hard enough. And time and again -- most notably with the ongoing $700 billion bailout -- Obama administration policies have put the interests of bankers and Wall Street ahead of those of impoverished families, unemployed workers or underwater homeowners.

One reason -- which has never been directly addressed by Obama -- may be that many of his chief financial advisers have pocketed extraordinary amount of money from banks and Wall Street, and presumably intend to do so again. They are part of the banker class, and their loyalties have been bought and paid for.

Back in April, when the White House released financial disclosure forms late one Friday, those few people paying attention learned just how stupendously beholden Obama's top economic adviser, Larry Summers, is to the financial industry that he is ostensibly trying to rein in.

Summers was paid $5.2 million for his part-time work for a massive hedge fund in 2008. He also took in more than $2.7 million in fees for speaking engagements at such places as Citigroup, Lehman Brothers, Merrill Lynch and Goldman Sachs -- including one visit alone that netted him $135,000 from Goldman Sachs.

That's right: $135,000 for one visit on one day. You can't pocket that kind of money and not be, on some level, corrupted.

Similarly, deputy national security adviser for international economic affairs Michael Froman received $7.4 million from Citigroup between January 2008 and January 2009 -- including a year-end bonus of $2.25 million that he received just days before coming to work at the White House for a man who was at that very moment calling just such bonuses "shameful".

And earlier this month, Bloomberg's Robert Schmidt significantly added to our understanding of just how co-opted Obama's financial team is by examining the financial disclosure forms of Treasury Secretary Timothy Geithner's closest aides.

The advisers include Gene Sperling, who last year took in $887,727 from Goldman Sachs and $158,000 for speeches mostly to financial companies, including the firm run by accused Ponzi scheme mastermind R. Allen Stanford.
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Another top aide, Lee Sachs, reported more than $3 million in salary and partnership income from Mariner Investment Group, a New York hedge fund.

Sachs, who joined Treasury in January, reported in February that he was still owed a 2008 bonus whose value was "not ascertainable." I wonder how that one turned out.

Also in Geithner's inner circle, according to Schmidt: "counselor Lewis Alexander, the former chief economist at Citigroup; Chief of Staff Mark Patterson, who was a lobbyist at Goldman Sachs, and Matthew Kabaker, a deputy assistant secretary who worked at private equity firm."

Alexander was paid $2.4 million in 2008 and the first few months of 2009 by Citigroup; Kabaker earned $5.8 million working on private equity deals at Blackstone in 2008 and 2009.

Patterson, Geithner's chief of staff, was a registered lobbyist for Goldman Sachs before joining the Obama campaign, and took in what seemed at first glance to be a relatively modest-by-Goldman-standards salary of $637,230 in 2008. But it turns out that was only for three months' work -- he left Goldman in early April.

All this money makes Obama's top financial advisors veritable poster boys for the Wall Street culture that the president in his speeches has publicly decried as a "house of cards" and a "Ponzi scheme" in which "a relatively few do spectacularly well while the middle class loses ground".

I'm not doubting the smarts of Obama's financial team -- but I do feel that the vast majority of people who take the kind of money we're talking about here can't help but be warped by it, and that in choosing to cash in, they essentially disqualified themselves from public service.

Unless they are willing to assertively act in ways that redeem themselves and show that their allegiances have not been purchased, they should step down and make way for people who see the people's side of things a little more clearly.




* * * * * * * * * * * *

A message from Dan about how to find me: I'm not writing every day anymore -- I've now also Washington Bureau Chief for the Huffington Post. But there are lots of ways to keep track of me.


You can find my latest posts on this page, or you can subscribe to this RSS feed. You can also get an e-mail alert as soon as I post by creating a HuffPost Account (or logging in, if you have one already) and becoming one of my "fans". Make sure you also click on "Get Email Alerts from this Reporter" -- so that on this page, the little box next to "Notify me when a blogger I'm a fan of writes a new post" is checked. You can also follow me on Twitter, or Facebook. And I always welcome your emails at

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Tuesday, October 27, 2009

Why the White House and Congress won't break up the banks

There are plenty of good reasons to break up the behemoth banks -- just not good enough for Obama

By Robert Reich

Oct. 26, 2009

And now there are five -- five Wall Street behemoths, bigger than they were before the Great Meltdown, paying fatter salaries and bonuses to retain their so-called"talent," and raking in huge profits. The biggest difference between now and last October is these biggies didn't know then that they were too big to fail and the government would bail them out if they got into trouble. Now they do. And like a giant, gawking adolescent who's just discovered he can crash the Lexus convertible his rich dad gave him and the next morning have a new one waiting in his driveway courtesy of a dad who can't say no, the biggies will drive even faster now, taking even bigger risks.

What to do? Two ideas are floating around Washington, but only one is supported by the Treasury and the White House. Unfortunately, it's the wrong one.

The right idea is to break up the giant banks. I don't often agree with Alan Greenspan but he was right when he said last week that "[i]f they're too big to fail, they're too big." Greenspan noted that the government broke up Standard Oil in 1911, and what happened? "The individual parts became more valuable than the whole. Maybe that's what we need to do." (Historic footnote: Had Greenspan not supported in 1999 Congress's repeal of the Glass Stagall Act, which separated investment from commercial banking, we wouldn't be in the soup we're in to begin with.)

Former Fed Chair Paul Volcker, whose only problem is he's much too tall, last week told the New York Times he'd like to see the restoration of the Glass-Steagall Act provisions that would separate the financial giants' deposit-taking activities from their investment and trading businesses. If this separation went into effect, JPMorgan Chase would have to give up the trading operations acquired from Bear Stearns. Bank of America and Merrill Lynch would go back to being separate companies. And Goldman Sachs could no longer be a bank holding company.

But the Obama Administration doesn't agree with either Greenspan or Volcker. While it says it doesn't want another bank bailout, its solution to the "too big to fail" problem doesn't go nearly far enough. In fact, it doesn't really go anywhere. The Administration would wait until a giant bank was in danger of failing and then put it into a process akin to bankruptcy. The bank's assets would be sold off to pay its creditors, and its shareholders would likely walk off with nothing. The Treasury would determine when such a "resolution" process was needed, and appoint a receiver, such as the FDIC, to wind down the bank's operations.

There should be an orderly process for putting big failing banks out of business. But this isn't nearly enough. By the time a truly big bank gets into trouble -- one that poses a "systemic risk" to the entire economy -- it's too late. Other banks, competing like mad for the same talent and profits, will already have adopted many of the excessively-risky banks techniques. And the pending failure will already have rocked the entire financial sector.

Worse yet, the Administration's plan gives the big failing bank an escape hatch: The receiver might decide that the bank doesn't need to go out of business after all -- that all it needs is some government money to tide it over until the crisis passes. So the Treasury would also have the authority to provide the bank with financial assistance in the form of loans or guarantees. In other words, back to bailout. (Historical footnote: Summers and Geithner, along with Bob Rubin, while at Treasury in 1999, joined Greenspan in urging Congress to repeal Glass-Steagall. The four of them -- Greenspan, Summers, Rubin and Geithner also refused to regulate derivatives, and pushed Congress to stop the Commodity Futures Trading Corporation from doing so.)

Congress is cooking up a variation on the "resolution" idea that would give the Federal Deposit Insurance Corporation authority to trigger and handle the winding-down of big banks in trouble, without Treasury involvement, and without an escape hatch.

Needless to say, Wall Street favors the Administration's approach -- which is why the Administration chose it to begin with. If I were less charitable I'd say Geithner and Summers continue to bend over bankwards to make Wall Street happy, and in doing so continue to risk the credibility of the President, as well as the long-term financial stability of the system.

Wall Street could live with the slightly less delectable variation that Congress is coming up with. But Congress won't go as far as to unleash the antitrust laws on the big banks or resurrect the Glass-Steagall Act. After all, the Street is a major benefactor of Congress and the Street's lobbyists and lackeys are all over Capitol Hill.

The Street obviously detests the notion that its behemoths should be broken up. That's why the idea isn't even on the table. But it should be. No important public interest is served by allowing giant banks to grow too big to fail. Winding them down after they get into trouble is no answer. By then the damage will already have been done.

Whether it's using the antitrust laws or enacting a new Glass-Steagall Act, the Wall Street giants should be split up -- and soon.

-- By Robert Reich

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Research and communications arm: Fox News is home to GOP in exile

October 26, 2009 9:54 am ET

SUMMARY: A revolving door exists between the Republican Party and Fox News Channel, with a number of former Bush administration officials, former and potentially future GOP presidential candidates, and Republican strategists on Fox's payroll and airwaves. A Media Matters for America review of Fox coverage since September 1 reveals that these individuals, typically hosted alone or on unbalanced panels, often use their airtime to advance false and misleading claims about Democrats and progressives, as well as to fundraise, further demonstrating that Fox is effectively a conservative political organization and not a legitimate news outlet.

Bush administration in exile

Karl Rove: Ubiquitous in Bush White House, on Fox News. Karl Rove, who served as George W. Bush's senior adviser and deputy chief of staff throughout most of his eight-year presidency, is a ubiquitous figure on Fox News. Since September 1, for instance, he has appeared at least 17 times -- roughly twice a week -- on prime-time programs such as Hannity and The O'Reilly Factor in his capacity as Fox News contributor and political analyst. In all but one of those instances, he has appeared alone opposite Fox hosts. (On the October 18 edition of Fox News Sunday, he appeared opposite former Democratic Party chairman Terry McAuliffe.) Moreover, Rove has repeatedly misled and misinformed during these appearances, including falsely claiming that Kevin Jennings, a Department of Education official, had engaged in "high-profile, in-your-face advocacy of things like NAMBLA and gay rights and queering elementary school curricula" and advancing the dubious claim, contradicted by the Congressional Budget Office, that the House health care bill will lead employers to "dump" coverage.

Dana Perino: From Bush White House podium to Fox News desk. After serving as Bush's press secretary, Perino became a Fox News contributor and Fox Forum columnist, appearing on Fox News' prime-time programs at least nine times since September 1, most frequently on Hannity, according to a search of the Nexis database. Perino typically appeared with other guests: She appeared with a Fox Business Network reporter in four instances, she appeared twice with Democrats or liberals (Bob Beckel and Julie Menin), and she appeared once on a Fox News Sunday panel with syndicated columnist Charles Krauthammer, as well as Mara Liasson and Juan Williams of NPR. She appeared alone twice. During these appearances, Perino has falsely suggested that allowing federally subsidized health plans to cover abortion is inconsistent with current law and suggested that the White House is doing "like dictators do" by criticizing Fox.

John Bolton: Bush ambassador to Fox Nation. John Bolton, formerly Bush's ambassador to the United Nations, now serves as a Fox News contributor and has appeared alone opposite Fox prime-time hosts nine times since September 1. During his appearances, he has advanced misinformation, such as joining Fox host and conspiracy theorist Glenn Beck in suggesting that the Obama administration supports a one-world government.

Home for recent and potential GOP presidential, gubernatorial candidates

Mike Huckabee: Former GOP presidential candidate uses Fox perch to fundraise for his PAC. Former Arkansas Gov. Mike Huckabee became host of the Fox News program Huckabee after his failed bid for the GOP's presidential candidate in 2008 and has guest-hosted The O'Reilly Factor at least three times during 2009, according to a Nexis search. Moreover, in his capacity as Fox host, Huckabee has directed viewers to "go to balancecutsave.com," which redirects visitors to a Web page soliciting donations for Huckabee's political action committee, which financially supports Republican candidates and also pays his daughter's salary. Additionally, Huckabee has advanced falsehoods during his Fox appearances in 2009, including falsely suggesting that Vice President Joe Biden disclaimed responsibility for the economy and that Bush did not claim to have "inherited" a weakening economy.

Newt Gingrich: From House speaker to Fox contributor to ... 2012 GOP pres. candidate? Fox News political contributor Newt Gingrich, who "joined the network in 1999, marking his first television deal since leaving Congress" that year as Republican speaker of the House of Representatives, repeatedly appears on Fox News prime-time programs alone opposite Fox's conservative hosts -- while considering a run for president in 2012. Since September 1, Gingrich has appeared as a contributor or analyst on Fox News at least 10 times, including four appearances on Hannity and two appearances on The O'Reilly Factor, according to a Nexis search. In seven instances he appeared alone, he appeared twice with his wife, Callista Gingrich, to promote their documentary and books, and he appeared once on a Fox News Sunday panel with Sen. Lamar Alexander (R-TN), former DNC chair Howard Dean, and Obama transition team head John Podesta. During these and other appearances on Fox, Gingrich advanced baseless and outrageous claims, including wondering if White House communications director Anita Dunn wants to subject Fox commentators to a "Cultural Revolution" and smearing then-Supreme Court nominee Sonia Sotomayor by claiming that she "clearly supported racial quotas" in the Ricci v. DeStefano case.

John Kasich: Fox host turned Ohio GOP gubernatorial candidate. Former Ohio Republican congressman John Kasich, who hosted the now-defunct Fox News program Heartland with John Kasich, guest-hosted The O'Reilly Factor at least twice in 2009 prior to announcing his bid for Ohio governor on June 1. Kasich appeared on Hannity the day that he announced his candidacy and three times thereafter, according to a Nexis search. Additionally, Kasich's gubernatorial website features an article in its news section that identifies him as "Fox News' Kasich."

(Image from the News section of Kasich's gubernatorial campaign website taken 10/22/09.)

During his Fox News tenure, Kasich has advanced misinformation, including forwarding the false Republican talking point that Democrats, for all their criticism of the Bush administration's Iraq war policy, had no plan of their own to deal with Iraq, terrorism, and national security in general. Media Matters has also documented that he claimed that the Rev. Jerry Falwell, founder and chairman of the Moral Majority Coalition, is not "some sort of extremist."

Fox provides a perch for GOP strategists and pollsters

Dick Morris uses Fox appearances to smear Obama White House, fundraise. Fox News political analyst and Republican strategist Dick Morris is a ubiquitous presence on Fox News' prime-time programs, appearing nearly three times a week every week since September 1, according to a Nexis search. Morris has appeared alone opposite a Fox host since the beginning of September at least 20 times, appearances that are fairly evenly split among The O'Reilly Factor, Hannity, and On the Record with Greta Van Susteren. During the 2008 election cycle, Morris repeatedly urged viewers to donate to an anti-Obama political action committee without disclosing that that PAC had paid a firm connected to him; in recent days, he has repeatedly used his appearances to fundraise for a conservative group opposed to health care reform for which he is chief strategist. Additionally, while on Fox, Morris has repeatedly smeared Obama and his administration, claiming, for instance, that Secretary of State Hillary Clinton may challenge Obama in the 2012 primary and that Obama "delay[ed] the decision to commit troops to Afghanistan ... because he wanted this [Nobel] prize."

Frank Luntz doctors words, facts while on Fox. GOP consultant and pollster Frank Luntz has repeatedly appeared during Fox News' prime-time shows since September 1, interviewed alone a total of six times on Hannity and The O'Reilly Factor and appearing twice on Glenn Beck with several 9-12 Moms. During his Fox News appearances, Luntz -- who authored an anti-reform health-care talking points memo intended to help conservatives defeat the Democrats' health reform initiative -- has repeatedly misinformed about health care reform. For instance, he has falsely suggested that reform legislation reduces physician payments and spawned another GOP talking point, asserting that the Democrats' proposed public insurance plan is a "government option" not a "public option, which is what the White House calls it." Beck also hosted Luntz to instruct his audience on the signs "the tea party people should be carrying."

&mdash M.W.

Copyright © 2009 Media Matters for America. All rights reserved.

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Fox News' rhetoric echoes Ailes' long history of race-baiting

SUMMARY: Under its president, Roger Ailes, Fox News routinely employs racially charged appeals to foment opposition to the Obama administration and other progressive figures, such as Glenn Beck's comments that President Obama is a "racist" and "has a deep-seated hatred for white people or the white culture." Before launching the Fox News Channel, Ailes worked as a media consultant for several Republican campaigns where evidence shows he similarly appealed to racial fears and biases for political gain, and as executive producer for Rush Limbaugh's television show, during which Limbaugh made several controversial statements.

Ailes' political and media history is littered with race-based appeals

As Nixon campaign consultant, Ailes reportedly looked for a "Wallaceite cab-driver" to bring up race at televised town hall meetings. As media consultant for Richard Nixon's 1968 campaign, Ailes directed televised town hall meetings in which Nixon answered questions from a supportive audience. According to Rick Pearlstein, Ailes suggested Nixon take a question from "A good, mean, Wallaceite cab-driver. Wouldn't that be great? Some guy to sit there and say, 'Awright, Mac, what about these niggers?" Pearlstein wrote, "Nixon then could abhor the uncivility of the words, while endorsing a 'moderate' version of the opinion. Ailes walked up and down a nearby taxi stand until he found a cabbie who fit the bill."

From Nixonland by Rick Pearlstein:

The panel questioners were unrehearsed. But they were also an effect of stagecraft. They were like those heterogeneous World War II-picture platoons: here a Jewish physician; there the president of an immigrant advocacy group; an outnumbered newsman or two to show the man in the arena wasn't ducking them; a surburban housewife; a businessman. In Philadelphia they hit a snag with the Jewish physician turned out to be a psychiatrist. "You should have heard Len on the phone when I told him I had one on the panel," one staffer related. "If I've ever heard a guy's voice turn white, that was it." (Garment had remembered his evening with Nixon in Elmer Bobst's Florida pool house: "anything except see a shrink.")

Ailes hit upon an idea for a substitute: "A good, mean, Wallaceite cab-driver. Wouldn't that be great? Some guy to sit there and say, 'Awright, Mac, what about these niggers?'" Nixon then could abhor the uncivility of the words, while endorsing a "moderate" version of the opinion. Ailes walked up and down a nearby taxi stand until he found a cabbie who fit the bill. [Nixonland, p. 331]

Ailes on 1988 strategy against Dukakis: "The only question is whether we depict Wille Horton with a knife in his hand or without it." Ailes was credited, along with Lee Atwater, with helping George H.W. Bush come from behind to beat Massachusetts Gov. Michael Dukakis in the 1988 presidential election. Part of that winning strategy included portraying Dukakis as "soft on crime" and connecting him with convicted felon Willie Horton. Horton committed assault, armed robbery, and rape in Maryland during a weekend furlough -- a program granting temporary release to prisoners that Dukakis supported but was created under the previous governor. While the Bush campaign did not produce the Horton ad that was widely criticized as "racist," Ailes did produce the "Revolving Door" ad that similarly attacked Dukakis for the furlough program. The campaign also created "The Risk," a negative ad that referenced "a furlough escapee" who "terrorized a Maryland couple." Ailes has been quoted as saying, "The only question is whether we depict Willie Horton with a knife in his hand or without it."

Ailes' 1989 attacks on Dinkins for Giuliani "prey[ed] upon the fears of the Jewish community." As media consultant for Rudy Giuliani's first mayoral campaign, Ailes placed an ad in a prominent Yiddish Newspaper, The Algemeiner Journal, that featured an image of Guiliani's opponent David Dinkins -- who would become New York City's first African-American mayor -- alongside Jesse Jackson. The ad also displayed a photo of Giuliani with President George H.W. Bush, and the headline stated, ''Let the people of New York choose their own destiny" [New York Times, 9/30/1989]. Howard Kurtz reported that "Ira Silverman, vice president of the American Jewish Committee, said the Giuliani ad seemed a 'legitimate campaign tactic,' but said that he found it 'troubling' because it 'preys upon the fears of the Jewish community' " [Washington Post, 9/29/1989]. National Public Radio has further reported: "Giuliani also tagged Dinkins as a 'Jesse Jackson Democrat.' That was an appeal to the city's large contingent of Jewish voters, who had despised Jackson ever since he used an anti-Semitic epithet to describe New York City. In this context, Giuliani's signature issue of crime took on racial overtones, says political consultant Norman Adler." One of Giuliani's ads featured a New Yorker stating, "I'm tired of living in New York and being scared." From a November 4, 1989, New York Times article:

A new Giuliani television advertisement, aimed largely at wavering Democrats, features six apparently ordinary New Yorkers, who describe Mr. Dinkins as ''a follower.'' They complain, among other things, about ''the crowd'' around Mr. Dinkins, including Robert (Sonny) Carson, a former campaign functionary who later proclaimed himself to be anti-white. Another person in the commercial says, ''I'm tired of living in New York and being scared.''

Ailes produced Limbaugh's television show. Ailes served as executive producer for Limbaugh's syndicated late-night television show, which ran from 1992 to 1996. Limbaugh made several controversial statements on air, many of them documented by Fairness and Accuracy in Reporting, including his assertion in response to Spike Lee's recommendation that African-American children be permitted to skip school to view Malcolm X: "Spike, if you're going to do that, let's complete the education experience. You should tell them that they should loot the theater and then blow it up on their way out" [Nexis transcript of Limbaugh's show on October 29, 1992]. And after Sen. Strom Thurmond -- who in 1948 ran for president on a States Rights Democratic Party (Dixiecrat) platform that advocated racial segregation -- told a gay service member during a 1993 Senate Armed Services Committee hearing on gays in the military, "Your lifestyle is not normal," and asked if he had every sought psychiatric help, Limbaugh stated of Thurmond: "He is not encumbered by trying to be politically correct. He's not encumbered by all of the -- the so-called new niceties and proprieties. He just says it, and if you want to know what America used to be -- and a lot of people wish it still were -- then you listen to Strom Thurmond." Limbaugh added, "He got a standing ovation. Now people -- people applauded that. People applaud -- because -- you know, Strom Thurmond can say it because he's 90 years old and people say, Ah, he's just an old coot. He's from the old days,' and so forth. But that's what most people think. They just don't have the guts to say it. That's why they applaud when somebody does say it that directly and that simply" [Nexis transcript of Limbaugh's show, May 11, 1993].

Fox News under Ailes routinely engages in race-baiting

Beck caps off week of race-baiting by calling Obama a "racist." During the week of July 23, Glenn Beck put forth a steady stream of race-baiting and race-based fearmongering on his television show and radio program. Beck's comments culminated in his remarks that President Obama "has a deep-seated hatred for white people or the white culture" and "is, I believe, a racist," a statement he subsequently claimed to stand by, in spite of growing criticism.

Hannity just can't "get over" his Rev. Wright obsession. Sean Hannity -- who claimed he "broke the story" about Obama's controversial former pastor, Rev. Jeremiah Wright, during the 2008 campaign -- mentioned Wright on at least 45 different episodes of his Fox News show between Obama's inauguration and July 31. Indeed, his repeated references to Wright -- most recently in discussions about Obama and race relations in America -- have prompted his own guests to comment, "You always want to bring up Reverend Wright," and "Sean, you need to get over it."

Rev. Wright redux: Media use Jones controversy to revive Wright smear. Conservative media figures used the controversy over former White House adviser Van Jones' past statements as an excuse to again link Obama to Wright. On Fox News, Glenn Beck, Bill O'Reilly, and Charles Krauthammer all invoked Wright while discussing Jones in order to question Obama's associations.

Guest-hosting O'Reilly, Ingraham claims Obama "channeled his best Jeremiah Wright accent" in NAACP speech. While guest-hosting Fox News' The O'Reilly Factor, radio host Laura Ingraham stated, "Last night President Obama spoke to the NAACP and channeled his best Jeremiah Wright accent." After airing a clip of Obama's remarks, Ingraham added, "Now, why does the first African-American feel the need to affect an accent that he clearly does not possess? Or is that the way people speak in Honolulu? It's a cheap attempt to pander to an audience that already supports him" [The O'Reilly Factor, 7/17/09].

After asking, "Do the Obamas have a race problem of their own?" Hannity continued to smear Barack and Michelle Obama. Hannity falsely asserted that Wright "honored [Louis] Farrakhan for lifetime achievement, saying, quote, 'He truly epitomized greatness.' " In fact, the managing editor of a magazine founded by the church wrote those words, not the minister. Hannity also stated that Michelle Obama "wrote in her [undergraduate] thesis that we see at Princeton, you know, the belief -- 'because of the belief that blacks must join in solidarity to combat a white oppressor.' " However, as the full context of the passage makes clear, she was discussing views that black students who attended Princeton in the 1970s may have held, not asserting her own views [Hannity's America, 3/5/08].

Ignoring Obama's statement on award, Hannity suggested that Obama "associated" himself with Farrakhan. Hannity suggested that Obama had "associated" himself with Nation of Islam leader Louis Farrakhan, who had received an award from a magazine founded by Obama's church. But Hannity, who described Farrakhan as "an anti-Semite racist," did not note that Obama issued a statement "condemn[ing]" Farrakhan's "anti-Semitic statements" and saying of the award: "[I]t is not a decision with which I agree" [Hannity & Colmes, 1/18/09].

Morris: McCain "doesn't have to" engage in Willie Horton-like campaign because O'Reilly is already doing so. After airing portions of a controversial sermon by Wright, Bill O'Reilly -- who described Wright's comments as "anti-American, to say the least" -- asked Dick Morris , "If you were [Sen. John] McCain, do you use this against Obama?" Morris replied, "He doesn't have to. You just did. And the talk radio people around the country" will. Morris continued: "[T]he other media, the other conservative media can make a big deal of it" [The O'Reilly Factor, 3/13/08].

Hannity smeared Gates as anti-white radical by distorting 1994 interview. Hannity repeatedly misrepresented Harvard professor Henry Louis Gates Jr.'s 1994 interview on C-SPAN's Booknotes to suggest that Gates had recently said he agreed with Malcolm X that the "white man was the devil" and to smear Gates as "extreme" and a "radical." In fact, in that interview, Gates was talking about events in 1959, specifically his witnessing his mother's positive reaction to a documentary they watched together about Malcolm X and the Nation of Islam [Hannity, 7/28/09].

Conservative media figures falsely suggest that Reich proposed excluding white males from stimulus package. Michelle Malkin and Hannity have falsely asserted or suggested that Robert Reich, speaking at a congressional forum, proposed that jobs created by the economic stimulus package should exclude white males. In fact, Reich has repeatedly stated that he favors a stimulus plan that "includ[es] women and minorities, and the long-term unemployed" in addition to skilled professionals and white male construction workers, not one that is solely limited to them.

O'Reilly tease: "[S]hould white Americans be concerned about Judge Sotomayor?" O'Reilly stated, "Next on the rundown: Should white Americans be concerned about Judge Sotomayor? Later, far-left Hispanic group says if you oppose the judge, you could be racist" [The O'Reilly Factor, 7/13/09].

Fox News is just asking about Sotomayor's "wise Latina" remarks: "New Racism?" During On The Record, guest-host Martha MacCallum stated, "The battle over Sonia Sotomayor's nomination intensifies tonight. Some conservatives continue to hammer Sotomayor and they are focused on this comment, which we've seen a lot this week." MacCallum then aired text of Sotomayor's comments under a headline stating, "New Racism?" [On the Record, 5/31/09].

Beck: Sotomayor "sure sounds like a racist here." Beck said Sotomayor's "wise Latina" comment "smacks of racism" and is "one of the most outrageous racist remarks I've heard." Beck later added: "I hate the charges and cries of racism. But when I hear this -- I mean, gee. She sure sounds like a racist here" [Glenn Beck, 5/26/09].

Reporting on Sotomayor, "identity politics," and "the immigration debate," Fox shows video of apparent immigrants in detention. Wendell Goler reported, "Many observers saw President Obama's election as a validation of a post-racial campaign, and they see identity politics in Sotomayor's nomination -- an appeal to Hispanic voters, many of whom turned against Republicans in the immigration debate. But [Linda] Chavez, whose group doesn't support Sotomayor, says the Hispanic community doesn't march in lock-step." As he spoke, Fox News showed footage of apparent immigrants in detention [Special Report, 5/29/09].

Tucker Carlson claimed Sotomayor made "racist statement." Fox News contributor Tucker Carlson claimed that Sotomayor had said that "because of your race or gender, you're a better or worse judge, that female Latina judges are likely to render wiser decisions than white male judges." Carlson continued, "That's a racist statement, by any calculation" [The Live Desk, 5/26/09].

Krauthammer declares Sotomayor "a believer in the racial spoils system." Krauthammer stated on Special Report that Sotomayor's dismissal of the Ricci case "tells us that she really is a believer in the racial spoils system" [Special Report, 5/26/09].

Rev. Peterson: Obama was elected "mostly by black racists and white guilty people." Rev. Jesse Lee Peterson said, "I think we all agree that Barack Obama was elected by, mostly by black racists and white guilty people" [Hannity, 2/3/09]. Peterson also asserted that Obama is "no different than" Rev. Wright and the NAACP, who he claimed "hate white Americans, and they especially hate the white man" [Glenn Beck, 6/24/09].

&mdash J.K.F & E.S.

Copyright © 2009 Media Matters for America. All rights reserved.

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Changing the World

One of the most cherished items in my possession is a postcard that was sent from Mississippi to the Upper West Side of Manhattan in June 1964.

“Dear Mom and Dad,” it says, “I have arrived safely in Meridian, Mississippi. This is a wonderful town and the weather is fine. I wish you were here. The people in this city are wonderful and our reception was very good. All my love, Andy.”

That was the last word sent to his family by Andrew Goodman, a 20-year-old college student who was murdered by the Ku Klux Klan, along with fellow civil rights workers Michael Schwerner and James Chaney, on his first full day in Mississippi — June 21, the same date as the postmark on the card. The goal of the three young men had been to help register blacks to vote.

The postcard was given to me by Andrew’s brother, David, who has become a good friend.

Andrew and that postcard came to mind over the weekend as I was thinking about the sense of helplessness so many ordinary Americans have been feeling as the nation is confronted with one enormous, seemingly intractable problem after another. The helplessness is beginning to border on paralysis. The wars in Iraq and Afghanistan, nearly a decade long, are going badly, and there is no endgame in sight.

Monday morning’s coffee was accompanied by stories about suicide bombings in the heart of Baghdad that killed at least 150 people and wounded more than 500 and helicopter crashes in Afghanistan that killed 14 Americans.

Here at home, the terrible toll from the worst economic downturn since the Great Depression continues, with no end to the joblessness in sight and no comprehensible plans for fashioning a healthy economy for the years ahead. The government’s finances resemble a Ponzi scheme. If you want to see the epidemic that is really clobbering American families, look past the H1N1 virus to the home foreclosure crisis.

The Times ran a Page A1 article on Monday that said layoffs, foreclosures and other problems associated with the recession had resulted in big increases in the number of runaway children, many of whom were living in dangerous conditions in the streets.

Americans have tended to watch with a remarkable (I think frightening) degree of passivity as crises of all sorts have gripped the country and sent millions of lives into tailspins. Where people once might have deluged their elected representatives with complaints, joined unions, resisted mass firings, confronted their employers with serious demands, marched for social justice and created brand new civic organizations to fight for the things they believed in, the tendency now is to assume that there is little or nothing ordinary individuals can do about the conditions that plague them.

This is so wrong. It is the kind of thinking that would have stopped the civil rights movement in its tracks, that would have kept women in the kitchen or the steno pool, that would have prevented labor unions from forcing open the doors that led to the creation of a vast middle class.

This passivity and sense of helplessness most likely stems from the refusal of so many Americans over the past few decades to acknowledge any sense of personal responsibility for the policies and choices that have led the country into such a dismal state of affairs, and to turn their backs on any real obligation to help others who were struggling.

Those chickens have come home to roost. Being an American has become a spectator sport. Most Americans watch the news the way you’d watch a ballgame, or a long-running television series, believing that they have no more control over important real-life events than a viewer would have over a coach’s strategy or a script for “Law & Order.”

With that kind of attitude, Andrew Goodman would never have left the comfort of his family home in Manhattan. Rosa Parks would have gotten up and given her seat to a white person, and the Montgomery bus boycott would never have happened. Betty Friedan would never have written “The Feminine Mystique.”

The nation’s political leaders and their corporate puppet masters have fouled this nation up to a fare-thee-well. We will not be pulled from the morass without a big effort from an active citizenry, and that means a citizenry fired with a sense of mission and the belief that their actions, in concert with others, can make a profound difference.

It can start with just a few small steps. Mrs. Parks helped transform a nation by refusing to budge from her seat. Maybe you want to speak up publicly about an important issue, or host a house party, or perhaps arrange a meeting of soon-to-be dismissed employees, or parents at a troubled school.

It’s a risk, sure. But the need is great, and that’s how you change the world.

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Monday, October 26, 2009

Think before surging

By Fareed Zakaria
Monday, October 26, 2009

Dick Cheney has accused Barack Obama of "dithering" over Afghanistan. If the president were to quickly invade a country on the basis of half-baked intelligence, would that demonstrate his courage and decisiveness to Cheney? In fact, it's not a bad idea for Obama to take his time, examine all options and watch how the post-election landscape in Afghanistan evolves.

The real question we should be asking about Afghanistan is: "Do we need a third surge?" The number of U.S. forces in Afghanistan in January 2008 was 26,607. Over the next six months, the total rose to 48,250. President Bush described this policy as "the quiet surge," and he made the standard arguments about the need for a counterinsurgency capacity -- the troops had to not only fight the Taliban but also protect the Afghan population, strengthen and train the Afghan army and police, and assist in development.

In January, 3,000 more troops, originally ordered by Bush, went to Afghanistan in the first days of the Obama presidency. In February, responding to a request from the commander in the field, Obama ordered an additional 17,000 troops into the country. Put another way, over the past 18 months, troop levels in Afghanistan have almost tripled. Sending an additional 40,000 troops would mean an over 300 percent increase in U.S. troops since 2008. (The total surge in Iraq was just over 20,000 troops.) It is not dithering to try to figure out why previous increases have not worked and why we think additional ones would.

In fact, focusing on the number of additional troops needed "misses the point entirely," says Gen. Stanley McChrystal, the commander Obama put in place this summer. "The key takeaway" from his now-famous assessment "is the urgent need for a significant change to our strategy and the way we think and operate." The quotes are from the third paragraph of his 66-page memo. These changes in strategy have just begun.

To understand how U.S. troops had been fighting in Afghanistan, consider the Battle of Wanat. On July 13, 2008, a large number of Taliban fighters surrounded an American base in that village, in the southeastern corner of Afghanistan. After a few hours of fierce fighting, nine American soldiers lay dead, the largest number killed in a single engagement in years. Former Post reporter and defense expert Tom Ricks points out that Wanat is in a mountainous region with few people, many of them hostile to outsiders. So, he asks, "Why are we putting our fist in a hornet's nest?"

McChrystal has since pulled U.S. forces out of Wanat. The Post's Greg Jaffe, reporting on the town a year later, concluded recently that "ceding territory to the Taliban is more effective than maintaining small, vulnerable bases in forbidding terrain. In the past several weeks, U.S. commanders, based about six miles outside the village, have detected growing friction between Wanat residents and the Taliban commanders responsible for last year's attack." So why not let the Taliban try to set up bases in these remote areas with prickly locals? NATO forces can then periodically disrupt the Taliban rather than the other way around. In these places, counter-terrorism -- now often associated with Vice President Biden -- could work well with the grain of Afghan society.

Advocates of a troop increase act as if counterinsurgency is applied physics. McChrystal's team, having done the mathematical calculations, has apparently arrived at the exact answer. There is no room for variation or middle courses, the argument goes. But the theory that "it's 40,000 troops or no counterinsurgency" is absurd. The best evidence is that senior military officers assured me at various points over the past year that with the latest increase in troops they finally had enough forces to do counterinsurgency.

The crucial judgments that have to be made involve what the troops will do and how much of Afghanistan to cover. One option is the idea Ricks recently suggested to me: "Why not do the Petraeus plan [counterinsurgency] for the major population centers and the Biden plan [counterterrorism] for the rest of the country?" Following that middle course might be the most practical solution; more forces could still be needed, as McChrystal suggests, or perhaps we can make do with the almost 100,000 coalition forces already there. Obama should carefully consider all the options before racing to demonstrate how tough he is.

Fareed Zakaria is editor of Newsweek International and the author of "The Post-American World." His e-mail address is comments@fareedzakaria.com.

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Wednesday, October 21, 2009

The Warning: PBS' Frontline

Alan Greenspan who loved Ayn Rand... who said "I'm for complete economic freedom...I am for the complete separation of the state and the economic system."... sooooo.. how did that work for everyone the past 2 years?

http://www.pbs.org/wgbh/pages/frontline/warning/

photo of greenspan, summers and rubin

Alan Greenspan, Lawrence Summers and Robert Rubin

"We didn't truly know the dangers of the market, because it was a dark market," says Brooksley Born, the head of an obscure federal regulatory agency -- the Commodity Futures Trading Commission [CFTC] -- who not only warned of the potential for economic meltdown in the late 1990s, but also tried to convince the country's key economic powerbrokers to take actions that could have helped avert the crisis. "They were totally opposed to it," Born says. "That puzzled me. What was it that was in this market that had to be hidden?"

In The Warning, veteran FRONTLINE producer Michael Kirk unearths the hidden history of the nation's worst financial crisis since the Great Depression. At the center of it all he finds Brooksley Born, who speaks for the first time on television about her failed campaign to regulate the secretive, multitrillion-dollar derivatives market whose crash helped trigger the financial collapse in the fall of 2008.

"I didn't know Brooksley Born," says former SEC Chairman Arthur Levitt, a member of President Clinton's powerful Working Group on Financial Markets. "I was told that she was irascible, difficult, stubborn, unreasonable." Levitt explains how the other principals of the Working Group -- former Fed Chairman Alan Greenspan and former Treasury Secretary Robert Rubin -- convinced him that Born's attempt to regulate the risky derivatives market could lead to financial turmoil, a conclusion he now believes was "clearly a mistake."

Born's battle behind closed doors was epic, Kirk finds. The members of the President's Working Group vehemently opposed regulation -- especially when proposed by a Washington outsider like Born.

"I walk into Brooksley's office one day; the blood has drained from her face," says Michael Greenberger, a former top official at the CFTC who worked closely with Born. "She's hanging up the telephone; she says to me: 'That was [former Assistant Treasury Secretary] Larry Summers. He says, "You're going to cause the worst financial crisis since the end of World War II."... [He says he has] 13 bankers in his office who informed him of this. Stop, right away. No more.'"

Greenspan, Rubin and Summers ultimately prevailed on Congress to stop Born and limit future regulation of derivatives. "Born faced a formidable struggle pushing for regulation at a time when the stock market was booming," Kirk says. "Alan Greenspan was the maestro, and both parties in Washington were united in a belief that the markets would take care of themselves."

Now, with many of the same men who shut down Born in key positions in the Obama administration, The Warning reveals the complicated politics that led to this crisis and what it may say about current attempts to prevent the next one.

"It'll happen again if we don't take the appropriate steps," Born warns. "There will be significant financial downturns and disasters attributed to this regulatory gap over and over until we learn from experience."

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Tuesday, October 20, 2009

LNG Threat to the Narragansett Bay; Letter from the Executive Director of Save the Bay




Note from Greetings: I hope the people in the Narragansett Bay and Rhode Island read the following letter from Save the Bay's ED, and all wake up and call their congressmen and senators.

LNG will disrupt business and travel on the Narragansett Bay. It is dangerous, with a potential blast area that covers many thousands in population and many square miles in property. With its path up the bay past the U.S. Naval Warfare College, it leaves this area a target for potential terrorist attacks.

And, in the end, if none of these matter to you... it will most undoubtedly decrease your property values and increase your insurance policy costs as homeowners. Who will want to buy a house in a potentially dangerous area? One where travel is closed down any time a tanker goes up the bay... without notice. And one where it can be seen to be a potential explosion waiting to happen at any time.

From Jonathan Stone, Executive Director, Save The Bay

Dear Friend of Narragansett Bay,

I’m writing today to express deep disappointment over the opinion piece which ran in today’s Providence Journal by Weaver’s Cove LNG president and CEO Ted Gehrig. He suggests that the LNG project proposed for Mount Hope Bay is necessary and beneficial, and that the environmental costs, use conflicts and security issues are insignificant.

This self-serving and dismissive approach underestimates our common resolve and ignores the history of Bay stewardship and protection that defines the people who live here.

Save The Bay strenuously opposes this project because, unlike any existing user of the Bay, Weaver’s Cove LNG will become a dominant presence from the East Passage to Fall River that is completely out of balance with the mixed uses we all enjoy today. Year-round LNG tanker traffic will disrupt our fragile marine and tourism industries, and the project will destroy critical habitat we have worked for more than two decades and committed hundreds of millions of dollars to save.

For the record, while focusing on the higher cost of Canadian natural gas, Mr. Gehrig did not mention his competitors’ two new LNG terminals off the coasts of Gloucester and Boston that are or will be operational by the end of this year that serve the region.

So who benefits most from this project, exactly? That would be Weaver’s Cove LNG.

In one respect Mr. Gehrig is correct. Two key federal agencies, each according to their narrow permitting mandate, are allowing this project to go forward. This would be an irreversible tragedy.

Save The Bay is committed, for as long as it takes, to defeating this plan. It’s wrong for the Bay, wrong for the economy and wrong for our communities. I urge you to take action by writing letters to the editor, contacting your local and state elected officials, writing your Congressional delegates and encouraging your friends and neighbors to fight this project.

Please join the cause today.

P.S. The LNG Threat is the cover story of the fall issue of Save The Bay's Tides. You may read that story, an important article on the wastewater/stormwater crisis on Aquidneck Island and other items of interest around the Bay online.

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How to Waste Money and Ruin the Census

Editorial, NY Times, October 20, 2009

With the start of the 2010 census just a few months away, Senator David Vitter, a Republican of Louisiana, wants to cut off financing for the count unless the survey includes a question asking if the respondent is a United States citizen. Aides say he plans to submit an amendment to the census appropriation bill soon.

As required by law, the Census Bureau gave Congress the exact wording of the survey’s 10 questions in early April 2008 — more than 18 months ago. Changing it now to meet Mr. Vitter’s demand would delay the count, could skew the results and would certainly make it even harder to persuade minorities to participate.

It would also be hugely expensive. The Commerce Department says that redoing the survey would cost hundreds of millions of dollars: to rewrite and reprint hundreds of millions of census forms, to revise instructional and promotional material and to reprogram software and scanners.

During debates in the Senate, Mr. Vitter said that his aim is to exclude noncitizens from population totals that are used to determine the number of Congressional representatives from each state. He is ignoring the fact that it is a settled matter of law that the Constitution requires the census to count everyone in the country, without regard to citizenship, and that those totals are used to determine the number of representatives.

(The Census Bureau already tracks the number of citizens and noncitizens through a separate survey.)

Adding a new question about citizenship would further ratchet up suspicions that the census is being used to target undocumented immigrants. That would discourage participation not only among people who are here illegally but also their families and friends who may be citizens and legal residents. That leads to an inaccurate count.

And since census numbers are also used to allocate federal aid, undercounting minorities shortchanges the cities and states where they live.

Advocates for the census say that Senator Orrin Hatch, a Republican of Utah, has also raised the idea of another bad, last-minute change. Under current practice, the only people living abroad included in the census are military personnel and federal civilian employees, and the families of both, stationed overseas. Mr. Hatch, these officials say, wants to include certain other Americans living abroad temporarily, a definition that would be tailored to include — you guessed it — Mormon missionaries.

There seems little doubt that the goal would be to increase population numbers for Utah — to try to garner another Congressional seat. As of Monday, Senator Hatch’s office would not say whether he plans to pursue the idea. He shouldn’t.

Both of these changes would be discriminatory and ridiculously expensive. If Mr. Vitter and Mr. Hatch wanted to argue their cases, they should have done it 18 months ago — or wait until after this count.

Changing the survey now would be a disaster for the census and for American taxpayers. The Senate should defeat any and all attempts to alter or delay the 2010 count.

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