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Tuesday, November 29, 2011

#OWS Cheers As Defiant Judge Stops Obama From Selling Immunity To Wall Street





November 28, 2011 at 23:22:46

#OWS Cheers As Defiant Judge Stops Obama From Selling Immunity To Wall Street

By (about the author)




Judge Rakoff Pummels Obama and Wall Street by GW

In an audacious move against Citigroup, the SEC, and the practice of "selling immunity", a Federal Judge in a NY District Court abruptly put the brakes on a settlement agreement proposed between the Obama Administration and another giant Wall Street firm accused of betting against their own investors.

Judge Jed Rakoff sent a message today to Wall Street and the Securities Exchange Commission that may send shockwaves through the financial world, refusing to approve a $285 million dollar payout to drop an investigation against Citigroup for defrauding investors without admitting any guilt.

Business Insider's haunting pullquote is a somber reminder of a core message of the Occupy movement. : "Judge Rakoff: Truth is Confined to Secretive, Fearful Whispers"

You might recall last year Goldman Sachs paid a $535 million dollar settlement "without admitting guilt" in a case brought by investors claiming fraud in a somewhat similar collateralized debt obligation scam. Goldman squirmed by, conceding they had provided 'incomplete information' but in this case, Citigroup had profited more blatantly at the expense of their clients.

With prosecutions for bank fraud today at a twenty year low, the Occupy movement has widely decried the questionable glad-handing between Wall Street titans and federal officials who are supposed to keep them honest. On his way out in 2008, President Bush issued a DOJ directive that encouraged the practice of "deferred prosecutions" which gave DOJ and SEC desk jockeys incredible latitude to craft immunity deals in secret in exchange for millions in fines and promises to be better.

But you might be disgusted to learn that the fines paid out to the government were at times equal to the payments made to legal firms, enriched by banks as grants of immunity prevented victimized investors from seeking further damages.

Rakoff's stand is consequential because any finding of guilt at last empowers the little-guy investor to bring civil suits.

As we contrast coverage of this ruling in the NY Times' Behind Rakoff's Rejection of Citigroup Settlement with Rupert Murdoch's Wall Street Journal piece Citi Ruling Could Chill SEC, Street Legal Pacts, taxpaying voters might wonder what in God's name 'street legal' pacts means.

Indeed, this might be heralded as a rousing victory by #OWS protestors who in recent weeks have seen a number of anti-Wall Street actions proposed by leaders in business, politics and clergy.

#OccupyWallStreet was just weeks old when Bill Gates, America's richest citizen taxpayer stood up in front of the G20 in France calling for a 'Robin Hood Tax' that would impose as little as a one-tenth of a penny fee on stock or bond transactions. Gates explained massive volumes of speculative, volatile computerized trades were preventing more productive sectors of business from attracting sorely needed capital.

The call for this same transaction fee was echoed by the Pope as part of his updated canons against the "obscene" unethical accumulation of wealth, intentionally hoarded "at the expense of others".

In Congress, House and Senate bills recently proposed call for Constitutional amendments to reverse the Citizens United ruling that granted horribly lopsided new powers for the wealthy to crowd out political messaging during elections via unlimited, anonymous media spending.

Not surprisingly, the Senate bill, co-sponsored by Chuck Schumer, Jeff Merkeley, Tom Udall, Sheldon Whitehouse, and Dick Durbin has been "whitewashed" for weeks - given virtually no coverage by the major media networks who expect to reap exorbitant profits on upcoming US elections for selling prime-time ad spots.

The failure of the so-called Super-Committee is also supposed to have steeled populist candidates to run against Republicans whose crucial 'sticking point' was the claim that raising taxes on the rich would stifle job growth. They called revenue increases as "a job-killing tax hike on small business." But Brookings debunks this: "less than 2 percent of tax returns reporting small-business income are filed by taxpayers in the top two income brackets".

Putting up a first-of-it's-kind roadblock in the decades long slide towards rigged backroom settlements, Rakoff noted the proposed deal would have benefitted Citi and the SEC - but not the public interest.


Rakoff was critical not only of the "insufficient" amount offered as a pay-off, but the lack of transparency and especially the idea of shirking accountability for serious misconduct.

This closely parallels a line in the OWS proclamation of Sept. 27 which notes Wall Street firms "determine economic policy, despite the catastrophic failures their policies have produced and continue to produce."

The banks, who have till now witnessed a plethora of judges rubber-stamping anything approved by the SEC, will now have to work up a new deal with the SEC to resubmit to the court, negotiate a limited admission of guilt directly with Rakoff, or try to prove their innocence to a jury at trial.

It is not known whether Rakoff would accept any settlement that does not make Citi acknowledge guilt and give redress to individual investors.

The public recognition and debate of Rakoff's rejection here will be keenly observed by other judges, banks, the Obama Administration and particularly the understaffed SEC, exposed here for serially horsetrading harmful shortcuts.

Lastly, for those still claiming the #OWS movement lacks focus and cohesion, concentrating on "street level" issues like pitching tents or public urination instead of important socioeconomic issues, here is the full text of that declaration approved by the NYC General Assembly, which aired in full on cable TV by October 5:

They have taken our houses through an illegal foreclosure process, despite not having the original mortgage.

They have taken bailouts from taxpayers with impunity, and continue to give Executives exorbitant bonuses.

They have perpetuated inequality and discrimination in the workplace based on age, the color of one's skin, sex, gender identity and sexual orientation.

They have poisoned the food supply through negligence, and undermined the farming system through monopolization.

They have profited off of the torture, confinement, and cruel treatment of countless animals, and actively hide these practices.

They have continuously sought to strip employees of the right to negotiate for better pay and safer working conditions.

They have held students hostage with tens of thousands of dollars of debt on education, which is itself a human right.

They have consistently outsourced labor and used that outsourcing as leverage to cut workers' healthcare and pay.

They have influenced the courts to achieve the same rights as people, with none of the culpability or responsibility.

They have spent millions of dollars on legal teams that look for ways to get them out of contracts in regards to health insurance.


They have sold our privacy as a commodity.

They have used the military and police force to prevent freedom of the press.

They have deliberately declined to recall faulty products endangering lives in pursuit of profit.

They determine economic policy, despite the catastrophic failures their policies have produced and continue to produce.

They have donated large sums of money to politicians, who are responsible for regulating them.

They continue to block alternate forms of energy to keep us dependent on oil.

They continue to block generic forms of medicine that could save people's lives or provide relief in order to protect investments that have already turned a substantial profit.

They have purposely covered up oil spills, accidents, faulty bookkeeping, and inactive ingredients in pursuit of profit.

They purposefully keep people misinformed and fearful through their control of the media.

They have accepted private contracts to murder prisoners even when presented with serious doubts about their guilt.

They have perpetuated colonialism at home and abroad.

They have participated in the torture and murder of innocent civilians overseas.

They continue to create weapons of mass destruction in order to receive government contracts.*

*These grievances are not all-inclusive.


(OpEdNews Contributing Editor since October 2006) Inner city schoolteacher from New York, mostly covering media manipulation. I put election/finance reform ahead of all issues but also advocate for fiscal conservatism, ethics in journalism and (more...)

The views expressed in this article are the sole responsibility of the author
and do not necessarily reflect those of this website or its editors.




















Thursday, November 24, 2011

Why is Obama failing to protect the First Amendment? As Occupy attacks continue




November 24, 2011 at 08:21:46

Why is Obama failing to protect the First Amendment? As Occupy attacks continue



by Charlene Smith


President Barack Obama has remained silent about violent police actions to remove Occupy Wall Street protestors across the nation whether New York, Oakland, Chicago, Los Angeles or elsewhere. As president, Obama should be the primary defender of the Constitution, yet he remains silent as violent police actions against peaceful protestors take place.

A friend wrote from London after the 1am raid on Zuccotti Park in New York to evict Occupy Wall Street protestors: "Seems like the U.S. police are resorting to measures more reminiscent of a dictatorship. I hope Obama is happy!" How similar that early morning raid was to those in South Africa during the dark days of anti-apartheid repression when police would conduct raids during the early morning hours knowing that their victims would be groggy and fearful in the dark.

New York's Mayor Bloomberg, who claims he is a defender of the constitution's First Amendment, used the health excuse we heard from the Oakland mayor for her attacks on Occupy Wall Street protestors. If Mayor Bloomberg has suddenly developed an interest in the health of New York residents he may want to do something about the New York subway, which is a filthy, poorly air-conditioned sewer that millions of New Yorkers are forced to use daily, and sometimes skirt rats the size of cats.

Bloomberg said: "No right is absolute and with every right comes responsibilities. The First Amendment gives every New Yorker the right to speak out -- but it does not give anyone the right to sleep in a park or otherwise take it over to the exclusion of others -- nor does it permit anyone in our society to live outside the law. There is no ambiguity in the law here -- the First Amendment protects speech -- it does not protect the use of tents and sleeping bags to take over a public space. Protestors have had two months to occupy the park with tents and sleeping bags. Now they will have to occupy the space with the power of their arguments."

Bloomberg is wrong in his views morally and legally, the U.S. Constitution, Amendment One says:

" Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances."

Originally, Wikipedia informs us, the First Amendment applied only to laws enacted by Congress . However, starting with Gitlow v. New York , 268 U.S. 652 (1925), the Supreme Court held that the Due Process Clause of the Fourteenth Amendment applies the First Amendment to each state , including local government .

In United States v. Cruikshank , 92 U.S. 542 (1875), the Supreme Court held that "the right of the people peaceably to assemble for the purpose of petitioning Congress for a redress of grievances, or for anything else connected with the powers or duties of the National Government, is an attribute of national citizenship, and, as such, under protection of, and guaranteed by, the United States." For most of the 20th century tests to the First Amendment were about those espousing socialism or communism, most were defeated. There were challenges to burning draft papers during the Vietnam war, but the Supreme Court enshrined the right of protestors to do this, even the right to wear a jacket saying "Fuck the Draft" in the corridors of the Los Angeles County courthouse In Cohen v. California , 403 U.S. 15 (1971), this act was seen as legitimate comment and not punishable. Even burning the flag has consistently defied tests to view it as desecration.

The right to petition was an echo of the English Bill of Rights 1689 which, following the Seven Bishops case, stated it is the right of the subjects to petition the king, and all commitments and prosecutions for such petitioning are illegal.

It's worth noting that attacks on the First Amendment by Congress or local government have always preceded necessary changes in law -- the people have led, and local or federal government have always resisted. For example, in 1835 the House of Representatives adopted the Gag Rule , barring abolitionist petitions calling for an end to slavery. In 1865, 30 years later, slavery was abolished.

These freedoms are not ours alone; they are beloved in every nation that calls itself democratic.

"We don't want to make this about police and protesters," said Stephen Squibb, an organizer with Occupy Boston, "It is about jobs and other things. That has been our message for two months and we are going to keep saying it." The fat cats in New York, Washington and elsewhere have jobs, they have stretch limos that drive past the unemployed, they don't care today, but someday they will be forced to stop, get out and speak to those with banners on the sides of roads.

.

Charlene Smith is an award winning journalist and writer. Her authorized biography on Nelson Mandela, "Mandela" is a best seller and "Mandela in America" will be released in 2012. She is presently writing a book, "America the Overmedicated," on (more...)

The views expressed in this article are the sole responsibility of the author
and do not necessarily reflect those of this website or its editors.

Monday, November 14, 2011

Combative Obama Renounces Progressives, Socialism and the Occupy Movement

Dissident Voice: a radical newsletter in the struggle for peace and social justice

Combative Obama Renounces Socialism

Washington (CNN) — Seeking to recover his once-impressive standing in the polls, President Obama on Monday continued to position himself as the most responsible candidate in the 2012 presidential race.

Speaking to about 500 Mussolini Democrats and more than a dozen reporters at the tactically sophisticated Invertebrates For Obama think tank in Washington, Obama lashed out at “so-called progressives” clamoring for an expanded New Deal.

“Far too many Americans are looking for a hand-out, not a hand up,” he said, apparently targeting the growing Occupy Wall Street movement and its sympathizers. “The reason we must reject socialist economics is that it conflicts with our core political philosophy about the purpose of government.”

“We cannot preserve liberty for ourselves and our posterity if government fails to fulfill its obligation to sustain the free market system with trillions of dollars of bailout money for selfless Wall Street firms deemed ‘too big to fail.’” Therefore we must seek common ground with the GOP and renounce relics of the Communist era like Social Security and Medicare.” To sustained applause the president added, “I hereby do so.”

Obama called for a reform of his own health care law to include a “private option” that would allow HMOs to deport Americans without health insurance to Cuba, in hopes of bankrupting the free health care system available on the Communist-ruled island. “The cost of treating fifty million uninsured Americans should bring down the Castro brothers once and for all,” proclaimed Obama gleefully.

The president said he would grant federal aid to states expelling the medically needy to Cuba, adding that he would veto any attempt to have them treated in the U.S. “We’ve got to get beyond the idea that democratic government means doling out aid to irresponsible citizens who refuse to pull their own weight.” The president emphatically rejected appeals for government assistance from ordinary Americans. “As we all know from civics lessons the only legitimate function government has is performing those tasks that Americans cannot perform themselves – like carpet-bombing foreign nations and giving away the store to transnational corporations and international banks.”

The president went on to state that his reformed health care reform bill would prove itself a more efficient system than the universal care available through Medicare. “Obviously the market is more efficient than government,” said Obama. “I mean, how much equity is returned to stockholders under Medicare? Absolutely none! Whereas under HMOs investors are making a killing, if you’ll pardon the expression,” the president said. Asked about the much higher administrative costs under privatized care, Obama explained that those “don’t count,” because they are passed on to the public.

On issues like declaring the war in Iraq “over,” Obama portrayed himself as the candidate who goes the extra mile for peace. “George Bush declared ‘mission accomplished’ in Iraq only once, while I am now working on my second final withdrawal from that liberated country,” the president said with obvious pride.

Obama also called for “staking out the middle ground” by privatizing Social Security, outsourcing the public schools to China, and handing over municipal water systems to corporate polluters in need of infusions of public capital in order to pay off fines imposed for systematically polluting the environment.

Michael K. Smith is the author of The Madness of King George from Common Courage Press. He co-blogs with Frank Scott at www.legalienate.blogspot.com. Read other articles by Michael.

Obama Ignores Global Warming

Dissident Voice: a radical newsletter in the struggle for peace and social justice

Obama Ignores Global Warming

The Obama Administration has largely remained passive about the critical imperative to reduce greenhouse gases to limit catastrophic global warming.

Washington continues to insist upon exercising world leadership in all key global endeavors, including the environment, but has failed dramatically in terms of climate change.

In fact, the White House is greatly expanding U.S. access to fossil fuel energy sources even as scientific and environmental organizations are intensifying their warnings about the need to immediately reduce greenhouse gas carbon emissions that are warming the planet.

Although the U.S. recently has ranked second to China in fossil fuel burning, it is by far the greatest polluter of the atmosphere in the last century and a half. Given the differences in population, America still uses three times more per capita than China.

White House policy is fixated on reducing dependence upon Middle Eastern oil and gas by greatly increasing the extraction of fossil fuels closer to home — mainly a vast increase in natural gas production from hydraulic fracturing (fracking) throughout the United States, expanded drilling for offshore oil, and importing dirty tar sands oil from Canada.

While increasing the development and use of global warming fuels, President Obama is advancing no significant program to replace high carbon emitting fossil fuels with renewable non-carbon solar and wind power.

The U.S. government is subsidizing some major “green” corporations, providing them with nearly no-risk guarantees for developing solar and wind, but this remains a relatively minor enterprise. Progress made so far is being stalled by the unexpected abundance (and thus cheaper price) of domestic natural gas secreted in shale, more secure oil reserves than anticipated, and the probability of reduced federal and state subsidies.

In a major statement from London November 9, the International Energy Agency (IEA) called for a “bold change of policy direction toward the use of low-carbon fuels within the next five years. If the major industrial states do not do so quickly, the world will lock itself into an insecure, inefficient and high-carbon energy system,” which is precisely what the Obama Administration is doing.

This recommendation seeks to prevent the rise in global temperatures in this century from exceeding 2 degrees Celsius, which is based upon keeping carbon emissions in the atmosphere below 450 parts per million (ppm). Anything above the target standards will cause irreparable damage to life on Earth.

According to many scientists and environmental groups these standards are inadequate, and that 350 ppm is the maximum amount that can be accommodated without causing a disaster. Atmospheric carbon, which occurs naturally, has reached dangerous levels due to industrialization. It has increased from 280 ppm at the beginning of the industrial era to approximately 392 ppm today, which is why it is said warming is well underway and its effects are being felt throughout the world.

Introducing the new report, IEA executive director Maria van der Hoeven declared, “Growth, prosperity and rising population will inevitably push up energy needs over the coming decades…. Governments need to introduce stronger measures to drive investment in efficient and low-carbon technologies.”

The Environment News Service reports that the “agency’s warning comes at a critical time in international climate change negotiations, as governments prepare for the annual UN climate summit in Durban, South Africa, Nov. 28-Dec. 9. ‘If we do not have an international agreement whose effect is put in place by 2017, then the door will be closed forever,’ IEA chief economist Fatih Birol warned.’” (The main goal of the 17th climate summit is to agree on a resolution to replace the Kyoto Protocols, which will expire next year.)

The IEA describes itself as “an autonomous organization which works to ensure reliable, affordable and clean energy for its 28 member countries and beyond.” Its members represent the world’s leading capitalist countries. Greenpeace and some other environmental groups are critical of the group’s approval of tar sands oil, lower carbon fuels and nuclear energy. The BRICS countries (Brazil, Russia, India, China and South Africa) are not IEA members.

Reporting October 26 on America’s hunt for more carbon-emitting fuels, the New York Times quoted Daniel Lashof, director of the climate program at the Natural Resources Defense Council, as declaring:

Giving new life to fossil fuels is a devil’s bargain, probably making solutions to climate change, and the development of renewable energy, even more difficult. Not only are you extending the fossil fuels era, but you are moving into fossil fuels that are dirtier and release more carbon pollution in the process of extracting and using them.

The Obama Administration has been leaning toward approving a $7 billion investment in a pipeline to transport Canadian tar sands oil to Texas but encountered a fusillade of activist opposition from the environmental movement in recent months. Michael Brune, executive director of the Sierra Club, has declared that “Tar sands oil is the dirtiest oil on Earth.” Dr. James Hansen, NASA’s top climate scientist, says that fully developing the tar sands in Canada would mean “essentially game over” for the climate.

Environmental movement criticisms have been compounded by objections from residents of Nebraska with concerns that pipeline spills might pollute the irreplaceable Ogallala aquifer, which occupies 10,000 square miles north to south from South Dakota to Texas and is a major source of water for the High Plains.

In August and September 1,200 anti-tar sands activists were arrested for offering civil disobedience in front of the White House. On November 6, 12,000 people surrounded the presidential mansion demanding an end to construction of the 1,700-mile Keystone XL pipeline from Canada to Texas.

Four days later, President Obama announced that his final decision would now be postponed until months after next year’s elections, implying that the pipeline route might have to circumnavigate the immense aquifer.

Some environmental groups have interpreted Obama’s delay as a victory, suggesting that the project is being abandoned, but this view is too optimistic. The White House seeks abundant and stable supplies of oil for the next several decades from sources other than (or in addition to) the volatile Middle East, and tar sands oil from nearby friendly Canada is a most attractive alternative. Canadian oil has been entering the U.S. for many years in existing pipelines, and this is continuing. In all probability, some version of Keystone will greatly increase the supply.

Environmentally-concerned Americans have also launched campaigns against fracking, mainly because of the danger to water supplies inherent in an extraction method that requires the high pressure injection of deadly chemicals deep underground.

The Obama Administration is so intent upon vastly increasing natural gas production that it has been brushing objections aside, as have state governors — such as New York State’s Andrew Cuomo — who argue that what really matters are the additional jobs and tax revenue from massive fracking operations.

Advocates of natural gas argue that burning gas for electricity emits 30% less carbon dioxide than oil, and about 45% less than coal. But recent studies have shown that the process of fracking releases sufficient stores of methane into the atmosphere to compensate for any reduction in carbon from natural gas. Methane creates a greenhouse heat trap about 20 times greater than carbon dioxide. The gas industry maintains that the reduction in emissions from natural gas “outweighs” the detrimental effects of methane.

The New York Times article points out that:

Temporary or permanent fracking bans have been put in place in New York, New Jersey and Maryland. Other states are toughening drilling regulations, and the industry is responding with tighter wastewater management, while the Environmental Protection Agency is expected to complete a study on fracking next year. Nevertheless, gas shale drilling appears likely to continue at a fast pace in the most important gas-producing states.

The rest of the world is watching. Moratoriums have been put in place in parts of France, Germany, South Africa and the Canadian province of Quebec; Britain, Ukraine and other countries are moving cautiously forward. Still, the Energy Department projects that gas from shale could account for 14% of global supplies by 2030, with as many as 32 countries having production potential.

If world countries, led by the U.S., continue to disregard environmental objections to fracking, enhanced natural gas production combined with a major increase in oil production by the U.S., it will further subvert incentives toward ending use of fossil fuels. So far, shale gas extraction in the U.S. has increased 500% in the last five years, and that’s just the beginning.

Quoting Ivan Sandrea, president of the Energy Intelligence Group, the Times concluded its article with these words: “The fossil fuel age will be extended for decades. Unconventional oil and gas are at the beginning of a technological cycle that can last 60 years. They are really in their infancy.”

It has been five months since Democratic former Vice President Al Gore stuck his neck out in an article he wrote for Rolling Stone by publicly criticizing Democrat Obama for inaction on reducing America’s addiction to fossil fuels. So far, Obama has done nothing but live up to Gore’s critique:

“President Obama,” he declared, “has thus far failed to use the bully pulpit to make the case for bold action on climate change…. The president made concessions to oil and coal companies without asking for anything in return. He has also called for a massive expansion of oil drilling in the United States, apparently in an effort to defuse criticism from those who argue speciously that ‘drill, baby, drill’ [a conservative slogan] is the answer to our growing dependence on foreign oil.”

Washington’s refusal to take more than token steps to alleviate global warming would be relatively inconsequential were the U.S. a much smaller player on the world stage. But American governments have insisted for decades — based on economic strength and unparalleled military power — on being recognized as the world’s dominant and irreplaceable hegemonic state. Uncle Sam’s leadership is enormously influential, especially in the industrialized world, and America’s sluggish response toward global warming is a global disincentive toward taking speedy, responsible and united action.

U.S. financial institutions, corporations, and the wealthiest proportion of its population are “deeply invested in an energy sector dominated by fossil fuels, and actively hostile to alternatives,” economist Paul Krugman noted recently. These powerful elements are not prepared to accept the economic and political rearrangements required to transform America into an environmentally sound society of minimal carbon usage and many other ecological safeguards.

Such a transformation involves greater government investments, potentially smaller profits for many years, strategic alterations in the country’s disproportionate consumption of resources and products, and substantial changes beyond today’s gridlocked and essentially conservative political process.

In effect — given its disinclination to interfere in the workings of America’s neoliberal capitalist economy, even to protect all life on Earth — Washington’s continuing unipolar leadership is guiding the world toward irreversible climate change.

The U.S. may change its ways, but economic and political realities suggest an alteration of this magnitude is hardly on the foreseeable agenda. Climate change, however, is taking place now. At issue are two necessities: (1) strengthening of the environmental and social change movements in the U.S., and (2) a dramatic initiative by other powerful countries and regional blocs to take significant concerted global action to save the Earth regardless of Washington’s dithering.

Jack A. Smith is editor of the Activist Newsletter and a former editor of the Guardian (US) radical newsweekly. He may be reached at: jacdon@earthlink.net. Read other articles by Jack.

Sunday, November 13, 2011

Obama to Betray the Middle Class, Seniors and the Poor




November 12, 2011 at 19:05:50

Super Collusion: Will Obama and Capitol Dems Betray the Middle Class, Seniors and the Poor?

By (about the author)


Two new reports suggest that the President and Congressional Democrats are about to betray everything Democrats once stood for. Under pressure from Barack Obama, Democrats on the "Super Committee" have sketched out an appalling "compromise" proposal that would almost certainly doom both their 2012 electoral chances and his own.

They'd have it coming. Their draft plan literally takes crutches away from poor people to protect tax breaks for the wealthy.

Unfortunately, middle class and impoverished Americans would suffer much more than they would. Career politicians can always look forward to comfortable sinecures from the wealthy interests who will benefit from their proposal. But the rest of us would once again be punished for the excesses of the rich, then left to the untender mercies of our new Republican leaders.

That, and not the fate of a President or a party, would be the real tragedy.

Pain Threshold

The President's actively pressuring Super Committee members from both parties to come up with a budget-slashing deal, according to a report in today's Washington Post. In addition, Obama is also urging them not to cancel the automatic $1.2 trillion in cuts that would be triggered under current law if they fail to make an agreement.

Another story, from the Huffington Post's Sam Stein, gave details on the Democrats' latest proposed "compromise." These two stories paint the picture of a President and a party who are willing to keep taxes low for the wealthy, and who would pay for it by proposing cuts that punish seniors, doctors and the poor.

Why? So they can say they "successfully governed" with extremist Republicans? To please international markets that, in reality, couldn't care less? So the President can campaign as "above left and right," as if differences in principle are a bad thing? Because they've been spiritually suffocated by the cultural norms of Washington's insular culture?

There are more questions than answers. Here's one more: With Democrats like this, who needs Republicans?

Low rates for the wealthy

Stein reports that the Democratic proposal would keep tax rates for the wealthiest Americans at the historically low Bush-cut rate of 35 percent to please the GOP. (That rate was 91 percent under Eisenhower, 50 percent at the start of Reagan's term, and 39 percent under Clinton.) The very wealthiest among us would continue to savor these unusually low tax rates to sweeten the fruits of ever-increasing wealth inequity.

The Dems would also accept the principle of "corporate tax reform to enhance competitiveness," which sounds a lot like a bid for lower tax rates for corporations. That would be offset by reductions in overly indulgent tax breaks, such as those that apply to corporate jets. But corporations would still retain expensive accountants and even more expensive lobbyists. I'll bet you a big chunk of your future Medicare benefits how that would turn out.

Oh, wait. These Democrats are already placing that bet. We'll get to that shortly.

Those are the breaks

The party's internal discussion document includes "triggers" that would take effect if Congress can't cut these deductions itself. One of those triggers is described as "a Feldstein-type limitation on itemized deductions for higher income taxpayers." They're referring to Martin S. Feldstein, the former Reagan advisor who wants to eliminate tax breaks for solar panels or electric cars. More significantly, Feldstein also wants to cap tax deductions at 2 percent of income -- for everyone.

Feldstein's op-ed in the New York Times explained that "Taxpayers with incomes of $25,000 to $50,000 would pay about $1,000 more in taxes; those with incomes of more than $500,000 might pay $40,000 more." In other words, the poor must pay part of the bill for the excesses of the rich.

To be sure, the Democratic proposal says it would target "higher income taxpayers," which is not Feldstein's plan. But who'll have better lobbyists when those tax exemptions are being defined -- the rich and the corporations, or the middle class? And we learned what conservatives mean by "higher income" when the Concord Coalition suggested that anyone earning over $20,000 per year should be targeted for Social Security means testing when they retire.

That's the kind of person the Dems would be dealing with in their detailed tax negotiations.

Here's one more thing these Democrats should understand and explain: Tax breaks for items like solar power or electric cars are a good thing. They serve the public interest, which is what public policy is supposed to do. They reduce our dependence on foreign oil, protect our environment, and improve public health. That saves us money, too.

The unkindest cuts of all

The Democratic proposal also includes cuts of $250 billion to providers under Medicare. Unless they're very well designed (they won't be), that will mean problems with access to doctors and adequacy of care.

There's also a cut of $100 billion in benefits for seniors. That would affect every single person in the United States who reaches retirement age, along with those who become disabled.

Depending on how those "Feldstein tax increases" were structured, many retired Americans could see their Medicare benefits reduced -- and lose a tax deduction for paying those costs out of their own pockets.

There would also be cuts to Medicaid's prevention and public health trust fund, one of the most "Democratic" aspects of last year's health care bill. So the proposal would subvert one of the provisions in the law they just passed. This cut doesn't just target the vulnerable. It's also economically foolish, since it cuts programs that can prevent costlier illnesses later on. And the Democrats would also cut $5 billion for Medicaid's "DME," which presumably means "durable medical equipment" like crutches and wheelchairs.

It looks like Democrats will literally propose taking wheelchairs away from poor people so we can keep tax rates low for the wealthy.

Tone Deaf

The White House issued a stunningly inappropriate statement about the Committee, saying the automatic "trigger" cuts the President's defending were "agreed to by both parties to ensure there was a meaningful enforcement mechanism to force a result from the Committee." The statement went on to say:

"Congress must not shirk its responsibilities. The American people deserve to have their leaders come together and make the tough choices necessary to live within our means, just as American families do every day in these tough economic times."

That's not merely an economically silly statement, although it's certainly that. The analogy between the U.S. budget and that of a family is fatuous (how many families print their own currency, which is the world's standard?), misleading (even families will invest in their future sometimes), and ruthless (few families would argue that a balanced budget is more important than a wheelchair or crutches for Grandma).

This statement revives the troubling question of whether this White House and this President have lost their moral compass along with their understanding of economics.

It's true that the President and Congress should not "shirk their responsibilities" -- to provide jobs for the unemployed and reduce the swelling ranks of the impoverished. It's devastating that the President chose to apply those words to a lopsided, premature, and misguided exercise in austerity economics instead.

The Bottom Line

There comes a time when ethical people have to take a stand, and this is one of them. Democrats must reject the premise behind these negotiations. If they don't, it raises serious questions about their party's values, future and social worth.

Today's deficits were caused by wild and reckless tax cuts for the wealthiest among us, along with the cost of two unnecessary wars and the consequences of bank greed and recklessness. It's a terrible mistake to ask the Americans who were wounded most by deficit-causing behavior to carry so much of the cost of fixing it. And to propose cuts to Medicare and Medicaid simply to preserve low tax rates for the wealthy is nothing less than a moral obscenity.

In these dark times, here are the President's and Congress's real and unshirkable responsibilities: To help 25 million un- or under-employed Americans get back on their feet. To stop Wall Street looters from making off with our nation's riches. To restore tax fairness and economic justice. To invest in our crumbling infrastructure. To create economic growth that will fix deficits in the long term. To ensure retirement security for all Americans. To ensure genuine access to health care for all. And to stem the growing tide of poverty.

Maybe these professional politicians are constitutionally hardwired to compromise and deal, and are therefore incapable of recognizing when doing so is to reinforce great wrongs. But if they can't see it, we'll have to show them -- with phone calls, emails and a very clear message about the consequences they'll face next November if they go through with this plan.

This proposal, along with the whole Super Committee process, is a dying gasp from the failed "bipartisan" economic consensus that brought us deregulation, the financial crisis, rampant banker criminality, and inequitable distribution of wealth. It must be discarded with all the other refuse of that cynical, tragical, failed experiment.

Politicians who don't understand that may wind up being discarded, too.


Richard (RJ) Eskow is a former executive with experience in health care, benefits, and risk management, finance, and information technology. Richard worked for AIG and other insurance, risk management, and financial organizations. He was also a (more...)

The views expressed in this article are the sole responsibility of the author
and do not necessarily reflect those of this website or its editors.

Sunday, November 6, 2011

New Big Brother fears as CIA's 'vengeful librarian' team pore over the web and report to Obama every day


New Big Brother fears as CIA's 'vengeful librarian' team pore over the web and report to Obama every day

By Associated Press

Last updated at 5:23 PM on 4th November 2011


In an anonymous industrial park in Virginia, in an unassuming brick building, the CIA is following up to five million tweets a day.

At the agency's Open Source Center in McLean, a team known affectionately as the 'vengeful librarians' also pores over Facebook, newspapers, TV news channels, local radio stations, Internet chat rooms – anything overseas that anyone can access and contribute to openly.

From Arabic to Mandarin Chinese, from an angry tweet to a thoughtful blog, the analysts gather the information, often in native tongue.

Keeping track: The CIA team follow up to five million tweets a day around the world to gauge what is going on in different regions

Keeping track: The CIA team follow up to five million tweets a day around the world to gauge what is going on in different regions

They cross-reference it with the local newspaper or a clandestinely intercepted phone conversation.

From there, they build a picture sought by the highest levels at the White House, giving a real-time peek, for example, at the mood of a region after the Navy SEAL raid that killed Osama bin Laden or perhaps a prediction of which Mideast nation seems ripe for revolt.

Yes, they saw the uprising in Egypt coming - they just didn't know exactly when revolution might hit, said the center's director, Doug Naquin.

The center already had 'predicted that social media in places like Egypt could be a game-changer and a threat to the regime,' he said in a recent interview with The Associated Press at the center.

CIA officials said it was the first such visit by a reporter the agency has ever granted.

The CIA facility was set up in response to a recommendation by the 9/11 Commission, with its first priority to focus on counterterrorism and counterproliferation.

They saw it coming: The CIA's cyber snoopers knew a revolution was about explode in Egypt, but they weren't sure of exactly when

They saw it coming: The CIA's cyber snoopers knew a revolution was about explode in Egypt, but they weren't sure of exactly when

But its several hundred analysts – the actual number is classified – track a broad range, from Chinese internet access to the mood on the street in Pakistan.

While most are based in Virginia, the analysts also are scattered throughout U.S. embassies worldwide to get a step closer to the pulse of their subjects.

The most successful analysts, Naquin said, are something like the heroine of the crime novel The Girl With the Dragon Tattoo, a quirky, irreverent computer hacker who 'knows how to find stuff other people don't know exists.'

Those with a masters' degree in library science and multiple languages, especially those who grew up speaking another language, 'make a powerful open source officer,' Naquin said.

The center had started focusing on social media after watching the Twitter-sphere rock the Iranian regime during the Green Revolution of 2009, when thousands protested the results of the elections that put Iranian President Mahmoud Ahmadinejad back in power.

'Farsi was the third largest presence in social media blogs at the time on the Web,' Naquin said.

The center's analysis ends up in President Barack Obama's daily intelligence briefing in one form or another, almost every day.

After bin Laden was killed in Pakistan in May, the CIA followed Twitter to give the White House a snapshot of world public opinion.

Since tweets can't necessarily be pegged to a geographic location, the analysts broke down reaction by languages.

The result: The majority of Urdu tweets, the language of Pakistan, and Chinese tweets, were negative.

China is a close ally of Pakistan's. Pakistani officials protested the raid as an affront to their nation's sovereignty, a sore point that continues to complicate U.S.-Pakistani relations.

Hacker heroine: CIA's best analysts are said to be like the fictional hacker, The Girl With The Dragon Tattoo, depicted here by Rooney Mara in the new movie of the same name

Hacker heroine: CIA's best analysts are said to be like the fictional hacker, The Girl With The Dragon Tattoo, depicted here by Rooney Mara in the new movie of the same name

When the president gave his speech addressing Mideast issues a few weeks after the raid, the tweet response over the next 24 hours came in negative from Turkey, Egypt, Yemen, Algeria, the Persian Gulf and Israel, too, with speakers of Arabic and Turkic tweets charging that Obama favoured Israel, and Hebrew tweets denouncing the speech as pro-Arab.

In the next few days, major news media came to the same conclusion, as did analysis by the covert side of U.S. intelligence based on intercepts and human intelligence gathered in the region.

The center is also in the process of comparing its social media results with the track record of polling organizations, trying to see which produces more accurate results, Naquin said.

'We do what we can to caveat that we may be getting an overrepresentation of the urban elite,' said Naquin, acknowledging that only a small slice of the population in many areas they are monitoring has access to computers and internet.

But he points out that access to social media sites via cellphones is growing in areas like Africa, meaning a 'wider portion of the population than you might expect is sounding off and holding forth than it might appear if you count the internet hookups in a given country.'

Sites like Facebook and Twitter also have become a key resource for following a fast-moving crisis such as the riots that raged across Bangkok in April and May of last year, the center's deputy director said.

The Associated Press agreed not to identify him because he sometimes still works undercover in foreign countries.

Thailand

One step ahead: The CIA's online team worked to protect U.S. diplomats during the anti-government demonstrations in Bangkok last year

As director, Naquin is identified publicly by the agency although the location of the center is kept secret to deter attacks, whether physical or electronic.

The deputy director was one of a skeleton crew of 20 U.S. government employees who kept the U.S. Embassy in Bangkok running throughout the rioting as protesters surged through the streets, swarming the embassy neighbourhood and trapping U.S. diplomats and Thais alike in their homes.

The army moved in, and traditional media reporting slowed to a trickle as local reporters were either trapped or cowed by government forces.

'But within an hour, it was all surging out on Twitter and Facebook,' the deputy director said.

The CIA homed in on 12 to 15 users who tweeted situation reports and cellphone photos of demonstrations.

The CIA staff cross-referenced the tweeters with the limited news reports to figure out who among them was providing reliable information.

Tweeters also policed themselves, pointing out when someone else had filed an inaccurate account.

'That helped us narrow down to those dozen we could count on,' he said.

Ultimately, some two-thirds of the reports coming out of the embassy being sent back to all branches of government in Washington came from the CIA's open source analysis throughout the crisis.

Tuesday, November 1, 2011

President Everything is Nowhere Man to Everybody



November 1, 2011 at 12:13:59

President Everything To Nearly Everybody - The Hero With 1000 Faces


By (about the author)


Flexibility, the Obama Credo by crooksandliars.com

Scene: The Oval Office

Time: Daily briefing with senior staff

Speaker : The President, perplexed, pacing, nodding

Let's talk politics today and re-election, no holds barred. I arrive here every morning bright-eyed and bushy-tailed, flush with my perpetual audacity of hope, but lately my dander is up. Maybe no one could preside over this warring country. But we hover at 40% approval -- with our wave of legislative triumphs second in modern times to LBJ -- and under greater duress? Who'd predict only a year ago our re-election would be in doubt -- especially against this gang of has-beens, misfits, clowns, losers and wannabes? If I didn't have my formidable self-esteem, I'd feel insulted [smiles, boyishly].

Look, I appreciate how staff plays to every audience, Tea Party aside -- with a scattergun as wide as anything since Reagan. That's what made the Gipper impressive, capturing men and women, old and young, the right, the center, and blue collar Democrats. Chockablock with anti-government fanatics Reagan never knew, we must firmly stay the course we set from Day One -- talk Democratic, rule Republican.

Talk about a tightrope presidency, staking out the center yet besieged by extremes. When will grumbling leftwingers get why my being against the "dumb" Iraq war meant being gungho in Afghanistan? Push-pull is the key, encouraging whatever voter projections suit our Rorschach regime. Don't critics appreciate our finesse, taking multiple sides on major issues while deflecting attack for flip-flopping? Eat your heart out, Mitt.

Yet we announce the Holy Grail -- withdrawal of U.S. troops from that interminable Iraqi quagmire -- and it barely ripples our positives. Isn't successful withdrawal from a dumb war a win, at least politically? Our balancing act works -- delivering a pro-peace, anti-war credo while executing a pro-peace, pro-war agenda. Likewise, we promote strong government stimulus, like a good Democrat, while assailing big deficits, a Republican talking point. Who else calls for taxing millionaires plus promises tax relief -- or pitches a modest jobs program knowing the House will never pass it? Finesse is having it both ways without getting stung -- or saying you're sorry.

Being For It -- and Against It

As Clinton proved twice, and we once, ideological fixations don't win national elections. Our stay here depends on regaining centrists -- and that means pillaging Republicans for knee-jerk, out-of-touch orthodoxy. Not a hard task -- after all, their notion of political debate is which absurd flat tax they like best; or how high the wall with Mexico should be; or what terrifying yet non-threatening country we must bomb next. Our core principles are unchanged: we stay devoutly non-ideological, in short seeming everything to everybody. Here, friends, is our working Obama credo -- we're not red states, nor blues states but only states that could go Democratic [smiles].

Is it a mystery why we campaigned sharply against Bush rights violations, but in office had to match, even outdo him? Talk left, go right, and never look back. Doesn't the left appreciate that knocking off a few bad guys shows how tough we are? And terminating our own untried citizens, like in a western film shootout, shows we're as tough as Cheney. Anything but looking "soft on crime," like Kerry or Dukakis, or in today jargon, "soft on terrorists." What excites Americans are clear war cries against a looming enemy, not espionage or subterranean police work in alleys. Why, we're even tough enough to take on liberal sacred cows -- one week defending Social Security and Medicare, the next week agreeing to reforms to save the country from budget Armageddon.

Item: need to countermand the "Obama campaign betrayals" mantra, justifying our compromises as positive, American pragmatism serving the majority. Romney shows it's better to be maligned as a socialist -- easy to disprove that -- than branded an unprincipled flip-flopper -- impossible to disprove. Perry, too, cornered himself, endorsing a dreadful immigration stance that outrages the far right and moderate Hispanics. Apparently, these guys never studied my favorite mythological figure, the two-headed Janus who looks in multiple directions without blinking.

Item: need to get more credit for real overseas gains. Dramatic wins -- like shooting down bin Laden, decimating terrorists with drones, and especially dethroning hated dictators -- must be translated into homefield political leverage. You'd think 9/11 would have convinced voters the USA is not the whole world. Still work here to be done. Fortunately, we're running out of potential invasion sites so let's make the most of the cards we've been dealt.


Back-door Decoy Play

Item: need to offset nonsense we're "unfriendly to business." Right, with government loans, contracts, credits, subsidies, war spending and research grants? Any more corporate-friendly, and I'd have to be listed on a dozen boards of directors [another big smile]. One positive to the OWS is we can stop badgering banks, oil companies, and rich people as the enemy. Why risk our capital when protesters make the same point? We state we "fully understand" public anger without risk of subsequent embarrassment. Good timing: the perfect backdoor decoy play.

Item: need environmental wins before the election. Luckily, we're holding our own, despite letting BP run its own Gulf clean-up, adding new roads to log public lands, lowering EPA pollution measures, while approving new offshore permits plus the Canada-Oklahoma pipe line. With Republicans taking the unfeeling, predatory Robber Barons gagging on regulations, all we need are a few splashy headlines next year. Maybe a new national park, or national forest, and more alternative energy programs to shore up our anti-global warming creds. Environmentalists cheer even when only handed crumbs.

Finally, we must prepare for a curious problem -- that this presidency could be tarnished, made ordinary, by debating the likes of Herman Cain or Rick Perry. Remember how VP Biden evoked sympathy for Palin, flush with winking, smirking, and dismissing questions. It's challenging for knowledgeable officials to debate know-nothing amateurs without appearing condescending, so let's work up strategies here. We all know none of us here suffer fools lightly, unless they're in the cabinet already [smiles]. But with luck and enough campaign cash -- plus as competition either a buffoon or a Romney jammed into ideological corners -- I still like our chances.


Educated at Rutgers College (BA) and UC Berkeley (Ph.D, English) Becker left university teaching (Northwestern, U. Chicago) for business, founding and heading SOTA Industries, high end audio company from '80 to '92. From '92-02 he did marketing (more...)

The views expressed in this article are the sole responsibility of the author
and do not necessarily reflect those of this website or its editors.