March 29, 2008
March 19, 2008
March 17, 2008
Paul Krugman: The B Word
Paul Krugman, The New York Times, March 17, 2008
Last week, Robert Rubin, the former Treasury secretary, and John Lipsky, a top official at the International Monetary Fund, both suggested that public funds might be needed to rescue the U.S. financial system. Mr. Lipsky insisted that he wasn’t talking about a bailout. But he was.
It’s true that Henry Paulson, the current Treasury secretary, still says that any proposal to use taxpayers’ money to help resolve the crisis is a “non-starter.” But that’s about as credible as all of his previous pronouncements on the financial situation.
So here’s the question we really should be asking: When the feds do bail out the financial system, what will they do to ensure that they aren’t also bailing out the people who got us into this mess?
Let’s talk about why a bailout is inevitable.
Between 2002 and 2007, false beliefs in the private sector — the belief that home prices only go up, that financial innovation had made risk go away, that a triple-A rating really meant that an investment was safe — led to an epidemic of bad lending. Meanwhile, false beliefs in the political arena — the belief of Alan Greenspan and his friends in the Bush administration that the market is always right and regulation always a bad thing — led Washington to ignore the warning signs.
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March 16, 2008
Maureen Dowd: Bush’s Soft Shoe in Hard Times
The New York Times, March 16, 2008
Everyone here is flummoxed about why the president is in such a fine mood.
The dollar’s crumpling, the recession’s thundering, the Dow’s bungee-jumping and the world’s disapproving, yet George Bush has turned into Gene Kelly, tap dancing and singing in a one-man review called “The Most Happy Fella.”
“I’m coming to you as an optimistic fellow,” he told the Economic Club of New York on Friday. His manner — chortling and joshing — was in odd juxtaposition to the Fed’s bailing out the imploding Bear Stearns and his own acknowledgment that “our economy obviously is going through a tough time,” that gas prices are spiking, and that folks “are concerned about making their bills.”
He began by laughingly calling the latest news on the economic meltdown “a interesting moment” and ended by saying that “our energy policy has not been very wise” and that there was “no quick fix” on gasp-inducing gas prices.
“You know, I guess the best way to describe government policy is like a person trying to drive a car in a rough patch,” he said. “If you ever get stuck in a situation like that, you know full well it’s important not to overcorrect, because when you overcorrect you end up in the ditch.”
March 13, 2008
March 9, 2008
March 8, 2008
Mehlman and Rove Boost McCain Campaign
David Paul Kuhn, Politico, March 8, 2008
John McCain is getting much more than President Bush’s endorsement and fundraising help for his campaign. He’s getting Bush’s staff.
It’s no secret that Steve Schmidt, Bush’s attack dog in the 2004 election, and Mark McKinnon, the president’s media strategist, are performing similar functions for McCain now.
But other big-name Bushies are lining up to boost McCain, too.
Ken Mehlman, who ran Bush’s 2004 campaign, is now serving as an unpaid, outside adviser to the Arizona Republican. Karl Rove, the president’s top political hand since his Texas days, recently gave money to McCain and soon after had a private conversation with the senator. A top McCain adviser said both Mehlman and Rove are now informally advising the campaign. Rove refused to detail his conversation with McCain.
The list could grow longer. Dan Bartlett, formerly a top aide in the Bush White House, and Sara Taylor, the erstwhile Bush political adviser, said they are eager to provide any assistance and advice possible to McCain.
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March 7, 2008
Top Iraq Contractor Avoids Paying US Taxes Using Offshore Shells
The Boston Globe, March 6, 2008
CAYMAN ISLANDS – Kellogg Brown & Root, the nation’s top Iraq war contractor and until last year a subsidiary of Halliburton Corp., has avoided paying hundreds of millions of dollars in federal Medicare and Social Security taxes by hiring workers through shell companies based in this tropical tax haven.
More than 21,000 people working for KBR in Iraq – including about 10,500 Americans – are listed as employees of two companies that exist in a computer file on the fourth floor of a building on a palm-studded boulevard here in the Caribbean. Neither company has an office or phone number in the Cayman Islands.
The Defense Department has known since at least 2004 that KBR was avoiding taxes by declaring its American workers as employees of Cayman Islands shell companies, and officials said the move allowed KBR to perform the work more cheaply, saving Defense dollars.
But the use of the loophole results in a significantly greater loss of revenue to the government as a whole, particularly to the Social Security and Medicare trust funds. And the creation of shell companies in places such as the Cayman Islands to avoid taxes has long been attacked by members of Congress.
A Globe survey found that the practice is unusual enough that only one other major contractor in Iraq said it does something similar.
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Paul Krugman: The Anxiety Election
Paul Krugman, The New York Times, March 7, 2008
Democrats won the 2006 election largely thanks to public disgust with the Iraq war. But polls — and Hillary Clintons big victory in Ohio — suggest that if the Democrats want to win this year, they have to focus on economic anxiety.
Some people reject that idea. They believe that this election should be another referendum on the war, and, perhaps even more important, about the way America was misled into that war. That belief is one reason many progressives fervently support Barack Obama, an early war opponent, even though his domestic platform is somewhat to the right of Mrs. Clinton’s.
As an early war opponent myself, I understand their feelings. But should and ought don’t win elections. And polls show that the economy has overtaken Iraq as the public’s biggest concern.
True, the news from Iraq will probably turn worse again. Meanwhile, a hefty majority of voters continue to say that the war was a mistake, and people are as angry as ever about the $10 billion a month wasted on the neocons’ folly.
Yet for the time being, public optimism about Iraq is rising: 53 percent of the public believes that the United States will definitely or probably succeed in achieving its goals. So anger about the war isn’t likely to be decisive in the election.
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March 6, 2008
March 2, 2008
Bush Veterans Official Resigns Because His Bible Study is More Important Than His Job
Aaron Glantz, IPS News, February 29, 2007
SAN FRANCISCO, Feb 29 (IPS) – Another high-ranking George W. Bush administration official has resigned. The Department of Veterans Affairs Undersecretary for Benefits Daniel Cooper quit Thursday amid mounting criticism over a backlog of disability claims for injured veterans that runs six months long and an appearance he made in a fundraising video for an evangelical Christian organisation where he said Bible study was more important than doing his job.
Cooper has been under fire for using his office to proselytise for evangelical Christianity ever since he appeared in a 2004 fundraising video for Christian Embassy, which carries out missionary work among the Washington elite as part of the Campus Crusade for Christ.
In the video, Cooper says of his Bible study, “It’s not really about carving out time, it really is a matter of saying what is important. And since that’s more important than doing the job — the job’s going to be there, whether I’m there or not.”
Cooper’s declaration inflamed veterans who saw the number of veterans waiting for the Veterans Administration (VA) to decide their disability claims balloon to 400,000 on his watch, with the average veteran waiting six months for a decision from the government.
“He was clearly a fundamentalist Christian first and essentially a government paid missionary for his particular world view of the gospel of Jesus Christ,” said Mike Weinstein, who runs the Military Religious Freedom Foundation. “The fact that he’s gone obviously is good.”
Robert Scheer: Bush’s Legacy of Failure
Robert Scheer, TruthDig, March 19, 2008
That idiotic “what, me worry?” look just never leaves the man’s visage. Once again, there was our president, presiding over disasters in part of his making and totally on his watch, grinning with an aplomb that suggested a serious disconnect between his worldview and existing reality. Be it in his announcement that Iraq was being secured on a day when bombs ripped through that sad land or posed between his Treasury secretary and the Federal Reserve chairman to applaud the government’s bailout of a failed bank, George Bush was the only one inexplicably smiling.
Failure suits him. It is a stance he learned well while presiding over one failed Texas business deal after another, and it served him splendidly as he claimed the title of president of the United States after losing the popular, and maybe even the electoral, vote. It carried him through the most ignominious chapter of U.S. foreign policy, from the lies about Iraq’s weapons of mass destruction to an unprecedented presidential defense of torture.
The totally unwarranted assurance was there this week as the once proud dollar fell into the toilet and the debacle of Iraq and Bush’s other failed Mideast policies pushed oil prices to record highs. The Europeans, who didn’t support the U.S. imperial intervention, are doing much better, not having to pay for guarding besieged oil pipelines while U.S. taxpayers are saddled with trillions in future debt, not to mention 4,000 U.S. military deaths and 30,000 U.S. injuries in a war the administration had promised would be paid for with Iraqi oil revenues. Even in Baghdad last week, there wasn’t enough oil to keep the lights on for more than a few hours.
But the president is happy because his legacy issue, the war on terror, is intact. No matter that this week the Pentagon was forced to release a report conducted over the last five years that concluded, after surveying 600,000 official Iraqi documents captured by U.S. forces, that there is “no smoking gun” establishing any connection between Saddam Hussein and al-Qaida. The report was so embarrassing that we taxpayers, who paid for it, were not going to be told of its existence, even though the explosive conclusions were totally declassified, until ABC News forced its posting online.
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