Year: 2010

Rumsfeld To Face Lawsuit Over Torture

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The case here is very simple, contractors at Shield Group Security reported illegal arms sales and smuggling by the firm to US authorities.

When the fled to the US Embassy, they were then taken into custody and tortured by the US Army, using techniques that Rumsfeld specifically authorized.

U.S. District Judge Wayne Andersen has ruled that their lawsuit can proceed.

The principle here is fairly simple: You can sue a police officer for brutality or false arrest, but not a prosecutor for deciding to pursue a case.

In this case Rumsfeld specifically authorized brutality.

Here’s hoping that Rummy spends his remaining days in penury.

Felix Salmon Has A Talk with Treasury Officials

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And determines that they are still the banks bitches, working for them, rather than the citizenry.

In truth, Mr. Salmon did not say that Geithner and His Evil Minions™ see themselves as nothing more than a way to support the banksters, but that is the basic take away that I see here:

Well done to Shahien Nasiripour, who did the best job of anybody, at the Treasury blogger meeting yesterday, at getting Treasury’s officials to commit news. Specifically, he asked about Sheila Bair’s sensible idea that mortgage principal write-downs can help keep homeowners in their homes while also maximizing the value of the mortgage to the issuing bank. And he was told, quite clearly, that Treasury has been talking to Bair about this idea, and that if it makes sense at the bank level, it probably makes sense at the federal level, too, as part of the HAMP program to make mortgages affordable.

Except that once the meeting was over, its main architect, Treasury flack Andrew Williams, emailed Nasiripour to walk that particular idea back, saying that Treasury was NOT (his all caps) going to do anything “major” in terms of principal write-downs, and that any moves in that direction would be no more than “tweaks”.

………

It seems to me that insofar as Treasury has a problem with principal write-downs, that’s clearly a function of the fact that it’s worried about the consequences for banks’ balance sheets. We’re prosecuting a muddle-through strategy right now, where the government artificially props up house prices by providing substantially all of the mortgage finance in the country, in the hope that with economic recovery will come enough of a natural rebound in house prices to let the government slowly remove its support without them falling dramatically again.

(emphasis mine)

Unless the Treasury is banking on 6% inflation a year for the next 8 or 9 years, this is not going to happen.

House prices are still over valued, whether you use price to income, or rent to own (and rents are dropping too), and we are not going to see a recovery until house prices

This is complete regulatory capture, pure and simple.

Economics Update

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Yeah, I know, It’s no longer daily. A new job does that, and it’s de rigeur on Thursday, because that’s when the unemployment data comes out.

In this case, it’s down 6k to 642K, but the 4 week moving average rose 5,000 to 475,500, and continuing claims, which I am no longer a part of were flat at 4.56 million.

Basically, dropping jobless claims don’t mean rising employment until some point below 400K a week, so don’t get your hopes up.

BTW, not getting their hopes up is what small businesses are doing right now, with the National Association of Independent businesses’ index of small business optimism falling to the 2nd lowest level ever recorded, and the Manpower Survey of hiring managers was down slightly, though their Asian numbers were somewhat improved.

In real estate, foreclosure rose by “only” 6% year over year, leading to paroxysms of prodigious positivism by the Panglossian press, but it means that foreclosures are still rising.

Meanwhile, in China, they are freaking out over their inflation levels, which have risen to a 2.7% annual rate (merciful heavens, get me the smelling salts).

Actually, if the PBC raises rates to reign in inflation, I don’t see how they could keep their peg against the dollar, because higher rates push just about any currency up.

But Note: Strident Does not Mean Crazy

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Case in point, Alan Grayson, and his Public Option Act, which require the Secretary of HHS to set up a medicare buy-in at cost.

It’s only 4 pages long, and I’d love to see it hit the floor, because it would seriously jam-up the ‘Phants and the Blue Dogs.

H/t C&L.

Full press release after break.

GRAYSON INTRODUCES PUBLIC OPTION ACT
Bill Opens Up Medicare To Anyone Who Can Pay For It

March 9, 2010

Washington, DC

Congressman Alan Grayson, D-Fla., today introduced a bill (H.R. 4789) which would give the option to buy into Medicare to every citizen of the United States. The “Public Option Act,” also known as the “Medicare You Can Buy Into Act,” would open up the Medicare network to anyone who can pay for it.

Congressman Grayson said, “Obviously, America wants and needs more competition in health coverage, and a public option offers that. But it’s just as important that we offer people not just another choice, but another kind of choice. A lot of people don’t want to be at the mercy of greedy insurance companies that will make money by denying them the care that they need to stay healthy, or to stay alive. We deserve to have a real alternative.”

The bill would require the Secretary of Health and Human Services to establish enrollment periods, coverage guidelines, and premiums for the program. Because premiums would be equal to cost, the program would pay for itself.

“The government spent billions of dollars creating a Medicare network of providers that is only open to one-eighth of the population. That’s like saying, ‘Only people 65 and over can use federal highways.’ It is a waste of a very valuable resource and it is not fair. This idea is simple, it makes sense, and it deserves an up-or-down vote,” Congressman Grayson said.

In keeping with the “Grayson style,” the bill is clear and concise. It is only four pages. You can read the bill here.

Remind Me, Once Again

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As I have said many times, if you live by one rule, it should be never piss off Jon Stewart.

Here he takes on Liz Cheney:

Ms. Cheney is pathetic really: She has no accomplishments of her own, and she knows that if her Daddy gets close to anything even vaguely resembling a fair and full accounting, the gravy train which gets her gigs of Fox News ends.

Ms. Cheney, you are an even more pathetic excuse for a human being than you father is; at least he did something himself to be where he is, while you, much like your fellow nepotism affirmative action baby and Keep America Safe stalwart William Kristol, have done nothing but make currency of your family name.

Headlines that Take the Starch Out of Your Shorts

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Beijing studies severing peg to US dollar.

Truth be told, the hed is a bit alarmist: The Chinese are talking about starting to talk about allowing the Yuan to appreciate a bit:

China’s central bank chief laid the groundwork for an appreciation of the renminbi at the weekend when he described the current dollar peg as temporary, striking a more emollient tone after months of tough opposition in Beijing to a shift in exchange rate policy.

Zhou Xiaochuan, governor of the People’s Bank of China, gave the strongest hint yet from a senior official that China would abandon the unofficial dollar peg, in place since mid-2008. He said it was a “special” policy to weather the financial crisis.

“This is a part of our package of policies for dealing with the global financial crisis. Sooner or later, we will exit the policies.”

Pretty weak tea,* actually, and I think that everyone, even the PBC realizes that the current peg is unsustainable, and my guess, based on absolutely nothing, is that they are talking about talking because it’s a way to kick the can down the road.

*Pun not intended.†
†No, really, it was unintentional.

Europe Moves To Ban the Naked CDS

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Everyone says it’s like insurance, only with insurance, at least since 1746, it has been illegal to take out insurance on anything that you do not have, “an interest in the continued existence of the insured property,” but anyone can take out a Credit Default Swap (CDS) on anything.

All they need to do is find a counter-party.

Well, this may be coming to an end, since European regulators are looking at taking steps to forbid the practice:

José Manuel Barroso, European commission president, said it was “not justified” to buy credit default swaps “by unseen interventions on a risk, on a purely speculative basis”. Photograph: Vincent Kessler/Reuters

The European commission announced moves today to shore up the euro and ward off market pressure on Greece by considering a ban on complex derivatives allegedly being used to undermine the single currency.

The draconian move suggested by José Manuel Barroso, commission president, follows a joint campaign by the German chancellor, Angela Merkel, and the French president, Nicolas Sarkozy, for a prompt clampdown on credit default swaps (CDS).

I’m sure that Timmy “Naked CDS is Essential for Price Discovery” Geithner hates this, but who cares what he thinks: The only reason he’s still Secretary of the Treasury is because Barack Obama knows that the Republicans would filibuster his successor out of spite.

OK, Eric Massa is Nuts

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OK, look at the video, and it’s clear that this guy has some very real problems.


That being said, Massa’s vote against the House healthcare bill was from the left, he felt that it was too weak, and so the idea that the Obama administration in general, and Rahm Emanuel in particular, might have a personal interest in taking him down.

There is nothing more than Rahm likes than cock punching DFH’s,* and so I am reasonably certain that he’s high-fiving over this development, but the talk of a conspiracy I is premature.

I can see how Rahm might be inclined to do this, I just don’t think that he did.

As I have said before, I think that too many Dems remember the Mark Foley, and when this came up, the Democratic leadership did the smart thing.

*Dirty F%$#ing Hippies.

If You Click on he Donate Button

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I’ll spend it on this:

It’s been a long time coming. While Arthur C. Clarke’s satellites have taken to space, and James Bond’s futuristic mobile technology has become common place, still the dream of sustained personal flight has eluded us. But the future is here! Finally we can all take flight as Martin Aircraft in New Zealand releases the first commercially-available jet pack!

I’m just saying, “Who amongst us does not want a jet pack?”

It Could Be Worse, She Could Have Been Driving a Toyota Prius

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Ummm….There are so many jokes here, but I’ll just note that since she’s shaved, we’ll never know if the carpet matches the drapes:

A Florida Highway Patrol officer has admitted his incredulity at a woman who pranged her car while shaving her privates.

Megan Mariah Barnes, 37, was driving her Thunderbird in Key West last week when she piled into the back of a Chevrolet pickup carrying four people. Or rather, although she was in the driver’s seat, it was actually her ex-hubby Charles Judy who was holding the wheel while she tidied herself up down below.

A Highway Patrol spokesman explained that the pair drove on for about a kilometre down the road before pulling the old driver/passenger switcheroo – unsurprising since Barnes was the day before “convicted and sentenced to nine months of probation for DUI and driving with a suspended licence”, deprived of her licence for five years and “ordered to get her car impounded”.

Just when I think that things can’t get any weirder, the weird turn pro.

Texas Knuckle Dragger Loses Primary

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One of the more significant forces for evil in the United States is that Texas Board of Education, because one of their roles is to approve text books for the state, and as such, because of the size of the market, if it’s approved there, the stupidity that they demand goes everywhere.

Well, the stupidest of the stupid motherf%$#er wingnuts, one Don McLeroy, who has argued that Joe McCarthy was vindicated, that evolution is a fraud, etc., just got beaten in the Republican primary:

The top conservative activist on the powerful Texas Board of Education, who rejects evolution and has pushed for a revisionist right-wing U.S. history curriculum, is on the way out, after a moderate candidate defeated him in a tight primary last week.

For months now, TPMmuckraker has been covering Don McLeroy as a major player in the battle over the drafting of nationally influential history textbook standards by the Texas board.

Note here, this is not the voters of Texas coming to their senses: This is the voters of Texas realizing, belatedly, that people were making fun of them and calling them stupid because of this guy, so they dumped him.

What’s to Love About Obama Care?

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Well, if it passes, Rush Limbaugh says that he will leave the counrty:

“If the health care bill passes, where would you go for health care yourself?” a caller asked Limbaugh on his radio show Tuesday.
Story continues below…

“I’ll just tell you this, if this passes and it’s five years from now and all that stuff gets implemented — I am leaving the country. I’ll go to Costa Rica,” Limbaugh replied.

OK, I’m feeling a bit better about the Senate plan.

What MinistryOfTruth Said

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Click for full size


Only Homer Actually Votes ‘Phant

I think that, “the Democratic Establishment can kiss my DFH* a$$ too.”

She* muses on mad scramble to support Blanche Lincoln in her primary bid, despite the fact that she has absolutely no chance of winning in the general, most notably one William Jefferson Clinton:

Instead of working to support the current President against the Corporatist lies from the right what does Bill Clinton do? He throws his support behind one of President Obama’s chief roadblocks within his own party. Of course.

Note here that Blanche Lincoln has made a habit of lying through her teeth during the election, and then knifing those who supported her, as with labor and the EFCA, she lied about her support for the public option, and her reversals on abortion have been so blatant that one of the most establishment political organizations in the Women’s movement, Blanche Lincoln, has decided not to support her in the election, as evidenced by the following statement from the Chair of the organization:

As I travel around the country, I’ve been asked repeatedly about Senator Lincoln’s political troubles and what, if anything, EMILY’s List will be doing to help her win a third term in 2010.

My answer? Nothing.

In 1998, EMILY’s List helped elect Lincoln to the U.S. Senate. We believed her when she told us that that, if and when the Senate took up right-wing Senator Rick Santorum’s bill to ban what he called “partial birth” abortion, she would insist on a health exception that protects women.

Our members gave generously to her campaign, believing that she would steadfastly stand by the pledge she made to us to protect women’s reproductive freedom.

She took our members’ hard-earned money to get elected. Unfortunately, when the Santorum bill came up for a vote, Lincoln voted for it even though it provided no exception to protect women’s health.

EMILY’s List members are deeply committed to electing pro-choice Democratic women whom we trust to stand up for our rights, treat us honestly, and make us proud. Our candidates fight for us every day. Blanche Lincoln failed to hold up her end of the bargain.

Since she wasn’t there for us, we won’t be there for her.

You know, she has a charismatic primary challenger, and Emily’s List dumped her, and right now she’s polling horribly, so I guess that it sucks to be her.

Of course, it sucks worse to be represented by her, which is why she is losing right now.

And then while we’re at it, the DSCC is continues to do their best to discourage candidates who actually inspire people, such as Rodney Glassman in Arizona, even though there appears no other Dem interested in running right now, because, I guess no one actually knows him, even though the Arizona Democratic Party chairman asked him to run.

As MoT notes, the imperative in the Democratic Party establishment is, “PUNCH THE HIPPIES.”

</rant>

*Dirty F%$#ing Hippy

[on edit]My bad, MOT is a he, not a she. No offense was intended.

This is a Change………

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Last week, I wrote about California State Senator Roy Ashburn, who was caught driving drunk as he left a gay bar.

Well, in what is a refreshing change for Republicans,* he has admitted that he is gay:

“I’m gay,” State Senator Roy Ashburn told a radio host from his central California district in an interview this morning. “Those are the words that have been so difficult for me for so long.”

Ashburn, a divorced father of four, said that his many votes against gay rights were efforts to represent the conservative views of his constituents.

This is the most evil bit of nastiness that I’ve heard in a while.

We all harbor our own prejudices, and the best that one can hope for is to recognize them for what they are, understand that they are wrong, and not act on them.

While I understand how people can hate for irrational reasons, it’s worse to hate for a rational reason.

This man did not have an irrational hatred and fear of gays, but he led anti-gay rallies.

He did so for the most prosaic of reasons: He wanted to hold elected office.

*But not outed Democrats, see McGreevy, James.

No Bid From Northrop

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Their official statement is here, and I have a full quote after the break.

So, Northrop Grumman does not think it worth their while to bid. There is a possibility that EADS might bid for the contract on their own, but given their current cash flow issues (A380, A400M, and upcoming needs for developing the A350), I don’t see it happening, particularly when their chances are essentially nil without the fig leaf of some American “partner”.

So, Boeing will get he bid, and they know that they have no competitors, so the taxpayer is going to be done without lube.

Statement From Northrop Grumman on U.S. Air Force Aerial Refueling Tanker Program

WASHINGTON, D.C. – March 8, 2010 – The following is a statement from Wes Bush, Chief Executive Officer and President of Northrop Grumman Corporation (NYSE:NOC), concerning the U.S. Air Force aerial refueling tanker program.

“After a comprehensive analysis of the final RFP, Northrop Grumman has determined that it will not submit a bid to the Department of Defense for the KC-X program. We reached this conclusion based on the structure of the source selection methodology defined in the RFP, which clearly favors Boeing’s smaller refueling tanker and does not provide adequate value recognition of the added capability of a larger tanker, precluding us from any competitive opportunity.

“Northrop Grumman fully respects the Department’s responsibility to determine the military requirements for the new tanker. In the previous competition, Northrop Grumman was selected by the Air Force as offering the most capable tanker for the warfighter at the best value for the taxpayer. However, the Northrop Grumman and EADS team is very disappointed that the revised source selection methodology now dramatically favors Boeing’s smaller refueling tanker. We agree that the fundamental military requirements for the new tanker have not changed since the last competition, but the Department’s new evaluation methodology now clearly favors the smaller tanker.

“We continue to believe that Northrop Grumman’s tanker represents the best value for the military and taxpayer – a belief supported by the selection of the A330 tanker design over the Boeing design in the last five consecutive tanker competitions around the globe. Regrettably, this means that the U.S. Air Force will be operating a less capable tanker than many of our Allies in this vital mission area.

“Our prior selection by the Air Force, our firm belief that we provide the best value offering, and the hard work and commitment of the many individuals and communities on our team over many years made this a difficult decision for our company. But we have a fiduciary responsibility to our shareholders to prudently invest our corporate resources, as do our more than 200 tanker team suppliers across the United States. Investing further resources to submit a bid would not be acting responsibly.

“We have decided that Northrop Grumman will not protest. While we feel we have substantial grounds to support a GAO or court ruling to overturn this revised source selection process, America’s service men and women have been forced to wait too long for new tankers. We feel a deep responsibility to their safety and to their ability to fulfill the missions our nation calls upon them to perform. Taking actions that would further delay the introduction of this urgent capability would also not be acting responsibly.

“We recognize that our decision likely creates a sole-source outcome for Boeing. We call on the Department to keep in mind the economic conclusions of the prior round of bidding as it takes actions to protect the taxpayer when defining the sole-source procurement contract. In the previous round, the Air Force, through a rigorous assessment of our proposal, determined that it would pay a unit flyaway cost of approximately $184 million per tanker for the first 68 tankers, including the non-recurring development costs. With the Department’s decision to procure a much smaller, less capable design, the taxpayer should certainly expect the bill to be much less.”

Northrop Grumman Corporation is a leading global security company whose 120,000 employees provide innovative systems, products, and solutions in aerospace, electronics, information systems, shipbuilding and technical services to government and commercial customers worldwide.

CONTACT: Randy Belote
(703) 875-8525
randy.belote@ngc.com

Just Read This

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Dan Froomkin completely destroys Rahm Emanuel and the Washington Post writers who do his bidding, and deservedly so:

Rahm was simply their chief of staff. And now, this hypercompetitive bantam rooster is attempting to blame others for what went wrong. That’s evidently so important to him that he’s trying to take a victory lap around the wreckage of what was once such a promising presidency.

Go read the rest.

It’s brutal, in a good way.