Wednesday, March 25, 2009
Prof. Mearsheimer on Amb. Freeman
For the record, here's an article by John Mearsheimer on Chas Freeman's being blackballed by the Israel lobby.
Thursday, March 19, 2009
Republicans, Back Off on Christopher Hill
While I'm on the subject of destroying America by being obstructionist on every issue, what about the Republicans blocking the confirmation of Christopher Hill to be Ambassador to Iraq? The opposition is being led by John McCain and Lindsey Graham, two men who claim to be military patriots. This article in Foreign Affairs says that they are seriously upsetting the US military that wants an ambassador in place to take some of the burden for running Iraq off of the military.
Hill was a loyal diplomat for Bush, but because he worked on North Korea, the Republicans want his head. It's the same kind of McCarthyism directed at the State Department that destroyed career diplomat Chas Freeman's nomination to head of the CIA's NIC. Republicans are just not happy unless their killing children, or getting the Israelis to do it for them. I thought John McCain was supposed to be some kind of moderate. I don't think so. He must be extremely bitter about his loss in the Presidential election and has just decided to destroy America, since it didn't vote for him.
Hill was a loyal diplomat for Bush, but because he worked on North Korea, the Republicans want his head. It's the same kind of McCarthyism directed at the State Department that destroyed career diplomat Chas Freeman's nomination to head of the CIA's NIC. Republicans are just not happy unless their killing children, or getting the Israelis to do it for them. I thought John McCain was supposed to be some kind of moderate. I don't think so. He must be extremely bitter about his loss in the Presidential election and has just decided to destroy America, since it didn't vote for him.
Republicans, Back Off on Geithner!
The Republicans need to back off on calling for Treas Sec Geithner's head. As this FT editorial says, he deserves to be given a chance. Geithner didn't cause this crisis, the Republicans did, with all their pro-business legislation (or lack thereof) during the last eight years. Geithner may not have covered himself with glory, but he's working hard, and he has little help, because all the Wall Street tycoons who should be helping him in senior Treasury positions can't or won't because of their criminal conduct working on Wall Street.
By calling for his ouster or even by screaming criticism at him, Republicans are trying to get rid of or immobilize the captain of a ship while it is caught in a hurricane. Even it he's not the best captain, he understands the situation, and he's all we've got. We're in a situation where we don't even have a first mate. Calling for Geithner's ouster is tantamount to calling for the destruction of the American economy. It's grossly irresponsible.
By calling for his ouster or even by screaming criticism at him, Republicans are trying to get rid of or immobilize the captain of a ship while it is caught in a hurricane. Even it he's not the best captain, he understands the situation, and he's all we've got. We're in a situation where we don't even have a first mate. Calling for Geithner's ouster is tantamount to calling for the destruction of the American economy. It's grossly irresponsible.
Sunday, March 15, 2009
Immoral Elites and Obama's Cabinet
The talking heads are decrying Obama's difficulty in filling cabinet and sub-cabinet positions. I don't think it's mainly Obama's fault. The problem is the immorality and greed of the elite leaders who would normally take such positions. We see potential nominees dropping like flies because they didn't pay their taxes. I agree with Joe Biden that paying taxes is a patriotic duty. So, if these people didn't pay their taxes, then we know what they think of the United States. It's me first, country second (or third or fourth or whatever).
The other problem is pay. Government salaries are peanuts to the elites who should be government leaders. This just shows how out of whack the class and pay system is in the US. Almost all the nominees have to make enormous financial sacrifices to take jobs that would pay well for the great mass of Americans. Decent men would be willing to serve their country, but today, while greed is endemic, men who hold high positions in private life are unwilling to enter public service.
The other problem is pay. Government salaries are peanuts to the elites who should be government leaders. This just shows how out of whack the class and pay system is in the US. Almost all the nominees have to make enormous financial sacrifices to take jobs that would pay well for the great mass of Americans. Decent men would be willing to serve their country, but today, while greed is endemic, men who hold high positions in private life are unwilling to enter public service.
More on Chas Freeman's Withdrawal
The Chas Freeman scandal of character assassination by the Jewish “Israeli lobby” will probably end soon. There may be one last gasp; I heard that Freeman is supposed to appear on Fareed Zakaria’s CNN show. Meanwhile, there has been some outcry in the mass media, most notably David Broder’s column in the Washington Post, “The Country’s Loss,” and Stephen Walt and Paul Pillar in Foreign Policy. The defense of Freeman has been small in comparison to the Jewish onslaught, including Jonathan Chait of the New Republic, Michael Goldfarb at the Weekly Standard, Jeffrey Goldberg of the Atlantic, Gabriel Schoenfeld (writing on the op-ed page of the Wall Street Journal), Jonah Goldberg of National Review, Marty Peretz on his New Republic blog, and former AIPAC official Steve Rosen.
Walt’s Foreign Policy comment makes all the important points. For me the most important is the dire implication for intellectual honesty in intelligence analysis. All analysis affecting Israel is guaranteed to be characterized by self-censorship and political correctness. As Walt points out, it indicates that Israel’s supporters do not believe that Israel’s relationship with the US can survive honest scrutiny.
I thought the New York Times report of Freeman's withdrawal was pretty straightforward, although it managed to have a tone that said, "We love Israel," even if it didn't say it in so many words. After all, the Jewish-owned, usually intellectually honest NYT doesn't want to suffer the same fate at the hands of the Israel lobby that Freeman and the CIA did.
Walt’s Foreign Policy comment makes all the important points. For me the most important is the dire implication for intellectual honesty in intelligence analysis. All analysis affecting Israel is guaranteed to be characterized by self-censorship and political correctness. As Walt points out, it indicates that Israel’s supporters do not believe that Israel’s relationship with the US can survive honest scrutiny.
I thought the New York Times report of Freeman's withdrawal was pretty straightforward, although it managed to have a tone that said, "We love Israel," even if it didn't say it in so many words. After all, the Jewish-owned, usually intellectually honest NYT doesn't want to suffer the same fate at the hands of the Israel lobby that Freeman and the CIA did.
Chas Freeman's Statement on Withdrawing from NIC Appointment
Charles W. "Chas" Freeman Jr.'s statement:
To all who supported me or gave me words of encouragement during the controversy of the past two weeks, you have my gratitude and respect.
You will by now have seen the statement by Director of National Intelligence Dennis Blair reporting that I have withdrawn my previous acceptance of his invitation to chair the National Intelligence Council.
I have concluded that the barrage of libelous distortions of my record would not cease upon my entry into office. The effort to smear me and to destroy my credibility would instead continue. I do not believe the National Intelligence Council could function effectively while its chair was under constant attack by unscrupulous people with a passionate attachment to the views of a political faction in a foreign country. I agreed to chair the NIC to strengthen it and protect it against politicization, not to introduce it to efforts by a special interest group to assert control over it through a protracted political campaign.
As those who know me are well aware, I have greatly enjoyed life since retiring from government. Nothing was further from my mind than a return to public service. When Admiral Blair asked me to chair the NIC I responded that I understood he was “asking me to give my freedom of speech, my leisure, the greater part of my income, subject myself to the mental colonoscopy of a polygraph, and resume a daily commute to a job with long working hours and a daily ration of political abuse.” I added that I wondered “whether there wasn’t some sort of downside to this offer.” I was mindful that no one is indispensable; I am not an exception. It took weeks of reflection for me to conclude that, given the unprecedentedly challenging circumstances in which our country now finds itself abroad and at home, I had no choice but accept the call to return to public service. I thereupon resigned from all positions that I had held and all activities in which I was engaged. I now look forward to returning to private life, freed of all previous obligations.
I am not so immodest as to believe that this controversy was about me rather than issues of public policy. These issues had little to do with the NIC and were not at the heart of what I hoped to contribute to the quality of analysis available to President Obama and his administration. Still, I am saddened by what the controversy and the manner in which the public vitriol of those who devoted themselves to sustaining it have revealed about the state of our civil society. It is apparent that we Americans cannot any longer conduct a serious public discussion or exercise independent judgment about matters of great importance to our country as well as to our allies and friends.
The libels on me and their easily traceable email trails show conclusively that there is a powerful lobby determined to prevent any view other than its own from being aired, still less to factor in American understanding of trends and events in the Middle East. The tactics of the Israel Lobby plumb the depths of dishonor and indecency and include character assassination, selective misquotation, the willful distortion of the record, the fabrication of falsehoods, and an utter disregard for the truth. The aim of this Lobby is control of the policy process through the exercise of a veto over the appointment of people who dispute the wisdom of its views, the substitution of political correctness for analysis, and the exclusion of any and all options for decision by Americans and our government other than those that it favors.
There is a special irony in having been accused of improper regard for the opinions of foreign governments and societies by a group so clearly intent on enforcing adherence to the policies of a foreign government – in this case, the government of Israel. I believe that the inability of the American public to discuss, or the government to consider, any option for US policies in the Middle East opposed by the ruling faction in Israeli politics has allowed that faction to adopt and sustain policies that ultimately threaten the existence of the state of Israel. It is not permitted for anyone in the United States to say so. This is not just a tragedy for Israelis and their neighbors in the Middle East; it is doing widening damage to the national security of the United States.
The outrageous agitation that followed the leak of my pending appointment will be seen by many to raise serious questions about whether the Obama administration will be able to make its own decisions about the Middle East and related issues. I regret that my willingness to serve the new administration has ended by casting doubt on its ability to consider, let alone decide what policies might best serve the interests of the United States rather than those of a Lobby intent on enforcing the will and interests of a foreign government.
In the court of public opinion, unlike a court of law, one is guilty until proven innocent. The speeches from which quotations have been lifted from their context are available for anyone interested in the truth to read. The injustice of the accusations made against me has been obvious to those with open minds. Those who have sought to impugn my character are uninterested in any rebuttal that I or anyone else might make.
Still, for the record: I have never sought to be paid or accepted payment from any foreign government, including Saudi Arabia or China, for any service, nor have I ever spoken on behalf of a foreign government, its interests, or its policies. I have never lobbied any branch of our government for any cause, foreign or domestic. I am my own man, no one else’s, and with my return to private life, I will once again – to my pleasure – serve no master other than myself. I will continue to speak out as I choose on issues of concern to me and other Americans.
I retain my respect and confidence in President Obama and DNI Blair. Our country now faces terrible challenges abroad as well as at home. Like all patriotic Americans, I continue to pray that our president can successfully lead us in surmounting them.
To all who supported me or gave me words of encouragement during the controversy of the past two weeks, you have my gratitude and respect.
You will by now have seen the statement by Director of National Intelligence Dennis Blair reporting that I have withdrawn my previous acceptance of his invitation to chair the National Intelligence Council.
I have concluded that the barrage of libelous distortions of my record would not cease upon my entry into office. The effort to smear me and to destroy my credibility would instead continue. I do not believe the National Intelligence Council could function effectively while its chair was under constant attack by unscrupulous people with a passionate attachment to the views of a political faction in a foreign country. I agreed to chair the NIC to strengthen it and protect it against politicization, not to introduce it to efforts by a special interest group to assert control over it through a protracted political campaign.
As those who know me are well aware, I have greatly enjoyed life since retiring from government. Nothing was further from my mind than a return to public service. When Admiral Blair asked me to chair the NIC I responded that I understood he was “asking me to give my freedom of speech, my leisure, the greater part of my income, subject myself to the mental colonoscopy of a polygraph, and resume a daily commute to a job with long working hours and a daily ration of political abuse.” I added that I wondered “whether there wasn’t some sort of downside to this offer.” I was mindful that no one is indispensable; I am not an exception. It took weeks of reflection for me to conclude that, given the unprecedentedly challenging circumstances in which our country now finds itself abroad and at home, I had no choice but accept the call to return to public service. I thereupon resigned from all positions that I had held and all activities in which I was engaged. I now look forward to returning to private life, freed of all previous obligations.
I am not so immodest as to believe that this controversy was about me rather than issues of public policy. These issues had little to do with the NIC and were not at the heart of what I hoped to contribute to the quality of analysis available to President Obama and his administration. Still, I am saddened by what the controversy and the manner in which the public vitriol of those who devoted themselves to sustaining it have revealed about the state of our civil society. It is apparent that we Americans cannot any longer conduct a serious public discussion or exercise independent judgment about matters of great importance to our country as well as to our allies and friends.
The libels on me and their easily traceable email trails show conclusively that there is a powerful lobby determined to prevent any view other than its own from being aired, still less to factor in American understanding of trends and events in the Middle East. The tactics of the Israel Lobby plumb the depths of dishonor and indecency and include character assassination, selective misquotation, the willful distortion of the record, the fabrication of falsehoods, and an utter disregard for the truth. The aim of this Lobby is control of the policy process through the exercise of a veto over the appointment of people who dispute the wisdom of its views, the substitution of political correctness for analysis, and the exclusion of any and all options for decision by Americans and our government other than those that it favors.
There is a special irony in having been accused of improper regard for the opinions of foreign governments and societies by a group so clearly intent on enforcing adherence to the policies of a foreign government – in this case, the government of Israel. I believe that the inability of the American public to discuss, or the government to consider, any option for US policies in the Middle East opposed by the ruling faction in Israeli politics has allowed that faction to adopt and sustain policies that ultimately threaten the existence of the state of Israel. It is not permitted for anyone in the United States to say so. This is not just a tragedy for Israelis and their neighbors in the Middle East; it is doing widening damage to the national security of the United States.
The outrageous agitation that followed the leak of my pending appointment will be seen by many to raise serious questions about whether the Obama administration will be able to make its own decisions about the Middle East and related issues. I regret that my willingness to serve the new administration has ended by casting doubt on its ability to consider, let alone decide what policies might best serve the interests of the United States rather than those of a Lobby intent on enforcing the will and interests of a foreign government.
In the court of public opinion, unlike a court of law, one is guilty until proven innocent. The speeches from which quotations have been lifted from their context are available for anyone interested in the truth to read. The injustice of the accusations made against me has been obvious to those with open minds. Those who have sought to impugn my character are uninterested in any rebuttal that I or anyone else might make.
Still, for the record: I have never sought to be paid or accepted payment from any foreign government, including Saudi Arabia or China, for any service, nor have I ever spoken on behalf of a foreign government, its interests, or its policies. I have never lobbied any branch of our government for any cause, foreign or domestic. I am my own man, no one else’s, and with my return to private life, I will once again – to my pleasure – serve no master other than myself. I will continue to speak out as I choose on issues of concern to me and other Americans.
I retain my respect and confidence in President Obama and DNI Blair. Our country now faces terrible challenges abroad as well as at home. Like all patriotic Americans, I continue to pray that our president can successfully lead us in surmounting them.
Saturday, March 14, 2009
Obama and the Markets
Obama is not responsible for the stock market’s daily ups and downs. Before this week, the pundits were blaming Obama for the stock market going down. This week they should be praising him because it went up, but the financial community is responsible for its own fate. Obama inherited a huge mess. He’s working to get out of it, but it’s going to take a while to dig out of the hole that the Republicans left for him. The financial executives just don’t want to take responsibility for their own failures.
Who knows why the market goes up or down. They claim it went up this week because big banks, starting with Citi, announced that they were making a profit so far this year. But what about all those toxic assets? They are still out there. Plus, as Jay Leno or somebody said, “Wow, we gave CitiBank $40 billion, and they made $8 billion profit.”
Plus, what’s going on in the rest of the world? If something goes wrong in some unexpected place, it may well affect the US market. On Fareed Zakaria, Niall Ferguson warned that the next problem might be the disintegration of Ukraine and some other eastern European countries that will allow Russia to reclaim some of its “near abroad.” Meanwhile, today China expressed concern about its investment in the US. To some extent we and China are tied together in a form of Mutually Assured Destruction because of the enormous amount we owe China. China can’t sell off its holdings without driving down prices and hurting itself, but it is certainly in a position to wreak havoc if it wants to.
Who knows why the market goes up or down. They claim it went up this week because big banks, starting with Citi, announced that they were making a profit so far this year. But what about all those toxic assets? They are still out there. Plus, as Jay Leno or somebody said, “Wow, we gave CitiBank $40 billion, and they made $8 billion profit.”
Plus, what’s going on in the rest of the world? If something goes wrong in some unexpected place, it may well affect the US market. On Fareed Zakaria, Niall Ferguson warned that the next problem might be the disintegration of Ukraine and some other eastern European countries that will allow Russia to reclaim some of its “near abroad.” Meanwhile, today China expressed concern about its investment in the US. To some extent we and China are tied together in a form of Mutually Assured Destruction because of the enormous amount we owe China. China can’t sell off its holdings without driving down prices and hurting itself, but it is certainly in a position to wreak havoc if it wants to.
Tuesday, March 10, 2009
The Jews Got Chas Freeman
This WSJ op-ed by Bret Stevens, formerly of the Jerusalem Post, is just one example of the Jewish attack on Amb. Chas Freemen, who was nominated to be head of the CIA National Intelligence Council. Freeman is a good, decent man who was maliciously maligned by the Jewish lobby. He's not bigoted, but even if he were, what do the Jews fear so much? Was it just to show their power? Do they know that Israel is involved in such dastardly activities that truthful intelligence about it would be greatly damaging in the world's eyes? I don't know, but I do know that the Jews screamed for blood and they got it. Freeman has withdrawn his name.
The following is more or less the text of an email I sent to my Colorado senators and my congressman:
The following is more or less the text of an email I sent to my Colorado senators and my congressman:
The WSJ also earlier printed a letter from several ambassadors, one of whom I worked with, Amb. Tom Pickering. They supported the choice of Amb. Freeman.I have just heard on CNN that Chas Freeman has withdrawn his name to be head of the CIA National Intelligence Council.
I served with Amb. Freeman at the US Embassy in Bangkok, Thailand, before I retired from the Foreign Service. I believe that he is a good man. I think it is terrible that he has been so viciously attacked by Jewish interests because he served as US Ambassador to Saudi Arabia and might be somewhat evenhanded in his consideration of the Arab-Jewish/Israel-Palestine-Iran-Syria-Egypt-Iraq-Jordan... issue. In essence, he was damned by the United States of America because he was not a Jew.
This is not why I fought in the Army in Vietnam or why I served almost 25 years as a Foreign Service officer. This was a witch hunt, just like the ones carried out by Sen. Joe McCarthy years ago. I am outraged!
Thursday, February 26, 2009
Raise Income Tax on the Rich
Obama said that he will limit CEO salaries. It's going to be hard to do. They get money so many different ways -- straight salary, stock options, bonuses, retirement largess, golden parachutes, etc. It's not only the bank CEOs that we are worried about anyway. It's all those obscenely compensated CEOs.
Plus, America has not in the past liked hereditary, moneyed royalty like the Rockefellers, Kennedys, Hiltons, etc. So, tax them when they make obscene amounts of money. A year ago some hedge fund guy named Paulson (not the Treasury Secretary) made over a billion dollars. Nobody needs to make more than say $50 million per year. After $50 million, increase the tax rate to 75% or more. From $10 million annual income the tax rate could be 50%, which is still less than it would have been 50 years ago. If most of the income goes to Uncle Sam, maybe CEO's won't work quite as hard to soak their shareholders, customers and employees. Another test would be the difference between CEO salaries and employee salaries. If a CEO makes more than 100 times what an average worker in his company makes, tax the overage at 100%.
Plus, America has not in the past liked hereditary, moneyed royalty like the Rockefellers, Kennedys, Hiltons, etc. So, tax them when they make obscene amounts of money. A year ago some hedge fund guy named Paulson (not the Treasury Secretary) made over a billion dollars. Nobody needs to make more than say $50 million per year. After $50 million, increase the tax rate to 75% or more. From $10 million annual income the tax rate could be 50%, which is still less than it would have been 50 years ago. If most of the income goes to Uncle Sam, maybe CEO's won't work quite as hard to soak their shareholders, customers and employees. Another test would be the difference between CEO salaries and employee salaries. If a CEO makes more than 100 times what an average worker in his company makes, tax the overage at 100%.
Richard Perle's Ineffectiveness
While the WSJ on Wednesday was publishing the op-ed bashing Amb. Chas Freeman for not being Jewish, another columnist was ridiculing Richard Perle in the WSJ for an article in The National Interest claiming that the neo-cons had no influence on George Bush. Thomas Frank says Perle claims he cannot be "held responsible for the Bush administration's failures." Perle has had few rivals within the US government as a Jew who was one of the most hawkish defenders of Israel. Perle's article and his defense of it prompted the Washington Post headline, "Prince of Darkness Denies Own Existence." It's remarkable that men who were so powerful in George Bush's and previous administrations are now so thoroughly discredited. William Kristol, who was VP Dan Quayle's chief of staff, but who has now lost his column at the NYT, shares this distinction with Perle.
Richard Perle was at the pinnacle of power when he was Assistant Secretary of Defense under Reagan, where he and his minions were my nemeses, pursuing some kind of America-only foreign policy that abhorred any kind of treaty. There is a lot of schadenfreude felt here. Poor Richard! May you endure many more days of ridicule!
Richard Perle was at the pinnacle of power when he was Assistant Secretary of Defense under Reagan, where he and his minions were my nemeses, pursuing some kind of America-only foreign policy that abhorred any kind of treaty. There is a lot of schadenfreude felt here. Poor Richard! May you endure many more days of ridicule!
Wednesday, February 25, 2009
Amb. Chas Freeman Attacked for Not Being Jewish
An op-ed in Wednesday's Wall Street Journal criticizes Obama's choice of Amb. Chas Freeman to head the National Intelligence Council because Freeman has "distincitive political views and affiliations, some of which are more than eyebrow-raising." One of these is his presidency of the Middle East Policy Council, which the op-ed calls "an influential Washington mouthpiece for Saudi Arabia," were Freeman was ambassador. One of MPEC's most egregious faults was to publish "an 'unabridged' version of 'The Israel Lobby and U.S. Foreign Policy' by professors John J. Mearsheimer and Stephen M. Walt." Of course the article by these well-respected professors has been published by others, such as the New York Review of Books, and expanded into a critically acclaimed book. The op-ed continues, emphasizing its core point, "Mr. Freeman has views about Middle East policy that differ rather sharply from those held by supporters of the state of Israel."
Amb. Freeman was DCM (#2) at the Embassy in Bangkok while I was there. He had zero interest in my job as embassy systems manager (head of IT), but he was completely professional and certainly not a bigot. His main qualification for the NIC job is no doubt his service as Ambassador to China, which is developing into our most important bilateral relationship. His service as Ambassador to Saudi Arabia, one of our most important oil suppliers, is also a good reason to name him. I have no doubt that he will be even handed and fair in all of his dealings with Israel, which may be the reason for the WSJ attack on him. The article by Mearsheimer and Walt points out how Israel is accustomed to preferential, not even-handed, treatment.
Hooray for Obama for pursuing honesty and integrity in intelligence analysis. Maybe if we had had more of that under Bush, we wouldn't have gotten all the hyped-up intelligence claiming that Iraq had weapons of mass destruction. It was certainly in Israel's interest to have us invade Iraq, at least that's what Israel thought then. In fact, the US invasion of Iraq has probably unexpectedly strengthened Iran to Israel's detriment.
Amb. Freeman was DCM (#2) at the Embassy in Bangkok while I was there. He had zero interest in my job as embassy systems manager (head of IT), but he was completely professional and certainly not a bigot. His main qualification for the NIC job is no doubt his service as Ambassador to China, which is developing into our most important bilateral relationship. His service as Ambassador to Saudi Arabia, one of our most important oil suppliers, is also a good reason to name him. I have no doubt that he will be even handed and fair in all of his dealings with Israel, which may be the reason for the WSJ attack on him. The article by Mearsheimer and Walt points out how Israel is accustomed to preferential, not even-handed, treatment.
Hooray for Obama for pursuing honesty and integrity in intelligence analysis. Maybe if we had had more of that under Bush, we wouldn't have gotten all the hyped-up intelligence claiming that Iraq had weapons of mass destruction. It was certainly in Israel's interest to have us invade Iraq, at least that's what Israel thought then. In fact, the US invasion of Iraq has probably unexpectedly strengthened Iran to Israel's detriment.
Friday, February 13, 2009
Gregg Withdrawal, Patriotism and the Census
Obama has tried to form a team of rivals to deal with the national economic emergency, but the Republican rivals don't want any part of it. Until recently my main complaint has been about John McCain, who has been a particularly ungracious loser, fighting Obama tooth and nail. I have written this off to McCain's stupidity. He obviously doesn't understand economics, something he demonstrated when he left his campaign to devote all of his efforts to working on the first bailout bill. He was a disaster. He clearly doesn't understand the enormity of the problem, despite the fact that the most recent intelligence briefing listed the world economy as the greatest threat to the U.S., greater even than terrorism. You would think that McCain as an old military man would pay attention to intelligence warnings, but apparently if they contain numbers, he can't handle it.
Now Judd Gregg has come along to supplant McCain as the leading anti-American Republican. He decided that he can't work with Obama, despite the fact that America faces its worst economic plight in three or four generations. It looks like a patriotic American would want to do what he can to rescue America from its trials and tribulations, but not Gregg. He just wants to stick his finger in Obama's eye and make it more difficult for Obama to try to save America.
Interestingly, one of Gregg's main complaints was about the census. Apparently Republicans hate the census and see it as politically motivated. Joe Scarborough pointed out this morning that the 2000 census changed Georgia's congressional delegation from being predominately white Republican to predominately black Democratic.
So, apparently the census is just a political sham unrelated to the truth about the American population. Gregg and Scarborough would argue that when the census taker or the census form arrives at your house, lie! They argue that the census is a totally dishonest, politically motivated sham. It's another example of how Republicans hate America and discredit its institutions. Republicans don't want no stinking census, just like they didn't want no stinking regulation of the financial industry. As Ronald Reagan, their saint, said, government is the problem, not the solution. If American shot itself in the head, the Republicans think it would be much better off. Gregg didn't shoot America in the head, but he did stick his finger in her eye, and John McCain loves him for it.
More seriously, Gregg probably dropped out at least partly because of pressure from his Republican colleagues, like McCain, McConnell, Graham, Shelby and various other mentally challenged Senators, who are more concerned about partisan politics than about saving America. They are counting on the fact that their fat-cat supporters have enough gold stashed away in the Cayman Islands, Bermuda, Luxembourg, or some other foreign haven to take care of them when the U.S. craters as a result of their obstructionism.
Now Judd Gregg has come along to supplant McCain as the leading anti-American Republican. He decided that he can't work with Obama, despite the fact that America faces its worst economic plight in three or four generations. It looks like a patriotic American would want to do what he can to rescue America from its trials and tribulations, but not Gregg. He just wants to stick his finger in Obama's eye and make it more difficult for Obama to try to save America.
Interestingly, one of Gregg's main complaints was about the census. Apparently Republicans hate the census and see it as politically motivated. Joe Scarborough pointed out this morning that the 2000 census changed Georgia's congressional delegation from being predominately white Republican to predominately black Democratic.
So, apparently the census is just a political sham unrelated to the truth about the American population. Gregg and Scarborough would argue that when the census taker or the census form arrives at your house, lie! They argue that the census is a totally dishonest, politically motivated sham. It's another example of how Republicans hate America and discredit its institutions. Republicans don't want no stinking census, just like they didn't want no stinking regulation of the financial industry. As Ronald Reagan, their saint, said, government is the problem, not the solution. If American shot itself in the head, the Republicans think it would be much better off. Gregg didn't shoot America in the head, but he did stick his finger in her eye, and John McCain loves him for it.
More seriously, Gregg probably dropped out at least partly because of pressure from his Republican colleagues, like McCain, McConnell, Graham, Shelby and various other mentally challenged Senators, who are more concerned about partisan politics than about saving America. They are counting on the fact that their fat-cat supporters have enough gold stashed away in the Cayman Islands, Bermuda, Luxembourg, or some other foreign haven to take care of them when the U.S. craters as a result of their obstructionism.
Thursday, January 22, 2009
Obama Recognizes Vietnam Vets
Obama won me over, although I was already a supporter, when he mentioned Khe Sahn in the same breath with Concord, Gettysburg and Normandy in his inaugural address. Typically, Americans look down on Vietnam veterans, probably because most Americans, like George Bush and Bill Clinton, did not go. There are probably very few Vietnam vets on Wall Street. So, to mention a Vietnam battle in a positive context along with other famous battles is another ground breaking step by Obama. Thank you.
My impression is that he is much more concerned about our military and veterans than Bush was, although Bush was always very public about praising them. If he had really cared about them he would have done more to increase the size of the Army and Marines, would have shortened their tours in Iraq and Afghanistan, and would have increased their time at home between tours. Plus he would have done more to make sure they had the best equipment. Instead of raising taxes to provide better equipment, he and Rumsfeld just went to war with what they had. They didn't try to improve the forces. I think Obama takes his job as commander-in-chief seriously and will do more for the troops, as well as for veterans. Appointing Shinseki as VA Secretary is a good first step. Shinseki may not know much about medicine, but he cares about his troops. Thank you.
My impression is that he is much more concerned about our military and veterans than Bush was, although Bush was always very public about praising them. If he had really cared about them he would have done more to increase the size of the Army and Marines, would have shortened their tours in Iraq and Afghanistan, and would have increased their time at home between tours. Plus he would have done more to make sure they had the best equipment. Instead of raising taxes to provide better equipment, he and Rumsfeld just went to war with what they had. They didn't try to improve the forces. I think Obama takes his job as commander-in-chief seriously and will do more for the troops, as well as for veterans. Appointing Shinseki as VA Secretary is a good first step. Shinseki may not know much about medicine, but he cares about his troops. Thank you.
Take Over the Banks
I like the proposal for a central bank given in the NYT's Anonymous Banker's proposal. First of all, the analogy to a used car dealer is one I thought of myself. We would all think bankers were stupid if they bought cars that didn't run; instead they bought obscure securities that didn't have the value the bankers paid for them, which somehow seems less stupid, although it's probably more stupid because bankers are supposed to be experts on securities, but not on cars. The idea of buying "toxic assets" is good for taxpayers only if the government pays what they are worth, which won't help the banks. Bankers are screaming to get rid of the "mark to market" rule, i.e., the rule that makes them carry on their books only the actual value of their assets. They are saying that the current market value is too low. It's like students complaining about grades. If you're failing, you don't want grades; if you're doing well, you don't mind grades; you might even want them, so that other people, e.g., your parents, will know how well you are doing. The bankers are like failing students.
I hadn't really thought about shareholder value, but the idea of preserving shareholder rights, but keeping them on ice until the bank comes out of the "central bank" seems like a good one. I can see lots of bookkeeping problems, however, if the stock is on hold for 10 years. People will die, get divorced, etc., and figuring out who gets what when the bank re-emerges will be tough.
Since I proposed it earlier, I especially like the idea of limiting the size of the banks when they re-emerge and renewing Glass-Steagall, or something like it to prevent the banks from become too big to fail again. The government could create three, four or five roughly equivalent regions and then limit any bank to just one region.
I hadn't really thought about shareholder value, but the idea of preserving shareholder rights, but keeping them on ice until the bank comes out of the "central bank" seems like a good one. I can see lots of bookkeeping problems, however, if the stock is on hold for 10 years. People will die, get divorced, etc., and figuring out who gets what when the bank re-emerges will be tough.
Since I proposed it earlier, I especially like the idea of limiting the size of the banks when they re-emerge and renewing Glass-Steagall, or something like it to prevent the banks from become too big to fail again. The government could create three, four or five roughly equivalent regions and then limit any bank to just one region.
Sunday, January 11, 2009
Break Up the Banks
In this huge Op-Ed in last Sunday's NYT about the financial crisis, I thought there was only one really good idea: Break up the banks that are too big to fail, so that next time they can fail without destroying the US financial system. We should probably allow interstate banking, but put some kind of cap on the size of banks.
Wednesday, December 31, 2008
Wall Street Was Ponzi Scheme
Both Paul Krugman and Tom Friedman have written columns along the lines that the whole Wall Street bubble over subprime mortgages, derivatives, credit default swaps, etc., was just like Bernie Madoff's Ponzi scheme. There was no "there" there. It was all smoke and mirrors. The money went to the people who came up with the schemes to sell worthless paper; they did not create any productive activity. The salesmen just got their commissions up front, before people realized that they were selling worthless paper, illustrated by this Washington Post article about AIG's descent into chaos.
Gaza Strip War with Israel
I think it's likely that Israel invaded Gaza now because it wanted to do so while Bush was still President. In a few weeks, Obama will be President, and although he has talked a good game in support of Israel, the Jews may be worried that he will not be as supportive as Bush. Bush as clearly given them the green light to do whatever they want. Hence the Israeli decision to invade while Bush is still in office.
Monday, December 22, 2008
Idiots in Charge of America and the World
The Financial Times columnist Munchau is right when he says, "I am sceptical of the Fed's new policy of quantitative easing. We do not have a liquidity crisis, but a solvency crisis...." There have been a lot of complaints from bankers about the "mark to market" requirement, which means they should carry assets on their books at the price at which they could be sold in the market. The problem is that their assets are junk, similar to but much worse than Michael Milken's "junk bonds."
What we have is a bunch of huge banks who went out to talk to the day laborers in front of Home Depot and said, "How would you like to buy a 5,000 square foot house? We'll give you a mortgage at 1% or even a negative percent, if you can't afford 1%." So, a lot of the day laborers and their friends took the banks up on their offer. They could buy a 5,000 sq. ft. house cheaper than they could rent a 1,000 sq. ft. apartment on a monthly basis. In theory they signed away their lives when then completed all the mortgage paperwork at the mortgage broker's office, but in fact because they put nothing down on the house and were not held to any standard of honesty for the background information on income, etc., that they gave; they incurred no obligation when they signed the documents. In essence what the banks got in return for lending trillions of dollars in such transactions were bunches of worthless IOUs for which there was no enforceability other than possibly getting the house back some day. The banks want these IOUs to be carried on the books at face value, but it fact they are worth only a few cents on the dollar. Because they are not negotiable in normal, open markets, nobody really knows exactly how much they are worth. Why are they not negotiable? Because they are a bunch of almost worthless IOUs with little legal enforceability. So, when the bank threatens to foreclose and take back the house, the day laborer says, "Fine, take it; I didn't like the color of the media room anyway."
But Washington is all upset that their goal of getting everyone living in America, citizen or not, into a new, expensive house is threatened by the foreclosures. So, Ben Bernanke at the Fed says, "What do I have to do to get you back into this luxurious house? I'll push mortgage interest rates to zero. I'll forgive any negative equity that you have; we'll reduce your mortgage to whatever value an honest appraiser (who was missing in the original transaction) says it's worth, and we'll reimburse the banks for any loss they incur as a result."
So, Munchau is right when he says the problem is not liquidity (banks' unwillingness to lend) but insolvency (banks' lacking money to lend). Their assets are worth far less than the loans that they already are committed to; the banks have no assets to draw on to make additional loans. The Fed says, "No problem, we'll buy the worthless assets from Fannie Mae and Freddy Mac, so that they have real, Fed supplied assets to make new loans from." This is in essence what Hank Paulson originally proposed to use his $700 billion for. But then he followed Britain's example of just giving the money to the banks to shore up their balance sheets, leaving them their unmarketable toxic assets plus whatever additional capital the government gave them to make new loans from.
It's a house of cards, but Bernanke and Paulson are running around trying to close all the doors and windows to keep drafts from blowing all the cards down. I wish them luck, but why did the future of the United States come to depend on a house of cards? In the old days, they used to talk about investment bankers being the "smartest guys in the room." Now they look like the dumbest. On the other hand, they all became millionaires; they just did it by sucking the blood out of hard-working, ordinary Americans. Wall Street is the vampire capital of the world. Maybe that's why vampires are so trendy now.
What we have is a bunch of huge banks who went out to talk to the day laborers in front of Home Depot and said, "How would you like to buy a 5,000 square foot house? We'll give you a mortgage at 1% or even a negative percent, if you can't afford 1%." So, a lot of the day laborers and their friends took the banks up on their offer. They could buy a 5,000 sq. ft. house cheaper than they could rent a 1,000 sq. ft. apartment on a monthly basis. In theory they signed away their lives when then completed all the mortgage paperwork at the mortgage broker's office, but in fact because they put nothing down on the house and were not held to any standard of honesty for the background information on income, etc., that they gave; they incurred no obligation when they signed the documents. In essence what the banks got in return for lending trillions of dollars in such transactions were bunches of worthless IOUs for which there was no enforceability other than possibly getting the house back some day. The banks want these IOUs to be carried on the books at face value, but it fact they are worth only a few cents on the dollar. Because they are not negotiable in normal, open markets, nobody really knows exactly how much they are worth. Why are they not negotiable? Because they are a bunch of almost worthless IOUs with little legal enforceability. So, when the bank threatens to foreclose and take back the house, the day laborer says, "Fine, take it; I didn't like the color of the media room anyway."
But Washington is all upset that their goal of getting everyone living in America, citizen or not, into a new, expensive house is threatened by the foreclosures. So, Ben Bernanke at the Fed says, "What do I have to do to get you back into this luxurious house? I'll push mortgage interest rates to zero. I'll forgive any negative equity that you have; we'll reduce your mortgage to whatever value an honest appraiser (who was missing in the original transaction) says it's worth, and we'll reimburse the banks for any loss they incur as a result."
So, Munchau is right when he says the problem is not liquidity (banks' unwillingness to lend) but insolvency (banks' lacking money to lend). Their assets are worth far less than the loans that they already are committed to; the banks have no assets to draw on to make additional loans. The Fed says, "No problem, we'll buy the worthless assets from Fannie Mae and Freddy Mac, so that they have real, Fed supplied assets to make new loans from." This is in essence what Hank Paulson originally proposed to use his $700 billion for. But then he followed Britain's example of just giving the money to the banks to shore up their balance sheets, leaving them their unmarketable toxic assets plus whatever additional capital the government gave them to make new loans from.
It's a house of cards, but Bernanke and Paulson are running around trying to close all the doors and windows to keep drafts from blowing all the cards down. I wish them luck, but why did the future of the United States come to depend on a house of cards? In the old days, they used to talk about investment bankers being the "smartest guys in the room." Now they look like the dumbest. On the other hand, they all became millionaires; they just did it by sucking the blood out of hard-working, ordinary Americans. Wall Street is the vampire capital of the world. Maybe that's why vampires are so trendy now.
Friday, December 12, 2008
Repercussions for Republicans?
Will there be any repercussions for Senate Republicans who blocked passage of the interim auto bailout bill two weeks before Christmas? They basically said to America, we don't like you; so, we are going to put coal in your stocking for Christmas. The White House, Treasury and the Fed may save the day for average Americans, or maybe not. The Republicans apparently don't care if GM goes bankrupt on Christmas Eve. Scrooge would be proud! Mitch McConnell, Richard Shelby, and company plan to take Tiny Tim's crutch and beat him over the head with it. Merry Christmas!
Monday, December 08, 2008
Auto Bankruptcy
The auto bankruptcy is too big just to use the regular bankruptcy law. These are not just any companies. The auto industry is the foundation of American industry. So why shouldn't Congress pass an industry specific bailout law that would contain many provisions of ordinary bankruptcy, which could also have specific requirements for executives' and workers' salaries, hybrid mileage requirements, etc. In addition, some people say the credit crisis will prevent normal bankruptcy from functioning as it should because there will not be sufficient credit available to allow the companies to operate under Chapter 11.
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