Opinion-Columns.com

A BAILOUT LIMERICK by Jim Freeman

The Limerick is poetry’s worst

Never written by those who are versed

In the headier climes

Of purposeful rhymes

But this is a moment that’s cursed

 

So I write of a system in chaos

Compounded by those who betray us

With promises bold

That quickly turned cold

As suddenly off they would lay us

 

The tag-team of Henry and Ben

Ignoring the why, where and when

Supported the bankers

Those fraudulent wankers

Making dough by a factor of ten

 

These guys in the pin-stripey suits

Standing drinks at the bar in cahoots

All covered each other

While running for cover

And bailing with gold parachutes

 

So Paulson came in with the facts

And a plan to bail out Goldman Sachs

Details were obscure

The Congress unsure

So he fed them a bevy of snacks

If you look to be healed of your pain

And be rid of this terrible stain

Then let me assure

Those who made you poor

Will do it again and again

 

So what the hell can we do

To stay out of this simmering stew

I’m afraid it’s too late

The rich have all ate

And left dirty dishes for you

 

Wall Street was rolling in dough

With too few good places to go

With derivatives dicey

And way over-pricey

Investors lined up at the do

 

It mattered not what they were fed

Or how by the nose they were led

Liar-loans soared

And the money it poured

To the monsters under the bed

 

A slim retribution remains

On this tablecloth covered with stains

Paulson’s friends who all wail

Should be sent off to jail

And we’ll count that as capital gains

BAILING OUT WOODEN ARROWS WITH WOODEN NICKELS

According to the gurus over at Wikipedia, “A wooden nickel, in the United States, is wood token coin, which are usually issued by a merchant or bank as a promotion, sometimes redeemable for a specific item such as a drink. Wooden nickels were most commonly issued in the US in the 1930s, after the Great Depression.”

Which is fine (as far as it goes), although in the sense of the current bailout of fraudulent and specious investment vehicles, it seems the wooden nickel is upon us almost before the fact. We have been snookered out of our underwear before the game began.

Investment ‘vehicles’ are well named, invented as they are to drive off with your money. In case you missed the point of the failure in the House of Representatives to pass Hank Paulson’s giveaway to his former partners in crime over at Goldman Sachs, it was to provide political cover for the coming election, while allowing the Senate to unashamedly lard the legislation.

Seldom does the Senate step in ahead of the House, but paid-off Senators were well paid and only a third of them are standing for reelection. Thus are leaders made. Such is the power of a corrupt two-party system that badly needs a viable third party to disrupt partisanship where stalemate and power-plays have all but replaced representative government.

Hope for a future lies in meaningful coalition governance. What we have allowed in Washington simply will not suffice. Consider what Nancy Pelosi (rhymes with Bela Lugosi) has given us for this month’s monster under the bed;

(Rescue Sweetened With Tax Incentives, by Cecilia Kang, Washington Post)

The House of Representatives yesterday approved $107 billion in tax breaks for businesses and consumers as part of a sweeping financial rescue package designed to stave the credit crisis.

Saddled onto the 450-page bill is a provision to shield as many as 25 million Americans from the alternative minimum tax and $18 billion in tax credit extensions for wind and solar energy production.

Yet to appease lawmakers and make the bill more attractive, several more prosaic tax provisions are included, according to a government budgetary watchdog group.

Saddled. Well chosen metaphor. Indeed, the nation’s economic horse very nearly sank to its knees under the load. Any vague hope that “the best Congress money can buy” would seek anything other than its own unending grip on Democratic dominance (under an Obama administration) sank as well.

Pelosi, who has an absolute majority in the House, said, “We were dealt a bad hand; we made the most of it.” This witless Speaker of the House has made nothing but excuses for the deplorable job she has done since the 2006 mid-term election gave her what she wanted and cannot find a way to use—control.

In the week that was, last week’s $700 billion refusal became this week’s acceptance--larded with an additional $150 billion in earmarks and other buried treasures. Republicans have been watching all year, like cats at a mouse hole, for a bill that could not be refused to which they could attach pet legislation.

They got it this week on a platter, thanks to the Pelosi-Reid dumbo combo. Less able 'leadership' has seldom haunted the halls of Congress. Republicans are not always civic-minded, by by god they are able and showed it by their expansive mood.

(Time Magazine) Paulson's original request was barely three pages long, whereas the bill passed today runs well over 400 pages.

Pork, of course, is not exactly speech-writing, but it does take language and language takes pages. Fortunately, that language was at the ready, loaded, primed and parsed, eager to be fired so everyone could go home and leave the mess to Obama or McCain. With change like this, who really cares who occupies the White House?

(Washington Post again) NASCAR will be able to write off racetrack costs over 7 years and manufacturers of wooden arrows for children will be shielded from an excise tax applied to other shafts. The NASCAR provision was introduced by Rep. Mike Thompson (D-Calif.), who voted in favor of the bill.

Nice job, Mike. That certainly bails out the auto-racing industry, which grosses more than any other organized sport and is awash in profits. A friend of mine, just today, sent me a pretty good idea--that those in Congress be required to wear NASCAR-like uniforms, so we could readily see their sponsorship. I don't know the attribution, it's not original with him, but it's pretty accurate and (would be) funny if it didn't cleave so close to the bone.

The bailout package also provides tax rebates on rum imported from Puerto Rico and the Virgin Islands and tax credits for economic development on the island of American Samoa.

"In the midst of a debate over a historic bailout package, Senate pulled out an old bag of tricks: piling billions of dollars of unrelated legislative provisions into the package and daring the House to reject the bailout again," said Ryan Alexander, president of Taxpayers for Common Sense. "Many of these provisions are tax extenders that have been waiting in the wings for months, hoping for a legislative train to leave the station."

The bill passed the House yesterday 263 to 171. It was a last-ditch effort of sorts for proponents of renewable energy to get tax provisions extended before they were set to expire by the end of the year. Those extensions, estimated at $18 billion, had repeatedly failed to pass legislative muster in both the Senate and House over the past year.

The tax breaks in the legislation total $149 billion over 10 years, and are offset by $42 billion in tax increases. The hikes include a new levy on hedge-fund managers who avoid taxes by transferring income offshore, a provision that would raise $25 billion over 10 years.

It was an absolutely bi-partisan effort. Everyone got their hand in the till, regardless of race, creed, gender or political affiliation. No cause was too large ($150 billion in tax breaks) or too small (39 cents on wooden arrows).

(Bloomberg) Senators attached a provision repealing a 39-cent excise tax on wooden arrows designed for children to an historic $700 billion financial-markets rescue that passed tonight by a vote of 74-25. The provision, originally proposed by Oregon senators Ron Wyden [D] and Gordon Smith [R], will save manufacturers such as Rose City Archery in Myrtle Point, Oregon, about $200,000 a year.

Senators Widen and Smith can’t get any more bi-partisan than that.

(Wikipedia) It was during this (depression era) decade that some banks and chambers of commerce in the United States issued wooden nickels with expiration dates to mitigate difficulties faced by merchants in making change at times of instability.

Wooden arrows—wooden nickels—guess we’ve now seen the closing of the circle. We can hope, but not be assured, that the circle is not a noose in disguise.

__________________________________________________

Media comment:

• Houston Chronicle-Equal treatment
• Boston Globe-Benevolence amid an orgy
• National Post-Canada-Bailout bill more about shafts than building confidence
• Guardian-UK-Now Wall Street may shun $700bn bail-out
• The Australian-Australia-Paulson bailout won't impress sceptics

A CHEAP SHOT AT CRAVING CHEAP CREDIT

Don’t Talk to Me About Craving Cheap Credit to Spend on Imported Goods.

It’s our cravings that are at fault, the fraudsters on Wall Street bray. Consumers demanded cheap credit and we just didn’t know what to do except provide it—even at the personal cost of having to take those hundred million dollar salaries. They made us do it, with their lifestyle demands. Wal-Mart wasn’t a scheme to wreck Main Streets across America, centralize all the purchasing in the Walton family private coffers—it was the cry of manic consumer demand for Chinese TVs and toxic toys for the kids.

We had a gun at our head to create credit default swaps out of the whole cloth that used to be collateralized lending. Remember when you went to your bank for a loan? In those creaky old horse-and-buggy days, the banker wanted some reasonable idea you were going to pay him back. He cared about such things, because it was your (and his) neighbors’ money he was lending. Your reputation might count for something back then, because he knew your reputation. But every month at the loan committee meeting, you were smiled or frowned upon.

I never craved cheap credit, worthless goods or seven credit cards. Credit cards weren’t even in common use until Visa and MasterCard rolled out in the sixties. Oh yeah, you might have carried a Texaco or Standard Oil card for buying gas, maybe had a department store charge account, but the swiping of card-readers came with the usury-friendly 18% interest rates for unpaid balances.

Texaco, Standard Oil or the department store merely got angry with you, cancelled the card and hounded you into court. Visa, MasterCard and the other big guys made a profit out of a great new business opportunity. Why make 5% warehousing, transporting and selling a sofa, when you can make three times that loaning out the money and the Congress of the United States will enable the process.

You can’t get a more prominent enabler than that.

Everyone jumped on the band-wagon of marketing and consuming because they had made the actual manufacture of goods a pauper’s business. No longer able to invent and build, the world’s most successful nation of inventors and builders turned to selling each other cheap crap and calling it the new economy. In a scant forty years, the core values of a nation were cored like apples.

So, the race was on and in four decades that race essentially boarded up the Main Streets of small towns, outsourced our jobs to the cheapest offshore producer, transformed us from the world’s largest lender to the world’s biggest debtor, put college educations out of common reach, changed the relationship between worker productivity and reward, busted the unions, set off an advertising based feeding-frenzy of consumption and—now that it has busted the bank—hands us both the bill and the blame.

Unlike your friendly neighborhood bank of forty years ago, the new-age swindlers who arranged a home mortgage or line of credit for the un-creditworthy, needed a place to offload the offal. Bingo, derivatives were invented—not regulated, but invented—the not regulated part was just another low and outside curve-ball lobbed to a well-fed and well-paid-off Congress.

Derivatives were a hedge-fund invention, a way to whistle up large fees and churn the money pump, essentially hiding rotten apples at the bottom of otherwise shining and radiant barrels of produce. The language in these shell-game contracts was so arcane as to be un-understandable to those who took their cut, closed their eyes, held their nose and shoveled them on down the line.

Rating agencies knew of the stink and approved them AAA in spite of it, for (what else) money. Mortgage bankers, investment bankers, rating agencies and insurers—essentially all the guys looking for bailouts now—knew and collaborated and stirred the conspiracy-pot for a classic RICO indictment.

Instead, Henry Paulson is Santa Claus to save the financial markets.

(TARP—Your Money at Work) those unregulated derivative contracts that allow investors to bet on a debt issuer’s financial prospects, loomed so big on balance sheets that they now drive every bailout decision.

. . . “The last eight years have been about permitting derivatives to explode, knowing they were unregulated,” said Eric R. Dinallo, New York’s superintendent of insurance. “It’s about what the government chose not to regulate, measured in dollars. And that is what shook the world.”

Don’t bother to save the co-conspirators, Henry. Rhett Butler nailed it when he looked deep into Scarlett’s eyes and said, “Frankly, my dear, I don’t give a damn.” As a taxpayer, I’m still reeling from the $11 trillion we’ve accumulated in national debt since Ronnie Reagan (the communicator) deregulated me out of my underwear.

Now you guys have come after the underwear.

______________________________________________________

Media comment:

• Bloomberg-Treasury Seeks Asset-Buying Power Unchecked by Courts
• Guardian-UK-US Treasury takes on the house in high-stakes game
• Wall Street Journal-Paulson Presses Congress to Act On $700 Billion Bailout Plan
• Reuters-Treasury plan lacks taxpayer protection: Sen.Schumer
• Boston Globe-Can America afford it?

FRYING PAN TO FIRE, OIL TO NUCLEAR

No matter that three out of five past presidents are unable to properly pronounce nuclear, they keep making nuclear noise, nuclear threats and (with the current president) seem hell bent upon their own unique brand of nuclear proliferation. The irony is without end; nuclear Pakistan is OK, but a nuclear ambition on the part of Iran is beyond the pale. A nuclear powered North Korea is a precursor to war, but nuclear powered India is just good sense and good business.

The bomb is inseparable in the minds of Americans from the energy technology. Or perhaps not. Or, who knows? Or, it’s all just too complicated.

Mira Kamdar, of the Asia Society, writes in today’s Washington Post that we are “Risking Armageddon for Cold, Hard Cash.”

While everyone has been abuzz about Georgia, the Beijing Olympics and Sarah Palin, perhaps the most important development in the world has been unfolding with almost no attention. India and the United States, along with deep-pocketed corporations, have been steadily pushing along a lucrative and dangerous new nuclear pact, the U.S.-India Civil Nuclear Agreement. Both governments have been working at a fever pitch to get the pact approved by the 45-country Nuclear Suppliers Group, which governs the world's trade in nuclear materials, and before Congress for a final vote before it adjourns this month.

India, huh? The last time I was abuzz, it wasn’t about Georgia, Beijing or Palin. I personally abuzzed wondering if Dick would bomb Iran on his way home from Azerbaijan and Ukraine.

As almost any neocon can tell you, Iran is a terrorist state. Actually, Iran fashions itself a sort of religious democracy, but the point is hotly debated even within Iran. It is however, a nation of 70 million, with the youngest and most pro-American population in the Muslim world. Meanwhile;

Indian Prime Minister Manmohan Singh says the deal will let his country, which refuses to sign either the nuclear Non-Proliferation Treaty (NPT) or the Comprehensive Test Ban Treaty, take "its rightful place among the comity of nations."

Singh has an interesting take on comity (an atmosphere of harmony, mutual civility and respect). Sign the treaties, Manmohan.

The historic deal will allow U.S. nuclear companies to again do business in India, something that has been barred since 1974, when New Delhi tested its first atomic bomb. (India tested nuclear bombs again in 1998, spurring Pakistan to follow suit with its own tests days later.) The pact will also lift restrictions on other countries' sales of nuclear technology and fuel to India, while asking virtually nothing from India in return. All of that will undermine the very international system that India so ardently seeks to join.

If I have it right, that would be the system that has thus far kept no one from surprising the world with those little unexpected explosions that preface an announcement of parity. No one was turned away who could access Dr. Abdul (Strangelove) Kahn in Pakistan and pay the price. We winked at that one because we needed Pakistan and temporary need redefines dictators on a depressingly regular basis over at the State Department.

But Bush is in a fury to set off strategic imbalances in Asia before January 20th, so that the neocons can profit both politically and economically from another arms race. The administration is frantic to come in on the India side against China (while there still is an India side). Mira concurs;

The deal risks triggering a new arms race in Asia: If it passes, a miffed and unstable Pakistan will seek nuclear parity with India, and China will fume at a transparent U.S. ploy to balance Beijing's rise by building up India as a counterweight next door. The pact will gut global efforts to contain the spread of nuclear materials and encourage other countries to flout the NPT that India is now being rewarded for failing to sign. The U.S.-India deal will divert billions of dollars away from India's real development needs in sustainable agriculture, education, health care, housing, sanitation and roads. It will also distract India from developing clean energy sources, such as wind and solar power, and from reducing emissions from its many coal plants. Instead, the pact will focus the nation's efforts on an energy source that will, under the rosiest of projections, contribute a mere 8 percent of India's total energy needs -- and won't even do that until 2030.

We have, in our ultimate burst of creative reason, elected to begin replacing the planets reliance on oil as a power source. It’s getting just too damned expensive and politically sensitive now that Texas has run dry. The prevailing administration view is that, rather than developing cheap and effective alternatives to fossil fuel, the dangerous, expensive and more politically sensitive resurgence of nuclear power is the answer.

Nuclear fuel, rather than being merely expensive and dwindling, is fatal to mine, dangerous as hell to ship, horrendously expensive to store and impossible to get rid of, once used. What a breakthrough technology. Instead of tapping the earth’s molten core, developing wind or solar power, we seek to proliferate the planets most life-threatening method of boiling water.

Kurt Vonnegut was right—our big brain is trying (with great success) to kill us.

So what will the deal accomplish? It will generate billions of dollars in lucrative contracts for the corporate members of the U.S.-India Business Council and the Confederation of Indian Industry. The Bush administration hopes that it will help resuscitate the moribund U.S. nuclear power industry and expand the use of this "non-polluting" source of energy, one of the pillars of the Bush team's energy policy. The deal will let the real leaders of the global nuclear-power business -- France and Russia, both of which eagerly support the deal -- reap huge profits in India. And the pact will provide spectacularly profitable opportunities to India's leading corporations, which are slavering to get their hands on a share of the booty. How much booty? This newspaper estimates more than $100 billion in business over the next 20 years, as well as perhaps tens of thousands of jobs in India and the United States.

Bush’s solution is so ‘non polluting’ that we have yet to find a state or a mountain within a state, willing to serve as a repository for spent fuel in America. It is so ‘non polluting’ that we expect to offload it to the poorest countries on earth.

In any case, the nuclear deal will not magically transform India into China's economic or military equal. A shocking 42 percent of Indians live below the World Bank's new poverty threshold of $1.25 per day. Even if India managed to match China reactor for reactor and missile for missile -- a long shot at best -- Delhi could do so only at the expense of precisely the investments in human and physical infrastructure that could make India into a truly great power, prosperous and secure. This is the real tragedy of the U.S.-India nuclear deal. It's not too late to stop it.

So,

• the politics are flawed,
• the science is opposed,
• the next Cold War is a likely result,
• India will remain a beggar state,
• China is disturbed
• and Russia (who we claim to be mad at over Georgia) will profit.

All in favor, signify by saying ‘aye.’

The ‘ayes’ will have it, unless the clock runs out.

HOLD THE PRESSES!!! This just in from the NYTimes;

The worldwide body that regulates the sale of nuclear fuel and technology approved a landmark deal on Saturday to allow India to engage in nuclear trade for the first time in three decades, after a pressure campaign by the Bush administration and despite concerns about setting off an arms race in Asia.

Approved, apparently, while I was busy parsing a paragraph. Timing is everything.

Only one hurdle now remains for the deal: final approval by the United States Congress. But passage is likely to be difficult, considering both political opposition and dwindling time in the Congressional calendar before November’s elections.

And therein lies the hope. Congress will absolutely not touch this hot-potato until a new Congress convenes.

______________________________________________________

Media comment:

• Financial Times-UK-US races to approve India nuclear deal
• Daily Times-Pakistan-US-India nuclear deal called “foolish and risky”
• Christian Science Monitor-India a step closer to nuclear trade
• Associated Press-Delegates: US-India nuclear deal talks in disarray
• Hindustan Times-India-India waltzes past Vienna, Bush wielded the baton

 

THE NEXT GREAT IDEA IN THE BUSH DOCTRINE OF PREEMPTIVE WAR

Along comes Walter Pincus, an able enough Washington Post staff writer to disabuse us of any intention by incumbent George Bush to release his death-grip on America’s substitution for preemption over diplomacy. If you thought (or hoped) his eye was on getting back to his cats and favorite pillow down on the ranch, you never counted on Dick Cheney, or Cheney’s attack dog, David Addington.

If one were of a more conspiracy attuned mind than I happen to be, I might would feel the rising hairs at the back of my neck, the hot breath of military coups. An election, a preemptive strike before January 20th and extraordinary measures taken temporarily on a war-footing.

Nah. Couldn’t happen. Troops in the streets? Kent State? Nah.

(Non-Nuclear Warhead Urged for Trident Missile, by Walter Pincus, Washington Post Staff Writer, Saturday, August 16, 2008)

A National Research Council blue-ribbon panel of defense experts is recommending development and testing of a conventional warhead for submarine-launched intercontinental Trident missiles to give the president an alternative to using nuclear weapons for a prompt strike anywhere in the world.

In critical situations, such an immediate global strike weapon "would eliminate the dilemma of having to choose between responding to a sudden threat either by using nuclear weapons or by not responding at all," the panel said in a final report requested by Congress in early 2007 and released yesterday.

. . . The panel also said that few countries, other than Russia and perhaps China, would be able to detect a sub-launched missile "in the next five years," and that because of the few warheads that would be involved, "the risk of the observing nation's launching a nuclear retaliatory attack is very low."

In its study, the panel focused on scenarios in which it said the Defense Department in the past "seriously contemplated strikes." These involved the need for an immediate conventional strike to preempt an adversary whose missile system was poised to launch a nuclear weapon at the United States or an ally...

. . . The panel also included John S. Foster Jr., a former director of the Lawrence Livermore National Laboratory, Defense Department director of research and development and chairman of the Committee on the Present Danger;

Ah yes, and our man Foster has been quoted elsewhere as saying "National defense with maximum precision and minimum unintended damage should be an attractive challenge for scientists seeking to improve the human condition.”  Dr. Strangelove rides again.

One can hardly contemplate a more improving influence on the human condition than America's current (Bush declared) Doctrine of Preemptive War, enhanced by maximum precision and minimum collateral damage. Improving the Rumsfeld scorecard. Death to the countries and regimes of choice without killing absolutely everyone. A man who identifies that as an attractive challenge is long past the childhood habits of pulling wings off insects.

If anything might chill the reader's blood, then giving this particular president another, easier, less confrontational, less ambiguous way to attack the world, certainly fills the bill.

Promising a 'new direction for America,' Pelosi flim-flammed us into giving her the keys to the Congress. Her obscure, misunderstood and unconstitutionally ‘off the table’ argument for impeachment and against this kind of clap-trap weaponization, is that this president is on his way out. "Oh, he'll be gone in a few months, what’s the point?" The point is preserving our republic as a nation of laws. What we give or allow this president, we give or allow all presidents to come, by precedent.

Remember, without the impeachment of Bill Clinton, all presidents would have been encouraged to solicit oral sex in the halls of the White House.

The claim that in critical situations, this newest weapon of choice in the Pandora Box "would eliminate the dilemma of having to choose between responding to a sudden threat either by using nuclear weapons or by not responding at all," is bogus on its face. It tempts presidents to respond by poll (something they do entirely too much already), promotes reckless and ill-advised presidential shots from the hip to juice their numbers and discourages the hard, slogging, necessary work of diplomacy.

Presidents, due to their four-year report cards, are as short-sighted as business executives in pursuit of the ever-elusive quarterly earnings statement. The difference is that presidents cook the nation’s books, often with horrendous consequences.

This administration in particular, but perhaps all modern administrations, have apparently thrown diplomacy (and the Department of State that administers it) into the dustbin of history. I argue that such successive presidential policy has pretty much destroyed American influence on the international stage. It has been recently claimed that we have more members of military bands than total employees in the State Department.

Ruffles and flourishes, the substitute diplomacy of the new century.

That shortfall in expertise is what ties the hands of Secretaries like the thoroughly beaten Colin Powell and the current abuse victim, Condoleeza Rice. They become mere firemen, dashing around the planet, stamping down insurgencies and smoldering paper bags on the porch in Darfur, Georgia, China, Israel, Palestine--and elsewhere--too many elsewheres to list.

We don't need a quicker way to strike, we need less tendency to strike and a calmer, more resolute method by which to negotiate. In a properly run government (let alone an administration) the situation in Georgia would never have been allowed to fester. GWB found himself surprised by what everyone else saw coming, but had no mechanism to prevent. Echoes of 9-11 and Condi Rice thrown to another lion.

A well organized Department of State would have (and once had) 'sections' devoted to every nation and region of the world--long term departments devoted to in-depth knowledge of an area's history, economics, world view and political persuasion. That legacy was available from secretary to secretary, president to president. A proper Department of State would have more than ten Arab-speakers in a workforce of 34,000.

Ten Arab speakers. Can you believe it? We have plunged ourselves into the darkness and expected, demanded, smashed all the furniture seeking illumination. The Middle East is in flames and America has ten people who can speak Arabic in their diplomatic service and probably fewer qualified in Farsi (the language of Iran).

How 'bout packing in the missiles, John Foster (all that's missing is the Dulles) and beating the drum for a diplomatic service fluent in Arabic, Persian, Pashtu, Albanian, Azerbiajani, Cantonese and Mandarin? You are the living embodiment of Martin Luther King’s prescient statement that ‘we have guided missiles and misguided men.’ Spending mercilessly on weaponry, we don't have the money to speak the language of our adversaries.

We can kill, but we can't communicate.

Instead of more thoughtful approaches to getting what we want politically and economically (the goals of all diplomacy), we have presented to us on behalf of the current crew of war-profiteers, yet another study that recommends an increase in weapons. The signatories to that study are (no surprise) heavily into the weapons promotion business.

Witness The Committee for Present Danger (nearing its 60th anniversary of perceived and ever-present dangers) as an example.

After sixty years of looking for present dangers, what the hell did we expect these nit-wits would find? Peace? Look a some of the signatory members:

They include, in addition to the aforementioned John Foster, we have Norman Podhoretz (advocate of attacking Iran) and associates of the American Enterprise Institute (Richard Perle), Heritage Foundation (Richard Mellon Scaife), AIPAC (a shadow American government) and Boeing.

Boeing? Yeah, Boeing, the ‘we know why we’re here’ people. As for the rest of the weapons contractors, McCain advisor Joe Lieberman is available to haul their water.

Being the last of the major powers still standing is tough work. So is policing the world. And for those who think we shouldn't be policing the world, I would suggest it has always fallen to the powerful--Rome, England, France, Spain, now us. The Pax Americana.

That difficult work should never depend upon a single president's perceptions, because no single man or woman is up to a detailed, up to date and unbiased world-view. Condi Rice is a Russia expert and yet she screwed up the presidential advice leading to the Georgia conflict, because she had no depth on the bench to assist her diplomacy.

As a nation, we are increasingly shying away from the hard work in favor of the easier (quicker, quarterly maximization of profit) route of intimidation, conflict and bipartisanship. It's not working. That's the conclusion of the 'Freeman Study,' for which no professionals were engaged and no cost incurred.

Having said that, the smart money is on new submarine armaments.

______________________________________________________

Media comment:

• Washington Post-Non-Nuclear Warhead Urged for Trident Missile

ONE MAN'S STRANGLEHOLD IS ANOTHER MAN'S MARKET-SHARE

Here we go again, reprising the old cold-war language of strangleholds and us against them communist-capitalist comparisons. Except for the fact that they no longer (if indeed they ever did) hold water.

Some very bad stuff has just transpired in Georgia and I’m not writing about Atlanta, but rather Tbilisi. Seem a long way from home? Yeah, five or six thousand miles, but surely I need not remind you the world is becoming smaller, if not more hospitable.

Russia's Strike Shows The Power Of the Pipeline, by Steven Pearlstein

It was surely not lost on Russia's bully in chief, Vladimir Putin, that the oil giant BP decided to shut down the pipeline that runs through parts of Georgia controlled by Russian troops. Indeed, that was one of the aims of the cross-border incursion.

Putin understands better than anyone that oil and gas are the source of Russia's resurgence as a military and economic power and his own control over the Russian government and key sectors of its economy. It is oil and gas that provide the money to maintain Russia's powerful military, along with a vast internal security apparatus and network of government-controlled enterprises that allow the president-turned-premier to maintain his iron grip on the levers of political and economic power.

Iron grips and who is bully to whom are a matter of definition. Steven Pearlstein seems not to feel that the illegal and vilified hounding of Iraq into a destroyed sovereignty is the result of anything other than Iraq's thirst for democracy satisfying itself at the well (or possibly wellhead) of American ideals. 

One could hardly call George Bush America’s bully in chief, at least not without a major helping of irony. It’s amazing and not a little unsettling that these similarities continue to be lost in the translation from Eastern (push) belligerence to Western (push, push) belligerence.

. . . Nabucco (a Western intervention pipeline) also became a top priority of the Bush State Department -- in particular, of Matt Bryza, a deputy assistant secretary of state, and C. Boyden Gray, a Bush family confidante who was named a special envoy for Eurasian energy, who began actively courting the leaders of Azerbaijan. (the plot thickens--these are my parentheticals)

. . . Putin, quite correctly, viewed Nabucco as part of a larger campaign by Washington to contain and isolate Russia and limit the expansion of its burgeoning energy empire. With Gazprom, the state gas monopoly, Putin launched his own competing proposal called South Stream to build a new pipeline to the Caucasus.

Well Steve, certainly no offense taken when, shortly after the boat ride and fishing in Kennebunkport, George Bush moved to isolate and limit Russia’s energy interests.

A campaign by Washington.

I’ll be that wasn’t on the agenda over hot dogs and hamburgers. How is it that George could look into Vladimir’s eyes, see into his soul and miss South Stream? And there was Dad, right there on the boat, grinning and baiting hooks.

Ah, those baited hooks.

. . . What we've been reminded once again is that Vladimir Putin is perfectly willing to sacrifice the rule of law and the good opinion of others to protect the Russian empire and the energy monopoly that sustains it. The techniques he used to bring Georgia to heel, while more lethal and destructive, have the same thuggish quality as the techniques Putin uses to silence domestic opposition and to expropriate the energy assets of Yukos, Shell and BP.

Ouch. Steven, you are my most admired economic writer, but the references here sound as though they came directly out of the administration media-machinery. It's becoming more apparent every day that Bush and Cheney encouraged Georgian president Mikheil Saakashvili to lean out over the abyss, whispering in his ear that they wouldn't let go of his hand. And, like countless U.S. promises to countless dissident groups, we were not there when they got nudged from behind.

C. Boyden Gray can put that in his diplomatic bonafides when he next represents Bush in Eurasian energy circles. George Bush's thumb on the scales suddenly seemed very evidently up an embarrassing part of his anatomy. And there he was, enjoying himself so much in China--another country he works overtime to alienate.

This man and his so-called foreign policy is unable to do other than stride the world in very muddy seven-league boots, staining diplomatic carpets and muddying up the international landscape for decades to come.

Oil--the obsession of this administration and the subject of still secret energy policy constructed in the silence and darkness of Dick Cheney's office--continues to

• stoke an American with-us-or-against-us belligerence,
• triple the cost of crude,
• depreciate our currency by half,
• spiral the nation into unending debt
• and set the stage for an American economic crash second to (possibly) only one.

This administration and (I would suppose by this article) Steven Pearlstein seem to think that sovereign Russia is incapable of protecting its interests in the sphere in which those interests reside.

That's a very dangerous bit of foolishness.

America has encouraged Georgia to shove a stick in the eye of the Russian bear a time too often. What in the name of god are American military advisors doing in Georgia--smack bang up against the border of Russia?

It's no surprise Russia reacted militarily. It's no surprise that thousands died and lost their homes because of our encouragement. It's no surprise (except perhaps to a very shaken Saakashvili) that we left him holding that stick and looking stupid. It's no surprise that this poisonous and dangerous administration continues to risk American blood, treasure and reputation for their own narrow self-interest and that of their crony war-profiteers.

It's no surprise that John McCain would fall into step and march to the same sad, failed, disproven and ignorant tune.

The worst of it is that it's no surprise to find a large part of the country feeling good about itself by following in those same muddy prints.

________________________________________________

Media comment:

• al-Jazeera-Qatar-Russian forces sink Georgian ships
• Reuters-Russian troops not going to Tbilisi: ministry
• United Press International-Georgian troops pull back
• Guardian-UK-Georgian villages burned and looted as Russian tanks advance
• ABC News-Georgia-Russia Shaky Cease Fire

In My Dreams, Google Takes Down Microsoft

I know, all the current speculation on the financial pages (that doesn’t have to do with speculators) is focused on Microsoft’s unrewarding and unsuccessful wooing of 2^nd rate search engine Yahoo. And, of course, how many multiples of billions they are willing to spend. Even Wired can’t avoid the reference to gluttony and greed.

(Wired, July 29) On February 1, Microsoft set the porcine tone by presenting itself as the new champion of choice, explicitly declaring that the (Yahoo) deal represented the best chance at avoiding a Google monopoly.

The message itself was credible, but the source was not. After all, wasn't it just a few minutes ago that Microsoft was the unstoppable Evil Empire? The reality is that most people do indeed want to see a counter-balance to Google's power ... but they're not particularly thrilled to have that balance come from Microsoft.

That’s an issue of little importance to me as a consumer. Someone will get stuck with Yahoo and thus 2^nd place will join 2^nd rate to keep the field honest enough for approval by our esteemed Justice Department. That’s a pretty low threshold these days (during a moribund caretaker Attorney General), but it fascinates me that the Michael Mukasey anti-trust division considers 90% market penetration (Google plus Yahoo) a no-no.

But Microsoft’s 90% strangle-hold on operating systems is perfectly OK on the trust-o-meter, even though it gives Europe fits.

Which would be alright, if it were any damned good. But Microsoft’s operating system underpins a whole menagerie of functionalities that don’t function—at least not well. What can be said about a system so vulnerable that it writes pot-hole filling patches at the rate of 60 last year alone? Five a month? You can choose to call them ‘security updates’ or any user-friendly name you dream up, but they’re still holes in the road.

An expensive road, one might add, seeded as it is by proprietary software that effectively locks in users.

(Wall Street Journal, July 29, 2008) The software giant (Microsoft)Tuesday unveiled a Web site called the Mojave Experiment, where unsuspecting people test an upcoming operating system – only to learn that it’s really Windows Vista. Why the shenanigans? Because most people think Vista is a dud. In fact, the people Microsoft filmed on hidden cameras universally panned Vista, calling it “horrible” and saying they’ve heard nothing but bad things about it. When asked to grade Vista on a scale of one to 10, some people gave it a zero.

You can guess how this plays out: People test the new “Mojave” operating system and rave about it. Then they laugh and make self-deprecating jokes when they find out Mojave is really the much-maligned Vista

Will the real Microsoft please stand up?

The reality of present-day computing doles out (essentially) three choices of operating system, the stuff under the hood that makes your computer compute. Microsoft, the bull in the china-shop and Apple, which has a near-cult following of adherents, but only 5% of the market. Linux runs third, although it runs best, with less than 3% desktop/laptop market share. Linux boasts an ‘open’ system, to which all are invited to write programs. (Nice touch, but most program-writers do it for money and the money is overwhelmingly at Microsoft.)

(Canada.com) The global embrace of the Internet and the capability to turn everything digital -- pictures, text and vital information -- has resulted in an ease of doing business and communicating. But it has also created a world that is capable of being exploited by the most malevolent of people.

"The bad guys are lurking in everybody's network. You're between six and 20 milliseconds from every creep and criminal on the Internet," Seitz said.

"When people ask me what the safest computer to buy is, I tell them one that you don't plug in. That's the current state of computer security for the average business and home user."

Anyone out there care to reinvent? Come up with an alternative?

Who wouldn’t welcome the appearance of a player who could produce a secure, accurate, problem-free and affordable alternate to Windows? Who wouldn’t love to have it buried somewhere in a cave or deep space, behind the kind of firewalls only the rich and powerful can afford? Who wouldn’t love to be able to access that security and power for a monthly fee—maybe five bucks?

Who wouldn’t love a new way to drive their drivers? Haven’t we been stuck for long enough behind the proprietary wheel of a car with the steering (when it steers) in the back seat?

So, here’s the plan—my plan—no one else has shown any interest in knocking down Microsoft. But they are so ripe for plucking. The ‘low fruit’ can’t get any more tempting than 60 security updates a year. Who possibly has the scope, knowledge and bankroll to take ‘em on?

Reports out of the Googleplex are purporting that Google's search database has hit a significant mark...it's finally tipped over the 1 trillion URL (web pages/files) mark.

Jesse Alpert and Nissan Hajaj, two Google software engineers from the web search infrastructure team, made the unexpected discovery. In an awe filled statement on the Google blog, the engineers shared:

"We've known it for a long time: the web is big...Our systems that process links on the web to find new content hit a milestone: 1,000,000,000,000 unique URLs on the web at once!"

Google doesn't index "every" page and file on the web (to maintain relevance and avoid duplicate content), so the actual web is significantly larger. However, Google's database does represent the biggest index of all the search engines. As the team point out: "...we're proud to have the most comprehensive index of any search engine, and our goal always has been to index all the world's data."

Google, with their name recognition and reputation for coming up with useful things that are inspired by what people need, leaves Yahoo to the vagaries of life and buys Linux. They take some time, because they are long-term players and have some time, to develop super-slick software that supports business needs as no one has done before.

Google is terrific at doing what no one has done before and open source is the way to go, but open-source that pays competitive development fees (or parts of fees or increments of fees). A company that can figure out how to place an ad on a specific website out of millions of similar sites can handle that.

They’re also good at looking at innovation through fresh eyes. Why not a system of satellites out there somewhere that power the Googlesphere and can be updated minute by minute, without annoying you and me. I don’t even know how it could be put together, much less whether it’s a good idea.

But I know the market would be instantaneous, huge and grateful.

Sign me up, Scottie.

_____________________________________________________

Media comment;

• Guardian-UK-Is Microsoft's 'new' Mojave better than Windows Vista?
• Wired-10 Dumbest Lies of the Micro-hoo-gle-cahn Saga
• Times-UK-Microsoft limbers up to fight for online future
• U Talk Marketing-Google continues to dominate European search spend
• ZDNet-UK-Red Hat chief: 'The clouds will all run Linux'

 

How Did ‘Investor Satisfaction’ Ever Get to be a Taxpayer Priority?

Who died and left the investors in charge of America’s future? When did manufacturers, airlines, investment banks, mom and pop shoe stores (if there are any left) and big-box retailers decide that business practice didn’t mean anything and business presentation was the whole ball game?

Oops, take mom and pop out of that equation. They are still providing the sweat equity that built America. It’s the rest of the business world that has given up sweat in favor of equity. Except for sweating out quarterly reports. Plenty of that goin' around, but even they no longer make sense; Google makes record profits and their stock drops; Merrill Chase doesn’t lose as much as they were expected to lose and their stock goes up.

Slowly, inevitably, unendingly over the past three or four decades, we have seen our American business model—the finest on the planet—hijacked by investors. Not customers or clients, but investors. They made themselves King of the Hill. If there’s an unwarranted Freudian slip toward that ‘hill’ being Capitol Hill, so be it. We deserve, under these maneuvered and contrived, massaged and outright lied-about circumstances to get sent to the back of the room until we better understand the free-market system that made us great.

Free markets are not those markets that abandon the security and welfare of their workers. Nor should they be free from all forms of government oversight, allowed to buy and sell Congress as suits their purpose. No section of the Bill of Rights empowers investors to pocket profits and off-load losses to the taxpayer. Short-term gains for corporations, manipulated by relieving themselves of that messy old habit of actually making things and, in place of that, dealing exclusively in the branding of things once was called cattle-rustling instead of merger.

Branding, without owning a herd, was a hanging offense in more sensible times.

A case in point is Larry Summers’ more-than-excellent assessment of the current rush to bail out Freddie Mac and Fannie Mae, so that investors will not lose confidence.

Unfinished Business at Freddie and Fannie--What the Government Should Do if the Housing Giants Can't Stand on Their Own (By Lawrence Summers, July 28, 2008)

Anyone who cares about the health of the U.S. economy should welcome the enactment of the Treasury's rescue plan for Fannie Mae and Freddie Mac, along with other measures to support the housing market. While there is room for argument about details, the risks to the financial system were too great to allow delay.

OK, Larry, maybe I agree with the premise, ‘cause you’re a guy with street-cred, at least on Wall Street. Go on.

No one should suppose, however, that the issue is satisfactorily resolved, even for the short term. Emergency legislation was necessary because market participants were unwilling to buy Fannie and Freddie's debt; investors doubted that the government-sponsored enterprises, or GSEs, were healthy enough to repay . . . If their (Fannie-Freddie) debt proves easier to place now, it is only because this guarantee has been strengthened, not because anything has