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.
(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:
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.
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.
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.
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.
A changing of the guard, in the form of General
Petraeus handing over the keys to General Odiermo, presages by a couple months
the changing of the guard in American politics. No one can really know, in
either case, what the outcome will be and/or whether it will be good for the
nation.
My gut tells me we have been on the wrong side of
strategic decisions from the get-go, because our president and vice-president
saw this as an awarding of democracy,
rather than a Yugoslav style imbroglio. Strong-men (as heads of state) leave
bitter rivalries and we need not look to dictatorships for example. Our own
near-shattered civic condition is the result of a near-dictatorship on the
national political scene.
Or not. We tend to see things as we would see them
instead of as they are, especially from the outside of cultures, the inside of
which we know very little. My personal
view, standing bravely in opposition to my president and his four-star general,
is that violence has gone down in Iraq because it suits the purposes of the
Sunni population to get us the hell out so they can climb back in the saddle.
We were desperate to show progress—any kind of progress to slow the troop
deaths and injuries. Those were described as ‘insurgent attacks,’ because it was politically untenable to call
them what they were. What they were was the Sunni army (which we had sent home and
pauperized) showing their anger at being sent home and pauperized. Additional
anger accrued to street hatreds against the new guys in power—those Islamists
who followed a different rightly-guided
caliph fourteen centuries ago.
In order to satisfy our desperation for progress, we
didn’t actually make progress, but redefined the enemy instead. A paper-victory
worthy of a paper-tiger. We took the guys from the streets that were bombing
us, renamed them Awakening Councils,
armed them to the teeth and suddenly they were no longer counted as insurgents,
but became partners against al Qaeda.
No wonder deaths went down, we partnered
with the insurgency. That’s an easy thing to do when you don’t actually
have a definition of al Qaeda forces and can move them around at will on the
chessboard that the Middle East has become.
Now, of course, we’re using that lessening of
violence to draw down our troops. We got into this war on false pretenses and
are planning to get out by sleight of hand as well. Petraeus is leaving for a
promotion. Odiermo is going to oversee our orderly withdrawal, everyone
stateside will breathe a sigh of relief, the troops are going to Afghanistan
and the fragile Iraqi coalition government is going to get its ass handed to
it.
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.
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.
Singh has an interesting take on comity (an atmosphere
of harmony, mutual civility and respect). Sign
the treaties, Manmohan.
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.
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.
We are not a fearful nation, nor (if we reject
Michael Chertoff’s continuing effort to scare us to death) will we become one.
That said, we are certainly and willingly Balkanizing ourselves, dividing a previously United States
into a rag-tag and very unAmerican obsession with what are essentially ghosts
under the bed.
Derby Line has peacefully coexisted somehow with its
American-Canadian divisions and friendships since 1791. The War of 1812 with
Britain caused hardly a ripple of dissatisfaction among American and Canadian
neighbors who shared church, the watching of kids and celebration of inter-marriages. The U.S.
invaded Canada in that ill-begotten war, but apparently not at Derby Line.
Washington, D.C. burned (partially) to the ground, but the New England area
kept up a brisk trade with Canada throughout.
It’s not an accident that the line runs down the floor of the
library, bisecting it’s reading-room.
Well, the stirring up of hatreds is an initial and
necessary step toward fascism. Too strong a word? That’s because you and I and
most Americans and Canadians have been used to hearing it applied to Hitler’s
Germany or Italy’s Mussolini. Calm yourself for a moment before writing me a
hot reply about the necessity of
protecting our cities. Look up fascism. The definition is: (noun) a political theory advocating an
authoritarian hierarchical government (as opposed to democracy or liberalism).
Fits pretty well.
I would submit that we only live in a different
world if we elect to live in one. To allow 19 terrorists in hijacked aircraft
to change our very form of government and constitutionally protected civil freedoms
of movement and protection from unwarranted inquiry is to have already
abandoned the game to the enemy.
The nations of the world, who once looked our way with
hope and envy, now see us as disturbers of the peace. Disturbing the peace (the unsettling of proper order in a public
space through one's actions) is an American misdemeanor that is about to become
(if we continue to let it) a felony against the civilized world.
Bush and Chertoff? Cheney and Addington? Rumsfeld
and Gonzales? Are these the statesmen to whom we offer up our Founder’s
sacrifice? These rank politicians risk nothing of personal
wealth and power. Washington, Jefferson and their peers risked the very real probability that they would be tried for
treason and hanged, their fortunes confiscated. Not possibility--probability.
No Fernando, actually it’s your being there at all that is devastating to the country. You have
already been wrong a number of times, wrong to intervene in small border
villages, wrong to cut the streets of that village in half, wrong to disturb
the peace along the longest unmilitarized border in the world, wrong to institutionalize
what should be low-tech police work.
Confusing the means and the ends. Sounds right. Ability to do outrunning the reason to do. That, when you sit down,
shut off the TV and put your feet up, feels right as well. Guided missiles and
misguided men. Bingo, Martin. And for that and the other truths of your
illuminated life, they assassinated you.
As may be apparent from the title, I am going to
make comparisons to the early years of Hitler Germany, when he demanded and took
various powers by entirely legal and democratic methods. Hitler ended up a
dictator, but he was enabled to that ultimate goal by a population
terrified by an economic maelstrom and the ever growing lawlessness across Germany.
The Holocaust has taken Nazi Germany as ‘off the
table’ of political discussion as Nancy Pelosi’s unilateral removal of
impeachment and perhaps for similar reasons; sensitivity. It’s just too
divisive, says Nancy, as though we were frightened children needing to hide our
faces in her skirt. Never again, say the Israelis, as 800,000 Rwandans are
massacred and Stalin kills (by some estimates) 25 million of his own people,
Mao another 35 million and the carnage goes on, uncompared.
Comparison? We are denied comparison as well. Nazi,
has been made yet another N-word; unspeakable in polite society and therefore far more dangerous
to our civil rights and the lessons history has to teach. Author Aldous Huxley cautioned
us that "Facts do not cease to exist because they are ignored"
With Germanic precision, Bush’s Department of
Homeland Security has put the nation’s police departments on the
intravenous-drip of federal money. Did you ever suspect that one day America
would be called a Homeland. Did you ever in your most Orwellian dream believe
that Americans would stand for that? Not only stand for it, but wave the flag? 
Bush, while still president
(and, in his own mind, still able to preside by decree) will absolutely protect
Cheney, Addington, Rumsfeld, Rice and whatever smaller fish threaten to fall into the nets of American
justice.
America has already been scared half to
death in preparation, but Blackwater stands ready to ‘assist’ local police,
should there be any ‘outbreaks of terrorist activity.’ New Orleans was the prep event.
Allowed
to target
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.