Guilt

I am guilty,

But not in the way you think.

I should have earlier recognized my duty;

I should have more sharply called evil evil;

I reined in my judgment too long.

I did warn,

But not enough, and clear;

And today I know what I was guilty of.

Albrecht Haushofer

PBS News Hour

A Mythical Anniversary

June 18, 2012, 3:34 pm

I tried to knock down the simply insane conventional wisdom then gelling among Very Serious People. Intellectually it was, I think I can say without false modesty, a huge win; I (and those of like mind) have been right about everything.

But I had no success in deflecting the terrible wrong turn in policy. Moreover, as far as I can tell none of the people responsible for that wrong turn has paid any price, not even in reputation; they’re still regarded as Very Serious, treated with great deference.

Rachel Maddow

Myths of Austerity

Published: July 1, 2010

When I was young and naïve, I believed that important people took positions based on careful consideration of the options. Now I know better. Much of what Serious People believe rests on prejudices, not analysis. And these prejudices are subject to fads and fashions.

…

This conventional wisdom isn’t based on either evidence or careful analysis. Instead, it rests on what we might charitably call sheer speculation, and less charitably call figments of the policy elite’s imagination – specifically, on belief in what I’ve come to think of as the invisible bond vigilante and the confidence fairy.

…

So the next time you hear serious-sounding people explaining the need for fiscal austerity, try to parse their argument. Almost surely, you’ll discover that what sounds like hardheaded realism actually rests on a foundation of fantasy, on the belief that invisible vigilantes will punish us if we’re bad and the confidence fairy will reward us if we’re good.

Colbert Report

Interest Rates: Varieties of Error

June 19, 2012, 8:57 am

Originally, claims that deficits would drive up rates weren’t based on arguments about solvency; they were based on the “crowding out” claim that the government would be competing with the private sector for a limited supply of savings. Then, when the promised rate spike failed to materialize, this was attributed to Fed purchases, with the claim that rates would spike when those came to an end. Wrong, and wrong again. As I wrote at the time, all this represented a basic misunderstanding of how the economy works.

Now, maybe there’s a solvency issue, and bond vigilantes will turn on America over that – although of course this keeps not happening either to us or to anyone else with their own currency. But you do need to know that many of the people making the solvency argument originally made a completely different argument – one that was completely wrong.

To make a long story short I once got assigned to cater a volunteer party out of the otherwise discardable leftovers from the rentier crowd.

Once that was done I swore I’d never eat slave food again.

You may know it as the 24 hours of Le Mans.  Held on the Circuit de la Sarthe, cars cover the 8.5 mile laps in about 3:30.

From a racing standpoint it’s kind of like a longer, duller Formula One where faster cars pile up huge time advantages.  In endurance this tends to be evened out by mechanical failures and accidents.

There are 4 main classes of cars on the same track at once, Prototype 1 and 2 and Touring 1 and 2.  Cars are required to be able to accept a passenger seat, but not to actually carry one.

This year most of the interest is in GP1 where there are 3 distinct types participating.  The first is the returning champions, the Audi Quattro Diesels.  Conventionally turbo charged.  The second is the Toyota Diesel/Electric hybrid. This car is appearing one year early on an accelerated development schedule to mark Toyota’s recovery from the 2011 Tsunami.  The third is an Audi Quattro Diesel/Electric hybrid.

Between the 2 hybrids the Toyota is clearly the superior design (though The New York Times disagrees).  It uses its electric motors to drive the rear tires through the regular transmission.  The Audi on the other hand is a front wheel drive with separate drive shafts that increase mechanical complexity and drag.

Racing in its own class is the Nissan DeltaWing which looks much faster than it drives, qualifying at the tail end of the GP2 pack.  Touring 1 (Pro) will be a 3 way contest between Ferrari, Aston Martin, and Corvette.  Touring 2 (Am) is dominated by Porsche 911s.

Coverage on Speed will be continuous until the conclusion except for a 90 minute break at 1 pm for Turn Left and 30 minutes at 7 pm for Speed Center.

Not that it’s a reliable source.

How I Became Stephen Colbert’s Lawyer — And Joined the Fight to Rescue Our Democracy from Citizens United

Trevor Potter, Alternet

May 25, 2012

The Colbert Report coverage is so successful because it accurately describes a campaign finance world that seems too surreal to be true.  A system that claims to require disclosure of money spent to elect or defeat candidates, but in fact provides so many ways around that requirement as to make disclosure optional; a system that says that “independent expenditures” cannot be limited as a matter of Constitutional law because they cannot corrupt because they are “totally independent” of candidates and parties-when the daily news reports about these supposedly “independent” groups show that candidates raise money for them, candidates’ former employees run them, and candidates’ polling and advertising vendors advise them.  And the major donors to these “independent” groups are often also official fundraisers for the candidate.  Other major donors have private meetings with the candidates, or travel with them on campaign trips!

…

How did we get here? It is often forgotten, but for long periods of the previous Century, we had a pretty well functioning campaign finance system.  In 1904 President Roosevelt called for public funding of the political parties, and a ban on corporate contributions.  In 1907 he got one of those with the passage of the Tillman Act, which banned corporate contributions in federal elections, Congress extended contribution and expenditure restrictions to unions in 1947, and rewrote the laws following Watergate to ensure disclosure, set new individual contribution limits to candidates and parties, and create for the first time a public funding system for presidential elections and establish the FEC as an enforcement and disclosure agency.

…

In the last two years, the Supreme Court has allowed unlimited corporate and labor spending in all elections in the U.S., overturning 60 year old federal laws and some older laws in 26 states.  It has declared unconstitutional as a restriction on speech the Arizona public financing system, because it provided additional public funds for more speech to candidates participating in the public funding system, triggered if their opponents spent that amount. The DC Circuit has declared unconstitutional the longstanding $5,000 contribution limit to independent-expenditure only political action committees, which decision has resulted in the creation of what we know as SuperPACs-like Stephen Colbert’s Americans for a Better Tomorrow, Tomorrow.

David Brooks, The Follower Problem, The New York Times

You know, we always called each other goodfellas. Like you said to, uh, somebody, “You’re gonna like this guy. He’s all right. He’s a good fella. He’s one of us.” You understand? We were goodfellas. Wiseguys. But Jimmy and I could never be made because we had Irish blood. It didn’t even matter that my mother was Sicilian. To become a member of a crew you’ve got to be one hundred per cent Italian so they can trace all your relatives back to the old country. See, it’s the highest honor they can give you. It means you belong to a family and crew. It means that nobody can fuck around with you. It also means you could fuck around with anybody just as long as they aren’t also a member. It’s like a license to steal. It’s a license to do anything.

The Ancien Régime

Luke Russert, nepotist prince

Luke Russert is being groomed as a simulacrum of his father — but without the inspiring rags-to-riches story

By Alex Pareene, Salon

Thursday, May 24, 2012 11:35 AM EDT

Tim Russert was not the unalloyed saint of tough journalism that his celebrators describe in posthumous tributes, but he was at least a classic American success story, of the sort that we still enjoy pretending is common: Blue-collar kid from Rust Belt town becomes enormously successful thanks largely to brains and hard work. The story of Luke Russert, alas, is a much more common one in American life: No-account kid of successful person has more success thrust upon him.

Pretty much immediately upon the death of his father, Luke Russert inexplicably had a full-time broadcasting job, supplanting his part-time broadcasting job co-hosting a satellite radio sports talk show with James Carville. (That was a real thing that actually existed. Can you imagine a human who would want to listen to that?)

Russert isn’t the only famous child in media. He isn’t even the only famous child at NBC, which also employs Jenna Bush Hager and Chelsea Clinton (who renewed her three-month temporary contract earlier this year, despite barely producing any work for the network). Fox has Peter Doocy, Chris Wallace and, here in New York, Greg Kelly. ABC has Chris Cuomo, and CNN Anderson Cooper. A.G. Sulzberger is a reporter for the New York Times. Some of those people are fine journalists, by the way. Nepotism has always been a major force in journalism and media – it is a fact of life and one that would be exhausting to be continually het up about – and plenty of nepotism beneficiaries are wonderful writers and talented people. If you’re raised by interesting people and get a good education at home and at the finest schools, you really ought to turn out pretty smart. But Russert is emblematic of the sort of nepotism that gives nepotism a bad name. He’s not a wonderful writer or a particularly talented person. And unlike Chelsea Clinton and her very silly “reporting good news about people who do charity or something” beat, he’s actually got a real journalism job that someone else without the name Russert could be doing much more effectively. He’s not even particularly good on TV.

You mean, let me understand this, ’cause, ya know maybe it’s me, I’m a little fucked up maybe, but I’m funny how? I mean funny like I’m a clown? I amuse you? I make you laugh, I’m here to fuckin’ amuse you? What do you mean funny? Funny how? How am I funny?

Sometimes called Realpolitik (use your best Henry Killinger accent)-

Let’s Talk Turkey About Greece

Ian Welsh

2012 May 26

Greece is going to have get hardcore and creative about creating a new economy.  Since the monetary authorities intend to starve them and deprive them of oil, they must retaliate hard.  Greece has a number of options, and this is what Greece should do You don’t play nice with people who are trying to cause a famine in your country.

• Greece has a large fleet.  Use it to strip mine the Mediterranean of all resources possible.  Yes, the Med is a fragile ecosystem.  If the other Euros don’t like it, they can not punish Greece, otherwise Greece will have to feed itself.  The Euros could send fleets, but as the British-Iceland fishing war proved, that’s prohibitively expensive.
• Start gun-running and other black market activities up.  European gun-running currently goes through Albania.  Greece has much better ports.  If the Euros don’t like it, they can militarize Greece’s borders at a cost much higher than feeding the Greeks.
• Become a full on black-hole for banking.  If anyone wants to store money in Greece, they can.  No questions asked, no forms needed.
• Make deals with other “pariah” and semi-pariah nations.  Start with Iran and Russia for oil (Iran will be happy to give oil in exchange for black market help).  Make a deal with various 2nd world nations for food, start with Argentina, they have no reason to love the IMF or the European Union, which promised to “punish” them for nationalizing oil in Argentina.  In exchange Greece can offer use of their fleet, for cheap, and port rights for the Russian navy.  They’ve wanted a true warm water port for some time.  Offer them a nice island in the Med with a 30 year lease.
• Hold on for a couple years.  Odds are that soon enough Ireland, Spain, Portugal and maybe others will leave the Euro.  They won’t be in any mood to screw Greece for their ex-Euro masters.  Heck, odds are 50/50 that there won’t be a Euro zone at all in 3 years, since Germany wants to screw everyone, including France.
• Nationalize basically every industry.  It’s unfortunate, but it’s going to be necessary.  Hundreds of billions of dollars have fled Greece in the past 3 years, in fact that was one of the main reasons for dragging out the “bailouts” (really, bailouts of German banks), to let the money flee.  All Greek assets are going to be frozen overseas, so the Greeks will need to work with what they have.
• No more money goes out of the country.  Slap on currency controls, to make sure what money is there doesn’t leave (this is aimed at Greece’s rich).  If any banker or anyone else circumvents them, throw them in jail, the sentence should be life, generous, since they are committing treason.
• Seriously change the tax system, and insist on really taxing the rich.  Go to heavily progressive taxation, reduce the burden on the poor (a large number of people now), this will buy support.
• A food rationing system, with cards and delivery to every person in the country will be necessary.  It won’t be fun, but combined with the above, you can make sure that no one starves.

Greece has been under siege for years now, and traitors within its own country (its politicians) have betrayed it.  This means Greeks are in serious danger of suffering a famine.  The response to that, by Greeks, will have to be pragmatic and severe.  If non-Greeks don’t like it, that’s too bad.  When millions of people are in danger of starving, a country does what it has to.

What does it say about a president’s policies when he uses a cartoon character, rather than a real person, to justify his record?

And don’t you dare ever say so!

Warrantless spying fight

Obama officials demand full, reform-free renewal of the once-controversial power to eavesdrop without warrants

By Glenn Greenwald, Salon

Thursday, May 24, 2012 09:37 AM EDT

In 2006, The New York Times’ James Risen and Eric Lichtblau won the Pulitzer Prize for their December, 2005 article revealing that the Bush administration was eavesdropping on the electronic communications of Americans without the warrants required by the FISA law (headline: “Officials Say U.S. Wiretaps Exceeded Law”). Even though multiple federal judges eventually ruled the program illegal, that scandal generated no accountability of any kind for two reasons:

(1) federal courts ultimately accepted the arguments of the Bush and Obama DOJs that the legality of Bush’s domestic spying program should not be judicially reviewed; and

(2) the Democratic-led Congress, in 2008, enacted the Bush-designed FISA Amendments Act, which not only retroactively immunized the nation’s telecom giants for their illegal participation in that spying program and thus terminated pending lawsuits, but worse, also legalized the vast bulk of the Bush spying program by vesting vast new powers in the U.S. Government to eavesdrop without warrants (in his memoir, President Bush gleefully recounted that the 2008 eavesdropping bill supported by the Democrats gave him more than he ever expected).

It was then-Sen. Obama’s vote in favor of the FISA Amendments Act that caused the first serious Election Year rift between him and his own supporters. Obama’s vote in favor of the bill was so controversial for two independent reasons:

(1) when he was seeking the Democratic nomination only a few months earlier and needed the support of the progressive base, Obama unequivocally vowed to filibuster “any bill that includes retroactive immunity for telecommunications companies,” only to turn around once he had secured the nomination and not only vote against a filibuster of that bill but then vote in favor of the bill itself; and

(2) the bill itself legalized vast new powers of warrantless eavesdropping: powers which the Democratic Party (and Obama) had spent years denouncing (as Yale Law Professor Jack Balkin put it at the time: “Through the FISA Amendments Act of 2008, Congress has legitimated many of the same things people are now complaining about”).

When Obama announced his reversal, his defenders insisted he was only doing it so that he could win the election and then use his power as President to stop warrantless eavesdropping abuses, while Obama himself claimed he voted for the FISA bill “with the firm intention – once I’m sworn in as President – to have my Attorney General conduct a comprehensive review of all our surveillance programs, and to make further recommendations on any steps needed to preserve civil liberties and to prevent executive branch abuse in the future.”

The only positive aspect of the FISA Amendments Act of 2008 was that Congress imposed a four-year sunset provision on the new warrantless eavesdropping powers it authorized. That sunset provision is set to expire and – surprise, surprise – the Obama administration, just like it did for the Patriot Act, is demanding its full-scale renewal without a single change or reform.

Of course he’ll be better and more courageous and “progressive” when he never has to face voters again.

It’s all about you.

It’s all about me.

SEC: Taking on Big Firms is ‘Tempting,’ But We Prefer Whaling on Little Guys

Matt Taibbi, Rolling Stone

May 30, 11:23 AM ET

Want an example of the S.E.C.’s idea of “shot selection”? Every year, a parade of itty-bitty failed public companies lets their paperwork lapse. Dead little companies sitting in the bureaucratic atmosphere doing nothing at all are a major threat to national security, of course, so the S.E.C. flies in to the rescue and feverishly revokes their registrations.

These actions are called “12(j) registration revocations,” and the beauty of them, from the S.E.C.’s point of view, is that it can list each one of those revocations as a separate enforcement action, when it goes before Congress at the end of every year to brag about all the good work it’s done.

Therefore toward the end of every calendar year, you’ll see a rush of these 12(j) revocations. In 2011, about one out of every six S.E.C. enforcement actions – 121 out of 735 (.pdf) – involved these delinquent filings. In the stats they submit to Congress, they list these cases right next to things like market manipulation, insider trading, and financial fraud. “The S.E.C. Enforcement staff takes 10 minutes and shoots a zombie company in the head and then has the guts to call it enforcement,” is how one attorney put it to me.

Just days after 60 Minutes ran its piece last year about the epidemic of unprosecuted fraud on Wall Street, the S.E.C. charged into action. Take a look at the dates on these two (.pdf) documents (.pdf). While Chase’s “London Whale” was preparing to play billion-dollar faro with federally-insured money and MF Global was still struggling to find its “misplaced” $1.6 billion in customer money, the S.E.C. was gallantly taking on the likes of A.J. Ross Logistics, Inc., Status Game Corp., and Fightersoft Multimedia Corporation. And bragging to Congress about its conquests. It’s as clear a case of juking the stats as you’ll ever see.

Your tax dollars at work.