Tag: ek Politics

Inside the End of the U.S. Bid to Punish Lehman Executives

By BEN PROTESS and SUSANNE CRAIG, The New York Times

September 8, 2013, 8:57 pm

The Securities and Exchange Commission’s eight-member Lehman Brothers team, having hit one dead end after another over the previous two years, concluded that suing the bank’s executives would be legally unjustified. The group, noting that prosecutors and F.B.I. agents had already walked away from a parallel criminal case, reached unanimous agreement to close its most prominent investigation stemming from the financial crisis, according to officials who attended the meeting, which has not been reported previously.

But Mary L. Schapiro, the S.E.C. chairwoman, disagreed. She pushed George S. Canellos, who supervised the Lehman investigation as head of the S.E.C.’s New York office, to explain how executives who presided over the biggest bankruptcy in United States history could escape without a single civil charge.

“I don’t get it,” she said during a tense exchange with Mr. Canellos in her private conference room in Washington, according to the officials, who were not authorized to speak publicly. “Why is there no case?” she continued, staring at Mr. Canellos, instructing him to continue investigating whether Lehman misled investors. “The world won’t understand.”

She was right. Five years after Lehman’s collapse hastened a worldwide economic panic, the government faces lingering questions about the decision to spare executives like Richard S. Fuld Jr., who ran Lehman for 14 years until its demise. Not a single senior executive from any Wall Street bank faced criminal charges from the crisis, either. And the government’s deadline for filing most charges will expire this month, the anniversary of Lehman’s collapse, providing a reminder of the case and its unpopular outcome.

…

The S.E.C. quietly reached the decision in 2012 after officials sparred for months over whether Lehman omitted “material” information in disclosures to investors, an important legal standard. Mr. Canellos argued that the omissions were not material. And those who questioned that reasoning – like Ms. Schapiro, as well as some accountants and enforcement officials – acquiesced to Mr. Canellos’s team, which was closest to the evidence.

The S.E.C. also debated the culpability of top Lehman executives. But Mr. Canellos’s team argued that Mr. Fuld did not know that Lehman was using questionable accounting practices despite testimony from another Lehman executive that suggested otherwise. Ms. Schapiro did not override his judgment after S.E.C. officials cautioned her that it could be unethical for a political appointee like herself to do so. Mr. Canellos also had the backing of Robert S. Khuzami, who ran the S.E.C.’s enforcement unit at the time.

…

The S.E.C.’s decision came in stark contrast to a report by Lehman’s bankruptcy-court examiner, who accused executives of using an accounting gimmick to “manipulate” the balance sheet.

“There were many instances where the S.E.C. had information and didn’t act,” the examiner, Anton R. Valukas, a former federal prosecutor who is now chairman of Jenner & Block, said in an interview.

…

In his report on Lehman’s failure, a rebuke that spanned more than 2,200 pages, Mr. Valukas, the bankruptcy-court examiner, outlined accounting maneuvers that he called “balance sheet manipulation.”

The practice allowed Lehman to transfer securities off its balance sheet, presenting them as collateral to an outside lender, which in turn offered Lehman a short-term loan. Lehman treated the transactions as sales rather than as debt, which meant the firm looked as if it had less debt than it actually did. “Unable to find a United States law firm” to approve the maneuver, Mr. Valukas said, Lehman hired a law firm in London to bless it.

…

Lehman highlighted the reduction in a public earnings call but never disclosed that it partly stemmed from Repo 105. As such, Mr. Valukas outlined possible civil claims against Mr. Fuld and his chief financial officers, including Erin Callan, who was the C.F.O. during much of the year in which Lehman collapsed. Mr. Fuld, he said, was “at least grossly negligent” for allowing Lehman to make “materially misleading” statements about the firm’s health.

The Valukas report, released in March 2010, appeared to provide a road map for the federal investigation into Lehman executives. But soon after its release, according to the officials involved in the inquiry, prosecutors and the F.B.I. lost interest in the case. They discovered that Repo 105 had nothing to do with Lehman’s failure and was technically allowed under an obscure accounting rule. Noting that London lawyers had approved Repo 105, prosecutors in Manhattan also worried they could not prove that executives intended to mislead investors.

…

Mr. Canellos, a former federal prosecutor who is now the co-head of the S.E.C.’s enforcement unit, did not budge. Despite the political pressure, he told colleagues at one of the meetings, they could not bring a case if the evidence was lacking.

“Our job is to seek justice,” he said.

Not with a Bang but a Whimper – the SEC Enforcement Team’s Propaganda Campaign

Bill Black, Naked Capitalism

Monday, September 9, 2013

The New York Times has one of those “inside” stories that unintentionally demonstrate the collapse of justice and financial reporting. This genre involves the media reporting gravely (and uncritically) the administration’s claims that its failure to prosecute any elite for the largest and most destructive financial frauds in history actually demonstrates the exceptional ethical rectitude of the non-prosecutors and non-enforcers. Journalists, unlike alchemists, can transmute dross into gold. In the NYT’s account a pathetic failure of competence, integrity, and courage at the SEC is reimagined as a fantastic triumph of vigor and ethics on the part of the SEC enforcement attorney who refused to seek to hold Lehman’s senior officers accountable for their violations but otherwise became the scourge of elite frauds. In the end, he is promoted for his dedication to “justice” and is now the anti-enforcement leader of the SEC’s enforcement group.

“Justice” became an oxymoron in the Bush and Obama administration. It now means that the elite frauds that became wealthy through their crimes that drove our financial crisis should enjoy de facto immunity from prosecution. The NYT, however, pictures the SEC as an ultra-aggressive enforcer that virtually never fails to take on the elite CEOs leading the control frauds. The entire piece is one extended leak by the SEC’s enforcement leadership which has been severely criticized for its failure to recover the fraudulent profits that elite Wall Street bankers obtained by running the control frauds.

…

The pattern of SEC action with regard to elite banks and elite fraudulent bankers demonstrates that they are treated far differently than smaller, non-financial corporations. (Note that this ignores the most important differences – the elite banksters’ frauds are far less likely to be investigated or sued by the SEC and enjoy de facto immunity from prosecution.) The Stanford study does not include cases that the SEC failed to investigate or bring.)

The controlling officers of firms, not the corporation, make decisions. They are happy to trade off penalties that will be paid by the firm. Those penalties sound large but they merely represent the modest cost of doing fraudulent business to ensure that the controlling officers escape individual accountability. The SEC can only achieve deterrence and take the profit out of elite fraud by making the criminal referrals and conducting the investigations that convict senior officers of felonies for their frauds and by recovering all of the officers’ fraudulent proceeds.

The SEC data demonstrate its epic failure in preventing the current crisis (the SEC was useless) and deterring future crises (the SEC leaves the fraudulent wealthy officers immensely wealthy). The SEC has tried to bring enforcement actions against the senior officers of only three of the elite financial institutions (banks). It has sued twelve senior officers of those three banks (or four if we depart from the SEC’s practice and call Fannie and Freddie different cases). It’s biggest “success” left the former CEO of Countrywide with virtually all of the vast wealth that the SEC claims to be the product of fraud. It obtained $80,000 (also almost certainly paid by an insurer) from the CEO of IndyMac, the largest fraudulent seller of fraudulent mortgage loans. That is it for the senior officers of the elite banks whose frauds the SEC says drove the financial crisis.

The SEC, as always, focuses its enforcement on non-elite corporations where it is far easier for its enforcers to rack up higher numbers of “successes.” The “66 senior” individual defendants were overwhelmingly employed by non-elite banks. The SEC’s own data demonstrate that it is a paper tiger when it comes to the elite banksters who grew wealthy by leading the frauds that caused the mortgage fraud crisis.

Obama on the Verge of Being Handed a Major Defeat on Syria

Yves Smith, Naked Capitalism

Thursday, September 5, 2013

Other writers have covered in gory detail how the US insistence that it has proof that Assad was behind the chemical attacks looks like a not-sufficiently-improved version of the Iraq WMD playbook. Nothing from the Administration in the last 48 hours has dented these critics’ case. Indeed, one has to wonder as to why the US is trying to pre-empt UN evidence-gathering and analysis. Might it be that it would finger the rebels, as in the folks the US has been funding? Are we prepared to go after them if they were the ones who crossed Obama’s red line?

But what is relevant right now is not what actually happened in Syria (why should we trouble ourselves with pesky details?) but that, as Lambert put it, the imperial reality-creating machine is starting to break down before our eyes. Since I am trying to minimize time on the Web this week (I am still in theory on vacation), it would have been easy to have been snookered by the news stories of the day: Boehner agrees to support Obama on Syria! Senate Foreign Relations Committee passes resolution authorizing an American strike on Syria! Both houses are falling into line, so resign yourself to more Middle Eastern misadventures.

Reports from inside the Beltway give a very different picture. The Senate Foreign Relations Committee passed the authorization resolution with weak support, a 10-7-1 vote. This sends a message to the Senate that even some hawks are loath to throw their weight behind it. By contrast, with the Amash amendment (the amendment attached to a Defense Department funding bill that would have curbed the NSA), the House leadership of both parties were resoundingly opposed, and current and former military and intelligence officials sounded dire warnings as to all the terrible things that would happen if the resolution passed.

…

ThinkProgress’ House whip count as of the end of Wednesday broke down with 47 members of the House as firm or inclined to a yes vote, 187 firm or inclined to a no vote, and 220 unknown or undecided. Firedoglake comes up with a broadly similar picture: 55 firmly or inclined to a yes, 155 firmly or inclined to a negative vote. One of my Congressional sources says based on his conversations with Republicans he is pretty certain the Administration will be forced to withdraw the resolution or postpone a vote in the House.

…

This vote is turning out to be another TARP-type watershed, with the public virtually unified in its opposition (calls to Congresscrittters are reportedly running well over 90% against intervention). And remember, it took a market swan dive, a second TARP vote, and the additional of lots of pork to reverse the initial vote. But also bear in mind that the reason TARP was initially voted down was the barrage of voter phone calls and e-mails against it, reportedly 99% opposed until financial services firms started getting employees to call in favor of the bill, which shifted the tally to a mere 80% or so of callers opposed. So if you have not called or written your Congresscritters, be sure to do so pronto.

France won’t attack Syria if U.S. doesn’t, prime minister tells his Senate

By Matthew Schofield, McClatchy Foreign Staff

Wednesday, September 4, 2013

French leaders warned Wednesday that failing to respond to the alleged use of chemical weapons by the Syrian government would send a dangerous signal to the dictators of the world.

But French Prime Minister Jean-Marc Ayrault also said that his country would not launch a retaliatory strike on Syria if the United States decides not to do so.

“France will not act without U.S. support,” he told his country’s Senate as France’s Parliament began to debate whether the country should take military action to punish the government of President Bashar Assad for a chemical weapons attack that the U.S. and France claim his forces launched on Damascus suburbs Aug. 21.

…

Just hours before the French discussion of a response began, Russian President Vladimir Putin, who’s consistently rejected the notion that Assad’s government used chemical weapons, seemed to open the door for possible Russian participation in a strike, telling a television interviewer that “if it is proven the government was behind the attacks, there will be a reaction.”

…

“My question is what will be the U.S. reaction if the evidence shows that the rebels were behind the use of chemical weapons?” he asked. “Will the U.S. stop providing the rebellion with weapons in that case?”

…

The leader of the primary opposition party in the French Senate warned, however, that any action without a United Nations mandate carried the risk of isolating France. Christian Jacob, the head of the center-right Union for Popular Movement, the party of former President Nicolas Sarkozy, warned of “similarities with Iraq” in the run-up to any Syrian attack, saying there was no U.N. consensus and that the intelligence on which the U.S. and France have made their case is less than definitive.

“Where are our allies?” he asked. “Where is the United Nations Security Council resolution?”

See, the more you think about delivering your overwhelming(? more on that later perhaps) military power the weaker you seem.  So the key is to be random and crazy!

Shut The Fuck Up.

To some, US case for Syrian gas attack, strike has too many holes

By Hannah Allam and Mark Seibel, McClatchy

September 2, 2013

The Obama administration’s public case for attacking Syria is riddled with inconsistencies and hinges mainly on circumstantial evidence, undermining U.S. efforts this week to build support at home and abroad for a punitive strike against Bashar Assad’s regime.

…

The Obama administration dismissed the value of a U.N. inspection team’s work by saying that the investigators arrived too late for the findings to be credible and wouldn’t provide any information the United State didn’t already have.

…

Experts say the evidence deteriorates over time, but that it’s simply untrue that there wouldn’t be any value in an investigation five days after an alleged attack. As a New York Times report noted, two human rights groups dispatched a forensics team to northern Iraq in 1992 and found trace evidence of sarin as well as mustard gas – four years after a chemical attack.

…

Anthony Cordesman, a former senior defense official who’s now with the Washington-based Center for Strategic and International Studies, took aim at the death toll discrepancies in an essay published Sunday.

He criticized Kerry as being “sandbagged into using an absurdly over-precise number” of 1,429, and noted that the number didn’t agree with either the British assessment of “at least 350 fatalities” or other Syrian opposition sources, namely the Syrian Observatory for Human Rights, which has confirmed 502 dead, including about 100 children and “tens” of rebel fighters, and has demanded that Kerry provide the names of the victims included in the U.S. tally.

“President Obama was then forced to round off the number at ‘well over 1,000 people’ – creating a mix of contradictions over the most basic facts,” Cordesman wrote. He added that the blunder was reminiscent of “the mistakes the U.S. made in preparing Secretary (Colin) Powell’s speech to the U.N. on Iraq in 2003.”

An unclassified version of a French intelligence report on Syria that was released Monday hardly cleared things up; France confirmed only 281 fatalities, though it more broadly agreed with the United States that the regime had used chemical weapons in the Aug. 21 attack.

Another eyebrow-raising administration claim was that U.S. intelligence had “collected streams of human, signals and geospatial intelligence” that showed the regime preparing for an attack three days before the event. The U.S. assessment says regime personnel were in an area known to be used to “mix chemical weapons, including sarin,” and that regime forces prepared for the Aug. 21 attack by putting on gas masks.

That claim raises two questions: Why didn’t the U.S. warn rebels about the impending attack and save hundreds of lives? And why did the administration keep mum about the suspicious activity when on at least one previous occasion U.S. officials have raised an international fuss when they observed similar actions?

On Dec. 3, 2012, after U.S. officials said they detected Syria mixing ingredients for chemical weapons, President Barack Obama repeated his warning to Assad that the use of such arms would be an unacceptable breach of the red line he’d imposed that summer. Then-Secretary of State Hillary Clinton chimed in, and the United Nations withdrew all nonessential staff from Syria.

Last month’s suspicious activity, however, wasn’t raised publicly until after the deadly attack. And Syrian opposition figures say the rebels weren’t warned in advance in order to protect civilians in the area.

…

Among chemical weapons experts and other analysts who’ve closely studied the Syrian battlefield, the main reservation about the U.S. claims is that there’s no understanding of the methodology behind the intelligence-gathering. They say that the evidence presented points to the use of some type of chemical agent, but say that there are still questions as to how the evidence was collected, the integrity of the chain of custody of such samples, and which laboratories were involved.

Eliot Higgins, a British chronicler of the Syrian civil war who writes the Brown Moses blog, a widely cited repository of information on the weapons observed on the Syrian battlefield, wrote a detailed post Monday listing photographs and videos that would seem to support U.S. claims that the Assad regime has possession of munitions that could be used to deliver chemical weapons. But he wouldn’t make the leap.

On the blog, Higgins asked: “How do we know these are chemical weapons? That’s the thing, we don’t. As I’ve said all along, these are munitions linked to alleged chemical attacks, not chemical munitions used in chemical attacks. It’s ultimately up to the U.N. to confirm if chemical weapons were used.”

Obama’s proposal seeks broad war power despite vow of limits

By Michael Doyle, McClatchy

Sunday, September 1, 2013

While President Barack Obama insists he wants only a limited air attack on Syria, his proposed authorization of force would empower him to do much more than that. Congress is likely to impose tighter reins, as lawmakers have learned that presidents are prone to expand on powers once granted

The substantive part of Obama’s proposed authorization of the use of military force, conveyed to congressional leaders over the weekend, contains 172 words. That’s significantly more than either the 1964 Tonkin Gulf Resolution authorizing the Vietnam War or the 2001 resolution authorizing retaliation for the 9/11 terror attacks, two measures that later became notorious for how aggressively presidents used them.

The proposed resolution gives Obama a go-ahead to use the military as he “determines to be necessary and appropriate in connection with the use of chemical weapons or other weapons of mass destruction in the conflict in Syria.” Specifically, the president could act to “prevent or deter the use or proliferation” of the weapons or to “protect the United States and its allies and partners” from the weapons.”

Tellingly, University of Texas Law School Professor Robert Chesney said in an interview, Obama’s proposed authorization did not include a sunset date. Chesney suggested that “if the administration is serious about wanting to act in such a truly narrow, time-limited way,” then a sunset measure could be useful.

“These details may not matter much if all the president intends is a modest shot across the bow, as he suggested a few days ago,” said George Mason University School of Law Professor Ilya Somin Sunday. “But they could be significant if U.S. military intervention goes beyond that – including if it ends up expanding farther than the president may have originally intended.”

Publicly, Obama has repeatedly said that “we would not put boots on the ground.” His proposed authorization, though, did not limit the kinds of military forces that could be used. It also does not specify the forces against which force can be used.

…

If it passed the House and Senate, the authorization would meet the domestic U.S. requirements of the War Powers Resolution, as well as give the Obama administration some political cover. It would not, however, necessarily address international legal requirements.

“Unfortunately, the president’s draft (authorization) states a violation of international law in every line,” said Mary Ellen O’Connell, a University of Notre Dame law professor. “Resort to military force is not permitted to punish the use of banned weapons; to address arms proliferation, or to respond to vague threats to the United States.”

National self-defense or actions explicitly authorized by the United Nations’ Security Council are the only two kinds of military action acceptable under international law, O’Connell explained.

Lawmakers not optimistic Obama’s Syria plan will pass

By Michael A. Memoli, Kathleen Hennessey and Richard A. Serrano, Los Angeles Times

September 1, 2013, 9:24 p.m.

Members of Congress from across the political spectrum reacted with deep skepticism Sunday to President Obama’s bid for approval of strikes against Syria, with lawmakers raising doubts about whether a vote would succeed.

Few of the approximately 100 members of Congress who returned to Washington for a classified intelligence briefing Sunday said they would support the administration’s request to authorize the use of force, even though they showed little doubt that Syrian President Bashar Assad’s government was behind the alleged chemical weapons attack on Aug. 21.

The administration now appears to face a two-front battle to win the support of Congress, needing to convince skeptical representatives of a war-weary public on the one hand and more hawkish lawmakers seeking an even tougher response on the other. And it has just more than a week to do so.

“The administration better make a whale of a case or I think they’re very much in danger, certainly in the House, of losing this,” Rep. Tom Cole (R-Okla.) said.

…

“I can’t contemplate that the Congress would turn its back on all of that responsibility, and the fact that we would have in fact granted impunity to a ruthless dictator to continue to gas his people,” Kerry said on ABC’s “This Week.” “Those are the stakes. And I don’t believe the Congress will do that.”

But there were already indications that Congress could do just that.

Patrick J. Leahy (D-Vt.), the longest-serving member of the Senate, told reporters that the draft resolution sent to Congress on Saturday will be amended this week when senators begin to hold hearings on the issue, and that the Judiciary Committee he chairs has already begun working on alternative wording that would narrow the scope of the mission Congress would authorize.

“I will not support a blank check to go to war in Syria. But I will support a very narrowly drawn authorization for the specific purpose of deterring future chemical weapons use in Syria and other places around the world,” said Rep. Chris Van Hollen (D-Md.). “And I will certainly oppose efforts that seem to have been articulated by some people to actually broaden the mandate.”

US politicians sceptical as Obama administration puts case for Syria strike

Spencer Ackerman, The Guardian

Sunday 1 September 2013 19.31 EDT

A classified briefing was held on Capitol Hill on Sunday a few hours after Kerry made the rounds of all five Sunday talk shows in the US, mounting a strong defence of President Obama’s unexpected plan to allow Congress a vote on military action against the Syrian government.

Presented with the awkward scenario that Congress would not back Obama, Kerry stressed that the president had the power to act anyway. But Kerry said he was confident of a yes vote. “We don’t contemplate that the Congress is going to vote no,” Kerry told CNN.

As members of Congress emerged from the briefing, it was clear that the Obama administration could not be sure of the outcome of the president’s high-risk strategy. In particular, Obama could not count on his own party to deliver the votes. “I don’t know if every member of Congress is there yet,” said Representative Janice Hahn, a California Democrat who said she would vote no on authorising a military strike. “The room was sceptical,” said Jim Himes, a Connecticut Democrat.

…

At an emergency meeting in Cairo, the Arab League called on the United Nations and the international community to take “deterrent” measures under international law to stop the Syrian regime’s crimes, but could not agree on whether to back US military action. In their closing statement, Arab foreign ministers held the Assad regime responsible for the “heinous” chemical attack, saying the perpetrators should be tried before an international court “like other war criminals”.

…

Deeper involvement in the Syrian civil war has prompted reluctance within the US military to bless even a one-off military strike. General Martin Dempsey, the chairman of the joint chiefs of staff and a multi-tour veteran of Iraq, has voiced such fears for more than two years.

…

Senator Rand Paul, a libertarian Republican, put the chances of an authorisation vote in the House of Representatives at 50-50. “I think the Senate will rubber stamp what he wants but the House will be a much closer vote,” he told NBC.

Legislators estimated that between 100 and 150 members of Congress attended Sunday’s classified briefing in the basement of the US Capitol, representing approximately a fifth of the Senate and House.

…

Scott Rigell, a Virginia Republican, praised Obama for going to Congress, even as Rigell said he would not vote for the resolution. “What I wrestle with, and of course I am continuing to wrestle with this, is how do we define success and our objective, and a full understanding and consideration of the ramifications,” Rigell said.

Syria resolution will be ‘a very tough sell’ in Congress, lawmakers say

By Paul Kane and Ed O’Keefe, Washington Post

Published: September 1

Leading lawmakers dealt bipartisan rejection Sunday to President Obama’s request to strike Syrian military targets, saying the best hope for congressional approval would be to narrow the scope of the resolution.

From the Democratic dean of the Senate to tea party Republicans in their second terms, lawmakers said the White House’s initial request to use force against Syria will be rewritten in the coming days to try to shore up support in a skeptical Congress. But some veteran lawmakers expressed doubt that even the new use-of-force resolution would win approval, particularly in the House.

“I think it’s going to be a very tough sell,” said Rep. Tom Cole (Okla.), who is often a key crossover Republican in compromises with the White House. For now, Cole said he is “leaning no” on approving any use of force against Syria.

…

Aware of the growing bloc of Republican isolationists, senior GOP aides warned Sunday that a large number of Democrats will have to support the use-of-force resolution for it to have any chance. Advisers in both parties described the measure as a “vote of conscience” that House Speaker John A. Boehner (R-Ohio) and Minority Leader Nancy Pelosi (D-Calif.) will not be lobbying lawmakers to support.

Obama’s allies said the first order of business will be to work with the administration to redraft the resolution, which was sent to Capitol Hill on Saturday night and barely filled one page. It had no prescriptions for what type of military action could be carried out or its duration.

Sen. Patrick J. Leahy (D-Vt.), the dean of the Senate and chairman of the Judiciary Committee, told reporters that the resolution is “too open-ended” as written. “I know it will be amended in the Senate,” he said.

Sen. Pat Roberts (R-Kan.), a former chairman of the Intelligence Committee, said, “That has to be rectified, and they simply said in answer to that they would work with the Congress and try to come back with a more prescribed resolution.”

Rep. Chris Van Hollen (D-Md.), a former Senate staffer who inspected chemical weapons attacks by Saddam Hussein’s government against its own citizens in Iraq in the 1980s, said he will push to add language that would limit the length of the mission and prohibit putting U.S. troops on the ground in Syria.

Such provisions could gain support from lawmakers who want to rein in the Obama administration, without hampering the goals of the mission – which the president has said should be limited to missile strikes against military targets.

Hollande Pushed to Join U.S., U.K. in Taking Syria to Lawmakers

By Mark Deen, Bloomberg News

Sep 2, 2013 1:41 AM ET

President Francois Hollande faces increasing pressure to give France’s National Assembly a say in his Syrian policy as the U.S. Congress prepares to vote on approving a military strike against the Middle Eastern country.

…

“The French should be consulted through their representatives,” Bruno Le Maire, an opposition lawmaker and former agriculture minister, said yesterday on BFM television. “The risk today is that France becomes a puppet of decisions made in the U.S.”

…

About two-thirds of voters are against intervention in Syria, a BVA poll for Le Parisien newspaper showed. BVA interviewed 1,010 adults Aug. 29-30. The results have a margin of error of 2.5 percentage points.

…

Hollande, who as France’s commander-in-chief isn’t legally required to consult parliament, had already asked lawmakers to debate taking action against Syria. The debate is scheduled for Sept. 4.

“Since the president of the U.S. has decided to consult Congress, the French president should do the same and organize a formal vote in parliament after the debate,” former Energy Minister Jean-Louis Borloo said in a statement.

Trimmings for Labor Day

Robert Reich

Sunday, August 25, 2013

The good news this Labor Day: Jobs are returning. The bad news this Labor Day: Most of them pay lousy wages and low if non-existent benefits.

The trend toward lousy wages began before the Great Recession. According to a new report from the Economic Policy Institute, weak wage growth between 2000 and 2007, combined with wage losses for most workers since then, means that the bottom 60 percent of working Americans are earning less now than thirteen years ago.

This is also part of the explanation for why the percent of Americans living below the poverty line has been increasing even as the economy has started to recover – from 12.3 percent in 2006 to around 14 percent this year. More than 35 million Americans now live below the poverty line.

…

But wait a minute. Over this same period, productivity has grown by nearly 25 percent. That means the typical American worker is now producing a quarter more output than he or she did in 2000.

So if wages have flattened or declined for the bottom 60 percent, yet productivity has increased, where have the gains gone? Mostly, to corporations and the very rich.

…

Few of these workers are teenagers. Most have to support their families. According to the Bureau of Labor Statistics, the median age of fast-food workers is over 28; and women, who comprise two-thirds of the industry, are over 32. The median age of big-box retail workers is over 30. These workers typically bring in half their family’s earnings.

They deserve a raise.

At the very least, the minimum wage should be increased from the current $7.25 an hour to $10.50 – and to $15 in areas of the country with a higher cost of living. Had the federal minimum simply kept up with inflation from the late 1960s, it would already be well over $10 today.

…

Unlike industrial jobs, these sorts of retail service jobs can’t be outsourced abroad. Nor are they likely to be replaced by automated machinery and computers. The service these workers provide is personal and direct: Someone has to be on hand to help customers and dole out the burgers.

And don’t believe critics who say any wage gains these workers receive will be passed on to consumers in higher prices. Big-box retailers and fast-food chains have to compete intensely for consumers. They have no choice but to keep their prices low.

This means wage gains for low-paid workers are most likely to come out of profits – which, in turn, would slightly reduce returns to shareholders and compensation packages of top executives.

…

It would not be a tragedy if some of these shareholder returns and compensation packages had to be trimmed in order that low-wage workers at McDonald’s, KFC, and Walmart got a raise.

Indeed, if this nation is to reverse the scourge of widening inequality, such a trimming is necessary.

Glenn is one of our favorites and this piece is actually a pretty fair reflection of the current state of our temporarily postponed war of aggression on Syria.

Obama, Congress and Syria

Glenn Greenwald, The Guardian

Sunday 1 September 2013 07.01 EDT

It’s a potent sign of how low the American political bar is set that gratitude is expressed because a US president says he will ask Congress to vote before he starts bombing another country that is not attacking or threatening the US. That the US will not become involved in foreign wars of choice without the consent of the American people through their representatives Congress is a central mandate of the US Constitution, not some enlightened, progressive innovation of the 21st century. George Bush, of course, sought Congressional approval for the war in Iraq (though he did so only once it was clear that Congress would grant it: I vividly remember watching then-Senate Foreign Relations Chairman Joe Biden practically begging the Bush White House to “allow” Congress to vote on the attack while promising in advance that they would approve for it).

But what makes the celebratory reaction to yesterday’s announcement particularly odd is that the Congressional vote which Obama said he would seek appears, in his mind, to have no binding force at all. There is no reason to believe that a Congressional rejection of the war’s authorization would constrain Obama in any way, other than perhaps politically. To the contrary, there is substantial evidence for the proposition that the White House sees the vote as purely advisory, i.e., meaningless.

Recall how – in one of most overlooked bad acts of the Obama administration – the House of Representatives actually voted, overwhelmingly, against authorizing the US war in Libya, and yet Obama simply ignored the vote and proceeded to prosecute the war anyway (just as Clinton did when the House rejected the authorization he wanted to bomb Kosovo, though, at least there, Congress later voted to allocate funds for the bombing campaign). Why would the White House view the President’s power to wage war in Libya as unconstrainable by Congress, yet view his power to wage war in Syria as dependent upon Congressional authorization?

…

It’s certainly preferable to have the president seek Congressional approval than not seek it before involving the US in yet another Middle East war of choice, but that’s only true if the vote is deemed to be something more than an empty, symbolic ritual. To declare ahead of time that the debate the President has invited and the Congressional vote he sought are nothing more than non-binding gestures – they will matter only if the outcome is what the President wants it to be – is to display a fairly strong contempt for both democracy and the Constitution.

There are few things more bizarre than watching people advocate that another country be bombed even while acknowledging that it will achieve no good outcomes other than safeguarding the "credibility" of those doing the bombing. Relatedly, it’s hard to imagine a more potent sign of a weak, declining empire than having one’s national “credibility” depend upon periodically bombing other countries.

Turn off your TV (I mean, unless you’re watching a movie or something).

Transcript

Transcript

Transcript

Yup.  That screaming sound you hear is the Obama Administration going off the rails.

In honor of John Kerry who I once voted for, I have written a poem that summarizes his presentation.  It’s called Babies in Incubators.

Babies in Incubators

Of course we can’t tell you how we know.  We just know.  Trust us.

We know.  We know.  We know.

We just know.

Will you guys shut up already?  We have high, high confidence.

It’s just common sense.

Why are you laughing?  Why don’t you believe me?

It matters.  It really matters.  It’s about our credibility.

Who’s this allies kimosabe?

It’s not about proof.  It’s about our phoney baloney jobs.  It’s about history.  Did I mention the dead babies?  Here are some more pictures of dead babies.  Aren’t you outraged yet?  These babies are so much deader than the ones we blew up.

We know we know.  We believe in the United Nations.  They will not name who did this.  Russia will obstruct us.  This is in our interests.

Believe me.

Don’t you understand Tinkerbell will die?

This is totally different from Iraq and Afghanistan.

We KNOW.  We know there is no military solution.  Therefore we must bomb.

Evidence?  I defy you to find a scrap, scintilla, or jot of evidence.