16 March 2009

Update no.378

Update from the Heartland
No.378
9.3.09 – 15.3.09
Blog version: http://heartlandupdate.blogspot.com/
To all,
The follow-up news items:
-- We can always depend upon our illustrious representatives in Congress to play word games and invent new ways to spend The People’s Treasury.
“See No Earmarks – Defining spending deviancy down”
Editorial
Wall Street Journal
Published: March 5, 2009
http://online.wsj.com/article/SB123621360683535103.html?mod=djemEditorialPage
They observed, “Not so long ago – before President Obama's inauguration – ‘earmarks’ referred to the special appropriations that bypass the normal budget process to cater to special interests and protect the incumbents who inserted them. The difference now is that the politicians have gotten much better at disguising their handiwork. Under the cover of emergency spending, the projects have also grown much larger.” For the record, my definition of earmarks [257] remains the “not long ago” version. A pile of cow manure by any other name is still a pile of cow manure. When a Republican Congress spent Treasury funds like drunken sailors [213, et al] and a Republican President meekly acquiesced at best, it was call growth. When a Democratic Congress spends money like an equally drunken sailor and a Democratic President claims it is just a holdover from the previous administration, it is call socialism and heading toward communism. Barack Obama is no more a socialist than Karl Marx was a capitalist. Time shall tell. If he does not get control of congressional largesse, he will certainly add evidence to the accusation. Some anonymous congressional leader said, “A Congressman only has a vote, a press release and an earmark, and you want to take that way.” My simple response, “Damn straight!” I only have a vote, period. Where does it say in the Constitution that senators and representatives have the right (let alone the authority) to spend money in hidden, un-debated, personal projects used predominantly for political gain and influence? Where does it say that? Sure there are good things done with earmark money. But, if there are good things to be done, then put them in a bill, debate them, defend them, and pass them by the proper method. What is it about the word “perception” that Congressmen do not understand?
-- On Monday, President Obama signed an Executive Order titled: “Removing Barriers to Responsible Scientific Research Involving Human Stem Cells,” invalidating President Bush’s 9.August.2001 restriction on Federal support for embryonic stem cell research, and revoking Executive Order 13435, titled: “Expanding Approved Stem Cell Lines in Ethically Responsible Ways,” dated: 20.June.2007. The President said his administration will “make scientific decisions based on facts, not ideology.” And, I say, it is about time. I believe my opinion regarding Federal participation in embryonic stem cell research is well known and documented [146, 241, et al], thus we have no need for iteration. I laud the President’s initiative and action. As always, it’s the fine print that matters, so we must see how this edict translates into research endeavors.
[NOTE: For a President and an administration that touted its transparency, openness, and access – The People’s White House – and that claimed superior, contemporary, tech-savvy status, the necessity for me to turn to a non-affiliated website to obtain the text of this Executive Order is an indictment – a failure. Barack & his buddies are failing in this very important promise as well. Every time Barack signs one of these epistles, my anger jacks up another notch or two because I cannot obtain the text from the official website. The vast majority of our citizens do not live near Washington, DC. We rely on the Web for access to government documents. If the U.S. Supreme Court can post a lengthy decision on the same day or Congress post legislative action within a day or two, surely the White Staff can figure out how to number an executive order and post it on their website. They had better get a grip of this issue. What is so freakin’ hard about simple numbering and publication of Executive Orders on the White House website?]
-- The Federal regulator at the center of the government’s investigation into the failures of IndyMac, Washington Mutual, Countrywide Financial, and Downey Savings & Loan. – former director of the western region, Office of Thrift Supervision (OTS), Darrel W. Dochow [367] – has been allowed to quietly retire, without prosecution for his dereliction of duty. This does NOT bode well for this administration. The regulators, who aided and abetted the perpetrators of the banking crisis share culpability, must be held accountable. The message to John Q. Public in this case is the law has no teeth. I feel no mercy for the greedy bastards who brought this mess on us and those who helped them achieve their ill-gotten gains.

The same opinion column – different sources – worth reading the message.
“Abuse case too familiar”
by Leonard Pitts:
Wichita Eagle
Posted on Fri, Mar. 13, 2009
http://www.kansas.com/opinion/story/731584.html
“When a man hits a woman”
by Leonard Pitts Jr.
Miami Herald
Posted on Wednesday, 03.11.09
http://www.miamiherald.com/living/columnists/leonard-pitts/story/943498.html

George Will wrote a thought-provoking column a few weeks ago . . . with a twist:
“Prudes at Dinner, Gluttons in Bed
by George F. Will
Washington Post
Published: Thursday, February 26, 2009; Page A19
http://www.washingtonpost.com/wp-dyn/content/article/2009/02/25/AR2009022503123.html?wpisrc=newsletter
George refers to:
“Is Food the New Sex? – A Curious Reversal of Moralizing”
by Mary Tedeschi Eberstadt
Hoover Institution, Stanford University
Policy Review
February-March 2009
http://www.hoover.org/publications/policyreview/38245724.html
George wrote, “Today ‘the all-you-can-eat buffet’ is stigmatized and the ‘sexual smorgasbord’ is not. Eberstadt’s surmise about a society ‘puritanical about food, and licentious about sex’ is this: ‘The rules being drawn around food receive some force from the fact that people are uncomfortable with how far the sexual revolution has gone -- and not knowing what to do about it, they turn for increasing consolation to mining morality out of what they eat.’” Oddly, as I read Eberstadt’s words and Will’s opinion of her words, I continuously asked myself the question: who is uncomfortable? And, more importantly to me, why are they uncomfortable? Eberstadt talks about the most vulnerable in society being hurt, yet I have a very hard time equating that opinion with root cause analysis. Eberstadt concluded her study, “So if there is a moral to this curious transvaluation, it would seem to be that the norms society imposes on itself in pursuit of its own self-protection do not wholly disappear, but rather mutate and move on, sometimes in curious guises. Far-fetched though it seems at the moment, where mindless food is today, mindless sex – in light of the growing empirical record of its own unleashing – may yet again be tomorrow.” All of this smacks of agenda. Whether food or sex, it is only mindless if we make it so. Unfortunately, what I see in this treatise is an inverse rationalization to justify “moral projection” for the protection of all us “mindless” imbeciles who cannot exercise our freedom of choice responsibly. In my most humble opinion, the sexual revolution, if there ever was such a thing, has made progress but not far enough. Our hang-ups about sex have caused enormous collateral damage. Perhaps one day, we shall recognize sex as a normal and natural human activity, instead of as some mystical, spiritual obligation.

As you may have gathered by now, I look for news items that are interesting, sometimes provocative, and illuminate encroachment upon our most fundamental rights. Two, separated, similar, police actions offer us another opportunity.
“Cook County sheriff sues Craigslist over sex ads”
by Don Babwin, AP
Cleveland Examiner
Published: Mar 5, 2009; 6:57 PM
http://www.examiner.com/a-1887634~Cook_County_sheriff_sues_Craigslist_over_sex_ads.html
“Wichita police net 11 arrests in adult video store sting”
by Dion Lefler
Wichita Eagle
Posted on Sat, Mar. 07, 2009
http://www.kansas.com/news/local/story/724726.html
Cook County (Illinois) Sheriff Thomas J. ‘Tom’ Dart accused the popular, widely used, Craigslist website as a big purveyor of prostitution. He seeks an order by a federal judge to close the “Erotic Services” section of the website. A few hundred miles southwest, Wichita Chief of Police Norman D. ‘Norm’ Williams’ officers raided an adult book and video store, arresting 11 male citizens (26 to 66 years of age) for a variety of sex crimes, including indecent exposure, public nudity, lewd and lascivious behavior, and sexual battery. The police claim they carry out such sting operations “in order to prevent illegal activity in the adult book stores and videos.” For those of us who do not seek prostitutes or seek sexual satisfaction at an adult store, these police actions represent a “so what.” So what! These are offensive actions by the State, based on moralistic, victim-less “crimes.” Who is being injured? What harm is being done to public safety? Both of these examples are precisely why our vast array of sex laws at local, state and even federal levels absolutely must be reformed or repealed. We, the People, must get the State out of private affairs and conduct. We have been lulled into passivity on such infringements to our most fundamental rights, by our condemnation of choices made by other citizens. We have given up far too much personal freedom in the foolish notion of denying that same personal freedom to others we do not agree with. In these instances, I do not fault the police; they are trying to enforce the law as best they can. The root cause rests with our penchant for moral projection and laws that validate our sense of propriety and morality. That is not how freedom is supposed to work.

In the aftermath of the recent mass murder rampages in the United States and Germany, the Telegraph (UK) published this article in an attempt to answer the perpetual question – why?
“Germany school shootings: Profile of a high school killer – Experts say school killers, like German serial killer Tim Kretschmer, often share similar psychological profiles”
by Nick Squires
The Telegraph (London)
Last Updated: 5:53AM GMT 12 Mar 2009
http://www.telegraph.co.uk/news/worldnews/europe/germany/4974853/Germany-school-shootings-Profile-of-a-high-school-killer.html
As reported by Squires, there are six common threads in school yard rampages.
1. An acute rejection event is often the catalytic trigger.
2. The attacker is usually a victim of teasing or bullying.
3. The attacker commonly has a fascination with guns and/or explosives.
4. Another common factor is a preoccupation with death.
5. Attackers also often display acute psychological problems such as schizophrenia or bipolar depression.
6. Attackers often plan their attacks well in advance, buying weapons, and writing or recording some form of last statement to explain their actions.
While not an all inclusive listing, I think even the casual observer can recognize the validity of these signs. Some of these signs are readily observable (detectable) by parents, friends, neighbors, teachers, and sometimes even the police. Unfortunately, these “signs” are symptoms, and do not get us to the root cause of such disrespectful and destructive behavior. The mental health element could be hereditary, chemical, or environmental, and cannot be ignored. I respectfully submit to a discerning forum that the root cause lays squarely and ultimately with the parents of these killers . . . by their complacency, negligence and/or abuse of these children. Passing more restrictive guns laws, bludgeoning schools for failing to provide absolute security, or assailing the police for failing to prevent these rampages is just as irrational as treating a gaping wound by wiping up the hemorrhaged blood. I appreciate Squires’ effort to understand, but these superficial theses will only give us warning at best, and will never address the true root cause of such aberrant behavior. We are way passed time to reject the abysmal “don’t get involved” syndrome that enables these obscenities.

I can always depend upon the New York Times to provide ample fodder for debate in this forum.
“The Drug Cartels’ Right to Bear Arms”
Editorial
New York Times
Published: February 27, 2009
http://www.nytimes.com/2009/02/27/opinion/27fri3.html?_r=2&th&emc=th
The august editorial staff of the Times concluded, “There should be enormous shame on this side of the border that America’s addiction to drugs is bolstered by its feckless gun controls. Firm federal law is urgently needed if the homicidal cartels are to be seriously challenged as a threat to national security.” Yes, what is happening on our southern door step is a national security issue. Unfortunately, as is so often the case in such questions, the Times seems quite content to vilify the firearms industry, to advocate for foolish, superficial laws that do absolutely nothing to remedy the root cause of the tragic drug (gang) violence in Mexico and spilling over into this country. We cannot continue to rail against these convenient, distracting façade issues that have virtually no effect whatsoever on the real disease – the actual wound. Perhaps, someday, the Times will use its vaunted status to focus their editorial wrath on real questions rather the distracting, thin façade of reactive symptoms.

News from the economic front:
-- The President signed into law the Omnibus Appropriations Act of 2009 [PL 111-008; H.R. 1105; Senate: 62-35-0-2(1); House: 245-178-0-8(4)], US$410B in new Federal government spending, including an estimated US$7.7B [a mere 1.9%] in 8,570 earmarks on this bill alone. The President has swallowed the grape juice and become part of the problem, just as his predecessor did. What was it he said about hope?
-- New York State Attorney General Andrew Mark Cuomo accused Merrill Lynch & Co. of misleading Congress about when directors of the securities firm decided to pay about US$3.6B in bonuses. Then we hear that insurance giant AIG intends to pay out US$165M in bonuses to the same executives that brought the company to the brink of collapse last year, and that need US170B, so far, in funds from the People’s Treasury to survive. I wish Cuomo all the luck and good hunting I can muster up for this initiative, and I hope he adds AIG & others to his target list. The whole notion of bonuses being paid to executives of failed companies, or of companies suckling at the Treasury teat is about as far away from the free market (these robbers tout) as Bernie Madoff is from being a law-abiding citizen. These executives should be paying shareholders, not the other way around. And, all this gibberish about retaining high-quality managers . . . what quality!?!
-- The Wall Street Journal reported that a majority of 49 polled economists are dissatisfied with the administration’s economic policies. On average, they gave the President a mark of 59 out of 100, and although there was a broad range of marks, 42% of respondents graded Mr. Obama below 60. Unfortunately, I think . . . show me the data, and is this “poll” politically motivated or perhaps politically biased?
-- Swiss drug marker Roche agreed to buy the 44% of U.S. biotech company Genentech that it doesn't already own for around US$46.8B. The agreement ends a nearly eight month battle, in which Genentech repeatedly rejected Roche’s offer.
-- G-20 finance officials met in the U.K. this weekend and agreed to take “whatever action is necessary” to restore global growth and support lending, but did not commit to a U.S.-led push for more coordinated government spending. They pledged to maintain expansionary monetary policies as long as needed and agreed the key priority is to restore bank lending, including dealing with troubled or toxic assets.

L’Affaire Madoff [365]:
-- The Wall Street Journal reported that Annette Bongiorno, a four-decade veteran of the Madoff firm, asked assistants to research daily share prices for blue-chip stocks from the previous month or several months; then, using the data of past share prices, she would instruct the assistants to generate ‘tickets’ showing purported trades, which resulted in gains that were in line with Madoff’s steady annual returns. This is only the snowflake on the tip of the iceberg. Based on the Journal report, I suspect Bongiorno is already on the target list of soon-to-be accused culprits in this scandal.
-- Bernard Lawrence Madoff pleaded guilty to 11 criminal charges, including money laundering, perjury, and securities, mail and wire fraud. The judge revoked his bail bond, ordered him jailed immediately, and scheduled his sentencing for June 16th.
-- Madoff is no longer a quasi-free citizen, languishing in the luxury of his US$7M penthouse. He is now just inmate 61727054, and hopefully he shall remain so for the rest of his natural life.
-- Next up for prosecution, Ruth Alpern Madoff and their sons Mark and Andrew. We can only hope they stand up to the bar as their father did and admit their guilt. There are many more to go before this one is done.

Comments and contributions from Update no.377:
“Similar to your challenge of the Das Kapital ‘quote;’ Do you in-fact have any reason to believe that the children, and in my case the grandchildren, of our generations have demonstrated any intelligent participation in the Economic, Political or theological evolutions of our USA?; I don't see any sign of such interest or participation; do hope you are right though. What I do see is a mentality identical to that which was present in the 1930’s process that put Adolph Hitler into power. I fear that Obama is in fact no student of history at all, as he, with Hillary Clinton’s help is on what I fear will prove to be a disastrous path of appeasement that parallels that of Chamberlain.
“I do think that the continuing diatribe of commentators such as Fox News' Sean Hannity and Now Glenn Beck, and to a lesser extent Bill O'Reilly and now Mike Huckabee against any responsible duty to pay taxes is criminal, traitorous and totally destructive. Allen Colmes, the only Morally Honest and Socially Responsible voice on Fox News, that I am aware of, has been Silenced, at least for now; what a travesty. It is (even Biblical) historically in the 'Nature' of mankind to relish raiding the other man's orchard, and to yield to the "Kings" rule rather that accept any personal responsibility for anything Social, Economic, or Theological. These Negative Personalities are illustrative of the 'True Ugly Americans': They have proven that an 'Un-Regulated Free Market' is absolutely the worst form of government imaginable; it yields to the very worst in human nature. In this past 4 decades we have undone just about all the good previously accomplished in correcting the major economic sins of our prior history.
“Is it not clear that Our (Mine and Your) Generations (Thru the Presidencies of Nixon, Reagan and Bush I and II) starting under the discipleship of Henry Kissinger we have systematically turned over ownership and control of virtually all of our essential industries and resources to Internationally Controlled Conglomerates: The 'Goose That was Laying Our Golden Eggs' has been cooked. Our (Bucket of) Intellectual Resources/Properties have been and continue to be leaked to foreign governments (even our worst competitors and enemies); for example Microsoft has done and continues a massive brain dump to India, China and Russia. It does not appear to me that the United States of America can generate and retain enough net "New Technology" to keep up with the effects of this drain to ever recover a positive economic position in the world market.”
My response:
My statement of hope was not a statement of fact. There are signs that our children and grandchildren will rise to the occasion. But, only time will tell the tale. All I know is I am hugely disappointed in so many of my generation who failed to rise above partisan politics to the detriment of this Grand Republic. I’m ready to give our children their chance to do better.
I remain observant and critical of our new President. I do not share your fear. I do see positive signs, refreshing differences. I like many of things he is doing. I am willing to give him the benefit of the doubt for the time being. Yes, there are citizens who blindly believe Obama can do no wrong, just as there were citizens who believed Bush could do no wrong. That does not mean we are following the Pied Piper to our ruin. I think Obama is better than he is being given credit. Again, time shall tell the tale.
We are in agreement regarding an “unregulated free market.” We have begun the process of correction. My fear now is over-correction like the Church Committee in the late 70’s that crippled our human intelligence capabilities for decades. I do not want the government in the marketplace, but we must have checks & balances to spot rabid greed before it consumes US$50B.
The Founders recognized the power of commerce. Global trade is part of that process, and that road cannot be a one-way street. Not everything going on is a good thing, but companies choose to sell; no one is holding a gun to their heads. Protectionism and Isolationism are not stable states. Again, we must seek balance.

Another contribution:
“A couple of notes...
“There are definitely ways for the Government or the trustee representing the victims to get the millions that Madoff's wife had stashed away - as well as the apartment. For one thing, Mrs. Madoff withdrew about $10 million from one account the day that Bernie told his sons about the fraud. There has to be a connection. If it can be shown that the funds came from Madoff's fraudulent side, they can get to the money. It would appear that they should be able to do just that. I am just afraid that the prosecutors will wimp out about Ruthie. They should have already charged her and be using that as a chip in finding out where other funds are and getting a solid plea from Bernie. She should not be allowed to keep the NY penthouse or the mansion in Florida. Or the $65 million or so that she has in her accounts.
“Regarding the OLC memoranda being released-- it s the USG that is releasing the memoranda and the reasons for their withdrawal. The Times is reporting it and giving its view in opinion pieces. But the Government is releasing them because the original memos were wrong, unconstitutional, and in most cases, very poorly written pieces of work-- much less to base policy upon. I have read a couple, and it is astounding how bad they are-- for supposedly being written by people who were at the pinnacle of their profession. Also, running the country based on secret memos that are wrong in law and fact and poorly written is obviously a poor practice.”
My reply:
I guess we’ll find out on Thursday when Bernie pleads. If there is clean money in the Madoff family, then perhaps that should be safe. However, I have seen nothing that suggests any of their money is clean. I think the USG should take it all and prosecute Ruth, but like you, I suspect the prosecutors will wimp out. If they don’t [prosecute her], she can go to the homeless shelter and work at McDonalds for all I care.
Perhaps I was not precise with my words. Yes, I recognize that the Obama administration declassified and released the OLC memoranda, which in itself I think was a bad idea. However, I was being critical of NYT for their penchant to disclose sensitive national security material and sensationalize it. Nonetheless, for the NYT to claim some pseudo-sanctimonious position of openness & transparency is wrong. Historians should do that in hindsight, not contemporary Press outlets during a time of war. That was my objection in 1971, and that is my objection today. BTW, do you have special access to the memos or did you find them on the Web?

My very best wishes to all. Take care of yourselves and each other.
Cheers,
Cap :-)

No comments: