Friday, April 24, 2009

Four clear just views about moving ahead with prosecution of illegal acts by The Bush Administration

The New York Times
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April 24, 2009
Op-Ed Columnist

Reclaiming America’s Soul

“Nothing will be gained by spending our time and energy laying blame for the past.” So declared President Obama, after his commendable decision to release the legal memos that his predecessor used to justify torture. Some people in the political and media establishments have echoed his position. We need to look forward, not backward, they say. No prosecutions, please; no investigations; we’re just too busy.

And there are indeed immense challenges out there: an economic crisis, a health care crisis, an environmental crisis. Isn’t revisiting the abuses of the last eight years, no matter how bad they were, a luxury we can’t afford?

No, it isn’t, because America is more than a collection of policies. We are, or at least we used to be, a nation of moral ideals. In the past, our government has sometimes done an imperfect job of upholding those ideals. But never before have our leaders so utterly betrayed everything our nation stands for. “This government does not torture people,” declared former President Bush, but it did, and all the world knows it.

And the only way we can regain our moral compass, not just for the sake of our position in the world, but for the sake of our own national conscience, is to investigate how that happened, and, if necessary, to prosecute those responsible.

What about the argument that investigating the Bush administration’s abuses will impede efforts to deal with the crises of today? Even if that were true — even if truth and justice came at a high price — that would arguably be a price we must pay: laws aren’t supposed to be enforced only when convenient. But is there any real reason to believe that the nation would pay a high price for accountability?

For example, would investigating the crimes of the Bush era really divert time and energy needed elsewhere? Let’s be concrete: whose time and energy are we talking about?

Tim Geithner, the Treasury secretary, wouldn’t be called away from his efforts to rescue the economy. Peter Orszag, the budget director, wouldn’t be called away from his efforts to reform health care. Steven Chu, the energy secretary, wouldn’t be called away from his efforts to limit climate change. Even the president needn’t, and indeed shouldn’t, be involved. All he would have to do is let the Justice Department do its job — which he’s supposed to do in any case — and not get in the way of any Congressional investigations.

I don’t know about you, but I think America is capable of uncovering the truth and enforcing the law even while it goes about its other business.

Still, you might argue — and many do — that revisiting the abuses of the Bush years would undermine the political consensus the president needs to pursue his agenda.

But the answer to that is, what political consensus? There are still, alas, a significant number of people in our political life who stand on the side of the torturers. But these are the same people who have been relentless in their efforts to block President Obama’s attempt to deal with our economic crisis and will be equally relentless in their opposition when he endeavors to deal with health care and climate change. The president cannot lose their good will, because they never offered any.

That said, there are a lot of people in Washington who weren’t allied with the torturers but would nonetheless rather not revisit what happened in the Bush years.

Some of them probably just don’t want an ugly scene; my guess is that the president, who clearly prefers visions of uplift to confrontation, is in that group. But the ugliness is already there, and pretending it isn’t won’t make it go away.

Others, I suspect, would rather not revisit those years because they don’t want to be reminded of their own sins of omission.

For the fact is that officials in the Bush administration instituted torture as a policy, misled the nation into a war they wanted to fight and, probably, tortured people in the attempt to extract “confessions” that would justify that war. And during the march to war, most of the political and media establishment looked the other way.

It’s hard, then, not to be cynical when some of the people who should have spoken out against what was happening, but didn’t, now declare that we should forget the whole era — for the sake of the country, of course.

Sorry, but what we really should do for the sake of the country is have investigations both of torture and of the march to war. These investigations should, where appropriate, be followed by prosecutions — not out of vindictiveness, but because this is a nation of laws.

We need to do this for the sake of our future. For this isn’t about looking backward, it’s about looking forward — because it’s about reclaiming America’s soul.


=========================

Two other excellent columns/posts -

Arianna Huffington - "The Torture Moment"

Arianna Huffington

Arianna Huffington

Posted April 24, 2009 | 07:10 PM (EST)

The Torture Moment


This is a defining moment for America.

The way we respond -- or fail to respond -- to the revelations about the Bush administration's use of torture will delineate -- for ourselves and for the world -- the kind of country we are.

It is a test of our courage and our convictions. A test of whether we are indeed a nation of laws -- or a nation that pays lip service to the notion of being a nation of laws.

And everyone engaged in our public conversation has a role to play.

So far, the media are not getting high marks. They can't seem to shake their addiction to looking at every issue -- even one that pivots on questions of morality, not politics -- through the archaic prism of right vs. left.

So we got CNN's Ed Henry mainlining a right-left 8-ball at Tuesday's press briefing, asking Robert Gibbs, "Is this an example of this White House giving in to pressure from the left?"

And we got the Washington Post's Dan Balz saying -- in two different pieces -- that Obama's release of the torture memos "has stirred a major controversy on the right and left." According to Balz, "the anger on the right was expected. But Obama faces equally strong reaction from the left, where there is a desire to punish Bush administration officials for their actions... Obama owes his presidency in part to this constituency, who rallied to him during the battle for the Democratic nomination because he presented himself as a staunch and early opponent of the war in Iraq. Now they are demanding that he acknowledge their point of view."

Since when is the need to adhere to the laws that govern us a left-wing "point of view"? Is Thou Shalt Not Kill a "point of view"? When the police arrest a rapist, is it because rape is inherently, inarguably wrong -- or because that's the cops' "point of view"?

Isn't torture one of those things where there really is no legitimate other side?

And if this really is a question of right vs. left, how do Henry, Balz, and all the others framing the discussion that way account for Shepard Smith's table-slamming outburst on FoxNews.com's The Strategy Room? Was his "We are AMERICA! We do not fucking torture!" a left-wing point of view confusingly expressed by a right-wing commentator?

Memo to the media: Time to check in for a serious round of "right vs left" rehab. When it comes to torture, the only appropriate framing is "right vs wrong."

Obama and his team have had their own problems with the issue. Despite a commitment to looking forward, they failed to see the massive wall of public indignation directly in front of them.

After all the internal back-and-forth they apparently had about how to handle the issue, it was interesting to see how fast they reversed course -- the president quickly walking back from Rahm Emanuel's unequivocal "no prosecution" position.

Once the spotlight was turned on, it was impossible to sustain the let's-just-move-on stance. What is at stake is just too huge to sweep under the presidential rug. It leaves too big a lump in the middle of the Oval Office -- and too big a stumbling block in the path of Obama's presidency.

I understand the president's preference for "reflection" over "anger and retribution." But this is not about personal pique or a desire for vengeance. It's about the nation's fundamental morality.

Which is why it is imperative that we keep the pressure on the president, on Congress, and on the Justice Department. Not left-wing pressure. Not blogospheric pressure. Moral pressure. The pressure born of America's values.

Pressure to do the right thing. The moral thing. The legal thing. Pressure to keep the acts of the Bush White House from being implicitly condoned. And to keep the abuse of presidential power -- and the use of torture -- from becoming American precedent.

In pushing for a truth commission on torture, Sen. Patrick Leahy had repeatedly said that "we can't turn the page unless we first read the page." But we've actually read the page -- the torture memos -- and been horrified by what we're read. So now we need to act on that horror. And we can only do that by holding accountable those responsible for authorizing the use of torture.

The clock is ticking while the world waits to see if Yeats was right. Do the best of us really lack the conviction necessary to make sure that justice is done? Is it really only the worst of us who are full of passionate intensity? (See Rove and Cheney and Hayden coming out swinging, acting -- as John Cusack described them to me -- "like caged, cornered animals.")

And do the best of us become the worst of us if our passionate intensity does not make the leap from words to action?

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and the suberb -


Glenn Greenwald - "Democratic complicity and what 'politicizing justice' really means"

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http://www.salon.com/opinion/greenwald/2009/04/24/democrats/print.html



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Democratic complicity and what "politicizing justice" really means

Trying to block criminal investigations for political reasons is itself a form of corruption.

Glenn Greenwald

Apr. 24, 2009 |

(updated below)

Bush-defending opponents of investigations and prosecutions think they've discovered a trump card: the claim that Democratic leaders such as Nancy Pelosi, Jay Rockefeller and Jane Harman were briefed on the torture programs and assented to them. The core assumption here -- shared by most establishment pundits -- is that the call for criminal investigations is nothing more than a partisan-driven desire to harm Republicans and Bush officials ("retribution"), and if they can show that some Democratic officials might be swept up in the inquiry, then, they assume, that will motivate investigation proponents to think twice.

Those who make that argument are clearly projecting. They view everything in partisan and political terms -- it's why virtually all media discussions are about what David Gregory calls "the politics of the torture debate" rather than the substantive issues surrounding these serious crimes -- and they are thus incapable of understanding that not everyone is burdened by the same sad affliction that plagues them.

Most people who have spent the last several years (rather than the last several weeks) vehemently objecting to the Bush administration's rampant criminality have been well aware of, and quite vocal about, the pervasive complicity of many key Democrats in this criminality. Just to cite two examples, here is my December, 2007 post entitled "Democratic complicity in Bush's torture regime", and here is another from July, 2008, arguing that Democrats have blocked investigations into Bush crimes because of how it would implicate them; quoting The New Yorker's Jane Mayer as saying that "many of those who might ordinarily be counted on to lead the charge are themselves compromised"; and quoting Jonathan Turley as saying (on Keith Olbermann's program) that "the Democrats have been silently trying to kill any effort to hold anyone accountable because that list could very well include some of their own members."

The reality is exactly the opposite (as usual) of what is being depicted in our media discussions. The call for criminal investigations of torture and other forms of government criminality is the most apolitical and non-partisan argument one can make. The ones who are trying to politicize the justice system and exploit the rule of law for partisan gain are those who are arguing against criminal investigations. John Cole explained this point perfectly yesterday:

At some point they are going to figure out that for most of us, we don’t care if the person has a (R) or (D) behind their name when they were instituting a policy of torture. That is what is so depressing (to me, at least) about the Ari Fleischer’s and the Thiessen’s of the world. They honestly seem to think this is nothing more than a partisan witch-hunt, the same old Washington gotcha politics. It isn’t. When you torture people, you have crossed a really clear line. Innocent people are dead. Lives have been ruined. Our international reputation has been destroyed. Yes, the Bush administration will get most of the blame, but that is because they were in charge and they did this, not because of what party they happen to belong to. If Jane Harman and Nancy Pelosi knew about this and ok’d it, they are just as culpable.

Precisely. To be fair, there are disputes about what exactly Democratic leaders were and were not told, and there are disputes about what they said or did not say. That's what happens when a government operates in virtually total secrecy and does everything possible to stonewall public disclosure. The dispute over the role of Democratic leaders further bolsters the need for full-scale investigations: we ought to know everything that led to these crimes, including the true extent to which the "opposition party" was informed about what was being done and approved of it. The failure of the Democratic Party to meaningfully oppose what was done over the last eight years is a crucial part of the story here and light needs to be shined on that as much as anything else. I don't know of a single person who has devoted themselves to arguing for investigations who contests that fact.

The inability of so many people (both Republicans and Obama-loyal Democrats) to view the need for prosecutions independent of political considerations is a potent sign of how sick our political culture has become. The need for criminal investigations is motivated by one simple, consummately apolitical fact: serious and brutal crimes were committed at the highest levels of the government, ones that left a trail of many victims. A country that purports to live under the rule of law has no choice but to treat its most powerful members who commit serious crimes exactly the same as ordinary citizens who do so. That has nothing to do with Republicans or Democrats.

It has to do with the most central premise of the American system of government: that we are a nation of laws, not men, and all are equal before the law. People like John McCain argue that only "banana republics" prosecute former political leaders, but the reality is exactly the opposite. As the Western world has spent decades pointing out, the hallmark of an under-developed, tyrannical society is the very same premise we have embraced: that political elites are free to break the law with impunity and never suffer the consequences that ordinary citizens do.

* * * * *

Interestingly -- and encouragingly -- the potency of this principle is such that a call for criminal investigations is now slowly though clearly starting to seep into our mainstream discussions. In The New York Times, Paul Krugman today emphatically calls for criminal investigations, mocking Obama supporters who claim that applying the rule of law will unduly interfere with Obama's political agenda and pointing out that prosecutions are needed "not out of vindictiveness, but because this is a nation of laws." In The Washington Post today, the now-Pulitzer-Prize-winning Eugene Robinson echoes this argument:

The many roads of inquiry into the Bush administration's abusive "interrogation techniques" all lead to one stubborn, inconvenient fact: Torture is not just immoral but also illegal. This means that once we learn the whole truth, the law will oblige us to act on it. . . . The rule of law is one of this nation's founding principles. It's not optional. Our laws against torture demand to be obeyed -- and demand to be enforced.

That torture is a serious felony certainly is a "stubborn, inconvenient fact." Even the Bush-enabling Washington Post Editorial Page today points out that "American officials condoned and conducted torture"; "Eric H. Holder Jr., the attorney general of the United States, has stated flatly that it is illegal"; and "in a country founded on the rule of law, a president can't sweep criminality away for political reasons, even the most noble." I hope Obama loyalists study that last sentence and digest it.

As Andrew Sullivan hinted at last night, my claim yesterday that not a single "establishment pundit" has been advocating criminal investigations was a bit overstated -- Rachel Maddow and Keith Olbermann have been admirably banging this drum on MSNBC for weeks (and Sullivan for much longer than that) -- but a simple, non-partisan call to apply the rule of law to our government leaders was largely missing from most mainstream discussions, until now. As torture disclosures increase -- the ACLU yesterday announced that it has forced the DOD to agree to release many new photos showing American abuses of detainees outside of Abu Ghraib -- the pressure is clearly rising for criminal investigations.

* * * * *

Nonetheless, as they have done for years, Democratic leaders continue to lead the way in shielding Bush crimes from scrutiny and stifling public disclosure of what was done. Obama met yesterday with Congressional leaders and emphatically argued against the establishment of a Truth Commission, insisting that such an inquiry would interfere with his political agenda. Senate Majority "Leader" Harry Reid then dutifully and obediently announced that Senate Democrats will block any such investigations in favor of a Senate Intelligence Committee proceeding that will occur largely in secret and will not be completed until the end of the year, at least (I remember when Democrats used to mock GOP leaders for having Dick Cheney come to Congress and give them their marching orders). Democratic Congressional leaders are doing now what they did throughout the Bush presidency: namely, pretending to oppose what was done while doing everything possible to protect and enable it and shield the wrongdoers from scrutiny (in large part because some of the wrongdoing was by their own party).

Obama's ostensible motives here are no better. The claim that punishing Bush crimes will undermine his political interests is not only false (as Krugman definitively establishes today) but also corrupt. Democrats spent the last several years vehemently complaining about the "politicization of the Justice Department" under Alberto Gonzales. Yet so many of these same Democrats are now demanding that the Obama DOJ refrain from prosecuting Bush criminals based on purely political grounds: namely, that those prosecutions will interfere with Obama's political agenda.

Blocking criminal investigations for political reasons is definitively corrupt -- period. That's true whether Democrats or Republicans do it. In The New York Times today, Mark Mazzetti and Neil Lewis advance the Jane-Harman/Alberto-Gonzales/AIPAC scandal by making clear that at the core of the scandal lies the actions of Alberto Gonzeles, who intervened to block a criminal investigation of Harman for purely political reasons:

One reason Mr. Gonzales intervened, the former officials said, was to protect Ms. Harman because they saw her as a valuable administration ally in urging The New York Times not to publish an article about the National Security Agency’s program of wiretapping without warrants.

As Michael Isikoff pointed out on Rachel Maddow's show earlier this week, what Gonzales did there (blocking a criminal investigation of Harman because the investigation would undermine the White House's political interests) is extremely similar to what many Obama loyalists are arguing now (that criminal investigations of Bush crimes should be blocked because such investigations would undermine the White House's political interests). That is what made the efforts of Rahm Emanuel, Robert Gibbs and even Obama to dictate who would and would not be prosecuted so improper: it the role of independent Justice Department officials to make that decision based on purely legal and apolitical grounds, not the role of White House officials to try to interfere for political reasons. I was preceded yesterday on Warren Olney's To the Point program by Philip Zelikow, and Zelikow said: "I really don't think the President should have opinions on who should or should not be prosecuted -- full stop."

Punishing politically powerful criminals is about vindicating the rule of law. Partisan and political considerations should play no role in it. It is opponents of investigations and prosecutions who are being driven by partisan allegiances and a desire to advance their political interests. By contrast, proponents of investigations are seeking to vindicate the most apolitical yet crucial principle of our system of government: that we are a nation of laws that cannot allow extremely serious crimes to be swept under the rug for political reasons. That's true no matter what is best for Obama's political goals and no matter how many Democrats end up being implicated -- ethically, politically or even legally -- by the crimes that were committed.

UPDATE: Just to underscore how continuously Democrats are complicit in thwarting the rule of law in the United States: one of Obama's most impressive and rule-of-law-defending appointees, Dawn Johnsen, has had her nomination as OLC Chief blocked for months by the Right, and the office of a key Democratic Senator -- Ben Nelson -- just told Greg Sargent that Nelson "is all but certain to vote against Johnsen," substantially increasingly the GOP's chances of preventing her from becoming head of the OLC. That's our bipartisan Washington establishment in a nutshell: key Bush torture architects such as John Rizzo and Bush intelligence policy defenders such as John Brennan are able to remain in positions of high power in the Obama administration, while those, like Johnsen, who want accountability for government crimes are considered fringe, extremist and unfit for office.

-- Glenn Greenwald

----------------------------

Frank Rich - "The Banality of Bush White House Evil"


The New York Times
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April 26, 2009
Op-Ed Columnist

The Banality of Bush White House Evil

WE don’t like our evil to be banal. Ten years after Columbine, it only now may be sinking in that the psychopathic killers were not jock-hating dorks from a “Trench Coat Mafia,” or, as ABC News maintained at the time, “part of a dark, underground national phenomenon known as the Gothic movement.” In the new best seller “Columbine,” the journalist Dave Cullen reaffirms that Dylan Klebold and Eric Harris were instead ordinary American teenagers who worked at the local pizza joint, loved their parents and were popular among their classmates.

On Tuesday, it will be five years since Americans first confronted the photographs from Abu Ghraib on “60 Minutes II.” Here, too, we want to cling to myths that quarantine the evil. If our country committed torture, surely it did so to prevent Armageddon, in a patriotic ticking-time-bomb scenario out of “24.” If anyone deserves blame, it was only those identified by President Bush as “a few American troops who dishonored our country and disregarded our values”: promiscuous, sinister-looking lowlifes like Lynddie England, Charles Graner and the other grunts who were held accountable while the top command got a pass.

We’ve learned much, much more about America and torture in the past five years. But as Mark Danner recently wrote in The New York Review of Books, for all the revelations, one essential fact remains unchanged: “By no later than the summer of 2004, the American people had before them the basic narrative of how the elected and appointed officials of their government decided to torture prisoners and how they went about it.” When the Obama administration said it declassified four new torture memos 10 days ago in part because their contents were already largely public, it was right.

Yet we still shrink from the hardest truths and the bigger picture: that torture was a premeditated policy approved at our government’s highest levels; that it was carried out in scenarios that had no resemblance to “24”; that psychologists and physicians were enlisted as collaborators in inflicting pain; and that, in the assessment of reliable sources like the F.B.I. director Robert Mueller, it did not help disrupt any terrorist attacks.

The newly released Justice Department memos, like those before them, were not written by barely schooled misfits like England and Graner. John Yoo, Steven Bradbury and Jay Bybee graduated from the likes of Harvard, Yale, Stanford, Michigan and Brigham Young. They have passed through white-shoe law firms like Covington & Burling, and Sidley Austin.

Judge Bybee’s résumé tells us that he has four children and is both a Cubmaster for the Boy Scouts and a youth baseball and basketball coach. He currently occupies a tenured seat on the United States Court of Appeals. As an assistant attorney general, he was the author of the Aug. 1, 2002, memo endorsing in lengthy, prurient detail interrogation “techniques” like “facial slap (insult slap)” and “insects placed in a confinement box.”

He proposed using 10 such techniques “in some sort of escalating fashion, culminating with the waterboard, though not necessarily ending with this technique.” Waterboarding, the near-drowning favored by Pol Pot and the Spanish Inquisition, was prosecuted by the United States in war-crimes trials after World War II. But Bybee concluded that it “does not, in our view, inflict ‘severe pain or suffering.’ ”

Still, it’s not Bybee’s perverted lawyering and pornographic amorality that make his memo worthy of special attention. It merits a closer look because it actually does add something new — and, even after all we’ve heard, something shocking — to the five-year-old torture narrative. When placed in full context, it’s the kind of smoking gun that might free us from the myths and denial that prevent us from reckoning with this ugly chapter in our history.

Bybee’s memo was aimed at one particular detainee, Abu Zubaydah, who had been captured some four months earlier, in late March 2002. Zubaydah is portrayed in the memo (as he was publicly by Bush after his capture) as one of the top men in Al Qaeda. But by August this had been proven false. As Ron Suskind reported in his book “The One Percent Doctrine,” Zubaydah was identified soon after his capture as a logistics guy, who, in the words of the F.B.I.’s top-ranking Qaeda analyst at the time, Dan Coleman, served as the terrorist group’s flight booker and “greeter,” like “Joe Louis in the lobby of Caesar’s Palace.” Zubaydah “knew very little about real operations, or strategy.” He showed clinical symptoms of schizophrenia.

By the time Bybee wrote his memo, Zubaydah had been questioned by the F.B.I. and C.I.A. for months and had given what limited information he had. His most valuable contribution was to finger Khalid Shaikh Mohammed as the 9/11 mastermind. But, as Jane Mayer wrote in her book “The Dark Side,” even that contribution may have been old news: according to the 9/11 commission, the C.I.A. had already learned about Mohammed during the summer of 2001. In any event, as one of Zubaydah’s own F.B.I. questioners, Ali Soufan, wrote in a Times Op-Ed article last Thursday, traditional interrogation methods had worked. Yet Bybee’s memo purported that an “increased pressure phase” was required to force Zubaydah to talk.

As soon as Bybee gave the green light, torture followed: Zubaydah was waterboarded at least 83 times in August 2002, according to another of the newly released memos. Unsurprisingly, it appears that no significant intelligence was gained by torturing this mentally ill Qaeda functionary. So why the overkill? Bybee’s memo invoked a ticking time bomb: “There is currently a level of ‘chatter’ equal to that which preceded the September 11 attacks.”

We don’t know if there was such unusual “chatter” then, but it’s unlikely Zubaydah could have added information if there were. Perhaps some new facts may yet emerge if Dick Cheney succeeds in his unexpected and welcome crusade to declassify documents that he says will exonerate administration interrogation policies. Meanwhile, we do have evidence for an alternative explanation of what motivated Bybee to write his memo that August, thanks to the comprehensive Senate Armed Services Committee report on detainees released last week.

The report found that Maj. Paul Burney, a United States Army psychiatrist assigned to interrogations in Guantánamo Bay that summer of 2002, told Army investigators of another White House imperative: “A large part of the time we were focused on trying to establish a link between Al Qaeda and Iraq and we were not being successful.” As higher-ups got more “frustrated” at the inability to prove this connection, the major said, “there was more and more pressure to resort to measures” that might produce that intelligence.

In other words, the ticking time bomb was not another potential Qaeda attack on America but the Bush administration’s ticking timetable for selling a war in Iraq; it wanted to pressure Congress to pass a war resolution before the 2002 midterm elections. Bybee’s memo was written the week after the then-secret (and subsequently leaked) “Downing Street memo,” in which the head of British intelligence informed Tony Blair that the Bush White House was so determined to go to war in Iraq that “the intelligence and facts were being fixed around the policy.” A month after Bybee’s memo, on Sept. 8, 2002, Cheney would make his infamous appearance on “Meet the Press,” hyping both Saddam’s W.M.D.s and the “number of contacts over the years” between Al Qaeda and Iraq. If only 9/11 could somehow be pinned on Iraq, the case for war would be a slamdunk.

But there were no links between 9/11 and Iraq, and the White House knew it. Torture may have been the last hope for coercing such bogus “intelligence” from detainees who would be tempted to say anything to stop the waterboarding.

Last week Bush-Cheney defenders, true to form, dismissed the Senate Armed Services Committee report as “partisan.” But as the committee chairman, Carl Levin, told me, the report received unanimous support from its members — John McCain, Lindsey Graham and Joe Lieberman included.

Levin also emphasized the report’s accounts of military lawyers who dissented from White House doctrine — only to be disregarded. The Bush administration was “driven,” Levin said. By what? “They’d say it was to get more information. But they were desperate to find a link between Al Qaeda and Iraq.”

Five years after the Abu Ghraib revelations, we must acknowledge that our government methodically authorized torture and lied about it. But we also must contemplate the possibility that it did so not just out of a sincere, if criminally misguided, desire to “protect” us but also to promote an unnecessary and catastrophic war. Instead of saving us from “another 9/11,” torture was a tool in the campaign to falsify and exploit 9/11 so that fearful Americans would be bamboozled into a mission that had nothing to do with Al Qaeda. The lying about Iraq remains the original sin from which flows much of the Bush White House’s illegality.

Levin suggests — and I agree — that as additional fact-finding plays out, it’s time for the Justice Department to enlist a panel of two or three apolitical outsiders, perhaps retired federal judges, “to review the mass of material” we already have. The fundamental truth is there, as it long has been. The panel can recommend a legal path that will insure accountability for this wholesale betrayal of American values.

President Obama can talk all he wants about not looking back, but this grotesque past is bigger than even he is. It won’t vanish into a memory hole any more than Andersonville, World War II internment camps or My Lai. The White House, Congress and politicians of both parties should get out of the way. We don’t need another commission. We don’t need any Capitol Hill witch hunts. What we must have are fair trials that at long last uphold and reclaim our nation’s commitment to the rule of law.

======================


Sunday, April 12, 2009

Updated list of things to do....

Essential things that must be done, and aren't being proposed by the Administration or Congress (or anyone outside of the progressive blogs):

1) Reinstate the Glass-Steagall Act.

2) Stop the exemption for over-the-counter derivatives.

3) Rescind the Bankruptcy Bill of 2005.

4) Temporary "nationalization" (or call it another word) of the "too big to fail" zombie banking houses. Break them up again. "Too big to fail" is to big to exist in a sustainble healthy economy.

5) Look into closing the Fed, and let the gov't "own" the
money supply, not a private unaccountable front for the
very wealthy and more than average power/status-hungry
elite using The Fed.)

no. 6) is perhaps the most essential - public funding of campaigns. I know the right wing packed Supreme Court (4-3. I hope) declared money to be "speech" and therefore protected by the 1st amendment. I hope that doesn't nullify public funding. Of course, even before that decision, getiing Congress to pass a law shutting down their gravy train never succeeded, despite Public Citizen, Common Cause, and a lot of voters' appeals. But I don't see any other way to TRULY get the corporate corruption out of Washington.

7) Restore the Fairness Doctrine to broadcasting, which was done away with in relative stealth during the Reagan administration, and has given us a huge right-tilt wacko radio and the propaganda wacko right wing Fox News Channel.

8) Reform credit card companies (the huge Wall St. banks that have been so beneficial to the world economy) - basically, reinstate USURY laws.

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Also, get rid of Geithner/Summers; replace them with people who will work for Main St. and the public interest, not in the interests of the plutocratic elite on Wall St. who (along with their paid-for cohorts in government, who lifted regulations above) got us into this mess.

Too big to fail is too big to exist; enforce the anti-trust laws.

Despite the Supreme Court declaring money "free speech," the only way out is 100% transparent public financing of campaigns. And maybe some legislators will have the guts to pass a law undoing the designation of corporations as "persons" under the law enacted toward the end of the 19th century, which ushed in the first Robber Baron Gilded Age.

Saturday, April 11, 2009

Re-membering

Advice from Self to my self - rekindling my higher self - If you're afraid to go transpersonal in public, don't be. You're not being vulnerable to hurt; you can shine on in the Kosmic-Joke-Love being strong with the Power of Love, although it IS easier to put the shell up and be like most people and live in a (an illusory unhappy lonely bummed out to some extent) shell.

Good column by Krugman

The New York Times
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April 10, 2009
Op-Ed Columnist

Making Banking Boring

Thirty-plus years ago, when I was a graduate student in economics, only the least ambitious of my classmates sought careers in the financial world. Even then, investment banks paid more than teaching or public service — but not that much more, and anyway, everyone knew that banking was, well, boring.

In the years that followed, of course, banking became anything but boring. Wheeling and dealing flourished, and pay scales in finance shot up, drawing in many of the nation’s best and brightest young people (O.K., I’m not so sure about the “best” part). And we were assured that our supersized financial sector was the key to prosperity.

Instead, however, finance turned into the monster that ate the world economy.

Recently, the economists Thomas Philippon and Ariell Reshef circulated a paper that could have been titled “The Rise and Fall of Boring Banking” (it’s actually titled “Wages and Human Capital in the U.S. Financial Industry, 1909-2006”). They show that banking in America has gone through three eras over the past century.

Before 1930, banking was an exciting industry featuring a number of larger-than-life figures, who built giant financial empires (some of which later turned out to have been based on fraud). This highflying finance sector presided over a rapid increase in debt: Household debt as a percentage of G.D.P. almost doubled between World War I and 1929.

During this first era of high finance, bankers were, on average, paid much more than their counterparts in other industries. But finance lost its glamour when the banking system collapsed during the Great Depression.

The banking industry that emerged from that collapse was tightly regulated, far less colorful than it had been before the Depression, and far less lucrative for those who ran it. Banking became boring, partly because bankers were so conservative about lending: Household debt, which had fallen sharply as a percentage of G.D.P. during the Depression and World War II, stayed far below pre-1930s levels.

Strange to say, this era of boring banking was also an era of spectacular economic progress for most Americans.

After 1980, however, as the political winds shifted, many of the regulations on banks were lifted — and banking became exciting again. Debt began rising rapidly, eventually reaching just about the same level relative to G.D.P. as in 1929. And the financial industry exploded in size. By the middle of this decade, it accounted for a third of corporate profits.

As these changes took place, finance again became a high-paying career — spectacularly high-paying for those who built new financial empires. Indeed, soaring incomes in finance played a large role in creating America’s second Gilded Age.

Needless to say, the new superstars believed that they had earned their wealth. “I think that the results our company had, which is where the great majority of my wealth came from, justified what I got,” said Sanford Weill in 2007, a year after he had retired from Citigroup. And many economists agreed.

Only a few people warned that this supercharged financial system might come to a bad end. Perhaps the most notable Cassandra was Raghuram Rajan of the University of Chicago, a former chief economist at the International Monetary Fund, who argued at a 2005 conference that the rapid growth of finance had increased the risk of a “catastrophic meltdown.” But other participants in the conference, including Lawrence Summers, now the head of the National Economic Council, ridiculed Mr. Rajan’s concerns.

And the meltdown came.

Much of the seeming success of the financial industry has now been revealed as an illusion. (Citigroup stock has lost more than 90 percent of its value since Mr. Weill congratulated himself.) Worse yet, the collapse of the financial house of cards has wreaked havoc with the rest of the economy, with world trade and industrial output actually falling faster than they did in the Great Depression. And the catastrophe has led to calls for much more regulation of the financial industry.

But my sense is that policy makers are still thinking mainly about rearranging the boxes on the bank supervisory organization chart. They’re not at all ready to do what needs to be done — which is to make banking boring again.

Part of the problem is that boring banking would mean poorer bankers, and the financial industry still has a lot of friends in high places. But it’s also a matter of ideology: Despite everything that has happened, most people in positions of power still associate fancy finance with economic progress.

Can they be persuaded otherwise? Will we find the will to pursue serious financial reform? If not, the current crisis won’t be a one-time event; it will be the shape of things to come.

David Brooks is off today.


PLEASE SIGN THIS PETITION


Petition - please sign if you agree

Here is a petition:

Tell Obama: Stop blocking court review of illegal wiretapping.

LINK


Add Image

Monday, April 06, 2009

Coda to yesterday's post

Coda - I KNEW I shoulda looked harder for a Spiritual politically progressive (looking and experimenting with ways to manage community in win-win-win-etc.etc. more democratic-holonic methods and ways lol. Hard to find, with people needing so much work on their "lower"selves, the noise of which unfinished business gets in the way all the time including some of mine. You have to heal your lower self holes, projections, self-hate, negative beliefs, blocks, before you can evolve and STAY in higher consciousness (BIG MIND BIG HEART).

Sunday, April 05, 2009

It's not going as well as I wish, to put it mildly

I'm more than slightly down at the moment. Eight years of terrible regression, destruction, waste and lost opportunity. And now, we find confimred that Obama is in with the old-thinking power-and-wealth seeking and hoarding plutocrats, even if he is in the "liberal" wing of it (Obama: "There is not point in looking back at the mistakes made"), the banksters have ruined the economy of the world for many, many years to come. Regressed mythically based cruel societies like many in the middle east, in Asia, elsewhere, including parts of our American population continue to thrive, species like bees and frogs, crucial to the biosphere (and in the case of bees, crucial to our food stupply of many fruits and some vegetables; in the case of frogs, crucial to finding amazing new chemicals on their skins to alleviate and potentially heal many human diseases) are being exterminated; population growth is soaring, global warming is reaching a tipping point alarmingly soon. Visionaries like me and others in the Whole Earth movement dating from the late sixties saw all of this - and the worst outcomes are coming true.

Appalling behavior in Iraq and Iran

It's appalling but not surprising that Iraq and Iran both kill gays and that Iran's government tortures dissidents at all, but even worse, so cruelly and barbarically.

They're in medieval (or earlier) mythic and lower realms of consciousness, that doesn't value individual rights, but only adherence to the strict leader or guide.

As horrible as Saddam was, I knew that the invasion would unleash even more backward and barbaric tribal laws, punishments, taboos and norms that were in place under the cruel dictator.

All of this can be mapped by AQAL; here's one person's summary - for brevity, I can't assure its utter correctness - more editing in this space later, but make your own searches and links - there's Ken Wilber's site - http://www.kenwilber.com and http://www.integrallife.com

Saturday, April 04, 2009

Reaganomics

And Grammnomics, and Friedmanomics, and Rubinomics, and Summersnomics, etc., etc,. etc. - all the "titans" (in their own minds, strictly) of the plutocracy...

From 1980 to 2006:

Richest 1% have seen a 300% increase in INCOME to 23% of our TOTAL
INCOME!

Rest of us 99% have seen a 20% reduction in OUR INCOMES!

LATHER, RINSE, REPEAT, REPEAT, REPEAT....

Five essential things that must be done, and aren't being proposed by the Administration or Congress (or anyone outside of the progressive blogs):

1) Reinstate the Glass-Steagall Act.

2) Stop the exemption for over-the-counter derivatives.

3) Rescind the Bankruptcy Bill of 2005.

4) Temporary "nationalization" (or call it another word) of the "too big to fail" zombie banking houses. Break them up again. "Too big to fail" is to big to exist in a sustainble healthy economy.

5) Look into closing the Fed, and let the gov't "own" the
money supply, not a private unaccountable front for the
very wealthy and more than average power/status-hungry
elite using The Fed.)

no. 6) is perhaps the most essential - 100% taxpayer public funding of campaigns. I know the right wing packed Supreme Court (4-3. I hope) declared money to be "speech" and therefore protected by the 1st amendment. I hope that doesn't nullify public funding. Of course, even before that decision, getting Congress to pass a law shutting down their gravy train never succeeded, despite Public Citizen, Common Cause, and a lot of voters' appeals. But I don't see any other way to TRULY get the corporate corruption out of Washington.
--------------

Also, get rid of Geithner/Summers; replace them with people who will work for Main St. and the public interest, not in the interests of the plutocratic elite on Wall St. who (along with their paid-for cohorts in government, who lifted regulations above) got us into this mess.

Too big to fail is too big to exist; enforce the anti-trust laws.

Despite the Supreme Court declaring money "free speech," the only way out is 100% transparent public financing of campaigns

Wednesday, April 01, 2009

Obama confirms my "fears" in press conference

Obama is giving his first press conference of the G20 trip in London right now.

He says he doesn't believe in looking back and assigning blame. The question was - can you assign blame for the crisis - wasn't it a failure of regulation?

He says there weren't adequate regulations but he and Geithner are proposing them now. The fact that he is NOT acknowledging the dismantling in the 90s and 00s of the New Deal and subsequent regulations is confirming my doubts about him. I'm sure he knows about them. Half of the commenters at any blog know about them. This confirms that he is there installing new regulations that only measure risk with a stress test. He is going to let the giant "too-big-to-fail" banking/investment behemoths that brought us to ruin CONTINUE ON. Whether he is being used, is a true believer, or is consciously going along to be one of the elite matters NOT.

What a disappointment!

Establishment neo-liberal crap - Clinton redux.

yech!

Tuesday, March 31, 2009

My vision of Obama ftoday right now

To be frank, I'm quite disappointed.

I think he is a corporate centrist, a tad bit left of center, perhaps, but not much. He's an establishment guy all the way, meaning the corporate kleptocratic plutocracy. I think he's quite intelligent, but not brilliant like I had hoped, not at all. And he gets a "C" for not seeing and ACTING past the current corpotocracy. Instead with Summers and Geithner, he's rescuing and solidifying it.

Required Reading

"The Big Takeover" - Matt Taibi - ROLLING STONE

"The Quiet Coup"
- Simon Johnson -THE ATLANTIC -

"A Scary Corporate Coup is Underway -- We've Got to Stop It"
- William Greider - Alternet (from THE NATION) -

Please sign the petition at the last article, if you agree.

Thursday, March 26, 2009

TO DO LIST - ASAP

Five essential things that must be done, and aren't being proposed by the Administration or Congress (or anyone outside of the progressive blogs):

1) Reinstate the Glass-Steagall Act.

2) Stop the exemption for over-the-counter derivatives.

3) Rescind the Bankruptcy Bill of 2005.

4) Temporary "nationalization" (or call it another word) of the "too big to fail" zombie banking houses. Break them up again. "Too big to fail" is to big to exist in a sustainble healthy economy.

5) Look into closing the Fed, and let the gov't "own" the
money supply, not a private unaccountable front for the
very wealthy and more than average power/status-hungry
elite using The Fed.)

--------------

Also, get rid of Geithner/Summers; replace them with people who will work for Main St. and the public interest, not in the interests of the plutocratic elite on Wall St. who (along with their paid-for cohorts in governemnt, who lifted regulations above) got us into this mess.

Tuesday, March 24, 2009

Blog post of the week (or month)!

Terrific diary entry at Daily Kos today -

Enough with Geithner/Krugman. There's Work to Do
by thereisnospoon
Tue Mar 24, 2009 at 03:09:50 PM PDT

link

MUST READ!


Sunday, March 22, 2009

Your comment saddens me

A particularly good comment imo from "Valkyrie607" in Paul Krugman's blog
"Despair Over Financial Policy" Mar 21 09 -

link here

Read the Krugman post first.

Here's my comment (it's awaiting moderation at the NYT currently (032209_0231H):

I saw this coming when he chose Geithner and Summers last November. I was hoping to be proved wrong, or at least wrong enough that there would be serious reform and re-regulation, certainly not the view that the current set-up is wonderfully sound (!). That’s cratering (or colluding) with the Wall St. rich special interests, to put it bluntly. Progressives and others unhappy with this state of events need to start putting pressure on the Administration. The last nation-wide right-left spectrum wide outrage at the AIG bonuses show that populism is growing and booming loudly. Let’s have progressive populist pressure for Obama and his treasury to change course.

— racetoinfinity

===================

WOW! The following comment from 'bob paine' is blunt and I'm afraid it's what I've been thinking (except I haven't gone as far as to forecast very hard times)

  1. 186. March 21, 2009 5:46 pm Link

    TYhe President has completely surrounded and cushioned himself with the boys from Goldman Sachs and Citigroup.

    These monsters are making themselves and their family and friends whole before everything falls completely apart.

    The idea that the President was for the common man or the little guy has been exposed as nothing but deceit.

    The time has arrived to prepare for very hard times.

    — bob paine



Monday, March 16, 2009

SCRUB, RINSE, REPEAT

Props. to Rachel Maddow for the title....

FOUR essential things that must be done, and aren't being proposed by the

Administration or Congress (or anyone outside of the progressive blogs):

1) Reinstate the Glass-Steagall Act.

2) Stop the exemption for over-the-counter derivatives.

3) Rescind the Bankruptcy Bill of 2005.

4) Temporary "nationalization" (or call it another word) of the "too big to fail" zombie

banking houses.

--------------

Also, get rid of Geithner/Summers; replace them with people who will work for Main St. and the public interest, not in the interests of the plutocratic elite on Wall St. who (along with their paid-for cohorts in government, who lifted regulations above) got us into this mess.

Obama may have been naive to hire them, getting advice that they were "insiders," and only "insideders" can fix this, but then I wonder how informed he is? Easier to believe that Obama has taken a lot of money from big Finance and/or knows he must please them basically to get anything else done.

Nonetheless, Geither/Summers must go!

Friday, March 13, 2009

Three things that must be done


1) Reinstate the Glass-Steagall Act.

2) Stop the exemption for over-the-counter derivatives.

3) Rescind the Bankruptcy Bill of 2005
.

Thursday, March 05, 2009

Geithner and Summers must go!

I'm calling on Geithner and Summers to resign. Both are Robert ("Citigroup") Rubin acolytes from the Clinton era, and very cozy with Wall St, hardly the change we need.

Monday, March 02, 2009

PLEASE SIGN PETITION URGING OBAMA TO NATIONALIZE INSOLVENT BIG BANKS

I urge you to sign this petition:

PRESIDENT OBAMA: IT'S TIME TO NATINONALIZE THE INSOLVENT BANKS.

link -

click HERE

It's the only way to stop this free-fall.

See this excellent post at Huff Post by Robert Kuttner that I read yesterday pertaining to this -

http://www.huffingtonpost.com/robert-kuttner/geithners-folly_b_170928.html

(One thing he writes is that Obama doesn't have to call it "nationalization", which is red meat to dumb ditto heads and "Joe the Plumber" admirers - he can "restructure" them through the FDIC. )

Sunday, March 01, 2009

Martin Wolf voice of sanity save one blind? spot

Obama & team are BLOWING it by shielding the following boards and shareholders of pain and loss they should have to face by not restructuring thru the FDIC (alternative to nationalization) BoA, Citigroup/bank and any other huge zombie banks.

The mistake he makes is to call Obama's team "fresh" and "unconnected from the making of the mess" - Even in Britain someone like Wolf would know their role under Clinton and Robert Rubin - it's actually fishy that he would say that, unless he HOPED they would restart their consciousnesses and beliefs. I think it's fishy that Obama appointed Summers and Geithner - smells of being puppets of the big banking interests. We will see what the stress test is like, and if it weeds out zombies however big, i.e. BoA and Citigroup.

See video of Martin Wolf being intvwed. by F. Zakaria on CNN this morning (090103) (Mar 01 09) -

http://www.cnn.com/video/#/video/bestoftv/2009/03/01/gps.martin.wolf.intv.cnn

Saturday, February 28, 2009

Another integral melange off the cuff

I was going to post this as a comment to Ms. Huffington's latest post (Credit Card Crisis, part II), but of course, it veers way off the topic and could be seen as fatuous at first glance:

Ok, commenters ------- I dare someone to make a comment, now lol -

----------------------------------

As Arianna said in her post today, the bank(st)ers thought as they plunged into the sliced and diced ever riskier credit default swaps and other "exotic instruments," with a "consequences be damned" attitude.

That's the internal individual and collective problem with unregulated "pure, free" capitalism. Its only value is the largest short term (usually quarterly) profit - that's IT.

In that world, if you don't have a shining Spiritual inside to help you guide your values and behavior, and the choices in the general culture are regress to mythic Christianity (hopefully rational and postmodern Christianity is on the rise, finally) or this kind of nihilisitc hedonism and materialm, (or they both can go together because the shallowness of mythic belief leaves a big hole where being "bad" actually feels temporarily good.)

Saturday, February 14, 2009

Globalization - an old goal going back to the sixties or earlier

Globalisation - The Fed - The IMF -
The Bildersberg Group - The Council on Foreign Relations -
David Rockefeller - George Bush - Bill Clinton - no name big barons of pharma, defense, oil and energy, media, arms, drugs (to some extent), land.

Tuesday, February 03, 2009

Interdependence




Interdependence: individual autonomous whole or close to whole (illusion is that it is ever whole or never whole) "units" retaining their autonomy and participating in the transcendent unity that unites all and them while preserving individual uniqueness. The universal containing the unique. And this evolution is the kosmic joke - it's a laugh.

Obama: already the disappointment

NYTimes.com
February 2, 2009
Op-Ed Columnist
Bailouts for Bunglers
By PAUL KRUGMAN

Question: what happens if you lose vast amounts of other people’s money? Answer: you get a big gift from the federal government — but the president says some very harsh things about you before forking over the cash.

Am I being unfair? I hope so. But right now that’s what seems to be happening.

Just to be clear, I’m not talking about the Obama administration’s plan to support jobs and output with a large, temporary rise in federal spending, which is very much the right thing to do. I’m talking, instead, about the administration’s plans for a banking system rescue — plans that are shaping up as a classic exercise in “lemon socialism”: taxpayers bear the cost if things go wrong, but stockholders and executives get the benefits if things go right.

When I read recent remarks on financial policy by top Obama administration officials, I feel as if I’ve entered a time warp — as if it’s still 2005, Alan Greenspan is still the Maestro, and bankers are still heroes of capitalism.

“We have a financial system that is run by private shareholders, managed by private institutions, and we’d like to do our best to preserve that system,” says Timothy Geithner, the Treasury secretary — as he prepares to put taxpayers on the hook for that system’s immense losses.

Meanwhile, a Washington Post report based on administration sources says that Mr. Geithner and Lawrence Summers, President Obama’s top economic adviser, “think governments make poor bank managers” — as opposed, presumably, to the private-sector geniuses who managed to lose more than a trillion dollars in the space of a few years.

And this prejudice in favor of private control, even when the government is putting up all the money, seems to be warping the administration’s response to the financial crisis.

Now, something must be done to shore up the financial system. The chaos after Lehman Brothers failed showed that letting major financial institutions collapse can be very bad for the economy’s health. And a number of major institutions are dangerously close to the edge.

So banks need more capital. In normal times, banks raise capital by selling stock to private investors, who receive a share in the bank’s ownership in return. You might think, then, that if banks currently can’t or won’t raise enough capital from private investors, the government should do what a private investor would: provide capital in return for partial ownership.

But bank stocks are worth so little these days — Citigroup and Bank of America have a combined market value of only $52 billion — that the ownership wouldn’t be partial: pumping in enough taxpayer money to make the banks sound would, in effect, turn them into publicly owned enterprises.

My response to this prospect is: so? If taxpayers are footing the bill for rescuing the banks, why shouldn’t they get ownership, at least until private buyers can be found? But the Obama administration appears to be tying itself in knots to avoid this outcome.

If news reports are right, the bank rescue plan will contain two main elements: government purchases of some troubled bank assets and guarantees against losses on other assets. The guarantees would represent a big gift to bank stockholders; the purchases might not, if the price was fair — but prices would, The Financial Times reports, probably be based on “valuation models” rather than market prices, suggesting that the government would be making a big gift here, too.

And in return for what is likely to be a huge subsidy to stockholders, taxpayers will get, well, nothing.

Will there at least be limits on executive compensation, to prevent more of the rip-offs that have enraged the public? President Obama denounced Wall Street bonuses in his latest weekly address — but according to The Washington Post, “the administration is likely to refrain from imposing tougher restrictions on executive compensation at most firms receiving government aid” because “harsh limits could discourage some firms from asking for aid.” This suggests that Mr. Obama’s tough talk is just for show.

Meanwhile, Wall Street’s culture of excess seems to have been barely dented by the crisis. “Say I’m a banker and I created $30 million. I should get a part of that,” one banker told The New York Times. And if you’re a banker and you destroyed $30 billion? Uncle Sam to the rescue!

There’s more at stake here than fairness, although that matters too. Saving the economy is going to be very expensive: that $800 billion stimulus plan is probably just a down payment, and rescuing the financial system, even if it’s done right, is going to cost hundreds of billions more. We can’t afford to squander money giving huge windfalls to banks and their executives, merely to preserve the illusion of private ownership.

end.

====================

My fears (and anger) (and a lot of other progressives') about Obama picking all these neoliberal retreads from the Clinton administration/era for his economic team seem to have been warranted.

Sunday, February 01, 2009

Why the right is less evolved than the progressive left

The conservatives' problem is that they believe that the public good is a "socialist" lessening of freedom for the individual, a regression to a pre-individual rights collectivism (essentially medieval, but practiced in Communist countries [and fascist] in this century). The truth is that there is a HIGHER plane of the collective us, the public good, that is comprised of individuals with their full rights and creativity intact and even enhanced (in the case of minorities) working together for the common good. We're all in the same boat, not in separate boats fighting each other, dog-eat-dog. The right is less developed on the evolutionary chain than progressives. The progression (with each level including the former is dependence-independence-interdependece). The conservatives can't even SEE interdependence.

Friday, January 23, 2009

BANK (GANG)STERS



The banksters just got away with the largest crime spree (325 billion) on the Public Treasury in U.S. history; it was quite deliberate.

Wednesday, January 14, 2009

Integral Cultural and Social History - A Key Period to Study

The mid-sixties to mid-seventies ushered in the postmoidern era with its transformation of culture and society, People transformed (grew), translated (failed to grow but adapted until stress cracked that) or resisted (reacted against it and continue to). Also there are plenty of pathological pre-/trans confusions that arose that were not dealt with.

In fact the reactionaries who founght the REGRESSIONS to pre-modern (not in the service of re-integration to post-modern/Integral) - were progressives relative to these regressions, but were and have been reactionaries to progressive healthy (whole) (trans-modern) post-modern and Integral currents.

Tuesday, January 13, 2009

OP ED BY BONO NYT 010909

....and my comment about it:

January 11, 2009
Op-Ed Guest Columnist
Notes From the Chairman
By BONO

Dublin

Once upon a couple of weeks ago ...

I’m in a crush in a Dublin pub around New Year’s. Glasses clinking clicking, clashing crashing in Gaelic revelry: swinging doors, sweethearts falling in and out of the season’s blessings, family feuds subsumed or resumed. Malt joy and ginger despair are all in the queue to be served on this, the quarter-of-a-millennium mark since Arthur Guinness first put velvety blackness in a pint glass.

Interesting mood. The new Irish money has been gambled and lost; the Celtic Tiger’s tail is between its legs as builders and bankers laugh uneasy and hard at the last year, and swallow uneasy and hard at the new. There’s a voice on the speakers that wakes everyone out of the moment: it’s Frank Sinatra singing “My Way.” His ode to defiance is four decades old this year and everyone sings along for a lifetime of reasons. I am struck by the one quality his voice lacks: Sentimentality.

Is this knotted fist of a voice a clue to the next year? In the mist of uncertainty in your business life, your love life, your life life, why is Sinatra’s voice such a foghorn — such confidence in nervous times allowing you romance but knocking your rose-tinted glasses off your nose, if you get too carried away.

A call to believability.

A voice that says, “Don’t lie to me now.”

That says, “Baby, if there’s someone else, tell me now.”

Fabulous, not fabulist. Honesty to hang your hat on.

As the year rolls over (and with it many carousers), the emotion in the room tussles between hope and fear, expectation and trepidation. Wherever you end up, his voice takes you by the hand.



Now I’m back in my own house in Dublin, uncorking some nice wine, ready for the vinegar it can turn to when families and friends overindulge, as I am about to. Right by the hole-in-the-wall cellar, I look up to see a vision in yellow: a painting Frank sent to me after I sang “I’ve Got You Under My Skin” with him on the 1993 “Duets” album. One from his own hand. A mad yellow canvas of violent concentric circles gyrating across a desert plain. Francis Albert Sinatra, painter, modernista.

We had spent some time in his house in Palm Springs, which was a thrill — looking out onto the desert and hills, no gingham for miles. Plenty of miles, though, Miles Davis. And plenty of talk of jazz. That’s when he showed me the painting. I was thinking the circles were like the diameter of a horn, the bell of a trumpet, so I said so.

“The painting is called ‘Jazz’ and you can have it.”

I said I had heard he was one of Miles Davis’s biggest influences.

Little pithy replies:

“I don’t usually hang with men who wear earrings.”

“Miles Davis never wasted a note, kid — or a word on a fool.”

“Jazz is about the moment you’re in. Being modern’s not about the future, it’s about the present.”

I think about this now, in this new year. The Big Bang of pop music telling me it’s all about the moment, a fresh canvas and never overworking the paint. I wonder what he would have thought of the time it’s taken me and my bandmates to finish albums, he with his famous impatience for directors, producers — anyone, really — fussing about. I’m sure he’s right. Fully inhabiting the moment during that tiny dot of time after you’ve pressed “record” is what makes it eternal. If, like Frank, you sing it like you’ll never sing it again. If, like Frank, you sing it like you never have before.

If.



If you want to hear the least sentimental voice in the history of pop music finally crack, though — shhhh — find the version of Frank’s ode to insomnia, “One for My Baby (and One More for the Road),” hidden on “Duets.” Listen through to the end and you will hear the great man break as he truly sobs on the line, “It’s a long, long, long road.” I kid you not.

Like Bob Dylan’s, Nina Simone’s, Pavarotti’s, Sinatra’s voice is improved by age, by years spent fermenting in cracked and whiskeyed oak barrels. As a communicator, hitting the notes is only part of the story, of course.

Singers, more than other musicians, depend on what they know — as opposed to what they don’t want to know about the world. While there is a danger in this — the loss of naïveté, for instance, which holds its own certain power — interpretive skills generally gain in the course of a life well abused.

Want an example? Here’s an example. Take two of the versions of Sinatra singing “My Way.”

The first was recorded in 1969 when the Chairman of the Board said to Paul Anka, who wrote the song for him: “I’m quitting the business. I’m sick of it. I’m getting the hell out.” In this reading, the song is a boast — more kiss-off than send-off — embodying all the machismo a man can muster about the mistakes he’s made on the way from here to everywhere.

In the later recording, Frank is 78. The Don Costa arrangement is the same, the words and melody are exactly the same, but this time the song has become a heart-stopping, heartbreaking song of defeat. The singer’s hubris is out the door. (This singer, i.e. me, is in a puddle.) The song has become an apology.

To what end? Duality, complexity. I was lucky to duet with a man who understood duality, who had the talent to hear two opposing ideas in a single song, and the wisdom to know which side to reveal at which moment.

This is our moment. What do we hear?

In the pub, on the occasion of this new year, as the room rises in a deafening chorus — “I did it my way” — I and this full house of Irish rabble-rousers hear in this staple of the American songbook both sides of the singer and the song, hubris and humility, blue eyes and red.

Bono, lead singer of the band U2 and co-founder of the advocacy group ONE, is a contributing columnist for The Times.

===========

I wonder if Sinatra was AWARE of the pathos in his voice you describe in the second version of "My Way," and, if so, was he aware of the reason (hardened ego walling oneself off from the rest of the world)(and that that pathos can lead to letting go of the ego).

Be that as it may, if it was sentimental, it was self-pitying; if it was full of feeling-attention, it was a transformation upwards and in growth and development. I'll have to listen to it.

The LEAST we can expect from our politicians and media now is unsentimental truth and rational evidential honesty. That requirement has been in place for at least 150 years in modern cultures. The fact that we are still dealing with myths and downright lying from top leaders is disturbing, and suggets decadence on top of stasis.

Let's work for an interdependent cooperative Integral consciousness (see Ken Wilber and 'Spiral Dynamics') in leadership and media. It's late in the game for the planet to aspire to less.

Interesting Narrative

Interesting narrative - It's going to be interesting to see if the narrative of Obama's hard right center turn (that is, to Clintonian triagulation and DLC neoliberalism) will be covered by the MSM, and how much protest the progressives mount (or not).

---------

One of the missions of Bushco was to shrink, starve, discredit, eviscerate government. Mission accomplished!

Friday, January 09, 2009

Defining Problems Sspawned by the New Gilded Age Now Crashed

corruption, mismanagement, incompetence deliberately placed or not corporate buy out or theft from treasury of integrity

Notes_010909

RUSSELL SIMMONS : HE REPRESENTS A SHIFT IN CONSCIOUSNESS FOR US - LOTS OF PEOPLE SEEING US AS EVOLVING AND HE'S A BIG PART OF THAT. I wish that were true, but he seems to present 1st tier consciousness in interior and external manifestations - orange/green level - lots of orange level - a lot of status quo.
/sadly, it's all words with no reality for him - I think he's had a peak experience or even longer tastes of it more than once, but he's faking it now, like a lot of people do.



Ok - I just watched the above video, and I'd say he's getting there with his practice, but he projected more onto Obama than I think is there until Obama shows me. Now more wishful thinking than just plain pretending and re-presenting.

Blockade or let go of ego and then see?

Republicans like to live in their fairy-tale mythic live-by-the-rules conformity mythic/rational standards, good and bad people, and conformism level. Poor things, psychically. We need (or rather - that level IS), but we don't want people "stuck" there, dragging the Kosmic Joke load.

--------------------

We need a new broad counterculture as was nascent infrom the mid-late sixties/(very early - until Nixon's '72 win) early seventies - a new counterculture (now more technically capable of networking and using the cybersphere integrally. Ken Wilber provides good maps, I think (and others do), but how to incorporate and heal and help move along) the large various groups "stuck" at pre-rational levels of development like too much of hip hop and virtually all of evangelical America and too much still lived in at the bottom range of "Financial" atheistic rational-Ayn Rand level only mid-rational level, financially narcissistic (consoling themselves for fear and sleeping with self-contraction), and decadent in quest for power brutal selfish on the brute pre-rational little tyrant shadowy paranoid while self-justifying RE (needle stuck" Needle stuck" (This is a recording - only standard voices will be heard) Republicans. It's time to reclaim organic principles - onlky way to COLLECTIVELY - and that quadrant has to be esteemed and realized again in a post-rational mystical way - communitarian trans-rational joy and commitment to co-create an evolved inner and outer enviroment within the Beast - resist corporatism and its lethal (in the long run for the wellbeing of (the Planet and its consciousness - us I am that I am always abides tho) plasticity.

The Kosmic Joke

Let Love Rule

Live in the Light

Crate new community again - use the net to transform and unify.

Wednesday, December 31, 2008

Raw thoughts unedited

We need trans-egoic leadership now more than ever. We're being led by people mostly (to different degrees) largely "stuck" in their egos - they don't want to/haven't evolved to that "level". They crave status, power, money, safety beliefs in having much much more than they need, and incomplete / sick self-esteems that "need" confirmation in status and material wealth and escape in sensuality.

Unfortunately, I believe that includes Obama, though I think he is closer to breaking through the "ego ceiling" than many, for one reason because, thankfully I imagine that even growing up now a guy of his age with superior intelligence has grown farther on the spiral of devlopment than I would have 10 years ago, but actually that's not true - I was higher because I was in the visionary late '60s early '70's sub-generation.

A close male relative of mine 20 years younger who is very bright was going to be a professor of art, but switched to law school and is a copyright lawyer now for big corporations, I believe, which I sort of understand, at least I understand the much more pay and opportunity angle, but he converted to Mormonism, which is mythic-membership, mythic/rational (borderline - "straddling"), at best.

Of course the choices on the Spiritual line for Westerners are New Age mishmash of religion and Spirituality, mythic Eastern religion, Eastern Spirituality, mythic Western religion, and little else - Integral Spirituality is in short shrift for the general populace, there are politically progressive rational Christian religious denominations but they are a small minority. My relative encountered the edge of secular culture, postmodern relativistic aperspectival pluralism, and, of course wasn't satisfied with the absurd+, in place of wholeness and Love and Light and Life.

Tuesday, December 16, 2008

I was astonished that I didn't know much at all about this

From "WEB OF DEBT" by Ellen Goodman

original site here

Introduction

CAPTURED BY THE DEBT SPIDER

President Andrew Jackson called the banking cartel a "hydra-headed monster eating the flesh of the common man." New York Mayor John Hylan, writing in the 1920s, called it a "giant octopus" that "seizes in its long and powerful tentacles our executive officers, our legislative bodies, our schools, our courts, our newspapers, and every agency created for the public protection." The debt spider has devoured farms, homes and whole countries that have become trapped in its web. In a February 2005 article called "The Death of Banking," financial commentator Hans Schicht wrote:

The fact that the Banker is allowed to extend credit several times his own capital base and that the Banking Cartels, the Central Banks, are licensed to issue fresh paper money in exchange for treasury paper, [has] provided them with free lunch for eternity. . . . Through a network of anonymous financial spider webbing only a handful of global King Bankers own and control it all. . . . Everybody, people, enterprise, State and foreign countries, all have become slaves chained to the Banker's credit ropes.1

Schicht writes that he had an opportunity in his career to observe the wizards of finance as an insider at close range. The game has gotten so centralized and concentrated, he says, that the greater part of U.S. banking and enterprise is now under the control of a small inner circle of men. He calls the game "spider webbing." Its rules include:

* Making any concentration of wealth invisible.
* Exercising control through "leverage" – mergers, takeovers, chain share holdings where one company holds shares of other companies, conditions annexed to loans, and so forth.
* Exercising tight personal management and control, with a minimum of insiders and front-men who themselves have only partial knowledge of the game.

The late Dr. Carroll Quigley was a writer and professor of history at Georgetown University, where he was President Bill Clinton's mentor. Dr. Quigley wrote from personal knowledge of an elite clique of global financiers bent on controlling the world. Their aim, he said, was "nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole." This system was "to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements."2 He called this clique simply the "international bankers." Their essence was not race, religion or nationality but was just a passion for control over other humans. The key to their success was that they would control and manipulate the money system of a nation while letting it appear to be controlled by the government.

The international bankers have succeeded in doing more than just controlling the money supply. Today they actually create the money supply, while making it appear to be created by the government. This devious scheme was revealed by Sir Josiah Stamp, director of the Bank of England and the second richest man in Britain in the 1920s. Speaking at the University of Texas in 1927, he dropped this bombshell:

The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banking was conceived in inequity and born in sin . . . . Bankers own the earth. Take it away from them but leave them the power to create money, and, with a flick of a pen, they will create enough money to buy it back again. . . . Take this great power away from them and all great fortunes like mine will disappear, for then this would be a better and happier world to live in. . . . But, if you want to continue to be the slaves of bankers and pay the cost of your own slavery, then let bankers continue to create money and control credit.3

Professor Henry C. K. Liu is an economist who graduated from Harvard and chaired a graduate department at UCLA before becoming an investment adviser for developing countries. He calls the current monetary scheme a "cruel hoax." When we wake up to that fact, he says, our entire economic world view will need to be reordered, "just as physics was subject to reordering when man's world view changed with the realization that the earth is not stationary nor is it the center of the universe."4 The hoax is that there is virtually no "real" money in the system, only debts. Except for coins, which are issued by the government and make up only about one one-thousandth of the money supply, the entire U.S. money supply now consists of debt to private banks, for money they created with accounting entries on their books. It is all done by sleight of hand; and like a magician's trick, we have to see it many times before we realize what is going on. But when we do, it changes everything. All of history has to be rewritten.

The following chapters track the web of deceit that has engulfed us in debt, and present a simple solution that could make the country solvent once again. It is not a new solution but dates back to the Constitution: the power to create money needs to be returned to the government and the people it represents. The federal debt could be paid, income taxes could be eliminated, and social programs could be expanded; and this could all be done without imposing austerity measures on the people or sparking runaway inflation. Utopian as that may sound, it represents the thinking of some of America's brightest and best, historical and contemporary, including Abraham Lincoln, Thomas Jefferson and Benjamin Franklin. Among other arresting facts explored in this book are that:

* The "Federal" Reserve is not actually federal. It is a private corporation owned by a consortium of very large multinational banks. (Chapter 13)
* Except for coins, the government does not create money. Dollar bills (Federal Reserve Notes) are created by the private Federal Reserve, which lends them to the government. (Chapter 2)

* Tangible currency (coins and dollar bills) together make up less than 3 percent of the U.S. money supply. The other 97 percent exists only as data entries on computer screens, and all of this money was created by banks in the form of loans. (Chapters 2 and 17)

* The money that banks lend is not recycled from pre-existing deposits. It is new money, which did not exist until it was lent. (Chapters 17 and 18)

* Thirty percent of the money created by banks with accounting entries is invested for their own accounts. (Chapter 18)

* The American banking system, which at one time extended productive loans to agriculture and industry, has today become a giant betting machine. An estimated $370 trillion are now riding on complex high-risk bets known as derivatives – 28 times the $13 trillion annual output of the entire U.S. economy. These bets are funded by big U.S. banks and are made largely with borrowed money created on a computer screen. Derivatives can be and have been used to manipulate markets, loot businesses, and destroy competitor economies. (Chapters 20 and 32)

* The U.S. federal debt has not been paid off since the days of Andrew Jackson. Only the interest gets paid, while the principal portion continues to grow. (Chapter 2)

* The federal income tax was instituted specifically to coerce taxpayers to pay the interest due to the banks on the federal debt. If the money supply had been created by the government rather than borrowed from banks that created it, the income tax would have been unnecessary. (Chapters 13 and 43)

* The interest alone on the federal debt will soon be more than the taxpayers can afford to pay. When we can't pay, the Federal Reserve's debt-based dollar system must collapse. (Chapter 29)

* Contrary to popular belief, creeping inflation is not caused by the government irresponsibly printing dollars. It is caused by banks expanding the money supply with loans. (Chapter 10)

* Most of the runaway inflation seen in "banana republics" has been caused, not by national governments over-printing money, but by global institutional speculators attacking local currencies and devaluing them on international markets. (Chapter 25)

* The same sort of speculative devaluation could happen to the U.S. dollar if international investors were to abandon it as a global "reserve" currency, something they are now threatening to do in retaliation for what they perceive to be American economic imperialism. (Chapters 29 and 37)

* There is a way out of this morass. The early American colonists found it, and so did Abraham Lincoln and some other national leaders: the government can take back the money-issuing power from the banks. (Chapters 8 and 24)

The bankers' Federal Reserve Notes and the government's coins represent two separate money systems that have been competing for dominance throughout recorded history. At one time, the right to issue money was the sovereign right of the king; but that right got usurped by private moneylenders. Today the sovereigns are the people, and the coins that make up less than one one-thousandth of the money supply are all that are left of our sovereign money. Many nations have successfully issued their own money, at least for a time; but the bankers' debt-money has generally infiltrated the system and taken over in the end. These concepts are so foreign to what we have been taught that it can be hard to wrap our minds around them, but the facts have been substantiated by many reliable authorities. To cite a few –

Robert H. Hemphill, Credit Manager of the Federal Reserve Bank of Atlanta, wrote in 1934:

We are completely dependent on the commercial Banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the Banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. 5

Graham Towers, Governor of the Bank of Canada from 1935 to 1955, acknowledged:

Banks create money. That is what they are for. . . . The manufacturing process to make money consists of making an entry in a book. That is all. . . . Each and every time a Bank makes a loan . . . new Bank credit is created -- brand new money.6

Robert B. Anderson, Secretary of the Treasury under Eisenhower, said in an interview reported in the August 31, 1959 issue of U.S. News and World Report:

[W]hen a bank makes a loan, it simply adds to the borrower's deposit account in the bank by the amount of the loan. The money is not taken from anyone else's deposit; it was not previously paid in to the bank by anyone. It's new money, created by the bank for the use of the borrower.

Michel Chossudovsky, Professor of Economics at the University of Ottawa, wrote during the Asian currency crisis of 1998:

[P]rivately held money reserves in the hands of "institutional speculators" far exceed the limited capabilities of the World's central banks. The latter acting individually or collectively are no longer able to fight the tide of speculative activity. Monetary policy is in the hands of private creditors who have the ability to freeze State budgets, paralyse the payments process, thwart the regular disbursement of wages to millions of workers (as in the former Soviet Union) and precipitate the collapse of production and social programmes.7

Today, Federal Reserve Notes and U.S. dollar loans dominate the economy of the world; but this international currency is not money issued by the American people or their government. It is money created and lent by a private cartel of international bankers, and this cartel has the United States itself hopelessly entangled in a web of debt. By 2006, combined personal, corporate and federal debt in the United States had reached a staggering 44 trillion dollars – four times the collective national income, or $147,312 for every man, woman and child in the country.8 The United States is legally bankrupt, defined in the dictionary as being unable to pay one's debts, being insolvent, or having liabilities in excess of a reasonable market value of assets held. By October 2006, the debt of the U.S. government had hit a breath-taking $8.5 trillion. Local, state and national governments are all so heavily in debt that they have been forced to sell off public assets to satisfy creditors. Crowded schools, crowded roads, and cutbacks in public transportation are eroding the quality of American life. A 2005 report by the American Society of Civil Engineers gave the nation's infrastructure an overall grade of D, including its roads, bridges, drinking water systems and other public works. "Americans are spending more time stuck in traffic and less time at home with their families," said the group's president. "We need to establish a comprehensive, long-term infrastructure plan."9 We need to but we can't, because government at every level is broke.

Money in the Land of Oz

If governments everywhere are in debt, who are they in debt to? The answer is that they are in debt to private banks. The "cruel hoax" is that governments are in debt for money created on a computer screen, money they could have created themselves. The vast power acquired through this sleight of hand by a small clique of men pulling the strings of government behind the scenes evokes images from The Wizard of Oz, a classic American fairytale that has become a rich source of imagery for financial commentators. Editorialist Christopher Mark wrote in a series called "The Grand Deception":

Welcome to the world of the International Banker, who like the famous film, The Wizard of Oz, stands behind the curtain of orchestrated national and international policymakers and so-called elected leaders. 10

The late Murray Rothbard, an economist of the classical Austrian School, wrote:

Money and banking have been made to appear as mysterious and arcane processes that must be guided and operated by a technocratic elite. They are nothing of the sort. In money, even more than the rest of our affairs, we have been tricked by a malignant Wizard of Oz.11

In a 2002 article titled "Who Controls the Federal Reserve System?", Victor Thorn wrote:

In essence, money has become nothing more than illusion -- an electronic figure or amount on a computer screen. . . . As time goes on, we have an increasing tendency toward being sucked into this Wizard of Oz vortex of unreality [by] magician-priests that use the illusion of money as their control device.12

James Galbraith wrote in The New American Prospect:

We are left . . . with the thought that the Federal Reserve Board does not know what it is doing. This is the "Wizard of Oz" theory, in which we pull away the curtains only to find an old man with a wrinkled face, playing with lights and loudspeakers.13

The analogies to The Wizard of Oz work for a reason. According to later commentators, the tale was actually written as a monetary allegory, at a time when the "money question" was a key issue in American politics. In the 1890s, politicians were still hotly debating who should create the nation's money and what it should consist of. Should it be created by the government, with full accountability to the people? Or should it be created by private banks behind closed doors, for the banks' own private ends?

William Jennings Bryan, the Populist candidate for President in 1896 and again in 1900, mounted the last serious challenge to the right of private bankers to create the national money supply. According to the commentators, Bryan was represented in Frank Baum's 1900 book The Wonderful Wizard of Oz by the Cowardly Lion. The Lion finally proved he was the King of Beasts by decapitating a giant spider that was terrorizing everyone in the forest. The giant spider Bryan challenged at the turn of the twentieth century was the Morgan/Rockefeller banking cartel, which was bent on usurping the power to create the nation's money from the people and their representative government.

Before World War I, two opposing systems of political economy competed for dominance in the United States. One operated out of Wall Street, the New York financial district that came to be the symbol of American finance. Its most important address was 23 Wall Street, known as the "House of Morgan." J. P. Morgan was an agent of powerful British banking interests. The Wizards of Wall Street and the Old World bankers pulling their strings sought to establish a national currency that was based on the "gold standard," one created privately by the financial elite who controlled the gold. The other system dated back to Benjamin Franklin and operated out of Philadelphia, the country's first capital, where the Constitutional Convention was held and Franklin's "Society for Political Inquiries" planned the industrialization and public works that would free the new republic from economic slavery to England.14 The Philadelphia faction favored a bank on the model established in provincial Pennsylvania, where a state loan office issued and lent money, collected the interest, and returned it to the provincial government to be used in place of taxes. President Abraham Lincoln returned to the colonial system of government-issued money during the Civil War; but he was assassinated, and the bankers reclaimed control of the money machine. The silent coup of the Wall Street faction culminated with the passage of the Federal Reserve Act in 1913, something they achieved by misleading Bryan and other wary Congressmen into thinking the Federal Reserve was actually federal.

Today the debate over who should create the national money supply is rarely heard, mainly because few people even realize it is an issue. Politicians and economists, along with everybody else, simply assume that money is created by the government, and that the "inflation" everybody complains about is caused by an out-of-control government running the dollar printing presses. The puppeteers working the money machine were more visible in the 1890s than they are today, largely because they had not yet succeeded in buying up the media and cornering public opinion.

Economics is a dry and forbidding subject that has been made intentionally complex by banking interests intent on concealing what is really going on. It is a subject that sorely needs lightening up, with imagery, metaphors, characters and a plot; so before we get into the ponderous details of the modern system of money-based-on-debt, we'll take an excursion back to a simpler time, when the money issues were more obvious and were still a burning topic of discussion. The plot line for The Wizard of Oz has been traced to the first-ever march on Washington, led by an obscure Ohio businessman who sought to persuade Congress to return to Lincoln's system of government-issued money in 1894. Besides sparking a century of protest marches and the country's most famous fairytale, this little-known visionary and the band of unemployed men he led may actually have had the solution to the whole money problem, then and now . . . .

Thursday, December 11, 2008

"Capitalist Fools" - Joseph E. Stiglitz



Opinion [says "Vanity Fair" - it's good analysis to me]
Capitalist Fools
by: Joseph E. Stiglitz, Vanity Fair

January 2009 Issue

Behind the debate over remaking US financial policy will be a debate over who's to blame. It's crucial to get the history right, writes a Nobel-laureate economist, identifying five key mistakes - under Reagan, Clinton and Bush II - and one national delusion.

There will come a moment when the most urgent threats posed by the credit crisis have eased and the larger task before us will be to chart a direction for the economic steps ahead. This will be a dangerous moment. Behind the debates over future policy is a debate over history - a debate over the causes of our current situation. The battle for the past will determine the battle for the present. So it's crucial to get the history straight.

What were the critical decisions that led to the crisis? Mistakes were made at every fork in the road - we had what engineers call a "system failure," when not a single decision but a cascade of decisions produce a tragic result. Let's look at five key moments.

No. 1: Firing the Chairman

In 1987 the Reagan administration decided to remove Paul Volcker as chairman of the Federal Reserve Board and appoint Alan Greenspan in his place. Volcker had done what central bankers are supposed to do. On his watch, inflation had been brought down from more than 11 percent to under 4 percent. In the world of central banking, that should have earned him a grade of A+++ and assured his re-appointment. But Volcker also understood that financial markets need to be regulated. Reagan wanted someone who did not believe any such thing, and he found him in a devotee of the objectivist philosopher and free-market zealot Ayn Rand.

Greenspan played a double role. The Fed controls the money spigot, and in the early years of this decade, he turned it on full force. But the Fed is also a regulator. If you appoint an anti-regulator as your enforcer, you know what kind of enforcement you'll get. A flood of liquidity combined with the failed levees of regulation proved disastrous.

Greenspan presided over not one but two financial bubbles. After the high-tech bubble popped, in 2000-2001, he helped inflate the housing bubble. The first responsibility of a central bank should be to maintain the stability of the financial system. If banks lend on the basis of artificially high asset prices, the result can be a meltdown - as we are seeing now, and as Greenspan should have known. He had many of the tools he needed to cope with the situation. To deal with the high-tech bubble, he could have increased margin requirements (the amount of cash people need to put down to buy stock). To deflate the housing bubble, he could have curbed predatory lending to low-income households and prohibited other insidious practices (the no-documentation - or "liar" - loans, the interest-only loans, and so on). This would have gone a long way toward protecting us. If he didn't have the tools, he could have gone to Congress and asked for them.

Of course, the current problems with our financial system are not solely the result of bad lending. The banks have made mega-bets with one another through complicated instruments such as derivatives, credit-default swaps, and so forth. With these, one party pays another if certain events happen - for instance, if Bear Stearns goes bankrupt, or if the dollar soars. These instruments were originally created to help manage risk - but they can also be used to gamble. Thus, if you felt confident that the dollar was going to fall, you could make a big bet accordingly, and if the dollar indeed fell, your profits would soar. The problem is that, with this complicated intertwining of bets of great magnitude, no one could be sure of the financial position of anyone else - or even of one's own position. Not surprisingly, the credit markets froze.

Here too Greenspan played a role. When I was chairman of the Council of Economic Advisers, during the Clinton administration, I served on a committee of all the major federal financial regulators, a group that included Greenspan and Treasury Secretary Robert Rubin. Even then, it was clear that derivatives posed a danger. We didn't put it as memorably as Warren Buffett - who saw derivatives as "financial weapons of mass destruction" - but we took his point. And yet, for all the risk, the deregulators in charge of the financial system - at the Fed, at the Securities and Exchange Commission, and elsewhere - decided to do nothing, worried that any action might interfere with "innovation" in the financial system. But innovation, like "change," has no inherent value. It can be bad (the "liar" loans are a good example) as well as good.

No. 2: Tearing Down the Walls

The deregulation philosophy would pay unwelcome dividends for years to come. In November 1999, Congress repealed the Glass-Steagall Act - the culmination of a $300 million lobbying effort by the banking and financial-services industries, and spearheaded in Congress by Senator Phil Gramm. Glass-Steagall had long separated commercial banks (which lend money) and investment banks (which organize the sale of bonds and equities); it had been enacted in the aftermath of the Great Depression and was meant to curb the excesses of that era, including grave conflicts of interest. For instance, without separation, if a company whose shares had been issued by an investment bank, with its strong endorsement, got into trouble, wouldn't its commercial arm, if it had one, feel pressure to lend it money, perhaps unwisely? An ensuing spiral of bad judgment is not hard to foresee. I had opposed repeal of Glass-Steagall. The proponents said, in effect, Trust us: we will create Chinese walls to make sure that the problems of the past do not recur. As an economist, I certainly possessed a healthy degree of trust, trust in the power of economic incentives to bend human behavior toward self-interest - toward short-term self-interest, at any rate, rather than Tocqueville's "self interest rightly understood."

The most important consequence of the repeal of Glass-Steagall was indirect - it lay in the way repeal changed an entire culture. Commercial banks are not supposed to be high-risk ventures; they are supposed to manage other people's money very conservatively. It is with this understanding that the government agrees to pick up the tab should they fail. Investment banks, on the other hand, have traditionally managed rich people's money - people who can take bigger risks in order to get bigger returns. When repeal of Glass-Steagall brought investment and commercial banks together, the investment-bank culture came out on top. There was a demand for the kind of high returns that could be obtained only through high leverage and big risktaking.

There were other important steps down the deregulatory path. One was the decision in April 2004 by the Securities and Exchange Commission, at a meeting attended by virtually no one and largely overlooked at the time, to allow big investment banks to increase their debt-to-capital ratio (from 12:1 to 30:1, or higher) so that they could buy more mortgage-backed securities, inflating the housing bubble in the process. In agreeing to this measure, the S.E.C. argued for the virtues of self-regulation: the peculiar notion that banks can effectively police themselves. Self-regulation is preposterous, as even Alan Greenspan now concedes, and as a practical matter it can't, in any case, identify systemic risks - the kinds of risks that arise when, for instance, the models used by each of the banks to manage their portfolios tell all the banks to sell some security all at once.

As we stripped back the old regulations, we did nothing to address the new challenges posed by 21st-century markets. The most important challenge was that posed by derivatives. In 1998 the head of the Commodity Futures Trading Commission, Brooksley Born, had called for such regulation - a concern that took on urgency after the Fed, in that same year, engineered the bailout of Long-Term Capital Management, a hedge fund whose trillion-dollar-plus failure threatened global financial markets. But Secretary of the Treasury Robert Rubin, his deputy, Larry Summers, and Greenspan were adamant - and successful - in their opposition. Nothing was done.

No. 3: Applying the Leeches

Then along came the Bush tax cuts, enacted first on June 7, 2001, with a follow-on installment two years later. The president and his advisers seemed to believe that tax cuts, especially for upper-income Americans and corporations, were a cure-all for any economic disease - the modern-day equivalent of leeches. The tax cuts played a pivotal role in shaping the background conditions of the current crisis. Because they did very little to stimulate the economy, real stimulation was left to the Fed, which took up the task with unprecedented low-interest rates and liquidity. The war in Iraq made matters worse, because it led to soaring oil prices. With America so dependent on oil imports, we had to spend several hundred billion more to purchase oil - money that otherwise would have been spent on American goods. Normally this would have led to an economic slowdown, as it had in the 1970s. But the Fed met the challenge in the most myopic way imaginable. The flood of liquidity made money readily available in mortgage markets, even to those who would normally not be able to borrow. And, yes, this succeeded in forestalling an economic downturn; America's household saving rate plummeted to zero. But it should have been clear that we were living on borrowed money and borrowed time.

The cut in the tax rate on capital gains contributed to the crisis in another way. It was a decision that turned on values: those who speculated (read: gambled) and won were taxed more lightly than wage earners who simply worked hard. But more than that, the decision encouraged leveraging, because interest was tax-deductible. If, for instance, you borrowed a million to buy a home or took a $100,000 home-equity loan to buy stock, the interest would be fully deductible every year. Any capital gains you made were taxed lightly - and at some possibly remote day in the future. The Bush administration was providing an open invitation to excessive borrowing and lending - not that American consumers needed any more encouragement.

No. 4: Faking the Numbers

Meanwhile, on July 30, 2002, in the wake of a series of major scandals - notably the collapse of WorldCom and Enron - Congress passed the Sarbanes-Oxley Act. The scandals had involved every major American accounting firm, most of our banks, and some of our premier companies, and made it clear that we had serious problems with our accounting system. Accounting is a sleep-inducing topic for most people, but if you can't have faith in a company's numbers, then you can't have faith in anything about a company at all. Unfortunately, in the negotiations over what became Sarbanes-Oxley a decision was made not to deal with what many, including the respected former head of the S.E.C. Arthur Levitt, believed to be a fundamental underlying problem: stock options. Stock options have been defended as providing healthy incentives toward good management, but in fact they are "incentive pay" in name only. If a company does well, the C.E.O. gets great rewards in the form of stock options; if a company does poorly, the compensation is almost as substantial but is bestowed in other ways. This is bad enough. But a collateral problem with stock options is that they provide incentives for bad accounting: top management has every incentive to provide distorted information in order to pump up share prices.

The incentive structure of the rating agencies also proved perverse. Agencies such as Moody's and Standard & Poor's are paid by the very people they are supposed to grade. As a result, they've had every reason to give companies high ratings, in a financial version of what college professors know as grade inflation. The rating agencies, like the investment banks that were paying them, believed in financial alchemy - that F-rated toxic mortgages could be converted into products that were safe enough to be held by commercial banks and pension funds. We had seen this same failure of the rating agencies during the East Asia crisis of the 1990s: high ratings facilitated a rush of money into the region, and then a sudden reversal in the ratings brought devastation. But the financial overseers paid no attention.

No. 5: Letting It Bleed

The final turning point came with the passage of a bailout package on October 3, 2008 - that is, with the administration's response to the crisis itself. We will be feeling the consequences for years to come. Both the administration and the Fed had long been driven by wishful thinking, hoping that the bad news was just a blip, and that a return to growth was just around the corner. As America's banks faced collapse, the administration veered from one course of action to another. Some institutions (Bear Stearns, A.I.G., Fannie Mae, Freddie Mac) were bailed out. Lehman Brothers was not. Some shareholders got something back. Others did not.

The original proposal by Treasury Secretary Henry Paulson, a three-page document that would have provided $700 billion for the secretary to spend at his sole discretion, without oversight or judicial review, was an act of extraordinary arrogance. He sold the program as necessary to restore confidence. But it didn't address the underlying reasons for the loss of confidence. The banks had made too many bad loans. There were big holes in their balance sheets. No one knew what was truth and what was fiction. The bailout package was like a massive transfusion to a patient suffering from internal bleeding - and nothing was being done about the source of the problem, namely all those foreclosures. Valuable time was wasted as Paulson pushed his own plan, "cash for trash," buying up the bad assets and putting the risk onto American taxpayers. When he finally abandoned it, providing banks with money they needed, he did it in a way that not only cheated America's taxpayers but failed to ensure that the banks would use the money to restart lending. He even allowed the banks to pour out money to their shareholders as taxpayers were pouring money into the banks.

The other problem not addressed involved the looming weaknesses in the economy. The economy had been sustained by excessive borrowing. That game was up. As consumption contracted, exports kept the economy going, but with the dollar strengthening and Europe and the rest of the world declining, it was hard to see how that could continue. Meanwhile, states faced massive drop-offs in revenues - they would have to cut back on expenditures. Without quick action by government, the economy faced a downturn. And even if banks had lent wisely - which they hadn't - the downturn was sure to mean an increase in bad debts, further weakening the struggling financial sector.

The administration talked about confidence building, but what it delivered was actually a confidence trick. If the administration had really wanted to restore confidence in the financial system, it would have begun by addressing the underlying problems - the flawed incentive structures and the inadequate regulatory system.

Was there any single decision which, had it been reversed, would have changed the course of history? Every decision - including decisions not to do something, as many of our bad economic decisions have been - is a consequence of prior decisions, an interlinked web stretching from the distant past into the future. You'll hear some on the right point to certain actions by the government itself - such as the Community Reinvestment Act, which requires banks to make mortgage money available in low-income neighborhoods. (Defaults on C.R.A. lending were actually much lower than on other lending.) There has been much finger-pointing at Fannie Mae and Freddie Mac, the two huge mortgage lenders, which were originally government-owned. But in fact they came late to the subprime game, and their problem was similar to that of the private sector: their C.E.O.'s had the same perverse incentive to indulge in gambling.

The truth is most of the individual mistakes boil down to just one: a belief that markets are self-adjusting and that the role of government should be minimal. Looking back at that belief during hearings this fall on Capitol Hill, Alan Greenspan said out loud, "I have found a flaw." Congressman Henry Waxman pushed him, responding, "In other words, you found that your view of the world, your ideology, was not right; it was not working." "Absolutely, precisely," Greenspan said. The embrace by America - and much of the rest of the world - of this flawed economic philosophy made it inevitable that we would eventually arrive at the place we are today.

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Joseph E. Stiglitz, a Nobel Prize winning economist, is a professor at Columbia University.

Tuesday, December 09, 2008

"Flamingoes with Flowers" by Rick Baker

Flamingos with Flowers

A beautiful classical (style) photo. Reminds me some of Audobon prints or 19th century (or earlier) Classical naturescapes - balanced and reasoned in composition. A beauty!

said donharis

Tuesday, November 25, 2008

One mo' time....

I've decided that (the term) "transpersonal or 'trans-personal' as I'm wont to write]) deserves a big come back after Wilber more-or-less banished it from the leading edge for "integral". "Integral" is fine, but we need the specificity of "trans-personal" in a world of egos gone mad these days with all the doom and gloom and fear.

Obama's Treasury Pick Has All the Wrong Ideas - William Greider

AlterNet
Obama's Treasury Pick Has All the Wrong Ideas
By William Greider, TheNation.com
Posted on November 25, 2008, Printed on November 25, 2008
http://www.alternet.org/story/108539/

A year ago, when Barack Obama said it was time to turn the page, his campaign declaration seemed to promise a fresh start for Washington. I, for one, failed to foresee Obama would turn the page backward. The president-elect's lineup for key governing positions has opted for continuity, not change. Virtually all of his leading appointments are restoring the Clinton presidency, only without Mr. Bill. In some important ways, Obama's selections seem designed to sustain the failing policies of George W. Bush.

This is not the last word and things are changing rapidly. But Obama's choices have begun to define him. His victory, it appears, was a triumph for the cautious center-right politics that has described the Democratic party for several decades. Those of us who expected more were duped, not so much by Obama but by our own wishful thinking.

Let us stipulate that these are all honorable people, smart and experienced veterans of Washington combat. But they represent the Democratic party that mainly sees itself as managerial -- making government work better. The long era of conservative dominance has taught them to keep their distance from big reform ideas that promise fundamental change of the system. Their operating style is incremental and cautiously practical. They conscientiously avoid (or actively block) propositions that sound too liberal or radical. Alas, Obama is coming to power at a critical moment when incrementalism is irrelevant. The system is in collapse. Financial chaos won't wait for patient deliberations.

Events have confronted Obama with a fearful symmetry between past and present, illustrated by his choice of economic advisers. On Friday, we learned that Timothy Geithner, president of the New York Federal Reserve, would become his new treasury secretary and Larry Summers, who held the same position in the Clinton administration, would be the White House overseer of economic policy. On Monday, Geithner was busy executing the government's massive rescue of Citicorp -- the very banking behemoth that Geithner and Summers helped to create back in the Clinton years, along with Federal Reserve chairman Alan Greenspan and Robert Rubin, Clinton's economics guru. Now Rubin is himself a Citicorp executive and his bank is now being saved by his old protege (Geithner) with the taxpayers' money.

The connections go way beyond irony. They raise very serious questions about where the new president intends to lead and whether he has the nerve to break from the weak and haphazard strategy of the Bush administration. It has dumped piles of public money on the largest financial institutions and demanded little or nothing in return, hoping for the best. Geithner has been a central player in the deal-making, from Bear Stearns to AIG to Citi. The strategy has not only failed, it has arguably made things worse as savvy market players saw through the contradictions and rushed out to dump more bank stocks.

On Wall Street, Geithner is known as a highly competent technocrat, well versed in the financial complexities. But he has also been seen as a weak and compliant regulator of Wall Street firms, someone who did not see the storm coming. Occasionally, Geithner would anguish publicly about the accumulating time bombs like credit derivatives and urge bankers to do something, but he did not use his supervisory powers to compel action. In bailout negotiations with Wall Street titans, Geithner and the Federal Reserve were spun around like a top more than once.

No wonder the stock markets rallied explosively when they heard Geithner would be their new boss in Washington. They think he is their guy. Summers may be a brilliant economist -- everyone says so -- but he, too, is a club member in good standing and now manages a huge hedge fund while he advises Obama. The president-elect needs to get a "second opinion" -- someone from outside the financial club who can explain the flaws in the rescue strategy preached by Bush's treasury secretary Henry Paulson and Tim Geithner at the New York Fed.

Their approach has clearly been designed to preserve what's left of the Wall Street establishment and maintain the supremacy of the largest financial firms while the taxpayers pick up their losses. That model has failed and too many smart people know why. The bailouts have been too little too late and aimed at an impossible objective -- persuading private capital investors to believe in the phony assurances proffered by the bankers. AIG, the insurance giant taken over by the feds, has turned into a bloody hemorrhage. Citigroup will be another and may soon be joined by other major banks demanding the same favorable terms. Wasting more public money on insolvent mastodons is the least of it. The real scandal is it doesn't work. It can't work because the black hole is too large even for Washington to fill. Government should take over the failing institutions or force them into bankruptcy, break them up and sell them off or mercifully relieve everyone, including the taxpayers.

Stock markets rallied again with the salvage of Citigroup. But not everyone in Wall Street was cheering. Christopher Whalen of Institutional Risk Analytics, the bank monitoring firm that has repeatedly been right about the banks when the government officials were wrong, had harsh words for the deal. "Pretending that Citi is going to be a going concern I think is silly," Whalen said. "We should be thinking about breaking this company up and redistributing the assets into stronger hands."

Will Timothy Geithner or Larry Summers advise the next president to face reality and throw in the towel? One hopes so, because Whalen warns: "By embracing Geithner, President-elect Obama is endorsing the ill-advised scheme to support AIG directed by Hank Paulson et al at Goldman Sachs and executed by Tim Geithner…. This scheme to stay AIG's resolution cannot possibly work and, when it does collapse, Barack Obama and his administration will wear the blame."

Barack Obama is too smart and perceptive to let this happen to his yet-unborn presidency. Maybe he should find out what Whalen knows.

William Greider is the author of, most recently, "The Soul of Capitalism" (Simon & Schuster).
© 2008 TheNation.com All rights reserved.
View this story online at: http://www.alternet.org/story/108539/