It was an invasion of the federal budget, and no occupying force in history has ever been this efficient. George W. Bush's war in the Mesopotamian desert was an experiment of sorts, a crude first take at his vision of a fully privatized American government.... It's not so far-fetched to think that this is the way someone up there would like things run all over -- not just in Iraq but in Iowa, too....
What happened in Iraq went beyond inefficiency, beyond fraud even. This was about the business of government being corrupted by the profit motive to such an extraordinary degree that now we all have to wonder how we will ever be able to depend on the state to do its job in the future. If catastrophic failure is worth billions, where's the incentive to deliver success?
...I personally find the controversy about Iraq in Washington to be bizarre. Are they really arguing about whether the situation is improving? I mean, you have the Night of the Living Dead over there. People lack potable water, cholera has broken out even in the good areas, a third of people are hungry, a doubling of the internally displaced to at least 1.1 million, and a million pilgrims dispersed just this week by militia infighting in a supposedly safe all-Shiite area. The government has all but collapsed, with even the formerly cooperative sections of the Sunni Arab political class withdrawing in a snit (much less more Sunni Arabs being brought in from the cold). The parliament hasn't actually passed any legislation to speak of and often cannot get a quorum. Corruption is endemic. The weapons we give the Iraqi army are often sold off to the insurgency. Some of our development aid goes to them, too.
The average number of Iraqis killed in 2007 per day exceeds those killed in 2006. Independent counts by news organizations do not agree with Pentagon estimates about drops in civilian deaths over-all. Nation-wide attacks in June reached a daily all-time high of 177.5. True, violence in Baghdad has been wrestled back down to the levels of summer, 2006 (hint: it wasn't paradise), but violence levels are up in the rest of the country. If you compare each month in 2006 with each month in 2007 with regard to US military deaths, the 2007 picture is dreadful.
I saw on CNN this smarmy Bush administration official come and and say that US troop deaths had fallen because of the surge, which is why we should support it. Just read the following chart bottom to top and compare 2006 month by month to 2007. US troop deaths haven't fallen. They are way up. Besides, they would be zero if the US were not occupying Iraq militarily, so if we should support a policy that leads to fewer troop deaths, that is the better policy...
...how brain dead do the Bushies think we are, peddling this horse manure that US troop deaths have fallen? (There are always seasonal variations because in the summer it is 120 F. in the shade and guerrillas are too heat-exhausted to fight; but the summer 2007 numbers are much greater than those for summer 2006; that isn't progress.) And why does our corporate media keep repeating this Goebbels-like propaganda? Do we really live in an Orwellian state?

Someone knows something big is going to happen by September 21, 2007. It could be anything that is related to either serious financial decline, China dropping the U.S. Dollar or a big military action. This warning is for real and it is based on the fact that some entity had taken huge 4.7 Billion Dollars CALLS on SPX 700 options, expiring on September 21, that is over 40% decline from today’s price value. The entity or individual offering these sales can only make money if the market drops 40%-50% within the next four weeks. If the market does not drop, the entity or individual involved stands to lose over $1 billion just for engaging in these contracts!
Clearly, someone knows something big is going to happen BEFORE the options expire on Sept. 21.

...received a message from a friend who has excellent connections in Washington and whose information has often been prescient. According to this report, as in 2002, the rollout will start after Labor Day, with a big kickoff on September 11. My friend had spoken to someone in one of the leading neo-conservative institutions. He summarized what he was told this way:
'They [the source's institution] have "instructions" (yes, that was the word used) from the Office of the Vice-President to roll out a campaign for war with Iran in the week after Labor Day; it will be coordinated with the American Enterprise Institute, the Wall Street Journal, the Weekly Standard, Commentary, Fox, and the usual suspects. It will be heavy sustained assault on the airwaves, designed to knock public sentiment into a position from which a war can be maintained. Evidently they don't think they'll ever get majority support for this — they want something like 35-40 percent support, which in their book is "plenty." '

VIENNA, Austria (AP) -- The International Atomic Energy Agency on Thursday reported ''significant'' cooperation from Iran with its nuclear probe and noted that Tehran had slowed uranium enrichment -- assessments that could hamper U.S. hopes for new U.N. sanctions.
Iran said the report proved it was the target of unfair U.S. attacks. But Washington and its allies said it did not change the need for more U.N. Security Council penalties.
IAEA Deputy Director-General Olli Heinonen highlighted the importance of Tehran's cooperation, noting that its past stonewalling had triggered Security Council sanctions in the first place. But he cautioned that Iran still needed to prove it would abide by its commitments.
The report said a recently agreed Iran-IAEA cooperation plan was a ''significant step forward'' but the U.S. played down suggestions of progress...
France was even more direct. Foreign Ministry spokeswoman Pascale Andreani declared that without an enrichment freeze, Paris will ''pursue ... looking into a third sanctions resolution.''
...Drawn up by IAEA chief Mohamed ElBaradei, much of the confidential report obtained by The Associated Press focused on the already publicized Iran-IAEA cooperation plan, restating progress in some areas and time frames for Iran to respond to additional questions.
In that plan, Iran agreed to answer most questions from agency experts by November.
If that and all other deadlines are met and Iran provides all the information sought, the agency should be able to close the file on its more than four-year investigation of Tehran's nuclear activities by year's end, a senior U.N. official said...
Repeating the findings of the Iran-IAEA cooperation plan, the report -- to be considered by the 35-nation IAEA board at a meeting starting Sept. 10 -- said the agency felt that information provided by Iran on past small-scale plutonium experiments had ''resolved'' agency concerns about the issue.
... The $42 million cutting-edge [ADVISE] system, designed to process trillions of pieces of data, has been halted and could be canceled pending data-privacy reviews, according to a newly released report to Congress by the DHS’s own internal watchdog.
Data mining to help fight the war on terror has become an accepted, even mandated, method to provide timely security information. The DHS operates at least a dozen such programs; intelligence agencies and the Department of Defense employ many others.
But ADVISE (Analysis, Dissemination, Visualization, Insight and Semantic Enhancement) was special. An electronic omnivore conceived in 2003, it was designed to ingest information from scores of databases, blogs, e-mail traffic, intelligence reports, and other sources, government documents and researchers say...
Unknown to the privacy office, the ADVISE pilot programs had been operational and using personal data for about 18 months before the privacy office made that report to Congress, the OIG found.
"What I've experienced in the last six months is the ugly side of the American dream."
Last month, David Iglesias and I were looking out at the Statue of Liberty and Ellis Island where his dad had entered the U.S. from Panama decades ago. It was a hard moment for the military lawyer who, immediately after Attorney General Alberto Gonzales fired Iglesias as U.S. Attorney for New Mexico, returned to active military duty as a Naval Reserve JAG.
Captain Iglesias, cool and circumspect, added something I didn't expect:
"They misjudged my character, I mean they really thought I was just going to roll over and give them what they wanted and when I didn't, that I'd go away quietly but I just couldn't do that. You know U.S. Attorneys and the Justice Department have a history of not taking into consideration partisan politics. That should not be a factor. And what they tried to do is just wrong and illegal and unethical."
When a federal prosecutor says something is illegal, it's not just small talk. And the illegality wasn't small. It's called "obstruction of justice" and it's a felony crime.
Specifically, Attorney General Gonzales, Iglesias told me, wanted him to bring what the prosecutor called "bogus voter fraud" cases. In effect, U.S. Attorney Iglesias was under pressure from the boss to charge citizens with crimes they didn't commit. Saddam did that. Stalin did that. But Iglesias would NOT do that -- even at the behest of the Attorney General. Today, Captain Iglesias, reached by phone, told me, "I'm not going to file any bogus prosecutions."
But it wasn't just Gonzales whose acts were "unethical, wrong and illegal."
It was Gonzales' boss.
Iglesias says, "The evidence shows right now, is that [Republican Senator Pete] Domenici complained directly to President Bush. And that Bush then called Alberto Gonzales, the Attorney General, and complained about my alleged lack of vigorous enforcement of voter fraud laws."
In other words, it went to the top. The Decider had decided to punish a prosecutor who wouldn't prosecute innocents.
All day long I've heard Democrats dance with glee that they now have the scalp of Alberto Gonzales. They nailed the puppet. But what about the puppeteer?
The question that remains is the same that Watergate prosecutors asked of Richard Nixon, "What did the President know and when did he know it?"
Or, to update it for Dubya, "What did the President know and how many times did Karl Rove have to explain it to him?"
During the Watergate hearings, Nixon tried to obstruct the investigation into his obstruction of justice by offering up the heads of his Attorney General and other officials. Then, Congress refused to swallow the Nixon bait. The only resignation that counted was the one by the capo di capi of the criminal-political cabal: Nixon's. The President's.
But in this case, even the exit of the Decider-in-Chief would not be the end of it. Because this isn't about finagling with the power of prosecutors, it's about the 2008 election.
"This voter fraud thing is the bogey man," says Iglesias.
In New Mexico, the 2004 announcement of Iglesias' pending prosecution of voters (which he ultimately refused to do) put the chill on the turnout of Hispanic citizens already harassed by officialdom. The bogus "vote fraud" hysteria helped sell New Mexico's legislature on the Republican plan to require citizenship IDs to vote -- all to stop "fraudulent" voters that simply don't exist.
The voter witch-hunt worked. "Wrong" or "insufficient" ID was used to knock out the civil rights of over a quarter million voters in 2004. In New Mexico, that was enough to swing the state George Bush by a mere 5,900 votes.
So what is most frightening is not the resignation of Alberto Gonzales, the Pinocchio of prosecutorial misconduct, but the resignation of Karl Rove. Because New Mexico 2004 was just the testing ground for the roll-out of the "ID" attack planned for 2008.
And Rove who three decades ago cut his political fangs as chief of the Nixon Youth, is ready to roll. To say Rove left his White House job under a cloud is nonsense. He just went into free-agent status, an electoral hitman ready to jump on the next GOP nominee's black-ops squad. The fact that Rove's venomous assistant, Tim Griffin, was set up to work for the campaign of Fred Thompson is a sign that the Lord Voldemort of vote suppression is preparing to practice his Dark Arts in '08.
It was Rove who convinced Bush to fire upright prosecutors and replace them with Rove-bots ready to strike out at fraudulent (i.e., Democratic) voters.
Iglesias, however, remains the optimist. "I'm hopeful that I'll get back to the American dream. And get out of the American nightmare."
Dreams. Nightmares. I have a better idea for America: Wake up.


This is not just a pincer movement but a fight on many fronts at the same time... There are many, many “sleeper” bureaucrats who have been installed in power in the seven years of the Bush Administration. The Federal judiciary has been Republican-controlled since at least the last term of Reagan. Changing the elected representatives will begin to stop and reverse this thirty year trend but we have to keep our eyes on those bureaucrats who will be working for George W long after George W is gone.
I would also suggest we the citizens start doing more and more things for ourselves. My particular hobby horse is energy policy and practice. I have one room essentially off-grid through small solar LED lights and a solar/dynamo radio that also charges AA batteries. It cost me less than $200. If a substantial minority of people followed my example, the energy discussion on the street and in the hearing rooms would have to change. David Stephenson of http://www.stephensonstrategies.com has been outlining a civilian-based homefront security infrastructure leveraging available telecom technology into an effective early warning and emergency response system. If we the citizens begin organizing ourselves to help ourselves because our own government can’t be trusted to save us from the next 9/11 or Katrina, we begin to take power back for ourselves and build a practical politics that cuts the ground out from under the established power strucutre.
Solar is civil defense. You can see some of my solar devices on youtube. Search for “gmoke.”

...just as the speed and scale of China’s rise as an economic power have no clear parallel in history, so its pollution problem has shattered all precedents. Environmental degradation is now so severe, with such stark domestic and international repercussions, that pollution poses not only a major long-term burden on the Chinese public but also an acute political challenge to the ruling Communist Party. And it is not clear that China can rein in its own economic juggernaut.
Public health is reeling. Pollution has made cancer China’s leading cause of death, the Ministry of Health says. Ambient air pollution alone is blamed for hundreds of thousands of deaths each year. Nearly 500 million people lack access to safe drinking water.
Chinese cities often seem wrapped in a toxic gray shroud. Only 1 percent of the country’s 560 million city dwellers breathe air considered safe by the European Union. Beijing is frantically searching for a magic formula, a meteorological deus ex machina, to clear its skies for the 2008 Olympics.
Environmental woes that might be considered catastrophic in some countries can seem commonplace in China: industrial cities where people rarely see the sun; children killed or sickened by lead poisoning or other types of local pollution; a coastline so swamped by algal red tides that large sections of the ocean no longer sustain marine life.
China is choking on its own success. The economy is on a historic run, posting a succession of double-digit growth rates. But the growth derives, now more than at any time in the recent past, from a staggering expansion of heavy industry and urbanization that requires colossal inputs of energy, almost all from coal, the most readily available, and dirtiest, source...
China’s problem has become the world’s problem. Sulfur dioxide and nitrogen oxides spewed by China’s coal-fired power plants fall as acid rain on Seoul, South Korea, and Tokyo. Much of the particulate pollution over Los Angeles originates in China, according to the Journal of Geophysical Research.
More pressing still, China has entered the most robust stage of its industrial revolution, even as much of the outside world has become preoccupied with global warming.
Experts once thought China might overtake the United States as the world’s leading producer of greenhouse gases by 2010, possibly later. Now, the International Energy Agency has said China could become the emissions leader by the end of this year, and the Netherlands Environment Assessment Agency said China had already passed that level...
For the Communist Party, the political calculus is daunting. Reining in economic growth to alleviate pollution may seem logical, but the country’s authoritarian system is addicted to fast growth. Delivering prosperity placates the public, provides spoils for well-connected officials and forestalls demands for political change. A major slowdown could incite social unrest, alienate business interests and threaten the party’s rule.
But pollution poses its own threat. Officials blame fetid air and water for thousands of episodes of social unrest. Health care costs have climbed sharply. Severe water shortages could turn more farmland into desert. And the unconstrained expansion of energy-intensive industries creates greater dependence on imported oil and dirty coal, meaning that environmental problems get harder and more expensive to address the longer they are unresolved...
Emissions of sulfur dioxide from coal and fuel oil, which can cause respiratory and cardiovascular diseases as well as acid rain, are increasing even faster than China’s economic growth. In 2005, China became the leading source of sulfur dioxide pollution globally, the State Environmental Protection Administration, or SEPA, reported last year.
Other major air pollutants, including ozone, an important component of smog, and smaller particulate matter, called PM 2.5, emitted when gasoline is burned, are not widely monitored in China. Medical experts in China and in the West have argued that PM 2.5 causes more chronic diseases of the lung and heart than the more widely watched PM 10.
Perhaps an even more acute challenge is water. China has only one-fifth as much water per capita as the United States. But while southern China is relatively wet, the north, home to about half of China’s population, is an immense, parched region that now threatens to become the world’s biggest desert.
Farmers in the north once used shovels to dig their wells. Now, many aquifers have been so depleted that some wells in Beijing and Hebei must extend more than half a mile before they reach fresh water. Industry and agriculture use nearly all of the flow of the Yellow River, before it reaches the Bohai Sea.
In response, Chinese leaders have undertaken one of the most ambitious engineering projects in world history, a $60 billion network of canals, rivers and lakes to transport water from the flood-prone Yangtze River to the silt-choked Yellow River. But that effort, if successful, will still leave the north chronically thirsty.
This scarcity has not yet created a culture of conservation. Water remains inexpensive by global standards, and Chinese industry uses 4 to 10 times more water per unit of production than the average in industrialized nations, according to the World Bank.
In many parts of China, factories and farms dump waste into surface water with few repercussions. China’s environmental monitors say that one-third of all river water, and vast sections of China’s great lakes, the Tai, Chao and Dianchi, have water rated Grade V, the most degraded level, rendering it unfit for industrial or agricultural use...
As gloomy as China’s pollution picture looks today, it is set to get significantly worse, because China has come to rely mainly on energy-intensive heavy industry and urbanization to fuel economic growth. In 2000, a team of economists and energy specialists at the Development Research Center, part of the State Council, set out to gauge how much energy China would need over the ensuing 20 years to achieve the leadership’s goal of quadrupling the size of the economy.
They based their projections on China’s experience during the first 20 years of economic reform, from 1980 to 2000. In that period, China relied mainly on light industry and small-scale private enterprise to spur growth. It made big improvements in energy efficiency even as the economy expanded rapidly. Gross domestic product quadrupled, while energy use only doubled.
The team projected that such efficiency gains would probably continue. But the experts also offered what they called a worst-case situation in which the most energy-hungry parts of the economy grew faster and efficiency gains fell short.
That worst-case situation now looks wildly optimistic. Last year, China burned the energy equivalent of 2.7 billion tons of coal, three-quarters of what the experts had said would be the maximum required in 2020. To put it another way, China now seems likely to need as much energy in 2010 as it thought it would need in 2020 under the most pessimistic assumptions...
Chinese steel makers, on average, use one-fifth more energy per ton than the international average. Cement manufacturers need 45 percent more power, and ethylene producers need 70 percent more than producers elsewhere, the World Bank says.
China’s aluminum industry alone consumes as much energy as the country’s commercial sector — all the hotels, restaurants, banks and shopping malls combined, Mr. Rosen and Mr. Houser reported.
Moreover, the boom is not limited to heavy industry. Each year for the past few years, China has built about 7.5 billion square feet of commercial and residential space, more than the combined floor space of all the malls and strip malls in the United States, according to data collected by the United States Energy Information Administration.
Chinese buildings rarely have thermal insulation. They require, on average, twice as much energy to heat and cool as those in similar climates in the United States and Europe, according to the World Bank. A vast majority of new buildings — 95 percent, the bank says — do not meet China’s own codes for energy efficiency.
All these new buildings require China to build power plants, which it has been doing prodigiously. In 2005 alone, China added 66 gigawatts of electricity to its power grid, about as much power as Britain generates in a year. Last year, it added an additional 102 gigawatts, as much as France.
That increase has come almost entirely from small- and medium-size coal-fired power plants that were built quickly and inexpensively. Only a few of them use modern, combined-cycle turbines, which increase efficiency, said Noureddine Berrah, an energy expert at the World Bank. He said Beijing had so far declined to use the most advanced type of combined-cycle turbines despite having completed a successful pilot project nearly a decade ago.
While over the long term, combined-cycle plants save money and reduce pollution, Mr. Berrah said, they cost more and take longer to build. For that reason, he said, central and provincial government officials prefer older technology...
The government rarely uses market-oriented incentives to reduce pollution. Officials have rejected proposals to introduce surcharges on electricity and coal to reflect the true cost to the environment. The state still controls the price of fuel oil, including gasoline, subsidizing the cost of driving.
Energy and environmental officials have little influence in the bureaucracy. The environmental agency still has only about 200 full-time employees, compared with 18,000 at the Environmental Protection Agency in the United States.
China has no Energy Ministry. The Energy Bureau of the National Development and Reform Commission, the country’s central planning agency, has 100 full-time staff members. The Energy Department of the United States has 110,000 employees...

Beloved 1988 Dem nominee Michael Dukakis was such a crappy candidate that he lost to despised vice president George Bush, so now he’s warning America that the Republicans will still figure out a way to keep the White House beyond 2008, even though everybody hates the Republicans and all the GOP candidates and especially Bush Junior and Dick Cheney.
“We’re not going to outspend the other guys,” he said during an interview in his modest office in the political science department at Northeastern University, where he was the first to arrive (at 7:30 a.m.) on a recent midsummer morning. “We’re probably not going to outstrategize them. And some crazy guy will blow up a building with three weeks to go, you know, and then we’ll be back in Bush-land again.”
While we object to dismissing Karl Rove as “some crazy guy,” Dukakis does have a point. As George Will says, we are now basically Weimar Germany right before “some crazy guy” burns the Reichstag and lets Hitler take over Europe and put everybody in Concentration Camps.
So what can the Dem nominees do to stop Cheney from crowning Bush Junior emperor of the world?
We’re pretty sure the answer is “Just sit back and wait for Russia to launch a full nuclear strike against the United States” because experts say that’s what really needs to happen anyway.
Iraq corruption whistleblowers face penalties
Cases show fraud exposers have been vilified, fired, or detained for weeks
One after another, the men and women who have stepped forward to report corruption in the massive effort to rebuild Iraq have been vilified, fired and demoted.
Or worse.
For daring to report illegal arms sales, Navy veteran Donald Vance says he was imprisoned by the American military in a security compound outside Baghdad and subjected to harsh interrogation methods.
There were times, huddled on the floor in solitary confinement with that head-banging music blaring dawn to dusk and interrogators yelling the same questions over and over, that Vance began to wish he had just kept his mouth shut.
He had thought he was doing a good and noble thing when he started telling the FBI about the guns and the land mines and the rocket-launchers — all of them being sold for cash, no receipts necessary, he said. He told a federal agent the buyers were Iraqi insurgents, American soldiers, State Department workers, and Iraqi embassy and ministry employees.
The seller, he claimed, was the Iraqi-owned company he worked for, Shield Group Security Co.
“It was a Wal-Mart for guns,” he says. “It was all illegal and everyone knew it.”
So Vance says he blew the whistle, supplying photos and documents and other intelligence to an FBI agent in his hometown of Chicago because he didn’t know whom to trust in Iraq.
For his trouble, he says, he got 97 days in Camp Cropper, an American military prison outside Baghdad that once held Saddam Hussein, and he was classified a security detainee.
Also held was colleague Nathan Ertel, who helped Vance gather evidence documenting the sales, according to a federal lawsuit both have filed in Chicago, alleging they were illegally imprisoned and subjected to physical and mental interrogation tactics “reserved for terrorists and so-called enemy combatants.”
No noble outcomes
Corruption has long plagued Iraq reconstruction. Hundreds of projects may never be finished, including repairs to the country’s oil pipelines and electricity system. Congress gave more than $30 billion to rebuild Iraq, and at least $8.8 billion of it has disappeared, according to a government reconstruction audit.
Despite this staggering mess, there are no noble outcomes for those who have blown the whistle, according to a review of such cases by The Associated Press.
“If you do it, you will be destroyed,” said William Weaver, professor of political science at the University of Texas-El Paso and senior advisor to the National Security Whistleblowers Coalition.
“Reconstruction is so rife with corruption. Sometimes people ask me, ‘Should I do this?’ And my answer is no. If they’re married, they’ll lose their family. They will lose their jobs. They will lose everything,” Weaver said.
They have been fired or demoted, shunned by colleagues, and denied government support in whistleblower lawsuits filed against contracting firms.
“The only way we can find out what is going on is for someone to come forward and let us know,” said Beth Daley of the Project on Government Oversight, an independent, nonprofit group that investigates corruption. “But when they do, the weight of the government comes down on them. The message is, ’Don’t blow the whistle or we’ll make your life hell.’
“It’s heartbreaking,” Daley said. “There is an even greater need for whistleblowers now. But they are made into public martyrs. It’s a disgrace. Their lives get ruined...”
BAGHDAD, Aug. 23 — The number of Iraqis fleeing their homes has soared since the American troop increase began in February, according to data from two humanitarian groups, accelerating the partition of the country into sectarian enclaves.
Despite some evidence that the troop buildup has improved security in certain areas, sectarian violence continues and American-led operations have brought new fighting, driving fearful Iraqis from their homes at much higher rates than before the tens of thousands of additional troops arrived, the studies show.
The data track what are known as internally displaced Iraqis: those who have been driven from their neighborhoods and seek refuge elsewhere in the country rather than fleeing across the border. The effect of this vast migration is to drain religiously mixed areas in the center of Iraq, sending Shiite refugees toward the overwhelmingly Shiite areas to the south and Sunnis toward majority Sunni regions to the west and north.
Though most displaced Iraqis say they would like to return, there is little prospect of their doing so. One Sunni Arab who had been driven out of the Baghdad neighborhood of southern Dora by Shiite snipers said she doubted that her family would ever return, buildup or no buildup...
Democracy's new dawn is on CCTV: the security state as infotainment
So keen are America's leaders to hear dissent they're videotaping the dissenters. Welcome to a world of total surveillance
Naomi Klein
Friday August 24, 2007
The Guardian
As protesters gathered recently outside the Security and Prosperity Partnership summit in Montebello, Quebec, to confront George Bush, Felipe Calderón, the Mexican president, and Stephen Harper, the Canadian prime minister, Associated Press reported this surreal detail: "Leaders were not able to see the protesters in person, but they could watch the protesters on TV monitors inside the hotel ... Cameramen hired to ensure that demonstrators would be able to pass along their messages to the three leaders sat idly in a tent full of audio and video equipment ... A sign on the outside of the tent said, 'Our cameras are here today providing your right to be seen and heard. Please let us help you get your message out. Thank You.'"
Yes, it's true: like contestants on a reality TV show, protesters at the SPP meeting were invited to vent into video cameras, their rants to be beamed to "protest-trons" inside the summit enclave. It was security state as infotainment - Big Brother meets, well, Big Brother. The spokesperson for Prime Minister Harper explained that although protesters were herded into empty fields, the video link meant that their right to political speech was protected. "Under the law, they need to be seen and heard, and they will be."
It is an argument with sweeping implications. If videotaping activists meets the legal requirement that dissenting citizens have the right to be seen and heard, what else might fit the bill? How about all the other security cameras that patrolled the summit - the ones filming demonstrators as they got on and off buses and peacefully walked down the street? What about the mobile phone calls that were intercepted, the meetings that were infiltrated, the emails that were read? According to the new rules set out in Montebello, all these actions may soon be recast not as infringements on civil liberties but the opposite: proof of our leaders' commitment to direct, unmediated consultation. Elections are a crude tool for taking the public temperature - these methods allow constant, exact monitoring of our beliefs. Think of surveillance as the new participatory democracy; of wiretapping as the political equivalent of MTV's Total Request Live.
Protesters in Montebello complained that while they were locked out, chief executives from about 30 of the largest corporations in North America - from Wal-Mart to Chevron - were part of the official summit. But perhaps they had it backwards: the CEOs had only an hour and 15 minutes of face time with the leaders. The activists were being "seen and heard" around the clock. So instead of shouting about police-state tactics, maybe they should have said: "Thank you for listening." (And reading, and watching, and photographing, and data-mining.)
The Montebello "seen and heard" rule also casts the target of the protests in a new light. The SPP is described in the leaders' final statement as an "ambitious" plan to "keep our borders closed to terrorism yet open to trade". In other words, a merger of the North American Free Trade Agreement and the homeland security complex - Nafta with spy planes. The model dates back to September 11, when Paul Cellucci, the US ambassador to Canada, pronounced that in the new era, "security will trump trade". But there was an out clause: the trade on which the economies of Canada and Mexico depend could continue uninterrupted, as long as the governments of those countries were willing to welcome the tentacles of the US war on terror. Canadian and Mexican business leaders leaped to surrender, aggressively pushing their governments to give in to US demands for "integrated" security in order to keep the goods and the tourists flowing.
Almost six years later, the business leaders at Montebello - under the banner of the North American Competitiveness Council, an official wing of the SPP - were still holding up "thickening borders" as the bogeyman. The fix? According to the SPP website, "technological solutions, improved information-sharing, and, potentially, the use of biometric identifiers". From experience we know what this means: continent-wide no-fly lists, integrated databases, as well as the $2.5bn contract to Boeing to build a "virtual fence" on the northern and southern borders of the United States, equipped with unmanned drones.
In short, under the SPP vision of the continent, "thick" borders will soon be replaced with a nearly invisible web of continental surveillance - almost all of it run for profit. Two members of the SPP advisory group - Lockheed Martin and General Electric - have already received multibillion-dollar contracts from the US government to build this web. In the Bush era, security doesn't trump big business; it may be the biggest business of all...

...President Bush has a valuable historical example that he could choose to follow.
When the ancient Roman general Julius Caesar was struggling to conquer ancient Gaul, he not only had to defeat the Gauls, but he also had to defeat his political enemies in Rome who would destroy him the moment his tenure as consul (president) ended.
Caesar pacified Gaul by mass slaughter; he then used his successful army to crush all political opposition at home and establish himself as permanent ruler of ancient Rome. This brilliant action not only ended the personal threat to Caesar, but ended the civil chaos that was threatening anarchy in ancient Rome – thus marking the start of the ancient Roman Empire that gave peace and prosperity to the known world.
If President Bush copied Julius Caesar by ordering his army to empty Iraq of Arabs and repopulate the country with Americans, he would achieve immediate results: popularity with his military; enrichment of America by converting an Arabian Iraq into an American Iraq (therefore turning it from a liability to an asset); and boost American prestiege while terrifying American enemies.
He could then follow Caesar's example and use his newfound popularity with the military to wield military power to become the first permanent president of America, and end the civil chaos caused by the continually squabbling Congress and the out-of-control Supreme Court.
President Bush can fail in his duty to himself, his country, and his God, by becoming “ex-president” Bush or he can become “President-for-Life” Bush: the conqueror of Iraq, who brings sense to the Congress and sanity to the Supreme Court. Then who would be able to stop Bush from emulating Augustus Caesar and becoming ruler of the world? For only an America united under one ruler has the power to save humanity from the threat of a new Dark Age wrought by terrorists armed with nuclear weapons.
The War as We Saw It
By BUDDHIKA JAYAMAHA, WESLEY D. SMITH, JEREMY ROEBUCK, OMAR MORA, EDWARD SANDMEIER, YANCE T. GRAY and JEREMY A. MURPHY
Published: August 19, 2007
VIEWED from Iraq at the tail end of a 15-month deployment, the political debate in Washington is indeed surreal. Counterinsurgency is, by definition, a competition between insurgents and counterinsurgents for the control and support of a population. To believe that Americans, with an occupying force that long ago outlived its reluctant welcome, can win over a recalcitrant local population and win this counterinsurgency is far-fetched. As responsible infantrymen and noncommissioned officers with the 82nd Airborne Division soon heading back home, we are skeptical of recent press coverage portraying the conflict as increasingly manageable and feel it has neglected the mounting civil, political and social unrest we see every day. (Obviously, these are our personal views and should not be seen as official within our chain of command.)
The claim that we are increasingly in control of the battlefields in Iraq is an assessment arrived at through a flawed, American-centered framework. Yes, we are militarily superior, but our successes are offset by failures elsewhere. What soldiers call the “battle space” remains the same, with changes only at the margins. It is crowded with actors who do not fit neatly into boxes: Sunni extremists, Al Qaeda terrorists, Shiite militiamen, criminals and armed tribes. This situation is made more complex by the questionable loyalties and Janus-faced role of the Iraqi police and Iraqi Army, which have been trained and armed at United States taxpayers’ expense.
A few nights ago, for example, we witnessed the death of one American soldier and the critical wounding of two others when a lethal armor-piercing explosive was detonated between an Iraqi Army checkpoint and a police one. Local Iraqis readily testified to American investigators that Iraqi police and Army officers escorted the triggermen and helped plant the bomb. These civilians highlighted their own predicament: had they informed the Americans of the bomb before the incident, the Iraqi Army, the police or the local Shiite militia would have killed their families.
As many grunts will tell you, this is a near-routine event. Reports that a majority of Iraqi Army commanders are now reliable partners can be considered only misleading rhetoric. The truth is that battalion commanders, even if well meaning, have little to no influence over the thousands of obstinate men under them, in an incoherent chain of command, who are really loyal only to their militias.
Similarly, Sunnis, who have been underrepresented in the new Iraqi armed forces, now find themselves forming militias, sometimes with our tacit support. Sunnis recognize that the best guarantee they may have against Shiite militias and the Shiite-dominated government is to form their own armed bands. We arm them to aid in our fight against Al Qaeda.
However, while creating proxies is essential in winning a counterinsurgency, it requires that the proxies are loyal to the center that we claim to support. Armed Sunni tribes have indeed become effective surrogates, but the enduring question is where their loyalties would lie in our absence. The Iraqi government finds itself working at cross purposes with us on this issue because it is justifiably fearful that Sunni militias will turn on it should the Americans leave.
In short, we operate in a bewildering context of determined enemies and questionable allies, one where the balance of forces on the ground remains entirely unclear. (In the course of writing this article, this fact became all too clear: one of us, Staff Sergeant Murphy, an Army Ranger and reconnaissance team leader, was shot in the head during a “time-sensitive target acquisition mission” on Aug. 12; he is expected to survive and is being flown to a military hospital in the United States.) While we have the will and the resources to fight in this context, we are effectively hamstrung because realities on the ground require measures we will always refuse — namely, the widespread use of lethal and brutal force.
Given the situation, it is important not to assess security from an American-centered perspective. The ability of, say, American observers to safely walk down the streets of formerly violent towns is not a resounding indicator of security. What matters is the experience of the local citizenry and the future of our counterinsurgency. When we take this view, we see that a vast majority of Iraqis feel increasingly insecure and view us as an occupation force that has failed to produce normalcy after four years and is increasingly unlikely to do so as we continue to arm each warring side.
Coupling our military strategy to an insistence that the Iraqis meet political benchmarks for reconciliation is also unhelpful. The morass in the government has fueled impatience and confusion while providing no semblance of security to average Iraqis. Leaders are far from arriving at a lasting political settlement. This should not be surprising, since a lasting political solution will not be possible while the military situation remains in constant flux.
The Iraqi government is run by the main coalition partners of the Shiite-dominated United Iraqi Alliance, with Kurds as minority members. The Shiite clerical establishment formed the alliance to make sure its people did not succumb to the same mistake as in 1920: rebelling against the occupying Western force (then the British) and losing what they believed was their inherent right to rule Iraq as the majority. The qualified and reluctant welcome we received from the Shiites since the invasion has to be seen in that historical context. They saw in us something useful for the moment.
Now that moment is passing, as the Shiites have achieved what they believe is rightfully theirs. Their next task is to figure out how best to consolidate the gains, because reconciliation without consolidation risks losing it all. Washington’s insistence that the Iraqis correct the three gravest mistakes we made — de-Baathification, the dismantling of the Iraqi Army and the creation of a loose federalist system of government — places us at cross purposes with the government we have committed to support.
Political reconciliation in Iraq will occur, but not at our insistence or in ways that meet our benchmarks. It will happen on Iraqi terms when the reality on the battlefield is congruent with that in the political sphere. There will be no magnanimous solutions that please every party the way we expect, and there will be winners and losers. The choice we have left is to decide which side we will take. Trying to please every party in the conflict — as we do now — will only ensure we are hated by all in the long run.
At the same time, the most important front in the counterinsurgency, improving basic social and economic conditions, is the one on which we have failed most miserably. Two million Iraqis are in refugee camps in bordering countries. Close to two million more are internally displaced and now fill many urban slums. Cities lack regular electricity, telephone services and sanitation. “Lucky” Iraqis live in gated communities barricaded with concrete blast walls that provide them with a sense of communal claustrophobia rather than any sense of security we would consider normal.
In a lawless environment where men with guns rule the streets, engaging in the banalities of life has become a death-defying act. Four years into our occupation, we have failed on every promise, while we have substituted Baath Party tyranny with a tyranny of Islamist, militia and criminal violence. When the primary preoccupation of average Iraqis is when and how they are likely to be killed, we can hardly feel smug as we hand out care packages. As an Iraqi man told us a few days ago with deep resignation, “We need security, not free food.”
In the end, we need to recognize that our presence may have released Iraqis from the grip of a tyrant, but that it has also robbed them of their self-respect. They will soon realize that the best way to regain dignity is to call us what we are — an army of occupation — and force our withdrawal.
Until that happens, it would be prudent for us to increasingly let Iraqis take center stage in all matters, to come up with a nuanced policy in which we assist them from the margins but let them resolve their differences as they see fit. This suggestion is not meant to be defeatist, but rather to highlight our pursuit of incompatible policies to absurd ends without recognizing the incongruities.
We need not talk about our morale. As committed soldiers, we will see this mission through.
As Hurricane Dean gains strength, The Daytona Beach News Journal reports:
An 8-year-old child scared of hurricanes tried to go back to Ohio where she moved from -- on her bicycle -- DeLand police Deputy Chief Randel Henderson said Thursday.
"It is amusing but at the same time sad," Henderson said.
...
The little girl stated to police "that she was headed back to Columbus Ohio, because she was afraid of hurricanes and that was her home," the report said...
...Peak-oil theorists have long contended that the first half of the world's oil to be extracted and consumed will be the easy half. They are referring, of course, to the oil that's found on shore or near to shore; oil close to the surface and concentrated in large reservoirs; oil produced in friendly, safe, and welcoming places.
The other half -- what (if they are right) is left of the world's petroleum supply -- is the tough oil. They mean oil that's buried far offshore or deep underground; oil scattered in small, hard-to-find reservoirs; oil that must be obtained from unfriendly, politically dangerous, or hazardous places. An oil investor's eye-view of our energy planet today quickly reveals that we already seem to be entering the tough-oil era. This explains the growing pessimism among industry analysts as well as certain changes in behavior in the energy marketplace.
In but one sign of the new reality, the price of benchmark U.S. light, sweet crude oil for next-month delivery soared to new highs on July 31, topping the previous record for intraday trading of $77.03 per barrel set in July 2006. Some observers are predicting that a price of $80 per barrel is just around the corner; while John Kildruff, a perfectly sober analyst at futures broker Man Financial, told Bloomberg.com, "We're only a headline of significance away from $100 oil." New disruptions in Nigerian or Iraqi supplies, or a U.S. military strike against Iran, he explained, could trigger such a price increase in the energy equivalent of a nano-second...
And then there are those reports from high-level agencies and organizations on the global energy picture, all coming to the same basic conclusion: Whether or not the peak in world oil output is at hand, the future of the global oil supply in a world of endlessly growing demand appears grim.
The first of these recent warnings, entitled the "Medium-Term Oil Market Report," was released on July 8 by the International Energy Agency (IEA), an arm of the Organization for Economic Cooperation and Development (OECD), the club of major industrial powers. Although filled with statistics and technical analyses, the report, assessing the global oil supply-and-demand equation through 2012, seemed to leak anxiety and came to a distinctly worrisome conclusion: Because world oil demand is likely to keep rising at a rapid tempo and the development of new oil fields is not expected to keep pace, significant shortfalls are likely to emerge within the next five years.
The IEA report predicts that world economic activity will grow by an average of 4.5% per year during this period -- driven largely by unbridled growth in China, India, and other Asian dynamos. Global oil demand will rise, it predicts, by about 2.2% per year, pushing world oil consumption from an estimated 86.1 million barrels per day in 2007 to 95.8 million barrels by 2012. With luck and substantial new investment, the global oil industry may be able to increase output sufficiently to satisfy this higher level of demand -- but, if so, just barely. Beyond 2012, the production outlook appears far grimmer. And keep in mind, this is the best-case scenario.
Underlying the report's conclusions are a number of specific fears. Despite rising fuel prices, neither the mature consumers of the OECD countries, nor newly affluent consumers in the developing world are likely to significantly curb their appetite for petroleum. "Demand is growing, and as people become accustomed to higher prices, they are starting to return to their previous trends of high consumption," was the way Lawrence Eagles, an oil expert at the IEA, summed the situation up. This is clearly evident in the United States, where record-high gasoline prices have not stopped drivers from filling up their tanks and driving record distances.
In addition, oil output in the United States and most other non-members of the Organization of Petroleum-Exporting Countries (OPEC) has peaked, or is about to do so, which means that the net contribution of non-OPEC suppliers will only diminish between now and 2012. That, in turn, means that the burden of providing the required additional oil will have to fall on the OPEC countries, most of which are located in unstable areas of the Middle East and Africa.
The numbers are actually staggering. Just to satisfy a demand for an extra 10 million or so barrels per day between now and 2012, two million barrels per day in new oil would have to be added to global stocks yearly. But even this calculation is misleading, as Eagles of the IEA made clear. In fact, the world would initially need "more than 3 million barrels per day of new oil each year [just] to offset the falling production in the mature fields outside of OPEC" -- and that's before you even get near that additional two million barrels.
In other words, what's actually needed is five million barrels of new oil each year, a truly daunting challenge since almost all of this oil will have to be found in Iran, Iraq, Kuwait, Saudi Arabia, Algeria, Angola, Libya, Nigeria, Venezuela, and one or two other countries. These are not places that exactly inspire investor confidence of a sort that could attract the many billions of dollars needed to ramp up production enough to satisfy global requirements.
Read between the lines and one quickly perceives a worst-case scenario in which the necessary investment is not forthcoming; OPEC production does not grow by five million barrels per day year after year; ethanol and other substitute-fuel production, along with alternate fuels of various sorts, do not grow fast enough to fill the gap; and, in the not-too-distant future, a substantial shortage of oil leads to a global economic meltdown...
A very similar prognosis emerges from a careful reading of "Facing the Hard Truths About Energy," the second major report to be released in July. Submitted to the U.S. Department of Energy by the National Petroleum Council (NPC), an oil-industrial association, this report encapsulated the view of both industry officials and academic analysts. It was widely praised for providing a "balanced" approach to the energy dilemma. It called for both increased fuel-efficiency standards for vehicles and increased oil and gas drilling on federal lands. Contributing to the buzz around its release was the identity of the report's principal sponsor, former Exxon CEO Lee Raymond. Having previously expressed skepticism about global warming, he now embraced the report's call for the taking of significant steps to curb carbon-dioxide emissions.
Like the IEA report, the NPC study does claim that -- with the perfect mix of policies and an adequate level of investment -- the energy industry would be capable of satisfying oil and gas demand for some years to come. "Fortunately, the world is not running out of energy resources," the report bravely asserts. Read deep into the report, though, and these optimistic words begin to dissolve as its emphasis switches to the growing difficulties (and costs) of extracting oil and gas from less-than-favorable locations and the geopolitical risks associated with a growing global reliance on potentially hostile, unstable suppliers.
Again, the numbers involved are staggering. According to the NPC, an estimated $20 trillion in new investment (that's trillion, not billion) will be needed between now and 2030 to ensure sufficient energy for anticipated demand. This works out to "$3,000 per person alive today" in a world in which a good half of humanity earns substantially less than that each year...
The report then notes the obvious: "A stable and attractive investment climate will be necessary to attract adequate capital for evolution and expansion of the energy infrastructure." And this is where any astute observer should begin to get truly alarmed; for, as the study itself notes, no such climate can be expected. As the center of gravity of world oil production shifts decisively to OPEC suppliers and to state-centric energy producers like Russia, geopolitical rather than market factors will come to dominate the energy industry and a whole new set of instabilities will characterize the oil trade.
"These shifts pose profound implications for U.S. interests, strategies, and policy-making," the report states. "Many of the expected changes could heighten risks to U.S. energy security in a world where U.S. influence is likely to decline as economic power shifts to other nations. In years to come, security threats to the world's main sources of oil and natural gas may worsen."
Read from this perspective, the recent reports from pillars of the Big- Oil/wealthy-nation establishment suggest that the basic logic of peak-oil theory is on the mark and hard times are ahead when it comes to global oil-and-gas sufficiency. Both reports claim that with just the right menu of corrective policies and an unrealistic streak of pure luck -- as in no set of major Katrina-like hurricanes barreling into oil fields or refineries, no new wars in Middle Eastern oil producing areas, no political collapse in Nigeria -- we can somehow stagger through to 2012 and maybe just beyond without a global economic meltdown. But in an era of tough oil, the odds tip toward tough luck as well...
A SENIOR official in the Iraqi region that suffered the country’s worst suicide attacks suggested this weekend that any remaining survivors trapped beneath rubble would be left to die.
Colonel Najim Abdullah, the governor of Tal Afar, said there were insufficient resources to continue searching for people among the ruins of Qahtaniya and Adnaniya, two villages devastated by multiple truck bombings last Tuesday.
Up to 200 people are still thought to be unaccounted for, taking the death toll past 500. The victims were mainly members of the Yazidi minority sect, which has made its home around the Sinjar mountains, close to the border with Syria.
“We do not have the real potential to tackle the problem,” said Abdullah. “If we are not even able to provide residents with ration cards, how can we save them now under the rubble?”

...When an airplane travels at a speed faster than sound, density waves of sound emitted by the plane cannot precede the plane, and so accumulate in a cone behind the plane. When this shock wave passes, a listener hears all at once the sound emitted over a longer period: a sonic boom. As a plane accelerates to just break the sound barrier, however, an unusual cloud might form. The origin of this cloud is still debated. A leading theory is that a drop in air pressure at the plane described by the Prandtl-Glauert Singularity occurs so that moist air condenses there to form water droplets...
...there are bad guys in Iran who so desperately want to consolidate their political positions inside Iran that they see a hot conflict with the U.S. and/or Israel as "helpful". It's also clear that Vice President Cheney as well as his followers inside the administration and his ideological following in Washington's think tank sector want war to pump up their eroding political position.
But Ledeen, James Woolsey, Norman Podhoretz, and others want war now with Iran. They want the bombs to fly. They are obsessed with delegitimating the important diplomatic efforts of Undersecretary of State R. Nicholas Burns, US Ambassador to Iraq Ryan Crocker, Ambassador to the United Nations Zalmay Khalilzad, and others. They despise Defense Secretary Bob Gates and Secretary of State Condoleezza Rice -- and they are increasingly offering defamatory comments about George W. Bush himself at their small dinner parties and neocon gatherings...

...So an attack on Iran, even if confined to the use of conventional weapons, would confirm beyond the point of any remaining dispute that we have abandoned all the constraints on military action that the world has accepted for some time. We would make indisputably clear that we believe we have the "right" to make war on any nation, at any time, and on the merest whim. The existence of a threat to the United States is irrelevant and unnecessary to our actions. In effect, we will have declared war on the entire world, at least by implication. No one will be able to view themselves as safe: those we consider allies today might be viewed as enemies tomorrow. All concepts of "right" and "morality" would be jettisoned forever. We will have entered a world where brute force and military superiority are all that matter. Since no other nation can view itself as safe from our wrath, we can expect the rest of the world to make plans accordingly.
When the unprovoked, aggressive and non-defensive use of nuclear weapons is added to this picture, we will have entered a world of potential global holocaust...
...So let’s look at what the human costs of dropping a tactical nuclear weapon on Iran might entail.
They are astronomical.
"The number of deaths could exceed a million, and the number of people with increased cancer risks could exceed 10 million," according to a backgrounder by the Union of Concerned Scientists from May 2005.
The National Academy of Sciences studied these earth-penetrating nuclear weapons last year. They could "kill up to a million people or more if used in heavily populated areas," concluded the report, which was sponsored by the U.S. Department of Defense.
Physicians for Social Responsibility examined the risks of a more advanced buster-bunker weapon, and it eerily tabulated the toll from an attack on the underground nuclear facility in Esfahan, Iran. "Three million people would be killed by radiation within two weeks of the explosion, and 35 million people in Afghanistan, Pakistan, and India, would be exposed to increased levels of cancer-causing radiation," according to a summary of that study in the backgrounder by the Union of Concerned Scientists...

...The Democrats don't object and they completely fail to mount serious opposition to our inevitable course toward widening war and an attack on Iran, not because they are cowards, not because they're afraid of being portrayed as "weak" in the fight against terrorism, and not because of any of the other excuses that are regularly offered by their defenders. They don't object because -- they don't object. That is: they agree -- they agree that the United States is the "indispensable" nation, that we have the "right" to tell every other country how it is "permitted" to act, that we must pursue a policy of aggressive interventionism supported by an empire of military bases. They agree about all of it; moreover, in most critical respects, they devised these policies in the first instance, and they implemented and defended them more vigorously and more consistently than Republicans, with the exception of the criminal now residing in the White House.
They agree. Try to wrap your head around it. Try to absorb the indisputable fact, which has been proven over and over and over again...
...The Fed, while not yet cutting a rate that wields more influence over the economy, moved to stimulate lending in part because it recognized that even well-to-do families with good credit ratings were having difficulty getting mortgages. That problem, radiating through the housing market and then the broader economy, had “the potential to restrain economic growth,” the Fed said...

To seventeenth century astronomers, Omicron Ceti or Mira was known as a wonderful star, a star whose brightness could change dramatically in the course of about 11 months. Mira is now seen as the archetype of an entire class of long-period variable stars. Surprisingly, modern astronomers have only recently discovered another striking characteristic of Mira -- an enormous comet-like tail nearly 13 light-years long. The discovery was made using ultraviolet image data from the Galaxy Evolution Explorer (GALEX) satellite. Billions of years ago Mira was likely similar to our Sun, but has now become a swollen red giant star, its outer layers of material blowing off into interstellar space. Fluorescing in ultraviolet light, the cast off material trails behind the giant star as it plows through the surrounding interstellar medium at 130 kilometers per second. The amount of material in Mira's tail is estimated to be equivalent to 3,000 times the mass of planet Earth. About 400 light-years away toward the constellation Cetus, Mira is presently too faint to be seen by the unaided eye, but will become visible again in mid-November.
...Yes, ordinary investors should be worried - not because the global growth story isn’t intact, or because real companies have real earnings, but because the $%^&@@#$ hedge funds leveraged themselves 8-10 times over their assets and now have to dump everything in sight - especially the good stuff - to meet massive redemptions. Oh, rich investors are not immune from panic selling either, nor are lending institutions like banks etc. The hedge fund industry is ruining the market for the rest of the world, which rightly looks at fundamentals and the economy, and they need to be regulated. No one should be allowed to take on more than 1.5 times margin. I don’t give a damn how many hedge funds blow up - let their managers live on the street in cardboard boxes. Their returns after huge fees were never worth the risks anyway - as is now apparent - but they are destroying the markets and even economies for the rest of the world and need to be stopped or put out of business, hopefully without the current carnage...

...Traditionally, banks made mortgages by lending the money that they took in as deposits, and they held the loans until they were repaid. Countrywide and most rivals largely do not operate that way. They borrow money from banks and investors on Wall Street, and when they close a mortgage they quickly sell, repeating the cycle over and over. Until recently, the relationship has been extremely profitable for both sides.
But as defaults on mortgages made in recent years have surged, the system has started to break down.
On Wednesday, Countrywide sought to raise money by issuing short-term debt known as commercial paper, something it does regularly. But there was no demand on Wall Street, according to two people briefed on the situation. Less than two weeks ago, the company said it had access to $50 billion in commercial paper, which has a term of nine months or less. In the last few days, the market for short-term debt has seized up, particularly for loans that are tied to mortgages, because investors say they can no longer value them...

is no open view of the wider world. It a fortified thin narrow slit where paranoid gun men snipe at the crowd below.

...First, you take a bunch of shaky and risky subprime mortgages and repackage them into residential mortgage backed securities (RMBS); then you repackage these RMBS in different (equity, mezzanine, senior) tranches of cash CDOs that receive a misleading investment grade rating by the credit rating agencies; then you create synthetic CDOs out of the same underlying RMBS; then you create CDOs of CDOs (or squared CDOs) out of these CDOs; and then you create CDOs of CDOs of CDOs (or cubed CDOs) out of the same murky securities; then you stuff some of these RMBS and CDO tranches into SIV (structured investment vehicles) or into ABCP (Asset Backed Commercial Paper) or into money market funds. Then no wonder that eventually people panic and run - as they did yesterday – on an apparently “safe” money market fund such as Sentinel. That “toxic waste” of unpriceable and uncertain junk and zombie corpses is now emerging in the most unlikely places in the financial markets.

...Second example: today any wealthy individual can take $1 million and go to a prime broker and leverage this amount three times; then the resulting $4 million ($1 equity and $3 debt) can be invested in a fund of funds that will in turn leverage these $4 millions three or four times and invest them in a hedge fund; then the hedge fund will take these funds and leverage them three or four times and buy some very junior tranche of a CDO that is itself levered nine or ten times. At the end of this credit chain, the initial $1 million of equity becomes a $100 million investment out of which $99 million is debt (leverage) and only $1 million is equity. So we got an overall leverage ratio of 100 to 1. Then, even a small 1% fall in the price of the final investment (CDO) wipes out the initial capital and creates a chain of margin calls that unravel this debt house of cards. This unraveling of a Minskian Ponzi credit scheme is exactly what is happening right now in financial markets.

...Russia and China have now witnessed enough of the Bush administration's unprovoked aggression in the world to take neocon intentions seriously. As the US has proven that it cannot occupy the Iraqi city of Baghdad despite 5 years of efforts, it most certainly cannot occupy Russia or China. That means the conflict toward which the neocons are driving will be a nuclear conflict...
Americans need to understand what the neocon Bush regime cannot: a nuclear exchange between the US, Russia, and China would establish the hegemony of the cockroach...

...KW: I know that documentaries are becoming increasingly popular, but how is this film different from Al Gore's, and why would anyone want to see another film on eco-catastrophe?
NC: Our films are totally different - we contextualize environmental problems so that you come away with a greater understanding of how and why we got here - an essential component to understanding how to reverse the damage that has created our problems. Additionally, we deal with global warming only for seven minutes out of 90 - the rest of the film examines the state of environmental degradation and ecosystem collapse as a symptom of a larger problem, which we see as the industrial revolution and the way our culture relates to the planet as a resource to be consumed. Our film is a journey through man's relationship to the planet - how we got to this critical point - the forces in our society that are stalling us, keeping us here - and the hope for the future. We focus the entire last third of the film on solutions.
KW: I watched the trailer, and it looked a compilation of every Hollywood disaster movie ever made, except that it was all real. Do you think those disaster movies that were big in the 1980s and 1990s were in some way a premonition of the reality we are facing today?
NC: I think on a deep level we know we have been destroying nature and we have projected onto other forces, like alien invasions in films, the very thing we are doing to ourselves. We have been living extremely out of balance with not only the planet, but with ourselves, so if cinema is a kind of reflection of our unconscious, then one could see we are in crisis for sure. The problem with a lot of these disaster films is that they play upon fear without delivering any purpose or meaning. What is all this destruction in the service of? What kinds of stories are we really trying to tell? Frequently, nature is positioned as the enemy - we are battling a volcano, a quake, a tidal wave, a comet. This idea of us against the world is something that has been perpetuated for a long time in human civilization, and it does not ultimately serve us - we have to see ourselves as a part of nature.
KW: You've got some great people appearing in the film, including Diane Wilson, whom I have interviewed. Gloria Flora appears in the trailer and talks about the importance of voting. I happen to know that as the supervisor of one of our national forests, she became a victim of right-wing politics. Does her story come out in the film?
NC: We interviewed 71 people for this film, and 54 people made it into our 90-minute cut. As you will see, the film is really a seamless dialogue amongst these specialists, visionaries and experts, who have been on the front lines of this issue for decades. Unfortunately, we did not have an opportunity to get into their personal stories, but frequently we selected people because of their vast knowledge of these issues and of how hard it has been to do their work unobstructed. For instance, we had an interview slated with James Hansen during the summer he issued his report to Congress on global warming. He was subsequently shut down or censored from talking to anyone - including us.
KW: The film seems like it will emphasize technical solutions to our problems. Does that mean there is nothing we can really do until science comes up with these solutions?
NC: We do talk about existing technologies as both transitional solutions and long-term solutions, but technology is nothing without an evolution in culture. We need to regain our citizenship - we have been turned into full-time consumers, and as a result, the infrastructure of our physical and mental society is in collapse. How are we going to demand that the administration - this one or the next - build green or develop better transportation systems or retool the wasteful processes of the industrial production system if we don't engage as humans on a political level? The technologies exist right now that can dramatically reduce our impact on the planet - but they are not being implemented at the scale needed to make the difference we desperately need right now. We need a societal movement on the level of the civil rights movement to take back the power we have lost, so that we can begin to push for changes that serve the greater good of people and the planet, and not just the corporate few...
With Rove’s Departure, a New Era
By JIM RUTENBERG and STEVEN LEE MYERS
Published: August 15, 2007
CRAWFORD, Tex., Aug. 14 — President Bush took the White House in 2001 with Texas swagger, and promptly filled the West Wing with fellow Texans who shared his ideology and determination to fundamentally change the way the capital worked...
...Six years later, the departure of Karl Rove from Mr. Bush’s brain trust will bring an end to that outsider approach. With the exception of Vice President Dick Cheney, Mr. Bush’s inner circle is now populated entirely by the kinds of Washington pragmatists and insiders whom the incoming president had seemed to dismiss openly...
...We have to act now. Extreme pressure must be brought to bear against the Democratic leadership at the DNC. We need Howard Dean and the boys to understand that by counting their chickens now, and by not trying to rock the boat, and by not holding on to their bird in their hand (and any other fucking cliches I can think of), and not taking advantage of having both houses of congress, and not holding this criminal administration accountable RIGHT NOW, that Democrats will stay home in droves in 2008. That we will not donate, we will not volunteer, and we will not vote for Democrats in 2008 unless they step up to the plate and do their fucking jobs right now and start functioning as an opposition party.
I am sick and tired of the hostage game that the Dems are playing. I am already well fucking aware of the terrifying nature of the Republican party. However, I refuse to accept their lesser of two evils act any fucking more. Their bullshit rationale that they can't do anything, or they might not win any more elections is over. If they can't win any more elections, ever again, by standing up for the Constitution, freedom and democracy, then fuck it. For real. Fuck it sideways. I would rather see them make the other side explicitly endorse fascism, at least. I'm just done with the Kabuki. No more.
The big name bloggers are failing us. Every movement needs leaders, and Digby and Greenwald are two of the best on our side. They have the readers, they have the responsibility to put the pressure on the hapless Democrats, and force them to do what is right. God knows they won't do it on their own.
LudditeRobot knows the score:
A bridge fell down in my city recently. When I listen to all of the elected officials — our leaders, in this DFL-controlled legislature or even in the Republican Governor’s circle — all I can hear is noise and blatant, ham-fisted opportunism. And predictable nastiness from the predictably nasty. As in most catastrophes, the heroism and true leadership came from ordinary people, not elected officials. From, for instance, a 20 year old who rescued children from a bus — and, when asked whether he would like to meet with the President, had this to say: “Nope.”
I think we’re in a societal catastrophe more generally. It’s almost painfully obvious where we should look for the structures of fundamental change. And it ain’t the Democratic Party.
LudditeRobot is right, it is not the Democratic party, it is us.
Unfortunately, in my view, the Democratic party is all that we've got until the new congress and president take office in 2009. The VRWC's conduct in the immigration debate is the blueprint for action. It is much easier to stop bad legislation than to pass good legislation. The founders set up our country that way for a reason. As distasteful as it may be, we must use the Democrats in congress as a means to an end. That end is stopping literally everything until a new congress and president can be elected.
Stopping any more legislation, no matter what it is. No more surveillance legislation, no legislation to institute a draft, no more feel-good post office naming legislation, no more pork, no more nothing. I accept the premise made by many people out there (sorry don't feel like finding a link) that the Democrats are not a functioning party because of all of the blue-dogs and DLC members floating around out there, and that Pelosi's leadership is so fragile that a stiff breze could shatter it. So be it.
Harry Reid, so-called master parliamentarian, and Nancy Pelosi, so-called San Francisco liberal need a functioning caucus to pass legislation. Harry Reid only needs 40 senators to stop every single damn piece of legislation from now until January 2009.
...John Edwards, the former North Carolina senator, would keep troops in the region to intervene in an Iraqi genocide and be prepared for military action if violence spills into other countries. Senator Hillary Rodham Clinton of New York would leave residual forces to fight terrorism and to stabilize the Kurdish region in the north. And Senator Barack Obama of Illinois would leave a military presence of as-yet unspecified size in Iraq to provide security for American personnel, fight terrorism and train Iraqis.
These positions and those of some rivals suggest that the Democratic bumper-sticker message of a quick end to the conflict — however much it appeals to primary voters — oversimplifies the problems likely to be inherited by the next commander in chief. Antiwar advocates have raised little challenge to such positions by Democrats...
An international scramble for the Arctic's oil and gas resources accelerated yesterday when Canada responded to Russia's recent sovereignty claims with a plan to build two military bases in the region.
On a trip to the far north, the prime minister, Stephen Harper, said: "Canada's new government understands that the first principle of Arctic sovereignty is: use it or lose it. Today's announcements tell the world that Canada has a real, growing, long-term presence in the Arctic."
An army training centre for 100 troops is to be built in Resolute Bay, and a deep-water port will be built on Baffin Island, to bolster Canada's claim to ownership.
The move comes a week after a Russian sub planted a flag on the Arctic seabed. Moscow claims rights to half the Arctic. The US, Norway and Denmark also have claims.
A US state department official, speaking last week, signalled that Washington will not stand by in the face of what it sees as a Russian land-grab, though America's position is complicated by its failure so far to sign the treaty of the seas.
As Canada was making its move, Danish scientists were preparing to head for the Arctic tomorrow as part of their bid for a share of the region's wealth. A US coast guard icebreaker was heading to the Arctic to map the seafloor north of Alaska.
Although the US and Canada enjoy good relations, the American ambassador to Canada, David Wilkins, has expressed annoyance with the prime minister's claims in the past.
No country owns the Arctic Ocean and north pole, but there are international laws governing its use. Under one UN convention, each country with a coast has sole exploitation rights in a limited "exclusive economic zone", beyond which mineral resources are controlled by the International Seabed Authority. However, upon ratification of the UN convention, each country was given a 10-year period within which to make claims to extend its zone. Norway (ratified in 1996), Russia (1997), Canada (2003), and Denmark (2004) have all launched claims that certain Arctic sectors should belong to their territories.
The UN's ruling on these submissions will determine who gets the right to extract the Arctic's huge reserves of oil and gas, estimated at 10bn tonnes.
Arguments over the Arctic were until recently academic because of the depth of the ice, but global warming has seen some of it melt, making drilling feasible. The US geological survey estimates that 25% of the world's undiscovered oil and gas could be located under the polar cap...

Today, the Northern Hemisphere sea ice area broke the record for the lowest recorded ice area in recorded history. The new record came a full month before the historic summer minimum typically occurs. There is still a month or more of melt likely this year. It is therefore almost certain that the previous 2005 record will be annihilated by the final 2007 annual minima closer to the end of this summer.
In previous record sea ice minima years, ice area anomalies were confined to certain sectors (N. Atlantic, Beaufort/Bering Sea, etc). The character of 2007's sea ice melt is unique in that it is dramatic and covers the entire Arctic sector. Atlantic, Pacific and even the central Arctic sectors are showing large negative sea ice area anomalies.
While we use sea ice concentration data supplied by NASA via the National Snow and Ice Data Center (NSIDC), there are some differencesbetween the way we and NSIDC process our sea ice indices. NSIDC uses 10-day running means; we use 3-day running means. NSIDC will o ften report sea ice extent indices and records, we are reporting a new sea ice minima sea ice area. The ice area metric includes year-to-year variations within the central pack ice and not just variations in the southern sea ice edge. Regardless of these differences, the rapid rate of sea ice melt this summer, along with the current negative sea ice anomalies almost guarantees a record Northern Hemisphere summer sea ice minimum this summer, by any metric...

...What’s been happening in financial markets over the past few days is something that truly scares monetary economists: liquidity has dried up. That is, markets in stuff that is normally traded all the time — in particular, financial instruments backed by home mortgages — have shut down because there are no buyers.
This could turn out to be nothing more than a brief scare. At worst, however, it could cause a chain reaction of debt defaults.
The origins of the current crunch lie in the financial follies of the last few years, which in retrospect were as irrational as the dot-com mania. The housing bubble was only part of it; across the board, people began acting as if risk had disappeared.
Everyone knows now about the explosion in subprime loans, which allowed people without the usual financial qualifications to buy houses, and the eagerness with which investors bought securities backed by these loans. But investors also snapped up high-yield corporate debt, a k a junk bonds, driving the spread between junk bond yields and U.S. Treasuries down to record lows.
Then reality hit — not all at once, but in a series of blows. First, the housing bubble popped. Then subprime melted down. Then there was a surge in investor nervousness about junk bonds: two months ago the yield on corporate bonds rated B was only 2.45 percent higher than that on government bonds; now the spread is well over 4 percent.
Investors were rattled recently when the subprime meltdown caused the collapse of two hedge funds operated by Bear Stearns, the investment bank. Since then, markets have been manic-depressive, with triple-digit gains or losses in the Dow Jones industrial average — the rule rather than the exception for the past two weeks.
But yesterday’s announcement by BNP Paribas, a large French bank, that it was suspending the operations of three of its own funds was, if anything, the most ominous news yet. The suspension was necessary, the bank said, because of “the complete evaporation of liquidity in certain market segments” — that is, there are no buyers.
When liquidity dries up, as I said, it can produce a chain reaction of defaults. Financial institution A can’t sell its mortgage-backed securities, so it can’t raise enough cash to make the payment it owes to institution B, which then doesn’t have the cash to pay institution C — and those who do have cash sit on it, because they don’t trust anyone else to repay a loan, which makes things even worse.
And here’s the truly scary thing about liquidity crises: it’s very hard for policy makers to do anything about them.
The Fed normally responds to economic problems by cutting interest rates — and as of yesterday morning the futures markets put the probability of a rate cut by the Fed before the end of next month at almost 100 percent. It can also lend money to banks that are short of cash: yesterday the European Central Bank, the Fed’s trans-Atlantic counterpart, lent banks $130 billion, saying that it would provide unlimited cash if necessary, and the Fed pumped in $24 billion.
But when liquidity dries up, the normal tools of policy lose much of their effectiveness. Reducing the cost of money doesn’t do much for borrowers if nobody is willing to make loans. Ensuring that banks have plenty of cash doesn’t do much if the cash stays in the banks’ vaults.
There are other, more exotic things the Fed and, more important, the executive branch of the U.S. government could do to contain the crisis if the standard policies don’t work. But for a variety of reasons, not least the current administration’s record of incompetence, we’d really rather not go there...
Market declines in Europe and New York Thursday sparked a similar rout today in Asia. Stocks in Japan, Hong Kong and Australia dropped by more than 2.5 percent, with South Korea’s benchmark dropping 4.27 percent. As investors sold off assets considered relatively risky, such as Philippine stocks, they bought those considered safer, such as Japanese government bonds. Asian currencies such as the Thai baht also retreated against the U.S. dollar and more liquid and stable currencies such as the Japanese yen.
“Everyone’s been talking about a credit crunch and not surprisingly it turned into one,” said Jan Lambregts, head of Asia research at Rabobank in Hong Kong. While Asian banks didn’t seem to be directly affected, he said, “the main problem is we don’t know who is bearing the losses and that kind of uncertainty is creating the situation that we’re in right now...”
The quandary faced by central bankers was illustrated nowhere better than in South Korea. After raising interest rates on Thursday in an attempt to discourage excessive lending by bankers, Korean central bankers today were reportedly attending crisis meetings on how to handle fears of a liquidity crunch...
The reaction of most market watchers and economists has been to note that if China really does that the value of their reserves will tank--when you tank the US dollar, the value of all assets in US dollars also tank. It would also badly damage the Chinese competitive position, since a low Yuan relative to the dollar is how they subsidize their exports to the US. Dumping T-bills, then, would be the equivalent of cutting off your nose to spite your face.
But . . . Congress is, in fact, getting uppity. And what China is saying is that if Congress eventually does pass real, significant tariffs then China is in a position to retaliate - hard.
So higher levels of the government are now pouring oil on the waters, no, no, we would never do that... but the message has been sent.
Meanwhile, the Nelson Report says:
'Our conversation this afternoon can be paraphrased this way: "Putin is really angry with the US now because of Bush policy on any number of fronts, and as we are seeing on everything from using their intelligence services to carry out contract killings, to shooting rockets into Georgia, we are not dealing with a leader who feels he needs to be subtle."
'In fact, our friend insists, "Russia thinks the US economy now is really vulnerable, and that using their huge foreign exchange reserves as a weapon against us...say by demanding payment for their oil only in Euros...may make a lot of sense."
'This expert's conclusion: "I can tell you right now that Wall Street may not think the Chinese are serious, but Moscow is watching this very closely, and may well come to a conclusion that we don't like!" '
The Agonist has made the argument that America has screwed around with Russia too often as well. I don't see any significant downside to Russia from doing this. And it is one more nail in the coffin being constructed for the US dollar's days as world reserve currency. As country after country moves off the dollar and onto the Euro, the dollar will lose its reserve status. We were talking about this 3 years ago at the BOPnews, and it is continuing apace. People forget about it, because it's happening slowly - but it is happening. And as the dollar continues under downward pressure (pressure that is only kept survivable because of central bank intervention) the willingness of investors to hold dollar denominated assets will continue to decline. We're looking at dollar/Yuan parity eventually. And I don't think eventually is as far out as people might think.
Now, let's push this out 5 to 10 years.
Everyone likes to say that the market for oil is global - prices are set on global markets, and so it doesn't matter who controls it.
True... until it isn't. The majority of world oil is in the control of various government companies, not private ones. As the supply continues to tighten at various price points, and as that oil which isn't under control is tied into long term specific contracts (for example, the way China is paying a premium to lock up African oil reserves) this will become less and less true. Oil will be sold based on long term contracts from national oil companies. There is going to come a point, and most of us here today will see it, where you just can't buy oil on "the market" because it's going to be all tied up.
At the point that both these things happen, the US is going to be in a world of hurt. The US economy, at the top end, is now about selling paper. But no one's going to want that paper in such a world.

WASHINGTON, Aug. 8 — President Bush, seeking to reassure Americans about the economy and combat Democratic criticism of his policies, said on Wednesday that recent financial market turbulence was not a cause for worry but a natural adjustment from the improvident lending of recent years.
Speaking at the Treasury Department, with Treasury Secretary Henry M. Paulson Jr. sitting across the table and reporters seated in a circle around them, Mr. Bush said that his economic advisers would be “paying close attention as the market begins to readjust its assessment of risk” in housing and other sectors.
The president said he also discussed with Mr. Paulson and other cabinet members the possibility of tax cuts and reduced regulations aimed at overcoming what some see as a weakening of the competitiveness of American capital markets compared with those overseas...
It was an unusual presentation for Mr. Bush, both politically and economically. Presidents are usually advised not to wade into discussions of markets at a time when they are so unpredictable and anxiety-inducing.
Mr. Bush’s suggestion that the recent housing declines should be seen as a normal market correction from past excesses and that the government should avoid interfering with the process carries political risks at a time when some people are losing their homes, lending institutions are shaky and Democrats are demanding action.
Indeed, immediately after the president’s comments, Democrats excoriated him for saying that the economy was in sound shape, and many called on the administration to encourage federal housing agencies to step in and make more money available, perhaps by buying up troubled mortgages to avoid foreclosures.
For his part, Mr. Bush, in a verbal tour of the current economic scene, was eager both to calm the markets and knock down the Democratic calls for the administration to intervene, predicting that the turmoil in the housing sector would end with a “soft landing” and would not damage the larger economy.
“I believe that markets ultimately look at the fundamentals of any economy,” Mr. Bush said. “And the fundamentals of our economy are strong. Inflation is down. Real wages are increasing. The job market is a strong job market. People are working. Small businesses are flourishing.”
The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation...
Two officials at leading Communist Party bodies have given interviews in recent days warning - for the first time - that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress.
Shifts in Chinese policy are often announced through key think tanks and academies.
Described as China's "nuclear option" in the state media, such action could trigger a dollar crash at a time when the US currency is already breaking down through historic support levels.
It would also cause a spike in US bond yields, hammering the US housing market and perhaps tipping the economy into recession. It is estimated that China holds over $900bn in a mix of US bonds.
Xia Bin, finance chief at the Development Research Centre (which has cabinet rank), kicked off what now appears to be government policy with a comment last week that Beijing's foreign reserves should be used as a "bargaining chip" in talks with the US.
"Of course, China doesn't want any undesirable phenomenon in the global financial order," he added.
He Fan, an official at the Chinese Academy of Social Sciences, went even further today, letting it be known that Beijing had the power to set off a dollar collapse if it choose to do so.
"China has accumulated a large sum of US dollars. Such a big sum, of which a considerable portion is in US treasury bonds, contributes a great deal to maintaining the position of the dollar as a reserve currency. Russia, Switzerland, and several other countries have reduced the their dollar holdings.
"China is unlikely to follow suit as long as the yuan's exchange rate is stable against the dollar. The Chinese central bank will be forced to sell dollars once the yuan appreciated dramatically, which might lead to a mass depreciation of the dollar," he told China Daily...
America is plagued by a self-anointed, highly influential, and insular so-called Foreign Policy Community which spans both political parties. They consider themselves Extremely Serious and have a whole litany of decades-old orthodoxies which one must embrace lest one be declared irresponsible, naive and unserious. Most of these orthodoxies are ossified 50-year-old relics from the Cold War, and the rest are designed to place off limits from debate the question of whether the U.S. should continue to act as an imperial force, ruling the world with its superior military power.
Most of the recent "controversies" involving Barack Obama's foreign policy statements -- including his oh-so-shocking statement that it would not make moral or political sense to use tactical nuclear weapons to bomb isolated terrorist camps as well as his willingness to attack Al Qaeda elements inside Pakistan if the Musharraf government refuses (as they did for some time) -- were not "controversial" among the Establishment on the merits. They were "controversial" (and "naive" and "irresponsible") because they breached the protocols and orthodoxies imposed by the Foreign Policy Community governing how we are allowed to talk about these issues...
This was vividly illustrated by the sharpest exchange from last night's debate, where both Hillary Clinton and Chris Dodd excoriated Obama for his comments on Pakistan, not on the ground that Obama's statements were wrong on the merits (i.e, not that we should avoid military action inside Pakistan under those circumstances), but instead on the ground that he committed the sin of actually discussing with the American people what our foreign policy would be.
The Foreign Policy Community is more secretive than the Fight Club. They believe that all foreign policy should be formulated only by our secret "scholar"-geniuses in the think tanks and institutes comprising the Foreign Policy Community and that the American people should not and need not know anything about any of it short of the most meaningless platitudes...
...The Foreign Policy Community -- our establishment "scholars" -- were almost unanimously supportive of George Bush's invasion, worked themselves into a lather over Saddam's WMDs and mushroom clouds over U.S. cities, stayed silent in the face of obvious Bush abuses and excesses, embraced the most manipulative and fictitious neoconservative doctrines, and they still continuously issue all sorts of theoretical constructs to justify America's increasingly militaristic and imperial role.
There is no real dispute within it about the most fundamental foreign policy questions we face (which is why the "liberal" Brookings Institutional "scholars" are so pro-war and work so cooperatively with the neoconservative AEI). And they not only have a monopoly over deciding who is Serious and who is not, but also in declaring which issues are off-limits from real debate. The foreign policy disasters of the last six years, at least, are their doing.
... Let us also take note of the bizarre fact that the Rules of Seriousness seem to allow someone to run around talking about attacking, invading, and bombing everyone except for the people who actually attacked us on 9/11. All the Serious People cheered on the invasion of Iraq and talk openly about attacking and bombing Iran and Syria. None of those countries, of course, had anything to do with 9/11, but no matter. The Serious People are free to speak as openly and explicitly as possible about new wars with those nations.
But Barack Obama speaks of the possibility of attacking the actual individuals who attacked us on 9/11 if we know where they are and Pakistan leaves them be, and suddenly, he is a terribly Unserious and Naive and Irresponsible person for suggesting such a thing. Apparently, it is very Serious to ponder new wars on a whole list of countries and groups provided they had nothing to do with the 9/11 attacks...
Washington policy hawks are having fits about the fact that the U.S. Air Force has two choices when it comes to a new tanker aircraft: accept Boeing as a monopoly supplier, or accept an open, equal competition that could result in the aircraft being assembled in France.
The scene is being set for even more fun a few years down the road. When USAF's fleet of long-range airlifters starts to wear out--a date being driven closer by combat operations--there will be one military cargo aircraft in production that can do a long-distance mission for the U.S. military, and it will be made in Europe by Airbus...
The US arsenal lost in Iraq
· 110,000 AK-47s
· 80,000 pistols
· 135,000 bits of armour & 115,000 helmets
Ewen MacAskill in Washington
Tuesday August 7, 2007
The Guardian.
The US has lost track of about 190,000 weapons issued to Iraqi security forces since the 2003 invasion, some of which will have ended up in the hands of insurgents, according to an official report published in Washington. Among the missing items are AK-47 rifles, pistols, body armour and helmets.
The disclosure adds to the picture of the chaotic and clumsy administration of Iraq that has emerged over the last four years.The report, by the government accountability office, which sent its report to Congress last week, found a 30% gap between the number of weapons issued to Iraqi forces and records held by US forces in Iraq. No one in the Bush administration knows where the weapons are now...
...The World Health Organisation estimates that 21,000 liver transplants are carried out annually, but medical experts put annual worldwide demand at at least 90,000.
Demand for kidneys also exceeds supply, and that has given rise to organ trafficking and a black market for rich people and "transplant tourists" who travel to poor countries to buy body parts from people with few other routes to a better living.
A donor in South Africa receives $700 for a kidney compared with $30,000 in the United States. A lack of transparency and little protection for donors has spurred calls by international bodies to crack down on, or at least regulate, the trade.
But even where the trade is banned, laws are often muddled or laced with loopholes, which are sometimes defended by vested interests.
... the unregulated route is much less complicated for the recipient. Any transplant procedure involving a living donor carries risks for the donor -- especially for liver transplants which involve removing part of the donor's liver.
The complications can include bleeding, infection, even death.
In the transplant trade, the recipient need not worry about, for example, exposing a living relative to that risk.
"It is cheaper and your next of kin is not taking the risk and you don't have to care for someone you don't know. Once you pay, it is discarded in a way, it is dispensable," said Luc Noel, a Geneva-based coordinator for Clinical Procedures at the World Health Organisation.
China recently banned the sale of human organs and restricted transplants for foreigners, saying it must first meet demand at home for 2 million organs a year.
Only 20,000 transplants are carried out in China each year. Of these, 3,000 are liver transplants and 95 percent of them use livers from dead donors.
China defended its use of organs from executed prisoners, saying consent was obtained from convicts or their families. A transplant operation using the liver of a dead donor costs around $33,000 in China.
...Pakistan, where trade in human organs is not illegal, is turning into a "kidney bazaar," said the chief executive of Pakistan's Kidney Foundation, Jaffar Naqvi.
There are no confirmed figures for the number of foreigners coming to the country for new kidneys but Naqvi said there were 13 centers in Lahore alone which reported more than 2,000 transplants last year from bought kidneys.
Patients, mostly from Europe, Saudi Arabia and India, pay about 500,000 rupees ($8,500) for a new kidney, he said. Donors are paid $300 to $1,000 and often get no medical care after the surgery.
There is no consent in some cases. In May police arrested nine people, four of them doctors, for abducting people, drugging them and stealing their kidneys for transplant operations.
In the pipeline is a draft law aimed at banning the trade, but a powerful lobby bent on preserving it is trying to ensure it allows kidney donations for a non-relative, with no payment. Such a clause allowing "altruistic" organ donations will ensure the trade continues with secret payment to donors, Naqvi said.
...Stories of people selling their organs, especially kidneys, are not uncommon in Egypt, where more than 30 percent of a population of more than 73 million people live below the poverty line.
Karam, who asked to be identified only by his first name because organ trading is illegal, said it took him only 15 days to secure a kidney for his sister who was suffering from kidney failure. He said a doctor found him a man willing to sell his kidney for 30,000 Egyptian pounds ($5,300).
"The fees of the doctor were 5,000 pounds. Both his money and the fees of the hospital were deducted from the money the 'donor' received," said Karam.
He said doctors usually help in finding people willing to sell their organs from their patients' lists.
Abdel-Kader Hegazy, head of the disciplinary committee at the Doctors' Union, said Egyptian law lacks clear punishment for those involved in illegal transplants, making it easy for doctors to repeat the offence.
"The law says it is illegal to trade in organs but does not specify the punishment. We at the union suspended many doctors and closed their practices, but they have appealed before courts and won their licenses back," he told Reuters.
"It is an annoying and a regrettable situation. Well-known doctors and professors are doing this. They are rich people but they do it because they have no moral values."
...In Turkey, students, unemployed young men and struggling fathers post adverts on the Internet selling their kidneys, listing their drinking and smoking habits and blood type.
These would-be donors say they have had enquiries from Germany, Israel and Turkey with asking prices going up to 50,000 lira ($38,760).
Hakan, a 27-year-old security guard in Istanbul with two young children who also requested only his first name be published, told Reuters he received five or six offers from Turkey and Germany, offering 10,000-15,000 lira ($11,600), but he's holding out for 40,000 lira.
"Of course it's frightening but there's nothing else to be done," he said, adding he hadn't told his wife as he knew she would object.
"I'm doing it because of my family, if I was alone it wouldn't matter. I've got two children ... there's nothing else I can do for them."

Perhaps the most comical of all CIA clandestine activities -- unfortunately all too typical of its covert operations over the last 60 years -- was the spying it did in 1994 on the newly appointed American ambassador to Guatemala, Marilyn McAfee, who sought to promote policies of human rights and justice in that country. Loyal to the murderous Guatemalan intelligence service, the CIA had bugged her bedroom and picked up sounds that led their agents to conclude that the ambassador was having a lesbian love affair with her secretary, Carol Murphy. The CIA station chief "recorded her cooing endearments to Murphy." The agency spread the word in Washington that the liberal ambassador was a lesbian without realizing that "Murphy" was also the name of her two-year-old black standard poodle. The bug in her bedroom had recorded her petting her dog. She was actually a married woman from a conservative family...
...The historical record is unequivocal. The United States is ham-handed and brutal in conceiving and executing clandestine operations, and it is simply no good at espionage; its operatives never have enough linguistic and cultural knowledge of target countries to recruit spies effectively. The CIA also appears to be one of the most easily penetrated espionage organizations on the planet. From the beginning, it repeatedly lost its assets to double agents...
...Nothing has done more to undercut the reputation of the United States than the CIA's "clandestine" (only in terms of the American people) murders of the presidents of South Vietnam and the Congo, its ravishing of the governments of Iran, Indonesia (three times), South Korea (twice), all of the Indochinese states, virtually every government in Latin America, and Lebanon, Afghanistan, and Iraq. The deaths from these armed assaults run into the millions. After 9/11, President Bush asked "Why do they hate us?" From Iran (1953) to Iraq (2003), the better question would be, "Who does not?"
WASHINGTON - Afghanistan will produce another record poppy harvest this year that cements its status as the world's near-sole supplier of the heroin source, yet a furious debate over how to reverse the trend is stalling proposals to cut the crop, U.S. officials say...
U.N. figures to be released in September are expected to show that Afghanistan's poppy production has risen up to 15 percent since 2006 and that the country now accounts for 95 percent of the world's crop, 3 percentage points more than last year, officials familiar with preliminary statistics told The Associated Press.
But counterdrug proposals by some U.S. officials have met fierce resistance, including boosting the amount of forcible poppy field destruction in provinces that grow the most, officials said. The approach also would link millions of dollars in development aid to benchmarks on eradication; arrests and prosecutions of narcotraders, corrupt officials; and on alternative crop production.
Those ideas represent what proponents call an "enhanced carrot-and-stick approach" to supplement existing anti-drug efforts. They are the focus of the new $475 million program outlined in a 995-page report, the release of which has been postponed twice and may be again delayed due to disagreements, officials said.
The officials spoke on condition of anonymity because parts of the report remain classified.
Counternarcotics agents at the State Department had wanted to release a 123-page summary of the strategy last month and then again last week, but were forced to hold off because of concerns it may not be feasible, the officials said...
It's disappointing, but not surprising. After the president scuttled a compromise between Director of National Intelligence Mike McConnell and congressional Democrats, Senate Dems did what many expected they would do: they caved...
Bush is getting practically everything he asked for. Indeed, under Bush's warrantless-search program launched in 2001, the administration could conduct oversight-free surveillance only if it suspected someone on the call was a terrorist. Under the bill passed by the Senate yesterday, that condition no longer exists.
I'm going to hear Senator Barack Obama on Saturday afternoon at the Yearly Kos convention. Will report back on Sunday about his remarks.
On Thursday, he said he would not use nuclear weapons against al-Qaeda in Pakistan and Afghanistan, then backed up and said "scratch that," there had been no discussion of nuclear weapons.
Hillary Clinton criticized Obama for (initially?) ruling out the use of nuclear weapons, saying that a president should not take any weapon in the arsenal off the table.
I really think the Democrats are misunderstanding the mood of the American people. Is Senator Clinton saying she would entertain the option of nuking Pakistan or Afghanistan? Wouldn't that kill a lot of innocents and spread radioactive materials around on the grass that cows eat, putting it into milk and thence into local children, increasing their chances of contracting cancer? Isn't Obama absolutely right that this is one instance in which nukes are useless for tactical purposes?
Pakistan, by the way, is a) an ally, b) a nuclear power in its own right, c) a major Muslim country of 160 million, the population of which will soon equal that of the United States, and d) an opinion leader among other Muslim states. Most Pakistanis are not fundamentalists but rather Sufis, traditionalists, mild reformists or secularists. Or at least that is the case now. If US presidential candidates push them to the wall, they can after all decide to turn radical...
Minneapolis suffered a perfect storm of nightmares Wednesday evening, as anyone who couldn't sleep last night can tell you. Including the parents who clench their jaws and tighten their hands on the wheel every time they drive a carload of strapped-in kids across a steep chasm or a rushing river. Don't panic, you tell yourself. The people in charge of this know what they are doing. They make sure that the bridges stay standing. And if there were a problem, they would tell us. Wouldn't they?
What if they didn't?
The death bridge was "structurally deficient," we now learn, and had a rating of just 50 percent, the threshold for replacement. But no one appears to have erred on the side of public safety. The errors were all the other way.
Would you drive your kids or let your spouse drive over a bridge that had a sign saying, "CAUTION: Fifty-Percent Bridge Ahead"?
At the heart of the Constitutional dispute over domestic spying between current Attorney General Gonzales and former Attorney General John Ashcroft is corporate America. Almost all of the government data mining has been outsourced to corporations. The data mining controversy isn’t about the US government spying on Americans. It’s about the government using big corporations as a Constitutional workarounds to spy on Americans. It’s not the government that actually sifts through our emails and phone records but companies such as Lockheed Marin, Raytheon, SAIC and Booz Allen Hamilton and their subcontractors.
On Sunday, July 29th, 2007, the New York Times reported that the dispute between Gonzales and Ashcroft involved data mining and its threat to privacy and noted, “It is not known precisely why searching the databases, or data mining, raised such a furious legal debate.” The reason is most likely the growing use of corporations to perform critical intelligence functions and how these corporations can be used to circumvent legal restrictions upon the government. Outsourcing shifts the legalities or apparently that was what Gonzales was hoping.
In most cases, corporations are contracted to provide full traffic and pattern analysis services with the US government providing the targets. However, in some instances, contractors actually prepare the target list then conduct the data mining themselves. Not only can corporations be used to violate civil liberties where the government is prohibited, they also have the potential to spy on our email and phone records for their own corporate or client needs. The potential for abuse is tremendous, and, just like with corporate involvement in the President’s Daily Brief, there are no serious mechanisms to guard against this. And some of the very same tools they’re using for data mining could be adapted to monitor for misuse. Of course, abuse on the level of the Administration using corporations to conveniently ignore US law needs Congressional oversight.
Over the past five to ten years, most government intelligence functions have been outsourced to corporations, with seventy percent of the intelligence budget now going to contractors. As the Associate Director of National Intelligence recently admitted in the Washington Post in response to my article there, “we could not accomplish our intelligence missions without them [contractors].” The National Security Agency (NSA) which is responsible for monitoring communications has been at the forefront of intelligence outsourcing and has even handed over some of its own management and administrative structures to industrial contractors.
The Mainstream Media is missing the biggest part of the story, that systemic changes due to the outsourcing of critical intelligence functions open up new possibilities for circumventing the Constitution...
A federal intelligence court judge earlier this year secretly declared a key element of the Bush administration's wiretapping efforts illegal, according to a lawmaker and government sources, providing a previously unstated rationale for fevered efforts by congressional lawmakers this week to expand the president's spying powers...
This is, of course, what tax-cut mania really means, but it's also what it means when politicians prioritize showy expenditures over basic maintenance and services. This is America, breaking down.
Undermining ‘The Very Government That America Created’
Last night, during his interview with Larry King, Vice President Cheney claimed that “the reports I’m hearing, from people whose views I respect, indicate that the Petraeus plan is in fact producing results.”
On Anderson Cooper’s show later in the evening, CNN Baghdad correspondent Michael Ware, who spoke live on a night scope camera while embedded with troops responded to “the vice president’s evaluation” of progress in Iraq, calling it “sleight of hand.” “Yeah, sectarian violence is down, but let’s have a look at that,” said Ware. “More than two million people have fled this country. 50,000 are still fleeing every month, according to the United Nations. So there’s less people to be killed. And those who stay, increasingly are in ethnically-cleansed neighborhoods. They’ve been segregated.”
“There is still no sense of unity. And without America to act as the big baby sitter, this thing is not going to last.” Watch it…
Ware also responded to Brookings Institution analysts Michael O’Hanlon and Kenneth Pollack’s recent New York Times op-ed offering a sunny appraisal of progress in Iraq, calling the report “very one dimensional.” “It doesn’t look at what’s been done to achieve this and what long term sustainability there is,” said Ware. “I mean, these guys unfortunately were only in the country for eight days…”
“By achieving these successes, America is building Sunni militias,” said Ware. “Yes, they’re targeting al Qaeda, but these are also anti-government forces opposed to the very government that America created.”
...James J. Angleton was a brilliant paranoid who channeled his attributes into the espionage business. Early successes merited his appointment by CIA founder Allen Dulles in 1954 as the first Chief of the newly formed Department of Counterintelligence. His charter was to protect the CIA from penetration by foreign intelligence agencies. Over time he formed suspicions about the presence of Soviet moles in both the CIA and the FBI that eventually turned out to be correct, but not until after he had left the Agency. The exposure of his close friend Harold “Kim” Philby as a Soviet agent shattered Angleton’s self-confidence and drove him ever deeper into paranoia. Everyone was now suspect; no one could be trusted.
In a wilderness of mirrors.
What will the spider do?
T.S. Eliot, Gerontion 1919-1920
By the time of Nixon’s election Angleton had broadened his intelligence net around the world and across the nation, tapping phones, opening mail, intercepting telegrams, planting bugs; almost nowhere, and almost no one, was beyond his reach. But the frustration of not finding the traitor combined with a growing paranoia to increase his thirst for information. He desperately wanted much more, to reach beyond what his already immense network could provide. Then fortune struck.
When Nixon entered the White House he directed his Chief of Staff H.R. Haldeman to install the now-famous audio taping system. Haldeman assigned the task to his friend Alexander Butterfield, White House administrator in charge of the Secret Service. The Service’s Technical Installation branch in turn solicited advice from other intelligence resources within the Treasury Department, which is when the plan came to Angleton’s attention. Quietly, he offered the talents of his Department and provided enough support to allow him to learn everything there was to know about the taping setup, including where the recorded tapes were stored in the basement of the Executive Office Building. Once the system was up and running in 1971, Angleton’s espionage reach extended into the offices and most private discussions of the President of the United States, who was unaware of the penetration.
Angleton’s delusional suspicions deepened to encompass a broad range of suspects, eventually including then Secretary of State Henry Kissinger based solely on one defector’s hints that the mole had a connection with Germany and his name started with the letter K. (Angleton also went after career CIA officer Peter Karlow, whose career was ruined even though he was completely innocent.) These increasingly outlandish accusations caused then Director Richard Helms great concern, but his personal affection and respect led him to both reign in Angleton and protect him by keeping the accusations contained. That would soon change.
Nixon rapidly became displeased with Helms, largely because he would not unquestioningly do the President’s bidding; Helms retired in 1973 and was replaced by James Schlesinger, who would. Soon enough, Schlesinger became alarmed at Angleton’s accusations and, with Nixon’s approval, began to wind up Angleton’s network and curtail his power. The accusations against Kissinger surely played a role, as likely did influence from Kissinger himself. By mid-1973 Angleton knew he was in trouble, that his days at CIA were nearly over and so was any chance to track down the elusive mole.
But if Kissinger was a Soviet agent, and Nixon was protecting him by driving out Angleton, then Nixon had to go. With the Watergate hearings beginning to stall for lack of evidence, he made his move. Word was passed to a very junior investigator, attorney Donald Sanders, that it would be a good idea to ask former White House aide Alexander Butterfield, now FAA Director, if conversations in the President’s office were ever recorded. The question was penciled in at the end of a standard list of interview queries and presented as an afterthought, when the session was concluding. Butterfield answered truthfully, and Nixon was doomed...
On Angleton’s failures: http://findarticles.com/p/articles/mi_m1316/is_n6_v23/ai_10843603
On Angleton’s prescience: http://www.edwardjayepstein.com/question_angleton.htm
On CIA “Dirty Tricks”: http://www.theatlantic.com/doc/197908/cia-dirty-tricks
Latest on CIA dysfunctionality: http://www.randomhouse.com/doubleday/legacyofashes/
Maybe the real question we should be asking legislators is, "What do they have on you?"
Despite an imminent deadline, the Bancroft family and even some of its advisers seem sharply split over whether to sell Dow Jones & Company, the publisher of The Wall Street Journal, to Rupert Murdoch’s News Corporation.
The divisions make it almost impossible to handicap whether enough family members will vote in favor of a sale or even whether they can reach any conclusion by the deadline of 5 p.m. today. [That deadline passed without any immediate word of a decision.]
The boards of both Dow Jones and the News Corporation are bracing for the possibility that they will not have a definitive answer tomorrow, people close to both boards say, and are trying to determine their next moves, which for Dow Jones could include a general shareholder vote.
“The potential for chaos is high,” said a person close to Dow Jones management who had been briefed on the family’s deliberations but who was not authorized to speak about them.
Even within the Bancroft camp, opposition to the deal is divided. Some family trustees, like Christopher Bancroft and Jane Cox MacElree, are opposed to a sale because they do not care for Mr. Murdoch’s brand of journalism and worry that he would interfere in the news pages of the Journal.
Others, like a group of family trusts controlled by lawyers in Denver, are willing to sell but want to hold out for a 10 to 20 percent premium over the $60-per-share offer News Corporation has made, at least for the supervoting shares of the company. Both Dow Jones and News Corporation have emphatically said they would only consider one price for all shares.
WASHINGTON, July 31 — Under pressure from President Bush, Democratic leaders in Congress are scrambling to pass legislation this week to expand the government’s electronic wiretapping powers.
Democratic leaders have expressed a new willingness to work with the White House to amend the Foreign Intelligence Surveillance Act to make it easier for the National Security Agency to eavesdrop on some purely foreign telephone calls and e-mail. Such a step now requires court approval.
It would be the first change in the law since the Bush administration’s program of wiretapping without warrants became public in December 2005.
In the past few days, Mr. Bush and Mike McConnell, director of national intelligence, have publicly called on Congress to make the change before its August recess, which could begin this weekend. Democrats appear to be worried that if they block such legislation, the White House will depict them as being weak on terrorism.
“We hope our Republican counterparts will work together with us to fix the problem, rather than try again to gain partisan political advantage at the expense of our national security,” Senator Harry Reid of Nevada, the majority leader, said in a statement Monday night...
... One obstacle to a deal this week is a disagreement between Democrats and the White House over how to audit the wiretapping of the foreign-to-foreign calls going through switches in the United States.
The Democrats have proposed that the eavesdropping be reviewed by the secret FISA court to make sure that it has not ensnared any Americans.
The administration has proposed that the attorney general perform the review, but Democrats are unwilling to give that kind of authority to Attorney General Alberto R. Gonzales, who is under fire for what some lawmakers describe as his misleading testimony about the dismissals of federal prosecutors and the wiretapping program.
Mr. Gonzalez has insisted that a 2004 dispute between the White House and Justice Department officials that erupted in the hospital room of then Attorney General John Ashcroft related to other intelligence activities. On Sunday, The New York Times reported that the dispute centered on the data mining elements of the N.S.A.’s program, rather than on the eavesdropping, leaving open the possibility that Mr. Gonzalez had been legalistic in his testimony, but had technically not lied.
In a letter Tuesday to Senator Arlen Specter, the Pennsylvania Republican who is the ranking minority member of the Senate Judiciary Committee, Mr. McConnell seemed to confirm the Times account though the letter did not mention Mr. Gonzalez or his testimony.
The letter said that “shortly after 9/11, the president authorized the National Security Agency to undertake various intelligence activities designed to protect the United States from further terrorist attack. A number of these intelligence activities were authorized in one order.”
The letter adds that “one particular aspect of these activities, and nothing more, was publicly acknowledged by the president and described in December 2005, following an unauthorized disclosure.”
"There is only one thing for it then--to learn. Learn why the world wags and what wags it. That is the only thing which the mind can never exhaust, never alienate, never be tortured by, never fear or distrust, and never dream of regretting..."
-T.H. White, The Once and Future King
No Hell below us,
above us only sky...
-John Lennon, Imagine