Presidents’ Day Reads

Posted: February 21, 2011 | Author: | Filed under: Bahrain, Diplomacy Nightmares, Drone Warfare, Egypt, Foreign Affairs, income inequality, Libya, morning reads, Psychopaths in charge, U.S. Economy, U.S. Politics, Voter Ignorance, worker rights, Yemen | Tags: , , , , , , , , , | 51 Comments

Good Morning! It’s “Presidents’ Day.” Talk about a generic holiday. We used to mark two presidents’ birthdays in February–Washington’s birthday on the 22nd and Lincoln’s birthday on the 12th–but now we just have a Monday in February when everything goes on sale, and pictures of Washington and Lincoln are used to sell cars and mattresses. At least some of us get the day off work.

There’s an awful lot of news happening, and I’m guessing there could be a even more happening Libya by the time you start reading this. The latest is that protesters are in Tripoli, and the family of Libyan dictator Muammar Gaddafi is vowing to fight the protesters “to the last man standing,” according to Gaddafi’s son Saif al-Islam in a really monotonous, rambling speech yesterday.

Anti-government protesters rallied in Tripoli’s streets, tribal leaders spoke out against Gaddafi, and army units defected to the opposition as oil exporter Libya endured one of the bloodiest revolts to convulse the Arab world.

Gaddafi’s son Saif al-Islam Gaddafi appeared on national television in an attempt to both threaten and calm people, saying the army would enforce security at any price.

“Our spirits are high and the leader Muammar Gaddafi is leading the battle in Tripoli, and we are behind him as is the Libyan army,” he said.

“We will keep fighting until the last man standing, even to the last woman standing…We will not leave Libya to the Italians or the Turks.”

He also warned of “rivers of blood.” But those may be famous last words. From the Guardian UK:

In fast-moving developments after midnight, demonstrators were reported to be in Tripoli’s Green Square and preparing to march on Gaddafi’s compound as rumours spread that the leader had fled to Venezuela. Other reports described protesters in the streets of Tripoli throwing stones at billboards of Muammar Gaddafi while police used teargas to try to disperse them.

“People are in the street chanting ‘Allahu Akbar’ (God is great) and throwing stones at photos of Gaddafi,”an expatriate worker told Reuters by telephone from Tripoli. “The police are firing teargas everywhere, it’s even getting into the houses.”

There was also plenty of protesting going on in other Middle Eastern countries:

Libya’s extraordinary day overshadowed drama elsewhere in the region. Tensions eased in Bahrain after troops withdrew from a square in Manama occupied by Shia protesters. Thousands of security personnel were also deployed in the Iranian capital, Tehran, to forestall an opposition rally. Elsewhere in the region unrest hit Yemen, Morocco, Oman, Kuwait and Algeria.

At Asia Times Online, Pepe Escobar wrote a couple of days ago that the protests in Bahrain could soon spread to Saudi Arabia. That is one fascinating article.

In Wisconsin, protesters say they aren’t going anywhere.

“We’ll be here Monday, Tuesday, Wednesday, Thursday — as long as it takes,” Gary Lonzo, a union organizer and former Wisconsin corrections officer, said Sunday as he watched protesters banging drums and waving signs here for a sixth day in a row. “We’re not going anywhere.”

As the protests went on through falling sleet and snow, some lawmakers suggested that a compromise might yet be possible over the cuts that Gov. Scott Walker, a Republican, has proposed. A spokesman for Dale Schultz, a moderate Republican senator, said that Mr. Schultz supported Mr. Walker, particularly in his assessment that the state budget situation was dire, but that Mr. Schultz also hoped to work to preserve collective bargaining rights.

Meanwhile, Wisconsin’s Democratic State Senators are staying in Illinois until further notice.

“This is not a stunt, it’s not a prank,” said Senator Jon Erpenbach, one of the Democrats who drove away from Madison early Thursday, hours before a planned vote, and would say only that he was in Chicago. “This is not an option I can ever see us doing again, but in this case, it’s absolutely the right thing to do. What they want to do is not the will of the people.”

Either I missed this story completely, or the US corporate media ignored it. An exiled religious leader, Muslim cleric Yusuf al-Qaradawi, has returned to Egypt after 50 years and may be trying to “stealing the revolution,” according to a retweet from Mona Eltahawy (h/t, Wonk the Vote). Quaradawi made a speech to more than a million people in Cairo’s Tahrir Square on Friday. During the rally,

Google executive Wael Ghonim, who emerged as a leading voice in Egypt’s uprising, was barred from the stage in Tahrir Square on Friday by security guards, an AFP photographer said. Ghonim tried to take the stage in Tahrir, the epicentre of anti-regime protests that toppled President Hosni Mubarak, but men who appeared to be guarding influential Muslim cleric Yusuf al-Qaradawi barred him from doing so.

Ghonim, who was angered by the episode, then left the square with his face hidden by an Egyptian flag.

Uh oh….

Remember Raymond Davis, who was arrested in Pakistan for shooting two Pakistani men on the street? He was more or less outed as a CIA agent during his trial. The U.S. has been trying to save him from murder charges by claiming he had diplomatic immunity. But the trial has gone on anyway, and now it’s definite that he’s CIA.

Raymond Davis has been the subject of widespread speculation since he opened fire with a semi-automatic Glock pistol on the two men who had pulled up in front of his car at a red light on 25 January.

Pakistani authorities charged him with murder, but the Obama administration has insisted he is an “administrative and technical official” attached to its Lahore consulate and has diplomatic immunity.

Based on interviews in the US and Pakistan, the Guardian can confirm that the 36-year-old former special forces soldier is employed by the CIA. “It’s beyond a shadow of a doubt,” said a senior Pakistani intelligence official. The revelation may complicate American efforts to free Davis, who insists he was acting in self-defence against a pair of suspected robbers, who were both carrying guns.

[….]

The Pakistani government is aware of Davis’s CIA status yet has kept quiet in the face of immense American pressure to free him under the Vienna convention. Last week President Barack Obama described Davis as “our diplomat” and dispatched his chief diplomatic troubleshooter, Senator John Kerry, to Islamabad. Kerry returned home empty-handed.

Many Pakistanis are outraged at the idea of an armed American rampaging through their second-largest city. Analysts have warned of Egyptian-style protests if Davis is released.

Oh dear, another diplomatic nightmare for our indecisive President to deal with. BTW, has he said anything about the bloody massacres in Libya yet?

The New York Post has a nasty takedown of Mitt Romney by Josh Kosman, author of a book on how private equity firms could cause the next economic crisis.

…the former private equity firm chief’s fortune — which has funded his political ambitions from the Massachusetts statehouse to his unsuccessful run for the White House in 2008 — was made on the backs of companies that ultimately collapsed, putting thousands of ordinary Americans out on the street. That truth if it becomes widely known could become costly to Romney, who, while making the media rounds recently, told CNN’s Piers Morgan that “People in America want to know who can get 15 million people back to work,” implying he was that person.

Romney’s private equity firm, Bain Capital, bought companies and often increased short-term earnings so those businesses could then borrow enormous amounts of money. That borrowed money was used to pay Bain dividends. Then those businesses needed to maintain that high level of earnings to pay their debts.

Romney in 2007 told the New York Times he had nothing to do with taking dividends from two companies that later went bankrupt, and that one should not take a distribution from a business that put the company at risk.

Yet Geoffrey Rehnert, who helped start Bain Capital and is now co-CEO of the private equity firm The Audax Group, told me for my Penguin book, “The Buyout of America: How Private Equity Is Destroying Jobs and Killing the American Economy,” that Romney owned a controlling stake in Bain Capital between approximately 1992 and 2001. The firm under his watch took such risks, time and time again.

I’m going to leave you with this video from The Ed Show live in Madison, Wisconsin.

What are you reading and blogging about today?

Will 2011 “Rock the World” Like 1968 Did?

Posted: February 19, 2011 | Author: | Filed under: Algeria, Bahrain, Egypt, Foreign Affairs, Iraq, Middle East, Tunisia, U.S. Economy, U.S. Politics, worker rights, Yemen | Tags: , , , | 27 Comments

Paris, May 1968

For the past few weeks, as the protests in Tunisia spread to Egypt and then to several other countries, I’ve been reminded of the worldwide political uprisings that took place back in 1968, “the year that rocked the world.” Now that we are even seeing Americans protesting in the streets of Madison, Wisconsin and Columbus, Ohio, I wonder: could it happen again?

In case you weren’t around in 1968 or your memory is fuzzy, the Guardian published a summary of some of the events of that unbelievable year back in 2008. Sean O’Hagen describes how in May 1968, Paris

…was paralysed after weeks of student riots followed by a sudden general strike. France’s journey from ‘serenity’ to near revolution in the first few weeks of May is the defining event of ‘1968’, a year in which mass protest erupted across the globe, from Paris to Prague, Mexico City to Madrid, Chicago to London.

[….]

These rebellions were not planned in advance, nor did the rebels share an ideology or goal. The one cause many had in common was opposition to America’s war in Vietnam but they were driven above all by a youthful desire to rebel against all that was outmoded, rigid and authoritarian. At times, they gained a momentum that took even the protagonists by surprise. Such was the case in Paris, which is still regarded as the most mythic near-revolutionary moment of that tumultuous year, but also in Mexico City, Berlin and Rome.

In these cases, what began as a relatively small and contained protest against a university administration – a protest by the young and impatient against the old and unbending – burgeoned into a mass movement against the government. In other countries – like Spain, where the Fascist General Franco was still in power, and Brazil, where a military dictatorship was in place – the protests were directed from the start against the state. In Warsaw and Prague, the freedom movements rose up briefly against the monolithic communist ideology of the USSR. And in America, capitalism was the ultimate enemy, and Vietnam the prime catalyst.

Those protests, along with revolutions in music, art, fashion, and mores truly changed the world. Could it be happening again? Have we really reached a tipping point?

I thought I’d just put up some links to the important events that have taken place today in the many ongoing protests. You can add your own links in the comments (if anyone else is still awake).

More below the fold….

Read the rest of this entry »

Thursday Reads

Posted: February 17, 2011 | Author: | Filed under: Bahrain, Civil Rights, Egypt, Foreign Affairs, Israel, Lebanon, morning reads, Team Obama, The Media SUCKS, U.S. Politics | 34 Comments

Good Morning!!

A couple of days ago President Obama actually did something I could cheer about. He awarded the Medal of Freedom to former Boston Celtics great Bill Russell. Of course he also awarded them to George H.W. Bush and Warren Buffett, but I’ll try to overlook that for now.

Obama suggested that Boston should have a statue of Russell, and according to the Boston Herald:

The unveiling of a Bill Russell statue in Boston appears to be just a matter of time.

According to Celtics [team stats] co-owner Steve Pagliuca, the organization has already begun the process of getting the statue created and placed. And it didn’t hurt Tuesday when President Barack Obama, while awarding Russell the Medal of Freedom, mentioned that such a monument should be erected for future generations.

That would be okay, but I agree with what I heard NPR sports commentator Bill Littlefield recommend yesterday: every school library should have copies of Russell’s books and biographies of him written by others.

Russell played for the Celtics in the days when racism was rampant in Boston.

NBA greats Bill Russell and Wilt Chamberlain

As a highly visible public figure in the years when the country was emerging from a century of legally sanctioned discrimination, Russell threw his prestige behind the emergent Civil Rights Movement, participating with Dr. Martin Luther King, Jr. in the historic 1963 March on Washington. Russell’s years of living in Boston were not easy ones. At the height of the Celtics’ success there were many empty seats in the Boston Garden, while less successful teams in other cities played to full arenas. When Russell bought a fine home for his family in a historically white neighborhood, he received threats and insults. On one occasion, vandals broke into his home and splattered the walls with filth and graffiti. Unbowed, Russell focused his energies on his game, and enjoyed excellent relations with his teammates and other NBA players.

Once when a hotel in the South denied accommodations to black players, Russell protested by refusing to play in the game that night, drawing media attention to the injustice. He never let the disrespect he often received prevent him from giving his heart and soul to Celtics basketball, leading the team to 11 NBA championships. If only President Obama would take leadership lessons from Bill Russell!

For a long time Russell remained bitter about Boston, but in the past 20 years or so he has become a presence here again, a greatly admired and beloved part of Boston sports and social history. Never mind that the Medal of Freedom has been given to so many who don’t deserve it. This time it went to someone truly worthy.

In other news…

The White House is still leaking information to The New York Times in an effort to make it look like President Obama has been in full control during the ongoing crises in the Middle East.

President Obama ordered his advisers last August to produce a secret report on unrest in the Arab world, which concluded that without sweeping political changes, countries from Bahrain to Yemen were ripe for popular revolt, administration officials said Wednesday.

Mr. Obama’s order, known as a Presidential Study Directive, identified likely flashpoints, most notably Egypt, and solicited proposals for how the administration could push for political change in countries with autocratic rulers who are also valuable allies of the United States, these officials said.

The 18-page classified report, they said, grapples with a problem that has bedeviled the White House’s approach toward Egypt and other countries in recent days: how to balance American strategic interests and the desire to avert broader instability against the democratic demands of the protesters.

Administration officials did not say how the report related to intelligence analysis of the Middle East, which the director of the Central Intelligence Agency, Leon E. Panetta, acknowledged in testimony before Congress, needed to better identify “triggers” for uprisings in countries like Egypt.

Hmmm…I wonder why Obama looked so flatfooted and off-balance when the Egyptian protests began then? Why did he fail to make any definite stands? Why did he make so many vague and conflicting statements? Why is he now trying to blame all of this on the State Department? Do you suppose maybe he didn’t read the report?

Whatever. It’s too late. The rest of the world knows he’s incompetent even if a lot of Americans don’t.

The Obama administration offered to support a UN rebuke of Israel:

The U.S. informed Arab governments Tuesday that it will support a U.N. Security Council statement reaffirming that the 15-nation body “does not accept the legitimacy of continued Israeli settlement activity,” a move aimed at avoiding the prospect of having to veto a stronger Palestinian resolution calling the settlements illegal.

But the Palestinians rejected the American offer following a meeting late Wednesday of Arab representatives and said it is planning to press for a vote on its resolution on Friday, according to officials familar with the issue. The decision to reject the American offer raised the prospect that the Obama adminstration will cast its first ever veto in the U.N. Security Council.

Still, the U.S. offer signaled a renewed willingness to seek a way out of the current impasse, even if it requires breaking with Israel and joining others in the council in sending a strong message to its key ally to stop its construction of new settlements. The Palestinian delegation, along with Lebanon, the Security Council’s only Arab member state, have asked the council’s president this evening to schedule a meeting for Friday. But it remained unclear whether the Palestinian move today to reject the U.S. offer is simply a negotiating tactic aimed at extracting a better deal from Washington.

Gordonskene at C&L has a great post up about one of my favorite journalists of all time: Eric Severeid:

Before the days of spin, agendas and punditry, there was that somewhat extinct class of journalists known as “commentators” – and even though they were journalists first, their commentaries were secondary; separate and classified as such. They were usually imbued with a sense of professional objectivity we would find somewhat strange by todays standards with Entertainers masquerading as Journalists and Journalists masquerading as Entertainers.

One such commentator was Eric Sevareid. In the mold of Edward R. Murrow (in fact, often referred to as one of “Murrow’s Boys” during World War 2), Sevareid along with radio journalists Charles Collingwood, Robert Trout and many others from CBS and the other networks routinely offered commentaries on the days news, separate from their regular reporting.

Yes, those were the days…there may have been plenty of propaganda, but there was some actual journalism going on too.

You may have heard (despite the U.S. media blackout) that a warrant has been issued for the arrest of Pervez Musharraf, former President of Pakistan for the murder of Benazir Bhutto. Ron Brynaert at Bradblog has an analysis of the U.S. media reaction. A sample:

“A Pakistani court issued an arrest warrant for ousted military leader Pervez Musharraf on Saturday over allegations he played a role in the 2007 assassination of an ex-prime minister and rival,” the Associated Press reported over the weekend, although no major US newspaper seems to have followed up. “It was a major setback for the onetime U.S. ally, who was plotting a political comeback from outside the country.”

[….]

After the opening paragraph, the next four paragraphs of AP’s report are devoted to defenses of Musharraf, accusations against the present Pakistan government, and doubts that the warrant will amount to much. An independent United Nations report which blasted the Musharraf government’s security arrangements as “fatally insufficient” isn’t mentioned until near the end, and reports that the Musharraf government lied and manipulated evidence about the ultimate cause of Bhutto’s death are completely ignored.

“Musharraf, who has not been charged, described accusations that he had a hand in the attack on ex-Prime Minister Benazir Bhutto as a smear campaign by a government led by her aggrieved husband,” the second paragraph states, even though the former coup leader is never directly quoted once in the article.

Al Jazeera has the latest on events in the Middle East:

Clashes rock Bahraini capital

The Bahrain capital of Manama was rocked by sporadic clashes, hours after riot police attacked a makeshift encampment of pro-reform protesters in the centre of the city, killing at least three and injuring dozens of others.

An Al Jazeera correspondent, who cannot be named for security reasons, said on Thursday morning that “clashes were no longer limited to one place…they are now spread out in different parts of the city”.

Another Al Jazeera online producer said that booms could be heard from different parts of the city, suggesting that “tear-gas is being used to disperse the protesters in several neighbourhoods”.

Latest reports, however, indicated that a tense calm had descended on the capital with troops patroling the streets.

There were also reports of dozens of armoured vehicles moving towards the Pearl Roundabout, the protest site that was raided by the riot police.

‘Day of rage’ kicks off in Libya: Protesters have reportedly taken to the streets in four cities despite a crackdown, heeding to calls for mass protests.

Protesters in Libya have defied a security crackdown and taken to the streets in four cities for a “day of rage,” inspired by uprisings in Egypt and Tunisia, reports say.

Several hundred supporters of Muammar Gaddafi, the country’s longtime leader, have also reportedly gathered in the capital on Thursday to counter online calls for anti-government protests.

New York-based Human Rights Watch said that Libyan authorities had detained 14 activists, writers and protesters who had been preparing the anti-government protests.

Libya has been tightly controlled for over 40 years by Gaddafi, who is now Africa’s longest-serving leader.

According to reports on Twitter, the microblogging site, Libya’s regime had been sending text messages to people warning them that live bullets will be fired if they join today’s protests.

That’s all I’ve got for today. What are you reading and blogging about?

Musing about My Reaction to News of the Attack on Lara Logan

Posted: February 16, 2011 | Author: | Filed under: Egypt, Foreign Affairs, just because, Violence against women, Women's Rights | Tags: , , , , | 77 Comments

Woman protesting in Cairo

Yesterday in the early evening, as I was surfing the ‘net, I came across the announcement by CBS that their foreign correspondent Lara Logan had been brutally sexually assaulted and beaten in Cairo on the day Mubarak resigned.

Normally, I would have posted this at Sky Dancing right away, but at first I hesitated because the description of what happened, although vague, sounded so awful and I thought it would be insensitive to rush to the keyboard to spread the news.

Within a short period of time, it became clear to me that both mainstream news sources and blogs were all posting the story and discussing it. Still, I hesitated. I checked with the other frontpagers to see what they thought, perhaps subconsciously hoping one of them would write the post that I didn’t want to write. Meanwhile, I continued reading reactions to the story at other sites.

Finally I realized that I was really blocked about this story for some reason. I simply couldn’t find the words to write anything coherent about it. I felt a very deep sadness and a sense of foreboding that I didn’t quite understand.

I usually react strongly to stories about violence against women, but normally I don’t have a problem writing about them. Why was I having writer’s block over this one? Thankfully, Minkoff Minx wrote a very sensitive and compassionate post last night, and I stopped obsessing about my “problem” and went to sleep.

This morning as I was driving to work, I again started thinking about the feelings I had had last night; and I was able to begin to better understand my strong reaction. I had been so thrilled by what took place in Egypt–that the protesters had been able to force the ousting of Mubarak and that they had done in relatively peacefully. I had also been excited to see women taking an active role in the demonstrations. I now realized that learning about what had happened to Logan, had tainted my enthusiastic feelings about the Egyptian protests. I also began to wonder if anything would really change for Egyptian women even if there were real changes in their government.

In my reading last night I had learned that Katie Couric had also felt in danger among the crowds in Tahrir Square. She had been pushed hard by an Egyptian man whom she described as being extremely angry, his eyes full of rage.

Even more disturbing, I read that Egyptian women are regularly accosted and groped by men when they go out in public. In fact, 86% of women in Egypt say they have been sexually harrassed. From Sarah Topol, at Slate:

Egypt has a sexual harassment problem. In a 2008 study, 86 percent of women said they had been harassed on Egypt’s streets—any woman walking through a crowd of men in Egypt braces to get groped. But in the square, crammed in shoulder-to-shoulder, men apologized if they so much as bumped into you. After wandering around the protests for days, it suddenly dawned on me that I hadn’t been groped, a constant annoyance when I’m faced with large crowds in Cairo. When I pointed this out to other women in the square, we all took a moment to reflect. “I hadn’t even thought of that,” one woman in Tahrir told me. “But it’s because we’re all so focused on one goal, we’re a family here.”

Here is another piece about sexual harrassment of women in Egypt (h/t Dakinikat). In the article, Mary Rogers, a CNN producer and camerawoman who has lived in Egypt since 1994, wrote about her own personal experiences of being sexually harrassed. Be warned, it’s pretty disturbing.

Again at Slate, Rachel Larrimore asked whether the attack on Lara Logan was a “bad omen” for Egyptian women. She wondered if in the end women would really be empowered by the “revolution.” Or would they be sent back home with a “thank you” and a pat on the head?

As I continued thinking about all this, I recalled how as a young girl I had tried reading science fiction novels. I liked them a lot, but I was disappointed that male science fiction writers wrote about women in the future performing pretty much the same roles and working in the same jobs that women in the 1960s. I wondered why these supposedly imaginative writers were unable to imagine that future women might actually do exciting, stimulating jobs instead of continuing to be teachers, nurses and clerical workers eons into the future.

And yes, I know there are female science fiction writers now who imagine women of the future in adventurous situations–and perhaps there are even male writers now who can imagine such things. It doesn’t matter. For me the damage was done. I had learned something very depressing about the culture I lived in. Women were bit players–there only to provide foils for men, or to support or comfort men.

That is how I feel now about the Egyptian protests. Women were included for a time, perhaps because they were needed, perhaps because everyone was feeling excited, happy, and inclusive. For a time, even the groping of women stopped. But then, on that day when Mubarak resigned it began again. And a very famous American woman was horribly attacked by men who screamed “Jew! Jew!” as they violated and beat her.

And the day before, Logan had told Esquire.com that Egyptian soldiers hassling her and her crew had accused them of “being Israeli spies.” Logan is not Jewish.

After the attack, Logan returned to the U.S. where she spent the past several days in the hospital. It has been reported that according to network sources she was at first unable to speak and that her injuries were “serious.”

I want to be very clear. This isn’t just about the Middle East or Muslims. This could easily have happened here. Women are brutally raped every day in the U.S. Many more women are sexually harrassed at work or on the street.

Most women have experienced this–I know I have. I’ve been groped by strangers in public places. It is a terribly traumatic, degrading, and humiliating experience that can stay with you forever. I still occasionally flash back to times when this happened to me, and feel the remnants of helpless rage followed by sadness and even depression that follow such experiences. The trauma of actually being raped is, of course, far worse, and can change a woman’s life forever.

I’ll wrap this up for now. I just thought I’d share my thoughts on this, in hopes that others might relate to them.

Finally, I want to note some positive reactions following this heartbreaking event.

Nir Rosen, the “journalist” who sent out horribly offensive tweets attacking both Logan and Anderson Cooper was forced to resign from his fellowship at NYU today. He gave an interview to Fishbowl DC in which he tried to explain the unexplainable.

Egyptian activists have condemned the attack on Logan.

“It’s incredibly sad that this has happened, and it’s something that the spirit of Tahrir and the spirit of revolution was resolutely against,” Ahdaf Soueif, an author who spent a great deal of time in Tahrir Square, told the Guardian. “Women in the square were rejoicing that they felt freedom on the streets of Cairo for the first time, and [this is] definitely something that we want to stamp out alongside corruption and all the other social ills that have befallen Egypt during Mubarak’s regime.”

Mahmoud Salem, a well known Egyptian blogger, was one of many of the January 25 activists to express outrage. “Lara Logan, what happened to you was reprehensible, & I hope u don’t judge the egyptian people or Tahrir because of it,” he tweeted under his moniker Sandmonkey.

Finally, Logan is now home with her family and talking to friends about what happened to her–a healthy sign. And she is determined to go back to her job after a few weeks. Clearly she is a very strong woman with a good support system. I hope that her husband will stand by her and that she will be able to heal from this and go back to doing the work she loves.

Tuesday Reads: Tim Geithner in Control of Obama’s Economic Policy, and Other News

Posted: February 15, 2011 | Author: | Filed under: Bailout Blues, Barack Obama, Economic Develpment, Egypt, financial institutions, Foreign Affairs, Global Financial Crisis, Gulf Oil Spill, Iran, U.S. Economy, U.S. Politics, unemployment, Yemen | Tags: , , , , , , | 22 Comments

Good Morning!! The snow is slowly melting outside my house, and I’ve come down with Spring fever! No more snowstorms please, Mother Nature. Anyway, at least for this week, we are getting temperatures in the 40s and 50s. It is going to be chilly again tomorrow, but after that–springlike! After the frigid winter we’ve lived through, these temperatures feel amazing. Maybe this will make the bad news from DC a little more bearable. I hope so.

This morning I want to focus on an important article that comes via David Dayen at FDL. It’s a piece at The New Republic about Timothy Geithner, written by Noam Scheiber. First a little aside.

Back in November, I wrote a post about the axing of Obama’s economic team and noted that Geither was the last man standing.

In that post, I quoted Andrew Cockburn of Counterpunch:

If Barack Obama needed any help in guiding the Democratic Party over the cliff he certainly got it from Treasury Secretary Timothy Geithner. Voters have told pollsters that the state of the economy, their own in particular, was their principle concern. Though impelled by the specter of unemployment and homelessness, the image of Geithner, toady to the bankers, can only have encouraged them in their fury. A sensible president would therefore already be running out the plank prior to giving this disastrous financial overseer an encouraging shove between the shoulders. But in this case, we may not be that lucky. CounterPunch can reveal the crucial role played in these matters by a group close to the President but unknown to the outside world.

A knowledgeable insider told Cockburn that despite Larry Summers’ reputation as a corporate tool,

“Larry has some idea that there is more to the economy than just the welfare of large banks,” this official suggests. “He did push for a larger stimulus and more jobs programs, for example. Tim just cares about banks.”

I then went on to indulge in a little conspiracy theorizing based on Cockburn’s information. But that’s beside the point right now. The point is that after writing that post, I came to the conclusion that Geithner was running economic policy in the Obama administration.

Getting back to the article at TNR, Scheiber purports to explain how Geithner survived the massacre of the economists. One interesting tidbit in the lengthy article is about Geithner’s relationship with Larry Summers, who acted as Geithner’s mentor and patron early on.

In 1993, Geithner caught the attention of [a] prominent patron—Larry Summers—whom Bill Clinton had appointed as his treasury undersecretary. Summers took a personal interest in Geithner’s career and promoted him each time he rose through the Treasury ranks.

And then during the Obama administration, Geithner apparently stabbed his patron in the back, becoming President Obama’s primary economic adviser–even though Geithner isn’t an economist. (Neither is anyone else on Obama current “economic team,” as Dakinikat frequently points out.)

Geithner actually sounds a lot like Obama–he’s really good at sucking up and convincing people he’s on their side–until he slides in the knife. Regarding Geithner’s time at the IMF, Scheiber writes:

According to former co-workers, Geithner was deft at bringing skeptical colleagues on board. One technique involved homing in on possible dissidents and absorbing their suggestions into his proposals.

Sound familiar? A bit more:

Perhaps most important, Geithner was scrupulously attuned to the temperament of the boss. Like Obama, he evinced a strong aversion to blather. During meetings with the president, he would say little, and usually not until the end, when his opinion was solicited. “I thought [Geithner] got the president really well,” says a former administration official who interacted with him on nonfinancial matters. “When he was in trouble, I said to someone, ‘He just needs to hold on. He’ll be fine with Obama. Once they get to know each other, they’re like the same person.’”

Scheiber describes an epic struggle between Geithner and Summers over how to deal with the banks that had crashed the U.S. economy. Summers argued for some form of nationalization, while Geithner claimed the banks just needed more capital and they could recover.

If Geithner was right, the capital shortfall was much more manageable than Summers feared. The banks might be able to fill it with minimal government help, simply by selling shares to investors. But, if he was wrong, the banks would stumble along in a kind of vampire state, sucking credit from the economy and exacerbating the recession. In the worst case, fears of insolvency could trigger a modern-day version of Depression-era bank runs.

Hey, wait a minute. That sounds like what is happening to our economy right now. But, never mind, Geithner won the battle that counted–the battle for Obama’s favor.

Part of what Geithner convinced Obama of was “that it was ultimately better politics to risk a backlash with unemployment at 10 percent than to feed the backlash and watch the economy shrink further.” So it’s Geithner we have to thank for the new normal of high unemployment, poverty, and suffering among the middle, working, and lower classes.

Finally, what horrified David Dayen was Geithner’s out-front claim that–in Dayen’s words, “what’s good for Wall Street is good for America.” Geithner:

“I don’t have any enthusiasm for … trying to shrink the relative importance of the financial system in our economy as a test of reform, because we have to think about the fact that we operate in the broader world,” he said. “It’s the same thing for Microsoft or anything else. We want U.S. firms to benefit from that.” He continued: “Now financial firms are different because of the risk, but you can contain that through regulation.” This was the purpose of the recent financial reform, he said. In effect, Geithner was arguing that we should be as comfortable linking the fate of our economy to Wall Street as to automakers or Silicon Valley.

In response, Dayen writes:

I don’t even know what to say about this. We’re just a few years removed from the financial oligarchs destroying the global economy through their own greed and negligence. And the man put in charge of regulating them, who had a front-row seat to all this destruction and who has been given expanded powers under Dodd-Frank to see to it that never happens again, thinks that there’s a great “financial deepening” about to take place where the demand for sophisticated financial innovations will jump. Therefore, the financial sector will need to grow and become the most reliable spur of the US economy. That’s his feeling. And regulation can reduce the risk, even though the new regulations barely put a dent into Wall Street’s core business, and are being systematically defunded besides.

Financialization of the economy has led to practically nothing but pain for the average worker and risk for the taxpayer. It has turned the allocation of capital into the placing of bets at a casino, and the stock market into a particularly sophisticated video poker game. This territory was all covered before in the run-up to the Great Depression as well, and we know the precise causes and remedies involved. Geithner prefers not to address the plutocracy he’s really advancing here – where elites provide “financial deepening” services abroad and amass ridiculous profits that they wall off.

This incredibly amoral conman is partnering with our conman chief executive to sell out our country, our lives, and those of our children and grandchildren. There’s lots more of interest in the article, particularly the information about Geithner’s upbringing.

I’ll wrap this up with a few other stories, and then throw the floor open to your links and opinions. Did you hear that Stephen Baldwin is suing Kevin Costner over Costner’s oil-eating invention?

It seems Baldwin sold his shares in Costner’s company right before BP shelled out $50 million for the machines.

Jane Hamsher offers a flow-chart of the principle players in the scandal over US Chamber of Commerce’s attempts to discredit Wikileaks, Glenn Greenwald, Brad Friedman, David House, and others who have supported wikileaks and Bradley Manning. Joseph Cannon has also been covering this story.

Brad Friedman’s post especially is a must read. Get this, the Chamber paid 2 million dollars a month for dirt on Friedman, and got completely inaccurate information. And that inaccurate information came from corporations who are paid billions by our government “to target terrorists.” But Obama wants to cancel heating assistance for poor people to save money.

Mitt Romney is ahead in the latest NH poll, at 40%, for whatever that’s worth. Romney was always going to win NH. They always vote for New Englanders up there. The real test for Romney will be Iowa.

The Patriot Act extension has been passed by the House on the second try. I think the Egyptians will probably get rid of their emergency law before we get rid of ours.

There are “massive” protests in Iran, inspired by the dramatic events in Egypt. There have also been more protests in Yemen and in Bahrain. When will it happen here?

What are you reading and blogging about today?

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