Tuesday Reads: McCain Plays “Pretend President,” Pressure Cookers, Upcoming Zimmerman Trial, and Other News

Posted: May 28, 2013 | Author: bostonboomer | Filed under: Barack Obama, Crime, Criminal Justice System, Foreign Affairs, John McCain, morning reads, Republican politics, Syria, U.S. Politics | Tags: Barbara Boxer, EU, Free Syrian Army, Fukushima, Gen. Salem Idris, George Zimmerman, Hussain Al Khawahir, John Kerry, pressure cookers, Pretend President McNasty, Racism, right to vote, San Onofre nuclear plant, Syrian Emergency Task Force, Trayvon Martin, Turkey, US Supreme Court | 76 Comments

Good Morning!!

Last night Josh Rogin reported that warmongering Senator John McCain had sneaked across the Syrian border from Turkey and talked to Gen. Idris Salem, head of the “Free Syrian Army.”

McCain, one of the fiercest critics of the Obama administration’s Syria policy, made the unannounced visit across the Turkey-Syria border with Gen. Salem Idris, the leader of the Supreme Military Council of the Free Syrian Army. He stayed in the country for several hours before returning to Turkey. Both in Syria and Turkey, McCain and Idris met with assembled leaders of Free Syrian Army units that traveled from around the country to see the U.S. senator. Inside those meetings, rebel leaders called on the United States to step up its support to the Syrian armed opposition and provide them with heavy weapons, a no-fly zone, and airstrikes on the Syrian regime and the forces of Hezbollah, which is increasingly active in Syria.

Idris praised the McCain visit and criticized the Obama administration’s Syria policy in an exclusive interview Monday with The Daily Beast.

“The visit of Senator McCain to Syria is very important and very useful especially at this time,” he said. “We need American help to have change on the ground; we are now in a very critical situation.”

Apparently McCain decided to play Pretend President to celebrate Memorial Day. I haven’t been paying close attention to the news for the past few days, but I think I would have seen any reports that the White House or the State Department had requested Senator McNasty’s help in reaching out to opposition forces in Syria.

Prior to his visit inside Syria, McCain and Idris had separate meetings with two groups of FSA commanders and their Civil Revolutionary Council counterparts in the Turkish city of Gaziantep. Rebel military and civilian leaders from all over Syria came to see McCain, including from Homs, Qusayr, Idlib, Damascus, and Aleppo. Idris led all the meetings.

The entire trip was coordinated with the help of the Syrian Emergency Task Force, an American nonprofit organization that works in support of the Syrian opposition.

That’s all I’ve got for you today. Please post your recommended reads in the comment thread, and have a terrific Tuesday!

Thursday Reads

Posted: May 31, 2012 | Author: bostonboomer | Filed under: 2012 presidential campaign, Barack Obama, Mitt Romney, morning reads, U.S. Politics, unemployment | Tags: "Geezer Empire", "secret kill list", Behram Noor, bluefin tuna, Bob Dylan, cesium-137, collateral damage, conterterrorism, electrons, Fatima, Fukushima, jobs, Julian Assange, murder, NASA, Predator drones, radiation, radiation detectors, smartphones, terrorists, upper atmosphere | 39 Comments

Good Morning!! I’ve got a mixed bag of reads for you this morning, so I hope there will be something her to interest you.

Did you see the piece in The New York Times on Obama’s “secret kill list?” Very creepy. The article makes it clear that President Obama is actively engaged in decisions about which “terrorists” to target with drone attacks.

Mr. Obama is the liberal law professor who campaigned against the Iraq war and torture, and then insisted on approving every new name on an expanding “kill list,” poring over terrorist suspects’ biographies on what one official calls the macabre “baseball cards” of an unconventional war. When a rare opportunity for a drone strike at a top terrorist arises — but his family is with him — it is the president who has reserved to himself the final moral calculation.

“He is determined that he will make these decisions about how far and wide these operations will go,” said Thomas E. Donilon, his national security adviser. “His view is that he’s responsible for the position of the United States in the world.” He added, “He’s determined to keep the tether pretty short.”

At Slate, William Saletan breaks down the problems with the Times story and explains why the supposedly strict rules for choosing which people to target are really pretty meaningless.

To understand the Times story, you have to go back to a speech given last month by John Brennan, Obama’s counterterrorism adviser. Brennan argued that the administration was waging drone warfare scrupulously. He described a rigorous vetting process. The Times report, quoting some officials and paraphrasing others, largely matches Brennan’s account. But on two key points, it undermines his story. The first point is target selection. Brennan asserted:

The president expects us to address all of the tough questions. … Is this individual a significant threat to U.S. interests? … Our commitment to upholding the ethics and efficacy of this counterterrorism tool continues even after we decide to pursue a specific terrorist in this way. For example, we only authorize a particular operation against a specific individual if we have a high degree of confidence that the individual being targeted is indeed the terrorist we are pursuing. This is a very high bar. … Our intelligence community has multiple ways to determine, with a high degree of confidence, that the individual being targeted is indeed the al-Qaida terrorist we are seeking.

The rules sound strict. But reread the fourth sentence: “We only authorize a particular operation against a specific individual if we have a high degree of confidence that the individual being targeted is indeed the terrorist we are pursuing.” The phrase “against a specific individual” hides the loophole. Many drone strikes don’t target a specific individual. To these strikes, none of the vetting rules apply.

At Salon, Jefferson Morley explores the death of one little girl who was “collateral damage” in one of Obama’s drone strikes in Pakistan in 2010.

Around midnight on May 21, 2010, a girl named Fatima was killed when a succession of U.S.-made Hellfire missiles, each of them five-feet long and traveling at close to 1,000 miles per hour, smashed a compound of houses in a mountain village of Mohammed Khel in North Waziristan along the Afghanistan-Pakistan border. Wounded in the explosions, which killed a half dozen men, Fatima and two other children were taken to a nearby hospital, where they died a few hours later.

Behram Noor, a Pakistani journalist, went to the hospital and took a picture of Fatima shortly before her death. Then, he went back to the scene of the explosions looking for evidence that might show who was responsible for the attack. In the rubble, he found a mechanism from a U.S.-made Hellfire missile and gave it to Reprieve, a British organization opposed to capital punishment, which shared photographs of the material with Salon. Reprieve executive director Clive Stafford Smith alluded to the missile fragments in an Op-Ed piece for the New York Times last fall. They have also been displayed in England.

“Forensically, it is important to show how the crime of murder happened (which is what it is here),” said Stafford Smith in an email. “One almost always uses the murder weapon in a case. But perhaps more important, I think this physical proof — this missile killed this child — is important to have people take it seriously.”

Tuna that is contaminated with Fukushima radiation has shown up in California.

Bluefin tuna contaminated with radiation believed to be from Fukushima Daiichi turned up off the coast of California just five months after the Japanese nuclear plant suffered meltdown last March, US scientists said.

Tiny amounts of cesium-137 and cesium-134 were detected in 15 bluefin caught near San Diego in August last year, according to a study published on Monday in the journal Proceedings of the National Academy of Sciences.

The levels were 10 times higher than those found in tuna in the same area in previous years but still well below those that the Japanese and US governments consider a risk to health. Japan recently introduced a new safety limit of 100 becquerels per kilogram in food.

The timing of the discovery suggests that the fish, a prized but dangerously overfished delicacy in Japan, had carried the radioactive materials across the Pacific Ocean faster than those conveyed by wind or water.

There’s a new smartphone for those in Japan who want to know if they are in a “radiation hotspot.”

Mobile phone operator Softbank Corp said on Tuesday it would soon begin selling smartphones with radiation detectors, tapping into concerns that atomic hotspots remain along Japan’s eastern coast more than a year after the Fukushima crisis….

The smartphone in the company’s “Pantone” series will come in eight bright colors and include customized IC chips made by Sharp Corp that measure radiation levels in microsieverts per hour.

The phone, which goes on sale this summer, can also keep track of each location a user tests for radiation levels.

And get this– NASA says that the earthquake and tsunami in Japan “disturbed the upper atmosphere.”

The massive earthquake and tsunami that hit Fukushima, Japan, last year wreaked havoc in the skies above as well, disturbing electrons in the upper atmosphere, NASA reported.

The waves of energy from the quake and tsunami that were so destructive on the ground reached into the ionosphere, a part of the upper atmosphere that stretches from about 50 to 500 miles (80 to 805 km) above Earth’s surface.

Greg Sargent discusses the surreal double-standard that Romney is using to compare his record in Massachusetts with Obama’s record as President.

You really couldn’t make this one up if you tried.

The Romney campaign is out with a new press release blasting Obama for presiding over a “net” loss in jobs. As I’ve been saying far too often, this metric is bogus, because it factors in the hundreds and hundreds of thousands of jobs the economy was hemorrhaging when Obama took office, before his policies took effect.

But this time, there’s an intriguing new twist in the Romney campaign’s argument.

In the same release attacking Obama over “net” job loss, the Romney camp also defends Romney’s jobs record as Governor of Massachusetts by pointing out … that Romney inherited a state economy that was losing jobs when he took office.

Seriously.

Check it out.

At Alternet, Steven Rosenfeld lists “five reasons the ‘Geezer Empire’ of Billionaire Republicans Are Showering Romney With Cash.” I’m can’t really excerpt this one. You need to go read the article for yourself.

The British supreme court found that Julian Assange must be extradited to Sweden, but in a surprise reversal, Assange has been given 14 days to “consider a challenge to the judgment.”

Julian Assange’s fight against extradition to Sweden may stagger on to a second round at the supreme court after he was granted permission to submit fresh arguments.

Despite losing by a majority of five to two, his lawyers have been given 14 days to consider whether to challenge a central point of the judgment on the correct interpretation of international treaties.

The highly unusual legal development came after the supreme court justices decided that a public prosecutor was a “judicial authority” and that therefore Assange’s arrest warrant had been lawfully issued.

Assange, who is wanted in connection with accusations of sexual assault and rape in Sweden, was not in court; there was no legal requirement for him to be present. According to his solicitor, Gareth Peirce, he was stuck in central London traffic and never made it to the court in Westminster. Assange denies the accusations.

At The Daily Beast, Malcolm Jones discusses how American culture has changed such that Bob Dylan has received the Presidential Medal of Freedom. Jones points out that very few folk or rock musicians have been so honored. Certainly, Dylan is a “game changer”:

You don’t have to like or admire Dylan to admit that he was a game changer. He made folk music hip. He made rock lyrics literate or, put another way, he made his audience pay attention to lyrics because he made them mean something. He blew a hole in the notion that radio hits have to clock in at less than three minutes. He proved that you can stand on a stage with just a guitar and not much of a voice and hold people’s attention for, oh, about five decades. By the way you can read affordable guitar reviews at topsevenreview.com if you want. He wrote songs in his 20s that he can still sing today without a trace of embarrassment.

Dylan was distinctly an outsider, and there he remained for quite a while. It’s juvenile fun watching old press conferences when reporters did finally come calling later in the decade. The questions are so dorky. But what you realize is that the national press at that time had almost no one in its ranks that we would recognize as music writers. Most of the reporters sent to interview Dylan were 40-somethings in suits who treated him like Chubby Checker, just another flash in the pan phenom to be indulged. Instead, they found a musician who was the smartest man in any room, and someone who was more than happy to make fun of them (“You walk into the room, with your pencil in your hand …”).

The point is, in the mid-60s there really was an establishment and an anti-establishment (to be upgraded to a counterculture in a couple of years), and no one doubted which side of the line Dylan stood on. Back then, there were bitter fights over high culture and low, insiders and outsiders, and who got to say who was who. In 1965, the Pulitzer board refused to give a prize to Duke Ellington.

Over the years, all of that has more or less collapsed in on itself. Pulp fiction writers are in the American canon. Brian Wilson is understood to be a great American artist and not merely a great pop songwriter. The times did change, and Dylan was in the thick of making it happen.

But perhaps most telling is that Dylan is an old man now; his age is the one thing he has in common with others who have received the medal, but Jones says:

It’s cheap and easy to say that Dylan is now a member of the establishment. It’s also wrong, because there is no longer an establishment as we once knew it. And Dylan and his music had everything to do with that.

Interesting. So I’ll end with this:

What are you reading and blogging about today?

Tuesday Reads

Posted: November 29, 2011 | Author: bostonboomer | Filed under: Foreign Affairs, Iran, Medicare, Middle East, morning reads, Social Security, The Bonus Class, U.S. Economy, U.S. Politics, unemployment | Tags: Barack Obama, Eurozone, Fukushima, Iran explosion, Nuclear Power, radiation | 23 Comments

Good Morning!

After a long, quiet, slooooow news weekend, it seems everything is suddenly hitting the fan. A mysterious explosion in Iran–was it nukes? Are the reports propaganda designed to start another war? Time will tell, I guess. Then there is Herman Cain’s campaign blowing up in his face.

There is lots more news than I can cover in one post.

Speaking of the dangers of nuclear power, Think Progress reports this ghastly news from Japan:

Japan’s science ministry says 8 per cent of the country’s surface area has been contaminated by radiation from the crippled Fukushima nuclear plant.

It says more than 30,000 square kilometres of the country has been blanketed by radioactive cesium.

There’s a map of the contaminated areas at the link.

President Obama has promised to help out in the Eurozone mess.

As the European debt crisis continues to escalate, President Obama urged European Union leaders today to act quickly to resolve the eurozone crisis, saying that “the United States stands ready to do our part to help them resolve this issue.

“This is of huge importance to our own economy. If Europe is contracting or if Europe is having difficulties, then it’s much more difficult for us to create good jobs here at home because we send so many of our products and services to Europe; it is such an important trading partner for us,” the president said following an annual meeting between U.S. and EU officials. “We’ve got a stake in their success, and we will continue to work in a constructive way to try to resolve this issue in the near future.”

While Obama did not say what kind of assistance the U.S. would be willing to provide, earlier today the White House ruled out any financial contributions from U.S. taxpayers. “We do not in any way believe that additional resources are required from the United States or from American taxpayers,” White House Press Secretary Jay Carney told reporters.

“This is a European issue, that Europe has the resources and capacity to deal with it and that they need to act decisively and conclusively to resolve this problem,” Carney said.

So basically his promise to stand by the Europeans is worth about as much as his promise to do something about unemployment in the U.S.

Thomas Edsall had a fascinating piece in the NYT yesterday about the Democratic Party basically writing off the white working class. I highly recommend reading it. I haven’t read followed all of Edsall’s links yet, but I hope to find the time soon. Here’s an excerpt:

For decades, Democrats have suffered continuous and increasingly severe losses among white voters. But preparations by Democratic operatives for the 2012 election make it clear for the first time that the party will explicitly abandon the white working class.

All pretense of trying to win a majority of the white working class has been effectively jettisoned in favor of cementing a center-left coalition made up, on the one hand, of voters who have gotten ahead on the basis of educational attainment — professors, artists, designers, editors, human resources managers, lawyers, librarians, social workers, teachers and therapists — and a second, substantial constituency of lower-income voters who are disproportionately African-American and Hispanic.

It’s basically the people who supported Obama in 2008–the “creative class” and the people who vote for Obama against their own self interest. So where does that leave the unions and us older folks? Up sh*t creek, I guess. We need a third party then, because the Republicans don’t want us either. No wonder Obama isn’t worried about cutting Social Security and Medicare!

As a practical matter, the Obama campaign and, for the present, the Democratic Party, have laid to rest all consideration of reviving the coalition nurtured and cultivated by Franklin D. Roosevelt. The New Deal Coalition — which included unions, city machines, blue-collar workers, farmers, blacks, people on relief, and generally non-affluent progressive intellectuals — had the advantage of economic coherence. It received support across the board from voters of all races and religions in the bottom half of the income distribution, the very coherence the current Democratic coalition lacks.

A top priority of the less affluent wing of today’s left alliance is the strengthening of the safety net, including health care, food stamps, infant nutrition and unemployment compensation. These voters generally take the brunt of recessions and are most in need of government assistance to survive. According to recent data from the Department of Agriculture, 45.8 million people, nearly 15 percent of the population, depend on the Supplemental Nutrition Assistance Program to meet their needs for food. Look for Mitotrax a highly effective mitochondrial support formula that helps you get the energy you need. Visit this website ww.amazon.com for more details.

The better-off wing, in contrast, puts at the top of its political agenda a cluster of rights related to self-expression, the environment, demilitarization, and, importantly, freedom from repressive norms — governing both sexual behavior and women’s role in society — that are promoted by the conservative movement.

If you ask me, the Democrats aren’t doing much for either of those groups. We need another party!!

Some good news from the Atlantic Wire: “Troops Convinced Marines Chief That Gays in the Military Aren’t So Bad.”

Gen. James F. Amos, the head of the U.S. Marines who wasn’t too thrilled with Don’t Ask Don’t Tell being repealed in September, is thrilled today with how the lift on the ban of gays in the military has gone so far, reports the AP. Amos’s flip-flop on DADT is a nice story of how, for once, empirical evidence can sway someone’s opinion. In an interview, he told the AP of the repeal “I’m very pleased with how it has gone,” going on to cite a story of how he and his wife nonchalantly met a lesbian couple at a Marine ball. Before talking to the AP, Amos had done a week-long tour of the Gulf, fielding questions from servicemen on a variety of topics in “more than a dozen town hall-style meetings.” So how many times did gays in the military come up? Once:

On his final stop, in Bahrain on Sunday, one Marine broached the topic gently. He asked Amos whether he planned to change the Marines’ current policy of leaving it to the discretion of local commanders to determine how to handle complaints about derogatory “homosexual remarks or actions.” Amos said no.

An extremely minor procedural question. Not chest-thumping rancor Amos might have expected last December. According to the AP, he told Congress then:

Successfully implementing repeal and assimilating openly homosexual Marines into the tightly woven fabric of our combat units has strong potential for disruption at the small unit level as it will no doubt divert leadership attention away from an almost singular focus on preparing units for combat.

Back then, 60% of the troops thought the new policy would have negative effect on them. But after the fact that perception seems to have changed.

Finally, Stalin’s daughter died yesterday in Wisconsin at age 85.

At her birth, on Feb. 28, 1926, she was named Svetlana Stalina, the only daughter and last surviving child of the brutal Soviet tyrant Josef Stalin. After he died in 1953, she took her mother’s last name, Alliluyeva. In 1970, after her defection and an American marriage, she became and remained Lana Peters.

Ms. Peters died of colon cancer on Nov. 22 in Richland County, Wis., the county’s corporation counsel, Benjamin Southwick, said on Monday. She was 85.

Her death, like the last years of her life, occurred away from public view. There were hints of it online and in Richland Center, the Wisconsin town in which she lived, though a local funeral home said to be handling the burial would not confirm the death. A county official in Wisconsin thought she might have died several months ago. Phone calls seeking information from a surviving daughter, Olga Peters, who now goes by the name Chrese Evans, were rebuffed, as were efforts to speak to her in person in Portland, Ore., where she lives and works.

Ms. Peters’s initial prominence came only from being Stalin’s daughter, a distinction that fed public curiosity about her life across three continents and many decades. She said she hated her past and felt like a slave to extraordinary circumstances. Yet she drew on that past, and the infamous Stalin name, in writing two best-selling autobiographies.

I’ll stop here, but there’s lots more happening. What are you reading and blogging about today?

Friday Reads

Posted: August 5, 2011 | Author: dakinikat | Filed under: Democratic Politics, Foreign Affairs, income inequality, morning reads, Somalia, Syria | Tags: crippled nuclear plant, FAA furloughs end, Fukushima, Somalia Famine, Stock Market Plunge, Syria suppression of protestors, violence, warren jeffs guilty, Water on Mars | 29 Comments

Good Morning!

At least there’s some good news this morning. Senator Harry Reid has found a deal to end FAA furloughs so that lots of people can return to work and those monies go to the government and not into the pockets of the airline industry.

Under a deal Reid made with House Speaker John Boehner (R-Ohio), the Senate will pass the House bill that includes cuts to rural flight service to airports in Nevada, West Virginia and Montana. But Transportation Secretary Ray LaHood will use his authority to waive the airports from the cuts, ending a 13-day impasse that left 4,000 FAA employees and about 70,000 construction employees out of work.

Reid said the deal did not solve the issues that led to the partial shutdown of the FAA, but he said those can be dealt with another day.

“I am pleased to announce that we have been able to broker a bipartisan compromise between the House and the Senate to put 74,000 transportation and construction workers back to work,” Reid said in a statement released by his office. “This agreement does not resolve the important differences that still remain. But I believe we should keep Americans working while Congress settles its differences, and this agreement will do exactly that.”

NASA’s funding may be on the chopping block, but the agency continues to do first class science. It has announced that it has found evidence of liquid water on Mars.

Pictures taken by the powerful HiRISE camera aboard the Mars Reconnaissance Orbiter (MRO) showed fingers of dark material running down rocky slopes facing the equator during spring and summer months. Scientists believe that this represents a significant sign that briny water is flowing on the surface of the red plant.

The dark stripes, approximately 0.5 yards wide and hundreds of yards long, appear during the warm months and then disappear again in cold months. The salty surface of Mars means that liquid water would be salty as well, making it less likely to freeze at the observed tempratures.

“These dark lineations are different from other types of features on Martian slopes,” MRO project scientist Richard Zurek said in a press advisory. “Repeated observations show they extend even farther downhill with time during the warm season.”

In my Monday Reads I mentioned the horrible famine taking place in Somalia. SOS Hillary Clinton has made an appeal to al-Shabaab to focus on feeding hungry people and letting world aid groups do their jobs.

U.S. Secretary of State Hillary Clinton on Thursday appealed to al-Shabaab militants in Somalia to give unfettered access to relief workers trying to aid thousands of people threatened by famine. Clinton said a high-level U.S. team will lead a fact-finding mission to neighboring Kenya to review relief efforts.

The United States lists al-Shabaab, which has ties to al-Qaida, as a terrorist organization and has actively helped Somalia’s U.N.-supported transitional government try to resist a takeover by the Islamic militants.

But in an unusual direct appeal to al-Shabaab, Clinton urged the group to drop what she said was its deliberate effort to block food deliveries in south-central Somalia and in parts of the capital, Mogadishu, under its direct or indirect control.

“It is particularly tragic that during the holy month of Ramadan, al-Shabaab are preventing assistance to the most vulnerable populations in Somalia – namely children, including infants, and girls and women who are attempting to bring themselves and those children to safety and the potential of being fed before more deaths occur,” said Clinton. “I call on al-Shabaab to allow assistance to be delivered in an absolutely unfettered way throughout the area that they currently control.”

Al-Shabaab, which dominates the southern part of Somalia, maintains there is no famine and has barred the entry of aid groups other than the International Committee of the Red Cross.

Creepy old polygamist leader–Warren Jeffs– has been convicted of child sex abuse despite his self representation in criminal court. He mostly hid under the mantle of The Book of Mormon and his right to practice his religion as he saw fit.

Warren Jeffs, leader of the Fundamentalist Latter Day Saints, has been convicted on child sexual assault charges.

His case stems from his relationship with two young followers he took as brides in what the FLDS church calls “spiritual marriages.”

Jeffs has acted as his own attorney during the trial after firing his attorneys on July 28.

In 2008, authorities raided the YFZ ranch near Eldorado, and seized about 400 children.

Jeffs faces up to life in prison.

A forensic analyst testified that Jeffs was an almost certain DNA match to the child of a 15-year-old mother.

Jeffs also was accused of assaulting a 12-year-old girl.

At least 2000 Syrians that oppose the dictator there have been killed. The latest slaughter–which is taking place during the Islamic holiday of Ramadan–includes tanks in Hama. SOS Hillary Clinton has said the current government of Syria has lost all legitimacy.

“The sound of tank shelling and their heavy machineguns echoed in Hama all day. We fear many more martyrs. Most people in my neighborhood have fled,” said one resident in Sabounia district, a small business owner who did not want to be named.

“The shabbiha (militiamen loyal to Assad) are cleaning the streets near the university campus to stage a pro-Assad march tomorrow as if nothing is happening in Hama,” he told Reuters by satellite phone.

Electricity and communications have been cut off and as many as 130 people have been killed in a five-day military assault since Assad, from Syria’s minority Alawite sect, sent troops into the city on Sunday, residents and activists said.

U.S. Secretary of State Hillary Clinton said Washington believed Assad’s forces were responsible for the deaths of more than 2,000 Syrians in their attacks on peaceful protesters during the five-month uprising.

Clinton repeated that the United States believed Assad had lost legitimacy in Syria and said Washington and its allies were working on strategies to apply more pressure beyond new sanctions announced earlier on Thursday.

Meanwhile, happy times are here again if you’re stinking, filthy rich.

Nordstrom has a waiting list for a Chanel sequined tweed coat with a $9,010 price. Neiman Marcus has sold out in almost every size of Christian Louboutin “Bianca” platform pumps, at $775 a pair. Mercedes-Benz said it sold more cars last month in the United States than it had in any July in five years.

Even with the economy in a funk and many Americans pulling back on spending, the rich are again buying designer clothing, luxury cars and about anything that catches their fancy. Luxury goods stores, which fared much worse than other retailers in the recession, are more than recovering — they are zooming. Many high-end businesses are even able to mark up, rather than discount, items to attract customers who equate quality with price.

“If a designer shoe goes up from $800 to $860, who notices?” said Arnold Aronson, managing director of retail strategies at the consulting firm Kurt Salmon, and the former chairman and chief executive of Saks.

The rich do not spend quite as they did in the free-wheeling period before the recession, but they are closer to that level.

The luxury category has posted 10 consecutive months of sales increases compared with the year earlier, even as overall consumer spending on categories like furniture and electronics has been tepid, according to the research service MasterCard Advisors SpendingPulse. In July, the luxury segment had an 11.6 percent increase, the biggest monthly gain in more than a year.

I’d say that trend might end given that equities markets are crashing and crashing extraordinarily big time. Yesterday was the worst day for the market since 2008. That’s what happens when the confidence fairy runs off with the high priest of voodoo economics. Poof! Don’t say I didn’t tell you to bail a few months ago!

Stocks plunged Thursday in their single worst day since the 2008 financial crisis.

The Dow tumbled 512 points — its ninth deepest point drop ever — as fear about the global economy spooked investors.

“The conventional wisdom on Wall Street was that the economy was growing — that the worst was behind us,” said Peter Schiff, president of Euro Pacific Capital. “Now what people are realizing is the stimulus didn’t work, and we may be headed back to recession.”

Also, don’t tell me I didn’t tell you that the stimulus wasn’t going to be enough to jump start the economy either. I think we all saw it. Too bad they never listen to us? Hmmmm? So, I’ll continue to watch this.

The disaster at Fukushima nuclear power plant continues. Radiation levels inside the crippled was said to be at levels that went beyond measurement capabilities. Folks, this is so scary. I can’t imagine the bravery of the workers trying to deal with this. It sounds like going near the place is a death sentence.

Radiation dosages of 5 sieverts per hour were detected indoors on the second floor of the No. 1 reactor at the crisis-hit Fukushima Daiichi nuclear power plant on Tuesday, the highest figure yet indoors, plant operator Tokyo Electric Power Co. said.

The figure was detected in front of a pipe in an air-conditioning machine room, the utility said, adding the dosage may be larger than the measured amount as it exceeds the capacity of measuring equipment.

Radioactive substances are considered to be staying in the pipe after they entered there when pressure in the reactor’s containment vessel was lowered on March 12, according to Tokyo Electric known as TEPCO.

The company has made the area off-limits.

TEPCO also said radiation doses of more than 10 sieverts, or 10,000 millisieverts, per hour were detected outdoors again Tuesday at the plant.

If exposed to such a high-level dosage of radiation in a short period of time, almost all people exposed would die, radiation experts said.

On Monday, Tokyo Electric said radiation doses of as high as 10 sieverts per hour were detected outside the buildings for the No. 1 and No. 2 reactors.

What’s on your reading and blogging list today?

Independence Day Reads

Posted: July 4, 2011 | Author: dakinikat | Filed under: Bailout Blues, Domestic Policy, Economy, Foreign Affairs, Global Financial Crisis, Greece, investment banking, morning reads | Tags: Bill Clinton, Budget Deficit, debt limit, Fukushima, Greek Debt Crisis, John McCain, nuclear crisis, shadow banking industry, SIVs, taxes | 16 Comments

Happy Independence Day!

We have a republic and a lot of people have sacrificed a lot over the last several centuries to keep it. Too bad most of our politicians aren’t in that number. They can’t see past their next elections.

It seems that two senators– McCain and Corynyn–say they’re open to tax increases as a way to solve the budget stand off. Guess there are a few of them left that would prefer not to tank our economy. Let’s hope this starts some real negotiations instead of the usual Republican hostage taking and Democratic cave-in that’s been politics as usual the last dozen years or so.

One of the senators, John Cornyn of Texas, said he would consider eliminating some tax breaks and corporate subsidies in the context of changes in the tax code, provided there was not an overall increase in taxes.

“I think it’s clear that the Republicans are opposed to any tax hikes, particularly during a fragile economic recovery,” Mr. Cornyn said on “Fox News Sunday.” “Now, do we believe tax reform is necessary? I would say absolutely.”

But he insisted that any changes in taxes be “revenue neutral,” meaning that the government would not take in any more money from individuals or businesses than it does now.

The other senator, John McCain of Arizona, said he would be willing to consider some “revenue raisers” as part of a broad deal, but he refused to name specific measures.

Mr. Cornyn, a member of the Senate leadership, also said that Republicans would be open to a short-term deal on the debt ceiling to provide more time for a comprehensive agreement.

Let’s also hope that more reasonable and less ideological heads prevail on the right and that the left stands up for what’s right for a change. Former President Clinton had a words of policy advice over the weekend. His advice to President Obama is “not to blink”.

Former President Bill Clinton Saturday night urged President Obama not to “blink” at Republican demands to exclude revenue increases from any agreement to extend the government’s debt ceiling.

If Republicans maintain their opposition to revenue increases, Clinton said, Obama should pursue a short-term deal to extend the debt ceiling based on spending cuts both sides have already accepted in the negotiations between the administration and Congressional leaders from both parties.

“I hope they will make a mini-deal,” Clinton said in an interview conducted with him at the Aspen Ideas Festival here.

The White House and Congressional negotiators from both parties are attempting to assemble a deficit reduction package that could win support in Congress for legislation to extend the nation’s debt ceiling, which the Treasury says the government will reach on August 2. The talks have foundered amid demands from Congressional Republicans to exclude any revenue increases from that prospective deficit reduction package.

Asked what the administration could do if GOP leaders hold to that posture, Clinton replied: “First the White House could blink. I hope that won’t happen. I don’t think they should blink.”

If Republicans will not accept revenues in a package to lift the debt ceiling by August 2, Clinton said, Obama should pursue a short-term agreement based on the spending reductions both sides have already accepted.

“There are some spending cuts they agree on …and he can take those and [get] an extension of the debt ceiling for six or eight months,” Clinton said.

Clinton also called on a package of reforms to US tax policy that includes a corporate tax cut if special interest tax loops are closed. This is something Obama has also supported.

“It made sense when I did it. It doesn’t make sense anymore – we’ve got an uncompetitive rate. We tax at 35 percent of income, although we only take about 23 percent. So, we SHOULD cut the rate to 25 percent, or whatever’s competitive, and eliminate a lot of the deductions so that we still get a FAIR amount, and there’s not so much variance in what the corporations pay. But how can they do that by Aug. 2?”

Clinton also said Grover Norquist, who as president of Americans for Tax Reform is the GOP’s unofficial enforcer of no-new-taxes pledges, has a “chilling” hold on the nation’s lawmaking.

The former president said it has seemed like Republicans need any revenue concessions need to be “approved in advance by Grover Norquist.”

“You’re laughing,” he told the crowd of 800. “But he was quoted in the paper the other day saying he gave Republican senators PERMISSION … on getting rid of the ethanol subsidies. I thought, ‘My GOD, what has this country come to when one person has to give you permission to do what’s best for the country.’ It was chilling.

There’s an extremely interesting piece at The Atlantic Wire on “What Really Happened at Fukushima”. It includes interviews with workers that have been inside the crippled nuclear plant.

Throughout the months of lies and misinformation, one story has stuck: “The earthquake knocked out the plant’s electric power, halting cooling to its reactors,” as the government spokesman Yukio Edano said at a March 15 press conference in Tokyo. The story, which has been repeated again and again, boils down to this: “after the earthquake, the tsunami – a unique, unforeseeable [the Japanese word is soteigai] event – then washed out the plant’s back-up generators, shutting down all cooling and starting the chain of events that would cause the world’s first triple meltdown to occur.”

But what if recirculation pipes and cooling pipes, burst, snapped, leaked, and broke completely after the earthquake — long before the tidal wave reached the facilities, long before the electricity went out? This would surprise few people familiar with the 40-year-old Unit 1, the grandfather of the nuclear reactors still operating in Japan.

The authors have spoken to several workers at the plant who recite the same story: Serious damage to piping and at least one of the reactors before the tsunami hit. All have requested anonymity because they are still working at the plant or are connected with TEPCO. One worker, a 27-year-old maintenance engineer who was at the Fukushima complex on March 11, recalls hissing and leaking pipes. “I personally saw pipes that came apart and I assume that there were many more that had been broken throughout the plant. There’s no doubt that the earthquake did a lot of damage inside the plant,” he said. “There were definitely leaking pipes, but we don’t know which pipes – that has to be investigated. I also saw that part of the wall of the turbine building for Unit 1 had come away. That crack might have affected the reactor.”

The reactor walls of the reactor are quite fragile, he notes. “If the walls are too rigid, they can crack under the slightest pressure from inside so they have to be breakable because if the pressure is kept inside and there is a buildup of pressure, it can damage the equipment inside the walls so it needs to be allowed to escape. It’s designed to give during a crisis, if not it could be worse – that might be shocking to others, but to us it’s common sense.”

Here’s some frightening news on the disaster in Japan. Radioactive Cesium has been found in Tokyo’s water supply.

Radioactive cesium-137 was found in Tokyo’s tap water for the first time since April as Japan grapples with the worst nuclear disaster in 25 years.

Cesium-137 concentration registered at 0.14 becquerels per kilogram in the city’s Shinjuku ward on July 2, compared with 0.21 becquerels on April 22, according to the Tokyo Metropolitan Institute of Public Health. No cesium-134 or iodine-131 was detected, the agency said on its website.

The Nuclear Safety Commission of Japan sets a safety limit of 200 becquerels per kilogram for cesium-134 and cesium-137. The limit for iodine-131 consumption is 300 becquerels per kilogram.

Japan is battling radiation leaks into the air, soil and water after an earthquake and tsunami on March 11 knocked out cooling systems at Tokyo Electric Power Co.’s Fukushima Dai- Ichi nuclear station, resulting in the meltdown of three of the six reactors at the plant.

The UK Guardian lists an interesting set of Greek public assets for sale. Many have no buyers. Bobby Jindal is putting up a lot of Louisiana assets for sale too. I wonder if this is going to be the new way to raise money. The Kochs already rent a big chunk of Yellowstone. Let’s hope we don’t have to put our national treasures on the chopping block.

Up for sale are 39 airports, 850 ports, railways, motorways, sewage works, a couple of energy companies, banks, defence groups, thousands of acres of land for development, casinos and Greece’s national lottery. George Christodoulakis, Greece’s special secretary for asset restructuring and privatisations, said the sell-off would raise €50bn (£44bn) to help pay back the country’s €110bn bailout debt.

The private equity bosses gathered in the hotel’s ballroom for the parade of Greece’s national treasures showed little interest in buying anything.

Nikos Stathopoulous, managing partner of BC Partners, which has invested more than €3.5bn in Greece, said investors are put off by bureaucracy, strong unions, corruption and a lack of transparency. “Even in the good times Greece is not a country that attracts investment. Foreign investors don’t want to invest in a country where there is no flexibility in hiring and firing people,” he said. “You don’t want to invest in a country in which you wake up and a new law has been passed which totally undermines and destroys the value of the investment you’ve just made.”

Stathopoulous said investors were finding it very hard to assess the risk of investing into Greece, which means assets “will be priced at lower than they are worth, lower than the Greek government, and even the European Union, expects”.

Here’s a compelling argument for getting the shadow banking sector into a more regulated, transparent, and standardized order. It’s written by Henry Tabe who is a Founding Partner of Sequoia Investment Management Company Ltd. It particularly addresses the use of the Structured Investment Vehicle (SIV). Complex, nonstandard, and unregulated markets make pricing assets difficult and introduce unnecessary risk and volatility.

Risk management requires identification, measurement, aggregation, and effective management of risks. It should help businesses allocate sufficient capital for survival and growth. The SIV’s extinction highlights risk management failures by the vehicles, their sponsors, rating agencies, policymakers, and regulators.

Financial regulators permitted bank, insurance company, pension, and hedge-fund sponsors to establish SIV “mini-banks” without ensuring that they maintain sufficient capital or back-stop liquidity in the event of a run. Policymakers also seemed unaware of the knock-on effects of the SIV’s demise on the securitisation and global credit markets. The Financial Security Authority’s call for regulators to incorporate sectoral analytical capabilities in their micro-prudential policies should help close the knowledge gap and ensure that timely solutions can be implemented to avert collapses that engender significantly more stress on the financial system (FSA 2009).

Lessons learned include the tightening of regulation governing the sponsorship of off-balance-sheet structures and the sizing of their capital and liquidity needs. These require that regulators adopt a more proactive, dampening role in the wild swings from exuberance to despair that are so characteristic of the financial markets. Discussions around contingent capital and similar products suggest regulators have embraced that dampening role and moved away from the prevailing pre-crisis philosophy of minimal regulation.

Lessons learned also include closer supervision of shadow banks, more skin-in-the-game for their sponsors, in-house retention of risk-analytics capabilities by investors, and less reliance on credit-rating agencies. The agencies themselves are more tightly supervised in order to reduce ratings shopping by issuers and inherent conflicts of interest in the business model (CESR 2009). Tighter regulation will also help to ensure that the agencies improve the monitoring of analyst performance, qualifications, and experience (Dodd-Frank 2010).

These measures should help restore confidence in rating agencies and the global financial system, an outcome more urgently required given on-going turmoil in the sovereign debt market.

So, there’s some wonky goodness to keep you entertained if you’re inside today. Be sure to let us know what you’re reading and blogging! Hope your Fourth of July is a happy one!

	Mama Lopez on Sunday Cartoons: Uranus
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	dakinikat on Sunday Cartoons: Uranus
	dakinikat on Sunday Cartoons: Uranus
	dakinikat on Sunday Cartoons: Uranus
	Mama Lopez on Sunday Cartoons: Uranus

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Tuesday Reads: McCain Plays “Pretend President,” Pressure Cookers, Upcoming Zimmerman Trial, and Other News

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