Archive for July, 2009

Friday July 31, 2009 – “Observe your enemies, for they first find out your faults.” – Antisthenes

Friday, July 31st, 2009

Health Care in Crisis Part 2 of 5: Needless Costs, Needless Deaths

Viewpoint July 27, 2009

Too many Americans believe modern medicine will prolong their lives when the only thing that is guaranteed is high medical bills

By Ed Wallace

Editor’s Note: This is Part Two of a five-part series on the health-care crisis.

Sandra Bogan and Southwest Airlines (LUV) have enjoyed a long business association. On the airline’s first day of operation in 1971 she served passengers as a flight attendant—and still does: Bogan holds the distinction of being Southwest Flight Attendant No. 1. She was divorced with three children to raise when she met and married soul mate Tom Bogan, a soft drink executive, in the late 1970s. Although Sandra continues to fly, Tom retired to enjoy an active life with their children and grandchildren. As Sandra recalls, Tom was always on the go; even at 82 he gladly hauled the grandkids around to their activities, fully enjoying retirement.

Until March, that is, when he was diagnosed with diabetes—and soon after, with renal failure. In his youth, Tom smoked and drank, but Sandra had terminated those habits 31 years earlier, when they married. In the spring, Tom was set up to perform home dialysis but, as stepson Lance Anderson said: “The decline in his health was unbelievably quick.”

Doctors said Tom Bogan’s best hope to recover any sort of normal life would be a quadruple bypass to unblock his arteries. Without the operation, they warned, he was within months of the end. Fully informed of the risks entailed by his other medical problems, Tom agreed to the operation.

It was performed at Baylor Medical Center in Grapevine, Tex. But while the operation was deemed a success, Tom picked up an infection in the hospital and passed away eight days later. The bills totaled $183,679. In spite of the tragic outcome, Sandra Bogan has nothing but praise for the hospital, the cardiologist, and UnitedHealthcare (UNH).

Near-Absolute Faith in Medicine

Mike Russell’s eclectic life once included owning the Kansas City Business Journal, but he is best known as the creator of the Book of Lists, a business directory sold by many business journals across the U.S. He and business partner Dan Carney, one of the founders of Pizza Hut—now owned by Yum! Brands (YUM)—purchased and operated KGBS 1190 in Dallas until 1995, when they sold the station to Salem Broadcasting. Russell pursued other publishing ventures until earlier this year, when he found himself struggling to catch his breath. Tests showed he needed an aortic valve replacement.

Russell agreed to the operation, assuring his wife and business associates that it was nothing to worry about—a commonplace and routine operation. But something went terribly wrong during the operation that Friday in Kansas City. Two days later, Mike Russell was gone at the age of 69.

Venie Biggers, 73, was a housewife in North Richland Hills, Tex. Husband Bill was an air conditioning repairman. Venie was unique: She had never smoked in her life, nor even had an alcoholic drink, tea, or coffee. Despite this almost Puritanical regimen, Biggers six years ago was diagnosed with cirrhosis of the liver. Although it cannot be medically proven, her husband believes the problem started back in the 1970s, when Venie was treated for rheumatoid arthritis with injections of gold sodium thiomalate. That treatment is no longer used—possibly because one of the listed side effects of gold injections is liver dysfunction.

Operating with Poor Odds for Comfort

Like Russell, Biggers had started complaining of a lack of energy a few years ago. Although it could have been a symptom of her cirrhosis, her doctors found problems with her aortic valve and recommended its replacement. In June of 2007 she entered Medical City Dallas, but complications followed primary surgery. A second operation was quickly performed to correct leakage around the graft site, but Biggers’ blood ammonia levels spiked and then she suffered several minor strokes. Needless to say, the prognosis was poor. So when neurosurgeons suggested further operations to correct the secondary damage, Bill Biggers made the hardest decision of his married life and said no to the operation. Venie Biggers lapsed into a coma and passed away six weeks later. The bills came in at $854,000.

At first blush one might reasonably question why heart operations would even be attempted on individuals of an advanced age with other serious medical problems. Most would assume that even if the primary operation had been successful, the individual’s other medical issues could bring into question whether they could recover sufficient health to lead a relatively normal, comfortable life.

It might be a mere cost-benefit equation to most people. But when the families tell their stories, one hears the sadness that fills their voices when they speak of the moment that they lost hope that their loved ones could be healed. For these survivors, it was a near-absolute faith in modern medicine that led them to make decisions that ended in tragedy.

Heart Operations: Most “Are at Best Unnecessary”

It is operations such as these that have sent U.S. health-care costs soaring out of control, certainly when compared to those of other industrialized nations. Dr. Ralph Rashbaum, a renowned back specialist with the Texas Back Institute in Plano, frequently speaks on this issue. Rashbaum is a physician who believes surgery should always be the last resort to correct medical problems—often counter to what the public wants to believe. People are convinced that somehow the miracle of modern surgery can cure all ills.

Rashbaum also knows the other key reason why U.S. health-care costs are so outrageously high. Some 80% of all spending on health care goes to only 20% of the public—in the last two years of their lives. Representative Michael Burgess (R-Tex.), a physician, seemed to agree with Rashbaum’s analysis of the problematical costs for health care: “I hope we could use this opportunity to educate patients and families of risks before and after illnesses.”

As for the costs and risks involved in heart operations, Dr. Michael Ozner, author of The Great American Heart Hoax, lays out the problem: “More than 1.5 million Americans undergo angioplasties and coronary bypass surgeries annually in the U.S.” While in many cases these operations save the lives of the patients, he estimates that “70% to 90% of these procedures are at best unnecessary.”

Why does he say that? It’s been proven in numerous authoritative published studies that bypass operations and angioplasty have never been shown either to prolong life or prevent future heart attacks.

That hasn’t been made clear to the public. Americans undergo these operations seven times as often as patients in either Canada or Sweden. When Dr. Ozner lists possible fatal side effects of open-heart surgery, he includes those that took the lives of Bogan, Biggers, and Russell.

Cheaper Alternatives Can Work Better

How could this be such a problem? Dr. Ozner admits that these procedures do save many lives. But for many others, long-accepted medical treatments and lifestyle changes can be equally or more effective in facilitating a patient’s long-term recovery.

It’s partly due to our faulty memories that we can’t accept that not all medical procedures are necessary. We forget that 40 years ago many individuals suffered heart problems, or outright attacks. In the days before stents, bypasses, and angioplasty, the survivors were simply given medicines to alleviate or reverse the problems. My own father lived for 24 years after his heart attack in 1966 and was deemed healthy enough to be returned to flight status in the U.S. Air Force.

Today, America’s moral dilemma lies in the high price of trying to save the unsavable life. Some may cynically suggest that this is only because doctors and hospitals want to increase their incomes, but the vast majority of physicians are far more honorable and dedicated than that. In the three cases listed in this column, each patient was given the opportunity to turn down the operation and was fully informed of the potential risks. All chose to undergo the procedure.

Government Could Invite More Spending

Nor will federalized health care fix the issue of high costs. It will simply transfer them. It won’t correct the inherent financial waste in the system because we cause much of it. When it is our lives—or those of loved ones—on the line, most of us will demand increasingly expensive care, no matter how many studies and statistics show it likely will not be a long-term cure.

As mentioned in the first column of this series, our already broken health-care system will rapidly be devastated as nearly 80 million baby boomers head toward retirement. Aside from the incalculable misery that inadequate health care can cause, the greater danger is that we could divert so much into expanding expensive health care that we could ensure the U.S. economy’s destruction.

Our current standard is to try to save the unsavable at the end of their lives, but that is not the standard in other developed countries. Nor do they debate the consequent moral dilemma. This is likely the primary reason that U.S. health care is in such serious trouble.

Ed Wallace is a recipient of the the Gerald R. Loeb Award for business journalism, given by the G. and R. Loeb Foundation, and is a member of the American Historical Society. His column leads the Fort Worth Star-Telegram’s “Sunday Drive” section. He reviews new cars every Friday morning at 7:15 on Fox Four’s Good Day, contributes articles to BusinessWeek Online, and hosts the top-rated talk show Wheels Saturdays from 8 a.m. to 1 p.m. on 570 KLIF.

Complete article at:

Health Care in Crisis

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Medicare Anniversary

Wednesday, July 29, 2009

Thursday is the anniversary of Medicare’s enactment.

JOHN GEYMAN, jgeyman@u.washington.edu, (also via Mark Almberg, mark@pnhp.org),

http://www.pnhp.org/blog/author/johngeyman

Geyman is professor emeritus of family medicine at the University of Washington. He is past president of Physicians for a National Health Program and author of the book “Shredding the Social Contract: The Privatization of Medicare.”

He said today: “Medicare on its 44th birthday is remarkably successful. It’s the one solid rock we have in our disjointed healthcare system. It covers 43 million Americans age 65 and older as well as some 2 million disabled people. It is consistently rated more highly than private insurance in terms of reliability and quality of coverage. It provides a comprehensive set of benefits, free choice of providers and hospitals anywhere in the country, and simplified administration with an overhead of only 3 percent — versus administrative overhead and profit-taking five to nine times larger for private insurers.

“Medicare was passed in 1965 after a fierce political debate even more divisive than the one we’re having now. Those opposed to reform today are saying that a government program will get between you and your doctor. But traditional unprivatized Medicare shows that to be untrue — less bureaucracy than that of the private insurance industry, with its more than 1,300 insurers working hard to cherry pick the market for their maximal revenue by denying claims or even canceling coverage.

“Despite its successes, Medicare is not a perfect program. It would be even more successful were it not for political compromises along the way allowing it to be privatized. A good example is the Medicare legislation of 2003. The problem was soaring prices of prescription drugs. The result has been a bonanza for the drug and insurance industries. The new drug benefit was handed over to the private sector to manage, prices have continued up unabated, the government was prohibited from negotiating lower prices as the Veterans Administration does, and new subsidies were offered to private insurers for Medicare Advantage, private Medicare plans that seek out healthier Medicare beneficiaries.

“The same forces are at work today as healthcare reform proposals make their way through Congress. Under pressure from industry and their lobbyists, the public plan has been watered down to a small and ineffectual option at best, if it ever survives to being enacted. But the strengths of traditional Medicare as a system of social insurance, coupled with a private delivery system, remains a solid foundation upon which to build a better system in this country in terms of access, affordability, quality, efficiency and reliability.”

From: Institute for Public Accuracy

Shredding the Social Contract: The privatization of Medicare ~ John Geyman

Pat Bagley: … some gummint bureaucrat!!
(www.cagle.com)

Lloyd Dangle, Troubletown: … health care that sucks
(www.cagle.com)

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In error-laden Wash. Post op-ed, Feldstein falsely claims health care plan gives “no protection” to unemployed

In a July 28 Washington Post op-ed, Harvard University economics professor Martin Feldstein advanced several falsehoods, including his claim that President Obama’s health care reform plan provides “no protection if [Americans] lose their current insurance because of unemployment”; his suggestion that a 5.4 percent surtax would be added to everyone in the 35 percent marginal tax bracket; and his claim that Obama supports a British-style health care system in which “the government owns the hospitals and the doctors are salaried.”

Read More

error-laden

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BLS: Employee Benefits in the United States

News release, Employee Benefits in the United States – March 2009: “While about 70 percent of workers in private industry had access to employer provided medical care benefits in March 2009, only 25 percent of the lowest wage earner — those with average hourly wages in the lowest 10 percent of all private industry wages — had such access, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. By contrast, nearly all workers with hourly wages in the highest 10 percent of all private industry wages had access to medical care benefits. A worker with access to medical care benefits is defined as having an employer-provided medical plan available for use, regardless of the worker’s decision to enroll or participate in the plan. These data are from the National Compensation Survey (NCS), which provides comprehensive measures of occupation earnings, compensation cost trends, and incidence and provisions of employee benefit plans. Farm and private household workers, the self-employed, and Federal government workers are excluded from the survey.” for use, regardless of the worker’s decision to enroll or participate in the plan. These data are from the National Compensation Survey (NCS), which provides comprehensive measures of occupation earnings, compensation cost trends, and incidence and provisions of employee benefit plans. Farm and private household workers, the self-employed, and Federal government workers are excluded from the survey.”

Employee Benefits

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News Analysis July 29, 2009 Oil Prices: Gauging the Speculator Impact

With demand for fuel on the wane, why have prices gone up? Here are some answers about what may be influencing the price of oil

By Chris Kahn, Associated Press

While manufacturers shuttered factories and Americans cut way back on travel, oil prices surged a stunning 124% during a long stretch earlier this year. Gas prices followed, rising nearly a dollar a gallon, with price increases every day for almost two months.

What happened? Shouldn’t fuel get cheaper when there’s less demand for it?

The U.S. Commodity Futures Trading Commission (CFTC) hopes to get some answers this week as it starts a series of public hearings on oil trading. Government economists are suspicious of a flood of money from pension funds, hedge funds, and other speculative investments, though they can’t say for sure how much this affects energy prices.

Here are some questions and answers about who may be influencing oil prices, and why they’re so hard to track.

What is a speculator?

A speculator is loosely defined as anyone who invests in something simply to profit off fluctuations in its market value. With oil, speculators buy and sell contracts for oil barrels (to be delivered later) without any intention of using the oil.

The New York Mercantile Exchange is dominated by this kind of trading. Less than 1% of all futures trading results in someone actually receiving barrels of oil.

Who is a speculator?

They’re hardly the faceless poachers that Congress and trade groups made them out to be last year when oil prices spiked. The speculator could very well be you, and you don’t even know it. Pension funds, mutual funds, and hedge funds are all players in energy commodities.

One of those investors is the California Public Employees’ Retirement System (CalPERS), which provides retirement and health benefits to 1.6 million people.

CalPERS started dipping into energy commodities two years ago with $500 million in commodity investments. As the price of oil started rising in early 2007, CalPERS spokesman Brad W. Pacheco said: “The staff saw it as an opportunity.”

That initial investment increased by $100 million due to the rise in commodity prices.

Others can invest in oil through the stock market by buying shares in the United States Oil Fund (USO) and other exchange-traded funds. USO uses those funds to buy oil contracts, which are 1,000 barrels of oil each. The share price moves with the price of oil. Recently, money has been flowing into these funds at a blistering pace.

Market researcher Morningstar (MORN) estimates that since the beginning of the year, the amount of assets plowed into energy exchange-traded funds (ETFs) doubled to more than $8 billion.

What influence do speculators have on the price of oil?
CFTC Commissioner Bart Chilton said speculators may have helped oil prices soar above $147 a barrel last summer. That belief was fortified this spring when oil prices spiked again, this time with both declining demand and a glut of surplus crude in U.S. inventories.

“Something’s going on in these markets,” Chilton said. “Any high school civics class would tell you the price should be going down.”

But it’s nearly impossible to say how much speculators affect oil prices since the government doesn’t track them very closely.

“A lot of these trades are occurring in markets that we don’t regulate,” Chilton said.

Investors have been moving huge sums of money into oil and other commodities through over-the-counter trades. These are considered “dark” markets because the CFTC hasn’t been empowered to watch them. Anyone can agree to an oil contract on their own without listing it with any market.

The commission is expected to release a report on oil speculation next month. But the report, which has yet to be completed, will not calculate how much speculators are influencing oil prices, Chilton said.

“It’s unquantified to a large extent because we can’t see these markets,” he said.

The government does keep track of some speculative money. An analysis of those records by the Associated Press found speculators have bet consistently that oil prices would go higher since September 2003.

They were especially enthusiastic in the first seven months of 2007, a period in which oil prices went from about $60 to $80 a barrel. CFTC data showed that speculators held “long” positions—a bet that oil prices would rise—equivalent to 15 million barrels of oil in January 2007. By the end of July 2007, their overall holdings were equivalent to more than 170 million barrels.

Some economists say this kind of enthusiasm can boost oil prices the same way an influx of new buyers forced home prices higher a few years ago. But others aren’t so sure.

Francisco Blanch, a commodity strategist with Bank of America Merrill Lynch who has studied the role of speculation in energy, said investors tend to jump on a commodity after it already is starting to get more expensive.

“High prices cause people to invest in commodities,” Blanch said. “On the other hand, we haven’t found that higher investment causes higher prices.”

Why would any of this matter when I fill up my car?

While the jury is still out on the exact role speculators play in commodities markets, regulators and trade groups say their presence is certainly felt at the gas pump.

Speculators buy gasoline contracts, too. And trade groups say that petroleum refiners watch the swings in oil and gas contracts when setting their prices.

If the crude oil contract goes up by $1, “the wholesale prices for gasoline, diesel, and heating oil will most likely go up between 3¢ to 5¢ in five hours,” said Dan Gilligan, president of the Petroleum Marketers Association of America. “It happens that quick.”

A jump in wholesale prices may not immediately affect pump prices, but they eventually force gas station owners to raise their prices, too, Gilligan said. There was evidence of that this spring, when oil prices doubled from February to June. Retail gas prices followed, with the national average rising for 54 consecutive days, cresting at just above $2.69 a gallon on June 21.

Would regulation effectively rein in speculation in oil markets?
Probably not. Crude oil is traded around the world, and while the CFTC may be able to influence the benchmark contract here, it has no jurisdiction over markets in other countries.

British Prime Minister Gordon Brown and French President Nicolas Sarkozy addressed the issue earlier this month, calling for greater transparency and supervision in oil futures markets around the world.

If an international consensus isn’t reached, traders say speculators will simply move to the markets that allow them to continue to place aggressive bets on oil. And that will still affect U.S. gas prices, since most of the country’s petroleum is imported.

“If you start to restrict the market, it’s hard to see what that achieves,” said Morgan Downey, a commodities trader for Standard Chartered Bank (STAN.L). “I think the market is working fine. People don’t like to see the prices, but the market is working fine.”

Complete article at:

Gauging the Speculator Impact

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This Week in Petroleum (TWIP)

Wednesday, July 29, 2009

This Week in Petroleum (TWIP) has been updated to the EIA website:

TWIP

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The Role of the Mexican Military in the Cartel War

By Stephen Meiners and Fred Burton
July 29, 2009

U.S. drug czar Gil Kerlikowske is in the middle of a four-day visit this week to Mexico, where he is meeting with Mexican government officials to discuss the two countries’ joint approach to Mexico’s ongoing cartel war. In prepared remarks at a July 27 press conference with Mexican Attorney General Eduardo Medina Mora, Kerlikowske said Washington is focused on reducing drug use in the United States, supporting domestic law enforcement efforts against drug traffickers and working with other countries that serve as production areas or transshipment points for U.S.-bound drugs.

Absent from his remarks was any mention of the U.S. position on the role of the Mexican military in the country’s battle against the drug cartels. Kerlikowske’s visit comes amid a growing debate in Mexico over the role that the country’s armed forces should play in the cartel war. The debate has intensified in recent weeks, as human rights organizations in Mexico and the United States have expressed concern over civil rights abuses by Mexican troops assigned to counternarcotics missions in various parts of the country.

The director of Mexico’s independent National Human Rights Commission, for example, has encouraged the new legislature to re-examine the role of the Mexican military in the country’s cartel war, saying that the current approach is clearly not working. The number of citizen complaints against soldiers has increased over the last few years as the troops have become actively engaged in counternarcotics operations, and the commission director has expressed hope for greater accountability on the part of the armed forces.

Citing similar concerns, and the fact that such citizen complaints are handled by the military justice system — which has reportedly not successfully prosecuted a case in years — the independent U.S.-based Human Rights Watch has sent a letter to U.S. Secretary of State Hillary Clinton urging her not to certify Mexico’s human rights record to Congress, which would freeze the disbursement of a portion of the funds for the Merida Initiative, a U.S. counternarcotics aid package for Mexico.

More important than any possible funding freeze from Washington, though, is the potential response from the Mexican government. President Felipe Calderon has emphasized that the use of the military is a temporary move and is necessary until the country’s federal police reforms can be completed in 2012. Legislative leaders from both main opposition parties complained last week that Calderon’s approach has unnecessarily weakened the armed forces, while the leader of the Mexican senate — a member of Calderon’s National Action Party — said the legislature will examine the role of the military and seek to balance the needs of the cartel war with the civil rights of the Mexican people. In addition, the president of Mexico’s supreme court has said the court plans to review the appropriateness of military jurisdiction in cases involving citizen complaints against soldiers.

Domestic debate and international criticism of Calderon’s use of the military are not necessarily new. Indeed, Calderon was defending his approach to representatives of the United Nations back in early 2008. However, the renewed debate, combined with recent changes in the Mexican legislature, have set the stage for a general re-examination of the Mexican military’s role in the cartel war. And while it is still unclear exactly where the re-examination will end up, the eventual outcome could drastically change the way the Mexican government fights the cartels.

More than Just Law Enforcement

Since taking office in December 2006, Calderon’s decision to deploy more than 35,000 federal troops in security operations around the country has grabbed headlines. While previous presidents have used the armed forces for counternarcotics operations in isolated cases, the scope and scale of the military’s involvement under Calderon has reached new heights. This approach is due in no small part to the staggering level of corruption among federal police. But primarily, the use of the military is a reflection of the many tasks that must be performed under Calderon’s strategy, which is far more complex than simply putting boots on the ground and requires more than what traditional law enforcement agencies can provide.

This broad range of tasks can be grouped into three categories:

The first involves duties traditionally carried out by the armed forces in Mexico, such as technical intelligence collection and maritime and aerial monitoring and interdiction. These tasks are well-suited to the armed forces, which have the equipment, training and experience to perform them. These are also key requirements in the country’s counternarcotics strategy, considering that Mexico is the primary transshipment point for South American-produced cocaine bound for the United States, the world’s largest market for the drug.

The second category includes traditional civilian law enforcement and judicial duties. Specifically, this includes actions such as making arrests, prosecuting and convicting defendants and imposing punishment. With the exception of the military routinely detaining suspects and then turning them over to law enforcement authorities, the tasks in this second category have remained mainly in the hands of civilian authorities.

The final category is more of a gray area. It involves tasks that overlap between Mexico’s armed forces and law enforcement agencies, and it is the area over the last few years in which the Mexican military has become increasingly involved. It is also the area that has caused the most controversy, primarily due to the fact that it has brought the troops into closer contact with the civilian population.

Some of the most noteworthy tasks in this final “gray” category include:

Drug-crop eradication and meth-lab seizures. In addition to being the main transit point for U.S.-bound cocaine, Mexico is also estimated to be the largest producer of marijuana and methamphetamines consumed in the United States. The U.S. National Drug Intelligence Center estimates that more than 17,000 tons of marijuana were produced in Mexico during 2007, most of which was smuggled into the United States. Similarly, seizures of so-called meth superlabs in Mexico over the last few years — some capable of producing hundreds of tons annually — underscore the scale of meth production in Mexico. The destruction of marijuana crops and meth production facilities is a task that has been shared by both the military and law enforcement under Calderon.

Immigration and customs inspections at points of entry and exit. Thorough inspections of inbound and outbound cargo and people at Mexico’s borders have played a key role in some of the more noteworthy drug seizures during the last few years, including the country’s largest cocaine seizure at the Pacific port of Manzanillo in November 2007. Similar inspections elsewhere have led to significant seizures of weapons and precursor chemicals used in the production of meth. In many cases, the Mexican armed forces have played a role in either stopping or inspecting suspect cargo.

Raids and arrests of high-value cartel targets. Beyond simply stopping the flow of drugs and weapons into and out of Mexico, the federal government has also sought to disrupt the powerful organizations that control the drug trade by arresting drug cartel members. Given the federal police’s reputation for corruption, highly sensitive and risky operations such as the arrest of high-ranking cartel leaders have more often than not been carried out by the military’s elite Special Forces Airmobile Group (GAFE). In most cases, the suspects detained by GAFE units have been quickly handed over to the attorney general’s office, though in some cases military personnel have been accused of holding suspects for longer than necessary in order to extract information themselves.

General public safety and law enforcement. The rise in organized crime-related violence across Mexico over the last few years has been a cause for great concern both within the government and among the population. A central part of the federal government’s effort to curb the violence has been the deployment of military forces to many areas, where the troops conduct such actions as security patrols, traffic stops and raids as well as man highway checkpoints. In some cities, the military has been called upon to assume all public-safety and law-enforcement responsibilities, disarming the local police force while looking for police links to organized crime. Another part of this militarization of law enforcement has involved the appointment of military officers — many of whom resign their commission a day before their appointment — to law enforcement posts such as police chief or public safety consultant.

It is this final trend that has led to most of the concerns and complaints regarding the military’s role in the cartel war. The federal government has been mindful of these concerns from the beginning and has tried to minimize the criticism by involving the federal police as much as possible. But it has been the armed forces that have provided the bulk of the manpower and coordination that federal police agencies — hampered by rampant corruption and a tumultuous reform process — have not been able to muster.

A Victim of its Own Success

The armed forces’ greater effectiveness, rapid deployment capability and early successes in some public security tasks made it inevitable that its role would evolve and expand. The result has been a classic case of mission creep. By the time additional duties were being assigned to the military, its resources had become stretched too thin to be as effective as before. This reality became apparent by early 2008 in public-safety roles, especially when the military was tasked with security operations in cities as large and as violent as Ciudad Juarez.

Even though the Mexican military was not designed or trained for law-enforcement duties or securing urban areas, it had been generally successful in improving the security situation of the smaller cities to which it had been deployed throughout 2007. But by early 2008, when soldiers were first deployed to Ciudad Juarez en masse, it became clear that they simply had too much on their plate. As the city’s security environment deteriorated disastrously during the second half of 2008, the military presence there proved incapable of controlling it, an outcome that has continued even today, despite the unprecedented concentration of forces that are currently in the city.

In addition to the military’s mission failures, it has also struggled with increasing civil rights complaints from citizens. In particular, soldiers have been accused of unauthorized searches and seizures, rough treatment and torture of suspects (which in some cases have included police officers), and improper rules of engagement, which have led several times to civilian deaths when soldiers mistook them for hostile shooters. In many cities, particularly in northern and western Mexico, exasperated residents have staged rallies and marches to protest the military presence in their towns.

While the military has certainly not acted flawlessly in its operations and undoubtedly bears guilt for some offenses, these complaints are not completely reliable records of the military’s performance. For one thing, many cartel enforcers routinely dress in military-style clothing and travel in vehicles painted to resemble military trucks, while many also have military backgrounds and operate using the tactics they were taught. This makes it difficult for residents, during the chaos of a raid, to distinguish between legitimate soldiers and cartel members. More important, however, is the fact that the Mexican drug cartels have been keenly aware of the threat posed to them by the military and of the controversy associated with the military’s involvement in the cartel war. For this reason, the cartels have been eager to exploit this vulnerability by paying residents to protest the military presence and spread reports of military abuses.

Outlook

As the Mexican congress and supreme court continue the debate over the appropriateness of the military in various roles in the cartel war, it is important to recall what the armed forces have done well. For all its faults and failures, the military remains the most reliable security tool available to the Mexican government. And continued problems with the federal police reforms mean that the military will remain the most reliable and versatile option for the foreseeable future.

Any legislative or judicial effort to withdraw the armed forces from certain tasks will leave the government with fewer options in battling the cartels and, ultimately, in an even more precarious position than it is in now. The loss of such a valuable tool in some areas of the cartel war would force the government to fundamentally alter its strategy in the cartel war, most likely requiring it to scale back its objectives.

Please feel free to distribute this Intelligence Report to friends, or if you repost on a website include a link to Cartel War

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Borowitz Report – Obama Names Thursday “Drink A Beer With Someone Who Arrested You Day”

President Touts Healing Power of Beer

In an effort to foster better understanding between police and the people they have recently handcuffed in their own homes, President Barack Obama today named this Thursday “Drink a Beer With Someone Who Arrested You Day.”

Explaining his decision, the President told reporters, “When tempers run a little high, there’s one thing that always helps people think a little more rationally: beer.”

The President said he hoped that his proclamation would result in thousands of friendly get-togethers around the country between police officers and the innocent people they recently arrested.

“I’m hoping, for example, that Mischa Barton will have a tall and foamy with the cops who removed her from her home,” he said, adding, “which, let me be clear, they did not act stupidly in doing.”

For members of minority communities who have not been arrested recently, Mr. Obama had these reassuring words: “The week’s still young.”

•In other news, police in the Michael Jackson case searched Larry King’s house.

•Former NFL star Michael Vick said he had “nothing to do with” the death of the Taco Bell Chihuahua.

•A man sued CNN after recognizing his ass in stock footage about obesity.

Upcoming Events

August 1, 2009 at 3:30PM

Nantucket – FREE SHOW!

In addition to his appearances at the Nantucket Comedy Festival, Andy will make a joint appearance with his wife Olivia Gentile sponsored by Nantucket Bookworks. Andy will perform a free standup show and interview Olivia about her book LIFE LIST: A Woman’s Quest for the World’s Most Amazing Birds. Andy will take questions about his book, WHO MOVED MY SOAP? The CEO’s Guide to Surviving in Prison: The Bernie Madoff Edition. After the show, Andy and Olivia will sign copies of their books.
Location:

Arno’s, 41 Main Street

Borowitz Report

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three thousand words

Paul Fell
Artizans Syndicate
Jul 30, 2009

Matt Davies: hit it
(davies.lohudblogs.com)

Gary Varvel: common-sense beer
(www.cagle.com)

Thursday July 30, 2009 – “The major difference between a thing that might go wrong and a thing that cannot possibly go wrong is that when a thing that cannot possibly go wrong goes wrong it usually turns out to be impossible to get at or repair.” – Douglas Adams

Thursday, July 30th, 2009

Health Care in Crisis: How We Got into This Mess

Viewpoint July 26, 2009

In the first of a series, Ed Wallace explains why the U.S. doesn’t have the world’s best health care but does have the most expensive

By Ed Wallace

While the debate over health care and its inherent costs rages on, what is being left out of the discussion is how the U.S. got to the point where medical treatment could bankrupt the nation in our lifetime.

Often in the media, America’s health care is called “the finest in the world,” yet today the average American’s life span is shorter than those of citizens in almost all other industrialized nations. As a comparison, the CIA’s World Factbook shows the average life span of an American at just 78.06 years. That is only good enough to place 45th on the list. Fourteen countries have life spans averaging more than 80 years, including Canada, Iceland, Australia, Sweden, Switzerland, France, and Japan. Macau takes the top spot, with an average life span of 84.3 years.

The irony here is that while the per-person cost of health care in the U.S. is more than double that of other developed nations, these higher costs don’t translate into longer lives.

It is true that the practice of medicine worldwide focuses on altering the effects of only four primary causes: accidents, lifestyle, genetics, and age. But since medicine is considered an advanced science, the discussion these days is not about waste in the system; nor does it focus on the reality that some cannot be saved. Instead it is an emotional debate, addressing the financially problematic position that ability to pay should not be a consideration in medical treatment and outcome.

Old Prescription: Run for the Hills

Until relatively recently, advanced medical care and disease control simply didn’t exist. Often the best course of action when frequent pandemics broke out was simply to quarantine our largest cities; naturally, their residents rushed into the countryside to avoid contamination and likely death. In 1793, when yellow fever scourged many East Coast cities, half the citizens of Philadelphia, then the capital of the U.S., fled; one of those who escaped painful death was President George Washington. In the end it is estimated that between 5,000 and 10,000 Philadelphians succumbed to the virus.

Yellow fever would strike again in 1878, starting in New Orleans, where an estimated 20% of the population deserted their homes. As the New Orleans Picayune would write: “Only our mosquitoes keep up the hum of industry.” In retrospect, that’s an ironic statement; doctors didn’t know yet that mosquitoes carried the disease. Before that epidemic was over, as it moved up the Mississippi, half of the city of Memphis stood empty, its citizens as far away as they could get. Throughout that region, the outbreak of yellow fever took the lives of more than 20,000 people.

In the days before advanced medicines, you just hoped you didn’t get gravely ill or injured; the majority of doctors usually couldn’t do much for you if you did. It is no wonder, then, that this time was also the era of the traveling snake oil salesmen, whose concoctions were merely narcotic or alcohol-based painkillers. These so-called medicines couldn’t cure the sickness, but they did mask the pain—so it was also the first era of the addicted American. Such was the level of the nation’s accidental addiction that the Pure Food & Drug Act of 1906 was passed in part to end the patent medicine business.

By the early 20th century, modern medicine was starting to make great strides, but this too created a problem: It was widely known that the best health care went to the richest or the most indigent Americans. The rich would be forced to overpay for their care, but that allowed their doctors to spend one or two days a week in the charity hospitals that sprang up in our major cities. In essence, as in one proposed plan today, the rich subsidized the cost of health care for the poor.

Members of the growing middle class were too rich to apply for charity, but not rich enough to get the best possible treatment at the time. It would take Henry Ford to alter that equation with his most radical vision of all: health care for the masses.

A Better Medical Idea

It started in 1908, the same year in which Henry Ford gave his Model T to America to mobilize the country. That year he was asked to become chairman of the Detroit charity that promised to bring the city a new modern hospital. Ford made a sizable contribution, but for the most part that charitable organization was falling behind on its financial promises, and by the spring of 1914 it was in shambles. At that point, Ford decided to take over the hospital project completely. Paying back everyone who had previously contributed to the hospital’s construction, Ford decided to remake modern medicine according to his own ideas.

Ford’s ideas turned out to be not only pretty good but also ahead of his time. For in the same year he published a pamphlet titled The Little White Slaver, warning Americans of the risks of smoking cigarettes. In fact, when the Henry Ford Hospital was finally opened to the public in 1919—it had been used by the government during the war years—smoking was not allowed anywhere in the facilities. Many of his doctors considered the ban unfair.

Additionally, Ford evangelized the concept first advanced by Michigan’s John Harvey Kellogg that, for most people, “You are what you eat.” Yes, 51 years before the U.S. Surgeon General made smoking Public Enemy No. 1, Ford was trying to warn the masses of the dangers of cigarettes. Today’s trendy health diets were a bedrock of Ford’s beliefs almost a century ago.

For his hospital, Ford poached some of the most respected physicians from Johns Hopkins and brought them into his medical establishment on fixed salaries, instead of fees per patient. On admission, a patient was examined by one of the senior physicians, then passed to specialists in the medical field that treated his or her problems. Ford believed in efficiency; it did not go unnoticed that he appeared to be adapting his moving assembly line concept to suit the practice of medicine.

Henry Ford’s goal with this plan was to make the best possible medical care affordable for everyone, and here he succeeded. Of course, just as Ford was not the original inventor of the automobile, he didn’t invent medical treatment; he simply set out to make it work better and be more affordable. But Ford was so famous by then that his concept of health care for the masses started to become America’s new medical mindset. Within a decade, when foreign doctors would travel the U.S. looking for the latest advances in medicine, such was the Ford Hospital’s reputation that it was ranked with the Mayo Clinic and Johns Hopkins on the visitors’ schedule.

Still, it was a long leap from Ford’s “affordable health care for the masses” to “all Americans are entitled to free health care.”

The Forerunner of the HMO

The great American industrialist, Henry J. Kaiser, took society the next step forward in medicine. Having turned his construction firm into an industrial giant with assets approaching $3 billion, he refocused his building acumen into ship production during World War II. As the war moved toward its conclusion, Kaiser came to believe that the upcoming middle class would make demand boom for automobiles, housing, and medical care. He had started to provide health care for his own employees in 1942, but three years later he rolled out his private health-care plan for the public, and the predecessor of the modern HMO was born. The United Auto Workers would soon make health care one of their major demands.

The die was cast. In just one generation, Americans had gone from having merely affordable health care to massive, privately owned health-care insurance companies—and on to demanding health care as part of compensation for employment. Now, 60 years later, the cost of health care in the U.S. has hit nearly 18% of our total gross domestic product. The Centers for Medicare & Medicaid Services’ published costs suggest that as of 2007 we were spending $2.1 trillion, or nearly $6,000 per person per year. In 1998 a New York Times article on health-care costs showed the nation spending $1.1 trillion, or $4,094 per person. This financial trend is unsustainable.

But the most critical factor is the looming retirement of the nearly 80 million baby boomers and the pressures they will put on the nation’s health-care system. It is a recipe for financial disaster.

Stories from Today’s Health System

Now the discussion in Washington, and its likely outcome, is that this medical financial mess will be partially federalized. That will not improve medical care, although it will bring coverage to many uninsured Americans. Instead, the correct course is isolating the known waste in the system that causes our health-care costs to be so hideously expensive, meanwhile extending all Americans’ life spans, and not just those of the well-insured, to equal those of other civilized countries. But given the direction the debate is going, it seems we are hell-bent on maintaining health care’s expensive status quo.

This is the first in a series of five columns that helps explain how costs have spun out of control in American medicine. You will read stories of surgeries that never should have been attempted, missed diagnoses, expensive and possibly fatal treatments recommended for nonexistent diseases, medical malpractice—and one promise of advancement in oncology.

It is not a scientific survey. It’s a personal retelling of the last major medical experience of immediate families among my 50 closest friends, advisers, clients, and employees. Nor is the series intended to diminish the incredible work of the many dedicated health-care professionals in the U.S., who do in fact save millions of lives each year. But it did not go unnoticed that of the three individuals in this group that underwent open-heart surgery in the past 24 months, all died as a result of their operations.

Likewise, in one 18-month period, I lost seven friends to cancer, exposing as myth the belief that we are winning the war on that dreaded disease.

More than anything else, I hope, these case histories will point out certain isolated and costly financial failures of medicine today. And they will make clear why health care in the U.S. is so expensive—and what we can do to lower health-care costs and improve the quality of our lives.

Ed Wallace is a recipient of the the Gerald R. Loeb Award for business journalism, given by the G. and R. Loeb Foundation, and is a member of the American Historical Society. His column leads the Fort Worth Star-Telegram’s “Sunday Drive” section. He reviews new cars every Friday morning at 7:15 on Fox Four’s Good Day, contributes articles to BusinessWeek Online, and hosts the top-rated talk show Wheels Saturdays from 8 a.m. to 1 p.m. on 570 KLIF.

Complete article at:

Health Care

==========

Caught with “pants on fire,” McCaughey backtracks, hedges — again

After repeatedly falsely asserting that House Democrats’ health care reform bill makes end-of-life counseling for seniors “mandatory,” Betsy McCaughey was forced to backtrack from her claim — a claim PolitiFact.com called “a ridiculous falsehood.” Confronted with accusations that she lied about the bill, she claimed, as she had done with a prior falsehood about another bill, that she was right about the effect (if not the literal wording) of the legislation

Read More

pants on fire

==========

IT’S NOT HARD TO BE A JOB-SLASHING, PENSION-GRABBING CEO — IF YOU’RE A SOCIOPATH

By Thom Hartmann, Smirking Chimp

CEOs in America pull in the big bucks because there’s a shortage of people willing to destroy the lives of many
other human beings.

PENSION-GRABBING CEO

==========

A $100 million bonus

By Kim Peterson

27 Jul 2009

Citigroup is considering paying a $100 million bonus — to one guy. This is the same Citigroup that received $45 billion in bailout money. The same Citigroup that will soon be 34% owned by the U.S. government. The same Citigroup that has lost 95% of its share value since 2007… And will the U.S. government allow it? That will depend largely on the opinion of Kenneth Feinberg, the new pay czar appointed to oversee compensation at the bailed-out banks.

$100 million bonus



From: CLG News

==========

New articles at Iraq Oil Report

Wednesday, July 15, 2009

Iraq Oil Report has posted a new item

Big, careful steps

http://www.iraqoilreport.com/the-biz/big-careful-steps-1959/

As Iraq appears to start slowly denationalizing its oil sector, politicians and foreign companies must ensure Iraqis are satisfied.

New articles at Iraq Oil Report

Thursday, July 16, 2009
Iraq Oil Report has posted a new item

Biden, US Policy in Iraq and the Concept of Muhasasa

http://www.iraqoilreport.com/politics/biden-us-policy-in-iraq-and-the-concept-of-muhasasa-1965/

By REIDAR VISSER
Historiae.org

On 27 February this year, President Barack Obama held one of the best speeches on Iraq delivered by a US senior official for a long time. Obama congratulated the Iraqis for having resisted the forces of partition, and while he noted the need for political reconciliation, he pretty much refrained from imposing his
[...]

Kurdish security chief acknowledges violations

http://www.iraqoilreport.com/security-conflict/kurdish-security-chief-acknowledges-violations-1981/

The head of one KRG security agency discusses human rights critics and explores the role of the agency in the future of Iraqi Kurdistan.

Fallujans’ faith in local justice renewed

http://www.iraqoilreport.com/life/fallujans-faith-in-local-justice-renewed-1985/

Residents pleased to see restoration of local court after putting up with years of so-called tribal justice.

Iraqis relieved at American exit

http://www.iraqoilreport.com/life/iraqis-relieved-at-american-exit-1989/

City dwellers recall experiences of retreating US military with bitterness and, occasionally, admiration.

New articles at Iraq Oil Report

Saturday, July 18, 2009
Iraq Oil Report has posted a new item

Workers rebel

http://www.iraqoilreport.com/the-biz/workers-rebel-1994/

Iraq’s oil unions allude to tense future in Rumaila as foreign firms signed by the Oil Ministry are unwelcome, at least on the current terms.

Desertification destroys Ninawa villages

http://www.iraqoilreport.com/life/desertification-destroys-ninawa-villages-2002/

Whole villages in Ninawa province are being abandoned as a result of drought and increasing desertification which is making life impossible for those who remain on the once arable land.

Kurds seek new political opposition

http://www.iraqoilreport.com/politics/kurds-seek-new-political-opposition-2005/

Vote next week sets stage for possible new opposition to KDP and PUK, parties which now dominate politics in Iraq’s north.

Raw docs

http://www.iraqoilreport.com/the-biz/raw-docs-2009/

Three key documents from Iraq’s June 30 auction for six oil and two gas fields.

New articles at Iraq Oil Report

Wednesday, July 29, 2009

Iraq Oil Report has posted new articles.

Oil exports and revenue increase

http://www.iraqoilreport.com/the-biz/oil-exports-and-revenue-increase-2021/

New June data from Ministry shows signs of growth while national oil company law makes progress to Parliament, 2nd bidding round set.

==========

Toyota Manager Likens Ethanol to “Dumbest Kid in the School”, Says …

DailyTech – Chicago,IL,USA

Toyota’s Bill Reinert says that using ethanol is like “electing the dumbest kid in school as class president”. He also calls plug-in hybrids impractical, …

Ethanol

==========

545 vs 300,000,000

EVERY CITIZEN NEEDS TO READ THIS AND THINK ABOUT WHAT THIS JOURNALIST HAS SCRIPTED IN THIS MESSAGE. READ IT AND THEN REALLY THINK ABOUT OUR CURRENT POLITICAL DEBACLE.

Charley Reese has been a journalist for 49 years.

545 PEOPLE

By Charlie Reese

Politicians are the only people in the world who create problems and then campaign against them.

Have you ever wondered, if both the Democrats and the Republicans are against deficits, WHY do we have deficits?

Have you ever wondered, if all the politicians are against inflation and high taxes, WHY do we have inflation and high taxes?

You and I don’t propose a federal budget. The president does.

You and I don’t have the Constitutional authority to vote on appropriations. The House of Representatives does.

You and I don’t write the tax code, Congress does.

You and I don’t set fiscal policy, Congress does.

You and I don’t control monetary policy, the Federal Reserve Bank does.

One hundred senators, 435 congressmen, one president, and nine Supreme Court justices equates to 545 human beings out of the 300 million are directly, legally, morally, and individually responsible for the domestic problems that plague this country.

I excluded the members of the Federal Reserve Board because that problem was created by the Congress. In 1913, Congress delegated its Constitutional duty to provide a sound currency to a federally chartered, but private, central bank.

I excluded all the special interests and lobbyists for a sound reason.. They have no legal authority. They have no ability to coerce a senator, a congressman, or a president to do one cotton-picking thing. I don’t care if they offer a politician $1 million dollars in cash. The politician has the power to accept or reject it. No matter what the lobbyist promises, it is the legislator’s responsibility to determine how he votes.

Those 545 human beings spend much of their energy convincing you that what they did is not their fault. They cooperate in this common con regardless of party.
What separates a politician from a normal human being is an excessive amount of gall. No normal human being would have the gall of a Speaker, who stood up and criticized the President for creating deficits.. The president can only propose a budget. He cannot force the Congress to accept it.

The Constitution, which is the supreme law of the land, gives sole responsibility to the House of Representatives for originating and approving appropriations and taxes. Who is the speaker of the House? Nancy Pelosi. She is the leader of the majority party. She and fellow House members, not the president, can approve any budget they want. If the president vetoes it, they can pass it over his veto if they agree to.

It seems inconceivable to me that a nation of 300 million can not replace 545 people who stand convicted — by present facts — of incompetence and irresponsibility. I can’t think of a single domestic problem that is not traceable directly to those 545 people. When you fully grasp the plain truth that 545 people exercise the power of the federal government, then it must follow that what exists is what they want to exist.

If the tax code is unfair, it’s because they want it unfair.

If the budget is in the red, it’s because they want it in the red ..

If the Army &Marines are in IRAQ , it’s because they want them in IRAQ

If they do not receive social security but are on an elite retirement plan not available to the people, it’s because they want it that way.

There are no insoluble government problems.

Do not let these 545 people shift the blame to bureaucrats, whom they hire and whose jobs they can abolish; to lobbyists, whose gifts and advice they can reject; to regulators, to whom they give the power to regulate and from whom they can take this power. Above all, do not let them con you into the belief that there exists disembodied mystical forces like “the economy,” “inflation,” or “politics” that prevent them from doing what they take an oath to do.

Those 545 people, and they alone, are responsible.

They, and they alone, have the power.

They, and they alone, should be held accountable by the people who are their bosses.

Provided the voters have the gumption to manage their own employees.

We should vote all of them out of office and clean up their mess!

Charlie Reese is a former columnist of the Orlando Sentinel Newspaper.

What you do with this article now that you have read it………. Is up to you.

This might be funny if it weren’t so darned true.
Be sure to read all the way to the end:

Tax his land,
Tax his bed,
Tax the table
At which he’s fed.

Tax his tractor,
Tax his mule,
Teach him taxes
Are the rule.

Tax his work,
Tax his pay,
He works for peanuts
Anyway!
Tax his cow,
Tax his goat,
Tax his pants,

Tax his coat.
Tax his ties,
Tax his shirt,
Tax his work,
Tax his dirt.

Tax his tobacco,
Tax his drink,
Tax him if he
Tries to think.

Tax his cigars,
Tax his beers,
If he cries
Tax his tears.

Tax his car,
Tax his gas,
Find other ways
To tax his ass.

Tax all he has
Then let him know
That you won’t be done
Till he has no dough.

When he screams and hollers;
Then tax him some more,
Tax him till
He’s good and sore.
Then tax his coffin,
Tax his grave,
Tax the sod in
Which he’s laid.

Put these words
Upon his tomb,
Taxes drove me
to my doom…’

When he’s gone,
Do not relax,
Its time to apply
The inheritance tax.
Accounts Receivable Tax
Building Permit Tax
CDL license Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Excise Taxes
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax (currently 44.75 cents per gallon)
Gross Receipts Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges IRS Penalties (tax on top of tax)
Liquor Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Personal Property Tax
Property Tax
Real Estate Tax
Service Charge T ax
Social Security Tax
Road Usage Tax
Sales Tax
Recreational Vehicle Tax
School Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal Universal Ser vice FeeTax
Telephone Federal, State and Local Surcharge Taxes
Telephone Minimum Usage Surcharge=2 0Tax
Telephone Recurring and Non-recurring Charges Tax
Telephone State and Local Tax
Telephone Usage Charge Tax
Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax

STILL THINK THIS IS FUNNY?

Not one of these taxes existed 100 years ago, and our nation was the most prosperous in the world. We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids.
What in the hell happened? Can you spell ‘politicians?’

And I still have to ‘press 1′ for English!?

==========

New York Times Publishing $2 Hard-copy Version of Free Digital Edition

Andy Borowitz
BorowitzReport.com
July 29, 2009

The New York Times is making a massive gamble that consumers will be interested in reading a hard-copy version of its free online edition – and willing to pay $2 a day for it.

That radical bet was confirmed today by the Times’ publisher, Arthur Sulzberger Jr., who said he expected that the new version, a so-called “paper of news,” would defy its critics and be a success.

“Look, we don’t expect that this paper version of the Times will ever replace the free digital edition, which people know and love,” Mr. Sulzberger said. “But we wanted to provide consumers with a way to read the news when their Internet connection goes out.”

The Times is so convinced that their “paper of news” will eventually be profitable that they have borrowed millions of dollars from a Mexican billionaire and sold their Manhattan headquarters just to pay for it.

But the hard-copy version may face an uphill battle for acceptance with young consumers like Tracy Klugian, 19, an NYU sophomore who sampled it for the first time today.

“I kept running my mouse over it but it didn’t refresh,” he said.

Elsewhere, President Obama prepared to welcome Henry Louis Gates to the White House on Thursday, making sure that the front door wasn’t jammed.

Follow Andy Borowitz on Twitter: BorowitzReport

==========

three thousand words

Ed Gamble
Florida Times Union
Jul 29, 2009

Mike Luckovich: he was born in Hawaii …
(www.cagle.com)

R.J. Matson: look! here comes our retirement
(www.cagle.com)

Wednesday July 29, 2009 – “National New Home Sales, on a monthly basis, don’t even add up to half of the total foreclosure activity in California alone in a single month.” – Mark M Hanson

Wednesday, July 29th, 2009

The Russian Economy and Russian Power

by George Friedman
July 27, 2009

U.S. Vice President Joe Biden’s visit to Georgia and Ukraine partly answered questions over how U.S.-Russian talks went during U.S. President Barack Obama’s visit to Russia in early July. That Biden’s visit took place at all reaffirms the U.S. commitment to the principle that Russia does not have the right to a sphere of influence in these countries or anywhere in the former Soviet Union.

The Americans’ willingness to confront the Russians on an issue of fundamental national interest to Russia therefore requires some explanation, as on the surface it seems a high-risk maneuver. Biden provided insights into the analytic framework of the Obama administration on Russia in a July 26 interview with The Wall Street Journal. In it, Biden said the United States “vastly” underestimates its hand. He added that “Russia has to make some very difficult, calculated decisions. They have a shrinking population base, they have a withering economy, they have a banking sector and structure that is not likely to be able to withstand the next 15 years, they’re in a situation where the world is changing before them and they’re clinging to something in the past that is not sustainable.”

U.S. Policy Continuity

The Russians have accused the United States of supporting pro-American forces in Ukraine, Georgia and other countries of the former Soviet Union under the cover of supporting democracy. They see the U.S. goal as surrounding the Soviet Union with pro-American states to put the future of the Russian Federation at risk. The summer 2008 Russian military action in Georgia was intended to deliver a message to the United States and the countries of the former Soviet Union that Russia was not prepared to tolerate such developments but was prepared to reverse them by force of arms if need be.

Following his July summit, Obama sent Biden to the two most sensitive countries in the former Soviet Union — Ukraine and Georgia — to let the Russians know that the United States was not backing off its strategy in spite of Russian military superiority in the immediate region. In the long run, the United States is much more powerful than the Russians, and Biden was correct when he explicitly noted Russia’s failing demographics as a principle factor in Moscow’s long-term decline. But to paraphrase a noted economist, we don’t live in the long run. Right now, the Russian correlation of forces along Russia’s frontiers clearly favors the Russians, and the major U.S. deployments in Iraq and Afghanistan would prevent the Americans from intervening should the Russians choose to challenge pro-American governments in the former Soviet Union directly.

Even so, Biden’s visit and interview show the Obama administration is maintaining the U.S. stance on Russia that has been in place since the Reagan years. Reagan saw the economy as Russia’s basic weakness. He felt that the greater the pressure on the Russian economy, the more forthcoming the Russians would be on geopolitical matters. The more concessions they made on geopolitical matters, the weaker their hold on Eastern Europe. And if Reagan’s demand that Russia “Tear down this wall, Mr. Gorbachev” was met, the Soviets would collapse. Ever since the Reagan administration, the idee fixe of not only the United States, but also NATO, China and Japan has been that the weakness of the Russian economy made it impossible for the Russians to play a significant regional role, let alone a global one. Therefore, regardless of Russian wishes, the West was free to forge whatever relations it wanted among Russian allies like Serbia and within the former Soviet Union. And certainly during the 1990s, Russia was paralyzed.

Biden, however, is saying that whatever the current temporary regional advantage the Russians might have, in the end, their economy is crippled and Russia is not a country to be taken seriously. He went on publicly to point out that this should not be pointed out publicly, as there is no value in embarrassing Russia. The Russians certainly now understand what it means to hit the reset button Obama had referred to: The reset is back to the 1980s and 1990s.

Reset to the 1980s and 90s

To calculate the Russian response, it is important to consider how someone like Russian Prime Minister Vladimir Putin views the events of the 1980s and 1990s. After all, Putin was a KGB officer under Yuri Andropov, the former head of the KGB and later Chairman of the Communist Party for a short time — and the architect of glasnost and perestroika.

It was the KGB that realized first that the Soviet Union was failing, which made sense because only the KGB had a comprehensive sense of the state of the Soviet Union. Andropov’s strategy was to shift from technology transfer through espionage — apparently Putin’s mission as a junior intelligence officer in Dresden in the former East Germany — to a more formal process of technology transfer. To induce the West to transfer technology and to invest in the Soviet Union, Moscow had to make substantial concessions in the area in which the West cared the most: geopolitics. To get what it needed, the Soviets had to dial back on the Cold War.

Glasnost, or openness, had as its price reducing the threat to the West. But the greater part of the puzzle was perestroika, or the restructuring of the Soviet economy. This was where the greatest risk came, since the entire social and political structure of the Soviet Union was built around a command economy. But that economy was no longer functioning, and without perestroika, all of the investment and technology transfer would be meaningless. The Soviet Union could not metabolize it.

Former Soviet leader Mikhail Gorbachev was a communist, as we seem to forget, and a follower of Andropov. He was not a liberalizer because he saw liberalization as a virtue; rather, he saw it as a means to an end. And that end was saving the Communist Party, and with it the Soviet state. Gorbachev also understood that the twin challenge of concessions to the West geopolitically and a top-down revolution in Russia economically — simultaneously—risked massive destabilization. This is what Reagan was counting on, and what Gorbachev was trying to prevent. Gorbachev lost Andropov’s gamble. The Soviet Union collapsed, and with it the Communist Party.

What followed was a decade of economic horror, at least as most Russians viewed it. From the West’s point of view, collapse looked like liberalization. From the Russian point of view, Russia went from a superpower that was poor to an even poorer geopolitical cripple. For the Russians, the experiment was a double failure. Not only did the Russian Empire retreat to the borders of the 18th century, but the economy became even more dysfunctional, except for a handful of oligarchs and some of their Western associates who stole whatever wasn’t nailed down.

The Russians, and particularly Putin, took away a different lesson than the West did. The West assumed that economic dysfunction caused the Soviet Union to fail. Putin and his colleagues took away the idea that it was the attempt to repair economic dysfunction through wholesale reforms that caused Russia to fail. From Putin’s point of view, economic well-being and national power do not necessarily work in tandem where Russia is concerned.

Russian Power, With or Without Prosperity

Russia has been an economic wreck for most of its history, both under the czars and under the Soviets. The geography of Russia has a range of weaknesses, as we have explored. Russia’s geography, daunting infrastructural challenges and demographic structure all conspire against it. But the strategic power of Russia was never synchronized to its economic well-being. Certainly, following World War II the Russian economy was shattered and never quite came back together. Yet Russian global power was still enormous. A look at the crushing poverty — but undeniable power — of Russia during broad swaths of time from 1600 until Andropov arrived on the scene certainly gives credence to Putin’s view.

The problems of the 1980s had as much to do with the weakening and corruption of the Communist Party under former Soviet leader Leonid Brezhnev as it had to do with intrinsic economic weakness. To put it differently, the Soviet Union was an economic wreck under Joseph Stalin as well. The Germans made a massive mistake in confusing Soviet economic weakness with military weakness. During the Cold War, the United States did not make that mistake. It understood that Soviet economic weakness did not track with Russian strategic power. Moscow might not be able to house its people, but its military power was not to be dismissed.

What made an economic cripple into a military giant was political power. Both the czar and the Communist Party maintained a ruthless degree of control over society. That meant Moscow could divert resources from consumption to the military and suppress resistance. In a state run by terror, dissatisfaction with the state of the economy does not translate into either policy shifts or military weakness — and certainly not in the short term. Huge percentages of gross domestic product can be devoted to military purposes, even if used inefficiently there. Repression and terror smooth over public opinion.

The czar used repression widely, and it was not until the army itself rebelled in World War I that the regime collapsed. Under Stalin, even at the worst moments of World War II, the army did not rebel. In both regimes, economic dysfunction was accepted as the inevitable price of strategic power. And dissent — even the hint of dissent — was dealt with by the only truly efficient state enterprise: the security apparatus, whether called the Okhraina, Cheka, NKVD, MGB or KGB.

From the point of view of Putin, who has called the Soviet collapse the greatest tragedy of our time, the problem was not economic dysfunction. Rather, it was the attempt to completely overhaul the Soviet Union’s foreign and domestic policies simultaneously that led to the collapse of the Soviet Union. And that collapse did not lead to an economic renaissance.

Biden might not have meant to gloat, but he drove home the point that Putin believes. For Putin, the West, and particularly the United States, engineered the fall of the Soviet Union by policies crafted by the Reagan administration — and that same policy remains in place under the Obama administration.

It is not clear that Putin and Russian President Dmitri Medvedev disagree with Biden’s analysis — the Russian economy truly is “withering” — except in one sense. Given the policies Putin has pursued, the Russian prime minister must believe he has a way to cope with that. In the short run, Putin might well have such a coping mechanism, and this is the temporary window of opportunity Biden alluded to. But in the long run, the solution is not improving the economy — that would be difficult, if not outright impossible, for a country as large and lightly populated as Russia. Rather, the solution is accepting that Russia’s economic weakness is endemic and creating a regime that allows Russia to be a great power in spite of that.

Such a regime is the one that can create military power in the face of broad poverty, something we will call the “Chekist state.” This state uses its security apparatus, now known as the FSB, to control the public through repression, freeing the state to allocate resources to the military as needed. In other words, this is Putin coming full circle to his KGB roots, but without the teachings of an Andropov or Gorbachev to confuse the issue. This is not an ideological stance; it applies to the Romanovs and to the Bolsheviks. It is an operational principle embedded in Russian geopolitics and history.

Counting on Russian strategic power to track Russian economic power is risky. Certainly, it did in the 1980s and 1990s, but Putin has worked to decouple the two. On the surface, it might seem a futile gesture, but in Russian history, this decoupling is the norm. Obama seems to understand this to the extent that he has tried to play off Medvedev (who appears less traditional) from Putin (who appears to be the more traditional), but we do not think this is a viable strategy — this is not a matter of Russian political personalities but of Russian geopolitical necessity.

Biden seems to be saying that the Reagan strategy can play itself out permanently. Our view is that it plays itself out only so long as the Russian regime doesn’t reassert itself with the full power of the security apparatus and doesn’t decouple economic and military growth. Biden’s strategy works so long as this doesn’t happen. But in Russian history, this decoupling is the norm and the past 20 years is the exception.

A strategy that assumes the Russians will once again decouple economic and military power requires a different response than ongoing, subcritical pressure. It requires that the window of opportunity the United States has handed Russia by its wars in the Islamic world be closed, and that the pressure on Russia be dramatically increased before the Russians move toward full repression and rapid rearmament.

Ironically, in the very long run of the next couple of generations, it probably doesn’t matter whether the West heads off Russia at the pass because of another factor Biden mentioned: Russia’s shrinking demographics. Russian demography has been steadily worsening since World War I, particularly because birth rates have fallen. This slow-motion degradation turned into collapse during the 1990s. Russia’s birth rates are now well below starkly higher death rates; Russia already has more citizens in their 50s than in their teens. Russia can be a major power without a solid economy, but no one can be a major power without people. But even with demographics as poor as Russia’s, demographics do not change a country overnight. This is Russia’s moment, and the generation or so it will take demography to grind Russia down can be made very painful for the Americans.

Biden has stated the American strategy: squeeze the Russians and let nature take its course. We suspect the Russians will squeeze back hard before they move off the stage of history.

Please feel free to distribute this Intelligence Report to friends, or if you repost on a website include a link to STRATFOR

The Next 100 Years: A Forecast for the 21st Century ~ George Friedman

==========

Afghanistan: Training Ground for War on Russia

NATO Trains Finland, Sweden For Conflict With Russia

By Rick Rozoff
Global Research, July 26, 2009

A Swedish newspaper reported on July 24 that approximately 50 troops from the country serving under NATO in the so-called International Security Assistance Force (ISAF) had engaged in a fierce firefight in Northern Afghanistan and had killed three and wounded two attackers.

The report detailed that the Swedish troops were traveling in armored vehicles and “later received reinforcements from several soldiers in a Combat Vehicle 90.” [1]

The world has become so inured to war around the world and seemingly without end that Swedish soldiers engaging in deadly combat as part of a belligerent force for the first time since the early 1800s – and that in another continent thousands of kilometers from their homeland – has passed virtually without notice.

A Finnish news story of the preceding day, possibly about the same incident but not necessarily, reported that “A Finnish-Swedish patrol, part of the NATO-led International Security Assistance Force (ISAF), came under fire in northern Afghanistan” on July 23rd. [2]

Three days before that a Swedish commander in the north of Afghanistan, where Finnish and Swedish troops are in charge of ISAF operations in four provinces, acknowledged that “During the last three months, six serious incidents have occurred in our area.” [3]

The same source revealed that in the upcoming weeks Swedish troop numbers are to be increased from 390 to 500.

The Svenska Dagbladet reported that over a twelve week period attacks on Swedish-Finnish forces in the area have doubled and that seven attacks preceded the deadly firefight described earlier. “In April, a Norwegian officer was killed by a suicide bomber in a province under Swedish-Finnish control, and several vehicles have been attacked along Mazar-i-Sharif’s main road since.” [4]

Like Sweden, Finland has also increased troop deployments to Afghanistan lately, ostensibly to provide security for next month’s elections but, given the escalation of fighting in the nation’s north, certainly to remain there for the duration of NATO’s South Asian deployment, one which a German official recently stated would last eighteen years from 2001 onward. In early July Finland dispatched 70 more troops to join the 100 already stationed in Mazar-i-Sharif, the capital of Balkh Province bordering Kunduz where German troops are waging an almost two week long military offensive.

Last month Finnish forces in the area were attacked twice and a rocket attack struck close to Finnish barracks in the capital of Kabul.

Troops from the other Scandinavian nations have fared even worse. Three Danish soldiers were killed in a bomb attack in Helmand on June 17, bringing the country’s death toll to 26. Norway has lost four soldiers.

To illustrate the integration of Finland and Sweden military forces in Afghanistan and under NATO control in general, in late June it was announced that Sweden was purchasing 113 armored vehicles from Finland. Approximately 1,200 of the Finnish-made vehicles “have been ordered by other customers and [they are] currently used operationally in Finland, Poland, Slovenia and Croatia, for example in operations in Afghanistan.” [5]

NATO Deployment In Afghanistan “Improves Readiness For Defense Of Finland”

Last month a major Finnish daily newspaper in a feature called “Afghanistan: Now it’s Finland’s war, too” contained this striking revelation:

“[F]rom the point of view of the Finnish Defence Forces, there is still another important reason for the Afghanistan operation: it improves readiness for the defence of Finland.”

The Finnish source quoted the former commander of the nation’s troops in Afghanistan, Ari Mattola, as saying, “This is a unique situation for us, in that we will get to train part of our wartime forces. That part will get to operate as close to wartime conditions as is possible.” [6]

Comparable claims about the Afghan war being the training ground for military action on their borders – and that can only mean in relation to Russia – have been made by defense and military officials in the Baltic states, Poland and Georgia.

Early this month Finnish Defense Minister Jyri Hakamies divulged that he would further drag his nation into NATO’s plans for a drive east aimed against Russia and is paraphrased as asserting that “NATO had approached Finland with an opportunity to take part in cyber warfare training and the country should accept NATO’s offer.” [7]

NATO’s Article 5: Cyber Warfare And Nuclear Weapons

On June 15 US President Barack Obama and Estonian President Toomas Hendrik Ilves met at the White House with American National Security Adviser James Jones, former NATO Supreme Allied Commander, and discussed cyber security – which is to say, as the Finnish Defense Minister more honestly called it, cyber warfare. The Estonian president, raised in the United States and a former Radio Free Europe employee, “thanked the United States for its assistance in establishing the NATO Cooperative Cyber Defense Center in the Estonian capital of Tallinn….” [8]

The head of the U.S. Strategic Command, Gen. Kevin Chilton, indicated this May what US and NATO cyber warfare plans might include when he said that “the White House retains the option to respond with physical force – potentially even using nuclear weapons – if a foreign entity conducts a disabling cyber attack against U.S. computer networks….” [9]

The NATO summit in Bucharest, Romania authorized the establishment of the Alliance’s cyber warfare center in Estonia in 2008 and last month the Pentagon complemented that initiative by approving a unified U.S. Cyber Command.

For two years American and NATO officials have spoken bluntly about invoking NATO’s Article 5 war clause, used for the invasion of Afghanistan and the buildup to that of Iraq, in response to alleged Russian cyber attacks.

Encirclement Of Russia: Finland Offers NATO 237,000 Troops, 1,300 Kilometer Border

This January Finland released a Security and Defense Policy Report which stated that “Finland regards NATO as the most important military security cooperation organisation”, and that “there will continue to be a strong case for considering Finland’s membership of NATO in the future”. [10]

Mandatory weapons interoperability is a key component of full NATO membership and in April the Finnish Defense Ministry announced “the team of Norwegian Kongsberg and US Raytheon has been selected to fulfill Finland’s future Medium Range Air Defense Missile System (MRADMS) requirements….The new NATO-compliant anti-aircraft missile system will replace the Russian-made BUK systems purchased in 1996 that will be taken out of service. The key reason for giving up the Russian systems is their lack of compatibility and interoperability with NATO systems….” [11]

The Helsinki Times of July 23 quoted Finnish Russian experts Esa Seppanen and Ilmari Susiluoto on Russian responses to what is now an all but certain development: Finland’s joining NATO and providing the Alliance a new 1,300-kilometer border with the nation that has always been NATO’s main target.

The two scholars are quoted as saying that “Russia is concerned about Finland’s NATO option. It will not remain passive if Finland becomes a member.”

The article also says that “NATO is marketed in Finland as a global peacekeeper. However, the Russians see it as a territorial threat specifically aimed at them” and “Russia fears that NATO membership would bring NATO’s military structures to Finnish soil.

“NATO’s expansion in the Nordic countries would finish off the military-political stability of the entire region. The Baltic Sea would become ‘NATO’s sea,’ with the exception of Kaliningrad and the eastern end of the Gulf of Finland.” [12]

In addition to securing NATO’s encirclement of Russia from the Barents to the Baltic to the Blacks Seas, an article titled “Finland Rearms,” in reference to the Finnish government recently agreeing to boost military spending to 2% of its budget – a standard NATO demand – says “By raising their spending, Finland pulls more of its weight in the alliance and thus is more likely to get a favorable response to any future requests for defense aid. Finland is a member of NATO’s Partnership for Peace program, and, with their new emphasis on added security, are likely to grow a closer relationship in the future.

With Finland in NATO the bloc would gain an additional “237,000 troops, beefed up with the latest infantry weapons and heavy armor….” [13]

Finland, Sweden Forced Into NATO And Overseas Wars Against Will Of The People

In a recent newspaper interview the Finnish Speaker of the Parliament Sauli Niinisto spoke of the surreptitious campaign underway – indeed almost completed – to pull his nation into an expanding worldwide military alliance despite its citizens not only being opposed to but not even aware of it.

He characterized the process in this manner: “The logic of silent agreements has been brought very far in thinking in which closer Finnish participation in NATO is seen to bring us security points from the United States and NATO.” [14]

Niinisto listed several instances of how NATO is transitioning Finland into full membership without public debate or cognizance. Referring to the purchase of NATO interoperable fighter jets, he said that “It was a silent preliminary contract involving confidence that more supplies would come later.”

He also cited Finland’s participation in NATO’s international Rapid Response Force as well as in the European Union’s Nordic Battlegroups. More will be said later about the integration of the EU and NATO in global deployments and strike forces but this (not so) hypothetical observation by the Finnish Speaker offers an initial insight:

“All European defence activities are always under the NATO umbrella. What if the EU could be collectively a NATO member? What would Finland do then? Would Finland secede? The EU now seeks to act as a collective in all organisations. Why would security policy be a big exception?” [15]

An identical campaign, covert and concerted, in being conducted in Sweden, where as in Finland polls regularly register a majority of citizens opposed to NATO accession, and is being addressed and combated by the Sptoppa smyganslutningen till NATO/Stop surreptitious accession to NATO, whose web address is

NATO/Stop

Complete article at:

Global Research

==========

Housing Sales and Consumer Confidence

Tuesday, July 28, 2009

John Williams published a Flash Update this morning covering the above topics, in the light of recent
government reports.

Although the full content of the Flash Update is available only to SGS paid subscribers, as a subscriber to the free ShadowStats News List we provide you below with the main bullet points and the first three introductory paragraphs, which we hope you will find of interest.

- Depression Data Distortions Fuel Recovery Mania

- Statistically Insignificant Monthly Changes amidst Severe Bottom Bouncing

- Foreclosures Warp New and Existing Home Sales

- Shy of a Political Fix, Second-Quarter GDP Consensus Is Too Optimistic

The Depression Continues to Unfold, Including Housing. In line with the discussion in the “Depression-Induced Economic Reporting Distortions” of the Opening Comments section of last week’s newsletter, the recent reports of surging home sales are little more than Wall Street, Administration and media hype, overplaying results of limited-quality series plateauing at historic lows.

Consider the “recovery mania” surrounding new houses sold in June, for example (see also hyped expectations below on second-quarter GDP in the Week Ahead section). First, in this highly volatile series, the monthly gain of 11.0% was not statistically meaningful, +/- 13.6% (90% confidence interval as published in the Census Bureau release) or with the 95% confidence interval as usually cited by SGS of +/- 16.1%.

Despite all the hoopla of the monthly home sales growth being the strongest in nearly nine years, the Census Bureau’s release noted that the “90% confidence interval includes zero. The Census Bureau does not have sufficient statistical evidence to conclude that the actual change is different from zero.”

A thumbnail version of one of the charts used in the article is available on the home page of our website. This shows the actual monthly levels of new house sales, as a comparison to the month-to-month changes which are quoted in the headlines.

ShadowStats

Today’s article also previewed the New Orders for Durable Goods, and GDP numbers which will be reported later this week.

Best regards,

The ShadowStats Team

==========

Today’s Gasoline Prices

Monday, July 27, 2009

RETAIL GASOLINE: (Self Service Prices per Gallon, Including Taxes) This report contains price estimates for gasoline sold in ozone non-attainment areas which require the sale of reformulated gasoline (RFG) as designated by the Environmental Protection Agency, and Conventional areas which includes both attainment areas and carbon monoxide non-attainment areas.

Mogas web site url

Today’s Gasoline Prices

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July 2009 Monthly Energy Review has been released

Tuesday, July 28, 2009

Monthly Energy Review (07/28/2009)

Monthly Energy Review

EIA ‘ s primary report of recent energy statistics: total energy production, consumption, and trade; energy prices; overviews of petroleum, natural gas, coal, electricity, nuclear energy, renewable energy, and international petroleum; and data unit conversions. Over the first half of 2009, U.S. crude oil and natural gas plant liquids production was estimated to be 2 percent higher and 3 percent higher than comparable periods in 2008 and 2007, respectively; petroleum net imports were estimated to be 8 percent lower and 15 percent lower; and products supplied (a surrogate measure for consumption) was estimated to be 6 percent lower and 10 percent lower. See What’s New in the Monthly Energy Review for a record of changes in this report.

==========

Op-Ed: Conservative interventionism

Business World Online

http://www.bworldonline.com/BW072909/content.php?id=145

By J. Bradford Delong
J. BRADFORD DELONG IS PROFESSOR OF ECONOMICS AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY and a research associate at the National Bureau of Economic Research.

July 28, 2009

Berkeley — At this stage in the worldwide fight against depression, it is useful to stop and consider just how conservative the policies implemented by the world’s central banks, treasuries, and government budget offices have been. Almost everything that they have done — spending increases, tax cuts, bank recapitalization, purchases of risky assets, open-market operations, and other money-supply expansions — has followed a policy path that is nearly 200 years old, dating back to the earliest days of the Industrial Revolution, and thus to the first stirrings of the business cycle.

The place to start is 1825, when panicked investors wanted their money invested in safe cash rather than risky enterprises….

Ever since, whenever governments largely stepped back and let financial markets work their way out of a panic out by themselves — 1873 and 1929 in the United States come to mind — things turned out badly. But whenever government stepped in or deputized a private investment bank to support the market, things appear to have gone far less badly. For example, the US government essentially authorized JP Morgan to act as the country’s central bank in the aftermath of the 1893 and 1907 panics, created the Resolution Trust Corporation at the start of the 1990s, and, together with the IMF, intervened to support Mexico in 1995 and the East Asian economies in 1997-98.

At the very least, few modern governments are now willing to let financial market heal themselves. To do so would be a truly radical step indeed….

==========

Things that airlines brag about: Charging for checked bags, food

Aerospace News

airlines brag

Do you ever wonder why a corporation’s stock rises when a company lays off workers?

It’s because things that are good for the bottom line, and thus good for investors, aren’t always what’s best for employees or customers.

American Airlines delivered a shining example of this today in its “second quarter highlights.”

The company boasts to investors that charging for flight changes, upgrades, on-board food and checked bags raised $565 million during the quarter.

Check out this section, in which American declares it is leading the way:

Other Revenue Rises to $565 million – Up 7.4 Percent

Since Mr. Arpey assumed leadership of AMR in spring 2003, he has had a major focus on generating revenue through traditional and new sources. American Airlines led the industry on another front by breaking down a major barrier in establishing new avenues to generate ancillary revenue during the second quarter of 2008 – an era of near-crisis proportions with jet fuel reaching record heights.

The new, modified services charges implemented by American in May 2008, including becoming the first network airline to include a $15 charge for the first checked bag – given the increasing costs of transporting checked baggage – helped continue the company’s growth in its other revenue line.

During the second quarter of 2009, other revenue – from sources such as confirmed flight changes, purchased upgrades, Buy-on-Board food services and baggage service charges – increased 7.4 percent year over year to $565 million.

This follows 6.9 percent growth in the first quarter, year over year, and a 9.2 percent increase in this line for 2008 versus 2007.

Through 2008, this important revenue category, especially in a time of declining passenger traffic, has grown 51 percent from $1.44 billion in 2003.

In American’s defense, it did say it’s focusing on taking care of customers in other ways.

The company said that it made progress on improving dependability and the customer experience.

American is working to improve the overall customer experience. To do so, the company has worked with more than 100 teams across its network to identify issues and develop solutions within six key customer touch points, including delays and delay management, gate interactions and the boarding experience, onboard interactions, cabin interior condition, baggage handling and baggage resolution.

Year to date through June, American has seen complaints across all six issues decline by 40.5 percent.

Recognizing that dependability is a linchpin for customer satisfaction, the airline added time to its schedule in response to the new flying environment it faced amid an industry with an overloaded, outdated air traffic control (ATC) system and airport capacities set beyond reasonable limits. The added time benefited customers by giving them better information that allows them to plan their travel with more predictability. American’s A+14 on-time performance, as measured by the U.S. Department of Transportation, averaged 74 percent during the second quarter of 2009, an improvement of 10 percentage points versus the same period in 2008, and its flight completion factor for those three months averaged 98 percent, an improvement of two percentage points from the prior-year period.

Posted by Andrea James at July 15, 2009

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Twitter 101 for Business – A Special Guide Twitter 101 for Business:

“Every day, millions of people use Twitter to create, discover and share ideas with others. Now, people are turning to Twitter as an effective way to reach out to businesses, too. From local stores to big brands, and from brick-and-mortar to internet-based or service sector, people are finding great value in the connections they make with businesses on Twitter.”

Twitter 101 for Business

Twitter Power – Joel Comm

Remember, it’s all about relationship. Twitter offers opportunity to connect with customers and prospects like never before.

Twitter Power

Twitter Power: How to Dominate Your Market One Tweet at a Time ~ Joel Comm

==========

David Letterman …

“Here’s how bad the economy is. Now people can’t afford to be buried in a cemetery so they’re being buried in their backyard. Well, I mean, you think about it. You sink all your money into real estate. Why not go with it?”

==========

three thousand words

Steve Artley
Artleytoons
Jul 28, 2009

Tom Tomorrow: What’s not to love about having our healthcare decisions made by
insurance company accountants?
(www.salon.com)

R.J. Matson: a liberal is a conservative who …
(www.cagle.com)

Tuesday July 28, 2009 – “A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort.” – Herm Albright

Tuesday, July 28th, 2009

Socialism and Financial Innovation

“Financial Innovations”: We Win, You Lose

Ed Wallace
Special to the Star-Telegram
day, Jul 26, 2009

SO cial ism n., 1837

1: any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods. (Merriam-Webster)

Congressman Michael Burgess told me a month or two ago that there is no passion inside Congress to undo the repeal of Glass-Stegall or to outright repeal the Commodities Futures Modernization Act of 2000 – the two legislative moves that chiefly got us into this mess.

As our economy limps along, occasionally showing improvements such as the 7 percent May-to-June increase in California home prices or improved automobile sales at many Dallas Fort Worth dealerships, we keep shooting ourselves in the foot by debating meaningless issues. Sadly, as long as the national discussion concerns imaginary threats, focuses on celebrity sideshows and unquestioningly cheers Wall Street’s amazing recovery, we cannot focus on the issues that will be key to any recovery in America’s real economy.

My industry is especially hard hit. In the last 10 days it’s been reported that BusinessWeek, the third of my three primary clients, will apparently be put up for sale and more than likely will be sold. And the predictable will happen: The new owners will owe debts far in excess of revenues available to pay them. So, the new owner will reduce labor and other fixed costs to free up enough money to make the buyout’s stipulated loan payments, meaning that good-paying jobs will disappear.

When those individuals lose their jobs, their retail purchases will fall. And among the ones still employed the level of fear will ratchet up a notch; they will know that if the new owners can’t turn things around, their jobs could be next to go.

Obviously, downward pressures on retail spending and increased fear of the future is not the way to improve consumer confidence in our country. And confidence is the one ingredient we need most if we’re to resume any long-term growth.

Its Own Biggest Problem?

Why are media outlets so often sold, even with such predictable results for their existing workforce? Some, desirable because advertising revenues gave them cash flows from good to extraordinary, were sold years ago. Others were sold late, after declining ad revenues had already pounded their financial statements. But the one thing hurting all media today is the current downturn in advertising: It’s draining even exceptional media outlets of their financial lifeblood. The lack of advertising also sends the wrong message to businesses and potential consumers by validating their financial fears.

Now, why are advertising revenues down? It’s obvious: Our consumer nation, still recovering from Wall Street’s shenanigans, is hanging onto its spare change because we’re not sure those problems have really been corrected. And here the media does a poor job of covering its own and the country’s biggest problem.

Over the last 10 years many reporters have consistently missed the obvious: Why exactly did the Internet bubble burst, causing the recession of nearly a decade ago. Or that the more recent housing mania and bubble was artificial and couldn’t last either. Then, as those two problems hit the rest of the nation and slowed down our consumption, the same reporters missed that impact’s importance; they were too busy looking for “green shoots” of recovery to ask their own management why their radio and TV stations, magazines or newspapers were being forcefully downsized. Maybe they did know and just didn’t want to report it.

Therein lies the problem. Because we don’t dig deep enough to find out the real causes for financial panics, we do not resolve them and remove the problem. That keeps the public skeptical and uneasy about their future – and that in turn postpones any real recovery.

Likewise, there is too much time and space given to trivial and even non-existent issues, which infuses further negative emotions into society, draining public confidence and, you guessed it, further delaying the nation’s and the economy’s recovery.

This hurts everything from mall sales to automobiles, from real estate to creating new jobs or reinstating lost ones. And advertising leads sales.

Wallets Unconvinced

Being American is a great blessing of our birth. We and our ancestors have been through every major crisis imaginable; and through intelligence, ingenuity and confidence in our problem-solving abilities we have improvised, adapted and overcome. But the one thing we cannot deal with is an unresolved crisis. It feels like losing.

We have to know in our hearts that we have put all of our collective power into ensuring that whatever negative thing has transpired, the root problem is fixed and won’t hurt the country any more. And today that certainty for many still seems far away.

It would be almost impossible to count the stories I’ve read in the last month on just one issue. That is America’s alleged movement toward socialism, empowered because two branches – legislative and executive – of our federal government are under Democratic control. Give me a break: In our lifetime America has acted in extremely socialistic ways. Maybe we are becoming more socialistic – but if so that trend’s been in place since the last Great Depression.

Doubt that? How about Medicare, Medicaid and Social Security? Socialistic programs all. When the government pays farmers not to put their fields to use, or pays offsets because the cost of producing milk has fallen below the wholesale price structure, that too is socialism. When the Pentagon gives money to key defense contractors to keep their operations open because military expenditures are low, that’s socialist too. I’ve read that over the past 23 years we have invested more on the V-22 Osprey tilt-wing rotor program than it took to save General Motors. That may or may not be true, but we don’t care because it helps our own at Bell Helicopter.

When our Republican Congress expanded drug benefits for our retirees, no one charged that they were pushing the nation down the slippery slope of socialism, but that’s exactly what it was.

Let’s Talk About This!

A massive outcry was heard on saving what’s left of our industrial base, starting with Detroit – because the cost exceeded $100 billion. But there was little debate on whether or not to save Wall Street, which now has $23.7 trillion in current commitments.

So the other issue that needs to be clarified is that of Wall Street’s future business practices. Congressman Michael Burgess told me a month or two ago that there is no passion inside Congress to undo the repeal of Glass-Stegall or to outright repeal the Commodities Futures Modernization Act of 2000 – the two legislative moves that chiefly got us into this mess.

Meanwhile, Wall Street is lobbying publicly, warning the administration not to inhibit any future “financial innovations” they might come up with. And they are winning: The public, made afraid that if Congress tries to fix the problems of financial innovation then their personal investments can never recover, helps Wall Street win the argument.

In fact, the opposite is true. It’s exactly those reckless financial innovations that have devastated everyone’s personal investments and retirement accounts, caused recessions – twice in the last nine years.

Let’s look at the Internet bubble. The rules on Wall Street 30 years ago for floating a new IPO, or new stock, mandated that the firm in question had to be in business for five years and profitable for three consecutive years. Only then could stock in that company be sold to the public. Then the profitability clause was shrunk to just one year of profits before new stock could be sold – and before you knew it, stock could be sold in new companies without any reasonable expectation that the firm would ever make money. As Matt Taibbi points out in his exceptional Rolling Stone article, “The Great American Bubble Machine,” in the first half of 2000 Goldman Sachs floated new stock in 18 companies – 14 of which were money losers.

This was bad business in our not-too-distant past, and it had predictable results. The stock market boomed because the public didn’t know the underwriting rules for new issuance of stock had been changed; and when it burst, $5 trillion worth of the public’s wealth was wiped out in the NASDAQ alone. However, not everyone lost money when the Internet Bubble collapsed: Insiders knew the real score, and they sold their holdings at peak, or near peak prices. Yes, they pocketed huge profits, while the media rushed to report that everyone’s 401K retirement plans were devastated – but not how or why it had happened.

And yes, Wall Street also changed the underwriting rules for mortgages, which led to the Housing Bubble. Thanks to those changes, mortgages were written on overvalued homes (whose prices leapt because of the housing “mania”) for individuals who couldn’t qualify when these “innovative new” loans would reset in the future to much higher payments.

As with the popping of the Internet Bubble, paying for the subsequent housing carnage fell squarely into our laps.

Quit Listening to the Culprits!

The problem is twofold. First, because the public does not know how this was done, we cannot force it to be permanently corrected. Our consequent doubt and cautious thrift has the real economy lagging.

Second, because we can see that Washington is not going to correct this, we have lost our faith – and Americans’ faith in our country and way of life has always been our nation’s greatest asset.

So retail continues to lag – automobiles, clothing and just out-of-the-blue impulse purchases. Advertising suffers, and that is destroying our media. Yes, the real world that we all live in, work in and spend in is diminished, because we don’t believe our nation’s biggest problem is being addressed.

All of this is easily fixed, and it’s in our nature to do so. If we’d just refuse to be sidetracked, distracted by things that have nothing to do with the problem, or have zero impact on our daily reality – if we’d just force the focus where it needs to be — we could do it easily. -Especially if we quit listening to the culprits.

Ed Wallace is a recipient of the Gerald R. Loeb Award for business journalism, given by the Anderson School of Business at UCLA, and is a member of the American Historical Society. He reviews new cars every Friday morning at 7:15 on Fox Four’s Good Day, contributes articles to BusinessWeek Online and hosts the top-rated talk show, Wheels, 8:00 to 1:00 Saturdays on 570 KLIF. E-mail: wheels570@ sbcglobal.net and read all of Ed’s work at www.insideautomotive.com

Complete article at:

Socialism and Financial Innovation

==========

Weekend Edition: Minimum Wage Rise

More Money or Fewer Jobs?

NPR

Minimum Wage Rise

by Marilyn Geewax

July 19, 2009

This Friday, the federal minimum wage will rise to $7.25 an hour, up from $6.55.

Conservative economists are worried that the government-mandated raise will force small businesses to lay off workers….

But liberal economists say this summer is the perfect time for a wage hike: It will put more money into the pockets of people who need it most….

DAVID CARD, AN ECONOMIST AT THE UNIVERSITY OF CALIFORNIA, BERKELEY, says much of the research done on the minimum wage is driven by political beliefs rather than data. “This is one of those ideological battlegrounds,” he said. “We constantly see papers thrown up that purport to show a big difference” in employment after a wage hike, he said.

Card himself co-authored a famous study on the impact of a minimum wage hike in New Jersey’s fast-food industry in the 1990s. His study found no significant change, good or bad, in the total number of jobs….

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The Minimum Wage and Unemployment: There Is Research on This Topic

July 27, 2009

In its top of hour news segment today, Morning Edition joined the media chorus telling us that the minimum wage hike could increase unemployment and prolong the recession. (Here’s USA Today’s entry.)

There is no doubt that employers of low-wage earners are unhappy about paying higher wages, just as they are unhappy about the rise of health insurance premiums every year. (For employers who provide coverage, the latter will be a much greater expense.) However, there is little reason to believe that it will result in substantial job loss.

The impact of a rise in the minimum wage on employment is one of the most heavily researched topics in economics. Virtually all of this research shows that it will have little or no impact on employment. It would have been useful if the news reports had mentioned this research instead of treating this topic as a he said/she said, implying that those who claim that it will lead to large rises in unemployment are on an equal footing with those who emphasize the benefits to low wage earners. Reporters should have the time and expertise to find the evidence on this issue, readers do not.

From: The Beat the Press Weekly Roundup http://prospect.org/csnc/blogs/beat_the_press

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US Escalates War Plans In Latin America

US Military: After Iraq, Latin America
By Rick Rozoff
Global Research, July 23, 2009
Stop NATO http://groups.yahoo.com/group/stopnato

On June 29 US President Barack Obama hosted his Colombian counterpart Alvaro Uribe at the White House and weeks later it was announced that the Pentagon plans to deploy troops to five air and naval bases in Colombia, the largest recipient of American military assistance in Latin America and the third largest in the world, having received over $5 billion from the Pentagon since the launching of Plan Colombia nine years ago.

Six months before the Obama-Uribe meeting outgoing US President George W. Bush bestowed the US’s highest civilian honor, the Medal of Freedom, on Uribe as well as on former British Prime Minister Tony Blair and former Australian Prime Minister John Howard.

A press account of the time expressed both shock and indignation at the White House’s honoring of Uribe in writing that “Despite extra-judicial killings, paramilitaries and murdered unionists, Colombia’s President Uribe has won the US’s highest honor for human rights.” [1]

The same source substantiated its concern by adding:

“Colombia is the most dangerous country on earth for trade unionists. In 2006, half of all union member killings around the world took place there. Since Uribe came into power in 2002, nearly 500 have been murdered. In reply to concern about the assassinations, Uribe dismissed the victims as ‘a bunch of criminals dressed up as unionists.’

“More than 1,000 cases of illegal killings by the military are being investigated. There are dozens of cases of soldiers taking innocent men, murdering them and dressing them up as enemy combatants. Hundreds of
members of the security forces are thought to have taken part in such activities.” [2]

Colombia: Forty Year War

For over forty years Colombia, the last of Washington’s remaining “death squad democracy” clients in the Western Hemisphere, has waged a relentless counterinsurgency war against the Revolutionary Armed Forces of Colombia (FARC} and an equally ruthless campaign with its US-trained and -equipped military and allied paramilitary formations against trade union, peasant, indigenous and other organizations. An estimated 40,000 have been killed and 2 million displaced as a result of the fighting.

In 1985 the FARC laid down its arms and entered into a peace process with the government of Belisario Betancur.

It helped found the Patriotic Union to participate in electoral and other peaceful activities but within several years as many as 5,000 Patriotic Union elected officials, candidates, trade unionists, community organizers and other activists were murdered by Colombian security forces and government-linked right-wing death squads, especially the notorious United Self-Defense Forces of Colombia (AUC) and its late leader Carlos Castano. Eight congressmen, 70 councilmen, dozens of deputies and mayors and hundreds of trade unionists and peasant leaders were slain and in 1989-1990 two of its presidential candidates were murdered within seven months.

Faced with complete extermination, the FARC rearmed and sought refuge in the southeast of the country.

In 1998 then Colombian President President Andres Pastrana permitted FARC a 16,000 square mile safe haven in the Caqueta Department.

The US then set its sights on an intensive counterinsurgency campaign to destroy the FARC infrastructure in the region and to uproot and destroy the organization altogether.

In January of 2000 STRATFOR, not a source known for opposing war, warned:

Complete article at:

Latin America

==========

Quillen: Wal-Mart health care

By Ed Quillen
The Denver Post
07/26/2009

In any conflict, it’s good to know what the enemy is thinking, so I found the Republican talking points on health-care reform.

Here’s one: “We cannot allow politicians and special interests to stand between patients and the care they need. The American people deserve the freedom to choose the health care that is best for their families.”

But politicians already “stand between patients and the care they need,” as with the war on drugs, which removes medical decisions (such as the treatment of chronic pain) out of doctors’ and patients’ hands.

As for those special interests affecting health care, it’s hard to watch TV without seeing an ad about some newly discovered ailment that needs instant and vigorous treatment and the advice to “ask your doctor about Xylobetazine” followed by the caution that “side effects may include nausea, flatulence, incontinence, hypoxia, cardiac dysfunction and cerebral necrosis.” Is the maker of Xylobetazine not a special interest? Is it not trying to affect health care?

But I don’t hear many Republican complaints about these affronts to their talking points. They also state that “a government takeover of health care . . . would have devastating consequences for families and small businesses.”

To examine the extent of this devastation, consider the country the Republicans love to hate, France, with its horrible government health care.

The average life expectancy at birth in France is 80.9 years. Here it’s 78.1. The French infant mortality rate is 3.4 per 1,000 live births. Ours is 6.7.

The French spend 11.1 percent of their gross domestic product on health care. We spend 15.1 percent. In annual dollars per person, they spend $3,248 and we spend $6,071. We pay considerably more to get shorter lifespans and more dead babies. Talk about devastating consequences.

But the GOP derailed President Harry Truman’s national health insurance plan, proposed in 1945, as well as President Bill Clinton’s effort in 1994.

So I wouldn’t bet against the Republican opposition this time, no matter how persuasive President Barack Obama might be. But I have read that Wal-Mart, America’s largest private employer, supports a national health-care plan.

And if we don’t get one, perhaps Wal-Mart could step in with its own plan, offered to the public. The company has an immense infrastructure in place, with 4,269 retail units scattered throughout the country. In general, the stores are open for extended hours, thereby allowing people to come in without taking time off from their paying jobs.

So why not a Wal-Mart health care plan, based on a clinic in every store? The service would be rather spartan — i.e., waiting in line rather than making appointments — but if you’re in a Wal-Mart, you’re used to being in line anyway.

To lower costs, physicians could be imported from India and China. Therapies would range from herbs and acupuncture to traditional American pharmaceuticals. Unlike the federal government, though, Wal-Mart would use its buying power to drive drug prices down, down, down. Wal-Mart also has the clout to negotiate great deals with hospital chains — or to open its own hospitals if they balked.

So, if we can’t do it the French way, Wal-Mart could do it the American way, with a coverage plan offered to the public that featured no-frills service, ruthless competition and relentless cost-cutting. You know, “Save money, live better.”

Ed Quillen (ekquillen@gmail.com) of Salida is a freelance writer and history buff, and a frequent contributor to The Post.

Complete article at:

Wal-Mart health care

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Knee-jerk word association watch: Conservative media link Obama’s Gates comments to … ACORN

Repeating a pattern of invoking ACORN to attack progressives, conservative media figures have brought up the organization in their discussions of President Obama’s July 22 prime-time press conference, in which he took a question regarding the arrest of Henry Louis Gates Jr.

Read More

http://mediamatters.org/items/200907240037?lid=1053739&rid=32244169

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NEW PULSE POSTED

Monday, July 20, 2009

DOE Pulse

That’s the url to the July 20, 2009, issue of DOE Pulse. Pulse is a newsletter about accomplishments at the Department of Energy’s national laboratories. Here is some of what you’ll find in this issue:

* SLAC: Twin star simulation

* Fermilab: ArgoNeuT’s first neutrinos

* Pacific Northwest: Molecular clusters

* Sandia: Sun collectors

* PPPL: Fusion art

* Savannah River: Moth’s solar secrets

Researcher profile: Biophysicist Wayne Hendrickson’s work at Brookhaven Lab

Feature: Buzzing bees test NETL’s CO2 monitors

==========

Biden on Obama: ‘Finally, Mr. Perfect Makes a Gaffe’

Andy Borowitz
BorowitzReport.com
July 26, 2009

Just days after President Barack Obama stirred controversy with his remarks about the Henry Louis Gates case, Vice President Joe Biden said that Mr. Obama’s troubles were “a cause for celebration for me, because I was like, finally, Mr. Perfect makes a gaffe.”

The Vice-president said he has been silently seething as the President has slapped him on the wrist for a variety of gaffes in his first six months in office, “but now that shoe’s on the other foot and I for one am laughing my ass off.”

Mr. Biden said that he personally knew better than to comment on the Gates case, adding, “Trying to find something noncontroversial to say about race is like trying to find a 7-Eleven that’s not run by a Pakistani.”

Elsewhere, the FBI searched Alaska Gov. Sarah Palin’s home for missing pronouns.

Follow Andy Borowitz on Twitter:

BorowitzReport

==========

three thousand words

Joel Pett
Lexington Herald-Leader
Jul 27, 2009

Milt Priggee: that’s what I get paid the big bucks!
(www.cagle.com)

Tom the Dancing Bug(Ruben Bolling): Sacha Baron Cohen as Sarah Palin
(politicalirony.com)

Monday July 27, 2009 – What we learn from history is that we fail to learn from history

Monday, July 27th, 2009

LIMBAUGH’S LIES SABOTAGE THE HEALTH REFORM DEBATE

By Sue Wilson, AlterNet

In conservative states, right-wing talk show hosts are spreading lies about reform. No wonder Blue Dog Dems are
blocking health care overhaul.

LIMBAUGH’S LIES

==========

Conservative media ignore reality in invoking “rationing” bogeyman

Reading from GOP playbooks, media conservatives are invoking the specter of “rationing” in arguing against health care reform efforts.

Read More

Rationing

==========

Perry raises possibility of states’ rights showdown with White House over healthcare

23 Jul 2009

Gov. Rick Perry (R-nutjob), raising the specter of a showdown with the Obama administration, suggested Thursday that he would consider invoking states’ rights ‘protections’ under the 10th Amendment to resist the president’s healthcare plan, which he said would be “disastrous” for Texas. Interviewed by conservative talk show host Mark Davis of WBAP/820 AM, Perry said his first hope is that Congress will defeat the plan. But should it pass, Perry predicted that Texas and a “number” of states might resist the federal health mandate.

At:

Gov. Rick Perry



From: CLG News

==========

BILL KRISTOL’S MESSAGE TO GOP ON HEALTH CARE REFORM: “GO FOR THE KILL”

By Rachel Weiner, Huffington Post

Kristol: “Throw the kitchen sink at the legislation now on the table, drive a stake through its heart … and kill it.”

BILL KRISTOL’S MESSAGE

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SENATE COMMERCE COMMITTEE RELEASES INVESTIGATIVE STAFF REPORT

Washington, D.C.—Today, Chairman of the U.S. Senate Committee on Commerce, Science and Transportation John D. (Jay) Rockefeller IV (D-WV) announces the release of an investigative staff report, Underpayments to Consumers by the Health Insurance Industry.

INVESTIGATIVE STAFF REPORT

==========

Why Are Economists So Bad at Forecasting?

Time Magazine

Bad at Forecasting

By Barbara Kiviat

July 17, 2009

In recent weeks, the Obama Administration has taken heat for having underestimated how bad the economy would get. With the unemployment rate surpassing the Administration’s best predictions, ABC’s George Stephanopoulos asked Vice President Joe Biden if the stimulus package was too small or if the White House simply didn’t have a handle on the seriousness of our economic ills. When an interviewer posed a similar question on National Public Radio, the chair of the President’s Council of Economic Advisers [and UC BERKELEY PROFESSOR ON LEAVE], CHRISTINA ROMER, replied, “It’s important to realize that none of us has a crystal ball.”…

Highlighting the imprecision embedded in any forecast would help when we then go to, say, evaluate whether a public policy initiative — like a $787 billion stimulus package — is changing the outcome of events. Is unemployment lower than it would have been otherwise? A good starting point is being realistic about our limits of knowing what unemployment would have been otherwise.

Yet admission of that sort of nuance may wind up undermining part of the appeal of forecasts — how a single number can quickly jump from an economist’s spreadsheet to a politician’s stump speech or a businessman’s PowerPoint presentation. “Forecasts satisfy a deep psychological need that we live in a somewhat predictable and controllable world,” says PHILIP TETLOCK, A PROFESSOR OF ORGANIZATIONAL BEHAVIOR AT THE UNIVERSITY OF CALIFORNIA, BERKELEY’S HAAS SCHOOL OF BUSINESS. “Those are essential stories. People just find the truth” — that the future is unknowable — “too dissonant.”

==========

Reader debate on where economics went wrong Dismay and realism over the dismal science

Economist.com

dismal science

July 21, 2009

Economists and other readers debate the flaws in economics, and in our articles on its failings

Our briefings … and accompanying leader discussing what went wrong with economics have generated much comment, on our website and elsewhere. Writing in his blog, BRAD DELONG OF THE UNIVERSITY OF CALIFORNIA, BERKELEY, said he thought we had given economists too much credit when we rejected arguments that their discipline as a whole is discredited. We insisted that much of its body of knowledge “has no link to the financial crisis and remains as useful as ever.” Mr DeLong responds that when you have high-calibre economists like Robert Lucas of Chicago University and Robert Barro of Harvard, “claiming that there are valid theoretical arguments proving that fiscal stimulus simply cannot work, not even in a deep depression—even though they cannot enunciate such theoretical arguments coherently—it is entirely fair for outsiders to conclude that academic economics as a profession is useless.”…

==========

Minimum Wage Raise

Thursday, July 23, 2009

On Friday, the federal minimum wage is set to rise to $7.25 an hour, from $6.55.

RICHARD KETRING, vhsclean@charterinternet.net

Ketring is president of VHS Cleaning Services in Ashland, Wisconsin. He said today: “I signed the Business for a Fair Minimum Wage statement in favor of the minimum wage increase. The employees of my company are the backbone of the business. When we raise the incomes of the lowest paid employees, the money is immediately spent and flows instantly into the economy. The increased income can also make for less turnover and more reliable workers as it reduces the stress that many minimum wage workers experience as they work extra jobs, juggle day care, work when sick or don’t receive needed medical care — causing further distress later.”

From: Institute for Public Accuracy

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Now Legal Immunity for Swine flu Vaccine Makers

By F. William Engdahl
Global Research, July 20, 2009

The US Secretary of Health and Human Services, Kathleen Sebelius, has just signed a decree granting vaccine makers total legal immunity from any lawsuits that result from any new “Swine Flu” vaccine. Moreover, the $7 billion US Government fast-track program to rush vaccines onto the market in time for the Autumn flu season is being done without even normal safety testing. Is there another agenda at work in the official WHO hysteria campaign to declare so-called H1N1 virus—which has yet to be rigorously scientifically isolated, characterized and photographed with an electron microscope—the scientifically accepted procedure—a global “pandemic” threat?

The current official panic campaign over alleged Swine Flu danger is rapidly taking on the dimensions of a George Orwell science fiction novel. The document signed by Sebelius grants immunity to those making a swine flu vaccine, under the provisions of a 2006 law for public health emergencies.

Not so sage SAGE

That is once the WHO in Geneva, on recommendation of the WHO’s Strategic Advisory Group on Immunizations, declared H1N1 to be Phase 6 or Pandemic, automatic emergency health response programs could be activated even in countries such as Germany where reported outbreaks of even “suspected” H1N1 can be counted to date on the fingers of slightly more than one hand.

The WHO’s SAGE is also worth scrutiny. Its Chairman since 2005 has been the UK Director of Immunization at the British Department of Health, Dr David Salisbury. In the 1980′s Salisbury reportedly drew major fire for backing a massive vaccination of children with a multiple MMR vaccine manufactured by the predecessor company of GlaxoSmithKline. That vaccine was pulled off the market in Japan after significant numbers of children developed adverse reactions to the vaccine and the Japanese government was forced to pay significant compensation to the victims. In Sweden the MMR vaccine of GlaxoSmithKline was removed after scientists linked it to outbreaks of Crohn’s disease. Apparently that had little impact on WHO SAGE chairman Salisbury .

According to one independent UK investigator, Alan Golding, who obtained Freedom of Information documents on the case, in “1986 Trivirix, an MMR compound containing the Mumps Urabe strain AM-9, was introduced in Canada to replace MMR I. Concerns regarding the introduction of MMR in the UK are recorded in the minutes of the Joint Working Party of the British Paediatric Association and the Joint Committee on Vaccination and Immunization (JCVI) Liaison Group on June 26th of that year. Such concerns were soon to prove well grounded, as reports began to come in of an increased incidence of aseptic meningitis in vaccinated individuals. Ultimately, all MMR vaccines containing the Urabe strain of mumps were withdrawn in Canada in early 1988. This was before Urabe containing vaccines were licenced by the Department of Health for use in the UK …”

The report adds, “Smith-Kline—French, the pharmaceutical company who became Smith-Kline-Beecham and were involved in UK manufacture at that time, were concerned about these safety issues and were reluctant to obtain a UK license for their Urabe-containing vaccines. As a result of their ‘concern’ that children might be seriously damaged by one of their products, they requested that the UK government indemnify them against possible legal action that might be taken as a result of ‘losses’ associated with the vaccine, which by then was known to carry significant risk to health. The UK government, advised by Professor Salisbury and representatives from the Department of Health, in it’s enthusiasm to get a cheap MMR onto the market, agreed to this request.”

Today the same Dr Salisbury is advocating global proliferation of untested H1N1 vaccines, also manufactured by the same firm, now called GlaxoSmithKline.

The last phoney Swine Flu Disaster

The last time the US Government faced a new swine flu virus was in 1976. Thousands filed claims contending they suffered side effects from the shots. This time, the government has taken steps to prevent any possible legal remedy should thousands of US citizens suffer severe complications as a result of being given untested vaccines.

In 1976 President Gerald Ford, facing a difficult re-election campaign, was advised by the head of the CDC, David Sencer, to launch a mass national vaccination. As today with H1N1 Swine Flu, Sencer also used the scare of the alleged 1918 flu pandemic. Notably, some scientific researchers maintain that the deaths during the flu wave of 1918-1919, in the aftermath of the ghastly First World War, came not from any virus but from the governmental campaigns of mass vaccination against “Spanish Flu.” Interestingly, the Rockefeller University and Foundation was in the middle of that event as well.

Cases of what was then called swine flu were found in soldiers at Fort Dix , N.J. in 1976, including one death. That death, whose true cause is in dispute as the soldier, sick with influenza was put on a forced march despite and fell dead, was used by Sencer to convince Ford to launch one of the most infamous public health fiascos in US history, forcing Sencer’s resignation as CDC head. Federal officials vaccinated 40 million Americans during a national campaign. A pandemic never materialized, but thousands who got the shots filed injury claims, as they contracted a paralyzing condition called Guillain-Barre Syndrome or other side effects. At least 25 people died after receiving the vaccine died and 500 developed Guillain-Barre syndrome, an inflammation of the nervous system which can cause paralysis and be fatal. The US Government was forced to pay damages after vaccination victims made it a national scandal. In the end the 1976 Swine Flu vaccine proved far worse than the disease.

Sencer was fired in 1977 for the fiasco but by then the damage had already been done.

No Safety Test? Don’t worry, be happy…

The story gets worse. Now that the Obama Administration has signed a document of immunity from legal prosecution, the FDA in the United States and UK health authorities have decided to let Big Pharma put vaccine products onto the market before any tests of the possible harmful side effects of the vaccines are even known.

The first doses of swine flu vaccine will be given to the public before full data on its safety and effectiveness become available. The untested “pandemic” vaccines will be spread over two doses in a higher quantity, and one brand reportedly will contain a chemical additive, an adjuvant, to make it “go further,” dramatically potentially increasing the risk of side-effects.

Children will be among those first in line for the shots and may get the vaccine more than a month before trial results are received.

In the UK the government’s National Health Service, NHS, has been ordered to plan for a worst-case scenario in which swine flu might cause 65,000 deaths over the coming winter, including several thousand deaths among children.

The British Government has placed advance orders for 132 million doses of vaccine with two manufacturers, GlaxoSmithKline and Baxter, who have licensed “in advance” three “core” vaccines in preparation for a pandemic, conveniently enough even though we are told by WHO and epidemiologists that we cannot prepare in advance for what could be a more ominous mutation of the currently very mild H1N1 problem.

Curiously enough, a full year before any reported case of the current alleged H1N1, the major pharmaceutical company, Baxter, filed for a patent for H1N1 vaccine: Baxter Vaccine Patent Application US 2009/0060950 A1. Their application states, “the composition or vaccine comprises more than one antigen…..such as influenza A and influenza B in particular selected from of one or more of the human H1N1, H2N2, H3N2, H5N1, H7N7, H1N2, H9N2, H7N2, H7N3, H10N7 subtypes, of the pig flu H1N1, H1N2, H3N1 and H3N2 subtypes, of the dog or horse flu H7N7, H3N8 subtypes or of the avian H5N1, H7N2, H1N7, H7N3, H13N6, H5N9, H11N6, H3N8, H9N2, H5N2, H4N8, H10N7, H2N2, H8N4, H14N5, H6N5, H12N5 subtypes.”

The application further states, “Suitable adjuvants can be selected from mineral gels, aluminium hydroxide, surface active substances, lysolecithin, pluronic polyols, polyanions or oil emulsions such as water in oil or oil in water, or a combination thereof. Of course the selection of the adjuvant depends on the intended use. E.g. toxicity may depend on the destined subject organism and can vary from no toxicity to high toxicity.”

With no legal liability, could it be that Baxter is preparing to sell hundreds of millions of doses containing highly toxic aluminium hydroxide as adjuvant? Perhaps it is time to demand that all leading officials of WHO, SAGE and CDC, the US Obama Administration, Cabinet officials and members of Congress who voted the $7 billion H1N1 emergency funds and who have gone along with the declaration of pharmaceutical company immunity from subsequent prosecution for damage from their products. The same should apply as well for other national health bodies demanding its citizens take the H1N1 vaccine from GlaxoSmithKline or Baxter to see if it is really safe.

And WHO stopped even tracking H1N1

Another indication that the world is being taken for colossal suckers in the entire WHO Swine Flu scare scenario, the WHO itself, the world body entrusted to monitor outbreaks of so-called pandemics or even epidemics worldwide, has just decided to stop tracking Swine Flu or H1N1 Influenza A as they prefer to name it now, so as not to offend Smithfield Foods and other industrialized pig CAFO producers.

The World Health Organization in a “briefing note” posted on their Web site posted the baffling notice that they would no longer track outbreaks of H1N1. The last WHO update, issued July 6, showed 94,512 confirmed cases in 122 countries, with 429 deaths. The WHO apparently claims that the numbers of laboratory-confirmed cases were actually meaningless.

The briefing note said countries would still be asked to report their first few confirmed cases. It also said countries should watch for clusters of fatalities, which could indicate the virus had mutated to a more lethal form. Other “signals to be vigilant for,” it said, were spikes in school absenteeism and surges in hospital visits. The Atlanta CDC has also agreed to the WHO count drop. Dr. Michael T. Osterholm, director of the Center for Infectious Disease Research and Policy at the University of Minnesota, admits that the existing tests to confirm H1N1 Influenza A are not even certain, but rather hit-or-miss. “Bad measures can be worse than no measures at all,” he stated. So the WHO has decided to drop tests that anyway did not give a scientific picture of who had H1N1 or not, and as well they have decided to drop counting any test results or cases of H1n1 around the world with the comment that “we can assume almost all cases are H1N1 Swine Flu. This is science on which basis we are told to vaccinate our young? Whoah there…Not with our children.

Complete article at:

Swine flu Vaccine Makers

Companies reaping the swine flu windfall

23 Jul 2009

The effects of swine flu are already showing up in higher profits for makers of vaccines and antiviral drugs as the first pandemic of the 21st century makes its way onto corporate bottom lines. Vaccine and flu drug orders lifted drugmaker GlaxoSmithKline to a better-than expected quarterly profit, the company said on Wednesday. Glaxo predicts flu vaccine sales will spur second-half strength.

At:

swine flu windfall

==========

And now for the important news ….

By Argus Hamilton

Senate Democrats nixed a measure permitting drivers to carry concealed weapons across state lines. Laws like this can make a real difference. For instance, abrupt lane changes has replaced heart disease as the number-one cause of death in California.

http://www.JewishWorldReview.com

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three thousand words

MStreeter
Savannah Morning News
Jul 26, 2009

Matt Davies: Legislative Rationing
(davies.lohudblogs.com)

John Sherffius: health care waterloos
(www.cagle.com)

Sunday July 26, 2009 – Bill: So-crates – “The only true wisdom consists in knowing that you know nothing”. Ted: That’s us, dude. – Bill & Ted’s Excellent Adventure

Sunday, July 26th, 2009

C St.: where scandal meets spirituality

By: Lisa Lerer and Kathryn McGarr

The stately brick house has become ground zero for Republican sex scandals.

more: http://www.politico.com/news/stories/0709/25139.html

==========

RALPH REED AIMS TO RESURRECT POLITICAL MOVEMENT

“This is not going to be your daddy’s Christian Coalition” boasts disgraced religious-right operative

The man once dubbed “the right hand of God” who energized Christian conservatives, took over the Republican Party and helped elect whole slates of GOP candidates is back.

Ralph Reed, former head of televangelist Pat Robertson’s Christian Coalition, said that his new venture — the Faith and Freedom Coalition — will be “younger, hipper, less strident, more inclusive,” and will “harness the 21st century that will enable us to win in the future.”

“This is not going to be your daddy’s Christian Coalition,” gushed Reed.

Once the baby-faced, squeaky clean image of an energized religious right in America, Reed compared his return to the national political stage with Steve Jobs coming back to Apple. “You have to re-invent
it,” Reed told the Atlanta Journal Constitution. “It’s the political analog to the iPod and the iPhone. It would be cool. It would be transformative. It would transform our politics and bring younger
people to our ranks. ”

AANEWS will continue to cover this important developing story; but despite the glitzy techno-talk and promise of exclusivity, the Faith and Freedom Coalition may end up like its predecessor — promoting
an authoritarian, deceptive message of theocratic intolerance.

http://www.alternet.org/politics/141500/the_pentecostal_ideology%3A_palin%27s_faith%2C_spiritual_warfare%2C_and_watching_god_with_%22on-demand%22_tv/

==========

MY WOMB FOR GOD’S PURPOSES: THE PERILS OF UNASSISTED CHILDBIRTH IN THE QUIVERFULL MOVEMENT

By Kathryn Joyce, Religion Dispatches

Distrustful of experts, many Quiverfull followers are leaving childbirth to God. The recent death of a newborn,
however, exposes a growing rift.

http://www.alternet.org/sex/141499/my_womb_for_god%27s_purposes%3A_the_perils_of_unassisted_childbirth_in_the_quiverfull_movement_/

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INTELLIGENT DESIGN’S LATEST SNEAKY ASSAULT ON SCIENCE

By Matt Zeitlin, Campus Progress

One of the architects behind the unscientific intelligent design movement is finding success in referencing its
greatest enemy: Charles Darwin.

http://www.alternet.org/belief/141423/intelligent_design%27s_latest_sneaky_assault_on_science/

==========

Motion Filed To Keep Bridgeport Priests’ Sexual Abuse Documents Sealed And more …

Hartford Courant – United States

By DAVE ALTIMARI
The Hartford Courant

More than 12000 documents detailing sexual abuse charges against priests from the Roman Catholic Diocese of
Bridgeport …

http://www.courant.com/news/breaking/hc-diocese-churchabuse0718.artjul18,0,5773231.story

Area priest accused of sex abuse

Oneonta Daily Star – Oneonta,NY,USA

By Patricia Breakey

MIDDLETOWN _ A Margaretville priest was charged Thursday with 20 charges connected to the alleged sexual abuse of six
males. The Rev. …

http://www.thedailystar.com/local/local_story_198040035.html

Catholic priest convicted of abusing Md. altar boy

The Associated Press

The former part-time youth minister at Mother Seton parish also must register as a sex offender under a plea agreement announced Monday. …

http://www.google.com/hostednews/ap/article/ALeqM5jtn3mK5hh0Aub745LDZNL8bhsFhwD99DQLNG1

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three thousand words

Bruce Beattie
Daytona Beach News-Journal
Mar 11, 2009

JEFF SWENSON: monotheism
(americanhumanist.org/)

MESSAGE 101 DELETED … NEW MESSAGE …”HELLO BALAAM, IT’S DONKEY AGAIN, JUST WANTED TO CHAT FOR A WHILE, MAYBE DISCUSS WHAT A JERK YOU CAN BE…”
(www.reverendfun.com)