Month: July 2009

Eric Holder Agonistes

So, Newsweek magazine has an article relating the internal struggle of Attorney General Eric Holder with regard to things like torture and illegal wiretapping. He is horrified at what has been done, but he understands Barack Obama’s desire to cover all this stuff up so that he violate the constitution and the supervision of congress too move forward and not look back (2nd and last graph of the article):

These are not just the philosophical musings of a new attorney general. Holder, 58, may be on the verge of asserting his independence in a profound way. Four knowledgeable sources tell NEWSWEEK that he is now leaning toward appointing a prosecutor to investigate the Bush administration’s brutal interrogation practices, something the president has been reluctant to do. While no final decision has been made, an announcement could come in a matter of weeks, say these sources, who decline to be identified discussing a sensitive law-enforcement matter. Such a decision would roil the country, would likely plunge Washington into a new round of partisan warfare, and could even imperil Obama’s domestic priorities, including health care and energy reform. Holder knows all this, and he has been wrestling with the question for months. “I hope that whatever decision I make would not have a negative impact on the president’s agenda,” he says. “But that can’t be a part of my decision.”

…..

But in late June Holder asked an aide for a copy of the CIA inspector general’s thick classified report on interrogation abuses. He cleared his schedule and, over two days, holed up alone in his Justice Department office, immersed himself in what Dick Cheney once referred to as “the dark side.” He read the report twice, the first time as a lawyer, looking for evidence and instances of transgressions that might call for prosecution. The second time, he started to absorb what he was reading at a more emotional level. He was “shocked and saddened,” he told a friend, by what government servants were alleged to have done in America’s name. When he was done he stood at his window for a long time, staring at Constitution Avenue.

Why are we seeing a report like this? What is driving the reports of how Eric Holder is agonizing over his dual obligations to enforce the law and to do the bidding of Barack Obama?

This is an attempt by Eric Holder to retain some dignity when he makes the wrong choice. He will not be appointing a special prosecutor, nor will he be authorizing any future investigations from within the Department of Justice on these matters, because it is politically inconvenient for Barack Obama and His Stupid* Minions, and he wants to ensure that his reputation takes as small a hit as possible.

He is going to do the craven and political thing, and not the right thing, but he wants all of us to know, particularly those inside the Washington Beltway, that he really agonized over it.

*It’s stupid, because they do not realize that not prosecuting Republican law breakers will not create any bipartisanship, but rather, it will create a sense of impunity that will fuel ‘Phant attacks against the President. We only have to look at Bill Clinton’s experience, where his decision not to pursue Iran-Contra led to a heretofore unknown level of vitriol from the Republicans.

Is the Pentagon Actively Working to Sabotage Indian Gripen Bid?

The story is that SAAB went to Israel Aerospace Industries (IAI) looking for a partnership on on developing its Gripen NG, and that the US Government forced IAI to pull out, claiming, “That Western technology in Israeli hands would make its way to the Indians.”

IAI was supposed to develop, “radar, communications and electronic-warfare – for the plane.” (See also here

According to Flight International, SAAB has stated that, “Israel was one of several options“, for the radar, though a report by Defense News categorically denies the report:

“Our AESA focus is on our partnership with Selex Galileo, which we reached in March,” a Saab spokesman said. “Together, we will jointly develop a new radar based on Selex’s AESA Vixen and PS-05/A technologies. Saab is not involved in other AESA programs.”

I’m inclined to believe that the reality falls somewhere in between.

SAAB already has a deal with Selex on the radar, and going with a second source at this time would be a major drain on resources, but the use of Israeli comm and ECM gear, particularly the latter, would be a very big selling point.

I would note that there is some history behind this that leads me to believe that there was some US arm twisting regarding the Israelis on something, because when the Gripen was sold to South Africa some years back, the US blocked the sale on “technology transfer” issues, the South African government decertified all the US bidders on all its defense programs, and State/DoD backed down, so South Africa is now flying Gripens.

Additionally, this could be a bit of marketing by the SAAB and IAI: I can see nothing that would more infuriate the Indian defens(c)e establishment than the idea that the US was refusing tech transfers to them, and such a meme would disadvantage the American competitors, the F/A-18 E/F and the F-16 IN (basically a block 60).

GM Exits Bankruptcy

That was blisteringly fast.

Normally, you can’t go through a re org for an ice cream stand this quickly, but they will be back, courtesy of Congressmen who are bought and paid for by automobile dealers.

221 of said legislators have cosponsored a bill reversing GM and Chrysler’s cutting tyheir dealer rolls.

It’s not surprising. Auto dealers are always big political donors, having their thumbs on the scales is part of the business model, so now they are showing their clout.

What Barry Ritholtz Said

In his post, Dear Lord, Anyone but Lawrence Summers . . . , about the possibility of Larry being Fed chair:

I read articles like these with dread and horror:

So help me God, if Obama nominates this incompetent, lacking-in-judgment jackboot to the FOMC chair, then in 2012, I will write in George W. Bush’s name for President . . .

I’m not that angry, but writing in Ron Paul’s name is beginning to look appealing.

BTW, in his description of Mssr. Summers, he left off “corrupt.”

The inestimable Mark Ames wrote about that almost a year ago.

Economics Update

So, the Michigan swurvey of consumer sentiment is down. Perhaps the average person knows something that the “green shoots” folks don’t, or maybe it’s that average people pay more attention to the unemployment rate, which is a lagging indicator.

One interesting thing is that U.S. trade deficit in May fell to its lowest level in a decade, and it was falling imports, along with an increase in exports, that appears to have driven this.

The implication here, assuming that this is not a 1 month blip in the stats, is that the US is lagging the rest of the world in economic recovery, which is not what it has been historically.

It does seem that investors are heading for safety, which drove bond prices up, and bond yields down.

These concerns have led to the biggest weekly drop in oil prices in 6 months, and a strengthening of the Yen and dollar, as a result of demand and safety concern.

Obama is Dog Whistle Gay Bashing

Normally, I’m not a big fan of protest theatrics, to my mind, Code Pink frequently does more harm than good to the cause, but I have to approve of ACT-UP’s chaining themselves to the Capitol Rotunda today.

What’s going on here is that during the campaign, Barack Obama promised to lift the ban on funding needle exchange programs, which:

  • Do not encourage drug use.
  • Reduce AIDS transmission.
  • Reduce the cost to society.
  • Provide an entry point with addicts for counseling.

The problem is that the White House submitted a budget to Congress still contained the ban on federal funding for needle exchange programs.

So this wasn’t even a matter of his not fighting for the program, it’s a matter of him submitting language reauthorizing a program that he explicitly campaigned against in his budget.

A president’s budget is purely advisory. Congress can, and does, amend it, or ignore it, as they see fit, but he is unwilling to even leave out a bit of language authorizing a program he claims to oppose.

I’m with John Aravosis’s take on this

  1. The candidate promised to lift the ban.
  2. The White House Web site reaffirmed the president’s commitment to lifting the ban.
  3. The White House Web site no longer reaffirms his commitment to lifting the ban.
  4. The president now refuses to lift the ban.
  5. The president actually affirmatively makes things worse by administratively supporting [and] defending the ban.
  6. The spokesman reiterates the president’s support for lifting the ban, some day, once Congress gets around to it.

There is a pattern to all this, whether it’s his sucking up to homophobic screeds “reformed homosexual” Donnie McClurkin, using legal arguments equating gay marriage with pedophilia and incest, refusing to take administrative actions to even modestly impede the anti-gay witch hunt in the military, and now affirmatively submitting anti-gay legislation to Congress.

Either there is some real homophobia here, or there has been a political calculus made that appealing to homophobia is a political win, because the opposition wants gay people dead.

At best, it’s no different than the prosecutors in and around Baltimore who will routinely demand more severe sentences in plea bargains for black defendants, because they know that they have a better chance to convict a black man, even in front of a black jury.

I believe that this action has been taken because it can be seen as a gay issue, not in spite of it.

This is dog-whistle gay bashing, and it is quite deliberate.

It Would Be Nice if Obama Didn’t Try So Hard to Emulate the Worst Excesses of Bush and His Evil Minions&trade

In this case, it’s his veto threat of the intelligence authorization bill, because the notification requirements have been strengthened in it.

As opposed to just notifying the gang of 8 (4 actually) who are not allowed to discuss the contents with anyone else, the whole intelligence committee would have to be notified.

It appears that Barack Obama wants to preserve the, “long tradition spanning decades of comity between the branches regarding intelligence matters,” which BTW, involves the CIA having, “affirmatively lied to” the panel, according to House Intelligence Chairman Silvestre Reyes.

The idea that a briefing be given in a closed room, with no notes taken, and so few people as to make verification of a felony impossible is somehow “comity,” is setting George Orwell spinning so rapidly in his grave that he could power all of Sussex.

Light Night Comics Must Love Republicans

Because this stuff writes itself.

Case in point, the rebounding scandal of John Ensign’s affair and his payoff of his mistress and her husband, where we now discover that , “His lawyer has just released a remarkable statement saying that Ensign’s parents paid the Hamptons $96,000 after the 51-year-old senator told his Mom and Dad about the affair.”

Republican family values….Things go bad, and rich daddy bails you out.

Pig Fight!!!!!!!

It looks like the primary campaign between Arlen Spector and Joe Sestak is heating up, with Specter calling Sestak a hypocrite for not registering as a Democrat until a few years back, and Sestak has responded that he felt that it was his obligation as a military officer not to declare party affiliation until he left the service.

Seeing as how the person making the initial attack about insufficient party loyalty is Democrat-turned-Republican-turned-Democrat Specter, I’m inclined to go with Joe Sestak.

So it would seem are a fair number of campaign donors, as Sestak raised over a million dollars in this Spring.

Additionally, even if Specter were a better Senator than Sestak, and there are some issues where Spector is closer to me than he is to Sestak, Specter being challenged by Sestak is a better Senator than just Specter.

We are not hearing any more of the crap about how he won’t toe any party line, and he’s fallen into line on labor, healthcare, and climate change legislation as a result of this challenge.

Economics Update

Thursday is new jobless claims day, and new jobless claims fell by 52K, to 565K,, bringing the number down below 600K for the first time since late January of this year. (Full disclosure here, one of those 565,000 people was me, if anyone knows of mechanical engineering openings in the greater Baltimore, MD area, it would be greatly appreciated.)

The other shoe dropping is that continuing claims hit an all time high, rising by 159 to 6.88 million.

Also note that these numbers are the seasonally adjusted numbers, and actual claims increased by 17K to 577.5K, and the seasonal adjustment includes a correction for auto factory shutdowns for model changes, which occurred early this year for GM and Chrysler, because of the bankruptcies.

Ain’t statistics grand?

A slightly more realistic metric than the massaged jobs claim data is the fact that retail sales missed expectations in June.

The fact that retailers were selling less than expected led to wholesalers drawing their inventories to the lowest levels since August 2007.

The big news in central bank land is that the Bank of England neither cut its rates nor increased its bond purchases, which had the effect of driving treasuries down, and their yields up.

In any case, it appears that the bogus job numbers (see above) have halted the slide in crude oil prices, with prices settling at $60.41/bbl.

The Bank of England’s move not to cut rates or buy bonds (print money) any faster had the effect of weakening both the dollar and the Yen.