Author: Matthew G. Saroff

Greenwald to Return to US ……… Stay Out of Private Aircraft

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I think that Glenn Greenwald overestimates the moral and political constrains on the behavior of the US state security apparatus and the executive branch.

If he returns to the United States they will attempt to destroy him:

When big-name public figures and Edward Snowden critics first started suggesting Glenn Greenwald and other writers who’d published his surveillance disclosures might be in legal jeopardy, Greenwald assumed that both the clamor and the actual risk to journalists would quickly subside, and eventually disappear.

That was about six months ago. Today, Greenwald believes he miscalculated. In an exclusive interview Wednesday he said that the ominous rhetoric directed at him has actually escalated. It’s discouraged him from visiting the United States, where he still has strong family and professional ties. And though he intends to reenter the country sooner rather than later, he’ll do so despite the fact that he believes he faces a much greater risk of detention than most of the other journalists who have access to some or all of Snowden’s files.

“As the story kind of went on I thought the prospect of something happening to the journalists would dissipate to zero. I actually think that the risk is higher than it’s ever been,” Greenwald told me. “My parents are getting older, my nieces [live there] — none of that is something I’m going to go home for now … I had a foundation that wanted to sponsor and pay for and market aggressively a six-city speaking tour to talk about the NSA story and the revelations. I would have completely loved to have done it … on the assurance that nothing would happen. And because we couldn’t get it from the U.S. government, I had to cancel.”

When we last spoke in August, Greenwald was cognizant of the risks he’d face if he visited the United States, but he was also pointedly defiant. “I take more seriously the Constitution’s guarantee of a free press in the First Amendment,” he said at the time. “So I have every intention of entering the U.S. as soon as my schedule permits and there’s a reason to do so.”

Journalist Gary Webb was driven to suicide for revealing that the Contras were smuggling crack into the United States.

With Padilla, they kept him in solitary for years, and when he needed dental work, they kept him blindfolded through the entire trip.

There are people who want to destroy you, and they have the means, and your only protection would be the good will of one Barack Hussein Obama, which, along with $7.50 will get you a Starbucks latte.

They want to make him dead.

Hizonner Does Good

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New York Mayor Bill De Blasio jas just announced that will not march in the St. Patrick’s day parade because of the organizers anti-gay policies:

New York City Mayor Bill de Blasio (D) on Tuesday said that he will not march in the city’s annual St. Patrick’s Day parade because organizers of the event will not allow participants to carry gay pride signs.

“No, I am not planning on marching in the parade,” de Blasio said at a press conference. “I will be participating in a number of other events to honor the Irish heritage of this city, but I simply disagree with the organizers of that parade.”

Fabulous!

Here’s hoping that the blow-back changes the calculus used the bigots who run the parade to make their decisions.

The Navy Just Tried to Pull Out of the JSF Program

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It’s not particularly surprising. The F-35C is the most expensive variant, and it has no potential exports (the only operator of catapult equipped carriers are the US, the French, and the Brazilians), so it is not surprising that the navy requested a “break” from the JSF program:

OSD TOLD THE NAVY: YOU CAN’T TAKE A ‘BREAK’ FROM THE F-35C: According to a congressional source,  in its 2015 budget proposal, the Navy asked to take a three-year “break” from its production of the F-35C, its variant of the Joint Strike Fighter. Concerned this was a first step toward walking away from the program permanently, OSD told the Navy: no way.

 It’s an open secret that the Navy would prefer to invest more in its F-18 fighters rather than buy the F-35C. But if the Navy pulled out of the program, the unit cost — already under scrutiny —  would go up for the Air Force and the Marine Corps.

The Navy did not get their “time out” because Office of the Secretary of Defense understood that a 3 year break constituted a cancellation of that variant, because in 3 years it will cost even more, and the DoD budgets will be under more stress.

This is, to quote Joe Biden, “A big f%$#ing deal.”

Not Enough Bullets………

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To no one’s surprise, this involves real estate developers, a scurvy lot who depend on the kindness of taxpayers while extolling the virtue of “free market heroes” like themselves.

Case in point, Seattle developers are suing because they think that the city is charging too much for them to break zoning laws:

A coalition of several developers filed a lawsuit in King County Superior Court on January 15 that would make Seattle, already booming with construction cranes, more friendly for developers. Their issue? One of the city’s affordable-housing programs.

Since 2006, the city has struck a deal with developers in the downtown core: In exchange for setting aside a few modestly affordable units or paying fees toward a city housing fund, developers get to build taller buildings. For example, developers could build a 400-foot tower where they’d otherwise have to keep it under 300 feet. The Seattle City Council raised those fees by about one-third in December 2013. In their lawsuit, which cites three Supreme Court decisions, the developers claim that fee hike is “an out-and-out extortion.”

So they’re asking a judge to invalidate that higher fee, making it cheaper and easier to build the tallest buildings allowed downtown—while throwing even fewer scraps to the city’s growing affordable-housing needs.

“This just shows developers are not willing to do their fair share,” says Rebecca Saldaña of Puget Sound Sage, an affordable-housing advocacy group. She says Seattle’s taxpayers fund a housing levy, and politicians have eased other development requirements. This latest uptick in fees, Saldaña says, is “really just asking developers to come up to speed.”

………

For example, Smith’s Second and Pike project is a proposed 400-foot tower, with 290 residential units above retail and restaurant space. Normally, the height limit there is 290 feet. Under the new fee regulations, in exchange for that extra height, Smith would have to pay a one-time fee of around $2.5 million into the city’s housing fund. The lawsuit says the city should revert to the former requirements, which require paying only $1.8 million. (In an odd twist, Smith will pay the $1.8 million either way, because he applied for a permit under the old rules.)

“My hope is that most people won’t actually pay the fees,” says O’Brien. “They’ll just provide the housing” inside the new construction. In Smith’s building, that would mean setting aside 20 or so moderately affordable units—around $1,300 a month for a one-bedroom apartment.

Clearly, even that isn’t particularly affordable, and 20 apartments don’t amount to much housing. And the city knows its program isn’t good enough. Which is why housing advocates, developers, and lawmakers have been meeting since last summer to overhaul the program.

$1300/month.

If you figure that 25% of pre-tax income should go to housing, that translated to about $62K a year.

For a one bedroom apartment.

And this is too much for the developers to tolerate.

You know, when Mao came to power in China, he executed the landlords, basically the real estate developers of China of the time.

I’ve always found it hard to condemn this act.

I’d Never Looked at the Christo-Fascists this Way Before

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Considering that I have tended to call them Fascists, I’m rather surprised that I’ve never noticed that bullying is THE core value of the Talibaptist crowd:

The anti-bullying campaign was supposed to be one of those causes that everyone, regardless of ideology or political party, was able to get behind. As Emily Bazelon discovered in her seminal book on bullying in schools, Sticks and Stones: Defeating the Culture of Bullying and Rediscovering the Power of Character and Empathy, even in schools where it seems fairly obvious that authorities were being negligent toward victims of bullying, the schools insisted that they were opposed to bullying. No one is for bullying, right?

 Well, that’s what we’d like to believe. But it seems that, as with many things, bullying is becoming a partisan issue. Anti-bullying efforts seem liberal in tone and emphasis, which means that they will inevitably attract negative attention from the knee-jerk “anything to piss off the liberals” crowd. But let’s be honest: Part of the reason conservatives frequently support bullying—or at least resist efforts to end it—is because bullying works. Bullies are good at exerting exactly the kind of social control that the right, especially the Christian right, wants to exert. So here’s a list of incidences where conservatives just straight-up supported bullying in the face of efforts to curb it.

Seriously.

Every “freedom” that they insist upon violates the old adage, “Your freedom ends where my nose begins.”

They want the right to discriminate, and to act on their hatred and their bigotry.

You have the right to be a bigot and a hater, but you cannot inflict your bigotry and hatred on the rest of society.

It Now Sucks Even More to be Mitch McConnell

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Because the latest polling from the right leaning Rasmussen polls has him tied with Democrat Alison Lundergan Grimes:

Senate Minority Leader Mitch McConnell (R-KY) is tied with his Democratic opponent, Alison Lundergan Grimes, at 42 percent each in a new poll by conservative-leaning firm Rasmussen Reports.

Six percent preferred neither of them, and 10 percent were undecided, according to the survey, which was released Monday.

Rasmussen’s polls came under fire during the 2010 and 2012 election cycles for regularly overstating the standing of Republican candidates.

Note that undecideds tend to break for the challenger. (Happy dance!!)

If I were a Democratic political consultant right now, I would be using these numbers to push Matt Bevin, the teabagger running against McConnell in the primary.

What McConnell has going for him, both in the primary and the general, is the sense of inevitability that he intends to convey.

Drive a stake through its heart.

Congress Does the Right Thing, and then Scrambles to Repeal It

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I am talking, of course, about the attempts to repeal changes to the federal flood insurance program, so as to stop subsidizing people who choose to live in flood prone regions:

Setting aside objections from the White House and fiscal watchdogs, a bipartisan Senate majority voted Thursday to delay rate increases in federal flood insurance for coastal property owners from Maine to California.

The 67 to 32 vote reflected mounting political opposition to big insurance hikes that Congress passed in 2012 to prop up the nation’s nearly bankrupt flood insurance program. The bill, which faces an uncertain outcome in the House, would delay the increases for up to four years for hundreds of thousands of property owners across the country, including tens of thousands in Massachusetts.

The measure also postpones the adoption of a new set of official flood maps for coastal regions, which would have dramatically expanded areas designated as prone to floods and required thousands more to obtain costly insurance. In Boston alone, the number of properties encompassed in the new maps would rise from 8,000 to 18,000.

Floods are getting worse because of anthropogenic climate change, and the original maps were too conservative, and the rates were never appropriate to the level of risk.

The solution to ameliorating damage from flooding is not to pay people to live there.

Capitalism, Huh?

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click a picture for a slide show

When Metallica discovered that their music was being used to torture inmates at Guantanamo, they send a cease and desist letter.

Canadian electro-industrial band Skinny Puppy went a different route, and have sent an invoice demanding payment:

By now we’re all familiar with the U.S. government’s practice of using heavy metal to torture detainees. We’ve all seen “Zero Dark Thirty” and “Homeland”—we get the drill. Usually metal music is used for its general unpleasantness. It’s impossible to sleep through and just all-around unnerving.

 Except Canadian band Skinny Puppy had no idea their music was being used in the service of the U.S. military.

 ………

 The Independent points out Friday that when Metallica learned their music was being used as a torture device at Guantanamo they sent the the government a cease and desist. Skinny Puppy, on the other hand, went the other way and just sent an invoice.

 “We heard that our music was used on at least four occasions,” Evin Key said. “So we thought it would be a good idea to make an invoice to the U.S. government for musical services.”

 Asked how he felt about his music being used to torture people, he said, “Not too good. We never supported those types of scenarios. Because we make unsettling music, we can see it being used in a weird way. But it doesn’t sit right with us.”

It doesn’t sit right with anyone who values the idea of rule of law and civil rights, Evin.

I would remind you thought that the statutory damages for such a use, it is clearly a public performance, are on the order of $150,000 per infraction.

It might be more worth your while to sue.

The Consumer Financial Protection Bureau Goes to Work

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CFPB Alleges Mortgage Insurer Operated 15-Year-Long Kickback Scheme – Consumerist

The Consumer Financial Protection Bureau has begun proceedings against PHH Corporation for its involvement in a 15-year-long mortgage insurance kickback scheme that collected hundreds of millions of dollars from homeowners.

 The CFPB announced Wednesday that it is seeking a civil fine, an injunction to prevent future violations and victim restitution from PHH Corporation and its residential mortgage origination subsidiaries, PHH Mortgage Corporation and PHH Home Loans LLC, as well as it’s wholly-owned subsidiaries, Atrium Insurance Corporation and Atrium Reinsurance Corporation, for violating the Real Estate Settlements Procedures Act and harming consumers through a kickback scheme beginning as early as 1995 and continuing until at least 2009.

 ………

 An investigation by the CFPB showed that when PHH originated mortgages, it referred consumers to its mortgage insuring partners. In exchange for the referral, the insurers purchased reinsurance – a product that transfers risk to help mortgage insurers cover their own risk of unexpected losses – from PHH’s subsidiaries. As a result, consumers ended up paying more in mortgage insurance premiums.

Good, but this will not send anyone to jail.

Until we start people, not just corporations, start experiencing the direct consequences of the misdeeds, nothing will change.

A 23 Year Long Multi-Billion Dollar Long Contract Dispute Settled

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And, surprise, surprise, it is a sweetheart deal for the defense contractors: (paid subscription required)

After more than two decades and numerous attempts at a settlement, the U.S. government finally agreed to accept $400 million from General Dynamics and Boeing in the dispute over the Navy’s cancellation of the $4.8 billion A-12 Avenger II program.

 The settlement is a fraction of what the government sought when the lawsuit began, demanding $1.3 billion in restitution ($2.2 billion in 2014 dollars) for money spent on the stealthy carrier-based aircraft program that had yet to deliver an aircraft. And it is even smaller when compared with an agreement for $2.9 billion that was nearly negotiated in 2003.

 ………

 The Navy will receive three EA-18G Growlers that will be delivered on top of the 21 Boeing aircraft that were funded by Congress for fiscal 2014 and are expected to be delivered in 2016, according to the Navy.

 General Dynamics will provide $198 million in credits to the Navy toward the design, construction and delivery portions of the Zumwalt-class DDG-1000 destroyer.

 ………

 The dispute began in 1991, when then-Defense Secretary Dick Cheney canceled the $4.8 billion stealth attack aircraft, run by General Dynamics and McDonnell Douglas, which has since been acquired by Boeing. It was terminated in part due to the government’s conclusion that contractors were not meeting cost and schedule targets. The Navy demanded that contractors repay $1.3 billion to the government.

 The prime contractors sued the government, arguing the government should make penalty payments because the contract was canceled for “convenience,” not a failure to perform. The case festered in the court system, eventually reaching the Supreme Court.

 ………

 In 2011, 20 years after the start of the dispute, the Supreme Court considered the case. The Navy argued that the contractors had not completed the work they had promised. The contractors argued that the government held back classified information about stealth technology that hampered their effectiveness. Ultimately, the Supreme Court sent the case back to the U.S. Court of Federal Claims, where it remained until now.

They met none of their technical requirements, they missed their schedule, and they were hideously over budget, and the punishment for the (now effectively admitted with the settlement) misfeasance and malfeasance is that the contractors get to secure the status of existing programs.

5 Words that Strike Terror into My Heart

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“Wall Street’s New Housing Bonanza“

Wall Street’s latest trillion-dollar idea involves slicing and dicing debt tied to single-family homes and selling the bonds to investors around the world.

 That might sound a lot like the activities that at one point set off a global financial crisis. But there is a twist this time. Investment bankers and lawyers are now lining up to finance investors, from big private equity firms to plumbers and dentists moonlighting as landlords, who are buying up foreclosed houses and renting them out.

 The latest company to test this emerging frontier in securitization is American Homes 4 Rent. The company talked to prospective investors at a conference in Las Vegas last week about selling securities tied to $500 million of debt, according to people briefed on the matter.

 American Homes 4 Rent, which went public in August, has tapped JPMorgan Chase, Goldman Sachs and Wells Fargo as its bankers for a debt deal that is expected to be sold by the end of the first quarter, these people said.

This will not end well.

Another complex deal that will leave banksters richer, and rest of us stuck with the f%$#ing tab.

Linkage

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H/t DC at the Stellar Parthenon BBS for the screen capture of the FB dialogue.

Barack Obama is Determined to Go to War Against Syria

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Because we need to find some little country to beat up every decade or so.

The US is now amping up complaints about the speed of Syrian chemical weapons destruction as a justification for military strikes:

The United States on Thursday accused Syria of deliberately delaying the surrender of its chemical weapons stockpiles and jeopardizing a tightly timed and costly international removal and destruction operation that narrowly averted U.S. airstrikes last year.

It was the first formal accusation that Syria was not cooperating with the terms of its disarmament after months in which international diplomats and chemical weapons experts marveled at the speed with which the process was being carried out. The public denunciation, however, closely tracked concerns that independent experts have expressed privately in recent weeks about the operation’s pace.

………

Most chemical weapons experts agree that Syria’s ability to manufacture and deploy the banned weapons was destroyed last year. ………

Would You Let the Vampire Squid Get a Hold of Your Dong?

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It appears that the coalition in Denmark has collapsed over this issue:

After a recent spate of controversies and ministerial resignations, the Danish centre-left government suffered another blow on Thursday when the Socialist People’s party (SF) left the ruling coalition amid anger over Goldman Sachs‘s investment in Denmark’s state-owned energy company.

 Goldman’s 8bn kroner (£900m) purchase of a 19% share in Dong Energy has been championed by the government but caused a revolt among SF’s parliamentary group. After a night of tension and discussions, SF’s leader, Annette Vilhelmsen, announced her resignation and said her party was leaving the coalition.

 “It has been a dramatic 24 hours,” Vilhelmsen said. “Yesterday it became clear to me that it wasn’t possible to unite the party. For the sake of SF, I take the consequence of this.”

 The Goldman Sachs deal was approved by the parliament’s finance committee on Thursday, but it has come under widespread scrutiny and criticism in recent weeks. A poll showed 68% of Danes were against the sale, and close to 200,000 people signed an online petition opposing the deal.

(emphasis mine)

Even worse, like most privatization deals, it is a hand out from taxpayers to overpaid CEOs:

My friend Niels-Jakob Harbo Hansen and I calculated some of the financial aspects of the deal, and they don’t look that good. The bidders are offering about 107.25 kroner per share, supposedly valuing the company at 31.5 billion kroner before the investment. In addition to a healthy package of minority rights, they also get a put option for 60% of the shares: if DONG doesn’t go public within 4 years or so (and Goldman can veto that), the investors can sell 60% of their shares at a strike price equal to the purchase price of 107.25 kr per share, plus a healthy return of about 3% per year.

 That’s like an insurance policy that covers not only your loss, but also the insurance premium you originally paid, plus interest.

 Once you account for the put option, the deal values the shares at 24.5 billion kr., around 47% of book value. Maybe that’s fair because DONG just had a big loss and will be constrained by its business plan to invest in windmills and such, but it still seems awfully low. On the other hand, the investment bankers have deemed it Fair™, so who am I to question that.

 The main thing we did was to compare the deal to the most obvious alternative: the Danish government (AAA rating, 26% debt/GDP, 45% including local government) could borrow at an interest rate of about 1%, and make the investment itself. The expected loss from the deal compared to a government investment is about 2.5 billion kroner.

So, it costs the taxpayer 3x as much as a public investment, and you can be certain that rates will go up faster than they would if the company were to remain completely publicly owned.

Thank You Harry Reid

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The Majority Leader of the Senate has come out against fast track authority for trade deals:

President Barack Obama’s push for authority to fast-track trade deals has hit a big setback in the form of opposition from his top fellow Democrat in Congress, but it is far from dead.

Senate Majority Leader Harry Reid’s warning to policymakers on Wednesday “just to not push this right now” reflects concern about the domestic political agenda ahead of November’s congressional elections, when free trade could be a damaging issue for many Democrats.

The unusually blunt public opposition came less than 24 hours after Obama noted the need for fast-track power in his State of the Union address, albeit less forcefully than business lobbyists and pro-trade Republicans would have liked.

The White House called Reid’s office shortly after his comments to voice displeasure, a top Democratic party aide said.

“They were really upset,” the aide said. But the aide said the White House did not try to get Reid to shift his position.

These guys were really upset because they, like the staffers who negotiated NAFTA for Clinton and Bush I, made some serious bank as lobbyists and consultants.

I really hope that it’s not, as Yves Smith’s sources say,  “Another gambit is more likely: to make some cosmetic changes and try to get the bill passed during the lame duck session, on the assumption that some Democrats (particularly those who are leaving office) will use the cover and change positions.”

The TPP, and it’s European equivalent, the TTIP, are egregiously bad deals, not just for the United States, but for the whole world, because they are predicated on the idea that democracy and transparency must be almost completely eschewed in the interest of unregulated global investment flows and IP based looting through draconian copyright and patent provisions.

These are abysmally bad deals for everyone but banksters, big pharma, and the cocaine addicted brothers in law of senior studio and record label executives.

Pushback on Drug Pricing

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The AIDS Healthcare Foundation is lobbying to keep the $1000.00 a pill Sovaldi out of Medicaid formularies.

I wholeheartedly agree enough is enough:

In a series of letters to be sent to state Medicaid directors starting today, AIDS Healthcare Foundation (AHF) President Michael Weinstein will ask the state directors to block Gilead Sciences’ new $1,000-per-pill Hepatitis C drug Sovaldi (sofosbuvir) from inclusion on their respective state Medicaid and other drug formularies. The drug was approved by the F.D.A. on December 6, 2013 and Gilead immediately announced that it would price the drug at $84,000 for a twelve-week course of treatment—or $1,000 per tablet—making it one of the most expensive drugs ever marketed. Suggested treatment guidelines also require that Sovaldi be used with another drug, ribavirin (a nucleoside inhibitor), further adding to the cost of the prohibitively expensive course of treatment.

 “When is enough, enough? At $1,000-per-pill, Sovaldi is priced 1,100% more than Gilead’s most expensive AIDS drug, Stribild, its four-in-one AIDS drug combination, which was priced at $80 per pill a year ago when it came to market,” said Michael Weinstein , President of AIDS Healthcare Foundation. “At that time, Stribild’s price was 35% more than Atripla, the company’s best selling combination HIV/AIDS treatment, and made Stribild the highest priced first-line combination AIDS therapy. Now, Gilead has set a new benchmark for unbridled greed with its outrageous price for Sovaldi—a price that some pharmacy industry sources suggest represents a retail markup of 279,000% over the cost of actually producing the drug.”

 In his letter to state Medicaid directors, Weinstein wrote, “Gilead is charging a higher price for this drug even though the cost to produce it is small. According to industry reports, Gilead produces Sovaldi for approximately $1.00 per gram (with only 10 to 30 grams needed to successfully treat patients with Hepatitis C).1 This represents a retail markup of over 279,000%.

Enough is f%$#ing enough.

This sh%$ needs to stop.