Category: Corruption

I Wish that You Had Said This in 2009, Motherf%$#er

In a Greenspanesque attempt to rehabilitate his reputation, Ben Bernanke is now saying that we should have jailed more (really any) bankers following the financial meltdown:

………

With publication of his memoir, The Courage to Act, on Tuesday by W.W. Norton & Co., Bernanke has some thoughts about what went right and what went wrong. For one thing, he says that more corporate executives should have gone to jail for their misdeeds. The Justice Department and other law-enforcement agencies focused on indicting or threatening to indict financial firms, he notes, “but it would have been my preference to have more investigation of individual action, since obviously everything what went wrong or was illegal was done by some individual, not by an abstract firm.”

If he had said this in 2009, maybe some of the big name banksters would have seen the inside of a prison cell, and maybe the industry, and the Congress, would have made meaningful reforms to prevent a repeat of the orgy of fraud and greed that led to the last meltdown.

Too late, dude.

Ding, Dong, the Witch is Dead

Barack Obama’s educational privatizer in chief, Arne Duncan, has announced that he is stepping down at the end of the year:

U.S. Education Secretary Arne Duncan plans to step down from his Cabinet position by the end of the year, leaving the Obama administration more than a year before the president’s term will end.

“He’s done more to bring our educational system, sometimes kicking and screaming, into the 21st century than anyone else,” President Obama said as he announced Duncan’s resignation at the White House on Friday afternoon. “America will be better off for what he has done.”

OK, as is made clear by Obama’s statements, the Cossacks work for the Czar.

As anti-public education and anti-teacher as he has been, it is clear that he has been executing a pro-Wall Street, anti-Teacher, and anti-Student* agenda at Obama’s behest.

Still, I am sure that he will get a 7 figure jackpot at the end of the rainbow.

*As I have asked many times, “Is there anything that big finance can’t make destructive and evil?”
If the goal is to involve Wall Street in a public service, the effect will harm that service. QED.

iPhone Users Just Love Their Walled Garden

Even if it means that Apple is censoring what news they can read:

Metadata+, a free app that catalogues fatal drone strikes by the United States, was pulled from the App Store this morning. Users were alerted via a notification that said the app was removed because of “exceptionally crude or objectionable content.”

Metadata+ was developed by The Intercept’s research editor Josh Begley. The app listed the date and location of drone strikes, as well as the victims, and sent notifications to users when a new strike occurred.

Begley struggled to get the App Store to accept his work—Mashable reports that Metadata+ was approved this February after five rejections. The sensitive topic of U.S. drone strikes seems to have been a problem for Apple: Begley was rejected last August because his app might be “objectionable” for many audiences.

………

Begley told Mashable that an Apple Review Team employee contacted him after several rejections and told him that if the app focused specifically on U.S. drone strikes, “it’s not going to be approved.”

So, it appears that not cheerleading for US drone strikes is unacceptable content for Apple, Inc.

What happens when the FBI comes and asks for a backdoor into your private communications?

At least Android is open source, so if there is a backdoor, someone can compile a version without some back door that has elements of the US state security apparatus leering looking at your private communications.

No wonder Apple is lobbying so hard for a bill in congress that grants them immunity for sharing data.

Editorial of the Day


Brevity is the soul of wit

Michigan State Representative Cindy Gamrat, a Teabagger from the banks of the Kalamazoo river, was expelled from the state house because she and fellow rep (and fellow Teabagger) Todd Courser (who resigned) used state funds to cover up their adulterous affair.

A special election was called to replace her, and Gamrat is running for reelection.

The Grand Rapids Press and Kalamazoo Gazette editorial on this development is remarkably concise: (click for a larger image)

No.

It’s as if Ernest Hemingway wrote this editorial.

H/t Jim Romenesko

Well, This Helps with 5th Amendment Rights

In an insider trading scandal, a judge has ruled that prosecutors cannot force suspects to unlock their phones.

Basically, he said that the prosecution was asking for it “Just Because”, and that was not sufficient reason:

The Fifth Amendment right against compelled self-incrimination would be breached if two insider trading suspects were forced to turn over the passcodes of their locked mobile phones to the Securities and Exchange Commission, a federal judge ruled Wednesday.

“We find, as the SEC is not seeking business records but Defendants’ personal thought processes, Defendants may properly invoke their Fifth Amendment right,” US District Judge Mark Kearney of Pennsylvania wrote.

………

In the latest case, the SEC is investigating two former Capital One data analysts who allegedly used insider information associated with their jobs to trade stocks—in this case, a $150,000 investment allegedly turned into $2.8 million. Regulators suspect the mobile devices are holding evidence of insider trading and demanded that the two turn over their passcodes.

The defendants balked at supplying their passcodes, saying the Fifth Amendment protected them. The judge agreed and said that the government was going on a fishing expedition:

Here, the SEC proffers no evidence rising to a “reasonable particularity” any of the documents it alleges reside in the passcode protected phones. Instead, it argues only possession of the smartphones and Defendants were the sole users and possessors of their respective work-issued smartphones. SEC does not show the “existence” of any requested documents actually existing on the smartphones. Merely possessing the smartphones is insufficient if the SEC cannot show what is actually on the device.

The prosecution is not looking for evidence here.

What they are looking for is statements that impeach the defendants, and force them to cut a plea deal.

They want to find texts where these guys call their clients morons, or some such, knowing that they can then present this to a jury in order to make the jury hostile to their defense.

I wholeheartedly approve of this ruling.

This is a Feature, Not a Bug

The fact that the nominee for head of the FDA has extensive financial ties to the pharmaceutical industry should come as no surprise.

The revolving door has been spinning just as fast during the Obama administration as it ever has been:

It seems to be the season of the revolving door

in health care. The latest version got some media attention, because it involves one of the most important health care leadership positions in the US government, the Director of the Food and Drug Administration (FDA). However, the case actually seems much more serious than what the media has recently reported.

………

The only fly in the ointment was the matter of Dr Califf’s ties to industry. The WSJ article included,

Diana Zuckerman, president of the National Center for Health Research, a Washington-based group focusing on medical-product safety, questioned his ties to the drug industry.

‘Dr. Califf’s expertise and his close ties to the pharmaceutical industry are both well-known,’ she said. ‘His ties to industry have been a source of great concern to public-health experts when he was previously considered for FDA commissioner, and those ties raise important questions about this nomination.’


The MedPage Today article noted that Public Citizen’s Health Research Group stated,

‘During his tenure at Duke University, Califf racked up a long history of extensive financial ties to multiple drug and device companies, including Amgen, Astra-Zeneca, Eli Lilly, Johnson & Johnson, Merck Sharpe & Dohme and Sanofi-Aventis, to name a few,’ Michael Carome, MD, the group’s director, said in a statement. ‘Strikingly, no FDA commissioner has had such close financial relationships with industries regulated by the agency prior to being appointed.’

………

‘There are some who believe his relationship with [the drug industry] may be a problem, but most see it as a value-added factor in building a functional, more streamlined relationship with the industry in order to improve the speed with which truly effective and quality drugs and devices are made available, mitigate the excessive costs associated with pharmaceuticals, and influence policies and practices intended to improve health status.’

If that doesn’t scare the hell out of you, it should.

What that nameless source just said is that this is the sort of guy who could make the approval of a drug like Thalidomide go through more smoothly.

What Happens When This Doesn’t Generate a Media Sh%$ Storm?

Martin Shkreli, the hedge fund pharma executive who generated outrage when he bought a drug for rare diseases and boosted its price by over 5555%, has backed down after he got called out by the New York Times:

“Yes it is absolutely a reaction — there were mistakes made with respect to helping people understand why we took this action, I think that it makes sense to lower the price in response to the anger that was felt by people,” Shkreli, 32, said.

Turing Pharmaceuticals of New York bought the drug from Impax Laboratories in August for $55 million and raised the price. Shkreli said Tuesday the price would be lowered to allow the company to break even or make a smaller profit.

Daraprim fights toxoplasmosis. The infection is particularly dangerous for people who have weakened immune systems, like AIDS patients, as well as for pregnant women, according to the Centers for Disease Control and Prevention.

………

Democratic presidential candidate Hillary Clinton was among those who expressed outrage over the price increase. On Tuesday she outlined a plan she said would limit how much patients have to pay out of pocket for medications each month.

As I noted last night, after Glaxo Smith Kline sold the drug market rights and before Shkreli bought the drug, the price was raised by 1350%, from $1.00 to $13.50 a pill, but since it wasn’t going from $13.50 to $750.00 a pill, nobody batted an eyelash.

Notwithstanding the protestations of contemptible greedheads like Martin Shkreli, generating unearned profits through financial engineering and exploitation of monopoly power benefits no one but contemptible greedheads like Martin Shkreli.

This Is a Clear Case of Immoral Parasitism, and It’s Pharma, so Not the Surprise

You know the story, hedge fund puke buys a pharmaceutical firm, takes an out of patent drug that costs a few bucks, changes the distribution method to make analysis by potential competitors more difficult, and then raise the price by 5555%: (No, this is not a decimal place error)

Specialists in infectious disease are protesting a gigantic overnight increase in the price of a 62-year-old drug that is the standard of care for treating a life-threatening parasitic infection.

The drug, called Daraprim, was acquired in August by Turing Pharmaceuticals, a start-up run by a former hedge fund manager. Turing immediately raised the price to $750 a tablet from $13.50, bringing the annual cost of treatment for some patients to hundreds of thousands of dollars.

“What is it that they are doing differently that has led to this dramatic increase?” said Dr. Judith Aberg, the chief of the division of infectious diseases at the Icahn School of Medicine at Mount Sinai. She said the price increase could force hospitals to use “alternative therapies that may not have the same efficacy.”

………

The Infectious Diseases Society of America and the HIV Medicine Association sent a joint letter to Turing earlier this month calling the price increase for Daraprim “unjustifiable for the medically vulnerable patient population” and “unsustainable for the health care system.” An organization representing the directors of state AIDS programs has also been looking into the price increase, according to doctors and patient advocates.

Daraprim, known generically as pyrimethamine, is used mainly to treat toxoplasmosis, a parasite infection that can cause serious or even life-threatening problems for babies born to women who become infected during pregnancy, and also for people with compromised immune systems, like AIDS patients and certain cancer patients.

………

This is not the first time the 32-year-old Mr. Shkreli, who has a reputation for both brilliance and brashness, has been the center of controversy. He started MSMB Capital, a hedge fund company, in his 20s and drew attention for urging the Food and Drug Administration not to approve certain drugs made by companies whose stock he was shorting.

In 2011, Mr. Shkreli started Retrophin, which also acquired old neglected drugs and sharply raised their prices. Retrophin’s board fired Mr. Shkreli a year ago. Last month, it filed a complaint in Federal District Court in Manhattan, accusing him of using Retrophin as a personal piggy bank to pay back angry investors in his hedge fund.

………

With the price now high, other companies could conceivably make generic copies, since patents have long expired. One factor that could discourage that option is that Daraprim’s distribution is now tightly controlled, making it harder for generic companies to get the samples they need for the required testing.

The switch from drugstores to controlled distribution was made in June by Impax, not by Turing. Still, controlled distribution was a strategy Mr. Shkreli talked about at his previous company as a way to thwart generics.

………

Dr. Aberg of Mount Sinai said some hospitals will now find Daraprim too expensive to keep in stock, possibly resulting in treatment delays. She said that Mount Sinai was continuing to use the drug, but each use now required a special review.

“This seems to be all profit-driven for somebody,” Dr. Aberg said, “and I just think it’s a very dangerous process.”

You can read the details of his looting the last firm he ran here.

I would note that Mr Shkreli is not alone in this behavior: When Glaxo Smith Kline sold the marketing rights to the drug to CorePharma, the price of the drug was $1 a pill,

Is there anything that big finance can’t make destructive and evil?

Remember Last Night, When I Used the Phrase, “Bush Crime Family?”

Well today, we learn of the orgy of political payback and cronyism in the next generation of the Bush family, we have George P. Bush turning the office of Texas Land Commissioner into an opportunity for his buddies to profit while ignoring state law that requires public notice of open positions:

Less than a year after being elected to lead the oldest state agency in Texas, Land Commissioner George P. Bush has dramatically remade the General Land Office by ousting most of its longtime leaders and replacing many with people with ties to his campaign and family.

Eleven of the top 18 officials on the agency’s organizational chart a year ago have been fired or forced out or have quit, and more could leave soon in an overhaul that Bush has described as a “reboot.”

In their place, Bush, a former Fort Worth resident, has given top jobs to two of his law school classmates, two relatives of members of two Bush presidential administrations and at least three others with ties to the family or other political leaders.

In all, Bush has hired at least 29 people who worked on his campaign or have political connections, according to a review of thousands of pages of personnel records. The agency did not advertise any of the openings publicly.

………

State law requires all agencies considering external candidates for a job to post the opening with the Texas Workforce Commission. Newly elected statewide officials often ignore the requirement for some core positions. Attorney General Ken Paxton and Agriculture Commissioner Sid Miller have been publicly criticized for doing it a few times this year.

But Bush’s hiring differs because it is so far-reaching, with hires ranging from a temporary transition director to five campaign veterans hired permanently for the new position of “regional outreach coordinator.”

Bush made many so-called appointment hires before even taking office but has continued them well into this year.

The General Land Office, established in 1837, oversees all state public lands and also leases mineral rights to oil and gas companies, generating billions of dollars for schools. Bush, the grandson and nephew of presidents and the son of current presidential candidate Jeb Bush, was elected in November.

………

“Any agency, board, bureau, commission, committee, council, court, department, institution, or office in the executive or judicial branch of state government that has an employment opening for which persons from outside the agency will be considered shall list the opening with the Texas Workforce Commission,” the law says.

Commission spokeswoman Lisa Givens said she did not know who was responsible for enforcing that law. The commission does not check to ensure that jobs are posted, she said.

The attorney general’s office referred questions about the law to the workforce agency.

Personnel records show that Bush directed at least 40 external hires from November to July but listed only four of those with the Workforce Commission.

The average salary for those four was about $65,000. The average salary for the 36 unposted jobs was $90,000.

Ten jobs went to campaign aides, including temporary transition director Trey Newton, who made $17,500 per month, and the five regional outreach coordinators, who are making $55,000 a year. Newton, the campaign engineer Bush once called “our Karl Rove,” left in January. He did not return a call seeking comment.

Another campaign strategist, Ash Wright, and his wife, Patty Wright, both got unposted jobs in December with annual salaries of $120,000 and $48,000, respectively. Both have left, with Ash Wright returning to Bush’s campaign.

The campaign’s spokesman, J.R. Hernandez, got a more permanent job as Bush’s chief of staff, with an annual salary of $110,000. Hernandez, the son of George W. Bush adviser Juan Hernandez and a 2008 college graduate, started the job exactly a week after the election. The application in his personnel file is not signed or dated, and there is no offer letter, making it hard to determine a timeline of employment.

The Bush family has been engaging in this sort of entitled privilege since my dad was in elementary school.

H/t Atrios.

28 Years

Former president of Peanut Corporation of America, Stewart Parnell, was sentenced to 28 years in prison for knowing shipping salmonella contaminated peanuts around the country:

Former peanut company executive Stewart Parnell was hit with a virtual life prison term Monday for his 2014 conviction on crimes related to a salmonella outbreak blamed for killing nine and sickening hundreds.

A federal judge in Georgia sentenced the 61-year-old former head of Peanut Corporation of America to 28 years behind bars, imposing potentially the toughest punishment in U.S. history for a producer in a food-borne illness case.

U.S. District Judge W. Louis Sands also sentenced the former executive’s brother, Michael Parnell, 56, to serve a 20-year prison term. The relative and co-defendant was a broker who provided food manufacturing giant Kellogg’s with peanut paste from his brother’s company.

Mary Wilkerson, 41, a former quality control manager at the now-defunct peanut firm, drew a five-year prison term for her conviction on obstruction in the tragedy.

Sands also ordered both Parnells to surrender, rejecting defense arguments that the two should be allowed to remain free on bond pending appeals. The judge deemed them potential flight risks.

………

The case stemmed from Food and Drug Administration and the Centers for Disease Control and Prevention findings that traced a national salmonella outbreak to the Parnell company’s peanut roasting plant in Blakely, Ga. The outbreak sickened 714 people in 46 states and may have contributed to nine deaths, the CDC reported.

The illnesses began in January 2009 and ultimately prompted one of the largest food recalls in U.S. history.

A federal jury convicted Parnell last September on 71 criminal counts, including conspiracy, obstruction of justice and introduction of adulterated food. The verdict came after prosecutors presented evidence that Parnell and the co-defendants knowingly shipped salmonella-tainted peanut butter from the Georgia facility to Kellogg’s and other customers — who in turn used it in products ranging from packaged crackers to pet food.

How about some similar sentences for corrupt bankers?

F-35 Testing Beginning to Resemble Lance Armstrong Blood Tests

It turns out that the recent “successful deployment of the F-35 in US Marine Corps exercises was nothing of the sort:

The Marine Corps triumphantly declared its variant of the F-35 combat ready in late July. In the public relations build-up, the recent demonstration of its performance on the USS Wasp was heralded as a rebuttal to the program’s critics.

But a complete copy of a recent memo from the Director of Operational Test and Evaluation (DOT&E) — obtained by the Project On Government Oversight through the Freedom of Information Act — reveals that a number of maintenance and reliability problems “are likely to present significant near-term challenges for the Marine Corps.”

The Marine Corps named this demonstration “Operational Test One,” but it turns out it wasn’t actually an operational test, “in either a formal or an informal sense of the term.” To count as an operational test, conditions should closely match realistic combat conditions.

But DOT&E found the demonstration “did not — and could not — demonstrate that Block 2B F-35B is operationally effective or suitable for use in any type of limited combat operation, or that it was ready for real-world operational deployments, given the way the event was structured.”

The details buried inside the report’s annexes also show just how much trouble the crew faced in attempting to keep the F-35s selected for the demonstration flightworthy. Before the demonstration even began the Marine Corps had to swap out one F-35B with another “due to a fuel system fault that would have been impractical to fix at sea given the maintenance workload.”

In combat, not only would this kind of replacement be impractical, it would likely be impossible.

It goes on to state that the the WASP was emptied of other aircraft in order to facilitate F-35 ops, critical hardware and software not being present on the system, around 80 civilian contractors on board to keep the aircraft running, a prognostics and maintenance system that is basically non-functional, and a much lower operational tempo than promised.

This aircraft is a turkey, and I see no prospect of it being fixed.

Quote of the Day

“I’d rather go to Iraq than work for Carly Fiorina again,” said one high-level former campaign staffer, who asked not to be identified, citing disclosure restrictions in his contract.

Carly Fiorina, who’s net worth is something north of $50 million, stiffed her campaign workers in her 2010 Senate (Demon Sheep) campaign.

BTW, not getting paid by a political candidate is something that happens now and again, the amount of outright hatred expressed rivals that of long time Hewlett Packard employees.

It’s not about getting stiffed. She must have been absolute hell to work for.

Think about this: Donald f%$#ing Trump doesn’t have employees ratting him out like this, and neither does Hillary Clinton, and if any of her former employees were willing to right a tell all, they would get a seven figure advance. (Even more if they were willing to mention “Benghazi.” )

 It really is remarkable how people like her (I mean high powered executives, not Republicans in this case) keep failing up the business food chain.

H/t Digby at Salon for the quote.

And yet Another Element of the US State Security Apparatus Goes Rogue

It appears that the DEA specifically targeted the Evo Morales government in Bolivia in what appears to be something very close to an attempted coup:

The United States has secretly indicted top officials connected to the government of Bolivian President Evo Morales for their alleged involvement in a cocaine trafficking scheme. The indictments, secured in a U.S. Drug Enforcement Administration sting called “Operation Naked King,” have not been previously reported.

Morales, a former leader of Bolivia’s coca growers union, has long been at loggerheads with the DEA. In 2008, Morales expelled the agency from the country and embarked on his own strategy of combatting drug trafficking, acknowledging the traditional uses of coca in Bolivian culture and working cooperatively with coca growers to regulate some legal activity and to promote alternative development elsewhere. Morales’ plan has been effective at reducing cultivation, according to the United Nations.

But that doesn’t mean the DEA accepted its eviction quietly. In fact, the agency went after members of Morales’ administration in an apparent effort to undermine his leadership.

The sealed indictments, revealed last week in a lawsuit filed by long-time DEA informant Carlos Toro, target Walter Álvarez, a top Bolivian air force official; the late Raul García, father of Vice President Álvaro García Linera; Faustino Giménez, an Argentine citizen and Bolivian resident who is said to be close to the vice president; and Katy Alcoreza, described as an intelligence agent for Morales. Toro said in the court document that he played an integral role in securing the indictments as part of the DEA’s undercover investigation into the alleged Bolivian cocaine trafficking ring, which the agency ran out of its office in Asuncion, Paraguay.

………

The U.S. government and the DEA made no secret of their displeasure when their longtime nemesis, Morales, was elected. “If radicals continue to hijack the indigenous movement, we could find ourselves faced with a narcostate that supports the uncontrolled cultivation of coca,” General James T. Hill, a U.S. army commander with the Southern Command, told the House Armed Services Committee in March 2004, referring to Morales’ movement.

“I don’t think there’s an attractive or viable future by becoming a narcostate,” John Walters, then the Bush administration’s drug czar, told The New York Times the next year, when it appeared Morales was on his way to victory.

Morales used the accusations to his political benefit. “They accuse me of everything,” Morales said at a campaign rally, according to the same Times article. “They say Evo is a drug trafficker, that Evo is a narcoterrorist. They don’t know how to defend their position, so they attack us.”

………

By 2014, the Times was writing about Bolivia’s renaissance:

Tucked away in the shadow of its more populous and more prosperous neighbors, tiny, impoverished Bolivia, once a perennial economic basket case, has suddenly become a different kind of exception — this time in a good way.

Its economy grew an estimated 6.5 percent last year, among the strongest rates in the region. Inflation has been kept in check. The budget is balanced, and once-crippling government debt has been slashed. And the country has a rainy-day fund of foreign reserves so large for its relatively small economy that it could be the envy of nearly every other country in the world. The Times article notes that extreme poverty under Morales has plummeted, despite — or, more likely, because of — his refusal to follow the path the U.S. has urged.

………

In the face of U.S. denunciations that Bolivia would become a narcostate under Morales, the country has instead managed to reduce coca leaf cultivation, especially over the past five years. According to the United Nations Office on Drugs and Crime, total production of dried coca leaf fell 11 percent from 2013 to 2014, and has fallen by an average of nearly 10 percent each year since 2011. Interdiction efforts targeting coca cultivation have also dropped precipitously since the DEA’s dismissal in 2008, though confiscations of cocaine continued to rise until 2013, when they dropped off significantly. In 2014, confiscations of processed cocaine hydrochloride returned to previous levels, though interdiction of coca leaves and cocaine base remained low.

“[Drug trafficking] must be fought — we are convinced of that — and we are doing so more effectively and more wisely,” Morales told Al Jazeera in a 2014 interview. “When the United States was in control of counternarcotics, the US governments used drug trafficking for purely geopolitical purposes …. The US uses drug trafficking and terrorism for political control …. We have nationalised the fight against drug trafficking.”

In 2009, Hillary Clinton warned of Morales and the late Venezuelan President Hugo Chávez’s “fear mongering” in written testimony during her secretary of state confirmation hearings. Yet Morales’ fears, it turns out, weren’t rooted in mere paranoia. The DEA was, in fact, out to get him.

The revelation of Operation Naked King goes to show that Bolivian leaders’ paranoia was well justified, said Kathryn Ledebur, who runs the Andean Information Network based in Bolivia. “US authorities frequently dismiss Bolivian government denunciations about the DEA and US intervention as absurd speculation, but these revelations show what is common knowledge on the ground — there has long been an alarming lack of oversight of DEA operations in Latin America, including recurring mission creep and a violation of agreements with host countries,” she wrote in an email.

What is going on here is very simple: A coup attempt by the DEA, and they are trying to take this government down not because their policies are a failure, but because their policies are a success.

If other governments follow their example, bad things will happen:   the DEA will face a situation where their most important path to career advancement an visibility, f%$#ing around with other sovereign nations, will be curtailed.

At some point, lead to reductions in budget and manpower at the agency, so clearly Evo Morales must be overthrown, because, to quote Mel Brooks, “Holy underwear! Sheriff murdered! Innocent women and children blown to bits! We have to protect our phoney baloney jobs here, gentlemen! We must do something about this immediately! Immediately! Immediately! Harrumph! Harrumph! Harrumph!

This is not surprising.  After all, one of the first major foreign initiatives of the Obama administration was to tacitly support a coup against Manuel Zelaya in Honduras.

Haven’t we f%$#ed up Latin America enough since 1823?

Zombie Ideas

The New York Times editorial board notices that Republicans are trying to privatize IRS tax collection yet again:

Buried in the Senate-passed version of the big highway bill is a provision that would require the Treasury secretary to use private debt collectors to collect unpaid back taxes.

The provision, added to the bill by Republican leaders, is ostensibly intended to help pay for highways. But it’s a bad idea that should be kept out of the House version of the bill and out of any final compromise version.

Private tax collection was tried in the 1990s and in the 2000s. Both times it lost money. It increases the cost of handling complaints and appeals at the Internal Revenue Service, and it is far less efficient than simply increasing the collection budget of the I.R.S.

Worse, it fosters taxpayer abuse. The debts involved are ones that the I.R.S. has not been able to collect, in part because the taxpayers are too hard-pressed to pay up. A private company is probably not going to have better luck unless it uses abusive tactics.

And yet, private tax collection is an idea that keeps resurfacing. Why? One reason is that it would be a cash cow for the four companies likely to win tax-collection contracts, two in New York, one in California and one in Iowa.

Senator Chuck Schumer, Democrat of New York, has argued in the past that using federal money to pay private companies for tax collection would create jobs at those companies. But it would be better to increase the I.R.S. budget to create middle-class public-sector jobs in professional tax collection than to throw money at low-paying private-sector contractors who cannot do the job as well.

 Thank you Senator Schumer for whoring for your debt collector campaign contributors.

This sh%$ is just evil.

Headline of the Day

Liberals Push to Correct Inequality — Just Not If It Involves Opening Up Our Neighborhood Schools.

It’s a pity that the article that goes along with it, which I am not linking to, is a piece of crap generated by Campbell Brown’s corporate whoring AstroTurf “educational” organization, where the entire thing is a screed about how liberals really should support education by and for Wall Street Charter Schools, because it means that a few brown faces in those schools.

It’s an intellectually bankrupt piece, and willfully obtuse, as Matt Bruening (the link above) so ably notes:

You see, we know very well how to integrate schools along class and racial lines. It’s called busing and we used to do it. Yet, isn’t it weird that Williams never writes about busing? Isn’t it weird that you hardly hear a peep out of that entire gang about busing? Why don’t they advocate for explicit integration through busing instead of these charter schools which may or may not even have a desegregating effect (and even where it does, not nearly to the same degree as busing would). Isn’t it awfully convenient that these folks say they definitely care about school integration and inequality but refuse to advocate for the most effective solution for it?

When pressed on this, one of the responses you will hear is that they don’t see practically (speaking in political terms) how we can get busing. But why would people oppose busing, one has to wonder. Is it because they don’t want to send their kids to school with poors and blacks? But wait, isn’t that the same reason they don’t like charters? Isn’t the opposition the same to both things? Why advocate one thing that runs up against a brick wall due to racism and dislike of the poor but not another thing that runs up against the same brick wall?

There are two basic answers here.

The first is that the charters don’t promise integration (and in many cases brag about how segregated they are, e.g. KIPP gleaming about how uniformly poor and black their schools are). So the reformers sidestep the hurdle of the racist affluent white liberal by basically giving in entirely to their desire for segregation, which charters don’t threaten that much if at all.

The second is that practicality is defined here in terms of what you might call the Left Wing of the Fundable. You can get money to push for charter schools and privatization and breaking teacher/public unions (all things the education reformers push, including right now Students First pushing a SCOTUS case that aims to eliminate all public sector union security, not just for teachers). You can get a fellowship at a think tank to push for those types of things. They are thus practical in the sense that there are enough rich people and institutions with somewhat mixed interests that are willing to pony up the money necessary to push them through our hilariously undemocratic political system and to fund a healthy number of advocate jobs. The same money doesn’t exist for busing advocacy.

So who then is really the intrepid supporter for integration in all of this, I am left to ask. Is the education reformer who dare not say a peep about busing because it’s outside of the Left Wing of the Fundable and too radically integrationist the real no-nonsense advocate willing to say what needs to be said? I don’t think so.

The title has some real truth to it:  Far too many liberals call for problems to be fixed, and then recoil in horror when they discover that this involves the smallest sacrifice on their part (i.e. busing and cross district money transfers), but the rest of the article, which is so ably Fisked by Mr. Bruening, is bovine scatology.

Running Education in Like a Business Means Overpaying Managers Who Loot the Institution

The Governor of Iowa, selected a new president for the University of Iowa, the state’s flagship education institution, and it turns out that has no educational experience, and he has lied flagrantly on his resume:

But UI may not seem like such an attractive alternative these days. As the Yes Men performed at the press conference, the Iowa Board of Regents was in the final stages of selecting the next UI president. In a very unusual arrangement, the regents chose not to renew previous president Sally Mason’s contract two years ago; since then, she had been working “at will” on a day-to-day basis. If some observers worried that this arrangement would render her a tool of the regents, those fears were confirmed when Mason endorsed an ill-conceived regents funding plan that would significantly cut UI’s budget, infuriating many on campus.

Now, Mason is out: Eight days after the Yes Men’s visit, the Iowa Board of Regents unanimously voted former IBM and Boston Market executive Bruce Harreld as UI’s next president, despite Harreld having no university administrative background. He did work as an adjunct senior lecturer at Harvard Business School, but that’s the extent of his college workplace experience.

On the résumé Harreld submitted to the regents, he listed his current job as the managing principal for the Colorado-based Executing Strategy, LLC. This company “confidentially (advises) several public, private and military organizations on leadership, organic growth and strategic renewal.” However, that business doesn’t exist. The Colorado secretary of state has no record of a company of that name.

On Sept. 1, during a public forum that was part of Harreld’s on-campus interview and visit, I asked Harreld to explain this discrepancy. He replied that Executing Strategy was a company name he previously used and that he accidentally listed it in his current work history.

“Shame on me,” Harreld said. “I too quickly pulled it from out of my head and put it on the résumé. There is no Colorado corporation. I live in Colorado. That’s my post office box.”

His résumé also neglected to list the co-authors on his publications, attributing them solely to Harreld. The only part of his résumé that didn’t contain a glaring error was Page 3, which consisted almost entirely of personal information such as “Four adult children who all have advanced degrees” and “Elder, Presbyterian Church.” Given Harreld’s business background, one would think he would have taken more care with his résumé when applying to be the president of a major university.

Harreld’s public forum did not go well, to put it mildly. His rambling 35-minute presentation contained little more than vague generalizations and repeated catchphrases such as taking UI from “great to greater.” At times he rolled his eyes and looked exasperated while facing questions from students, staff, and faculty. When a UI staff member asked him what initiatives he might have planned to improve workplace morale, he replied, “I don’t know that I have any. Now what? Staff? I dunno. … What more would you like me to say?” Harreld then ended this exchange with an abrupt, “No, I’m done. OK? If you don’t mind.”

Is there anyone out there who believes that this guy was hired for anything but political payback?

This guy is going to be a complete clusterf%$#?

Gee, What a Surprise………

The Pentagon’s inspector general is investigating allegations that military officials have skewed intelligence assessments about the United States-led campaign in Iraq against the Islamic State to provide a more optimistic account of progress, according to several officials familiar with the inquiry.

The investigation began after at least one civilian Defense Intelligence Agency analyst told the authorities that he had evidence that officials at United States Central Command — the military headquarters overseeing the American bombing campaign and other efforts against the Islamic State — were improperly reworking the conclusions of intelligence assessments prepared for policy makers, including President Obama, the government officials said.

Fuller details of the claims were not available, including when the assessments were said to have been altered and who at Central Command, or Centcom, the analyst said was responsible. The officials, speaking only on the condition of anonymity about classified matters, said that the recently opened investigation focused on whether military officials had changed the conclusions of draft intelligence assessments during a review process and then passed them on.

The prospect of skewed intelligence raises new questions about the direction of the government’s war with the Islamic State, and could help explain why pronouncements about the progress of the campaign have varied widely.

This is an artifact of rampant careerism in the US military, and is a recipe for military disaster.

We have a senior officer corps that is more interested in PR than the truth, and the more that this compromises the the transfer of information up and down the chain of command, the more our military looks like the Egyptian army circa 1967.

Some Good Law Enforcement News for Today

The new judge in charge of the Ferguson Missouri municipal court has rescinded hundreds of arrest warrants, and has promised to make the court less abusive on poor and black people:

A new municipal judge in Ferguson, Missouri, on Monday ordered sweeping changes to court practices in response to a scathing Justice Department report following the shooting of unarmed black teenager Michael Brown a year ago.

Municipal Court Judge Donald McCullin, appointed in June, ordered that all arrest warrants issued in the city before Dec. 31, 2014 be withdrawn.

Defendants will receive new court dates along with options for disposing of their cases, such as payment plans or community service. Fines may be commuted for indigent people.

The changes come five months after the U.S. Department of Justice strongly criticized city leaders in its report, saying the police force and court worked together to exploit people in order to raise revenue.

The Justice Department specifically said Ferguson’s municipal court practices caused significant harm to many people with cases pending as minor municipal code violations turned into multiple arrests, jail time, and payments that exceeded the cost of the original ticket many times over.

Here is hoping that the reforms stick, but I doubt it.

In the long run, there is too much money in shaking poor black people in Ferguson for it to end without an outside agent forcing them to do so.

Good News Everyone

Good news everyone!



I invented a device that makes you read this in your head using my voice!

A federal judge just told the FBI that he did not care what the NSA’s illegal searches discovered, they cannot use a warrantless search: (Ok, the NSA bit was me)

Remember the 4th Amendment? We hear it’s making a comeback. Back in May, we had a story about another court explaining to the government that, contrary to popular belief within Homeland Security, the 4th Amendment does still apply at the border, and thus Border Patrol can’t just take someone’s laptop without a warrant.

The case involved a guy named Jae Shik Kim, who the government suspected was shipping items to China that were then being forwarded to Iran. Because of that, DHS grabbed his laptop as he was leaving the US (on a flight to Korea). The DOJ argued that the laptop was a “container” subject to search at the border. The court disabused the DOJ of this notion:

After considering all of the facts and authorities set forth above, then, the Court finds, under the totality of the unique circumstances of this case, that the imaging and search of the entire contents of Kim’s laptop, aided by specialized forensic software, for a period of unlimited duration and an examination of unlimited scope, for the purpose of gathering evidence in a pre-existing investigation, was supported by so little suspicion of ongoing or imminent criminal activity, and was so invasive of Kim’s privacy and so disconnected from not only the considerations underlying the breadth of the government’s authority to search at the border, but also the border itself, that it was unreasonable.

Given an opportunity to respond, the DOJ has dropped the entire case.

Good.  I hope that whoever instigated this search is writing parking tickets now.

What part of, “Fruit of the poisoned tree,” don’t you get?