Category: Corruption

IMF Internal Report Says That the Screwed the Pooch in Greece

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An internal report reveals that IMF staff gave engaged in favoritism toward the EU and the Euro in the handling of the ongoing Greek financial crisis:

The International Monetary Fund’s top staff misled their own board, made a series of calamitous misjudgments in Greece, became euphoric cheerleaders for the euro project, ignored warning signs of impending crisis, and collectively failed to grasp an elemental concept of currency theory.

This is the lacerating verdict of the IMF’s top watchdog on the fund’s tangled political role in the eurozone debt crisis, the most damaging episode in the history of the Bretton Woods institutions.

It describes a “culture of complacency”, prone to “superficial and mechanistic” analysis, and traces a shocking breakdown in the governance of the IMF, leaving it unclear who is ultimately in charge of this extremely powerful organisation.

The report by the IMF’s Independent Evaluation Office (IEO) goes above the head of the managing director, Christine Lagarde. It answers solely to the board of executive directors, and those from Asia and Latin America are clearly incensed at the way European Union insiders used the fund to rescue their own rich currency union and banking system.

………

In an astonishing admission, the report said its own investigators were unable to obtain key records or penetrate the activities of secretive “ad-hoc task forces”. Mrs Lagarde herself is not accused of obstruction.

“Many documents were prepared outside the regular established channels; written documentation on some sensitive matters could not be located. The IEO in some instances has not been able to determine who made certain decisions or what information was available, nor has it been able to assess the relative roles of management and staff,” it said.

The report said the whole approach to the eurozone was characterised by “groupthink” and intellectual capture. They had no fall-back plans on how to tackle a systemic crisis in the eurozone – or how to deal with the politics of a multinational currency union – because they had ruled out any possibility that it could happen.

………

This pro-EMU bias continued to corrupt their thinking for years. “The IMF remained upbeat about the soundness of the European banking system and the quality of banking supervision in euro-area countries until after the start of the global financial crisis in mid-2007. This lapse was largely due to the IMF’s readiness to take the reassurances of national and euro area authorities at face value,” it said.

………

In Greece, the IMF violated its own cardinal rule by signing off on a bailout in 2010 even though it could offer no assurance that the package would bring the country’s debts under control or clear the way for recovery, and many suspected from the start that it was doomed.

The organisation got around this by slipping through a radical change in IMF rescue policy, allowing an exemption (since abolished) if there was a risk of systemic contagion. “The board was not consulted or informed,” it said. The directors discovered the bombshell “tucked into the text” of the Greek package, but by then it was a fait accompli.

………

The injustice is that the cost of the bailouts was switched to ordinary Greek citizens – the least able to support the burden – and it was never acknowledged that the true motive of EU-IMF Troika policy was to protect monetary union. Indeed, the Greeks were repeatedly blamed for failures that stemmed from the policy itself. This unfairness – the root of so much bitterness in Greece – is finally recognised in the report.

“If preventing international contagion was an essential concern, the cost of its prevention should have been borne – at least in part – by the international community as the prime beneficiary,” it said.

So, even with institutions in the tank for the Euro, the currency continues to fail.

I still say that the solution is to get the Germans out of the Euro, sooner, rather than later.

What About the Higher Ups?

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6 low level employees have been charged for allegedly falsifying reports in the Flint, Michigan lead tainted water crisis:

A special investigator for the Michigan Attorney General’s office said six state employees who were criminally charged today hid and manipulated data last summer that showed a change in drinking-water sources was poisoning people here.

Liane Shekter-Smith, Adam Rosenthal and Patrick Cook worked for the Michigan Department of Environmental Quality; and Nancy Peeler, Corinne Miller and Robert Scott worked for the Michigan Department of Health and Human Services last summer and are charged in the case filed this morning in Flint District court.
………

The Health and Human Services employees “effectively buried” research indicating high lead levels in children’s blood from July through September 2014 could be connected to the switch in water sources and needed further research, Seipenko said.

The epidemiologist researching the tests wasn’t yet finished with her report when Peeler and Scott “worked together to produce a graph of elevated blood levels without applying any statistical method. Peeler, relying on this unscientific graph, drafted and sent (an) unfounded email to MDHHS management (that) inappropriately concluded that the switch of water sources was not the cause of elevated blood levels within the children,” Seipenko said.

Peeler was manager of the Early Childhood Health section of MDHHS, and Scott is acting coordinator and data manager for the Childhood Lead Poisoning Prevention program at the MDHHS. Miller was director of the Bureau of Disease Control and Prevention at MDHHS, Seipenko said.

………

Smith faces charges of misconduct in office and willful neglect of duty. Cook is charged with misconduct in office, conspiracy to engage in misconduct in office and willful neglect of duty. Rosenthal is charged with misconduct office, conspiracy to tamper with evidence or engage in misconduct in office, and tampering with evidence as a public officer engaged in a willful neglect of his duty.

Peeler, Miller and Scott are charged with misconduct in office, conspiracy to commit misconduct in office and willful neglect of duty.

These do not appear to particularly high level employees.

Ignoring these results was clearly a directive made at a more senior level, probably at the level of Governor Rick Snyder’s cabinet, but I see no evidence of a higher level investigation so far.

It’s pretty clear that his office had to be involved in authorizing the cover up.

My Heart Bleeds Borscht for These Rat F%$#S

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What a surprise, since the US Treasury has started to require more disclosure in cash only real estate purchases in the United States, this market has imploded.

Seriously, there is no way that everyone involved in the process didn’t know that it wasn’t money laundering, and as the saying goes, “You f%$# with the bull, you get the horns.”

More of this:

Cash sales of homes – mostly the domain of foreign and affluent buyers – fell to 32% of total home sales in April, down 2.8 percentage points from a year ago, according to a new report from CoreLogic. For the first four months, cash sales dropped to 34%, the lowest since 2008.

In Florida, the number one destination for foreign homebuyers, cash sales accounted for 46% of sales, and in New York, for 44%, both decreasing as well. The “strong dollar” and “global uncertainty” were blamed.

In Manhattan and Miami, the luxury condo markets are already getting mauled. For example, we reported that in Manhattan, condo prices plunged 14% in just three months.

We also reported that foreign investors were pulling back, particularly Chinese investors, the most prolific of all foreign buyers. The number of homes they purchased over the 12-month period had plunged 15%.

So is it just the “strong dollar” and “global uncertainty?” Or could there be more to the story?

Today, the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) announced that it would expand a program it had kicked off in January to identify and track secret homebuyers who hide behind shell companies.

The expanded program will “temporarily require US title insurance companies to identify the natural persons behind shell companies used to pay ‘all cash’ for high-end residential real estate in six major metropolitan areas,” up from the two areas designated in January, Manhattan and Miami, among the biggest destinations of global wealth:

FinCEN remains concerned that all-cash purchases (i.e., those without bank financing) may be conducted by individuals attempting to hide their assets and identity by purchasing residential properties through limited liability companies or other opaque structures.

Real estate purchases in the US have been a perfectly good way to launder large amounts of money, no questions asked. Brokers and banks and other industry professionals have played along. Everyone in the world knew it. And they came to launder their cash.

These folks don’t mind paying a little extra. So as an industry-pleasing side effect of this influx of opaque money, luxury home prices soared, from where they trickled down to the rest of the market.

The criminal activity in the real estate market is increasingly pricing ordinary people out of homes, so it’s nice that the T-men are doing this.

Hoo Boy!

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Wikileaks has released thousands of internal Democratic National Committee emails, revealing that the organization was aggressively in the tank for Hillary Clinton. (Big surprise, though it is a violation of its organization charter)
These included discussions of using Sanders religion against him, which kind of surprised me, because it’s “our side” that is doing it:

As Hillary Clinton prepared to announce her 2016 running mate, a trove of nearly 20,000 emails were released by WikiLeaks on Friday, providing an embarrassing inside look at Democratic Party operations on the eve of the Democrats’ national convention.

The emails from the Democratic National Committee include discussions of Clinton’s chief rival for the presidential nomination, Sen. Bernie Sanders (D-Vt.); details of perks provided to party donors attending the convention; and email exchanges between party officials, journalists and others.

The emails were released with an announcement by WikiLeaks on Twitter that linked readers to a WikiLeaks page inviting visitors to “Search the DNC email database.” A search box sits underneath a one-paragraph introduction:

………

Friday’s digital document dump follows a report last month by The Washington Post that Russian government hackers penetrated the computer network of the Democratic National Committee, gaining access to an entire database of opposition research. DNC and Clinton campaign did not respond to a request for comment Friday as reporters and campaign staff began to assess the situation.


One email written May 5 to DNC communications director Luis Miranda from another party official suggests looking at Bernie Sanders’ faith.

“It might may [sic] no difference, but for KY and WVA can we get someone to ask his belief,” the email from “marshall@dnc.org” says. “Does he believe in a God. He had skated on saying he has a Jewish heritage. I think I read he is an atheist. This could make several points difference with my peeps. My Southern Baptist peeps would draw a big difference between a Jew and an atheist.”

At the very least the author of the letter, DNC CFO Brad Marshall, the author of this email, should be fired, but I do not expect this to happen, since he is clearly a FoH. (Friend of Hillary)

Of further interest is that the emails contain information that Hillary Clinton’s “Fund Raising” for the state party was actually laundered back into her campaign:

………

Other emails show DNC staff in damage control over allegations from the Sanders campaign, when a report—corroborated by a Politico—revealed the DNC’s joint fundraising committee with the Clinton campaign was laundering money to the Clinton campaign instead of fundraising for down-ticket Democrats.………

Between this and the choice of the pro-TPP, pro-abstinence education, pro-parental notification laws Tim Kaine as her VP pick, I think that a lot of the folks from the Democratic wing of the Democratic Party are, to quote the Dixie Chicks, “Not ready to make nice.”

We’ve Known This for Thirty Years

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Reagan’s “Star Wars” missile defense shield continues to reveal itself to be an expensive mirage:

The system designed to defend American cities and towns against a nuclear attack by North Korea is “simply unable to protect the U.S. public” and will remain ineffective unless Congress exerts rigorous oversight, according to a new report.

The report, to be released Thursday by the Union of Concerned Scientists, recommends that the Obama administration halt the expansion of the Ground-based Midcourse Defense system, known as GMD, until its technical problems have been solved.

“The story of this system is a cautionary tale about how the lack of appropriate oversight of a politically charged missile defense program has led to a system in tatters,” said the report, written by three physicists with expertise in missile defense.

“Despite more than a decade of development and a bill of $40 billion, the GMD system is simply unable to protect the U.S. public,’’ the authors wrote.

………

The report notes that in “heavily scripted” flight tests that are “set up for success,” GMD interceptors have often failed to hit mock enemy warheads. In the seven most recent tests, interceptors destroyed their targets just three times, the report says — a finding consistent with conclusions of the Pentagon’s operational test and evaluation office.

………

The report said members of Congress and Pentagon officials insisted on deploying and expanding the system at a rapid pace—at the expense of sound procurement and engineering.

“Repeatedly,” the report said, “the Pentagon has sacrificed quality, shortened engineering cycles and sidestepped acquisitions best practices to meet a deadline imposed by political rationales rather than technical realities.”

………

The physicists write that “the continued development of the GMD system without adequate oversight and accountability, and the continued fielding of interceptors without adequate testing, means the system is not even on a path to achieving a useful ability to intercept ballistic missiles.”

As if the F-35 weren’t proof enough, it’s clear that our defense industry  is completely dysfunctional.

Wikileaks Releases 300K Emails from Turkish AKP

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There have not been any bombshells discovered (yet), but the release of a year’s worth of emails from Turkish President Recep Tayyip Erdoğan’s AKP party should prove to be rather interesting:

Over the weekend, the Internet may have saved the regime of Turkish president Recep Tayyip Erdoğan, as protestors organized online to fight a military coup, and Erdogan himself addressed the nation via Apple’s Facetime video-calling app. Today, however, Erdogan may remember that he doesn’t particularly like the Internet, after all—as hundreds of thousands of his ruling party’s alleged private correspondences spills onto the web.

On Tuesday, WikiLeaks published what it’s calling the Erdoğan Emails, a searchable collection of 294,548 emails it says are leaked from the AKP, Turkey’s ruling political party, and the organization president Erdoğan led before he was elected president. Turkish citizens and the world community are still struggling to understand the context of Turkey’s coup and the crackdown that’s followed, all of which could make this alleged Erdoğan leak more significant than the secret-spilling group’s average data dump. However, at the time of writing, it’s not at all clear yet what exactly the Turkish-language megaleak contains, or if the emails are what Wikileaks claims they are.

“The material was obtained a week before the attempted coup. However, WikiLeaks has moved forward its publication schedule in response to the government’s post-coup purges,” reads a note posted with the release on WikiLeaks’ site. “We have verified the material and the source, who is not connected, in any way, to the elements behind the attempted coup, or to a rival political party or state.”

I did a quick search of the data (for Bilal, Erdoğan’s remarkably corrupt son), so the search works, but given my complete lack of understanding of the Turkish language, it proved of little use to me.

Hopefully someone in the expat community (Turkey is blocking access to the site) will do a deep dive.

Speaking of Paranoid Megalomaniacs in Turkey

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TURKEY: List of the massive numbers involved in the #TurkeyPurge following failed coup. – @ashishjena94pic.twitter.com/elnmyynoaa

— Conflict News (@Conflicts) July 19, 2016

It’s been three days since the coup attempt, and Erdogon is using it as an excuse to destroy the civil service and make it another one of his private fiefdoms:

Turkey’s post-coup crackdown took a more sinister turn on Tuesday after tens of thousands of teachers were fired and all the country’s university deans were told they faced suspension.

The licences of 21,000 staff working in private schools were revoked, more than 15,000 employees at the education ministry were sacked, and the state-run higher education council demanded the resignation of 1,577 university deans.

The purge is part of President Recep Tayyip Erdogan’s heavy-handed attempt to root out supporters of Fethullah Gülen, the US-based cleric accused of orchestrating the failed revolt, whose movement is accused of infiltrating state institutions.

………

 The suspensions followed Monday’s purge targeting other ministries and state institutions.
The employees include 9,000 police, 2,745 judges, 8,777 from the interior ministry 1,500 from the finance ministry, 257 staff working at the prime minister’s office, at least 100 from the National Intelligence Agency MIT, 399 from the family and social affairs ministry and 492 from the religious affairs ministry.

 ………

 There was speculation that Mr Erdogan might try to put in place a state of emergency so as to take full control of all state institutions.

It’s pretty clear that they had a list of people to purge long before the attempted coup was set in motion.

This is not going to end well.

Your Daily Schadenfreude

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Almost two years ago, I mocked hedge fund manager Bill Ackman’s jihad against Herbalife.

The nickel tour was that he went heavily short on Herbalife, and then he aggressively lobbied regulators to shut the company’s business model down.

Ackman’s actions were a primer on how Wall Street types used the political and regulatory processes in an attempt to enrich themselves.

He asserted that Herbalife’s business model was essentially a pyramid scheme, and now the FTC has ruled against some of the supplement manufacturer’s business practices, but the ruling was limited, and Ackman’s short bets will not pay off:

For nearly four years, Herbalife has been locked in a fierce Wall Street battle with billionaire hedge fund manager Bill Ackman. But on Friday the dietary supplements seller scored an enormous victory in this fight.

The Federal Trade Commission said on Friday that it had charged Herbalife with deceiving consumers into believing they could earn substantial money selling diet nutritional supplements, but it did not determine that Herbalife is a pyramid scheme or fraud like Ackman had alleged for years. Herbalife said on Friday it will pay $200 million in a settlement with the FTC. The settlement will force Herbalife to change some of its key business practices, but the regulatory investigation of Herbalife will not end with the type of knock-out blow that Ackman clearly had hoped.

The FTC did make strong accusations against Herbalife, claiming that Herbalife’s compensation structure was unfair because it “rewards distributors for recruiting others to join and purchase products in order to advance in the marketing program, rather than in response to actual retail demand for the product, causing substantial economic injury to many of its distributors.”

………

Still, the FTC settlement looks to be another big setback for Ackman, whose Pershing Square hedge fund is under pressure after suffering large losses over the last 12 months, mostly from a disastrous big bet on Valeant Pharmaceuticals, a company with a stock that has crashed. Pershing Square has a long-running and very large short position in Herbalife.

………

Ackman’s Pershing Square Holdings has already plunged by 19.1% this year after falling by 20.5% in 2015, and Ackman’s assets under management have fallen sharply. Ackman has suggested that he would continue to pursue his crusade against Herbalife even if his effort to get U.S. regulators to shut the company down was unsuccessful. He once said he would go “to the end of the earth” in his battle against the company and became teary eyed on a stage when describing the damage he believed it had done.

………

Michael Johnson, Herbalife’s longtime CEO who has been at the forefront of the company’s battle against Ackman, argued the settlement was a big win. The company also announced that it had reached a $3 million settlement of an investigation conducted by the Attorney General of Illinois that had also hung over the company. “The settlements are an acknowledgment that our business model is sound and underscore our confidence in our ability to move forward successfully, otherwise we would not have agreed to the terms,” Johnson said in a statement.

It’s nice to see a self styled hedgie “geniuses” taken down a few notches.

And the Former Walmart Board Member Goes Back to F%$#ing the American Worker

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Hillary just promised to preserve the H1B Visa in all its corrupt wage depressing glory:

Presumptive Democratic presidential nominee Hillary Clinton vowed on Thursday to uphold the high-skill visas prized by the tech industry as part of comprehensive immigration reform, clarifying media reports that suggested her position on immigration policy would make it harder for Silicon Valley companies to hire talented workers.

“Part of what we have to be strong in standing for is a credible path forward for reform that is truly comprehensive, addressing all aspects of the system. Including immigrants living here today, those who wish to come in the days ahead. From highly skilled workers to family members. To those seeking refuge from violence wherever that might occur,” Clinton said, speaking to a room full of Latino activists during a speech at the League of United Latin American Citizens (LULAC) conference luncheon.

“To families this is an issue that matters more than we can measure. There’s nothing I take more seriously.”

The tech industry has been a major supporter of immigration reform in general, but particularly favors the high-skill or H-1B visa program, which allows companies to hire immigrants to fill technical positions.

The H-1B system is supposed to allow companies to employ foreigners who have unique skills not available in the us.

In truth, it allows the importation of cheap slave labor.

H/t ECop at the Stellar Parthenon BBS.

And He Would Have Gotten Away with It Too, If It Weren’t for That Meddling Journalist

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David Sirota has been all over the conflicts of interest and corruption at the heart of the proposed merger between the health insurers Anthem and Cigna:

Late last week, there was some notable news in the arcane world of insurance regulation: Connecticut’s state comptroller, Kevin Lembo, called on Insurance Department Commissioner Katharine Wade to recuse herself from a review of the proposed merger of the nation’s second- and fourth-largest insurers, Anthem and Cigna, in which the state has a lead role. “The revelations and repeated reports about your financial, personal and professional ties to Cigna,” Lembo wrote to Wade, “will make it challenging for the Connecticut public to view the review process of the Anthem-Cigna merger as fair and transparent.”

Lembo’s letter marked the latest turn in a controversy that, while building for more than a year, has come to a head over the past month—driven in substantial part by the ongoing reporting of David Sirota, the Denver-based senior investigations editor for the International Business Times. On June 1, Sirota published a lengthy piece weaving together previously-known and new concerns over conflicts of interest surrounding the merger review: Wade, appointed to her role in 2015 by Connecticut Gov. Dannel Malloy, is a former longtime Cigna lobbyist, her husband is a top Cigna lawyer, her father-in-law works for a law firm that lobbies for Cigna, and her mother worked for Cigna as recently as 2013. Wade’s brother, Sirota reported, also “previously worked as a counsel” for Cigna. Further, after reviewing more than a decade’s worth of campaign finance data, Sirota showed that Anthem, Cigna, and Cigna’s lobbying firm gave more than $2 million to groups linked to Gov. Malloy, with much of that money coming since 2015.

Since then, Sirota has produced more than a dozen follow-ups on the topic—tracking, for example, grassroots groups and state legislators calling on Malloy to remove Wade from the merger review—as what he initially envisioned as a “good little blog item” turned into an investigative series.

 Unfortunately, IBT is suffering financial difficulties, so go to their Political Capital page, and clock on their ads.

Seriously though, this coverage is kicking some major ass.

And the Con Continues to Unravel

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Theranos founder Elizabeth Holmes has been banned from running labs for 2 years:

In a severe turn of events for former blood testing darling Theranos, which has been defending itself against accusations of wrongdoing for months, U.S. regulators slapped strong sanctions against the company and its owner.

Theranos said in a statement issued late Thursday that the certificate for its lab in Newark, Calif., had been revoked, its approval to receive Medicare and Medicaid payments “cancelled,” and that it would have to pay an unspecified fine. In addition, chief executive Elizabeth Holmes, the company’s founder, will be banned from owning, operating or directing a lab for at least two years.

………

Theranos was perhaps the most celebrated of these young companies. Holmes was at one time compared to Apple’s Steve Jobs, and the company’s valuation was estimated to be a staggering $9 billion at its peak.

I still don’t understand how this company was ever seen as a success.

Their technology never worked., but supposedly sophisticated investors showered them with hundreds of millions of dollars.

This is nuts.

This is the Least Surprising News in ……… Ever

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One of the theories in modern economics is that people will engage in behavior that will provide them with a perceived benefit.

This is literally Economics 101. (Really. It’s in the text books.)

It’s called Rational Choice Theory, and it is a bedrock of Neoliberal (free market mousketeer) economics.

One of the blind spots amongst the followers of Rational Choice Theory is that whenever excessive executive compensation or control fraud is brought up, they suggest that managers operate in the best interests of the shareholders, and further argue that their bloated remuneration is what leads them to take this course.

Of course this has never happened in the history of ……… ever:

It won’t surprise any market-watcher to learn that in the run-up to earnings season, companies tend to lower the bar for top and bottom line performance, thereby giving themselves better odds of exceeding analysts’ expectations.

 However, a new working paper suggests that the sins of omission that occur during the corporate “cheating” season, as it was dubbed by Societe Generale Global Head of Quantitative Strategy Andrew Lapthorne, are far more insidious.

 Authors Kenneth Froot, Namho Kang, Gideon Ozik, and Ronnie Sadka conclude that managers mislead analysts and shareholders during earnings reports, and that their penchant for massaging expectations downwards may be employed in order to open up a window to buy their stock on the cheap in the near future.

It’s not just about buying stocks, its about manipulating the price of stock options.

The researchers developed two hypotheses: either managers make disclosures in a timely matter (and their forward-looking information is quickly reflected in stock prices) or members of the C-Suite actively “lean against the wind” to understate good or bad news — or even offer the completely wrong impression of what’s transpired since the last quarter ended.

 Their findings suggest that guidance (or “bundled forecasts”) provided by managers as well as the general tone of the conference call (analyzed using a “bag of words” approach) “point toward rejection of Timely Disclosure in favor of the Leaning Against the Wind alternative.”

“Leaning against the wind,” huh?

I would call it lying, and some would call it fraud, but I am an engineer, not a lawyer, dammit!*

*I love it when I get to go all Dr. McCoy!

And the CIA’s History of Ineptitude Continues

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What a surprise. The weapons that the CIA is showering on its pet rebels in Syria have largely been resold on black markets:

Weapons shipped into Jordan by the Central Intelligence Agency and Saudi Arabia intended for Syrian rebels have been systematically stolen by Jordanian intelligence operatives and sold to arms merchants on the black market, according to American and Jordanian officials.

Some of the stolen weapons were used in a shooting in November that killed two Americans and three others at a police training facility in Amman, F.B.I. officials believe after months of investigating the attack, according to people familiar with the investigation.

The existence of the weapons theft, which ended only months ago after complaints by the American and Saudi governments, is being reported for the first time after a joint investigation by The New York Times and Al Jazeera. The theft, involving millions of dollars of weapons, highlights the messy, unplanned consequences of programs to arm and train rebels — the kind of program the C.I.A. and Pentagon have conducted for decades — even after the Obama administration had hoped to keep the training program in Jordan under tight control.

The Jordanian officers who were part of the scheme reaped a windfall from the weapons sales, using the money to buy expensive SUVs, iPhones and other luxury items, Jordanian officials said.

The theft and resale of the arms — including Kalashnikov assault rifles, mortars and rocket-propelled grenades — have led to a flood of new weapons available on the black arms market. Investigators do not know what became of most of them, but a disparate collection of groups, including criminal networks and rural Jordanian tribes, use the arms bazaars to build their arsenals. Weapons smugglers also buy weapons in the arms bazaars to ship outside the country.

………

The training program, which in 2013 began directly arming the rebels under the code name Timber Sycamore, is run by the C.I.A. and several Arab intelligence services and aimed at building up forces opposing President Bashar al-Assad of Syria. The United States and Saudi Arabia are the biggest contributors, with the Saudis contributing both weapons and large sums of money, and with C.I.A. paramilitary operatives taking the lead in training the rebels to use Kalashnikovs, mortars, antitank guided missiles and other weapons.

If the definition of insanity is doing the same thing over and over again, but expecting different results, then McLean, Virginia is America’s version of Bedlam.

Marilyn Mosby, Your ADA is Trying to Lose These Cases

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The officer most responsible for the death of Freddie Gray, Caesar Goodson has been acquitted after a mindbogglingly inept attempt at prosecution:

A Baltimore judge acquitted the police officer facing the most serious charges in the death of Freddie Gray on Thursday, delivering a broad rebuke of a case that he said lacked evidence.

Officer Caesar Goodson Jr., 46, drove the transport van in which Gray sustained fatal injuries. He is the second officer cleared in the high-profile case. Four other officers could still face trial.

After an eight-day bench trial, Circuit Judge Barry Williams found Goodson not guilty on charges that included second-degree depraved-heart murder and three counts of manslaughter.

The acquittal cast doubt on the remaining criminal cases in which the other officers face similar but lesser charges. Legal observers said Baltimore State’s Attorney Marilyn Mosby, who drew widespread praise and also condemnation after charging the officers in May 2015, must now re-evaluate the remaining cases.

My guess is that this guy was looking at getting a PBA endorsement when he runs against Mosby for DA.

This is disgraceful.

Thanks, Hillary

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What a surprise, as Secretary of State, Hillary Clinton aggressively supported the right wing coup in Honduras.

Now we discover that the government’s US trained military has been assassinating indigenous environmental activists:

Berta Cáceres, the murdered environmental campaigner, appeared on a hitlist distributed to US-trained special forces units of the Honduran military months before her death, a former soldier has claimed.

 Lists featuring the names and photographs of dozens of social and environmental activists were given to two elite units, with orders to eliminate each target, according to First Sergeant Rodrigo Cruz, 20.

 Cruz’s unit commander, a 24-year-old lieutenant, deserted rather than comply with the order. Cruz – who asked to be identified by a pseudonym for fear of reprisal – followed suit, and fled to a neighbouring country. Several other members of the unit have disappeared and are feared dead.

 “If I went home, they’d kill me. Ten of my former colleagues are missing. I’m 100% certain that Berta Cáceres was killed by the army,” Cruz told the Guardian.

 Cáceres, an indigenous Lenca leader who won the prestigious Goldman Environmental Prize in 2015 for a campaign against the Agua Zarca hydroelectric dam, was shot dead in her home in March. Before her murder, she had reported 33 death threats linked to the campaign and had warned international human rights delegates that her name was on a hitlist.

According to Cruz, Cáceres’s name appeared on a list given to a military police unit in the Inter-institutional Security Force (Fusina), which last summer received training from 300 US marines and FBI agents.

………

Cáceres’s daughter, Bertita Zúñiga, said Cruz’s testimony strengthened the family’s calls for an independent international investigation to find the intellectual authors.

“This shows us that death squads are operating in the armed forces, which are being used to get rid of people opposing government plans. It shows us that human rights violations are state policy in Honduras.”

Hillary Clinton’s foreign policy cred is a myth.

She has been wrong, and continues to be wrong, on Everything.

This Wouldn’t Have Happened If the Original Story Hadn’t Gotten a Lot of Ink

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The USAF inspector general lost over a decade of corruption and mismanagement files back, and now, following surprisingly extensive coverage of this mishap, they appeared to have rectified the error. I thought that the loss was suspicious, and I don’t think that the recovery efforts were as herculean as the article implies.

My guess is that no one wanted to try to recover the data, but it got too hot not to try:

The U.S. Air Force says it has recovered files from 100,000 inspector general investigations dating back to 2004.

In a short, four-sentence statement released midday on Wednesday, service officials said the Air Force continues to investigate the embarrassing incident in which the files and their backups were corrupted.

“Through extensive data recovery efforts over the weekend and this week, the Air Force has been able to regain access to the data in the Air Force Inspector General Automated Case Tracking System (ACTS),” the statement reads.

………

The inspector general’s office investigates claims of waste, fraud, and abuse within the Air Force.

It may be innocent, but it smells like a 3 dead dead gopher in august.

End This Guy’s Political Career

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This would create the largest health insurer in the country, but hizzonner thinks it’s fine to put a their own lobbyist in charge of creating a behemouth that would dictate healthcare to 53 million people.

Corruption doesn’t begin to describe this:

The regulatory review of the largest health insurance merger in U.S. history has now become a major political battle, pitting a national Democratic leader against his own party. On Friday, Connecticut Gov. Dan Malloy — a top Hillary Clinton surrogate who is the co-chair of the Democratic National Committee’s platform panel — faced pressure from his state’s Democratic House speaker to remove his appointed insurance commissioner from her role regulating Cigna’s controversial mega merger.

Connecticut House Speaker Brendan Sharkey’s call on Friday came after Clinton and former Health and Human Services Secretary Kathleen Sebelius raised concerns about the prospect of the merger harming the 53 million Americans who could be affected by the transaction. The deal is currently facing an antitrust review by state and federal regulators.

The political fight in Connecticut — which is leading states’ regulatory review of the merger — follows an International Business Times investigation documenting Connecticut Insurance Commissioner Katharine Wade’s personal and familial ties to Cigna, as well as an increase in campaign contributions to Malloy-linked political groups from donors affiliated with the merging companies. Wade, Cigna’s longtime in-house lobbyist, was appointed to her state government position by Malloy in early 2015 — just as Cigna and Anthem were finalizing their merger proposal.

“At a minimum, the commissioner should recuse herself from further involvement in the Cigna-Anthem merger review,” said Sharkey, according to the Connecticut Post. “Whether a potential conflict crosses a legal ethical line should not be the only factor here. Perception of a conflict is also an important part of the equation, and most onlookers, including consumer and health-care advocates following this issue all have the same perception.”

This is pay to play bullsh%$ at it’s worst.

Not Enough Bullets

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What a surprise, Peabody Energy, the biggest coal company in the country, has been bankrolling pretty much every nutty climate change denier they can find.

Who cares about the destruction of the world, we have profits to make:

Peabody Energy, America’s biggest coalmining company, has funded at least two dozen groups that cast doubt on manmade climate change and oppose environment regulations, analysis by the Guardian reveals.

The funding spanned trade associations, corporate lobby groups, and industry front groups as well as conservative thinktanks and was exposed in court filings last month.

The coal company also gave to political organisations, funding twice as many Republican groups as Democratic ones.

Peabody, the world’s biggest private sector publicly traded coal company, was long known as an outlier even among fossil fuel companies for its public rejection of climate science and action. But its funding of climate denial groups was only exposed in disclosures after the coal titan was forced to seek bankruptcy protection in April, under competition from cheap natural gas.

Environmental campaigners said they had not known for certain that the company was funding an array of climate denial groups – and that the breadth of that funding took them by surprise.

………

“The breadth of the groups with financial ties to Peabody is extraordinary. Thinktanks, litigation groups, climate scientists, political organisations, dozens of organisations blocking action on climate all receiving funding from the coal industry,” said Nick Surgey, director of research for the Center for Media and Democracy.

“We expected to see some denial money, but it looks like Peabody is the treasury for a very substantial part of the climate denial movement.”

Peabody’s filings revealed funding for the American Legislative Exchange Council, the corporate lobby group which opposes clean energy standards and tried to impose financial penalties on homeowners with solar panels, as well as a constellation of conservative thinktanks and organisations.

I really hope that someone can find a way to send their executives to a federal PMITA prison.

They deserve it.

Some Chart Pr0n that Explains Why So the Voters are Pissed Off

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This table shows it all. (click on the picture for a larger popup)

Basically, it shows that the wealthy and powerful have become even more wealthy and powerful by stealing from the rest of us.

Even if people don’t know the actual numbers, they know that our society has descended into a morass of, “Crony capitalism, pay-to-play politics, [and] special interests,” that have further enriched the rich and their pet politicians.

It’s why populism on both sides of the political has been so popular lately.

Mme. la Guillotine is looking increasingly attractive to a lot of people for this reason.

H/t naked capitalism.