We welcome readers' comments, questions, or criticisms sent to unknownnews@inbox.com, and we publish any emails that (in our subjective opinion) add to the discourse.       Spam won't be tolerated, we're impatient with wingnuttery, we won't fix your typos or tidy up your grammar, and our readers are usually too intelligent to insult each other. If you're responding to an earlier comment please include the link or some clue for context (like "in answer to wlgriffi on Tuesday").       Anything sent to Unknown News may be published. If you don't want it published, say so plainly. When we publish incoming emails, we edit out the sender's last name and email address (if we slip up, or if you want your full name and email address published, please let us know). Of course, if your email is unambiguously intended only to annoy, insult, or threaten us, we'll publish it with all the details and leave it on-line forever.       Comments are added on-line whenever we read our email, which might mean ten minutes from now or might mean tomorrow. If our email address ever fails, please use one of our back-up email addresses.       Your participation is sincerely appreciated unless you're a poopy- head. Also, don't be a poopyhead. — Helen & Harry Highwater, Unknown News   Like the URL says, this website is about unknown news. Our news comes only from mainstream, professional journalists or (rarely) other sources we trust entirely, with no nuttiness and no interest in the same news you see everywhere else. What we believe We believe in liberty and justice for all, so of course, we oppose many US government policies. This doesn't mean we're anti-American, redneck scum, pinko commies, militia members, or terrorist-sympathizers. It means we believe in freedom, as more than merely a cliché. We believe you have the right to live your own life as you choose, and others have the equal right to live their lives as they choose. It's not complicated. We believe freedom leads to peace, progress, and prosperity, while its opposite -- oppression -- leads to war, terrorism, poverty, and misery. We believe it's preposterously stupid to hate people because of their appearance, their race or nationality, their religion or lack of religion, how they have sex with other consenting adults, etc. There are far more apropos reasons to hate most people. We believe in questioning ourselves, our assumptions, each other -- and we especially believe in questioning authority (the more authority, the more questions). We believe obedience is a fine quality in dogs and young children, but not in adults. Like America's right-wingers, we believe in individual responsibility, hard work to get ahead, and stern punishment for serious crimes. We believe big government should not be blindly trusted. But unlike most right-wing leaders, we mean it. Like America's left-wingers, we believe in equal treatment under law, war as a last (not first) resort, and sensible stewardship of natural resources. We believe big business should not be blindly trusted. But unlike most left-wing leaders, we mean it. Like libertarians, we believe it's wrong and reprehensible to arrest people for what they think, believe, look like, wear, eat, smoke, drink, inhale, inject, or otherwise do to themselves. But unlike many libertarians, we're not obsessed with the gold standard, we don't believe incorporation is humanity's highest achievement, and we don't believe everything in life comes down to dollars and cents. We've read and enjoyed Ayn Rand's novels, but we understand that they're works of fiction. We're skeptical, and we're sick of so-called 'journalists' who aren't skeptical at all. A reader asks, what are our solutions? We propose no solutions except common sense, which is never common. We like the principles of democracy, and the ideals broadly described as 'American'. The US Constitution is a fine and workable framework for solutions, when it's actually read and thoughtfully understood by intelligent statesmen and women. So, no manifestos from us. We don't dream that big, and if there's one thing the world doesn't need it's yet another manifesto. Our suggestion is: think. A fact-based instead of faith-based approach leads to solutions for most of the recurring issues of our time, from abortion to global climate change, pollution to universal health care, careful but real regulation of industry and economy, hunger, war, terror, human rights for humans not for corporations, science not religious doctrine in public schools, equal protection and prosecution under law, etc. Approach problems without glorifying stupidity, without demonizing intelligence, and answers usually come into focus. These pages are published by Harry and Helen Highwater, happily married low-income nom de plumes and rabble-rousers from Madison, Wisconsin (with a few friends scattered around the world helping out). We try to spotlight news that hasn't gotten enough (or appropriate) attention in American media, along with our opinions and yours. We bang our keyboards against the wall, because it doesn't hurt as much as banging our heads. Helen & Harry Highwater     (from About Unknown News)

#  Lacey K. on July 27 —

I had to let ya'll know that I really miss your weekly updates. I had unknown news withdrawal and didn't know what to do with myself for the first couple of weeks. I really feel like everyone else is really lying and its you guys who hold the truth!

It enrages me to see people posting comments urging you to quit doing what you're doing. It proves you should not. I understand the frustration that comes with taking on the fight of finding out the truth about news and politics, etc in our country and beyond. I, like you, have recently realized our country and most of the people in it are hopeless. Things, in general, continue to get worse. And yet I can't ignore it. I still have the urge to stay informed. That's were you guys always come in!

From reading the comments it seems there are many others like me who dearly miss you. Words cannot explain how important your site is. Just know there are dedicated readers out there such as myself anxiously awaiting your return. And you will be returning... right??? ... riiiight???

In the meantime, might there be a news site you would recommend in your extended absence?

I look forward to your response, as always.

#  Helen & Harry —

As always, such kind words are appreciated. I don't know any other websites that do once-weekly round-ups akin to what we used to do, but for ongoing updates we'd recommend Media Matters, ThinkProgress, and Washington Monthly.

I agree that what we did for all those years was needed and still is, but of course our perspective on that question isn't exactly unbiased. For now and for the foreseeable future, though, I must dedicate my efforts to survival for myself and my family.

Our absence is a small ripple effect of the overall tidal wave that is the cornerstone of right-wing strategy. What those bastards have figured out is that people who work reasonable hours with reasonable protections and are paid a living wage have time to follow the news and be politically active — so if they can make life difficult, then ordinary people will be forced to work more for less pay with less protections and no safety net, leaving less time, interest, and energy to follow the news and be politically active.

Like most people I know, we're just too exhausted and frayed, working too hard at real life, to have time or energy for rabble-rousing or rocking the boat.

#  Daniel L. on July 16, 2010 —

To whom it may concern: I just would like to say that after accidentally stumbling onto your website I will never makethat mistake again. It is people who support this website that makes soldiers like myself ashamed for defending our country and the inconsderate worthless excuses for life that form bias opinions on broadcast them when they themselves have never been placed in harms way or experienced 120 plus degree weather while operating on less than 2 hours of rest. I hope when you lay your head on your pillows at night you find sleeping difficult because of the deceased soldiers former lives that you have turned into a mockery. Sent from my iPhone

#  Helen & Harry —

Not much I can say to you, soldier, beyond the obvious — that being paid to follow orders onto 120° killing fields in foreign lands is not "defending our country".

I hope you survive in good health and return soon to America, which could use defending in ways that have never occurred to you, ways that don't involve toting guns and doing as you're told.

#  Rebecca on July 3, 2010 —

You are missed.

#  Helen & Harry —

Thanks.

#  C.C. on July 7, 2010 —

Oh my God, they killed Unknown News.

#  Helen & Harry —

Bastards.

#  Tex on June 29, 2010 —

Howdy folks, I just wanted to take the opportunity to thank y'all for the work you have put into this site. Thumbs up from this hipbilly leftneck hunkered down in the Blue Ridge. I just hope you return at some point and continue rabble rousing.

I do understand burnout. Hell, I don't just get disgusted with the news, humanity itself drives me to the cabin for extended periods of time. I find that my most affable behemoth hound is better company, more honorable and a much better conversationalist than 99% of the two legged critters I run into.

At any rate, thanks for Unknown News. I do hope y'all recoup and come back some day.

Best atcha,

#  Helen & Harry —

And all our appreciation, right back at ya.

#  Ralph on June 20, 2010 —

I don't know how many years you did it, but I read it for seven years and your website was always a diamond under the hole in an outhouse. That means: Damn good in a web full of garbage. Your hard work has been appreciated, and I wish you both whatever happiness you can squeeze out of what's left of America.

#  Helen & Harry —

We did it for ten or eleven years. It's sort of a blur, and at the moment I can't remember whether we started in early 1999 or early 2000. Of course, we have no files to check.

I'll say this: I think we did good work, but frankly, I don't think it's worthwhile to make the effort any more. The battle is lost, the nation is down for the count, and we're a lot happier following your advice and chasing whatever happiness can be had.

God bless America, and thanks for your kind words.

#  WashedOut on June 17, 2010 —

There ought to be a prize, man, and you ought to get it. I've been reading Unknown News for as long as I've been on-line, since shortly after 9/11, and you have always had the sanest site on the internet. Seriously, I hope you hear a long round of applause in your ears, you deserve it.

#  Helen & Harry —

We don't hear any applause and wouldn't say we deserve it, but your kind comments are sincerely appreciated. Thank you, and be prepared for the worst. It's coming.

#  kris on June 13, 2010 —

i just finished reading your page and saw the farewell message

this makes me entirely sad, I have been reading your website for at least 6 years and you guys have done a bang up job

you will be missed greatly

if i ever manage to get some money together you are definitely getting a donation.

#  Helen & Harry —

You just sent a wonderful donation, by sending that note. Couldn't ask for anything more — thank you.

#  The Canadian on June 13, 2010 —

I'll miss your posts ;-)

Perhaps you will be back sooner than later? I hope so.

In the meantime, I'll check out your other posts. Next few weeks should be interesting.

#  Helen & Harry —

Appreciated, dear TC. We'll be back eventually, I hope.

#  good riddance on June 12, 2010 —

how unsurprising that youve quit, telling so many lies must be really tiring. the web is a smarter place now that your gone.

#  Helen & Harry —

Dear stranger, your opinion of our blog means less than nothing to me.

What's much more important, what's unforgivable, is what you and your ilk have done to America. I doubt you're bright enough to ever realize it, even as the wars move into their second decade, as the cancer rates rise, as increasing climate change dooms millions, as oil coats the shores of Louisiana, Florida, and soon Virginia and beyond, but all this and so much more has been made possible by your willful ignorance and enthusiastic support for criminal government and criminal capitalism.

With all the sincerity in my soul, I ask only this: Please fuck yourself enthusiastically up the ass with a loaded six-shooter and squeeze the trigger twice, and may no-one anywhere have mercy on your soul.

#  J.S. Magruder at Eat the Blog on June 10, 2010 —

I'm going to miss your updates, but I sure do understand outrage fatigue. I hope the stuff in your day to day life gets better, and if there's anything we can do for you guys, give a yell.

#  Helen & Harry —

Thanks, love. Nothing we need but some time away from staring down the abyss. I'll still be visiting your delightful blog on a regular basis — sanity and decency are such rare commodities and you've got plenty. All our love,

#  Melvin on June 7, 2010 —

Hey, you will be missed. Take care of yourself first, you matter and you've done damned good work here.

#  Helen & Harry —

Thanks, and adios. I feel better already.

#  Angry Annie on June 7, 2010 —

Big hug and enjoy your summer hiatus!

#  wlgriffi on Monday —

You wrote: "Golly. Are you scared? You're obviously supposed to be. So where's the headline that says Israel has a hundred or so nuclear weapons now, many of which are aimed at Iran? Wouldn't that be scary too?"

Comment : You have to be kidding? Raise criticism of Israel? See what happened to Helen Thomas for speaking her mind on Israel. Repercussions.

#  Helen & Harry on Monday —

The IDF was skulking around the bushes in front of our apartment today. (Just kidding.)

#  Marie K. on Monday —

From Gaza to Afghanistan and Pakistan

It's been a while - I am still following events closely, but for the last few months I've been working on my family's history. I've discovered ancestors I didn't even know existed, and I've spent time collecting historical info. related to their times and locations. I'm not finished, but current events have grabbed me again.

I could write a lot about the attack by Israel on the Mavi Marmara ship, but a lot of eyewitness accounts have now reached the Internet. Although each person's experiences and info. differ a little, the Turkish and non-Turkish aid workers accounts are very similar. Thus, a pretty consistent picture IS emerging. I'm putting a few links below to one collection of eyewitness links and two single but important accounts. It is definitely worth reading as many eyewitness accounts as you can manage so that the lies can be countered. Mike Rivero at WRH has also put up a lot of info.

SO, what am I sending after all of this time? It is some info. that I unexpectedly came across as I was looking for an e-mail address for the well-known Internet writer Gareth Porter. He'd put in some info. I considered incorrect in a recent article, and I wanted to ask him about it. I didn't find his e-mail address, but I found some of his earlier articles especially one that brought up a subject related to Pakistan and Afghanistan that was new to me.

For some time now I've wondered why the Pakistanis have seemed OK with aiding the killing or killing off themselves their citizens in their North-West Frontier Province (NWFP) [now renamed]. Now, I think I know why--some other issues are explained, too. What got me going was Porter's article proposing that "Pashtunistan" become a country.

Pashtunistan?? So I turned to the sometimes problematic Wikipedia to get a start at least (hopefully, this won't lead to your getting more nasty comments). It IS, after all, a source that gives names, dates, statistics, etc., and some info. about events that have occurred. Here's what I found:

1) "The Pashtuns are the largest ethnic group in Afghanistan and the second largest in Pakistan." In Afghanistan "they are concentrated mainly in the south and east," but they "also exist in northern and western parts of the country as a minority group. In Pakistan they inhabit mainly Khyber Pakhtunkhwa [formerly NWFP], the Federally Administered Tribal Areas (FATA), as well as parts of Balochistan, Gilgit-Baltistan in Pakistan-administered Kashmir, and Mianwali and Attock districts of north-west Punjab." Karachi is a Pashtun city. The have their own language, Pashto, and a very long history in the area, since at least 500 B.C.

2) In the 19th cent. "the Pashtunistan region became an area of importance for both the British and the Russians," and there were "Great Game" wars over it. The end result was that "the Afghans gave up nearly half of the Pashtun territories to the British," lands, such as the NWRP, used when Pakistan was created and lands that Afghanistan repeatedly sought to have included in Afghanistan. The Afghan government even initially opposed Pakistan's entry to the UN, and they've refused to recognize the Durand Line used to set out Pakistan's borders. In the '50s, the Pakistanis and Afghans fought over the Pashtunistan issue. However, in the '60s and '70s the Afghans backed Pakistan in its wars with India to avoid having to fight the much larger India later on.

3) Despite this support, Pakistan worked to counter the Afghan's "Pashtunistan policy by supporting Islamist opponents of the Afghan government including future Mujahidin leaders Gulbuddin Hekmatyar and Ahmad Shah Massoud," [that the US has also backed among others], and this Pakistani policy successfully upset politics in Afghanistan. Thus, the Afghan's settled for a commitment from Pakistan of "provincial autonomy for Pashtuns, which was already guaranteed by Pakistan's Constitution, but stripped by the [Zulfikar Ali] Bhutto government."

Unfortunately, I don't know exactly what today's Pashtuns think about this issue nor do I know what the non-Pashtun population of Afghanistan think, but it is the non-Pashtuns that have cooperated with the US against the Taliban/Pashtuns in the post 9/11 fighting. The article continues by explaining some of the historical proposals made by the Afghan government on the Pashtunistan issue which ARE interesting to read. As for what the Pashtuns in Pakistan think, it seems that they did become better off than the Afghan Pashtuns, but with Pakistan's recent policies, who knows? It's a race to the bottom for both I guess given what war with the US/NATO has brought to the Afghan Pashtuns.

I've already mentioned the main thing this info. explained for me, but Pakistan's support of the US and probable Pashtun dislike of the Bhutto family now make more sense to me.

P.S. the renaming of the NWFP on 31 March 2010 to Khyber-Pakhtunkhwa [Pashtun quarter] was a gesture acknowledging this history.

SOME ATTACK ON GAZA LINKS:
a. "Detailed Compiled Eyewitness Accounts Confirm Cold-Blooded Murder and Executions by Israeli Military" LINK
b. "Ken O’Keefe: 'We, the defenders of the Mavi Marmara, are the modern example of Gandhi’s essence'" - one guy's account--skip the intro. stuff and go right to the "Read O’Keefe’s statement in full below" part. Reading it as he wrote it makes it more understandable. There's a video, too. I found this one especially important. LINK
c. "Kidnapped by Israel, forsaken by Britain" - another important account by one guy LINK

#  Thom F. on Sunday —

Take your fucked up liberal lies and America's always wrong bullshit and shove it up your ass with a fork.

#  Helen & Harry on Sunday —

Thanks for caring enough to offer such a good suggestion. My fork is ready. Just one thing I'd ask first:

Point out anything we've asserted that's a lie or bullshit, and cite a reputable, non-partisan source establishing that we got a fact wrong. Do that, and I'll cheerfully publish a retraction — and then I'll print out the page in question, rip it to tiny bits, and put this slightly stained tableware to the use you've suggested.

#  Theo Lipschitz on Sunday —

This is a much lengthier, chartier, truthier discussion of our situation as we descend into the bottomless abode... on the plus side of the ledger, an entire generation of politicians will be forced to look for honest employment...

Into the Abyss: The Cycle of Debt Deflation

Excerpt: One of the most famous quotations of Austrian economist Ludwig von Mises is that “There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency involved.” In fact, the US economy is in a downward spiral of debt deflation despite the bold actions of the federal government and of the US Federal Reserve taken in response to the financial crisis that began in 2008 and the associated recession. Although the vicious circle of debt deflation is not widely recognized, precisely what von Mises described is happening before our eyes. [...]

#  Siskiyousis on Sunday —

We are seeing this now as a result of our leadership (WTM) being more greedy than numerative...

#  wlgriffi on Sunday —

Gaza blockade: Iran offers escort to next aid convoy

3RD round in a 15RD Title Fight?

#  J.R. Mooneyham at jrmooneyham.com on Saturday —

Hackers can now send swat to your door. This awful stuff needs to be more widely known about so more precautions will be taken to prevent it.

Pranksters terrorize Delco family in 'swatting' call

#  Siskiyousis on Saturday —

Since when is an international Relief Mission a bunch of 'activists'?

I feel more Persian every day...

#  Ziegerheimer on Saturday —

You know why a Dem boycott is appropriate and not counter-productive? Because continuing to support Democrats after their serial betrayals is like *almost* quitting an addiction -- you think, "I'll quit after the next one, just one more time will be ok." But there is always a next time after the next time, and the problem doesn't go away, the right time never happens. Just one more. But one is never enough and always too many...

Kicking the Dems out in November is a necessary intervention. Shock therapy. (And fully deserved!)

Better now than later. Kick them out in November and the Repugs start sharing the blame (which they fully deserve!) Then in 2012 maybe we'll see some real change as both perps are indicted!

#  screamer739 on Saturday —

Your site is unreadable on cell phones. Fix it.

#  Helen & Harry on Saturday —

Well, first off, bite me. I'm not your employee and I don't take orders. Try using words like "please" once in a while.

I'm aware that more and more web denizens are surfing on the mobile phones, and I would've loved to make the site accessible to those readers. I spent an hour and twenty minutes a few months back trying to figure out how to re-do Unknown News for cell phones. Couldn't do it. All the instructions were over my head. Thus the one- and two-inch screen audience will have to struggle through life without our website.

#  Crisis WWIII on Saturday —

Wayne Madsen reports that several American military ships were in the area when the South Korean ship Cheonan was sunk. He says that ...

#  Helen & Harry on Saturday —

Ah, no. I'm cutting you off here. Our website is based in the real world, and I do not give a quarter of a fart what Wayne Madsen says.

#  Harold the Housecat on Friday —

I advise everyone to totally, comprehensively absolutely boycott of all Democratic politicians: no donations, no votes, not even any demands... no communication, a pure shunning.

Reid statement defends Israel, essentially blames activists for their deaths
By Ron Brynaert

Excerpt: [...] Israel has an obligation to protect its citizens and therefore has a clear right under international law to prevent weapons from getting in the hands of terrorists determined to target them. Israel indicated it was willing to put in place a process to ensure that legitimate humanitarian relief reached Gaza. Unfortunately this offer was rejected.

"Israel has pledged to carry out a transparent and thorough investigation of this incident, and I look forward to its findings ..."

#  Helen & Harry on Friday —

Israel's recurring atrocities are like police crimes — whatever version of events police describe, no matter how preposterous, is taken as gospel truth — unless there's unedited video of the entire event, and often even if there is.

Israel will judge itself in the right and that judgment will be respected by all Judeo-Christian nations, unless someone on the boat had a camera running and the film was miraculously not destroyed by the Israeli invaders.

As for Reid, he's a worthless turd and always has been, and certainly, neither he nor the Democratic Party deserve a nickel of support from anyone who cares about liberty and justice or peace and prosperity. Congress is owned by Big Money, and it seems to me that about 500 out of 535 are basically employees of Big Money — Big Oil, Big Business, and sure, Big Israel.

#  Ernie M. on Friday —

Barack Obama's presidency is a failure. On every front his policies are a disaster and worse than that, he is just as clueless as George W. Bush. I thought having a smart president in office would be a decisive factor. How wrong I was.

Obama's brain is irrelevant. It does not contain the necessary information to successfully lead the US out of crisis. As for heart, he hasn't shown it. No courage either. Time to go vizit the Wiz...

Obama's signature policy intiative was health care reform. Most of the new law doesn't take effect until 2014 and the law does not control costs. Insurance companies can continue to raise rates by 10% a year until only the rich and the very poor (who receive government aid) will be able to afford insurance -- the rest of America will get fined for not buying insurance they can't afford, and taxed to pay for the healthcare of others.

None of Obama's other policy intiatives are successful. He's quagmired in Afghanistan now. (Heckuva job, Barky.) And the bailouts for the banks simply bankrupted us. They aren't lending our money back to us, they're parking it at the Fed to earn interest! Doh. Moreover, Barack is as happy as a toddler with a warm, full diaper:

President Barack Obama says the addition of 431,000 new jobs in May shows "the economy is getting stronger by the day." LINK

Unfortunately, all of those jobs were census taker jobs -- except for 41,000 new jobs in the private sector (probably at McDonald's and debt collection agencies...).

Even when Israel massacres aid workers in international waters, shooting an American citizen in the head 4 times, Obama shows no leadership. He says it is "tragic" and calls for an investigation. That doesn't work for me, but apparently it is the party line... Joe Biden asked, "So what’s the big deal here?" LINK

Even as the US continues fighting 2½ wars and is being drowned by BP's oil, Obama's days are filled with photo-ops. As Jon Stewart showed us last week, each time Obama says he won't rest until the leak is stopped and that he is fully engaged, he heads off to another photo op concerning basketball or girl scouts. In my book, when the United States is at war — and we are, aren't we? — the president should be working 24-7 on winning the war.

I was shocked at Bush's ability to leave the thinking to others, but I am totally dumbfounded to discover that Obama really doesn't participate much in whatever passes for thinking in the US government; he knows nothing except what he is told, and like Bush, seems to always agree with the last advisor in the Oval Office (or actually, he agrees with everyone, which is worse!).

Bah.

If you want to begin worrying now, understand that the GOP positions are that a) the deficit and budget debt must be reduced; b) taxes must be cut, especially for corporations and investors; and c) the wars must continue until victory and probably Iran should be taken out forthwith. If you add those up, the implication is that they're going to disassemble everything except for the US police state apparatus and the "defense" department.

Compared to this, Obama seems like a moderate — except for the fact that his policies are a total failure and he is leading the country to an epic disaster.

#  Helen & Harry on Friday —

Fully endorsed, word for word.

#  wlgriffi on Thursday —

You won't see this video on American TV.

Interview with Jamal Elshayyal, Al Jazeera reporter aboard the ship attacked by Israelis.

#  Helen & Harry on Thursday —

Appreciated, sir. I hadn't seen this and yeah, won't see it on American telly, that's for sure. And neither will anyone else. Al Jazeera is pretty much blacklisted off American cable.

#  Washboard Abs on Thursday —

Obama's coming impeachment: A curious dynamic is about to take place: Blagojevich's trial begins today (Thursday) and it is likely that he will be dragging Obama and Rahm Emmanuel into the pigpen. And given the Joe Sestak scandal (which may seem insignificant but really is not because it demonstrates how the party machines prevent voters from effecting regime change) the Rod Blagojevich defense will be given more credibility -- it is simply that way Illinois and US politics works: a gigantic orgy of crime, greed, fear and loathing...with selective prosecution of the Outs by the Ins.

The Blago trial may last four whole months! That'll take us right up to October, one month before the elections! How exciting. Regardless of how the trial concludes, the journey will be a slam to the Dems and Obama. And it couldn't come at a worse time.

The GOP needs to win 40 new seats in the House to take control back (and 10 in the Senate.) If the GOP wins the House they can go ahead and pass Obama's articles of impeachment by a simple majority. Just like they did to Clinton.

And given how Obama has betrayed his base a lot of us will be rooting against him. (Insert swear words here.)

This looks bad for Obama and the Dems. They're the new Bush, hated and loathed. Count on them to really talk left and do some lefty window dressing prior to the November elections. Nothing significant, like fulfilling campaign promises to end the Iraq War in 2008, haha. Personally speaking, I won't be voting for the lesser evil ever again. That is a sucker's game. The Dems think the base has nowhere to go, no refuge except to re-elect their betrayers. Well, we can stay home or just vote for 3rd party candidates as a protest; take a stand, for once!

http://news.yahoo.com/s/nm/us_blagojevich_trial
http://www.politico.com/news/stories/0610/38039.html
http://news.yahoo.com/s/ap/20100602/ap_on_el_se/us_colorado_senate
http://www.marketwatch.com/story/parties-dig-in-as-battle-for-congress-revs-up-2010-06-02?dist=countdown
http://en.wikipedia.org/wiki/Impeachment#Process

#  Helen & Harry on Thursday —

I want to doubt that anyone close to Obama was stupid enough to make illegal offers to Blagojevich or Sestak. If anyone in Obama's circle was that stupid, though, I sure as heck hope it was White House Chief of Staff Rahm Emanuel — there's no Democrat outside of a prison I'd rather see relocated inside.

But as you imply, it's really immaterial whether there was illegal conduct by anyone in the Obama administration. All that matters is whether Republicans can make their claims of illegal conduct stick. If they can, and if they get a majority in Congress, impeachment is a rock-solid bet. They will drink his milk shake.

Republicans, as the party's official policy, seek the absolute destruction of all political opponents. Good government is not in the Republicans' top ten priorities, and reaching out to Republicans for bipartisanship or compromise is an absurd waste of time. I don't see how anyone who was awake during and after the Clinton administration can fail to see that. Yet somehow Barack Obama remains ignorant and oblivious of this, and a week doesn't go by without Obama again reaching out to the Republicans. As if there's something there to be reached.

Sure, some Democrats and left-wingers who feel doublecrossed by Obama will be rooting against him as these dramas unfold. There are more of us, I suspect, who won't be rooting against him or for him, but just won't feel that we have a rooting interest at all. And that might be more harmful to his fate — a heck of a lot of Americans who would be pulling for Obama if he'd been even a middle-of-the-road guy, won't much care. If he's impeached, I suspect I would watch it as theater, just for entertainment, with a tub of popcorn.

Even with impeachment a possibility again, it's hard to care much about whether Republicans take control of the House. What's the difference? Republicans effectively control both houses of Congress now, the numbers be damned, and Republicans seem to control the White House. Obama hasn't done anything in response to the Gulf emergency that a competent (i.e., non-Bush) Republican like Clinton, Dole, or Bush the Elder wouldn't have done, and he hasn't said or implied or even hinted at anything that Republicans wouldn't like. I doubt he ever will, no matter how bad it gets.


#  Washboard Abs on Thursday —

Great response.

Addendum: Obama's impeachment will be a mind-blower because the Demos refused to attempt impeaching Bush, whose actual crimes were severe and many. So Clinton gets impeached for lying about sex; then Bush starts a war of aggression, tortures and assassinates prisoners and suspect, spies on every American illegally, etc. and the Dems refuse to seriously consider impeachment or even voting against his policies; then Obama's minor political corruptions come to light and he gets impeached.

That scenario should make the Democratic voters heads explode in rage.


#  Helen & Harry on Thursday —

I always liked Gallagher, so exploding heads sounds like fun.

Numerous and enormous problems face America, and no solutions will be allowed until the left-wing gets a political party. At present, the right-wing has two parties, a far-right party and a plain-right party. Leaving about half of America with no representation.

Between you and me, though, I think it's too late. Too much damage has been done. We've already plunged over the cliff and we're just biding time until we hit bottom. Stock up on canned goods.

#  I still like Ike on Thursday —

I'm having a hard time figuring where you're coming from. You hate Republicans and BP, but you also hate Obama and Democrats. Do you hate everything? Do you hate capitalism?

#  Helen & Harry on Thursday —

Sounds like you've got us figured out pretty well. Yeah, when it comes to Democrats and Republicans we pretty much hate everything and prefer intelligent, un-bought answers instead. We're enthusiastically in favor of capitalism — with firm, balanced, unpoliticized regulation, because "deregulated" capitalism is just plain feudalism. Check out our "about us" page for more details.

And I'd trade Obama for Eisenhower in a heartbeat.

#  Angry Annie on Thursday —

Can you begin to imagine the international furor and the American and Israeli cry for war if the Iranian military had attacked a small boat full of Israeli volunteers carrying humanitarian aid? Tehran would be in flames by now, and Israeli and American missiles would still be flying like fireworks on the Fourth of July.

#  Hermies P. on Thursday —

Seriously, your recent "Louisiana-as-Bhopal" piece really broke my heart. Almost made me cry at work. You write honestly and powerfully, and have the best bulls**t detector I've ever seen God damn, you should be president, or queen, or something! Keep it up as long as you can! Even if everything is ultimately a lost cause, there are noble reasons to champion lost causes...

PS: I thought this would make a good headline, but I have no idea what to do with it: "Has Big Oil Just Triggered the Apocalypse? You Bet Your BP!!!"

#  Helen & Harry on Thursday —

Thank you, sincerely, for the kind words. As everything grows uglier and oilier, every smidgen of humanity means more and more to me.

I liked your headline, too. Will whippersnappers too young to remember Rowan & Martin's Laugh-In get it?


#  Hermies P. on Friday —

I can't imagine. But to hell with whippersnappers!


#  Helen & Harry on Friday —

Words to live by.

#  Howard Sprague on Wednesday —

Hugo is trying to force the economy of Venezuela to perform. He just literally (yes) declared "war" on the “bourgeoisie”. Meanwhile, inflation this year is estimated to be 40% and the GDP declined 5.8% in the first quarter of 2010. Nationalizing more companies is unlikely to turn things around but that appears to be the direction he is going, stubbornly digging his hole deeper into classical Marxism. He's sounding like a lunatic now...

article excerpts:

* Chavez said Venezuela’s largest food producer, Empresas Polar SA, is manipulating workers into attacking his policies and challenged company President Lorenzo Mendoza to see who will last longer. Mendoza, Chavez said, won’t get into heaven because he’s wealthy.

* “You’ve declared an economic war against me, so I accept your challenge, stateless bourgeoisie,” Chavez said today during a visit to a state-run vegetable oil company. “I’m declaring an economic war with the help of the people and workers. War is war, my friend. Don’t complain to me later.”

* Private companies exploit their workers for economic gain and sell goods at “inflated” prices, Chavez said. The bourgeoisie should read more Karl Marx, he said.

* “The only way to lower prices is having the workers take control of the factory,” Chavez said. “Those companies that want to work together are welcome. Those who don’t want to cooperate, we’ll expropriate them. I repeat, war is war.”

Chavez Declares ‘Economic War’ Against Bourgeoisie

#  Mincemeat on Wednesday —

Is it time to just say, all is lost, and kiss it goodbye?

#  Helen & Harry on Wednesday —

Too late for a smooch farewell, it's already gone.

#  Penguin on Wednesday —

So I was watching Chris Matthews on Hardball for fifteen minutes or so before it occurred to me that I'd be better informed talking to my cat.

#  Mahdi Abdul Finkelstein on Tuesday —

Your weekly news dump on BP was excellent. I like the way you address the onshore impacts, particularly if/when the predicted 8 to 14 hurricanes hit. Hurricane season just began. What a wild card that is for the projects underway to cap and cleanup! More stuff I've read:

The big scare now is that the relief well may not work. Something about the high pressure at the leaking well. Implosion of the leaking well may be the Last Resort -- and even that may fail.

The Gulf economy is primarily shipping, oil/gas, tourism and fishing. They're fucked.

And there are reportedly many, many people who work in the cash market, not paying income tax. BP is refusing to compensate them since they don't have tax returns, or maybe even any records of any kind. They're fucked. :-)

Some people think the US ought to nationalize BP because BP can't be trusted and the US government is wayyyy more competent. :-) We're all fucked.

#  Helen & Harry on Tuesday —

Hey, thanks for the kind words. The gusher is on my mind most of my waking hours and it's in my nightmares and it's really a challenge to put my anger into words. Means a lot when someone I respect says we've done it well.

Choosing which entity, BP or the USA, is more incompetent would be difficult. Depends on the criteria being judged. The feds are probably more competent than BP at collecting taxes, and BP is undoubtedly more competent at avoiding taxes. My complaint is that profit concerns are heavily intermingled with concerns about capping the gusher. An entity without such heavy concerns about profit would have made different decisions during this disaster, and different decisions beforehand that might have prevented all this.

But I don't want BP nationalized. Heavens, no. Nothing less than dismantling it piece by piece will please me. Of course, nobody's looking to please me, and we all know that BP will emerge from this in far better shape the the earth. 'Cuz that's the American way.

#  Siskiyousis on Tuesday —

Cite yer sources; I don't trust "some people"... Hell, I don't trust "most people", either.

Cruise companies are really in trubble deep, as are the islanders that depend on their passengers. Now they will all have to take in sewing for NY fashionistas. Fishing has been barely nominal due to the dead spot and previous overfishing. All that dead spot shit is basically petrol products and giving it a new lease on life will probably just make for further deadness.

Shipping and pirates (again), probably. They don't need a failed state like Somalia, just lack of policing the waves.


#  Mahdi Abdul Finkelstein on Tuesday —

Yeah, my "sources". Such as they are...

nationalization: LINK

tax cheats: LINK

failure: LINK

Excerpt: "May 30, 2010 ... For the relief well to succeed, the bore hole must precisely intersect the damaged well. If it misses, BP will have to back up its drill, .."

#  wlgriffi on Tuesday —

Gaza: From blockade to bloodshed

Comment : The US may not be able to override this. This incident of Israeli provocation may not allow the US to silence the worlds revulsion and condemnation any longer. Your earlier comment about the Israelis being able to bluff it's way out of it's provocations may at least not now escape closer examination and end the US's blind defense of Israel's cry wolf.

#  Helen & Harry on Tuesday —

Man, I would love love love to be wrong wrong wrong and watch the world condemn Israel. But as reliably as milk sours if you leave it in the sunshine, the US has already come to Israel's defense. LINK


#  wlgriffi on Tuesday —

Sad isn't it. But the rest of the world seems to be marching to a different drummer recently and thumbing it's nose at us.

#  Angry Annie on Tuesday —

I hate what Israel is doing and routinely does, kill kill and kill some more, as much as anyone who doesn't know any of the victims by name, but Israel is a symptom, not the problem. The problem is this bizarre concept of "government" that encourages people to kill and get away with it. Happens every day of the week, happens in totalitarian China and Saudi Arabia and supposedly "civilized" countries like England, Israel, America...

#  Helen & Harry on Tuesday —

Yup.

#  Renegade Gargler on Monday —

1) English technical analyst Clive Maund provides a harsh assessment of global markets, and is not even bullish on gold, short term. Mr. Maund is very good at interpreting gold charts. Stock chart technical analysis is much less certain and I cannot vouch for his expertise in that area. However, the chart damage in May speaks for itself. Raising cash and/or buying SPY put options into strength (if any appears) looks like the prudent move:

The Looming Financial Holocaust - Is Closer Than We Thought ...
By: Clive Maund

=====

2) David Michael Green, professor of political science at Hofstra University in New York, really reams Obama for bushosity in his recent Katrina-like handling of the BP (Bills Paid) oil spill:

I Can’t Wait for Barack Obama to Become President
by David Michael Green

=====

3) Big news from Raw Story about the Israel massacre of activists bringing aid to Gaza: the attackers began firing before boarding the flotilla boats, thus putting the lie to the official cover(up) story that it was all just self defense. Following is also an essay by noted law professor Marjorie Cohn (she makes Obama look like an ambulance chaser with a night school law degree from Bullshit University.)

(I can't wait to hear the shamefully typical Obama move: talk left, move right and then give Israel a massage with a happy ending...)

In raw video, reporters claim Israelis fired on activists before boarding ship
By Stephen C. Webster

Update: Turkey will reportedly send military escort with future Gaza aid boats

Excerpt: In what could be a serious blow to Israel's cover story on the murder of at least nine humanitarian activists making their way to Gaza through international waters, raw video by an Al Jazeera producer, who was filming during the raid, appears to provide evidence that the IDF opened fire on the flotilla even before boarding it. [...]

#  Helen & Harry on Sunday —

Gotta give Harry credit here. When the news from Gaza first broke, the first thing he said after scowling was "It's way worse than they're letting on. I'll bet machine gunfire is how the Israelis said hello."

#  wlgriffi on Monday —

REMINDER: Bringing Religion to the Front Lines of Peace...

I guess this kind of supports your opinion on the nitwits who continue to insist on the religious crapola. I'm continually dumbfounded at the refusal of the U.S. Government to hold Israel to International law.

How Long will Israeli Aggression go on with U.S. Condescension?

At least nine dead as Israel storms aid ship, sparks outcry

#  Helen & Harry on Monday —

How long will it go on? Is this a trick question? You know the answer as well as I do — the killing will continue for as long as "Judeo-Christain ethics" rule the world, and there's nothing more Judeo-Christian than clearing the un-white people who worship the wrong God out of the way through the repeated application of Judeo-Christian ethics.


#  wlgriffi on Monday —

At some point revulsion by the world has to boil to the point of retribution.


#  Helen & Harry on Monday —

Retribution against Israel is commonplace. A few dead citizens now and then makes great PR for Israel's victimhood, they milk it to the max and retaliate for a 10-1 body count as a matter of policy. That kind of free-lance retribution has been going on since Israel was founded. Means nothing so long as no nations stand up to Israel, and no nations care about Israel's victims so long as Israel's victims have no nation. That's the way it's always been. Probably always will.


#  wlgriffi on Monday —

True but sad. This life long "bleeding heart liberal" who has always tried to believe that the good in mankind far outweighed the bad has been severely disheartened by the US's continued support for the injustice inflicted by Israel since it's founding. The imposition of the state of Israel will perhaps go down in the history books as the greatest blunder of diplomacy.


#  Helen & Harry on Monday —

I rarely think twice about the founding of Israel. It was before I was born, and thus only slightly less "ancient history" to me than the founding of America and slaughter and displacement of America's natives. Morally wrong, but history is full of moral wrongs and what's done is done.

I have a bleeding heart too, with a band-aid over it. Israel's crimes are outrageous time and again and ought to be condemned time and again but for all its eagerness to kill, if Israel opened fire and killed twenty people every day they'd still be way behind America.


#  wlgriffi on Tuesday —

True, but two wrongs still doesn't make a right.

#  John R.W. on Monday —

Once again, need to vent... this time about Mexico.

So I'm on Facebook and there's a discussion by a dancer friend of mine, who I really look up to as a noted Jazz dance historian and teacher, about the Arizona immigration law (SB 1070). Funny thing is: he lives in New Orleans.

All the typical comments had already been made about how the law mimics something California already has on the books and doesn't enforce. It was also pointed out that it's already illegal (Patriot Act) to walk around without ID. And so people start the usual clamoring for a ginormous fence and a dragnet involving 10's of millions of people (and, of course, how "simple" this would be).

Finally I respond to the initial question about why people are so mad about this law thusly:

It's wrong because it punishes the victims. Bottom line: business wants illegal immigration to continue. Period. Business enables Mexico to be a shit hole through their limitless schemes (NAFTA, IMF). Hence Mexicans come here looking for opportunity. And we all pretend that poor people run the world, should be punished for wanting to feed their families while the country club set remains invisible and unreachable. You end the demand for cheap, illegal labor and the problem largely takes care of itself. Ask yourself: who's looking the other way on this and why? Answer that and you'll know who to prosecute.

Then my friend responds with umbrage at the suggestion that people here illegally are victims, ignoring all the other crime and associated context I mentioned, as is typical with the so-called law-and-order crowd. His suggestion: close the border (again, simple, you know?), start documenting who is here (cops can be so helpful when there are millions of them), sort 'em out which, he says, "would not be too hard to do" and then... wait for it... SERIOUSLY PUNISH those who are here illegally (not the people who help create the conditions necessary).

So I just had to rejoin with:

So, if Mexico's businesses got together with their banks and government to trash the U.S. economy to keep our country dependent and available for ultra-cheap labor, assuming of course they were the big kid on the block, you would think of helpless Americans crossing the border in pursuit of basic needs as criminals? And if Mexican intelligence agencies had a long history of fomenting a bogus war on drugs that amounts to a war on the poor in North America as well as its own ghetto population and it created refugees en masse here in the States, the victims would be...the banks that launder the money? The corrupt cops? Until the citizens of this country are ready to get tough on REAL crime committed by the well-connected that perpetuates so much of this suffering, we will reap the whirlwind that is ours... fences and fingerprinting notwithstanding.

I'm not really sure why I even entered the discussion, other than my usual overflowing portion of righteous indignation, because unless you are up to speed on the IMF, NAFTA, The War on Drugs in Latin America, the CIA as a drug running agency, the Chamber of Commerce as something much, much different than an organization representing businesses that "sometimes makes mistakes" (like BP, poor fellows) you have no clue what I'm saying and I come off like a lunatic to all his friends (many of which are mutual). And people just tune it out and turn up the MSM which of course always covers for the real criminals.

These days I find I have a very small circle of friends. I'm just not willing to live in the reality distortion field. Going to my wife's office parties are always scary, painful experiences. It's always interesting to me to think what it would take for me to have remained a Republican? How much of my mind and soul would I have to destroy and what portion of that process would be conscious, if any?

#  The Canadian on Monday —

Unforgivable! Israel will pay a very high price for this botched operation in International Waters (boarding took place 80kms off the Gaza Coast, the Blockade arc is 20kms)

Video evidence shown to date provides little corroboration from either side as to who started shooting first, but it is a moot point anyway.

In the theatre of public opinion, Israel does not have a moral leg to stand on. Israel could not have handed a bigger PR gift to those persons and nations who despise its very existence.

The Israeli's have very publically displayed the further loss of their humanity.

#  Helen & Harry on Monday —

When I first read of the attack I assumed the report was false, just more anti-Semitic bull. The Israelis aren't stupid enough to try that, it'll make 'em look like monsters. And what d'ya know, it's true.


#  The Canadian on Monday —

Yes, as if things were not unstable enough in the ME. Now this.....

This places Jordan and Egypt in very tenuous circumstances. Egypt is also blockading Gaza. Jordan, who has signed a peace treaty with Israel, has a huge Palestinian population.

The USA is likely the only country in a political position who can try to settle this dust storm. And that outcome is far from certain.

I would not be surprised if the US changes its Israeli policy (if only this time) and supports a UN condemnation of Israel's actions.


#  Helen & Harry on Monday —

A UN condemnation and a dollar fifty might buy a cup of coffee. Means nothing.


#  The Canadian on Monday —

You are right. I was merely stating that, to my knowledge, the US has never publically reprimanded Israel. To do so would be a significant change of diplomatic tone.

In real life, however, it does mean nothing. It is sad statement of our world, though, that things become more meaningful only when enough money or guns make it so.

Perhaps it has always been so...

#  wlgriffi on Sunday —

Anti-Abortion "Fetus Dolls" Handed Out To Virginia Elementary Schoolers

Comment : I smell a cover-up underway here. I have doubts that any employee or teacher would do something that they believed would be frowned upon by the school administration or the local school board.

#  Not Enough Aspirin on Sunday —

My gut says that with the fifth or sixth BP emergency strategy failed, we are all ultimately screwed. Holy crap. Words fail me. We have finally done what Jacques Cousteau warned and worried about. We've fucking killed the planet, or at least kicked it in the nuts. Jesus H...

#  Tom A. on Sunday —

i know that this is not the first mail you have received urging you to stop using wikipedia as a source for your articles. there are probably many times more visitors to your site who simply navigate away once finding out you use wikipedia. (i almost did.) there are many reasons to not use wikipedia but, in my opinion, the top three are- most of its contributors are anonymous, many contributors have an agenda (other than distributing objective information), and some contributors intentionally spread false information. some do this to show that wikipedia itself is unreliable, some because they have no life. in conclusion, PLEASE stop using wikipedia as a source for your articles. it destroys your credibility. thank you for your time.

#  Helen & Harry on Sunday —

Nope, you're wrong from your very first sentence — this is the first email we have received urging us to stop using Wikipedia as a source for our articles. Wikipedia isn't where we look for news, and I can't remember linking there for news.

Quickly skimming our last month and a half's work, we've mentioned Wikipedia exactly twice. Both blurbs summarized news from behind the scenes at that site, and neither linked to Wikipedia as a source. Thus I can't take your complaint seriously.

#  John H. Mallory on Saturday —

Rand Paul pretty much disappeared from the national scene after his call for more legalized discrimination, but ... he's back. He's calling for the end of citizenship by birth in America, and he wants more high-tech surveillance and a fleet of helicopters patrolling the border 24 hours a day. How very libertarian!

Rand Paul Endorses Obviously Unconstitutional Plan To End Birthright Citizenship

#  Mary McNarry on Saturday —

Rather long, full of technical jargon jampacked with implications... Each week's essay by Doug Noland represents a refinement of his ongoing thesis -- hence the name, "Credit Bubble Bulletin" -- which he has been publicly developing for years and years in these little Saturday night essays. If you have been following his work you likely side-stepped the worst losses of the last 10 years (and maybe missed some bull-icious rallies :0-)

You might think (still?) that none of this directly concerns you. But in (this) reality the dangerous conditions Noland is exploring are far more hazardous to your health and well-being than either Osama Bin Laden's network or Uncle Sam's Big Brother network. Ignorance is not bliss...

* * *

Unwitting Beneficiary?
by Doug Noland

Excerpt: How about a brief review of “where we’ve been; where we are; and where we might be heading”?

The year 2008 witnessed the collapse of the Wall Street/mortgage finance Bubble. This historic Bubble was the latest of a long series of Bubbles going back at least to the late-eighties’ (“decade of greed”) excesses emboldened by Alan Greenspan’s 1987 post-market crash liquidity injections and assurances. This serial Bubble episode saw each Bubble emerge bigger than its predecessor – which required ever-increasing policymaker post-Bubble market interventions resulting in only deeper market distortions.

I have posited that unprecedented policymaker response to the 2008 Bubble collapse inflated a Global Government Finance Bubble. Arguably, this Bubble has the potential to be the biggest and most dangerous yet. It’s certainly complex and poses analytical challenges. At least here at home, Credit excesses have gravitated to the heart of the monetary system (government and Federal Reserve Credit).

Many scoff at the notion of yet another huge Bubble. With a focus on asset valuation, they would argue that stock and real estate prices are nowhere near Bubble territory. They would likewise dismiss the notions of a “Bubble economy” and attendant Credit addiction and systemic fragilities. The conventional view holds that the U.S. economy enjoys long-term growth dynamics that will over time hold sway over cyclical setbacks. Aggressive fiscal and monetary stimulus was, from their perspective, necessary to counteract extraordinary Credit system stress and to shove the economy back toward its sustainable growth track.

Bubbles are not obvious while they are inflating, and the Global Government Finance Bubble is no exception. The key characteristics of Credit Bubbles are various Credit excesses, distortions to the price and flow of finance, and heightened speculation. While the massive issuance of government debt is readily apparent, pricing distortions have been more subtle.

Fundamentally, this Bubble’s main price distortions emanate from the market perception that synchronized global fiscal and monetary policies will sustain global financial and economic recoveries. This creates a dynamic where massive issuance of sovereign debt is generally priced in the marketplace with meager little risk premiums. Similarly, the perception that markets and economies are underpinned by government policies ensures that debt instruments throughout – certainly including U.S. corporates, municipal debt, agencies, and mortgages – trade at narrow risk spreads to sovereigns. It’s the ultimate “too big to fail.”

It has been fundamental to my Bubble thesis that the finance underpinning global recoveries has been unsound, unstable and unsustainable. In particular, extraordinary stimulus measures incited a move by the speculators aggressively back into global risk assets. The massive pool of global speculative finance – having been reined in during the 2008 crisis – quickly returned to near full force and power. Leverage that had been taken down during the crisis was ratcheted right back up. Carry trades that had unwound during the crisis were wound right back up. Unprecedented policy stimulus and market intervention had again made it too easy to garner speculative profits. ...

#  Helen & Harry on Saturday —

From what I grasp of this situation (econ is not my strong suit) it would be enough all by itself to do serious damage to any daydreams of economic recovery, and this is nowhere near all by itself. It has plenty of company. This bubble has plenty of company, all poised to do damage and doing it.

To be sure, Osama bin Laden (if he's alive, which I doubt) wouldn't make it through the first elimination round to the top hundred or five hundred problems waiting to cripple and topple America.

Now and then I flash back to that omnipresent image from the establishment's mocking of the 1960s — the old coot everyone ignored who was carrying a sign that said "The end is near". I see myself more and more in that old coot.


#  Mary McNarry on Saturday —

As I understand it, the newest bubble, the global Government Finance Bubble, has eliminated the safety net for many developed nations' governments — the margin of error is now zero, or even worse for countries like Greece, Spain, Italy and Portugal. They transferred the bad corporate debts from the last bubble to the governments, and now the public treasuries are left holding the bag.

Sooooo... now that debt must be repaid with interest, requiring spending cuts around the world, thus making economic growth much more difficult and thereby making it harder to repay the debts. And, when the next recession hits there is now no money left for "stimulus" -- they'll be forced to just print money out of thin air the next time. When is "next time"? One? Two? Three years? And meanwhile the US is spending like crazy, like a trillion dollars a year down the toilet on quagmires and unwinnable wars (with no possible definable conditions for victory except genocide.)


#  Helen & Harry on Saturday —

I've been reading about Spain's sad capitulation to "austerity" measures. The Spaniards won't riot in the streets like the Greeks did, probably, but they should. The bank and finance bastards have entire nations under their thumbs, and I see no solution except things that no respectable observers would endorse. I am not a respectable observer.


#  Mary McNarry on Sunday —

Leaving aside for now the "Who is to blame?" discussion and focusing on "What now?", the so-called "austerity measures" are merely the beginning of an inevitable devolution. The question isn't whether there shall be austerity measures, but who will suffer and by how much. Here is why...

In Spain, as in Greece, the amount of public debt is intolerably high as are their budget deficits. Restructuring -- a polite way of saying reneging -- of public debts via renegotiation with lenders is required. Something like 50% of the debt needs to be written off by the lenders.

But debt restructuring now would lead to austerity measures anyway! Who would lend to them afterwards, before they fully resolve their budget problems and show they are creditworthy? If they could borrow at all in the open markets the interest rates would be unacceptably high. And the IMF would require austerity measures as a condition of support. Unable to borrow more money, what could the Spanish (and Greek) government(s) do besides cut spending?

Well they could A) start a war (haha); B) increase taxes; C) abandon the Euro. Choice "A" would certainly cause austerity and suffering, especially when they get their asses handed to them, all shot up and bloody. Choice B would certainly create hardships for many. And Choice C...abandoning the Euro... What would happen then?

Their currency would fall in value from the initial conversion rate as the government resorted to old-fashioned money-printing. Their old debts denominated in Euros might need further restructuing. And still no one would want to lend to them. So how would they pay for imported goods? More to the point, who would pay? We know the rich people are already shifting the money out of the troubled countries' currencies and into things like gold and US dollars. After abandoning the Euro even more wealth would flee the countries. Prices of imported goods would rise dramatically and values of local assets would tumble! The rich would suffer a tiny amount but everyone else, especially the poor would be crushed. And Spain already has 20% unemployment!

So really, the new "austerity measures" are not so bad as what will come. This is a no-win scenario for Spain (and Greece.) Their wealth has either been destroyed or has fled the country. The best that can be hoped for now is to avoid a series of cascading failures, a vicious cycle wherein further business failures create unemployment and unwillingness to invest/hire, which create further business failures, and so on.

If the EU as a whole does not work together as a true union then several individual countries will suffer true economic depressions and collapse leading to harsh recessions elsewhere in the EU and possibly a dissolution of the EU itself.

Spain Is Simply Shifting the Problem

Excerpt: The measures announced by Spanish Prime Minister José Luis Rodríguez Zapatero this week include a 5% cut in public-sector pay this year and a pay freeze next year, a shelving of index-linked pension rises, a cancellation of proposals for a €2,500 (about $3,150) "baby bonus" tax break, a cutting back of regional spending budgets and a postponement of infrastructure projects. The headline-grabber was a 15% cut in the pay of cabinet ministers.


#  Helen & Harry on Sunday —

I'm not going to disagree on any of the above and I hesitate to even enter a conversation about all this, because it's way over my head. But you know what you're talking about, so lemme ask you a few ignorant questions.

First question. What did Greece and Spain do that America hasn't done? If there is some specific stupidity which the Greeks and Spaniards are guilty of, but the Americans, the Russians, the French, the Germans aren't guilty of, I don't know what it is.

Second question. Who are the lenders, whose investment and protection are more important than the financial health of at least two and presumably other mid-sized nations? Assuming that the lenders were banks and financial houses, these are businesses in the business of making such gigantic loans. My understanding of capitalism is limited and shallow and built on truisms such as, if you make a bad investment you eat it, and if you make bad business decisions you might go out of business. Lenders made, apparently, imprudent loans to Greece and Spain. Why shouldn't these lenders eat it if those (and other) nations default?

Certainly I can see, though, that if Greece and Spain default on their loans then those nations will have problems getting massive loans in the future. Nations, of course, ought to live within their tax-funded means, so Greece and Spain and America shouldn't be spending more money than they have. And/or maybe Greece, Spain, and America should be running their own National Banks, for the good of their own economies and their own people. Imagine a bank not involved in stinky swindles and such crimes, a bank that reinvested in its community instead of new yachts and mansions for its stockholders, with people in charge who wouldn't eagerly squat and sh*t on whole nations to protect their profits.

Sure, I realize that I'm yakking from frustration instead of knowledge. That's my usual vantage point. Economics is as daunting to me as chemistry and algebra, so even if you explained all this at length I probably wouldn't understand.

Based on my day-to-day dealings with the poor and my view of rich bankers from a great distance, I'd much, much rather see a handful of gazillionaires and their bloodsucking international banking conglomerates driven bankrupt than see whole nations crippled. I would just love to see padlocks on the doors at Ginormous International Banking and execs hauled in handcuffs to jail. But I suppose there's a downside to that, something I haven't thought of.

And anyway, of course, the arrests can never happen and the handcuffs and jails are only for little people. That must be spelled out in treaties or something, because it's sure obvious that the people who own the world live above mere mortals' rules.


#  Mary McNarry on Saturday —

1) US has done everything they have done but not yet to the same extent.

2) Lenders to the PIIGs countries (Portugal, Italy, Ireland, Greece and Spain)? Big banks/finanical companies from all over the world but especially in places like Germany. The total amount of this debt is two or three trillion dollars, if memory serves. Which is why the recent trillion dollar bailout plan was pushed by Angela Merkel as actually being a bailout of German companies. So this thing snowballs easily. And there are massive political ramifications for the EU since the ECB is independent and is not allowed by law to bailout individual countries! Imagine how it will be in the US if California needs a $100 billion bailout from the Feds...then every other state will want one too and none of them will have the motivation to cut back on prison guards and $100K per year cops.

Also, imagine each country abandons the Euro so they can print money to pay their bills. That will end up hurting the poor much more than the rich because it will result in massive inflation (eventually). Like in Venezuela, which is pretty much collapsing in slow motion.

All of this has to play out. It's part of Kondratieff Winter, the season for either paying off debts or reneging. There may be another decade of this, culminating in the US monetary collapse (because we transferred bad debts of banks and other "too big to fail" companies to the national debt -- and we are busy bailing out failing pension schemes, etc. etc. -- and meanwhile the debts of individuals remain to be paid off or reneged.) So in some ways it would have been faster and fairer to just nationalize the failed institutions, write off their bad debts, give their creditors and shareholders zero and start clean. We're doing it the slow way, with a festering pus-filled necrotic economy which is only recovering a little bit and would die if the Feds stopped the life support.

Choice D for Greece and Spain is to sell off national assets. Privatization. California is trying this with things like state office buildings. I believe Nevada as well. They get a little money (this is a bad time to sell real estate, duh), and that helps this year's budget; then the taxpayers have to pay rent forever, while the new buyers get guaranteed profits (the state even has to pay maintenance and refurbishing costs!) I read today that two pharmaceutical companies are refusing to sell more drugs to Greece. They claim that Greece owes them millions and has refused to pay -- and in addition Greece is demanding that they cut their prices by 25%; so they just said fuck off, we're not shipping you any more drugs.

Choice E is the Hugo Option. Nationalization. Venezuela's socialist revolution isn't going well. Hugo spent too much money. Now inflation is running 20%. To make money for the state Hugo has been nationalizing everything in sight -- anything of real value. Which causes money to flee the country. No one wants to invest there, not even Venezuelans! Plus, Hugo has had to order price freezes. Imports are expensive and the blackmarket price for their currency is much less than the official price (i.e. everyone wants dollars.)

So, Spain and Greece have a lot of disagreeable choices. Like a virgin at a Roman orgy...

The US has the temporary good fortune to be the "reserve currency" of the world. So the government can print money and ship it abroad, and as long as the money stays abroad it doesn't drive up prices at home. But at the same time our political system has evolved into a ludicrous circus of ass-clowns parading as if they own the world's only money tree, and spending as if there are no consequences to squandering the country's wealth. This of course is a fatal conceit, which will cause harsh austerity measure to visit America in the not too distant future.

#  Jim B. on Saturday —

A mystery link?

I showed it to some friends over last night and we couldn't stop laughing at the part were Rumsfeld moves his hands, while going "Whew!"

#  Helen & Harry on Saturday —

Still chuckling.