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48801
Politics & Religion / Laffer: Enterprise Zones
« on: September 13, 2011, 06:39:52 AM »


By ARTHUR LAFFER
Some people actually believe government can create jobs by taxing and borrowing from people with jobs and then giving that money to people without jobs. They call this demand stimulus. To make matters worse, other people think these demand-stimulus ideas warrant a serious response.

Government taxes cigarettes to stop people from smoking, not to get them to smoke. Government fines speeders so they won't speed, not to encourage them to drive faster. And yet contrary to common sense, it seems perfectly natural to some people that government would tax people who work or companies that are successful only to give that money to people who don't work and to bail out losing companies. The thought never crosses their minds that these policies are the very reason why our economy is in such bad shape.

I'm beginning to think that Irving Kristol was correct when he wrote, "It takes a Ph.D. in economics not to be able to understand the obvious." It shouldn't surprise anyone why the economy isn't getting better.

If the U.S. wants prosperity, government doesn't need to do something, it needs to undo much of what it already has done. Here is one area where, in the spirit of the late Congressman Jack Kemp, President Obama and I could agree.

African-Americans are suffering inordinately in the Obama aftermath of the Bush Great Recession. While overall U.S. unemployment stands at 9.1%, black unemployment has jumped to 16.7%. Black teenage unemployment is bordering on 50%, and that figure doesn't even take into account "discouraged" workers, "involuntary" part-time workers and "underemployed" workers. But even these numbers don't tell the real story. They represent real people who are suffering deeply and have been suffering for a long, long time.

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Close...Behind these numbers are millions of lives discouraged and despondent. People who've lost their self-esteem and pride. The young who have given up on America and some of whom have even turned to crime. Scars are being made across a whole ethnic subset of America. Unemployment, underemployment and involuntary part-time employment represent the loss of a precious natural resource that can never be recouped. No one can feel good about himself if he's living on handouts from Uncle Sam. We as a nation can't wait until 2013 to address this issue.

Whether President Obama's base finds supply-side economics appealing or not, he should immediately join with all members of Congress from both parties to develop a full program for enterprise zones. And while enterprise zones are desperately needed in our inner cities, there are lots of areas in the hollows of Kentucky and West Virginia that need enterprise zones as well, not to mention barrios in California and New Mexico.

Enterprise zones should be areas that are geographically defined with exceptionally high concentrations of poverty, underachievement and unemployment. The policies applicable to enterprise zones should include:

A) For all employment within the enterprise zone of people whose principal residence is also the enterprise zone, there should be no payroll tax whatsoever, neither employer nor employee portions. The employer need not be headquartered in the enterprise zone to take advantage of the elimination of the employer's portion of the payroll tax. The locus of employment does have to be in the enterprise zone.

Don't for a moment think that this will be a budget buster. Right now there aren't many jobs in our inner cities anyway and the few dollars of tax revenues lost will be more than offset by reductions in welfare spending because people will have jobs and won't need welfare. The best form of welfare is still a good job.

B) Federal and state minimum wages must be suspended in the enterprise zone. If not for all employees, then at least for employees under 30. These young people need on-the-job training, and at the present minimum wage many of them aren't worth hiring. That is why they are unemployed.

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CloseAssociated Press
 
A job seeker fills out an application with Coca-Cola at a jobs fair hosted by the Congressional Black Caucus in Miami.
.Even for teenagers who are in school, a summer job is an enormous benefit for a future productive career. This summer and last summer only 30% of all teens worked—all-time lows. We need to break this vicious cycle right now by getting rid of the youth minimum wage in our enterprise zones.

C) In the enterprise zones the government should do an expedited review of all building codes, regulations, restrictions and requirements to make sure that they don't unjustifiably impede economic growth. For example, mandated union membership rules should be voided in enterprise zones as should all prevailing wage provisions and the like.

When I lived in Chicago I reviewed a number of rules and regulations and restrictions whose primary impact was to impede our inner cities from ever achieving prosperity. I'll bet they're even worse now.

D) Profits generated by companies operating and employing people within the enterprise zone should only be taxed at one-third the regular tax rate. No matter how many fewer regulations a company faces, those companies still quite rightly respond to profits for their shareholders.

Businesses don't move their plant facilities as a matter of social conscience. They do it to make profits for their shareholders. If you want more jobs in our most depressed areas, make those areas more profitable for companies to relocate there. It's as simple as that.

I guarantee Mr. Obama that he will receive the support necessary to carry the day in Congress. And once he sees how this plan works for our most depressed areas of America, he can then extend enterprise zones to cover the whole country.

Mr. Laffer, chairman of Laffer Associates, is co-author, with Stephen Moore, of "Return to Prosperity: How America Can Regain Its Economic Superpower Status" (Threshold, 2010).

48802
Politics & Religion / Our man formerly in Iraq reports
« on: September 12, 2011, 05:52:23 PM »
BAGHDAD – Gunmen forced their way onto a bus of traveling Shiite pilgrims Monday and shot all 22 men onboard as they traveled through western Iraq's remote desert on a trip to a holy shrine, security officials said.

The bodies were discovered late Monday night, hours after the gang of gunmen stopped the bus at a fake security checkpoint and told all the women and children to get off, according to one security official who interviewed a survivor.

The gunmen then drove the bus a few miles (kilometers) off the main highway between Baghdad and the Jordanian border in Iraq's Sunni-dominated Anbar province. The pilgrims were ordered off the bus and shot one by one, the security officials said.

"The terrorists stopped the bus at gunpoint and killed 22 men," said Maj. Gen. Abdul-Hadi Rizayig, the provincial police chief.

Read more: http://www.foxnews.com/world/2011/09/12/22-shiite-pilgrims-shot-dead-in-iraq/#ixzz1Xmi1APG4

48803
Politics & Religion / WSJ: Perry, Romney, and SS
« on: September 12, 2011, 02:23:58 PM »


Republicans have been more frustrated than usual with their Presidential candidates, and last Tuesday's debate exchange on Social Security between Rick Perry and Mitt Romney shows why. One candidate seemed to taunt his critics by showing disdain for anyone who supports the entitlement for seniors, while the other candidate sounded like a Democrat defending it.

Mr. Perry was asked about a passage from his recent book in which he called Social Security a Ponzi scheme. The question was inevitable, yet the Texas Governor gave the impression he hadn't given it more than a few moments of thought.

"Anybody that's for the status quo with Social Security today," he said, "is involved with a monstrous lie to our kids, and it's not right." Young people who "expect that program to be sound, and for them to receive benefits when they research retirement age" should be disabused of that notion, Mr. Perry added, repeating the "lie" bit as if he had little more to say.

Give Mr. Perry credit for addressing one of the third rails of American politics, but that doesn't mean he has to invite electrocution. The problem with his hot rhetoric is that it can turn off many voters before they even get a chance to listen to his reform proposals, assuming he eventually offers some.

He's even technically right that Social Security is a species of Ponzi scheme (if not a criminal enterprise) in the sense that young people today are putting more into the system than they can possibly get out in retirement.

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CloseAssociated Press
 
Mitt Romney and Rick Perry.
.Part of the problem is that current seniors get more than they put in thanks to the formula for increasing benefits over time. Eugene Steuerle and Stephanie Rennane of the Urban Institute estimate that a two-earner couple both earning an average wage who retire in 2010 will get $906,000 in benefits having paid $588,000 in payroll taxes. The same couple who retires in 2030 will get $1.23 million (in constant dollars) while having paid $796,000.

Even a pyramid system such as this could be solvent if it took advantage of compound interest. But the overriding problem is that not a dime of the payroll contributions the government collects over a lifetime is saved and invested for a worker's retirement. Social Security's pay-as-you-go financing model means that 12.4% of all wages are transferred to current beneficiaries, the surplus dollars are spent by Congress on other things, and Social Security gets an IOU from the Treasury.

In other words, the program is building up debt even as benefits become less sustainable as the baby boomers begin to retire and the ratio of workers to seniors shrinks. The feds will then have to pay out of other tax revenue to meet Social Security's obligations. This is the long-range problem Mr. Perry should attempt to explain, and the danger is that his rhetoric will scare the elderly rather than reassure them that reform is necessary for the sake of their grandchildren. He's now running to represent Republicans as their Presidential nominee, not hawking a book on conservative talk radio.

As for Mr. Romney, he seems to be taking Social Security assaults a notch or two beyond even the Democratic playbook. At the debate he implied Mr. Perry was "committed to abolishing Social Security," and he has since made this a major campaign theme.

His press shop followed up with a memo claiming Mr. Perry "Believes Social Security Should Not Exist," and Mr. Romney told a talk radio show that "If we nominate someone who the Democrats can correctly characterize as being opposed to Social Security, we would be obliterated as a party."

We'd give Mr. Romney more credit for his professed political prudence if he were at least proposing some Social Security reforms of his own. But his recent 160-page economic platform avoids anything controversial on the subject. If Mr. Romney rides to the nomination by sounding like President Obama on Social Security, he will make any reform he would eventually need to attempt that much harder to accomplish.

The key point is that, unlike a Ponzi scheme, Social Security can be reformed and it will have to be if current workers are to receive any return on their current taxes. Everyone serious knows what the reform options are—from changing the benefits schedule, to "progressive indexing," to raising the retirement age. We'd prefer private accounts so that young people could build wealth as a property right and not depend on the promises of politicians, while the money would be put to productive economic use in the meantime. Herman Cain mentioned it in last week's debate. But if that's too politically adventurous for the two Governors, maybe they can meet somewhere in between their rhetorical positions.


48804
Politics & Religion / WSJ to JDN: You are wrong
« on: September 12, 2011, 02:13:27 PM »


For all its soaring rhetoric, President Obama's "jobs speech" last week didn't demonstrate a lick of insight into why economies grow or how wealth is created. It was merely trademark Obamanomics: using government diktat to move money that's over here, over there.

Having spent an hour the day before with Ron Liepert, the energy minister from the Canadian province of Alberta, I found it especially disturbing to hear nothing in the speech about reversing the administration's anti-fossil-fuels agenda. Canada has recovered all the jobs it lost in the 2009 recession, and Alberta's oil sands are no small part of that. The province is on track to become the world's second-largest oil producer, after Saudi Arabia, within 10 years. Meanwhile Mr. Obama clings to his subsidies for solar panels and his religious faith in green jobs.

U.S. unemployment is high because capital is on strike. Short-term offers to coax investors into taking new risks aren't going to cut it when they have been forewarned that the president intends to pay for it all by raising taxes in the out years. The market dropped over 300 points the day after Mr. Obama's speech.

On the regulatory front the picture is even gloomier. Much of America's vast untapped energy potential lies dormant because Mr. Obama's regulatory watchdogs have spent the past three years throwing sand in the gears of the permitting process for exploration and exploitation on federal lands. Separately, TransCanada has been trying since September 2008 to get a permit to build the Keystone XL pipeline from Alberta to the Gulf Coast. The Environmental Protection Agency has so far blocked it.

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CloseAssociated Press
 
TransCanada's Keystone XL pipeline could mean 118,000 American jobs, if the U.S. government ever issues the permit.
.A glimpse of what all this has cost the U.S. economy can be seen by looking north to Canada, where animal spirits have been unleashed in the energy sector. Canada's close economic ties to the U.S. have traditionally meant that when the U.S. gets the sniffles, Canada gets swine flu. This time it's been different. Part of the reason is that Canada's housing market was not poisoned by a federal government push to put unqualified borrowers into homes they could not afford. After the 2008 collapse of the housing bubble in the U.S., the Canadian financial sector remained strong.

That alone was not enough to protect Canada from the effects of the U.S. recession. The manufacturing sector was hit hard, and in the first quarter of 2009 the economy contracted by an annualized 7.9%.

Yet Canada has outperformed the U.S. since then. In 2010, according to the International Monetary Fund, Canada grew at 3.2% versus 2.9% in the U.S. In 2011, the IMF estimates Canada will grow at 2.9%; unemployment is now 7.3%. The IMF's U.S. growth forecast is 2.5% this year, and U.S. unemployment is 9.1%.

One explanation for Canada's more robust growth is its strong commitment to energy, which has become more valuable in U.S. dollar terms under Federal Reserve Chairman Ben Bernanke's inflationary policies. Alberta is now producing two million barrels per day but expects that number will grow to four to five million within a decade.

Alberta's oil and gas industry supports more than 271,000 direct jobs and hundreds of thousands of indirect jobs in sectors such as construction, manufacturing and financial services. The province has an unemployment rate of 5.6%. There are also some 960 American companies involved in Alberta energy, supplying equipment and technology, among other things. As an example, Mr. Liepert says, "dozens of Caterpillar tractors, made in Illinois and Michigan and costing $5 million a piece" work the oil sands. He says the region is on track to create more than 400,000 direct American jobs by 2035. The Bakken region of North Dakota, where private land ownership gives drillers relief from federal obstructionism, shares a similar, if smaller, story. Oil production there is booming, and North Dakota unemployment is 3.3%.

The Americas in the News
Get the latest information in Spanish from The Wall Street Journal's Americas page.
.TransCanada's Keystone XL pipeline, if the U.S. ever issues the permit, will mean $20 billion in investment. The company says the construction phase will require 13,000 direct hires and indirect new jobs could total 118,000 in the U.S.

But Keystone XL is only a fraction of the potential that could be released if Mr. Obama changed his energy policy. In a study commissioned by the American Petroleum Institute and released last week, the energy consultancy Wood MacKenzie estimates that pro-development policies could, by 2030, "support an additional 1.4 million jobs, and raise over $800 billion of cumulative additional government revenue."

On the other hand, according to the study, current policies "which slow down the issuance of leases and drilling permits, increase the cost of hydraulic fracturing through duplicative water or air quality regulations, or delay the construction of oil sands export pipelines such as Keystone XL, will likely have a detrimental effect on production, jobs, and government revenues."

A serious jobs proposal would address these issues. Mr. Obama doesn't have one.

 

48805
Politics & Religion / Stratfor
« on: September 12, 2011, 02:10:29 PM »
Analyst Kamran Bokhari examines Israel’s regional challenge and Egypt’s domestic challenge following an attack on the Israeli Embassy in Cairo.


Editor’s Note: Transcripts are generated using speech-recognition technology. Therefore, STRATFOR cannot guarantee their complete accuracy.

Egyptian protesters storming the Israeli embassy in Cairo on Sept. 9 has created friction between Egypt and Israel, as both sides try to manage the uneasy relationship. This incident has domestic policy implications for Egypt as well as foreign policy implications for Israel.

Egyptian and Israeli authorities are trying to put behind the incident that took place on Friday when several protesters stormed the Israeli embassy, forcing the Israeli ambassador and his family to return to Israel. Authorities in both countries are trying to manage the diplomatic relationship that has become tense, given the fall of President Hosni Mubarak and the uncertain political conditions in Egypt.

The tensions involving Israel are not exactly completely negative from the point of view of Egypt’s military leadership. The Egyptian military authority is interested in delaying, as much as possible, the transition toward civilian rule. What that means is essentially postponing elections as long as possible. Given the current mood within Egypt, the military government doesn’t exactly have the leverage to be able to postpone those elections. That said, an issue like tensions with Israel can be used by the government in Cairo to be able to pull off that kind of postponement of elections. But, nonetheless, the situation right now is very premature and it’s not really clear whether the Egyptian authorities will be able to make use of the incident with Israel to manage domestic politics.

The tensions between Egypt and Israel come at a time when Israel is facing growing problems across its regional neighborhood. Israel has to worry about what is happening in Syria, what would be the fate of the embattled al Assad regime that is facing protests of its own. The Turkish government has announced that it is going to deploy its own naval forces in the eastern Mediterranean, which essentially is upping the anti with Israel, because Israel, thus far, has had freedom of movement in those waters.

In addition, there is the issue of the Palestinians who are trying to use the United Nations General Assembly session this year to be able to pull off a vote in favor of Palestinian statehood. Taken together, all of these issues complicate matters for Israel, and the key pillar of Israeli security is Egypt and the relationship with Egypt. And if Egyptian relations with Israel cannot be managed, then that becomes a far bigger problem for Israel and makes it less likely for Israel to be able to manage the other issues.


48806
  By CHESTER DAWSON
TOKYO—Japan's new defense minister said that while the American alliance remains the core of security policy, he wants to improve ties between Chinese and Japanese armed forces as a means of dealing with China's military rise.

"The U.S.-Japan security relationship is the cornerstone of our national security policy, but based on that foundation we need to improve relations with China," Yasuo Ichikawa said Monday in an interview with The Wall Street Journal, his first with a foreign media organization since taking office Sept. 2.

Mr. Ichikawa also said the contract for a next-generation fighter aircraft, a long-delayed and highly anticipated project sought by three global defense titans, will be awarded by year's end.

Sino-Japanese relations have been strained by a series of recent incursions by Chinese ships into Japan's territorial waters in the East China Sea. A war of words between Beijing and Tokyo followed the arrest of a Chinese fishing crew last year, raising alarms about China's intentions toward its Asian neighbors. The dispute came shortly after the resignation of Yukio Hatoyama, who as prime minister had made improved ties with China a central focus of policy.

Japan's new defense minister, appointed by Prime Minister Yoshihiko Noda, downplayed the territorial spat's impact and stressed the importance of opening communications channels with his counterparts in China.

"I'd like to work toward increasing interaction between Japanese and Chinese defense personnel," Mr. Ichikawa said, adding that he would try to visit China personally. He wouldn't be the first Japanese defense minister to do so, but a trip would signal a thaw.

That overture to Beijing evokes Mr. Hatoyama's embrace of China as a counterweight to the U.S., but Mr. Ichikawa said he has no intention of putting distance between Tokyo and Washington.

However, resolution of a long-simmering controversy involving plans to relocate a U.S. military base in Okinawa may take more time, he said. While Washington's desire to make progress is clear, the defense minister indicated Okinawan anti-base sentiment and budgetary limits might slow progress. The countries will share the cost of the move.

"We have to be mindful about the feelings of the Okinawan people and Japan's own schedule issues such as the deadline for budget requests" on defense-related allocations, he said.

In June, the U.S. and Japan agreed to postpone plans dating from 2006 to close a U.S. Marine Corps base at Futenma in Okinawa by 2014, citing cost concerns and local opposition to the proposed relocated Okinawa base.

At the same time, Japan's new defense minister signaled greater willingness to cooperate with the U.S. and other allies sharing the burden of developing advanced military technologies.

Noting the country's "three principles" banning arms exports has inhibited co-development of cutting-edge weapons, Mr. Ichikawa said he favors moving swiftly with the Japanese government's effort to "study" a relaxation of the ban.

"There's no set schedule, but it's not the kind of problem that we can take too long to consider," the defense minister said. "It's important to start taking gradual steps to sound out a direction as soon as possible." He added that relaxing the ban would bolster Japanese manufacturers who are struggling from weak domestic demand.

The review of the restrictions on weapons exports is politically sensitive in Japan because of the country's pacifist constitution. First established as policy in 1967, the principles were originally designed to prevent military technology from falling into the hands of Communist Bloc countries.

Earlier this month, the policy chief of the governing Democratic Party of Japan, former foreign minister Seiji Maehara, ruffled feathers by openly calling for a review of the ban at a speech in Washington, apparently without first consulting with Cabinet officials, including Mr. Ichikawa.

The issue of Japan's ban on arms exports has loomed large as it invests in developing expensive advanced weapons such as ballistic-missile systems. It has also colored the debate on Japanese plans to procure a new generation of fighter planes, since Japan has not been able to co-develop one with allies and missed an opportunity to do so with the F-35 joint strike fighter program spearheaded by the U.S.

Mr. Ichikawa said that Japan will accept formal bids for its next-generation fighter on Sept. 26 and that he expects a decision to be reached by December as part of budgetary discussions for fiscal 2012, at least three years later than initially planned.

The fighter program, dubbed the FX in Japan, will likely call for the purchase of about 40 to 60 planes in a deal expected to total around $4 billion, according to industry officials.

In an era of declining defense budgets, the project has attracted three of the world's biggest defense contractors: Boeing Co. with its F-18 Super Hornet, Lockheed Martin Corp. with the F-35 JSF and Eurofighter GmbH with the Typhoon.

Mr. Ichikawa said it is too early to say who will prevail.

That latest delay in the FX program came earlier this year when the ministry, which had been expected to start vetting bids in March, postponed the process an additional six months due to the March 11 earthquake and tsunami. The new fighter will replace Japan's aging squads of F-4 Phantom fighters, made by McDonnell Douglas, now part of Boeing.


48807
Politics & Religion / Re: The Cognitive Dissonance of His Glibness
« on: September 12, 2011, 08:22:50 AM »
GM:

That's important stuff.  Lets post in on the Energy thread.

48808
Politics & Religion / Re: Energy Politics & Science
« on: September 12, 2011, 08:21:32 AM »
I will leave GM and JDN to work that particular point out, but in response to JDN's point about the fungibiity of oil and his assumption that therefor US oil will flow to the highest bidder, I could be wrong but I would interject that to the best of my recollection US law requires US oil to be sold in the US, though there may be an exception for Alaskan oil to Japan (and attendant purchases from Venezuela).  

48809
Science, Culture, & Humanities / Jefferson to his wife 1787
« on: September 12, 2011, 06:10:31 AM »
"Determine never to be idle. No person will have occasion to complain of the want of time, who never loses any. It is wonderful how much may be done, if we are always doing." --Thomas Jefferson, letter to Martha Jefferson, 1787



48810
Politics & Religion / Why the dollar may last longer than expected
« on: September 11, 2011, 08:34:40 PM »
I have some problems with this piece, but it makes some very interesting points:
================

Why the Dollar May Last For Much Longer Than We Expect
BY CHARLES HUGH SMITH09/08/2011Print

The only way to value the dollar is in the context of a mercantilist, export-dependent global economy anchored by a sole "importer of last resort," the U.S., which funds these vast imports with its fiat currency, the dollar.

Yesterday I explained why a gold-backed currency cannot replace the fiat dollar without fatally disrupting global Capitalism and the political Status Quo everywhere from China to Europe: Why the U.S. Dollar "Works" and Why a Gold-Backed Currency Doesn't (September 7, 2011).

Today we look at why the fiat dollar is the one essential currency, and as a result, why it will rise in value in the Eurozone crisis ahead. I know this is heresy and sacrilege to those who believe the dollar is doomed, and soon, but if you're not yet locked into one quasi-religious faith or another just yet, then please follow along as I trace out the dynamics of trade and currency valuation.

To understand the essential role of the dollar and how its value is derived via trade flows, let's start with a simplified model of global trade.

Country A manufactures surplus goods and generates surplus services. Since its domestic demand is structurally constrained (for example, a mere 35% of China's GDP is domestic demand), the only way Country A can keep its citizens employed and politically pliable is to sell its surplus in other countries.

This is the basic mercantilist export model of growth pursued by Germany, Japan, South Korea, China et al.: growth and value are created by generating surplus goods and services, and exporting those to other nations.

In sum: Country A has stuff it has to sell to other countries to keep its economy from spiraling into depression. It can demand whatever it wants: gold, moon dust, etc., but it is not in the driver's seat: it has no alternative to dumping its surplus in whatever markets will take it. Managing its exports boils down to getting the best deal possible, but saying "no" is not an option.

There is little demand for Country A's currency, as what it is trading isn't currency, it's stuff: it trades its surplus production (stuff) for somebody else's currency.

Country B has a something called "the world's reserve currency" which is a fancy name for paper money that is universally recognized as a placeholder of value that can be traded everywhere from Burma (pristine $100 bills preferred) to Bolivia (cocaine-laced $100 bills OK) and accepted without question (even counterfeit bills are OK as long as they're the high-quality North Korean counterfeits). Let's call Country B's currency the doru.

Country B has exports, but its demand for imports far exceeds the value of its exports. For all imports over and above the value of its exports, it exchanges its paper money for the imported real goods and services.

Country C has no reserve currency and no gold-backed currency. It has paper money which it can print in unlimited quantities. Country C has exports, but its demand for imports far exceeds the value of its exports. For all imports over and above the value of its exports, it exchanges its paper money for the imported real goods and services.

Country C has a tricky problem. Since its paper money has no intrinsic value, the only value it can possibly have is scarcity value: the supply must be strictly limited so that exporting nations will accept County C's currency (let's call them quatloos) in exchange for tangible goods like oil and iPads.

In effect, Country C is asking exporters to accept a premium on the intrinsically worthless paper, a premium "earned" by scarcity: if there are relatively few quatloos floating around the world, then quatloos may well retain some scarcity value, even though their value based on other factors is basically zero.

The best way for Country C to finance its import trade is to exchange its intrinsically worthless quatloos for "the world's reserve currency," the doru, which is accepted everywhere.

Some would argue that Country C should buy gold with its quatloos, and that would certainly be an excellent trade: worthless paper for gold. But in terms of trade, shipping gold about is hazardous and costly: every nation engaged in trade needs an electronically traded currency that can be transferred, loaned, borrowed and so on, all in the blink of an eye.

Gold is a reliable store of value but it is a cumbersome means of exchange, especially globally.

Furthermore, gold's value in currency or other goods has a history of fluctuating wildly. Those managing quatloos could easily get burned, as the trade they're really managing is quatloos to gold to the reserve currency which can actually be traded globally for goods and services.

Any such commodity-based transactional chain is rife with risk from geopolitics and speculation. From the managers of the quatloo's perspective, the easiest way to lower risk is to cut out the middle step of buying and selling gold, and just buy the reserve currency (the doru) directly.

All this works until Country C succumbs to the temptation to print money to the point it is in surplus rather than scarcity. And what a temptation it is, to "increase our wealth" magically by printing quatloos.

But exporters, forced by circumstance to constantly assess the tradable value of all currencies they trade goods for, will quickly detect that the scarcity value of the quatloo--it's only real value--has rapidly declined.

The cost of imports priced in quatloos in Country C shoots up as quatloos lose scarcity value, and the residents of Country C find they can no longer afford to buy imports. The sales of imports collapses down to match Country C's exports.

These are the key dynamics of trade and currency valuation. Now let's consider Country B, owner of "the world's reserve currency," the doru.

Superficially, it might seem that the only value in dorus is also their scarcity value, and since Country B prints/creates large quantities of dorus every year, many observers make the understandable mistake of claiming the value of the doru should be zero, since it is has little to no scarcity value.

But the value of "the world's reserve currency" is not simply a matter of scarcity, as it is for other lesser fiat (paper) currencies. One factor is the nature of scarcity is different for the doru and the quatloo: the quatloo has only one use in terms of global trade: the imports and exports of Country C.

Since Country C's GDP is a thin sliver of global GDP, then demand for quatloos is limited to importers and tourists.

Compare that to "the world's reserve currency," which is in constant demand as a means of exchange in the entire $60 trillion global economy.

"The world's reserve currency" (in our example, the doru) has another unique feature: everybody eventually needs to exchange quatloos and all other currencies for doru, because that is the only universally accepted means of global exchange. Sure, Country C and its cronies can set up an exchange which only accepts gold and quatloos, but as soon as they need wheat, electronics, and everything else the cronies don't manufacture or harvest, then they will need to exchange the gold or quatloos for "the world's reserve currency."

As a result, the demand for doru ("the world's reserve currency") is stupendous and constant. Since currency is a commodity, albeit one with unique features, its ultimate value as a means of exchange is set by supply and demand. In other words, scarcity is not the only source of value: demand is the key driver of value of any commodity, good or service.

Let's say that Country B's economy is about 25% of global GDP. (In other words, like the U.S.) Let's further assume that Country B prints/creates about 10% of its GDP every year in paper doru.

Now if Country C printed 10% of its GDP every year in newly issued quatloos, the supply of quatloos would quickly overwhelm demand for quatloos, and the value of quatloos globally would crash.

Country B doesn't have that problem, because printing 10% of its GDP is a mere 2.5% of global GDP. Globally, the value of currencies exchanged daily exceeds 10% of Country B's GDP and more or less matches the total value of doru in global trade.

In other words, the demand for exchangable, tradable currency--"the world's reserve currency"-- far exceeds the supply of doru. Printing doru, even in quantity, is like adding a glass of water to a bathtub: the supply increase is not even close to the daily demand.

How did Country B get the "the world's reserve currency" instead of Country C? Most importantly, there has to be enough of the currency to grease the tremendous flows of goods, services, loans and hedges globally: the tiny quantity of quatloos is completely inadequate to the task.

Second, the "the world's reserve currency" must be relatively immune to increases in supply, i.e. money printing. For example, if global GDP is $60 trillion, and daily foreign-exchange trading is $2 trillion, then exactly how much impact can printing $1 trillion of "the world's reserve currency" generate? The answer globally is very little.

The third factor is one which few commentators recognize, sometimes called"the hidden export:" global security. All financial transactions involve trust, some more than others. In terms of currency, the primary trust being offered and accepted is that the mechanics of the currency are transparent and thus so are the risks.

The secondary trust is that the value of the currency will remain stable over the short term, which is long enough for the vast majority of trading.

A third trust is in the stability of the issuing nation. Once again, transparency is key: if that nation's problems are well-known and transparent, then the risks of that currency can be easily and accurately assessed. If its institutions are robust and its trade flows gigantic, then people recognize it's a safer bet to hold dorus than quatloos.

The key mechanism for creating surplus value in advanced Capitalism is trade, and the key mechanism for enabling that trade is a "reserve currency" of sufficient quantity and stability. The Chinese renminbi is a proxy for the U.S. dollar, the euro is unraveling, and the yen is not expansive enough to fund global trade and currency flows.

Envy is a key human trait, and the envy of all those who don't hold/print "the world's reserve currency" is understandable. But you can't create "the world's reserve currency" like some other paper money, as paper money only has two sources of value: demand and trust.

As Jesse of the always-valuable Jesse's Cafe Americain recently wrote (and I paraphrase), people often offer reasons why certain things that have happened could not happen. Conversely, they also often offer reasons why things that can't happen should happen.

At some point the trade imbalance of $600 billion a year between the mercantilist nations and the U.S. will go away, as will the notion that printing paper money is creating wealth, and debts that are unpayable will magically be paid instead of being liquidated or repudiated. The point here is that the Status Quo of all the major trading nations is committed to conserving the present system of fraying imbalances, as their own wealth and power flow from this shaky, unsustainable structure.


48811
Politics & Religion / Re: The Cognitive Dissonance of His Glibness
« on: September 11, 2011, 08:27:28 PM »
JDN:

1) The Keynesian calamity of Obamanomics in conjunction with the attendant monetization of the US deficit has caused, as has been commented and discussed in the US dollar thread, the US dollar to dive-- thus triggering an inverse climb of commodity prices-- most certainly including oil.  Obamanomics IS responsible for high oil prices.

2) "But at what price?  Oil spills?  Costing billions of dollars?  Pollution?  Destruction of the environment?  Ask the fisherman in the Golf (sic) how their job is going? How sick they are...  How it affected the fish and the eco system...."

Of course this is why Obama is subsidizing the Brazilians to drill in the same area while puppeteer Soros profits  :roll: :roll: :roll:
There is also the matter of Exxon now working the Arctic with the Russians because US policies block them here.  Meantime the deep water rigs that worked the Gulf have now permanently left US waters for Africa  :-o and elsewhere-- no doubt the environmental standards there are as rigorous as the US's. :roll:  Similarly lets make sure that the Canadians do not connect their shale oil to the US and instead build a pipeline to the Pacific Ocean so the Chinese can buy it.  No doubt the planet will thank you , , ,  :roll:

3) "Domestic drilling won't affect prices, so I still say, let's cut demand not increase supply.  In the end, we will all be better off." 

Yes I get that on the whole oil is fungible and so in a macro world economy sense prices may not be affected that much on the margin, but there is the matter of the vulnerability and political volatility of many of the supply sources (Libya, Nigeria, Venezuela, the whole fg mid-east) which puts a rather stiff risk premium on the prices from those sources which would NOT be the case of US sources.  Connected to this is the cost of foreign policies motivated by securing oil supplies.

"Cutting demand"?  That's just what our teetering on collapse economy needs!  Shrewd, real shrewd.

"In the end" we will be fuct if we follow your prescriptions.




48812
Politics & Religion / Krugman is scum
« on: September 11, 2011, 08:09:14 PM »

http://krugman.blogs.nytimes.com/2011/09/11/the-years-of-shame/?smid=tw-NytimesKrugman&seid=auto

 

<image001.gif>
September 11, 2011, 8:41 am

The Years of Shame
Is it just me, or are the 9/11 commemorations oddly subdued?

Actually, I don’t think it’s me, and it’s not really that odd.

What happened after 9/11 — and I think even people on the right know this, whether they admit it or not — was deeply shameful. Te atrocity should have been a unifying event, but instead it became a wedge issue. Fake heroes like Bernie Kerik, Rudy Giuliani, and, yes, George W. Bush raced to cash in on the horror. And then the attack was used to justify an unrelated war the neocons wanted to fight, for all the wrong reasons.

A lot of other people behaved badly. How many of our professional pundits — people who should have understood very well what was happening — took the easy way out, turning a blind eye to the corruption and lending their support to the hijacking of the atrocity?

The memory of 9/11 has been irrevocably poisoned; it has become an occasion for shame. And in its heart, the nation knows it.

I’m not going to allow comments on this post, for obvious reasons.
==================================
In a similar vein, a friend relates:

I drove down to Clemson University  for a soccer match today. I had about 8 hours in the car and a lot of time for listening to the fare on satellite radio.


Astoundingly, on this of all days, the focus of the left on Serius Left, was the Truther movement. Not the victims, not the heroes- but the friggin conspiracy that we brought the attack on ourselves on purpose to benefit the war machine.


The horrible little people are abundant.


48813
Science, Culture, & Humanities / POTH: SCOTUS to rule on GPS surveillance
« on: September 11, 2011, 02:23:53 PM »
WASHINGTON — The precedent is novel. More precisely, the precedent is a novel.

In a series of rulings on the use of satellites and cellphones to track criminal suspects, judges around the country have been citing George Orwell’s “1984” to sound an alarm. They say the Fourth Amendment’s promise of protection from government invasion of privacy is in danger of being replaced by the futuristic surveillance state Orwell described.

In April, Judge Diane P. Wood of the federal appeals court in Chicago wrote that surveillance using global positioning system devices would “make the system that George Orwell depicted in his famous novel, ‘1984,’ seem clumsy.” In a similar case last year, Chief Judge Alex Kozinski of the federal appeals court in San Francisco wrote that “1984 may have come a bit later than predicted, but it’s here at last.”

Last month, Judge Nicholas G. Garaufis of the Federal District Court in Brooklyn turned down a government request for 113 days of location data from cellphone towers, citing “Orwellian intrusion” and saying the courts must “begin to address whether revolutionary changes in technology require changes to existing Fourth Amendment doctrine.”

The Supreme Court is about to do just that. In November, it will hear arguments in United States v. Jones, No. 10-1259, the most important Fourth Amendment case in a decade. The justices will address a question that has divided the lower courts: Do the police need a warrant to attach a GPS device to a suspect’s car and track its movements for weeks at a time?

Their answer will bring Fourth Amendment law into the digital age, addressing how its 18th-century prohibition of “unreasonable searches and seizures” applies to a world in which people’s movements are continuously recorded by devices in their cars, pockets and purses, by toll plazas and by transit systems.

The Jones case will address not only whether the placement of a space-age tracking device on the outside of a vehicle without a warrant qualifies as a search, but also whether the intensive monitoring it allows is different in kind from conventional surveillance by police officers who stake out suspects and tail their cars.

“The Jones case requires the Supreme Court to decide whether modern technology has turned law enforcement into Big Brother, able to monitor and record every move we make outside our homes,” said Susan Freiwald, a law professor at the University of San Francisco.

The case is an appeal from a unanimous decision of a three-judge panel of the United States Court of Appeals for the District of Columbia Circuit, which said last year that the government was simply seeking too much information.

“Repeated visits to a church, a gym, a bar or a bookie tell a story not told by any single visit, as does one’s not visiting any of those places in the course of a month,” wrote Judge Douglas H. Ginsburg.

He added: “A person who knows all of another’s travel can deduce whether he is a weekly churchgoer, a heavy drinker, a regular at the gym, an unfaithful husband, an outpatient receiving medical treatment, an associate of particular individuals or political groups — and not just one such fact about a person, but all such facts.”

Federal appeals courts in Chicago and San Francisco, on the other hand, have allowed the police to use GPS tracking devices without a warrant. The police are already allowed to tail cars and observe their movements without warrants, those courts said, and the devices merely allow them to do so more efficiently.

Judge Richard A. Posner, writing for a unanimous three-judge panel in the Chicago case, did caution that institutionalized mass surveillance might present a different issue.

Some judges say that world is fast approaching.

“Technology has progressed to the point where a person who wishes to partake in the social, cultural and political affairs of our society has no realistic choice but to expose to others, if not to the public as a whole, a broad range of conduct and communications that would previously have been deemed unquestionably private,” Magistrate Judge James Orenstein of the Federal District Court in Brooklyn wrote last year.

The case to be heard by the Supreme Court arose from the investigation of the owner of a Washington nightclub, Antoine Jones, who was suspected of being part of a cocaine-selling operation. Apparently out of caution, given the unsettled state of the law, prosecutors obtained a warrant allowing the police to place a tracking device on Mr. Jones’s Jeep Grand Cherokee. The warrant required them to do so within 10 days and within the District of Columbia. The police did not install the device until 11 days later, and they did it in Maryland. Now contending that no warrant was required, the authorities tracked Mr. Jones’s travels for a month and used the evidence they gathered to convict him of conspiring to sell cocaine. He was sentenced to life in prison.

The main Supreme Court precedent in the area, United States v. Knotts, is almost 30 years old. It allowed the use of a much more primitive technology, a beeper that sent a signal that grew stronger as the police drew closer and so helped them follow a car over a single 100-mile trip from Minnesota to Wisconsin.

The Supreme Court ruled that no warrant was required but warned that “twenty-four hour surveillance of any citizen of the country” using “dragnet-type law enforcement practices” may violate the Fourth Amendment.

Much of the argument in the Jones case concerns what that passage meant. Did it indicate discomfort with intense and extended scrutiny of a single suspect’s every move? Or did it apply only to mass surveillance?

In the Jones case, the government argued in a brief to the Supreme Court that the Knotts case disapproved of only “widespread searches or seizures that are conducted without individualized suspicion.”

The brief added: “Law enforcement has not abused GPS technology. No evidence exists of widespread, suspicionless GPS monitoring.” On the other hand, the brief said, requiring a warrant to attach a GPS device to a suspect’s car “would seriously impede the government’s ability to investigate leads and tips on drug trafficking, terrorism and other crimes.”

A decade ago, the Supreme Court ruled that the police needed a warrant to use thermal imaging technology to measure heat emanating from a home. The sanctity of the home is at the core of what the Fourth Amendment protects, Justice Antonin Scalia explained, and the technology was not in widespread use.

In general, though, Justice Scalia observed, “it would be foolish to contend that the degree of privacy secured to citizens by the Fourth Amendment has been entirely unaffected by the advance of technology.”


48815
Politics & Religion / WSJ: NYPD since 911
« on: September 10, 2011, 06:08:41 PM »
By JUDITH MILLER A specter has haunted the New York Police Department during this week's torrent of 10th anniversary commemorations of 9/11—the 13 terrorist plots against the city in the past decade that have failed or been thwarted thanks partly to NYPD counterterrorism efforts.

Police Commissioner Raymond W. Kelly and his 50,000-strong department know that the 9/11 gatherings are an occasion not only to reflect on that terrible day. They're also a prime target for al Qaeda and other Islamist extremists who long to convince the world, and perhaps themselves, that they're still capable of killing in the name of their perverse interpretation of Islam.

Commissioner Kelly allocates some $330 million of his $4.6 billion annual budget and 1,200 of his staff to counterterrorism. He and his staff, not surprisingly, spent the week bolstering security at the remembrance gatherings throughout the city. On Wednesday, he came to the Manhattan Institute to tout the NYPD's counterterrorism record and defend his department against press allegations that his intelligence division has been spying illegally on Muslims and infringing on their privacy and civil rights.

Enlarge Image

CloseAssociated Press
 
New York City Police Commissioner Raymond Kelly
.The police have to factor terrorism into "everything we do," Mr. Kelly said. If that means following leads that take NYPD undercover detectives into mosques, Islamic bookstores, Muslim student associations, cafes and nightclubs, so be it. Mr. Kelly vowed to continue stationing liaisons in 11 cities abroad to "ask the New York question"—much to the occasional chagrin of the Federal Bureau of Investigation and the CIA.

It was an undercover officer in an Islamic bookstore who helped stop Shahawar Matin Siraj, a homegrown Muslim extremist and self-professed al Qaeda admirer, from bombing the Herald Square subway station during the 2004 Republican convention, Mr. Kelly said. Another undercover officer prevented homegrown terrorists Ahmed Ferhani, 26, and Mohamed Mamdouh, 20, from bombing a Manhattan synagogue and trying to "take out the entire building."

Would he continue sending NYPD officers across the Hudson into deepest, darkest New Jersey? Yes, he declared, if that was what was needed to keep tabs on the likes of Carlos Almonte and Mohammed Alessa—al Qaeda sympathizers arrested en route to Somalia at JFK Airport in 2010 "who were determined to receive terrorist training abroad only to return home to kill us here."

Michael Sheehan, a former NYPD deputy commissioner for counterterrorism, says that the NYPD has succeeded thanks to its collection and sharing of domestic and foreign intelligence through "humint" (human sources) and "sigint" (signals intelligence) such as electronic intercepts and the monitoring of Internet, cellphone and other communications. Tip-offs from concerned family or community members have also been vital.

Related Video
 Former editorial page deputy editor Melanie Kirkpatrick recollects her experiences on September 11th.
..Sigint was key in disrupting at least two of the most serious al Qaeda plots targeting New York since 9/11: the 2006 "Liquid Bomb Plot," or "Operation Overt," in which 25 British citizens of Pakistani descent targeted some seven transatlantic commercial flights from London to North America; and Operation Highrise, an attempt to use suicide bombers to blow up New York City subways in 2009.

The homegrown Islamist in that plot was Najibullah Zazi, an Afghan immigrant with al Qaeda ties who grew up in New York City and staged his operation from there and Colorado. In Zazi's case, investigators say, officials were initially tipped off by the intercept of an email he sent from Colorado to an address in Pakistan that was associated with another group of terrorists who had been arrested earlier that year in Manchester, England.

The "link man," or coordinator in Pakistan, writes Mitchell D. Silber, director of Intelligence Analysis for the New York Police Department, in his forthcoming book, "The Al Qaeda Factor," was corresponding with operatives in three different al Qaeda plots. Zazi's New York subway plot took off only after he contacted the coordinator, identified only as "Ahmad," and informed him that the "wedding," or suicide operation, "was ready to proceed," writes Mr. Silber.

Another serious plot that was disrupted thanks to Internet intercepts was a 2006 scheme by Assem Hammoud, a 31-year-old Lebanese al Qaeda member, and several other still unnamed Islamists—all overseas—to flood Lower Manhattan by setting off explosives in the PATH railway tunnels under the Hudson River. While no arrests in America were made, several suspects have been detained in Lebanon and other Arab states.

Mr. Silber argues that humint has proven even more valuable than sigint in detecting and thwarting homegrown threats—the fastest-growing category of militant Islamist terror. This explains Mr. Kelly's determination to preserve the NYPD's vast intelligence capabilities, even if he's forced to scale back elsewhere in the department due to budget cuts.

With Osama bin Laden dead and al Qaeda under pressure, some terrorism experts argue, as does Peter Bergen, author of the book "The Longest War," that al Qaeda, or at least its "core," "no longer poses a national security threat" to America "that could result in a mass-casualty attack anywhere close to the scale of 9/11."

Mr. Kelly isn't buying it. He's fixated on the recent jump in homegrown extremist plots throughout the country—to 10 in 2009 and 12 in 2010 from four in 2007 and just one in 2005. The increase, says John Miller, a former deputy director for analysis for the Director of National Intelligence, is most likely due to the influence of Anwar al-Awlaki, the Yemeni-American cleric now hiding in Yemen whose stirring Internet sermons have inspired many of the would-be jihadis detained in recent plots.

Mr. Kelly also knows that in too many cases, New York has been lucky. Faisal Shazad, a middle-class Pakistani–American resident of Connecticut, failed last year to detonate a bomb in Times Square only because he received too little training in Pakistan.

Mr. Kelly calls the killing of bin Laden "success with complications." Those include the numerous references to New York found in his documents in Abbottabad, all of which suggest that bin Laden never abandoned his dream of striking the city again. The discovery on Thursday night of a specific and "credible" al Qaeda linked plot tied to the 9/11 commemorations suggests that Mr. Kelly's concern is justified.

Ms. Miller is an adjunct fellow at the Manhattan Institute and a commentator for Fox News.

48816
Politics & Religion / Steyn: Lets Roll Over
« on: September 10, 2011, 05:58:45 PM »
'Let's Roll' Nation Mired In 'Let's Roll Over' Mush


By MARK STEYN
Posted 09/09/2011 05:46 PM ET


Though 343 of these firefighters' comrades died when the Twin Towers fell on 9/11, there won't be any firefighters at the official Ground Zero...

Waiting to be interviewed on the radio the other day, I found myself on hold listening to a public service message exhorting listeners to go to 911day.org and tell their fellow citizens how they would be observing the 10th anniversary of the, ah, "tragic events."

There followed a soundbite of a lady explaining that she would be paying tribute by going and cleaning up an area of the beach. Great! Who could object to that? Anything else?

Well, another lady pledged that she "will continue to discuss anti-bullying tactics with my grandson." Marvelous. Because studies show that many middle-school bullies graduate to hijacking passenger jets and flying them into tall buildings?

Whoa, ease up on the old judgmentalism there, pal. In New Jersey, many of whose residents were among the dead, middle-schoolers will mark the anniversary with a special 9/11 curriculum that will "analyze diversity and prejudice in U.S. history."

And, if the "9/11 Peace Story Quilt" at the Metropolitan Museum of Art teaches us anything, it's that the "tragic events" only underline the "importance of respect." And "understanding." As one of the quilt panels puts it:

"You should never feel left out

You are a piece of a puzzle

And without you

The whole picture can't be seen."

And if that message of "healing and unity" doesn't sum up what happened on Sept. 11, 2001, what does? A painting of a plane flying into a building? A sculpture of bodies falling from a skyscraper? Oh, don't be so drearily literal.

"It is still too soon," says Midori Yoshimoto, director of the New Jersey City University Visual Arts Gallery, whose exhibition "Afterward and Forward" is intended to "promote dialogue, deeper reflection, meditation and contextualization."

So, instead of planes and skyscrapers, it has Yoko Ono's "Wish Tree," on which you can hang little tags with your ideas for world peace.

What's missing from these commemorations? Firemen? Oh, please. There are some pieces of the puzzle we have to leave out.

As Mayor Bloomberg's office has patiently explained, there's "not enough room" at the official Ground Zero commemoration to accommodate any firemen. "Which is kind of weird," wrote the Canadian blogger Kathy Shaidle, "since 343 of them managed to fit into the exact same space 10 years ago."

On a day when all the fancypants money-no-object federal acronyms comprehensively failed — CIA, FBI, FAA, INS — the only bit of government that worked was the low-level unglamorous municipal government represented by the Fire Department of New York.

When they arrived at the World Trade Center the air was thick with falling bodies — ordinary men and women trapped on high floors above where the planes had hit who chose to spend their last seconds in one last gulp of open air rather than die in an inferno of jet fuel.

Far "too soon" for any of that at the New Jersey City University, but perhaps you could re-enact the moment by filling a peace tag for Yoko Ono's "Wish Tree" and then letting it flutter to the ground.

Upon arrival at the foot of the towers two firemen were hit by falling bodies. "There is no other way to put it," one of their colleagues explained. "They exploded." Any room for that on the Metropolitan Museum "Peace Quilt"? Sadly not. We're all out of squares.

What else is missing from these commemorations? "Let's Roll"? What's that — a quilting technique?

No, what's missing from these commemorations is more Muslims. I bumped into an old BBC pal the other day who's flying in for the anniversary to file a dispatch on why you see fewer women on the streets of New York wearing niqabs and burqas than you do on the streets of London. She thought this was a telling indictment of the post-9/11 climate of "Islamophobia."

I pointed out that, due to basic differences in immigration sources, there are far fewer Muslims in New York than in London. It would be like me flying into Stratford-on-Avon and reporting on the lack of Hispanics. But the suits had already approved the trip, so she was in no mood to call it off.

How are America's allies remembering the real victims of 9/11? "Muslim Canucks Deal With Stereotypes Ten Years After 9/11," reports CTV in Canada. And it's a short step from stereotyping to criminalizing. "How the Fear of Being Criminalized Has Forced Muslims Into Silence," reports The Guardian in Britain.

In Australia, a Muslim terrorism suspect was so fearful of being criminalized and stereotyped in the post-9/11 epidemic of paranoia that he pulled a Browning pistol out of his pants and hit Sgt. Adam Wolsey of the Sydney constabulary. Fortunately, Judge Leonie Flannery acquitted him of shooting with intent to harm on the grounds that "'anti-Muslim sentiment' made him fear for his safety," as Sydney's Daily Telegraph reported.

That's such a heartwarming story for this 9/11 anniversary they should add an extra panel to the peace quilt, perhaps showing a terror suspect opening fire on a judge as she's pronouncing him not guilty and then shrugging off the light shoulder wound as a useful exercise in healing and unity.

What of the 23rd Psalm? It was recited by Flight 93 passenger Todd Beamer and the telephone operator Lisa Jefferson in the final moments of his life before he cried "Let's roll!" and rushed the hijackers.

No, sorry. Aside from firemen, Mayor Bloomberg's official commemoration hasn't got any room for clergy, either, what with all Executive Deputy Assistant Directors of Healing and Outreach who'll be there.

One reason why there's so little room at Ground Zero is because it's still a building site. As I write in my new book, 9/11 was something America's enemies did to us; the 10-year hole is something we did to ourselves — and in its way the interminable bureaucratic sloth is surely as eloquent as anything Nanny Bloomberg will say in his remarks.

In Shanksville, Pa., the zoning and permitting processes are presumably less arthritic than in Lower Manhattan, but the Flight 93 memorial has still not been completed. There were objections to the proposed "Crescent of Embrace" on the grounds that it looked like an Islamic crescent pointing towards Mecca.

The defense of its designers was that, au contraire, it's just the usual touchy-feely huggy-weepy pansy-wimpy multiculti effete healing diversity mush.

It doesn't really matter which of these interpretations is correct, since neither of them has anything to do with what the passengers of Flight 93 actually did a decade ago. 9/11 was both Pearl Harbor and the Doolittle Raid rolled into one, and the fourth flight was the only good news of the day, when citizen volunteers formed themselves into an ad hoc militia and denied Osama bin Laden what might have been his most spectacular victory.

A few brave individuals figured out what was going on and pushed back within half-an-hour. But we can't memorialize their sacrifice within a decade. And when the architect gets the memorial brief, he naturally assumes there's been a typing error and that "Let's roll!" should really be "Let's roll over!"

And so we commemorate an act of war as a "tragic event," and we retreat to equivocation, cultural self-loathing and utterly fraudulent misrepresentation about the events of the day.

In the weeks after 9/11, Americans were enjoined to ask "Why do they hate us?" A better question is: "Why do they despise us?" And the quickest way to figure out the answer is to visit the Peace Quilt and the Wish Tree, the Crescent of Embrace and the Hole of Bureaucratic Inertia.

© Mark Steyn, 2011

48817
Thank you.

48818
Politics & Religion / Respose on Reagan; Perry
« on: September 10, 2011, 01:54:38 PM »
Partially true.

a) "After a deep and stubborn recession early on, the economy thrived for much of Reagan's two terms and, though partisans may debate the causes and the ultimate costs of that boomlet, those frothy times compare quite favorably with today's anxiety-ridden environment."

Snarky and inaccurate.  Volcker, listening to Dem foolishness that tax rate cuts would be inflationary, slammed on the monetary brakes and politically Reagan had to phase in the tax rate cuts over three years, thus prolonging the recession as many business decisions were postponed in order to take advantage of impending tax rate decreases.  The acid test came the January when the final cut became effective.  Milton Friedman predicted a contraction, Jude Wanniski and the other supply siders predicted a big surge.  Working from memory, the surge was something like 10% growth!  Supply side was vindicated and monetarism had to get back to the lane where it has relevance.

b) Worth noting that Reagan's compromise on illegal aliens included Dem promises to control the border.  I suspect at this point he would say "Fool me once, shame on you.  Fool me twice, shame on me."


c) Reagan's mental acuity was beginning to decline at the time of the 1986 compromises on the tax code and illegal aliens.

=================
If nominated, this business about Perry not believing in evolution is going to hurt him in the general election I think, especially when coupled with the turbulent state of public thinking about global warming.

Cheap shot by Romney on Perry's "Ponzi scheme" comment on SS.  It IS a Ponzi scheme-- but if Perry is not careful this will get painted as meaning PERRY wants to welch on SS.
==========
An internet friend keeps sending me material on this:  www.americanthinker.com/printpage/?url=http://www.americanthinker.com/articles/../2011/09/the_real_perryaga_khan_curriculum_is_bad_for_children.html

Any thoughts?

48819
Politics & Religion / StratforMedical Intel
« on: September 10, 2011, 08:35:27 AM »


One of the primary purposes of intelligence agencies is to help countries plan for the future. One way that’s accomplished is by monitoring the health of foreign leaders. In this week’s Above the Tearline, we’re going to take a look at how that’s done from a tactical perspective.

Knowledge of health of a foreign leader gives you leverage points — points that can be exploited either clandestinely or in diplomatic negotiations. Intelligence surrounding the health of a foreign leader also helps you gameboard succession plans. This enables the analysts to hopefully figure out who’s next in line, who may take the country in a different direction or change the geopolitics of a nation.

The intelligence services of many nations today are monitoring the health of world leaders. Some notables come to mind, such as Gadhafi, Chavez from Venezuela as well as Castro. The health of Castro is always a topic of discussion and whoever replaces them poses a new challenge to the United States as to the direction of the country and the geopolitics of the region.

From a tactical perspective, in order to monitor the health of the foreign leader, the first thing you’re going to acquire is open source video or pictures that can be looked at and examined by the analysts at headquarters as well as by subject matter medical experts. A storyboard is put together looking back at pictures of the world leader to draw some assessments based on their physical appearance. Some of the things that are easily done are noticeable weight loss, or loss of hair as well as color of the skin: are they pale; are they suntan; are they bloated? Are there any outward physical blemishes or moles that could be indicative of a more concerning underlying health issue.

The open source is a wonderful tool to also track foreign leader health concerns such as Chavez traveling to Cuba to receive cancer treatment. Most Western intelligence agencies have full-time medical staff and nurses on the payroll. Those individuals can also be used to help you draw assessments of foreign leaders.

On the clandestine side of the house, you may try to recruit sources who would have access to hospital records such as a hospital administrator or individuals that conduct outsource blood tests or other kinds of tissue exams. Intelligence agencies can also attempt to obtain hair and urine samples from locations that the head of state or VIP has frequented. In addition, you could pay a maid or a hotel staff employee to secure trash from the hotel room, which may contain prescription bottles or other kinds of evidence of a medical issue, such as syringes.

Another interesting window into the health of a foreign leader is restricted or special diets, so an effort can be made to secure that from outsource catering staff or hotel employees. World-class subject matter medical experts that provide specialized healthcare to foreign leaders could also be targeted for recruitment by an intelligence agency. They would have very unique insight into exactly what’s occurring with that world leader. That’s also the kind of person that you would want to recruit if you needed that information.

The Above the Tearline aspect with this video is: medical intelligence about the health of a foreign leader can help you forecast the future of a nation and can help you predict and shape of the geopolitics of that specific country. Your ability to get that data is the challenge. It’s usually there — you just have to assign your intelligence agency to go out and collect it. But, in many cases, there’s so many people who have access to medical records that it’s usually there for the taking provided you want to spend the cash.


48820

In the last few days I have made some snarky comments about Baraq's policies concerning BMD in Central Europe and Turkey.  Some informatin new to me is contained in the following.
=============================================

Ballistic Missile Defense and Security Guarantees in Central Europe

Romanian President Traian Basescu announced Thursday that he plans to sign an agreement with the United States committing Washington to deploy ballistic missile defense (BMD) interceptors and American troops on Romanian soil. Basescu laid out both the number of U.S troops who would be deployed – 200 – and the specific interceptor — the RIM-161 Standard Missile 3 (SM3). A land-based launcher for this successful sea-based interceptor is still in development, and while the newest version of the SM3 failed in its first test Thursday, the sea-based Aegis SM3 system has proven the most capable of U.S. BMD systems.

“For Warsaw and Prague, the BMD installations have nothing at all to do with ballistic missiles and everything to do with the American security guarantee.”
The Romanian president’s announcement cements Romania’s segment of the U.S. “European phased adaptive approach” — Washington’s replacement for the previous BMD scheme pursued under the administration of former U.S. President George W. Bush. The previous plan envisioned a version of the interceptors already operational in Alaska and California (though with a questionable track record) and their concrete silos in Poland, while an X-band radar installation would have been placed in the Czech Republic. Warsaw and especially Prague had high hopes for the Bush-era plan and still remain frustrated with its 2009 cancellation.

Their hopes had little to do with the threat of ballistic missiles — and certainly nothing to do with the threat of Iranian ballistic missiles that Washington used to justify the system in the first place. Tehran and its crude stockpile of missiles could not be farther from Central European minds. What countries like Poland and the Czech Republic seek is a long-term U.S. military personnel presence, and Washington’s consequent imperative to defend them. For Warsaw and Prague, in other words, the BMD installations have nothing at all to do with ballistic missiles and everything to do with the American security guarantee.

The withdrawal of the previous scheme, under pressure from a resurgent Russia, was precisely what the Central Europeans feared and why they desired fixed American military installations. Washington’s broken commitment has already cost it a measure of credibility, in terms of its allies’ perceptions, in the durability of the American security guarantee. This U.S. credibility question has played no small part in the emergence of the proposal for a Visegrad battlegroup independent of NATO and the United States.

The perception of the U.S. security guarantee is precisely what remains at stake with this new phased adaptive approach. However, it is not clear that all parties view the approach in the same way. If the credibility of the American security guarantee is in question, it is partly because of the lessons Washington took from the failure to place fixed installations in Poland and the Czech Republic. The United States learned that flexibility and redundancy are desirable in any deal. With the immense political pressure from the Kremlin on potential host countries and populations, as well as on more pressing American interests elsewhere in the world, expanding the range of options is certainly preferable. Consequently, while the United States has laid out a coherent scheme for the phased adaptive approach, improvements in weapons technology have allowed the inclusion of more mobile and dispersed components. Washington has also created a degree of ambiguity by waiting to formally sign specific deals.

This equivocation strengthens the plans to deploy a viable BMD system in Europe to defend the continental United States against an Iranian intercontinental ballistic missile (a weapon that does not yet exist). However, the consequence is a dimmed perception of American reliability among allies from Estonia to Romania, who are desperately seeking a firm, unambiguous demonstration of America’s commitment. To these allies, a U.S. demonstration of support is most important not when it is politically convenient, but when it is politically difficult.

This predicament is not lost on Russia. Both Moscow and Beijing have been refining their positions in order to make firm, unambiguous demonstrations of American commitment as politically inconvenient and difficult as possible. The issue was discussed Wednesday between Russian Defense Minister Anatoly Serdyukov and the U.S. Defense attache in Moscow.

For Moscow, the problem of BMD is twofold. Details aside, Washington is flirting with the Central Europeans who, unlike their Western brethren, are highly concerned about Russia’s military capabilities. A significantly more aggressive U.S. BMD stance would greatly challenge Moscow. Longer-term, as Russia’s population declines, it will come to rely increasingly on its nuclear arsenal to guarantee its sovereignty, security and territorial integrity. Therefore, no matter what assurances Moscow gleans from Washington concerning the current European scheme, the inexorable improvement in American BMD technology will increasingly challenge those promises.


48821
Politics & Religion / WSJ: Fanny and Freddy as victims
« on: September 10, 2011, 07:38:15 AM »
Amen to the appreciation of Pat's superb posts.

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With the government's lawsuits last week against 17 big banks, we can now say we've seen it all. The suits attempt to argue that Fannie Mae and Freddie Mac, the government-created mortgage giants at the center of the financial crisis, were in fact unwitting victims.

One has to laugh or cry examining the complaints drafted by Fan and Fred's regulator, the Federal Housing Finance Agency (FHFA). As the conservator for the two mortgage monsters since their federal rescue in 2008, the FHFA is suing most of the financial industry on grounds that banks misrepresented to Fan and Fred the quality of loans inside mortgage-backed securities bought by the two firms during the housing boom. Yes, Fannie Mae and Freddie Mac are now shocked, shocked to discover they were buying low-quality mortgages during the housing mania.

We know that FHFA Acting Director Edward DeMarco has a mission to protect the taxpayers who have bailed out Fannie and Freddie with $171 billion and counting. It's also true that Mr. DeMarco deserves taxpayer gratitude for his efforts to resist additional housing bailouts. But when examining the new bank lawsuits, it's worth remembering that an attorney doesn't have an obligation to sue everyone with whom his client has ever done business. And taxpayers may wonder if they'll really be better off after Washington attempts this cashectomy on a still-weak banking system.

Any cash would have to come from a settlement, because we can't imagine the feds bringing these cases into a courtroom. At that point the FHFA's attempt to cast Fan and Fred as victims might have to be reconciled with a voluminous FHFA paper trail blaming Fan and Fred for "unsafe and unsound practices," "imprudent decisions" to "purchase or guarantee higher risk mortgage products," and its determination to take on more risk despite internal and external warnings.

Even the report of the Financial Crisis Inquiry Commission, whose Democratic majority tried to minimize government's role in the meltdown, acknowledged the Fan and Fred mess. Its final report quoted an FHFA examiner who observed that Fannie was "the worst-run financial institution" he'd seen in 30 years as a regulator.

The common theme in the new lawsuits is that banks misled Fan and Fred about how many of the loans inside the mortgage pools were going to owner-occupants versus speculators, and how high the ratio was of the value of a loan to the value of the property.

Many of these securities included dodgy subprime and "Alt-A" loans, meaning the borrowers had low credit scores or provided little or no documentation to back up their claims. But Fan and Fred thought that by buying the triple-A tranche of these securities they would be the last ones stuck with the losses. The toxic twins were happy to enjoy the high yields while also fulfilling their federal affordable-housing mandates, even as they warned in securities filings that they were taking on more risk.

So to sum up the argument made by the FHFA: Fan and Fred were duped by banks because the two mortgage giants thought they were buying pools that included very risky mortgages, when in fact they included insanely risky mortgages.

Several of the bank defendants say that on their deals Fan and Fred could have studied the "loan tape," with detailed information on mortgage borrowers, if they had cared enough to make their own judgments on risk. On the question of property values, the government fed publicly available data into a computer model and decided that the properties were valued too highly during the real-estate bubble. No kidding.

But if there were fraudulent appraisals at the time, this would suggest a lawsuit against appraisers, unless one is simply looking for the deepest shareholder pockets. In any case, why didn't Fan and Fred use such a model before deciding to buy?

On the question of occupancy, if a buyer falsely claimed that he would occupy a given property, why is the bank any more liable than Fan and Fred are? The two mortgage giants had already agreed to buy pools of loans with little or no documentation of the borrowers' claims. Why? Because Fan and Fred's well-paid management and boards were enjoying the ride, and they knew that taxpayers would be there to pay the bill when it ended.

To be clear, not all of the loans went bad, and some of the securities mentioned in the suits are still paying on time and in full. So exactly how much harm are Fan and Fred alleged to have suffered at the hands of banks?

FHFA won't say. These look like lawsuits with a premise to be named later.


48822
Politics & Religion / WSJ: Did the US overreact to 911?
« on: September 09, 2011, 07:24:37 PM »
Editor's Note: We asked a group of leading national security thinkers to respond to the question: Did the United States overreact to the 9/11 attacks? Here are their answers:

We Had to Address State Sponsors of Terror
We Can't Reform the Arab World
Afghanistan Should Have Been the Focus
Resilience vs. Revenge
Right Cause, Wrong Response
Even Obama Embraces Drones
Islamist Extremists Are Losing
..We Had to Address State Sponsors of Terror
By Paul Wolfowitz

After the attack on Pearl Harbor, Japanese-Americans were put in concentration camps. That there was no comparable overreaction after 9/11, and that we have been able to preserve a free and open society, owes much to the fact that for 10 years there has been no repetition of those terrible attacks.

Preventing further attacks required the U.S. to drop its law-enforcement approach to terrorism and recognize that we were at war. Consider the difference between Khalid Sheikh Mohammed—the mastermind of 9/11 who told us much of what we now know about al Qaeda—and his nephew Ramzi Yousef, the mastermind of the 1993 attack on the World Trade Center who can't be questioned (even most courteously) without his lawyer present and has told us nothing of significance. Or consider the difference between the ineffective retaliatory bombing of Afghanistan in 1998 and the 2001 response that brought down the Taliban regime.

Enlarge Image

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The Pentagon on Sept. 11, 2001
.We went to war with Germany in 1941 not because it had attacked Pearl Harbor but because it was dangerous. After 9/11, we had to do more to deal with state sponsors of terrorism than simply place them on a prohibited list, especially if they had connections to biological, chemical or nuclear weapons. Saddam Hussein—who was defying numerous United Nations resolutions and was the only head of a government to praise 9/11, warning that Americans should "suffer" so they will "find the right path"—presented such a danger.

That we made mistakes in Afghanistan and Iraq does not prove that we overreacted. (Costly mistakes were also made in World War II: sending poorly prepared troops to North Africa, failing to plan for the hedgerows beyond the beaches at Normandy, failing to anticipate the German counterattack in Belgium.) The real question is whether a significantly different response would have produced a better result.

Would massive strategic bombing of Afghanistan—the 1998 response on a larger scale—been enough to defeat al Qaeda? Would the failing sanctions against Iraq not have collapsed and left us today with a Saddam Hussein committed, as he told his FBI interrogator, "to reconstitute his entire WMD program"—chemical, biological and even nuclear? What about the Libyan WMDs that Moammar Gadhafi gave up after he saw Saddam's fate?

Unfortunately, after it turned out we had been wrong about the existence of WMD stockpiles in Iraq, some accused President Bush of having overreacted or, even worse, of having lied. Others charged that our overreaction "gave democracy a bad name." Nonsense. Tens of thousands of Arabs today are risking their lives in Syria and elsewhere, not for bin Laden's dream of a heavenly paradise but for freedom and democracy.

Mr. Wolfowitz, a visiting scholar at the American Enterprise Institute, served as deputy U.S. secretary of defense from 2001-05.


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.We Can't Reform the Arab World
By Mark Helprin

When this war was brought to us, deliberations should have centered upon the aims and execution of our response. Instead, we debated its justice, and thus "whether or not" rather than "how best." The question here at issue echoes this, as if to inquire about the power of a shot rather than if it has hit its target. The answer is that in the absence of strategic clarity we have lurched from one extreme to another.

We underreacted in failing to declare war and put the nation on a war footing, and thus overreacted in trumpeting hollow resolution. We underreacted in attempting quickly to subdue and pacify, with fewer than 200,000 soldiers, 50 million famously recalcitrant people in notoriously difficult terrain halfway around the world. We are left with 10,000 American dead here and abroad, a bitterly divided polity, a broken alliance structure, emboldened rivals abroad, and two fractious nations hostile to American interests with little changed from what they were before.

We overreacted by attempting to revolutionize the political culture—and therefore the religious laws with which it is inextricably bound—of a billion people who exist as if in another age. The "Arab Spring" is less a confirmation of this illusion than its continuance. If you think not, just wait.

We underreacted when we allowed our military capacities other than counterinsurgency to atrophy while China strains for military parity—something that the architects of our national security a decade ago thought laughable, now deny, and soon will hopelessly admit.

Rather than embarking upon the reformation of the Arab world, we should have fully geared up, sacrificed for, and resolved upon war. Then struck hard and brought down the regimes sheltering our enemies, set up strongmen, charged them with extirpating terrorists, and withdrawn from their midst to hover north of Riyadh in the network of bases the Saudis have built within striking distance of Baghdad and Damascus. There we might have watched our new clients do the work that since 9/11 we have only partially accomplished, and at a cost in lives, treasure, and heartbreak far greater than necessary.

Mr. Helprin, a senior fellow at the Claremont Institute, is the author of, among other works, "Winter's Tale" (Harcourt, 1983) and "A Soldier of the Great War" (Harcourt, 1992).


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.Afghanistan Should Have Been the Focus
By Robert C. McFarlane

The 9/11 attacks gave evidence of a well-financed, operationally capable organization committed to waging unrestricted war on Americans. It was imperative that our response eliminate those who planned the attack and destroy their capability to carry on. Yet our understandable haste in launching that counterattack on al Qaeda and its Taliban hosts foreclosed thorough analysis of at least two fundamental matters:

First, the enormous complexity, time and resources involved in forging a functional government, let alone an effective security system, in a diverse alien culture. And second, the latent tensions and instability that had been brewing for over a decade in Pakistan, the key ally on whom we would have to rely for logistic and intelligence support.

Related Video
 Editorial page editor Paul Gigot and deputy editorial page editor Dan Henninger reflect on 9/11.
..More deliberate consideration of such factors could have limited our mission to the destruction of al Qaeda and the formation of a coalition government in Afghanistan (that alone a daunting challenge). It also could have foreclosed consideration of launching a second concurrent war in Iraq, where similar challenges were bound to emerge. Iraq posed no threat to us: The decision to invade it was inspired by quixotic zeal and towering hubris—the belief that we could easily establish there a functioning and prosperous democracy as a model to be adopted throughout the Muslim world.

However ill-conceived politically, the war in Iraq has been executed extremely well militarily. After eight and a half years, we have helped the Iraqis dislodge a tyrant and take the first steps toward a pluralistic, accountable future. In short, much of that original purpose could well be achieved in the years ahead—if we don't forfeit the potential gains out of fatigue and overreach.

The U.S. has also made gains in its national security institutions, notably in special operations and intelligence. Given the relationship of these capabilities to the threats we will continue to face—plus our nation's fiscal realities—the impending restructuring of our military is beginning to take shape.

Mr. McFarlane, who served as President Reagan's national security adviser, is a senior adviser to the Foundation for Defense of Democracies.


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.Resilience vs. Revenge
By Anne-Marie Slaughter

It is possible to ask whether we overreacted to 9/11 only because of the hard and steady work of countless state, municipal and federal counterterrorism officials who have succeeded in preventing its repeat, or something even worse. After a decade without any such attacks (albeit with some near misses), and increasingly frequent and invasive security procedures permeating our daily lives, the costs of our reaction may be more immediately evident than the benefits. But another attack would change that calculus overnight.

One way in which Americans have overreacted, however, is emotionally—by assuming, as we so often do, that our experience of terrorism was qualitatively different from the experience of Europeans, Indonesians, Indians, Africans and others. We have since watched and admired the courage and determination of the British after coordinated attacks on subways and buses in July 2005, and of the Indians after the 10 coordinated shooting and bombing attacks in Mumbai in November 2008.

The world likewise watched the many acts of bravery and heroism on 9/11, from firefighters and police to the group of passengers who rushed the cockpit on United Flight 93. But as a society we were unable to resume business as usual in the way that the British and Indians and many others have done. Because the sensation of vulnerability to violent attack on American soil was so new to us, we gave the terrorists the satisfaction of knowing that they had changed our lives dramatically.

The lesson here is the power of resilience over revenge. As emotionally satisfying as the killing of Osama bin Laden and the attacks on other al Qaeda leaders are, in the long run they are a less effective response to terrorism than enhancing the resilience of our infrastructure, our economy and our people. If we are prepared for an attack and can return to normal as quickly as possible. even while grieving—with our planes flying, our markets open, and our heads high—we can diminish the impact and hence the value of that attack in the first place.

Ms. Slaughter, a professor of politics and international affairs at Princeton University, served as the director of Policy Planning at the State Department from 2009-11.

Back to Top
.Right Cause, Wrong Response
By Zbigniew Brzezinski

It was natural that the brutal murder of 2,700 Americans would provoke not only public outrage but precipitate a very strong national response. Unfortunately, that response lacked strategic coherence and political wisdom. A vaguely generalized global war on jihadist terror made it easier for the terrorists to portray America as hostile to all of Islam, while the U.S. military response eventually devolved into two separate campaigns.

At the time, I strongly supported the decision to go into Afghanistan in order to wipe out the culprits and to overthrow the regime that sheltered them. But I also urged, both in a high-level meeting and in a note to the secretary of defense, that we shouldn't repeat the mistake made by the Soviets, who became bogged down in an ideologically driven effort to remake Afghanistan by force of arms.

I also argued in this newspaper shortly after 9/11 that the U.S. should focus on the political dimension of the terrorist challenge, seeking to isolate the terrorists by gaining the support of Arab governments through broader regional cooperation.

The Bush administration didn't heed these warnings. Making matters worse, it then downgraded the military effort in Afghanistan with the largely solitary U.S. invasion of Iraq, which was undertaken without the political benefit of Arab allies that the U.S. enjoyed back in 1991. The U.S. government sought support for that additional war through top-level demagogy about the potential "mushroom cloud," and by claims of biological agents allegedly secreted in mobile trailers. Neither such nuclear nor biological weapons turned out to have existed. The resulting damage to U.S. credibility handicaps American diplomacy to this day, especially in regard to Iran.

At home, meanwhile, acts of prejudice against American Muslims became more frequent, while abroad anti-American sentiments in Muslim countries became more widespread. Ten years after 9/11, the future of Afghanistan is still in doubt, Iran is increasingly influential in Iraq, and U.S. influence in the Middle East is at its lowest point since America's major entry into the region after World War II.

The cause was right; the response was inept.

Mr. Brzezinski was national security adviser in the Carter administration.

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.Even Obama Embraces Drones
By Leon Wieseltier

We responded to the atrocities of September 11 with a mess of reactions. Some of them were excessive, some of them were not.

The excess was Iraq. If our leaders launched that war because they were certain that Saddam Hussein possessed weapons of mass destruction, then their incompetence was historically scandalous. If they launched it as a "demonstration war," to frighten enemies who might be emboldened by the terrorist triumph on September 11 to attack us again, then they failed: The war opened a new anti-American front for al Qaeda in the Middle East.

I was deceived in my support of the Iraq war, but I rejoice in the dictator's destruction, and in the stirrings of Iraqi democracy despite the best efforts of Islamists and Iranians to thwart it. Good outcomes may come of bad origins.

Yet our other military responses to September 11 seem to me justified. I have no difficulty with the "war on terrorism," as a concept or a policy. We appear to have almost completely decimated al Qaeda, or at least Osama bin Laden's main branch of it. President Obama's relentless drone campaign against terrorist havens in Pakistan, and his somewhat surprising willingness to use covert operations as an instrument in that struggle, stands as one of his few accomplishments in foreign policy.

I believe in ferocity in self-defense; in intelligent ferocity. Now new formations of al Qaeda have been established in southern Arabia and eastern Africa—this is not surprising: jihadist culture is not primarily a response to our responses—and we must confront them, too.

As a corollary of our proper retaliation against al Qaeda, moreover, we emancipated Afghanistan from a primitive theocratic tyranny. But the president's current plan in Afghanistan seems incoherent to me, and I have given up on Afghanistan's willingness to fight for itself. We have worked at it for 10 years, but there is no Afghan Spring. From the standpoint of counterterrorism, the Af-Pak problem is more Pak than Af.

And I have one other anxiety: that we will overreact to our "overreaction." If we conclude, as we are everywhere counseled to do, that the time has come for the United States to recede from the forefront of history, we will compromise and injure ourselves, and our allies, and all freedom-seeking people around the world.

Mr. Wieseltier is literary editor of the New Republic.


Back to Top
.Islamist Extremists Are Losing
By Joe Lieberman

It has become fashionable to characterize the American response to the attacks of 9/11 as an overreaction, but this view is profoundly mistaken. The U.S. response to the attacks, and to the broader challenge of Islamist extremism, has been necessary and justified. We were right to recognize that 9/11, made us a "nation at war" with an enemy that is real, evil and violent, and we were right to put this conflict at the top of our national security agenda. Had we not done so, it is likely we would not have the luxury today of debating whether we overreacted.

That we have gone a decade without another major terrorist strike on American soil hasn't been for lack of trying by our enemies. Our increased security has required bipartisan determination across two presidencies, far-reaching reforms to our homeland security institutions, and difficult, dangerous work by countless heroic individuals around the world. We have taken the offensive overseas with focus and ferocity our enemies did not expect, building the most capable and lethal counterterrorism forces in human history. The result is that violent Islamist extremists have achieved no significant victories in the last decade.

Have we made mistakes since 9/11? Of course—just as every nation always has in war. But as we look back over the past 10 years, a lot more went right than wrong.

Among the lessons of the past decade is that we still live in a dangerous and unpredictable world. Despite the gains we have made, current geopolitical realities do not justify either a sense of complacency or closure about the world-wide war we are in. Our nation will face surprises again. In order to stay safe at home, the U.S. must remain engaged abroad, and—despite budgetary pressures—make the necessary investments to keep our military and other instruments of national power strong.

In addition, contrary to the current national pessimism, America has demonstrated since 9/11 that we remain a remarkably strong and resilient country, with people who are capable of bravery, ingenuity and resolve. When we pull together, we are able to achieve things no other country in the world can—and the best example of this is the new "greatest generation" who have chosen to serve our country in uniform during this past decade.

We do not know how long this conflict will last, but we can be certain of how it will end—in the triumph of our values, with the ideology of Islamist extremism joining fascism and communism on the ash heap of history.

Mr. Lieberman is an Independent Democratic senator from Connecticut.


48824
Politics & Religion / Re: Israel, and its neighbors
« on: September 09, 2011, 06:46:59 PM »
With the moves in the UN that will give observer status to Gaza-West Bank (and the right to sit on various bodies such as the Human Rights Council if I am not mistaken), the Turks apparently planning to challenge the blockade of Gaza and the Israeli development of natural gas off its coastline, the apparent trajectory in Egypt towards ending the peace treaty, and Baraq Hussein Obowma in the White House, the prognosis is grim indeed.

48825
Refresh my memory please; what is Soros saying?

48826
Like that animal in Dr. Doolittle that had a head at each end (Pushme-pullyou?) both of these guys are mouth.  Lacking an anus explains why they are full of excrement.

48827
Politics & Religion / Look out below!
« on: September 09, 2011, 12:55:01 PM »
Second post of the day:

Horrendous day.  Looks like we are finishing below 11,000 again.

48828
Politics & Religion / Attack on the High Court
« on: September 09, 2011, 12:44:49 PM »

Summary
Militants detonated an improvised explosive device outside the Delhi High Court on Sept. 7. Though Harkat-ul-Jihad e-Islami (HUJI) claimed responsibility, the attack was more likely carried out by an undefined network composed of the remnants of regional transnational militant groups that oppose the Indian government. Someone claiming to represent HUJI said the attack was staged to demand the death sentence of a Kashmiri militant involved in the 2001 attack on the Indian parliament be revoked, and this incident may complicate plans for the Indian government, which has been reluctant to carry out the execution for fear of a militant backlash.

Analysis
An improvised explosive device (IED) went off Sept. 7 near the reception line at the High Court in New Delhi, India. More than 100 people were waiting in line between Gate 4 and Gate 5 to obtain entry passes to the court to have their cases heard. According to officials, the blast killed 11 people and wounded 76 others. No judges were among the victims. Witnesses claim a man carrying a briefcase jumped to the front of the line before the device detonated. The investigation was quickly turned over to the National Investigation Agency, established after the 2008 Mumbai attacks. A top security official said a search for the culprit is under way, and security forces are surveilling all roads out of the city.

The attack is similar to other attacks recently witnessed in India; it was not an armed assault, and it was not a suicide bombing. Rather, it was a simple attack on a soft target, more akin to groups with indigenous capabilities such as the Indian Mujahideen, which is known to have connections with other militants that are or once were part of LeT. According to an email from a purported representative of Islamist militant group Harkat-ul-Jihad e-Islami (HUJI), the attack was staged to demand the death sentence of a Kashmiri militant involved in the 2001 attack on the Indian parliament be revoked. Regardless of the veracity of that email, the claim could complicate the handling of the case by the Indian government, which has been reluctant to carry out the execution due to concerns of a possible militant backlash. Additionally, the Sept. 7 attack demonstrates a sustained level of indigenous militant capabilities, itself a worrying sign for New Delhi.

According to a police official, the blast took place outside the “controlled area” of the building at around 10:15 a.m., leaving a crater three to four meters (nine to 13 feet) deep. NDTV reported there were traces of ammonium nitrate. It is unclear whether there was a security cordon in front of the reception area or if the reception area was the first security checkpoint. What is clear is that the reception area was a softer target and thus more vulnerable to attack. (Two lawyers at the court said the scanner and the metal detector at Gate 5 had been inoperable since Sept. 6.)

Like past Indian Mujahideen attacks, the device utilized ammonium nitrate-based improvised explosives, was directed against a soft target, was concealed in a small container and left in a crowded area. It also was detonated via a timer rather than being a command-detonated suicide device. A similar attack was attempted on the same court May 25, with Indian officials later reporting the IED was a bag that contained 1.5 to 2 kilograms (3.3 to 4.4 pounds), had ammonium nitrate, a detonator attached to a timer and about 50 nails. It caused no casualties and damaged a car. In the wake of the attack, Indian media have speculated the earlier attack may have been a test case for the Sept. 7 attack, which is certainly possible, but it was more likely a failed attack.

Someone claiming to be a representative of HUJI allegedly wrote an email to the National Investigation Agency taking responsibility for the bombing, though this claim has yet to be verified. In the email, HUJI threatened to continue attacks against Indian courts if they did not revoke the death sentence of Kashmiri militant Afzal Guru, also known as Mohammad Afzal, who was convicted for his role in the attack on the Indian parliament in 2001.

It is possible that HUJI carried out the Sept. 7 attack on its own, but a more likely explanation is that local militants conducted the attack at the behest of transnational anti-Indian militants who lack the ability to conduct attacks against the India government on their own. This network is not clearly defined, but it includes HUJI, or former members of the organization, Lashkar-e-Taiba, Jaish-e-Mohammed and al Qaeda. The same network was responsible for the  2011 Mumbai attacks, and it is not a centralized group or command structure; rather, it is a new coordination of groups that formally existed prior to 2001. Due to crackdowns in Pakistan, militant group dynamics in the region and disagreements over targets, it has collaborated in different ways. It appears that this network has successfully created an indigenous capability inside India.

The Afzal issue has been a contentious one in India since the Supreme Court sentenced him to death in 2004. The Indian government has been reluctant to follow through on the sentence for fear of a militant backlash. It is not yet clear if the Sept. 7 attack will cause the government to further balk at executing Afzal, given that the alleged perpetrators threatened to attack courts in the future unless it revoked the sentence. That little is known about the network that conducted the attack may add to the government’s reluctance to see the Afzal execution through.



Read more: India: Militants Attack Delhi High Court | STRATFOR

48829
Politics & Religion / Stratfor: The Realities of Withdrawal
« on: September 09, 2011, 12:37:52 PM »
Several posts today.  Make sure to read YA's post.

========================
Summary
The scheduled drawdown of U.S. and allied forces from Afghanistan has begun, and the need for a negotiated settlement to fill the eventual power vacuum in Afghanistan has become more evident. And as always, the key players each have their own set of goals for such a settlement.

Obama’s Afghanistan Plan and the Realities of Withdrawal
STRATFOR Book

Afghanistan at the Crossroads: Insights on the Conflict

The United States has begun the scheduled drawdown of U.S. and allied forces from Afghanistan, but there are clear indications that it is seeking ways to accelerate this timeline. While the surge of U.S. and allied combat forces has had an effect, it was insufficient both in scale and time to impose a military reality on Afghanistan and pacify the Taliban insurgency. So while progress outlined by Gen. David Petraeus and Gen. Stanley McChrystal, in terms of the counterinsurgency-focused strategy, can certainly be defended, the Taliban also — and with good cause — perceive themselves to be winning and have continued to wage an aggressive assassination campaign.

Now that it is clear the United States is leaving, all sides must begin actually reaching understandings and taking concrete action in anticipation of the looming power vacuum in Afghanistan. Meanwhile, the United States has once again intensified its efforts to reach a comprehensive political accommodation with Mullah Muhammad Omar, the most senior Taliban figure, and the Taliban movement as a whole. Such a settlement would stabilize the security situation in the country and facilitate an orderly withdrawal of at least most Western forces from the country.

The Taliban

The Taliban cannot take the United States’ stated intention to withdraw at face value. And in any event, the Taliban have multiple incentives to maintain the current intensity of operations: Doing so maintains the pressure on Washington and Kabul to negotiate, maximizes the strength of their position in those negotiations and maintains their visibility and relevance to the wider Afghan population.

But the Taliban also do not harbor the same ambitions they once did. Having run Afghanistan as a pariah regime in the late 1990s and perceiving Afghan President Hamid Karzai’s government as more robust than the regime the Soviets left in place when they withdrew in 1989, the Taliban seek a power sharing agreement rather than complete dominion of the country. Part of that sharing of power entails getting aid monies and a piece of the foreign investment flowing into the country as well as positioning themselves to gain from the withdrawal of foreign forces.

In recent communiques, the Taliban have even shifted from speaking of the Islamic Emirate of Afghanistan to acknowledging that the Islamic Emirate does not seek to monopolize power. Instead, the Taliban seek certain broad achievements:

Negotiations before withdrawal that help establish the Taliban’s international legitimacy (which would also entail the removal of the movement’s leadership from international terrorism watch lists and ensure that any government in which the Taliban is involved would not be subject to the same sanctions imposed on its government in the late 1990s).
Ultimately, the complete withdrawal of foreign forces from Afghanistan.
A reshaping of the Afghan government. Karzai (with heavy input from the West) has carefully crafted his regime, its offices and the government’s entire structure for the better part of a decade, maximizing his influence and the power of those close to him. It makes little political sense for the Taliban to accept that structure.
A more Shariah-compliant government. Afghanistan is largely a mountainous, rural and conservative society, so the more extreme brand of Islamism espoused by the Taliban actually has considerable traction with large swaths of Afghan society, particularly the Pashtun population that straddles the Afghan-Pakistani border. In other words, this is not necessarily something that a much broader demographic would resist.
A solution for the foreign fighters that have been waging war alongside the Taliban. Whether this is a repatriation agreement or one that allows these fighters to settle and live in Afghanistan peacefully, the Taliban want some viable solution. The Taliban — along with many Pakistani and Arab actors among others — see the lack of a settlement regarding foreign fighters at the time of the Soviet withdrawal as part of a problem that has plagued Afghanistan ever since: Those actors retained their autonomy and used it to maintain chaos in Afghanistan, drawing in other players and complicating the security and political situation further. And if Afghanistan is truly to rein in Islamist extremists with transnational ambitions in a post-NATO Afghanistan, many of these fighters will need to be weaned away from such movements.


(click here to enlarge image)
However, the Taliban face considerable challenges in their negotiations. The diffuse, decentralized and amorphous nature of the Taliban phenomenon has both strengths and weaknesses. Many of these benefits are operational, but internal discipline and cohesion become significant as insurgency gives way to coherent negotiations. Washington originally had hoped to hive off so-called “reconcilable” elements of the Taliban, and the United States and its allies have certainly had some successes in dealing with localized elements that carried the Taliban flag more as a convenience for personal gain or personal grievance. But recent years have been just as rife with Afghan government and security officials in particular changing sides in the other direction.

Internal discipline and cohesion are a challenge for any revolutionary entity — demonstrated all too clearly by the lack of cohesion of Libya’s National Transitional Council forces now that Moammar Gadhafi’s regime has fallen. As the Taliban’s objective of the withdrawal of U.S. and allied forces nears, the ability of the Taliban’s senior leadership to speak as one voice for the overall phenomenon — and with the demonstrated ability to control the overall phenomenon operationally as well as ideologically — is critical to the strength and credibility of the Taliban’s negotiating position.

As occurs with loosely affiliated groups and in agreements that result in winners and losers, some groups will seek to derail any settlement. Those groups will include what remains of al Qaeda and associated radicalized Islamist groups with a transnational agenda, other foreign fighters and even some locals who have a vested interest in the perpetuation of conflict. Whether the senior Taliban leadership headed by Mullah Omar can contain and manage all these countervailing forces remains to be seen. What is clear is that Mullah Omar is the best chance for a settlement to work. If he cannot manage these players, it is unclear who else might command anything like that sort of broad appeal and deference.

Kabul

For its part, Kabul also understands the need for reconciliation, though it will obviously seek terms that maintain the strength and cohesion of the regime Karzai has built. But having seen his brother killed as part of the Taliban’s assassination campaign and having announced that he has no intention of seeking another term in office, Karzai also wants an honorable retirement — one in which he remains in Afghanistan as a prominent and influential figure free of the constant threat of assassination by an unrestrained Taliban. (To retire in, say, northern Virginia, would be considered not only comparatively dishonorable but a repudiation of everything Karzai had ostensibly built since the U.S. invasion in 2001.) In short, he wants to survive.

Pakistan

Islamabad has long intended to be in the center of any negotiated settlement regarding Afghanistan so that it can maximize its influence in terms of the settlement itself and in post-settlement Afghanistan. Pakistan seeks to end the ideological basis for the ongoing armed struggle in Afghanistan and Pakistan. In other words, Islamabad wants everyone with influence and power — particularly within the Pashtun belt — to reject continued violent resistance. This would give Islamabad the basis for a broadly supported offensive against anyone who continues to fight and would strengthen Pakistan’s hand in its war against the Pakistani Taliban in the Federally Administered Tribal Areas.

Pakistan sees this ability to exercise force in a more limited, but more effective and comprehensive, way as key to a lasting stabilization on both sides of the border. (Given the inherently cross-border nature of populations and fighting, stabilizing its side of the border entails stabilizing both sides.) Islamabad believes this stability would allow more comprehensive and deliberate efforts at consolidating Pakistani influence in Afghanistan.

At the same time, Pakistan will try to halt and ultimately reverse the expansion of Indian influence in Afghanistan. Similarly, Pakistan will also push for as small a U.S. presence in the country as possible.

Whether this sort of comprehensive settlement is achievable is open to question. But both Kabul and Islamabad see the way matters remained unsettled after the Soviet withdrawal as a major factor in the subsequent decades’ instability and war.

United States

After a decade of war,  Washington is attempting to reorient its international military presence and the focus of its foreign policy toward regions of more pressing geopolitical and long-term strategic significance. Having executed the surge as planned, the White House is now firmly committed to withdrawing most of its forces, though what sort of residual and special operations presence might remain is another question.

The sooner a viable political accommodation can be reached, the more orderly the U.S. withdrawal — and the more stable the region — will be. But the counterterrorism and sanctuary denial mission — keeping pressure on what remains of al Qaeda and preventing the re-emergence of a sanctuary from which it can plan and orchestrate transnational operations — will require at best a small fraction of the forces currently deployed in the country.

The question moving forward, then, is how quickly the United States and its allies can extract themselves from Afghanistan and what sort of negotiated settlement might be possible in the interim.


48830
Politics & Religion / Re: US Foreign Policy
« on: September 09, 2011, 12:28:10 PM »
 :cry: :cry: :cry:

48831


EXCLUSIVE: Third Gun Linked to 'Fast and Furious' Identified at Border Agent's Murder

--------------------------------------------------------------------------------

A third gun linked to "Operation Fast and Furious" was found at the murder scene of Border Patrol Agent Brian Terry, new documents obtained exclusively by Fox News suggest, contradicting earlier assertions by federal agencies that police found only two weapons tied to the federal government's now infamous gun interdiction scandal.

Sources say emails support their contention that the FBI concealed evidence to protect a confidential informant. Sources close to the Terry case say the FBI informant works inside a major Mexican cartel and provided the money to obtain the weapons used to kill Terry.

Unlike the two AK-style assault weapons found at the scene, the third weapon could more easily be linked to the informant. To prevent that from happening, sources say, the third gun "disappeared."

In addition to the emails obtained by Fox News, an audio recording from a Bureau of Alcohol, Tobacco, Firearms and Explosives agent investigating the Terry case seems to confirm the existence of a third weapon. In that conversation, the agent refers to an "SKS assault rifle out of Texas" found at the Terry murder scene south of Tucson.

The FBI refused to answer a detailed set of questions submitted to officials by Fox News. Instead, agency spokesman Paul Bresson said, "The Brian Terry investigation is still ongoing so I cannot comment." Bresson referred Fox News to court records that only identify the two possible murder weapons.

However, in the hours after Terry was killed on Dec. 14, 2010, several emails written to top ATF officials suggest otherwise.
In one, an intelligence analyst writes that by 7:45 p.m. -- about 21 hours after the shooting -- she had successfully traced two weapons at the scene, and is now "researching the trace status of firearms recovered earlier today by the FBI."
In another email, deputy ATF-Phoenix director George Gillett asks: "Are those two (AK-47s) in addition to the gun already recovered this morning?"

The two AK-type assault rifles were purchased by Jaime Avila from the Lone Wolf Trading Co. outside of Phoenix on Jan. 16, 2010. Avila was recruited by his roommate Uriel Patino. Patino, according to sources, received $70,000 in "seed money" from the FBI informant late in 2009 to buy guns for the cartel.

According to a memo from Assistant U.S. Attorney Emory Hurley, who oversaw the operation, Avila began purchasing firearms in November 2009, shortly after Patino, who ultimately purchased more than 600 guns and became the largest buyer of guns in Operation Fast and Furious.

Months ago, congressional investigators developed information that both the FBI and DEA not only knew about the failed gun operation, but that they may be complicit in it. House Government Reform and Oversight Committee Chairman Darrell Issa, R-Calif., and Sen. Charles Grassley, R-Iowa, fired off letters in July requesting specific details from FBI director Robert Mueller and Drug Enforcement Administration chief Michele Leonhart.

"In recent weeks, we have learned of the possible involvement of paid FBI informants in Operation Fast and Furious," Issa and Grassley wrote to Mueller. "Specifically, at least one individual who is allegedly an FBI informant might have been in communication with, and was perhaps even conspiring with, at least one suspect whom ATF was monitoring."

Sources say the FBI is using the informants in a national security investigation. The men were allegedly debriefed by the FBI at a safe house in New Mexico last year.

Sources say the informants previously worked for the DEA and U.S. Marshall's Office but their contracts were terminated because the men were "stone-cold killers." The FBI however stopped their scheduled deportation because their high ranks within the cartel were useful.

In their July letter, Issa and Grassley asked Mueller if any of those informants were ever deported by the DEA or any other law enforcement entity and how they were repatriated.

Asked about the content of the emails, a former federal prosecutor who viewed them expressed shock.

"I have never seen anything like this. I can see the FBI may have an informant involved but I can't see them tampering with evidence. If this is all accurate, I'm stunned," the former prosecutor said.

“This information confirms what our sources were saying all along -- that the FBI was covering up the true circumstances of the murder of Brian Terry," added Mike Vanderboegh, an authority on the Fast and Furious investigation who runs a whistleblower website called Sipsey Street.

"It also confirms that the FBI was at least as culpable, and perhaps more culpable, than the ATF in the (Fast and Furious) scandal, and that there was some guiding hand above both these agencies (and the other agencies involved) coordinating the larger operation," Vanderboegh said.

Asked about the new evidence, Terry family attorney Pat McGroder said, "The family wants answers. They'd like to put this to rest and put closure to exactly what happened to Brian."



By William Lajeunesse
Published September 09, 2011
| FoxNews.com
http://www.latimes.com/news/politics...0,109137.story

48832
Science, Culture, & Humanities / WSJ: Initial Radiation reports understated
« on: September 09, 2011, 12:10:02 PM »
TOKYO—The Japanese government initially underestimated radiation releases from the Fukushima Daiichi nuclear plant, in part because of untimely rain, and so exposed people unnecessarily, a report released this week by a government research institute says.

Enlarge Image

CloseReuters
 
An aerial view of the Fukushima Daiichi Nuclear Power Station as seen on March 24, 2011.
.Adding to earlier evidence of initial government missteps, the report by the Japan Atomic Energy Agency says an unlucky combination of heavy rains and shifting winds meant that much of the airborne radioactive debris washed down over a broad area around the crippled plant. Before the changing weather, the radiation had been expected to drift over the Pacific Ocean, which would have posed less of a risk to public health, at least in the short term.

"Local residents would have stayed indoors and avoided radiation if they had been told about the dangers of the rainfall," said Tetsuo Sawada, assistant professor of reactor engineering at the Tokyo Institute of Technology.

The Japanese government's initial evacuation zone—after the March 11 earthquake and tsunami knocked out the plant's cooling systems and caused core meltdowns—was within 20 kilometers (about 12 miles) of the stricken plant. But as the study highlights, radiation spread far beyond the 20-kilometer radius, with rainstorms contributing to the ground contamination.

According to the agency, the rain came on the worst possible day for plant operators—March 15, the day an explosion struck the plant's No. 2 reactor, punching a large hole in the suppression chamber that is part of the primary containment vessel, the main shield for radiation releases. The gash allowed toxic air to leak into the atmosphere without check.

According to the government's Nuclear and Industrial Safety Agency, radiation releases peaked around that day, dropping as workers managed to cool down the badly damaged No. 2 unit, as well as the other three seriously damaged reactors.

"If there was no rain on March 15, the ground contamination would have been far less severe than it is," said Haruyasu Nagai, an author of the report.

Two earlier explosions, just after the disaster, at reactors Nos. 1 and 3, didn't release nearly as much radiation because they occurred outside the primary containment vessels. The explosion at No. 2, by contrast, was caused by a buildup of pressure inside the containment vessel, as the overheating reactor kept producing steam.

The rain started falling in areas around the plant in the afternoon of March 15. At the same time, the wind, which had been heading east—as is normal for the season—shifted and started heading northwest, carrying the toxic air deep into the country.

By the time the rain stopped, a large swath of land to the northwest of the plant, well beyond the 20-kilometer radius, was contaminated far more than allowed for human habitation. In late April, the government belatedly decided to evacuate residents in these areas.

"Much of the radioactive substance would have been carried into the ocean on an easterly wind eventually," says the report's author, who estimates about half of the radiation released in March ended up falling into the ocean.

Asked about the latest report, a spokesman for the nuclear-safety agency said the results appeared to be valid. "The radiation is likely to have spread as the JAEA analysis suggests," Yoshinori Moriyama said.


48833
Politics & Religion / Re: US Foreign Policy
« on: September 09, 2011, 11:46:14 AM »
"Thread Nazi" here again.  The preceding posts I think would do just fine on the China-US thread or the Military thread.

I picture this thread as being more about "the vision thing"; e.g. "The US's unipolar moment is over.  Now what?"

48834
Politics & Religion / Re: The Cognitive Dissonance of His Glibness
« on: September 09, 2011, 10:29:29 AM »
For the record I live some 15-20 miles from Santa Monica.  I drive a 21 year old truck and make my living teaching martial arts.   :-P

48835
Politics & Religion / Re: US Foreign Policy
« on: September 09, 2011, 10:24:36 AM »
The US would not need Turkey for anti-Iranian missile defense if Baraq had not pussed out on the AMD batteries in eastern Europe.

Anyway, more to the point, it makes perfect sense to me that the best thing the US could do would be to sign a mutual defense treaty with Israel.  Reliable and highly capable ally (e.g. two nuke enemies-- Iraq and Syria-- nipped in the bud), permanent base of operations in the mid-east, end to any doubt about viability of Israel's survival, great intel, foxy women, and much more.






48837
Politics & Religion / Re: The Cognitive Dissonance of His Glibness
« on: September 09, 2011, 09:20:18 AM »
Hi, wearing my Thread Continuity Nazi Hat right now :-D

Lets take that to the Tax thread please.

48838
Politics & Religion / Patriot Post
« on: September 09, 2011, 09:18:36 AM »
   

The Foundation
"The natural progress of things is for liberty to yield and government to gain ground." --Thomas Jefferson


Government & Politics
Obama's Speech Job

In case you were busy washing your hair, rewinding your CDs or getting a root canal last night, Barack Obama gave a speech. Yes, another one, and with warmed-over recycled ideas, to boot. He made sure we all knew his speech was about jobs because he used the word "jobs" 44 times. (Given his narcissism, we wonder if that number was intentional.) Indeed, he centered the speech on his "American Jobs Act," which, by the way, aims to create jobs. He hasn't yet sent an actual bill to Congress, though he called for Congress to "pass this bill right away" (or some variant) 17 times, but ... jobs.

In the spirit of bipartisan comity, we'll start by lauding something with which we agreed: "Those of us here tonight can't solve all of our nation's woes," the president said. "Ultimately, our recovery will be driven not by Washington, but by our businesses and our workers." We couldn't have said it better. Government doesn't create jobs; it can only create conditions under which the economy can flourish. Unfortunately, it was downhill from there, because Obama's very next sentence began, "But..."

Obama repeatedly framed his proposals as "nothing controversial" because "everything in here" has already been proposed by "both Democrats and Republicans." We hate to disagree, but nearly everything in the speech was controversial. From tax hikes on job creators in exchange for gimmicky tax credits, to more money dumped into the bottomless pit of education and infrastructure, to the very premise that government must grow in order for the economy to grow -- the ideas presented last night were the wrong ones.

Taxes were a major theme, but instead of proposing permanently lower rates and a broader base -- something that would actually work -- the president called for more temporary complications and supposed sweeteners. Obama said that Congress must extend the temporary payroll tax cut they passed last year, because, he warned, "If we allow that tax cut to expire -- if we refuse to act -- middle-class families will get hit with a tax increase at the worst possible time." That's interesting: A tax cut expiration is a tax increase. Funny how that didn't apply to the Bush tax cuts, which were good for 10 years, not just one. And funny how it doesn't apply to increasing the taxes of job creators "at the worst possible time." Indeed, that was his next proposal.

"[T]here are many Republicans who don't believe we should raise taxes on those who are most fortunate and can best afford it," he said, but, "We need a tax code where everyone gets a fair shake, and everybody pays their fair share. And I believe the vast majority of wealthy Americans and CEOs are willing to do just that, if it helps the economy grow and gets our fiscal house in order." Of course, "everybody" means the top 2 percent. He then declared with a straight face, "This isn't class warfare." Republicans in the chamber gave him the only appropriate response: laughter.

Estimates are that this stimulus package as proposed would cost about $447 billion. That's about half of the first stimulus, and we saw how well that worked. (Little wonder that Democrats have stricken the word "stimulus" from the lexicon.) How on earth will another few hundred billion dollars suddenly fix anything? "Everything in this bill will be paid for. Everything," Obama insisted, but how?

First of all, through the aforementioned tax increases on a select and punishable few. Primarily, however, Obama wants the debt reduction committee, created in the debt ceiling deal to find $1.5 trillion in savings over 10 years, to come up with even more savings, again over 10 years. In other words, let's spend another $450 billion now and have future presidents and Congresses pay for it later. Also, "a week from Monday," Obama will release "a more ambitious deficit plan." If this all wasn't so preposterous, it would've been another laugh line.

Obama also mocked those who think that government is too big. He trotted out his predictable straw-man arguments about Republicans wanting to cut "most government spending" or eliminating "most government regulations." He certainly intends to fight hard for the new floor of government spending and regulation he has established. He may offer a concession here or there, but by and large the damage has already been done. Even rolling back to the bloated and costly -- but still far smaller and cheaper -- government of 2008 will be impossible while he occupies the White House. Finally, there's a big difference between limited government and no government. It is the former that we must seek.

Just how half-baked was this speech?
On Cross-Examination
The Heritage Foundation's policy experts offered their responses to Obama's proposals, from refinancing mortgages to infrastructure spending and tax gimmicks.

The Cato Institute explains in an outstanding video why Keynesian government spending won't actually help.

Open Query
"What here hasn't already been tried and failed before?" --GOP presidential candidate Michele Bachmann


On the Campaign Trail: The GOP Debate
Eight of the Republican presidential candidates gathered at the Ronald Reagan Presidential Library Wednesday night for the first of five fall debates. All eyes were on newly entered candidate Rick Perry. The Texas governor, who spent the week in his state managing wildfire response, is not the slickest debater in the field. That honor would likely go to Mitt Romney or Newt Gingrich. Yet Perry did well enough to solidify his status as the new frontrunner. Michele Bachmann, on the other hand, performed well but continued to fade after Perry's entrance took a huge bite out of her support. Of course, with the media placing Perry and Romney front and center and focusing most of their attention on the two pack-leaders, everyone else on the stage took a backseat. That's what they get for allowing MSNBC to carry the debate.

Some observations about the other candidates: Jon Huntsman continued his disappointing run to the left, apparently under the mistaken impression that independents and Democrats will decide the Republican primary. He will not win the nomination on this course.

Newt Gingrich won't win the nomination, but he won some points in the debate by attacking the moderators for their inane questions. He correctly pointed out that any candidate on the stage would be better than Barack Obama, and that they are in a sense a team working toward winning the White House.

Herman Cain is still struggling to get noticed, and he missed a golden opportunity immediately after Gingrich's answer to attack Obama, instead choosing to attack Romney. He wasn't wrong, but he seemed to have completely missed what Gingrich said and failed to play off of it.

Rick Santorum also won't win the nomination, but wins the award for stupidest question asked of him by the moderators: Where do the poor fit among Republicans? The implication is that Republicans don't care about the poor. Unfortunately, Santorum's answer -- talking in the third person about how much he has done for the poor -- wasn't the best answer.

Ron Paul's contribution is that he leaves no stone unturned, no orthodoxy unchallenged and no candidate unassailed. His questions and points are important for conservatives to consider in fine-tuning positions and policies. All the same, he won't be the nominee. (Yeah, we know -- we might as well be Soviets for saying so.)

In fact, unless something changes drastically, this race is between Rick Perry and Mitt Romney.

Quote of the Week
"If 10 percent is good enough for God, 9 percent should be good enough for government." --Herman Cain at the GOP presidential debate Wednesday night

What did you think of the debate?
This Week's 'Alpha Jackass' Award
Whatever happened to civility? Democrats were certainly quick to call for it when Rep. Gabrielle Giffords (D-AZ) was shot, along with several others, in Tucson in January. In spite of the facts, the Left blamed the Right for heated political rhetoric. Yet when a union leader spews hatred and calls for "war," Democrats suddenly don't mind so much.

"We gotta keep an eye on the battle that we face: A war on workers. And you see it everywhere, it is the Tea Party," thundered Teamster president Jimmy Hoffa Jr. at a Labor Day rally. "They got a war, they got a war with us and there's only going to be one winner. It's going to be the workers of Michigan, and America. We're gonna win that war." Then he promised, "President Obama, this is your army. We are ready to march. Let's take these son of a b-----s [sic] out and give America back to an America where we belong."

Not only was he vulgar, but he also botched the grammar.

Barack Obama took the stage later, saying he was "proud" of Hoffa and other labor leaders. The White House and other Democrat leaders have pointedly refused on multiple occasions to repudiate or even question Hoffa's words. Hoffa himself doubled down, later insisting that he would say it again "because I believe it. They've declared war on us. We didn't declare war on them, they declared war on us. We're fighting back. The question is, who started the war?" Maybe that's why 500 union members in Seattle stormed the Port of Longview with baseball bats and crowbars taking six security guards hostage over hiring objections.

Speaking of a war on "them," the newest rage on Internet is a video game called "Tea Party Zombies Must Die," in which the player kills zombie versions of the Left's favorite conservative bogeymen. "DON'T GET TEA-BAGGED!" reads the description. "The Tea Party zombies are walking the streets of America. Grab your weapons and bash their rotten brains to bits! Destroy zombie Sarah Palin, Michele Bachmann, Glenn Beck, the Koch Brothers, and many more!" (National Review's Daniel Foster has screenshots.) We're just glad to see the juveniles on the Left channeling their angst in such productive ways.

Hope 'n' Change: ObamaCare Wins With Stacked Deck
The Fourth Circuit Court of Appeals upheld ObamaCare Thursday, overturning a lower court's decision in favor of the state of Virginia. The Fourth Circuit ruled that Virginia lacked standing in the case, though at least two judges would have upheld it on the "merits." The Sixth Circuit Court likewise upheld the law earlier this year, though the 11th Circuit Court struck down the individual mandate last month as unconstitutional. Although the Fourth Circuit is roughly evenly divided between Republican and Democrat appointees, this particular three-judge panel consisted of one Clinton appointee and two appointed by Obama. Certainly not a fair hearing. Again, the bottom line is that ObamaCare is headed to the Supreme Court.

New & Notable Legislation
House Republicans are working on legislation that will block a recent proposed ruling by the National Labor Relations Board (NLRB) regarding unionization. The ruling speeds up the process of union elections, offering little time for employers and workers to debate union organization. The U.S. Chamber of Commerce and other business groups have blasted the ruling as an infringement on workers' rights. Another bill has been drafted to keep the NLRB in check by preventing the board from ordering a company to relocate its employees. Senate Republicans have vowed to block any nominations to the NLRB until these issues are resolved.

From the Left: Politicizing Hurricanes
Congressional Democrats manufactured a scandal out of thin air this week, blaming House Majority Leader Eric Cantor for blocking disaster funding in the wake of Hurricane Irene. There haven't been many stories about people being denied aid, however, because it's simply not the case. Yet Democrats are charging that Cantor is doing exactly that. On the contrary, the GOP added $1 billion to FEMA's Disaster Relief Fund in June, and offset the increase by cutting spending on the Advanced Technology Vehicles Manufacturing Program, a liberal pet project to create luxury electric cars. Cantor has noted on separate occasions that the federal government plays too large a role in disaster relief, but, despite Democrats' claims, his efforts to fund FEMA have been more generous than even the White House proposed. The only thing he's guilty of is hobbling Joe Biden's dream project to create electric cars that nobody will buy anyway.

 
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National Security
Warfront With Jihadistan: Iraq Withdrawal on Steroids
Seeking to shore up plummeting poll numbers and pander to its anti-military base, the Obama regime is reportedly set to drastically reduce U.S. troop strength in Iraq to just 3,000 by year's end, a major reduction in strength in the still highly volatile country. When asked about this report, Secretary of Defense Leon Panetta tried to sidestep, saying "no decision has been made" on the number of troops to stay in Iraq, but multiple sources confirm that Obama has already made the decision.

There are currently about 45,000 U.S. troops in Iraq. American commanders recommended a somewhat lower number to remain there by year's end, but the Obama regime, ever thinking of 2012, whined about "the cost and the political optics" of that many troops remaining in Iraq. U.S. commanders then further reduced their recommendation to 10,000, saying that number could work "in extremis," meaning in reality our troops would be hard pressed to continue training Iraqi forces while also maintaining security in large sections of Iraq. Still, even that low troop level was too much for Obama.

U.S. commanders are rightly angry. "We can't secure everybody with only 3,000 on the ground, nor can we do what we need to with the Iraqis," argued one. Another senior military official said that by reducing the number of troops to 3,000, the Obama regime has effectively reduced the U.S. mission in Iraq to training only, at best, while leaving a still-insufficient Iraqi security force to fend for themselves, all of which will endanger the remaining 3,000 U.S. troops -- for nothing more than supposed political gain.

Thankfully, there was some good news for our troops, as August marked the first month since March 2003 that not one U.S. military member died in either combat or non-hostile circumstances while supporting Iraqi operations. Sadly, Obama's latest move seems destined to ensure that August will be the last month we lose no troops in Iraq, at least until he completely surrenders Iraq and brings the handful of remaining troops home.

What will withdrawal from Iraq mean?

48839
Politics & Religion / Re: The Cognitive Dissonance of His Glibness
« on: September 09, 2011, 07:59:06 AM »
Well, we are starting to drift into Liberal Fascism territory here, but I would submit that the tax code is a major, perhaps THE major tool of fascism (both liberal and corporate). 

The poor are told "We are taxing the rich."

The rich are told "Don't worry, its all a game, here's some shelters, loopholes, and deductions"

The special interests are told "We will funnel money to you via the workings of the tax code according to how much you donate to our campaigns."

48840
Politics & Religion / Friedman on Turkish-Israeli Relations
« on: September 09, 2011, 07:54:46 AM »
Second post

Agenda: With George Friedman on Turkish-Israeli Relations
September 9, 2011 | 1359 GMT
Click on image below to watch video:



STRATFOR CEO Dr. George Friedman explains the deterioration of the long-standing relationship between Israel and Turkey and how both sides’ geopolitical interests will affect whether that relationship can be re-established.


Editor’s Note: Transcripts are generated using speech-recognition technology. Therefore, STRATFOR cannot guarantee their complete accuracy.

Related Links
Ankara’s Tougher Regional Stance
Colin: The once close relationship between Turkey and Israel has deteriorated further after a United Nations legal panel report on an incident in May last year, when a Turkish aid convoy to Gaza was attacked by Israeli forces, resulting in the death of nine Turkish activists. The report upheld the Israeli government’s right to impose the blockade, but criticized the troops for excessive force. Turkey has now cut all military ties to Israel, and the relationship seems to be in tatters.

Welcome to Agenda with George Friedman. Two questions: to what extent does the U.N. report really escalate the problems between Israel and Turkey; and to what extent does that matter?

George: I don’t think the report itself escalates the situation in any direction. It simply creates a moment in which the crisis that occurred a year ago during a flotilla incident resumes. I think that really the problem between Israel and Turkey hasn’t been resolved — it’s been put on hold — and it really doesn’t revolve around either the flotilla or apologies. It really revolves around the question of whether Turkey and Israel can maintain their relationship they maintained during the Cold War and the years immediately after it. The world has changed fairly dramatically since the Cold War. The region in which Turkey operates is no longer threatened by the Soviet Union. It doesn’t have a common interest with Israel in fighting the Soviets. Turkey is living in a world that is increasingly Islamist as opposed to secular. It’s accommodating itself to it. Israel, in the meantime, has its own interests in trying to preserve what it thinks are its territorial interests, and they simply don’t coincide with what Turkey is saying. Therefore, these are two countries that were once linked with common interests. Those interests have withered, and the relationship is seriously in trouble.

Colin: In this context, do you think Israel and Turkey can repair their relationship and, if they can, what will that new relationship be?

George: Well this is not like a marriage that gets repaired or unrepaired. These are more like businesses who have interests and the question is: will those interest realign? And there are certainly some common interests, though they’re not as deep as they were 20 or 30 years ago. Because the foundation of the relationship has changed, the nature of the relationship is going to change. Also, the tolerance on the part of each side is going to change. From the Israeli point of view, the Turks have changed to becoming unrecognizable, they say. It used to be a secular republic, and they fear that it has become a religious one. From the Turkish point of view, the Israelis have become inflexible and unrealistic in their policies inside the Palestinian Territories 3.18, and the Israelis have simply not been willing to change their visions. So you have two countries — the basis of the relationship having very much dissolved in the past years — each having a view of the other as having changed irrevocably and neither really desperately needing the other. If you look at it on balance, Israel probably needs Turkey more than Turkey needs Israel simply because if Turkey were to throw its weight behind anti-Israeli forces in the region, which it has not done to this point, that would represent a serious challenge to Israel. On the other hand, there is relatively little that Israel can do to Turkey, certainly not in order to change its foreign policy. So you have had deterioration in the relationship. It is hard to imagine it being repaired, certainly not on the basis of which it was before and certainly not to the depth at which it operated before. And also there is a suspicion on both sides that the other has drifted in directions that are not acceptable.

Colin: The relationship degrades. To what extent will this affect Turkey’s relationship with the United States?

George: Well, Turkey is trying very hard not to allow its relationship with the United States to be affected by its problems with Israel. It has gone out of its way to try to draw a distinction between the two. The United States frankly needs Turkey a great deal, particularly as it withdrawals from Iraq, as Iran becomes more assertive in the region. It needs a Turkey that is prepared to align with the United States. Turkey, on the other hand, is not prepared to go it alone yet. It is not in a position to police the region, if you will, simply without U.S. support. So the Turks are trying to be very careful with the Americans to make it very clear that the cause of this rift comes from Israel and Israel’s unwillingness to apologize; Israel’s unwillingness to accept Turkey as it is today; Israel’s intransigence. The Israelis, at the same time, are very aggressive in trying to make it clear that Turkey has moved into the camp of the enemy of the United States by joining with the Islamists and trying to make the case that it alone is the only secure ally the United States has in the region. Those are public relations campaigns. The fact of the matter is that United States has uses for both countries. The use of Israel is certainly declined over the years since the end of the Cold War, but it still has uses in intelligence sharing and other matters, whereas Turkey is an ascendant power and, as an ascendant power, the United States is going to want to have a close relationship with it. The United States is not going to choose between Turkey and Israel and it won’t allow itself to be maneuvered in that direction. But, on the other hand, it is also not going to allow itself to be split off from either country by the other.

Colin: And this begs another question. With much of the Middle East in turmoil, especially its other neighbor, Syria, isn’t there an opportunity for Turkey to assert itself — to take some kind of leadership role?

George: Well, a leadership role is one of those things that people love to use. With leadership comes responsibility; with responsibility comes decisions; and with decisions comes possibility of error and bogging down. So, everybody likes the idea of leadership. The question is: what’s the price for it? Now I think the Turks, very reasonably, are looking around at a region that the United States wasn’t able to pacify, and it doesn’t have the appetite to get engaged in that. For example, it doesn’t know what the price of pacifying Syria would be; it doesn’t know what the future would hold, and, therefore, it evades it. Leadership is a very heavy burden, and the Turks are not going to adopt that before they’re ready.

Colin: George, we’ll leave it there. Thank you. George Friedman, ending this week’s Agenda. Back again next week and, until then, bye for now.


48841
Politics & Religion / WSJ:
« on: September 09, 2011, 06:38:40 AM »
Another fine post from YA.  Here's this WSJ report on today's episode of congnitive dissonance:

By YAROSLAV TROFIMOV And MARIA ABI-HABIB
KABUL—Peace negotiations with the Taliban are unlikely to bear results until additional military pressure is brought on the insurgents, the new American ambassador to Kabul said, playing down expectations of progress in the efforts to end the 10-year-old war. (Of course said pressure will be brought to bear as we draw down , , ,)

"The Taliban needs to feel more pain before you get to a real readiness to reconcile," Ambassador Ryan Crocker, a veteran diplomat who took over the American Embassy in Kabul in July, cautioned in an interview with The Wall Street Journal on Thursday.

U.S. and Afghan officials have been trying for more than a year to open negotiations with the insurgents, even as U.S. surge troops deployed since early last year advanced into Taliban strongholds, killing or capturing scores of insurgent commanders. That surge is now beginning to wind down, with the U.S.-led coalition aiming to bring most combat troops home by the end of 2014.

Afghan President Hamid Karzai has made a peace settlement his key priority, establishing a special High Peace Council entrusted with pursuing a political solution to the intensifying conflict. So far, these contacts with insurgent representatives, carried out in Afghanistan and abroad, have failed to produce any concrete results.

"They are still just kind of feeling each other out at this stage," Mr. Crocker said.

A key stumbling block, a person familiar with these outreach attempts said, is that Afghan and U.S. officials are still trying to establish whether their interlocutors have the authority to speak for the Taliban's leader, Mullah Mohammed Omar.

The Taliban until recently publicly rejected the idea of peace negotiations, saying all foreign forces must leave Afghanistan before any such talks begin. Last month, however, Mullah Omar appeared to soften that position, admitting for the first time that some contacts have already taken place.

In an Aug. 28 message for the Islamic Eid al-Fitr holiday, Mullah Omar said "every legitimate option can be considered" in order to reach the Taliban's goal of establishing "an independent Islamic regime" in Afghanistan. He added, however, that "the contacts which have been made with some parties for the release of prisoners can't be called a comprehensive negotiation for the solution of the current imbroglio of the country."

Mullah Omar's statement, which also promised to establish a "peace-loving and responsible regime" that would encompass all Afghan ethnicities and encourage businessmen and professionals, in recent days elicited cautious optimism among some U.S. and Afghan officials.

Mr. Crocker said he disagreed with such upbeat assessments.

"Mullah Omar's Eid message, read as positive in some quarters, did not infuse me with any optimism," the ambassador said. "He acknowledged the talks but said they are purely tactical. He did not indicate a readiness to make any concessions at all on the side of the Taliban," he said.

Mr. Crocker called it "the kind of statement that one would expect from a governmental leader in waiting. I think he's going to be disappointed."

If there was anything encouraging in Mullah Omar's new approach, he added, it was the indication that the Taliban may be feeling the effect of the coalition's offensives.

"They have been hurt militarily and they are therefore broadening the array of tools that they are prepared to deploy, like talks, visits, so forth," he said.

Until recently, some Afghan and Western officials had hoped that military pressure—combined with the peace outreach—would persuade the Taliban to send representatives to the international conference on Afghanistan that is scheduled for December in Bonn.

That isn't likely to happen, in part because of obstacles thrown up by Pakistan, where Mullah Omar and other key Afghan Taliban leaders reside, a Western diplomat said.

The Pakistani government, eager to maintain its leverage, hasn't yielded to Afghan requests to publicly call on the Taliban to open peace talks. Pakistan also declined to provide safe-passage guarantees that would allow Pakistan-based Taliban leaders to travel for any such negotiations.

"Implicit in that is, 'Yeah, you can try to get to Afghanistan. I hope your family is going to be OK!' " the Western diplomat quipped. Mullah Omar said in the Eid message that this year's Bonn conference will be no different from the one that created Afghanistan's post-Taliban government headed by Mr. Karzai 10 years earlier because "neither true representatives of the Afghan people have participation in it, nor attention is paid to the comprehensive and real solution of the problems of Afghanistan."

The deputy chairman of the Afghan government's High Peace Council, Abdul Hakim Mujahid—who served as the Taliban regime's unofficial envoy to the U.S. and the United Nations before 2001—said it is unrealistic to expect the Taliban to "come out of their caves" as long as the international community doesn't accept them as "a real force" in Afghanistan.

"There is a great ocean of a lack of confidence," Mr. Mujahid said.

In the absence of progress in high-level contacts with the Taliban, the U.S. and Afghan officials are concentrating on the so-called reintegration program that aims to woo Taliban foot soldiers and midlevel commanders from the battlefield with offers of amnesty and jobs.

"We've seen several thousand move forward in this process," Mr. Crocker said. "If this were to increase exponentially you could kind of see commanders without an army—and that could really change the dynamic."


48842
Politics & Religion / The Chickens come home to roost
« on: September 09, 2011, 06:27:54 AM »
The natural results of the Dems continuous war against US success in Iraq come to their natural conclusion.
============

U.S. Military Presence in Iraq Will Struggle to Counter Iran

Most U.S. officials Tuesday and Wednesday denied that any decision had been made regarding the number of American troops that might remain in Iraq beyond the end-of-year deadline for complete withdrawal stipulated under the current Status of Forces Agreement (SOFA). However, The New York Times reported Tuesday that newly appointed U.S. Secretary of Defense Leon Panetta supported a plan keeping 3,000-4,000 troops as the continued U.S. military presence in Iraq— a number far less than previously discussed. Only a day after the Times report which cited an unnamed senior military official, U.S. Ambassador to Iraq James Jeffery went a step further than most in responding to the leak. The ambassador rejected the given figure as having ‘no official status or credibility.’

“The continued maintenance of U.S. forces in Iraq is ultimately merely a symptom of the larger, unresolved issue of Tehran’s increasing regional influence.”
Washington is less concerned with Iraq itself, and more with how the changes in Iraq following the U.S. invasion have affected Iran. Despite the accommodation reached with the Sunnis in 2006 and the successes of the surge of 2007, no extension of U.S. troop presence in Iraq is going to change the fact that Iran has been the single biggest beneficiary of the 2003 U.S. invasion of Iraq. Iran has seen a rapid rise in the magnitude of its regional influence — and has every intention of keeping it.

Despite domestic politics at home, the U.S. desire to maintain some military presence in Iraq beyond the end of the year is motivated by Iran’s increased influence. Tehran’s regional rise is a problem to which Washington has no ready solution — unless, of course, Washington wants to engage in a politically unpalatable rapprochement with the Persians from a disadvantageous negotiating position.

Thus, Washington is left with an unresolved and, at least in the near term, unsolvable problem — an increase in Iranian power, not just in Iraq, but  across the Persian Gulf and the wider region. Iraq benefits from direct military-to-military relations with the United States through training, advising and assistance (particularly with things like planning, logistics and maintenance) and modern arms. These ties provide Iraq and its security forces with capabilities they would otherwise lack. For Washington, a residual military force in Iraq helps maintain the influence, leverage and situational awareness that having its personnel in these positions provides. This capability is not something Washington wants to lose, particularly after longstanding American-Egyptian military-to-military relations proved so crucial in communicating with Cairo in February.

While the benefits to Washington of a continued military presence in Iraq are real — starting with its impact on Washington’s influence in Baghdad — they do little to address the larger problem of Iranian power in the region. Even if tens of thousands of troops remained in Iraq beyond 2011, they could not halt the decline of American influence and power in Iraq vis-a-vis Iran.

While the question of the size, role and disposition of any U.S. military contingent in Iraq beyond 2011 is an important one, the continued maintenance of forces in Iraq is ultimately merely a symptom of the larger, unresolved issue of Tehran’s increasing regional influence. Even if no American uniformed forces remain save a Marine Security Guard detachment and attache personnel at the embassy, the United States will still be maintaining the largest diplomatic presence in the world in Iraq. Nevertheless, no quantity of U.S. forces currently under discussion — not 3,000 and not even 30,000 — will change the fact that this American presence, while attempting to hold the line against Persian influence, leaves personnel and troops vulnerable to Iranian proxies and covert Iranian forces in the country.



48843
Here's is today's episode in the sort of insidious nonsense triggered by beggar-thy-neighbor currency devaluations:

By NEIL SHAH and JESSICA MEAD
Norwegian and Canadian officials on Thursday criticized Switzerland's move this week to cap the rise of its currency, as the impact reverberated in currency markets world-wide.

The Norwegian krone soared against the euro after the Swiss National Bank said Tuesday that it would use "unlimited" spending to prevent the euro from falling below 1.20 francs. The move sent investors flooding into other currencies belonging to economies viewed as fiscally sound, with Norway among the top destinations.

Norwegian central bank Gov. Oystein Olsen warned investors that a strengthening krone would stifle Norway's economy by hurting exports. A swift policy response—likely lower interest rates—is in the offing if the krone keeps rising, Mr. Olsen said.

The Federation of Norwegian Industries said Thursday that the krone's strength was putting pressure on Norway's companies. "It's a serious issue when the Norwegian krone is so strong," Knut Sunde, an executive of the federation said. "We hope that the Swiss effect will fade, but we are not sure," Mr. Sunde said.

Canadian Finance Minister Jim Flaherty on Thursday said he is "concerned" about Switzerland's audacious move into foreign-exchange markets and worried it could ignite another round of so-called currency wars. Brazil's Finance Minister Guido Mantega last year began referring to the prospect of "currency wars" among countries seeking to protect their economic growth by keeping the value of their currencies down.

Mr. Flaherty said he planned to discuss the issues at this week's meeting of Group of Seven finance ministers in France.

For months, funds have flowed into Switzerland and other supposedly safe countries as investors have sought havens from Europe's financial crisis and the U.S.'s economic woes. In early August, the euro fell to near-parity with the Swiss franc, from 1.50 francs at the start of 2010.

Such flows are the latest example of floods of capital leaving the world's sluggish economies—especially the U.S. and the euro zone—and entering faster-growing economies such as Canada and Brazil.

What Norway, Sweden, Japan and other refuges have in common is big current-account surpluses, which means they rely less on international investors for financing and seem safer to investors.

Japanese officials this week quashed speculation that Japan would follow Switzerland in curbing the yen with a ceiling. However, Norway's pushback is making investors wonder again where to run when markets turn turbulent.

"Investors are saying, if you're taking away one of our safe havens, where's the next one?" said Thanos Papasavvas, an analyst at Investec Asset Management in London, which manages around $100 billion in funds. The Norwegian krone "doesn't have the liquidity and the history of the Swiss franc," he added.

Axel Merk, chief investment officer at Merk Investments LLC, a Palo Alto-Calif., currency-management fund, says investors should stop looking for a safe place to hide.

It is also possible traders' preferences for Switzerland and Japan won't change much, especially if Switzerland's intervention effort eventually fails, as many expect. The euro traded at 1.2149 francs late Thursday in New York—close enough to the ceiling to indicate there is still investor demand, traders said.

—Katarina Gustafsson and Paul Vieira contributed to this article.

48844
Politics & Religion / WSJ: Abbas rebuffs Baraq
« on: September 09, 2011, 06:12:05 AM »
By JAY SOLOMON in Washington and JOSHUA MITNICK in Ramallah

Palestinian President Mahmoud Abbas rebuffed a last-ditch U.S. push aimed at getting him to back away from his campaign to win Palestinian statehood through a United Nations vote, placing Washington and Ramallah on a potential collision course in the months ahead.

On Thursday, Mr. Abbas recommitted to his plan to pursue the U.N. vote this month, following a meeting in the West Bank the previous day with two senior Obama administration officials. These officials explicitly warned the Palestinian leader that his relations with the U.S. could sour if he followed through on his initiative, according to diplomats briefed on the meeting.

The two American diplomats, the White House's Dennis Ross and special Middle East peace envoy David Hale, specifically pointed Mr. Abbas to threats made by the U.S. Congress to cut American financial assistance to the Palestinian Authority as a result of the U.N. initiative, according to these diplomats.

Messrs. Ross and Hale also told the Palestinian leader that the U.N. vote could undermine security in the Palestinian territories and potentially derail longer-term hopes for Mideast peace, as Israeli Prime Minister Benjamin Netanyahu will likely disengage and harden his government's position toward the Palestinian Authority, according to these diplomats.

"The U.N. route is not an option," the American diplomats said, according to an official briefed on the exchange.

Mr. Abbas confirmed during a news briefing in Ramallah on Thursday that the U.S. has been exerting growing pressure on him to back away from his U.N. strategy. But he said he still planned to introduce a resolution to the Security Council this month asking that the 15-nation body recognize Palestine as a sovereign state, despite repeated U.S. statements that it will veto the measure.
"They talked about some sort of confrontation, which means there will be a big difference between'' the Palestinians and the U.S., Mr. Abbas said. "I am in need of their help. I will keep my relations normal-style with them. But if they don't want that, of course, it's up to America."

U.S. officials acknowledged Thursday they have been increasing pressure on Mr. Abbas. The State Department said U.S. diplomats would veto any resolution on Palestinian statehood placed before the Security Council. The State Department has also launched a global campaign in recent weeks to lobby governments to vote against any Palestinian initiative at the U.N. General Assembly. "If something comes to a vote in the U.N. Security Council, the U.S. will veto," State Department spokesman Victoria Nuland said Thursday.

The U.S. envoys offered sweeteners to Mr. Abbas on Wednesday, according to the diplomats briefed on the meeting. But Palestinian officials said these were too little, too late.

Among the incentives: The U.S. had suggested the so-called quartet of powers working to broker a Mideast peace—composed of the U.N., European Union, U.S. and Russia—would put out a new statement in the coming days that seeks to more formally define the terms of a new round of talks between Israel and the Palestinians.  (What a , , , remarkablestrategy this is!)

The statement is specifically seeking to weave in President Barack Obama's stated position that new talks use Israel's borders prior to the 1967 Six Day War as the baseline for creating a new Palestinian state, while acknowledging the need for some territorial exchanges. Mr. Netanyahu has so far rejected such parameters for the talks, arguing that Israel's 1967 borders are now "indefensible."

The Palestinians have been asking the quartet to demand a complete freeze on Jewish construction in the disputed West Bank and East Jerusalem, a timeline for new talks and guarantees that East Jerusalem and the future status of Palestinians refugees will be on the agenda.

None of these issues are expected in the new statement, U.S. and European officials say.

Mr. Abbas said Thursday that he would look at the text of any new quartet statement. But he strongly suggested that his decision had been made to go to the U.N. "If if they come now in this short time and say: 'Okay, we have a package, and don't go to the United Nations,' I think this amounts to a game,"' Mr. Abbas said.

The U.S. officials also told Mr. Abbas that U.S. Secretary of State Hillary Clinton would play a more central and "personal" role in the peace process if the Palestinians agreed to enter into another round of direct talks with Israel's government.

U.S. officials privately worry that a decision by the Obama administration to veto the Palestinian initiative could end up dominating the debate at the U.N. General Assembly during the last two weeks of September.

The White House had been hoping to utilize the annual event to showcase the spread of democratic movements across the Middle East and North Africa. Mr. Obama is planning to participate in an event showcasing the new leadership in Libya that recently overthrew longstanding strongman Moammar Gadhafi, with the help of U.S. and North Atlantic Treaty Organization military strikes.

The Palestinians' push at the U.N. is in many ways ceremonial. Only the Security Council has the power to formally authorize the creation of a new state, which Washington has made clear won't happen.

But Palestinian officials said they were likely to work around the Security Council and seek a vote among the 192-nation General Assembly aimed at giving Palestine the status of a nonmember observer state. Only the Vatican now has that status.

A widely expected vote in favor could give the Palestinians far more rights at the U.N. and membership at key U.N. and global bodies, such as the U.N. Human Rights Council and the International Criminal Court at the Hague.

Israeli officials are already expressing concerns that their government could face growing legal challenges at both the Human Rights Council and the ICC if the General Assembly votes in favor of the Palestinian initiative. Indeed, Messrs. Ross and Hale told Mr. Abbas that actions by the Palestinians at the ICC was a "red line" that the U.S. believed couldn't be crossed.

Mr. Abbas said Thursday that the Palestinians aren't looking to go to the ICC, but suggested they might pursue claims there in the future in response to Israeli actions.

Leading Democratic and Republican lawmakers have publicly warned Mr. Abbas in recent months that he risks future U.S. financial assistance if he goes forward with the U.N. vote. The U.S. has been providing the Palestinian Authority with $500 million to $900 million in annual aid. It has come in the form of military assistance, direct budgetary support and funds for international organizations like the World Bank and International Monetary Fund.

The chairwoman of the House Foreign Affairs Committee, Ileana Ros-Lehtinen (R., Fla.), announced last month that she would also seek to cut off funding for any U.N. agency that accepts an upgrade in the Palestinians' diplomatic status.

In 2006, Congress briefly cut off most funding for the Palestinian Authority after the militant group Hamas, which the U.S. designates as a terrorist organization, won local elections. The U.S. actions greatly undercut the Palestinian Authority's ability to pay its staffers and meet its financial obligations. Much U.S. legislation toward the Palestinians has rigid requirements that limit the White House's ability to seek waivers.

Still, a number of U.S. officials have privately said that the cessation of aid to the Palestinian Authority could end up undermining Washington and Israel's interests. The Palestinian Authority has been commended for improving the performance of its security forces in the West Bank. An end of military assistance could ultimately hurt Israel's security situation, said these U.S. officials.

"If they cut their aid to us, it will be a different situation,'' Mr. Abbas said Thursday. "Of course it's a problem."


48845
"Labor to keep alive in your breast that little spark of celestial fire called conscience." --George Washington, The Rules of Civility, 1748

"[N]either the wisest constitution nor the wisest laws will secure the liberty and happiness of a people whose manners are universally corrupt." --Samuel Adams, essay in The Public Advertiser, 1749

48846
Politics & Religion / Rothstein: Exhibition Review
« on: September 09, 2011, 05:51:42 AM »
Second post of the morning:  Another thoughtful piece from internet friend Ed Rothstein:
================================

This review of a 9/11 exhibition in NY expands on one of the themes I touched on last week.

http://www.nytimes.com/2011/09/08/arts/design/911-exhibition-at-new-york-historical-society-review.html?ref=edwardrothstein&pagewanted=all

 

Ed

 

Exhibition Review
Recapturing the Spirit of a City as It Reeled From Its Wounds


Fred R.Conrad/The New York Times

An exhibition at the New-York Historical Society displays photos and relics from the terrorist attacks.

By EDWARD ROTHSTEIN
Published: September 7, 2011
Related
·         Outdone by Reality(September 1, 2011)
·         9/11 Books Released Into a Sea of Others(September 6, 2011)
·         Critic’s Notebook: Amid the Memorials, Ambiguity and Ambivalence(September 3, 2011)
Enlarge This Image



Fred R.Conrad/The New York Times
The exhibition includes children's letters and tributes.

 

After 10 years the devil is still in the details. And we see them, again and again, in the modest exhibition opening at the New-York Historical Society on Thursday, “Remembering 9/11.”

The images still have the feel of raw scars: the gashed towers spewing smoke; the layers of pale, powdery dust from metal, paper and flesh covering a rack of abandoned bicycles; exhausted firefighters and police officers tempering their own terror to rescue others; eyes of onlookers peering up, hands over mouths, shocked at seeing things still thought too horrifying to show; the deserted Holland Tunnel; piles of ruined fire hydrants; a forensic specialist’s test tube showing a single tooth.

And we see images of the shrines that seemed to spring up in any public space of the city, with candles, poems, photographs, pleas: “Missing Person,” “Please Call,” “Have you seen my Daddy?”

“Missing,” one sign announces, “Two handsome twins”: the illustration shows a ghostly image of the two towers.

The exhibition’s curator, Marilyn Satin Kushner, explained in an interview that, apart from incorporating images from Washington and from Shanksville, Penn., these 135 photographs were randomly selected from the 6,500 that were gathered in the months after the attacks and displayed in two small SoHo storefronts in what was almost an impromptu commemoration called “Here Is New York: A Democracy of Photographs.” Solicited and unsolicited, unsigned, undated and unidentified, roughly rendered on inkjet printers, these accumulated images from the life of a city, which are now part of the society’s collection, still have a powerful effect. They seem to overlay one another in the mind, each one added to a ghostly memory of another, imprints of shocking and immediate experience. The original collection also included first-person video recollections, five of which are sampled here in audio form.

A wider selection of images will also be shown in a free exhibition in the lobby of 195 Broadway, at Fulton Street, near the ground zero site, from Saturday to 18. Some will be permanently mounted in a new gallery of the historical society when its building fully opens on Nov. 11, after its extensive renovation and redesign. For now this exhibition, free to the public, is in a small rotunda entry space and a long cramped hallway.

Four years ago, when the New-York Historical Society gave a more complete showing of these photographs, they seemed to suggest that Sept. 11 was still something to be remembered rather than interpreted, still an event that could only be invoked as a series of traumatic memories, not as a historical event to be understood and put into context.

Surprisingly, not much has changed for the 10th anniversary, either here or in many other planned events this week. The private details of grief still overwhelm any sense of public meaning, which is peculiar given the scale of the event and its consequences.

But those private details are still powerful in themselves. With great savvy, soon after the attacks, Kenneth T. Jackson, then president of the society, set a goal of collecting material associated with Sept. 11. So this exhibition supplements the photographs with objects saved from makeshift shrines, some of the poems and posters still covered with drops of wax from memorial candles. Also shown here are children’s letters and drawings donated by fire and police departments, expressions of touching directness and sincerity sent to New York from all over the country and from foreign lands as well.

The exhibition includes a selection of the “Portraits of Grief” pages published in The New York Times in the months after Sept. 11; every day the paper offered brief, pungent evocations of individual lives lost. Thirty four reproduced pages are mounted as two video screens slowly scroll through the complete collection of these portraits. Again details tell, sketching the fireman who loved to teach children about safety (Raymond R. York); the Indian software designer on a three-month project in New York (Shreyas Ranganath); the accounting manager who had a year earlier graduated from Queens College night school while working two jobs (Del-Rose Cheatham); the insurance broker who, from the time he was 13, had dreamed of moving to New York from Williamsburg, Va. (Rick Blood). We read of scheduled marriages and celebrations never to take place, of fervent passions cut off, of conversations unfinished. The deaths are seen as tears in the life fabric, all threads suddenly and brutally ripped apart.

The overall impact of all this material is powerful. But it is strange that even after a decade, the scope of remembrance does not extend to more extensive interpretation. This exhibition is not alone; this anniversary is widely marked by ambiguity, uncertainty and guilt.

What in this exhibition would be different if these thousands of dead had been wiped out in a tsunami like the one that hit Japan earlier this year? What, in these images, objects and stories would be any different if there had been an earthquake that had simply consumed the twin towers in its maw? Where is the sense that this was not an act of God but an act of man? And that it was an attack, not simply a calamity? Even the sketches for the National September 11 Memorial by its architect, Michael Arad, some of which are also shown here, are meditative, abstract, focusing on the gaps left by destruction.

We only see a few hints that it was anything other than an act of God: one photograph shows a banner warning about domestic brutality against American Muslims (which never took place beyond isolated and quickly condemned incidents); another shows a hasty protest against any possibility of a counterattack. “Our Grief Is Not a Cry for War” is the sign three protestors hold up, a reaction that would have been unimaginable as a response to attack in the parts of the world that cheered for the terrorists afterward.

From the very start, as such images suggest, there was a kind of anticipatory retreat from the implications of the attack, an impulse now amplified by judgments of missteps made over the past decade.

Is this vagueness something Mayor Michael R. Bloomberg is aiming at as well in his decision not to invite first responders and members of the clergy to join him at the Sept. 11 commemoration this Sunday while inviting victims’ family members? This eliminates two groups that clearly gave Sept. 11 a broader public meaning. Listen, in the exhibition, to the account of an encounter with a priest described by a survivor, Joanne Capestro, who tells of barely making it out of one of the towers. Emerging, she sees piles of bodies of those who jumped spread over the ground before her; as the tower collapses, she dives under a nearby car, where a priest comforts her.

But the ceremonial emphasis on family members is in keeping with the almost private sensations of this exhibition as well. We recollect Sept. 11, it seems, as an accumulation of personal griefs; nothing larger has been defined. There is almost a decision to avoid, to turn the head, to give just passing acknowledgment to religious sentiments offering compassion and comfort (look at all the wax drippings from votive candles) and to overlook completely the religious hatred that lay behind the attacks (which is invisible here, and which, one ventures to guess, will be largely absent on Sunday). Is there a fear of somehow seeming too crude by naming what should be named?

Just after Sept. 11, it seemed that the enormity of the experience was going to undermine the doctrines of postmodern relativism that typically affirmed that no particular judgment has any essential priority over any other, and bring to an end too the almost reflexive analyses that consistently cast the West as the world’s unambiguous villain. But is it possible that these impulses have just metastasized and that, given strength by events of the last decade, they prevent us from daring to commemorate and comprehend rather than simply remember?

“Remembering 9/11” runs through April 1 at the New-York Historical Society, 170 Central Park West, at 77th Street; (212) 873-3400 or nyhistory.org. “Here Is New York @ 195 Broadway” runs from Saturday through Sept. 18 at 195 Broadway, at Fulton Street, Lower Manhattan; downtownny.com.


48847
Politics & Religion / WSJ: As predicted by Stratfor
« on: September 09, 2011, 05:44:15 AM »
.ISTANBUL—Turkey is showing signs of trading its vaunted "zero problems with neighbors" foreign policy for a more muscular approach to its bid to become the leading power in the Middle East and North Africa.

The shift, analysts and diplomats say, could trigger clashes with Israel and force Washington to choose between its closest allies in the region.

In recent weeks the policy change has been on display as Prime Minister Recep Tayyip Erdogan threatened to deploy his country's navy in a dispute with Israel, approved a major aerial bombing campaign against Kurdish rebels in northern Iraq and pressed Egypt to let him make a politically provocative visit to Hamas-run Gaza.

A Turkish cabinet minister also threatened that Turkey would use its navy to prevent Cyprus and Israel from developing offshore natural gas fields without the involvement of Turkish-backed Northern Cyprus.

Shifting Approach
IRAN
Before Arab Spring: Turkey votes against sanctions on Tehran at U.N.
After: Turkey Agrees to host radar for missile-defense directed at Iran. (MARC: Made necessary by Baraq buying off the Russians  by not placing anti-rocket missiles in eastern Europe as promised to the E-Euros because he wanted to have Russia allow alternate supply routes for Afghanistan)

KURDS
Before: Pursues 'democratic opening.'
After: Launches missile strikes.

CYPRUS
Before: Protests natural-gas drilling.
After: Threatens to deploy navy.
.On Monday, Mr. Erdogan departs for high-profile visits to Egypt, Tunisia and Libya—three core battlegrounds in the wave of popular revolutions that have swept the Arab world in the past year.

Turkey isn't shifting from soft power to hard, says Ibrahim Kalin, senior adviser to Mr. Erdogan, but is using "smart power" by turning to force where necessary. "The soft power is still there," he says.

The Arab Spring forced Turkey to retool its foreign policy, analysts and diplomats say, after the revolutions rocked the regimes of Syrian President Bashar al-Assad and Libya's Col. Moammar Gadhafi—partners in Turkey's "zero problems" approach—and for a time put Ankara in conflict with popular Arab sentiment.

Mr. Assad's crackdown also drove Ankara into more direct competition with Syrian ally Iran, whose regime Turkey had courted assiduously. Last week, Ankara agreed to host the forward radar for a North Atlantic Treaty Organization missile-defense system directed at Iran.

While the Obama administration has expressed alarm over the confrontational approach to Israel, U.S. officials said they have been coordinating closely with Turkey in responding to political upheavals in Arab countries—and Washington views Ankara as central to any efforts to stabilize the Mideast.

Turkish officials see the Arab upheavals of 2011 as playing to Turkey's strengths as a model Muslim democracy. They say their "zero problems" policy remains in tune with the Arab Spring, because it shares the same values as the protesters.

The officials now feel ready to press those advantages with Mr. Erdogan's trip next week. "We have made it clear we never had any kind of imperial intentions, but there is demand from the Arab street," Mr. Kalin said in a phone interview on Thursday.

How much Turkish leadership Arab leaders will accept remains an open question. Mr. Erdogan pushed hard, for example, to secure Egyptian permission to cross its border into Gaza, where he would likely receive a hero's welcome for his vocal opposition to Israeli policy. Egypt so far appears to have refused permission for the trip.

So far there is little sign that Israel will bow to threats and meet Turkey's demand that it should apologize for the deaths of nine people in the seizure of the Gaza-bound Mavi Marmara ship in May 2010.

Nor does Cyprus appear to be rushing to compromise in reunification talks, while Syria's President Assad has so far rebuffed pressure to reform from Ankara, as well as from other capitals. Israel sees Turkey's campaign for an end to the blockade of Gaza as part of a strategic decision to gain prominence in the Muslim world at the expense of their old strategic alliance.In Iran, ex-justice minister Ayatollah Hashemi Shahroudi complained that Turkey is promoting "liberal Islam."

The policy shift doesn't have universal appeal at home, either. Turkey's main opposition party leader Kemal Kilicdaroglu caused a storm of protest from government officials on Wednesday when he said Turkey's foreign policy had turned from one of zero problems to "zero gains."

For now though, surveys suggest Mr. Erdogan is the most popular leader in the Middle East.

In Egypt, a new zeal for revolutionary change has cast Mr. Erdogan's more confrontational attitude toward Israel and his moderate approach toward political Islam as a model for the democratic experiment. Activists are reportedly planning a welcome party to greet Mr. Erdogan's arrival.

Egyptian foreign-policy institutions are less likely to look to Turkish regional leadership with the same enthusiasm, said an official in Egypt's ministry of foreign affairs. "Egypt is not in the business of following," he said.

Mr. Erdogan, in a speech at Cairo University on Monday, will set out Turkey's vision for the region's future, one defined by "not occupation, not authoritarianism, not dictatorship," said Mr. Kalin.

Mr. Erdogan will also sign bilateral energy and other economic agreements, attend a high-level joint political-security council, meet representatives of the prodemocracy movement and address a meeting of Arab League foreign ministers, according to Mr. Kalin.

Yet Mr. Erdogan's outreach to the Arab world comes with a visibly tougher approach to foreign policy. That includes a series of warnings to Cyprus and Israel in recent days against drilling offshore for natural gas without the involvement of Turkish-backed Northern Cyprus.

"That's what naval forces are for," Egemen Bagis, Turkey's Europe minister told the Sunday's Zaman newspaper.

"In this game of brinksmanship accidents can happen, not least because parts of the Israeli government are prone to high risk-taking," says Professor Ilter Turan, professor of international relations at Istanbul's Bilgi University.

Mr. Turan sees the Turkish government's more aggressive stance as part of a wider confidence that is the result of the ruling Justice and Development Party's sweeping re-election in June.

In a sign of that confidence, Ankara—once careful to court the European Union—this summer threatened to freeze relations with the bloc over Cyprus reunification talks.

Then, in August, Turkey's once all-powerful generals effectively admitted defeat in a power struggle with the government; a new slate of top commanders appears to have accepted civilian control, boosting government confidence.

It isn't clear how far Turkey will go. For example, while Ankara has threatened to send out naval patrols, it has yet to do so. The assault on bases of the outlawed Kurdish Workers' Party, known as the PKK, is only the first in several years and hasn't expanded into a land campaign.

According to Henri Barkey, Turkey specialist and professor of international relations at Lehigh University, Pennsylvania, Turkey is using the latest conflict with Israel in "a bid to recover lost prestige in the Arab world" after the Arab Spring. At the same time, he said, Ankara is bidding for regional leadership and challenging the U.S. to choose between its two closest regional allies.

"It's a very high stakes approach, but they are also very confident," he said.

—Joshua Mitnick in Tel Aviv, Matt Bradley in Cairo and Jay Solomon in Washington contributed to this article.

===================
Associated Press
ANKARA—Prime Minister Recep Tayyip Erdogan stepped up his belligerent rhetoric against Israel, saying that the country's warships will escort Turkish Gaza-bound aid ships in the future to prevent a repeat of last year's Israeli raid on a flotilla that killed nine people.

Erdogan's comments to Al-Jazeera television broadcast on Thursday was the first time Turkey said it will send warship to help attempts to break Israel's blockade of Gaza. The country had already announced it would increase navy patrols in the eastern Mediterranean in response to Israel's refusal to apologize for the raid.

"At the moment, there is no doubt that the Turkish military ships' primary duty is to protect [Turkish] ships," Anatolia quoted Mr. Erdogan as telling Al-Jazeera. "We will be making humanitarian aid. This aid will no longer be subjected to any kind of attack as the Mavi Marmara was."

Eight Turks and a Turkish American were killed aboard the Turkish ship, Mavi Marmara, that was part of an international flotilla trying to break the blockade, which Israel imposed in 2007 to keep militants from bringing weapons into Gaza.

Dan Meridor, the Israeli Cabinet minister in charge of intelligence, said Friday that Mr. Erdogan's threat was "grave and serious."

"Turkey, which declares that Israel is not above international law, must understand that it isn't either," he said.

"I do not think it would be correct to get into verbal saber rattling with him now," Mr. Meridor told Army Radio. "I think that our silence is the best answer, and I hope this will pass."

"I think anyone who is listening can make their own mind up about him and the direction he has chosen," Mr. Meridor said.

A United Nations report into the raid, released last week, said violent activists on board the Mavi Marmara had attacked the raiding naval commandos and described the blockade of Gaza as legitimate, although it also accused Israel of using disproportionate force against the activists.

Turkey rejected the report's findings saying it would never recognize the blockade's legitimacy and insisted on an Israeli apology as well as compensation for the deaths as a precondition for normalization of a relationship once seen as a cornerstone of regional stability.

Last week, it slapped a series of sanctions on Israel—once a top military trading partner—that included the expelling of senior Israeli diplomats and the suspension of all military deals. It has also wowed to back the Palestinians bid for recognition of their statehood at the U.N.

Israel has expressed regret for the loss of lives aboard the flotilla but has refused to apologize saying its forces acted in self-defense. It has also said it was time for the two countries to restore their former close ties.


48848
Politics & Religion / POTH: The Dodd-Frank Employment Act
« on: September 09, 2011, 05:30:03 AM »
D-F boggles even the mind of Pravda on the Hudson:
================================
The amount billed by Debevoise & Plimpton to write a 17-page letter on a new rule intended to rein in risky banking — around $100,000 — would make most authors jealous.


That’s the fee just for parsing the proper definition of a bank-owned hedge fund. Longer and more complex regulatory missives, weighing in on who should be deemed too big to fail or how derivatives are traded, can easily cost twice as much.
These comment letters could save Wall Street banks billions of dollars if they help persuade policy makers to adopt a more lenient interpretation of the coming rules. And white-shoe law firms like Debevoise & Plimpton are cranking them out by the dozen.

Call it Dodd-Frank Inc. A year after Congress passed the broadest financial overhaul since the Great Depression, the law has spawned a host of new businesses to help Wall Street comply — and capitalize — on the hundreds of new regulations.

Besides the lawyers, there are legions of corporate accountants, financial consultants, risk management advisers, turnaround artists and technology vendors all vying for their cut.

 “It is a full-employment act,” said Gregory J. Lyons, a partner at Debevoise, where a team of a half-dozen lawyers has drafted 30-plus comment letters in the last six months.

“The law is passed, but we are still reasonably early in the process,” Mr. Lyons said. “There is still a lot to be written.”

New regulation has long been one of Washington’s unofficial job creation tools. After the enactment of the Foreign Corrupt Practices Act in the late 1970s, hundreds of lawyers and accountants were hired by companies to strengthen their internal controls. The Sarbanes-Oxley Act of 2002 became a boon for the Big Four accounting firms as public corporations were forced to tighten compliance in the wake of the Enron and WorldCom scandals.

Now, the Dodd-Frank Act is quickly becoming such a gold mine that even Wall Street bankers, never ones to undercharge, are complaining that the costs are running amok.   

“It’s basically lawyers, hired guns and money,” said the chief financial officer of a major Wall Street firm, who was not authorized to speak publicly on the matter. “Everyone has an angle.”

No one yet is tracking all the money being spent to deal with Dodd-Frank (which in itself could be an entrepreneurial venture), but a back-of-the-envelope calculation puts it in the billions of dollars.

And that’s not even counting the roughly $1.9 billion spent by companies lobbying on financial issues since the regulatory overhaul was first proposed in early 2009, according to the Center for Responsive Politics.

The bulk of the lobbying tab was spent in the two years before Dodd-Frank took effect. Now firms are spending similarly eye-popping sums to comply with or battle against the rules emerging from the law. They are turning to existing companies that have started dedicated teams like the one at Debevoise & Plimpton, as well as start-ups like the Invictus Consulting Group.

When Kamal Mustafa founded Invictus in early 2008, few banks underwent routine stress tests to assess their financial health. Now, the new law requires the nation’s largest banks to conduct annual stress tests, while regulators are leaning hard on smaller lenders to take similar measures. As a result, Invictus’s business — dispensing advice on how to properly administer those exams — has taken off.

“You can stress-test all you want, but somebody has to validate the results,” Mr. Mustafa said. “That’s a massive opportunity.”

Regulators from seven states — including California, New Jersey and Pennsylvania — have hired his firm, Mr. Mustafa said, and he is selectively signing up two to four new bank clients a month. Annual advisory fees start at $20,000 and can reach $100,000 or more.

With business booming, Mr. Mustafa said he planned to hire 40 to 50 former bankers in the coming months, almost quadrupling his current staff. And in May, Invictus established its first European outpost: a London office focused on overseas banks and regulators.

=============

 



Technology vendors, including I.B.M. and SunGard Consulting Services, are expecting huge windfalls from the new systems that banks will need to churn out vast amounts of data for regulators, or to lower the cost of processing a derivatives trade. Wall Street banks and asset managers are expected to spend more than $3.8 billion from this year to 2013 on technology to cope with all the new financial rules, according to the TowerGroup, a technology research firm.

Retail banking consultants are racking up new assignments advising banks on how to make up missing revenue from lost debit card fees, while governance advisers are helping firms assess whether executive pay packages will pass muster with shareholders, who are now entitled to a nonbinding say-on-pay vote.
Some law firms have even become small-scale publishing houses. Davis Polk & Wardwell, for example, is offering a $7,500-a-month subscription to a Web site that tracks the progress of every Dodd-Frank requirement. So far, more than 30 large financial companies have signed up.

As Congress started drafting the legislation in the spring of 2010, Davis Polk & Wardwell began compiling a spreadsheet to keep its lawyers updated on hundreds of regulations. Then, Gabriel D. Rosenberg, a young associate, proposed turning the firm’s database of legal summaries and rule-making deadlines into an interactive site — and spent a weekend building a prototype. 

By late July, clients started logging on to the “regulatory tracker” — and have steered more business to the firm as a result, said Randall D. Guynn, the head of Davis Polk’s financial institutions group. “There were a lot of new relationships because people want this,” he said.

Perhaps the biggest new business established by Dodd-Frank stems from the requirement that large financial institutions establish living wills, or emergency plans to wind themselves down in the event of a collapse. Firms are hiring small armies of outside advisers to develop the plans and handle the mountains of paperwork, according to people involved in the process.

As a result, global law firms like Clifford Chance and Sullivan & Cromwell; accounting firms like Deloitte and PricewaterhouseCoopers; and financial consultancies like Oliver Wyman and the Promontory Financial Group, are all working overtime to land assignments. Even restructuring boutiques, like Alvarez & Marsal and Houlihan Lokey, are elbowing their way in.   

Armed with a 60-slide visual presentation, Houlihan Lokey executives approached about a dozen Wall Street firms this spring with an offer to help draft their living wills.

Their sales pitch: we mapped out funeral plans for Lehman Brothers and the CIT Group during the throes of the crisis; we can help with your final arrangements, too.

“When we do a restructuring, we advise our clients and then execute on it,” said Michael McMahon, the head of Houlihan’s financial institutions group. “We are doing the exact same thing here — but we just have to document it.”

It is lucrative work. Barclays said earlier this summer that it has spent more than £30 million, or $48 million, on outside advisers and in-house staff to draft its living will. Each of the five biggest Wall Street banks and several other large financial companies could easily spend just as much.

What is more, most global firms will need to have several versions of their living wills to satisfy the requirements of the different national regulators. That should keep the billable hours coming.

Lawyers and consultants are salivating at the prospect of even more business opportunities. Some envision that many of the banks’ largest creditors will hire them to figure out how they might fare if the living wills were actually to take effect.

“They are going to ask, ‘What is going to happen to me?’ ” said Chip MacDonald, a lawyer at Jones Day. “We are only getting started.”

48849
Politics & Religion / Forgive and Forget?
« on: September 09, 2011, 05:24:24 AM »
Pasting Rachel's post on Power of Word here as well:
======================

9/11: Forgive and Forget?
by Rabbi Benjamin Blech
http://www.aish.com/ci/sept11/911_Forgive_and_Forget.html
We are not the ones who have the right to make that decision.

    God, I need your guidance. I continue to grieve for all the victims of 9/11 even after a decade has passed. My heart is filled with pain, and with anger at the terrorists responsible for the horrible deaths on that day of infamy in which 3,000 innocents perished. But I know that you teach us to forgive those who sin. In the Bible you often tell us that you are a God who is slow to anger, merciful and forgiving. We are supposed to imitate you and adopt Your behavior as guidelines for our own personal conduct.

    Does that really mean that no matter how difficult it is, I have to now tell myself to forgive all those who intentionally and with callous premeditation committed these unspeakable crimes? Am I guilty of failing my spiritual obligations if I'm not willing to respond to barbaric acts with love and forgiveness? God, how far does clemency go? In the name of religion, must I today be prepared to pardon even those who committed murder?

Forgiveness is a divine trait. It defines the goodness of God. Without it, human beings probably couldn't survive. Because God forgives, there's still hope for sinners. When we do wrong, God reassures us that He won't abandon us as a result of our transgressions. Divine forgiveness is the quality that most clearly proves God's love for us.

That is why the many passages in the Bible that affirm God's willingness to forgive our sins are so important. They comfort us and they fill us with confidence. We know none of us are perfect. If we would be judged solely on our actions, we would surely fall short. Thank God, the heavenly court isn't that strict. We can rest assured, as the prophet Isaiah told us, "Though your sins be as scarlet, they shall be as white as snow."

It makes perfect sense, then, for us to understand that if we expect God to forgive us for our failings, we have to be prepared to forgive others as well. What we need when we're being judged from above certainly deserves to be granted to those we are judging. We are guided by the profound words of Alexander Pope: "To err is human; to forgive, divine."

That all makes it seem like we have no choice in the matter. Forgiveness appears to be our only moral option. But the more we study the Bible, the more we recognize a peculiar paradox. The same God who preaches forgiveness very often doesn't forgive. Instead, He punishes sinners. He holds people responsible. He criticizes, He condemns, and afflicts those who committed crimes. Adam and Eve sinned, and they were kicked out of the Garden of Eden. Cain sinned and was condemned to become a wanderer over the face of the earth. The generation of Noah sinned and a flood destroyed them. The builders of the Tower of Babel sinned and their speech was turned into babble. In one story after another, from the Five Books of Moses through the works of the prophets, we read of retribution, of accountability, of divine punishment, and the withholding of automatic forgiveness.

Isn't this an innate contradiction in the Bible? The same book in which God identifies himself as merciful and forgiving, repeatedly shows us a God of justice who withholds undeserved pardons. There must be something we're missing. There can't be such an obvious contradiction in the Bible. And sure enough, just a little reflection makes clear why there are times when God forgives people for their sins, and why at other times He refuses.

The Price for Forgiveness

Heavenly pardon is predicated on a condition. Before God grants forgiveness, He asks us to acknowledge that we were wrong and renounce the sinful behavior.

God is willing to overlook the sins of the past for the sake of an altered future. He is ready to pardon the most terrible wrongs for the price of remorse, regret and the desire for a new beginning. But the one thing God's forgiveness is unwilling to do is to condone vicious crimes by simply accepting them. An unrepentant sinner mistakes God's mercy for permission to continue his ways. To forgive such a person isn't kindness; its cruelty to all those who'll be hurt by the evil that wasn't stopped before it could do more harm.

Yes, it was the same God who drowned the wicked generation of Noah and who saved the evil people of Ninveh. Those who were destroyed by the Flood were given plenty of warning. They watched Noah build his ark for many years. Noah told them what God planned to do if they didn't repent. But they didn't believe him – even when it started to rain and pour like never before. So of course people who didn't see the need to ask for forgiveness weren't forgiven.

But when Jonah told the residents of the city of Ninveh that they were doomed due to their evil behavior, they took the message to heart and committed themselves to a new way of life. The people who changed were immediately forgiven. God wasn't going to hold their past against them – because it was really a thing of the past.

Don't Forgive Them Unless

Forgiving people who don't personally atone for the sins makes a statement: Repentance isn't really necessary. Can anything be more immoral than encouraging evil by refraining from any condemnation of those who commit it?

The day after the Columbine High School massacre, a group of students announced that they forgave the killers. A short while after the Oklahoma bombing, some people put out a call to forgive Timothy McVeigh. And on September 12th, on several American campuses, colleges groups pleaded for forgiveness for the terrorists responsible for the horrific events of the previous day.

These weren't just misguided gestures of compassion. They were serious sins with potentially tragic consequences. Evil unchallenged is evil condoned. To forgive and forget, as Arthur Schopenhauer so well put it, "means to throw valuable experience out the window." And without the benefit of experience's lessons, we are almost certain to be doomed to repeat them.

The terrorists who piloted the planes into the Twin Towers never asked to be forgiven. They expressed not the slightest remorse as they went to their deaths together with their victims. Those who sent them, those who financed them, and those who applauded their mission never for a moment regretted what happened. Forgiving them is no less than granting license to murder thousands of more innocent people.

To speak of forgiveness as if it were the automatic entitlement of every criminal is to pervert a noble sentiment into a carte blanche for mayhem and chaos. We might as well open the doors of every jail and release all the thieves, rapists and murderers. Our wonderful act of compassion wouldn't take too long to be followed by the cries of the victims of our folly! To forgive those who remain unrepentant is to become an accomplice to future crimes.

What If A Nazi Asked For Forgiveness?

What if a Nazi asked for forgiveness at some later date? What if a brutal murderer realizes the enormity of his crimes and honestly regrets his past deeds? What if the plea for forgiveness is accompanied by sincere remorse? Can the crimes of the past be forgotten? Is a troubled conscience sufficient to secure automatic forgiveness?

This is not just a theoretical question. Something exactly like that happened toward the end of the Holocaust. And the man who had to decide what to do in such a situation, a concentration camp victim who had suffered indescribable mistreatment and torture, wrote a remarkable book about his experience.

Simon Wiesenthal was a prisoner of the Nazis, confined to slave labor in a German hospital. One day he was suddenly pulled away from his work and brought into a room where an SS soldier lay dying. The German officer, Karl, confessed to Wiesenthal that he had committed atrocious crimes. Although raised as a good Catholic and in his youth God-fearing, Karl had allowed himself to become a sadistic accomplice to Nazi ideology. Now that he knew his end was near and he would soon be facing his Maker, Karl was overcome by the enormity of his sins.

More than anything else, Karl knew that he needed atonement. He wanted to die with a clear conscience. So he asked that a Jew be brought to him. And from this Jew, Simon Wiesenthal, the killer asked for absolution.

 

Wiesenthal has been haunted by this scene his entire life. When it happened, he was in such shock that he didn't know how to respond. His emotions pulled him in different directions. Anger mixed with pity, hatred with compassion, and revulsion with mercy. His conclusion was to leave in utter silence. He didn't grant Karl the forgiveness the German desperately sought.

Years later, Wiesenthal shared the story with a number of prominent intellectuals, theologians and religious leaders. How would they have reacted? he asked them. In the light of religious teachings and ethical ideals, what should have been the proper response? Was there a more suitable reply than silence?

Wiesenthal collected the answers and had them published as a book entitled, The Sunflower. The range of responses offers a fascinating insight into different views on forgiveness. Some, like the British journalist Christopher Hollis, believe that the law of God is the law of love, no matter what the situation. We have an obligation to forgive our fellow human beings even when they have caused us the greatest harm. A remorseful murderer deserved compassion.

And Who Are You To Forgive?

One rabbi offered a different perspective. No one can forgive crimes not committed against him or her personally. What Karl sought could only come from his victims. It is preposterous to think that one solitary Jew can presume to speak for 6 million.

This rabbi had been invited to address a group of prominent business executives. Among them were some of the most important CEOs in the country. His lecture dealt with the Holocaust and its lessons for us. He stressed the importance of memory and the need to continue to bear witness to the crime of genocide.

When he finished, one of the very famous names in American corporate life angrily rebutted the essence of his talk. "I'm tired," he said," of hearing about the Holocaust. You claim that you're speaking in the name of morality. Why can't you demonstrate true morality by learning to forgive and forget?"

To a stunned audience, the rabbi replied by asking them for permission to tell a story about Rabbi Israel Kagan, commonly known as the Chafetz Chaim. In the history of the Jewish people, he explained, there has hardly ever been someone considered as saintly as the Chafetz Chaim. A Polish rabbi and scholar of the late 19th and early 20th century, he was universally revered not just for his piety but more importantly for his extreme concern for the feelings of his fellow man.

Rabbi Kagan was traveling on a train, immersed in a religious book he was studying. Alongside him sat three Jews anxious to while away the time by playing cards. The game required a fourth hand so they asked the unrecognized stranger to join them. Rabbi Kagan politely refused, explaining that he preferred to continue his reading. The frustrated card players refused to take no for an answer. They began to beat the poor Rabbi until they left him bleeding.

Hours later, the train pulled into the station. Hundreds of people swarmed the platform waiting to greet the great sage. Posters bore signs of Welcome to the Chafetz Chaim. As the rabbi, embarrassed by all the adulation, walked off the train with his bruises, the crowd lifted him up and carried him off on their shoulders. Watching with horror were the three Jews who had not long before accosted the simple Jew sitting in their cabin, now revealed as one of the spiritual giants of their generation. Profoundly ashamed and plagued by their guilt, they managed to make their way through the crowd and reached their unwilling card player partner.

With tears, they poured out their feelings of shame and remorse. How could they possibly have assaulted this great Rabbi? They begged for forgiveness. And incredibly enough, the rabbi said no. The man who spent his life preaching love now refused to extend it to people who harmed him and regretted their actions. It seemed incomprehensible. So the three Jews attributed it to a momentary lapse. Perhaps, they thought, it was just too soon for the rabbi to forgive them. He probably needed some time to get over the hurt. They would wait a while and ask again at a more propitious moment.

Several weeks passed and it was now close to Yom Kippur, the Day of Atonement. Even the simplest Jews knew that they had to gain forgiveness from their friends if they wanted to be pardoned by God. With trepidation, the wicked three wrangled an appointment and once again were able to speak to the Rabbi. They pleaded their case. Still the Rabbi said no. He would not forgive them.

The rabbi's son was present as this strange scene played itself out. Puzzled by his father's peculiar behavior, he couldn't contain himself. It was so unlike anything he had ever witnessed before. Why did his father suddenly act so cruelly? Why would he persist in tormenting people who only asked for a simple expression of forgiveness?

The son dared to ask. His father explained. "Do you really think I don't want to forgive these poor Jews before the High Holy days? If it were only in my power to do so, don't you know that I would have forgiven them when they stood before me at the railroad station? Of course I, Rabbi Kagan, forgive them for what they did to me. When they learned who I was, they were mortified and filled with shame for what they had done. But the man they beat up was the one they presumed to be a simple, unassuming poor person with no crowd of well-wishers waiting to greet him. He was the victim and only he is the one capable of granting them forgiveness. Let them go find that person. I am incapable of releasing them from their guilt."

Upon completing the story, the rabbi turned to the executive who suggested that it was time for us to move on after the Holocaust and to forgive and forget. "I would be more than happy to do so if I only could. But I was not the one who was sealed in the gas chambers to die a horrible death. I didn't have my child pulled from my breast and shot it in front of my eyes. I was not among the tortured, the beaten, the whipped, and the murdered. It is they and they alone who can offer forgiveness. Go and find those 6 million and ask them if they are prepared to forgive and forget."

A decade after 9/11 there are those who raise the question: Should we forgive those who murdered the thousands of innocents?

Perhaps the most appropriate response is simply this: We are not the ones who have the right to make that decision. Though 10 years have passed, we may not forgive and we dare not forget.

This article can also be read at: http://www.aish.com/ci/sept11/911_Forgive_and_Forget.html

48850
Politics & Religion / Re: The Cognitive Dissonance of His Glibness
« on: September 09, 2011, 05:11:24 AM »
The point about Bush being a political nullity from 2006 forward seems a fair one to me, thus muddying the meaning of the data from 2007-9 about the number of millionaires. 

What I notice in my life is that the low interest rate policies are in fact a war on savers.   Given the chaos in the markets I would dearly love to have a place of refuge for what I have left that did not automatically entail losses -- which is how I perceive the interface of current interest rates for savers and inflation plus taxes.  Even accepting the IMO dishonest official inflation rate taxes, interest rates for savers are now negative and we the taxpayers are subsidizing free money to the same bankers who gleefully exploited the Fannie Mae's and Freddie Mac's loan guarantees (loans at rates below t-bill rates). 

The class warfare of "tax the rich" is IMO both an absurdity (the top 3% already pay as much as everyone else so how can it be said that they are not paying their share?) and a deception (don't notice that we are bailing out the banks instead of allowing them to go bankrupt and be taken over by new owners).


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