30 November 2008

The Province of Québec


Quebec Government Forcing Evangelical Private Schools to Teach Sex Ed, Darwinism

Schools will be shut down if they do not comply with order, regardless of religious beliefs

by Gudrun Schultz

As originally posted on: LifeSiteNews.com
October 24, 2006


QUEBEC, Canada, October 24, 2006 (LifeSiteNews.com) - Private Christian schools in the province of Quebec must teach sex education and Darwin‘s theory of evolution, the province’s Ministry of Education has ordered, or they will be shut down.

The National Post reported today on a controversial decision by Quebec’s education ministry to force small Christian schools to comply with provincial curriculum standards for all subjects, regardless of whether there is a contradiction with the school’s religious beliefs.

A province-wide investigation followed complaints by an Outaouais school board that children at a small evangelical school near Saint-Andre-Avellin, Que. were not being taught the full provincial curriculum.

“Quebec children are legally required to follow the provincial curriculum…but these evangelical schools teach their own courses on creationism and sexuality that don’t follow the Quebec curriculum,” said Pierre Daoust, director-general of the Commission Scolaire au Coeur-des-Vallees in Thurso.

The 20 students attending the school operated by Eglise Evangelique, both in elementary and high school grades, are taught a “world view” that school administrators defend as essential, including both evolutionary and intelligent design theories.

“We offer a curriculum based on a Christian world view rather than humanistic world view,” Alan Buchanan, chairman of the school reorganization committee and a former Quebec public school teacher, told the Post.

“We want the children to understand what they’re going to meet in the outside world, and also what’s wrong with the theory [of evolution],” he said. “We also teach a better theory - that God created the universe and so on.”

The school teaches biology, but not sex education, Buchanan said. “You have the Christian world view that says sex should only be in the marriage and a public school system that teaches kids about sexuality. We believe students should be taught abstinence.”

Dr. Janet Epp Buckingham, director of law and public policy with the Evangelical Fellowship of Canada, told LifeSiteNews she is surprised the Quebec government would be “dogmatic” about an issue that is “clearly understood to be a religious issue.”

“Darwin’s theory of evolution is an issue about which many Christian parents are very concerned,“ said Dr. Epp Buckingham. “They don’t like the way [the theory] is taught in a very atheistic way. That’s one reason parents send their children to private Christian schools, so that they’re not subjected to public school teaching of Darwin’s theory of evolution as being not only fact, but in a way proof that God is not involved in creation.”

Dr. Epp Buckingham said parents’ right to educate their children in accordance with their religious beliefs is protected under the Canadian Charter of Rights and Freedoms.

In 1986 the Supreme Court ruled that although an Alberta pastor who was running a school out of the basement of his church did have to license the school, the provincial government had to provide reasonable accommodation for religious belief.

The court ruled that the province must “‘delicately and sensitively weigh the competing interests so as to respect as much as possible the religious convictions as guaranteed by the Charter,’” Dr. Epp Buckingham quoted.

“That makes it pretty clear that when the Quebec government is licensing schools they have to respect religious beliefs.”

“We have seen a number of religious freedom cases coming out of Quebec where the government hasn’t been respecting religious freedom. So we would hope they are aware that this is a Charter right, parents do have the right to educate their children in accordance to their religious beliefs, and that they will negotiate on that basis.”

Three unlicensed evangelical schools in the Outaouais have been identified as failing to meet Ministry standards, according to Ministry spokeswoman Marie-France Boulay, including 40 students at the Pentecostal Eglise Nouvelle Alliance in Gatineau, Quebec, and a school in Hull.

The province will negotiate with the schools for the next few weeks, said Ms. Boulay, to see if they can agree on a curriculum that will meet the provincial standards by including Darwin’s theory of evolution.

Dr. Epp Buckingham said until the negotiations are completed it won’t be clear if the Ministry is in violation of the Charter, but she added that at this point the situation is “certainly a squeeze on religious freedom.”

Read National Post coverage:
http://www.nationalpost.com/news/story.html?id=c5715990-a9eb-45f2-9c66-26d3ea3c56fa&k=4546

To express concerns to the Quebec Minister of Education, Monsieur Jean-Marc Fournier:

Ministère de l’Éducation, du Loisir et du Sport
1035, De La Chevrotière, 16e étage
Québec, Québec
G1R 5A5

Email:
ministre@mels.gouv.qc.ca

Québec Premier Jean Charest and the Charest Liberals


"Jean Charest has abandoned the Quebec health system" - Bernard Drainville

As originally posted: Parti Québécois
November 28, 2008


The health spokesman for the Parti Quebecois and candidate in the riding of Marie-Victorin, Bernard Drainville, denounced Liberal policies that go against the public interest in health.

"Since the beginning of the election campaign, Jean Charest has clearly indicated to us that his priority was not health, which we knew. Just as we knew he had not fulfilled his commitment to eliminate waiting in emergencies," said Bernard Drainville.

"Since the arrival of Jean Charest at the helm of government, emergencies have seen no real improvement," he said. "Worse, we see that the situation is worsening or stagnating. Rather than presenting a serious plan to reduce actual waiting times in emergency rooms, Jean Charest is a failure and has abandoned his commitments!"

The Parti Quebecois is proposing policies that will have a positive impact on reducing emergency waiting. Specifically, it proposes the development of 150 new family medicine groups and a massive investment in home care.

Abandonment of the public health system

According to the Parti Quebecois spokesman, since Philippe Couillard has paved the way for private health care, we often hear of new proposed private clinics, we see the disengagement of doctors from the public system. In addition, precious resources are leaving the public system for the private sector, which reduces the ability of the public system to provide quality services.

"Once in power, we will repeal, as the CSN and the FTQ request, the regulations under Bill 33 which promote the expansion of private clinics to perform some fifty surgeries. These regulations represent a real long-term threat to the public health system. We want to avoid the development of a private system similar to that of the Americans. Unlike the Liberals, we will not abandon the public system, but private development," said Bernard Drainville.

-----

Le porte-parole du Parti Québécois en matière de santé et candidat dans la circonscription de Marie-Victorin, Bernard Drainville, a dénoncé la série de positions libérales qui vont à l’encontre de l’intérêt public en santé.

« Depuis le début de la campagne électorale, Jean Charest nous a clairement indiqué que sa priorité n’était pas la santé, ça, on le savait. Tout comme on savait qu’il n’avait pas rempli son engagement d’éliminer l’attente dans les urgences », a expliqué Bernard Drainville.

« Depuis l’arrivée de Jean Charest à la tête du gouvernement, les urgences n’ont connu aucune véritable amélioration, a-t-il rappelé. Pire encore, on constate que la situation se détériore ou stagne. Plutôt que de présenter un plan sérieux pour diminuer réellement le temps d’attente dans les urgences, Jean Charest constate son échec et abandonne ses engagements ! »

Le Parti Québécois propose pour sa part de poser des gestes qui auront un impact positif sur la réduction de l’attente à l’urgence. Concrètement, il propose le développement de 150 nouveaux groupes de médecine familiale et un investissement massif en soins à domicile.

Abandon du système public de santé

Selon le porte-parole du Parti Québécois, depuis que Philippe Couillard a pavé la voie du privé en santé, on apprend fréquemment l’existence d’un nouveau projet de clinique privée, on constate le désengagement de médecins du réseau public. De plus, de précieuses ressources quittent le réseau public pour le secteur privé, ce qui réduit la capacité du réseau public à offrir des services de qualité.

« Une fois au pouvoir, nous abrogerons, tout comme la CSN et la FTQ le demandent, les règlements liés à la loi 33 qui favorisent le développement de cliniques privées pour pratiquer une cinquantaine de chirurgies. Ces règlements représentent à terme une menace réelle pour le système public de santé. Nous voulons éviter le développement d’un système privé semblable à celui des Américains. Contrairement aux libéraux, nous n’abandonnerons pas le système public, mais le développerons », a conclu Bernard Drainville.

29 November 2008

Canadian Prime Minister Stephen Harper and the Harper Conservatives


Harper gives in to political temptation

by James Travers

As originally posted on: TheStar.com
November 29, 2008


OTTAWA — From time to time, prime ministers are expected to resist political temptation. One of those times is when an economic monster has the country in its grip.

It's gross understatement to say Stephen Harper succumbed to base political instincts this week. A leader obsessed with destroying opponents couldn't forego a hazardous lunge at the jugular. One result is the needless, irresponsible creation of a domestic political crisis within an international financial calamity. Another is the frenzied recalibration of a status quo established in an election just six weeks ago.

Conservatives, under cover of finance minister Jim Flaherty's fanciful fiscal update, put this government at risk by announcing an end to public funding essential to the opposition. That risk was reduced, not removed, when the Prime Minister blinked yesterday by pulling the funding proposal from the confidence motion and delaying the vote.

More than a provocation with reflex popular appeal, the funding cut is an existential threat to political parties and, predictably, is producing an equally menacing response. With no safe room for flight, the choice for the Liberals, NDP and Bloc is to fight. To achieve peace in the absence of trust, the government would have to rewrite its economic plan, the high battleground the opposition has chosen, and commit to excising the funding proposal from its winter budget.

Whatever the debatable merits of distancing parties from taxpayers, this isn't the time or way to change payments peripheral to dangers facing Canadians. It won't save a single job, meaningfully reduce the ruling party's runaway spending or somehow make the democratic exercise cost free. If this is a Conservative priority, not just partisan pettiness, transparency demands first an election promise followed by a considered plan guarding against backsliding to the bad old days of bagman donations.

This is not politics as usual, even if the cynicism is familiar. What's normal here is for government to disguise dirty dealings with good works. By provoking a confrontation, Harper achieves the reverse. Partisan opportunism is in the shop window while hidden in the backroom is a defensible, even prudent, response to financial conditions far beyond Ottawa's control.

Canada's reality is manoeuvring room limited by the policies of a new U.S. administration that doesn't take office until January. Wait-and-see is one reasonable approach, even if a stirring commitment to stimulus would have been wise as well as consistent with the Prime Minister's offshore musings. Clearly articulated, that could have secured the Commons confidence that determines the life of minorities and that Harper must earn.

Instead, the Prime Minister made a calculation that could eclipse Joe Clark's 1979 Christmas gift of political resurrection for Pierre Trudeau. Opposition parties must now decide how best to turn a near-death experience into life in power.

That's particularly problematic for Liberals now in the process of replacing Stéphane Dion and could lead to the caucus selection of a new leader. Can you say Prime Minister Michael Ignatieff?

Ultimately, Governor General Michaëlle Jean would have to be convinced a coalition could provide stability in the midst of global chaos. Contrary to Conservative claims, that would not be an affront to democracy. After winning just over 37 per cent of the popular vote, Conservatives have the most seats, not a divine right to govern or skew rules their way.

Conservatives know politicians are easy targets for taxpayers inclined to see public funding as a benefit, not the lifeblood of parties robust enough to hold governments accountable and offer voters alternatives. In failing to resist that temptation, the Prime Minister recklessly put his party and country at risk.

James Travers' column appears Tuesday, Thursday and Saturday.

"The Ruling Class"


The Bailout Intensifies

by Shamus Cooke

As originally posted on: Novakeo.com
November 29, 2008


Even through its muffled language, it was obvious that the typically non-alarmist New York Times was having trouble digesting the latest government announcements. On 11/26, the Treasury and Fed revealed it would spend 800 billion more tax dollars towards new “lending” programs. That day, the Times concluded that the government was “sending a message that they will print as much money as needed to revive the crippled banking system.”(!)

Later in the article we learn that “the government has assumed at least $7 trillion (!!) in direct and indirect financial obligations in the form of Wall Street bailouts, emergency lending and government guarantees on bank deposits, inter-bank loans and home mortgages.” The term “blank check” doesn’t begin to describe the vast amounts being tossed about.

Other sources, such as Bloomburg News, are estimating 8.5 trillion (about $24,000 per person).

At least 5 trillion dollars of this money comes from the Federal Reserve, which, because it is an “independent” entity, doesn’t need congressional approval to give mountains of taxpayer money to broken banks.

The Times continues: “The long-term risks are enormous and difficult to estimate. They begin with the danger of a new surge of inflation, at least after the economy comes out of its downturn. But they also include the hazards to taxpayers of taking responsibility for trillions of dollars in assets that may end up plunging in value. And they also raise unanswered questions about how the government will untangle itself from its new obligations, if it can indeed do so”.

The Times, along with others witnessing the money printing fiasco, are worried that in tackling the economic crisis, they’re creating the conditions for an even larger one. This is especially true because the current crisis is the result of similar practices applied to the last recession, which created a gigantic financial bubble that’s still deflating…fast! The tactic now is to insert as much money as needed to keep the sinking ship afloat.

But big problems are emerging: Every time they check the status of the economy, matters are worse— requiring ever greater money for patchwork; and money printing has its limits. After awhile, the dollar’s value will shrink (it’s already begun), creating conditions that could lead to a devastating inflation.

Obama too is drunk by the money printing orgy, and announced on 11/22 an infrastructure and energy plan that could cost as much as 700 billion dollars. Obama bragged that his new plan will create 2.5 million jobs, which, by the time it’s actually implemented, will constitute a drop in the bucket.

But even these 2.5 million jobs will be the byproduct of the energy and infrastructure plan, not the intention. Large sections of the corporate elite have been calling for serious government measures to ensure the business class has secure, cheap access to energy, and usable roads and bridges to transport their goods. Obama’s plan was essentially choreographed by the corporate coalition “Council on Competitiveness”— a large group of CEO’s, industrialists, university heads, and a couple of labor leaders (traitors who have a strong belief in trickle-down economics).

This group realizes that US corporations are falling behind in certain areas— energy & infrastructure— that they desperately need to stay globally competitive. The obvious problem is that one cannot maintain a competitive nation with worthless dollars.

Obama knows this and is clear that, while he agrees with the flood of hot-off-the-press dollars for bank bailouts and bridges, vast cuts in spending are required to compensate. In one of his many recent press conferences, Obama said he will go through the federal budget “line by line” to massively cut spending.

And knowing that the poor will be the first affected, Obama quickly gave an example of millionaire “farm subsidies” as a program he believes to be unnecessary. It is unlikely that Obama will target the corporate elite in his future cost-cutting mania, especially since he has approved of the trillions of taxpayer money directly subsidizing big business. Much more likely is that Obama will target the “big three” of social programs:

Social Security, Medicaid, and Medicare. Education is surely to be attacked as well. Not only this, but taxes will have to be raised; the rich will use their political puppets to continue to shift this burden onto the poor.

These predictions can be considered safe for three reasons:

1) Obama has already said that he will not cut a penny from the gargantuan military budget (he’s hinted that he will raise it).

2) The scope of the national debt— realistically over 10 trillion dollars and growing— is such that drastic measures need to be taken.

3) Lastly, most government programs have already been ransacked, there’s not much left to be “trimmed”— the circumstances demand a gouging.

Protecting the social gains of the past generation will require the working class to mobilize itself in a way not seen since the 30’s. If we are to be successful, a broad coalition is needed, one that cuts across racial, gender, sexuality, documented citizen and undocumented, organized and unorganized, working and unemployed.

Make no mistake, the ruling class has— by its actions— declared class war, and will continue to bolster their broken system with our tax dollars unless we demand it be stopped. No more bailouts! Hands off Social Security, healthcare, and education! Tax the rich!


Shamus Cooke is a guest columnist for Novakeo.com

The Harper Conservatives


Tories reverse decision to end public subsidies

by Joan Bryden

THE CANADIAN PRESS
November 29, 2008


OTTAWA – After 24 hours of peering into a yawning political abyss, the Harper government stepped back from the brink Saturday, dropping a plan to kill public subsidies for political parties.

"When it comes to the funding and subsidies that political parties get, we just don't think it's worth getting into an election on that issue," Transport Minister John Baird said in an interview.

"We won't be proceeding."

There were hints there could be further retreats in store to placate incensed opposition parties.

A Conservative official said "the government will put more water into their wine" when Finance Minister Jim Flaherty makes an announcement in Toronto on Sunday.

But the official said the announcement will not include any new economic stimulus that the opposition parties are demanding.

This government change of heart came only a day after the prime minister's office sent an email to Tory MPs calling for an all-out media blitz to sway public opinion and asserting "we are nonetheless prepared to return to the polls over this issue."

The Liberal, NDP and Bloc Quebecois parties have been plotting to replace the Tories with a coalition government since Thursday, when Flaherty issued the annual fall fiscal update.

They were enraged by his failure to include any measures to stimulate the faltering economy and apoplectic about a surprise move to end public subsidies for parties, which would financially cripple every party except the Tories.

A game of political chicken ensued, with Harper adamantly refusing to back down from the fiscal update and angrily denouncing opposition machinations to bring in a coalition replacement government as illegitimate and undemocratic. His opponents were equally determined to scuttle the Tory regime just six weeks after the Oct. 14 federal election.

Despite Saturday's politically embarrassing climb down on the subsidy issue, the three opposition parties continued negotiating the details of a possible coalition and dismissed the reversal as meaningless.

"The prime minister is only focused on politics and political parties and he's not listening to Canadians who are saying loud and clear: 'It's the economy, stupid."' said Liberal finance critic Scott Brison.

"Until we see a real economic plan to help Canadians protect their savings and jobs during these tough times, we can't support a prime minister we don't trust."

New Democrat spokesman Brad Lavigne said: "This changes nothing because for the New Democrats, it was never about public financing."

Indeed, there were signals from the opposition that the matter may have passed a point of no return and it could be too late for the government to avert defeat, no matter what it offers.

"I wouldn't say the train has left the station but it's gathering speed," said John McCallum, chair of a Liberal economic advisory committee.

"At this point, it's difficult to believe anything this government says. I mean, it's clear that they are desperate so no matter what they say, how can we believe it, given their past record?"

Before the government reversal, Brison said Harper poisoned the atmosphere in Parliament.

"I see virtually no possibility of Stephen Harper being able to earn back the trust of this Parliament."

The opposition has downplayed the subsidy issue, even though their loss would virtually bankrupt the opposition parties, who rely heavily on the money to finance political staff and operations.

Harper staved off an immediate showdown Friday by pushing back two critical votes until Dec. 8, but the Liberals and NDP were unfazed.

The two parties were planning a coalition which would put New Democrats in the cabinet and have Commons support from the Bloc Quebecois, although the separatists would have no official role in the new government.

The plan drew Tory scorn. A package of suggested talking points e-mailed to MPs from the prime minister's office said the Liberals drew their lowest vote share since Confederation in the last election and have no mandate to govern.

"They don't have a mandate to lead a coalition with the NDP and they certainly don't have a mandate for a Liberal-NDP coalition backed by separatists who want to destroy the country," the message said.

Reprieved for a week from a potential defeat in the Commons, Tory MPs hit the airwaves on Saturday and fanned out in their ridings, armed with talking points issued by the prime minister's office.

They are getting out the double message that Prime Minister Stephen Harper is dedicated to rescuing the economy while the opposition is bent on backroom machinations to seize power.

Pierre Poilievre, Harper's parliamentary secretary, told CBC Newsworld the opposition parties are focused on power while Harper is looking at the economy.

"We have a prime minister fixated on the economy and a group of Liberals, separatists and socialists fixated on taking control." he said.

Liberal and NDP officials continued dickering Saturday about a possible coalition that would be prepared to form a government if Harper is defeated a week from Monday.

The NDP caucus arranged a mid-morning teleconference on Saturday to discuss the situation.

Liberal Leader Stephane Dion and NDP Leader Jack Layton spoke by phone Friday night.

They and the Bloc Quebecois say they will vote Harper out because of his lacklustre economic package brought down earlier this week by Finance Minister Jim Flaherty.

They would then offer their coalition government – and a promise of Bloc support if not actual participation – to Gov. Gen. Michaelle Jean.

Jean would then have to decide whether to give the coalition a chance to govern or dissolve Parliament and send the country into a new election just two months after the last.

Constitutional experts say precedents suggest that Jean won't grant a dissolution.

Harper has delayed the critical vote for a week, but is refusing to back down from his economic plans.

Poilievre said the opposition is thinking only of its own money.

"Isn't it interesting that the opposition parties say they can't manage their own finances and that's why they need to take over the government and run the nation's finances?"

However, both Liberal and NDP officials claimed their parties have been deluged with supportive calls and emails from people outraged that the government is indulging in partisan gamesmanship while the economy burns.

Moreover, they attacked Harper for decrying their efforts to form a coalition when he himself participated in a similar venture in 2004 to replace the minority Liberal government of Paul Martin.

"He has proven to be the patron saint of hypocrisy," Brison, the Liberal finance critic, said in an interview.

"Canadians can't trust a word their prime minister says. He's proven he will say anything and do anything to hold on to power."

Brison said Harper should have used the global economic crisis to try to unite Canadians and get parliamentarians working together on solutions.

Both Brison and NDP House Leader Libby Davies denied that the coalition talks were more about saving their parties' share of public financing. They insisted the real issue is the failure to stimulate the economy or offer aid to the struggling auto, manufacturing and forestry sectors.

"The government failed Canadians," Davies said. "They did not bring forth the kind of significant economic stimulus that we've seen in all other G7 countries."

She said the country is at a critical point:

"We're at this incredibly important moment in the country. Mr. Harper had a chance last week, Mr. Flaherty had a chance on Thursday to really show that they could rise above their pettiness and put the public interest first.

"They really blew that."

The United States National Republican Party and United States Senator / Past Presidential Election Candidate John McCain


Why McCain and the Republicans Went Down

by Gary Benoit

As originally posted: The New American
November 5, 2008


During the Republican presidential debate in Durham, New Hampshire, in September 2007, Congressman Ron Paul warned that "we've dug a hole for ourselves and we've dug a hole for our party. We're losing elections and we're going down next year if we don't change it."

Paul's warning was in the context of the Bush administration's interventionist foreign policy, particularly the war in Iraq. Indeed, the year before, the Democrats captured majority control of both the House and Senate based largely on the growing public opposition to the Iraq War, which was associated not just with President Bush but with Republicans in general.

The economy is now far and away the most pressing issue on the minds of the American people, and Ron Paul warned too about the economic meltdown that would occur if we continued borrowing money for programs we could not afford — very much including the war in Iraq — and creating money out of thin air to finance the borrowing.

With a Republican president in the White House, the faltering economy, like the war in Iraq, was also associated in the public mind with Republican administration. And that association contributed to the defeat of John McCain by Barack Obama. It also contributed to the strengthening of Democratic control of both houses of Congress. Of course, Senator McCain and his fellow Republicans tried to distance themselves from the increasingly unpopular George W. Bush, who was nowhere to be found on the campaign trail.

During the closing weeks of the campaign, McCain tried to show that Obama would harm the economic well being of Americans by repeatedly referring to a telling comment Obama had made to the now-famous "Joe the Plumber." "When you spread the wealth around, it's good for everybody," Obama had told Joe (the plumber) Wurzelbacher while campaigning in Wurzelbacher's neighborhood. By repeatedly citing this statement, McCain hoped to cast Obama as a socialist who would, unlike McCain, tax and tax, spend and spend.

In truth, McCain, like Obama, is a socialist. Both McCain and Obama voted for the bank bailout bill, and both lobbied other lawmakers to vote for it as well. The bill authorized the government to spend up to $700 billion (not exactly pocket change, even in Washington D.C.) to purchase mortgage-related securities as well as stock in major financial institutions, partially nationalizing them. This bill represented a huge transfer of money from the American people to the wealthy.

By lobbying and voting for that bill, Senator McCain denied himself an opportunity to clearly differentiate his economic agenda with that of Obama's, based on an actual policy position not just campaign rhetoric. But not only did McCain join Obama in supporting the bailout bill, he actually sounded even more socialistic than Obama by offering his "Homeownership Resurgence Plan," wherein the government would (in the words of McCain's campaign website) "purchase mortgages directly from homeowners and mortgage servicers, and replace them with manageable, fixed-rate mortgages," with the government "relieving homeowners of 'negative equity' in some homes." And in general, McCain (and many of his fellow Republicans for that matter) have joined Democrats in supporting big-spending, socialistic programs, making his rhetorical opposition to "spread[ing] the wealth around" sound empty.

Therein lies the problem: though McCain and Obama package their messages to appeal to different constituencies, when the packaging is stripped away the core messages of the two supposedly disparate candidates are actually very much the same.

Moreover, the similarity in the core messages of Obama and McCain apply not only to economic policy but to foreign policy as well. Barack Obama may say he opposes the war in Iraq, but he chose the pro-Iraq War Senator Joe Biden for his running-mate, he supports sending more troops to Afghanistan (effectively moving the Iraq War to a different theater), and he supports NATO, which commits us to treating an attack on any NATO country as if it's an attack on ourselves.

But Obama successfully packaged himself as the "candidate of change," while McCain failed to convincingly disassociate himself from the failed policies of the past, particularly policies associated with the unpopular Republican president. Consequently, the Democrats have now added control of the White House to their (strengthened) control of both houses of Congress.

The Republicans have gone down this election year, just as Ron Paul warned. But if the Republicans — including in particular the Republican standard-bearer in this year's presidential race — had backed away from the socialism and foreign interventionism that had dug a hole for the party, and had instead repositioned the Republican Party as the party of limited government and noninterventionism once again, the election results could have been very different.

27 November 2008

United States Representative / Congressional Leader Charles Rangel (a/k/a Charlie Rangel)


So Who Picked Up the Tab?

As originally reported by: The New York Times
November 26, 2008


More questions are being raised about the doubtful ethics of Representative Charles Rangel of New York, the chairman of the tax-writing House Ways and Means Committee. The latest sniff of scandal — a breakfast meeting with a donor seeking tax protection — provides more grist for the House ethics inquiry that’s supposed to be under way into Mr. Rangel’s tangled affairs.

According to a report in The Times on Tuesday, Mr. Rangel breakfasted last year with a major donor to his pet legacy: a school of public service at City College of New York that will bear Mr. Rangel’s name. The donor, an oil-drilling executive, says he then escorted the chairman across the dining room of the Carlyle Hotel to meet his company’s waiting lobbyist — a special pleader intent on protecting an off-shore tax loophole.

As events progressed, the loophole was protected, the donor pledged $1 million to the Rangel school and the principals deny that there was any quid pro quo.

Mr. Rangel first called for an ethics inquiry after disclosures about his cut-rate rents in rent-stabilized apartments in Harlem. Then there was the news that Mr. Rangel owned a Dominican villa on which he failed to disclose rental income or pay federal taxes. Mr. Rangel plainly violated congressional regulations when he used his official letterhead to solicit support for his academic center from scores of business and foundation leaders. Throughout, Mr. Rangel has proclaimed his innocence.

Mr. Rangel also says he has no recollection of the lobbyist breakfast encounter, while company officials say it involved only a few minutes and ended with Mr. Rangel restating his opposition to closing the loophole.

Nevermind that the congressman had earlier denounced the boondoggle for costing taxpayers tens of millions annually. He maintains he since concluded that a change would amount to an unfair retroactive tax increase. The Times’s David Kocieniewski reports that congressional colleagues were shocked by the reversal.

We hope that Speaker Nancy Pelosi is shocked into action. She should insist that the ethics investigation move forward — and that Mr. Rangel relinquish his chairmanship during the inquiry. If Mr. Rangel continues to resist, the speaker should permanently reassign the gavel. In a deep economic crisis, the committee, and the country, cannot afford the distraction.

Canadian Federal Member of Parliament / Finance Minister Jim Flaherty


Flaherty deserves to be fired as finance minister

The following letter was originally published in The Cornwall Standard Freeholder on November 19, 2008.


If Finance Minister Jim Flaherty worked in the private sector he would have been fired long ago.

First he blew away a $12 billion surplus left by the previous government which always built surpluses to take care of a rainy day. The rainy day is here, big time, and we are about to go into deficit, if not there already. Prior to the election Mr. Flaherty guaranteed there would be no deficit during his watch. He and Prime Minister Harper admitted, after the fact and under pressure, that his government knew there were major economic problems in the world but our economy was in such good shape and our banks were so solid, Canada would be pretty well insulated against many of the problems. Now they're admitting, not that they were wrong, but that we probably will be in deficit shortly and they have now joined the bank rescue parade, twice - but it's not their fault

When Mr. Flaherty listened to bad advice and killed the income trust market, for no proven reason, he started an avalanche of unforeseen consequences. Trust values plunged, building up tremendous capital gain losses that individuals, companies and funds will use to write off against gains resulting in a huge future tax loss for the government in the years to come. More tax losses will be added when retirees take less money from their RRIFs due to trust value loss. Many trusts were bought out by foreigners and pension funds, neither of whom pays tax.

BCE will soon be off the market, bought out by the teachers pension fund. The billions of tax dollars lost could, right now, be providing a surplus cushion of at least $3 billion and more. The future lost billions are in the double digit. Now we hear that our Canada Pension fund has lost billions. Would you keep this man on in your company as your controller or treasurer?

Vernon Holt, Cornwall

26 November 2008

Manitoba Lawyer Gisele Champagne


Defence lawyer grilled over adult sentencing

Agreed to procedure for mentally limited boy

by James Turner

As originally published: Winnipeg Free Press
November 22, 2008


A Manitoba judge is questioning why the lawyer of a 15-year-old boy with limited mental capacity gave the green light to have him treated in the courts as an adult - a move that could send him to federal prison for up to three years.

The consent agreement is almost unheard- of in youth courts and Lance Pavel Beardy, 15, is believed to be the youngest offender in Manitoba history to lose the protected identity status granted to young people under the Youth Criminal Justice Act.

While provincial court Judge Ron Meyers could do nothing to stop it, he raised serious questions Friday about the tactics of the boy's lawyer.

"Why did you agree to an adult sentence?," he pointedly asked Gisele Champagne after she submitted her arguments asking that Beardy's penalty be concurrent with a sentence he's already serving.

"You've put the cart before the horse. The first thing that should have been done is to see whether or not an adult sentence should have been agreed upon," Meyers stormed.

Champagne said that Beardy had the consequences carefully explained to him and he made the choice.

She said her client was like a caged animal with room only to pace back and forth while locked in a maximum-security cell in Portage la Prairie.

Meyers decided to hand Beardy a 90-day adult penalty for striking - but not injuring - an RCMP officer with a piece of broken glass during "an uprising" involving five young offenders at the Agassiz Youth Centre on Sept. 30.

It's also possible - but not probable - that he will have to spend the next three years in Stony Mountain prison now that his past sentence also gets converted to adult time.

Beardy had recently pleaded guilty to assaulting the RCMP sergeant.

Crown attorney Brian Sharpe was seeking "at least a year" as a penalty for the youth in hopes of deterring others from thinking there's little penalty for trying to hurt peace officers.

In arguing that the teen should receive a sentence that added no extra time to his penalty, Champagne presented reports detailing how Beardy came from a dysfunctional family that led him towards gang life, and that his "impulsive behaviour" is largely due to having an intelligence quotient lower than 70. An IQ of about 90-110 is considered normal.

Beardy's next court hearing is Dec. 2. A report to determine if he should be moved to an adult jail to serve out his sentence is forthcoming.

james.turner@freepress.mb.ca

(Outgoing) United States President George W. Bush


Time for Him to Go

by Gail Collins

As originally published in: The New York Times
November 22, 2008


Thanksgiving is next week, and President Bush could make it a really special holiday by resigning.

Seriously. We have an economy that’s crashing and a vacuum at the top. Bush — who is currently on a trip to Peru to meet with Asian leaders who no longer care what he thinks — hasn’t got the clout, or possibly even the energy, to do anything useful. His most recent contribution to resolving the fiscal crisis was lecturing representatives of the world’s most important economies on the glories of free-market capitalism.

Putting Barack Obama in charge immediately isn’t impossible. Dick Cheney, obviously, would have to quit as well as Bush. In fact, just to be on the safe side, the vice president ought to turn in his resignation first. (We’re desperate, but not crazy.) Then House Speaker Nancy Pelosi would become president until Jan. 20. Obviously, she’d defer to her party’s incoming chief executive, and Barack Obama could begin governing.

As a bonus, the Pelosi presidency would put a woman in the White House this year after all. On the downside, a few right-wing talk-show hosts might succumb to apoplexy. That would, of course, be terrible, but I’m afraid we might have to take the risk in the name of a greater good.

Can I see a show of hands? How many people want George W. out and Barack in?

A great many Americans have been counting the days all year on their 2008 George W. Bush Out of Office Countdown calendars. I know a lot of this has been going on because so many people congratulated me when the Feb. 1 Bush quote turned out to be from one of my old columns. (“I think we need not only to eliminate the tollbooth from the middle class, I think we should knock down the tollbooth.”)

This was not nearly as good as Feb. 5 (“We ought to make the pie higher”) or Feb. 21 (“I understand small business growth. I was one.”) But we do what we can.

In the past, presidents have not taken well to suggestions that they hand over the reins before the last possible minute. Senator J. William Fulbright suggested a plan along those lines when Harry Truman was coming to the end of a term in a state of deep unpopularity, and Truman called him “Halfbright” for the rest of his life. Bush might not love the idea of quitting before he has a chance to light the Christmas tree or commute the execution of one last presidential turkey. After all, he still has a couple more trips planned. And last-minute regulations to issue. (So many national parks to despoil, so many endangered species to exterminate ... .) And then there’s all the packing.

On the other hand, he might want to consider his legacy, such as it is.

In happier days, Bush may have nurtured hopes of making it into the list of America’s mediocre presidents, but somewhere between Iraq and Katrina, that goal became a mountain too high. However, he might still have a chance to avoid the absolute bottom of the barrel, a spot currently occupied by James Buchanan, at least in my opinion. Buchanan nailed down The Worst President title in the days between Abraham Lincoln’s election and inauguration, when the Southern states began seceding and Buchanan, after a little flailing about, did absolutely nothing. “Doing nothing is almost the worst thing a president can do,” said the historian Michael Beschloss.

If Bush gives up doing nothing by giving up his job, it’s possible that someday history might elevate him to the ranks of the below average. Better than Franklin Pierce! Smarter than Warren Harding! And healthier than William Henry Harrison!

The person who would like this plan least probably would be Barack Obama. Who would want to be saddled with the auto industry’s problems ahead of schedule? The heads of America’s great carmaking corporations are so dim that they couldn’t even survive hearings run by members of Congress who actually wanted to help them. Really, when somebody asks you exactly how much money you need, the answer should not be something along the line of “a whole bunch.”

An instantaneous takeover would also ruin the Obama team’s plan to have the tidiest, best-organized presidential transition in history. Cutting it short and leaping into governing would turn their measured march toward power into a mad scramble. A lot of their Cabinet picks are still working on those 62-page questionnaires.

But while there’s been no drama with Obama, we’ve been living a Technicolor version of “The Perils of Pauline.” Detroit is tied to the railroad tracks and the train is coming! California’s state government is falling into the sea! The way we’re going now, by the time the inauguration rolls around, unemployment will be at 10 percent and the Dow will be at 10.

Time for a change.

25 November 2008

The Harper Conservatives and "the Looters"


'Make looters pay' to save pensions

by Ken Georgetti

As originally published in: The Hamilton Spectator
October 31, 2008


Like most Canadians, my eyes have been glued to the never-ending stream of financial bad news. The numbers have been staggering.

Markets have plunged by 40 per cent in recent months, and our pensions have taken a hammering. Canadian pensions and RRSPs have lost almost $100 billion since March 2008, while U.S. pensions lost $100 billion in the month of October alone.

Canadians expect their government to act and protect their hard-earned pension benefits. Yet all we've seen so far is massive taxpayer-funded bailouts so bankers can lend to each other, and continue paying out handsome dividends to themselves and other big investors.

The money spent on banker bailouts worldwide ($3 trillion US) amounts to $582.25 in Canadian dollars for every man, woman and child on the planet. Canada's share of the bailout already exceeds what Ontario will spend on health care, post-secondary education, and training in 2007-08 ($45 billion, with more to come).

The hypocrisy here is astounding. For years now, working families have struggled without any help from their government as currency speculation drove up the Canadian dollar, and drove out more than 400,000 good-paying manufacturing and forestry sector jobs.

Yet Prime Minister Stephen Harper and Finance Minister Jim Flaherty told us to adapt to "globalization." They told us that they believed it was better to have a "market-led" solution over government-led solutions.

Apparently there's a different standard for Bay Street speculators, and their red-suspendered friends in New York, London, Frankfurt and Tokyo. Their financial hangovers get soothed by swift government intervention.

It's time for a different approach to the financial crisis, similar to the approach we take to protect the environment. We need a "polluters pay" approach to ensure hard-working Canadians are not the victims of financial speculators and their pensions don't become collateral damage. Those who caused this problem need to pay to clean it up.

One concrete policy measure offers a step forward: the federal government should create a financial transfer tax, a so-called "Tobin Tax" (named after the Nobel Prize-winning economist). The tax would work in two important ways. It would create a disincentive for short-term speculators and generate revenue to fund a national system of pension benefit insurance, the same as what already exists for bank deposits.

In 2007, a tiny one-tenth of one per cent (0.1 per cent) financial transfer tax would have raised $14 billion from the Toronto Stock Exchange alone. That money could have been put toward protecting the first $60,000 in annual pension and RRSP benefits. It's a minor tax rate, but it goes a long way in the right direction.

Cynics have typically alleged the Tobin Tax is unworkable.

Finance whiz kids could easily subvert the tax, they say, so capital itself would shift to less regulated jurisdictions - the world's tax havens. Countries with large banking sectors, they argue, would never co-operate on capital market reform.

Recent events have put the lie to these assertions. Central banks have collaborated on unprecedented capital market reform, though clearly the prescription isn't working. They have the tools to track and tax unwanted market speculation, but simply choose not to do so.

Tobin Taxes of at least 0.1 per cent have already been introduced in Australia, Austria, Finland, Germany, Malaysia and Singapore. The newly created Bank of the South (including most South American nations) has supported a Tobin Tax. In 1999, on the heels of the Asian market meltdown, a majority of Canadian parliamentarians called for a Tobin Tax.

On Nov. 15, the G-20 countries will meet to discuss how to address the financial crisis. Instead of creating more bailouts for bankers, they should embrace ideas that make genuine contributions to the real economy and bring transparency and regulation to the financial industry.

It's time for the federal government to act with the same urgency for working people, to protect their pensions and retirement savings, as it has for the bankers. For that to happen, it needs to enact a Tobin Tax, and make the looters pay.

Ken Georgetti is president of the Canadian Labour Congress, the largest union federation in Canada with 3.2 million members.

24 November 2008

The United States of America (USA) and Citigroup, Inc. (d/b/a Citi)


Citigroup Scores

by Robert Reich

As originally posted on: Robert Reich's Blog
November 23, 2008


If you had any doubt at all about the primacy of Wall Street over Main Street; the utter lack of transparency behind the biggest government giveaway in history to financial executives, and their shareholders, directors, and creditors; and the intimate connections the lie between Administrations - both Republican and Democratic - and the heavyweights on Wall Street, your doubts should be laid to rest. Today it was decided the government will guarantee more than $300 billion of troubled mortgages and other assets of Citigroup under a federal plan to stabilize the lender after its stock fell 60 percent last week. The company will also will get a $20 billion cash infusion from the Treasury Department, adding to the $25 billion the bank received last month under the Troubled Asset Relief Program.

This is not a particularly good deal for American taxpayers, but it is a marvelous deal for Citi. In return for all the cash and guarantees they are giving away, taxpayers will get only $27 billion of preferred shares paying an 8 percent dividend. No other strings are attached. The senior executives of Citi, including those who have served at the highest levels in the US government, have done their jobs exceedingly well. The American public, including the media, have not the slightest clue what just happened.

Meanwhile, more than a million workers in the automobile industry, along with six million homeowners in danger of losing their homes, and a millions of Americans who depend on small businesses and retailers for paychecks, are getting nothing at all.

Former United States Attorney General Alberto Gonzales and (Outgoing) United States Vice President Dick Cheney


Vice President & Former Attorney General Indicted

As originally reported: CMD Media
November 19, 2008


HOUSTON - A grand jury in South Texas indicted Vice President Dick Cheney and former Attorney General Alberto Gonzales on for “organized criminal activity” related to alleged abuse of inmates in private prisons.

The grand jury in Willacy County, in the Rio Grande Valley near the U.S.-Mexico border, said Cheney is “profiteering from depriving human beings of their liberty,” according to the indictment.

The indictment cites a “money trail” of Cheney’s ownership in prison-related enterprises including the Vanguard Group, which owns an interest in private prisons in south Texas.

Gonzales used his position as the nation’s top law enforcement official to “stop the investigations as to the wrong doings” into assaults in county prisons, the indictment said.

Cheney’s office declined comment. The indictment, overseen by county District Attorney Juan Guerra, cites the case of Gregorio De La Rosa, who died on April 26, 2001, inside a private prison in Willacy County.

The grand jury wrote it made its decision “with great sadness,” but said they had no other choice but to indict Cheney and Gonzales “because we love our country.”

Texas is the home state of U.S. President George W. Bush.

Bush and his Republican administration, which first took office in January 2001, leave the White House on Jan. 20 after the November presidential elections won by Democrat Barack Obama. Gonzales was attorney general from 2005 to 2007.

23 November 2008

The Canadian Broadcasting Corporation (CBC) and CBC Executive Vice-President of French Services Sylvain Lafrance


CBC exec racks up big tab

Travel, meals and charity events total nearly $80G

by Peter Zimonjic

As originally published in: The Ottawa Sun
November 18, 2008


The executive vice-president for French services at the taxpayer-funded CBC is claiming almost $80,000 a year in expenses for theatre tickets, meals and travel.

Documents obtained under Access to Information reveal that in 2006 Sylvain Lafrance ran up bills in the tens of thousands - all of which apparently "conforms to CBC's corporate policy".

Lafrance expensed more than $28,000 on hotels, travel and meals in 2006 - including almost $6,000 for lunch and dinner dates with other CBC managers and executives. He ate with TV host and editor Yvan Asselin eight times in 2006 spending almost $850 over the year.

"Those expenses were for business lunches with high-level managers during a full year," said CBC spokesman Marc Pichette.

"Those expenses are fully compliant with CBC corporate policy ... if you compare them with the private (sector) they are very low."

Travel expenses also reveal Lafrance spent $7,500 on two trips to Paris for meetings at TV5Monde, an international French television network partnered with CBC.

Each time Lafrance visited Paris he stayed in a hotel that cost about $450 per night. The CBC refused to release the name of the hotel but Pichette insisted it was "absolutely not a luxury hotel."

Lafrance also approved more than $15,000 in office catering for managers, employees and guests to CBC offices in Montreal.

On March 22, 2006, for example, the CBC spent more than $2,300 on beer, wine, nachos and pretzels as a thank you to CBC staff who worked on the Turin Olympics. On another occasion, almost $2,000 was spent on food and drink so that CBC staff could toast the launch of a new internal computer system.

"Those office catering expenses pertain to those meetings with high- and medium-level managers," said Pichette. "At all times, and for each expense incurred, Mr. Lafrance fully complies with corporate policy."

The documents also list more than $33,000 in corporate expenses for CBC's French service, which were cleared by Lafrance, for benefit dinners and theatre tickets to events that raise money for Quebec-based arts and culture organizations.

In April 2006, Lafrance signed off on a $10,000 bill to buy 10 $1,000-a-plate dinner tickets for a fundraiser for the Montreal Symphony Orchestra. Lafrance could not attend the event so sent a senior manager in his place.

He also signed off on a bill of $5,000 for a table of 10 at a benefit for a Montreal theatre called Espace Go, which a senior manager also attended in Lafrance's place.

Records also indicate Lafrance regularly signs off on expensive theatre tickets for charities that range in price from $150 to $450 per person.

Pichette defended the $33,000 in theatre tickets and $1,000-a-plate dinners as the duty of a "good corporate citizen."

"Giving a part of our money to an annual benefit is, for us, a way to encourage those cultural organizations that need money," said Pichette.

"Bill Clinton Inc."


The Comeback Id

Old friends and longtime aides are wringing their hands over Bill Clinton’s post–White House escapades, from the dubious (and secretive) business associations to the media blowups that have bruised his wife’s campaign, to the private-jetting around with a skirt-chasing, scandal-tinged posse. Some point to Clinton’s medical traumas; others blame sheer selfishness, and the absence of anyone who can say “no.” Exploring Clintonworld, the author asks if the former president will be consumed by his own worst self.

by Todd S. Purdum

As originally published in: Vanity Fair
July 2008


It was a wedding straight out of Sex and the City: a rehearsal dinner looking out over the Eiffel Tower from the Trocadero, a garden ceremony and dancing reception in a grand château outside Paris, topped off by a private fireworks display. The groom was a thirtysomething American lawyer with friends in high places, the bride a dark-eyed designer with social sheen, and the guest list a mix of family and what Noël Coward once called Nescafé Society.

But the real cynosure of the occasion last August was the smiling, snowy-haired man who is the bride at every wedding and the corpse at every funeral he attends, the 42nd president of the United States, Bill Clinton. He had come to the City of Light with the motley crew that constitutes some of the post-presidential rat pack to celebrate the marriage of Douglas Band, the man who for the last decade has been his personal aide, gatekeeper, enforcer, and—more recently—counselor in the multifarious business, philanthropic, and political dealings that keep Clinton restlessly circling the globe.

Also in attendance was Ron Burkle, the California supermarket billionaire and investor who is Clinton’s bachelor buddy, fund-raiser, and business partner. Burkle had come with an attractive blonde, described by a fellow guest as “not much older than 19, if she was that.”

Burkle’s usual means of transport is the custom-converted Boeing 757 that Clinton calls “Ron Air” and that Burkle’s own circle of young aides privately refer to as “Air Fuck One.” Clinton himself had arrived on the private plane of another California friend, the real-estate heir, Democratic donor, liberal activist, and sometime movie and music producer Steve Bing, whose colorful private life includes fathering a child out of wedlock with the actress Elizabeth Hurley and suing the billionaire investor Kirk Kerkorian for invasion of privacy, alleging that private investigators for Kerkorian swiped Bing’s dental floss out of his trash in a successful effort to prove that Bing’s DNA matched that of a child delivered by Kerkorian’s ex-wife, the former tennis pro Lisa Bonder. (The suit was later settled out of court.)

In fairness, it should be said that Clinton’s entourage that weekend also included his daughter, Chelsea, and her boyfriend, Marc Mezvinsky, and no one who was there has adduced the slightest evidence that Clinton’s behavior was anything other than proper. Nor, indeed, is there any proof of post-presidential sexual indiscretions on Clinton’s part, despite a steady stream of tabloid speculation and Internet intimations that the Big Dog might be up to his old tricks. On any given visit to London, for example, Clinton is as apt to dine with Tony Blair or Kevin Spacey as with anyone who might raise an eyebrow.

But among the not-so-small cadre of Clinton friends and former aides, concern about the company the boss keeps is persistent, palpable, and pained. No former president of the United States has ever traveled with such a fast crowd, and most 61-year-old American men of Clinton’s generation don’t, either. “I just think those guys are radioactive,” one former aide to Clinton who is still in occasional affectionate touch with him told me recently, referring to Burkle and (to a lesser extent) Bing. “I stay far away from them.”

Another former aide, trusted by Clinton for his good judgment, said, “On the sort of money, women, all that stuff … I’m the bad guy. All this stuff is kept away from me. Whatever they’re doing, they definitely view me as somebody you cannot confide in.”

A longtime Clinton-watcher, who has had ties to the former president since his first campaign for governor of Arkansas, said of Clinton’s sometimes questionable associations, “I don’t know what to make of any of that, if it’s a voyeuristic experience, or if he’s participating in it.”

Yet another long-serving Clinton aide said simply, “If you figure it out, would you let me know?”

Bill Clinton’s relevance—and his presence in public life—is as close to permanent as any politician’s can be. Before touching off a string of controversies in his wife’s campaign this year, he was among the most popular figures on the planet, one of only three Democratic presidents in the 20th century to serve two full terms. His looming presence will make him a factor in the Democratic vice-presidential sweepstakes, the fall campaign, and every future presidential election of his lifetime, whatever his wife’s fate.

I have covered Clinton on and off for 16 years, since his 1992 presidential campaign. I first really met him on New Year’s Eve 1994, when he shook my hand on the beach at Hilton Head Island, South Carolina, and let his eyes travel ever so subtly to the newly issued White House press pass hanging around my neck, so that he could know to say, “I’m glad you’re here, Todd.” As a White House correspondent for The New York Times for more than two years, I spent some part of almost every day watching, thinking about, worrying about, or writing about Clinton and his never-a-dull-moment presidency. I found it hard not to admire his roving intellect, his protean political talents, his outsize personality, and the tactical skill with which he eventually confronted the Republican congressional majority that bedeviled so much of his tenure. Clinton had no use for the string of pure and noble losers that had come to define the Democratic Party’s presidential prospects for so long. He wanted to win, and he knew how. (I should add, by way of disclosure, that my wife, Dee Dee Myers, was Clinton’s first press secretary. They have not been in regular contact since she left the White House, and she has not been a source for this article.)

To know Clinton is, sooner or later, to be exasperated by his indiscipline and disappointed by his shortcomings. But through it all, it has been easy enough to retain an enduring admiration—even affection—for a president whose sins against decorum and the dignity of his office seemed venial in contrast to the systemic indifference, incompetence, corruption, and constitutional predations of his successor’s administration. That is, easy enough until now.

This winter, as Clinton moved with seeming abandon to stain his wife’s presidential campaign in the name of saving it, as disclosures about his dubious associates piled up, as his refusal to disclose the names of donors to his presidential library and foundation and his and his wife’s reluctance to release their income-tax returns created crippling and completely avoidable distractions for Hillary Clinton’s own long-suffering ambition, I found myself asking again and again, What’s the matter with him?

As I sought to answer that question for myself, in conversations with dozens of current and onetime Clinton aides, many of whom I have known all these years (Clinton himself declined to be interviewed), I realized just how much about the former president is not known, and not knowable, at the moment, mostly because of his unapologetic stonewalling. Virtually no one, except Ron Burkle, knows just what Clinton put into Burkle’s investment business, or just what he has done since to earn millions of dollars, with the prospect of reaping millions more. Most of the names of the donors who have contributed some $500 million to Clinton’s library and foundation over the past decade are not known, either. Virtually no one, except his doctors and family, knows the precise state of Clinton’s health. Virtually no one really knows what strategic role he has played in his wife’s campaign.

A Cavernous Narcissism
So what can be known, or fairly inferred, from the available record?

There is reason to believe that Clinton, who never made more than $35,000 a year as governor of Arkansas and left the White House about $12 million in debt, has had his head turned by his ability to enjoy his post-presidential status; that the world of rich friends, adoring fans, and borrowed jets in which he travels has skewed his judgment or, at a minimum, created uncomfortable appearances of impropriety. There is ample evidence that his eight-year absence from a political workplace that has changed radically in the interim has left him conspicuously rusty at the craft of which he was once a master. There are those friends who worry that Clinton has never been the same since his quadruple-bypass surgery, in 2004, and the unexpected follow-up operation six months later to remove accumulated scar tissue on his lung.

“There’s an anger in him that I find surprising,” one senior aide, who has known and served both Clintons for years, told me this spring. “There seems to be an abiding anger in him, and not just the summer thunderstorms of old. He has been called into question repeatedly by top staff. The fact is, you can only weigh in so often on this stuff. It’s just a huge force of nature.”

It may well have been Clinton’s displaced anger (at the media, the Obama campaign, or both) on his wife’s behalf that led to his charged performance in the South Carolina primary, where he campaigned extensively against the wishes of Hillary’s high command in the mistaken belief that he could help her among black voters. He not only failed to do so but damaged his own relations with many prominent blacks, just as black voters were flocking to Barack Obama for the first time in large numbers. Hillary’s campaign was arguably never the same again.

It is also possible that all these influences have combined to make the cavernous narcissism that has always driven Clinton, for better and worse, at last consume the man almost completely. It was Clinton’s political genius to position the Democratic Party, for the first time in a generation, as the champion of those who “work hard and play by the rules.” In his own life, he has always followed only the first half of that dictum, and has never been fastidious about appearances, in ways charming and not. At a private meeting in New York City in 1992, AIDS activists, who were lobbying Clinton to include a speaker with AIDS at the Democratic convention that summer, presented him with a big batch of condoms, and a participant told me at the time that Clinton instantly replied, “My staff thinks this is the last thing I need.” Less amusingly, in the run-up to the 1996 re-election campaign, when Clinton took one of his many fund-raising trips to California, I teasingly asked his press secretary, Mike McCurry, whether the president intended to go jogging with Eleanor Mondale, the daughter of the former vice president—as he had on a previous trip—after he was spotted with her (and Barbra Streisand) in the wee hours of the morning. The next day, as we boarded the plane at Andrews Air Force Base en route to Los Angeles, McCurry, whose effectiveness as Clinton’s spokesman was aided by the fact that he never fell in love with him, sidled up to me and told me that he had passed my question on to the president, and that Clinton had responded, in vivid terms he knew I could not print, that I should not confuse exercise with extracurricular activity.

Only much later would the world learn that no less an informed observer than Monica Lewinsky, whose judgment, in hindsight, has often seemed sounder than the president’s, had taken note of Mondale’s presence at his side. According to Andrew Morton’s authorized account Monica’s Story, Lewinsky flew into a swivet when she was once stopped at the White House gate on her way to a hoped-for meeting to deliver Christmas gifts to the president. While waiting, she learned that Mondale was with him in the White House.

“Do you think I would be stupid enough to go running with someone I was foolin’ with?,” Clinton later asked Lewinsky. Without missing a beat, she replied, “Do you want me to answer that?”

The “Butt Boy”
By most accounts, including his own, Clinton struggled to find his footing in the early days of his post-presidency. “I was lost for three weeks after I left the White House,” he said on the campaign trail this winter. “Nobody ever played a song anymore. I had no idea where I was.” He had ended his administration in a firestorm of criticism over his eleventh-hour pardon of a raft of assorted miscreants, including the fugitive financier Marc Rich, whose ex-wife, Denise, contributed $450,000 to Clinton’s presidential-library fund, approximately $1 million to Democratic causes, including $70,000 to a fund supporting Hillary Clinton’s Senate campaign, and $7,000 worth of furniture for the Clintons’ new home in Chappaqua, in suburban Westchester County.

“When he first started transitioning, it was hard,” one former longtime aide told me. “But then he said to me, ‘I’ve always been a guy who could bloom where I was planted.’ I’ve been impressed by how truly happy he’s been as an ex-president. He’s much more focused than I would ever think he would be.”

Soon enough, Clinton was busy with plans for his library, and for the foundation that would not only build it but would undertake philanthropic and policy projects around the world; with paid speeches at $150,000 to $250,000 apiece; and with the writing of what would become his best-selling memoir, My Life, published in 2004. Deeply in debt with Whitewater- and impeachment-related legal bills, he set about earning an income that would “support a senator,” as he put it. He more than succeeded. This spring, when the Clintons—under intense pressure from Barack Obama and the news media—at last released their income-tax returns for the years since they left the White House, the total haul amounted to a staggering $109 million. Included in that total, besides Hillary Clinton’s Senate salary and Bill Clinton’s presidential pension, were $10 million in book income for Hillary and $29 million in book income for Bill, along with $51 million in speaking fees for the former president.

The command center for Bill Clinton Inc. is the former president’s penthouse office on 125th Street, in Harlem, and the go-to guy in the operation is a figure barely known to the public but a center of controversy in Clintonworld: Doug Band. Band, 35, joined the White House as an intern in the counsel’s office in 1995 and by the end of the administration was the president’s personal aide, or “butt boy,” the person responsible for making sure the president wakes up on time in the morning and stays on schedule during the day, and for peering around the corner of the president’s existence 24-7, at home and on the road, to make sure he has everything he needs (lunch, tie, speech, hat, golf clubs, a handy bathroom) and avoids everything unnecessary, unwanted, and undesirable (you get the drift). Band was the fourth young person to hold that job in Clinton’s White House tenure, and he holds some vestigial elements of it but has also moved far beyond. In Clinton’s post-presidential years, Band, who earned a master’s and a law degree by studying nights at Georgetown, has expanded his duties. His official title is “counselor,” and Clinton credits him with helping to conceive the Clinton Global Initiative, the annual conference on venture philanthropy that brings together movers and shakers from the worlds of business, charity, and academia to tackle problems ranging from poverty to climate change.

Band can be brusque and aggressive for a person whose job it is not to be noticed. In 2001, when I wrote about Chelsea Clinton’s graduation from Stanford for The New York Times and noted that a number of former White House staffers, including Band’s predecessor, Kris Engskov, a bright young Arkansan, were on hand in Palo Alto to help out with logistics, I got a call the next morning from Band, curtly reminding me that he, not Engskov, was now the man who managed the former president’s cell phone.

Last fall, Band fired off a stern letter to Nino Selimaj, owner of the Osso Buco restaurant, on University Place in Manhattan, demanding that a photograph of Selimaj with Chelsea Clinton that had hung in the restaurant’s window for five years (in the time-honored tradition of publicizing celebrity patronage, but to Chelsea’s apparent annoyance) be taken down forthwith. “Ms. Clinton, a private citizen, was not consulted prior to this picture being displayed, and thus, her permission was not given for you to do so,” Band wrote. Selimaj, a Hillary Clinton supporter, was crushed but left the picture up until this April when he removed it to make room for a new batch of photos.

A former Clinton aide acknowledged, “He’s a real point of animus from Hillaryland.” In 2004, Maggie Williams, Hillary Clinton’s former White House chief of staff, who had gone on to help establish Clinton’s foundation as his post-presidential chief of staff, left her job after two and a half years at least partly, she told friends, because Band rubbed too many people the wrong way, perhaps unintentionally, and made too much work for her. Williams, who took over Hillary Clinton’s struggling campaign in a staff shake-up this spring, has told int imates that while Band is not one of her favorites she had other, more personal, reasons for moving on. But one of Williams’s former colleagues and friends told me, “Maggie said, ‘That’s it. I’m done,’ because Doug does not show good judgment all the time.”

A range of Clinton loyalists complain privately that Band does not keep Clinton away from people like Burkle and Bing, who attended Band’s wedding to Lily Rafii, a glamorous designer of high-end handbags, belts, and other accessories.

A Classic Clinton Vacuum
The most pointed criticism of Band is precisely this: that he does not possess what Clinton has always needed in a string of strong-willed aides, such as his gubernatorial chief of staff Betsey Wright, or his director of Oval Office operations, Nancy Hernreich—the judgment to save him from himself. The origins of such criticism may lie in the fact that one of his predecessors as personal aide, Stephen Goodin, was cited, together with Hernreich, in the Starr Report as having tried to keep Monica Lewinsky away from the president, while Band, then only an intern, escorted her to a White House party, at her request.

“It’s a classic Clinton vacuum, in my opinion,” one former aide told me, referring to the inability of Band—or perhaps anyone—to monitor the company Clinton keeps. “He surrounds himself with people sometimes who are really good or really bad, and there’s rarely any in-between.”

Band’s supporters among Clinton’s longtime circle say most of the criticism means he is doing his job. “In my experience, he’s pretty good at protecting a guy who, you know, everybody wants to grab his sleeve,” former Clinton chief of staff John Podesta told me. “He pushes back hard.” Even some who do not always admire his hard-charging style say he kept conscientious, worried vigil during Clinton’s 2004 heart surgery and that Hillary relied on him greatly.

Band’s defenders say that complaints about his judgment are misplaced, and are really complaints about Clinton’s judgment. Band himself declined to be interviewed. But someone who knows him well said that he was sure Band was unhappy and surprised by the presence of Burkle’s young date at his wedding, and that to the degree that Band has ruffled feathers or made enemies by saying “no” to various supplicants, friends, and favor seekers who believe Clinton should acquiesce to them, he has done so with the president’s and his family’s best interests at heart.

Over the last few years, aides have winced at repeated tabloid reports about Clinton’s episodic friendship and occasional dinners out with Belinda Stronach, a twice-divorced billionaire auto-parts heiress and member of the Canadian Parliament 20 years his junior, or at more recent high-end Hollywood dinner-party gossip that Clinton has been seen visiting with the actress Gina Gershon in California. There has been talk of a female friend in Chappaqua, a woman in a bar at a meeting of the Aspen Institute, and a public sighting of Clinton, Bing, and a ravishing entourage in a New York elevator that, a former Clinton aide told me, led a business leader who saw them to say: I don’t know what the guy was doing, but it was so clear that it was just no good.

None of these wisps of smoke have produced a public fire. But four former Clinton aides told me that, about 18 months ago, one of the president’s former assistants, who still advises him on political matters, had heard so many complaints about such reports from Clinton supporters around the country that he felt compelled to try to conduct what one of these aides called an “intervention,” because, the aide believed, “Clinton was apparently seeing a lot of women on the road.” The would-be intercessor was rebuffed by people around Clinton before ever getting an audience with the former president, and another aide told me that the effort was not well received by either Bill or Hillary Clinton and that some Hillarylanders, in particular, were in denial about the continuing political risks that Bill’s behavior might pose.

The sensitivity among Clinton’s staff to these questions is such that, after I posed some queries about Clinton’s relationship with Burkle and Co., a spokesman, Jay Carson, e-mailed me this comment: “The ills of the Democratic Party can be seen perfectly in the willingness of fellow Democrats to say bad things about President Clinton. If you ask any Republican about Reagan they will say he still makes the sun rise in the morning, but if you ask Democrats about their only two-term president in 80 years, a man who took the party from the wilderness of loserdom to the White House and created the strongest economy in American history, they’d rather be quoted saying what a reporter wants to hear than protect a strong brand for the party. Republicans look at this behavior and laugh at us.”

Whatever the facts of Clinton’s personal life, it is beyond dispute that he has associated with some decidedly unpresidential company. In 2002, Clinton flew to Africa with the New York investor Jeffrey Epstein on his private Boeing 727 on an anti-AIDS and economic-development mission. (Others on the mission included Kevin Spacey and the comedian Chris Tucker.) In 2006, Epstein was indicted on state charges of soliciting prostitution in Palm Beach, Florida, and he later came under investigation by federal authorities amid allegations that he hired under-age girls for massages and more in a house stocked with sex toys and genitalia-shaped soaps. He remains the subject of at least four pending civil lawsuits from young women and is reportedly expected to accept a plea deal on a state charge that would give him 18 months in prison, followed by house arrest, in lieu of a trial now set to begin this month.

When I asked several Clinton aides and friends why the boss hung around with people like Burkle and Bing, they suggested various reasons. Bing, 43, who helped finance Shine a Light, the recent Martin Scorsese documentary about the Rolling Stones, and who has given tens of millions to environmental and other causes dear to Clinton’s heart in recent years, is described as very well read, thoughtful, interesting—and willing to stay up long into the night indulging Clinton’s craving for conversational companionship. (A spokesman for Bing said he would have no comment.)

Burkle, 55, a onetime supermarket boxboy who eventually parlayed ownership of several grocery chains into a fortune that Forbes magazine estimates to be at least $3.5 billion, is said to have bonded with Clinton over their shared origins as outsiders who rose to the very biggest leagues. They met during Clinton’s 1992 campaign, after the Los Angeles riots, and Burkle’s union-friendly stance and support for a range of Democratic causes quickly endeared him to Clinton. A former Burkle associate told me that Burkle has always been careful to conduct his own social life discreetly in Clinton’s presence, but would not deny that the divorced Burkle leads what he euphemistically called a “European lifestyle.” And, the former associate added, “how many older guys wouldn’t want to hang out with younger girls, if they could? Would you rather hang out with a smart, good-looking 20-year-old, or a 45-year-old?”

One person, who has worked at the highest levels for both Clintons, told me that Clinton’s association with such people “just shows poor judgment, for someone who understands political calculations the way he does, and the subtleties as he does, that he puts himself in that position.”

Business with Burkle
In his book Giving, an extended Hallmark hymn to the virtues of venture philanthropy, Clinton writes that Burkle’s provision of post–White House work was the “only private sector offer I accepted” upon leaving office. In fact, that is not true: Clinton has also collected more than $3 million in consulting fees from InfoUSA, a data-mining company headed by a longtime contributor, Vinod Gupta, a Nebraska multi-millionaire who has raised hundreds of thousands of dollars for the Clintons’ campaigns. The company has drawn media scrutiny for allegedly selling consumer data about vulnerable senior citizens to unscrupulous telemarketers, and some shareholders once sued InfoUSA, charging that Gupta wasted nearly $1 million in company funds flying the Clintons around the world. (InfoUSA did not respond to a request for comment.)

But Clinton’s business relationship with Burkle is far and away his largest source of income after books and speeches: $15.4 million between 2003 and 2007, according to the Clintons’ recently released tax returns. That amounts to about 20 percent of all the income that Clinton earned in those years. Until the release of the tax returns this year, Hillary Clinton’s Senate financial-disclosure forms had revealed only that Clinton earned “more than $1,000” a year from his partnerships with Burkle.

Burkle is perhaps the single best example of the self-reinforcing network of rich personal, charitable, political, and business supporters Clinton has built since his White House years. For Clinton’s re-election campaign Burkle held regular fund-raisers at Green Acres, his sprawling estate in Beverly Hills, which once belonged to the silent-film star Harold Lloyd, and Burkle has also raised millions of dollars for Hillary Clinton’s campaigns. What has Clinton done in return? Burkle himself has said that Clinton has provided invaluable introductions and entrée to potential investors, including the Teamsters union. (A spokesman for Burkle’s companies did not return repeated telephone calls seeking comment.) When the tax returns were made public this spring, Jay Carson issued a statement saying that “the president provides his best advice on potential investments, advocates generally on behalf of the funds, and seeks to create opportunities for investors to consider investing in these funds or in the investments the funds make.”

The Burkle partnership carries ample potential for conflicts—real and perceived—whether or not Hillary Clinton is ever president. For one thing, she lent her campaign $11.4 million this year, and because the Clintons’ finances are commingled, it would be difficult to discern whether money from Burkle-related ventures (or other potentially controversial sources of income) made its way into Clinton campaign coffers. Burkle’s other investors include an entity connected to Sheikh Mohammed bin Rashid al-Maktoum, the ruler of Dubai, whose regime has been cited for human-rights violations by the State Department. (Two years ago, Senator Clinton nevertheless opposed a Dubai-based company’s efforts to acquire control over the management of six United States ports.)

Over the years, Clinton has had three main business involvements with Burkle. The first is a broad advisory capacity, for which Clinton has been paid flat fees for work as a rainmaker and liaison between Burkle and various potential investors. In fact, a Clinton aide says, this accounts for all the money that Burkle has paid Clinton to date. As part of the advisory arrangement, Clinton received a stake—of unknown size—in two Burkle domestic investment funds, for which Clinton will see a profit only if annual returns exceed a certain threshold. They appear on track to do so, the aide says, but have so far not produced a payout for Clinton. The third strand is an international investment fund (which has also yet to generate cash returns for Clinton) in which the former president invested an undisclosed amount of his own money, along with Burkle and the same entity connected to Sheikh Mohammed. Clinton has the right to opt out of any controversial investments by this fund, as he recently did with an investment in China.

Doug Band, though not Clinton himself, was involved in another Burkle investment that produced embarrassment. As The Wall Street Journal reported last fall, Band helped introduce Burkle to Raffaello Follieri (an Italian entrepreneur and the boyfriend of the actress Anne Hathaway), who had a proposal to buy and develop properties being sold off by the Catholic Church. Band received a $400,000 finder’s fee for the transaction (which he has said he passed on to others involved). Burkle later sued Follieri for allegedly misappropriating funds to pay expenses. (The dispute was settled out of court.) A Clinton adviser told me that Follieri (who was recently charged with attempting to pass a bad check for $215,000 in New York; the charge was later dropped) had come with good references. (Attempts to reach Follieri were unsuccessful.)

This winter a Clinton spokesman announced that Clinton was moving to sever his ties with Burkle to avoid potential conflicts should Hillary Clinton become the Democratic nominee. But in fact, one Clinton aide told me, severing the ties is complicated because putting a value on the partnerships is difficult.

On the Stump
In the middle of the so-called Potomac primary this winter—simultaneous elections in Maryland, Virginia, and the District of Columbia—I went to watch Clinton campaign for Hillary one Sunday in Baltimore County: at a senior-living complex in Catonsville and a gritty Democratic club in blue-collar Dundalk. Much of what I saw felt instantly recognizable: the fluid, conversational, extemporaneous style; the succinct statement of the case (“You ought to be for her because she’s spent a lifetime making the only kind of change that matters: making changes in other people’s lives”); the frequent pronouncements that something or other was “a big deal” (a favorite phrase in his presidency); and the genial stretchings of the truth.

“Now, when I got elected, I had the lowest net worth of any president of the 20th century,” Clinton told his appreciative audience at the Charlestown Retirement Community, blithely ignoring poor Harry Truman, who so struggled to make ends meet as a senator in Washington that he put his wife, Bess, on his office payroll at a higher salary than any other employee there. A moment later, Clinton invoked Truman to make a point about Hillary’s courage in fighting for universal health-insurance coverage, saying, “A lot of you remember that Harry Truman was the first president who tried to get universal health care for everybody. They beat his brains out and nearly destroyed his presidency, and he was a very great president.” Truman’s greatness is now in little dispute, but the contemporary criticism of his presidency had less to do with his drive for health care than with the Korean War.

But if much about Clinton is familiar to one who covered him in his prime, other aspects of his appearance and demeanor are unsettling. He is visibly older and thinner. His hair is whiter and his countenance paler. At times, as the day wears on, he makes an odd cotton-mouth sound, his tongue sticking to the roof of his mouth as he talks. “At some point in your life, which most of us in this room have reached,” he tells the seniors, “you realize that even if you live to be 100—and I hope you all do, and a bunch of you will, by the way—you have more yesterdays than tomorrows.”

That, too, was a line Clinton liked to use in the White House, but it rings differently at 61 than it did at 46 or 50. By the standards of the males in his family, Clinton is a very old man indeed. His father died at 28, three months before his son was born, and his maternal grandfather, who helped raise him, died at 58, so Clinton has long faced atypical intimations of his own mortality. Many of those who know him well say he now tires more easily, and loses energy.

Post-Op Complications
That is hardly surprising: not quite four years ago, Clinton underwent quadruple-bypass surgery to relieve blocked arteries in his heart, a procedure whose comparative commonness in the modern medical world belies the range of subtle, complex, and not always obvious complications that can follow it. “He’s recovered much, much more slowly from the heart surgery than anybody thought,” one former aide told me. “He still has energy, but not stamina. He can recover, but he used to do that nonstop, with three hours’ sleep.”

Just weeks after his triumphal encore appearance at the 2004 Democratic National Convention, in Boston, Clinton, who has suffered for years from esophageal reflux, the symptoms of which can sometimes mimic signs of cardiac trouble, complained of chest pains and shortness of breath, and an angiogram showed severely blocked arteries that doctors said meant he was doubtless headed for a major heart attack. On September 6, 2004, in surgery at NewYork-Presbyterian Hospital/Columbia University Medical Center, Clinton’s breastbone was cut open, his chest pulled apart. His heart was stopped for 73 minutes while a heart-lung machine maintained his body’s flow of blood and breathing, and surgeons took blood vessels from his chest and his left leg to create detours around the segments of arteries in his heart that were severely clogged with plaque—more than 90 percent blocked in some cases.

Six months later, as the result of a rare and unexpected complication, Clinton had a second surgery to remove a rubbery rind of scar tissue caused by the accumulation of bloody fluid in the lower lobe of his left lung; the tissue had cut his breathing capacity by more than 25 percent. In this operation, known as a thoracotomy, an incision was made between a pair of Clinton’s ribs, and doctors spread them apart to make room for the insertion of surgical instruments that peeled off tissue surrounding the scar tissue and then the hard, rubbery rind. Experts describe the aftermath of such surgery as typically quite painful, much more painful than that of bypass surgery.

As a private citizen—albeit a very prominent one—Clinton has not received anything like the post-surgical media attention he would have if he were still president, and many details of his treatment in recent years are not known. After his first surgery, The New York Times reported that he would take a range of medications, including a beta-blocker to maintain regular heartbeats, a statin to lower his cholesterol, an ace inhibitor to control high blood pressure, and aspirin to thin his blood. These medications may cause a range of side effects, including fatigue, muscle pain, dehydration, depression, and impotence. Coronary bypass can also cause subtle changes in cognition, which may, or may not, be temporary. There is further medical disagreement about whether such changes are caused in part by small particles of plaque that are discharged by the heart-lung machine and sent to the brain, or by the underlying artery disease itself. If a patient has arterial disease in his heart, he could have it in his brain too.

“I would think mood changes would be a big issue in his life from that bypass surgery, especially having to go back a second time,” says Dr. Thomas Traill, a prominent cardiologist at the Johns Hopkins Hospital, in Baltimore, who is not involved in Clinton’s care. Many people who have bypass surgery get depressed afterward, while others suffer from increased irritability. “It’s very similar to postpartum depression. You deliver a child and then a week later it’s a dismal anticlimax. The same thing happens with heart surgery: you wonder if you’re going to make it, and then you wake up in the intensive-care unit and you’re the center of the universe, and a week later you’re exhausted and sore and about to be sent home.”

“It’s also true,” Traill adds, “that a lot of people are never really the same again, that their mood is not right. Some of that may have been triggered by the original illness and some by surgery. Then there’s a persistent problem: you’re taking medications, you’re under doctors’ care, and every day when you shave you know you’re not going to live forever. So whether or not he’s, as they like to say, clinically depressed, his mood cannot be the same as before this happened.”

The Guilt Factor
Whatever the explanation, much of Clinton’s behavior on the campaign trail this year has been so maladroit as to constitute malpractice: his blowups at television reporters, his derisive dismissal of Obama’s unwavering anti-war stance as a “fairy tale,” and most of all his denigrating comparison of Obama’s performance in the South Carolina primary to Jesse Jackson’s victories there two decades ago (which even one of his closest former aides described to me as insensitive at best). Perhaps no figure in modern American politics has less standing to say “Shame on you!” than Bill Clinton, but he said just that—twice—to a hapless reporter who asked him in January about comments by a former South Carolina Democratic Party chairman comparing Clinton’s tactics to those of the late Lee Atwater, the take-no-prisoners Republican strategist known for racially charged campaigns.

As the days wore on, the former Senate Democratic majority leader Tom Daschle said Clinton’s behavior was “not keeping with the image of a former president.” His former labor secretary and onetime friend turned critic, Robert Reich, called Clinton’s attacks on Obama “ill-tempered and ill-founded.” No less a loquacious commentator than the Reverend Al Sharpton said that it was time for Clinton to just “shut up.” His old flame Gennifer Flowers, who has endorsed Hillary, referred to him as an “idiot husband.” Congressman James E. Clyburn of South Carolina, the highest-ranking black member of the House of Representatives, who pointedly had remained neutral in the primary, finally called Clinton’s behavior “bizarre.” And on more than one occasion, in one way or another, Senator Clinton herself had to tell him—as she did after he revived controversy over her imagined landing in Bosnia under sniper fire by unleashing a string of new inaccuracies to defend her—“Let me handle this.” There is little doubt that Clinton’s own intensity has fueled his wife’s. One senior aide told me bluntly that Bill’s anger “has not served her well. That side of him feeds the worst side of Hillary. He does stoke her up.”

Aides to both Clintons say part of the problem was that, until Maggie Williams came on board, no one from Hillary’s campaign was even tasked with routinely keeping Bill abreast of developments, so long-simmering tensions between her people and his were allowed to worsen. After Williams’s arrival, Clinton participated in a daily conference call with her and other top campaign advisers to review the state of the race that one aide said sometimes turned into a virtual monologue. “There’s not a detail that escapes his notice and commentary,” the aide said, “and as usual with Clinton, much of what he says is worth listening to.” Aides explain the depth of Bill Clinton’s involvement by invoking what one of them called “the guilt factor.”

“There’s this piece of him really wanting this desperately for her, for all of the reasons you can imagine,” this aide told me. “She put her career on hold to be with him I mean, it’s her time, and he feels that.” Clinton was also never cut out to be a supporting player. He is Gladys Knight and not a Pip, as his former aide Jamal Simmons, who now backs Obama, put it this spring.

The way Clinton handled the courtship of Senator Ted Kennedy in the run-up to Kennedy’s eventual endorsement of Obama is instructive. “Barack pursued Kennedy with a soft touch,” a person close to Kennedy told me. “He checked in every once in a while Counter that with the way the Clintons were handling him. There was nothing soft about the Clintons’ requests. Hillary would call and make a formal request. Clinton, as he felt Kennedy slipping away, would get more and more insistent, and he would make the whole conversation about how bad Obama was, not how good his wife was.”

Losing a Step
Clinton’s temper has continued to get the better of him. By the eve of the Pennsylvania primary, he was reduced, in a Philadelphia radio phone interview, to denying that his comments in South Carolina had been in any way racially charged, and instead insisted that the Obama camp “played the race card on me.” He sputtered, “I mean, this is just, you know … You really gotta go something to play the race card with me—my office is in Harlem.” At the end of the interview, apparently unaware that he was still on the air, Clinton was heard to say, “I don’t think I should take any shit from anybody on that, do you?” Asked the next day by another reporter what he had meant by saying the Obama campaign “was playing the race card,” Clinton would have none of it. “No, no, no, that’s not what I said,” he erupted, as if he did not know that his earlier comments had been recorded and were all over the Internet. He added, “You always follow me around and play these little games, and I’m not going to play your games today.” It’s a nice question, just who was playing the games. When I asked a Clinton campaign official how the former president could have issued such a flat denial, the aide immediately responded, with no trace of irony, that the offending reporter had used the word “playing,” while in the radio interview Clinton had used the word “played.” I’m not sure whether that makes Clinton’s outburst better or worse, but it’s of a piece with the parser the public knows so well.

As the primaries ground on, the campaign deployed Clinton more strategically (and, perhaps, more effectively) in the kinds of smaller towns presidents never visit—47 stops in Pennsylvania, 39 in Indiana, 50 in North Carolina—where he stumped in largely white, working-class areas but, poignantly for a man once dubbed the nation’s “first black president,” not in African-American ones. That sea change in Clinton’s standing among blacks will remain a consideration in how to use him, or not use him, in the general-election campaign, no matter who the Democratic nominee.

I saw Clinton at two of his nine stops on the day before the North Carolina primary in May. He was himself, for good and bad. In Zebulon, population 4,329, he arrived one hour and seven minutes late to speak to a crowd of 500 or so, talked for 40 minutes on topics from the Iraq war to hybrid cars, adoption and foster-care policy, and mortgage foreclosures, and concluded, in a repeated refrain that took on the insistence of a preacher’s call, that Hillary’s campaign had been carried along by “people like you in places like this.” Minutes later, after a front-porch rally in nearby Louisburg, population 3,726, a woman in the crowd approached him, tears streaming down her face. I could not get close enough to hear what was said, but Clinton listened, then cupped her face in his big hands, in that way that only he can. It was classic Clinton, but not enough to prevent an Obama blowout in the state the next day.

Perhaps more than anything, Clinton, whose audiences in recent years have tended to be adoring crowds who hang on every word of what those who have heard his standard speech say is a rambling tour d’horizon of world problems, has simply lost a step.

“Look, the game has changed,” said Mike McCurry. “He ran his last national campaign in 1996, and remember, we kind of ran unopposed. It’s been a while since he did that, and the way you summon people up and get them to do things has changed. All of this stuff, the blogging and the YouTubing and the way in which everything is instantaneously available: I tell you, until you get out there and are actually dealing with the consequences—having what you just said as you were walking out the door [all over the Internet], that’s brand-new to him.”

A Dictator’s Embrace
When Clinton left the White House, aides say, he made a list of all the world problems he cared most about and might yet do something to help solve. At the top of his list was Mideast peace, but Clinton quickly realized that that was an endeavor in which uninvited meddling was inappropriate, so he concentrated on a range of other issues, from H.I.V./AIDS to clean water, childhood obesity, global warming, and—after the South Asian tsunami and Hurricane Katrina—disaster relief. Some aides have said they see a clear effort to redress problems that he let fester as president, whether AIDS or the Rwandan genocide. It is beyond dispute that Clinton’s foundation has done worthy work around the world, funneling low-cost anti-retroviral drugs to more than a million AIDS patients, shining the singular power of a presidential spotlight on the good work of others, and raising millions of dollars for practical programs in places much of the world’s power establishment never bothers with.

But it is also beyond dispute that Clinton has blended the altruistic efforts of his philanthropy with the private business interests of some of his biggest donors in ways that are surpassingly sloppy, if not unseemly, for any former president. A case in point is Clinton’s relationship with Ukraine’s Victor Pinchuk, a billionaire and philanthropist who has donated millions to the ex-president’s foundation. According to Newsweek, in 2007, at a Pinchuk-sponsored international conference in Yalta, Clinton wowed the crowd with a presentation on Ukraine but also sparked controversy when he was embraced by Pinchuk’s father-in-law, the country’s former president Leonid Kuchma. Kuchma’s repressive regime has been linked by a government investigation to the 2000 murder of a dissident Ukrainian journalist. The man was found decapitated—one of scores of journalists who have been killed or have disappeared in Ukraine since the country achieved independence, in 1991.

Even more troubling is Clinton’s relationship with the Canadian mining magnate Frank Giustra. This winter, a lengthy investigative report in The New York Times disclosed that, in 2005, Clinton flew to the Central Asian country of Kazakhstan on Giustra’s MD-87 jet for what was billed as a philanthropic three-country tour. The two men had dinner with President Nursultan Nazarbayev, who has held the country in a vise-like grip for nearly two decades. At their meeting, Clinton expressed support for Nazarbayev’s bid to head the Organization for Security and Co-operation in Europe, which monitors elections and promotes democracy. That position was sharply at odds with official American foreign policy and came in the face of stinging criticism of Kazakhstan’s record on human rights from many sources, including the junior senator from New York, Hillary Rodham Clinton. Within two days, Giustra’s company signed preliminary agreements allowing it to buy into three uranium projects controlled by Kazakhstan’s state-owned uranium agency. And months after that the Clinton Foundation received a $31.3 million donation from Giustra that remained secret until a Giustra representative acknowledged it late last year. (Giustra has separately pledged another $100 million to the foundation.)

A Clinton spokesperson and Giustra have both said that Clinton was unaware of the specifics of the uranium deal. But critics of Clinton’s judgment say that misses the point.

“There’s no way in the world that President Clinton didn’t understand what was going on there, and no way in the world that he didn’t understand what his role was supposed to be in that visit: to lay the hands of the former president of the United States on the individual he was traveling with and thereby bring credibility to whatever reason that individual was there for,” says Fred Wertheimer, the president of Democracy 21, a Washington watchdog group that monitors money and politics. “To deny that is to, basically, take the position that you can fool all of the people all of the time.”

The Public Pensioner
It is for just such reasons that Clinton’s refusal to make public the names of donors to his foundation has drawn withering fire. (Some donors—including the Saudi royal family and the governments of Dubai, Kuwait, and Qatar—were made public by The New York Sun when a list of them was discovered on a public computer monitor at the opening of the Clinton library, in Little Rock, and others have since become known as the result of interviews and journalistic digging through the tax records of known Clinton friends and supporters.) Clinton aides say that donors were promised confidentiality, but they have also pledged to make public the names of future donors—though not past ones—should Hillary Clinton become president.

“I think there’s also a kind of sentiment that if somebody’s given us money to save the lives of tens of thousands of kids who have H.I.V., let somebody fucking bitch about it,” one senior Clinton adviser told me. “If they don’t want us to take that money, or if it offends some sensibility of Fred Wertheimer, so be it.”

Clinton is under no legal obligation to disclose such donors—or, for that matter, to disclose much of anything about his personal financial dealings. No one knows the details of the earnings—almost certainly many millions of dollars—that the first President Bush has made from his investment in the Carlyle Group, for example. Gerald Ford quietly raked in big director’s fees from companies such as American Express, and Ronald Reagan briefly scandalized late-80s Washington by taking $2 million for a single speaking trip to Japan. But their wives never ran for president.

Throughout our history there has been a strong presumption that former presidents should conduct their affairs in ways that do not seem to cheapen, degrade, or exploit the high office they held. Hillary Clinton’s own service as senator, and her presidential campaign, reinforce that imperative in Bill Clinton’s case. Harry Truman was so reluctant to accept any business or commercial offer, however high-minded, that might be seen as capitalizing on the presidency that he nearly went broke in retirement. A few years after leaving office, he had seen a $600,000 advance from Life magazine for his memoirs whittled away by expenses and 67 percent income taxes to a net gain of about $37,000. Only the sale of his family farm for a shopping center saved him from real embarrassment. Finally, he took his case to Speaker of the House Sam Rayburn and Senate majority leader Lyndon Johnson, and the first bill stipulating an annual presidential pension (initially $25,000) and money for offices and staff was passed.

Clinton benefits handsomely from Truman’s foresight. His presidential pension has totaled more than $1.2 million since he left office, and despite his fantastic private-sector income, an analysis this spring by the Web site Politico showed that he has taken almost as much in taxpayer dollars for his post-presidential existence as the other two living ex-presidents—Jimmy Carter and George H. W. Bush—combined. Since 2001, Clinton has received more in almost every category—pension, staff salaries, supplies—than any of his colleagues in that smallest of clubs. Before Ronald Reagan and Gerald Ford died, Clinton’s telephone and rent expenses came close to exceeding the comparable expenses for all four then living former presidents combined. Part of the difference is that Clinton served eight years in office, entitling him to a federal health-insurance plan and a higher pension than Ford, Carter, or Bush, and part is that his office space in Manhattan is more expensive than space in Atlanta or Houston.

Still, there is a repellent grandiosity about Clinton’s post-presidential style. Before he settled on more modest space in Harlem, Clinton had intended to rent the entire 56th floor of Carnegie Hall Tower, in Midtown, for roughly $738,000 a year. He changed course after a rash of sharp congressional and public criticism. Each year at Christmastime, Clinton sends out to supporters a slim, paperbound volume of his Selected Remarks, with a gold-embossed “Happy Holidays” greeting card replete with the requisite “bug” showing it was printed in a union shop. Last year’s number ran 25 pages and featured three thoroughly ordinary efforts: a commencement speech at Knox College, in Illinois; remarks to the Nelson Mandela Foundation, in South Africa; and comments at the 50th-anniversary commemoration of the de-segregation of Little Rock Central High School. “Since leaving office,” the first page of the booklet states, “President Clinton has devoted his time and energy to causes of both personal concern and global significance.”

A Solitary Man
Throughout his career, Bill Clinton has justified acts of extraordinary selfishness in the name of idealism—he’s always in it for the people, the plain folks who tell pollsters they trust him to look out for their interests, even if they don’t trust him. He has been forgiven colossal egotism, even cruelty, by those closest to him because of his superlative political talents, and because of the overreaching of his enemies. As president, Clinton often could not show grace in the smallest ways. He dithered about where and when to go on vacation, so that aides and Secret Service agents could not plan their own. He declined to release aides and reporters who had waited around all through a pointless Saturday of duty while he made up his mind whether to play golf (a game at which he has been known to cheat). He was never, ever, on time. In Joe Klein’s roman à clef about the Clintons, Primary Colors, the Betsey Wright character accuses the Bill Clinton character of always skating by on charm and talent and need. “You have never paid the bill,” she tells him. “Never. And no one ever calls you on it. Because you’re so completely fucking SPECIAL. Everyone was always so PROUD of you. And me, too. Me the worst.”

In the end, this is Clinton’s most grievous sin, his steady refusal to take grown-up responsibility for the consequences of his own actions. In the White House, on the day of his last sexual encounter with Monica Lewinsky, Clinton told her that he was worried that a foreign embassy might be listening in on their calls, and that if she were ever questioned, she should say they were just friends. Then he looked into her eyes and sang, “Try a Little Tenderness,” a song that goes: “She may be weary, women do get weary, wearing the same shabby dress.” On the day this winter that he accused Barack Obama of spinning a “fairy tale” about Obama’s anti-war stance, Clinton went on to whine about an Obama campaign research sheet criticizing his business dealings and insisting, “Ken Starr spent $70 million and indicted innocent people to find out that I wouldn’t take a nickel to see the cow jump over the moon.” So, yes, let us stipulate: Ken Starr was a prurient, partisan zealot. Yes, other ex-presidents have made a lot of money and it is hard to begrudge Clinton his earnings (even if he did take six million nickels for a speech to the Australian Council for the Peaceful Reunification of China). Yes, Obama is a daring opponent who thinks he is hot shit and has benefited from the same enthusiasm, energy, and fresh-faced appeal that a fella named Bill Clinton once elicited (but he has suffered from some of the same skepticism, too). It is Clinton’s invariable insistence that his problems are someone else’s fault, and that questions or criticisms of him, his methods, motives, or means are invariably unfair, that is his unforgivable flaw.

He has told friends that he is not worried that his aggressive performance this year has done lasting damage to his reputation (some of them are not so sure). Whatever the future holds for Hillary Clinton, her husband is not fading away. He will remain a presence, a force to be reckoned with, as long as he draws breath.

But for a politician with so many admirers, allies, acquaintances, faithful retainers, and hangers-on, Clinton remains a profoundly solitary man, associates say, without any real peers, intellectual equals, or genuine friends with whom he can share the sweetest things in life. (The one who has always come closest, for better and worse, for richer and poorer, is simply too busy these days.)

So he spends his time veering between feeling sorry for himself and working to help others, between doing good and giving his enemies fresh ammunition, between vindicating his legacy and vitiating it. “So much of modern culture is characterized by stories of self-indulgence and self-destruction,” Clinton writes near the end of Giving, from which he earned $6.3 million and gave away $1 million (or 16 percent) to charity. “So much of modern politics is focused not on honest differences of policy but on personal attacks. So much of modern media is dominated by people who earn fortunes by demeaning others, defining them by their worst moments, exploiting their agonies. Who’s happier? The uniters or the dividers? The builders or the breakers? The givers or the takers? I think you know the answer.”

I used to think he did, too. But substitute the words “my life” for the words “modern culture” and “modern politics” in the passage above, and you’ll have a pretty succinct summary of what Bill Clinton has, at last, become.

Todd S. Purdum is Vanity Fair’s national editor.

22 November 2008

Wall Street


We The People speak about the proposed bailout of Wall Street

by Mark Reback

As originally posted: Consumer Watchdog: Fighting Corporateering Blog
September 25, 2008


Americans are sounding off in record numbers to Congress with strong disapproval of the proposed federal bailout of Wall Street, at taxpayer expense. Here’s a sampling of some of the comments we’ve received:

Richard from Huntington Beach, CA: “This makes our family so angry. YOU cannot get a loan for a business or home that is not worth it's appraised value, but THEY are able to pass a loan to these crooks within a week or a little more for such a huge number. This is just more of the same from this administration.”

Ed from Anchorage, AK: “Give the four million people whose homes/houses are in jeopardy of foreclosure the $700 billion (since it’s their money anyway), they can then payoff their mortgages and then pay the government back, at say, 3% interest over 30 years. Viola, this just cuts out the greedy middleman.”

Robert from Tracy, CA: “I cannot express strongly enough my total disgust with what I am seeing NOW with my government. The current Wall Street bailout is the last straw for me. My family has suffered long enough. Bailout "Main Street" with trickle up economics that start with helping the citizen taxpayers and let the fat cat pirates crash and burn and feel the pain as we do!

Karen from Escondido, CA: “Please do not come to the American people to bail out the top executives so they never have to work again, while our families, children's families, and on and on, will be paying for this forever.”

Magladena from Killen, TX: “Please advocate for all the senior citizens that are being abused by greed and corruption...”

Kathleen from Santa Barbara, CA: “Stop using my tax dollars to bail out foolish, wealthy, greedy people. Let them suffer the consequences of their mistakes. Instead, use my money to fix schools, provide more access to health care, improve rail transportation so we don't have to pay ransom gas prices. I and my fellow middle-class voters are not Wall Street's personal ATM machines.”

Canadian Prime Minister Stephen Harper


How much lower will Harper go?

As originally posted on: TheStar.com
February 23, 2007


Prime Minister Stephen Harper looked far from prime ministerial Wednesday when he resorted to innuendo to smear a Liberal Member of Parliament from Brampton, his family, and by extension Liberal Leader Stéphane Dion and his entire party.

It all started when the Liberals asked Harper about the Canadian judiciary's criticisms of his new appointment process for judges. Instead of defending his position, Harper attacked the Liberals for their stand on renewing two controversial anti-terrorism measures that were introduced after the Sept. 11, 2001, attacks on the World Trade Center.

But the way in which Harper did so showed him to be the parliamentary equivalent of a hockey goon, trying to beat the Liberals by throwing a vicious sucker punch at backbench MP Navdeep Bains (Mississauga-Brampton South). Insinuating that the Liberals' opposition to the anti-terrorism measures had its roots in their attempt to protect Bains and his family, Harper started to read a Vancouver Sun story in which unnamed sources claimed Bains's father-in-law, Darshan Singh Saini, "is on the RCMP's potential list of witnesses at investigative hearings designed to advance the Air-India probe." Saini would not have to testify at the criminal investigation into the 1985 Air-India bombing if the two measures in the anti-terror law were allowed to expire next Thursday.

Dion opposes extending the two measures, one dealing with investigative hearings and the other on preventive arrests. But many Liberal MPs want the measures extended for three more years.

Harper's stiff attack on Bains indicated it does not matter to him that as a matter of policy the RCMP does not release the names of any potential witnesses at investigative hearings. Nor did it matter that the NDP and Bloc Québécois also oppose continuation of the anti-terror measures.

Yesterday, Harper had a chance to make amends for his behaviour when Bains rose in the Commons and politely asked him twice to retract his remarks that "attacked my integrity and the integrity of my family."

Twice again, Harper flatly refused.

Such mean-spirited invective hardly becomes Canada's national leader, who is expected to set the standard in dignity and civility for all MPs.

Sadly, Harper's vile and baseless attack on Bains is the latest in a series of sleazy pre-election attacks by the Prime Minister and his party and raises the question of just how low he will stoop in his bid to cling to power.

Last week, for example, Harper, who came to power promising a new era in political civility, unleashed unprecedented French-language TV attack ads that suggest Dion was a "vendu," or "sellout," for his federalist views. And in the 2006 federal election, Harper linked then finance minister Ralph Goodale to an RCMP probe into possible leaks over income-trust taxes. Goodale was fully exonerated last week in the case, but Harper has refused to apologize to Goodale.

Clearly, Harper has adopted a take-no-prisoners style of governing in which all political opponents are seen as enemies who must be eliminated at any cost. It's a style championed by Karl Rove, the political operative who ran recent bare-knuckled Republican party campaigns in the U.S.

Such attacks, however, discredit not just Harper, but all politicians. That's because when Canadians see the kind of partisanship reflected in the smear tactics Harper resorted to Wednesday in his effort to tarnish Bains's reputation, they lose faith in the whole political process. When rational debate over competing ideas gives way to a clash over personal integrity, how are Canadians supposed to believe in the policies that result?

With an election coming, Canadians would do well to ask themselves: How much lower will Harper go?

Former Death Row Records President "Suge" Knight (a/k/a Marion Knight)


Rap big Suge Knight charged in gal's attack

by Rich Schapiro

As originally published: Daily News
November 17, 2008


Hip-hop mogul Suge Knight has been slapped with multiple charges in the August beatdown of his girlfriend in Las Vegas, TMZ.com reported Sunday.

Knight, 43, faces two felony charges of possession of a controlled substance and one count of misdeameanor battery after the Aug. 27 attack in Sin City, the gossip Web site reported.

Knight, the founder of Death Row records, began fighting with his girlfriend of three years, Melissa Isaac, as they drove away from a strip club, cops say.

Isaac jerked the wheel after Knight punched her, causing the Cadillcac Escalade to hit a curb, cops say.

Isaac jumped out of the SUV and tried to run away but was chased down by the 6-foot-4 Knight.

Responding cops spotted Knight wielding a knife as he kicked Isaac in the head, police say.

Knight was in possession of the drugs Ecstasy and hydrocodone, police said.

It wasn't Knight's first run-in with cops. He has served prison time on assault charges in the 1990s and early 2000s.

21 November 2008

New York State Attorney General Andrew Cuomo


Got A $1,000 To Spare? Spend It Partying With Andrew Cuomo

by Jay Yarow

As originally posted on: The Business Sheet
November 19, 2008


Holiday parties are out of favor this winter. Citibank, Morgan Stanley, Lazard, and Newsweek have all announced the cancellation of their parties. Luckily, we found a party to attend. It comes a little early, it's a little pricey and it carries a slightly wafting stink of hypocrisy, but it'll have to do. It's Andrew Cumo's 51st birthday party.

The New York State Attorney General is throwing himself a big birthday bash on December 2nd, four days ahead of his actual birthday which is December 6th. While he encourages fiscal restraint for Wall Street, he discourages such behavior at this shindig. At a minimum the tickets cost $1,000, though you can pay $50,000 for a seat with Mr. Cuomo and a grip of tickets for the event. The money raised goes to his re-election campaign coffers.

20 November 2008

The "Big Three CEOs"


Big Three CEOs Flew Private Jets to Plead for Public Funds

Auto Industry Close to Bankruptcy But They Get Pricey Perk

by Brian Ross and Joseph Rhee

As originally posted: ABC News
November 19, 2008


The CEOs of the big three automakers flew to the nation's capital yesterday in private luxurious jets to make their case to Washington that the auto industry is running out of cash and needs $25 billion in taxpayer money to avoid bankruptcy.

The CEOs of GM, Ford and Chrysler may have told Congress that they will likely go out of business without a bailout yet that has not stopped them from traveling in style, not even First Class is good enough.

All three CEOs - Rick Wagoner of GM, Alan Mulally of Ford, and Robert Nardelli of Chrysler - exercised their perks Tuesday by flying in corporate jets to DC. Wagoner flew in GM's $36 million luxury aircraft to tell members of Congress that the company is burning through cash, asking for $10-12 billion for GM alone.

"We want to continue the vital role we've played for Americans for the past 100 years, but we can't do it alone," Wagoner told the Senate Banking Committee.

While Wagoner testified, his G4 private jet was parked at Dulles airport. It is just one of a fleet of luxury jets owned by GM that continues to ferry executives around the world despite the company's dire financial straits.

"This is a slap in the face of taxpayers," said Tom Schatz, President of Citizens Against Government Waste. "To come to Washington on a corporate jet, and asking for a hand out is outrageous."

Wagoner's private jet trip to Washington cost his ailing company an estimated $20,000 roundtrip. In comparison, seats on Northwest Airlines flight 2364 from Detroit to Washington were going online for $288 coach and $837 first class.

After the hearing, Wagoner declined to answer questions about his travel.

Ford CEO Mulally's corporate jet is a perk included for both he and his wife as part of his employment contract along with a $28 million salary last year. Mulally actually lives in Seattle, not Detroit. The company jet takes him home and back on weekends.

Mulally made his case Tuesday before the committee saying he's cut expenses, laid-off workers and closed 17 plants.

"We have also reduced our work force by 51,000 employees in the past three years," Mulally said.

Yet Ford continues to operate a fleet of eight private jets for its executives. Just Tuesday, one jet was taking Ford brass to Los Angeles, another on a trip to Nebraska, and of course Mulally needed to fly to Washington to testify. He did not address questions following the hearing.

"Now's not the time to do that sort of thing," said John McElroy of the television program "Autoline Detroit."

"Now's the time to be humble and show that you're sharing equally in the sacrifice," McElroy said.

GM and Ford say that it is a corporate decision to have their CEOs fly on private jets and that is non-negotiable, even as the companies say they are running out of cash.

Private jet travel is perhaps the greatest perk of all for CEOs, who say it allows them to travel more efficiently and safely, even in a recession.

AIG, despite the $150 billion bailout, still operates a fleet of corporate jets. The company says it has put two out of its seven jets up for sale and is reviewing the use of others. Though there are no such plans by GM or Ford.

"It appears that the senior management of the automakers simply don't get it," said Schatz.

The Federal National Mortgage Association (FNMA) (a/k/a Fannie Mae) and the Federal Home Loan Mortgage Corporation (FHLMC) (a/k/a Freddie Mac)


Taxpayers may pay legal bills for mortgage execs

by Matt Apuzzo

THE ASSOCIATED PRESS
November 6, 2008


WASHINGTON (AP) — When the government took over mortgage giants Fannie Mae and Freddie Mac, taxpayers inherited more than just bad debts. They're also potentially on the hook for tens of millions of dollars in legal fees for the executives at the center of the housing market's collapse.

With the Justice Department investigating companies involved in the mortgage and financial meltdown, executives around the country are hiring defense lawyers. Like many large companies, Fannie and Freddie had contracts promising to cover legal bills for their executives.

When the Treasury Department delivered a $200 billion bailout to Fannie and Freddie, that obligation passed to the government, which may find itself paying for the lawyers defending the executives against the government's own prosecutors.

"Who'd have thought we might be on the hook for paying the defense costs when we're also paying the prosecution costs?" said Doug Heller, executive director of Consumer Watchdog, a Santa Monica, Calif.-based group that has been critical of the financial bailout packages. "To defend the economy from the havoc that's been created, we're going to defend the havoc creators?"

The Bush administration is working to avoid it. The Federal Housing Finance Agency, which controls Fannie and Freddie, said in regulatory filings that it soon will issue regulations spelling out exactly how such legal fees may be dolled out. The agency could prohibit some fees, but a broad prohibition almost certainly would lead to a costly court fight over who's responsible for the bills when the Justice Department comes knocking.

Fannie's and Freddie's contracts also cover legal fees from shareholder lawsuits. Taxpayers could be forced to pay those legal bills, too. If the shareholders win — if they can prove the companies were mismanaged — the government could be liable for millions of dollars to make up for the executives' failures.

It wouldn't be the first time federal money intended to prop up the financial industry was used for unintended purposes. Days after it received an $85 billion federal bailout loan, the huge insurer American International Group Inc. spent $440,000 on an executive retreat with spa treatments, banquets and golf outings.

Both Fannie Mae and Freddie Mac have been subpoenaed as part of the wide-ranging Justice Department investigation into the companies' accounting, disclosure and governance practices. The two companies are key to the U.S. mortgage industry. After banks make loans to home buyers, Fannie and Freddie buy the mortgages from the banks so bankers can have cash on hand to make more loans and keep the economy humming. Fannie and Freddie then bundle those loans and sell them as mortgage-backed securities. The proceeds of those sales help buy more mortgages.

In recent years, however, the companies purchased more risky, subprime mortgages. When the housing bubble burst and the subprime industry imploded, investors feared the risk of buying Fannie and Freddie's mortgage-backed securities, making it harder for the companies to raise money.

Combined, Fannie and Freddie own or guarantee nearly half of all U.S. mortgages. The Treasury Department stepped in to keep the companies from collapsing and taking the mortgage industry with them.

Neither Fannie nor Freddie has said whether they already have advanced any legal fees to former executives. The companies are required to make general disclosures about such payments but only on quarterly corporate filings.

When the government took over, Fannie Mae chief executive Daniel H. Mudd, Freddie Mac chief executive Richard F. Syron and the rest of the companies' leadership was dismissed. All those executives would be entitled to have their legal fees covered.

The obligations could easily stretch into millions of dollars. Both companies have promised to pay legal fees for all current and former board members, executives and employees charged or investigated in connection with their employment.

Legal fees can add up quickly. After Freddie Mac restated its earnings in 2003, it became embroiled in several investigations and lawsuits. By the middle of 2005, the company had paid $16.8 million in legal fees for its executives and employees.

Executives who are convicted of wrongdoing are required to give the money back. Those who are acquitted, who are merely witnesses or who are investigated but never charged do not need to reimburse the company.

It's impossible to determine how much money might be at stake. In taking over the two mortgage giants, the government pledged to spend up to $200 billion to keep both companies afloat. The amount the government actually will spend depends on how well the companies perform in a changing mortgage industry.

With so much money at stake, defense attorneys are watching closely to see how broadly housing regulators restrict any future legal payments. The Fannie and Freddie contracts give the executives the right to sue to force the companies to pay their legal fees. If the executives win, the cost of those lawsuits gets passed to Fannie and Freddie, and potentially to the taxpayers.

American Companies that are "Too Big to Fail"


If They're Too Big To Fail, They're Too Big Period

by Robert Reich

As originally posted on: Robert Reich's Blog
October 21, 2008


According to Treasury Secretary Hank Paulson, the biggest Wall Street banks now getting money from the government are just "too big to fail.” Fed Chairman Ben Bernanke uses a different euphemism – he calls them “systemically critical.” The point is that if any of them goes down, it could take the whole financial system with it. So we taxpayers have to keep them up.

We’re hearing the same argument elsewhere in Washington for saving General Motors. It’s just “too big to fail.” So Congress is considering a bailout that would keep GM afloat and sweeten a merger between GM and Chrysler.

Pardon me for asking, but if a company is too big to fail, maybe – just maybe – it’s too big, period.

We used to have public policies to prevent companies from getting too big. Does anyone remember antitrust laws? Somewhere along the line policymakers decided that antitrust would only be used where there was evidence a company had so much market power it could keep prices higher than otherwise.

We seem to have forgotten that the original purpose of antitrust law was also to prevent companies from becoming too powerful. Too powerful in that so many other companies depended on them, so many jobs turned on them, and so many consumers or investors or depositors needed them – that the economy as a whole would be endangered if they failed. Too powerful in that they could wield inordinate political influence – of a sort that might gain them extra favors from Washington.

Maybe the biggest irony today is that Washington policymakers who are funneling taxpayer dollars to these too-big-to-fail companies are simultaneously pushing them to consolidate into even bigger companies. They’ve prodded Bank of America to take over Merrill-Lynch and Countrywide. JP Morgan to acquire Washington Mutual and Bear Stearns. And now they’re urging General Motors to absorb Chrysler.

So we’re ending up with even bigger giants, with even more power over the economy and politics, subsidized by taxpayers, and guaranteed never to fail because they’re just ... too big.

19 November 2008

(Outgoing) United States Senator Ted Stevens


Alaska Sen. Ted Stevens loses re-election bid

by Michael R. Blood

THE ASSOCIATED PRESS
November 18, 2008


ANCHORAGE, Alaska (AP) — Sen. Ted Stevens, the longest serving Republican in Senate history, narrowly lost his re-election bid Tuesday, marking the downfall of a Washington political power and Alaska icon who couldn't survive a conviction on federal corruption charges. His defeat by Anchorage Mayor Mark Begich moves Senate Democrats within two seats of a filibuster-proof 60-vote majority.

Stevens' ouster on his 85th birthday marks an abrupt realignment in Alaska politics and will alter the power structure in the Senate, where he has served since the days of the Johnson administration while holding seats on some of the most influential committees in Congress.

The crotchety octogenarian built like a birch sapling likes to encourage comparisons with the Incredible Hulk, but he occupies an outsized place in Alaska history. His involvement in politics dates to the days before Alaska statehood, and he is esteemed for his ability to secure billions of dollars in federal aid for transportation and military projects. The Anchorage airport bears his name; in Alaska, it's simply "Uncle Ted."

Tuesday's tally of just over 24,000 absentee and other ballots gave Begich 146,286, or 47.56 percent, to 143,912, or 46.76 percent, for Stevens.

A recount is possible.

Begich said the defining issue in the race was the desire for a new direction in Washington, not Stevens' legal problems.

Alaska voters "wanted to see change," he told reporters in Anchorage. "Alaska has been in the midst of a generational shift — you could see it."

Stevens' campaign didn't immediately respond to phone calls seeking comment.

Stevens' loss was another slap for Republicans in a year that has seen the party lose control of the White House, as well as seats in the House and Senate. It also moves Democrats one step closer to the 60 votes needed to overcome filibusters in the Senate. Democrats now hold 58 seats, when two independents who align with Democrats are included, with undecided races in Minnesota and Georgia where two Republicans are trying to hang onto their seats.

Democrats have now picked up seven Senate seats in the Nov. 4 election.

"With seven seats and counting now added to the Democratic ranks in the Senate, we have an even stronger majority that will bring real change to America," Sen. Charles Schumer, D-N.Y., chairman of the Democratic Senatorial Campaign Committee, said in a statement.

The climactic count came after a series of tumultuous days for a senator who has been straddling challenges to his power both at home and in his trial in Washington. Notwithstanding all that turmoil, Stevens revealed Tuesday that he will not ask President George W. Bush to give him a pardon for his seven felony convictions.

Stevens' future was murky at a time when newly elected members of both the House and Senate were on Capitol Hill for heady receptions, picture-taking sessions and orientation this week. Stevens, speaking earlier Tuesday in Washington, said he had no idea what his life would be like in January, when the 111th Congress convenes.

"I wouldn't wish what I'm going through on anyone, my worst enemy," he lamented to reporters. "I haven't had a night's sleep for almost four months."

Last month just days before the election, Stevens was convicted by a federal jury in Washington of lying on Senate disclosure forms to conceal more than $250,000 in gifts and home renovations from an oil field services company.

His defeat could also allow Republican senators to sidestep the task of determining whether to kick out the longest serving member of their party in the Senate.

When counting resumed Tuesday, 1,022 votes divided the candidates out of about 300,000 ballots cast. Most of the those votes came from areas that had favored Begich — the Anchorage vicinity and the southeastern panhandle around Juneau.

It is a testament to Stevens' popularity — he was once named "Alaskan of the Century" — that he won nearly half the votes, even after his conviction. He routinely brought home the highest number of government dollars per capita in the nation — more than $9 billion in 2006 alone, according to one estimate.

With Stevens gone "it's a big gap in dollars — billions of dollars — that none of the other members of the delegation, Begich, whoever, could fill," said Gerald McBeath, chair of the political science department at University of Alaska Fairbanks. "There is no immediate replacement for him."

Following the trial Stevens said he wanted another term "because I love this land and its people" and vowed to press on with an appeal. Professing his innocence, he blamed his legal problems on his former friend Bill Allen, the founder and former chairman of VECO Corp., the government's star witness.

In a state where oil and politics have always mixed, the conviction came as part of a long-running investigation into government corruption centered around VECO.

Begich will be the first Democrat to represent Alaska in the Senate in nearly 30 years. He is the son of Nick Begich, Alaska's third congressman, who died in a plane crash 1972 while running for re-election.

Stevens' lawyer demanded a speedy trial, hoping for exoneration in time to fight the first serious threat to his seat in decades. But the trial in Washington not only left Stevens a felon, it deprived him of time to campaign in his home state.

Stevens refused pleas from his own party leaders to step down after the verdict, including Sen. John McCain, the GOP presidential nominee who said the Alaska senator had "broken his trust with the people."

Stevens' fall came shortly after another Alaskan, Gov. Sarah Palin, emerged as a national figure on the Republican presidential ticket. She had called for Stevens to step aside at one point, but appeared to back away from that the day after the election when returns showed Stevens with an edge.

"The people of Alaska just spoke," she said.

Associated Press writers Jesse J. Holland and Andrew Taylor in Washington and Rachel D'Oro in Anchorage contributed to this report.

Philanthropist / Business Consultant / Past United States President Bill Clinton


Many Dealings of Bill Clinton Are Under Review

by Don Van Natta Jr. and Jo Becker

As originally published in: The New York Times
November 17, 2008


Over the weekend, former President Bill Clinton enthusiastically endorsed the prospect that his wife, Senator Hillary Rodham Clinton, might join the Obama administration as secretary of state. “If he decided to ask her and they did it together,” the former president said, “I think she’ll be really great as a secretary of state.”

Mr. Clinton delivered those remarks at an international economic symposium in Kuwait City sponsored by the National Bank of Kuwait, which said the former president would “share with a select audience his perspective on the issues likely to shape the future prospects of the region.”

It is precisely that kind of paid speech, which Mr. Clinton delivered 54 times last year for a total of $10.1 million in fees, that has complicated the vetting process that Mrs. Clinton is undergoing by the Obama transition team. “Whatever happens or doesn’t happen is between Obama and her,” Mr. Clinton said.

That may be, but Mr. Clinton’s postpresidential life as a globe-trotting philanthropist, business consultant and speech-giver poses the highest hurdle for Mrs. Clinton to overcome if President-elect Barack Obama chooses to nominate her as secretary of state, according to aides of the Clintons and Mr. Obama.

The Obama transition team is focused on the wide array of Mr. Clinton’s postpresidential activities, some details of which have not been made public. This list includes the identity of most of the donors to his foundation, the source of some of his speaking fees — he has earned as much as $425,000 for a one-hour speech — and his work for the billionaire investor Ronald W. Burkle.

The vetting of Mr. Clinton’s myriad philanthropic and business dealings is “complicated, and it may be the complications that are causing hesitation on both sides,” said Abner J. Mikva, one of Mr. Obama’s closest supporters and a White House counsel during the Clinton administration. “There would have to be full disclosure as to who all were contributors to his library and foundation. I think they’d have to be made public.”

While aides to the president-elect declined Monday to discuss what sort of requirements would make it possible for Mrs. Clinton to serve as secretary of state, they said Mr. Obama would not formally offer her the job unless he was satisfied that there would be no conflicts posed by Mr. Clinton’s activities abroad.

Associates of the Clintons said that Mr. Clinton was likely to have to make significant concessions and that he was inclined to do so. Among other things, they said, he would probably have to agree not to take money for speeches from foreign businesses that have a stake in the actions of the American government. Another obvious issue, Democratic lawyers said, would be whether Mr. Clinton’s foundation should accept money from foreign governments, businesses or individuals for the foundation’s philanthropic activities and if it should disclose those donors publicly.

“The problem is it’s going to require some sacrifice by him,” said a former Clinton aide who is not involved in the discussions but did not want to be identified because the talks are confidential. “If he’s not willing to do that, it could blow up.”

One proposal, floated by Mr. Mikva and several other aides involved in the vetting process, would be for Mr. Clinton to separate himself from the activities of his foundation, including raising money.

“It’s not just what he does or says — it’s the fact that the foundation is involved with foreign countries, some of which might well be in conflict with U.S. policy,” Mr. Mikva said. “It’s more than a legal problem — there are ethical problems and appearance problems.”

Several longtime associates of the Clintons said the former president would be an asset to Mrs. Clinton if she were appointed secretary of state. The Obama administration “would be able to use Bill Clinton as the ultimate special envoy inside the tent,” one longtime associate said.

Since the former president established the William J. Clinton Foundation in 1998, it has raised more than $500 million, a sum that allowed him to build his steel-and-glass presidential library in Little Rock, Ark., and create the Clinton Global Initiative, which has done good deeds all over the world, including working to eradicate AIDS in Africa. Much of that money has been raised from foreign sources.

Clinton is not required by law to identify the donors to his foundation, and this year he declined to name them. Last year, while Senator Clinton was seeking the Democratic presidential nomination, The New York Times compiled the first detailed list of 97 donors who gave or pledged a total of $69 million for the Clinton presidential library in the final years of his administration. The examination found that while some $1 million contributors were longtime Clinton friends, others were seeking policy changes from the administration. Two people pledged $1 million each while they or their companies were under investigation by the Clinton Justice Department.

The foundation has received contributions from the Saudi royal family, the king of Morocco, a foundation linked to the United Arab Emirates and the governments of Kuwait and Qatar.

In a statement, the foundation said at the time, "Donors did not seek, nor did President Clinton give, favors from the federal government," adding that most of the contributions were made after Clinton left office. A spokesman for the foundation, Matt McKenna, declined to comment on Monday.

During Senator Clinton's presidential campaign, the Clintons agreed to sell $11 million to $26 million worth of stock and pledged to liquidate holdings that had been in a blind trust. She said then that they wanted to avoid conflicts of interest.

In September, at his annual Clinton Global Initiative meeting, Mr. Clinton hosted more than two dozen foreign leaders, including Queen Rania of Jordan, President Shimon Peres of Israel and President Álvaro Colom of Guatemala.

Obama met Thursday in Chicago with Senator Clinton. Shortly after that, the process of looking into her husband's activities began, slowed in part because the former president did not return to the United States until early Monday.

Several Democrats close to the Clintons said the former president's activities should not be a disqualifier because the couple had been more open about their finances than past veterans of the White House, thanks to Senate disclosure requirements.

"They are arguably the most transparent former first couple in history," said one Democratic official, who declined to be identified because the talks are confidential. "For eight years, they've been doing this."

Lanny J. Davis, a longtime Clinton friend who said he was not speaking on the couple’s behalf, said he “completely rejects 100 percent” any suggestion that there was a conflict between Mr. Clinton’s work raising money for his foundation and the work Mrs. Clinton would be doing as the nation’s chief diplomat.

When the Clintons released their postpresidency tax returns in April, the documents showed the couple had earned $109 million after leaving the White House in January 2001. Most of it has come from book-writing and speaking fees, a sum that accounts for nearly $92 million, including a $15 million advance from Bill Clinton's best-selling autobiography, "My Life."

The returns also showed that Clinton had collected at least $12.6 million since 2002 from his work as an adviser to Burkle, the supermarket magnate, whose Yucaipa Companies have invested money for the Dubai government and acquired a stake in a Chinese media company.

The former president helped drum up business for several domestic and foreign investment funds in Yucaipa's portfolio, although precisely what Clinton did is unknown.

Beyond Clinton's work for his foundation and his foreign business dealings, there is also the unique issue of having a secretary of state whose husband is a former president. During her campaign, Senator Clinton said if she were elected president, she would appoint her husband as a "roving global ambassador."

But if Senator Clinton were to be nominated as secretary of state, potential conflicts could occur if the former president continued to serve as a traveling emissary of the United States. It is unknown whether he would be asked to curtail speaking out on foreign policy matters or, if asked, if he would be willing to do so.

The Conservative Party of Canada


Tories in damage control

Documents revealing evidence of 'improperly' claimed election expenses released

by Kathleen Harris

As originally published in: The Ottawa Sun
April 21, 2008


Conservative Party brass spun into damage control mode yesterday as new documents reveal a mounting log of interviews, e-mails and invoices to support allegations the party overspent by more than $1 million in the last federal campaign through a so-called "in-and-out scheme."

Documents used to execute an RCMP-aided search warrant at Tory party headquarters last week were unsealed by a Toronto court Friday night but weren't publicly released until today.

In a bid to get ahead of the curve, Conservative officials released some of the documents to some media outlets, including the 68-page affidavit from Ronald Lamothe, an assistant chief investigator in the Office of the Commissioner of Canada Elections.

In the statement, Lamothe said he has "reasonable grounds" to believe the party exceeded its election spending limit and candidates "improperly" claimed expenses in their electoral campaign returns. The document contains summaries of interviews from several candidates and official agents and attaches evidence such as e-mails and invoices.

"I have noted a consistent pattern created by the Conservative Party of Canada or the Conservative Fund Canada to deposit funds into the accounts of various campaigns, only to have the same or similar amounts transferred, always under the control of the Conservative Party or the Conservative Fund Canada, back to the Conservative Fund Canada, the chief agent of the Conservative Party of Canada," he stated.

Lamothe had sought to have the information used to obtain the search warrant remain sealed because he believed making it public would compromise the ongoing investigation.

'Chilling effect'

"The outline of the investigation and the evidence obtained to date would be known to potential interviewees," he wrote. "I believe such knowledge would tend to have a chilling effect on co-operation of potential witnesses and could allow interviewees to tailor their evidence to achieve a desired result."

A Conservative Party official insisted everything was legal and above board, and called the police search "retaliation" for the civil suit launched by the party against Elections Canada.

"The facts remain unchanged. We are engaged in a legal dispute on what constitutes a national campaign and a local campaign. Period," he said.

But Liberal MP Ralph Goodale said the Conservatives are in damage control.

"The arguments they're trotting out are the same ones they've tried to bluff people with for the last year, and frankly those dogs just don't hunt," he said.

"This is not a trivial, little administrative matter as much as the Conservatives would like to minimize it and sweep it under the rug. It's very serious stuff."

Lamothe's investigation stems from a May 17, 2007 referral from the political financing, audit and corporate services section of Elections Canada, which asked to probe whether the Conservatives incurred election expenses for media advertising that were claimed by a number of its candidates. The alleged scheme enabled the Conservative Party to spend $1 million over the limit and allowed about 67 candidates to increase their reported election expenses with expenses they didn't incur to claim a rebate they were not entitled to.

The spending cap for the Conservatives in the last election was $18.3 million.

18 November 2008

Former Texas State District Court Judge Verla Sue Holland and Former Texas District Attorney Thomas O’Connell


A Legal Affair

Convicted murderer Charles Dean Hood has been granted a stay of execution. But the fact—confirmed at last—that the judge and the prosecutor on his case had "an intimate sexual relationship" has not been addressed

by Alan Berlow

As originally posted on: TheAtlantic.com
September 11, 2008


Convicted double murderer Charles Dean Hood won a stay of execution on Tuesday, only hours after the judge who had presided at his 1990 trial acknowledged she’d been involved in a long-term intimate relationship with the district attorney who prosecuted Hood’s case. The ruling by the Texas Court of Criminal Appeals means that Hood is off the hook, at least for now. But the same can’t be said for the Texas justice system, which has seen some of its most egregious excesses exposed in the battle over whether Hood should live or die.

In issuing the stay, the Court of Criminal Appeals, the state’s highest court, ducked the issue of the alleged affair entirely, but instead agreed to reexamine whether the instructions Hood’s jurors were given prior to sentencing him to death were constitutional. The CCA has previously ruled that there was no problem with those instructions. The decision means that Hood could get a new sentencing hearing—which could result in a sentence other than death—but not a new trial.

Lawyers for Hood, who was scheduled to be executed on September 10, have been arguing since June that their client’s 1990 trial was thoroughly compromised by the relationship of Judge Verla Sue Holland and District Attorney Thomas O’Connell, and that the death sentence was therefore invalid and that Hood should be retried. But the courts and the district attorney for Collin County, just north of Dallas, had all dismissed the allegations as nothing more than “rumor.” While the DA pressed to have Hood executed, the state’s criminal courts ruled that it was too late in the game for Hood to raise the claim about an intimate relationship.

With the allegations of an affair no longer “rumor,” the DA’s office appears to be sticking to its guns. Assistant District Attorney John Rolater told the Dallas Morning News that his office “will vigorously defend our judgment and sentence,” and suggested that the fact that the former DA had been sleeping with the judge was of no consequence because “there was no affair going on during Hood’s trial.... It’s fairly clear that this was over well before the trial.”

In fact, it is by no means clear when the affair ended. Although District Judge Greg Brewer, who ordered the depositions, placed a gag order on discussion of their contents, some details emerged in a letter sent by Hood’s lawyer, Gregory Wiercioch, to Governor Rick Perry seeking a 30-day stay of execution. In that letter Wiercioch states that O’Connell and Holland agreed that the relationship began several years before Hood’s trial, but disagreed about exactly when it ended, and remained “good, close friends” even after they stopped sleeping together.

More importantly, the letter to Perry suggests that neither Holland nor O’Connell gave a second thought to their joint participation in the Hood case or any other case brought by O’Connell’s office and tried before Holland. “Judge Holland and Mr. O’Connell admitted under oath that they had an intimate sexual relationship for many years,” the letter states. “Judge Holland and Mr. O’Connell confirmed that they kept the relationship secret. She never disclosed it to a single litigant or lawyer who appeared before her, and she never recused herself from hearing a single case because of her affair with the elected district attorney.” The letter goes on to say that O’Connell also failed to disclose the relationship to any of his adversaries.

“No reasonable person would believe that a fair trial is possible when the presiding judge has had an intimate sexual relationship with one of the lawyers in the case,” Wiercioch writes. “That neither Judge Holland nor Mr. O’Connell disclosed the existence of the affair to Mr. Hood or his counsel is a shocking and devastating indictment of the Texas criminal justice system.”

Hood was sentenced to death in August 1990 for the 1989 murder of Ronald Williamson, 46, and Williamson’s girlfriend, Tracie Wallace, 26. Hood had worked as Williamson’s bodyguard and was living with him and Wallace at the time of the murders. Both victims were shot in the back of the head and were found in Williamson’s house. Hood was picked up in Indiana where he was driving Williamson’s Cadillac. He was linked to the crime scene by fingerprint evidence. Hood continues to insist he was innocent.

Among legal ethicists there is no question that Judge Holland should have recused herself from trying Hood’s case. Lawrence J. Fox, a professor of law at the University of Pennsylvania Law School and the former chairman of the ABA Standing Committee on Ethics and Professional Responsibility, said Holland, O’Connell and the State all had an obligation to reveal the information about the affair “long ago.” “What is stunning is they were all prepared to let the defendant be executed. They stood silent.... It is stunningly disgraceful.” Fox said that if Hood “does not get a new trial, there is no justice.”

Monroe Freedman, author of Understanding Lawyers’ Ethics and one of the country’s leading authorities on professional conduct, stated in an affidavit that “Mr. O’Connell’s success or failure as the prosecutor in Mr. Hood’s case could have had considerable significance to the advancement of Mr. O’Connell’s career. Accordingly, Judge Verla Sue Holland had a personal interest on behalf of her lover, District Attorney O’Connell, in the conviction and death sentence of Mr. Hood.”

The Collin County district attorney, who has been pushing to execute Hood, clearly takes a different view. John R. Roach, the current DA, has previously dismissed questions about the role of lawyers in his office as “speculation.” One of those lawyers, John Schomburger, prosecuted the case with Hood. He has refused to comment on the case. And the DA’s office has given no indication that it is in anyway interested in raising questions about the conduct of employees past or present.

That may be because a court judgment that Hood’s due process rights were violated would raise questions about other cases that originated in the Collin County DA’s office, including cases Roach was involved with. As District Attorney, O’Connell argued at least six other cases before Judge Holland which could be affected by the latest disclosures. Richard Ellis, a lawyer for Hood, said it is possible that literally “hundreds” of cases that came through O’Connell’s office during his 29 years as DA and were argued in front of Holland might be tainted. Holland was a district court judge in Collin County for 16 years, from September, 1981 until December, 1996. She was then elected to the CCA where she served until her retirement in September, 2001. O’Connell was elected district attorney in 1971.

As suggested by Assistant DA Rolater, the current Collin County DA’s office subscribes to a fairly narrow interpretation of the U.S. Constitution and the Texas Constitution, as well as commonly accepted ethical guidelines for lawyers.

The U.S. Supreme Court has held that the Due Process Clause of the Constitution requires that a judge “not only must be unbiased but also must avoid even the appearance of bias.” The Texas Constitution bars a judge from sitting in a case “where either of the parties may be connected with the judge, either by affinity or consanguinity.” As district attorney, O’Connell represented the State of Texas, the party seeking to execute Hood. The Texas constitution further states that, “Public policy demands that the judge who sits in a case act with absolute impartiality. Beyond the demand that a judge be impartial, however, is the requirement that a judge appear to be impartial so that no doubts or suspicions exist as to the fairness or integrity of the court.”

The Texas Bar Association’s rules of conduct require “a lawyer who knows that a judge has committed a violation of applicable rules of judicial conduct that raises a substantial question as to the judge’s fitness for office shall inform the appropriate authority.”

The American Bar Association’s Model Code of Judicial Conduct provides that, “A judge shall disqualify himself or herself in a proceeding in which the judge’s impartiality might reasonably be questioned.” When there is doubt, a judge is obliged to disclose information that lawyers might consider relevant to the question of disqualification.

The Texas State Commission on Judicial Conduct is apparently looking into the case.

Matthew Goeller, a former assistant district attorney at the time of the Hood trial signed an affidavit in June stating that it was "common knowledge in the district Attorney's Office, and the Collin County Bar, in general," that O'Connell and Holland had a "romantic relationship," which was ongoing from at least 1987 until 1993. So far, Goeller is the only lawyer from the DA’s office office who has stated publicly that this raised questions about the judge’s “impartiality.”

His concerns were given an enormous boost late last week when Texas Attorney General Greg Abbott took the extraordinary step of filing an amicus brief on behalf of Hood, a convicted and condemned murderer, citing what he called "the unique and extraordinary circumstances concerning the trial of this case." Abbott called for a thorough review of the case and the alleged romance by the "appropriate trial court," while making clear that he views the allegations of an affair as "unsubstaniated." Abbott’s instincts were vindicated by the depositions in Judge Brewer’s courtroom.

Hood’s lawyers were delighted that their client’s execution was stayed, but they were frustrated that the court failed to address the affair because they believe Hood’s conviction should be overturned. David Dow, director of litigation at the Texas Defender Service who has been working on Hood’s defense said, “Our first objective is to get Mr. Hood an entirely new trial.” Dow believes the CCA decided to rule on the jury instruction issue because, “It was yet another opportunity to avoid addressing the elephant in the room,” the intimate relationship between Holland and O’Connell. Hood's lawyers had asked eight of the nine members of the CCA to recuse themselves from the case because they had all served with Judge Holland when she was on that court. That motion was denied.

Richard Ellis said Hood’s legal team plans to pursue the judicial misconduct claim to win a new trial and to argue Hood’s claim of innocence. Ellis says that DNA from the crime scene has never been properly tested and that there are other forensic issues no court has ever examined.

Hood has had six execution dates thus far. He came within hours of execution in June when the time limit on his execution warrant ran out.
_______________________________________________
Alan Berlow, a freelance journalist, writes frequently about criminal-justice issues. He is the author of Dead Season: A Story of Murder and Revenge (1996). His documentary about jurors in capital murder cases, "Deadly Decisions," was produced for American RadioWorks and broadcast on NPR stations in 2002.

17 November 2008

Musical Performer / Record Producer Kanye West


Kanye West Arrested In England For Alleged Photog Scuffle

As originally posted on: BallerStatus.com
November 14, 2008


Kanye West and the paparazzi just don't mix. The rapper was arrested early Friday morning (November 14) in England for an allegedly incident involving a photographer outside a nightclub.

British media report that West was detained shortly after getting into a scuffle with a paparazzo outside the Tup Tup club in Newcastle, northern England.

The 31-year-old rapper was arrested later near his hotel, but then later released. While police declined to release West's name, they did confirm that a 31-year-old man had been arrested on suspicion of assault after an incident at a nightclub, and later released without charge.

The London Paper blog reports that the photographer claims he suffered a cut face and bruising after West pushed his camera into his face and shouted, "Get the f***ing camera off him."

Kanye West's camp did not comment on the incident.

16 November 2008

Metis Nation - Saskatchewan (MNS) and Former MNS Provincial Secretary Ralph Kennedy


Former MNS official goes to jail for election fraud

by Betty Ann Adam

As originally published: Regina Leader-Post
November 6, 2008


SASKATOON - A former elected official with the Metis Nation of Saskatchewan who committed fraud in the organization's 2004 election was sentenced Wednesday to a year in jail.

Ralph Kennedy, 55, admitted in Court of Queen's Bench in Battleford that he was present when a ballot box was filled with falsified ballots.

"The whole election was a complete shambles," Crown prosecutor Paul Goldstein said in an interview.

Kennedy was the incumbent regional director in the North Battleford area but ran in the 2004 election for the higher ranking position of provincial secretary.

Eight other people have previously pleaded guilty to fraud in connection with the election, which was not recognized by the federal or provincial governments. Each of them was sentenced to one-year conditional sentences and three years of probation, during which they may not run for elected office in the MNS.

Another election, run by an independent body appointed by government, was held last year. Robert Doucette was elected president.

Still awaiting trial on fraud and conspiracy charges are the former president, Dwayne Roth, and two other former officials, Lyle Lee and Brian Amyotte.

"The Bernankes of the World" and "the Welfare Queens of Wall Street"


The Welfare Queens of Wall Street

by Michael Shermer

As originally posted on: Skepticblog
October 24, 2008


Like millions of Americans who invested their retirement accounts in the stock market, I was relieved that the mere suggestion of a governmental bailout of $85 billion for the insurance giant AIG reversed the market arrow up for two days. Relief turned to despair the next two trading sessions, however, until Washington bureaucrats promised another $700 billion for the financial industry in general, leading to another couple of happy trading days and sleep-filled nights. When the plan was scuttled the market crashed again, until it was finally passed, at which point I thought we were headed for greener pastures. Alas, it’s been red-filled days on the iPhone stock ticker ever since. (And all of this market anguish and elation happened before Congress approved the allocation of even a single dollar. That’s the mind of the market for you — it is as much psychology as economics.)

But then it dawned on me: since when is the government in the business of protecting corporations from self-inflicted high-risk losses? The whole point of capitalism is risk taking to make a profit. Low risk taking typically results in slow and steady growth, whereas high risk taking historically produces both high profits and steep losses. By entering the business of risk protection, the government is sending a clear signal to the market: don’t worry about taking big risks with your own and investors’ money; we’ll bail you out. In profits we’re capitalists, in losses we’re socialists.

Welcome to the Welfare Queens of Wall Street. This is corporate welfare, and once the $700 billion are allocated every employee of all the corporations receiving our money will be on the dole. (Don’t believe the caveats that this is a one-time fix for a once-in-a-lifetime catastrophe — precedence is everything in government handouts, and nearly every government program began as an emergency fix.)

The CEOs and COOs of AIG and all the other Wall Street financial giants in receipt of this corporate welfare will be welfare queens. And like the welfare queens during the reform movement of the 1990s, they should all be put on a very public welfare-to-work program in which their salaries (I recommend that they be paid minimum wage to start) are tethered directly to the amount of money paid back — with interest — to the people who earned the money in the first place (us taxpayers). The corporate leaders could be even be featured in a new Fortune 500 list, ranked by how much of our money they have returned.

Contrast the Bernanke/Bush plan with the actions of billionaire investor Warren Buffet, who put his money where the bureaucrat’s mouth is by committing $5 billion of his company’s assets in Goldman Sachs stocks. This investment gave the company’s stock a bump of nearly 20 percent in three days of trading, and boosted investor confidence in the market as a whole. This is different from what the feds did in two important ways.

One, the $5 billion is Buffet’s property and as such he can do whatever he wants with it. Two, we are confident that one of the greatest investors in history is basing his risk assessment on sound fiscal reasoning. Contrast this with Ben Bernanke’s comments to Congress, in which he called the $700 billion “not an expenditure, it is an acquisition of assets.” No it isn’t. You cannot acquire assets with other people’s money that you’ve confiscated without their permission. That’s called theft. When Warren Buffet invested in Goldman Sachs he was doing so in order to make a profit for his company. That’s called investment. It is fully moral because it is his money and his risk. You can voluntarily join Buffet in the risk by purchasing stocks in Goldman Sachs (or any of Buffet’s other corporate holdings), but Warren Buffet will never compel you to contribute to his holdings.

A short lesson in economic civics: the primary job of government is to protect our private property from being plundered by foreign powers and domestic criminals (through the military and the police respectively), to resolve disputes over property (through the courts), and to protect our civil liberties (another form of property) by enforcing the Constitution and Bill of Rights (through legislation). The government does not produce property, so in order to pay for these services (military, police, courts, legislature) it taxes us. According to the Oxford English Dictionary, a tax is “a compulsory contribution to the support of government”. A “compulsory contribution” is an oxymoron. It is compulsory confiscation, and we are all about to have $700 billion confiscated from us. For what? For protection from foreign plunder or domestic crimes against our property? No. For resolving property disputes? No. For defending our Constitutional rights and civil liberties. No. For covering the losses of corporations suffering from taking undue risks? Yes.

So, we are all about to have $700 billion confiscated from us in order to buy homes and mortgages (and the financial instruments tied to them) that are so worthless that even our most stable and endowed financial institutions could not retain their value. At least Bernanke recognizes the risk, as he told Congress: “That does expose the taxpayer to significant risk, there’s no question about it.”

Behavioral economists have demonstrated experimentally and experientially that humans are normally very risk averse. Specifically, the research shows that losses hurt twice as much as gains feel good. That is, in order to get someone to invest their hard-earned money you have to convince them that the potential gains are twice as much as the possible losses.

Why didn’t risk aversion work in the housing industry? Two reasons: short term thinking and reduced risk signals. First, potential home buyers and investors mistakenly assumed that the increasing trend line in housing prices would continue unabated indefinitely. Two, loan officers and their financial institutions intentionally and deceptively reduced the normal risk signals sent to potential customers in hopes that the artificial bubble would not burst. It did, and here we are.

Like everyone else, my emotional brain would love it if the government bailout program drives the market back up and my retirement account recovers. But that’s just greed and short-term thinking on my part. My rational brain knows that such a bailout program sends the wrong risk signals to the market. Why? Because the government is not in the business of risk management because only the people who produce the wealth can properly assess how best to risk it in future investments.

The Buffets of the world can do that. The Bernankes of the world cannot.

15 November 2008

Polish Sejm Deputy Artur Gorski


Polish lawmaker disowned after slamming Barack Obama

As originally reported: Herald Sun
November 11, 2008


POLISH President Lech Kaczynski disowned a lawmaker from his right-wing party who called US president-elect Barack Obama "a black crypto-communist".

Mr Kaczynski said that Artur Gorski's remarks were "astonishing, unacceptable and racist".

"These are the kind of highly odd views that this member of parliament is well known for. Clearly neither I, nor the vast majority of the party, share views of this sort," he said.

During a parliamentary session last Thursday, the day after Senator Obama's election victory, Mr Gorski had called him a "black crypto-communist", and a "naive individual whose election must delight al-Qaeda".

Senator Obama "is a disaster, it is the end of the white man's civilisation", he said.

Mr Gorski, 38, is a member of the conservative Law and Justice (PiS) party, which was founded by the president and his twin brother Jaroslaw Kaczynski, a former prime minister who is still at the helm of the movement.

Facing a media storm, Mr Gorski played down his remarks overnight but was unapologetic.

"Some of my language could indeed have been open to interpretation, but from my point of view it can't be considered racist," Mr Gorski was quoted as saying by Poland's PAP news agency.

"I deeply regret that my remarks have been taken the wrong way by the American ambassador, our foreign ministry and the president," he said.

Earlier, Poland's foreign ministry had issued a rare statement on Mr Gorski's remarks.

The ministry said that it did not make a habit of commenting on the views of lawmakers because they had a right to unhindered freedom of speech.

"This time, however, we feel that we have a duty, as the department responsible for Poland's external relations, to express disapproval," it said.

Yesterday, Joachim Brudzinski, a senior PiS figure and close ally of Jaroslaw Kaczynski had also distanced the party from Mr Gorski.

Mr Brudzinski said PiS had sent the US embassy in Warsaw "a clarification, apologies and a clear declaration that the lawmkers's point of view was not that of the party".

"We congratulate the president-elect, we congratulate the American people and we consider this choice and this presidency good for Poland," he said.

The foreign ministry said it planned to take up Mr Gorski's remarks with the parliamentary ethics commission.

Mr Gorski has been in the spotlight before.

In 2006 he was among a group of lawmakers who filed a resolution in parliament calling for Jesus Christ to be proclaimed king of this overwhelmingly Catholic republic.

The bill was not passed and the move was ridiculed by Poland's senior Catholic bishops, who said members of parliament should stick to politics.

"The Big Banks" and "the Global Monetarist Regime"


How to save the U.S. Economy

by Richard C. Cook

The following essay is reprinted from Michael (September - October 2008), pp. 2-3.


The crashing stock market has given its verdict. The financial rescue plan currently being implemented by the U.S. Treasury Department and the Federal Reserve System will fail to revitalize the producing economy, even with continued interest rate cuts. This is because the banking system is essentially a supply-side, trickle-down mechanism with a currency based on a pyramid of bank lending and debt. All the current plans being suggested by economists and others to save the financial system by varying degrees of tinkering are useless. Similarly useless is the pumping in of credit or liquidity by Treasury or the Federal Reserve because it is no more than new debt to roll over old debt.

The cause of the financial failure is that the producing and consumer economy is “maxed out” and is unable to repay existing loans much less new ones. This is because purchasing power in the U.S. has collapsed.

Purchasing power has collapsed not only because we have outsourced our industry abroad and allowed our infrastructure to crumble, but also because of structural defects identified decades ago by C.H. Douglas and John Maynard Keynes. These defects occur due to the need for retained earnings (i.e. savings) to overcome the Law of Diminishing Returns. This leads to insufficient aggregate demand; i.e., the gap between prices and purchasing power that is endemic in an industrial economy.

The problem is not the collapse of the stock market which simply reflects the deflation of the bubble economy. The problem is the oncoming recession/depression caused by the absence of an economic engine to generate new producing power.

Keynesian plans for top-down creation of jobs by government deficit spending has never worked and has always ended in an attempt by the government to inflate its way out of debt. Everything being suggested by the Obama/McCain campaigns is based on the failed Keynesian formula.

Still, the gap (in the purchasing power) has been filled, except it has been filled by debt, by consumer borrowing, and by the hundreds of different kinds of exotic debt instruments dreamed up by Wall Street firms since Reagan took office in the 1980s. This debt pyramid is what is crashing today.

And behind all the exoticism is the debt-based monetary system run by the banks who own the Federal Reserve, because it is these banks that provided the leverage for it all to happen... Just remember, it’s the big banks that are really the ones behind the bailouts. They are the ones who call the shots with the Bush administration and the leadership of both the Republican and Democratic parties.

And what is a real solution? It’s a dividend-based economy, as I have written many times, and as the Social Credit movement in Great Britain, Canada, Australia, and New Zealand have known for decades... Among many other benefits, we would have a rebirth of local and regional economies as well as family farming, all of which the banks, under the global monetarist regime, have wiped out.

Richard C. Cook

14 November 2008

American International Group, Inc. (AIG)


Another AIG Resort 'Junket': Top Execs Caught on Tape

KNXV Discovers $343,000 Secret Gathering, AIG Signs and Logos Hidden

by Brian Ross and Joseph Rhee

As originally posted: ABC News
November 10, 2008


Even as the company was pleading the federal government for another $40 billion dollars in loans, AIG sent top executives to a secret gathering at a luxury resort in Phoenix last week.

Reporters for abc15.com (KNXV) caught the AIG executives on hidden cameras poolside and leaving the spa at the Pointe Hilton Squaw Peak Resort, despite apparent efforts by the company to disguise its involvement.

"AIG made significant efforts to disguise the conference, making sure there were no AIG logos or signs anywhere on the property," KNXV reported.

(click here to see the full KNXV report)

A hotel employee told KNXV reporter Josh Bernstein, "We can't even say the word [AIG]."

A company spokesperson, Nick Ashooh, confirmed AIG instructed the hotel to make sure there were no AIG signs or mention of the company by staff.

"We're trying to avoid confrontation, keep our profile low," said Ashooh. "Some of our employees have been harassed."

Click here to read AIG's full response.

"What do they have to hide," asked Congressman Elijah Cummings (D-MD) who said he had been promised by AIG CEO Edward Liddy that the company would stop such "junkets."

"They came to us and said they were drowning and needed help. A person who is drowning doesn't jump up and start partying," said Congressman Cummings.

Cummings said Liddy should resign as AIG CEO.

The AIG spokesman said Cummings "was mistaken" about the nature of the Phoenix event.

"It's terrible," said former AIG chairman Hank Greenberg. "I don't think the left hand knows what the right hand is doing there."

AIG came under fire last month when Congressional investigators revealed its executives attended a seminar for independent insurance agents at another luxury resort, in Southern California.

The AIG spokesman said the meeting in Phoenix was for independent financial advisors and "was the kind of thing we have to do to run our business."

Company officials confirmed the company spent an estimated $343,000 to sponsor the 2008 Asset Management Conference. A spokesperson said much of the cost would be recouped from product sponsors at the conference.

KNXV said the president of AIG unit Royal Alliance Associates, Art Tambaro, stayed in a two-story Casita suite and worked out at the spa while others participated in seminars.

In a written statement, he said "We take very seriously our commitment to aggressively manage meeting costs." He said financial planners were charged a registration fee and for their travel.

A spokesman said the rooms at the luxury resort were made available at a discount rate of $189 a night.

The reports of the resort gathering came on the same day the U.S. Treasury announced it would invest $40 billion in AIG to bring the amount the federal government has put up to prevent the troubled insurance company from declaring bankruptcy to $150 billion.

"This action was necessary to maintain the stability of our financial system," said Neel Kashkari, who heads the government's bailout program.

"In return," said Kashkari in a speech today, "AIG must comply with stringent limitations on executive compensation for its top executives, gold parachutes, its bonus pool, corporate expenses and lobbying."

In addition to Roth and Tambaro, the AIG executives who spent last week at the Phoenix resort, according to KNXV, were Mark Schlafly, president and CEO, FSC Securities' Gary Bender, senior vice president, Investment Advisory Services; and Stuart Rogers, senior vice president.

13 November 2008

The European Union (EU)


EU wants to ban 'sexist' TV commercials

Adverts which use sex to sell or promote gender stereotypes could be banned by the EU.

by Chris Irvine

As originally posted on: Telegraph.co.uk
September 5, 2008


MEPs want TV regulators in the EU to set guidelines which would see the end of anything deemed to portray women as sex objects or reinforce gender stereotypes.

This could potentially mean an end to attractive women advertising perfume, housewives in the kitchen or men doing DIY.

Such classic adverts as the Diet Coke commercial featuring the bare-chested builder, or Wonderbra's "Hello Boys" featuring model Eva Herzigova would have been banned.

The new rules come in a report by the EU's women's rights committee.

Swedish MEP Eva-Britt Svensson urged Britain and other members to use existing equality, sexism and discrimination laws to control advertising.

She wants regulatory bodies set up to monitor ads and introduce a "zero-tolerance" policy against "sexist insults or degrading images".

Ms Svensson said: "Gender stereotyping in advertising straitjackets women, men, girls and boys by restricting individuals to predetermined and artificial roles that are often degrading, humiliating and dumbed down for both sexes."

She added: "Gender stereotyping in advertising is one of several factors that have a big influence in efforts to make society more gender equal.

"When women and men are portrayed in a stereotypical way the consequence may be that it becomes difficult in other contexts to see women and men's resources and abilities."

The Advertising Standards Authority however had said there are already checks in place to prevent "discriminatory or harmful" material.

A spokesman said: "Although the ASA supports the overall objectives of the report... the approach suggested is inflexible and impractical."

12 November 2008

Former Newfoundland and Labrador Provincial House Assembly Member Ernie McLean


Claims reveal dirty laundry

McLean charged for entertainment, golf and laundering underwear in six-month, $64-K spree

by Bob Antle

As originally posted: The Telegram
September 10, 2008


In early 2003, Lake Melville Liberal MHA Ernie McLean signalled that he would retire from provincial politics when voters went to the polls that October.

Because he represented a Labrador district, McLean had one of the highest spending limits for his constituency allowance — $55,600 in 2003-04, not including HST.

McLean served just six months that fiscal year, but spent every dime of the annual allotment.

Many of McLean’s constituency allowance claims paid for expenses like airfare between his district and St. John’s, and car rentals and hotels when he was in the capital city.

But other claims saw McLean reimbursed for a variety of more curious activities — from restaurant meals in Toronto and Kitchener, Ont., to a dozen claims made at golf courses around the province and further afield, to renting a U-Haul for a one-way trip to Goose Bay from St. John’s as his term expired.

McLean also charged for dozens of restaurant meals and other entertainment expenses during that six-month time frame.

Taxpayers paid for everything from laundering McLean’s underwear to buying caribou jerky, bologna and salami.

McLean is currently the deputy mayor of North West River, and is a vice-president with the Combined Councils of Labrador.

The Telegram left three messages on McLean’s home phone voice-mail beginning on Wednesday this week, and sent e-mails to the North West River town council and Combined Councils seeking comment from the former MHA.

None of those messages were returned.

McLean was reimbursed for more than $64,000 in constituency claims incurred during the 2003-04 fiscal year. Another $9,000 in claims were included in the package provided to The Telegram, but appear to be for expenses dating back to the previous fiscal year.

On the very first day of the 2003-04 fiscal year — April 1 — McLean claimed a “discretionary” amount of $5,500. At the time, MHAs were allowed to claim $5,500 per year from their constituency fund, tax-free, without receipts. McLean claimed his total yearly amount on day one.

McLean or his assistant charged more than $2,500 for in excess of 50 food, beverage or entertainment claims during the six-month period — roughly two per week. The claims range from a $9.49 bill at Guv’nor Pub in St. John’s to a $280.80 charge at Mulligan’s Pub in Happy Valley-Goose Bay.

That doesn’t include meals and entertainment included as part of hotel bills, or receipts claimed from golf courses.

McLean’s constituency account contained a dozen receipts from golf courses.

Two of those claims were made the same day at the Royal Oak Golf Club in Victoria, B.C. — “home of the famous nine and dine,” according to its website. McLean was attending a legislative conference in Victoria at the time.

His constituency allowance contained 10 other receipts at golf courses around Newfoundland and Labrador.

There was one claim for Clovelly Golf Course in St. John’s, one for Grande Meadows Golf Course in Frenchman’s Cove, one for Terra Nova Park Lodge, two for Harmon Seaside Links in Stephenville, and five for Amaruk Golf and Sports Club in Happy Valley-Goose Bay.

McLean also claimed for restaurant meals, taxis, and a car rental in Toronto and Kitchener, Ont.

There is no record of McLean claiming a flight to Ontario, however, and no indication of how the trip involved constituency business.

When McLean travelled to British Columbia in July 2003 for a parliamentary conference, he flew executive class. Cost of ticket: $3,007. A Tory MHA managed to find a flight to the same conference for $1,252.

During his week in Victoria, McLean charged taxpayers a $111.28 claim for laundering shirts, briefs, socks, trousers and shorts.

As the October election approached, McLean hired a 14-foot U-Haul truck for a one-way “U-Move” to Goose Bay. He charged taxpayers the rental cost of $1,531. He also filed for gas expenses at stations across the island and in Labrador, along with the $774 cost of shipping the U-Haul truck on the coastal Labrador ferry service.

A year ago, The Telegram made a request under provincial freedom of information laws for all MHA constituency allowance spending for the 2003-04 fiscal year.

The request encompassed claims filed by more than 60 MHAs. The legislature provided thousands of pages of records to The Telegram last week.

Prior to October 2007, constituency spending by provincial politicians was shielded from public disclosure.

A law change recommended by the Green Report last year erased that exemption.

The American Automotive Industry


Let's Have Public Hearings On Auto Industry Bailout

by David Kiley

As originally posted: BusinessWeek
November 4, 2008


If the U.S. Big Three automakers want bailout help from the Federal government they should submit to at least an afternoon of new public hearings.

Automakers were heard from in September on the subject of attaching the $25 billion loan program to a continuing resolution for the Federal budget. That legislation, which passed, kicked off the process for such loans to move ahead—-loans that were part of last year’s energy legislation. The money is meant to go to help the companies re-tool factories and offset some research and development costs associated with more fuel efficient vehicles. The key is that all the loans must be attached to offset costs of vehicles that get 25% better fuel economy than the vehicle segment average. In other words, if Ford wants loan money to offset the costs of bringing its Fiesta to market, the car will have to exceed the average of the vehicles in the segment by 25% at the time the application is made.

The Department of Energy is finalizing the parameters of how the companies will apply for the loans. Soon after the DOE issues the language, there will be a 60-day comment period for the automakers and other interested parties to say whether it is fair and proper. The rules will be finalized after that period and the applications commence.

The Michigan Congressional delegation, as we have reported before, is pushing all sorts of governmental buttons to try and get General Motors, Ford and Chrysler the money faster, and to keep the parameters of getting the funds loose enough so that the companies can actually use the money to help their dire liquidity problems.

General Motors specifically wants the government money to help it acquire Chrysler. GM’s management thinks that taking over Chrysler is the secret sauce for the automaker getting through the Recession.

As I have previously reported, one of the measures on the table is amending the September legislation so that loans might be granted to offset money the companies have already spent on r&d to bring the more fuel efficient vehicles to market. Some Congressional members argued against that idea in the original legislation. But some lawmakers are trying to re-open it.

The key to making any of this happen is a three day lame-duck session of Congress later this month.

I think that there is enough concern about the future of the auto industry, the proper role of government in propping it up and the dubious insistence by GM that it must acquire Chrysler to survive that we ought to have at least an afternoon of public hearings on the issue.

I would like to hear from the following: GM CEO G. Richard Wagoner Jr., Ford CEO Alan Mulally, Chrysler CEO Robert Nardelli and Cerberus Capital (Chrysler owner) chairman Stephen Feinberg. Also, there should be at least three credible outside voices. For example, I’d like to hear from author and former Wall Street auto industry analyst Maryann Keller, former Merrill Lynch auto analyst and current partner in Casesa Shapiro LLC John Casesa, AutoNation CEO Mike Jackson and United Auto Workers Union chief Ron Gettelfinger.

The hearings could be held in advance of the lame-duck session in a committee hearing.

Among the questions I would ask:

Mr. Wagoner: You have been restructuring GM either as CEO or a senior staffer since Bush 41 was president. Tell us why you think taking over Chrysler and all its problems and issues is the answer to your survival, and why we should help fund a deal that the banks don’t believe in enough to come up with the funding?

Mr. Nardelli: Have you been seeking help from the government in order to keep Chrysler operating independently? Or are you here just to augment Mr. Wagoner’s argument that GM must acquire Chrysler? If so, why do you not wish to have our help to keep Chrysler going as an independent venture?

Mr. Feinberg: Are you interested in operating an auto company for the next ten years? If not, why should we help you, a hedge fund, salvage what has become a troublesome investment for you? Mr. Feinberg, will you detail for us the executive compensation that will be paid out if this merger goes through, and how much of this loan money is earmarked for huge exit packages to executives?

Mr. Mulally: Are you interested in buying Chrysler? If not, why not? Do you think the government should have a role in helping GM do this deal, or should we only concentrate on helping Chrysler stay independent assuming its ownership and management are still interested in being in the car business?

Mr. Casesa: Can you take us through what would happen to the auto industry as a whole if Chrysler was to file Chapter 11? Would there be a dire domino effect throughout the auto and supplier industry? Why aren't banks and hedge funds stepping up to fund this?

Ms. Keller: Do you think this combination of GM and Chrysler is a good idea? Do you think GM’s management is up to making this work?

Mr. Gettelfinger: You stand to lose some 25,000 union jobs if we proceed the way Mr. Wagoner, Mr. Feinberg and Mr. Nardelli would have us proceed. Can you offer some ideas about how we could help Chrysler stay independent? Do you think that’s a desirable outcome? And what is the union willing to do to help the industry through this Recession if we don’t help GM and Chrysler merge?

Mr. Jackson: You have run a car company and now run a major dealer company. I don't care of GM and Chrysler find a way to merge. I do care if the government plays investment banker to the deal. Do you think your government should play this role? Do you think the situation is so unique? Do you think that the management of GM is up to making this work in a way where the tax-payer would get their money back? Would you put your own money behind a GM-Chrysler merger?

11 November 2008

The American Automotive Industry


Don't bail out US automakers

by Michael O'Hare

As originally posted on: The Reality-Based Community
November 9, 2008


General Motors proposes that the public lend it some dozens of billions of dollars more, and Obama seems to think it's a good idea. Sad to see the new guy pooch a big decision so early.

Detroit is certainly hurting, and the people who live there and near other plants deserve help, perhaps with bus tickets. But these companies have amply demonstrated that their management is pretty good at making twentieth century cars in a protected environment, but profoundly suck at everything since except, well, sucking up taxpayer money and destroying value. Why in the world would one prop up such an enterprise; if it's a loan, why would one expect it to ever be paid back? We will wind up with a nationalized car manufacturer, and if you like Alitalia, you'll love US National Motors, a basket case for the ages.

Protecting an enterprise from its deep-seated inability to produce competitively and to engage with the future has never done anything but put off the inevitable, and very expensively. Toyota and Honda (or a competent new team with tough investors), will be happy to recycle the capital of GM into a working car company like their existing US operations. Or into scrap, as reality indicates. The workers need to be taken care of humanely, as their employer has not, trashing their retirement and medical insurance, but they don't need to be made permanent charity cases, who pretend to create value in a government sheltered workhouse whose every day of operation is a mendacious pretense that the real losses haven't already occured. They have: US car companies misused and wasted the resources society entrusted them with and what's left is a negative sum. The recovery will proceed much more successfully if we don't start by lying to ourselves, never mind wasting money pounding the chests of corpses.

Big Oil and the United States Interior Department Minerals Management Service (MMS)


Oil companies gave sex, drinks, gifts to federal overseers

by Greg Gordon

As originally posted: McClatchy
September 10, 2008


WASHINGTON — Interior Department officials, while handling billions of dollars in oil and gas royalty payments, engaged in illicit sex with industry employees and accepted meals, drinks, ski junkets and golf outings from major oil companies, internal investigators reported Wednesday.

Interior Department Inspector General Earl Devaney's release of three reports, which stem from a $5 million investigation dating to 2005, implicated at least 19 current and former employees of the Minerals Management Service in unethical relationships with industry, frolics that included marijuana and cocaine use.

The reports raised new concerns about the management of programs that collect $8 billion in annual revenue from offshore and onshore mineral leases. Democrats seized on the report to bolster their efforts to counter growing pressure to open up more areas to oil drilling.

"The allegations of illicit and unethical behavior detailed in the inspector general's report are directly related to the energy debate taking place in the Congress this week," House Speaker Nancy Pelosi of California said. "Little did we know how cozy the relationship between Big Oil and the administration's regulators have been."

Brandishing a copy of the inspector general's report, Sen. Bill Nelson, D-Fla., said Wednesday "It's bad enough that the government employees who oversee offshore oil drilling are literally and figuratively in bed with Big Oil, the rest of the U.S. government doesn't need to jump in bed with them."

Devaney said that his investigators had "discovered a culture of substance abuse and promiscuity'' in the recently created "Royalty in Kind'' program, in which the government forgoes royalties and takes a share of the pumped oil and gas for resale. Several of the program's staffers, based in Washington and Denver, "admitted to illegal drug use as well as illicit sexual encounters.''

From 2002 to 2006, nearly a third of the RIK staff "socialized with, and received a wide array of gifts and gratuities from, oil and gas companies with whom (the program) was conducting official business,'' Devaney said in a memo to Interior Secretary Dirk Kempthorne. While the dollar amounts of the gifts were "not enormous,'' he wrote, the gifts came with "prodigious frequency,'' with two RIK marketers accepting gifts and gratuities on at least 135 occasions.

The investigators found that 19 RIK employees had accepted gifts from prohibited sources in the oil and gas industry, and that most had taken gifts exceeding the agency thresholds of $20 in value per gift or $50 in value per year.

About half the employees have retired and are beyond the reach of disciplinary action, but Devaney said that the misconduct was so serious it might warrant the removal of some of nine current employees cited in the report.

Danielle Brian, the executive director of the Project on Government Oversight, a nonpartisan watchdog group, said that "given the billions of dollars at stake, and number of people involved, this is easily the worst instance of government misconduct that POGO has seen."

New Mexico Democratic Sen. Jeff Bingaman, the chairman of the Senate Energy Committee, called the reports "extremely troubling . . . especially given the potential for expanded domestic drilling.''

Rep. Nick Rahall, D-W.Va., the chairman of the House Natural Resources Committee, said the report on the RIK unit's "outlandish'' behavior "reads like a script from a television miniseries — and one that cannot air during family viewing time.''

Officials in the Interior Department and Minerals Management Service couldn't be reached for comment.

The reports said that the RIK unit's former Denver office director, Gregory Smith, encouraged his staff to develop close relationships with oil company officials so they could learn techniques for marketing the oil.

Separate investigative reports detailed evidence against Smith and Lucy Dennet, associate director of the Minerals Revenue Management office. They accuse Smith of having sex with two subordinates and with improperly accepting $30,000 from a private company for marketing its environmental and engineering services to oil and gas companies.

Dennet and an aide, Jimmy Mayberry, were accused of creating a lucrative contract to benefit Mayberry upon his retirement.

Devaney said that evidence against Smith and Dennet was referred to the Justice Department's Public Integrity Section, which declined to prosecute.

One report said Smith told investigators that he'd approved employees' attendance at industry events and their acceptance of meals and drinks.

Chevron, Shell, Gary-Williams Energy Corp. and Hess Corp. gave gifts to RIK staffers although they conducted business with the unit, either producing oil or buying it. Last May, investigators found that RIK staffers sometimes decided which company should win an oil contract in informal discussions among themselves and that dollar values of 118 of the sale contracts were later revised downward, costing taxpayers more than $4 million.

The investigators detailed gifts accepted by nine of the employees. They said that Stacy Leyshon, a supervisory minerals revenue specialist, got $10,450 in cash awards from the Minerals Management Service for meritorious service from 2002 to 2006, although her name showed up 45 times on Chevron's expense reports during those years and she got 29 gifts from Shell and Gary-Williams Energy.

In 2004 and 2005, Leyshon attended Gary-Williams' annual customer appreciation golf tournament in Colorado. Customarily, investigators said, the tournament included breakfast, lunch and dinner, a gift such as a golf bag or luggage and a ticket to a professional golf event or Colorado Rockies baseball game, the report said.

Leyshon at first told investigators that she made sure her gifts were under the $20 limit and didn't disclose them on her annual financial disclosure report because they didn't fall within reporting requirements, a report said. Later, it said, she admitted that she probably exceeded the gift threshold.

The investigators said that most industry representatives admitted entertaining RIK employees but denied that the gratuities were provided in exchange for official action. Several, however, rejected the assertion that federal employees needed to participate in industry events to perform their duties effectively.

One industry official, they wrote, said that no business was conducted. "It was about the skiing.''

10 November 2008

Former Detroit Mayor Kwame Kilpatrick


Jail For Guilty Detroit Mayor

As originally posted on: Corruption Chronicles: A Judicial Watch Blog
September 4, 2008


A major U.S. city will finally get rid of its criminally corrupt thug of a mayor whose felonious antics have cost taxpayers millions of dollars and brought shame to the long ailing municipality.

Facing an embarrassing criminal trial and nearly a dozen felony charges, Detroit’s scandal-plagued mayor, Kwame Kilpatrick, finally admitted he’s a felon for obstructing justice by lying under oath at a whistleblower trial. Up until today, the self-described “Hip Hop Mayor” had denied any wrongdoing and ignored calls to resign.

With detrimental evidence mounting against him by the day and facing removal by Michigan’s governor, Kilpatrick evidently decided to admit some of his crimes in order to avoid the much larger prison sentence attached to a jury conviction on the additional counts. He will serve four months in jail, five years probation, pay $1 million in restitution and turn over his state pension to the city of Detroit. During his five-year probation period the disgraced lawmaker, who is the son of Michigan Congresswoman Carolyn Cheeks, will not run for office.

The once rising star in Michigan’s Democratic circles has been much like a ripe volcano on the verge of eruption since taking office in 2002. He spent a great part of his first tenure partying with strippers at the mayor’s mansion and got busted for charging hundreds of thousands of dollars on his city-issued credit card for personal travel, meals and entertainment. He also used $25,000 of city funds to get his wife a fancy sports utility vehicle at a time when Detroit was in a deep financial crisis and thousands of city jobs were being cut.

Then Kilpatrick lied under oath at a police whistleblower trial to hide an extramarital affair with a city staffer. The cops had been wrongfully fired for asking questions that could have exposed the undercover romance and Kilpatrick ended up orchestrating a secret city deal to pay the officers nearly $9 million for their troubles. Details of the scandalous settlement were only made public after a local newspaper filed a public records lawsuit.

The self-destructive politician subsequently got charged with two additional felonies for assaulting a sheriff’s detective trying to serve a subpoena on one of his shady friends. The irate mayor pushed the detective and attacked him and his partner with profanity and racial remarks. Kilpatrick then became the first mayor in Detroit’s 300-plus years to spend the night in a jail cell for violating the bond conditions in his perjury case by traveling to Canada. He capped that by violating the terms of the assault bond when he spent time with a key witness to the incident.

Incredibly, Democratic presidential candidate Barack Obama has praised Kilpatrick by calling him a “great mayor” who has done an “outstanding job.” Early in Kilpatrick’s tumultuous administration Obama assured that his friend would do “astounding things for many years to come.” The Hip-Hop mayor with the attention-grabbing diamond stud earring certainly came through.

09 November 2008

Elected Politicians and Representative Democracy


If We Quit Voting

by Frank Chodorov

The following essay is reprinted from analysis (July 1945).


New York in midsummer is measurably more miserable than any other place in this world, and should be comparable to the world for which all planners are headed. Why New Yorkers, otherwise sane, should choose to parboil their innards in a political campaign during this time of the year is a question that comes under the head of man's inscrutable propensity for self-punishment. And if a fellow elects to let the whole thing pass him by, some socially conscious energumen is bound to sweat him with a lecture on civic duty, like the citizeness who came at me.

For twenty-five years my dereliction has been known to my friends and more than one has undertaken to set me straight; out of these arguments came a solid defense for my nonvoting position. So that the lady in question was well parried with practiced retorts. I pointed out, with many instances, that though we have had candidates and platforms and parties and campaigns in abundance, we have had an equivalent plenitude of poverty and crime and war. The regularity with which the perennial promise of “good times” wound up in depression suggested the incompetence of politics in economic affairs. Maybe the good society we have been voting for lay some other way; why not try another fork in the road, the one pointing to individual self-improvement, particularly in acquiring a knowledge of economics? And so on.

There was one question put to me by my charming annoyer which I deftly sidestepped, for the day was sultry and the answer called for some mental effort. The question: “What would happen if we quit voting?”

If you are curious about the result of noneating you come upon the question of why we eat. So, the query put to me by the lady brings up the reason for voting. The theory of government by elected representatives is that these fellows are hired by the voting citizenry to take care of all matters relating to their common interests. However, it is different from ordinary employment in that the representative is not under specific orders, but is given blanket authority to do what he believes desirable for the public welfare in any and all circumstances, subject to constitutional limitations. In all matters relating to public affairs the will of the individual is transferred to the elected agent, whose responsibility is commensurate with the power thus invested in him.

It is this transference of power from voter to elected agents which is the crux of republicanism. The transference is well nigh absolute. Even the constitutional limitations are not so in fact since they can be circumvented by legal devices in the hands of the agents. Except for the tenuous process of impeachment, the mandate is irrevocable. For the abuse or misuse of the mandate the only recourse left to the principals, the people, is to oust the agents at the next election. But, when we oust the rascals do we not, as a matter of course, invite a new crowd? It all adds up to the fact that by voting them out of power, the people put the running of their community life into the hands of a separate group, upon whose wisdom and integrity the fate of the community rests.

All this would change if we quit voting. Such abstinence would be tantamount to this notice to politicians: since we as individuals have decided to look after our affairs, your services are no longer needed. Having assumed social power we must, as individuals, assume social responsibility; provided, of course, the politicians accept their discharge. The job of running the community would fall on each and all of us. We might hire an expert to tell us about the most improved firefighting apparatus, or a manager to look after cleaning the streets, or an engineer to build us a bridge; but the final decision, particularly in the matter of raising funds to defray costs, would rest with the town-hall meeting. The hired specialists would have no authority other than that necessary for the performance of their contractual duties; coercive power, which is the essence of political authority, would be exercised, if necessary, only by the committee of the whole.

There is some warrant for the belief that a better social order would ensue when the individual is responsible for it and, therefore, responsive to its needs. He no longer has the law or the lawmakers to cover his sins of omission; need of the neighbors' good opinion will be sufficient compulsion for jury duty and no loopholes in a draft law, no recourse to “political pull,” will be possible when danger to his community calls him to arms. In his private affairs, the now sovereign individual will have to meet the dictum of the marketplace: produce or you do not eat; no law will help you. In his public behavior he must be decent or suffer the sentence of social ostracism, with no recourse to legal exoneration. From a law-abiding citizen he will be transmuted into a self-respecting man.

Would chaos result? No, there would be order, without law to disturb it. But, let us define chaos. Is it not disharmony resulting from social friction? When we trace social friction to its source do we not find that it seminates in a feeling of unwarranted hurt, or injustice? Then chaos is a social condition in which injustice obtains. Now, when one man may take, by law, what another man has put his labor into, we have injustice of the keenest kind, for the denial of a man's right to possess and enjoy what he produces is akin to a denial of life. Yet the power to confiscate property is the first business of politics. We see how this is so in the matter of taxation; but greater by far is the amount of property confiscated by monopolies, all of which are founded in law.

While this economic basis of injustice has been lost in our adjustment to it, the resulting friction is quite evident. Most of us are poor in spite of our constant effort and known ability to produce an abundance; the incongruity is aggravated by a feeling of hopelessness. But the keenest hurt arises from the thought that the wealth we see about us is somehow ours by right of labor, but is not ours by right of law. Resentment, intensified by bewilderment, stirs up a reckless urge to do something about it. We demand justice; we have friction. We have strikes and crimes and bankruptcy and mental unbalances. And we cheat our neighbors, and each seeks for himself a legal privilege to live by another's labor. And we have war. Is this a condition of harmony or of chaos?

In the frontier days of our country there was little law, but much order, for the affairs of the community were in the hands of the citizenry. Although fiction may give an opposite impression, it is a fact that there was less per capita crime to take care of then than there is now when law pervades every turn and minute of our lives. What gave the West its wild and woolly reputation was the glamorous drama of intense community life. Everybody was keenly interested in the hanging of a cattle rustler; it was not done in the calculated quiet of a prison, with the dispatch of a mechanical system. The railriding of a violator of town-hall dicta had to be the business of the town prosecutor, who was everybody. Though the citizen's private musket was seldom used for the protection of life and property, its presence promised swift and positive justice, from which no legal chicanery offered escape, and its loud report announced the dignity of decency. Every crime was committed against the public, not the law, and therefore the public made an ado about it. Mistakes were made, to be sure, for human judgment is ever fallible; but, until the politician came, there was no deliberate malfeasance or misfeasance; until laws came, there were no violations, and the code of human decency made for order.

So, if we should quit voting for parties and candidates, we would individually reassume responsibility for our acts and, therefore, responsibility for the common good. There would be no way of dodging the verdict of the marketplace; we would take back only in proportion to our contribution. Any attempt to profit at the expense of a neighbor or the community would be quickly spotted and as quickly squelched, for everybody would recognize a threat to himself in the slightest indulgence of injustice. Since nobody would have the power to enforce monopoly conditions none would obtain. Order would be maintained by the rules of existence, the natural laws of economics.

That is, if the politicians would permit themselves to be thus ousted from their positions of power and privilege. I doubt it. Remember that the proposal to quit voting is basically revolutionary; it amounts to a shifting of power from one group to another, which is the essence of revolution. As soon as the nonvoting movement got up steam the politicians would most assuredly start a counterrevolution. Measures to enforce voting would be instituted; fines would be imposed for violations, and prison sentences would be meted out to repeaters. It is a necessity for political power, no matter how gained, to have the moral support of public approval, and suffrage is the most efficient scheme for registering it; notice how Hitler, Mussolini, and Stalin insisted on having ballots cast. In any republican government, even ours, only a fraction of the populace votes for the successful candidate, but that fraction is quantitatively impressive; it is this appearance of overwhelming sanction which supports him in the exercise of political power. Without it he would be lost.

Propaganda, too, would bombard this passive resistance to statism; not only that put out by the politicians of all parties— the coalition would be as complete as it would be spontaneous—but also the more effective kind emanating from seemingly disinterested sources. All the monopolists, all the coupon-clipping foundations, all the tax-exempt eleemosynary institutions—in short, all the “respectables”— would join in a howling defense of the status quo. We would be told most emphatically that unless we keep on voting away our power to responsible persons, it would be grabbed by irresponsible ones; tyranny would result. That is probably true, seeing how since the beginning of time men have sought to acquire property without laboring for it. The answer lies, as it always has, in the judicious use of private artillery. On this point a story, apocryphal no doubt, is worth telling. When Napoleon's conquerors were considering what to do with him, a buck-skinned American allowed that a fellow of such parts might be handy in this new country and ought to be invited to come over. As for the possibility of a Napoleonic regime being started in America, the recent revolutionist dismissed it with the remark that the musket with which he shot rabbits could also kill tyrants. There is no substitute for human dignity.

But the argument is rather specious in the light of the fact that every election is a seizure of power. The balloting system has been defined as a battle between opposing forces, each armed with proposals for the public good, for a grant of power to put these proposals into practice. As far as it goes, this definition is correct; but when the successful contestant acquires the grant of power toward what end does he use it? Not theoretically but practically. Does he not, with an eye to the next campaign, and with the citizens' money, go in for purchasing support from pressure groups? Whether it is by catering to a monopoly interest whose campaign contribution is necessary to his purpose, or to a privilege-seeking labor group, or to a hungry army of unemployed or of veterans, the over-the-barrel method of seizing and maintaining political power is standard practice.

This is not, however, an indictment of our election system. It is rather a description of our adjustment to conquest. Going back to beginnings—although the process is still in vogue, as in Manchuria, or more recently in the Baltic states—when a band of freebooters developed an appetite for other people's property they went after it with vim and vigor. Repeated visitations of this nature left the victims breathless, if not lifeless, and propertyless to boot. So, as men do when they have no other choice, they made a compromise. They hired one gang of thieves to protect them from other gangs, and in time the price paid for such protection came to be known as taxation. The tax gatherers settled down in the conquered communities, possibly to make collections certain and regular, and as the years rolled on a blend of cultures and of bloods made of the two classes one nation. But the system of taxation remained after it had lost its original significance; lawyers and professors of economics, by deft circumlocution, turned tribute into “fiscal policy” and clothed it with social good. Nevertheless, the social effect of the system was to keep the citizenry divided into two economic groups: payers and receivers. Those who lived without producing became traditionalized as “servants of the people,” and thus gained ideological support. They further entrenched themselves by acquiring sub-tax-collecting allies; that is, some of their group became landowners, whose collection of rent rested on the law-enforcement powers of the ruling clique, and others were granted subsidies, tariffs, franchises, patent rights, monopoly privileges of one sort or another. This division of spoils between those who wield power and those whose privileges depend on it is succinctly described in the expression, “the state within the state.”

Thus, when we trace our political system to its origin we come to conquest. Tradition, law, and custom have obscured its true nature, but no metamorphosis has taken place; its claws and fangs are still sharp, its appetite as voracious as ever. In the light of history it is not a figure of speech to define politics as the art of seizing power; and its present purpose, as of old, is economic. There is no doubt that men of high purpose will always give of their talents for the common welfare, with no thought of recompense other than the goodwill of the community. But, so long as our taxation system remains, so long as the political means for acquiring economic goods is available, just so long will the spirit of conquest assert itself; for men always seek to satisfy their desires with the least effort. It is interesting to speculate on the kind of campaigns and the type of candidates we would have if taxation were abolished and if, also, the power to dispense privilege vanished. Who would run for office if there were “nothing in it”?

Why should a self-respecting citizen endorse an institution grounded in thievery? For that is what one does when one votes. If it be argued that we must let bygones be bygones, see what we can do toward cleaning up the institution so that it can be used for the maintenance of an orderly existence, the answer is that it cannot be done; we have been voting for one “good government” after another, and what have we got? Perhaps the silliest argument, and yet the one invariably advanced when this succession of failures is pointed out, is that “we must choose the lesser of two evils.” Under what compulsion are we to make such a choice? Why not pass up both of them?

To effectuate the suggested revolution all that is necessary is to stay away from the polls. Unlike other revolutions, it calls for no organization, no violence, no war fund, no leader to sell it out. In the quiet of his conscience each citizen pledges himself, to himself, not to give moral support to an unmoral institution, and on election day he remains at home. That's all. I started my revolution twenty-five years ago and the country is none the worse for it.

Manitoba Lawyer Gisele Champagne


Case 01-06

GISELE RITA CHAMPAGNE
Winnipeg, Manitoba

Called to the Bar
June 25, 1992

Particulars of Charges
Professional Misconduct (2 counts)

  • breach of integrity
  • failure to serve client in a diligent and efficient manner

    Date of Hearing
    September 13, 2001

    Panel
    R.K. Deeley, Q.C. (Chair)
    C.W. Martin
    Dr. C. Wright

    Disposition

    Breach of integrity:

  • fine of $1,000.00
  • costs of $1,000.00

    Failure to serve client in a diligent and efficient manner

  • reprimand
  • practice under supervision of another member approved by the Society for a period of one year

    Counsel
    J.R. Gallagher for The Law Society of Manitoba
    J.R. Wolson, Q.C. for the Member



    Breach of Integrity



    Facts

    In June, 1991, Ms. Champagne completed an application for admission as a student in the bar admission course. She signed the application and declared before a commissioner for oaths that the statements contained in the application were true in every respect. In fact, Ms. Champagne gave false answers to three questions in the application. This was discovered by the Society through inquiries made in 1999.

    While acting for the parents in an application brought by a child welfare agency for an order of permanent guardianship, Ms. Champagne subpoenaed a physician who had treated the mother of the child in the recent past. On the day of the hearing, Ms. Champagne and counsel for the child welfare agency interviewed the physician and received information that was damaging to the mother in that it was evidence of recent psychiatric treatment, of serious psychiatric concerns and of a refusal on the part of the mother to follow medical advice or to take necessary medications. Notwithstanding that the physician's evidence was detrimental to her case, Ms. Champagne called the physician as a witness on the parents' behalf with the result in part that the damaging information came out. At the conclusion of the trial, the presiding judge pronounced a permanent order in favour of the agency without requiring the agency's counsel to make any submission. In his remarks, the presiding judge made reference to the damaging evidence given by the physician. In calling the physician as a witness when she knew that the physician's evidence would be prejudicial to her clients, Ms. Champagne failed to discharge the duty she owed to her clients to serve them in a diligent and efficient manner.

    Decision and Comments

    The Committee accepted her admission to the two charges and on the basis of the information provided, found Ms. Champagne guilty of professional misconduct.

    The panel noted that as a result of the seriousness of the misconduct it had reservations in dealing with the matter on the basis of the joint recommendation submitted by both counsel, but came to the conclusion that the recommendation should be followed in principle. The Committee noted that the offence of giving false answers in her bar admission application involved a serious breach of integrity on the part of Ms. Champagne. It was further noted by the Committee that integrity is fundamental to the legal profession and the panel was concerned that this was a continuing offence in that it did not come to light until discovered by the Society in 1999.

    Penalty

    The Committee imposed the following penalty regarding the two charges:

    Breach of integrity:

  • fine of $1,000.00;
  • costs of $1,000.00;

    Failure to serve client in a diligent and efficient manner:

  • reprimand;
  • practice under supervision of another member approved by the Society for a period of one year.
  • 08 November 2008

    American Political Activist / Media Research Center, Inc. President L. Brent Bozell III


    Bozell said Obama "ran as a Reaganite" and "a fiscal conservative" - less than two weeks after claiming Obama was espousing "socialism"

    Summary: On America's Newsroom, Media Research Center president L. Brent Bozell III claimed that President-elect Barack Obama "ran as a Reaganite" and "won over ... the public as a fiscal conservative." But less than two weeks earlier, Bozell accused Obama of espousing "socialism" throughout the "entirety of the campaign."

    by Tom Allison

    As originally posted on: Media Matters for America
    November 7, 2008


    During the November 7 edition of Fox News' America's Newsroom, Media Research Center president L. Brent Bozell III claimed that President-elect Barack Obama "ran as a Reaganite" and "won over ... the public as a fiscal conservative." But less than two weeks earlier, Bozell accused Obama of espousing "socialism" and advocating "redistribution of wealth" throughout the "entirety of the campaign."

    During America's Newsroom, Bozell told co-anchor Bill Hemmer, "the fascinating thing, Bill, is that Barack Obama ran as a Reaganite and won over the fiscal - the public as a fiscal conservative." Bozell went on to say: "That means that Barack Obama does not have the mandate to enact the left-wing agenda he wants to enact. He didn't run on it, he ran from it."

    However, during the October 27 edition of Fox News' Fox & Friends, Bozell asserted that Obama wasn't "questioned seriously by anyone except for ... the Fox News network," and then added: "But when you go through the entirety of the campaign saying the kind of things that you're saying in the debates, where on, for every question, you've got a redistribution of wealth answer, where you've got socialism, where you've got the government controlling every aspect of life. You don't expect a reporter to ask you, 'Is this socialism?' Because the media don't ask that question."

    From the October 27 edition of Fox News' Fox & Friends:

    BOZELL: This is the arrogance, I think, of the Obama campaign, but it's a well-placed arrogance in the sense that they've gone through this entire campaign without being questioned seriously by anyone except for this news network, the Fox News network, which is why they studiously avoid the Fox News network. But when you go through the entirety of the campaign saying the kind of things that you're saying in the debates, where on, for every question, you've got a redistribution of wealth answer, where you've got socialism, where you've got the government controlling every aspect of life. You don't expect a reporter to ask you, "Is this socialism?" Because the media don't ask that question. Well, some uppity reporter did - and look what happened, they cancelled her. And, by the way, she won't be going to the ball, either.

    From the November 7 edition of Fox News' America's Newsroom:

    BILL HEMMER (co-anchor): Top conservatives met in Virginia yesterday, and they met with Brent Bozell. He hosted that meeting. He's president of the Conservative Victory Committee, and Brent Bozell is with me now. Good morning to you, sir.

    BOZELL: Good morning, Bill, how are you doing?

    HEMMER: I'm doing fine. Who was at the meeting?

    BOZELL: Well, we're not divulging all the names. I can give you some of them. People like Grover Norquist, who runs the Americans for Tax Reform, he's the leader on that front; Leonard Leo, who is the top conservative expert on judicial matters; Tony Perkins, the head of the Family Research Council, probably the most powerful social-conservative organization in America. There are many of those people representing quite a lot of armies. They came together -

    HEMMER: Who have - who have a lot influence, came together, and -

    BOZELL: The - the purpose was to look at the election results and take stock at where we are and where we're going, and there's some fascinating stuff out there that's really not being reported. The conservatives didn't play a role in this campaign. This was a moderate Republican against a liberal - a left-wing Democrat, and the left-wing Democrat beat the moderate Republican. The moderate Republican wing of the party is demolished. In the House and the Congress - in the Congress, in the Senate, and now as a presidential candidate, it's finished. So, now what happens with conservative - conservatives have to reassert their position, and we're gonna take over this country the way we did it with Ronald Reagan.

    HEMMER: You - you have -

    BOZELL: There's a lot of work that needs to be done. But here's the key thing, Bill, that really isn't being reported: Anyone who looks at the exit polls this year will find two fascinating results. Number one, this country remains every bit as center-right as it's been for a generation. And number two -

    HEMMER: You don't think that's changed - you don' think that's changed at all?

    BOZELL: No, it hasn't. Look at the exit polling. The number one issue was the economy, nothing came close. The American people are fiscally conservative, and the fascinating thing, Bill, is that Barack Obama ran as a Reaganite and won over the fiscal - the public as a fiscal conservative. That's what the polling data shows.

    HEMMER: You said there were two things. What was number two?

    BOZELL: Well, number one is that the public is conservative; number two, Barack Obama won as a conservative. That means that Barack Obama does not have the mandate to enact the left-wing agenda he wants to enact. He didn't run on it, he ran from it. So, this is not necessarily bad news for conservatives.

    HEMMER: But what if -

    BOZELL: Yes, the left wing controls everything now -

    HEMMER: - but what if some of these Senate races that still hang in the balance go the Democratic way? That pushes them closer and closer to 60 in the Senate.

    BOZELL: Sure, there's - there's no question -

    HEMMER: Would you consider that a mandate?

    BOZELL: - of the power that they now have in Washington. There's no question. The point is that the American people are still on our side. It becomes our job now to reconnect with the public.

    United States Senator / Senatorial Election Candidate Theodore Stevens (a/k/a Ted Stevens)


    Convicted Felon Seeks Senate Reelection

    October 28, 2008


    Although he was convicted of multiple felony corruption charges this week, the longest serving Republican in the U.S. Senate is going full throttle with his reelection campaign as he fights the “unjust verdict.”

    Serving Alaska in the Senate since 1968, Ted Stevens was confident he’d get acquitted before next week’s election when he demanded a speedy trial but the strategy blew up in his face. Instead, he will appear on the Nov. 4 ballot as a convicted felon facing up to three decades in prison.

    After a month-long trial in Washington D.C., a jury deliberated for only five hours before finding the veteran lawmaker guilty on seven counts of trying to hide hundreds of thousands of dollars—including a major home renovation—in gifts from an oil company seeking lucrative government contracts as well as favorable legislation.

    Before the trial, two major oil company executives and a lobbyist had already pleaded guilty to bribery, conspiracy and federal corruption charges and were cooperating with the vast investigation which focused on Stevens and a handful of prominent Alaska state lawmakers.

    The operators of the huge oil services company called VECO admitted paying nearly half a million dollars in bribes to various Alaska lawmakers. In return the public officials helped VECO obtain tens of millions of dollars in federal contracts as well as legislation favorable to the multi billion-dollar titan company.

    VECO’s founder (Bill Allen) testified at Stevens’ trial that he gave the senator thousands of dollars in gifts, including a massive home renovation that transformed the lawmaker’s Alaska house. Recordings of conversations between Stevens and Allen were also played in court and, in one, the senator tells his friend that they both risked going to jail.

    Stevens is heard saying: "The worst that can happen to us is we run up a bunch of legal fees, and might lose and we might have to pay a fine, might have to serve a little time in jail. I hope to Christ it never gets to that, and I don't think it will."

    Regardless of the evidence and subsequent conviction, Stevens maintains his innocence and asks his constituents to reelect him. The 84-year-old legislator blamed prosecutorial misconduct, including ethical violations, for his conviction and vowed to fight the unjust verdict with every ounce of energy.

    Even if reelected, Stevens can face expulsion in the Senate. He is the fifth U.S. senator to be convicted of a felony. The disgraced club includes Kansas Republican Joseph Burton for taking federal dollars in the early 1900s, Oregon Republican John Mitchell for accepting bribes in 1905, Michigan Republican Truman Newberry for conspiracy in 1920 and Minnesota Republican David Durenberger for abuse of his congressional expense account in 1995.

    07 November 2008

    Ontario Premier Dalton McGuinty



    by "seven star"

    As originally posted on: Democracy of Hypocrisy
    November 4, 2008


    Hey Dalton McGuinty, fuck off! Ontario now wants to ban cell phones while driving , along with any other hand held electronic gadget. The attack of the nanny state strikes again. Dalton McDork has made it his life goal to ban everything it seems and I'm having a difficult time keeping count of how many things he has managed to ban in Ontario.

    Follow up:

    Drivers will now face a fine of up to $500 for driving while intexticated , and may face further penalties if it puts others in danger (wtf?). So no messing with your ipod, your dvd player, your GPS etc. Of course the police, firefighters and ambulance drivers are exempt from this law because apparently, they are the epitome of concentration when it comes to driving and they can do anything.

    Hands free headsets are allowed which basically means that drivers are not allowed to take their hands off the wheel, but it is ok to take your mind off of your driving if you have a blue tooth headset.

    Now I have seen idiots driving along talkin on their phones and driving like morons, everyone has. But, trying to legislate common sense is something I do not agree with. How many people will still text and drive? Laws like this are ridiculous in my opinion, and come up just as fast as the loss of a manufacturing plant in Ontario. Never mind the job losses though, Dalton has a plan to ban something, who cares about everything else, as long as people are taken care of by the Mr Rogers of politics, we will all be ok, pfftt. For those that praise the gestapo government of Ontario, I ask, what's next? What else do you want banned? How about taking away your morning Timmy's while driving? Or talking to your passengers, or even your kids? What is it gonna take for you to see this twit for what he is? I'm betting on the Timmy's, people would be up in arms on that one. Distractions are distractions, it doesn't matter what it is, which makes this law stupid. Chalk up another lie for Dalton. Get bent McGuinty, ya fucking tool.

    Ontario - yours to recover someday

    06 November 2008

    United States President-Elect Barack Obama


    BARACK'S FAVORS FOR CORRUPT CRONY

    by David Freddoso

    As originally posted: New York Post
    August 21, 2008


    Barack Obama has admitted it was "boneheaded" to get involved in a land deal with Tony Rezko, his friend and fund-raiser. But the media's focus on that deal has distracted from the bigger question: Why would Obama become involved in any deal with a man like Rezko, who made his living sponging off taxpayers and corrupting public officials? Because, by the time of the deal, the two already had a long relationship of mutual benefit.

    The deal's details are well-known: On June 15, 2005, Obama bought a gorgeous house in Hyde Park for $1.65 million - $300,000 below the list price. Rezko bought the empty but attractive lot next door from the same seller at the same time; Obama would later buy part of Rezko's lot, overpaying him.

    The transaction was shady, but not obviously corrupt. The overall Obama-Rezko relationship looks worse.

    After Rezko's 2006 indictment on unrelated federal corruption charges, Obama denied unequivocally that he'd ever helped the man: "I've never done any favors for him."

    That's simply false. Rezko was a genius of corporate welfare who enriched himself at taxpayers' expense, both legally and illegally, via his multiple political connections. Yes, he went to others for the illegal deals that landed him in prison. But Rezko depended on Obama when he wanted legal access to the state treasury. The arrangement was a far cry from Obama's image of "change and hope."

    It's impossible to know Obama's motives. But several of his official acts benefited Rezko, who in turn raised some $250,000 for Obama's campaigns.

    In October 1998, Obama wrote city and state officials, urging them to give Rezko $14 million to build an apartment complex outside of Obama's state Senate district. The Chicago Sun-Times noted last year that Obama's request included $855,000 in "development fees" for Rezko and for another developer, Allison Davis, who happened to be Obama's old law-firm boss. Obama's spokesman said it was just a coincidence that the state senator wrote letters to obtain millions of dollars for his two longtime friends.

    In fact, Obama was a dependable ally of subsidized developers in the Legislature, giving Rezko and others broader help as well. In "The Case Against Barack Obama," I identify and parse six housing bills with which Obama was closely involved. A few examples:

    * In 2001, Obama cosponsored a bill allowing developers to sell state tax credits to others and pocket half of the proceeds.

    * In 2002 and 2004, he was chief cosponsor of a bill to authorize a rent-subsidy fund giving "grants . . . directly to developers" of low-income housing. Seventy percent of the money was earmarked for the Chicago area.

    * Obama cosponsored the Illinois Housing Initiative Act of 2003, which required the governor to develop a plan for more low-income housing and "provide[d] for funding for housing construction and rehabilitation and supportive services."

    * In 2003, Obama voted for the Affordable Housing Planning and Appeal Act, which required Illinois municipalities to make 10 percent of their housing units "affordable" (by definition, this included subsidized housing). This forced 46 communities just outside of Chicago to create more than 7,000 new "affordable" units - a huge boost in demand for area developers. The bill also provided loopholes for developers to circumvent local ordinances and regulations.

    After voting for this measure (it passed narrowly), Obama then cosponsored a new bill that moved up its implementation by more than a year.

    These and the other Obama-backed bills helped make millionaires of Rezko and other slum developers at taxpayers' expense. The developers - including his former law boss and an adviser to his current campaign - reciprocated, together giving and raising hundreds of thousands of dollars for Obama's campaigns.

    To sum up: Obama got them subsidies to build. He secured them a steady income of government rent subsidies. He arranged special tax credits and abatements for them. He backed measures that increased demand for their services, and helped them legally circumvent local laws.

    Perhaps Obama acted with only the poor in mind. Yet some of his developer friends weren't so conscientious - especially Rezko.

    Notably, Rezko's company claimed that it lacked the funds to heat one of its 11 buildings in Obama's state Senate district from December 1996 to February 1997. But Rezko still managed to write a $1,000 check to Obama's campaign fund on Jan. 14. That month, his tenants shivered as 19 inches of snow fell on northern Illinois.

    With his early and large investments in Obama, Rezko helped the Democratic nominee get to where he is today. Obama, meanwhile, helped Rezko with his legislative work and his letter-writing. Given this close working relationship, the Obama-Rezko land deal is far less surprising.

    David Freddoso, a political reporter for National Review, is the author of "The Case Against Barack Obama: The Unlikely Rise and Unexamined Agenda of the Media's Favorite Candidate."

    05 November 2008

    The United States National Republican Party


    Today's Republicans: Dumb

    There's no better way to describe a party taken over by neocons and the religious right

    by Eric Margolis

    As originally published: Toronto Sun
    October 26, 2008


    NEW YORK - My old pal Bob, a bigwig California Republican, is barely on speaking terms with me. Bob does macho Republican things such as shoot little birds, ride Harleys, and sneer at the French.

    Bob says I'm picking on poor President George W. Bush and lack patriotism for not supporting W's wars of "liberation" in Afghanistan and Iraq.

    Worse, Bob accuses me of becoming a ... gasp ... Democratic liberal! In America, "liberal" means a lefty. Them's fightin' words.

    I've been called a lot of things, including "fascist hyena," "CIA agent," and "right-wing warmonger," but a leftist Democrat? I'm more likely to become a Hare Krishna than a liberal!

    Actually, I'm a rogue Republican.

    I've always been a moderate conservative Eisenhower Republican who believes in small government, low taxes, saving, hard work, individual freedoms, and avoiding overseas adventures.

    I respect Sen. John McCain and believe he would make a fine president. But he showed terrible judgment in picking Sarah Palin as his v-p candidate, and surrounding himself with a coterie of extreme neocon advisers such as Sen. Joseph Lieberman, Randy Scheunemann, Elliot Abrams and other far rightists who played a major role in creating the frightful foreign affairs mess the U.S. now faces and making America hated around the globe.

    Ideological blackshirts

    Equally bad, today's Republicans are no longer a party of the democratic centre. After the 9/11 attacks, Bush and Dick Cheney packed their administration with ideological blackshirts called "neocons" who drove the nation and Republican Party so far right it flirted at times with fascism.

    When I hear "Republican" these days, the words that come to my mind are: Arrogance, ignorance, and just plain dumb. And now, add economic disaster caused by Enron-style fraud and allowing crooks to run the nation's finances.

    Two of today's most regressive political movements, far right American Christian conservatives - the Rush Limbaugh crowd - and supporters of Israel's far right expansionist parties, joined forces to become the bedrock of the Bush presidency. Today, 44-50% of Republican voters call themselves born-again Christian fundamentalists who believe every word of the Bible is true.

    The Grand Old Party of Lincoln, Eisenhower and Reagan has been hijacked by America's rural heartland and the Southern Bible Belt - what we nasty New Yorkers call "hicks and holy rollers."

    McCain's choice of an evangelical ultra conservative, Gov. Sarah Palin, a woman of stunning vulgarity and ignorance, is testimony to the dumbing down of the party and its transformation into a populist religious movement.

    Lurch to the right

    I haven't changed my politics and remain firmly in the centre. But the Republican Party has lurched so far to the right that the old centre looks like the left to many Republicans.

    Barack Obama is wrong to propose raising taxes but he is no socialist, as Palin charges. Nationalizing the nation's banks is socialist. Urging world domination is National Socialist.

    Republicans disgraced the nation by endorsing torture, assassinations, Guantanamo, Abu Ghraib, secret prisons, kidnapping, kangaroo courts, spying on U.S. citizens and undermining America's Constitution. Too many cowardly Democrats joined this lynch mob.

    Republicans now speak for rich fat cats, military-industrial-petroleum complex, the financial industry and some of the least educated, most backwards, most prejudiced Americans.

    McCain and Palin have shamelessly stoked anti-black, anti-Muslim and anti-foreign hatred and fear among them during this campaign. So did Hillary Clinton. It's also dismaying that blacks will vote en masse for Obama because of his colour.

    Gen. Colin Powell did the right thing by breaking with John McCain, denouncing racism and Islamophobia, and warning of the party's lurch to the far right. Powell commands my attention. I was always disappointed this fine man and soldier did not run for president.

    America desperately needs a reborn, moderate Republican Party freed from narrow-minded religious ideology and ruralism that will return the nation to its former democratic values and decency.

    This was the United States the world used to respect. When it happens, I will return to the fold.

    04 November 2008

    "The Rezko Ticket"


    THE REZKO TICKET

    As originally posted: New York Post
    August 27, 2008


    It looks like convicted Chicago power merchant Tony Rezko could have two friends in the White House come January - if the Democratic ticket is elected, that is.

    Barack Obama's ties to the prolific fund-raiser and developer - who faces up to 20 years behind bars following his June conviction for wire fraud, mail fraud, money-laundering and soliciting bribes - are relatively well-known.

    Over the years, Rezko raised some $250,000 for Obama's campaigns. And, in 2005, he helped Barack and Michelle Obama by buying a lot they couldn't afford right next to the home they'd just purchased - then selling them part of the property.

    Obama, who severed his ties to Rezko just as he started running for president, avers now that the purchase was "a bone-headed move."

    But it seems that he's not the only "bonehead" on the ticket. It turns out that Obama's running mate, Sen. Joe Biden, is tied into the Rezko network, too.

    The Chicago Sun-Times reports that Biden has for 30 years been a close friend of Chicago lawyer Joseph Cari - a key player in the Rezko scam who pleaded guilty to extortion and admitted taking part in an $850,000 kickback scheme.

    In fact, Cari was the Midwest field director for Biden's aborted 1988 presidential bid. The Delaware senator has described him as "a friend, and he's an honorable guy," but added: "I don't know anything beyond that."

    Or it could be that he just doesn't want to know.

    It makes you wonder why Obama - already on the spot over his own Rezko ties - didn't spot the connection before tapping Biden for the ticket.

    Maybe the problem was that Obama's master vetter, DC power broker and former Fannie Mae head James Johnson, had to quit the campaign suddenly over his having received below-market-rate personal loans from Countrywide - a key player in the subprime mortgage mess.

    Or maybe Obama's aides just figured there was nothing unseemly in both members of the Democratic ticket enjoying ties to convicted extortionists.

    In Chicago, some things never change.

    United States Senator / Presidential Election Candidate John McCain


    A Developer, His Deals and His Ties to McCain

    by David D. Kirkpatrick and Jim Rutenberg

    As originally posted: The New York Times
    April 22, 2008


    Donald R. Diamond, a wealthy Arizona real estate developer, was racing to snap up a stretch of virgin California coast freed by the closing of an Army base a decade ago when he turned to an old friend, Senator John McCain.

    When Mr. Diamond wanted to buy land at the base, Fort Ord, Mr. McCain assigned an aide who set up a meeting at the Pentagon and later stepped in again to help speed up the sale, according to people involved and a deposition Mr. Diamond gave for a related lawsuit. When he appealed to a nearby city for the right to develop other property at the former base, Mr. Diamond submitted Mr. McCain’s endorsement as “a close personal friend.”

    Writing to officials in the city, Seaside, Calif., the senator said, “You will find him as honorable and committed as I have.”

    Courting local officials and potential partners, Mr. Diamond’s team promised that he could “help get through some of the red tape in dealing with the Department of the Army” because Mr. Diamond “has been very active with Senator McCain,” a partner said in a deposition.

    For Mr. McCain, the Arizona Republican who has staked two presidential campaigns on pledges to avoid even the appearance of dispensing an official favor for a donor, Mr. Diamond is the kind of friend who can pose a test.

    A longtime political patron, Mr. Diamond is one of the elite fund-raisers Mr. McCain’s current presidential campaign calls Innovators, having raised more than $250,000 so far. At home, Mr. Diamond is sometimes referred to as “The Donald,” Arizona’s answer to Donald Trump — an outsized personality who invites public officials aboard his flotilla of yachts (the Ace, King, Jack and Queen of Diamonds), specializes in deals with the government, and unabashedly solicits support for his business interests from the recipients of his campaign contributions.

    Mr. McCain has occasionally rebuffed Mr. Diamond’s entreaties as inappropriate, but he has also taken steps that benefited his friend’s real estate empire. Their 26-year relationship illuminates how Mr. McCain weighs requests from a benefactor against his vows, adopted after a brush with scandal two decades ago, not to intercede with government authorities on behalf of a donor or take other official action that serves no clear public interest.

    In California, the McCain aide’s assistance with the Army helped Mr. Diamond complete a purchase in 1999 that he soon turned over for a $20 million profit. And Mr. McCain’s letter of recommendation reinforced Mr. Diamond’s selling point about his McCain connections as he pursued — and won in 2005 — a potentially much more lucrative deal to develop a resort hotel and luxury housing.

    In Arizona, Mr. McCain has helped Mr. Diamond with matters as small as forwarding a complaint in a regulatory skirmish over the endangered pygmy owl, and as large as introducing legislation remapping public lands. In 1991 and 1994, Mr. McCain sponsored two laws sought by Mr. Diamond that resulted in providing him millions of dollars and thousands of acres in exchange for adding some of his properties to national parks. The Arizona senator co-sponsored a third similar bill now before the Senate.

    A spokeswoman for Mr. McCain, Jill Hazelbaker, said the senator, now the presumptive Republican presidential nominee, “had done nothing for Mr. Diamond that he would not do for any other Arizona citizen.”

    The campaign said in a statement that the Arizona land exchanges had broad support from local governments and environmentalists seeking to expand a federal park.

    For the California projects, the campaign said the McCain aide arranged the introduction to an Army official for Mr. Diamond’s team as “a constituent matter.” The campaign said it had no knowledge of the aide helping to expedite the sale.

    In Mr. Diamond’s other project at Fort Ord, the campaign initially said that the senator “would not have issued” the letter vouching for Mr. Diamond “if he knew at the time it would be used to favor any particular party in the course of a pending competition.” Later, the campaign described the letter as “a character reference” and said it was included only at a “pre-competition” stage in the selection process. The campaign also noted that two other members of the Arizona Congressional delegation provided similar letters.

    Mr. Diamond, for his part, said Mr. McCain had only done his job. “I think that is what Congress people are supposed to do for constituents,” he said. “When you have a big, significant businessman like myself, why wouldn’t you want to help move things along? What else would they do? They waste so much time with legislation.”

    He said he often complained to Mr. McCain that he was “too straight” about refusing to provide federal help for Arizona businessmen. “I tell him, ‘You are an Arizona senator besides being the world senator. Loosen up, kid!’ ”

    ‘A Love Fest’

    Mr. Diamond, 80, met Mr. McCain when he was a former prisoner of war running for Congress in 1982. “I liked him right away because I respected what he went through in Vietnam,” Mr. Diamond recalled. When he got to know Mr. McCain and his wife, Cindy, Mr. Diamond said, “it became a love fest.”

    Mr. Diamond was already a major player in Arizona real estate and Republican politics. A tenacious dealmaker who once visited a Mexican jail to close a sale with an inmate, Mr. Diamond had made a first fortune on Wall Street before turning his trader’s eye to the Arizona desert in 1965. He eventually became one of the state’s biggest landowners, picking up trophies that included the 12,000-acre Howard Hughes estate, stakes in two of Arizona’s professional sports teams, the Diamondbacks and the Suns, and, for a time, a Tucson television station.

    Over the years, Mr. Diamond and his wife, Joan, visited the McCains at their ranch in Sedona, Ariz., and entertained them in their Tucson home and in the Bahamas, where Mr. Diamond sometimes keeps his 134-foot yacht, the Queen of Diamonds. In 2001, the two men attended a Yankees-Diamondback World Series game together. “He is just very, very good company,” Mr. Diamond said of Mr. McCain. “I knew all his people and the staff.”

    Mr. Diamond and his family have given more than $55,000 to Mr. McCain’s campaigns (and more than $600,000 to other federal candidates). More significantly, the developer has collected (or “bundled”) hundreds of thousands of dollars in contributions from others, and is now serving as a national co-chairman of the finance committee for Mr. McCain’s current presidential run. In the spring of 2000, when Mr. Diamond was in the thick of the negotiations for his California deals, he traveled with Mr. McCain through the early Republican primaries. Mr. Diamond was on the campaign trail again this year.

    In building his empire, Mr. Diamond said he had struggled with local elected officials over land use and zoning issues just like any other developer. “They are a pain in the ‘you-know-what,’ ” he said.

    But associates say he revels in his ability to “work the system,” as his friend and sometimes partner, Stanley Abrams, put it: “Nobody is as connected as Donald.”

    Mr. Diamond is close to most of Arizona’s Congressional delegation and is candid about his expectations as a fund-raiser. “I want my money back, for Christ’s sake. Do you know how many cocktail parties I have to go to?”

    To raise money for Mr. McCain, Mr. Diamond invites local Republicans to make fund-raising calls from his Tucson office. Ray Carroll, a member of the council that controls zoning in Pima County, Ariz., said Mr. Diamond followed up on one fund-raising session with a thank-you note “on behalf of Mr. McCain,” sending a copy to the senator.

    “To reciprocate, if you need any zoning in the county, let me know,” Mr. Diamond wrote. (Mr. Diamond said it was the kind of joke he often made.)

    Mr. McCain has campaigned as a critic of the corrupting influence of money and politics, saying he had learned a lesson from a late 1980s scandal over his part in an intervention with banking regulators examining a savings and loan controlled by a patron, Charles Keating. Since then, Mr. McCain vowed to embrace ethics standards that set him apart from many colleagues.

    “I have carefully avoided situations that might even tangentially be construed as a less than proper use of my office,” he wrote in his memoir, “Worth the Fighting For” (Random House, 2002).

    Mr. McCain once publicly criticized Mr. Diamond as lobbying too hard for his own financial interests. In 1995, Mr. McCain called it “unheard of” that Mr. Diamond had hired a Washington lobbyist to try to block construction of a federal building in Tucson that threatened to take away some of his rental income. “I didn’t talk to him for one year,” Mr. Diamond said of Mr. McCain. “I was annoyed.”

    Legislating Land Deals

    Mr. McCain has been willing, though, to help sponsor bills authorizing federal land exchanges that Mr. Diamond sought. Former Representative Jim Kolbe, another Arizona Republican close to Mr. Diamond, said Mr. Diamond often proposed such deals and impressed lawmakers with his frankness about the potential sensitivities, Mr. Kolbe said.

    “He would tell you, ‘I don’t think you should get on this one, this one is too close to where you live, let another member of the delegation work on this one,’ ” Mr. Kolbe said. “He never tried to flim-flam you.”

    Such exchanges can serve a public interest by expanding parks or wilderness areas. But many environmentalists and other analysts have also concluded that such trades almost invariably give private developers a profitable bargain at public expense. Although federal rules stipulate that public land can be traded for private land only of “equal value,” appraisals of unusual property or in fast-growing areas are highly variable and developers often apply political pressure to get favorable terms.

    A study in 2000 by the nonpartisan Government Accountability Office cited “inherent difficulties” and “fundamental inefficiencies” in such exchanges and urged Congress to discontinue them.

    The first two swaps involving Mr. Diamond that Mr. McCain helped sponsor were initially supported by local governments and conservationists, and Mr. Diamond argues the land would be worth far more today. But many Arizona conservationists later protested that the federal deals gave away too much.

    “Don Diamond has done very well through these land exchanges,” said Sandy Bahr, director of the Arizona chapter of the Sierra Club. “It is the public that got shortchanged.”

    The McCain campaign noted that the bills left the terms of any acquisitions to the Interior Department, but environmentalists argued that the legislation set the parameters.

    “It’s not like there is some market mechanism at work,” Ms. Bahr said.

    The laws expanded what is now the Saguaro National Park just outside Tucson to insulate it from proposed Diamond projects, including one to build 10,000 houses and four resorts on the 4,400-acre Rocking K Ranch nearby. Mr. Diamond had bought the ranch for less than $10 million in 1979.

    In the first deal, Mr. McCain was the sole Senate sponsor of a 1991 law authorizing the Department of the Interior to acquire about 2,000 acres of the ranch, which local environmentalists valued at about $5 million but Mr. Diamond and parks appraisers put at around $30 million.

    Over the next five years, the government paid him more than $23 million for the land and traded him two parcels of about 50 acres in upscale Scottsdale, Ariz. And the expanded Saguaro also added to the value of the remaining Rocking K land, where Mr. Diamond is still planning to build 3,000 houses along with resorts and golf courses.

    When The Arizona Republic linked Mr. McCain’s support for the bill to Mr. Diamond’s fund-raising, Mr. McCain called the implication “outrageous and disgusting.”

    In 1994, Mr. McCain sponsored, along with a Senate colleague at the time, Dennis DeConcini, Democrat of Arizona, another law expanding the park by again acquiring land from Mr. Diamond. To carry out the expansion, the Interior Department has so far taken over about 630 acres from Mr. Diamond in exchange for about 4,300 acres near Phoenix.

    Last year, Mr. McCain co-sponsored another bill with Senator Jon Kyl, Republican of Arizona, that would grant Mr. Diamond about 1,250 acres south of Tucson in exchange for requiring him to contribute about 2,500 acres to other conservation areas — a scaled-back version of a 2003 proposal that collapsed under protests that it was too generous to Mr. Diamond. A Senate committee passed it to the floor this month.

    A Deal and a Lawsuit

    In the mid-1990s, Mr. Diamond set his sights on Monterey County, Calif., where the Army was closing Fort Ord. It was a dream property — hundreds of undeveloped acres and two golf courses in the ocean-misted hills overlooking Monterey Bay, one of California’s great tourist destinations.

    Tipped off by a fellow Tucson developer, Mr. Diamond had snapped up a housing complex there that had been built on land leased from the Army, giving him the inside track to buying the land when the base shut down.

    After the Army did so in 1994, Mr. Diamond asked Mr. McCain, a member of the Senate Armed Services Committee, for an introduction with an Army official who could work out a sale. Mr. McCain’s legislative aide, Ann Sauer, arranged a meeting with Paul W. Johnson, a deputy assistant secretary, a Diamond executive involved in the deal said.

    When the talks stalled over price and water supply, Ms. Sauer interceded with the Army, according to Mr. Diamond’s deposition and others involved. “She showed up and got the thing resolved,” Mr. Diamond said.

    Mr. McCain’s campaign aides said in a statement they did not believe Ms. Sauer’s involvement went beyond setting up the Pentagon meeting. Ms. Sauer, who no longer works for Mr. McCain, said she could not recall details of her role. A spokesman for the Army declined to comment.

    Mr. Diamond finally bought the land for $250,000 in 1999. He obtained an unusual guarantee from the Army that provided a generous water allowance outside the standard allocation process — a bonus that continues to rankle municipal officials on the dry Monterey Peninsula.

    “Those guys got a sweetheart deal,” said Michael Keenan, whose family bought the housing complex from Mr. Diamond for nearly $30 million two years later. Mr. Diamond acknowledged turning a profit of $20 million.

    Even before he completed his negotiations with the Army, Mr. Diamond had begun turning his attention to an even bigger prize: the two Fort Ord golf courses, which had been sold to the city of Seaside.

    Mr. Diamond and his partners imagined building high-end condominiums and a luxury hotel by the links, a project they described in an internal memorandum as a “World Series, final game, out of the park, grand slam home run.”

    When Seaside solicited submissions in 1998 from bidders competing to develop a world-class resort, Mr. Diamond sought to exploit his Washington connections. His package included the laudatory letters from Mr. McCain, Mr. Kyl and Mr. Kolbe.

    “The folks that were there at the time were sort of, like, star struck: ‘God, these people really know some high-up people,’ ” said a former senior Seaside official, who requested anonymity to speak candidly.

    Mr. Diamond acknowledged that, as court papers show, he tried more than once to enlist Mr. McCain in assisting the city on other matters as the selection process continued. “I don’t mind trying,” he said. For instance, in 2002, Mr. Diamond forwarded to Mr. McCain an article from The Monterey Herald about Seaside’s problems in a water dispute. “As per our conversation today,” he wrote, “I would appreciate it if you would follow up and drop a line to the city manager of Seaside.”

    He added in a postscript, “Sorry you can’t make it to the Yankees series,”

    Daniel E. Keen, the former Seaside city manager, recalled: “Diamond had a relationship with McCain. He was offering to help.”

    Mr. McCain rejected that request as “inappropriate at that time” because he was poised to regain the chairmanship of the Senate Commerce Committee, Mr. Diamond said in the deposition. “John said that he would rather not get involved. He didn’t think that it was right.”

    Mr. Diamond’s courtship of Seaside almost unraveled the next year when a rival developer, Danny Bakewell Sr., a civil rights activist, filed a lawsuit charging that Mr. Diamond had conspired to rig the selection process. The company running the former Army golf courses, BSL Golf, was acting as the city’s agent to pick a developer, and Mr. Bakewell’s lawyers presented documents showing that Mr. Diamond offered to give BSL a stake in the resort in exchange for helping him win the project. Mr. Diamond and BSL denied any wrongdoing and settled the suit for an undisclosed sum in 2004.

    Though Mr. McCain helped with the Fort Ord deals, Mr. Diamond said, he still thinks that Mr. McCain is too worried about avoiding any appearance of a favor. “He doesn’t bring home enough for the state,” Mr. Diamond said. “It is a sore subject between us.”

    Kitty Bennett and Barclay Walsh contributed research.

    United States Senator / Presidential Election Candidate John McCain


    McCain pushed regulators for land swap, despite pledge

    by Greg Gordon

    As originally posted: McClatchy
    October 27, 2008


    WASHINGTON — Years after he resurrected his political fortunes from the Keating Five savings and loan investigation, John McCain promoted an Arizona land swap that would've benefited a former mentor and partner of the scandal's central figure.

    The owners of the Spur Cross Ranch, a dramatic 2,154-acre tract of Sonoran desert just north of Phoenix, in the late 1990s sought to sell it to a developer who planned to build a premier golf course surrounded by 390 luxury homes.

    Nearby residents and environmentalists, however, wanted to preserve the area's unusual cacti, stone formations and hundreds of Hopi Indian tribal artifacts.

    After opposition surfaced, the developer sought McCain's help in forging a land swap with the U.S. Forest Service — a deal that also would benefit the owners of the ranch, including a company controlled by billionaire Carl H. Lindner Jr., an associate of S&L chief Charles H. Keating.

    McCain and an aide pushed for the exchange in more than a half dozen sometimes-testy letters and phone calls up and down the Forest Service's hierarchy, according to former agency officials and correspondence. McCain's office even circulated draft legislation that would have overridden the agency's objection to surrendering national forest land. Ultimately, the deal fell apart.

    McCain's behind-the-scenes maneuvering on Spur Cross contrasts with his image as a congressional ethics champion and his pledge — made after the Keating scandal in 1991 sullied his reputation — never to intervene with regulators again.

    McCain's actions, which went on for nearly two years, also appear at odds with boasts in his 2002 book, "Worth the Fighting For," that he'd never pressured regulators at any time since 1991 and acted only on matters that "serve an obvious public purpose."

    McCain said at the time that his efforts were aimed solely at preserving "one of the most pristine and beautiful desert areas in America."

    In a statement to McClatchy, McCain campaign spokesman Tucker Bounds denied that the Arizona senator had tried to engineer the exchange and said "he certainly did not try to influence the Forest Service on the land-swap proposal."

    Environmentalists contend that McCain seemed to be driven mainly by a desire to "railroad" through a deal benefiting Arizona real-estate developer John Lang and the 70 percent owner of Spur Cross, Lindner's Cincinnati-based Great American Insurance Co.

    Some six years after the Senate hearings on the conduct of the Keating Five, Lang and his Pinnacle Group signed a contract to purchase the Spur Cross Ranch.

    When he encountered opposition, Lang made a pitch to the Forest Service about swapping Spur Cross for 1,700 acres in the Tonto National Forest, just outside the northern boundary of the affluent community of Scottsdale. When the forest supervisor turned him down, Lang said, he contacted McCain for help.

    The sale to Lang appeared to hang on whether a swap for the Tonto tract could be negotiated and whether Scottsdale would agree to annex the newly privatized land. A quickly executed land exchange would have enabled the ranch owners to unload the property before opposition from conservationists depressed its development value.

    Bounds said that the senator insisted that all stakeholders agree on any exchange, which gave the Forest Service "an effective veto of the proposal."

    However, Eleanor Towns, the Forest Service's southwest regional chief, said in an interview that she was never told the agency could veto the deal and that the Forest Service was left out of most of the discussions.

    Bounds, McCain's spokesman, said that the proposed land exchange "was instigated by the adjacent towns of Care Free and Cave Creek and the Hopi Tribe," not by Lang or the landowners.

    A spokeswoman for Lindner's Great American Insurance, Anne Watson, said the company never sought McCain's aid and preferred an outright sale to a developer "to maximize the return on our investment."

    One of the federal regulators pressured by the Keating Five, William Black, now says that McCain never should've acted to benefit Lindner and instead "should have invoked the 100-foot-pole rule, not the 10-foot-pole rule."

    Federal Election Commission records show that in the three years beginning in mid-1997, McCain's Senate campaign and his 2000 presidential campaign received more than $9,000 from Lindner, developer Lang and other backers of the deal. Several donations were made in close proximity to his Forest Service letters. His committees also got more than $25,000 from members of lobbying firms representing Great American's parent, the American Financial Group, on various issues.

    This year, the 89-year-old Lindner and his son, Carl H. Lindner III, have raised more than $300,000 for McCain's presidential campaign.

    Bounds said any suggestion that he was otherwise motivated is "without basis in fact" and called the campaign donations "irrelevant."

    After extensive hearings into the Keating Five affair, the Senate ethics committee cleared McCain of rules violations, but said that he showed "poor judgment" in leaning on the regulators to ease curbs on speculative investments by Keating's S&L. McCain had accepted $112,000 in campaign donations from Keating and his associates and went on family vacations to Keating's Bahamas hideaway.

    When the S&L collapsed, it cost taxpayers more than $3 billion.

    In 1979, the Securities and Exchange Commission accused Lindner and Keating of defrauding shareholders by diverting assets in a Cincinnati banking and leasing operation to their personal use. The two men signed a court consent order in which Lindner agreed to repay the firm $1.4 million.

    Black, the former thrift regulator who's now a University of Missouri-Kansas City law professor, said that McCain should've gone to great lengths to avoid "getting anywhere near people associated with Keating," including Lindner.

    Correspondence obtained by McClatchy and interviews with former Forest Service officials show that McCain not only explored a three-way swap involving state and federal land, but also sought support for the federal Land and Water Conservation Fund to buy Spur Cross.

    Forest Service Chief Mike Dombeck and his underlings objected both to surrendering lands in the Tonto forest, which bordered the ranch, and to managing a large Spur Cross park in Maricopa County. They said the ranch would rate as a low priority for the Conservation Fund.

    Towns said that, while she was still head of the Forest Service's national real-estate office in early 1998, Lang and Scottsdale Mayor Samantha Campana stopped by her office and raised the idea of a swap. Assuming her new job a short time later, she said, she mentioned Lang's visit in an introductory chat with McCain, who told her to use her "best professional judgment" in considering trading forestlands for Spur Cross.

    But Towns said that after she took over the regional post in the spring of 1998, McCain aide Deb Gullett phoned her several times to press for an exchange.

    "She was aggressive, she was at times rude and she was hell bent on getting that land exchange done," said Towns, who's now retired. "She said, 'The senator wants this land exchange done.'"

    Hearing those words, Towns said, she told Gullett of McCain's instruction to use her best judgment, said that if he intended otherwise he should phone himself and slammed down the phone.

    Bounds said that McCain "cannot be called to account" based on Towns' recollection of a conversation in which he had no part.

    Attempts to reach Gullett, wife of a former top McCain aide, were unsuccessful.

    In the summer of 1998, McCain sent letters asking the Arizona Land Trust and the U.S. General Services Administration to identify properties that could be swapped.

    His office also circulated draft legislation that would've forced the Forest Service to yield unspecified lands in a complicated exchange that would bypass the usual environmental impact study.

    Jack Fraser, a leading conservationist who since has died, later said in a letter to McCain that his draft bill "was a sweetheart deal for the developer but . . . would have been a nightmare for the public interest."

    Carla, a former staffer for the McDowell Sonoran Conservancy who formally dropped her last name after a divorce, said nearly every conservation organization, as well as Indian tribes, opposed the exchange. She said they feared the swap "would have set a precedent for opening up land in the Tonto National Forest" to development.

    "It was conveyed very clearly to us that our opposition had made McCain furious," she said.

    When Scottsdale's City Council voted against the deal, McCain backed away.

    After the Arizona land swap died, McCain sent a letter to Forest Service Chief Dombeck accusing Towns and two lower-level agency officials of disseminating "erroneous" information that helped derail the exchange proposals, and questioning whether their conduct complied with agency rules.

    Forest Service officials interpreted the letter as a request for disciplinary action, but Bounds said it "simply expressed disapproval" about the employees' conduct.

    Dombeck, now a University of Wisconsin faculty member, said he took no action and called Towns "an absolute top-notch regional forester" whom he "would never consider any sort of disciplinary action against."

    As for Spur Cross, the state of Arizona, Maricopa County and the town of Cave Creek agreed in 2000 to buy the ranch for $21 million. McCain had no role in the sale.

    Two former Keating lawyers whom federal regulators accused of improprieties in the S&L scandal helped negotiate the sale — Gary Birnbaum, serving as the town council for Cave Creek, and Great American lawyer Robert Kielty, who had joined McCain on trips to the Bahamas.

    Spur Cross is now a county park.

    Alaska Governor / United States Vice-Presidential Candidate Sarah Palin


    Palin talks to Couric - and if she's lucky, few are listening

    The financial crisis has an upside for the Republican vice presidential candidate: It takes the spotlight away as she begins answering more pointed questions from the media.

    by James Rainey

    As originally posted: Los Angeles Times
    September 26, 2008


    A global financial crisis and a not-quite-suspended presidential campaign dominated newspaper front pages and television reports over the last couple of days.

    Bad news for America. But good news for Sarah Palin.

    The economic crisis and John McCain's surprising response have drawn attention away from the Republican vice presidential nominee just as she has started to answer more pointed questions from the media.

    Her third nationally televised interview, with CBS anchor Katie Couric, found Palin rambling, marginally responsive and even more adrift than during her network debut with ABC’s Charles Gibson.

    In a 40-minute session with Couric that aired Wednesday and Thursday nights, the Alaska governor defended her puzzling claim that geographic proximity makes her some sort of expert on Russia; went nearly blank when queried about McCain's achievements as a big-business regulator; agreed America "may find itself" on the road to another Great Depression; and, promoting a troop surge in Afghanistan, casually suggested that it "will lead us to victory there, as it has proven to have done in Iraq."

    The last statement couldn't help but conjure an image from 2003 - President Bush beaming in that green flight suit before the infamous "Mission Accomplished" banner.

    Palin's unblinking certitude gave way at other times in the interview to a striking imprecision, as when she struggled to respond to Couric's suggestion that the $700-billion bailout might be better funneled through middle-class families instead of Wall Street firms.

    "That's why I say I, like every American I'm speaking with, we're ill about this position that we have been put in . . ." Palin began, before meandering off in fruitless pursuit of coherence.

    But I'll let the governor speak for herself:

    " . . . where it is the taxpayers looking to bail out. But ultimately, what the bailout does is help those who are concerned about the healthcare reform that is needed to help shore up our economy. Um, helping, oh - it's got to be all about job creation too. Shoring up our economy, and putting it back on the right track. So healthcare reform and reducing taxes and reining in spending has got to accompany tax reductions, and tax relief for Americans, and trade, we've got to see trade as opportunity, not as a competitive, um, scary thing, but 1 in 5 jobs being created in the trade sector today. We've got to look at that as more opportunity. All of those things under the umbrella of job creation. This bailout is a part of that."

    That mind-bender prompted Couric to muse, almost charitably, on "The Early Show" that Palin is "not always responsive when asked questions, and sometimes does slip back to her talking points."

    It didn't go much better for Palin when she tried to clarify the mystery of what her state's proximity to Russia has taught her about that nation. Anyone south of the Arctic Circle would have seen this question coming and had a ready answer. But seemingly not the governor.

    "We have trade missions back and forth," Palin told Couric. "We, we do, it's very important when you consider even national security issues with Russia as Putin rears his head and comes into the airspace of the United States of America, where, where do they go? It's Alaska. It's just right over the border. It is from Alaska that we send those out to make sure that an eye is being kept on this very powerful nation, Russia, because they are right there. They are right next to, to our state."

    Certainly, Russia's prime minister, Vladimir Putin, has demonstrated his willingness to invade its small neighbors. But have I missed news of recent provocations by Russian bombers over Kiwalik or Aleknagik? And if Palin has been intensely interested in her neighbor across the Bering Strait, that also has escaped the reporters who follow her most closely.

    In fact, a veteran reporter from her home state, Hal Bernton, reported in the Seattle Times this month how Russian politicians had sought more contact with Palin, but in vain. The governor cut funding and her office's participation, it seems, in the Northern Forum, which promotes relations between regional governments in the Northern Hemisphere.

    A Palin spokeswoman e-mailed that she would provide more detail about Palin's trade activities with the Russkies. No word by deadline.

    But wait. Certainly the issue dominating the news would provide the governor with a respite from these maddening demands for, you know, facts.

    With McCain now depicting himself as the doctor ready to deliver tough medicine to Wall Street, Couric asked Palin to explain what measures he had pushed in the past.

    Palin raised McCain's support of revamped oversight for Fannie Mae and Freddie Mac, the two mortgage giants that are on life support. Fine.

    But when the network anchor pressed for other examples, given that the Republican has been in Congress for nearly three decades, Palin came up blank.

    "I'll try to find some" - Palin smiled at Couric - "and bring them to you."

    Palin at least kept her answers shorter during a Q&A with reporters Thursday morning, her first such session since McCain unleashed her on the national scene four weeks ago.

    Although she didn't really answer two of the four questions, many Americans won't hold that against her. They see someone who understands what it's like in a small town.

    Common sense has its value, and commentaries like this one, suggesting Palin's shortcomings, will only confirm to her fans that she is not a pet of the media elite. But it seems only sensible to wonder whether charm and pluck will be enough the next time Putin rears his head.

    United States Senator / Presidential Election Candidate Barack Obama


    Obama funnels federal money to top campaign contributors

    by David Byler and Daniel Byler

    As originally posted on: The Next Right
    August 11, 2008


    Although earmarking large sums of money to top supporters and fundraisers is a popular practice in both houses of Congress, not many people would expect such questionable activity from a shining star of liberalism and reform like Illinois Senator Barack Obama. Sadly, he is following a pattern of conspicuous allocations of federal funds. Just as he handed a million dollar earmark to his wife’s employers in 2006 (immediately after which her pay shot up from $121,910 a year to $316,962), Sen. Obama is now drastically increasing earmarks that go to his biggest supporters.

    In 2006, Sen. Obama requested an earmark $300,000 to replace and update the projector system at the Adler Planetarium. In 2008, he requested $3,000,000 for replacement of the projector system and other equipment in the Sky Theater. For reference, this is three times the amount he earmarked for the HIV/AIDS Policy and Research Institute at Chicago State University.

    While the Adler Planetarium earmarks look normal on the surface, there is a catch. The Chairman and two of the Vice Chairman of the Adler Planetarium Board of Trustees raised a total of almost $250,000 for Sen. Obama’s 2008 Presidential campaign. The Adler Planetarium was probably pleasantly surprised when they found that their earmark increased by $2.7 million dollars, in other words, by a factor of ten.

    The Chairman of the Board of Trustees, Frank Clark, stands out amongst Obama supporters. On Sen. Obama’s website, Mr. Clark is listed as a bundler who raised in excess of $200,000 for the Senator’s Presidential campaign. In 2004, Mr. Clark donated $5,000 to the then State Senator Obama’s U.S. Senate bid. In 2005, Mr. Clark became the Chairman of the Board at Adler Planetarium, and in 2006 Sen. Obama earmarked $300,000 to the Planetarium. Then, in the same year that Mr. Clark’s involvement in the Obama campaign skyrocketed to raising an excess of $200,000, Sen. Obama’s earmark for the Adler Planetarium increased tenfold to $3,000,000.

    Mr. Clark isn’t the only problematic donor. Two of the Vice Chairmen of the Board, Brian Cressey and Peter Thompson are also significant donors. Between donations from Mr. Thompson and the Cressey household, Sen. Obama received $13,800. The most significant donor here is Mr. Cressey. As a first time donor, Mr. Cressey gave the maximum possible individual donation in essentially one big check. What makes this even more troubling is that Mr. Cressey had never given to Sen. Obama before 2008, the year in which the Adler Planetarium’s earmark increased tenfold.

    The fact that three ranking members of the Adler Planetarium’s Board donated huge sums of money (at least $200,000) is interesting by itself. The fact that these enormous contributions came in the same year that Sen. Obama increased their earmark by 900% is truly unsettling.

    03 November 2008

    Alaska Governor / United States Vice-Presidential Candidate Sarah Palin


    Troopergate Report: Palin "Unlawfully Abused Her Authority"

    by Matt Apuzzo

    As originally posted on: The Huffington Post
    October 10, 2008


    ANCHORAGE, Alaska — Sarah Palin unlawfully abused her power as governor by trying to have her former brother-in-law fired as a state trooper, the chief investigator of an Alaska legislative panel concluded Friday. The politically charged inquiry imperiled her reputation as a reformer on John McCain's Republican ticket.

    Investigator Stephen Branchflower, in a report to a bipartisan panel that looked into the matter, found Palin in violation of a state ethics law that prohibits public officials from using their office for personal gain.

    The inquiry looked into her dismissal of Public Safety Commissioner Walter Monegan, who said he lost his job because he resisted pressure to fire a state trooper involved in a bitter divorce and custody battle with the governor's sister. Palin says Monegan was fired as part of a legitimate budget dispute.

    Monegan's firing was lawful, the report found, but Palin let the family grudge influence her decision-making - even if it was not the sole reason Monegan was dismissed.

    "I feel vindicated," Monegan said. "It sounds like they've validated my belief and opinions. And that tells me I'm not totally out in left field."

    Branchflower said Palin violated a statute of the Alaska Executive Branch Ethics Act. Lawmakers don't have the authority to sanction her for such a violation, and they gave no indication they would take any action against her.

    Under Alaska law, it is up to the state's Personnel Board - which is conducting its own investigation into the matter - to decide whether Palin violated state law and, if so, must refer it to the Senate president for disciplinary action. Violations also carry a possible fine of up to $5,000.

    Palin attorney Thomas Van Flein disagreed with Branchflower's conclusions. "In order to violate the ethics law, there has to be some personal gain, usually financial. Mr. Branchflower has failed to identify any financial gain," he said.

    Palin and McCain's supporters had hoped the inquiry's finding would be delayed until after the presidential election to spare her any embarrassment and to put aside an enduring distraction as she campaigns as McCain's running mate in an uphill contest against Democrat Barack Obama.

    After a court fight to block the report failed, the panel of lawmakers voted to release it - though not without dissension. The panel did not vote on whether to endorse its findings.

    "I think there are some problems in this report," said Republican state Sen. Gary Stevens, a member of the panel. "I would encourage people to be very cautious, to look at this with a jaundiced eye."

    The report was made public the same day an Anchorage judge issued a temporary restraining order forcing the state of Alaska to preserve any government-related e-mails that Palin and top aides sent from private accounts in what critics contend was an effort to conceal that they were doing political business while working at state government jobs.

    The state paid Branchflower, a retired state prosecutor, $100,000 to prepare the nearly 300-page report. He interviewed or accepted affidavits from about two dozen people in the eight-week investigation.

    "Legislative Council seriously overreached, making a tortured argument to find fault without basis in law or fact," McCain campaign spokesman Meg Stapleton said.

    The Legislature could vote next year to censure Palin, but committee members appeared divided over the report and Democratic state Sen. Kim Elton, the committee's chairman, gave no indication that would happen.

    Stapleton also dismissed the report as "a partisan-led inquiry run by Obama supporters." The inquiry has been dogged by such criticism since Democrat Hollis French, who oversaw the investigation, predicted an "October surprise" for the McCain campaign.

    Elton rejected the accusation of partisanship.

    "When we began investigating this, we had no idea that Sarah Palin would be a part of the national ticket," said Elton, an Obama supporter.

    The report notes a few instances in which Palin pressed the case against trooper Mike Wooten, but it was her husband, Todd, who led the charge. Todd Palin had extraordinary access to the governor's office and her closest advisers and he used that access to try to get Wooten fired.

    Gov. Palin knowingly "permitted Todd to use the governor's office and the resources of the governor's office, including access to state employees, to continue to contact subordinate state employees in an effort to find some way to get Trooper Wooten fired," Branchflower's report reads.

    Wooten had been in hot water before Palin became governor over allegations that he illegally shot a moose, drank beer in a patrol car and used a Taser on his stepson. The Palins said they feared for their family's safety after Wooten made threats against them.

    In proceedings revealed by the report, former Alaska State Trooper Col. Julia Grimes told investigators that Sarah Palin called her in late 2005 to discuss why Wooten hadn't been fired, and Grimes told her the inquiry was confidential by law.

    "Her questions were how can a trooper who behaves this way still be working," Grimes said. "I asked her to please trust me, that because I can't tell her details I would ask her to please trust me that I would take the appropriate action if and when I knew what the findings were. ... I couldn't have another conversation with her about it because, again, it's protected by law."

    Grimes said Todd Palin also contacted her by telephone in late 2005 to discuss the confidential investigation of Wooten.

    Wooten's disciplinary case was settled in September 2006 - months before Palin was elected governor - and he was allowed to continue working as a trooper.

    After Palin's election, her new public safety commissioner, Monegan, said he was summoned to the governor's office to meet Todd Palin, who said Wooten's punishment had been merely a "slap on the wrist." Monegan said he understood the Palins wanted Wooten fired. "I had this kind of ominous feeling that I may not be long for this job if I didn't somehow respond accordingly," Monegan told the investigator.

    For months afterward, Todd Palin filed complaints about Wooten, saying he was seen riding a snowmobile after he had filed a worker's compensation claim and was seen dropping off his children at school in his patrol car.

    Monegan said Wooten's doctor had authorized the snowmobile trip and his supervisor had approved his use of the patrol car. Monegan said Alaska's attorney general later called him to inquire about Wooten, and Monegan told him they shouldn't be discussing the subject.

    "This was an issue that apparently wasn't going to go away, that there were certainly frustrations," Monegan said. "To say that (Sarah Palin) was focused on this I think would be accurate."

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    Associated Press writer Adam Goldman contributed to this report.