konane's Blog

"Too late for Obama to turn it around? Plus: The left's visionaries lost their bearings on drugs

Long commentary but very worth the read.   Am also totally disgusted by the GOP because they held hands with Democrats to get us where we are now.  Believe we'll see a rise of a third party in the near future.

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"Too late for Obama to turn it around?
Plus: The left's visionaries lost their bearings on drugs -- but the GOP is led by losers


By Camille Paglia
Source Salon

"Sept. 9, 2009 | What a difference a month makes! When my last controversial column posted on Salon in the second week of August, most Democrats seemed frozen in suspended animation, not daring to criticize the Obama administration's bungling of healthcare reform lest it give aid and comfort to the GOP. Well, that ice dam sure broke with a roar. Dissident Democrats found their voices, and by late August even the liberal lemmings of the mainstream media, from CBS to CNN, had drastically altered their tone of reportage, from priggish disdain of the town hall insurgency to frank admission of serious problems in the healthcare bills as well as of Obama's declining national support.

But this tonic dose of truth-telling may be too little too late. As an Obama supporter and contributor, I am outraged at the slowness with which the standing army of Democratic consultants and commentators publicly expressed discontent with the administration's strategic missteps this year. I suspect there had been private grumbling all along, but the media warhorses failed to speak out when they should have -- from week one after the inauguration, when Obama went flat as a rug in letting Congress pass that obscenely bloated stimulus package. Had more Democrats protested, the administration would have felt less arrogantly emboldened to jam through a cap-and-trade bill whose costs have made it virtually impossible for an alarmed public to accept the gargantuan expenses of national healthcare reform. (Who is naive enough to believe that Obama's plan would be deficit-neutral? Or that major cuts could be achieved without drastic rationing?)

By foolishly trying to reduce all objections to healthcare reform to the malevolence of obstructionist Republicans, Democrats have managed to destroy the national coalition that elected Obama and that is unlikely to be repaired. If Obama fails to win reelection, let the blame be first laid at the door of Speaker of the House Nancy Pelosi, who at a pivotal point threw gasoline on the flames by comparing angry American citizens to Nazis. It is theoretically possible that Obama could turn the situation around with a strong speech on healthcare to Congress this week, but after a summer of grisly hemorrhaging, too much damage has been done. At this point, Democrats' main hope for the 2012 presidential election is that Republicans nominate another hopelessly feeble candidate. Given the GOP's facility for shooting itself in the foot, that may well happen.

This column has been calling for heads to roll at the White House from the get-go. Thankfully, they do seem to be falling faster -- as witness the middle-of-the-night bum's rush given to "green jobs" czar Van Jones last week -- but there's a long way to go. An example of the provincial amateurism of current White House operations was the way the president's innocuous back-to-school pep talk got sandbagged by imbecilic support materials soliciting students to write fantasy letters to "help" the president (a coercive directive quickly withdrawn under pressure). Even worse, the entire project was stupidly scheduled to conflict with the busy opening days of class this week, when harried teachers already have their hands full. Comically, some major school districts, including New York City, were not even open yet. And this is the gang who wants to revamp national healthcare?

Why did it take so long for Democrats to realize that this year's tea party and town hall uprisings were a genuine barometer of widespread public discontent and not simply a staged scenario by kooks and conspirators? First of all, too many political analysts still think that network and cable TV chat shows are the central forums of national debate. But the truly transformative political energy is coming from talk radio and the Web -- both of which Democrat-sponsored proposals have threatened to stifle, in defiance of freedom of speech guarantees in the Bill of Rights. I rarely watch TV anymore except for cooking shows, history and science documentaries, old movies and football. Hence I was blissfully free from the retching overkill that followed the deaths of Michael Jackson and Ted Kennedy -- I never saw a single minute of any of it. It was on talk radio, which I have resumed monitoring around the clock because of the healthcare fiasco, that I heard the passionate voices of callers coming directly from the town hall meetings. Hence I was alerted to the depth and intensity of national sentiment long before others who were simply watching staged, manipulated TV shows.

Why has the Democratic Party become so arrogantly detached from ordinary Americans? Though they claim to speak for the poor and dispossessed, Democrats have increasingly become the party of an upper-middle-class professional elite, top-heavy with journalists, academics and lawyers (one reason for the hypocritical absence of tort reform in the healthcare bills). Weirdly, given their worship of highly individualistic, secularized self-actualization, such professionals are as a whole amazingly credulous these days about big-government solutions to every social problem. They see no danger in expanding government authority and intrusive, wasteful bureaucracy. This is, I submit, a stunning turn away from the anti-authority and anti-establishment principles of authentic 1960s leftism.

How has "liberty" become the inspirational code word of conservatives rather than liberals? (A prominent example is radio host Mark Levin's book "Liberty and Tyranny: A Conservative Manifesto," which was No. 1 on the New York Times bestseller list for nearly three months without receiving major reviews, including in the Times.) I always thought that the Democratic Party is the freedom party -- but I must be living in the nostalgic past. Remember Bob Dylan's 1964 song "Chimes of Freedom," made famous by the Byrds? And here's Richie Havens electrifying the audience at Woodstock with "Freedom! Freedom!" Even Linda Ronstadt, in the 1967 song "A Different Drum," with the Stone Ponys, provided a soaring motto for that decade: "All I'm saying is I'm not ready/ For any person, place or thing/ To try and pull the reins in on me."

But affluent middle-class Democrats now seem to be complacently servile toward authority and automatically believe everything party leaders tell them. Why? Is it because the new professional class is a glossy product of generically institutionalized learning? Independent thought and logical analysis of argument are no longer taught. Elite education in the U.S. has become a frenetic assembly line of competitive college application to schools where ideological brainwashing is so pandemic that it's invisible. The top schools, from the Ivy League on down, promote "critical thinking," which sounds good but is in fact just a style of rote regurgitation of hackneyed approved terms ("racism, sexism, homophobia") when confronted with any social issue. The Democratic brain has been marinating so long in those clichés that it's positively pickled.

Throughout this fractious summer, I was dismayed not just at the self-defeating silence of Democrats at the gaping holes or evasions in the healthcare bills but also at the fogginess or insipidity of articles and Op-Eds about the controversy emanating from liberal mainstream media and Web sources. By a proportion of something like 10-to-1, negative articles by conservatives were vastly more detailed, specific and practical about the proposals than were supportive articles by Democrats, which often made gestures rather than arguments and brimmed with emotion and sneers. There was a glaring inability in most Democratic commentary to think ahead and forecast what would or could be the actual snarled consequences -- in terms of delays, denial of services, errors, miscommunications and gross invasions of privacy -- of a massive single-payer overhaul of the healthcare system in a nation as large and populous as ours. It was as if Democrats live in a utopian dream world, divorced from the daily demands and realities of organization and management.

But dreaming in the 1960s and '70s had a spiritual dimension that is long gone in our crassly materialistic and status-driven time. Here's a gorgeous example: Bob Welch's song "Hypnotized." which appears on Fleetwood Mac's 1973 album "Mystery to Me." (The contemplative young man in this recent video is not Welch.) It's a peyote dream inspired by Carlos Castaneda's fictionalized books: "They say there's a place down in Mexico/ Where a man can fly over mountains and hills/ And he don't need an airplane or some kind of engine/ And he never will." This exhilarating shamanistic vision (wonderfully enhanced by Christine McVie's hymnlike backing vocal) captures the truth-seeking pilgrimages of my generation but also demonstrates the dangerous veering away from mundane social responsibilities. If the left is an incoherent shambles in the U.S., it's partly because the visionaries lost their bearings on drugs, and only the myopic apparatchiks and feather-preening bourgeois liberals are left. (I addressed the drugs cataclysm in "Cults and Cosmic Consciousness: Religious Vision in the American 1960s" in the Winter 2003 issue of Arion.)

Having said all that about the failures of my own party, I am not about to let Republicans off the hook. What a backbiting mess the GOP is! It lacks even one credible voice of traditional moral values on the national stage and is addicted to sonorous pieties of pharisaical emptiness. Republican politicians sermonize about the sanctity of marriage while racking up divorces and sexual escapades by the truckload. They assail government overreach and yet support interference in women's control of their own bodies. Advanced whack-a-mole is clearly needed for that yammering smarty-pants Newt Gingrich, who is always so very, very pleased with himself but has yet to produce a single enduring thought. The still inexplicably revered George W. Bush ballooned our national deficits like a drunken sailor and clumsily exacerbated the illegal immigration debate. And bizarrely, the hallucinatory Dick Cheney, a fake-testosterone addict who spooked Bush into a pointless war, continues to be lauded as presidential material.

Which brings us to Afghanistan: Let's get the hell out! While I vociferously opposed the incursion into Iraq, I was always strongly in favor of bombing the mountains of Afghanistan to smithereens in our search for Osama bin Laden and al-Qaida training camps. But committing our land forces to a long, open-ended mission to reshape the political future of that country has been a fool's errand from the start. Every invader has been frustrated and eventually defeated by that maze-like mountain terrain, from Alexander the Great to the Soviet Union. In a larger sense, outsiders will never be able to fix the fate of the roiling peoples of the Near East and Greater Middle East, who have been disputing territorial borderlines and slaughtering each other for 5,000 years. There is too much lingering ethnic and sectarian acrimony for a tranquil solution to be possible for generations to come. The presence of Western military forces merely inflames and prolongs the process and creates new militias of patriotic young radicals who hate us and want to take the war into our own cities. The technological West is too infatuated with easy fixes. But tribally based peoples think in terms of centuries and millennia. They know how to wait us out. Our presence in Afghanistan is not worth the price of any more American lives or treasure.

In response to persistent queries, I must repeat: No, I do not have a Facebook page, nor am I a "friend" on anyone else's Facebook. Nor do I Twitter. This Salon column is my sole Web presence. Whatever doppelgänger Camille Paglias are tripping the light fantastic out there (as in the haunted bus-station episode of "The Twilight Zone"), they aren't me!"

http://www.salon.com/opinion/paglia/2009/09/09/healthcare/

Entry #1,382

..."The president's proposals would give unelected officials life-and-death rationing powers.

Looks like the Federal Reserve power grab would have taught us by now to not place so much authority in one entity. 

Bait being used is awfully appealing.

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"Obama and the Bureaucratization of Health Care
The president's proposals would give unelected officials life-and-death rationing powers.


By SARAH PALIN
Source Wall Street Journal
September 8, 2009, 7:45 P.M. ET

"Writing in the New York Times last month, President Barack Obama asked that Americans "talk with one another, and not over one another" as our health-care debate moves forward.

I couldn't agree more. Let's engage the other side's arguments, and let's allow Americans to decide for themselves whether the Democrats' health-care proposals should become governing law.

Some 45 years ago Ronald Reagan said that "no one in this country should be denied medical care because of a lack of funds." Each of us knows that we have an obligation to care for the old, the young and the sick. We stand strongest when we stand with the weakest among us.

We also know that our current health-care system too often burdens individuals and businesses—particularly small businesses—with crippling expenses. And we know that allowing government health-care spending to continue at current rates will only add to our ever-expanding deficit.

How can we ensure that those who need medical care receive it while also reducing health-care costs? The answers offered by Democrats in Washington all rest on one principle: that increased government involvement can solve the problem. I fundamentally disagree.

Common sense tells us that the government's attempts to solve large problems more often create new ones. Common sense also tells us that a top-down, one-size-fits-all plan will not improve the workings of a nationwide health-care system that accounts for one-sixth of our economy. And common sense tells us to be skeptical when President Obama promises that the Democrats' proposals "will provide more stability and security to every American."

With all due respect, Americans are used to this kind of sweeping promise from Washington. And we know from long experience that it's a promise Washington can't keep.

Let's talk about specifics. In his Times op-ed, the president argues that the Democrats' proposals "will finally bring skyrocketing health-care costs under control" by "cutting . . . waste and inefficiency in federal health programs like Medicare and Medicaid and in unwarranted subsidies to insurance companies . . . ."

First, ask yourself whether the government that brought us such "waste and inefficiency" and "unwarranted subsidies" in the first place can be believed when it says that this time it will get things right. The nonpartistan Congressional Budget Office (CBO) doesn't think so: Its director, Douglas Elmendorf, told the Senate Budget Committee in July that "in the legislation that has been reported we do not see the sort of fundamental changes that would be necessary to reduce the trajectory of federal health spending by a significant amount."

Now look at one way Mr. Obama wants to eliminate inefficiency and waste: He's asked Congress to create an Independent Medicare Advisory Council—an unelected, largely unaccountable group of experts charged with containing Medicare costs. In an interview with the New York Times in April, the president suggested that such a group, working outside of "normal political channels," should guide decisions regarding that "huge driver of cost . . . the chronically ill and those toward the end of their lives . . . ."

Given such statements, is it any wonder that many of the sick and elderly are concerned that the Democrats' proposals will ultimately lead to rationing of their health care by—dare I say it—death panels? Establishment voices dismissed that phrase, but it rang true for many Americans. Working through "normal political channels," they made themselves heard, and as a result Congress will likely reject a wrong-headed proposal to authorize end-of-life counseling in this cost-cutting context. But the fact remains that the Democrats' proposals would still empower unelected bureaucrats to make decisions affecting life or death health-care matters. Such government overreaching is what we've come to expect from this administration.

Speaking of government overreaching, how will the Democrats' proposals affect the deficit? The CBO estimates that the current House proposal not only won't reduce the deficit but will actually increase it by $239 billion over 10 years. Only in Washington could a plan that adds hundreds of billions to the deficit be hailed as a cost-cutting measure.

The economic effects won't be limited to abstract deficit numbers; they'll reach the wallets of everyday Americans. Should the Democrats' proposals expand health-care coverage while failing to curb health-care inflation rates, smaller paychecks will result. A new study for Watson Wyatt Worldwide by Steven Nyce and Syl Schieber concludes that if the government expands health-care coverage while health-care inflation continues to rise "the higher costs would drive disposable wages downward across most of the earnings spectrum, although the declines would be steepest for lower-earning workers." Lower wages are the last thing Americans need in these difficult economic times.

Finally, President Obama argues in his op-ed that Democrats' proposals "will provide every American with some basic consumer protections that will finally hold insurance companies accountable." Of course consumer protection sounds like a good idea. And it's true that insurance companies can be unaccountable and unresponsive institutions—much like the federal government. That similarity makes this shift in focus seem like nothing more than an attempt to deflect attention away from the details of the Democrats' proposals—proposals that will increase our deficit, decrease our paychecks, and increase the power of unaccountable government technocrats.

Instead of poll-driven "solutions," let's talk about real health-care reform: market-oriented, patient-centered, and result-driven. As the Cato Institute's Michael Cannon and others have argued, such policies include giving all individuals the same tax benefits received by those who get coverage through their employers; providing Medicare recipients with vouchers that allow them to purchase their own coverage; reforming tort laws to potentially save billions each year in wasteful spending; and changing costly state regulations to allow people to buy insurance across state lines. Rather than another top-down government plan, let's give Americans control over their own health care.

Democrats have never seriously considered such ideas, instead rushing through their own controversial proposals. After all, they don't need Republicans to sign on: Democrats control the House, the Senate and the presidency. But if passed, the Democrats' proposals will significantly alter a large sector of our economy. They will not improve our health care. They will not save us money. And, despite what the president says, they will not "provide more stability and security to every American."

We often hear such overblown promises from Washington. With first principles in mind and with the facts in hand, tell them that this time we're not buying it."

http://online.wsj.com/article/SB10001424052970203440104574400581157986024.html

Entry #1,381

'Doctors told me it was against the rules to save my premature baby'

There were several photos in this article, follow link at bottom to view.

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'Doctors told me it was against the rules to save my premature baby'


By Vanessa Allen and Andrew Levy
Last updated at 7:58 AM on 09th September 2009

Source DailyMail.co.uk

"Doctors left a premature baby to die because he was born two days too early, his devastated mother claimed yesterday.

Sarah Capewell begged them to save her tiny son, who was born just 21 weeks and five days into her pregnancy  -  almost four months early.

They ignored her pleas and allegedly told her they were following national guidelines that babies born before 22 weeks should not be given medical treatment.
 
Battle: Sarah Capewell is fighting to have guidelines about caring for very premature babies changed

Miss Capewell, 23, said doctors refused to even see her son Jayden, who lived for almost two hours without any medical support.

She said he was breathing unaided, had a strong heartbeat and was even moving his arms and legs, but medics refused to admit him to a special care baby unit.

Miss Capewell is now fighting for a review of the medical guidelines.
 
Heartbreak: Sarah Capewell with her daughter Jodi, five
 
Sarah Capewell is fighting for new guidelines on when infants should be given intensive care after her premature son Jayden (right) was refused treatment

Medics allegedly told her that they would have tried to save the baby if he had been born two days later, at 22 weeks.

In fact, the medical guidelines for Health Service hospitals state that babies should not be given intensive care if they are born at less than 23 weeks.

The guidance, drawn up by the Nuffield Council, is not compulsory but advises doctors that medical intervention for very premature children is not in the best interests of the baby, and is not 'standard practice'.

James Paget Hospital in Norfolk refused to comment on the case but said it was not responsible for setting the guidelines relating to premature births.

A trust spokesman said: 'Like other acute hospitals, we follow national guidance from the British Association of Perinatal Medicine regarding premature births.'

Miss Capewell, who has had five miscarriages, said the guidelines had robbed her son of a chance of life.
 
Short life: Miss Capewell's son Jayden died two hours after he was born at James Paget Hospital in Gorleston, Norfolk, in October 2008

She said: 'When he was born, he put out his arms and legs and pushed himself over.

A midwife said he was breathing and had a strong heartbeat, and described him as a "little fighter".

I kept asking for the doctors but the midwife said, "They won't come and help, sweetie. Make the best of the time you have with him".'

She cuddled her child and took precious photos of him, but he died in her arms less than two hours after his birth.

Miss Capewell, who has a five-year-old daughter Jodie, went into labour in October last year at 21 weeks and four days after suffering problems during her pregnancy.

She said she was told that because she had not reached 22 weeks, she was not allowed injections to try to stop the labour, or a steroid injection to help to strengthen her baby's lungs.

Instead, doctors told her to treat the labour as a miscarriage, not a birth, and to expect her baby to be born with serious deformities or even to be still-born.
 
Treasured memories: Pictures of baby Jason's feet and hands

She told how she begged one paediatrician, 'You have got to help', only for the man to respond: 'No we don't.'

As her contractions continued, a chaplain arrived at her bedside to discuss bereavement and planning a funeral, she claims.

She said: 'I was sitting there, reading this leaflet about planning a funeral and thinking, this is my baby, he isn't even born yet, let alone dead.'

After his death she even had to argue with hospital officials for her right to receive birth and death certificates, which meant she could give her son a proper funeral.
 
Justice for Jayden: His mother is campaigning to change the law

She was shocked to discover that another child, born in the U.S. at 21 weeks and six days into her mother's pregnancy, had survived.

Amillia Taylor was born in Florida in 2006 and celebrated her second birthday last October. She is the youngest premature baby to survive.

Miss Capewell said: 'I could not believe that one little girl, Amillia Taylor, is perfectly healthy after being born in Florida in 2006 at 21 weeks and six days.

'Thousands of women have experienced this. The doctors say the babies won't survive but how do they know if they are not giving them a chance?'

Miss Capewell has won the support of Labour MP Tony Wright, who has backed her call for a review of the medical guidelines. He said: 'When a woman wants to give the best chance to her baby, they should surely be afforded that opportunity.'

What the medical guidelines say...
Guidance limiting care of the most premature babies provoked outrage when it was published three years ago.

Experts on medical ethics advised doctors not to resuscitate babies born before 23 weeks in the womb, stating that it was not in the child's 'best interests'.

The guidelines said: 'If gestational age is certain and less than 23+0 (i.e at 22 weeks) it would be considered in the best interests of the baby, and standard practice, for resuscitation not to be carried out.'

Medical intervention would be given for a child born between 22 and 23 weeks only if the parents requested it and only after discussion about likely outcomes.

The rules were endorsed by the British Association of Perinatal Medicine and are followed by NHS hospitals.

The association said they were not meant to be a 'set of instructions', but doctors regard them as the best available advice on the treatment of premature babies.

More than 80,000 babies are born prematurely in Britain every year, and of those some 40,000 need to be treated in intensive care.

The NHS spends an estimated £1 billion a year on their care.

But while survival rates for those born after 24 weeks in the womb have risen significantly, the rates for those born earlier have barely changed, despite advances in medicine and technology.

Medical experts say babies born before 23 weeks are simply too under-developed to survive, and that to use aggressive treatment methods would only prolong their suffering, or inflict pain.

The guidelines were drawn up by the Nuffield Council on Bioethics after a two-year inquiry which took evidence from doctors, nurses and religious leaders.

But weeks before they were published in 2006, a child was born in the U.S. which proved a baby could survive at earlier than 22 weeks if it was given medical treatment.

Amillia Taylor was born in Florida on October 24, 2006, after just 21 weeks and six days in the womb. She celebrated her second birthday last year.

Doctors believed she was a week older and so gave her intensive care, but later admitted she would not have received treatment if they had known her true age.

Her birth also coincided with the debate in Britain over whether the abortion limit should be reduced.

Some argued that if a baby could survive at 22 weeks then the time limit on abortions should be reduced.

The argument, which was lost in Parliament, followed a cut to the time limit in 1990 when politicians reduced it from 28 weeks to 24 weeks, in line with scientific evidence that foetuses could survive outside the womb at a younger age.

However, experts say cases like Amillia Taylor's are rare, and can raise false expectations about survival rates.

Studies show that only 1 per cent of babies born before 23 weeks survive, and many suffer serious disabilities."

http://www.dailymail.co.uk/news/article-1211950/Premature-baby-left-die-doctors-mother-gives-birth-just-days-22-week-care-limit.html

Entry #1,380

"Obama to seal US-UN relationship

Excerpt

"Obama to seal US-UN relationship

By Harvey Morris at the United Nations

Published: September 8 2009 19:59 | Last updated: September 8 2009 19:59

Source Financial Times

"Barack Obama will cement the new co-operative relationship between the US and the United Nations this month when he becomes the first American president to chair its 15-member Security Council. ............"

http://www.ft.com/cms/s/0/7d0c7a3a-9ca4-11de-ab58-00144feabdc0.html

Entry #1,379

"BORN IN THE USA? Shocker! Judge orders trial on eligibility issue

Congratulations Dr. Orly Taitz and all who've worked on getting this heard by the courts!!!! 

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"BORN IN THE USA?
Shocker! Judge orders trial on eligibility issue
Arguments planned Jan. 11 for major Obama challenge

Posted: September 08, 2009
4:42 pm Eastern

By Jerome R. Corsi
© 2009 WorldNetDaily

 


Is this the footprint of baby Barack Obama?

A California judge today tentatively scheduled a trial for Jan. 26, 2010, for a case that challenges Barack Obama's eligibility to be president based on questions over his qualifications under the requirements of the U.S. Constitution.

If the case actually goes to arguments before U.S. District Judge David Carter, it will be the first time the merits of the dispute have been argued in open court, according to one of the attorneys working on the issue.

In a highly anticipated hearing today before Carter, several motions were heard, including a resolution to long-standing questions about whether attorney Orly Taitz properly served notice on the defendants, which she had.

In a second ruling, Carter ordered that attorney Gary Kreep of the United States Justice Foundation can be added to the case to represent plaintiffs Wiley Drake and Markham Robinson, who had been removed by an earlier court order. Drake, the vice presidential candidate for the American Independent Party, and Robinson, the party's chairman, also were restored to the case.

Want to know for certain where Obama was born? Demand the truth by joining the petition campaign to make President Obama reveal his long-form, hospital-generated birth certificate!

But the judge did not immediately rule on Taitz' motion to be granted discovery – that is the right to see the president's still-concealed records. Nor did Carter rule immediately on a motion to dismiss the case, submitted by the U.S. government, following discussion over Taitz' challenge to the work of a magistrate in the case.

The judge did comment that if there are legitimate constitutional questions regarding Obama's eligibility, they need to be addressed and resolved.

Carter ordered a hearing Oct. 5 on the motion to dismiss and ordered arguments submitted on the issue of discovery.

If the case survives that challenge, a pretrial hearing has been scheduled for Jan. 11 and the trial for two weeks later.

The case would be the first time, according to Kreep, that the actual merits of the dispute will have been heard in open court. A multitude of such disputes have been rejected out of hand by various state and federal courts. Even the U.S. Supreme Court repeatedly has rejected urgent appeals to hear the evidence.

The suit alleges Obama is actually a citizen of Indonesia and "possibly still citizen of Kenya, usurping the position of the president of the United States of America and the commander-in-chief."


WND has reported on dozens of legal challenges to Obama's status as a "natural born citizen." The Constitution, Article 2, Section 1, states, "No Person except a natural born Citizen, or a Citizen of the United States, at the time of the Adoption of this Constitution, shall be eligible to the Office of President."

Some of the lawsuits question whether he was actually born in Hawaii, as he insists. If he was born out of the country, Obama's American mother, the suits contend, was too young at the time of his birth to confer American citizenship to her son under the law at the time.

Other challenges have focused on Obama's citizenship through his father, a Kenyan subject to the jurisdiction of the United Kingdom at the time of his birth, thus making him a dual citizen. The cases contend the framers of the Constitution excluded dual citizens from qualifying as natural born.

Complicating the situation is Obama's decision to spend sums estimated in the hundreds of thousands of dollars to avoid releasing a state birth certificate that would put to rest the questions.

WND has reported that among the documentation not yet available for Obama includes his kindergarten records, Punahou school records, Occidental College records, Columbia University records, Columbia thesis, Harvard Law School records, Harvard Law Review articles, scholarly articles from the University of Chicago, passport, medical records, files from his years as an Illinois state senator, his Illinois State Bar Association records, any baptism records, and his adoption records.

In the U.S. Justice Department's motion to dismiss, attorneys didn't address the concerns directly, but instead focused their efforts on technical procedures, suggesting the matter can't be decided in court and that the dozens of plaintiffs cannot demonstrate they have been injured by having Obama in the Oval Office.

See the movie Obama does not want you to see: Own the DVD that probes this unprecedented presidential eligibility mystery.

 

"It is clear, from the text of the Constitution, and the relevant statutory law implementing the Constitution's textual commitments, that challenges to the qualifications of a candidate for president can, in the first instance, be presented to the voting public before the election, and, once the election is over, can be raised as objections as the electoral votes are counted in the Congress," wrote Assistant U.S. Attorneys Roger West and David DeJute. "Therefore, challenges such as those purportedly raised in this case are committed, under the Constitution, to the electors, and to the Legislative branch."

President Obama's defenders also said they would file a motion seeking to block any discovery of evidence at this point.

Kreep said said his addition to the case probably will mean additional arguments over the president's eligibility.

Among the long list of plaintiffs are former ambassador and presidential candidate Alan Keyes and longshot vice-presidential candidate Gail Lightfoot, both of whom ran in 2008.

Justice officials say because neither had a mathematical chance at winning, they were not directly harmed by the election of Obama.

But among the issues that appear to be looming is a claim that Obama's actual birth certificate from Kenya has emerged.

As WND reported over the holiday weekend, Lucas Smith, the man who tried to sell an alleged Barack Obama Kenyan birth certificate on eBay, filed court papers insisting – under threat of perjury – that the Obama birth certificate in his possession is the genuine article.


The document above is alleged by Lucas Smith to be Barack Obama's original, authentic birth certificate from Kenya.

 

Taitz posted on her blog Smith's declaration, which claims he obtained the alleged birth certificate from Coast General Hospital in Mombasa, Kenya, and insists it's real.

"The true and correct photocopy of the birth certificate obtained is attached to this affidavit as Exhibit A," the declaration reads. "I declare, certify, verify, state and affirm under penalty of perjury under the laws of the United States of America that the foregoing statements of fact and descriptions of circumstances and events are true and correct."

Smith's affidavit, which includes a copy of the certificate, has been filed Carter, whose works in the Central District of California.

In his filing, Smith declares that he traveled to Kenya in February and paid off a military officer in order to obtain a copy of the birth certificate from Coast General Hospital in Mombasa. The declaration also states that the hospital administrator signed and sealed the copy, which indicates Obama's birth in Africa on Aug. 4, 1961, at 7:24 p.m.

As WND reported, Smith released a video of the document he claims is a copy of Obama's hospital birth record, though WND's own investigation failed to substantiate the document's authenticity..

WND first reported earlier this year when Lucas Smith, a former resident of Cedar Rapids, Iowa, and known by the eBay handle "colmado_naranja," claimed to have a document proving Obama's birth in Mombasa, Kenya.

After promising to reveal the document to WND, Smith then dropped communications with a team of people offering to help him verify the document, only fueling the belief the sale – and therefore the alleged document – was a scam.

WND followed Smith's ongoing saga as "colmado_naranja" as he attempted several times to sell the document, or photos and stories surrounding it, on eBay, only to have the auctions repeatedly removed by site administrators.

WND also launched an investigation into "colmado_naranja," which led through several online aliases and reported collaborators, including Dawnella Wilson, "InspectorSmith" and, eventually, Lucas Smith.

Smith, whose background includes a lengthy criminal record and a reported attempt to sell his kidney to a man in need of organ transplant, nonetheless insists that his motives are above board, even if his past looks dubious.

"I do have a background. I've made mistakes in my life," Smith told WND in an e-mail. "It took a guy like me to go and get tangible proof about Obama. I don't mind breaking a few laws or policies here and there. I don't mind paying the military in foreign countries to look the other way ... The military [in Africa] will grant you access to anything for just a few dollars. People are starving. So yes, it takes a guy like me to get things done once in a while."

An enhanced version of the Smith YouTube video has been published by Repubx.com, permitting a more legible examination of the document.

WND has also determined that a supposed Kenyan birth certificate previously released by attorney Orly Taitz probably is a forgery.

WND has reported on an authentic 1961-era Kenyan birth certificate, which looks distinctly different from the document Smith released in the video.


Authentic 1961-era Kenyan birth certificate obtained by WND

Because of the dearth of information about Obama's eligibility, WND founder Joseph Farah has launched a campaign to raise contributions to post billboards asking a simple question: "Where's the birth certificate?"


"Where's The Birth Certificate?" billboard at the Mandalay Bay resort on the Las Vegas Strip

 

The campaign followed a petition that has collected more than 450,000 signatures demanding proof of his eligibility, the availability of yard signs raising the question and the production of permanent, detachable magnetic bumper stickers asking the question.

The "certification of live birth" posted online and widely touted as "Obama's birth certificate" does not in any way prove he was born in Hawaii, since the same "short-form" document is easily obtainable for children not born in Hawaii. The true "long-form" birth certificate – which includes information such as the name of the birth hospital and attending physician – is the only document that can prove Obama was born in Hawaii, but to date he has not permitted its release for public or press scrutiny.

Oddly, though congressional hearings were held to determine whether Sen. John McCain was constitutionally eligible to be president as a "natural born citizen," no controlling legal authority ever sought to verify Obama's claim to a Hawaiian birth."


http://www.wnd.com/index.php?fa=PAGE.view&pageId=109242

Entry #1,378

"An Address To Our Schoolchildren

Tuesday, September 8. 2009

Posted by Karl Denninger

Source Market Ticker

"An Address To Our Schoolchildren

"My Fellow Americans.

"Today you heard from our President, Barack Obama.  Some of your parents voted for him, and most of the rest of the country voted for his opponent, John McCain.

What you heard from President Obama today was a plea for you to pay attention in school and finish your education.

What you did not hear from President Obama today was that your government, together with your school, has refused to provide you with the knowledge necessary for you to understand what has happened to this nation and its economy over the last 30 years.

This is not an accident.

In math class you are taught "the power function", which you think of as squares, cubes, and similar.  It is written as 4^2, or, expanded, as 4 x 4.

But what you're not taught is how this applies to finance, even though every household and every American has their own financial challenges, and every person in America should understand how finance works.

Neither Republican or Democrat wants you to see this graph.  This is how much each American, from 1970 to today, is in debt because of our government's policies:

2009's "fiscal year" (that is, the year for accounting purposes) doesn't close until the end of this month.  But as of today, this graph is correct (and will only get worse in the next three weeks.)

Let me be clear: In the last two years your mother, father, school teacher, grandma and grandpa have stuck each and every American with $10,000 in personal debt, and since 2000 the amount of debt you have had forced upon you has doubled.

This debt was forced upon you not because of the need to defend this country from a foreign invader such as occurred on December 7th 1941 or because of the War on Terrorism, but rather because a bunch of greedy men and women on Wall Street and Washington DC, both Democrat and Republican, lied, cheated and stole money from ordinary Americans for more than a decade.

You have undoubtedly been taught that stealing is wrong, and indeed, that if you steal you can go to jail.  But you need to understand that the law applies only to "little people" like you.  If you work on Wall Street, own a fancy suit and private airplane, and steal millions and millions of dollars from people worldwide, instead of going to jail you will be rewarded with a huge bonus and be able to buy a really big boat, while the cost of your stealing will be forced on the children - and unborn - throughout America.

That's you, by the way.

You need to understand that this is not a "Democrat" or "Republican" thing.  Indeed, both Democrats and Republicans in Washington DC know about this and both are equally responsible for letting it happen.  Both Democrats and Republicans voted for a law called "TARP" and allowed The Federal Reserve to take actions over the last two years that were responsible for you having to pay that extra $10,000.  They voted for this law even though ordinary Americans just like you told them not to vote for it - in fact, for every person who called their offices or sent an email to tell them to vote "yes", 100 people called, faxed or emailed and told them to vote "no".

They voted "Yes" anyway and as a result you must pay that $10,000 in the future, whether you want to or not, so that those who robbed, cheated and stole can have their yacht and your parents can lose their house to foreclosure.

President Bush signed that law and President Obama refused to step in and stop it when he became President.  President Bush is a Republican and President Obama is a Democrat.  Do not be deceived - both major political parties are equally responsible for this outrage - and for forcing you to pay.

The worst part of the graph above is that this is not all of the debt you must pay.  In fact your "share" of the debt is five times what's shown on that graph.

That's right my fellow Americans - you are in debt for more than $200,000 - each and every one of you, including every school child in America.

Why?

Because our government is lying about how much everyone owes.  See, our government has promised everyone free medical care and free retirement money.  But our government doesn't have the money to pay for that, since every penny that the government has must come from either borrowing or taxing, and the government isn't forced to follow the law when it comes to honest accounting - that is, honest math.

When you cheat on your math test in school you get an "F". 

But when the government cheats on its math they get re-elected, because our schools refuse to teach students just like you how math applies to finance, and as a result 95% of Americans don't understand that they're being screwed to the tune of $200,000 each.

That's because the schools are run by the government, and for that reason the government controls what you learn - and what you don't.

Our debt is supposedly $11 trillion dollars.  But the money the government must have in the future to pay for those free benefits, Social Security and Medicare, doesn't exist.  The former Comptroller of the Currency of America (that's a fancy word for the chief guy who keeps track of the books), David Walker, has said that the real debt is more than $53 trillion dollars, or almost five times what you see in the graph above.

Why was this allowed to happen?

It really is quite simple:

They're big, and you're small.  They're right, and you're wrong. 

Just because they said so. 

While you were out playing in the back yards and playgrounds of America both Democrats and Republicans were making promises they could not keep.  Instead of raising taxes right now for whatever they wanted to promise they instead decided to send you the bill, and your parents went along with it.

So when you come home from school this afternoon say "Thanks" to your Mom, Dad, Grandpa and Grandma for selling you into slavery.

For obligating you to pay for the stealing that has gone on for nearly ten years on Wall Street and in Washington DC.

For allowing those very same lies to cost your family (or that of someone you know and love) their house, their job, and their future.

And finally, make sure you thank your Teachers and Principal for not teaching you the math you need to be able to understand what is really going on with your government, so you don't get mad enough to put a stop to it - or demand that your parents do so.

After all, they're right and you're wrong.

They're big and you're small.

They, including your school teachers, principals and school boards, won't teach you about how math applies to all of this, because if they did, they couldn't lie to you any more and you might revolt (quite literally) - either now or later.

So sit back and enjoy your childhood; your time to become a slave, when you leave school and start having to pay that $200,000 by having it taken from you in the form of taxes will be here soon enough.

Wall Street and the politicians, both Democrats and Republicans, thank you for quietly accepting your role as a slave to pay for their yachts, along with the lies, cheating and stealing that have been going on literally every day for more than ten years.

Now sit down at your desk, shut up and behave while your teachers show you only what the government wants you to know.

Wall Street and Washington DC are relying on you, our nation's youth, refusing to demand the truth.

They're sure you won't disappoint them."



http://market-ticker.org/archives/1416-An-Address-To-Our-Schoolchildren.html

Entry #1,377

"Six Million Home Foreclosures: Are FDIC Insured Banks the Next Time Bomb? (Part 1)

Six Million Home Foreclosures: Are FDIC Insured Banks the Next Time Bomb? (Part 2)

http://seekingalpha.com/article/159368-six-million-home-foreclosures-are-fdic-insured-banks-the-next-time-bomb-part-2

_________

 
"Six Million Home Foreclosures: Are FDIC Insured Banks the Next Time Bomb? (Part 1)
Andrew Butter
September 01, 2009
Source Seeking Alpha

"Over a year ago Hank Paulson declared "The US Banking System Is A Safe and Sound One", the market's reaction to that piece of news was to short Fannie (FNM) and Freddie (FRE) into oblivion. A key issue there was holdings of mortgaged backed securities, specifically RMBS; valuations of those things depended on (a) their credit rating, (and once the LTV started to slip the rules said they had to be downgraded, so the price tanked), and (b) there was a rule of thumb that the value of those things was what an equivalent Treasury cost, less the cost of a CDS to insure them; when fear took over, the cost of a CDS went through the roof, the "market" (it never was a real market), froze. Then there was Lehman.

What drove that crisis was fear of the future, and the reason so much money was required to bail out the players ($2.7 trillion so far) was that previously if you had a "good credit score" you could borrow short-term Treasures, and buy an RMBS on 100% margin, and make a fortune; then the margins got called.

What happened was nothing different from a gambler going into a casino, borrowing from the house, using that money to bet on a "sure thing", and losing. Lucky for the gambler the "house" decided he was too big to fail - if you or I were to do something like that, we would be lucky to get away with a pair of broken legs.

Now the future is threatening to arrive:

There are two issues, (a) how much of that $2.7 trillion paid out mainly by the Fed (largely without any oversight by Congress) will get paid back, and (b) what's going to happen to the legacy banks who (then) had the luxury of being able to "take a view" on their portfolios of "originate and hold", and make a provision.

Right now the "reserves for losses" of FDIC insured banks is $211 billion on a portfolio of $7.625 trillion of loans and leases plus another $1.365 trillion of RMBS. In the circumstances that looks a tad light.

But the die is still rolling, and where it ends up will determine how much the "Too Big To Fail" card-sharks pay back, and how much of the $1.422 trillion of equity capital of the FDIC banks gets destroyed.

It's sometimes easy to forget that in this war the front line is foreclosures; although you wouldn't think that from the news. All you get is occasional pretty charts from the Mortgage Bankers Association with percentages (it's never quite clear of what), plus sound bites from the rating agencies like "the cure rate went down last month" or from RealtyTrac: "total filings went up last month".

From that trickle of managed, massaged and censored dispatches, it sounds suspiciously like somebody (or some-bodies), is trying to hide something.

Like a ticking bomb?

Perhaps the bottom in house prices was in May or perhaps there will be another leg down, but that's starting to be academic; a bottom is somewhere in the neighborhood. The story now is foreclosures; that's what drove house prices down to where they are now and that's what will keep them down. The acid on that cake and the nightmare for anyone in negative equity, is how many there will be by the time this is all over?

Since January 2005 over two million homes in USA have been foreclosed, that's about 1.7% of the total housing stock.



Many of those were family homes, so that's probably already directly affected about 3.5% of the American population.

 

This is the Bomb:

Right now in the USA there are over two million mortgages in either the first stage or the second stage of foreclosure; a large majority of those will end in foreclosure. At the current rate of "clearance" it will take two years for all of those to be processed.

And that's not counting new ones getting added to the pipeline at a rate of about 100,000 a month. That's clearly not something that anyone thought worth mentioning in the one hundred pages of turgid drivel "The Industry" shoveled out over the past three months; that I ploughed through to make sure I got it right (dear reader - just for you). And you wonder why there is a credit crunch?

The News Is, It Ain't Pretty

The headline data that is typically released, for example by RealtyTrac (i.e."360,000 Filings In July") is an aggregation that has to be disaggregated to make any sense of it, there are three stages:

  • Stage 1: A notice of default is posted in the County Recorder's Office
  • Stage 2: A Notice of sale is announced
  • Final Stage: A public auction supervised by the trustee who transfers the deed.

The borrower can normally "cure" the process at any point, typically up to five days before the date of sale, although some mortgages give the lender the power to push through to disposal of the property as soon as the loan becomes delinquent. In most cases the process is non judicial and governed by the wording of the mortgage so there is no requirement to involve the Courts and the only option the borrower has to stop or delay the process is to pay up.

It's hard to get data, the best source I found was Mark Hanson plus there was data here and there from RealtyTrac. This is what I managed to cobble together:

That's not complete data, presumably that exists somewhere but it's not in the public domain. The reason there are more 1st Stage than 2nd Stage than Final Stage is (a) because some mortgages are cured (no hard data on how many) and (b) because the flow through from 1st to 2nd and Final is not linear.

An optimist might say that it looks like there is a top developing since Stage 1 and Final Stage are flattening; here are some theories:

  1. That could perhaps be due to the recent moratorium from Q-4 2008 through Q-2 2009; but perhaps all that did was increase the backlog, and cure rates for those are going down (according to Fitch).
  2. Another possible reason could be that the "system" just can't handle more than about 80,000 final foreclosures a month, perhaps that's about the limit. In 2005 the average was less than 20,000 a month, 80,000 is a 400% increase. For every foreclosure somebody from the lender has to show up and make decisions, the trustee has to show up and administer the auction and transfer the deed, perhaps there just aren't enough "somebody's" who understand the procedures to go round?
  3. There again it might be that the lenders could be trying harder to look for ways to modify loans so that foreclosure can be avoided; that takes time (putting together an offer, squaring it away - particularly if the loan is part of a pool and the pool has covenants, then getting an answer back from the borrower, perhaps negotiating).
  4. Or could it be that when a loan goes from "Non-current" to "loss" the banks or the service providers in the case of RMBS or CDO, have to book that number as a loss, not a provision? And that really messes up "mark-to-fantasy" accounting.

Which?


This is a plot of the difference between the S&P Case-Shiller 20 City Index and the final foreclosure number with a six-month lag, starting at the top where it was 207 (i.e. in January 2008 the Index was 181, so the difference is 26 and that's compared to foreclosures in June 2008 on the chart (six months later)). That's a measure of the Negative Equity of households.

This is the way I read that chart:

  1. There is clearly a relationship between Final Stage foreclosures and the amount of "negative equity"; also the moratorium had an effect, if the trend line had continued by now there would be 160,000 final foreclosures a month (assuming there had been enough capacity to deal with them), so in that sense the moratorium was a success, it "saved" 570,000 homes from foreclosure.
  2. It looks as if the moratorium also slowed down the number of 1st Stage filings which appear also to have stepped down from where they were headed in July and August last year, but are clearly driven by the "negative equity index", although thanks to the moratorium, the effect of that was from a lower base. So perhaps 400,000 1st Stage filings were "saved" there.

That appears to go against the theory that the moratorium encouraged or encourages people to default.

It's interesting how bankers, accountants and rating agencies never seem to miss an opportunity to blame their incompetence on the innate dishonesty, lack of personal ethics and downright crookedness of ordinary Americans, as if this whole thing was caused by Liar Loans, i.e. Liars. One of the turgid self-satisfied reports I read was about how the FBI "ought" to mobilize up to catch the people who "lied" as if that was what caused this disaster. Well I've met a lot of bankers, accountants and people from rating agencies, and I've also met a lot of ordinary Americans, and I don't think that I need to explain where my sympathies lie   ( http://seekingalpha.com/article/157808-liar-loans-not-the-problem )   in that department. The track of the blue dots appears to prove my point.

It is likely also that easing off on foreclosures, was one, and perhaps the only reason for the recent "bounce" in the S&P Case-Shiller Index (helped perhaps by seasonal factors).

The Effect Of The Moratorium

The problem is that over the past nine months, despite the moratorium, another 1.2 million new 1st Stage Fillings were made, yet "only" 850,000 "left" the system to foreclosure, so that's another 350,000 in the system on top of the estimated 1,750,000 that were in the system in the first place (1st and 2nd Stage).

So that's 2,100,00 still "stuck" in the system, less the "cures", which are hard to gauge, I could not find consistent data on that.

Although if you have gone past the 1st Stage to once an auction date has been set (2nd Stage), the chances of modification or cure are much less; and from the first chart it is clear that the moratorium had little or no effect on the progression from 1st Stage to 2nd Stage. That suggests that unless new measures are brought in, the system might simply be playing catch up. "

 

Entry #1,375

"China And The Buzz Of A Pending Bank Default

Kitco 30 day gold chart   http://www.kitco.com/LFgif/au0030lnb.gif 

_________

Via SteveQuayle.com

Thursday, September 3, 2009

"CHINA AND THE BUZZ OF A PENDING BANK DEFAULT

Source The Fundamental View Blogspot 

"Let’s put the pieces together here. Just this past weekend China announced that State Owned Enterprises (SOEs) will be allowed to default on commodity derivative contracts. Think of that. China has given the green light and authorized the defaulting on commodity derivative contracts.

This story broke over the weekend but has not gotten much mainstream media attention on this side of the pond. (North America). The only inference to it was the talk or “buzz” on the Wall Street floor that another bank was rumored to be close to defaulting. As Art Cashin of UBS Securities indicated in the video clip I posted earlier, normally when a market sells off on a rumor and the rumor turns out to be false, the market will tend to correct itself. IT DIDN’T.

The Reuters report cited 6 foreign banks that received letters indicating that the Chinese State Owned Enterprises would be given the green light to default on their derivatives.

A look at what a derivative actually is may be useful here. A Derivative is a financial instrument that is derived from some other underlying asset, index, event, value or condition. Rather than trade or exchange the underlying itself, derivative traders enter into an agreement to exchange cash or assets over time based on the underlying. A simple example is a futures contract: an agreement to exchange the underlying asset at a future date. Commercial and investment banks make up the foundation of the over the counter (OTC) derivatives market. Investors use derivatives to protect against risks, such as sudden changes in price or value of the underlying asset. Others tap derivatives to take on extra risk, in the hope of extra gains.

Well China owns billions of these products and it has finally come to light they have had enough of having the value of their derivatives manipulated by the manipulation of the price of the underlying asset. They have finally woken up to the fact that these derivatives have been bundled together like junk in a manner that resembles the mortgage backed derivatives that brought down the world markets last year.

Back to Reuters.  Some of the State Owned Enterprises that stated their potential intentions to default were Air China. China Eastern and Cosco. Mainly in part because they took major derivatives losses over the past year but also, concerns are arising that the derivatives that they were sold by these foreign institutions are garbage, underwater and may never see the light of day. So why continue to pay for them? So the concern in the financial world is that holders of these losing products may just walk away, not unlike a home owner with a $600,000 mortgage on a home valued at $475,000 deciding to just hand in their keys. However, read on...this has nothing to do with morgtgage backed products.  This time, the concern may be over Oil.

They (Reuters) cited 6 foreign banks.Where the story gets really intriguing is that among the major derivatives providers according to Reuters but also widely known in the industry, are Goldman Sachs, UBS and JP Morgan.

Here is the looming problem. These products are worth billions. One report that a good friend of mine did showed that if Goldman Sachs for example were to take this one up the rear, they could stand to lose 15 billion dollars. (This number is by no means confirmed)

An important history lesson is needed here. “Potential default” was the concern that sparked and prompted the most recent economic crisis. These intricately weaved products along with highly speculative CDOs and CDSs began to fall apart when the bubble that was in large part significantly contributed to and created by the financial institutions that were packaging this junk started to fall apart.

Imagine the impact for a brief moment if you will, on the impact to the financial landscape if China were to say “we are walking away” from those products. I would imagine that China, being the biggest purchaser of US debt, could surely collapse the US institutions that were at one point deemed too big to fail if they decide to go ahead with this plan.

This is why I don’t take tonight’s news that China purchased 50 billion dollars of IMF bonds lightly. In fact, I take it very seriously. This is why I take the buzz on the floor over the past two days very seriously as well as I do the incredible spike in Gold today. Most importantly, I do not take lightly the recent 25% correction we have seen in the Chinese Stock Market. Can all these events be interconnected some how? Is the Chinese stock collapse giving us a hint?

The Reuters story came out on Mon Aug 31, 2009 at 7:42am EDT. I find it quite interesting that the mainstream media did not take this more seriously. Reuters reported that the above noted Chinese companies have already issued letters to the banks. The Reuters article cites 4 clear points.

• State-owned firms may default on commodity hedges - report

• Bankers dismayed, confused by report; seek more details

• Lawyers question legality of the move

• Traders suspect lurking losses may have prompted warning (Adds analysts comments)

Analysts are fearing that if these three big companies came out and spelled out their losses and dismay at these products then this might prompt other large Chinese corporations to do the same.

Let’s take a closer look at the companies that have been mentioned in these news articles out of China. They are Air China, China Eastern and Cosco. If you ask me, this conundrum might have to do with oil. I deduce from this that if there is a problem brewing it has everything to do with their Oil Derivatives business.

Here’s a brief overview of what might happen should these companies, and others, default. The banks, namely Goldman Sachs, J.P. Morgan and from other accounts possibly Deutsche Bank will find themselves LONG on oil futures with no customers on the short side of the derivatives. This will most likely lead the banks to sell the excess oil futures without a care for the price. This is no different than what happened when Bear Stearns was forced to sell off their gold futures in March of 2008 which then resulted in a sharp downturn in the price of Gold.

Reuters stated:

Spokespersons at Goldman Sachs (GS.N) and UBS (UBSN.VX) declined comment, and media officials at Morgan Stanley (MS.N) and JPMorgan (JPM.N) were not immediately available for comment. All are major global providers of commodity risk management.

We have yet to hear their commentary. A Chinese statesperson was quoted as saying “"If we were among the banks receiving that letter, we would be very angry.” You bet your bottom dollar. You don’t think the firms listed above are angry, or, are they frightened that if the Chinese State Owned entities start taking affirmative action it could theoretically bring down some of the biggest remaining names on Wall Street?

Remember Reuters initial story was titled Beijing's derivative default stance rattles market. Read it thoroughly for more information.

Then, read the story that broke last Saturday to get a clearer perspective before the political and corporate spin started to enter the story. China warns banks on OTC hedge defaults –report.

“BEIJING, Aug 29 (Reuters) - Chinese state-owned enterprises (SOEs) may unilaterally terminate derivative contracts with six foreign banks that provide over-the-counter commodity hedging services, a leading financial magazine said.

China's SOE regulator, the State-owned Assets Supervision and Administration Commission (SASAC), had told the financial institutions that SOEs reserved the right to default on contracts, Caijing magazine quoted an unnamed industry source as saying.”

On September 1, 2009 Reuters said that the Banks, not the commodities would be at risk if China followed through.

Yes, legal battles would ensue should this happen and we can also expect to have Chinese political figures downplay the story in an effort to avert panic. However, if they can prove that these derivatives or the underlying asset was manipulated in a manner to profit the bank that issued the product then that may even do more damage than the default themselves.

Perhaps the “buzz” on the floor is indeed true. Perhaps we are going to see action that could annihilate one of the biggest Wall Street firms ever.

If there is one thing I have learned of late is that when the Chinese speak, we must listen. Their list of allies is ever growing and they are simply fed up of having to swallow the US garbage that has turned out to be toxic and dangerous to their highly controlled and coveted state owned enterprises.

I leave you with these thoughts that I alluded to above. The Chinese market has corrected 25%. This news broke this past weekend. New York saw a sharp sell-off on Monday. Buzz of a bank default hit the floor. The rumor did not abate and the selling intensified. The selling carried over into Tuesday. Gold, a classic hedge against troubled times has broken out to the upside, China has purchased 50 billion in IMF bonds and has been questioning the US dollar now for upwards of a year. China was up 5% overnight and Gold has continued to climb this morning.

Where there is smoke there is often fire."

http://thefundamentalview.blogspot.com/2009/09/china-and-buzz-of-pending-bank-default_03.html

Entry #1,374

"FBI Whistleblower: Hastert, Burton, Blunt, Other Members of Congress 'Bribed, Blackmailed'

Don't know much about this, but if true begins to reveal corruption most of us believe is rampant. Top article excerpt is the first I'd read about it.

________________

 
"Philip Giraldi: What FBI whistle-blower Sibel Edmonds found in translation

Why is her story being covered up?

12:14 PM CST on Sunday, February 17, 2008
Dallasnews.com

"Most Americans have never heard of Sibel Edmonds, and if the U.S. government has its way, they never will.

The former FBI translator turned whistle-blower tells a chilling story of corruption at Washington's highest levels – sale of nuclear secrets, shielding of terrorist suspects, illegal arms transfers, narcotics trafficking, money laundering, espionage. She may be a first-rate fabulist, but Ms. Edmonds' account is full of dates, places and names. ..........."

http://www.dallasnews.com/sharedcontent/dws/dn/opinion/points/stories/DN-sibeledmonds_17edi.ART.State.Edition1.45b446a.html
___________
Posted: September 5, 2009 03:14 PM
 
"FBI Whistleblower: Hastert, Burton, Blunt, Other Members of Congress 'Bribed, Blackmailed'
Brad Friedman
Source Huffington Post

Breaking Down the Under-Oath Disclosures of the Formerly-Gagged Sibel Edmonds...

"It has now been over a week since the video tape and transcript from the remarkable 8/8/09 deposition of former FBI translator-turned-whistleblower Sibel Edmonds was publicly released. Previously, the Bush Administration invoked the so-called "state secrets privilege" in order to gag Edmonds, in attempting to keep such information from becoming public.

The under-oath, detailed allegations include bribery, blackmail, espionage and infiltration of the U.S. government of, and by current and former members of the U.S. Congress, high-ranking State and Defense Department officials and agents of the government of Turkey. The broad criminal conspiracy is said to have resulted in, among other things, the sale of nuclear weapons technology to black market interests including Pakistan, Iran, North Korea, Libya and others.

Even as many of these allegations had been previously corroborated to varying extents, by a number of official government reports, documents and independent media outlets (largely overseas), not a single major mainstream media outlet in the U.S. has picked up on Edmonds' startling claims since her deposition has been made fully available.

Granted, last week was a busy news week, with the death of Ted Kennedy, the release of the CIA Inspector General's report on torture, and the announcement that Michael Jackson's death was ruled a homicide. And, it's true, a 4-hour deposition and/or 241-page transcript [PDF] is a lot of material to review, particularly given the wide scope of the charges being made here. Still, given the serious national security issues at stake, said to have the been among the most important matters of the past 8 years, one would think someone in the corporate MSM might have taken the time to go through the material, and report on it. Particularly as Edmonds' claims have previously been found "credible" "serious" and "warrant[ing] a thorough and careful review," by the DoJ Inspector General, and confirmed as such, on several occasions, by Senators Chuck Grassley (R-IA), Patrick Leahy (D-VT) and many many others.

So for the benefit of the U.S. media, and other readers, who may find it helpful for this large body of newly-available information to be culled down into more digestible pieces, I will attempt to break down the deposition, a bit, into some of its subject matter-based component parts. I will try to go through the major disclosures from the deposition, one-by-one, in a series of pieces which might help others to further report and/or investigate these breathtaking disclosures from a former FBI official who, following 9/11, listened to and translated wiretap recordings made from 1996 through 2002, in the FBI's counterintelligence and counterterrorism departments, under top-secret clearance.

In this first break-down article, we'll look at the answers given by Edmonds during her deposition in regard to bribery and blackmail of current and former members of the U.S. Congress, including Dennis Hastert (R-IL), Bob Livingston (R-LA), Dan Burton (R-IN), Roy Blunt (R-MO), Stephen Solarz (D-NY), Tom Lantos (D-CA, deceased) and an unnamed, currently-serving, married Democratic Congresswoman said to have been video-taped in a Lesbian affair by Turkish agents for blackmail purposes.

In further breakdown articles, we'll look at her disclosures concerning top State and Defense Department officials including Douglas Feith, Paul Wolfowitz and, perhaps most notably, the former Deputy Undersecretary of State, Marc Grossman, the third-highest ranking official in the State Department. Also, details on the theft of nuclear weapons technology; disclosures on Valerie Plame Wilson's CIA front company Brewster-Jennings; items related to U.S. knowledge of 9/11 and al-Qaeda prior to September 11, 2001; infiltration of the FBI translation department and more.

Though Edmonds was careful to not "discuss the intelligence gathering method by the FBI," she notes in her deposition that her claims are "Based on documented and provable, tracked files and based on...100 percent, documented facts."

Among the specific charges she levels against current and former U.S. Congress Members in the deposition:

Dennis Hastert: "[S]everal categories. The acceptance of large sums of bribery in forms of cash or laundered cash ... to make it look legal for his campaigns, and also for his personal use, in order to do certain favors ... make certain things happen for foreign entities and foreign governments' interests, Turkish government's interest and Turkish business entities' interests. ... other activities, too, including being blackmailed for various reasons. ... he used the townhouse that was not his residence for certain not very morally accepted activities. ... foreign entities knew about this, in fact, they sometimes participated in some of those not maybe morally well activities in that particular townhouse that was supposed to be an office, not a house, residence at certain hours, certain days, evenings of the week."

Stephen Solarz: "[A]s lobbyist ... acted as conduit to deliver or launder contribution and other briberies to certain members of Congress, but also in pressuring outside Congress, and including blackmail, in certain members of Congress."

Bob Livingston: "Until 1999 ... not very legal activities on behalf of foreign interests and entities, and after 1999 acting as a conduit to, again, further foreign interests, both overtly and covertly as a lobbyist, but also as an operative."

Tom Lantos: "[N]ot only ... bribe[ry], but also ... disclosing highest level protected U.S. intelligence and weapons technology information both to Israel and to Turkey. ... other very serious criminal conduct."

Unnamed Congresswoman: (Though not identified as such during the deposition, Edmonds has since confirmed her to be a Democrat) "[T]his Congresswoman's married with children, grown children, but she is bisexual. ... So they have sent Turkish female agents, and that Turkish female agents work for Turkish government, and have sexual relationship with this Congresswoman in her townhouse ... and the entire episodes of their sexual conduct was being filmed because the entire house, this Congressional woman's house was bugged. ... to be used for certain things that they wanted to request ... I don't know if she did anything illegal afterward. ... the Turkish entities, wanted both congressional related favoritism from her, but also her husband was in a high position in the area in the state she was elected from, and these Turkish entities ran certain illegal operations, and they wanted her husband's help. But I don't know if she provided them with those."

Roy Blunt: "[T]he recipient of both legally and illegally raised donations, campaign donations from ...Turkish entities."

Dan Burton: (And others) "[E]xtremely illegal activities against the United States citizens who were involved in [covert] operations that were ... against ... foreign government[s] and foreign entities against the United States' interests."

Hastert, Livingston and Solarz, as Edmonds notes in her deposition, would all go on to become highly-paid lobbyist for Turkey and/or Turkish public interest groups after they left the U.S. Congress.

The startling key exchanges relating specifically to criminal corruption by members of the U.S. Congress, from the 8/8/09 Sibel Edmonds deposition in the Schmidt v. Krikorian case, currently pending before the Ohio Election Commission, are now excerpted here.

The full deposition transcript is here [PDF], and more details, including the complete video-tape of the entire deposition, can be seen in our original coverage of the deposition's release. "

http://www.huffingtonpost.com/brad-friedman/fbi-whistleblower-hastert_b_277704.html
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"Obama Regulation Czar Advocated Removing People's Organs Without Explicit Consent

"Obama Regulation Czar Advocated Removing People’s Organs Without Explicit Consent
  Friday, September 04, 2009
By Matt Cover
Source CNSNews.com

Cass Sunstein speaking at Harvard Law School. (Photo: Matthew W. Hutchins, Harvard Law Record.)
"(CNSNews.com) – Cass Sunstein, President Barack Obama’s nominee to head the Office of Information and Regulatory Affairs (OIRA), has advocated a policy under which the government would “presume” someone has consented to having his or her organs removed for transplantation into someone else when they die unless that person has explicitly indicated that his or her organs should not be taken.
 
Under such a policy, hospitals would harvest organs from people who never gave permission for this to be done.  
 
Outlined in the 2008 book
Nudge: Improving Decisions About Health, Wealth, and Happiness,” Sunstein and co-author Richard H. Thaler argued that the main reason that more people do not donate their organs is because they are required to choose donation.
 
Sunstein and Thaler pointed out that doctors often must ask the deceased’s family members whether or not their dead relative would have wanted to donate his organs. These family members usually err on the side of caution and refuse to donate their loved one’s organs.
 
“The major obstacle to increasing [organ] donations is the need to get the consent of surviving family members,” said Sunstein and Thaler.
 
This problem could be remedied if governments changed the laws for organ donation, they said. Currently, unless a patient has explicitly chosen to be an organ donor, either on his driver’s license or with a donor card, the doctors assume that the person did not want to donate and therefore do not harvest his organs. Thaler and Sunstein called this “explicit consent.”
 
They argued that this could be remedied if government turned the law around and assumed that, unless people explicitly choose not to, then they want to donate their organs – a doctrine they call “presumed consent.”
 
“Presumed consent preserves freedom of choice, but it is different from explicit consent because it shifts the default rule. Under this policy, all citizens would be presumed to be consenting donors, but they would have the opportunity to register their unwillingness to donate,” they explained.
 
The difference between explicit and presumed consent is that under presumed consent, many more people “choose” to be organ donors. Sunstein and Thaler noted that in a 2003 study only 42 percent of people actively chose to be organ donors, while only 18 percent actively opted out when their consent was presumed.
 
In cases where the deceased’s wishes are unclear, Sunstein and Thaler argued that a “presumed consent” system would make it easier for doctors to convince families to donate their loved one’s organs.
 
Citing a 2006 study, Thaler and Sunstein wrote: “The next of kin can be approached quite differently when the decedent’s silence is presumed to indicate a decision to donate rather than when it is presumed to indicate a decision not to donate. This shift may make it easier for the family to accept organ donation.”
 
The problem of the deceased’s family is only one issue, Sunstein and Thaler said, admitting that turning the idea of choice on its head will invariably run into major political problems, but these are problems they say the government can solve through a system of “mandated choice.”
 
“Another [problem] is that it is a hard sell politically,” wrote Sunstein and Thaler. “More than a few people object to the idea of ‘presuming’ anything when it comes to such a sensitive matter. For these reasons we think that the best choice architecture for organ donations is mandated choice.”
 
Mandated choice is a process where government forces you to make a decision – in this case, whether to opt out of being an organ donor to get something you need, such as a driver’s license.
 
“With mandated choice, renewal of your driver’s license would be accompanied by a requirement that you check a box stating your organ donation preferences,” the authors stated. “Your application would not be accepted unless you had checked one of the boxes.”
 
To ensure that people’s decisions align with the government policy of more organ donors, Sunstein and Thaler counseled that governments should follow the state of Illinois’ example and try to influence people by making organ donation seem popular.
 
“First, the state stresses the importance of the overall problem (97,000 people [in Illinois] on the waiting list and then brings the problem home, literally (4,700 in Illinois),” they wrote.
 
“Second, social norms are directly brought into play in a way that build on the power of social influences [peer pressure]: ‘87 percent of adults in Illinois feel that registering as an organ donor is the right thing to do’ and ’60 percent of adults in Illinois are registered,’” they added.
 
Sunstein and Thaler reminded policymakers that people will generally do what they think others are doing and what they believe others think is right. These presumptions, which almost everyone has, act as powerful factors as policymakers seek to design choices.
 
“Recall that people like to do what most people think is right to do; recall too that people like to do what most people actually do,” they wrote. “The state is enlisting existing norms in the direction of lifestyle choices.”
 
Thaler and Sunstein believed that this and other policies are necessary because people don’t really make the best decisions.
 
“The false assumption is that almost all people, almost all of the time, make choices that are in their best interest or at the very least are better than the choices that would be made [for them] by someone else,” they said.
 
This means that government “incentives and nudges” should replace “requirements and bans,” they argued.
 
Neither Sunstein nor Thaler currently are commenting on their book, a spokesman for the publisher, Penguin Group, told CNSNews.com.
 
In a question-and-answer section on the Amazon.com Web site, Thaler and Sunstein answered a few questions about their book.
 
When asked what the title “Nudge” means and why people need to be nudged, the authors stated: “By a nudge we mean anything that influences our choices. A school cafeteria might try to nudge kids toward good diets by putting the healthiest foods at front.
 
“We think that it's time for institutions, including government, to become much more user-friendly by enlisting the science of choice to make life easier for people and by gently nudging them in directions that will make their lives better,” they wrote.
 
“…The human brain is amazing, but it evolved for specific purposes, such as avoiding predators and finding food,” said Thaler and Sunstein. “Those purposes do not include choosing good credit card plans, reducing harmful pollution, avoiding fatty foods, and planning for a decade or so from now. Fortunately, a few nudges can help a lot. …”

 

Entry #1,372

"Nurses Association demands medical masks be mandatory to protect against swine flu

First link from CDC shows who makes N-95 particle masks and in some instances where you can buy them.  They look like regular particle masks but have many more layers of filtration, and are usually available with and without exhale valves.   

"NIOSH-Approved Disposable Particulate Respirators (Filtering Facepieces)

http://www.cdc.gov/niosh/npptl/topics/respirators/disp_part/n95list1.html

______________

"Nurses Association demands medical masks be mandatory to protect against swine flu

By Richard Sisk and Erica Pearson
DAILY NEWS STAFF WRITERS
Source NY Daily News

Saturday, September 5th 2009, 4:00 AM

"Nurses across the state are demanding medical masks that effectively protect them from swine flu.

A day after scientists said health care workers who come in close contact with flu patients should wear an N95 respirator, the New York State Nurses Association rallied its 37,000 members.

In an open letter to State Commissioner of Health Richard Daines, the association called for respirators to be standard in New York, saying airborne germs are a "clear hazard for workers."

"Surgical face masks are not sufficient and particles can get through," said registered nurse Renee Gecsedi, the association's director of education practice and research.

Claire Pospisil, spokesperson for the State Department of Health, said the state's current guidelines are adequate and that nurses will be protected by mandatory vaccinations.

N95 respirators, which have filters and a tight seal, can be up to 12 times more effective than surgical masks against airborne swine flu germs, according to Institute of Medicine scientists, who advise the federal government.

As nurses worried about their own health, federal officials urged day care and Head Start workers, as well as parents of kids under 5, to take special swine flu precautions.

"We know this is a young person's flu," said Kathleen Sebelius, U.S. secretary of Health and Human Services. "Children less than 5 years old are at higher risk for complications. Children spread flu quickly."

She said little kids and people in close contact with them should get the regular flu shot now, and added that feds plan to quickly distribute the H1N1 vaccine to day care and Head Start centers once it is available."

http://www.nydailynews.com/ny_local/2009/09/05/2009-09-05_nurses_dont_mask_flu_fears.html

Entry #1,371

"Obama May Need Sense of Crisis to Revive Health-Care Overhaul

Which crisis are they going to hatch give this bottomless pit legs again?  The majority do NOT want government health care but they're too ensconced in their own power trip/grab to yeild the will of the majority ..... yet they proclaim democracy which is majority rule.

May the majority rule when congressional elections roll around again.

______________

"Obama May Need Sense of Crisis to Revive Health-Care Overhaul

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a5HawfX.Mxt8

Entry #1,369

"Controversial Obama Administration Official Denies Being Part of 9/11 "Truther" Movement, Apologize

Article below video.  Didn't know anything about Van Jones until viewing the video which is replete with quotes from his past, rather than heresay and inuendo. 

If a Republican president chose someone with such a radical, admittedly communist past as part of their administration we'd see marches on Washington and cities thoughtout America  ..... every day until that person was sent packing.

___________

Just found this ........ 

"Green jobs czar signed 'truther' statement in 2004

By Amanda Carpenter on Sept. 3, 2009
Source Washington Post

"..........His name is listed with 99 other prominent signatories supporting such an investigation on the 911Truth.org website, including Code Pink co-founders Medea Benjamin and Jodi Evans, comedienne Janeane Garofalo, Democratic Rep. Cynthia McKinney of Georgia and others.  He's identified as the executive director for the Ella Baker Center for Human Rights on the statement, which he founded before going to the White House. The statement is available here. Mr. Jones is number 46.

Mike Berger, a spokesman for 911Truth.org, told the Washington Times over the phone that all of the signers had been verified by their group.  He said 9/11Truth.org board members “spoke with each person on the list by phone or through email to individually confirm they had added their name to that list.”

http://www.washingtontimes.com/weblogs/back-story/2009/sep/03/green-jobs-czar-signed-truther-statement-in-2004/ 

________

 

_________

"Controversial Obama Administration Official Denies Being Part of 9/11 "Truther" Movement, Apologizes for Past Comments

Power, pop, and probings from ABC News Senior White House Correspondent Jake Tapper

September 03, 2009 9:19 PM

Source ABC News

"A top environmental official of the Obama administration issued a statement Thursday apologizing for past incendiary statement and denying that he ever agreed with a 2004 petition on which his name appears, a petition calling for congressional hearings and an investigation by the New York Attorney General into "evidence that suggests high-level government officials may have deliberately allowed the September 11th attacks to occur."

Van Jones, the Special Advisor for Green Jobs at the White House Council on Environmental Quality, is Number 46 of the petitioners from the so-called "Truther" movement which suggests that people in the administration of President George W. Bush "may indeed have deliberately allowed 9/11 to happen, perhaps as a pretext for war."

In a statement issued Thursday evening Jones said of "the petition that was circulated today, I do not agree with this statement and it certainly does not reflect my views now or ever."

He did not explain how his name came to be on the petition. An administration source said Jones says he did not carefully review the language in the petition before agreeing to add his name. 

"My work at the Council on Environmental Quality is entirely focused on one goal: building clean energy incentives which create 21st century jobs that improve energy efficiency and use renewable resources," Jones said in his statement tonight.

Jones also said in his statement that "In recent days some in the news media have reported on past statements I made before I joined the administration – some of which were made years ago.  If I have offended anyone with statements I made in the past, I apologize."

With a history of incendiary and provocative remarks, many of them dealing with his view of how whites exploit minorities, Jones has emerged as the subject of much conservative scrutiny in recent days, particularly from Fox News' Glenn Beck. (Jones defenders point out that most of Beck's criticism came after a group Jones helped found, Color of Change, began pushing advertisers to boycott Beck after he accused President Obama of being a racist.)

Jones is the best-selling author of The Green Collar Economy and a leader in the "green jobs" movement -- the idea that clean energy jobs can create jobs, especially in poor communities. He has been praised from leaders ranging from Al Gore to former eBay CEO (and Republican) Meg Whitman, who in May said  that Jones is doing "a marvelous job… I’m a huge fan of his. He is very bright, very articulate, very passionate. I think he is exactly right.”

Earlier this year a profile of Jones in the New Yorker, author Elizabeth Kolbert wrote that "the basic premise of Jones’s appeal—that combating global warming is a good way to lift people out of poverty—is very much open to debate. ... it’s not at all clear that the number of jobs created by, say, an expanding solar industry would be greater than the number lost through, say, a shrinking coal-mining industry. Nor is it clear that a green economy would be any better at providing work for the chronically unemployed than our present, 'gray' economy has been."

But those theories aren't the ones that have made Jones a lightning rod in the past few weeks.

In 2005 Jones told the East Bay Express that the acquittal of Rodney King's assailants in 1992 in that infamous police brutality case changed him significantly. "I was a rowdy nationalist on April 28th, and then the verdicts came down on April 29th," he said. "By August, I was a communist."

Jones and other young activists in 1994 formed a group called Standing Together to Organize a Revolutionary Movement, or STORM, rooted in Marxism and Leninsm. Two years later, Jones launched the Ella Baker Center, an Oakland, Calif., based "strategy and action center" which states that it tries to "promote positive alternatives to violence and incarceration."

In February during a discussion on energy at Berkeley, Calif., (and prior to his joining the Obama administration) Jones referred to Republicans using an epithet for a proctological orifice, which he called "a technical, political science term."

Asked why Republicans asserted more control of the Senate when they had a smaller majority before 2006, Jones said "the answer to that is, they're a--holes." He added that President Obama is not an a--hole, but, "I will say this. I can be an a--hole, and some of us who are not Barack Hussein Obama are going to have to start getting a little bit uppity."

"I apologize for the offensive words I chose to use during that speech," Jones said in a different written statement to Politico on Wednesday. "They do not reflect the views of this administration, which has made every effort to work in a bipartisan fashion, and they do not reflect the experience I have had since I joined the administration."

- jpt

http://blogs.abcnews.com/politicalpunch/2009/09/controversial-obama-administration-official-denies-being-part-of-911-truther-movement-apologizes-for.html

Entry #1,368