The Wake of Destruction Caused by Fundamentalist Capitalism

Monbiot summarizes the effects of our religiously-flavored free-market devotion:

By the mid-1990s, the doctrine of market fundamentalism – also known as neoliberalism – had almost all governments by the throat. Any politicians who tried to protect the weak from the powerful or the natural world from industrial destruction were punished by the corporate media or the markets. This extreme political doctrine – that governments must cease to govern – has made direct, uncomplicated action almost unthinkable. Just as the extent of humankind’s greatest crisis – climate breakdown – became clear, governments willing to address it were everywhere being disciplined or purged. Since then, this doctrine has caused financial crises and economic collapse, the destruction of livelihoods, mountainous debt, insecurity and the devastation of the living planet. It has, as Thomas Piketty demonstrates, replaced enterprise with patrimonial capitalism: neoliberal economies rapidly become dominated by rent and inherited wealth, in which social mobility stalls. But despite these evident failures, despite the fact that the claims of market fundamentalism have been disproven as dramatically as those of state communism, somehow this zombie ideology staggers on.

And the problems are going to get worse. When corporations and the rich control so much of our government, the problems affecting the majority of us are ignored for the problems that directly affect the rich and powerful. As more and more cash flows directly from the wealthy to the government, and Republicans work harder to pry open those floodgates a little more each day, it will accelerate the decay.

Disgust with our political system

Sometimes I excoriate conservatives for their misinformation, confusion and poor moral values. But I will turn the same rigor towards tearing apart Obama for his failure to "close the revolving door" between lobbying and Congressional service.

I can't say it better than Frank Rich did:

Lessig's "Lesterland"

You must watch this video on the corruption of our democracy:

Guess "Morning Joe" is off my list

I used to watch Morning Joe from time to time but I think I'll quit.

Apparently Joe Scarborough abruptly and strangely resigned from Congressional office six months after his re-election, in June of 2001. He had divorced his wife of thirteen years only a short time before. (after running as a "family values" conservative) On July 20, 2001, a couple who made an appointment to meet with him about a green card came into his office at 8 am and discovered the body of one of his interns, Lori Klausutis. There was no apparent cause of death, and the autopsy ruled she had hit her head on the desk and died after passing out due to a heart condition. This finding was quite controversial for many reasons.

A few months later, he married another former staffer, in October of 2001.

Today I read that the doctor who gave that controversial finding has been arrested for storing (selling?) body parts in a rental unit. He had lost his license twice before, once related to falsifying an autopsy. Does this mean Joe Scarborough had her killed? No. But it definitely is a news story worth reporting on.

At the very least people should seriously think twice about giving this guy the time of day.


References:
http://surftofind.com/scandal
http://www.opednews.com/articles/Is-Morning-Joe-Scarborou-by-Roger-Shuler-110315-128.html
http://www.americanpolitics.com/20010808Klausutis.html
http://en.wikipedia.org/wiki/Joe_Scarborough
http://open.salon.com/blog/rogershuler/2012/09/07/grisly_discovery_has_curious_ties_to_joe_scarborough
http://www.cnn.com/2012/08/29/us/florida-storage-body-parts/index.html
http://legalschnauzer.blogspot.com/2012/09/discovery-of-human-remains-in-florida.html

Crazy conservatives redux

Glenn Beck calls Obama a racist who hates white people (@1m19s into video). Popular media conservatives really are getting more and more unhinged.

Feldstein tells us that Obama wants single payer. That's news to me.

On another note, Orally explains that Canada doesn't have better healthcare than us, we just have more people. Their higher life expectancy is just a figment of statistical manipulation, see...

Conservatism at any cost

Shortly after the economy's tailspin began, I wrote two items on the misplacing of blame on the poor and/or Democrats and/or Fannie & Freddie for the credit crisis. One of the things I addressed in the last item I wrote was the market share of subprime lending was 84% privately-held. Today, Krugman links to an article with a neat graph showing the market share of mortgages through 2003, and the NYT published a great article on Phil Gramm, whose actions seriously undermined regulation of the financial markets and helped precipitate this crisis. Excerpts below the fold:

On Capitol Hill, Mr. Gramm became the most effective proponent of deregulation in a generation, by dint of his expertise (a Ph.D in economics), free-market ideology, perch on the Senate banking committee and force of personality (a writer in Texas once called him “a snapping turtle”). And in one remarkable stretch from 1999 to 2001, he pushed laws and promoted policies that he says unshackled businesses from needless restraints but his critics charge significantly contributed to the financial crisis that has rattled the nation.

He led the effort to block measures curtailing deceptive or predatory lending, which was just beginning to result in a jump in home foreclosures that would undermine the financial markets. He advanced legislation that fractured oversight of Wall Street while knocking down Depression-era barriers that restricted the rise and reach of financial conglomerates.

And he pushed through a provision that ensured virtually no regulation of the complex financial instruments known as derivatives, including credit swaps, contracts that would encourage risky investment practices at Wall Street’s most venerable institutions and spread the risks, like a virus, around the world.
...
“Phil Gramm was the great spokesman and leader of the view that market forces should drive the economy without regulation,” said James D. Cox, a corporate law scholar at Duke University. “The movement he helped to lead contributed mightily to our problems.”

In two recent interviews, Mr. Gramm described the current turmoil as “an incredible trauma,” but said he was proud of his record.

He blamed others for the crisis: Democrats who dropped barriers to borrowing in order to promote homeownership; what he once termed “predatory borrowers” who took out mortgages they could not afford; banks that took on too much risk; and large financial institutions that did not set aside enough capital to cover their bad bets.

But looser regulation played virtually no role, he argued, saying that is simply an emerging myth.

“There is this idea afloat that if you had more regulation you would have fewer mistakes,” he said. “I don’t see any evidence in our history or anybody else’s to substantiate it.” He added, “The markets have worked better than you might have thought.”
...
From 1999 to 2001, Congress first considered steps to curb predatory loans — those that typically had high fees, significant prepayment penalties and ballooning monthly payments and were often issued to low-income borrowers. Foreclosures on such loans were on the rise, setting off a wave of personal bankruptcies.

But Mr. Gramm did everything he could to block the measures. In 2000, he refused to have his banking committee consider the proposals, an intervention hailed by the National Association of Mortgage Brokers as a “huge, huge step for us.”
...
In late 1999, Mr. Gramm played a central role in what would be the most significant financial services legislation since the Depression. The Gramm-Leach-Bliley Act, as the measure was called, removed barriers between commercial and investment banks that had been instituted to reduce the risk of economic catastrophes. Long sought by the industry, the law would let commercial banks, securities firms and insurers become financial supermarkets offering an array of services.
...
In November 1999, senior Clinton administration officials, including Treasury Secretary Lawrence H. Summers, joined by the Federal Reserve chairman, Alan Greenspan, and Arthur Levitt Jr., the head of the Securities and Exchange Commission, issued a report that instead recommended legislation exempting many kinds of derivatives from federal oversight.

Mr. Gramm helped lead the charge in Congress. Demanding even more freedom from regulators than the financial industry had sought, he persuaded colleagues and negotiated with senior administration officials, pushing so hard that he nearly scuttled the deal. “When I get in the red zone, I like to score,” Mr. Gramm told reporters at the time.

Finally, he had extracted enough. In December 2000, the Commodity Futures Modernization Act was passed as part of a larger bill by unanimous consent after Mr. Gramm dominated the Senate debate.

“This legislation is important to every American investor,” he said at the time. “It will keep our markets modern, efficient and innovative, and it guarantees that the United States will maintain its global dominance of financial markets.”

But some critics worried that the lack of oversight would allow abuses that could threaten the economy.
...
“He was the architect, advocate and the most knowledgeable person in Congress on these topics,” Mr. Donovan said. “To me, Phil Gramm is the single most important reason for the current financial crisis.”

Mr. Gramm, ever the economics professor, disputes his critics’ analysis of the causes of the upheaval. He asserts that swaps, by enabling companies to insure themselves against defaults, have diminished, not increased, the effects of the declining housing markets.

“This is part of this myth of deregulation,” he said in the interview. “By and large, credit-default swaps have distributed the risks. They didn’t create it. The only reason people have focused on them is that some politicians don’t know a credit-default swap from a turnip.”

But many experts disagree, including some of Mr. Gramm’s former allies in Congress. They say the lack of oversight left the system vulnerable.

“The virtually unregulated over-the-counter market in credit-default swaps has played a significant role in the credit crisis, including the now $167 billion taxpayer rescue of A.I.G.,” Christopher Cox, the chairman of the S.E.C. and a former congressman, said Friday.

Mr. Gramm says that, given what has happened, there are modest regulatory changes he would favor, including requiring issuers of credit-default swaps to demonstrate that they have enough capital to back up their pledges. But his belief that government should intervene only minimally in markets is unshaken.

“They are saying there was 15 years of massive deregulation and that’s what caused the problem,” Mr. Gramm said of his critics. “I just don’t see any evidence of it.”

So far as I am able to tell, Gramm was not joking in any of his quotations.

Copeland continues to stonewall Congress

The investigation of Sen. Chuck Grassley (R-IA) into the tax-free practices of some religious organizations turned up a few rocks, and some especially slimy creatures are scurrying away from the harsh sunlight:

Already a well-known figure, Copeland has come under greater scrutiny in recent months. He is one target of a Senate Finance Committee investigation into allegations of questionable spending and lax financial accountability at six large televangelist organizations that preach health-and-wealth theology.

All have denied wrongdoing, but Copeland has fought back the hardest, refusing to answer most questions from the inquiry's architect, Republican Sen. Charles Grassley of Iowa.
...
Swicegood said the church's independent compensation committee approves all payments to board members.

Marilyn Phelan, a Texas Tech University law professor and author on nonprofit law, said the practice could pose problems. Both the IRS and Texas state law prohibit benefits beyond reasonable compensation for insiders, including board members, she said. If violations are found, nonprofits can lose their tax-exempt status and board members can face penalty taxes.

As the Senate Finance Committee considers its next step, Copeland is not backing down. His ministry is portraying the inquiry as an attack on religious liberty.

At the same time, it is moving forward with a big fund-raising project: soliciting donations for new television equipment so Copeland can be broadcast in high-definition.

I'd love to see this crook thrown in jail, but it's enough to hope for all the money he's misused to be taxed. From their supposed needs for private jets to their staying in $5,000 a night resorts during "evangelistic trips" and driving Bentleys that they write off as "work-related vehicles"...it all just makes me sick. Paula and Randy White have probably cooperated more than anyone else, but with their ongoing divorce and financial issues, it's understandable that they can't take any more heat.

CBS News edits McCain Interview

Okay, okay, this isn't a politics blog, but I just can't let some things go without mention. The guy whose love affair with the media was recently chronicled in a long book now accuses Sen. Obama of being a "media darling" despite the 24-7 loops of Jeremiah Wright and all the other inconvenient facts. Contrast this against the media's effusive praise of McCain...and their accusations of Obama "flip-flopping" when he really didn't, with zero mention of McCain's looooooong flip-flop list.

...and this un-fuc*ing-believable item, wherein CBSNews edits a McCain interview to make him look better when he gaffes big time on the facts of the surge, proving Obama right.

McCain's lies on adultery and divorce

Get basically no coverage.

Cue the "liberal media" rejoinder. Again.

Update on Grassley & ministers investigation

I was reading about additional craziness from John Hagee, and it reminded me of something that I'd written about a while back but forgotten about. First, the article on Hagee divulged much of what I already knew -- that he and his ilk want war with Iran, like, yesterday. Why is it that tying this guy and Parsley around McCain's neck isn't a toxic political millstone? The double standard applied to Rev. Wright and Obama is obvious here.

As I read about Hagee's lavish lifestyle and million-dollar salary, it reminded me of Sen. Grassley's investigation into financial impropriety in "prosperity" churches. Chuck Grassley (R-IA) has been leading an investigation by the Senate Finance Committee into the finances of six ministries commonly affiliated with "prosperity preaching" with the aim of updating the tax code to appropriately deal with this malfeasance. I admitted a little skepticism at the utility and motives of this investigation when I first read about it. At the time, I said:

I read this the other day and I'm still scratching my head. I mean, I dislike Benny "Let the Bodies Hit the Floor" Hinn as much as anyone, and I think the whole lot of those six are probably as corrupt and unethical as it gets. However, I just don't understand the legal power that a Congressperson has to audit the finances of these people.

The IRS? Sure! But Congress...!?!? We'll wait and see if this goes anywhere.

It turns out that three of the six ministries are cooperating, and have until March 31st, according to this press release:

Baucus and Grassley lead the committee with exclusive Senate jurisdiction over tax policy; the ministry inquiry that Grassley launched last November is meant to gauge the effectiveness of certain tax-exempt policies.

“This ought to clear up any misunderstanding about our interest and the committee’s role,” Grassley said. “We have an obligation to oversee how the tax laws are working for both tax-exempt organizations and taxpayers. Just like with reviews of other tax-exempt organizations in recent years, I look forward to the cooperation of these ministries in the weeks and months ahead.”

Grassley wrote to six ministries on Nov. 5, 2007, asking a series of questions on the nonprofit organizations’ expenses, treatment of donations and business practices. The questions were based on presentations of material from watchdog groups and whistleblowers and on investigative reports in local media outlets. One of the six ministries – Joyce Meyer Ministries of Fenton, Mo. – has cooperated substantially with his request and provided the requested information. Benny Hinn Ministries of Grapevine, Texas, has indicated a willingness to cooperate and provided answers to
five of the 28 questions so far.

Representatives for Randy and Paula White of Without Walls International Church/Paula White Ministries, Tampa, Fla., verbally have indicated to Finance Committee staff that they will cooperate. Baucus and Grassley wrote to them on March 11 to thank them for the verbal commitment and to reiterate the committee’s role.

The remaining three ministries have not cooperated, citing privacy protections or questioning the committee’s standing to request the information. Baucus and Grassley wrote to them on March 11 to describe the committee’s jurisdiction and role in determining the effectiveness of tax policy developed by the committee, distinct from the Internal Revenue Service’s role, which is to enforce existing law. The three ministries are: Kenneth and Gloria Copeland of Kenneth Copeland Ministries, Newark, Texas; Creflo and Taffi Dollar of World Changers Church International / Creflo Dollar Ministries College Park, Ga.; and Eddie L. Long of New Birth Missionary Baptist Church/Eddie L. Long Ministries, Lithonia, Ga.

The committee’s jurisdiction includes the federal tax policy governing the billions of dollars donated to and controlled by the nation’s tax-exempt groups. The federal government forgoes the collection of billions of dollars to tax-exempt organizations every year.

It doesn't surprise me much about the Copelands or the Dollars. I don't know anything about Long, but I am quite familiar with Copeland and his reputation. I was pleasantly surprised about Hinn -- I figured him for one of those likeliest to resist, rather than cooperate. Randy and Paula White have faced enough personal problems recently with the divorce, so facing additional (scandalous) financial ones was probably a smart decision they made.

While you can read the pseudo-justifications for refusing to cooperate proffered by Creflo and Ken at their own sites, Eddie offers no such attempt at saving face. A little digging finds that some of these jokers are getting paid over $1M salaries. Fuc*ing absurd. Long's church has a gym inside ("Samson's Gym") that offers memberships and massages (all for a large fee, of course) -- the divisions between business and church blurred for these individuals long ago.

The black hole of $ that is Vietraq

*UPDATE: See Herbert's column on the possibility of this being a $3 TRILLION war. More from Bilmes and Stiglitz.*

The Chicago Tribune has a new investigative report on the fleecing of American tax dollars by W's corporate supporters. $45 / can of soda is a pretty nice profit margin for KBR - Halliburton, huh? (full-text below)

But that's only the tip of the iceberg -- consider the billions and billions we've "lost" or had stolen since this war began. The true costs of these wars will not be known for years.

This adds to the war oil profiteering on the part of American and European energy companies.

LINK
chicagotribune.com
TRIBUNE INVESTIGATION
Inside the world of war profiteers
From prostitutes to Super bowl tickets, a federal probe reveals how contractors in Iraq cheated the U.S.

By David Jackson and Jason Grotto

Tribune reporters

February 21, 2008

ROCK ISLAND, Ill.—Inside the stout federal courthouse of this Mississippi River town, the dirty secrets of Iraq war profiteering keep pouring out.

Hundreds of pages of recently unsealed court records detail how kickbacks shaped the war's largest troop support contract months before the first wave of U.S. soldiers plunged their boots into Iraqi sand.

The graft continued well beyond the 2004 congressional hearings that first called attention to it. And the massive fraud endangered the health of American soldiers even as it lined contractors' pockets, records show.

Federal prosecutors in Rock Island have indicted four former supervisors from KBR, the giant defense firm that holds the contract, along with a decorated Army officer and five executives from KBR subcontractors based in the U.S. or the Middle East. Those defendants, along with two other KBR employees who have pleaded guilty in Virginia, account for a third of the 36 people indicted to date on Iraq war-contract crimes, Justice Department records show.

On Wednesday, a federal judge in Rock Island sentenced the Army official, Chief Warrant Officer Peleti "Pete" Peleti Jr., to 28 months in prison for taking bribes. One Middle Eastern subcontractor treated him to a trip to the 2006 Super Bowl, a defense investigator said.

Prosecutors would not confirm or deny ongoing grand jury activity. But court records identify a dozen FBI, IRS and military investigative agents who have been assigned to the case. Interviews as well as testimony at the sentencing for Peleti, who has cooperated with authorities, suggest an active probe.

Rock Island serves as a center for the probe of war profiteering because Army brass at the arsenal here administer KBR's so-called LOGCAP III contract to feed, shelter and support U.S. soldiers, and to help restore Iraq's oil infrastructure.

In one case, a freight-shipping subcontractor confessed to giving $25,000 in illegal gratuities to five unnamed KBR employees "to build relationships to get additional business," according to the man's December 2007 statement to a federal judge in the Rock Island court. Separately, Peleti named five military colleagues who allegedly accepted bribes. Prosecutors also have identified three senior KBR executives who allegedly approved inflated bids. None of those 13 people has been charged.

A common thread runs through these cases and other KBR scandals in Iraq, from allegations the firm failed to protect employees sexually assaulted by co-workers to findings that it charged $45 per can of soda: The Pentagon has outsourced crucial troop support jobs while slashing the number of government contract watchdogs.

The dollar value of Army contracts quadrupled from $23.3 billion in 1992 to $100.6 billion in 2006, according to a recent report by a Pentagon panel. But the number of Army contract supervisors was cut from 10,000 in 1990 to 5,500 currently.

Last week, the Army pledged to add 1,400 positions to its contracting command. But even those embroiled in the frauds acknowledge the impact of so much war privatization.

"I think we downsized past the point of general competency," said subcontractor Christopher Cahill, who for a decade prepared military supply depots under LOGCAP. Now serving 30 months in federal prison for fraud, Cahill added: "The point of a standing army is to have them equipped."

KBR, a former subsidiary of Halliburton Co., says it has been paid $28 billion under LOGCAP III. The firm says it quickly reports all instances of suspected fraud and has repaid the Defense Department more than $1 million for questionable invoices.

In a statement, KBR said its roughly 20,000 employees and 40,000 subcontractors have performed laudably in a war zone where Army demands shift rapidly and local suppliers don't always maintain ledger books. Spokeswoman Heather Browne wrote: "Ethics and integrity are core values for KBR."

But a wiretapped transcript recently released in Rock Island underscores the brazen nature of the exceptions.

In October 2005, with federal agents tailing them, three war contractors slipped through London's posh Cumberland hotel before meeting in a quiet lounge. For the rest of that afternoon, the men sipped cognac and whiskey and discussed the bribes that had greased contracts to supply U.S. troops in Iraq.

Former KBR procurement manager Stephen Seamans, who was wearing a wire strapped on by a Rock Island agent, wondered aloud whether to return $65,000 in kickbacks he got from his two companions, executives from the Saudi conglomerate Tamimi Global Co.

One of the men, Tamimi operations director Shabbir Khan, urged him to hide the money by concocting phony business records.

"Just do the paperwork," Khan said.

Party houses, prostitutes
In October 2002, five months before the U.S.-led invasion of Iraq, Khan threw a birthday party for Seamans at a Tamimi "party house" near the Kuwait base known as Camp Arifjan. Khan "provided Seamans with a prostitute as a present," Rock Island prosecutors wrote in court papers. Driving Seamans back to his quarters, Khan offered kickbacks that would total $130,000.

Five days later, with Seamans and Khan hammering out the fine print, KBR awarded Tamimi the war's first $14.4 million mess hall subcontract, court records show.

In April 2003, as American troops poured into Iraq, Seamans gave Khan inside information that enabled Tamimi to secure a $2 million KBR subcontract to establish a mess hall at a Baghdad palace. Seamans submitted change orders that inflated that subcontract to $7.4 million.

By June, Seamans and fellow KBR procurement manager Jeff Mazon, a Country Club Hills resident, had executed subcontracts worth $321 million. At least one deal put U.S. soldiers at risk.

The Army LOGCAP contract required KBR to medically screen the thousands of kitchen workers that subcontractors like Tamimi imported from impoverished villages in Nepal, Pakistan, India and Bangladesh.

But when Pentagon officials asked for medical records in March 2004, Khan presented "bogus" files for 550 Tamimi workers, Assistant U.S. Atty. Jeffrey Lang said in a court hearing last year.

KBR retested those 550 workers at a Kuwait City clinic and found 172 positive for exposure to hepatitis A, Lang told the judge. Khan tried to suppress those findings, warning the clinic director that Tamimi would do no more business with his medical office if he "told KBR about these results," Lang said in court. The infectious virus can cause fatigue and other symptoms that arise weeks after contact.

Retesting of the 172 found that none had contagious hepatitis A, Lang said, and Khan's attorneys said in court that no soldiers caught diseases from the workers or from meals they prepared. It remains unclear if that is because the workers were treated or because they did not remain infectious after the onset of symptoms.

Still, the incident shows how even mundane meal contracts can put troops at risk. Similar disease-testing breaches cropped up at cafeterias outsourced to firms besides Tamimi, former KBR Area Supervisor Rene Robinson said in a Tribune interview.

"That was an ongoing problem," Robinson said. "When the military asked for paperwork, it was spotty." KBR was forced to begin vaccinating the employees at their work sites, he added.

Tamimi and its U.S. lawyers did not respond to requests for comment. The company has said it is cooperating with federal authorities.

By July 2005, Tamimi had secured some 30 KBR troop feeding subcontracts worth $793.5 million, records show. Khan continued to negotiate Iraq war subcontracts for Tamimi until shortly before he was arrested in Rock Island in March 2006.

He is now serving a 51-month prison sentence for lying to federal agents about the kickbacks he wired to Seamans, who pleaded guilty and served a year and a day in prison. Both declined to comment.

Seamans, a 46-year-old Air Force veteran, once taught ethics to junior KBR employees. At his December 2006 sentencing hearing, he expressed remorse for taking the kickbacks, telling the judge: "It is not the way that Americans do business."

It was another repentant LOGCAP veteran standing before a Rock Island judge on Wednesday. Peleti, formerly the military's top food service adviser for the Middle East, wept as he admitted taking bribes from Tamimi and three other subcontractors between 2003 and early 2006.

Ribbons and badges glittered across Peleti's pressed green Army shirt. "I stand here before you today to convey my remorse and sincere regret," he said, then broke down.

One subcontractor, Public Warehousing Co., took Peleti and another top Army official to the Super Bowl, a defense investigator said in court Wednesday. The firm has denied wrongdoing. Khan also bribed Peleti to influence LOGCAP contracts with cash. Peleti was arrested in 2006 while re-entering the U.S. at Dover Air Force Base with a duffel bag stuffed with watches and jewelry as well as about $40,000 concealed in his clothing.

While prosecutors documented kickbacks in only the first two of Tamimi's mess hall subcontracts, they contend that the tone was set to corrupt the system.

"Tamimi and Mr. Khan have their hooks into Mr. Seamans, they have their hooks into KBR," Lang said in court last year. "It is difficult to assess the kind of damage that did to the integrity of the subcontracting process when the first two subcontracts are corrupted."

Auditors in the basement


Military auditors say they closely monitor the layers of KBR subcontractors who actually perform most of the LOGCAP work, stationing teams in Iraq. But one Rock Island search warrant said auditors working back in the U.S. could manage only limited reviews of the cascade of deals.

In the basement of one of KBR's Houston office buildings, a 25-member team from the Defense Contract Audit Agency had "no communications" with "personnel on the ground," so they could not confirm whether goods and services actually were delivered, the search warrant application said.

In the absence of oversight, some Middle Eastern businessmen would offer "Rolex watches, leather jackets, prostitutes, and the KBR guys weren't shy about bragging about the fact that they were being treated to all that stuff," said Paul Morrell, whose firm The Event Source ran several mess halls as a KBR subcontractor.

Such questionable relationships continued long after early procurement managers like Seamans had been rooted out. Early subcontractors such as Tamimi became almost indispensable in part by outfitting Army cafeterias with expensive power generators and refrigeration systems, records and interviews show.

"If you ever gave Tamimi a hard time, you'd get a call," former KBR subcontract manager Harry DeWolf told the Tribune.

When subcontracts came up for renegotiation, DeWolf said, companies like Tamimi "would say, 'Fine, we're going to pull out all of our people and equipment.' They really had KBR and the government over the barrel."

Complicating the investigation of war-contract crimes, the government of Kuwait has denied a U.S. request to extradite two Middle Eastern businessmen accused of LOGCAP fraud. The country's ambassador last year sent letters to the Justice Department asking the U.S. to drop its case against one of them, arguing that international agreements forbid U.S. prosecution of Kuwaiti residents for crimes allegedly committed on Kuwaiti soil. Prosecutors disagree, but a judge is considering Kuwait's assertion.

Investigators also have faced challenges in dealing with KBR. The company has withheld some internal company documents relating to Mazon, Seaman's fellow KBR procurement manager, the firm's attorneys wrote in court filings.

In response to one subpoena, the firm gave agents about 2,760 of Mazon's computer files but withheld 398 others, saying they were covered by attorney-client privilege or other protections.

Federal prosecutors say they have given KBR no special treatment and that the company has legal rights afforded to all firms whose employees have been charged with wrongdoing. "We did withhold some documents as being privileged," a KBR spokeswoman wrote, but added that the company has provided statements and grand jury testimony.

Mazon has pleaded not guilty to charges that he inflated a fuel contract. His attorneys say the fuel subcontract was accidentally inflated when figures were converted from U.S. dollars to Kuwaiti dinars then back again. At least 22 KBR troop support subcontracts were inflated through similar errors, Mazon's attorney J. Scott Arthur wrote in papers filed in Rock Island.

KBR attorneys said the company informed federal officials of three similar "double conversions" on other subcontracts. But KBR said it "has not undertaken an exhaustive search of its millions of pages of procurement documents" to determine whether other such errors exist.

dyjackson@tribune.com

jgrotto@tribune.com

Copyright © 2008, Chicago Tribune

The black hole of American dollars, ever-increasing civilian casualties -- a bona fide fiasco with no end in sight. Just try not to think about the clusterfu^k that is Iraq, and you don't get as physically ill.

The clusterfuc* that is election day

If you really want to lose all faith in the American political system, read this.

Is anything Bush does surprising anymore?

To get at the heart of how much Bush and his GOP allies in Congress have changed the office of POTUS, Sen. Whitehouse (D-RI, ironic name, eh?) decided to dig in to the classified legal memos that have given "justification" to the president's, uh...liberties with the Constitution. The results are as sickening as you'd expect:

1. An executive order cannot limit a President. There is no constitutional requirement for a President to issue a new executive order whenever he wishes to depart from the terms of a previous executive order. Rather than violate an executive order, the President has instead modified or waived it.

2. The President, exercising his constitutional authority under Article II, can determine whether an action is a lawful exercise of the President’s authority under Article II.

3. The Department of Justice is bound by the President’s legal determinations. [bold emphasis added throughout]

I don't know if/why this is surprising. Bush believes he can direct the emphatically-independent arm of oversight -- the Justice Department -- not to pursue legal investigations of wrongdoing in his administration, and that the Court itself is not able to tell him what he's doing is illegal.

One of us is spot-on

Okay, maybe both of us...my words on 10/25 regarding the black hole of money that is Iraq:

...it stops hurting so much if you don't think about how many billions of our own taxpayer dollars wasted in war. Either the money is lining the pockets of criminals here at home, or is actually being rerouted to militias and terrorists abroad, against whom we are fighting; all the while, we can't afford to give health care coverage to our own children or ensure a quality education for all our own students.

And on 12/2:

...all this completely ignores the cancer of corruption that has eaten Iraq from the inside-out.

Bob Hebert's words today:

Priorities don’t get much more twisted. A country that can’t find the money to provide health coverage for its children, or to rebuild the city of New Orleans, or to create a first-class public school system, is flushing whole generations worth of cash into the bottomless pit of a failed and endless war.

“The No. 1 reason that the war in Iraq should end,” said Senator Charles Schumer, chairman of the joint committee, “is the loss of life that is occurring without accomplishing any of the goals that even President Bush put forward.”

But “right below that,” he said, is the need to stop squandering incredible amounts of money that could be put to better use — helping to “make people’s lives better” — here at home. That colossal and continuing waste, he said, “should cause anxiety in anyone who cares about the future of this country. I know it causes me anxiety.”

President Bush’s formal funding requests for Iraq have already exceeded $600 billion. In addition to that, the report offers estimates of the war’s “hidden costs” from its beginning to 2017: the long-term costs of treating the wounded and disabled; interest and other costs associated with borrowing to finance the war; the money needed to repair or replace military equipment; the increased costs of military recruitment and retention; and such difficult to gauge but very real costs as the loss of productivity from those who have been killed or wounded.

What matters more than the precision of these estimates (Republicans are not happy with them) is the undeniable fact that the costs associated with the Iraq war are huge and carry with them enormous societal consequences.

The black hole of money that is Iraq:

Some quick politics notes

A round-up:

• The DADT policy came under pretty heavy fire as Retired Brig. Gen. Keith H. Kerr admitted he was gay and asked the GOP candidates during the debate why they didn't trust military servicemen and women enough to serve alongside gays & lesbians; now, a group of high-ranking officers is advising the GOP candidates to adopt a more humane and progressive policy -- i.e., to reject DADT.


• E&P:

  “Nearly two-thirds of Americans do not trust press coverage of the 2008 presidential campaign, according to a new Harvard University survey, which also revealed four out of five people believe coverage focuses too much on the trivial — and more than 60% believe coverage is politically biased.”

  You don't say?! You mean, stories on $400 haircuts aren't substantive coverage of issues?


• Last Tuesday, I mentioned something on the debate regarding Barack's lack of universal mandated coverage:
  

  ...here's someone defending his mandates for health care coverage...and someone criticizing them.

  ...on Friday, Krugman went after Barack pretty hard.


• See a cartoon here in the WaPo that castigates the Washington Post's own ludicrous article on rumors of Barack being a Muslim.


• Giuliani isn't just involved in a scandal over using tax dollars to finance his extramarital affair; he's also got a brewing scandal involving his ties to terrorists. I really think his campaign is done, kaput...or else people are ignoring the mounds of dirt on this guy. See TCR's summary of Giuliani's worst week ever.
  


• Also, on the heels of the just-passed energy bill, check out a progressive economic plan that highlights the Dems strengths in green energy and the new manufacturing jobs it will create.


• A much better answer to the GOP's race divide question (not as well known towards Swedes).

More to come.

Churches as businesses

Times are good for megachurches:

An analysis by The New York Times of the online public records of just over 1,300 of these giant churches shows that their business interests are as varied as basketball schools, aviation subsidiaries, investment partnerships and a limousine service.

At least 10 own and operate shopping centers, and some financially formidable congregations are adding residential developments to their holdings. In one such elaborate project, LifeBridge Christian Church, near Longmont, Colo., plans a 313-acre development of upscale homes, retail and office space, a sports arena, housing for the elderly and church buildings.

But the entrepreneurial activities of churches pose questions for their communities that do not arise with secular development.

These enterprises, whose sponsoring churches benefit from a variety of tax breaks and regulatory exemptions given to religious organizations in this country, sometimes provoke complaints from for-profit businesses with which they compete — as ChangePoint’s new sports center has in Anchorage.

Mixed-use projects, like shopping centers that also include church buildings, can make it difficult to determine what constitutes tax-exempt ministry work, which is granted exemptions from property and unemployment taxes, and what is taxable commerce.

The article in the NYT highlights another reason that churches should lose their tax exemption; not that this is any different than them acting as lobbyists or the RR bulldog groups making millions or as funnels of corruption for government $. The full-text of the NYT article is below:

Alberto Gonzales at UF

Despite my (continued and unresolved) anger that they invited him in the first place, I'm proud of the UF student body for protesting the criminal's speech.

Also check out the Alligator's article and their video of the protests.


Go Gators!

This week in God

Steve Benen's weekly segment is up, and you should read the whole thing. I just wanted to point out two things:

1) I read this the other day and I'm still scratching my head. I mean, I dislike Benny "Let the Bodies Hit the Floor" Hinn as much as anyone, and I think the whole lot of those six are probably as corrupt and unethical as it gets. However, I just don't understand the legal power that a Congressperson has to audit the finances of these people.

The IRS? Sure! But Congress...!?!? We'll wait and see if this goes anywhere.

Oh yeah, and worth mention is that this Sen. Grassley of Iowa is a Republican. I found that surprising, given the close ties the GOP has with the RR, especially in a state like Iowa. Bravo to him for rising above the fray of partisan pandering.

2) "Judgment Day: Intelligent Design on Trial" -- a documentary about Dover comes on PBS Tuesday, November 13, 8:00 pm, details here and here.

Rudy & the mob

From one of the first times I saw Giuliani, I swear I thought to myself, "he looks crooked, like a mobster or something." While prescience is not one of my gifts, and such shallow judgments must be brushed aside in exchange for evidence, I have to wonder, with Rudy's ever-widening Bernard Kerik scandal, if I was on to something. At any rate, Rudy scares me more than pretty much any other front-runner because of his insane foreign policy -- he'd definitely start a war with Iran. His domestic policies are modeled right after King George, as well.

You have got to be shitting me

Alberto fu%*ing Gonzales is getting paid $40K to come speak at my beloved UF?!?!?!?

Alberto Gonzales to speak at UF
By KIM WILMATH, Alligator Staff Writer
Thursday, November 8, 2007 1:38 AM EST

Alberto Gonzales, the former U.S. attorney general who resigned in August, will speak at UF on Nov. 19.

Student Government records state Gonzales was paid $40,000 for his speech at UF, which is the first college appearance since he resigned, said Steven Blank, Accent chairman. Accent, SG's speakers bureau, is sponsoring the appearance.

The speech will take place 7:15 p.m. at the Phillips Center for the Performing Arts, stated a press release from Accent.

The event has been in the works for a few weeks, Blank said.

Free tickets will be available for students with Gator 1 cards on Nov. 14 and for the general public Nov. 15 at the Phillips Center and the University Box Office, the release stated.

Blank said he expects a full house.

In 2005, Accent brought another former state attorney to UF - Janet Reno.

The show was so successful that the bureau jumped at the chance to host Gonzales, Blank said.

Gonzales was appointed the first Hispanic attorney general in February 2005 and later played a role in President Bush's fight in the war on terror after Sept. 11.

Gonzales resigned in August after a controversial tenure.

Gonzales faced scrutiny over his leadership of the Department of Justice in 2006, after he dismissed nine U.S. attorneys.

The White House administration said the dismissals were solely based on performance.

Gonzales called the issue "an overblown personnel matter."

However, some officials have said that the Bush administration was trying to politicize the justice system.

Questions were raised about whether Gonzales testified truthfully about the National Security Agency's abuse of surveillance programs.

Bush denied the accusations against Gonzales.

Meanwhile, Democrats cheered his resignation.

Bush appointed Peter Keisler as acting attorney general Sept. 17.

Gonzales wasn't the only high-level official to resign during Bush's second term.

Gale Norton, Bush's former secretary of the interior, resigned in March 2006. Andrew H. Card Jr., former chief of staff, resigned the same month.

Norman Mineta, former secretary of transportation, left in June 2006.