Senator Bernie Sanders discusses the immense magnitude of the backdoor bailout

Senator Bernie Sanders has presented some jaw-dropping facts about the financial bailout at Huffpo. He frames his article by mentioning that back in 2009, when he asked Fed Chairman Ben Bernanke to identify the institutions that received a backdoor bailout from the Fed, he refused. Sanders refused to accept that answer. Instead, he worked hard to force an amendment into the "Wall Street Reform" bill, and we now know some of the startling things Bernanke refused to admit:

After years of stonewalling by the Fed, the American people are finally learning the incredible and jaw-dropping details of the Fed's multi-trillion-dollar bailout of Wall Street and corporate America . . .

We have learned that the $700 billion Wall Street bailout signed into law by President George W. Bush turned out to be pocket change compared to the trillions and trillions of dollars in near-zero interest loans and other financial arrangements the Federal Reserve doled out to every major financial institution in this country. Among those are Goldman Sachs, which received nearly $600 billion; Morgan Stanley, which received nearly $2 trillion; Citigroup, which received $1.8 trillion; Bear Stearns, which received nearly $1 trillion, and Merrill Lynch, which received some $1.5 trillion in short term loans from the Fed.

We also learned that the Fed's multi-trillion bailout was not limited to Wall Street and big banks, but that some of the largest corporations in this country also received a very substantial bailout. Among those are General Electric, McDonald's, Caterpillar, Harley Davidson, Toyota and Verizon.

Perhaps most surprising is the huge sum that went to bail out foreign private banks and corporations including two European megabanks -- Deutsche Bank and Credit Suisse -- which were the largest beneficiaries of the Fed's purchase of mortgage-backed securities.

Sanders has written a blistering piece in which he argues that the biggest banks padded their own executive's pockets, refused to lend to small businesses, used near-zero interest loans they obtained from the Fed to buy Treasury securities and that they continued to gouge consumers through high credit card fees. He suggests that those banks that received this corporate welfare could also have used this money to work out mortgage loans. He is aghast at the conflicts of interest. I am so relieved to know that we have at least one politician who is willing to shoot straight with the American people.

Continue ReadingSenator Bernie Sanders discusses the immense magnitude of the backdoor bailout

Justice Isn’t Boring

I'd heard about this Boring case a couple of years ago, and it finally has reached a verdict. In essence, Google's Street View crew accidentally drove up and filmed a private road, and the owners had nothing better to do than sue. I'm picturing some legal adviser drooling over Google's coffers and thinking they had an angle to get something substantial in the form of a settlement. But the case was pretty weak, with several judges simply stripping off charges, until they were left with second degree trespass. But they won! They beat Google! As Geek.com puts it: Boring couple win $1 compensation for Street View trespassing.

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Can Future Censorship Be Regulated?

The question at hand is, who decides what you find on the web? I recently read Regulating the Information Gatekeepers about search engines. This article focused mainly on commercial implications of search engines changing their rules, and the ongoing arms race between companies that sell the service of tweaking web pages and links and click farms to optimize search engine ranking positions, and the search engines trying to filter out such bare toadying in favor of actual useful pages. On my MrTitanium.com site, I ignore all those search engine games and just provide solid content and current items for sale. In 2002, MrTitanium was usually in the first dozen results when Googling for "titanium jewelry". In 2003, Google decided that the number of links to a page was the primary sign of its usefulness. Within days, link farms popped up, and my site dropped from view. I waited it out, and in 2004, Google changed the rules again, and MrTitanium reappeared in the top 30. Top five for "titanium earrings". But the real question is, should someone be regulating these gatekeepers of information? Who decides whether a search for "antidepressants" should feature vendors, medical texts, or Scientology anti-psychiatry essays? There are two ways to censor information: Try to block and suppress it, or try to bury it. The forces of disinformation and counterknowledge are prolific and tireless. A search engine could (intentionally or inadvertently) favor certain well represented but misleading positions (such as Truthers or anti-vaxxers) over proven science, and give all comers the impression of validity and authority to "bad" ideas. But the question of regulation is a dangerous one. The best access to information is open. But if a well meaning legislature decides that there needs to be an oversight board, this board could evolve into information police and be taken over by populist electors who choose to suppress good information. On the other hand, the unregulated and essentially monopolistic search industry began with great ideals, and so far has been doing a good job at a hard task. But it, too, could become malignant if there is no oversight. Another facet is, whose jurisdiction would this fall under? If the U.S. congress passes laws that Google doesn't like, they simply move offshore. There are designs for, and even prototypes of, data centers that float beyond any countries jurisdiction, powered by waves and sun, and connected via fibers and satellites. If the U.N. starts regulating, then whose rules apply? North Korea? Iran? China? And who could enforce it? The information revolution is just beginning: We do live in interesting times.

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Comcast is trying to destroy the Internet

Today I received the following email from Free Press on the issue of net neutrality:

In the past 24 hours, Comcast has been caught abusing its massive media power, stomping on competitors and violating Net Neutrality. The New York Times reported last night that Comcast threatened to cut off Netflix streaming video unless the company that carries the traffic paid huge tolls.1 Earlier in the day, Comcast was exposed for trying to bar cheaper cable modems from its network — a clear violation of Net Neutrality. This is what a media monopoly looks like in the Internet age — one company, consolidating its media power to squash competitors, stifle innovation and price-gouge consumers. Such outrageous abuse comes just days before FCC Chairman Julius Genachowski is expected to finally propose new Net Neutrality rules to come up for a vote in December. It's never been more crucial that he hear from you. If the FCC stays on the sidelines, Comcast will turn the Internet into cable TV, where it gets to pick the channels, overcharge you for them, and decide what downloads quickly and whose voices are heard. Comcast is the same company that wants to take over NBC Universal in one of the biggest media mergers in a generation. It's not just the Internet at stake here. It's the future of all media: television, radio, social networks... and our democracy itself.
If you find this information disturbing, you can do something about it. Sign this message to the FCC: "Don't Let Comcast Kill the Internet." Oh, and the malicious actions of Comcast go far beyond what Karr outlined above. See the article of Timothy Karr of Free Press in the Huffington Post. In that article you can read the Eight Count Indictment Karr levels against Comcast. It includes counts for anti-competitive activity regarding modems, the inexcusable request to merge with NBC Universal, censoring the speech of Vinh Pham, who dared to criticize Comcast on his blog (Comcast contacted the company that hosts Pham's blog and demanded the entire blog be censored) and blocking public access at a public hearing regarding public access to the Internet. Comcast needs to be slapped down big time, and the FCC needs you to ferociously pressure them to do what is obviously needed. For more information: 1. New York Times, "Netflix Partner Says Comcast 'Toll' Threatens Online Video Delivery." 2. Free Press, "Zoom Complaint Against Comcast a Reason for FCC to Act."

Continue ReadingComcast is trying to destroy the Internet

Whence Wikileaks?

At Democracy Now, Amy Goodman presents a fascinating discussion regarding the most recent of a series of leaks by Wikileaks. But first, her summary of the leaks:

Among the findings, Arab leaders are privately urging the United States to conduct air strikes on Iran; in particular, King Abdullah of Saudi Arabia has repeatedly called on U.S. to attack Iran to destroy its nuclear program, reportedly calling on American officials to “cut off the head of the snake”. Jordan, Bahrain, the United Arab Emirates, also said they support a U.S. attack. The cables also highlight Israel’s anxiety to preserve its regional nuclear monopoly; it’s readiness to 'go it alone' against Iran, and its attempts to influence American policy. The cables also name Saudi donors as the biggest financiers of Sunni militant groups like Al-Qaeda. The cables also provide a detailed account of an agreement between Washington and Yemen to cover up the use of U.S. warplanes to bomb targets in Yemen. One cable records that during a meeting in January with General David Petraeus, the Yemeni president Abdallah Saleh said, “We will continue saying these are our bombs, not yours.” Among the biggest revelations is how the U.S. uses its embassies around the world as part of a global spy network. U.S. diplomats are asked to obtain information from the foreign dignitaries they meet including frequent flier numbers, credit card details, and even DNA material. The United Nations is also a target of the espionage with one cable listing the information-gathering priorities to American staff at the UN headquarters in New York. The roughly half a dozen cables from 2008 and 2009 detailing the more aggressive intelligence collection were signed by Secretaries of State Condoleezza Rice and Hillary Clinton. The New York Times says the directives, quote: "Appear to blur the traditional boundaries between statesmen and spies." The cables also reveal that U.S. officials sharply warned Germany in 2007 not to enforce arrest warrants for CIA officers involved in an operation in which an innocent German citizen with the same name as a suspected militant was abducted and held for months in Afghanistan. The cables also document suspicion of corruption in the Afghan government. One cable alleges that Afghan vice president Zia Massoud was carrying fifty two million dollars in cash when stopped during a visit to the United Arab Emirates. Only 220 cables were published by WikiLeaks on it’s website on Sunday with hundreds of thousands more to come. The Obama administration has been warning allies about the expected leaks since last week. A statement from the White House on Sunday said, “We condemn in the strongest terms the unauthorized disclosure of classified documents and sensitive national security information.” It also said the disclosure of the cables could, "deeply impact not only U.S. foreign policy interests, but those of our allies and friends around the world."
I approve of these leaks by Wikileaks. We the People supposedly run this country, but we are kept totally in ignorance regarding many of our nation's foreign policy adventures. Our mainstream media should be gathering this sort of information by aggressively reporting by doing investigative reporting, and by reporting when our government fails to be forthright. But they have failed miserably. This is thus what it has now come to: massive dumps of "unauthorized" information that embarrasses our government and should embarrass our government. But instead of seeing our mainstream media praise Wikileaks, we continue to see scurrilous attacks on Wikileaks and Julian Assange. Glenn Greenwald understands why:

Focusing on the tabloid aspects of Assange's personal life can have no effect -- and no purpose -- other than to distract public attention away from the heinous revelations about this war and America's role in it, and to cripple WikiLeaks' ability to secure and disseminate future leaks.

It's not hard to see why The New York Times, CNN and so many other establishment media outlets are eager to do that. Serving the Government's interests, siding with government and military officials, and attacking government critics is what they do. That's their role. That's what makes them the "establishment media." Beyond that, the last thing they want is renewed recognition of what an evil travesty the attack on Iraq was, given the vital role they know they played in helping to bring it about and sustain it for all those years (that's the same reason establishment journalists, almost by consensus, opposed any investigations into the Bush crimes they ignored, when they weren't cheering them on). And by serving as the 2010 version of the White House Plumbers -- acting as attack dogs against the Pentagon's enemies -- they undoubtedly buy themselves large amounts of good will with those in power, always their overarching goal. It is indeed quite significant and revealing that the John Ehrlichmans and Henry Kissingers of today are found at America's largest media outlets. Thanks to them, the White House doesn't even need to employ its own smear artists.

Our federal government and our mainstream media could put Wikileaks out of business in a heartbeat if only they could stop being such liars and manipulators of information. Our government and most of our popular media seem to be under the impression that their sole purposes for existing are to maintain power and make money. This is the perfect storm for the creation of an organization like Wikileaks, because there are many of us who have strong hunches about what is going on out there in the real world and we want to see virtually all of that information made public. George Carlin exactly expresses my sentiments tonight:

Continue ReadingWhence Wikileaks?