Archive for May, 2010

Oil spill in Gulf of Mexico reaches US Gulf coast

Louisiana – Small amounts of oil from a massive spill in the Gulf of Mexico have reached US shores.

Officials said the leak, from an oil rig sunk by a massive explosion last week, was five times worse than previously thought, and could trigger a disaster of “national significance” on the Gulf coast.

By sunset on Thursday, the oil had reached the mouth of Mississippi River, lapping at the shoreline in long, thin lines and threatening birds, marine life and some of the country's richest seafood grounds.

The massive slick has prompted the southern US state of Louisiana to declare a state of emergency and the White House to step up its response.

Barack Obama, the US president, said his administration would use every resource at its disposal, including the military, to stop the spill and help alleviate its impact.

Full Story: YouTube – Oil spill in Gulf of Mexico reaches US Gulf coast.

Fraudonomics

Mark Ames -

Forget About Goldman Sachs, Our Entire Economy Is Built On Fraud

The big dirty secret of why you should worry about a fraud crackdown more than Goldman Sachs—revealed for the first time by an anonymous private equity ‘hypocrite’ and ‘liar.’

There was a strange moment last week during President Obama’s speech at Cooper Union. There he was, groveling before a cast of Wall Street villains including Goldman Sachs chief Lloyd Blankfein, begging them to “Look into your heart!” like John Turturro’s character in Miller’s Crossing…when out of the blue, the POTUS dropped this bombshell: “The only people who ought to fear the kind of oversight and transparency that we’re proposing are those whose conduct will fail this scrutiny.”

The Big Secret, of course, is that every living creature within a 100-mile radius of Cooper Union would fail “this scrutiny”—or that scrutiny, or any scrutiny, period. Not just in a 100-mile radius, but wherever there are still signs of economic life beating in these 50 United States, the mere whiff of scrutiny would work like nerve gas on what’s left of the economy. Because in the 21st century, fraud is as American as baseball, apple pie and Chevrolet Volts—fraud’s all we got left, Doc. Scare off the fraud with Obama’s “scrutiny,” and the entire pyramid scheme collapses in a heap of smoldering savings accounts.

That’s how an acquaintance of mine, a partner in a private equity firm, put it: “Whoever pops this fraud bubble is going to have to escape on the next flight out, faster than the Bin Laden Bunch fled Kentucky in their chartered jets after 9/11.”

Full Story: Fraudonomics.

Death to ‘Corporate Comrade’ Halliburton

Len Hart,

Halliburton, for whom George W. Bush hijacked the US military to wage war and perp capital crimes against the people of Iraq, may be and should be subject to severe penalties, perhaps death, as a result of the ‘personhood’ granted them recently by the US ‘Supreme’ Court. If Halliburton is a ‘person’, then Halliburton must be charged with multitudinous crimes, tried, found guilty and ‘put to death for its capital crimes but not before it is literally ‘fined’ out of existence for the monetary damages it has inflicted upon the world environment.

The oil well spewing crude into the Gulf of Mexico didn’t have a remote-control shut-off switch used in two other major oil-producing nations as last-resort protection against underwater spills.

The lack of the device, called an acoustic switch, could amplify concerns over the environmental impact of offshore drilling after the explosion and sinking of the Deepwater Horizon rig last week.

Full Story: The Existentialist Cowboy: Death to ‘Corporate Comrade’ Halliburton.

The Euro Trap

Paul Krugman -

Not that long ago, European economists used to mock their American counterparts for having questioned the wisdom of Europe’s march to monetary union. “On the whole,” declared an article published just this past January, “the euro has, thus far, gone much better than many U.S. economists had predicted.”

Oops. The article summarized the euro-skeptics’ views as having been: “It can’t happen, it’s a bad idea, it won’t last.” Well, it did happen, but right now it does seem to have been a bad idea for exactly the reasons the skeptics cited. And as for whether it will last — suddenly, that’s looking like an open question.

To understand the euro-mess — and its lessons for the rest of us — you need to see past the headlines. Right now everyone is focused on public debt, which can make it seem as if this is a simple story of governments that couldn’t control their spending. But that’s only part of the story for Greece, much less for Portugal, and not at all the story for Spain.

Full Story: Op-Ed Columnist – The Euro Trap – NYTimes.com.

Supreme Court ruling on crucifix displays conservative hypocrisy

In a narrow 5-4 decision sending the case back to a lower court, the 5 conservative members of the Supreme Court overturned a lower court ruling that a crucifix erected on government land in the Mojave Desert to honor war dead did not violate the first amendment “establishment” clause meant to prevent any government endorsement of a religion.

But the hypocrisy of the reasoning was apparent in deciding the case on ideological not constitutional grounds. In the opinion, written by Justice Kennedy for the majority, he wrote that the first amendment calls for a “middle ground policy of accommodation regarding religious symbols.”

There is of course no mention of a middle ground on anything in the first amendment, and and the hypocrisy of the reasoning is brazen because conservatives, including those on the court, who rail against Roe v.Wade, do so because they say the basis for the decision — that there is a constitutional right to privacy — doesn't exist in the constitution.

Full Story: Supreme Court ruling on crucifix displays conservative hypocrisy.

Ask the Senate to vote on an amendment to audit the Federal Reserve

Sign our letter to the Senate:

“It’s time to end the secrecy surrounding the Federal Reserve and bring greater accountability to our financial system.

I join the bipartisan group of Senators Bernie Sanders, Russ Feingold, Ron Wyden, Chuck Grassley, Jim DeMint and Sam Brownback, as well as Reps. Alan Grayson and Ron Paul, in calling for an audit of the Federal Reserve to make public the recipients of over $2 trillion in bailouts during the financial crisis.”

The Federal Reserve, the central bank for the United States, spent more than $2 trillion in secret bailouts for big banks during the financial crisis.

Problem is, it’s refusing to give any details about how it spent that huge sum of money.

If we can audit the Fed, we can find out how it propped up which big banks, bringing accountability to our financial system.

Auditing the Fed could restore the public’s trust in our financial system, and help us avoid another mismanaged disaster from occurring. With your help, we can end the historic secrecy surrounding the Fed.

Full Story: action.firedoglake.com | Ask the Senate to vote on an amendment to audit the Federal Reserve.

More Obama DOJ attacks on whistle-blowers

Glenn Greenwald -

In February, 2008, the Bush DOJ issued a subpoena to The New York Times’ James Risen, demanding the identity of his source(s) for one chapter in Risen’s best-selling book, State of War. The chapter in question described a painfully inept and counter-productive CIA effort to infiltrate the Iranian nuclear program, but which ended up instead passing on valuable information to the Iranians about how to build a bomb. At the time that subpoena was issued, I wrote that it was a serious and “dangerous” escalation of the ongoing effort by Bush officials to intimidate journalists and their sources in order to choke off whistle-blowing disclosures, “the sole remaining avenue for a country plagued by a supine, slothful, vapid press and an indescribably submissive Congress.” I don’t recall a single progressive or Democrat — not one — defending that subpoena.

It should surprise absolutely nobody that, as Charlie Savage reports, the Obama DOJ has now re-issued the same subpoena to Risen. As DOJ rules require [see Section III(A)(2)(l)], any such subpoenas (to journalists) require the personal approval of the Attorney General, and Savage reports that this subpoena was approved by Eric Holder. The reason such subpoenas are so dangerous is because journalists are duty-bound to their sources to refuse to comply, and will likely end up in prison if they don’t. Few things, if anything, are greater threats to the journalist-source relationship than DOJ subpoenas of this type. And the idea that this particular leak jeopardized national security is nothing short of a joke, as Harper’s Scott Horton makes clear:

Full Story: More Obama DOJ attacks on whistle-blowers – Glenn Greenwald – Salon.com.

Matt Taibbi : The Feds vs. Goldman

the day the SEC filed suit against Goldman Sachs for fraud, shares plunged 12.8 percent…A few days later, Goldman announced  first-quarter profits were up 91 percent, to a staggering $3.4 billion.

On the day the Securities and Exchange Commission filed suit against Goldman Sachs for securities fraud, shares in the company plunged 12.8 percent, closing at $160.70. The market, it seemed, was finally passing judgment on a decade of high-stakes Wall Street scammery that left America threatening Nigeria, Indonesia and Belarus on the list of the world’s most corrupt economies.

A few days later, Goldman announced its first-quarter numbers. Profits were up 91 percent, to a staggering $3.4 billion.

Compensation and bonuses soared to $5.5 billion, up from $4.7 billion in the first quarter of 2009. Battered in the press, Goldman was raking up on the bottom line. So investors once again leapt into Goldman’s arms, pushing the stock as high as $166.50, not far from where it was even before news of the SEC suit broke.

Full Story: Politics — Latest News — The Feds vs. Goldman — RollingStone.com.

Afghan MP says U.S. troops raid home, kill relative

U.S. troops raided the home of a female member of the Afghan parliament and killed a neighbour who was one of her relatives, the MP said Thursday, an incident that sparked angry protests in the east.

A spokesman for foreign forces in Afghanistan said Western and Afghan troops had raided a house in the area and shot dead an armed man but was not able to comment on whether the house belonged to a member of parliament.

Night-time raids by Western troops and civilian casualties are among the most incendiary issues in Afghanistan, and the targeting of a female parliamentarian would raise the political temperature at a time when NATO is preparing a large offensive.

Full Story: Afghan MP says U.S. troops raid home, kill relative – thestar.com.

Geithner Talks Tough About Banks’ Loan Mod Efforts, But More Bark Than Bite

For nearly a year now, we at ProPublica have been reporting on the problems homeowners have encountered when seeking a mortgage modification under the administration’s program.

Yesterday, Treasury Secretary Tim Geithner for the first time acknowledged the depths of the problems, but didn’t offer any new solutions. He committed to release more detailed data on how banks and other servicers are faring—a promise Treasury first made six months ago.

“We are concerned by the wide variation in performance we see across servicers and by the countless frustrated phone calls we receive from borrowers,” Geithner testified yesterday before Congress. He added that the Treasury was “troubled” by “reports that servicers have foreclosed on potentially eligible homeowners” and frequent complaints from homeowners that servicers lose their documents. He said servicers are “not doing enough to help homeowners” and that it was not “acceptable.”

Full Story: On The Hill: Geithner Talks Tough About Banks’ Loan Mod Efforts, But More Bark Than Bite.

Democrats’ Senate Measure Would Put Teeth Into State Credit Card Rate Caps

A proposed amendment to the Senate financial reform bill would enable states to enforce credit card interest limits on lenders based in other states, according to a group of Democrats who have introduced the measure.

Sen. Sheldon Whitehouse (D-R.I.) filed the amendment, which is modeled after his Empowering States’ Right to Protect Consumers Act (S. 255) introduced last year.

For more than 200 years, each state had the ability enforce usury laws against any lender doing business with its citizens. Then, in 1978, a Supreme Court case opened up a loophole through which big national banks have been able to avoid state law interest rate caps. The Whitehouse amendment would change the law to make clear that credit card companies and other lenders – no matter there in the country they are located – must abide by the interest rate limits of the states in which their customers reside, according to supporters of the measure.

Full Story: On The Hill: Democrats’ Senate Measure Would Put Teeth Into State Credit Card Rate Caps.

Chemicals Meant To Break Up BP Oil Spill Present New Environmental Concerns

The chemicals BP is now relying on to break up the steady flow of leaking oil from deep below the Gulf of Mexico could create a new set of environmental problems.

Even if the materials, called dispersants, are effective, BP has already bought up more than a third of the world’s supply. If the leak from 5,000 feet beneath the surface continues for weeks, or months, that stockpile could run out.

On Thursday BP began using the chemical compounds to dissolve the crude oil, both on the surface and deep below, deploying an estimated 100,000 gallons. Dispersing the oil is considered one of the best ways to protect birds and keep the slick from making landfall. But the dispersants contain harmful toxins of their own and can concentrate leftover oil toxins in the water, where they can kill fish and migrate great distances.

Full Story: On The Hill: Chemicals Meant To Break Up BP Oil Spill Present New Environmental Concerns.

Second oil rig overturns in Gulf of Mexico, no injuries reported

Officials say an oil drilling rig on its way to a scrap yard has overturned in Louisiana.

No injuries have been reported.

The rig overturned about 80 miles west-southwest of New Orleans. The Coast Guard said in a news release Friday that the drilling unit overturned in the Charenton navigational canal.

It can carry about 20,000 gallons of diesel fuel, but Coast Guard officials did not know how much fuel was on board. Coast Guard investigators say no fuel leaks have been found.

Full Story: AP: Second oil rig overturns in Gulf of Mexico, no injuries reported | rgj.com | The Reno Gazette-Journal.

USDA downplays own Scientist’s Research on ill effects of Monsanto Herbicide — Signs of the Times NewsMonsanto

Sure, the crops are genetically engineered to withstand Roundup; but what about the soil?What would happen if a USDA scientist discovered that one of the most commonly used pesticides on the planet with a reputation for having saved millions of tons of US soil from erosion was - rather than a soil savior - a soil killer?That, to quote a certain paranormal expert, would be bad. And yet, it's true.

This news came to the fore thanks to a recently published must-read article from Reuters on how government regulators are “dropping the ball” on agricultural biotechnology. It begins with the story of USDA scientist Dr. Robert Kremer. Kremer has spent the last fifteen years looking at Monsanto’s blockbuster broad-spectrum herbicide ), the most commonly used pesticide in the world and the companion to Monsanto’s possibly monopolistic RoundupReady lines of genetically engineered seeds.

While exact figures are a closely guarded secret thanks to the USDA’s refusal to update its pesticide use database after 2007, estimates suggest upwards of 200 million pounds of glyphosate were dumped on fields and farms in the US in 2008 alone. That’s almost double the amount used in 2005

Full Story: USDA downplays own Scientist’s Research on ill effects of Monsanto Herbicide — Signs of the Times News.

Hedges Joins Kucinich, Scahill for Teach-In on Ending U.S. Wars

Did Congress declare war on Afghanistan according to the rules set forth in the Constitution? According to David Swanson, who joined Chris Hedges, Jeremy Scahill, Ann Wright and Josh Steiber for a teach-in Thursday on Capitol Hill, that one depends on how you slice it, and it has to do—surprise!—with money.

For his part, Hedges brought his experience from covering wars in the Middle East, Latin America and Europe to bear on the larger discussion, moderated by Rep. Dennis Kucinich, about what Congress must do to end the current wars and secure peace in the Middle East. —KA

Full Story: Hedges Joins Kucinich, Scahill for Teach-In on Ending U.S. Wars – Truthdig.

Whistleblower: BP Risks More Massive Catastrophes in Gulf

A former contractor who worked for British Petroleum (BP) claims the oil conglomerate broke federal laws and violated its own internal procedures by failing to maintain crucial safety and engineering documents related to one of the firms other deepwater production projects in the Gulf of Mexico, according to internal emails and other documents obtained by Truthout.

The whistleblower, whose name has been withheld at the person’s request because the whistleblower still works in the oil industry and fears retaliation, first raised concerns about safety issues related to BP Atlantis, the world’s largest and deepest semi-submersible oil and natural gas platform, located about 200 miles south of New Orleans, in November 2008. Atlantis, which began production in October 2007, has the capacity to produce about 8.4 million gallons of oil and 180 million cubic feet of natural gas per day.

It was then that the whistleblower, who was hired to oversee the company’s databases that housed documents related to its Atlantis project, discovered that the drilling platform had been operating without a majority of the engineer-approved documents it needed to run safely, leaving the platform vulnerable to a catastrophic disaster that would far surpass the massive oil spill that began last week following a deadly explosion on a BP-operated drilling rig.

BP’s own internal communications show that company officials were made aware of the issue and feared that the document shortfalls related to Atlantis “could lead to catastrophic operator error” and must be addressed.

Full Story: t r u t h o u t | Whistleblower: BP Risks More Massive Catastrophes in Gulf.