Zen Cough of the Day

Deaths from tobacco far outstrip deaths from any individual and all other 'illicit' drugs combined.

Why don't countries who grow poppies, hemp, or coca, that the US has bombed with pesticides or sent in armies to destroy the crops, reciprocate and attack the tobacco fields in the US for growing such a dangerous drug?

- anonymous

Zen Moment of the Weekend

The overall popularity of the Republican Party has now dropped below even the abysmal level of approval enjoyed by Dick Cheney.

The NBC/Wall Street Journal poll found that 26% of respondents have a very positive or somewhat positive view of Cheney, up eight points from April. Meanwhile, it found that the GOP overall is viewed very or somewhat positively by only 25%, down four points from April.

Okay, the difference is within the margin of error, making this a statistical tie.

- AlterNet

Resistance Is Puerile

.....

Ted Rall
Jun 16, 2009 - UExpress.com

.....

NEW YORK, NORTH AMERICAN PROTECTORATE, GREATER GERMAN REICH -

At first glance, everything looks fine. Sixty-five years after the Nazi victory at D-Day brought this North American city into the fold of the Greater German Reich, the security situation is calm. Families stroll the sidewalks. Stores that haven't been boarded up are filled with browsers. Travelers line up to take the express elevator to the top of Manhattan's Adolf Hitler Tower to board express zeppelin service to Germania.

But not everyone is happy. Decades after being conquered by Germany, North American subjects of the Greater Reich are growing restive. "We would greatly appreciate it if you would consider withdrawing," reads the pointed graffiti on the side of a local SS recruiting station.

Why the anger? Six months after a new chancellor came to power amid promises of dramatic change, the Reich remains at war. Between the officially unemployed and the long-term dispossessed, 20 percent of North Americans are out of work. Auschwitz is closing and torture has been banned, but dissidents say Adolf Hitler III's reforms are merely window-dressing.

"He still reserves the right to use 'enhanced interrogation techniques,'" points out Seth, a 26-year-old who says he lives in the 'still cool' section of the Williamsburg gau of Brooklyn. "OK, so maybe he needs them. But the Auschwitz detainees are being transferred to Buchenwald and Dachau. What's with that? And now this 'Soviet surge.' This isn't the change we hoped for."

Seth is the twisted face of the Resistance, an umbrella term for the motley mix of militant factions dedicated to the overthrow of the occupation regime. Some are liberals opposed to human rights abuses. Some are leftists who want economic equality. Others oppose the Reich's wars, which they consider pointless and immoral. All say they're willing to use any means necessary.

Seth is so furious that he has even started a blog, SomewhatAnnoyed.net, where he catalogues a litany of complaints against Nazism. "People are afraid to post comments but I know they're out there, lurking. And I earn serious mid two-digits from BlogAds."

Whether it's Twittering, posting to Facebook pages or creating an iPhone app like iResist, such radical action against the authorities takes many forms. After her boyfriend was deported to the east, Greta vowed to write a letter to the editor to her local newspaper. "Once you commit yourself to the path of resistance against the fascist oppressor," she said, "you must accept that you will either end up dead or in prison. I'm OK with that." Although she hasn't gotten around to writing the letter yet-"I've been super busy with my book club, not to mention transferring my files from Blogger to Wordpress"-she says nothing can stop her from "ruthlessly smashing the infrastructure of dictatorship."

Bob and Ken blame GAFTA, the Germano-Antipodes Free Trade Agreement, for the loss of their jobs when their employer moved to New Zealand. Bored and broke, they wile away their afternoons plotting their revenge over chocolate-flavored caffeinated beverages at chain coffee shops with other disaffected partisans. "The German pigs have to go," says Bob. "We'll get them where it hurts." He is planning to think about organizing a poetry jam.

Terrorist sabotage was on the agenda at a recent meeting of their cell. "We should totally march around holding signs and chanting slogans," Bob suggested. "Maybe it would slow down traffic or something," he said, fantasizing that a busload of deportation victims might then go to their deaths later than scheduled. But getting a protest permit might require filling out a form, countered Ken. "Not to mention a fee," agreed Bob. "Anyway, protesting didn't work in the '60s. Did it?"

Denise, a fierce brunette in her late 30s, represents the ruling elite's worst nightmare. First, she obtained an MBA. Then she got a job on Wall Street. "I'm infiltrating the corporate capitalists' den, learning their methods from the inside," she said. "Once I've spent 30 or 40 years allaying their suspicions by doing everything they want and then some, I'll pose as a harmless retiree. They'll never see it coming!"

At this writing, the Gestapo had inexplicably disbanded the American division of its counterinsurgency operations.

Out of the Shadows

.....

Paul Krugman
June 19, 2009 - The New York Times

.....

Would the Obama administration's plan for financial reform do what has to be done? Yes and no.

Yes, the plan would plug some big holes in regulation. But as described, it wouldn't end the skewed incentives that made the current crisis inevitable.

Let's start with the good news.

Our current system of financial regulation dates back to a time when everything that functioned as a bank looked like a bank. As long as you regulated big marble buildings with rows of tellers, you pretty much had things nailed down.

But today you don't have to look like a bank to be a bank. As Tim Geithner, the Treasury secretary, put it in a widely cited speech last summer, banking is anything that involves financing "long-term risky and relatively illiquid assets" with "very short-term liabilities." Cases in point: Bear Stearns and Lehman, both of which financed large investments in risky securities primarily with short-term borrowing.

And as Mr. Geithner pointed out, by 2007 more than half of America's banking, in this sense, was being handled by a "parallel financial system" - others call it "shadow banking" - of largely unregulated institutions. These non-bank banks, he ruefully noted, were "vulnerable to a classic type of run, but without the protections such as deposit insurance that the banking system has in place to reduce such risks."

When Lehman fell, we learned just how vulnerable shadow banking was: a global run on the system brought the world economy to its knees.

One thing financial reform must do, then, is bring non-bank banking out of the shadows.

The Obama plan does this by giving the Federal Reserve the power to regulate any large financial institution it deems "systemically important" - that is, able to create havoc if it fails - whether or not that institution is a traditional bank. Such institutions would be required to hold relatively large amounts of capital to cover possible losses, relatively large amounts of cash to cover possible demands from creditors, and so on.

And the government would have the authority to seize such institutions if they appear insolvent - the kind of power that the Federal Deposit Insurance Corporation already has with regard to traditional banks, but that has been lacking with regard to institutions like Lehman or A.I.G.

Good stuff. But what about the broader problem of financial excess?

President Obama's speech outlining the financial plan described the underlying problem very well. Wall Street developed a "culture of irresponsibility," the president said. Lenders didn't hold on to their loans, but instead sold them off to be repackaged into securities, which in turn were sold to investors who didn't understand what they were buying. "Meanwhile," he said, "executive compensation - unmoored from long-term performance or even reality - rewarded recklessness rather than responsibility."

Unfortunately, the plan as released doesn't live up to the diagnosis.

True, the proposed new Consumer Financial Protection Agency would help control abusive lending. And the proposal that lenders be required to hold on to 5 percent of their loans, rather than selling everything off to be repackaged, would provide some incentive to lend responsibly.

But 5 percent isn't enough to deter much risky lending, given the huge rewards to financial executives who book short-term profits. So what should be done about those rewards?

Tellingly, the administration's executive summary of its proposals highlights "compensation practices" as a key cause of the crisis, but then fails to say anything about addressing those practices. The long-form version says more, but what it says - "Federal regulators should issue standards and guidelines to better align executive compensation practices of financial firms with long-term shareholder value" - is a description of what should happen, rather than a plan to make it happen.

Furthermore, the plan says very little of substance about reforming the rating agencies, whose willingness to give a seal of approval to dubious securities played an important role in creating the mess we're in.

In short, Mr. Obama has a clear vision of what went wrong, but aside from regulating shadow banking - no small thing, to be sure - his plan basically punts on the question of how to keep it from happening all over again, pushing the hard decisions off to future regulators.

I'm aware of the political realities: getting financial reform through Congress won't be easy. And even as it stands the Obama plan would be a lot better than nothing.

But to live up to its own analysis, the Obama administration needs to come down harder on the rating agencies and, even more important, get much more specific about reforming the way bankers are paid.

.....

Paul Krugman is professor of Economics and International Affairs at Princeton University and a regular columnist for The New York Times. Krugman was the 2008 recipient of the Nobel Prize in Economics. He is the author of numerous books, including The Conscience of A Liberal, and his most recent, The Return of Depression Economics.