Tuesday, December 7, 2010

Obama Tax & Unemployment "Deal" and The War On WikiLeaks

In This Issue:

- What is known about Obama's tax cut for the rich deal-making?
- The "War On WikiLeaks"

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What is known about Obama's tax cut for the rich deal-making?

I was in a local business establishment this afternoon and was talking with the proprietor and a customer, who I have become acquainted with there. When the conversation turned to the issue of unemployment benefits being extended, the acquaintance, who is really fun to talk with, said something about giving more unemployment benefits to people who haven't found a job in two years was something like ill-advised to absurd. Anyone should be able to find a job in a little less than two years, even at McDonald's, right? In reading the article below about the details [I didn't] of the most recent Obama capitulation, I find that he probably didn't understand the details. According to these Congress watchers, "99 weeks would still be the maximum amount of time that anybody could receive benefits" which is a little less than two years of allowable unemployment benefits. That's it. So regardless of whether the economy is producing enough jobs to keep people gainfully employed, which it is not, if you can't find a job in 99 weeks, you can just fall through the "safety net" into sone sort of hell, perhaps on the street or worse.

The most recent Employment Situation Summary from the BLS reported that 39,000 jobs were created in November. Some spinmeisters saw this as a positive sign, but a report from an economist on NPR this last weekend noted that we need 115,000 to 120,000 jobs created every month just to keep up with population growth. [Nice of NPR to let this factoid through to their audience, as the are constantly labeling people opposed to mass-immigration as "anti-immigrant, even though mass-immigration (immigrants and children of immigrants) is responsible for between 75 to 90+% of US population growth.] Some commentators put the numbers higher, with one saying the number of new jobs needed to keep up with population growth is around 150,000, and even he uses what is probably a low estimate of actual population growth.

So the point is how are people supposed to find jobs when we can't create enough jobs to even keep up with new entries to the job market?

Another positive part of the article below is that the writer actually referred to the Tea Party folks as Republican. While many are in fact independents and Libertarians, it is clear that the press and Republican spin on their political ideology clearly favors the Republican leadership.

At the end of the day, when push came to shove this week, Obama didn't make the effort to offer a continued case to show that the Republican's were holding the unemployed hostage in order to enrich millionaires and billionaires. He has capitulated once again, and has given away his veto power. Now the deficit, that the Republicans say they hate, only gets worse. So-called compromise, even when it is self-defeating, destructive and idiotic, takes the day.
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What Exactly Is In Obama's Tax Cut/Unemployment Extension Compromise?
Open Congress : Congress Gossip Blog
December 7, 2010 - by Donny Shaw

President Obama on Monday announced the “framework” of a deal with congressional Republicans for dealing with the looming expiration of the Bush tax cuts. It’s a two-year deal, and it includes a bunch of other stuff, all at a cost about $900 billion. None of it is offset, so this will be a direct increase in the deficit. Let’s take a look at the specifics of what’s included:

1. Two-year extension of all Bush tax cuts — Income taxes will stay right where they are at least until January 2013, even for the wealthiest Americans. Obama seems to think that having this tax debate again in 2012 will be good politics for his re-election.

2. Two-year estate tax cut — Bush’s 2001 tax bill gradually scaled back the estate tax, a federal assessment on inherited wealth, to 0% in 2010. But because it was done using budget reconciliation, the bill sunsets after ten years (just like the income taxes) and the rate is scheduled to go back up on January 1st to the pre-Bush rate — 55%, with the first $675,000 being exempt. Obama’s proposal would lower this significantly for 2011 and 2012 — the first $5 million would be exempt and the rest would be taxed at 35%. This compromise is taken directly from a Sen. Blanche Lincoln [D, AR] amendment that was added to the 2010 budget resolution by a vote of 51-48.

3. 13-month extension of federal unemployment programs — The filing deadline for federal unemployment insurance that provides benefits for people who run out of their 26 weeks of state-provided benefits without finding a job would be extended until January 2012. Essentially, this will make it possible for people who became unemployed in the past 99 weeks and still haven’t found a job to collect benefits for the same length of time as people who lost their job more than 99 weeks ago. This would not add additional weeks of benefits — 99 weeks would still be the maximum amount of time that anybody could receive benefits.

4. One-year payroll tax holiday — Social security payroll taxes, which, under current law, are split equally between employees and employers, would be reduced from 6.2% to 4.2% with all of the benefits of the reduction going to the employees. For the average U.S. salary of $50,000, this would mean tax savings of about $1,000 next year. Obama originally wanted to include an extension of his “Making Work Pay” tax credit, which provides workers up to $400 annually for all workers, but Republicans objected and the payroll tax holiday was included instead. Reducing payroll taxes is generally considered the most stimulative form of supply-side policy.

5. Two years of 100% business expensing — Businesses will be able to immediately write off 100% of the costs of new equipment purchases until 2013. Typically, the costs of equipment purchases are deducted over the life of their use. This proposal is designed to free up now money for businesses that would normally be spread over multiples years in order to encourage more hiring and investing.

6. Miscellaneous stimulus bill tax cut extensions — The lower earning threshold for the child tax credit would be extended for two years. The expanded earned income tax credit would be extended. And the American opportunity tax credit, which provides college students with a $4,000 credit in exchange for community service, would be extended.

Now, this is far from a done deal. This package is designed to get 60 votes in the Senate, but it may not pass muster in the House. The House Democratic caucus, which is generally more progressive than their Senate counterpart, is reserving the option to revolt. And Tea Party Republicans are threatening to vote “no” because of the unemployment insurance extension that is attached.

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The Baseline Scenario
What happened to the global economy and what we can do about it
Tax Cut Ironies

By James Kwak

From The New York Times:

“Congressional Republicans in recent days have blocked efforts by Democrats to extend the jobless aid, saying they would insist on offsetting the $56 billion cost with spending cuts elsewhere.”

Instead, as it turns out, they agreed to offset the cost with tax cuts elsewhere.

Still, though, I place the blame for this one squarely on the White House. The Republicans are just doing what Republicans do: arguing for lower government spending and lower taxes. The fact that they justify the former by saying it will cut the deficit and the latter by saying it will stimulate the economy (when you could just as easily switch the arguments and make them point the other way) is just a detail.

As I’ve said before, the Bush tax cuts were always bad policy.* After the last election, President Obama will be able to accomplish precious little. But he could easily have killed the Bush tax cuts and thereby done more good for our nation’s fiscal situation than anyone will be in a position to do for many years to come. Killing the tax cuts would alone reduce the national debt by roughly as much as the deficit commission’s entire proposal. And killing the tax cuts was the path of least resistance. Obama could have done it by doing nothing. Or he could have done it by taking a strong negotiating position and being willing to walk away from the table.

(Note to Barack: If you want to win a negotiation, you have to be willing to walk away. Take my daughter. If I threaten her with a three-minute timeout, she says, “I want a timeout for eight hours!” If I threaten to take away an episode of Dinosaur Train, she says, “I don’t want to watch Dinosaur Train ever again!” You have two daughters, right?)

Instead, we got a two-year extension as part of an overall package that adds $900 billion to the debt.

Now, Ezra Klein, whom I agree with more often than not, says, “the White House and Congress are right to make the deficit less of a priority than economic recovery.” Well, sure, in principle. But this deal isn’t justified by that principle for two reasons. First, as Paul Krugman pointed out, a two-year extension will reduce the unemployment rate by 0.2 to 0.6 percentage points. Yes, that’s hundreds of thousands of jobs, but it’s at a cost of hundreds of billions of dollars. And at the current course and speed, those hundreds of billions of dollars will, in the long term, get taken away from the middle class in lower Social Security and Medicare benefits. The reason it’s just 0.2-0.6 percent is that tax cuts, once again, are a lousy form of stimulus. According to Mark Zandi (via Menzie Chinn), the multiplier for the Bush income tax cuts is 0.29 and the multiplier for accelerated depreciation is 0.27.

Second, this can no longer be considered a two-year tax cut. This year, the Democrats gave in to the framing that letting the cuts expire would be a tax increase. President Obama has already nailed himself to the cross of “stop[ping] middle-class taxes from going up.” With that on his resume, how is he going to flip-flop and let those taxes go up in 2012? He won’t win a vote to cut taxes just for the middle class with fewer Democrats in Congress than he has now. So if he wants to preserve the middle-class tax cuts, he’ll have to compromise again.

And Obama will no longer be able to say the tax cuts were a mistake made by President Bush that he was letting expire. Now he owns the mistake. This is a long way of saying that this isn’t a two-year tax cut to stimulate the economy (with a 0.29 multiplier, remember) in a recession. It’s a wedge of about 2 percent of GDP that is part of the structural deficit for the foreseeable future, just like the AMT patch that magically keeps getting extended.

Sure, they might not be extended in 2012. But I fail to see how the politics will be any different. “I protected you from a tax increase in 2010, but I’m raising your taxes now because . . . because . . . suddenly I care about the deficit . . . and we’re not in a recession anymore.” Yeah, right. By comparison, the message this time would have been easy: “I and the Democrats in Congress supported a bill to keep your taxes low. The Republicans blocked it because they insisted on tax cuts for the rich. Blame them.” So the tax cuts might not be extended, but you could also say that Congress will vote to raise taxes. Not likely in either case.

So finally, you have to ask, what does Barack Obama want? Does he really like most of the Bush tax cuts? Does he really think the bulk of the tax cuts are good for the country, and that going along with the tax cuts in the top brackets is a reasonable price to pay to keep them?

* How bad? Here’s one example. In order to pass the bill using reconciliation–the first time reconciliation was ever used to pass a deficit-increasing bill–they had to limit the ten-year cost of the bill. One way they did that was by adding a provision that allows upper-income taxpayers, in 2010, to convert their traditional IRAs to Roth IRAs. This is unambiguously good for upper-income taxpayers, because it’s optional, so you can decide if you want to do it. So in the long term, it will result in lower tax revenues. But it artificially juices tax revenues in 2010, because when you convert you have to pay tax on the conversion amount now. That increased the amount by which they could cut taxes elsewhere in the bill. So, as my tax casebook puts it, the bill uses tax cuts for the rich to fund more tax cuts for the rich.

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President Obama: FIGHT, don't cave on Bush tax cuts for millionaires!
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The War On WikiLeaks: WikiLeaks and the Arrest of Julian Assange
One of the hallmarks of Fascism is the cooperation and collusion of corporations with governments to their mutual benefit, which is not, unfortunately, the same as benefiting those they have power over, the people. The behavior of US multinational corporations (eg. Amazon terminating it's WikiLeaks hosting, and PayPal preventing contributions to Assange's defense) and several of the world's governments, especially our's, in their attempts to destroy Julian Assange for informing people about the true nature of their governments is a case in point.

Assange, who turned himself into British authorities today was denied bail. He was alleged to have conducted "rape" and not worn a condom during consensual sex [later reports say the condom broke and he continued to engage, and in one case was reported to have unprotected sex with a "sleeping" woman he woke up with 12/10/10], with adult women who were proud of their association with him afterwards, with one even hosting a party for him the next day (she had also worked for a CIA funded anti-Castro group). Mysteriously (or not), Assange has not actually been charged with any crime (Glenn Greenwald on the Arrest of Julian Assange and the U.S. "War on WikiLeaks"), and he is only wanted for questioning about possible charges of "rape" and abuse for not wearing a condom. Interesting that a person who turns himself in for questioning under a warrant without charge, would be arrested and denied bail, don't you think?

My own thoughts on the situation are that an internationally lawless US government has arranged for his arrest on trumped-up charges in order to get him extradited to Sweden, who will then extradite him to the US, or that he will be directly extradited to the US, so that the your government can charge him, and perhaps imprison him indefinitely, on even more spurious charges related to espionage, even though he only reported information that was provided to him, and even though that same information is being reported by the New York Times, the Guardian of London, and other mainstream media outlets.
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Don't Shoot Messenger for Revealing Uncomfortable Truths

WIKILEAKS deserves protection, not threats and attacks.

By Julian Assange

December 07, 2010 "The Australian" --IN 1958 a young Rupert Murdoch, then owner and editor of Adelaide's The News, wrote: "In the race between secrecy and truth, it seems inevitable that truth will always win."

His observation perhaps reflected his father Keith Murdoch's expose that Australian troops were being needlessly sacrificed by incompetent British commanders on the shores of Gallipoli. The British tried to shut him up but Keith Murdoch would not be silenced and his efforts led to the termination of the disastrous Gallipoli campaign.

Nearly a century later, WikiLeaks is also fearlessly publishing facts that need to be made public.

I grew up in a Queensland country town where people spoke their minds bluntly. They distrusted big government as something that could be corrupted if not watched carefully. The dark days of corruption in the Queensland government before the Fitzgerald inquiry are testimony to what happens when the politicians gag the media from reporting the truth.

These things have stayed with me. WikiLeaks was created around these core values. The idea, conceived in Australia, was to use internet technologies in new ways to report the truth.

WikiLeaks coined a new type of journalism: scientific journalism. We work with other media outlets to bring people the news, but also to prove it is true. Scientific journalism allows you to read a news story, then to click online to see the original document it is based on. That way you can judge for yourself: Is the story true? Did the journalist report it accurately?

Democratic societies need a strong media and WikiLeaks is part of that media. The media helps keep government honest. WikiLeaks has revealed some hard truths about the Iraq and Afghan wars, and broken stories about corporate corruption.

People have said I am anti-war: for the record, I am not. Sometimes nations need to go to war, and there are just wars. But there is nothing more wrong than a government lying to its people about those wars, then asking these same citizens to put their lives and their taxes on the line for those lies. If a war is justified, then tell the truth and the people will decide whether to support it.

If you have read any of the Afghan or Iraq war logs, any of the US embassy cables or any of the stories about the things WikiLeaks has reported, consider how important it is for all media to be able to report these things freely.

WikiLeaks is not the only publisher of the US embassy cables. Other media outlets, including Britain's The Guardian, The New York Times, El Pais in Spain and Der Spiegel in Germany have published the same redacted cables.

Yet it is WikiLeaks, as the co-ordinator of these other groups, that has copped the most vicious attacks and accusations from the US government and its acolytes. I have been accused of treason, even though I am an Australian, not a US, citizen. There have been dozens of serious calls in the US for me to be "taken out" by US special forces. Sarah Palin says I should be "hunted down like Osama bin Laden", a Republican bill sits before the US Senate seeking to have me declared a "transnational threat" and disposed of accordingly. An adviser to the Canadian Prime Minister's office has called on national television for me to be assassinated. An American blogger has called for my 20-year-old son, here in Australia, to be kidnapped and harmed for no other reason than to get at me.

And Australians should observe with no pride the disgraceful pandering to these sentiments by Julia Gillard and her government. The powers of the Australian government appear to be fully at the disposal of the US as to whether to cancel my Australian passport, or to spy on or harass WikiLeaks supporters. The Australian Attorney-General is doing everything he can to help a US investigation clearly directed at framing Australian citizens and shipping them to the US.

Prime Minister Gillard and US Secretary of State Hillary Clinton have not had a word of criticism for the other media organisations. That is because The Guardian, The New York Times and Der Spiegel are old and large, while WikiLeaks is as yet young and small.

We are the underdogs. The Gillard government is trying to shoot the messenger because it doesn't want the truth revealed, including information about its own diplomatic and political dealings.

Has there been any response from the Australian government to the numerous public threats of violence against me and other WikiLeaks personnel? One might have thought an Australian prime minister would be defending her citizens against such things, but there have only been wholly unsubstantiated claims of illegality. The Prime Minister and especially the Attorney-General are meant to carry out their duties with dignity and above the fray. Rest assured, these two mean to save their own skins. They will not.

Every time WikiLeaks publishes the truth about abuses committed by US agencies, Australian politicians chant a provably false chorus with the State Department: "You'll risk lives! National security! You'll endanger troops!" Then they say there is nothing of importance in what WikiLeaks publishes. It can't be both. Which is it?

It is neither. WikiLeaks has a four-year publishing history. During that time we have changed whole governments, but not a single person, as far as anyone is aware, has been harmed. But the US, with Australian government connivance, has killed thousands in the past few months alone.

US Secretary of Defence Robert Gates admitted in a letter to the US congress that no sensitive intelligence sources or methods had been compromised by the Afghan war logs disclosure. The Pentagon stated there was no evidence the WikiLeaks reports had led to anyone being harmed in Afghanistan. NATO in Kabul told CNN it couldn't find a single person who needed protecting. The Australian Department of Defence said the same. No Australian troops or sources have been hurt by anything we have published.

But our publications have been far from unimportant. The US diplomatic cables reveal some startling facts:

► The US asked its diplomats to steal personal human material and information from UN officials and human rights groups, including DNA, fingerprints, iris scans, credit card numbers, internet passwords and ID photos, in violation of international treaties. Presumably Australian UN diplomats may be targeted, too.

► King Abdullah of Saudi Arabia asked the US to attack Iran.

► Officials in Jordan and Bahrain want Iran's nuclear program stopped by any means available.

► Britain's Iraq inquiry was fixed to protect "US interests".

► Sweden is a covert member of NATO and US intelligence sharing is kept from parliament.

► The US is playing hardball to get other countries to take freed detainees from Guantanamo Bay. Barack Obama agreed to meet the Slovenian President only if Slovenia took a prisoner. Our Pacific neighbour Kiribati was offered millions of dollars to accept detainees.

In its landmark ruling in the Pentagon Papers case, the US Supreme Court said "only a free and unrestrained press can effectively expose deception in government". The swirling storm around WikiLeaks today reinforces the need to defend the right of all media to reveal the truth.

Julian Assange is the editor-in-chief of WikiLeaks.
Copyright 2010 News Limited
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Glenn Greenwald on the Arrest of Julian Assange and the U.S. "War on WikiLeaks"

WikiLeaks founder Julian Assange has been arrested in London on an international warrant to face sex crime allegations in Sweden. Assange is expected to face a hasty extradition process to Sweden. We speak with Glenn Greenwald, constitutional attorney and blogger at Salon.com. Greenwald says: "Whatever you think of WikiLeaks, they have not been charged with a crime, let alone indicted or convicted. Yet look what has happened to them. They have been removed from Internet … their funds have been frozen … media figures and politicians have called for their assassination and to be labeled a terrorist organization. What is really going on here is a war over control of the Internet, and whether or not the Internet can actually serve its ultimate purpose—which is to allow citizens to band together and democratize the checks on the world’s most powerful factions."

Glenn Greenwald, constitutional law attorney and political/legal blogger at Salon.com.

Related stories:

With Rumored Manhunt for Wikileaks Founder and Arrest of Alleged Leaker of Video Showing Iraq Killings, Obama Admin Escalates Crackdown on Whistleblowers of Classified Information

AMY GOODMAN: We’re broadcasting from Cancún, Mexico, at the U.N. Climate Change Conference. In a moment, we’ll turn to the talks here in Cancún, but first our top story. Julian Assange, the founder of the WikiLeaks website, was arrested in London earlier today on an international warrant to face sexual assault allegations in Sweden. Assange is appearing in court today after surrendering to British police. The case reportedly centers on accusations from two women who say Assange refused to use a condom during consensual sex. Assange and WikiLeaks have denounced the case as a political witch-hunt that’s intensified with the group’s release of secret U.S. diplomatic cables.

Meanwhile, the Obama administration is carrying out a separate criminal probe focused on WikiLeaks’s decision to release secret U.S. documents about the wars in Iraq and Afghan and U.S. diplomatic cables. U.S. Defense Secretary Gates said earlier today Assange’s arrest, quote, "sounds like good news to me."

The whistleblowing website WikiLeaks has said it will keep operating as normal despite the arrest of its founder, Julian Assange, in Britain. A spokesperson said, quote, "WikiLeaks is operational. We are continuing on the same track as laid out before. Any development with regards to Julian Assange will not change the plans we have with regards to the releases today and in the coming days." WikiLeaks has released less than one percent of the more than 250,000 secret diplomatic cables in its possession.

For more on the arrest of Julian Assange, I’m joined by Democracy Now! video stream by Glenn Greenwald, constitutional attorney and blogger at Salon.com.

Glenn, if you could just respond to this latest news on the arrest of Julian Assange in Britain.

GLENN GREENWALD: Well, what’s interesting is it’s being depicted in the media as some kind of an international manhunt that finally concluded. That’s what Matt Lauer announced this morning on NBC News, the international manhunt is over. The reality is that although this case has been around for quite some time, there was really only a valid arrest warrant for the first time in England, the country where he’s been located, as of yesterday, and last night his attorneys negotiated his turning himself in with the police department in London. So it was entirely voluntary. There was never any manhunt of any kind, nor has he been actually charged with a crime. The arrest warrant has been issued by the Swedish authorities in order to question him about the accusations that have been made. There’s no judgment that he’s guilty or that there should be a prosecution at all. They’re simply seeking to interrogate him.

And one of the most—the strangest and most interesting aspects of all of this is that it’s extremely unusual for Interpol, the international police agency used in Europe and other places, to be used in this manner. I mean, he was put on the, quote, "most wanted" list, even though, as I just said, he’s not charged with any crime. They’re simply seeking to interrogate him. And for months now, his attorneys have offered to the Swedish police and to prosecutors to make him available for questioning, whether it be by telephone or by Skype or by appearing in some other technologically suitable means, and yet they’ve been extremely insistent, very oddly so, that that isn’t good enough, that he actually make himself physically available in the jurisdiction of Sweden in order to be detained and interrogated.

And, of course, the real concern is—and it’s the concern that Assange and his lawyers have—is that what this really is is just a ploy to get him into custody in a country, which is Sweden, that is very subservient to the United States, that is willing to extradite him to the United States or turn him over with the slightest request. And any person who has followed the United States, quote-unquote, "justice system" over the last decade knows that there’s good reason to fear that, that anybody who’s accused of national security crimes, especially if they’re not an American citizen, is treated in violation of virtually every Western norm of justice, without almost any due process.

So I think the responsible thing to do for any person is to wait and see with regard to the allegations themselves that these women have made, whether there’s evidence to support it. We should all wait and see one way or the other, and hopefully the case will play itself out. But there’s lots of reasons, in terms of how it’s been treated by Swedish authorities, to find it very questionable indeed whether what’s really going on is a politically motivated effort to get him out of WikiLeaks, stop what he’s doing in terms of exposing and bringing transparency to governments around the world, and ultimately hand him over to the United States.

AMY GOODMAN: Julian Assange has appeared on Democracy Now! several times this year. On October 26th, he detailed some of the international pressure facing WikiLeaks.

JULIAN ASSANGE: Oh, there’s no doubt that this organization is under siege. There was a direct demand made by the Pentagon that we destroy all previous publications, all upcoming publications—an incredible demand for prior restraint on a media organization by a military—and that we cease dealing with U.S. military whistleblowers.

My Swedish residency application was denied for reasons that still remain secret.

One week after the release of the Afghan war diaries, our donation credit card processing company Moneybookers, the second biggest on the internet after Paypal, terminated our accounts, and we were forwarded an email by the security department explaining the situation to the account manager, which was that we were on a U.S. watchlist and an Australian government blacklist and to see the current controversy in relation to Afghanistan. Fortunately, we have just now managed to get up an Icelandic-based credit card processing scheme, so donors can once again donate there.

The Australian attorney general stated that he would assist any country anywhere in the world to prosecute us over these disclosures and that, when asked the question, had he provided intelligence assistance, something that we have evidence of, said, "Well, yes, we help countries from time to time, but I won’t comment directly on that matter."

And we know the Icelandic government has been publicly pressured to not be a safe haven for our publishing activities or for me personally.

The Swedish government has been pressured at the intelligence agency level to its body SAPO. When I left Sweden on the 27th of September, my—to a flight to Berlin on SAS, one of the world’s most—if not the world’s most reputable airline—my luggage disappeared. That was the—I was the only case in that plane.


AMY GOODMAN: That was Julian Assange speaking on Democracy Now! just a few weeks ago.

By the way, a correction to an earlier headline, a Swiss bank has frozen Julian Assange’s account, not a Swedish bank.

Also, the newspaper called The Australian is preparing to run an op-ed by Julian Assange that was written before his arrest. The newspaper reports, quote, "Mr Assange begins by saying: 'in 1958, a young Rupert Murdoch, then owner and editor of Adelaide's the News, wrote: 'In the race between secrecy and truth, it seems inevitable that truth will always win.' It goes on to say a few more things about freedom of speech; the 'dark days' of corrupt government in Queensland (where Assange was raised); and it says much about his upbringing in a country town, 'where people spoke their minds bluntly'. It says that Australian politicians are chanting a 'provably false chorus' with the US State Department of ’You’ll risk lives! You’ll endanger troops!’ by releasing information, and 'then they say there is nothing of importance in what Wikileaks publishes. It can't be both.’" Those are a few of the quotes that will appear in Julian Assange’s op-ed piece. The Australian newspaper is releasing it at midnight Australian time. Final comments, Glenn Greenwald?

GLENN GREENWALD: Well, I just want to underscore how alarming everything is that you just described, both in that report and in your earlier one, which is, whatever you think of WikiLeaks, they’ve never been charged with a crime, let alone indicted or convicted. And yet, look at what has happened to them. They’ve been essentially removed from the internet, not just through a denial of service attacks that are very sophisticated, but through political pressure applied to numerous countries. Their funds have been frozen, including funds donated by people around the world for his—for Julian Assange’s defense fund and for WikiLeaks’s defense fund. They’ve had their access to all kinds of accounts cut off. Leading politicians and media figures have called for their assassination, their murder, to be labeled a terrorist organization. What’s really going on here is a war over control of the internet and whether or not the internet can actually serve what a lot of people hoped its ultimate purpose was, which was to allow citizens to band together and democratize the checks on the world’s most powerful factions. That’s what this really is about. It’s why you see Western government, totally lawlessly, waging what can only be described as a war on WikiLeaks and Julian Assange outside the bounds of any constraints, because that’s what really is at stake here. If they want to prosecute them, they should go to court and do it through legal means. But this extralegal persecution ought to be very alarming to every citizen in every one of these countries, because it essentially is pure authoritarianism and is designed to prevent the internet from being used as its ultimate promise, which is providing a check on unconstrained political power.

AMY GOODMAN: Glenn Greenwald, I want to thank you very much for being with us, constitutional lawyer and blogger at Salon.com. He’s speaking to us from Brazil. We’re in Cancún covering the U.N. climate change talks. And we’re going to go to that after break. This is Democracy Now!, democracynow.org, The War and Peace Report. You can go to our website at [democracynow.org] to see all our interviews with Julian Assange, as well as with Daniel Ellsberg, perhaps the premier whistleblower in the United States.

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JOHN PILGER CALLS ON AUSTRALIANS TO DEFEND WIKILEAKS EDITOR JULIAN ASSANGE
[These audios are from Australia and may be very slow in downloading at times.]

In two ABC Radio Australia interviews, John Pilger asks Australians to break their silence and rally round compatriot Julian Assange, the editor-in-chief of Wikileaks. John Pilger's new film, 'The War You Don't See', due to be released in Australia in 2011, will feature an interview with Queensland born Assange.

First interview - Breakfast (3 Dec)


John Pilger in second interview:
"I think we have got to the stage where we have been deceived on such a scale about how wars begin, how governments deal with each other, ah, that in democratic societies we have a right to know, without that right to know we have no democracy-- that is basic. . . . . Jefferson said Information is the currency of democracy, and without it we don't have any. . . ."
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Billy Bragg and Wilco-- "The Unwelcome Guest"
By Woodie Guthrie


Monday, December 6, 2010

The Fed's Backdoor Bailout: Even More Welfare for Big Banks and Large Corporations--Plus, Obama Caves to Republican Blackmail on Tax Cuts for the Rich

[Heavily Edited in the Evening of 12/6/10]

IN THIS ISSUE:

- The Fed's Backdoor Bailout
- Video: Sen. Bernie Sanders' Floor Speech on the Economy
- GRIST TV Videos on Bailout and Republican Blackmail Using the Unemployed
- Note from Yours Truly & Warren Buffett
- Krugman Advises Obama to Just Say No to Blackmail
- Obama Announces He's Willing to Cave to Republican Blackmail
- Other Notes from Sen. Bernie Sanders, including "Socialism for the Rich"

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The Fed's Backdoor Bailout

In the article below, Sen. Bernie Sanders (Vermont) writes how Fed Chairman Bernanke refused to tell the Senate Budget Committee the details of a $3.3 trillion "backdoor bailout" provided by the Fed to big banks and corporations, a bailout that dwarfed the $700 billion TARP bailout initiated by the Bush administration. Now, 18 months later, the Fed has released some of the information, and a few of those details are shared by Sen Sanders in the article.
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A Real Jaw Dropper at the Federal Reserve

by Sen. Bernie Sanders

At a Senate Budget Committee hearing in 2009, I asked Fed Chairman Ben Bernanke to tell the American people the names of the financial institutions that received an unprecedented backdoor bailout from the Federal Reserve, how much they received, and the exact terms of this assistance. He refused. A year and a half later, as a result of an amendment that I was able to include in the Wall Street reform bill, we have begun to lift the veil of secrecy at the Fed, and the American people now have this information.

It is unfortunate that it took this long, and it is a shame that the biggest banks in America and Mr. Bernanke fought to keep this secret from the American public every step of the way. But, the details on this bailout are now on the Federal Reserve's website, and this is a major victory for the American taxpayer and for transparency in government.

Importantly, my amendment also required the Government Accountability Office to conduct a top-to-bottom audit of all of the emergency lending the Fed provided during the financial crisis to be completed on July 21, 2011, which will take a hard look at all of the potential conflicts of interest that took place with respect to this bailout. So, in many respects, details that the Fed was forced to divulge on Wednesday about the $3.3 trillion in emergency loans that until now were totally kept from public scrutiny, marked the beginning, not the end, of lifting the veil of secrecy at the Fed.

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. As a result of this disclosure, other members of Congress and I will be taking a very extensive look at all aspects of how the Federal Reserve functions and how we can make our financial institutions more responsive to the needs of ordinary Americans and small businesses.

What have we learned so far from the disclosure of more than 21,000 transactions? 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.

Deutsche Bank, a German lender, sold the Fed more than $290 billion worth of mortgage securities. Credit Suisse, a Swiss bank, sold the Fed more than $287 billion in mortgage bonds.
. . . .

At a time when Wall Street executives are now making more money than before the financial crisis, how many big banks that paid back TARP funds in 2009 to avoid limits on executive compensation received no-strings-attached loans from the Federal Reserve?

At a time when millions of Americans are paying outrageously high credit card interest rates, why didn't the Fed require credit card issuers to lower interest rates as a condition of the bailout?

The four largest banks in this country (Bank of America, JP Morgan Chase, Wells Fargo, and Citigroup) issue half of all mortgages in this country. We now know that these banks received hundreds of billions from the Fed. How many Americans could have remained in their homes, if the Fed required these bailed-out banks to reduce mortgage payments as a condition of receiving these secret loans?

We have begun to lift the veil of secrecy at one of most important agencies in our government. What we are seeing is the incredible power of a small number of people who have incredible conflicts of interest getting incredible help from the taxpayers of this country while ignoring the needs of the people.

Copyright © 2010 HuffingtonPost.com, Inc.
Bernie Sanders was elected to the U.S. Senate in 2006 after serving 16 years in the House of Representatives. He is the longest serving independent member of Congress in American history.

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See Also:

MUST SEE:
Bernie Snders' Nov. 30th Floor Speech on the Economy




Text of Speech.

The F Word: The Big Float's a Big Scam

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Blackmailing the Unemployed: Talking to ‘99ers’

More GRITtv
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[Note From Chris: Back in 1990, I belonged to the Peace and Freedom Party in California and attended anti-war rallies during the build-up to the first Gulf War (when Barbara Boxer was a "real Democrat") where I met a fellow named Bernie, who had retired from his successful and very profitable New York business. Bernie told me that when he was making lots of money, he didn't mind paying taxes at the high top marginal tax rates at 70% and above during the 60's and 70's for taxable income above $200,000 because he didn't really need it and it did the country some good--quite a bit of good actually. You may remember that the country was quite prosperous then by today's standards, and at that time our corporations hadn't sent much, if any, of our productive capacity overseas. We made more than cardboard boxes and speculative, risky investments back then, and the top rates were at least twice as much as today's top rates of 35%. Instead of raising those top rates, during our current time of need and historically high unemployment, in the direction of those earlier rates experienced when we were a functioning country with a partially developed conscience, the Republicans have now successfully, it seems, blackmailed Obama to keep the rates outrageously low for the rich so that the middle and lower classes can keep their needed relief, and so that the unemployed can still receive benefits to keep them in their homes with some food on the table.

Top US Marginal Income Tax Rates, 1913--2003
Historical Top Tax Rate

See Also:

Published on Monday, December 6, 2010 by The Nation
If Obama Will Not Fight for Fair Taxes and Fiscal Stability, What Will He Fight For?
by John Nichols

When Barack Obama walked out of last week's meeting with Mitch McConnell and John Boehner and started talking about developing a "productive" working relationship with Republican congressional leaders who have sworn the political equivalent of a blood oath to destroy his presidency, it was clear that the president planned to abandon his many years of advocacy for ending Bush-era tax breaks for millionaires.

Now, with the lame-duck session of a Congress still entirely controlled by Democrats races toward a earlier-than-expected conclusion, the deal is being cut.

Obama's representatives-Treasury Secretary Tim Geithner and White House budget director Jack Lew-have reportedly entered the final stages of a negotiation with the Republican team of Arizona Senator Jon Kyl and Michigan Congressman Dave Camp to extend all Bush tax cuts for for at least two years.

In return, federal unemployment benefits will be extended for up to one year.

The only remaining sticking point has to do with the question of whether to offer a small tax credit for working Americans-the "Make Work Pay" provision-and a tax credit for students, both of which were developed as part of the 2009 economic stimulus package. Remarkably, Republican negotiators who are going to the mat to defend $140 billion in tax breaks for the wealthiest 2 percent of Americans are objecting to maintaining $70 million in tax credits for the other 98 percent.

This negotiation is not headed toward a compromise. It is headed toward a complete capitulation.
. . . .

In other words, there is no political argument for compromise in order to extend unemployment benefits. Democrats could win this fight, in the current Congress and in the next one. To think otherwise is to presume that Republicans are not politicians who, when everything else is said and done, will cast the necessary votes to secure their reelection.
[More at If Obama Will Not Fight for Fair Taxes and Fiscal Stability, What Will He Fight For?]

Warren Buffett: Read My Lips, Raise My Taxes

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Warren Buffett: ‘Trickle Down’ Theory Hasn’t Worked (VIDEO)
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Published on Wednesday, October 6, 2010 by The Capital Times (Wisconsin)
There Is Class War, and Rich Are Winning
by Dave Zweifel

A University of Chicago law professor created a firestorm of controversy last month when he blogged that he and his wife are barely making ends meet with their $250,000-plus combined salaries.

The 80-year old billionaire [Warren Buffett] said [way back in 2006]: “There’s class warfare, but it’s my class, the rich class, that’s making war, and we’re winning.”

Professor Todd Henderson was protesting President Obama’s plan to let the George W. Bush tax cuts on income above $250,000 per couple expire at the end of the year while extending the cuts for everyone below that threshold.

Needless to say, the good professor didn’t get much sympathy. As well he shouldn’t.
. . . .
Yet, thanks mainly to a united Republican minority in the U.S. Senate and a handful of nervous Democrats, Congress cannot bring itself to vote on Obama’s plan that would lock in the tax cuts for a huge percentage of the people and begin tackling the budget deficit by raising taxes on the rich. Republicans claim it is important to reduce the deficit yet hypocritically oppose the Democrats’ effort to do so by letting the Bush tax cuts expire for individual incomes above $200,000 a year and couples’ earnings over $250,000.

Everyone should get their tax cuts extended, insist Republicans like Senate Minority Leader Mitch McConnell, yet they offer no plan for how they would make up the $700 billion the treasury would lose over the next 10 years if the cuts for the upper echelon are allowed to continue.

Some insist that increasing taxes on the wealthy would hurt job creation in this economy, but that ignores the simple reality that the Bush cuts didn’t do a thing to help the economy the past several years. George Bush left office in 2009 with the number of working Americans essentially the same as it was when he took over in 2001 -- roughly 137 million -- and the economy in a shambles. During Bill Clinton’s eight years the tax rate on the top income bracket was increased, but millions more people went to work. By the end of his second term, the budget deficit had been essentially eliminated.

Perhaps it’s all coincidental, as many Republicans argue, but there is not any more proof that the GOP’s formula of lower taxes on the wealthy creates more jobs and spurs the economy than there is for the Democratic formula seeking to have the wealthy pay progressively more.

Besides, the rich should pay more because they get more from the government. All those Wall Street and S&L bailouts, the funding of regulatory agencies, and the public school training of workers aren’t services used by the middle and lower classes. There are some studies that have estimated that the tax breaks and services that benefit the wealthy add up to $400 billion a year, compared to the $116 billion spent on programs for the poor.

Class warfare?

One of the richest Americans, Warren Buffett, replies to that notion:

“There’s class warfare, but it’s my class, the rich class, that’s making war, and we’re winning.”
. . . .
© 2010 The Capital Times]


Krugman Advises Obama to Just Say No to Blackmail

New York Times, December 5, 2010
Let’s Not Make a Deal
By PAUL KRUGMAN

Back in 2001, former President George W. Bush pulled a fast one. He wanted to enact an irresponsible tax cut, largely for the benefit of the wealthiest Americans. But there were Senate rules in place designed to prevent that kind of irresponsibility. So Mr. Bush evaded the rules by making the tax cut temporary, with the whole thing scheduled to expire on the last day of 2010.

The plan, of course, was to come back later and make the thing permanent, never mind the impact on the deficit. But that never happened. And so here we are, with 2010 almost over and nothing resolved.

Democrats have tried to push a compromise: let tax cuts for the wealthy expire, but extend tax cuts for the middle class. Republicans, however, are having none of it. They have been filibustering Democratic attempts to separate tax cuts that mainly benefit a tiny group of wealthy Americans from those that mainly help the middle class. It’s all or nothing, they say: all the Bush tax cuts must be extended. What should Democrats do?

The answer is that they should just say no. If G.O.P. intransigence means that taxes rise at the end of this month, so be it.

Think about the logic of the situation. Right now, the Republicans see themselves as successful blackmailers, holding a clear upper hand. President Obama, they believe, wouldn’t dare preside over a broad tax increase while the economy is depressed. And they therefore believe that he will give in to their demands.

But while raising taxes when unemployment is high is a bad thing, there are worse things. And a cold, hard look at the consequences of giving in to the G.O.P. now suggests that saying no, and letting the Bush tax cuts expire on schedule, is the lesser of two evils.

Bear in mind that Republicans want to make those tax cuts permanent. They might agree to a two- or three-year extension — but only because they believe that this would set up the conditions for a permanent extension later. And they may well be right: if tax-cut blackmail works now, why shouldn’t it work again later?

America, however, cannot afford to make those cuts permanent. We’re talking about almost $4 trillion in lost revenue just over the next decade; over the next 75 years, the revenue loss would be more than three times the entire projected Social Security shortfall. So giving in to Republican demands would mean risking a major fiscal crisis — a crisis that could be resolved only by making savage cuts in federal spending.

And we’re not talking about government programs nobody cares about: the only way to cut spending enough to pay for the Bush tax cuts in the long run would be to dismantle large parts of Social Security and Medicare.

So the potential cost of giving in to Republican demands is high. What about the costs of letting the tax cuts expire? To be sure, letting taxes rise in a depressed economy would do damage — but not as much as many people seem to think.

A few months ago, the Congressional Budget Office released a report on the impact of various tax options. A two-year extension of the Bush tax cuts, it estimated, would lower the unemployment rate next year by between 0.1 and 0.3 percentage points compared with what it would be if the tax cuts were allowed to expire; the effect would be about twice as large in 2012. Those are significant numbers, but not huge — certainly not enough to justify the apocalyptic rhetoric one often hears about what will happen if the tax cuts are allowed to end on schedule.

Oh, and what about confidence? I’ve been skeptical about claims that budget deficits hurt the economy even in the short run, because they undermine confidence in the government’s long-run solvency. Advanced countries, I’ve argued, have a lot of fiscal leeway. But anything that makes permanent extension of obviously irresponsible tax cuts more likely also sends a strong signal to investors: it says, “Hey, we aren’t really an advanced country; we’re a banana republic!” And that can’t be good for the economy.

Last but not least: if Democrats give in to the blackmailers now, they’ll just face more demands in the future. As long as Republicans believe that Mr. Obama will do anything to avoid short-term pain, they’ll have every incentive to keep taking hostages. If the president will endanger America’s fiscal future to avoid a tax increase, what will he give to avoid a government shutdown?

So Mr. Obama should draw a line in the sand, right here, right now. If Republicans hold out, and taxes go up, he should tell the nation the truth, and denounce the blackmail attempt for what it is.

Yes, letting taxes go up would be politically risky. But giving in would be risky, too — especially for a president whom voters are starting to write off as a man too timid to take a stand. Now is the time for him to prove them wrong.

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But Obama Announces He's Willing to Cave to Republican Blackmail

The payroll tax cut would put about $120 billion back in the pockets of workers and the unemployment benefits would cost about $60 billion, officials said. Continuing the lowered tax rates for the highest-earners, by contrast, would cost the government $700 billion in lost revenue over the next 10 years, according to budget analysts.


New York Times
December 6, 2010
Pact on Bush Tax Cuts Trims Payroll Levy
By JACKIE CALMES and and DAVID M. HERSZENHORN

WASHINGTON - President Obama said Monday that he had agreed to the main elements of a deal with Congressional Republicans to extend the Bush-era tax cuts at all income levels for two years as part of a package that would also extend jobless aid for long-term unemployed, cut payroll taxes for all workers for a year and take other steps to bolster the economy.

Speaking to reporters at the White House, Mr. Obama said there were elements of the framework that he did not like, but that he had agreed to it in order to avoid having taxes go up on middle class Americans at the end of the year. He said that in return for agreeing to Republican demands that income tax rates not go up on upper-income brackets, he had secured substantial assistance to lower and middle income workers as well as the unemployed.

“It’s not perfect, but this compromise is an essential step on the road to recovery,” Mr. Obama said. “ It will stop middle-class taxes from going up. It will spur our private sector to create millions of new jobs, and add momentum that our economy badly needs.”

Congressional Democrats gave the announcement a lukewarm reception. But it generally won praise from Republicans, and suggested that how the White House and the newly empowered Republicans on Capitol Hill might work together.

Some details remain to be worked out, and Mr. Obama could have trouble bringing his party along with him. The package would cost about $900 billion over the next two years, all to be financed by adding to the budget deficit.

It includes reducing the 6.2 percent Social Security payroll tax on employees by two percentage points for a year, putting more money in the paychecks of workers. That tax cut would replace the central tax break for middle and low-income Americans included in last year’s economic stimulus measure, White House officials said.

It also includes continuation of a college-tuition tax credit for some families, an expansion of the earned income tax credit and a provision to allow businesses to write off the cost of certain equipment purchases.

The deal would include a 13-month extension of jobless aid for the long-term unemployed. Benefits have already started to run out for some people, and as many as 7 million people would potentially lose assistance within the next year, administration officials said.

The White House was also said to have agreed to Republican demands on the estate tax that would result in an exemption of $5 million per person and a maximum rate of 35 percent. Some Democratic aides said that concession alone was reason enough for Democratic lawmakers to oppose the deal when it comes up for votes in the House and Senate.

Administration officials sought to cast the deal in a positive light, saying many of the new provisions would do more to accelerate the economic recovery than the tax cuts at high income levels.

But Congressional Democrats have expressed increasing anger that the payroll tax cut and the jobless aide, which Mr. Obama demanded in exchange for continuing the Bush-era tax rates for the highest-income Americans, were not enough in return for such a big concession.

The payroll tax cut would put about $120 billion back in the pockets of workers and the unemployment benefits would cost about $60 billion, officials said. Continuing the lowered tax rates for the highest-earners, by contrast, would cost the government $700 billion in lost revenue over the next 10 years, according to budget analysts.

Some Democrats expressed wariness about the emerging deal. But it was clear that Republicans were happier with the results.

“Nothing has been finalized yet,” Senator John Barasso, Republican of Wyoming said in a television interview. Still he said, “I am encouraging Democrats to get on board.” He added, “They good news is it doesn’t raise taxes on anyone in this country.”

Democratic Congressional leaders were non-commital. An aide to the House speaker, Nancy Pelosi of California, said that she would meet with rank-and-file lawmakers to discuss the plan. And a spokesman for the Senate majority leader, Harry Reid of Nevada, said similarly that Mr. Reid would discuss the proposal at a lunch meeting with his colleagues on Tuesday, pointedly referring to the plan as Mr. Obama’s.

Representative Dave Camp, Republican of Michigan and the soon-to-be chairman of the tax-writing Ways and Means Committee, issued a statement praising the tentative deal.

"Preventing a massive, job-killing tax increase on families and small businesses is my number one priority," Mr. Camp said. "This framework will allow us to extend all current tax rates and give economic recovery and job creation a chance. The failure to reach and pass an agreement preventing a tax hike would have been devastating for families, especially those who are still looking for work."

Among the provisions in the package sure to get intense scrutiny is the temporary payroll tax cut. Under current law, workers in 2011 would pay 6.2 percent in Social Security payroll tax on income up to $106,800, or a maximum of $6,621.60. For a family earning $50,000, the two percentage point cut would mean a savings of $1,000.

For workers paying the maximum, the two percentage point cut would mean a savings of $2,136.

Critics of the proposal said it would undermine the stability of Social Security, which is financed by the payroll tax. Legally, the government wouldbe obligated to continue paying the same benefits levels and would have to make up the short fall from general revenues or borrowing.


See Also: Obama announces compromise on extending tax cuts
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"Socialism for the Rich"

A letter from Sanders to Fed Chairman Ben Bernanke questioning those and other transactions

G.E. and JP Morgan Got Lots of Fed Help in '08
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Billy Bragg and Wilco-- "The Unwelcome Guest"
By Woodie Guthrie


Sunday, December 5, 2010

On WikiLeaks--An Article Whose Truths Cannot Be Denied

Excerpt From Article Below:

I want to believe that the Wikileaks documents will change America for the better. But what undoubtedly will happen is a repetition of the past: those who expose government crimes and cover-ups will be prosecuted or branded as criminals; new laws will be passed to silence dissent; new Liebermans will arise to intimidate the corporate-controlled media; and new ways will be found to conceal the truth.

What Wikileaks has done is make people understand why so many Americans are politically apathetic and content to lose themselves in one or more of the addictions American culture offers, be it drugs, alcohol, the Internet, video games, celebrity gossip, text-messaging-in essence anything that serves to divert attention from the harshness of reality.

After all, the evils committed by those in power can be suffocating, and the sense of powerlessness that erupts from being aware of these evils can be paralyzing, especially when accentuated by the knowledge that government evildoers almost always get away with their crimes. The prevalence of such evils can shatter faith in goodness and sometimes even in God. They can transform virtues like honesty, compassion, and hope into vices and make those who cling to them suffer in poverty, depression and sorrow.

So shame on Barack Obama, Eric Holder, and all those who spew platitudes about integrity, justice and accountability while allowing war criminals and torturers to walk freely upon the earth. And shame on Germany and Spain, and all those other guilty countries, for allowing their sense of justice to be distorted by a nation that doesn't seem to know the meaning of the word.

And damn the right-wing outrage over the Wikileaks revelations. It is the American people who should be outraged that its government has transformed a nation with a reputation for freedom, justice, tolerance and respect for human rights into a backwater that revels in its criminality, cover-ups, injustices and hypocrisies.

So savor the Wikileaks documents while you can, because soon they'll be gone. And for the government criminals of the world, and for those who protect them, it will again be business as usual.

Valerie Plame, YES! Wikileaks, NO!
03.12.2010
http://english.pravda.ru/opinion/columnists/03-12-2010/116041-valerie_plame_wikileaks-0/#
David R. Hoffman

In my recent article Ward Churchill: The Lie Lives On (Pravda.Ru, 11/29/2010), I discussed the following realities about America's legal "system": it is duplicitous and corrupt; it will go to any extremes to insulate from prosecution, and in many cases civil liability, persons whose crimes facilitate this duplicity and corruption; it has abdicated its responsibility to serve as a "check-and-balance" against the other two branches of government, and has instead been transformed into a weapon exploited by the wealthy, the corporations, and the politically connected to defend their criminality, conceal their corruption and promote their economic interests; and, finally, that the oft-quoted adage "Nobody is above the law" is a lie.

Some critics were quick to dismiss my article as politically motivated hyperbole. But with the recent revelations disclosed by Wikileaks, it appears that this article did not even scratch the surface, because it is now evident that Barack Obama, who entered the White House with optimistic messages of change and hope, is just as complicit in, and manipulative of, the legal "system's" duplicity and corruption as was his predecessor George W. Bush.

For example, as I stated in the aforementioned article, the Obama administration has refused to prosecute former Attorney General John Ashcroft for abusing the "material witness" statute; refused to prosecute Ashcroft's successor (and suspected perjurer) Alberto Gonzales for his role in the politically motivated firing of nine federal prosecutors; refused to prosecute Justice Department authors of the now infamous "torture memos," like John Yoo and Jay Bybee; and, more recently, refused to prosecute former CIA official Jose Rodriquez Jr. for destroying tapes that purportedly showed CIA agents torturing detainees.

Predictably, the official mantra supporting these refusals is that "exhaustive" investigations had been conducted. But now, thanks to Wikileaks, the world has been enlightened to the fact that the Obama administration not only refused to prosecute these individuals itself, it also exerted pressure on the governments of Germany and Spain not to prosecute, or even indict, any of the torturers or war criminals from the Bush dictatorship.

This revelation invariably leads to three inescapable conclusions: these so-called "exhaustive investigations" were a sham; the Obama administration never intended to prosecute such crimes and, in fact, went to inordinate lengths to cover them up; and the American government has the proven capacity to influence the legal systems of other countries.

And now, given the fact that Wikileaks founder Julian Assange is facing criminal charges in Sweden, it is also evident that America even has the Swedish government and Interpol in its hip pocket.

Of course, I do not know if Assange committed the crime he is accused of. I do know that to the American legal "system" the truth is irrelevant. The minute Assange revealed the extent of America's criminality and cover-ups to the world, he became a marked man. And America is going to do anything it can to silence him.

Already we see the treacherous Joe Lieberman, the man who almost single-handedly killed the "public option" in the health care reform bill so insurance companies can continue to enjoy record profits, intimidate an American server into discontinuing its transmission of Wikileaks.

And we see many right-wing commentators demanding that Assange be hunted down, with some even calling for his murder, on the grounds that he may have endangered lives by releasing confidential government documents.

Yet, for the right-wing, this apparently was not a concern when the late columnist Robert Novak "outed" CIA agent Valerie Plame after her husband Joseph Wilson authored an OP-ED piece in The New York Times criticizing the motivations for waging war against Iraq. Even though there was evidence of involvement within the highest echelons of the Bush dictatorship, only one person, Lewis "Scooter" Libby, was indicted and convicted of "outing" Plame to Novak. And, despite the fact that this "outing" potentially endangered the lives of Plame's overseas contacts, Bush commuted Libby's thirty-month prison sentence, calling it "excessive."

Why the disparity? The answer is simple: The Plame "outing" served the interests of the military-industrial complex and helped to conceal the Bush dictatorship's lies, tortures and war crimes, while Wikileaks not only exposed such evils, but also revealed how Obama's administration, and Obama himself, are little more than "snake oil" merchants pontificating about government accountability while undermining it at every turn.

Of course, I realize that analogizing the Plame case to Wikileaks is imperfect, and I certainly do not support the release of documents that could endanger any lives. But it should be remembered that threats to murder Assange are just as reprehensible. In addition, they may serve to dissuade future whistleblowers from raising legitimate concerns about government corruption and criminality.

And I should also note that while I avidly support the prosecution of those who lied, tortured and committed war crimes during the Bush dictatorship, I certainly do not, unlike some critics of Assange, advocate or support any violence against them, or against any human being, regardless of his or her politics.

Now there is talk of charging Assange under America's so-called "espionage" statutes. But American history has shown how these statutes have been incessantly used to conceal government criminality.

When the United States Constitution was being created, a conflict emerged between delegates who wanted a strong federal government (the Federalists) and those who wanted a weak federal government (the anti-Federalists).

Although the Federalists won the day, one of the most distinguished anti-Federalists, George Mason, refused to sign the new Constitution, sacrificing in the process, some historians say, a revered place amongst America's founding fathers.

Two of Mason's concerns were that the Constitution did not contain a Bill of Rights, and that the presidential pardon powers would allow corrupt presidents to pardon people who had committed crimes on presidential orders.

Mason's concerns about the abuse of the pardon powers were eventually proven right when Gerald Ford pardoned Richard Nixon, when Ronald Reagan pardoned FBI agents convicted of authorizing illegal break-ins, and when George H.W. Bush pardoned six individuals involved in the Iran-Contra Affair.

Mason was also proven right after the Federalists realized that the States would not ratify the Constitution unless a Bill of Rights was added. But this was done begrudgingly, as demonstrated by America's second president, Federalist John Adams, who essentially destroyed the right to freedom of speech via the Alien and Sedition Acts, which made it a crime to say, write or publish anything critical of the United States government.

Years later, Adams' precedent would resurface during the presidency of Woodrow Wilson, this time via the Espionage and Sedition Acts. Although these laws were designed to prohibit criticism of America's involvement in World War One, mainstream religious leaders who criticized the war were rarely prosecuted, but persons and political organizations considered to be "radical," like Socialist leader Eugene Debs and members of the Industrial Workers of the World labor union (IWW), were imprisoned and their organizations decimated.

The McCarthy era of the 1950s brought forth the full power of the Smith Act, which was allegedly created to punish communists who advocated the violent overthrow of the United States government, but was ultimately used to blacklist and, in many cases, economically destroy members of the political left.

During the 1960s and 70s, after the courts diluted much of the power of the Sedition laws, government tactics used to "neutralize" persons and political organizations became more covert. Some, like actress Jean Seberg, had false rumors circulated about them in an attempt to destroy their careers. (Seberg ultimately committed suicide as a result of one of these rumors). Others, like Elmer "Geronimo" Pratt, were framed and imprisoned for crimes they did not commit. And still others, like Chicago Black Panther leaders Fred Hampton and Mark Clark, were murdered outright.

The ironic thing about these so-called "espionage" acts is that they actually invert the concepts of crime and punishment. Most criminals break laws that others have created, and people who assist in exposing or apprehending them are usually lauded as heroes. But with the "espionage" acts, the criminals themselves have actually created laws to conceal their crimes, and exploit these laws to penalize people who expose them.

The problem with America's system of government is that it has become too easy, and too convenient, to simply stamp "classified" on documents that reveal acts of government corruption, cover-up, mendacity and malfeasance, or to withhold them "in the interest of national security." Given this web of secrecy, is it any wonder why so many Americans are still skeptical about the "official" versions of the John F. Kennedy or Martin Luther King Jr. assassinations, or the events surrounding the attacks of September 11, 2001?

In the past, whenever I wrote about the evils of the Bush dictatorship, I often quoted a question folk singer Phil Ochs rhetorically asked during a 1968 concert in Vancouver, Canada: "What can you do when you're a helpless soul, a helpless piece of flesh, amid all this cruel, cruel machinery and terrible, heartless men?"

Ochs subsequently committed suicide in 1976, and while I am uncertain that this was the correct path to take, I can certainly understand his frustration. Although the election of Barack Obama gave rise to the "outrage" expressed by the so-called "tea party" movement, if there is any political group in America that has a right to be outraged, it is the Progressives. They bought into Obama's message of change and hope, believed that the criminals of the Bush dictatorship would have to answer for their crimes, and naively dreamed that America's respect for peace, justice and human rights would be restored.

But, as Wikileaks and the antics of Obama's "Justice" Department have shown, the Progressives were deceived. Yet, as in the past, they are forced to be supportive of Obama's duplicity because the alternative is worse.

I want to believe that the Wikileaks documents will change America for the better. But what undoubtedly will happen is a repetition of the past: those who expose government crimes and cover-ups will be prosecuted or branded as criminals; new laws will be passed to silence dissent; new Liebermans will arise to intimidate the corporate-controlled media; and new ways will be found to conceal the truth.

What Wikileaks has done is make people understand why so many Americans are politically apathetic and content to lose themselves in one or more of the addictions American culture offers, be it drugs, alcohol, the Internet, video games, celebrity gossip, text-messaging-in essence anything that serves to divert attention from the harshness of reality.

After all, the evils committed by those in power can be suffocating, and the sense of powerlessness that erupts from being aware of these evils can be paralyzing, especially when accentuated by the knowledge that government evildoers almost always get away with their crimes. The prevalence of such evils can shatter faith in goodness and sometimes even in God. They can transform virtues like honesty, compassion, and hope into vices and make those who cling to them suffer in poverty, depression and sorrow.

So shame on Barack Obama, Eric Holder, and all those who spew platitudes about integrity, justice and accountability while allowing war criminals and torturers to walk freely upon the earth. And shame on Germany and Spain, and all those other guilty countries, for allowing their sense of justice to be distorted by a nation that doesn't seem to know the meaning of the word.

And damn the right-wing outrage over the Wikileaks revelations. It is the American people who should be outraged that its government has transformed a nation with a reputation for freedom, justice, tolerance and respect for human rights into a backwater that revels in its criminality, cover-ups, injustices and hypocrisies.

So savor the Wikileaks documents while you can, because soon they'll be gone. And for the government criminals of the world, and for those who protect them, it will again be business as usual.

David R. Hoffman
Legal Editor of Pravda.Ru