Showing posts with label Taibbi. Show all posts
Showing posts with label Taibbi. Show all posts

Tuesday, June 29, 2010

Articles Concerning the State of American Mainstream Journalism and Potential War With Iran

In This Edition:

- Two Articles Concerning the State of American Mainstream Journalism

- Two Views About Potential War on Iran

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Articles Concerning the State of American Mainstream Journalism
[This article and the next refer to, among other things, a Rolling Stone article by Michael Hastings, about now ex-Afghanistan commander General McChrystal, titled "The Runaway General" - Chris
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Lara Logan, You Suck
June 28, 2010 4:45 P.M. EDT | By Matt Taibbi
http://www.rollingstone.com/politics/matt-taibbi/blogs/TaibbiData_May2010/122137/83512

Lara Logan, come on down! You're the next guest on Hysterical Backstabbing Jealous Hackfest 2010!


I thought I'd seen everything when I read David Brooks saying out loud in a New York Times column that reporters should sit on damaging comments to save their sources from their own idiocy. But now we get CBS News Chief Foreign Correspondent Lara Logan slamming our own Michael Hastings on CNN's "Reliable Sources" program, agreeing that the Rolling Stone reporter violated an "unspoken agreement" that journalists are not supposed to "embarrass [the troops] by reporting insults and banter."

Anyone who wants to know why network television news hasn't mattered since the seventies just needs to check out this appearance by Logan. Here's CBS's chief foreign correspondent saying out loud on TV that when the man running a war that's killing thousands of young men and women every year steps on his own dick in front of a journalist, that journalist is supposed to eat the story so as not to embarrass the flag. And the part that really gets me is Logan bitching about how Hastings was dishonest to use human warmth and charm to build up enough of a rapport with his sources that they felt comfortable running their mouths off in front of him. According to Logan, that's sneaky — and journalists aren't supposed to be sneaky:

"What I find is the most telling thing about what Michael Hastings said in your interview is that he talked about his manner as pretending to build an illusion of trust and, you know, he's laid out there what his game is… That is exactly the kind of damaging type of attitude that makes it difficult for reporters who are genuine about what they do, who don't — I don't go around in my personal life pretending to be one thing and then being something else. I mean, I find it egregious that anyone would do that in their professional life."


When I first heard her say that, I thought to myself, "That has to be a joke. It's sarcasm, right?" But then I went back and replayed the clip – no sarcasm! She meant it! If I'm hearing Logan correctly, what Hastings is supposed to have done in that situation is interrupt these drunken assholes and say, "Excuse me, fellas, I know we're all having fun and all, but you're saying things that may not be in your best interest! As a reporter, it is my duty to inform you that you may end up looking like insubordinate douche bags in front of two million Rolling Stone readers if you don't shut your mouths this very instant!" I mean, where did Logan go to journalism school – the Burson-Marsteller agency?

But Logan goes even further that that. See, according to Logan, not only are reporters not supposed to disclose their agendas to sources at all times, but in the case of covering the military, one isn't even supposed to have an agenda that might upset the brass! Why? Because there is an "element of trust" that you're supposed to have when you hang around the likes of a McChrystal. You cover a war commander, he's got to be able to trust that you're not going to embarrass him. Otherwise, how can he possibly feel confident that the right message will get out?

True, the Pentagon does have perhaps the single largest public relations apparatus on earth – spending $4.7 billion on P.R. in 2009 alone and employing 27,000 people, a staff nearly as large as the 30,000-person State Department – but is that really enough to ensure positive coverage in a society with armed with a constitutionally-guaranteed free press?

And true, most of the major TV outlets are completely in the bag for the Pentagon, with two of them (NBC/GE and Logan's own CBS, until recently owned by Westinghouse, one of the world's largest nuclear weapons manufacturers) having operated for years as leaders in both the broadcast media and weapons-making businesses.

But is that enough to guarantee a level playing field? Can a general really feel safe that Americans will get the right message when the only tools he has at his disposal are a $5 billion P.R. budget and the near-total acquiescence of all the major media companies, some of whom happen to be the Pentagon's biggest contractors?

Does the fact that the country is basically barred from seeing dead bodies on TV, or the fact that an embedded reporter in a war zone literally cannot take a shit without a military attaché at his side (I'm not joking: while embedded at Camp Liberty in Iraq, I had to be escorted from my bunk to the latrine) really provide the working general with the security and peace of mind he needs to do his job effectively?

Apparently not, according to Lara Logan. Apparently in addition to all of this, reporters must also help out these poor public relations underdogs in the Pentagon by adhering to an "unspoken agreement" not to embarrass the brass, should they tilt back a few and jam their feet into their own mouths in front of a reporter holding a microphone in front of their faces.

Then there's the part that made me really furious: Logan hinting that Hastings lied about the damaging material being on the record:


"Michael Hastings, if you believe him, says that there were no ground rules laid out. And, I mean, that just doesn't really make a lot of sense to me… I mean, I know these people. They never let their guard down like that. To me, something doesn't add up here. I just — I don't believe it."


I think the real meaning of that above quote is made clear in conjunction with this one:

"There are very good beat reporters who have been covering these wars for years, year after year. Michael Hastings appeared in Baghdad fairly late on the scene, and he was there for a significant period of time. He has his credentials, but he's not the only one. There are a lot of very good reporters out there. And to be fair to the military, if they believe that a piece is balanced, they will let you back."


Let me just say one thing quickly: I don't know Michael Hastings. I've never met him and he's not a friend of mine. If he cut me off in a line in an airport, I'd probably claw his eyes out like I would with anyone else. And if you think I'm being loyal to him because he works for Rolling Stone, well – let's just say my co-workers at the Stone would laugh pretty hard at that idea.

But when I read this diatribe from Logan, I felt like I'd known Hastings my whole life. Because brother, I have been there, when some would-be "reputable" journalist who's just been severely ass-whipped by a relative no-name freelancer on an enormous story fights back by going on television and, without any evidence at all, accusing the guy who beat him of cheating. That's happened to me so often, I've come to expect it. If there's a lower form of life on the planet earth than a "reputable" journalist protecting his territory, I haven't seen it.

As to this whole "unspoken agreement" business: the reason Lara Logan thinks this is because she's like pretty much every other "reputable" journalist in this country, in that she suffers from a profound confusion about who she's supposed to be working for. I know this from my years covering presidential campaigns, where the same dynamic applies. Hey, assholes: you do not work for the people you're covering! Jesus, is this concept that fucking hard? On the campaign trail, I watch reporters nod solemnly as they hear about the hundreds of millions of dollars candidates X and Y and Z collect from the likes of Citigroup and Raytheon and Archer Daniels Midland, and it blows my mind that they never seem to connect the dots and grasp where all that money is going. The answer, you idiots, is that it's buying advertising! People like George Bush, John McCain, Barack Obama, and General McChrystal for that matter, they can afford to buy their own P.R. — and they do, in ways both honest and dishonest, visible and invisible.

They don't need your help, and you're giving it to them anyway, because you just want to be part of the club so so badly. Disgustingly, that's really what it comes down to. Most of these reporters just want to be inside the ropeline so badly, they want to be able to say they had that beer with Hillary Clinton in a bowling alley in Scranton or whatever, that it colors their whole worldview. God forbid some important person think you're not playing for the right team!

Meanwhile, the people who don't have the resources to find out the truth and get it out in front of the public's eyes, your readers/viewers, you're supposed to be working for them — and they're not getting your help. What the hell are we doing in Afghanistan? Is it worth all the bloodshed and the hatred? Who are the people running this thing, what is their agenda, and is that agenda the same thing we voted for? By the severely unlikely virtue of a drunken accident we get a tiny glimpse of an answer to some of these vital questions, but instead of cheering this as a great break for our profession, a waytago moment, one so-called reputable journalist after another lines up to protest the leak and attack the reporter for doing his job. God, do you all suck!
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John Pilger: There Is a War on Journalism
June 29, 2010



Guest: John Pilger, award-winning investigative journalist and documentary filmmaker. He began his career in journalism nearly half a century ago and has written close to a dozen books and made over fifty documentaries. He lives in London but is in the United States working on a forthcoming documentary about what he calls "the war on the media." It’s called The War You Don’t See.

Related stories

Excerpts:

AMY GOODMAN: It’s been a week since Rolling Stone published its article on General Stanley McChrystal that eventually led to him being fired by President Obama. In a piece called "The Runaway General," McChrystal and his top aides openly criticized the President and mocked several top officials. Joe Biden is nicknamed "Bite me." National Security Adviser General James Jones is described as a "clown." Ambassador Richard Holbrooke is called a "wounded animal."


Since the article came out, Rolling Stone and the reporter who broke the story, Michael Hastings, have come under attack in the mainstream media for violating the so-called "ground rules" of journalism. New York Times columnist David Brooks penned a column attacking Hastings for being a, quote, "product of the culture of exposure." Brooks wrote, quote, "The reporter essentially took run-of-the-mill complaining and turned it into a direct challenge to presidential authority." He goes on to write, "The exposure ethos, with its relentless emphasis on destroying privacy and exposing impurities, has chased good people from public life, undermined public faith in institutions and elevated the trivial over the important," he said.


On Fox News, Geraldo Rivera attacked Rolling Stone reporter Michael Hastings for publishing quotes McChrystal and his aides made at a bar.


GERALDO RIVERA: "This is a situation where you have to put it in the context of war and warriors and honor and the penumbra of privacy that is presumed when it’s not on the record specifically. When you’re hanging out at a bar waiting for a plane or a train or an automobile and you’re stuck together hours and hours, and you’re drinking in a bar, or you’re at an airport lounge, this is not an interview context. These guys, particularly the staffers who gave the most damning statements about the civilians in office, including the Vice President of the United States, these guys had no idea that they were being interviewed by this guy."


BILL O’REILLY: "I’m not sure about that, Geraldo."


GERALDO RIVERA: This reporter—wait, hold on, Bill.


BILL O’REILLY: "I’m not sure about that."


GERALDO RIVERA: "This reporter from Rolling Stone, he was a rat in an eagle’s nest."

AMY GOODMAN: So, that’s Fox News. But other mainstream media outlets have also attacked Michael Hastings for writing the story. This is Lara Logan, the chief foreign affairs correspondent for CBS News, being interviewed by Howard Kurtz on CNN.

HOWARD KURTZ: "If you had been traveling with General McChrystal and heard these comments about Barack Obama, Joe Biden, Jim Jones, Richard Holbrooke, would you have reported them?"

LARA LOGAN: "Well, it really depends on the circumstances. It’s hard to know here. Michael Hastings, if you believe him, says that there were no ground rules laid out. And, I mean, that just doesn’t really make a lot of sense to me, because if you look at the people around General McChrystal, if you look at his history, he was the Joint Special Operations commander. He has a history of not interacting with the media at all. And his chief of intelligence, Mike Flynn, is the same. I mean, I know these people. They never let their guard down like that. To me, something doesn’t add up here. I just—I don’t believe it."

HOWARD KURTZ: Washington Post quoted an unnamed senior military official as saying that Michael Hastings broke the off-the-record ground rules. But the person who said this was on background and wouldn’t allow his name to be used. Is that fair?


LARA LOGAN: Well, it’s Kryptonite right now. I mean, do you blame him? The commanding general in Afghanistan just lost his job. Who else is going to lose his job? Believe me, all the senior leadership in Afghanistan are waiting for the ax to fall. I’ve been speaking to some of them. They don’t know who’s going to stay and who’s going to go. I mean, just the question is, really, is what General McChrystal and his aides are doing so egregious that they deserved to—I mean, to end a career like McChrystal’s? I mean, Michael Hastings has never served his country the way McChrystal has.

AMY GOODMAN: That’s Lara Logan, the chief foreign affairs correspondent for CBS News, being interviewed on CNN. Meanwhile, both the Washington Post and ABC have published articles quoting anonymous military sources attacking Hastings’s Rolling Stone article.


For more on the story, we’re joined by the award-winning investigative journalist, documentary filmmaker John Pilger, began his career in journalism, oh, nearly half a century ago and has written close to a dozen books and made over fifty documentaries. He lives in London but is in the United States working on a forthcoming documentary about what he calls "the war on the media." It’s called The War You Don’t See.

We welcome John Pilger to Democracy Now! John, welcome. Talk about the war you don’t see.

JOHN PILGER: Well, the war you don’t see is expressed eloquently by the New York Times, that range of extraordinary media apologists that we’ve just seen. The reason we don’t see the war on civilians, the war that has caused the most extraordinary devastation, human and cultural and structural devastation in both Iraq and Afghanistan, is because of what is almost laughingly called the mainstream media. The one apology, not these apologies that we’ve seen this morning from Fox to CBS, right across the spectrum, to the New York Times this morning, the real apology that counted was the New York Times when it apologized to its readers for not showing us the war in—or the reasons that led up, rather, to the invasion of Iraq that produced this horrific war. I mean, these people now have become so embedded with the establishment, so embedded with authority, they’re what Brecht called the spokesmen of the spokesmen. They’re not journalists.

Brooks writes about a "culture of exposure." Excuse me, isn’t that journalism? Are we so distant from what journalism ought to be, not simply an echo chamber for authority, that somebody in the New York Times can attack a journalist who’s done his job? Hastings did a wonderful job. He caught out McChrystal, as he should have done. That’s his job. In a country where the media is constitutionally freer, nominally, than any other country on earth, the disgrace of the recent carnage in the Middle East and in Afghanistan is largely down to the fact that the media didn’t alert us. It didn’t report it. It didn’t question. It simply amplified and echoed authority. Hastings has proved—God bless him—that journalists still exist.

AMY GOODMAN: You know, it’s interesting to read the first paragraph of Hastings’s piece. He talks about, yes, this group in a French bar—and, by the way, Rolling Stone said, you should see what we didn’t print, because in fact there were things they said that were off the record. But to say that Hastings violated the off-the-record rule, they said, was not the case. There was many things we didn’t print. But right after they talked about the French—he talked about the French bar and McChrystal and his high officials in the bar, his aides, you know, dancing and singing the words "Afghanistan, Afghanistan," Hastings writes, "opposition to the war has already toppled the Dutch government, forced the resignation of Germany’s president [and] sparked both Canada and the Netherlands to announce the withdrawal of their 4,500 troops. McChrystal is in Paris to keep the French, who have lost more than 40 soldiers in Afghanistan, from going all wobbly on him." But this is something most people in this country don’t know, that the US, despite the US-led coalition, the NATO troops, is very much almost going this alone.

JOHN PILGER: Yes, it’s going it alone in terms of the American people. And what journalism, like Hastings, does is represent the American people. A majority of the American people are now opposed to this colonial debacle in Afghanistan. I mean, I was very interested to read what President Obama said about Afghanistan, if I can find it. Yes, here it is. On February the 10th, 2007, quote, "It’s time to admit that no amount of American lives can resolve the political disagreement [that lies] at the heart of someone else’s civil war," unquote. That’s what President Obama said before he became president. And unless the people of the United States, like the people of Europe, like most peoples in the world, understand that, that this is a long-running civil war, that it needs the kind of sympathy, if you like, for the people of Afghanistan—it certainly doesn’t need this brutal imposition of a colonial force there.

Now, that happens to be a truth that the likes of Michael Hastings and others are expressing. But it’s also a forbidden truth. And the moment you even glimpse that truth in the United States, the kind of barrage that—the grotesque sort of cartoon barrage of Fox, right up to the rather sneering barrage that comes from the New York Times, through to CBS and so on, the barrage against truth tellers becomes—Amy, we’re dependent now on the few Hastings, but also on whistleblowers. The most important exposé was the Wikileaks exposé of the Apache attack on those journalists and children in Iraq. And here they are prosecuting the whistleblower, when in fact those responsible should be prosecuted. But that’s verboten now.

AMY GOODMAN: . . . . I wanted to go back to this comment of the CBS correspondent, of Lara Logan, who says, "Michael Hastings has never served his country the way McChrystal has." This is the reporter. You say that the media is not covering the war; it’s promoting the war.

JOHN PILGER: Michael Hastings is serving his country. This country tells the rest of the world about its magnificent beginning, about its magnificent Constitution, about its magnificent freedoms. At the heart of those freedoms is the freedom of speech and the freedom of journalism. That is serving your country. That is serving humanity. The idea that you only serve your country by being part of a rapacious colonial force—and, you know, I’m not speaking rhetorically here. That’s what is happening in Afghanistan. This is a civil war in which European and American forces have intervened. And we get a glimpse of that through the likes of the Hastings article. I really call on journalists, young journalists, to be inspired, if you like, by this Rolling Stone article, not to be put off by the apologists, not to be put off by those who serve their country embedded in the Green Zone in Baghdad, but to see journalism as something that is about truth telling and represents people and does serve one’s country.

AMY GOODMAN: It’s interesting you say this, as up in Toronto—we just came from Toronto yesterday—well, hundreds of people and a number of journalists have been beaten and arrested—

JOHN PILGER: Yeah.

AMY GOODMAN: —as they try to cover what’s happening on the streets, the protests around the G8/G20 meetings, as they talk about protecting banks and promoting war—

JOHN PILGER: Yeah.

AMY GOODMAN: —in the summits.

JOHN PILGER: Yeah. Well, there is a war on journalism. There’s long been a war on journalism. Journalism has always been—I mean, if you read, let’s say, General Petraeus’s counterinsurgency manual, which he put his name to in 2006, he makes it very clear. He said we’re fighting wars of perception—and I paraphrase him—in which the news media is a major component. So, unless the news media is part of those wars of perception—that is, that not so much the enemy that is our objective; it’s the people at home—then, you know, they’re out. They’re part of—they can easily become part of the enemy. And as we’ve seen in the numbers of journalists who have been killed in Iraq—more journalists have been killed in Iraq, mostly Iraqi journalists, than in any other war in the modern era—there is a war on this kind of truth telling. And we’re seeing this—another form of this attack on truth telling by the likes of Fox and CBS and New York Times this morning. It embarrasses them. What Hastings has done deeply embarrasses these apologists.

AMY GOODMAN: Well, interestingly, it was Hastings himself that exposed the mainstream media. Just quoting from Glenn Greenwald at Salon.com, as Barrett Brown notes in Vanity Fair, "Hastings in 2008 did to the establishment media what he did to Gen. McChrystal—[he] exposed what they do and how they think by writing the truth—after he quit Newsweek (where he was the Baghdad correspondent) and wrote a damning exposé about how the media distorts war coverage. As Brown put it: 'Hastings ensured that he would never be trusted by the establishment media ever again.'"

JOHN PILGER: What a wonderful accolade! My goodness! That’s a tremendous honor for him to bear.

. . . .

AMY GOODMAN: Your assessment of the media’s coverage?

JOHN PILGER: Well, it’s very different. I mean, there was—I think things—I think the perception of Israel and Palestine has changed quite significantly in Europe, and there was horror at the murder of these people on the Turkish ship. And there was quick understanding, I felt, that how the Israelis manipulated the footage in order to suggest that the victims were actually assaulting those who attacked the flotilla.

The coverage here has been bathed in the usual euphemisms about Israel. It’s always put into the passive voice. Israel really—the Israeli commandos never really killed anybody; it was a tragic event in which people died, and so on and so forth.

Having said that, I must say, Amy, since I’ve been in the United States, I see a—there’s a shift that is in—both politically, but certainly in the media. Since Lebanon, since Israel’s attack on Lebanon in 2006, since the attack on Gaza, Christmas 2008 and early 2009, and now this assault on the flotilla, Israel can’t be covered up. It can’t be apologized for as effectively anymore. And even in the New York Times, which has always been a stalwart in supporting the Israeli regime, the language is changing. And I think this again reflects a popular understanding and a popular disenchantment with the Middle East and the United States role in the Middle East, the apologies for one atrocity after the other, the lack of justice for the people in Palestine. So, I don’t know whether I’m being optimistic or not, but there is a change. And where that change is going to, I don’t know.

AMY GOODMAN: Are there any other key stories that you feel the media is missing or distorting?

JOHN PILGER: Well, I mean, one of the key stories is the devastation, the economic devastation, in people’s lives, that it seems to me extraordinary. And this is true in Britain, as it is in the United States, that ordinary people have suffered since the collapse in September 2008 of significant parts of Wall Street, since the bubble burst. The idea that a president was elected as a man of the people—at least that’s the way he presented himself—is still, I think, promoted by the media, whereas Obama has made clear that he has very much reinforced Wall Street, he has helped to rebuild Wall Street, his whole team is from Wall Street. He’s reached into Goldman Sachs for his senior people. I think that that anger that I’ve felt in the United States over the last few years, that anger at a popular level, is still not expressed in the so-called mainstream media. I remember in the last year of George W. Bush, someone said that in one day 26,000 emails bombarded the White House, and almost all of them were hostile. That suggests to me a popular anger in this country that is often deflected into—down into cul-de-sacs, like the Tea Party movement. But the root of that anger—and that is a social injustice in people’s lives, in the repossession of houses, the loss of jobs, a rather weak reform, if it is a reform, of the scandalous healthcare arrangements, none of these—this popular disenchantment, disaffection, is not expressed in the media.

AMY GOODMAN: John Pilger, I want to thank you very much for being with us. John Pilger here in the United States doing a film, The War You Don’t See, as he covers the media’s coverage of war. He’s an award-winning investigative journalist and filmmaker. Thank you so much.
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Two Views About Potential War on Iran
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[When reading Chomsky, please realize he is writing with a blend of bitter sarcasm and irony. -Chris]

The Iranian Threat
By Noam Chomsky
Monday, June 28, 2010

The dire threat of Iran is widely recognized to be the most serious foreign policy crisis facing the Obama administration. Congress has just strengthened the sanctions against Iran, with even more severe penalties against foreign companies. The Obama administration has been rapidly expanding its offensive capacity in the African island of Diego Garcia, claimed by Britain, which had expelled the population so that the US could build the massive base it uses for attacking the Middle East and Central Asia. The Navy reports sending a submarine tender to the island to service nuclear-powered guided-missile submarines with Tomahawk missiles, which can carry nuclear warheads. Each submarine is reported to have the striking power of a typical carrier battle group. According to a US Navy cargo manifest obtained by the Sunday Herald (Glasgow), the substantial military equipment Obama has dispatched includes 387 “bunker busters” used for blasting hardened underground structures. Planning for these “massive ordnance penetrators,” the most powerful bombs in the arsenal short of nuclear weapons, was initiated in the Bush administration, but languished. On taking office, Obama immediately accelerated the plans, and they are to be deployed several years ahead of schedule, aiming specifically at Iran.

“They are gearing up totally for the destruction of Iran,” according to Dan Plesch, director of the Centre for International Studies and Diplomacy at the University of London. “US bombers and long range missiles are ready today to destroy 10,000 targets in Iran in a few hours,” he said. “The firepower of US forces has quadrupled since 2003,” accelerating under Obama.

The Arab press reports that an American fleet (with an Israeli vessel) passed through the Suez Canal on the way to the Persian Gulf, where its task is “to implement the sanctions against Iran and supervise the ships going to and from Iran.” British and Israeli media report that Saudi Arabia is providing a corridor for Israeli bombing of Iran (denied by Saudi Arabia). On his return from Afghanistan to reassure NATO allies that the US will stay the course after the replacement of General McChrystal by his superior, General Petraeus, Chairman of the Joint Chiefs of Staff Admiral Michael Mullen visited Israel to meet Israel Defense Forces Chief of Staff Gabi Ashkenazi and senior Israeli military staff along with intelligence and planning units, continuing the annual strategic dialogue between Israel and the U.S. in Tel Aviv. The meeting focused “on the preparation by both Israel and the U.S. for the possibility of a nuclear capable Iran,” according to Haaretz, which reports further that Mullen emphasized that “I always try to see challenges from Israeli perspective.” Mullen and Ashkenazi are in regular contact on a secure line.

The increasing threats of military action against Iran are of course in violation of the UN Charter, and in specific violation of Security Council resolution 1887 of September 2009 which reaffirmed the call to all states to resolve disputes related to nuclear issues peacefully, in accordance with the Charter, which bans the use or threat of force.

Some respected analysts describe the Iranian threat in apocalyptic terms. Amitai Etzioni warns that “The U.S. will have to confront Iran or give up the Middle East,” no less. If Iran’s nuclear program proceeds, he asserts, Turkey, Saudi Arabia, and other states will “move toward” the new Iranian “superpower”; in less fevered rhetoric, a regional alliance might take shape independent of the US. In the US army journal Military Review, Etzioni urges a US attack that targets not only Iran’s nuclear facilities but also its non-nuclear military assets, including infrastructure – meaning, the civilian society. "This kind of military action is akin to sanctions - causing 'pain' in order to change behaviour, albeit by much more powerful means."

Such harrowing pronouncements aside, what exactly is the Iranian threat? An authoritative answer is provided in the April 2010 study of the International Institute of Strategic Studies, Military Balance 2010. The brutal clerical regime is doubtless a threat to its own people, though it does not rank particularly high in that respect in comparison to US allies in the region. But that is not what concerns the Institute. Rather, it is concerned with the threat Iran poses to the region and the world.

The study makes it clear that the Iranian threat is not military. Iran’s military spending is “relatively low compared to the rest of the region,” and less than 2% that of the US. Iranian military doctrine is strictly “defensive,… designed to slow an invasion and force a diplomatic solution to hostilities.” Iran has only “a limited capability to project force beyond its borders.” With regard to the nuclear option, “Iran’s nuclear program and its willingness to keep open the possibility of developing nuclear weapons is a central part of its deterrent strategy.”

Though the Iranian threat is not military, that does not mean that it might be tolerable to Washington. Iranian deterrent capacity is an illegitimate exercise of sovereignty that interferes with US global designs. Specifically, it threatens US control of Middle East energy resources, a high priority of planners since World War II, which yields “substantial control of the world,” one influential figure advised (A. A. Berle).

But Iran’s threat goes beyond deterrence. It is also seeking to expand its influence. As the Institute study formulates the threat, Iran is “destabilizing” the region. US invasion and military occupation of Iran’s neighbors is “stabilization.” Iran’s efforts to extend its influence in neighboring countries is “destabilization,” hence plainly illegitimate. It should be noted that such revealing usage is routine. Thus the prominent foreign policy analyst James Chace, former editor the main establishment journal Foreign Affairs, was properly using the term “stability” in its technical sense when he explained that in order to achieve “stability” in Chile it was necessary to “destabilize” the country (by overthrowing the elected Allende government and installing the Pinochet dictatorship).

Beyond these crimes, Iran is also supporting terrorism, the study continues: by backing Hezbollah and Hamas, the major political forces in Lebanon and in Palestine – if elections matter. The Hezbollah-based coalition handily won the popular vote in Lebanon’s latest (2009) election. Hamas won the 2006 Palestinian election, compelling the US and Israel to institute the harsh and brutal siege of Gaza to punish the miscreants for voting the wrong way in a free election. These have been the only relatively free elections in the Arab world. It is normal for elite opinion to fear the threat of democracy and to act to deter it, but this is a rather striking case, particularly alongside of strong US support for the regional dictatorships, particularly striking with Obama’s strong praise for the brutal Egyptian dictator Mubarak on the way to his famous address to the Muslim world in Cairo.

The terrorist acts attributed to Hamas and Hezbollah pale in comparison to US-Israeli terrorism in the same region, but they are worth a look nevertheless.

On May 25 Lebanon celebrated its national holiday, Liberation Day, commemorating Israel’s withdrawal from southern Lebanon after 22 years, as a result of Hezbollah resistance – described by Israeli authorities as “Iranian aggression” against Israel in Israeli-occupied Lebanon (Ephraim Sneh). That too is normal imperial usage. Thus President John F. Kennedy condemned the “the assault from the inside, and which is manipulated from the North.” The assault by the South Vietnamese resistance against Kennedy’s bombers, chemical warfare, driving peasants to virtual concentration camps, and other such benign measures was denounced as “internal aggression” by Kennedy’s UN Ambassador, liberal hero Adlai Stevenson. North Vietnamese support for their countrymen in the US-occupied South is aggression, intolerable interference with Washington’s righteous mission. Kennedy advisors Arthur Schlesinger and Theodore Sorenson, considered doves, also praised Washington’s intervention to reverse “aggression” in South Vietnam – by the indigenous resistance, as they knew, at least if they read US intelligence reports. In 1955 the US Joint Chiefs of Staff defined several types of “aggression,” including “Aggression other than armed, i.e., political warfare, or subversion.” For example, an internal uprising against a US-imposed police state, or elections that come out the wrong way. The usage is also common in scholarship and political commentary, and makes sense on the prevailing assumption that We Own the World.

Hamas resists Israel’s military occupation and its illegal and violent actions in the occupied territories. It is accused of refusing to recognize Israel (political parties do not recognize states). In contrast, the US and Israel not only do not recognize Palestine, but have been acting for decades to ensure that it can never come into existence in any meaningful form; the governing party in Israel, in its 1999 campaign platform, bars the existence of any Palestinian state.

Hamas is charged with rocketing Israeli settlements on the border, criminal acts no doubt, though a fraction of Israel’s violence in Gaza, let alone elsewhere. It is important to bear in mind, in this connection, that the US and Israel know exactly how to terminate the terror that they deplore with such passion. Israel officially concedes that there were no Hamas rockets as long as Israel partially observed a truce with Hamas in 2008. Israel rejected Hamas’s offer to renew the truce, preferring to launch the murderous and destructive Operation Cast Lead against Gaza in December 2008, with full US backing, an exploit of murderous aggression without the slightest credible pretext on either legal or moral grounds.

The model for democracy in the Muslim world, despite serious flaws, is Turkey, which has relatively free elections, and has also been subject to harsh criticism in the US. The most extreme case was when the government followed the position of 95% of the population and refused to join in the invasion of Iraq, eliciting harsh condemnation from Washington for its failure to comprehend how a democratic government should behave: under our concept of democracy, the voice of the Master determines policy, not the near-unanimous voice of the population.

The Obama administration was once again incensed when Turkey joined with Brazil in arranging a deal with Iran to restrict its enrichment of uranium. Obama had praised the initiative in a letter to Brazil’s president Lula da Silva, apparently on the assumption that it would fail and provide a propaganda weapon against Iran. When it succeeded, the US was furious, and quickly undermined it by ramming through a Security Council resolution with new sanctions against Iran that were so meaningless that China cheerfully joined at once – recognizing that at most the sanctions would impede Western interests in competing with China for Iran’s resources. Once again, Washington acted forthrightly to ensure that others would not interfere with US control of the region.

Not surprisingly, Turkey (along with Brazil) voted against the US sanctions motion in the Security Council. The other regional member, Lebanon, abstained. These actions aroused further consternation in Washington. Philip Gordon, the Obama administration's top diplomat on European affairs, warned Turkey that its actions are not understood in the US and that it must “demonstrate its commitment to partnership with the West,” AP reported, “a rare admonishment of a crucial NATO ally.”

The political class understands as well. Steven A. Cook, a scholar with the Council on Foreign Relations, observed that the critical question now is "How do we keep the Turks in their lane?" – following orders like good democrats. A New York Times headline captured the general mood: “Iran Deal Seen as Spot on Brazilian Leader’s Legacy.” In brief, do what we say, or else.

There is no indication that other countries in the region favor US sanctions any more than Turkey does. On Iran’s opposite border, for example, Pakistan and Iran, meeting in Turkey, recently signed an agreement for a new pipeline. Even more worrisome for the US is that the pipeline might extend to India. The 2008 US treaty with India supporting its nuclear programs – and indirectly its nuclear weapons programs -- was intended to stop India from joining the pipeline, according to Moeed Yusuf, a South Asia adviser to the United States Institute of Peace, expressing a common interpretation. India and Pakistan are two of the three nuclear powers that have refused to sign the Non-proliferation Treaty (NPT), the third being Israel. All have developed nuclear weapons with US support, and still do.

No sane person wants Iran to develop nuclear weapons; or anyone. One obvious way to mitigate or eliminate this threat is to establish a NFWZ in the Middle East. The issue arose (again) at the NPT conference at United Nations headquarters in early May 2010. Egypt, as chair of the 118 nations of the Non-Aligned Movement, proposed that the conference back a plan calling for the start of negotiations in 2011 on a Middle East NWFZ, as had been agreed by the West, including the US, at the 1995 review conference on the NPT.

Washington still formally agrees, but insists that Israel be exempted – and has given no hint of allowing such provisions to apply to itself. The time is not yet ripe for creating the zone, Secretary of State Hillary Clinton stated at the NPT conference, while Washington insisted that no proposal can be accepted that calls for Israel's nuclear program to be placed under the auspices of the IAEA or that calls on signers of the NPT, specifically Washington, to release information about “Israeli nuclear facilities and activities, including information pertaining to previous nuclear transfers to Israel.” Obama’s technique of evasion is to adopt Israel’s position that any such proposal must be conditional on a comprehensive peace settlement, which the US can delay indefinitely, as it has been doing for 35 years, with rare and temporary exceptions.

At the same time, Yukiya Amano, head of the International Atomic Energy Agency, asked foreign ministers of its 151 member states to share views on how to implement a resolution demanding that Israel "accede to” the NPT and throw its nuclear facilities open to IAEA oversight, AP reported.

It is rarely noted that the US and UK have a special responsibility to work to establish a Middle East NWFZ. In attempting to provide a thin legal cover for their invasion of the Iraq in 2003, they appealed to Security Council Resolution 687 (1991), which called on Iraq to terminate its development of weapons of mass destruction. The US and UK claimed that they had not done so. We need not tarry on the excuse, but that Resolution commits its signers to move to establish a NWFZ in the Middle East.

Parenthetically, we may add that US insistence on maintaining nuclear facilities in Diego Garcia undermines the nuclear-free weapons zone (NFWZ) established by the African Union, just as Washington continues to block a Pacific NFWZ by excluding its Pacific dependencies.

Obama’s rhetorical commitment to non-proliferation has received much praise, even a Nobel peace prize. One practical step in this direction is establishment of NFWZs. Another is withdrawing support for the nuclear programs of the three non-signers of the NPT. As often, rhetoric and actions are hardly aligned, in fact are in direct contradiction in this case, facts that pass with little attention.

Instead of taking practical steps towards reducing the truly dire threat of nuclear weapons proliferation, the US must take major steps towards reinforcing US control of the vital Middle East oil-producing regions, by violence if other means do not succeed. That is understandable and even reasonable, under prevailing imperial doctrine.
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Warning Of War

Discovering The Truth In Time

(Taken from CubaDebate)

By Fidel Castro

June 29, 2010 "Granma" -- WHEN I was writing one of my previous reflections, as a disaster for humanity was rapidly approaching, my greatest concern was to fulfill the elemental duty of informing our people.

Today I feel calmer than 26 days ago. As things continue happening in the short term, I can reiterate and enrich information to national and international public opinion.

Obama promised to attend the quarter-final game on July 2 if his country won in the second round. He must know, more than anybody, that those quarter finals could not take place if extremely grave events should happen beforehand, or at least he should know that.

Last Friday, June 25, an international news agency of known attention to detail in the information that it provides, published statements from "…the naval commander of the elite corps of the Islamic Revolutionary Guards, General Ali Fadavi…" warning that "… if the United States and its allies inspect Iranian ships in international waters ‘they will receive a response in the Persian Gulf and the Strait of Hormuz.’"

The information was taken from the national Mehr news agency of Iran.

That agency, according to the cable, communicated: "Fadawi added that ‘the Navy of the Revolutionary Guard currently has hundreds of vessels fitted with missile launchers.’"

The information, written almost at the same time as the one published in Granma, or perhaps before, seemed at certain points a carbon copy of the paragraphs of the Reflection written on Thursday, June 24 and published in that newspaper on Friday 25th.

The coincidence can be explained by the elemental use of logical reasoning that I always apply. I was not aware of one word of what was published by the national Iranian agency.

I do not harbor the slightest doubt that as soon as the warships of the United States and Israel take up their positions – together with the rest of the U.S. military vessels located in the vicinity of the Iranian coasts – and attempt to inspect that country’s first merchant ship, a rain of missiles will be unleashed in both directions. That will be the precise moment when that terrible war will begin. It is not possible to foresee how many ships will be sunk nor of what ensign.

Finding out the truth in time is the most important thing for our people.

It doesn’t matter that by natural instinct, almost everybody; it could be said 99.9% or more of my compatriots, are conserving hope and agreeing with me with the sincere desire of being wrong. I have talked with people in my closest circles and, at the same time, have received news from so many noble, altruistic and conscientious citizens who, on reading my Reflections, do not contest my considerations in the least, but assimilate, believe and instantly swallow the reasoning that I expound but who, nevertheless, immediately give their attention to fulfilling their work to which they devote their energies.

That is precisely what we desire of our compatriots. The worst things is to suddenly become aware of news of extremely grave events, without having heard any news whatsoever of such a possibility beforehand; then confusion and panic spreads, something that would be unworthy of a heroic people like the Cubans, who were at the point of being the target of a massive nuclear attack in October 1962, and did not hesitate for an instant to fulfill their duty.

During their undertaking of heroic internationalist missions, valiant combatants and chiefs of our Revolutionary Armed Forces were at the point of becoming the victims of nuclear attacks on the Cuban troops who were approaching the southern border with Angola, from where the racist South African forces had been evicted after the battle of Cuito Cuanavale, entrenching themselves on the border with Namibia.

With the knowledge of the U.S. president, the Pentagon supplied the South African racists via Israel with approximately 14 nuclear weapons, more powerful than those launched on the Japanese cities of Hiroshima and Nagasaki, as we have explained in other reflections.

I am not a prophet or a fortune teller. Nobody said a single word to me about what was going to happen; all of it is the fruit of what today I am describing as logical reasoning.

We are not novices nor are we interfering in this complicated subject.

In the nuclear post-crisis, it can be augured what will occur in the rest of Ibero-American speaking America.

In such circumstances, one cannot talk of capitalism or socialism. Only that a stage of the administration of goods and services available in this part of the continent will open up. Inevitably, each country will continue to be governed by those who are currently leading the government, a number of them very close to socialism and others full of euphoria at the prospect of a world market now opening for fuel, uranium, copper, lithium, aluminum, iron and other metals that are currently being sent to the developed and rich countries in that world market, which will suddenly disappear.

Abundant foodstuffs currently being exported to that world market will also abruptly disappear.

In such circumstances, the most basic products required in order to live: foodstuffs, water, fuels and the resources of the hemisphere to the south of the United States, are there in abundance for maintaining a little bit of civilization, the uncontrolled advances of which have led humanity to such a disaster.

However, some things are still very unclear at the present moment; can the two most powerful nuclear powers, the United States and Russia, abstain from using their nuclear weapons against one another?

What remains in no doubt whatsoever is that, from Europe, the nuclear weapons of Britain and France, allies of the United States and Israel – and which enthusiastically imposed the resolution that will inevitably unleash war, and a war that, given the reasons explained, will immediately become a nuclear war – are a threat to Russian territory, although that country, just like China, has tried to avoid such an outcome as far as the strengths and possibilities of each one allow.

The economy of the superpower will collapse like a house of cards. The society of the United States is one which is the least prepared to endure a disaster like the one created by the empire in the very territory from where it set out.

We do not know what might be the environmental effects of the nuclear weapons that will inevitably explode in various parts of our planet, something which, in the less grave variant, is going to happen in profusion.

To venture any hypothesis would be pure science fiction on my part.

Fidel Castro Ruz - June 27, 2010 - 2:15 p.m.

Saturday, April 24, 2010

Looting Main Street (and you too!)

Some Articles on Wall Street, the Federal Government, & You:
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The Sickening Abuse Of Power At The Heart of Wall Street

Posted: 24 Apr 2010 12:02 PM PDT
By Simon Johnson, co-author of 13 Bankers

Here’s where we stand with regard to democratic discourse on the future our financial system: leading bankers will not come out to debate the issues in the open (despite being approached by reputable intermediaries after our polite challenge was issued) – sending instead their “astro turf” proxies to spread KGB-type disinformation.

Even Larry Summers [after watching the video at the link to the left, are you thinking this is someone you would like to trust?], who has shifted publicly onto the side the angels (surprising and rather late, but welcome anyway), cannot – for whatever reason – bring himself to recognize the dangers inherent in our unstable and too-big-to-manage banks.  Or perhaps he is just generating excuses that will justify not bringing the Brown-Kaufman amendment to the floor of Senate?

So let’s take it up a notch.

I strongly recommend that the responsible congressional committees request and require all assistant secretaries at the US Treasury (and other relevant political appointees over whom they have jurisdiction) to appear before them early next week.

The question will be simple: Please share your calendar of meetings this weekend, and provide us with a complete accounting of people with whom you met and conversed formally and informally. 

The finance ministers and central bank governors of the world are in Washington this weekend for the spring meetings of the International Monetary Fund.  As is usual, the world’s megabanks are also in town in force, organizing big meetings and small dinners.

Through these meetings dutifully troop US treasury officials, providing in-depth and off-the-record briefings to investors.

Banks such as JP Morgan Chase and the other top tier financial players thus peddle influence, leverage their access, and generally show off.  They accumulate information from a host of official contacts and discern which way policymakers – their “good friends” – are leaning.

And what is the megabank whisper mill working on?  Ignore the “economic research” papers these banks put out; that is pure pantomime for clients-to-be-duped-later.  I’m talking about what they are telling the market – communicated in specific, personal conversations this weekend.

They are telling people that, based on their inside knowledge, Greece and potentially other eurozone countries will default on their debt.  Perhaps they are telling the truth and perhaps they are lying.  Most likely they are – as always – talking their book.

But the question is not the substance of their whisper campaign this weekend, it is the flow of information.  Have they received material non-public information from US government officials?  Show me the calendar of the top 10 treasury people involved, and then we can talk about whom to summon from the private sector to testify – under oath – about what they were told or not told.

There is no question that the megabanks derive great power and enormous profit from their web of official contacts.  We should reflect carefully on whether such private flows of information between governments and “too big to fail” banks are entirely suitable in today’s unstable financial world.

Large global banks make money, in part, through nontransparent manipulation of information – this is the heart of the SEC charges against Goldman Sachs.  But the problem is much broader: the Wall Street-Washington corridor is alive and well on its way to another crisis that will empower, enrich, and embolden insiders (public and private) while impoverishing the rest of us.

The big players on Wall Street are powerful like never before – and they use this power to press for information and favors from sympathetic (or scared) government officials.  The big banks also appear hell-bent on abusing that power.  One consequence will be further destabilizing global financial markets – watch carefully what happens to Greece, Portugal, Ireland, and Spain at the beginning of next week. 

It is time for Congress to step in with a full investigation of the exact flow of information and advice between our major megabanks and key treasury officials.  Start by asking tough questions about exactly who exchanged what kind of specific, material, market-moving information with whom this weekend in Washington.

[Please go to Baseline Scenario for the many informative links.

Also see other good posts on regulation of Wall Street at Baseline Scenario:

Greek Bailout, Lehman Deceit, And Tim Geithner

Break Up The Banks

John Paulson Needs A Good Lawyer

The Best Thing I Have Read on SEC-Goldman (So Far)

And search their posts for other info.
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Other links:

Looting Main Street

Merkley amendment to ban conflict of interest trading by banks (PROP Trading Act)

U.S. charges Goldman with subprime fraud

American Kleptocracy

What’s Wrong with the Financial Reform Bill

Dylan Ratigan Mocks Wall Street

Sunday, December 20, 2009

Obama Oversees Trashing of the Dream- Ensures Continued Despair & Corporate Control of Government

In This Edition"

- Matt Taibbi: Obama's Big Sellout

- Bill Moyers Journal - "Truth is, our capitol's being looted"

- Robert Reich: Slouching Toward Health Care Reform

____________________

Bill Moyers is said to be leaving PBS in the spring, so cherish one of the few outstanding journalists left while you have time.

On Friday's"Journal," Moyer's guests were Robert Kuttner and Matt Taibbi, both of whom have been mentioned on this blog. (Taibbi's blog is linked on my sidebar, but here it is: http://trueslant.com/matttaibbi/) Moyers referred to Matt Taibbi's December 9, 2009 article in Rolling Stone, so I will put it first, followed by the transcript from Fridays Bill Moyers Journal.

In the third article, Robert Reich writes about Obama and the Democrat's deal making with "Big Insurance, Big Pharma, and the AMA," as well as the Republicans, and how real health care reform slipped through the cracks in the process.
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Obama's Big Sellout
The president has packed his economic team with Wall Street insiders intent on turning the bailout into an all-out giveaway

MATT TAIBBI

Posted Dec 09, 2009 2:35 PM
http://www.rollingstone.com/politics/story/31234647/obamas_big_sellout/print


(Watch Matt Taibbi discuss "The Big Sellout" in a video on his blog, Taibblog: http://taibbi.rssoundingboard.com/matt-taibbi-on-obamas-economy)

Barack Obama ran for president as a man of the people, standing up to Wall Street as the global economy melted down in that fateful fall of 2008. He pushed a tax plan to soak the rich, ripped NAFTA for hurting the middle class and tore into John McCain for supporting a bankruptcy bill that sided with wealthy bankers "at the expense of hardworking Americans." Obama may not have run to the left of Samuel Gompers or Cesar Chavez, but it's not like you saw him on the campaign trail flanked by bankers from Citigroup and Goldman Sachs. What inspired supporters who pushed him to his historic win was the sense that a genuine outsider was finally breaking into an exclusive club, that walls were being torn down, that things were, for lack of a better or more specific term, changing.

Then he got elected.

What's taken place in the year since Obama won the presidency has turned out to be one of the most dramatic political about-faces in our history. Elected in the midst of a crushing economic crisis brought on by a decade of orgiastic deregulation and unchecked greed, Obama had a clear mandate to rein in Wall Street and remake the entire structure of the American economy. What he did instead was ship even his most marginally progressive campaign advisers off to various bureaucratic Siberias, while packing the key economic positions in his White House with the very people who caused the crisis in the first place. This new team of bubble-fattened ex-bankers and laissez-faire intellectuals then proceeded to sell us all out, instituting a massive, trickle-up bailout and systematically gutting regulatory reform from the inside.

How could Obama let this happen? Is he just a rookie in the political big leagues, hoodwinked by Beltway old-timers? Or is the vacillating, ineffectual servant of banking interests we've been seeing on TV this fall who Obama really is?

Whatever the president's real motives are, the extensive series of loophole-rich financial "reforms" that the Democrats are currently pushing may ultimately do more harm than good. In fact, some parts of the new reforms border on insanity, threatening to vastly amplify Wall Street's political power by institutionalizing the taxpayer's role as a welfare provider for the financial-services industry. At one point in the debate, Obama's top economic advisers demanded the power to award future bailouts without even going to Congress for approval — and without providing taxpayers a single dime in equity on the deals.

How did we get here? It started just moments after the election — and almost nobody noticed.
Read entire Article: http://www.rollingstone.com/politics/story/31234647/obamas_big_sellout/print
__________________________

Bill Moyers Journal

December 18, 2009
http://www.pbs.org/moyers/journal/12182009/transcript4.html

BILL MOYERS: Welcome to the JOURNAL.

Something's not right here. One year after the great collapse of our financial system, Wall Street is back on top while our politicians dither. As for health care reform, you're about to be forced to buy insurance from companies whose stock is soaring, and that's just dandy with the White House.

Truth is, our capitol's being looted, republicans are acting like the town rowdies, the sheriff is firing blanks, and powerful Democrats in Congress are in cahoots with the gang that's pulling the heist. This is not capitalism at work. It's capital. Raw money, mounds of it, buying politicians and policy as if they were futures on the hog market.

Here to talk about all this are two journalists who don't pull their punches. Robert Kuttner is an economist who helped create and now co-edits the progressive magazine THE AMERICAN PROSPECT, and the author of the book OBAMA'S CHALLENGE, among others.

Also with me is Matt Taibbi, who covers politics for ROLLING STONE magazine where he is a contributing editor. He's made a name for himself writing in a no-holds-barred, often profane, but always informative and stimulating style that gets under the skin of the powerful. His most recent article is "Obama's Big Sellout," about the President's team of economic advisers and their Wall Street connections. It's been burning up the blogosphere. Welcome to both of you.

BILL MOYERS: Let's start with some news. Some of the big insurance companies, Well Point, Cigna, United Health, all surged to a 52 week high in their share prices this week when it was clear there'd be no public option in the health care bill going through Congress right now. What does that tell you, Matt?

MATT TAIBBI: Well, I think what most people should take away from this is that the massive subsidies for health insurance companies have been preserved while it's also expanded their customer base because there's an individual mandate in the bill that's going to provide all these companies with the, you know, 25 or 30 million new people who are going to be paying for health insurance. So, it's, obviously, a huge boon to that industry. And I think Wall Street correctly read what the health care effort is all about.

ROBERT KUTTNER: Rahm Emanuel, the President's Chief of Staff, was Bill Clinton's Political Director. And Rahm Emanuel's take away from Bill Clinton's failure to get health insurance passed was 'don't get on the wrong side of the insurance companies.' So their strategy was cut a deal with the insurance companies, the drug industry going in. And the deal was, we're not going to attack your customer base, we're going to subsidize a new customer base. And that script was pre-cooked so it's not surprising that this is what comes out the other side.

BILL MOYERS: So are you saying that this, what some call a sweetheart deal between the pharmaceutical industry and the White House, done many months ago before this fight really began, was because the drug company money in the Democratic Party?

ROBERT KUTTNER: Well, it's two things. Part of it was we need to do whatever it takes to get a bill. Never mind whether it's a really good bill, let's get a bill passed so we can claim that we solved health insurance. Secondly, let's get the drug industry and the insurance industry either supporting us or not actively opposing us. So that there was some skirmishing around the details, but the deal going in was that the administration, drug companies, insurance companies are on the same team. Now, that's one way to get legislation, it's not a way to transform the health system. Once the White House made this deal with the insurance companies, the public option was never going to be anything more than a fig leaf. And over the summer and the fall, it got whittled down, whittled down, whittled down to almost nothing and now it's really nothing.

MATT TAIBBI: Yeah, and this was Howard Dean's point this week was that this individual mandate that's going to force people to become customers of private health insurance companies, the Democrats are going to end up owning that policy and it's going to be extremely unpopular and it's going to be theirs for a generation. It's going to be an albatross around the neck of this party.

ROBERT KUTTNER: Think about it, the difference between social insurance and an individual mandate is this. Social insurance everybody pays for it through their taxes, so you don't think of Social Security as a compulsory individual mandate. You think of it as a benefit, as a protection that your government provides. But an individual mandate is an order to you to go out and buy some product from some private profit-making company, that in the case of a lot of moderate income people, you can't afford to buy. And the shell game here is that the affordable policies are either very high deductibles and co-pays, so you can afford the monthly premiums but then when you get sick, you have to pay a small fortune out of pocket before the coverage kicks in. Or if the coverage is decent, the premiums are unaffordable. And so here's the government doing the bidding of the private industry coercing people to buy profit-making products that maybe they can't afford and they call it health reform.

BILL MOYERS: So explain this to the visitor from Mars. I mean, just this week, the Washington Post and ABC News had a poll showing that the American public supports the Medicare buy-in that-

ROBERT KUTTNER: Right.

BILL MOYERS: By a margin of some 30 points-

ROBERT KUTTNER: Right.

BILL MOYERS: And yet, it went down like a lead balloon.

ROBERT KUTTNER: Look, there are two ways, if you're the President of the United States sizing up a situation like this that you can try and create reform. One is to say, well, the interest groups are so powerful that the only thing I can do is I can work with them and move the ball a few yards, get some incremental reform, hope it turns into something better. The other way you can do it is to try to rally the people against the special interests and play on the fact that the insurance industry, the drug industry, are not going to win any popularity contests with the American people. And you, as the president, be the champion of the people against the special interests. That's the course that Obama's chosen not to pursue.

MATT TAIBBI: And I think, you know, a lot of what the Democrats are doing, they don't make sense if you look at it from an objective point of view, but if you look at it as a business strategy- if you look at the Democratic Party as a business, and their job is basically to raise campaign funds and to stay in power, what they do makes a lot of sense. They have a consistent strategy which involves negotiating a fine line between sentiment on the left and the interests of the industries that they're out there to protect. And they've always, kind of, taken that fork in the road and gone right down the middle of the line. And they're doing that with this health care bill and that's- it's consistent.

Read the rest of this transcript at: http://www.pbs.org/moyers/journal/12182009/transcript4.html.
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Robert Reich's Blog
Robert Reich was the nation's 22nd Secretary of Labor and is a professor at the University of California at Berkeley. His latest book is "Supercapitalism." This is his personal journal.

THURSDAY, DECEMBER 17, 2009
Slouching Toward Health Care Reform
http://robertreich.blogspot.com/2009/12/slouching-toward-health-care-reform.html

"Don't make the perfect the enemy of the better," says the President and congressional insiders when confronted with the sorry spectacle of a health-care bill whose scope and ambition continue to shrink, and whose long-term costs to typical Americans continue to grow. They're right, of course. But by the same logic, neither the White House nor congressional Democrats will be able to celebrate the emerging legislation as a "major overhaul" or "fundamental reform." At best, it's likely to be a small overhaul containing incremental reforms.

Real reform has moved from a Medicare-like public option open to all, to a public option open to 6 million without employer coverage (still in the House bill), to a public option open only to those same people in states that opt for it, or about 4 million (the original Harry Reid version of the Senate bill), to no public option but expanded Medicare (the Senate compromise) to no expanded Medicare at all (the deal with Joe "I love all the attention" Lieberman).

In other words, the private insurers are winning and the public is losing.

Pharmaceutical companies are winning as well. Yesterday, proposals to allow US pharmacies and wholesalers to import prescription drugs from Europe and Canada were defeated in the Senate. No matter that American consumers pay up to 55% more for their prescription drugs than Canadians, or that the measure would have saved the government at least $19.4 billion over ten years (according to the Congressional Budget Office). Big Pharma's argument that the safety of such drugs couldn't be assured was belied by the defeat of another proposed amendment that would have allowed drug imports only if their safety and economic benefits were certified by the Secretary of Health and Human Service.

Doctors and hospitals are also winning. More and more of the putative "savings" from health care reform ("savings" should really be understood as projected costs that are under the wildly-escalating costs projected without such savings) rely on contraints on future Medicare spending. But the details of such constraints keep vanishing, while ever more of the messy work of coming up with them is assigned to a so-called Medical Advisory Board that will supposedly recommend them later on. What no one wants to admit is that Congress never actually implements promised Medicare savings. When crunch time comes, it caves in to the AMA and the AARP. In a few years time, when boomers swell the ranks of seniors, and the political power of the AMA and AARP together rival that of Wall Street, the cave-ins will be boggling.

Meanwhile, opponents of abortion are winning, too. Ben Nelson (a Nebraska Democrat who enjoys being the spoiler even as much as Joe Lieberman) is holding out for even more restrictions.

The political reality right now is that Harry Reid will do anything to get sixty votes -- which means Lieberman, Nelson, and even Olympia Snowe are able to use extortion on behalf of Big Insurance, Big Pharma, the AMA, and abortion foes. The President, meanwhile, remains eerily above the fray. Having closed deals months ago with Big Insurance, Big Pharma, and the AMA -- in order to get their support in exchange for guaranteeing them big profits -- his only apparent interest is keeping the deals going while helping Reid corral sixty votes for just about anything. (The deals have caused some awkwardness for the White House. Drug importation would have cost Big Pharma far more than the $80 billion price tag it agreed to, forcing the White House to oppose importation even though the President had publicly supported it during his presidential campaign last year, and even though John McCain supported yesterday's amendment.)

Is the effort worth still worth it? Yes, but just. Private insurers will have to take anyone, regardless of preconditions. And some 30 million people who don't now have health insurance will get it. But because Big Insurance, Big Pharma, and the AMA will come out way ahead, the legislation will cost taxpayers and premium-payers far more than it would otherwise. Cost controls are inadequate; in fact, they barely exist. If Wall Street's top brass are "fat cats," as the President described them last weekend, the top brass of Big Insurance, Big Pharma, and the AMA are even fatter. While they don't earn as much, they're squeezing the public for even more.

We are slouching toward health-care reform that's better than nothing but far worse than we had imagined it would be. Even those of us who have seen legislative sausage-making up close, even those of us who never make the perfect the enemy of the better, are concerned. That two or three senators are able to extort as much as they have is appalling. Why hasn't Reid forced much of the bill into reconciliation, requiring only 51 votes? Why has the President been so cowed? In all likelihood, the White House and the Dems eventually will get a bill they can call "reform," but they will not be able to say with straight faces that the reform is a significant improvement over the terrible system we already have.
posted by Robert Reich | 5:57 AM