Did US President Obama Bow to Saudi King Abdulla?

This clip was on Jihad Watch today, and it unfornately looks like it-- bad news (unless President Obama stoops to conquer...). IMHO the White House needs to come up with some clear explanation of what is going on. Even if not shown widely in US media, this clip could be interpreted in different ways among those hostile to the United States, in ways that might harm national security:
Some commentary by Clarice Feldman at The American Thinker:

See Miss Manners on the protocol. Americans do not bow to foreign monarchs because that act signified the monarch's power over his subjects.

Michelle Malkin has more.

Ali Alyami, founder of the Center for Democracy and Human Rights in Saudi Arabia, commented:

This photo of our President bowing to one of the most absolute monarchs in the world is circulating globally. Personally, I think, the president's apparent submissive act is inappropriate to say the least, especially since the President barely bowed his head for the Queen Of Great Britain who has no power and represents the land of Magna Carta among other things. The controlled Saudi media will present this as a victory for their global primacy, king and for the supremacy of their religion over the rest of the world...

Jorge Preloran, 75

An Argentine friend just informed me of the death of ethnographic filmmaker Jorge Preloran, who had been one of my teachers at UCLA Film School. Here's an obituary from Argentina's El Diaro de la Pampa:

A los 75 años de vida, murió el cineasta Jorge Prelorán, un artista con todas las letras, que estuvo vinculado de manera estrecha a la historia y la cultura de La Pampa. Prelorán padecía una larga dolencia y perdió la vida en su casa de Los Angeles (Estados Unidos), donde residía, el sábado a las 5.30 horas de Argentina. Uno de sus últimos actos, fue dar su cuerpo para donación de órganos y estudios científicos.

Haydeé Mabel Freddi, su esposa y compañera inseparable de toda la vida, fue su custodia y hoy tiene en sus manos la gran obra que dejó Prelorán.

Prelorán había nacido el 28 de mayo del ‘33, en Buenos Aires. Además de un gran artista, fue alguien que apostó durante toda su vida a la ciencia, al conocimiento y a la educación. En marzo del año 2007, la Universidad Nacional de La Pampa lo había declarado Profesor Honorario. Una de sus películas más recordadas es Cochengo Miranda. También se vinculó con La Pampa -provincia a la que regresó cada vez que pudo- a través de Los Hijos de Zerda y de Héctor Di Mauro, titiritero.

Estudió en la Facultad de Arquitectura de Buenos Aires y también en el exterior (en la Universidad de California, de Los Angeles y de Berkeley). Estudió piano clásico e idiomas: inglés, italiano, francés.

Prelorán se destacó además como dibujante y produjo películas y series televisivas, como -por ejemplo- “Los Aborígenes”, una producción de la que fue asistente de dirección en los ‘60. Produjo películas educativas y series didácticas; participó en el “Relevamiento Cinematográfico de Expresiones Folklóricas Argentinas”, bajo la dirección del Dr. Augusto Raúl Cortazar. Para esa producción, a lo largo de 4 años recorrió unos 250.000 kilómetros y filmó sobre una diversidad de temas regionales de la Argentina.

En la Universidad de California también fue profesor, dictó seminarios sobre cine etnográfico y documental. En el año ‘73 se desempeñó como profesor / tutor en el National Film School of Great Britain, de Londres (Inglaterra).

En el ‘75 presentó “Hermógenes Cayo”, considerada una de las “Diez Mejores películas en la Historia del Cine Argentino”, según una encuesta realizada en 1977 entre críticos de cine en actividad y publicada en Radiolandia.

Dos años más tarde fue invitado al Museo de Arte Moderno de Nueva York para estrenar “Los Hijos de Zerda”.

En el ‘81 fue nominado para el Oscar de la Academia de Artes y Ciencias de Hollywood por el corto documental “Luther Metke at 94”. En la Argentina se hizo acreedor al Premio Konex, otorgado al más prestigioso creador en el rubro cultural de espectáculos.

En el año ‘94, se publicó el libro “Jorge Prelorán”, de Graciela Taquini, en la serie “Los directores del cine argentino” del Centro Editor de América Latina, Buenos Aires. Ese mismo año lo nombraron Profesor Emeritus de la UCLA.

En marzo de 2007 recibió el título de Profesor Honorario de la Universidad Nacional de La Pampa. Y se aceptó para publicación el libro “Cochengo Miranda” (parte de la serie Nos-Otros) por Ediciones Universidad de la Pampa.

Dr. Robert Jarvik on Dr. Willem Kolff

Someone just told me about this tribute to my cousin's mentor in Time Magazine:

WILLEM KOLFF
By Dr. Robert Jarvik
Thursday, Feb. 19, 2009

In 1971, after my first two years at medical school, Dr. Willem Kolff, who died Feb. 11 at 97, hired me to work on the artificial-heart project at the University of Utah. On my first day, he instructed me to create a new heart design that would keep an animal alive longer than any earlier models had.

Previous designs had failed, he explained, because they did not fit anatomically. And that was all he said. He told me what to do but not how to do it. That was Dr. Kolff's forte: finding enthusiastic people, laying out his visions and then leaving them to their own devices.

Dr. Kolff, who was one of the founders of the American Society for Artificial Internal Organs, encouraged scores of people to turn their attention to creating mechanical hearts, electronic devices that restore hearing and vision, artificial arms and more. He believed that bioengineering could one day provide a substitute for almost every organ in the body.

What could not be replaced, however, was Dr. Kolff himself, who possessed energy, Old World charm and a grand, guiding vision. I count myself among the many inventors, engineers and doctors who worked with him and will never forget his indomitable spirit.

Jarvik developed the first permanent total artificial heart

More on Dr. Kolff at this link to a Stanford University website.

Kosuke Koyama, Theologian

We met Kosuke Koyama's daughter Mimi on Christmas Day, 2004 (Western calendar) at the St. Sergius Monastery, while we were living in Moscow. We got to know her and her family, and heard wonderful stories about her father. Our sincere sympathies and condolences to her and the family at this difficult time.

This excerpt from the obituary in today's New York Times gives a sense of his remarkable story:

Dr. Koyama was born on Dec. 10, 1929, in Tokyo. In 1945, as American bombs rained down on Tokyo, he was baptized as a Christian at the age of 15. He was struck by the courageous words of the presiding pastor, who told him that God called on him to love everybody, “even the Americans.”

Dr. Koyama graduated from Tokyo Union Theological Seminary in 1952 and earned a bachelor’s degree from Drew University in 1954 and a doctorate from the Princeton Theological Seminary in 1959.

He was then sent by the United Church of Christ in Japan to be a missionary in Thailand. In 1968, he moved to Singapore to become dean of the South East Asia Graduate School of Theology and editor of The South East Asia Journal of Theology.

From 1974 to 1978, he lectured at the University of Otago in New Zealand. In 1980, he joined Union. Before he arrived, someone noticed that his “Water Buffalo” book had just landed on the discard pile outside the library door, Dr. Shriver said. Apparently, a librarian had concluded that the prestigious school had no program for teaching theology to water buffaloes. The book quickly and quietly returned to the shelves.

Dr. Koyama was the first holder of the John D. Rockefeller Jr. Chair in Ecumenics and World Christianity. He retired in 1996.

In addition to his son Mark, Dr. Koyama is survived by his wife of 50 years, Lois; another son, James; his daughter, Elizabeth; and five grandchildren.

Once, in discussing death, Dr. Koyama recalled the story of Jesus washing the feet of his disciples. He said Jesus would be with others the same way:

“Looking into our eyes and heart, Jesus will say: ‘You’ve had a difficult journey. You must be tired, and dirty. Let me wash your feet. The banquet’s ready.’ ”

Geithner Resigns As Treasury Secretary

(April Fool)

Daniel Pipes on British Crusaders' Propaganda in 1917

From DanielPipes.org:

Reporting on General Edmund Allenby's conquest of Jerusalem on December 9, 1917, the New York Herald announced in a headline: "Jerusalem Rescued by British after 673 Years of Moslem Rule." Subtitles then elaborate: "Great Rejoicing in the Christian World" and "Jews Everywhere in Particular See the Restoration of Palestine as Part of Allies' Programme."

The math checks out: 1917-673=1244, the year when the Ayyubids, with Khwarezmian aid, seized the city for the last time from the Crusaders

The newspaper's second page boasts stories under headlines that read "Distinguished Jews Here [i.e., New York] Express Joy Over Capture of Jerusalem by British," "Rescure of Jerusalem Causes Joy," and "Holy City Ravaged in Many Wars by Pagan and Turk: Has Been Under the Yoke of Mohammedan Rule for 670 Years."

Comment: (1) The lead headline captures a mentality once dominant but now rare in the West, when there was a self-conscious "Christian world" and it rejoiced in a religious/military victory over Muslims. (2) Conversely, the "Muslim world" would still today rejoice in precisely this manner, recalling medieval rivalries, raising religious sentiments, and taking satisfaction at the humiliation of an age-old enemy. (3) If the West can travel so far in less than a century, why not Muslims as well? (March 30, 2009)

Robert Kuttner: Federal Reserve Has Become Slush Fund

From the Huffington Post:

Even more alarmingly, the administration is now using the Federal Reserve as an unlegislated, all-purpose slush fund. Because the Fed's operations are largely beyond the reach of Congressional appropriations or scrutiny, the Fed can do whatever it wishes with its money. The Geithner plan was negotiated behind closed doors, the main players being the Fed, the FDIC, the Treasury, and power-brokers on Wall Street.

What we have is something perilously close to a dictatorship of the Fed and the Treasury, acting in the interests of Wall Street. The contrasts with the first hundred days of the Roosevelt administration are striking. Like Roosevelt, Obama faces an economic emergency. Like Roosevelt, he faces an angry public, which has been bilked by excesses on Wall Street. And like Roosevelt, Obama has a supportive Democratic Congress that is willing to substantially defer to the White House on an emergency recovery plan.

But unlike Roosevelt, who used the public's indignation and Congress's support to constrain the barons of private finance, Obama's economic team is using government funds to put the most abusive players on Wall Street back in the saddle. And Geithner and Summers, working with the Fed, are assembling their plan with no public scrutiny.

In the course of a week, the administration's own rhetoric on the A.I.G. bonuses has shifted from "We were bound by contracts" to "This is an outrage" to "Never mind." Wall Street was out for favor for just days. Meanwhile, Geithner is out with a new proposal to give the Federal Reserve even more sweeping powers to be a "systemic risk regulator."

All of this invites a couple of hard questions.

First, was this the only way to proceed? I have addressed this in a previous column arguing that a superior approach would be a new Reconstruction Finance Corporation.

For details of a well articulated rationale for a new RFC, see the recent speech by Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, whose jurisdiction covers eleven Midwestern states. (PDF)

Second, where is Congress? Basically, the key Democratic Committee chairman, whatever their private reservations, have been persuaded that they need to support their president and that the Geithner plan is worth a try. But at the very least, they should be asking harder questions and demanding more transparency. For instance, the Treasury needs to define tactics to game the bailout that will be be prohibited. Congress needs to know which Wall Street moguls the Treasury team met with, and exactly what they were promised. And the whole plan needs to be legislated, rather than made up on the fly by Summers, Geithner, and Bernanke.

At the very least, Congress should act now to cap the kind of windfall profits that hedge funds and private equity companies are likely to make with government bearing nearly all of the risk. There is a good precedent for this. During and after World War II, ending only in the early 1970s, there was a government agency called the Renegotiation Board. Defense Contractors had to agree to a contractual provision allowing a post-audit, after the contract was finished. If their profit exceed the stipulated amount, the government got a refund. By the same token, hedge fund and private equity bets made with government guarantees should have limits on their upside.

And before the Fed is turned into an even more potent all-purpose regulator, Congress should turn it into a true public institution--a reform project that has been deferred since Roosevelt's day.

At a recent conference of the New America Foundation, economist and Obama adviser Laura Tyson, an in exchange with me, defended the administration's approach on the premise that there was no way that Congress would legislate the one to two trillion dollars in public funds that will be needed to make this rescue work. So, in Tyson's view, there was no alternative other than having Treasury contrive its own plan, using the Fed as an all purpose source of unlegislated financing.

I think this is exactly backwards. The administration has, in fact, put $750 billion into its current budget for bank-bailout funds to be tapped later. And if the White House had proposed a more progressive approach to the whole financial rescue--taking failed banks into receivership, involving Congress in the program design, doing comprehensive government audits of bank balance sheets before rather than after the fact, and forcing bank shareholders and bondholders rather than taxpayers to take more of the hit--Congress might well have provided at least some of the funds, leaving the Fed to provide the rest.

Under the present arrangement, the Fed provides nearly all of the funds, an approach that carries no transparency and huge risks of its own. Until last September, the Fed bought and sold mainly Treasury bonds, the safest securities there are. And it did so for one purpose only--to conduct monetary policy. Now, the Fed is buying trillions of dollars of junk assets, and it will be under tremendous pressure to keep these on its own books, compromising its capacity to run the nation's monetary policy.

It's possible that the Geithner plan will "work" in the sense of re-starting the Wall Street bubble machine, this time with a limitless line of direct credit from the Federal Reserve. If that happens, it will defer an even more serious day of reckoning, as the cost of the Fed's immense credit creation comes due. But the greater likelihood is that the plan will merely enrich some speculators, but neither bring zombie banks back to life, nor get a normal banking and credit system operating again. And then the administration will need to come back to Congress, this time with less credibility, with the economy in even worse shape, having burned through more than a trillion dollars.

We were promised unprecedented openness. In the most momentous area of policy for getting the economy functioning again for ordinary Americans, we have instead unprecedented secrecy, designed by and for Wall Street. We expected better of Obama.

FoxNation Blog Debuts

So far, it looks like a conservative version of The Huffington Post, IMHO...meanwhile you can read Rupert Murdoch's latest venture for yourself here: http://www.thefoxnation.com/.

I Liked Little Dorrit...

...on Masterpiece Theatre last night, although some of the direction was a little too dark and grotesque (I prefer a lighter touch with Dickens). It was nice to hear someone say "a cup of tea," see those carriages, hear those hooves clip-clopping, and have a soothing evening's entertainment of classic serial drama. Lead actors were good, Tom Courtenay outstanding. Glad it's back on Sunday night at 9 pm. Looking forward to next week.

Now, if only WGBH and PBS could find someone to sit calmly in a leather armchair with a book, instead of Laura Linney hyperventilating while standing in front of a scrim... Perhaps Christopher Hitchens might be available?

Meanwhile, here's the BBC preview:

Jonathan Jones: How Art Killed Our Culture

Someone I know sent me a link to this interesting article from The Guardian (UK) blog:

No sphere of high culture is implicated in the fall of the affluent society in the same way art is. Yesterday I commented on the resistance to melancholy, the flight from reality, that enabled art in our time to promote the fantasy of an unlimited market. Some have called the system that has now fallen "offshore capitalism"; perhaps another description is "post-modern capitalism". In post-modern capitalism, secondary markets created a counter-reality that was unfettered by production. The economy was run like a theme park. It's obvious how deeply involved in that daydream was the art of the last 20 years, which so gleefully rejected anything that might tie it to the slow, patient, tedious stuff of real creativity.

Drama, the novel, even cinema have all kept a safer distance from the booming monster of modern capitalism than artists did. What I want to ask now is – why? What happened? How did art become the mirror of fraud? It is not a story that starts with Damien Hirst's diamond skull but one that goes back to the very origins of the consumer society.

After the second world war artists were steeped in history and introspection. Art has never been more serious in its view of life than it was in the era of Mark Rothko and Francis Bacon. But even as modern painting reached such heights and depths, western society was going through an epochal transformation. The power of the capitalist economies in the postwar era was unprecedented in world history. An entirely new lifestyle, that of "consumerism", was born.

Consumerism instantly inspired artists. Pop art in America and Britain took the surfaces of objects, the instant appearances of the new bright world, as its subject matter. Everywhere, emotional depth in art was censored. Abstract Expressionism had to die. Art could teach people to look at the world in a new way: to embrace the cool. Pop art taught everyone to enjoy money and the mass media and 1980s post-modernism taught the same lesson again.

These emotional styles have long since been so popularised that even intelligent people accept that reality television is a form of culture and celebrities fit receptacles for our ephemeral floods of feeling. All the shallowness of modern mass culture began in avant-garde art 40 years ago. We're Warhol's ugly brood. Art has even fed the unsustainable appetites that are destroying the planet by constantly telling everyone cities are better than the countryside, culture more real than nature. It has become the enemy of truth, the murderer of decency.

The modern world has screwed itself and art led the way.

Amil Imani: Safeguarding Cyrus the Great Cylinder

Amil Imani asked me to pass the word on protecting the Cyrus the Great Cylinder:

Please Sign-Safeguarding Cyrus the Great Cylinder
Tuesday, 24 March 2009
To: UNESCO World Heritage, the British Government, the British Museum, International media, and all organizations and individuals concerned with preservation of humanity’s precious treasures

The British Museum is planning to lend the Islamic Republic in April, one of the most precious antiquities in the world, Cyrus the Great Cylinder. The Cyrus Cylinder has been hailed as the first charter of human rights. In 1971, in recognition of the unique nature of this artifact, the United Nations produced a translation of it in all the UN official languages.
A vast number of Iranians are deeply concerned about the fate of the Cyrus Cylinder, should it be loaned to the Islamists presently ruling Iran. The hostility of the clerical regime of Iran toward anything and everything Iranian that predates Islam is a well-documented fact. This priceless artifact belongs to Iran. Entrusting it to the hands of the sworn enemies of Iranian heritage entails an unacceptably high risk. It is imperative that the British authorities rescind the decision and take every measure to insure that the Cyrus Cylinder is preserved safely and returned to its rightful owner Iran only after the demise of the Islamic Republic.

The Islamic Republic of Iran is staffed by diehard elements that are determined to wipe out all traces of the pre-Islamic era. They aim to surpass the heinous act of Afghanistan's Taliban who destroyed the irreplaceable two Buddha statues. What is enshrined in the Cyrus Cylinder is unconditional respect for the complete rights of all the people of the world, an anathema to the Islamists' credo.

The current Islamic regime under the mullahs has shown, on numberless occasions, its contempt both in words and action for the memory of Cyrus, including flooding the plain which houses Cyrus’s tomb, destroying the archeological sites of Pasargad and Persepolis, and harassing and intimidating those who would gather at the tomb of enlightened king to commemorate the International Day of Cyrus the Great.

It is with great apprehension that the Iranian people warn Mr. Andrew Murray Burnham, the British Secretary of State for culture, as well as the British government regarding the plan to lend this precious treasure of humanity to a contemptuous cult of medieval mullahs.

Furthermore, it is urgent that UNESCO take the additional step of immediately registering Cyrus’s Charter of Human Rights Cylinder in its World Heritage Memory, in order to safeguard the diverse cultural heritage of the peoples of the world.

Sincerely,

The Undersigned

Taking a break...

Please Stay Tuned...

No Wonder Newspapers Are Dying...

Michael Calderone, writing in Politico, explains the vast left-wing conspiracy that has made all newspapers sound the same--it's called JournoList:

Said another JLister: “I don’t know any other place where working journalists, policy wonks and academics who write about current politics and political history routinely communicate with one another.”

But what if all the private exchanges got leaked?

That’s been the subject of some JList conversation, too, as members discuss the Weekly Standard’s publication of a 2006 e-mail posted to the private China Security Listserv by diplomat Charles Freeman, who last week withdrew his name from consideration for a top intelligence job.

Michael Goldfarb, a former McCain staffer and conservative blogger who published the e-mail, was not part of the China list and therefore hadn’t agreed to any off-the-record rules.

Asked about the existence of conservative listservs, Goldfarb said they’re much less prevalent.

“There is nothing comparable on the right. E-mail conversations among bloggers, journalists and experts on our side tend to be ad hoc,” Goldfarb said. “The JournoList thing always struck me as a little creepy.”

Kaus, too, has seemed put off by the whole idea, once talking on BloggingHeads about how the list “seems contrary to the spirit of the Web.”

“You don’t want to create a whole separate, like, private blog that only the elite bloggers can go into, and then what you present to the public is sort of the propaganda you’ve decided to go public with,” Kaus argued.

But Time’s Joe Klein, who acknowledged being on JList and several other listservs, said in an e-mail that “they’re valuable in the way that candid conversations with colleagues and experts always are.” Defending the off-the-record rule, Klein said that “candor is essential and can only be guaranteed by keeping these conversations private.”

And then Klein — speaking like the JLister he is — said there wasn’t “anything more that I can or want to say about the subject.”

Why Irish Eyes Are Smiling...

Happy St. Patrick's Day!

WASHINGTON (AP) — The White House is going green for St. Patrick's Day.
The water in the fountains on the north and south lawns of the White House has been dyed green to mark the national holiday of Ireland.

First Lady Michelle Obama came up with the idea for the festive touch, said spokeswoman Katie McCormick Lelyveld. She was inspired by the St. Patrick's Day celebrations in her hometown of Chicago, where the city marks the holiday by dyeing the river green.

"It's a little piece of home for our new home," said Lelyveld, who is also from Chicago.

Lelyveld said it's the first time the water in the White House fountains has been dyed. The green hue will stay until the dye runs outs.

President Barack Obama marks St. Patrick's Day with separate meetings in Washington with Irish leaders and he'll also attend St. Patrick's Day events in the White House and on Capitol Hill.

BTW, President Obama is Irish:

Now, before I turn it over to the Taoiseach, it turns out that we have something in common. He hails from County Offaly. [Note: "King's County" before 1922] And it was brought to my attention on the campaign that my great-great-great grandfather on my mother's side came to America from a small village in County Offaly, as well. We are still speculating on whether we are related. (Laughter.)

I do share, though, a deep appreciation for the remarkable ties between our nations. I am grateful to him for his leadership of Ireland. The bond between our countries could not be stronger. As somebody who comes from Chicago, I know a little bit about Ireland, and the warmth, the good humor, and the fierce passion and intelligence of the Irish people is something that has informed our own culture, as well. And so that's why this day and this celebration is so important.

Ali Alyami's Letter to the Washington Post

Received by email this weekend:

While reasonable people can understand and empathize with President Obama’s efforts to address the gargantuan economic problems he is facing at home and abroad, compromising our moral and democratic values (Moralism on the Shelf, the Post March 10, 2009; A13) is not only myopic, but will grant victories to those who are bent on rendering America politically, morally and economically irrelevant. We are already dependent on two of the world most tyrannical regimes, the Saudi ruling family and the Beijing Communist party, for our economic survival. Under these humbling conditions, how long we will be able to maintain our democratic values. In addition, by abandoning our moral and democratic values, we will demoralize most of the world’s population who looks up to this country for liberation from their oppressive ruling elites. The price for risky and ill advised short cuts to solve long term problems can be very high in material, security and democratic values that made America what it is, the envy of the world.

Ali H. Alyami, Ph. D.
Executive Director, The Center for Democracy and Human Rights in Saudi Arabia
1050 17 St. NW Suite 1000
Washington, DC 20036
Tel: (202) 558-5552; (202) 413-0084; Fax: (202) 536-5210
ali@cdhr.info; www.cdhr.info

Roger Simon on Roger Cohen's Love Affair With Teheran

Roger Simon went to see Roger Cohen speak to Iranian Jewish exiles at LA's Temple Sinai and filed this report:

I was puzzled by Cohen’s strange reaction to Iran until an audience member asked a question about the notorious public hangings in that country. Astonishingly, Cohen muttered something under his breath about us killing people in Texas. Now as someone who opposes capital punishment I can say this: Anyone who sees even remote moral equivalence between a culture that executes convicted murderers after appeal and one that hangs homosexuals for their sexual preference and stones women to death for adultery has, to be kind, a rather bizarre world view. This is cultural relativism run amuck.

It’s hard to like someone who makes statements like that and it’s hard to give his opinions much credence. Nevertheless, what Cohen apparently derived from his visit is that Iran is a complex society (whoever thought it wasn’t?) and that we should be negotiating with their government. When asked by another audience member what he made of the years of failed negotiations with the European Union, he dismissed them out of hand. The Europeans have no army. We are the big guys.

Again, no mention of the obvious - that we and, of course, the Iranians knew full well that the Euros were representing us and that at the slightest hint of a concession we would have come running to the table, just as we had with the North Koreans. Moreover, we have already been holding limited negotiations with the Iranians in Iraq for some time and, I would bet my house, have been holding back channel negotiations with them for years. As most of us, and I assume Cohen, know – almost all significant discussions of this nature go on out sight.

Still, I have no argument against negotiation. The only harm is that it buys the Iranians time to continue building an atomic bomb. This does not overly alarm Cohen who believes the mullahs to be pragmatists. He doesn’t seem disturbed by their eschatology or, I guess, really thinks they believe it. I assume he knows about it, although he did not demonstrate any background or interest in this area. That fundamentalist belief system, however, does concern me. It wasn’t that long ago (1980s) that Ayatollah Khomeini drove hundreds or thousands of ten-year old boys to their deaths as human mine sweepers for the greater glory of the Mahdi (to bring forth the hidden Imam – a form of Shia messiah). These are not exactly the people you would like to have a nuclear weapon.

Video feed available from the Jewish Journal of Los Angeles, here.

Robert Kuttner on the AIG Scandal

From the Huffington Post:

But the outrage over the AIG bonuses is a sideshow. The larger problem, both financially and politically, is the entire strategy for rescuing the banks.

It would be hard to imagine two administrations seemingly more opposite than the Bush and the Obama presidencies. Yet Geithner's approach is essentially a continuation of the failed strategy of Bush Treasury Secretary Henry Paulson, Geithner's former close colleague in Geithner's prior role as president of the New York Fed.

In defending the AIG bonuses, CEO Edward Liddy actually said that you had to pay bonuses to attract and keep "the best and brightest talent," in this case the very people who are costing America's taxpayers $175 billion and counting. Far from receiving bonuses, these people deserve to share a cell with Bernie Madoff.

By the same token, Larry Summers and Tim Geithner are not the only smart people about finance. If President Obama wants a second opinion, he could begin with Paul Volcker, nominally chairman of Obama's own "Economic Recovery Advisory Board," which so far is mainly window-dressing. According to my sources, Summers and Geithner seldom talk to Volcker because they don't like Volcker's criticisms of their plan.

The president could also consult with several people in the Federal Reserve System who have a different view, and also the FDIC leadership, and the Congressional Oversight Panel that was created by Congress as the precondition for appropriating the TARP money. The panel has the statutory right to get documents from the Treasury. But under Geithner as under Paulson before him, Treasury has been stonewalling. Legislators of both parties are increasingly viewing Geithner as part of the problem.

As the administration continues its coziness with Wall Street and the approach fails to bring zombie banks back to life, populist anger passes to both the Republicans and to media tribunes such as Lou Dobbs. This brand of populism is one part anti-Wall Street, but two parts anti-government and anti-immigrant. It has no strategic coherence as a recovery plan.

The alternative to Lou Dobbs' brand of populism is of course Franklin Roosevelt's. But something is really off when Sen. Sam Brownback, the AEI, and the Kansas City Federal Reserve Bank start sounding more like Roosevelt than Barack Obama's treasury secretary does.

Obama needs to get a second opinion, firsthand.

To End Financial Crisis, Cancel All Credit Default Swaps

(ht Daily Kos) The so-called credit default swaps were fraudulent wagers that should be declared null and void as gambling debts, and therefore unenforcable. In fact, Congress acted in 2000--during the Clinton administration, thanks to help from the likes of Senate Finance Committee Chairman Chris Dodd--to exempt such wagers from existing state gambling law. The obvious solution is to rescind that 2000 legislation and treat credit default swap debt as illegal gambling (which it clearly was, given the results). As explained by Moon of Alabama, Sept. 21, 2008, there is a precedent from the Great Depression era:

At the bottom of the inverted financial pyramid are overvalued land, wood structures, dry walls and granite countertops - i.e. cheaply over-build houses.

These were sold to people who could only afford them with mortgages that had unrealistic starting conditions and on the premise that housing prices would continue to rise forever.

These mortgages were bundled, sliced and diced into Mortgage Backed Securities and sold to investors. Home equity loans, car-loans and credit card debt were converted to Asset Backed Securities and sold off.

On top of these MBS/ABS papers some geniuses constructed an additional financial layer.

These were insurance contracts that covered against the default of ABS, MBS and various types of bonds. These insurance contracts, Credit Default Swaps, are totally unregulated private agreements. They were widely created and dealt with when the risk of default of the underlying papers was assumed to be low.

Some of the insurers who issued these CDS never had the capital to back all the policies they wrote. In a competitive environment they offered too low premiums to insure against default risks.

Some insurers partly insured themselves via reinsurance. When they sold a CDS on a bond issue of some $10 million they went to other insurers and bought themselves CDS, let's say $5 million or perhaps even for $20 million. The re-insurers partly re-insured themselves again by buying CDS elsewhere.

Some people simply betted on a change in the default risk of some bonds. They did not even own the MBS or bond in question, but bought or sold insurance against the default of a specific MBS or bond anyway. Some may have bought total insurance from different insurers in a way that a default of the MBS would pay them ten times the nominal value of said MBS.

Imagine you could have ten fire insurances on your home that would each pay out the full value of your house if it burns down. That would probably give you some very hot ideas.

That is exactly the reason why fire insurance regulation prevents such a case. But CDS are unregulated, their originators are unregulated and there is no settlement mechanism for them other than the private contracts between the parties.

The original size of the mortgages going into default are probably $300-500 billion. The total mortgage origination in the last years were a few trillion dollars. These and additionally credit card loans and auto loans that were converted to Asset Backed Securities in a volume of about $6 trillion.

But on top of these $6 trillion of MBS/ABS and bonds insurances, re-insurances and re-re-insurances were written with an estimated total nominal value of some $65+ trillion. The real number is unknown, but it is bigger than the whole worlds yearly GDP.

Now the housing bubble busted. There was simply too much supply created to sustain ever rising prices. Without rising house prices a lot of homeowners had to default on their mortgages.

With the mortgages going into foreclosure, the MBS and other asset backed papers where suddenly less worth than expected. This triggered credit insurance events. People who had bought the Credit Default Swaps suddenly demanded money from their insurers.

It turns out that these insurers, or their re-insurers, or whoever meanwhile carries the now negative side of the CDS in question are out of money and the insurance agreements are worthless. The worlds biggest insurer, AIG, was nationalized because it had written too much credit insurance for too low prices.

The big danger now are not defaulting homeowners. The big danger are not Asset Backed Securities that might lose some value.
The big danger is the pyramid of credit insurances that is certain to come down and that will take with it at least half of the existing finance infrastructure.

Banks, hedge funds, pension funds, municipals and others who bought insurance will find that it is worthless. Banks, hedge funds an others who sold insurances will find that they will have to pay out more than their total capital.

We currently see a credit-freeze because nobody wants to lend to anybody as it is impossible to know how much credit insurance the other party has written or how much it depends on their validity. You do not lend to anyone who might already be bust.

That is the situation we are in and it shows why the Paulson plan is utter crap and nothing but a huge robbery.

The Paulson plan would not help at the bottom of the inverted pyramid, the housing market, and not at the top, in the CDS market.
Paulson knows that the crash of the CDS market is inevitable. His plan is an attempt to let the taxpayer pay for the stabilization of the middle of the pyramid in the hope that the big crash will come only after the election (and in the hope that the loot might help Paulson's beloved Goldman Sachs to survive.)

There is only way to avert the crash.

Declare all CDS contracts, worldwide, as null and void. There is precedence for this:

During the Great Depression, many debt contracts were indexed to gold. So when the dollar convertibility into gold was suspended, the value of that debt soared, threatening the survival of many institutions. The Roosevelt Administration declared the clause invalid, de facto forcing debt forgiveness. Furthermore, the Supreme Court maintained this decision.

The maze of the value and ownership of $65+ trillion of financial credit insurance contracts has frozen the credit markets. Nobody is lending to anybody else because the value of the counterparty is in doubt.

Those $65 trillion reasons for the credit market freeze will never go away without a huge crash that then will have worth consequences than the 1929 stock market crash. The only way to eliminate these reasons is internationally concerted action to declare the legal obligations of all CDS' null and void.

At the same time:

Jon Stewart v Jim Cramer

(ht drudge/breitbart)

The Daily Show With Jon StewartM - Th 11p / 10c

Jim Cramer Interview Outtake Pt. 2

Daily Show Full Episodes
Important Things w/ Demetri Martin

Political Humor
Jim Cramer

For more, see What We Should Learn From Jim Cramer vs The Daily Show's Jon Stewart by Patrick Byrne on DeepCapture Blog

Time to re-open the SEC investigation into allegations that Cramer engaged in stock manipulation quashed by former SEC chairman Chris Cox?

The Washington Post on Chas Freeman's Withdrawal

From today's Washington Post:

Blame the 'Lobby'
The Obama administration's latest failed nominee peddles a conspiracy theory.

FORMER ambassador Charles W. Freeman Jr. looked like a poor choice to chair the Obama administration's National Intelligence Council. A former envoy to Saudi Arabia and China, he suffered from an extreme case of clientitis on both accounts. In addition to chiding Beijing for not crushing the Tiananmen Square democracy protests sooner and offering sycophantic paeans to Saudi King "Abdullah the Great," Mr. Freeman headed a Saudi-funded Middle East advocacy group in Washington and served on the advisory board of a state-owned Chinese oil company. It was only reasonable to ask -- as numerous members of Congress had begun to do -- whether such an actor was the right person to oversee the preparation of National Intelligence Estimates.

It wasn't until Mr. Freeman withdrew from consideration for the job, however, that it became clear just how bad a selection Director of National Intelligence Dennis C. Blair had made. Mr. Freeman issued a two-page screed on Tuesday in which he described himself as the victim of a shadowy and sinister "Lobby" whose "tactics plumb the depths of dishonor and indecency" and which is "intent on enforcing adherence to the policies of a foreign government." Yes, Mr. Freeman was referring to Americans who support Israel -- and his statement was a grotesque libel.

For the record, the American Israel Public Affairs Committee says that it took no formal position on Mr. Freeman's appointment and undertook no lobbying against him. If there was a campaign, its leaders didn't bother to contact the Post editorial board. According to a report by Newsweek, Mr. Freeman's most formidable critic -- House Speaker Nancy Pelosi -- was incensed by his position on dissent in China.

But let's consider the ambassador's broader charge: He describes "an inability of the American public to discuss, or the government to consider, any option for U.S. policies in the Middle East opposed by the ruling faction in Israeli politics." That will certainly be news to Israel's "ruling faction," which in the past few years alone has seen the U.S. government promote a Palestinian election that it opposed; refuse it weapons it might have used for an attack on Iran's nuclear facilities; and adopt a policy of direct negotiations with a regime that denies the Holocaust and that promises to wipe Israel off the map. Two Israeli governments have been forced from office since the early 1990s after open clashes with Washington over matters such as settlement construction in the occupied territories.

What's striking about the charges by Mr. Freeman and like-minded conspiracy theorists is their blatant disregard for such established facts. Mr. Freeman darkly claims that "it is not permitted for anyone in the United States" to describe Israel's nefarious influence. But several of his allies have made themselves famous (and advanced their careers) by making such charges -- and no doubt Mr. Freeman himself will now win plenty of admiring attention. Crackpot tirades such as his have always had an eager audience here and around the world. The real question is why an administration that says it aims to depoliticize U.S. intelligence estimates would have chosen such a man to oversee them.

IMHO, Freeman's self-serving and misleading statement is evidence enough that he was the wrong pick for head of the National Intelligence Council...let alone obvious questions of possible personal financial obligation to Saudi Arabia and/or China, among others, through NGOs and businesses dependent on government favors. Even if he were a "double agent," how could Americans ever be sure who's side he really was on? Patriotism is the last refuge of a scoundrel...the next-to-last: Blaming the Jews.

BTW, I hope someone is looking into a replacement for Director of National Intelligence Dennis Blair. His handling of this nomination was unbelievably stupid. I don't care if he did go to Oxford as a Rhodes Scholar and is a classmate of Bill Clinton. Political analysis is one of the jobs of an intelligence analyst--and he failed his first important test. The nation can't afford to have someone politically dumb as Blair, as DNI.