Friday, July 16, 2010

Paul Allen to give away his billions


This is definitely noteworthy. I remember back in the early days when Microsoft and Gates were heavily criticized for being stingy. It's great to see those days are decades behind us. BBC:
Microsoft co-founder Paul Allen has said he will commit the majority of his estimated $13.5bn (£8.8bn) fortune to philanthropy after his death.

Mr Allen follows fellow co-founder Bill Gates in pledging billions of dollars to projects designed to help others.

He set up a charitable foundation 20 years ago that has given $400m. He has personally donated a further $600m.

Mr Allen founded technology giant Microsoft with Mr Gates in 1975 but left the company in 1983.
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France's Bastille Day celebration marred by human rights controversy



Both Chris in Paris and I wrote recent posts celebrating this year's Bastille Day. Recall that Bastille Day commemorates the fall of the Bastille, pre-revolutionary France's most notorious prison, on July 14, 1789.

Despite its excesses, the French Revolution almost single-handedly created the concept of "les Droits de l'Homme" — the Rights of Man, or "human rights" as we now know them. The Declaration of the Rights of Man of 1789 is a stunning document, a huge advance in the war against man as predator of man.

Sadly, France has America's problem — very high, publicly declared ideals, and a history of failing to meet them. For us, Vietnam; for France, Algeria. For us, the Philippines; for France, Haiti. And in our corporate dealings, we have both corrupted Africa for our benefits.

We all fail; it's how we meet our failure that measures us. From the BBC (my emphasis):
France has staged its annual Bastille Day parade, amid criticism at the presence of some African leaders.

Armies from former colonies celebrating 50 years of independence were invited to join the military parade.

A human rights group has said that some of the troops and leaders should instead be facing trial for war crimes.

Critics also said the move gave the false impression that France granted them independence, when many fought against French rule. . . .

The letter added: "It would be no small paradox that during a celebration of the values of the Republic, these values should be flouted by the presence of torturers, dictators and other predators of human rights, and that instead of pursuing them, France honours them."
Said the French Defence Minister in response:
I don't see the sense in putting ourselves on trial over these questions.
Sound familiar? Africa haunts us all, doesn't it.

Gaius Read More......

What really caused the deficit? Hint: B-U-S-H


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BP's Bob Dudley feels your pain



Yep, apparently the infamous BP Texas City refinery explosion wasn't enough to shake their core belief that they were "doing good." Now that they've seen the results of their budget chopping and a video spoof about their mismanagement of the leak, they are now "deeply affected" and are slumping their shoulders when they come to the office. I think I feel a tear in my eye hearing how they're suffering in the halls of BP. Sniffle, sniffle, sniffle. Read More......

Ahhh, those small town values


Fancy-pants city people can never quite understand the real American values that are only present in small town USA. Just because the median income in this town of 36,000 is $40,000 it doesn't mean this city manager should be paid less than the president of the United States. LA Times:
Now, reports that Bell city officials are among the most highly compensated municipal employees in the nation has left Torres disgusted. The 36-year-old said she cannot fathom how the city manager earns nearly $800,000 in the same tiny working-class town where she struggles to find employment.

"They said there was no budget for me," Torres said Thursday afternoon, sitting with her children at one of the parks she used to clean. "Now I can't pay my bills. I only pay for water, gas and electricity, and those are late. I'm angry. There need to be changes; they need to find jobs for people here."

The Times reported Thursday that Chief Administrative Officer Robert Rizzo earns nearly twice the salary of President Obama, Police Chief Randy Adams about 50% more than Los Angeles Police Chief Charlie Beck and Assistant City Manager Angela Spaccia more than the chief executive for Los Angeles County.
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The current media narrative on the Obama presidency is simply naive


I just don't understand when I read stories like this from good reporters in the NYT:
If passage of the financial regulatory overhaul on Thursday proves anything about President Obama, it is this: He knows how to push big bills through a balky Congress.

President Obama has said that he believes the agenda he has pursued is “the right thing to do for America.”
But Mr. Obama’s legislative success poses a paradox: while he may be winning on Capitol Hill, he is losing with voters at a time of economic distress, and soon may be forced to scale back his ambitions.
He knows how to push big bills through Congress?
Mr. Obama has done what he promised when he ran for office in 2008: he has used government as an instrument to try to narrow the gaps between the haves and the have-nots. He has injected $787 billion in tax dollars into the economy, provided health coverage to 32 million uninsured and now, reordered the relationship among Washington, Wall Street, investors and consumers.

But as he has done so, the political context has changed around him. Today, with unemployment remaining persistently near double digits despite the scale of the stimulus program and the BP oil spill having raised questions about his administration’s competence, Mr. Obama’s signature legislation is providing ammunition to conservatives who argue that government is the problem, not the solution.
He's done what he promised during the campaign?

Well, if you accept the White House talking point that passing anything that contains the title of the thing you promised, is in fact passing the thing itself, then yes the President has been wildly successful. For example, the President said during the campaign that he was going to push for a public option in health care reform, he didn't push for it at all. But he did pass a bill that was called "health care reform," so using the logic of this article, that means he kept his promise.

Or on "Don't Ask, Don't Tell," the President promised a full repeal. In fact, the current legislation does no such thing. But it is legislation entitled DADT, so, again, under this logic, the President has kept his promise.

It's a bit like baking a stone and calling it a cake, then telling your child: "what? - I promised you a cake, here's a cake."

I might expect this kind of naivete from regular Americans who might not follow legislation as closely as those of us inside the beltway - it would be understandable how they might think the HCR bill that passed was in line with what the President talked about during the campaign. But for NYT reporters to buy the White House line that anything is everything, is disturbing.

Take the stimulus. The reporter notes that Obama "has injected $787 billion in tax dollars into the economy." Yes he has. And it wasn't enough, he knew it wasn't enough, and now we have nearly 10% unemployment as a result, hurting Democrats' chances for re-election in the fall, and dooming the country to a listless recovery for years to come. How is that something to laud? Is it better than nothing? Yes. But so is the doctor who gives the patient only half of his needed cancer meds. It's certainly better than nothing. It's also malpractice.

When the economy is on death's door, you don't push for half of what you know is needed. The President did just that. It's what he does on most legislation, and most of his promises. He pushes for half, or at least something far less than what he promised. He pushes for half from the outset. Not at the end when you might have to compromise, but from the beginning. And that's his problem, and the reason, at least one of the reasons, so many Democrats and Independents are unhappy with him. He comes off weak.

Imagine you're selling your house. It's assessed at $400,000, but you and your spouse decide to ask for $420,000, to make a small profit. You receive an offer for $380,000, less than what you wanted. Because you really really really want to nail this deal, at all costs, you counter with $200,000 and the guy accepts. You just sold your house! Congratulations! But because you were so desperate to sell, you didn't even bargain with the guy - you simply negotiated with yourself and offered him a price that you thought he'd take. Sure you got only half of what you could get, half of what you deserved, BUT YOU GOT THE DEAL, just like your promised your spouse you would. And not only that, you didn't have to fight for it! Woo woo! The NYT will surely do a story about what a great home seller you are, since you did exactly what you promised - you sold that house. Read More......

Americans blame Bush, not Obama, for deficit, jobs, Afghan wa


Bloomberg:
Democrats, facing a U.S. electorate angry about the economy and other issues, still have one political asset: George W. Bush.

The former Republican president is blamed more than President Barack Obama for the budget deficit, unemployment and illegal immigration, according to a Bloomberg National Poll conducted July 9-12.

Most surprising is that 60 percent say Bush is primarily responsible for the current situation in Afghanistan. Just 10 percent point to Obama, who has ordered 51,000 additional troops to that country since taking office, doubling the number deployed by Bush.
But Obama isn't exactly surging in the polls. People blame Bush, but they want Obama to fix it. Read More......

Hill memo tells Dems to cheer up


From Sam Stein at Huff Post. These are the main points of the memo.
-- President Obama is much more popular than President Bush was in 2006 or President Clinton was in 1994.

-- Similarly, more voters trust the President and Congressional Democrats to lead the country than trust Republicans to do so.

-- In fact, on what may be the most important issue of this election -- the economy -- Democrats lead Republicans in voter trust, and do so by a similar margin to Democrats in 2006 and a larger margin than Republicans in 1994.

-- And voters don't just trust Democrats on the economy; they support Democrats' legislative efforts to improve the American economy and to move our country forward in other ways. And voters are more likely to support candidates who back the Democratic agenda.

-- Despite voter support for Democrats on key issue tests like the economy, some polls do show narrow support for Republicans over Democrats on the generic congressional ballot. However, Republicans hold only a tenuous lead in such polls, with generic support for Republicans this year nowhere near that of Democrats in 2006.

-- Similarly, Republican cheerleaders have cited polling showing support for GOP control of Congress as an electoral boon; however, such polling has proven an unreliable indicator of electoral results.
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Top House Republicans and top Republican on Senate Banking committee want to repeal Wall Street reform


Let's see TV ads on this. It would also be good to poll every GOP member of the House and Senate and see if they want reform repealed too.
President Obama took on House GOP Leader John Boehner’s call for repealing financial reform before it’s signed yesterday.

But Boehner’s call was backed on "GMA" by Richard Shelby, the ranking Republican on the Senate banking committee.

"We would like to repeal it," Shelby said.

“We have empowered a lot of the regulatory bodies that failed us before and the question is what have they learned,” he said. “And it is not going to create jobs which we desperately need, it is going to cost jobs. It is going to hurt the economy.”
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West Virginia has a new Senator


The Governor has picked a successor to Robert Byrd:
Gov. Joe Manchin is tapping his former chief counsel and a member of a prominent West Virginia family, Carte Goodwin, to succeed the late U.S. Sen. Robert C. Byrd, Democratic officials told The Associated Press on Friday.

Three officials familiar with the governor's pick spoke to The Associated Press on condition of anonymity because they were not authorized to comment ahead of an official announcement.

The Charleston Gazette reported earlier this week that Goodwin had become the front-runner for the appointment.
This is a temporary assignment. The permanent successor will be chosen by the voters in November. Governor Manchin is expected to run for the seat. Read More......

Congress investigating abandoned offshore oil wells


If up to 17% of land-based wells are improperly plugged it sounds reasonable that at least that number would apply in the sea. When you consider how much more complicated the process is underwater, there's a strong likelihood the problem is much higher offshore. We can probably start our timers for screams from the GOP about how expensive this will be and that the costs will be moved on to consumers. How is it that an individual can carry a credit problem or some other legal problem with them for years yet if you are Big Oil, everything can be ignored? Somehow ownership of problems is restricted to the individuals yet the corporate world is fortunate enough to escape similar responsibilities. Even worse is that the Republicans are always there to defend them and make excuses.
A lead congressional committee investigating the Gulf of Mexico oil spill has broadened its inquiry, now checking if tens of thousands of abandoned oil and gas wells are leaking or even being monitored for leaks.

Committee members wrote in a letter Thursday to Interior Secretary Ken Salazar that they were responding to an Associated Press investigation released last week on the 27,000 abandoned wells in the Gulf. The AP reported that the wells are not routinely inspected when plugged or subsequently monitored for leaks.

"These wells could pose an additional danger to the Gulf Coast environment and economy," wrote U.S. Rep. Henry Waxman, D-Calif., chairman of the House Energy and Commerce Committee, and Rep. Edward Markey, D-Mass., who heads the subcommittee on energy and environment. They asked for details on the number of wells as well as leaking and inspection requirements. They asked for an initial reply by Monday.
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Wall Street does victory lap following Goldman settlement


As if there was any doubt who owns the US these days. Wall Street has bounced positively following the settlement that was "only" $550 million dollars. This amount is much less than the previously feared $1 billion. If you listen closely, you can hear the Champagne corks popping all around Wall Street.
Goldman Sachs Group Inc.’s $550 million settlement with U.S. regulators yesterday will benefit the firm by ending three months of uncertainty at an affordable price. Now the rest of Wall Street begins calculating the cost.

Investors welcomed the deal with the Securities and Exchange Commission, saying the company won key points: The cost was below some analysts’ estimates of at least $1 billion; no management changes were required; and Goldman Sachs said the SEC indicated it doesn’t plan claims related to other mortgage- linked securities it examined. The stock’s late surge on anticipation of a settlement yesterday added more than $3 billion to the company’s market value, and it climbed further after New York trading closed.

“You’d have to look at it as a victory for Goldman,” said Peter Sorrentino, senior portfolio manager at Huntington Asset Advisors in Cincinnati, which manages $13.3 billion including Goldman Sachs shares. “This takes a cloud off the stock.”
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Friday Morning Open Thread


Good morning.

There's plenty of big news. The Wall Street reform passed. Oil has stopped gushing into the Gulf of Mexico (for now, anyway.) DC, however, is abuzz about something else this morning: An earthquake. Yes, the DC area had a "minor earthquake" early this morning. It was a magnitude 3.6. There's been no reported damage. I did hear two women discussing it when I was walking Petey this morning. One asked -- and I'm not making this up -- "Did any buildings collapse?" See, we don't get earthquakes very often. And, we didn't feel it.

The Obama family is heading to Bar Harbor, Maine for the weekend. What an excellent choice for a weekend getaway. There's no place like Maine in the summer. And, that part of the state, home to Acadia National Park, is just beautiful. And, the fact that one of my best friends heads the Maine Tourism Bureau has nothing to do with this plug for Maine.

Plus, we've got another heat advisory in DC today. Ugh.

The House and Senate are in recess today.

Okay...let's get started... Read More......

British Conservatives prepare for deep-sea oil drilling


Drill, old boy, drill. It's a government built on oil men, for the benefit of oil men. The posh new PM called in Big Oil and asked them for a wish list and Shetland drilling was right up there. His team is a creepy lot that Dick Cheney might not even be seen with. Well, maybe not that extreme but you get the picture. It's a far cry from the nature-loving Cameron that we saw earlier but it's also what is to be expected from the right. How confident should the British public be in the budget hacking which is led by the former BP CEO who hacked the BP budget which led to the BP refinery catastrophe in Texas? Sure he can cut budgets but when you throw out the in house experts and outsource for cheaper solutions, it doesn't always work out so nicely. It's backwards thinking, but welcome to modern right wing politics.
This approach to the environment has seeped, like a slick, over Cameron's policies. He commissioned another oil man, Tim Eggar, to go and ask the world's oil companies what they want from his government. They won't let me see the findings. But we know oil companies received big tax cuts in the Budget, and the Government's subsequent energy policy paper says life needs to be made "simpler [and] clearer" for oil companies to drill in British waters. Even though it is our addiction to oil that is causing and worsening global warming, the paper says: "We need policies designed for hunting [oil]... We need policies that offer the right incentives to explore for and extract the remaining reserves of oil and gas, and to keep existing fields open for as long as possible."

It pledges to open the oceans off the Shetland Islands to deep-sea drilling. Yes – that's the deep-sea drilling you've seen in every newscast for the past month. Cameron is promising Big Oil tax breaks to drill, baby, drill.

At the same time, projects designed to provide alternatives to oil are being axed. The Financial Times headline put it bluntly: "Climate projects face axe from Cable." (Remember: Saint Vince is a former oil man himself, who worked for Shell through its worst atrocities, including working intimately with the Nigerian military as they were murdering democracy activist Ken Saro-Wiwa.) Some of the very best programmes are expected to go. For example, Mitsubishi and Siemens pledged to come to Britain to make offshore wind turbines if the Government made a £60m upgrade to our ports to make it possible – but Whitehall whispers are that it will be abandoned. Britain will miss out on a headstart in one of the great growth industries of the twenty-first century.
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Oil well stopped in Gulf of Mexico, for now


This is at best a temporary solution. The relief wells still are the primary solution to ending this environmental disaster.
The new cap is at best a temporary solution. Allen said engineers might reopen the seal and collect the flow of oil, though he noted that a new improved containment facility would reduce the amount of crude fouling the Gulf. "It remains likely that we will return to the containment process using this new stacking cap connected to the risers," he said.

BP hopes it can prevent the flow of any more oil into the Gulf until it manages to intercept the well and seal it off permanently with heavy drilling mud and cement some time in August. Suttles told CNN the relief well was about 4ft away.

But the BP executive also acknowledged that the Gulf would be feeling the effects of the spill for some time – a thought voiced by several others. "This is like the very early stages of a bone marrow transplant," Ed Markey, the Massachusetts Democrat who is leading a congressional investigation into the environmental effects of the spill told CNN. "There is still a possibility that the well cannot, in fact, take this pressure, but we are all hoping and praying that it will."

Even if the well does hold, BP and the Obama administration acknowledge there will be tar balls washing up on the beaches of Louisiana, Alabama, Mississippi and Florida for months.
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