If protectionism is crack, what's easy credit?

With Davos happening in the middle of global stimulus plans being debated/rolled out, it's understandable that everyone and their mother is talking about moving forward. Politicians from around the world who have implemented and continue to support protectionist plans are suddenly up in arms about the US plan that asks for some protectionist measures. People want open markets. Got it. I also live in this world so see plenty of protectionism, everywhere. Some might even argue that the constant bashing of Microsoft around the world by governments is a form of protectionism, but pick any country (who is making a fuss about protectionism) and it doesn't take long to roll out a number of real life examples of protectionism.

I also get what the Dallas Fed President Fisher is saying about protectionism being addictive but really, this is so overblown as it stands today. Maybe Fisher wants to get excited about a problem that doesn't yet exist (and ignore everyone else) but I really wish people like Fisher would have been as adamant about the high times of easy credit that brought us here in the first place. Some did see this problem happening and they were dismissed as too gloomy. Call me when these people start addressing the problems they helped create and then I might give a damn.

Dallas Federal Reserve President Richard Fisher warned on Monday against "Buy America" provisions in a proposed fiscal stimulus law and said it could lead to devastating trade protectionism.

"Let me just be blunt. Protectionism is the crack cocaine of economics. It may provide a high. It's addictive and it leads to economic death," Fisher told C-Span television in an interview for its "Washington Journal" program.

President Barack Obama seeks a $825 billion stimulus plan to end the country's yearlong recession. U.S. lawmakers are debating rules that will insist that public money is spent on U.S-made products, although the White House has already said it will review any Buy America provisions.

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WH Official: GOP Senator Gregg to Be Nominated Tuesday for Commerce Job

Washington Post:

President Obama will nominate Sen. Judd Gregg (R-N.H.) tomorrow for commerce secretary, a White House official said tonight.

The nomination is the last for Obama's Cabinet. New Mexico Gov. Bill Richardson (D) was nominated Dec. 3 to head the Commerce Department, but he withdrew his name from consideration a month later because of a federal investigation involving state government contracts.

Gregg appears willing to take the Commerce job, but he announced one condition today: His replacement in the Senate had to be a Republican.

There's clearly some grand plan here - by both Obama and Gregg (though each may have a separate plan) - but I'm not sure I see it yet. Read the rest of this post...

ESPN issues apology for homophobic NBA ad, ad pulled

Yesterday morning I wrote about a new ESPN/NBA ad that seemed awfully homophobic. HRC reports that ESPN immediately recognized the problem, pulled the ad, and issued an apology. Excellent work by HRC, and good job by ESPN as well. Most companies dawdle when things like this come up (cough, Snickers), but ESPN stepped up to the plate. And for that they get our thanks.

This past weekend brought us the latest installment of advertisers using homophobia to sell their products. This time, the ad was on ESPN promoting its NBA programming. The ad features NBA star Shaquille O'Neal rejecting the offer of a “fist kiss” from sports commentator Mike Breen. The spot is generating significant concern in the LGBT community for its portrayal of affection among men as “disgusting”.

We've contacted a member of ESPN's diversity department who's worked with HRC for a long time. She assured us that they were taking the matter seriously and that the ad would be getting pulled and an apology issued.

It seems that the ad was approved lower down the food chain and, once reasonable folks became aware of it at HQ, they saw the offense.

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College Republicans are bitchin' cool

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The day the Google stopped

Some of you may have noticed that this past Saturday morning every single site on the Internet was blacklisted by Google. If you did a search for anything on Google, the results would all warn you that the site was dangerous. Well, here's Google's explanation:

If you did a Google search between 6:30 a.m. PST and 7:25 a.m. PST this morning, you likely saw that the message "This site may harm your computer" accompanied each and every search result. This was clearly an error, and we are very sorry for the inconvenience caused to our users.

What happened? Very simply, human error. Google flags search results with the message "This site may harm your computer" if the site is known to install malicious software in the background or otherwise surreptitiously. We do this to protect our users against visiting sites that could harm their computers. We maintain a list of such sites through both manual and automated methods. We work with a non-profit called StopBadware.org to come up with criteria for maintaining this list, and to provide simple processes for webmasters to remove their site from the list.

We periodically update that list and released one such update to the site this morning. Unfortunately (and here's the human error), the URL of '/' was mistakenly checked in as a value to the file and '/' expands to all URLs.

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Stimulus battle moves to the Senate

It's game on in the U.S. Senate for the economic recovery package. And, the Senate Republicans are planning their same old games. Mitch McConnell and his crew of GOP obstructionists are gearing up. The question is how much more damage can these Republicans do to the U.S. economy?:

President Barack Obama predicted a "difficult next few days" as the Democratic-controlled Senate on Monday debated an almost $900 billion stimulus package of federal spending and tax cuts amid Republican opposition.

Senate Majority Leader Harry Reid of Nevada said he hoped to push the measure through the chamber by Friday after considering a stack of amendments offered by Republicans as well as members of his own party.

But Republicans -- who last week withheld support from a similar measure in the Democratic-controlled House of Representatives -- appeared ready to fight to put more emphasis on tax cuts and less on new spending.

"We're not trying to prevent a package from passing. We're trying to reform it -- reformulate it," Senate Minority Leader Mitch McConnell told a Capitol Hill news conference.

Right. And, the American people should trust Senate Republicans because?

Meanwhile, ads are now running in the states of several GOP Senators urging support for the stimulus bill. The ads began last week in Alaska, Iowa, New Hampshire and Maine. Now, they're up in Indiana and Missouri, too. AFSCME, SEIU, MoveOn and Americans United for Change are behind this effort:
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Obama orders full review of FDA

Again, what a difference a few days can make. Food safety was never a consideration during the Bush years but Obama is determined to focus on consumers and not just business.

More than 500 people have been sickened and at least eight may have died with authorities faulting Peanut Corp. of America. Officials said the company shipped products that initially tested positive for salmonella after retesting and getting a negative result.

The outbreak has led to a massive recall of products ranging from ice cream to cookies.

"I think that the FDA has not been able to catch some of these things as quickly as I expect them to catch," Obama said in an interview aired Monday on NBC's "Today" show. "And so we're going to be doing a complete review of FDA operations."

The president said Americans should be able to count on the government to keep children safe when they eat peanut butter and that includes his 7-year-old daughter Sasha.

"That's what Sasha eats for lunch probably three times a week. And you know, I don't want to have to worry about whether she's going to get sick as a consequence to having her lunch," Obama said.

The FDA has asked the Justice Department to launch a criminal investigation into Virginia-based Peanut Corp. of America.

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Under pressure, Mormon leaders finally admit spending almost $200,000 of church money on Prop 8

It's getting really hard to believe Mormon leaders. They're not really heeding that commandment about lying. After downplaying their role in Prop. 8, the latest campaign filings show the church did spend a considerable amount of its own money.

Teddy Partridge at Firedoglake has the details, which came out over the weekend:

In a Friday filing with California's Fair Political Practices Commission, the Mormon Church listed almost $190,000 in previously unreported expenses in support of last year's successful campaign to eliminate marriage equality in California.

The report, filed with the secretary of state's office, listed a variety of California travel expenses for high-ranking members of the Church of Jesus Christ of Latter-day Saints and included $20,575 for use of facilities and equipment at the church's Salt Lake City headquarters and a $96,849 charge for "compensated staff time" for church employees who worked on matters pertaining to Prop. 8.

It seems as if the complaint filed with the FPPC by Californians Against Hate was not as specious as the Mormons initially charged:

Up until Friday, the Mormon church had denied any direct financial support for the campaign beyond a reported $2,078 spent for bringing church Elder L. Whitney Clayton to California.

Church officials complained that Karger's complaint was full of errors and that the church had "fully complied" with California law.

In other words, the Mormon Church had no intention of modifying their expense reporting until pressed by Californians Against Hate and the subsequent -- and ongoing -- FPPC investigation.

The Mormon Church deserves the scrutiny its been getting. The leaders have not been honest. Teddy poses the important question: what else is the Mormon Church hiding? We have to find out.

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Report: Japanese whalers turn violent against humans

Who would ever guess that the harpoon shooting crew members would resort to violence against conservationists?

Two members of the Sea Shepherd Conservation Society were lightly injured in the early morning fracas in heavy seas about 2,000 miles (3,200 kilometers) southeast of the Australian state of Tasmania, said Paul Watson, the group's leader.

A spokesman for the whalers said he had no information on the claims.

The group — which routinely harasses the Japanese whaling fleet during its annual hunt in the Antarctic Ocean — sent a helicopter and two inflatable boats toward one of the ships in the Japanese fleet.

The whalers began blasting conservationists on one raft with a water cannon, knocking one man off his feet and leaving him with cuts and bruises, Watson told The Associated Press by satellite phone.

Another protester was hit in the face with a large chunk of metal lobbed from a harpoon boat. He was wearing a shield on his helmet, but still suffered bruises, Watson said.

The Japanese also aimed a "military grade" noise weapon that can cause deafness and vomiting at the Sea Shepherd crew, Watson said. Some felt its vibrations but were too far away to be otherwise affected, he said.

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Comcast broadcasts porn instead of Super Bowl

Now here is a time when I wish we had the old FCC around so they could throw the book at Comcast. I could care less about the broadcast mistake but I really dislike Comcast. Between their internet business practices and the time their installation goon pushing my father (who was in a wheelchair and dying) to force him to sign the install papers - followed by their customer service team not caring - I wish Comcast all the bad luck the world has to offer. Even France Telecom service seems professional compared to Comcast.

Tucsonans watching the Super Bowl got more action than they bargained for when a short clip from an adult movie channel interrupted Comcast's feed with full male nudity during the final moments of the game.

Officials at Comcast said about 30 seconds from Club Jenna, an adult cable television channel, were shown on the local Super Bowl telecast. The company was still working Sunday night to figure out how it happened.

Comcast had "no idea" at the time it happened how the porn may have gotten into its feed, said Kelle Maslyn, a company spokeswoman.

The Star newsroom was flooded with calls from irate viewers who said that the porn cut into the game with less than three minutes left to play, just after Arizona Cardinals player Larry Fitzgerald scored on a touchdown pass from Kurt Warner to put the team in the lead.

Callers said that the clip showed a woman unzipping a man's pants, followed by a graphic act between the two.

"I just figured it was another commercial until I looked up," said Cora King of Marana. "Then he did his little dance with everything hanging out."

Jeanene Piek said she was outraged that her granddaughter had seen the clip.
"I was in a state of shock. I am totally disgusted," she said.

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The good news is, Americans are saving again

The bad news is, Americans are saving again.

Economists call it the "paradox of thrift." What's good for individuals — spending less, saving more — is bad for the economy when everyone does it.

On Friday, the government reported Americans' savings rate, rose to 2.9 percent in the last three months of 2008. That's up sharply from 1.2 percent in the third quarter and less than 1 percent a year ago.

Like a teeter-totter, when the savings rate rises, spending falls. The latter accounts for about 70 percent of economic activity. When consumers refuse to spend, companies cut back, layoffs rise, people pinch pennies even more and the recession deepens.

The downward spiral has hammered the retail and manufacturing industries. For years, stores enjoyed boom times as shoppers splurged on TVs, fancy kitchen decor and clothes. Suddenly, frugality is in style.

As the stimulus plan is debated in Congress and the GOP tries to trash it, remember who brought us to this state in the first place. Republicans thought that easy credit could replace increasing wages but they proved again that they know nothing about building an economy and everything about making business rich. How about prosperity for everyone who helps build a real economy? Read the rest of this post...

Pope promotes to Bishop man who said Hurricane Katrina was God's revenge on New Orleans for being too gay-friendly

I try to avoid words like "hateful ass" when speaking of the Pope. He's not my pope, but he is somebody's. And, in spite of my differences with the Catholic church leadership over "minor" issues like pedophilia (I'm against it), I try to live and let live. But when Pope Prada embraces a Holocaust denier and a guy who thinks New Orleans should have been destroyed, all in one week, it does make one wonder whether electing a former Hitler Youth to Pope was such a wise idea after all. Read the rest of this post...

Is Obama backing away from promise to lift the ban on gays in the military?

A somewhat disturbing article in yesterday's Boston Globe made it sound like President Obama is reneging on his unequivocal promise to lift the ban on gays in the military.

The Obama administration is telling the Pentagon and gay-rights advocates that it will have to study the implications for national security and enlist more support in Congress before trying to overturn the so-called "don't ask, don't tell" law and allow gays to serve openly in the military, according to people involved in the discussions.

They said Obama, who pledged during the campaign to overturn the law, does not want to ask lawmakers to do so until the military has completed a comprehensive assessment of the impact that such a move would have on military discipline. Then, the president hopes to be able to make a case to members of both parties that overturning the 1993 law would be in the best interest of national security.

There are a few problems here.

1. Why do a study on the effect lifting the ban will have on "national security"? Obama has already committed to lifting the ban. Yet now, after the fact, we're looking at whether it's a good, safe idea? That doesn't send a very confident message about Obama's decision-making - investigating the wisdom of a decision after he's already made it.

2. If that study says that lifting the ban will harm national security (and we all know the results of the study will be leaked), then will Obama really still lift the ban? What's to guarantee that the study won't completely undercut Obama's promise?

3. Does anyone doubt for a minute what conclusion the Pentagon brass is going to reach in this study about whether or not it's a good idea to lift the ban? If the intent is to use this study to lobby Congress in favor of lifting the ban, the study will have the opposite effect if it reaches the wrong conclusion.

4. It almost sounds as if Obama is planning on using the study to help him determine whether he even wants to lift the ban at all - again, in direct contradiction to his repeated promises on the issue.

I think Obama is wise to get his ducks in a row, and wise to court Congress, before trying to lift the ban (and in any case, the ban is now written into law, so Obama will need Congress in order to lift it). But this decision to have the Pentagon do a "study" on the national security implications of lifting the ban sounds like we're walking into a bit of a buzz saw. It also sounds, from the article, like Obama hasn't quite made up his mind, and may actually be waiting to see what the study says before making up his mind as to whether to proceed - if so, that would be a major, and devastating, flip-flop.

We have no idea what the Obama administration is actually planning, as we're forced to rely exclusively on news stories to read the tea leaves. Joe and I have been waiting two years to hear from Obama's head of gay and lesbian outreach, in spite of repeated requests to meet, talk, or just give us an occasional royal wave from a safe distance. Gay and lesbian Obama supporters shouldn't have to divine Obama's civil rights policy from two poorly written paragraphs in a newspaper, but that's where we still are.

Obama is going to need to learn the concept of outreach if he is going to govern effectively. Relationships aren't built in a vacuum. Distrust, and misunderstandings, however, are.

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Monday Morning Open Thread

Good morning.

I broke my rule about watching the TODAY Sbow first thing in the morning...only because I wanted to see the Obama interview. The President is looking pretty confident -- and not wearing a tie, which we now know drives the Bush people crazy.

And, yes, that was some finish to the Super Bowl. Wow.

Yesterday, the temperature was in the 60s here. It was beautiful. Tomorrow, it's going to snow. Ugh.

Okay, let's get it started... Read the rest of this post...

20 million jobless?

Most countries are going to have serious problems with the recession, but how easy is it going to be to re-employ 20 million workers? The days of easy credit and shopping 'til you drop are over for the West and that's seriously bad news for the Beijing government. Complicating the matter is Beijing's consistent fudging of the numbers, so it could actually be higher than 20 million.

About 20 million migrant workers have lost their jobs because of the economic downturn, a senior official said on Monday, after the government warned that rising unemployment could fuel social unrest.

Chen Xiwen, Director of the Office of the Central Rural Work Leading Group, told a news conference on Monday that official surveys found that about 15.3 percent of the total migrant labour pool working in cities had returned jobless to the countryside.

"It's fair to say that the Chinese government takes very seriously the issue of employment of rural migrant workers," he said.

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UK looking for corporate tax income

This is a similar problem in the US as well. Naturally it's not possible as an individual, but for corporations, it's the status quo. Even worse, the GOP will support the corporate efforts to hide income and avoid taxes because that's how they think you grow an economy. Business is doing this all over the world yet nobody ever calls them out. As regular people are left with the bill for the recession and corporate leaders still have their pockets stuffed with cash from those high times, perhaps it's time to re-think what's fair.

An extensive Guardian investigationhas examined the accounts of the UK's biggest companies - many of them household names - and discovered a series of sophisticated tax strategies which, critics say, amount to an almost unstoppable tide of perfectly legal corporate tax avoidance.

The veil of confidentiality that covers these tax avoidance schemes is so difficult to penetrate that nobody knows exactly how much tax goes missing each year. But HM Revenue & Customs estimated that the size of the tax gap could be anything between £3.7bn and £13bn. The Commons public accounts committee put it at a possible £8.5bn and the TUC said £12bn.

UK listed companies are not required to set out exactly how much UK corporation tax they actually hand over to HM Revenue & Customs. When the Guardian asked each FTSE 100 company to provide this information only two offered a response.

Similarly each company was asked what its official policy on so-called tax planning is and how this is implemented. No company was prepared to answer the question directly. However, the investigation, which we publish over coming days, has established that:

• The UK-based drinks giant Diageo plc has transferred ownership of brands worth billions of pounds, including Johnnie Walker, J&B; and Gilbey's gin, to a subsidiary in the Netherlands where profits accrued virtually tax-free. Despite average profits of £2bn a year, it paid an average of £43m a year in UK tax - little more than 2% of its overall profits.

• Two major drug firms have shifted ownership of their brands to tax havens in the Caribbean. Their UK operations can then be made to pay royalties for the use of the trademarks, reducing their profits and the amount of tax due in this country.

• An internationally renowned corporation has structured itself so that it is now simultaneously a British public company, tax-resident in Amsterdam, but whose brands are Swiss-owned.

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Snow in Paris

I've never seen more than a light dusting of snow in Paris and while this hardly compares to anything I experienced while living in Ohio or the East Coast, it's as much as I have ever seen on the ground here. It's shifting to rain so the snow will probably be gone by the end of the day, before the cats wake up for their early evening flurry of activity. That lasts for maybe 15 minutes before the next nap begins. Read the rest of this post...

Why not ask free trade politicians to put some skin in the game?

The Post has another "protectionist" debate article today and this issue has me a bit worked up today. It's too easy for politicians to preach the benefits but for many outsiders, it appears to be more of a future employment sales pitch. Think about Reagan who did a speaking tour of Japan for millions shortly after leaving the White House. At the time, Japan was the future and ravaging US business. His speaking tour seemed treasonous to many as he cashed in on his popularity though he did little to help US workers during the fight for their future.

Even Bill Clinton flogged the free trade story and as we're now discovering, has made millions speaking and consulting for other countries who want to do business with the US. For the politicians, it's much too easy to preach the benefits without walking in the shoes of others who are left behind. How do people like Clinton expect Americans to feel about free trade as he sits on $100 million made over eight years?

Trade is good and I'm the last person to be against global trade but the system as it stands today needs work. Despite what some are suggesting, it's not just emerging today because of the recession. It's been at a low simmer for years because it's been avoided by political leaders around the world. We need politicians to back off of the easy money to do lobbying until they provide something more for average Americans (or Europeans or ...) who are left behind in this transition. To the untrained eye it looks like padding the resume for future employment rather than sound policy for working families.

If they wonder why people react so poorly and demand protection, they need to look in a mirror and ask themselves what they're doing to feed this fury. It's easy to become cynical about the benefits when the only benefits you see are for big business and big name politicians. It seems fair that if they're going to sell the painful idea of free trade, they ought to follow it up with doing real work to help with that transition instead of lining their pockets lobbying for foreign governments who want to sell into the US. How about helping sell American overseas since there are so many long term benefits? Read the rest of this post...