Whitman Buys GOP Operative (or more fun in CA!)

Was buying GOP strategist Mike Murphy from Steve Poizner, who was running for the Republican gubernatorial nomination, simply a good investment or was it actually a campaign expense?

Today's New York Times explores a single entry on Meg Whitman's financial disclosures from late 2008: $1 million in an “entertainment/production” company called “Tools Down! Productions.” The company was owned by Mike Murphy widely known for his strategery with McCain and the Guvernator.

Whitman was throwing cash at Mr. Murphy's dream of becoming a Hollywood player to make sure he was not part of the opposition team - and could possibly become a quarterback on hers.

In the summer of 2008, he had been "flirting" with the Poizner campaign, observing focus groups and even a drafting memo for the candidate. But, he was not match for Whitman's bottomless cup of cash and Murphy's yearning for his name in lights.

On Nov. 4, 2008 — two days after Mr. Murphy responded to another entreaty from the Poizner campaign by saying he was “tired of politics” and would definitely not be available to work for it — Ms. Whitman signed a partnership agreement with Mr. Murphy, taking an ownership stake in his movie company, according to her campaign.

He was not tired long.

In the end, Mr. Murphy’s political hiatus went into intermission quickly. By late 2009, he had already returned to politics. He became a “senior adviser” to his benefactor, Ms. Whitman, taking in fees of $665,000 for his first six months, according to her latest campaign finance report.

But, is this kosher?

A business investment, as opposed to a cash gift, offers tax advantages, including the ability to write off losses, as well as the avoidance of gift taxes. If the investment’s purpose was actually political, there are also questions about whether it should have been legally disclosed as a campaign expense.

We'll have to see what the experts say. (I am waiting to hear back.)

Turns out Hollywood types think Murphy has a talent for Tinseltown. We now know he most definitely knows how to write a script that pays. Read the rest of this post...

Fruits and vegetables less nutritious due to factory farming

Here's another good reason to grow your own (if you can) or buy from organic markets when affordable. MSNBC:

While we've been dutifully eating our fruits and vegetables all these years, a strange thing has been happening to our produce. It's losing its nutrients. That's right: Today's conventionally grown produce isn't as healthful as it was 30 years ago — and it's only getting worse. The decline in fruits and vegetables was first reported more than 10 years ago by English researcher Anne-Marie Mayer, PhD, who looked at the dwindling mineral concentrations of 20 UK-based crops from the 1930s to the 1980s.

It's happening to crops in the United States, too. In 2004, Donald Davis, PhD, a former researcher with the Biochemical Institute at the University of Texas, Austin, led a team that analyzed 43 fruits and vegetables from 1950 to 1999 and reported reductions in vitamins, minerals, and protein. Using USDA data, he found that broccoli, for example, had 130 mg of calcium in 1950. Today, that number is only 48 mg. What's going on? Davis believes it's due to the farming industry's desire to grow bigger vegetables faster. The very things that speed growth — selective breeding and synthetic fertilizers — decrease produce's ability to synthesize nutrients or absorb them from the soil.

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Pentagon responds to my post about segregating gay troops

Apparently, the Pentagon feels I'm not being very helpful. Read the rest of this post...

AT&T; and Apple hit with class action monopoly abuse lawsuit

As much as I love Apple products, the exclusive partnership with AT&T; is not what we should expect or condone in this day and age. Even over here in "socialist Europe" there are multiple providers for the iPhone in each country. The federal government should have stepped in immediately but this is life in the modern US where monopolies are embraced even though it's bad for consumers.

The lawsuit consolidates several filed by iPhone buyers starting in late 2007, a few months after the first generation of Apple's smart phone went on sale.

An amended complaint filed in June 2008 takes issue with Apple's practice of "locking" iPhones so they can only be used on AT&T;'s network, and its absolute control over what applications iPhone owners can and cannot install on the gadgets.

The lawsuit also says Apple secretly made AT&T; its exclusive iPhone partner in the U.S. for five years. Consumers agreed to two-year contracts with the Dallas-based wireless carrier when they purchased their phones, but were in effect locked into a five-year relationship with AT&T;, the lawsuit argued.

The actions hurt competition and drove up prices for consumers, the lawsuit claims.

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Lobbyists get concealed carry license in TX to avoid long lines into state capitol building

Chris wrote earlier about the lovely notion of bringing a gun to the beach. Well, I hear from a friend that lobbyists visiting the Texas state capitol building have started applying for concealed carry licenses. Why? Because as you pass through the metal detector to get into the capitol building, there's a separate - basically empty - line for people who have a license to carry a concealed weapon. So the lobbyists are applying for the license in order to take the short line.

Of course, what's really ironic is that this insane law seems to be forcing more people to bring guns into the state capitol building. I hope that makes the lawmakers who voted for this feel more secure. Especially in the time of the Teabaggers. Read the rest of this post...

More evidence of deflation

I recently wrote about deflation — what it is and what it does. Here's more on how close we are to seeing it soon. From Krugman's Monday column (my emphasis):

Back in 2002, a professor turned Federal Reserve official by the name of Ben Bernanke gave a widely quoted speech titled “Deflation: Making Sure ‘It’ Doesn’t Happen Here.” Like other economists, myself included, Mr. Bernanke was deeply disturbed by Japan’s stubborn, seemingly incurable deflation, which in turn was “associated with years of painfully slow growth, rising joblessness, and apparently intractable financial problems.” This sort of thing wasn’t supposed to happen to an advanced nation with sophisticated policy makers. Could something similar happen to the United States?

Not to worry, said Mr. Bernanke: the Fed had the tools required to head off an American version of the Japan syndrome, and it would use them if necessary.

Today, Mr. Bernanke is the Fed’s chairman — and his 2002 speech reads like famous last words. We aren’t literally suffering deflation (yet). But inflation is far below the Fed’s preferred rate of 1.7 to 2 percent, and trending steadily lower; it’s a good bet that by some measures we’ll be seeing deflation by sometime next year. Meanwhile, we already have painfully slow growth, very high joblessness, and intractable financial problems. And what is the Fed’s response? It’s debating — with ponderous slowness — whether maybe, possibly, it should consider trying to do something about the situation, one of these days.

And a useful picture or two. The tail of the line below looks like less than 1% to me.


On this one, the vertical axis is monthly inflation at an annual rate; the horizontal shows months starting Jan 2008.


Click the links to read the surrounding text. Time to prepare, I think.

GP Read the rest of this post...

GOP talking points: BP and Obama worked together to cause oil spill

Um, I think there may be a gas leak in the GOP headquarters because these people are barking mad. Does everything have to be a conspiracy? Think Progress has more. Read the rest of this post...

Tar balls hitting New Jersey beach

Scientists have previously said the odds of oil from the Deepwater leak reaching this far north are very remote. Whether it's from another well leak or dumping is hard to say until scientists test the tar balls. Now that people are being exposed to tar balls washing up on beaches via the news we will probably see a lot more stories like this emerge. Hopefully this will raise awareness of the environmental problems that have previously been ignored. Lots more photos and videos inside the link from this New Jersey beach. Read the rest of this post...

'Open carry' gun extremists bring weapons to the beach

Ooohhhh, so macho and manly.

More than a dozen people packing pistols on their hips strolled down the Hermosa Beach strand Saturday, picking up garbage and distributing fliers about the rights of gun owners.

The event was part of a burgeoning and controversial "open carry" movement nationwide promoting the right to carry guns in public. Although carrying a concealed weapon is illegal without a permit, California allows people to openly carry guns in many areas as long as they are unloaded, though they can keep ammunition with them.

Members of South Bay Open Carry, which organized the beach cleanup, said they hope such events will dispel misgivings about gun owners and make carrying a handgun in public more acceptable. Organizers said they turned the event into a cleanup to demonstrate that they are contributing to the community.

"Just because somebody is carrying a gun doesn't mean that they're a criminal," said Scott Brownlie, a 25-year-old firefighter who stood outside Peet's Coffee & Tea with an unloaded Colt M-4 Carbine slung across his back. "If a lot of people were allowed to carry more … there would be a lot less crime."

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Does the White House not understand that a black president cannot institute a policy of segregation? Apparently they don't.

Joe and I have friends who don't understand why we get so upset with President Obama, who we supported in the primaries. This post is an excellent example of why we do.

The Pentagon confirmed on Friday that it is considering segregating gay troops, specifically with regards to creating separate showers and/or barracks for straight and gay troops.

Advocate reporter Kerry Eleveld just transcribed the following quote from Pentagon spokesman Geoff Morrell at Friday's briefing about the new "Don't Ask, Don't Tell" survey:

"We think it would be irresponsible to conduct a survey that didn’t try to address these types of things. Because when DADT is repealed, we will have to determine if there are any challenges in those particular areas, any adjustments that need to be made in terms of how we educate the force to handle those situations, or perhaps even facility adjustments that need to be made to deal with those scenarios."

Segregation, folks. Separate but equal. In the year 2010. And from a black president, no less.



How do you feel about the segregation of blacks in the first half of the 1900s? Did you think it was disgusting that African-Americans weren't permitted to drink out of our fountains, swim in our pools, sit at the front of the bus, share the same bleachers at a game, as the rest of us? Then why is it okay to even talk about segregating gays and lesbians? What would have happened to an Obama administration spokesman who talked about segregating blacks?



They're talking about the possibility of segregation, people. Of instituting a policy of separate-but-equal in the year 2010, under a Democratic president.

It's what they did to Barack Obama's father. Does no one in the White House get the irony here? And does no one understand the political danger here? Does Jim Messina really want to see people showing up at Obama 2012 campaign rallies with the word "Colored" written in ink on their foreheads? With signs saying "Barack, would you segregate your own father?" and "George Wallace Obama"? Or how about simply a crowd of protesters at every event - and every fundraiser the President does for congressional races - wearing signs saying "I am a man"?



A Pentagon spokesman had the audacity to suggest that segregation was an option, and mind you this wasn't the first time that someone at DOD has suggested it. President Obama is the commander in chief. He's also the President of the United States. If one of his own administration spokesmen says segregation is an option, and President Obama doesn't shut that conversation down immediately, and fire the bigot who had the audacity to even suggest such a thing - and he clearly hasn't, as this segregation talking point keeps coming out of this Obama administration - then President Obama is to blame.

Still wonder why people are so ticked off? Ask a black person how they feel about segregated drinking fountains, then get back to us.

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Wash Post: Gulf spill hasn't impacted public policy or public opinion

That's what the Washington Post is reporting:

Traditionally, American environmentalism wins its biggest victories after some important piece of American environment is poisoned, exterminated or set on fire. An oil spill and a burning river in 1969 led to new anti-pollution laws in the 1970s. The Exxon Valdez disaster helped create an Earth Day revival in 1990 and sparked a landmark clean-air law.

But this year, the worst oil spill in U.S. history -- and, before that, the worst coal-mining disaster in 40 years -- haven't put the same kind of drive into the debate over climate change and fossil-fuel energy.

The Senate is still gridlocked. Opinion polls haven't budged much. Gasoline demand is going up, not down.

I hope this isn't a reflection of the idea that our leaders can't solve problems. GOP leaders do seem determined to instill that mindset in the American people by refusing to help solve any of the problems the U.S. is facing. The worst part is that the GOPers created a lot of the problems (i.e. the economy and the weak regulations that led to the oil spill, the list goes on and on) that they won't help solve.

Also, we've heard mixed messages from elected officials from Louisiana, Mississippi and Alabama. On one hand, they want more federal aid. On the other hand, they want more drilling, even though we now know that it's not safe. Read the rest of this post...

Credit scores drop to new lows in US

Borrowers may have been guilty of taking loans that were impossible to pay back but why are they being so heavily penalized compared to those who created this funny-money scheme? The banks have received an easy ride in this story and it's not likely to change. The Obama administration has to understand that these differences have not gone unnoticed by the public. How is it that the banks are emerging so strong, so quickly yet everyone else is suffering with little chance of bouncing back soon?

The credit scores of millions more Americans are sinking to new lows.

Figures provided by FICO Inc. show that 25.5 percent of consumers — nearly 43.4 million people — now have a credit score of 599 or below, marking them as poor risks for lenders. It's unlikely they will be able to get credit cards, auto loans or mortgages under the tighter lending standards banks now use.

Because consumers relied so heavily on debt to fuel their spending in recent years, their restricted access to credit is one reason for the slow economic recovery.

Read the rest of this post...

Monday Morning Open Thread

Good morning.

It was six months ago today when the massive 7.0 earthquake destroyed much of Haiti. There are going to be a number of stories today about that country's recovery, such as it is.

Today, Obama is meeting with the President of the Dominican Republic, Leonel Fernandez.

Congress returns today from the July 4th recess. The Senate has to take up unemployment insurance extension. Hopefully, some of the GOPers who are blocking the unemployment extension learned during the recess that there are still a lot of people hurting because of the economic crisis they helped create -- not that they care about people ho are hurting. Plus, the Senate has to pass the Wall Street reform bill, which most of the GOP caucus vehemently opposes. They won't bite the hand that feeds (or owns) them.

It's looking less and less likely that the Senate will take up the Defense authorization bill in July. The DADT repeal compromise is included in that bill. So, the underlying bill could hit the Senate floor in September. There will be efforts to strip out the DADT repeal language. And, that Pentagon survey on DADT continues to generate controversy. You have to keep asking: What were they thinking? And, it really sounds like the forces opposed to repeal still carry a lot of sway at the Pentagon.

So, busy week ahead. Read the rest of this post...

Bombings kill dozens in Uganda

There are few details now but authorities believe there is an al-Qaeda link.

Police Chief Kale Kaihura originally said at least 30 people had been killed, though the toll could be higher.

Later, a senior police official at the scene said that 64 people had been killed 49 from the rugby club and 15 at the Ethiopian restaurant. The official said he could not be identified.

Kaihura said he suspected al-Shabab, that country's most hardline militant group. Its fighters, including two recruited from the Somali communities in the United States, have carried out multiple suicide bombings in Somalia. If al-Shabab was responsible, it would be the first time the group has carried out attacks outside of Somalia.

Simultaneous attacks are also one of al-Qaida's hallmarks. In Mogadishu, Somalia, Sheik Yusuf Sheik Issa, an al-Shabab commander, told The Associated Press that he was happy with the attacks in Uganda. Issa refused to confirm or deny that al-Shabab was responsible for the bombings.

Read the rest of this post...

Spain wins World Cup

The octopus guessed correctly, again. During the 2010 World Cup, the octopus picks were all correct.

Andres Iniesta struck a dramatic winner late in extra time to give Spain World Cup glory for the first time but condemned the Netherlands to their third defeat in a final.

Iniesta drilled his right-foot strike across goal - but the Dutch were incensed after referee Howard Webb had failed to award their side a corner moments earlier when a free-kick took a sizeable deflection off Cesc Fabregas.

However, Euro 2008 champions Spain, who conceded only two goals during the tournament, deserved their victory after gradually taking a grip on a tense and bad-tempered contest that produced 14 yellow cards with Johnny Heitinga sent off on 109 minutes after picking up a second yellow card.

The Dutch, who lost in the 1974 and 1978 finals, were bidding to become the first side since Brazil in 1970 to go through World Cup qualifying and the finals unbeaten.

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British banks cite PWC study that claims $1 trillion in costs if bank reform

If only the study they were promoting wasn't written by the consulting company that does millions upon millions in business with many of the banks who were bailed out during the banking crisis. I guess making that little link wasn't considered important enough to mention. How is it possible to overlook the fact that PWC includes was being paid handsomely by the dysfunctional bankers who caused the global recession?

Maybe someone could ask what PWC was actually doing with those customers who were supposed to have someone checking their books. But again, that industry is as corrupt and rotted as the banks themselves. Shouldn't the public be made aware of these connections? It's disappointing that The Guardian also failed to mention this very important business link in it's article.

The banks, through the British Bankers' Association (BBA), intend to tell the chancellor that when the Bank of England pulls the plug on these liquidity programmes some £400bn will be withdrawn from the UK's banking system. The schemes were put in place to help get money flowing between banks after the credit crunch, but are due to end in 2012.

The banks have also calculated that demands by international banking regulators in Basle that they bolster their capital will require the UK's banking industry to hold an extra £600bn of capital that might otherwise have been deployed as loans to businesses or households.

The banks are drawing on research conducted by PricewaterhouseCoopers, some of which was used to appeal to G20 leaders ahead of last month's meeting to delay regulatory changes, in setting out their concerns to the chancellor. The research claims that two percentage points would be sliced off UK economic growth because of proposed regulations, driving the country into a double-dip recession.

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