The Republic’s Verdict

December 7, 2008

Crime against Humanity – Judgment

Evidently from the presentation of Marine Sergeant Larry Hutchin’s case,

There are no winners in a war.

Everyone is a loser.

Not surprisingly, laws and justice are applicable only for those at the bottom of the hierarchy with a choice between disobedience to one’s own conscience and obedience to the chain of command beginning from the Commander-in-chief during such operation.

The root cause as witnessed by the world is the ideology and deceptive strategy behind the illegal invasion of Iraq that produced the massive casualties on both the American and Iraqi sides.

In particular:

The premise of war falsely suggesting and,

Misguiding United Nations with a claim, that Iraq was in possession of weapons of mass destruction (WMD).

Misleading American public by associating Iraq with September 11, attack.

Dismissal of dissent with slander such as unpatriotic, traitor and even a terrorist.

Further, demonstrating with a deliberate exposure of CIA overt operative Mrs.Valerie Plame in vengeful act against her spouse and former Ambassador Joseph Wilson, an opponent of the war.

In addition, non-compliance with the judiciary process in the matter of Mrs. Valerie Plame.

Conducting mandatory and undemocratic public survey to galvanize support for the occupation of Iraq.

Control of the mass media to propagate war message with no objectivity from the mainstream media and other airwaves.

Violation and rejection of Geneva Convention in the treatment of Prisoners of War and Suspects…

Contributing to national embarrassment i.e. Abu Ghraib.

Again, Iraq war operation carried out in violation of International Humanitarian Law or the Geneva Convention with activities not excluding —
CLUSTER BOMBING, GBU-43/B "MOTHER OF ALL BOMBS"

MOAB – MASSIVE ORDNANCE AIR BLAST BOMB


TITLED “SHOCK AND AWE.”

Suppression of facts and evidences on casualties and the victims of the so-called “Friendly Fire.”

Misuse of Power exhibiting nepotism and misappropriation of funds in hiring Kellogg Brown & Root (KBR), a subsidiary of Halliburton with vested interest by Vice President Dick Cheney.

Source: http://havenworks.com/business/research/halliburton-kbr/ – Thank you.

"Ex-Guardsmen sue KBR over alleged poisoning." … "KBR Inc. [KBR is a former subsidiary of Halliburton, the corporation formerly run by Republican Vice President Dick Cheney] was,

sued by ex-members of the Indiana National Guard and accused of knowingly exposing employees and the soldiers protecting them to cancer-causing dust at an Iraqi worksite in 2003." …

"Sixteen soldiers said in a complaint in federal court in Evansville, Ind. [Indiana], that Houston[Texas]-based KBR and related companies are responsible for chromium poisoning at Qarmat Ali, Iraq." …

"The plaintiffs, from the Tell City, Ind., Guard unit, were providing security for KBR during repairs of a water-treatment plant, according to the complaint.

The site was contaminated for six months by hexavalent chromium, a carcinogen in powdered compounds used to control corrosion, it said." …

"“The Tell City Guardsmen were repeatedly told that there was no danger on site, even after KBR managers knew that blood testing of American civilians exposed onsite confirmed elevated chromium levels,” the soldiers’ lawyers said in court papers." …

"Hexavalent chromium on first exposure causes nosebleeds, respiratory ailments and rashes,

which the soldiers said KBR officials told them was caused by dry desert air or sand allergies, according to the complaint. Chromium poisoning is irreversible, it said." …

"KBR sought to conceal the contamination and, once it was discovered, to limit exposed individuals’ knowledge about the level of poisoning they had suffered, the soldiers claimed." …

"Ed Blacke, who worked as a medic at Qarmat Ali, testified that KBR fired him when he discovered the chromium exposure and tried to warn workers." -Bloomberg via -Chron

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"Military contractor in Iraq holds foreign workers in warehouses." …

"About 1,000 Asian men who were hired by a Kuwaiti subcontractor to the U.S. [United States] military have been confined for as long as three months in windowless warehouses near the Baghdad [Iraq’s capital] airport without money or a place to work." …

"Najlaa International Catering Services, a subcontractor to KBR [formerly a Halliburton subsidiary,

the corporation formerly run by Republican Vice President Dick Cheney], an engineering, construction and services company, hired the men, who’re from India, Nepal, Sri Lanka and Bangladesh.

On Tuesday, they staged a march outside their compound to protest their living conditions." …

"The laborers said they paid middlemen more than $2,000 to get to Iraq for jobs that they were told would earn them $600 to $800 a month." …

"The conditions in which the men have been held appear to violate guidelines the U.S. military handed down in 2006 that urged contractors to deter human trafficking to the war zone by shunning recruiters that charged excessive fees." -By Adam Ashton -McClatchyDC.com

———————————————————

"KBR Suit Alleges ‘Forced Labor’ and ‘Slavery’." …

"We’ve now looked through the lawsuit against KBR that we told you about this morning.

The complaint (pdf) alleges that the company —

the biggest U.S. [United States] contractor in Iraq during the period at issue — engaged in a human trafficking scheme whereby 12 Nepali men were brought to Iraq to work and were prevented from leaving.

The men were then kidnapped by insurgents, and all but one were executed." …

"In sum: "Defendants’ actions as set forth above constitute the torts of trafficking in persons, involuntary servitude, forced labor, and slavery."" …

"This is hardly the first time that KBR has been in hot water, of course.

As we noted back in June, the company "was criticized in March for making troops sick by failing to provide clean water.

And top military officials have given false statements to Congress to quell controversy over the company."

In addition, at least two female former KBR employees in Iraq have alleged that they were raped or sexually assaulted by co-workers,

and that KBR was less than aggressive in investigating their claims." -By Zachary Roth -TPMMuckracker .TalkingPointsMemo

———————————————————————-

Incidents involving violation of human rights against Iraqi civilians by private contractors of Black Water Corporation hired by the incumbent administration.

REF: Blackwater GUARDS: MERCENARIES OR DECORATED VETS? – YAHOO! NEWS
—————————————————————-

The highlighted facts are merely a few of many notable activities worthy of condemnation and justifiably indictment.

It is no revelation that the executive branch and some exempting themselves by conveniently categorizing oneself as the legislative member of the branch i.e. Vice President Dick Cheney,

Have not accepted responsibility or expressed remorse…

Over sponsoring the catastrophic war conscientiously executed in a style similar to a recreational activity with an utter disregard for life in general at the dawn of twenty first century.

Notwithstanding corruption, cronyism and tax evasion of millions of U.S. Tax dollars tucked away at Ugland House, a camouflaged building on the Cayman Islands.

The reason being, the members of Congress as elected officials representing democracy have not pursued the crime against humanity as a significant moral or ethical crisis in the highest office on land.

It is noteworthy that many legislators in both the Senate and Congress cast their vote for the illegal invasion of a nation posing no verifiable threat to United States.

Unlike, Marine Sergeant Larry Hutchins who had to make a split second decision with dire consequence for failing to obey the order.

These legislators had the opportunity and privilege to review facts and access information prior to pledging their support.

Unfortunately, many did not choose that path and instead approved the death penalty of thousands of brave young men and women in our armed forces along with over a million innocent Iraqi civilians.

Hence, there is no accountability for the systematic abuse of power in the entire term of eight years.

Clearly, democracy undermined in an unprecedented manner thus far.

Such legacy provides basis for future unethical conduct and immoral behavior with no consequences.

It is a dangerous trajectory with a widespread impact on humanity.

Therefore, it is the duty of every concerned, caring, compassionate and patriotic American to come forward and demand that their legislators / representatives display courage in honoring the brave young men and women and innocent civilians in Iraq who lost their lives in an operation carried out under the guise of establishing democracy titled Operation Iraqi Freedom …

While, simultaneously hijacking the one at home and successfully bankrupting the economy.

It is imperative for the people with power in a democracy to seek,

Impeachment proceedings and indictments against the incumbent administration for misrepresentation and abuse of executive power.

Most importantly for ignoring the existence of Constitution in the land of Republic.

The legal minds across the nation must fulfill obligation towards democracy and fellow citizens lost in the Iraq war with rigorous prosecution of all those individuals in the incumbent administration responsible for the incredible dishonesty and horrendous crime against humanity.

Any immunity or partiality to the current administration by the judiciary will be an assault on the democratic system with law and order for every individual to follow regardless of ranks and power in the land of justice.

All those in opposition to delivering justice to the victims of Iraq war and the above listed crimes deemed complicit to the abuse of power and authority.
Needless to add that those entities will share similar fate of Mr. O. J. Simpson as witnessed lately.

The reaction and response are a direct result of cause and effect of action and decision-making process.

The Law of Cause and Effect is fair; no one enjoys any special privileges at all.

That wrong cannot win against reason,
Reason cannot win against law

Law cannot win against power and

Finally,

Power cannot win against Heaven.
Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Ethics | Leave a Comment 

Presidential Race 2008 – Grand Finale

November 4, 2008

The Presidential race is finally nearing end with the nation in the process of electing their 44th President of this great country, The United States of America.

The representation of all party candidates is on the ballot and they have all presented their election manifestos to the electorate.

The decision lies in the hands of the voters to make the right choice.

While the entire world’s eyes set on this election due to its significance and the historic nature, the weight of the world indeed, rests on the American electorate.

Therefore, my plea to every citizen fortunate enough to exercise the fundamental right in a democracy is to cast his or her ballot on this Election Day and be part of history.

As stated earlier in my previous blog postings, like all elections, there are relevant differences between the candidacies for the senate, congressional and Presidential race.

It is equally important to pay attention to various “Propositions” presented in lieu of “Referendum” in democratic elections.

Our nation has suffered enormously in the past eight years.

The wound is fresh and requires time for the healing process.

The only way to expedite recovery is by making the right choices in all of the above races.

As much as I would like to remain bipartisan on this day in terms of encouraging all citizens to vote for their respective candidates and issues, I am also obligated to guide the nation in the right direction of peace, progress and prosperity for all.

It is my honorable duty and specific purpose of this life to fulfill the responsibilities towards not only the citizens of the United States but the entire world.

With all due respect, to the Republican Party candidates Senator John McCain and Gov. Sarah Palin and all other third party candidates listed in the http://www.politics1.com/p2008.htm, I appreciate their interests and patriotism to serve this great nation.

However, when compared to the specifics of the policies,

And the real possibility of achieving the goals to uplift our nation from all of the crises,

The Democratic candidacy represented by Senator Barack Obama and Senator Joe Biden seems far more realistic and attainable.

Therefore, I urge the electorate to cast their ballot for Obama/Biden candidacy that is not only hopeful but also seriously committed to this country and the entire world in great many respects.

I take this opportunity and wish all the candidates in the Republican and the third party my very best wishes on this Election Day.

It is important for the voters to realize that our nation has to climb a steep hill with enormous burden of debt and many crises on our back.

There is no time to rest and pause but only to reflect on the failures of the current administration and restrain from re-election of the choice resembling and representing the present government.

The electoral process should not be wasted or gambled away for trial and error as in the past i.e. 2000 and 2004.

Unfortunately, the stakes are too high and there is no time or space to maneuver once decided on this date, with another opportunity becoming available only in four years time.

The Obama/Biden candidacy focused on resolving issues with clear solutions and sincere commitment is the right choice for the country experiencing the most difficult economic times, social, political, environmental problems in the national and international fronts.

Both Senator Barack Obama and Senator Joe Biden offer dynamic leadership brimming with confidence, determination, zeal, enthusiasm, honesty, integrity and above all sound strategies for the present national and international situations.

The term “change” has been the theme of the Presidential race.

In all fairness and propriety, the actual agent who initiated and overwhelmingly enforced this message of “Change” is none other than, the Senator from the State of Illinois, Senator Barack Obama.

In fact, Senator Barack Obama truly believed in his heart that the country desperately needed to change its course and felt the urgency to implement the method in this election.

Undoubtedly, all candidates worked hard tirelessly in this campaign and dealt with compliments and criticisms alike from all sides.

Senator Barack Obama introduced new mechanism and demeanor in this political campaign.

For most part, Senator Obama had to fight tenacious battles to reach the finish line during the Democratic Primary election and then in the general election as well.

Senator Barack Obama displayed a decorum seen unlike before.

Throughout the decision making process in this election, Senator Barack Obama has come across as a leader with an ability to sail through rough seas with a calm composure and reliable in reaching the shore safely.

Despite several negative attacks, innuendoes, divisive politics, Senator Barack Obama maintained an impressive personality to accept not only his own mistakes but also others as part of human nature.

As stated earlier, being infallible is not in human condition.

Senator Obama and Senator Biden, despite the unfortunate Gaffes proved their ability to rise to the occasion and demonstrate leadership qualities essential to lead the nation in the right direction.

The reason behind our current national status is due to the lack of strong leadership in dealing with any challenges and crisis.

Placing emphasis on these characteristics is all-important when choosing a leader of a powerful nation that has the responsibility to lead the entire world.

The United States of America is on its knees with insurmountable debt, tarnished image and severe credibility crisis.

The current administration’s reckless policies and lack of chivalry in the governance of the democratic nation is responsible for the present status.

None of us can afford to let the nation sink in the treacherous sea of debt and destruction through on-going wars in Iraq and Afghanistan.

It takes a nation to elect a leader, the President of the United States, the “Superpower” now and in the future.

I urge every citizen from all the great states of The United States:

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming.

Please come forward,

Rescue our great country from the current turmoil and distress,

By electing the candidate Senator Barack Obama and Senator Joe Biden to the office of the President and Vice President of the United States,

Grant them a landslide victory in the 2008 Presidential race, and create history.

If you are tired of being bogged down in poverty,

Or

Living paycheck-to-paycheck and simply struggling to meet ends as well as,

All those tired of the greatness of this great nation diminished to rock bottom in the past eight years, the opportunity is for you to act now and change the direction towards peace, progress and prosperity for all.

The Obama/Biden candidacy is the only ideal choice to lead the nation and restore everything lost in the past eight years under the most incompetent and immoral administration.

It is our responsibility as citizens to come together as one nation and elect the leader and the future President and Vice President of the United States, Senator Barack Obama and Senator Joe Biden on this Election Day, November 4, 2008.

Future President Barack Obama and Vice President Joe Biden represent the hope and change for millions in this nation and around the world.

The United States of America is the beacon of bright light now and in the future and the Barack Obama Presidency will surely keep this promise.

Let us all come together in realizing the dream of our great national hero, civil right leader and icon of peace the honorable, Dr. Martin Luther King, Jr.

Finally, Senator Barack Obama and Senator Joe Biden, I wish you all the best and success with the outcome of the Presidential election on this date, November 4, 2008.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Featured, Politics, United States | Leave a Comment 

Redistribution of Wealth

October 31, 2008

The latest assault weapon for Senator John McCain and Gov. Sarah Palin against their opponent Senator Barack Obama is the "Socialist/Marxist/Robin Hood" tag on him.

Such rhetoric and false propaganda is to create doubts in the minds of entrepreneurs against Senator Obama.

The distortion of Senator Obama’s policy leading businesses to believe that,

"In Taxing 1% of the population in the 40% tax bracket while shifting the tax burden to the top 10% with 70% of tax exacerbates the entities from active participation in the economic growth."

The reason behind similar branding is the fair tax proposal presented by Senator Obama to alleviate the socioeconomic problems that has currently widened the canyon between rich and poor in our country.

Thus slowly but gradually eliminating the middle class in our society.

Senator Barack Obama’s tax policy is based on relieving all citizens including small and medium sized businesses earning less than or equal to gross income of $250,000 per annum from any tax hikes to offset expenditure.

This strategy creates financial liquidity among households and businesses alike that is desperately required to stimulate the ailing economy.

By exempting the average households from any tax increases, the consumer spending is generated that will benefit the Retail economy which in turn will permeate throughout the economic spectrum.

The strengthening of the Retail economy will boost the manufacturing, service industry… reaching all the way to top of the Corporate growth.

The Corporate growth means investment prospects for both private and public investors resulting in healthier and consistent stock market performance that has been highly volatile recently.

It is simple economics.

Supply and demand forces determine a free market system.

Unless, there is a demand for any particular goods or services the supply chain link cannot remain in force.

Simultaneously, the demand can be a catalyst in the process only through affordable consumer spending.

This is where the small and medium sized businesses come into play with the tax breaks from Senator Obama’s policy.

It is noteworthy that small and medium sized businesses deal with wholesale industries for raw materials and other items ultimately owned by major corporations in a market economy.

There are valid reasons to embrace the market economy worldwide.

A. Induces competition apart from enrichment of ideas

B. Competition enables choices in quality and price

C. Controls inflation or deflation

Therefore, the retail consumers benefit from the market economy that facilitates all small, medium and large players in competing with one another effectively for common good.

All of the above factors directly and indirectly influence the fiscal, monetary and economic policies in a Capital economy.

Briefly, the cash flow offered through tax relief by Senator Obama to a substantial group of taxpayers who are also the consumers trigger consumer spending and exponentially elevate the economic status among the various groups in the society.

It also eventually contributes to the wealth accumulation by the top ten percent in the society whose welfare alone is a major concern for McCain/Palin candidacy.

Ironically, the McCain/Palin candidacy in their zeal to own Capitalism as their trademark, fail to recognize the importance of fundamental growth in the lower and middle income groups vital for the survival of small businesses and retail industries, the structural components of a successful Capital economy.

Senator McCain’s tax policy to freeze tax increases across the board by asserting that the Bush administration’s permanent tax cuts to wealthy individuals and Corporations would somehow miraculously revive the economy is a fantasy beyond reason.

It is worth remembering for McCain/Palin campaign that the current Bush administration, as their supporter will depart shortly leaving the nation with multi-trillion dollar debt, on-going wars in Iraq and Afghanistan requiring constant capital injection, declining dollar and hosts of economic commitments willfully neglected in the past eight years.

The undecided/swing voters in every battleground state must realize that there are no precise solutions from McCain/Palin candidacy to resolve the humongous challenges confronting our nation in the absence of any meaningful tax policy.

Senator McCain’s policy to create new jobs as economic solutions again fails to meet the criteria of capital requirement in the present economy with severe financial liquidity crisis.

In fact, the recent economic strategy to bankroll the corrupt and failed financial institutions with the taxpayers funds, along with the economic stimulus package by the Bush administration fits the profile of the political stigma – "Socialism/Marxism" except,

Here, the beneficiaries are the financial institutions and their wealthiest CEO’s rather than the taxpayers, i.e. the average citizens.

Since, the same political party represents the Bush administration and McCain/Palin candidacy, it would be more appropriate to assign the factoid to the respective contenders.

Fact Check: In a progressive tax structure, Senator Obama’s policy to exempt the vast majority of taxpayers/consumers from tax increase would,

1. Promote economic status as highlighted above…

2. Ultimately, create a fair system of sharing the economic burden by all rather than only by the affluent ones.

Such farsighted and permanent solutions to persisting economic problems is in direct contradiction to the myth and misnomer cast by McCain/Palin doctrine against Senator Barack Obama to win the election.

Socialism, Marxism may well be the nemesis to Capitalism,

Capitalism cannot thrive without consumerism – That is the fact.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Business, Featured | Leave a Comment 

Campaign Strategy

October 22, 2008

Political campaigns set their own policy and strategy depending on their performance at the polls and confidence level in general.

Nowadays, with the technology and media at disposal, the campaigns utilize them to the maximum potential.

All carried out at a high premium, where the Corporations behind the media and technology rake profits during any political season.

Meanwhile, the volunteers usually the foot soldiers and workers at the phone banks and campaign booths work relentlessly for “free ” to see the campaign prevail in the race.

Nevertheless, the success of the campaigns still depends on human capital.

As stated earlier, the campaigns recruit volunteers for human element to infuse enthusiasm and in certain situations embellish the message. While others, cross the limit and exaggerate the fiction about their opponents.

The campaign expectations from the volunteers far exceed their own contribution to the campaign victory.

All those on the campaign payroll and beneficiaries of monetary gains presumptuously place demands on volunteers to outperform in the most challenging area of campaigning, i.e. delivering the result – fund raising , voter registration and casting the ballot .

One would think that, the acknowledgement of these volunteers mostly responsible for the cause of celebration, precede personal information… of the surrogates and alike during events like Conventions .

Unfortunately, that is not the demeanor commonly represented in Politics.

Somehow, the entities in charge of these campaigns… usually the next of kin of the political candidate and the individuals claiming ownership rights on the campaign, influence not only the candidate, but also the media and news organization by controlling the communication channels.

Such management style undermines democracy and reflects the “sense of entitlement ” of the power behind the operation.

Further, there is a certainty of the “abuse of power” upon election to the office.

Whenever, any campaign prioritizes the appeasement of the corporate media and vice versa, it is the demise of democracy due to lack of transparency in the fair portrayal of campaign messages and events.

It is evident in recent media ratings that the electorate is disappointed with the extreme bias and propaganda on the airwaves in an effort to see their political faction succeed by any means.

Fortunately, the Information Superhighway is an alternative source available for voters to conduct their own research and obtain facts in a discerning manner.

The nation is embracing a historic event with emotions and sentiments on the rise over a range of issues that matter people.

When preparing to write a new chapter in history,

The old ways of empowering some and enslaving the other,

In addition, pandering to certain groups while slandering the rest by the entities in the campaign, media and elsewhere is a strategy best left behind in national interest.

A “Change” that unites and not divides the nation is where the future lies.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Featured, Politics, United States | 2 Comments 

Save the Planet

October 19, 2008

It is not merely a slogan. A grim reality dismissed as a myth by extreme political factions.

What is a slogan?

“Drill baby Drill, Drill now, Drill here ” … until there is nothing left and the entire species vanish in a black hole .

Such political psychodrama far outweighs the speculation of similar outcome from The Large Hadron Collider as the "Big Bang " experiment, conducted to unravel the mysteries of the origin of the universe across the border between France and Switzerland.

The nation, as the pioneer in virtually most frontiers of humanitarian needs is advancing towards the dangerous zone with policies like “offshore” oil and gas drilling… rejecting the real consequences to the environment.

Political rhetoric to satisfy the humanity’s insatiable appetite for energy demands is sweeping across the nation without any rationale or logic.

In the process, the moderate thinkers in the political aisle are forfeiting their commitments to the environmental cause and denying the call from the reasoning faculties within.

The electoral process is a mechanism to promote irrational ideologies to justify victory by any means.

Even, if such radical platform is detrimental to the existence and survival of self and other species on the planet.

It makes one wonder! What is the driving force behind the extremism preventing the political power from exercising judgment for the benefit of all inhabitants on the planet?

The simple response is — the Special interests or the “lobbyists” , the active and most successful operatives in every election.

Their argument as purveyors of the elections from Congressional to “Presidential ” is, electoral process is an investment vehicle to promote Corporate agenda based on profiteering at all expense.

In essence, Corporations determined to maximize personal gains against all odds run the government, supposedly “democratic ”.

The real authority behind the entire management of elections especially in the United States is the Conglomerate operating across the Atlantic, and thus far highly successful in the nomination of their choice of “Presidential candidate ” to advance the personal agenda and devious modus operandi worldwide.

That is why, the recent fear mongering tactics… against a candidate in opposition to such policies, is stigmatized a Socialist and cast as a threat to “Capitalism”.

It is common knowledge that the free market or “Capitalism” is always healthier for the enrichment of ideas and competitiveness to benefit consumer based economies provided,

The monetary gains and welfare are widespread among the investors and consumers alike including the work force/ human Capital, the most important resource for “Capitalism” to succeed.

Therefore, a threshold is necessary to define the role of “Capitalism” in a democracy.

Both extremes — the extensive Corporate role in the legislation and government intervention in the micromanagement of free market system undermine the success of democratic market economies.

In the environmental front, there are serious challenges confronting the global community.

The solutions to the problems created by none other than human force for various economic reasons are within the realm of people power.

Every individual can make a difference in resolving the current environmental crises. The first and foremost strategy is to reflect on the cause and effect factor.

Simple actions like recycling, supply and purchase of environmental friendly products and services, cutting back on carbon emissions and recreating lifestyle would greatly contribute to the cause.

The lifestyle by an average household with modified energy consumption could help the humanity in general.

The recent article shed light on the impact of global warming on other living species.

Government declares beluga whale endangered

By DAN JOLING Associated Press Writer – Thank you.

Article Launched: 10/17/2008 07:38:33 AM PDT

Qannik, a 6-year-old beluga whale, swims in a tank at his new home at…

ANCHORAGE, Alaska—First, there were the polar bears. Now, beluga whales. Washington and Alaska Gov. Sarah Palin just don’t see eye to eye on wildlife protection.

The beluga whales of Alaska’s Cook Inlet are endangered and require additional protection to survive, the government declared Friday, contradicting Gov. Sarah Palin who has questioned whether the distinctive white whales are actually declining.

It was the Republican vice presidential candidate’s second environmental slap from Washington this year.

She has asked federal courts to overturn an Interior Department decision declaring polar bears threatened under the Endangered Species Act.

The government on Friday put a portion of the whales on the endangered list, rejecting Palin’s argument that it lacked scientific evidence to do so.

The National Oceanic and Atmospheric Administration said that a decade-long recovery program had failed to ensure the whales’ survival.

"In spite of protections already in place, Cook Inlet beluga whales are not recovering," said James Balsiger, NOAA acting assistant administrator.

The decision means that before federal agencies can issue a variety of commercial permits, they must first consult with the National Marine Fisheries Service to determine if there are potential harmful effects on the whales.

That has the potential to affect major Alaska projects including an expansion of the Port of Anchorage, additional offshore oil and gas drilling, a proposed $600 million bridge connecting Anchorage to Palin’s hometown of Wasilla and a massive coal mine 45 miles south of Anchorage.

The state does have serious concerns about the low population of beluga whales in Cook Inlet and has had those concerns for many years, Palin said in a statement.

"However, we believe that this endangered listing is premature," she said.

Palin in April successfully lobbied for a six-month delay in a listing decision until a count of the whales this summer could be included in deliberations.

That count showed no increase over 2007 numbers—375 whales, compared with a high of 653 in 1995.

Federal regulators and conservation groups said further delay would be harmful.

NOAA said Friday the Cook Inlet population declined by 50 percent between 1994 and 1998 and "is still not recovering" despite restrictions on the number of whales that Alaska’s native population can kill for subsistence.

It said recovery has been hindered by development and a range of economic and industrial activities including those related to oil and gas exploration.

The National Marine Fisheries Service "will identify habitat essential for the conservation of the Cook Inlet belugas in a separate rule-making within a year," the agency said.

The federal decision pleased environmentalists.

"We can finally focus now not on whether the belugas are endangered, but what we can do to protect them," said Brendan Cummings, an attorney for the Center for Biological Diversity, one of the groups that petitioned for the listing.

Cook Inlet stretches 180 miles from the Gulf of Alaska to Anchorage.

It is named for Capt. James Cook, the British explorer who sailed into the inlet in 1778 on a quest to find the Northwest Passage.

Beluga whales feed on salmon and smaller fish.

They can also eat crab, shrimp, squid and clams. During summers, the whales, which reach a length of up to 15 feet, often can be spotted from the highways leading away from Anchorage, gathered at river mouths, chasing salmon that have schooled before a run to spawning grounds.

Beluga whales’ natural enemies are killer whales, but something else has been keeping their numbers down in Alaska’s Cook Inlet.

Craig Matkin, an independent biologist who has worked in south central Alaska for 25 years, said the delay in the listing had held up a comprehensive research plan to find out why the population had not recovered after subsistence hunting was curtailed.

The concern is not just in numbers, he said, but in distribution. Whales in recent years have been staying in northern Cook Inlet near Anchorage.

"They’re just gone from these areas," he said of his own home near in Homer, near the tip of the Kenai Peninsula and about 100 miles from Anchorage.

"Why they aren’t coming down into this habitat is a question I’d like to answer."

Future development won’t be helpful to the recovery, Cummings said, starting with the noise and pollution associated with industrialization of the inlet, which includes oil rigs off the Kenai Peninsula.

Global warming, changing ocean conditions and higher temperatures in salmon streams may be another factor, Cummings said.

The Port of Anchorage, helped by congressional earmarks secured by Sen. Ted Stevens and Rep. Don Young, has embarked on a $500 million project to double the port’s size and replace its aging docks.

Environmental groups also have expressed concern about a planned coal mine 45 miles from Anchorage across Cook Inlet, where developers propose to mine 300 million metric tons of sub-bituminous coal, roughly equal to the energy of a billion barrels of oil, over 25 years.

That would mean noise and boat traffic associated with building and operating a mine, a potential effect on salmon streams and more warming.

The Cook Inlet beluga whales are one of five populations in Alaska waters and the only one endangered.

Other beluga populations off Alaska inhabit Bristol Bay, the eastern Bering Sea, the eastern Chukchi Sea and the Beaufort Sea.

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Reality Check :  Gov. Sarah Palin — Welcome to the National Political Arena!

Your performance on SNL last night may well be the cause for celebration as an “anti-environmentalist. ”

Even though, your judgment or the lack thereof, in the environmental matter is analogous to the rhetoric on your campaign trail invoking fear and Anti-American euphemism against your opponent, the Democratic Presidential Candidate, Senator Barack Obama.

As one among many advocates for the voiceless and defenseless species, I am obligated to pose the following questions to you:

1. What exactly is the issue you don’t understand about the environmental crises?

2. As a self proclaimed maverick , how do you propose to sustain the ecological balance, crucial for your present survival… against the cavalier offshore oil and gas exploration and other projects?

3. Please, explain to the American electorate your bizarre stance in the pivotal issues —

A. Your personal claim, highlighting the foreign policy experience equivalent to the panoramic view of the residence of Russian Prime Minister, Mr. Vladimir Putin from the convenience of your porch while,

B. You choose to remain oblivious to SOS calls from the native species of your home state Alaska.

Perhaps, this could be a revelation for you —

Global warming is real due to reckless policies and irresponsible human behavior.

Save the Planet , for Life matter .

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Environment, Featured | Leave a Comment 

W.

October 19, 2008

The newest Oliver Stone movie is now in theaters, W.

This film is a chronology of the most important events in President Bush’s life, from his college days in 1966 to his final days of his first term in 2004.

Josh Brolin is very good, perhaps even Oscar-worthy, as President Bush.

The supporting cast is good aside from Thandie Newton, who overacted as Condi.

As many reviews have mentioned, this is not a sole Bush-basher.

It may have you walking out of the theater, sympathetic of the man.

However, this did not apply to me.

Oliver Stone directed this film well and it is enjoyable for political junkies such as
Padmini Arhant.

Good luck at the movies!

Rating – 8/10

By,

Rish Arhant-Sudhir

Written by Padmini Arhant · Filed Under Bulletin | Comments Off on W. 

Unethical Practice

October 15, 2008

Unethical Practice

Politics is never fair and has several “ugly” heads that arise precipitously, especially during election time.

There are “entities” with ulterior motive to serve their interest over the country’s future that deserve attention by the electorate.

As stated earlier, communication with political figures is not out of ordinary for private citizens, particularly during elections.

However, there are occasions when citizens get involved in the political campaign; the political candidates expect monetary contributions and other assistance to prevail in the elections.

There have been requests from both “Presidential Campaigns” in this regard.

With a firm commitment to help people and their interests, my position has been clear from the beginning. That is, to support… the policies, the strategies and solutions for all the crises confronting our nation rather than a political “rhetoric” or a “personality.”

I share the recent communication with the “Presidential Campaign” of Senator Barack Obama.

The original transcript from the Vice Presidential Candidate, the Hon. Senator Joe Biden:

To: Padmini Arhant

From: Joe Biden, Obama for America, Chicago, IL 60680.

Dear Ms. Arhant,

Barack Obama and I come from very different places, but we share a common story – an American story.

He was the son of a single mom who sometimes struggled to support her kids. But she raised him to believe in America; to believe that in this country, there is no obstacle that can keep you from your dreams, if you are willing to work hard and fight for them.

I was an Irish-Catholic kid from Scranton with a father who – like too many people today – fell on hard times in a tough economy. Buy my parents raised me to believe that it is not how many times you get knocked down, it’s how quickly you get up.

That’s the American promise that Barack Obama and I believe in. And it’s a promise that’s been knocked around under eight years of George Bush and John McCain.

The McCain campaign wants us to think he believes in change – that he’s a maverick who’s independent of George W. Bush. I know better.

I’ve served with John McCain in the Senate for 22 years. I know him as a courageous patriot and an honorable man. But what he is not — not by any stretch – a maverick.

You’re not a maverick when you vote with George W. Bush 90 percent of the time, as John McCAin has.

You’re not a maverick when you boast – and these are John’s words, not mine – that “no one has supported President Bush on Iraq more than I have.”

You’re not a maverick when you endorse the tax cuts for the wealthy that have been George W. Bush’s only excuse for an economic policy.

And I don’t know what you are – or where you’re living, unless it’s is in one of seven houses you need your staff to count – when you say, as John McCain has, that “there’s been great progress economically” under the Bush Administration.

Still, there was one sense in which I thought John was different from George W. Bush – and I have to tell you I’ve been disappointed to learn how wrong I was.

Whatever our other disagreements, I always thought John and I agreed that the slash-and-burn, divide-and-attack, Swift Boat brand of politics that the Bush machine popularized were debasing our democracy and tearing our country apart.

But today, as he seeks the presidency, John McCain has changed. He has become a practitioner of the very politics he once deplored.

He hired a protégé of Karl Rove to help run his campaign. After condemning the Swift Boat attacks of 2004, John took tens of thousands of dollars from their architects – and, with no sense of irony, even put one of them on his “Truth Squad” for 2008.

Meanwhile, John McCain has blanketed the airwaves with misleading attacks on Barack Obama. They’ve attacked Barack’s character and distorted his ideas.

When it comes down to, I regret to say, is that “John McCain campaigning on the high road” has become as much of a myth as “John McCain the maverick” always was.

And America can’t afford another campaign like this – a third George Bush campaign focused on small attacks rather than big ideas – any more than we can afford the four more years of George W. Bush’s policies that John McCain wants to give us.

Barack and I are committed to running a different kind of campaign — one that addresses our greatest challenges and appeals to our highest ideals.

But to do that, we need your continued help and support.

We are going to have to respond to every attack – every one, every time – while simultaneously keeping our campaign focused on positive ideas. And the cost of running that kind of campaign will be enormous.

Padmini, I know you share both our vision for fundamental change in America and our disgust with the Swift Boat style of politics that John McCAin once decried but now practices. And I hope you’ll continue to help us fight back by rushing a generous contribution of $250 or even $500 to Obama for America.

And please don’t wait a single day. The American promise that gave Barack and me so much has been knocked around for eight tough years. Let’s get up – and restore it – together.

Sincerely,

Joe Biden

P.S. Padmini, the McCain campaign’s attacks on Barack Obama may be the product of desperation, and they’re certainly a poor substitute for vision and ideas – but that doesn’t mean they won’t work. If Barack and I lack the resources to respond, John McCain will be able to distort our ideas and distract America from eight years of Republican failures. We can’t let that happen – and if you’ll stand with us by supporting Obama for America, we won’t.
———————————

I responded to Senator Joe Biden’s letter:

October 9th, 2008.

Private and Confidential

Intended for Addressee Only

Hon. Senator Joe Biden
Vice Presidential Candidate
Democratic Party

Dear Senator Biden,

Thank you for your email, letters and kind remarks.

I have communicated with the Presidential candidate, Senator Barack Obama recently regarding my involvement in the campaign.

The letter received by Senator Barack Obama, lays out the premise of my engagement in the crucial Presidential contest.

I am awaiting response from Senator Obama in that respect.

To reiterate the viewpoint, I have forwarded the letter again and the scenario to Senator Obama for clear understanding.

I am hopeful that Senator Obama’s decision will be in favor of the better outcome for all.

Your cooperation and effort might expedite the communication as well.

As soon as I have a positive response from Senator Obama, I will consider it my patriotic duty and honor to support Obama Biden candidacy and assist the Democratic Party prevail in the highly contested general election on November 4th, 2008.

Thank you.

Sincerely,

Padmini Arhant

The Recent Incidents Indicate That Neither Of The Candidates Is In Receipt Of My Letters Sent By Priority And Certified Mail With Delivery Confirmation.

SUGGESTING – Déjà vu!

REF: Ethical View – www.padminiarhant.com

With great humility, I would like to let America and the rest of the world know about the flurry of communication from all corners on different subjects. It is an honor and at the same time a huge responsibility to express one’s opinion and ideas in public with the national and humanity interests at stake.

I have always tried my best in all circumstances to remain honest, sincere and genuine in the presentation of my thoughts. Further, considering the nature of the situation like the general election, I have prioritized my response to the “Presidential Candidates” requests over other issues.

Unfortunately, within Senator Barack Obama’s campaign, an individual with authority is being highly successful with the interception and even confiscation of my communication with both the Presidential and the Vice Presidential candidates.

It is very disturbing and a matter of concern since, such “unethical practice” in tampering with “private mail” is, in essence a “federal crime” and does not appear to bother this individual because the entity considers “oneself” above the law.

With the Presidential campaigns pledging to eradicate corruption and cronyism in Washington, it raises a serious credibility issue when “individuals” within the campaign pose threats to such commitments of tall order.

Secrecy, dominance and authoritarianism is the cause for the “status quo”… the nation brought to a freezing point and any resemblance of this kind in the future administration will not serve in the best interests of the people of the United States or the global community.

Democracy is active only, when there is absolute transparency and access to information at all levels.

The lack thereof, signifies imminent danger with “sense of entitlement” and abuse of “power” in the horizon.

Finally, it is worth remembering that “Man Proposes and God Disposes.”

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Ethics | Leave a Comment 

Stock Market Performance

October 14, 2008

The Stock Market came roaring back on October 13, 2008 and was a major cause for celebration across the globe.

The collective and collaborative effort by the “Heads of Government” through G7 and G20 meetings, in coordination with the global monetary authorities like the World Bank and the International Monetary Fund yielded the much-required morale boost in the financial markets. Their immediate action to respond to the crisis is praiseworthy.

Despite the consolidated action to jumpstart the markets, the stock market is struggling to sustain the momentum gained on the previous day. Obviously, the indication is that the measures in the past hours and days to guarantee the smooth functioning of the financial system is not adequate.

A selective opinion highlighting the reasons for the problems currently experienced in the credit markets –

Source – http://www.americaneconomicalert.org – Thank you.

Why Federal Reserve Policy is Failing

Monday, October 06, 2008

Commentary by Thomas I. Paley, Ph.D.

The Federal Reserve and U.S. Treasury continue to fail in their attempts to stabilize the U.S. financial system. That is due to failure to grasp the nature of the problem, which concerns the parallel banking system. Rescue policy remains stuck in the past, focused on the traditional banking system while ignoring the parallel unregulated system that was permitted to develop over the past twenty-five years.

This parallel banking system financed vast amounts of real estate lending and consumer borrowing. The system (which included the likes of Thornburg Mortgage, Bear Stearns and Lehman Brothers) made loans but had no deposit base. Instead, it relied on roll-over funding obtained through money markets. Additionally, it operated with little capital and extremely high leverage ratios, which was critical to its tremendous profitability. Finally, loans were often securitized and traded among financial firms.

This business model has now proven extremely fragile. First, the model created a fundamental maturity mismatch, whereby loans were of a long term nature but funding was short-term. That left firms vulnerable to disruptions of money market funding, as has now occurred.

Second, securitization converted loans into financial instruments that could be priced according to market conditions. That was fine when prices were rising, but when they started falling firms had to take large mark-to-market losses. Given their low capital ratios, those losses quickly wiped out firms’ capital bases, thereby freezing roll-over funding.

In effect, the parallel banking business model completely lacked shock absorbers, and it has now imploded in a vicious cycle. Lack of roll-over financing has compelled asset sales, which has driven down prices. That has further eroded capital, triggering margin calls that have caused more asset sales and even lower prices, making financing impossible for even the best firms.

Though the parallel banking system engaged in riskier lending than the traditional banking system, those differences were a matter of degree. Traditional banks like Washington Mutual, Wachovia, and Citigroup have also all lost huge sums. However, the traditional banking system is more protected for two reasons.

First, traditional banks are significantly funded by customer deposits. Ironically, such deposits can be withdrawn on demand and are in principle even more insecure than short term roll-over funding. However, they stay in place because of federally provided deposit insurance.

Second, traditional banks are significantly shielded from mark-to-market accounting because they hold on to many of their loans. These loans are therefore priced by auditors on a mark-to-realization basis. However, if they were securitized their market value would be significantly lower owing to current disruptive market conditions.

The bottom line is that the banking system is in better shape not because of its virtues, but because of policy. Deposit funding is safe because of deposit insurance. Banks are spared mark-to market losses because of different accounting rules. And the Federal Reserve is providing banks with massive liquidity infusions through its discount window and its various emergency auction facilities.

Policy has therefore ring-fenced traditional banks. But in the meantime it has left the parallel system in the cold, leaving a gaping hole in the policy dyke.

This policy stance reflects the Fed’s continuing attachment to an antiquated view of the system whereby it takes responsibility for traditional banks and nothing else. Such a policy makes no sense and will fail. The Fed encouraged development of the parallel system, and that system undertakes many of the same activities as traditional banks. Meanwhile, failure of the parallel banking system will continue putting downward pressure on asset prices and lender confidence.

The Treasury’s proposed seven hundred billion dollar asset purchase program will help put a needed floor under asset prices. However, it does nothing to tackle the parallel banking system’s roll-over funding crisis that is crimping lending and pushing firms into bankruptcy. That is causing distress to spread far beyond the mortgage market, undermining the ability of any asset purchase program to put a floor under asset prices.

The urgent implication is the Fed (and other central banks) must extend its safety network to include the parallel banking system. Just as the traditional banking system needs liquidity assistance, so too does the parallel system. That assistance can be provided through such vehicles as the discount window and Federal Reserve auction facilities, and it should be allocated to qualified firms able to post appropriate collateral.

A credit based system is a chain, and a chain is only as strong as its weakest link. The Federal Reserve’s antiquated view has it protecting links connected to the traditional banking system while neglecting everything else. That is a recipe for failure.

Dr. Thomas Palley is a widely published economist and was formerly Chief Economist at the US-China Economic and Security Review Commission.
____________________________

Analysis: Certainly, the emphasis is on the oversight with effective policies for the entire financial structure to alleviate stagnation in the liquidity markets. The investor confidence overall is marred with concerns and skepticism despite stunning performance on October 13, 2008.

The resistance from the free market system towards proposed measures is one of the factors for the current trend. However, the necessary action could eliminate many underlying problems surrounding the entire financial infrastructure, contributing to the volatility in the markets.

Meanwhile, the investors’ active participation to restore momentum and strengthening market gains across all sectors is important for the common good and benefit in the short and long run.

An optimistic approach to the crisis with an absolute integrity in the implementation of policies will assist the markets to rebound now and in the future.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Business, Featured | Leave a Comment 

Stock Market Crisis

October 10, 2008

Courtesy: http://www.godlikeproductions.com – Thank you.

Whats Driving the Stock Market Chaos??

Denninger Speaks… – Thank you.

Quote

What The Media *Didn’t* Cover

So yesterday the “news” was all about the long end of the Treasury curve rocketing higher (yield), which many people believe is about “risk acceptance” and The Fed (along with other central banks) cutting rates by 50 basis points.

Uh huh.

Let’s talk about what’s really going on.

First, our rates. The EFF (Effective Fed Funds) rate has been trading at 1.5% now for a couple of weeks. Two percent schmoo percent; a target rate only in name is no target at all. In reality the 50 bips cut, even though it resulted in an instantaneous 40 handle rocket shot in the /ES futures Wednesday morning, was entirely a CONfidence game (with the emphasis on “Con”!)

The RTS (Russian Market) is down 87% YTD, and is closed until further notice. The Nikkei is trading below the DOW – that’s not good. Indonesia’s stock market was shuttered Wednesday and remains closed after tripping “lock limits” within 90 minutes of the opening bell. As of Thursday morning the RTS was closed again after Putin allegedly strong-armed a whole bunch of Russian wealthy to “stick it in” (to the stock market); this sort of v-fib in a market does horrifyingly bad things to ordinary investors who find themselves out just before the market rockets higher without underlying economic cause.

Iceland has essentially melted down. Their currency went straight into the toilet and two of the three largest banks were nationalized – all in the space of 24 hours. The culprit? Bad loans. Where have we seen this movie before?

Mexico’s peso has fallen some 40% in days against the dollar. Great if you’re traveling there as an American. Sucks severely if you’re a Mexican. That alleged fence on our southern border is going to need reinforcements.

Wednesday morning Britain and the EU zone all announced major bank rescue operations. Same deal – “throw money at it, paper it over.”

Nowhere a mention of forcing balance sheet transparency and truth.

Except in one place – here in the US! Plans to standardize CDS contracts and force them onto an exchange are actually under way. This is a major positive move and fulfills one of the three prongs of my view of how to solve this problem, once implemented. We’ll see how much pushback we get, and whether OTC derivatives are actually banned (as they should be), or whether the big trading houses and banks insist on being able to play “pick pocket” along side the “regulated” world.

The NY Fed announced plans to extend a further $39.6 billion credit line to AIG. The tab is now almost $120 billion dollars. Where did the other $80 billion go? Has it been vaporized trying to raise capital to pay down CDS contracts that have gone the wrong way on them?

Speaking of which, Thursday is D-Day – D standing for either “derivative” or, if things go sideways on people, “detonation.”

See, this is the day that Lehman’s CDS contracts are supposed to be resolved. Since Lehman’s bonds are trading at ~20-30% recovery (horrible, on balance) the writers may have to fork up 60 to 70 cents on the dollar.

The $64,000 question is how many of those contracts net out. The real liability is what’s left once everything is “balanced” (a long and short held by the same guy net to zero, assuming that both contracts are “money good”, leaving the holder with no liability – and no asset)

This has the potential to be a big “nothingburger”, a minor tremor, or a 250′ high tsunami that washes over Lower Manhattan (and the City) tomorrow. There’s no good way to know in advance which outcome will manifest, since nobody (at present) knows what the true netted-out open interest is. This is one of the problems with not having a public exchange; lack of knowledge.

The bright light of reality will shine tomorrow……

The architects of this, by the way, are the folks who took the cuffs off the banks, going back to the Gramm-Leach-Bailey law and the repeal, piece-by-piece prior but finished by GLBA, of Glass-Steagall. GLBA, by the way, was passed in 1999 – just as the Internet bubble was in full force. Coincidence? No. The root cause of this mess? Right there. Thank Congress, and make sure you include those members who have been around for the entire thing, including John McCain.

On the equity market side shorting is once again available, the order having expired. The lack of shorts was a definite factor in the stiff selloff that we’ve seen, and Chris Cox owes investors in America an apology – on the air. This was an objectively stupid decision, as shorts provide necessary liquidity during serious downturns. Without them you get “no bid” circumstances, and they sporadically appeared during the last few days in financials, which certainly exacerbated the selloff.

In the bond markets Treasury refunded some “off the run” bonds and got an ugly surprise – the market didn’t want them. They had to pay a 40 bips “tail” to get them to go, which may be the start of a really troublesome trend. See, Treasury is now throwing over $100 billion a week into the market, and this only works on days when the market is crashing. THEN you can get people to suck up all you puke out, but the rest of the time you’re going to have to pay up, and Treasury has had to do so – dearly.

This may be the start of the “bond market dislocation” that I have long feared. I hope and pray not, but if this trend continues Treasury is going to find that it cannot sell its debt into the market without slamming rates higher, especially on the long end of the curve, which means an instantaneous implosion of what’s left in the housing market.

The ugly is that 3-month LIBOR widened today, as did the TED Spread. Both should have come in. They did not. LIBOR is essentially unsecured lending and the bad news is that a lot of corporate (and some personal) borrowing is indexed off it. If you are, you’re screwed.

Why has LIBOR refused to come in despite these “coordinated” effort? Its simple: the underlying trust issue has not been addressed, and nobody is seriously proposing to do so.

Paulson and Bernanke now are truly caught in the box, as I have been talking about for more than a year. As they introduce and fund these silly programs like the “TARP” each new program produces more foreclosures by depressing home values and thus tightens the spiral.

See, as long rates go up house prices go down, since the value of a home for most people is Dependant on what they can finance, and that is directly related to interest rates. Get out your HP12C and run the principal value change for a fixed payment if interest rates change from 6% to 8% or 10% – that’s the impact on the value of your house from these changes that are occurring in the Treasury marketplace.

This outcome is what I warned of in “Our Mortgage Mess” back in April of this year; a potential ramping of borrowing costs for government debt, which will not only make sustaining government spending (and perhaps government operation) impossible, but in addition destroy private credit by driving costs in the private sector skyward as well.

Simply put, the “TARP” or “EESA” must be repealed here and now.

It is unacceptable to risk Treasury Funding destruction in order to bail out some bankers. And make no mistake – there is and will be no benefit to taxpayers.

We are also now entering into earnings season, and Alcoa was a warning blast. They missed badly. That won’t be the last.

This is the “value trap” problem that many investors fall into. You see the market down 30% and think its a great buying opportunity.

It is a great buying opportunity only if earnings going forward can be sustained. But in this case, they cannot. It is flatly impossible; with Treasury borrowing money like a madman, tacking on more than 20% to the national debt in the space of months, carrying costs will inevitably rise as will taxes. Both of these have a multiplier effect (in the wrong direction) on corporate profits, and in addition the “faux profits” from financial engineering have all disappeared at the same time.

The S&P 500’s profit, in terms of gross dollars, are almost certainly going to come in by 50% from the highs, and that assumes we get a garden-variety recession and not something worse. This of course puts “Fair Value” on the SPX down around 750, or another 25% down from here.

The ugly stick potential is what I discussed yesterday, and that risk is very real. Treasury borrowing cost ramps can produce a 1930s-style dislocation in credit, and if it happens then you will see mass bankruptcies not only in corporate America but among individuals as well as borrowing costs ramp to the point of shutting down the marketplace for credit.

Treasury and Bernanke claimed that “credit markets seized”; this is only half-true. Credit markets always close to those who are lying, because there is no reason to loan someone money if you’re not reasonably sure you will get paid back.

But there is a second form of seizure and this is the frying pan into which we’ve now jumped – that is a credit market that prices beyond what the market can bear at its imputed rate of return. In that market credit is available but it does not matter, as you can’t make enough profit to generate a positive carry on the borrowed money, and consumers in that environment fall into a vortex of interest payments that spiral faster than they can borrow to stay ahead of them.

That rabbit hole is how we got the 1930s, and it is the danger we now face. Congress was in fact conned by Treasury, George W. Bush and the banking industry (including Ben Bernanke), who instead of forcing the malefactors into the open and exposing those who were bankrupt (or just plain corrupt – notice the common stem on both words?) threw them a line – unfortunately, the line is cleated to the entire economy of the United States, and they have enough negative buoyancy to drag us all under the waves.

——————————————————

Analysis: This is one of many opinions floating around all over the cyberspace regarding the latest downward spiral in the stock market. The consensus is clear; a few operatives with a major stake in the gamut of the financial world are driving the mania for their profiteering with utter disregard for the rest of the population around the world.

It is time for the people of the United States and around the world to rise to the occasion and intervene as the snowballing of losses in market shares is not a natural event. Clearly, this kind of manufactured, well-orchestrated and premeditated mechanism is the result of greed, corruption and cronyism that is rampant and has now come to surface.

Not surprisingly, there is no investigation or reports by the media as the Corporations, the de facto beneficiaries own them. The world must awaken now and deal with the reality to bring all of these entities to justice. It is time to make every one of them accountable for their actions and inaction as well as make them absorb all of the losses generated by their devious “modus operandi”.

The current situation is not an isolated occurrence. The cause and effect factor is evident in the existing stock market turmoil. As suggested earlier, the unethical practices resulting from the lack of accountability and oversight is contributing to the pandemonium in the market worldwide with the infusion of the “survival of the fittest” theory.

The world is shocked and in despair, seeing no end to the plundering of wealth that rightfully belongs to the righteous and not the self-righteous. However, it is presumptuous of those involved in this mass abduction of world treasury that they will not be exposed and brought to spotlight.

Perhaps, Armageddon is the only alternative now to restore morality and world order. The degradation of principles, ethics and democratic values by the ruling power will not escape the judicial verdict.

Therefore, it is in the best interest of all those involved in the conspiracy to come forward and demonstrate figment of integrity by stabilizing the stock market decline or be prepared to deal with the wrath of natural phenomenon.

Further, to those entities responsible for the current economic disaster, “the end justifies the means”.
Any attempt to ignore the warning will be an invitation to their peril.

If the authorities in power fail to exercise diligence, proper management, and immediate interventional policies to stabilize the market, they will share similar destiny as the recently convicted O.J. Simpson.

The judicial mantle seized by the power is in denial and defiance of the existence of force that will deliver justice.

The mortals brought nothing upon their birth hence; take nothing upon death.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Business | Leave a Comment 

Bailout Failure

September 29, 2008

The democratic system has failed to rescue the nation at the hour of crisis. The party bickering and “partisan politics” has taken precedence over “main street” struggles. It is clear from the action of the legislators voting against the “emergency” plan that their concern for the return to power is paramount than the “average citizen’s” livelihood. The explanation for their refusal to cooperate does not resonate with the realities in the “main street”. The nature of global economy is slighted with distracted opinions and determined position in this crucial legislation.

Excerpt of one of the legislators reason to vote against the bailout.

Source : Democracynow.org – Thank you.

According to Democratic Congressman Rep. Dennis Kucinich – “Is this the United States Congress or the Board of Directors of Goldman Sachs?” Rep. Dennis Kucinich Rejects $700 Billion Bailout
The House is set to vote today on a $700 billion emergency bailout plan for the financial industry. The proposed legislation was forged during a marathon negotiating session over the weekend between lawmakers from both parties and Treasury Secretary Henry Paulson. The 110-page bill would authorize Paulson to initiate what is likely to become the biggest government bailout in US history, allowing him to spend up to $700 billion to relieve faltering banks and other firms of bad assets backed by home mortgages, which are falling into foreclosure at record rates.

AMY GOODMAN: Right, but the Democrats are in charge of this.

REP. DENNIS KUCINICH: Right. You know, I’ll tell you something that we were told in our caucus. We were told that our presidential candidate, when the negotiations started at the White House, said that he didn’t want this in this bill. Now, that’s what we were told.

AMY GOODMAN: You were told that Barack Obama did not want this in the bill?

REP. DENNIS KUCINICH: That he didn’t want the bankruptcy provisions in the bill. Now, you know, that’s what we were told. And I don’t understand why he would say that, if he did say that. And I think that there is a—the fact that we didn’t put bankruptcy provisions in, that actually we removed any hope for judges to do any loan modifications or any forbearance. There’s no moratorium on mortgage foreclosures in here. So, who’s getting—who’s really getting helped by this bill? This is a bailout, pure and simple, of Wall Street interests who have been involved in speculation.

AMY GOODMAN: Congressman Kucinich, can you explain how it is that the Democrats are in charge, yet the Democrats back down on their demand to give bankruptcy judges authority to alter the terms of mortgages for homeowners facing foreclosure, that Democrats also failed in their attempt to steer a portion of any government profits from the package to affordable housing programs?

REP. DENNIS KUCINICH: Well, I mean, those are two of the most glaring deficiencies in this bill. And I would maintain there was never any intention to—you know, well, many members of Congress had the intention of helping people who were in foreclosure. You know, this—Wall Street doesn’t want to do that. Wall Street wants to grab whatever change they can and equity that’s left in these properties. So— .”
____________________

Review: There is no disagreement in this context. However, the repercussions of failing to act is far greater than the stakes involved in the initial bailout that is being carried out cautiously and judiciously by the remaining members of the “Congress”. The legislators’ rhetoric does not serve the purpose as the U.S economy is the engine of the global markets and the ripple effect is already felt in Europe and worldwide. Today’s plummeting of the stock market is yet another sign of the “financial catastrophe” at our doorstep.

With respect to the elimination of “bankruptcy provision” as discussed in the above interview, the “Democratic Presidential Candidate”, i.e. Senator Barack Obama’s position is apparent in the “housing market” debacle. It is time for the Democratic Party to be forthcoming to the democratic base as well as others and explain the reason behind such notion to alienate the worst hit population i.e. the “homeowners” in this bailout proposal.

As for the GOP members of Congress, defying the national interest by voting against the bailout proposal, the following questions arise,

1. Where were the legislators when the economic meltdown was happening under their watch?

2. Why did they not alert their own party and the administration that is notorious for reckless
policies and “bankrupting” the economy under their reign of power?

3.Whatever happened to the passion and pessimism about the “Wall Street” performance leading
the world’s economic power on the verge of collapse?

Alas, “Rip Van Winkle” is awakened by the financial “thunderbolt” and causing havoc in the “Capitol Hill” , the heavenly abode of the legislators.

Ironically, the two extreme political factions appear to come in terms with agreement on a single platform , i..e. protests the bailout and attempts to derail the entire economic infrastructure. The spectacular performance is to earn voter confidence and retain power for further economic disasters.

It is time to focus on the dire situation and market reaction in the United States and worldwide that is beckoning to act promptly and effectively by facilitating liquidity in the financial market.

The lawmakers concerned about taxpayers must also realize that taxpayers’ investments are the major casualty in the current political fiasco.

It is the duty of every legislator to put “partisan politics” aside and act diligently by coming forward and resolving the national and world financial crisis in the best interest of the people, responsible for their power.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Business | Leave a Comment 

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