Off In The Weeds

Condi goes wandering. AP (03.31.06):

“Secretary of State Condoleezza Rice conceded Friday that the United States probably has made thousands of ‘tactical errors’ in Iraq and elsewhere, but said it will be judged by its larger aims of peace and democracy in the Middle East.

The U.S. diplomat met loud anti-war protests in the streets and skeptical questions about U.S. involvement in Iraq at a foreign policy salon Friday, including one about whether Washington had learned from its ‘mistakes over the past three years.'”

Rice Concedes Errors in Iraq, Elsewhere

Question: how many tactical errors does it take before you end up with a huge cluster fuck?

“Rice replied that leaders would be ‘brain-dead’ if they did not absorb the lessons of their times.”

Might this be in reference to someone we know? Big Don going to get the boot, perhaps? Nelson Report (03.30.06), via Laura Rozen:

“Republican friends say do not expect to see any major moves, including asking Treasury’s John Snow to retire, before Bolten is in place. But when that happens, it will shock few.

The ‘Big One’ is Rummy…has President Bush finally gotten to the point where he sees Defense Secretary Don Rumsfeld as a liability, not an asset? You can see evidence for this, if you want.”

War and Piece:

“Specifically, note who has been run out for TV recently defending and explaining Iraq…Bush, not Rumsfeld. The President has been forced to put himself irrevocably on the line, both in public, and with the press, because Rumsfeld has lost all credibility…that’s what our Republican friends say is the ‘inside word’.”

And that sanction thing with Iran? Ain’t happen’. NYTimes (03.31.06), via LeftCoaster:

“Secretary of State Condoleezza Rice, meeting here on Thursday with representatives of the other four permanent members of the United Nations Security Council, raised the idea of imposing unspecified sanctions on Iran, but she received a decidedly cool reaction from China and Russia.”

Rice Floats the Idea of U.N. Sanctions on Iran, but China and Russia Reject It

“Dai Bingguo, China’s vice minister of foreign affairs, rejected the idea of sanctions and offered a thinly veiled criticism of the war in Iraq when he said: ‘The Chinese side feels there has already been enough turmoil in the Middle East. We don’t need any more turmoil.'”

Credibility Gap

Then again, having a credibility gap assumes you had some to start with. ABCNews(03.30.06), via FirstDraft:

“A letter from President Bush to Iraq’s supreme Shiite spiritual leader, Ayatollah Ali al-Sistani, was hand-delivered earlier this week but sits unread and untranslated in the top religious figure’s office, a key al-Sistani aide told The Associated Press on Thursday.”

Shiite Ayatollah Ignores Letter From Bush

It’s one thing if you get a response to your letter. It’s another if the recipient reads it but doesn’t respond. It’s entirely another if the recipient doesn’t even open it.

At least al-Sistani hasn’t just tossed the thing. Not yet at least.

It’s the incompetence, stupid.

$1 Billion Later

Feeling safer yet? It’s the incompetence, stupid. AP (03.31.06):

“For close to $1 billion, airport security officials think they ought to have closed circuit televisions that work, telephones that can put callers on hold and radios that reach all corners of the airport.

But some officials don’t have the equipment they need because the Transportation Security Administration didn’t keep proper tabs on its billion-dollar contract with Unisys, according to a Homeland Security Department inspector general report released Thursday.”

Report: TSA Got Little for $1 Billion

“Unisys performed so poorly that the inspector general, Richard Skinner, recommended that the project be put out for bid again.”

“‘The original funding is almost exhausted but many airports still do not have basic information technology and a telecommunications infrastructure,’ the report said.”

“Blue Bell, Pa.-based Unisys did not reply to a request for comment.”

What were some of the problems? Unisys gave the TSA radios that “didn’t always communicate with each other inside the same concourse”. The contract dictated that Unisys was to “upgrade software that a regular user could have updated easily.” Some of the cell phones Unisys supplied were “so old they actually have a mechanical bell that rings.” Bells in a cell phone. Nice.

Under the contract, “Unisys was to have provided dial-up connections, laptops, pagers and cell phones by Nov. 19, 2002. Six weeks later, the company was to have delivered high-speed connections, phones, encrypted radios and an electronic surveillance system. Eventually, Unisys was to provide command centers at airports, advanced wireless communications and interoperable radios.”

How well did they do? To date, Unisys has only performed the first phase. Give them credit though. They were only two years behind schedule with that.

Richard has been ripping large chunks out of Homeland Security of late. Washington Post (12.29.05):

“Nearly three years after it was formed, the immense Department of Homeland Security remains hampered by severe management and financial problems that contributed to the flawed response to Hurricane Katrina, according to an independent audit released yesterday.”

Homeland Security Is Faulted in Audit

“In addition, the report found, ‘the circumstances created by Hurricanes Katrina and Rita provide an unprecedented opportunity for fraud, waste and abuse,’ primarily because FEMA’s grant and contract programs are still not being managed properly.”

Homeland Security has not brooked criticism lightly from previous inspectors general. ABCNews (12.10.04):

“Clark Ervin [Harvard law, Rhodes Scholar] made himself very unpopular by issuing a series of stinging reports on security programs that he said had failed, officials he called inept, and fraud that he suspected.

His year-end report, out today, alleges that millions of dollars have been wasted or are unaccounted for by the department.”

Official Who Criticized Homeland Security Is Out of a Job

Clark left Homeland Security in a “mysterious fashion. Appointed by President Bush in December 2003 when Congress was out of session, Ervin was never confirmed by the Senate. Nor was he renominated by the White House this month when his ‘recess appointment’ – which lasted until the congressional session ended – expired Dec. 8.”

All things considered, it wasn’t so mysterious. “‘This actually is being done through the White House,’ said a former DHS official who requested anonymity because he continues to work with the department.”

Richard, who was Clark’s deputy inspector general, succeeded him.

While inspector general, Clark issued reports finding that:

• “Undercover investigators were able to sneak explosives and weapons past security screeners at 15 airports during tests in 2003.”
• “Federal air marshals, hired to provide a last line of defense against terrorists on airlines, slept on the job, tested positive for alcohol or drugs while on duty, lost their weapons and falsified information in 2002.”
• “Department leaders should have taken a more aggressive role in efforts to combine the government’s myriad terrorist watch lists since the department was created in 2003.”
• “The Transportation Security Administration (TSA) gave executive bonuses of $16,477 to 88 of its 116 senior managers in 2003, an amount one-third higher than the bonuses given to executives at any other federal agency.”
• “The TSA spent nearly $500,000 on an awards banquet for employees in November 2003. The cost included $1,500 for three cheese displays and $3.75 for each soft drink.”

Yum!! We like cheese. But that’s kind of a lot for a soda.

Oh and by the way, if you want to read Richard’s Unisys report, good luck finding it on the Homeland Security website. On the other hand, if for some perverse reason, you’re into the collected remarks of Michael Chertoff, that would be the place to go.

UPDATE: Skinner’s report, courtesy of Corruption Chronicles.

Damned Unions

It’s all their fault. Detroit News (03.29.06):

“General Motors Corp. disclosed two new government investigations into its accounting practices, including a federal grand jury probe of payments from suppliers, in revelations likely to further unsettle GM’s investors.

The widening probe of the accounting practices at GM, including a criminal investigation of the automaker once considered a model of financial probity, adds to the troubles of Chairman and CEO Rick Wagoner.”

GM: More woes, more cuts ahead

“GM previously received subpoenas from the SEC relating to its pension and retiree health care accounting as well as to transactions, including supplier price reductions, with bankrupt supplier Delphi Corp.”

Things are so hosed, GM has to redo all its financials. AP (03.29.06):

“In an annual regulatory report Tuesday, GM restated financial results from 2000 through 2004 because of a litany of accounting errors. GM had said March 16 that it was delaying filing its annual report because of an internal investigation into those errors.”

GM Warns It May Not Be Able to Sell Stake

Ooops! And that’s not all, folks! “Also Tuesday, GM said it is restating financial results for GMAC from 2003 through the third quarter of 2005. The restatement relates to the improper classification and presentation of cash flows for certain mortgage loans.” Ooops!!

Morons. No way around it.

Who cares about GMAC? Well, back in 1999 when GM’s management decided to spin-off Delphi, they “agreed to pay health care and pension benefits for Delphi retirees in the event of a bankruptcy filing within eight years.”

Lo and behold, Delphi filed bankruptcy within eight years, a filing which “may cost GM as much as $11 billion to cover contractual obligations including pensions”. In other words, GM has to sell GMAC to raise the dough.

Did we mention that Delphi’s pension plan is underfunded to the tune of $11 billion?

Let’s just sell GMAC and be done with it. Uhhh, hold on there, boss. LATimes (03.29.06):

“General Motors Corp. said Tuesday that it might be unable to sell a majority stake in its finance division. The warning came in an annual report that highlighted the myriad risks and financial woes confronting the world’s largest automaker.

GM has been counting on the sale of a 51% stake in General Motors Acceptance Corp. as a way to raise as much as $15 billion in badly needed cash for the struggling automaker.”

GMAC May Not Be Sold

“‘We are uncertain at this time if any transaction with respect to GMAC … will occur or, if any transaction were to occur, on what terms,’ GM said.”

Ahhh Delphi! The choirboys over there have enough of their own problems. “The U.S. Justice Department and the SEC are investigating accounting fraud at Delphi, a former GM subsidiary. One of the SEC investigations concerns Delphi’s precious metals transactions with Bank One.”

“The Troy-based supplier has already acknowledged widespread financial errors, including improperly accounting for transactions to meet its earnings targets.” Otherwise known as cooking the books.”

Delphi has really endeared itself to its workers. Bloomberg (10.26.05):

“Delphi Corp., the largest U.S. auto parts supplier, wants to cut workers’ wages by as much two-thirds, begin monthly charges for health care and eliminate health benefits for retirees as part of a plan to exit bankruptcy.

Delphi workers would earn as little as $9.50 an hour under the company’s contract offer.”

Delphi Proposal Cuts Wages, Reduces Health Benefits

In addition to slashing pay and health benefits, Delphi also proposed reductions in vacation days and pensions, essentially telling the UAW to take it or leave it. Delphi’s proposals have gotten better since then, if you can call “gradually cutting wages to about $16 per hour from some $27 per hour” better. On the other hand, this assumes GM would bail Delphi out. And GM needs to sell GMAC to raise the cash. And so on.

Anyway, how are Delphi’s execs making out? Right before Delphi filed, Chairman Robert S. Miller Jr. “increased severance packages for some top executives”, which didn’t sit all that well with some observers. And old Bob? His pay “includes a $3 million signing bonus and a $1.5 million annual salary”.

Kinda funny, how that works.

As for GM, another observer comes up with a sure-fire business model: “make cars and trucks people want to buy, and sell them at a profit.”

4.75%

How’s your ARM doing? Got one of those interest-only loans? AP (03.28.06):

“The Federal Reserve on Tuesday boosted a key interest rate to the highest level in five years as new Chairman Ben Bernanke followed the Alan Greenspan inflation-fighting formula.

The action, the 15th consecutive quarter-point move, left the federal funds rate at 4.75 percent, its highest level since April 2001.”

Fed Boosts Interest Rate to 4.75 Percent

Taking On Water Fast

Katherine watches her political future sink slowly in the West. Tampa Tribune (03.28.06), via TheCarpetbagger:

“Katherine Harris’ U.S. Senate bid suffered a major blow Monday with the departure of advertising consultant Adam Goodman, of Tampa, her most loyal political adviser for more than 12 years.

The departure raises questions about how long the struggling Harris campaign can stay alive.”

Harris Loses Another Key Player

Goodman, one of more than half a dozen key staff members to leave the campaign since last fall, said Harris is likely to be the subject of a barrage of negative political ads as the race nears its close this fall. ‘I can’t think of a strategy to protect her against them,’ Goodman said.”

This woman is going to be absolutely pasted come November.

Dear George

From the Insight (a wholly-owned subsidiary of the Washington Times) (03.27.06), via Huffington:

“An increasing number of House Republican members are urging President Bush to keep Karl Rove out of the driver’s seat in the 2006 congressional campaign.

GOP sources said House members have argued that Mr. Rove, White House deputy chief of staff and powerful Bush political adviser, is hampering what they believe could represent a comeback effort to retain control of Congress. The sources said Mr. Rove has been high-handed and out of touch with the interests of Republican constituents.”

GOP revolt: White House told Rove is out of touch

“‘There’s been increasingly greater ego and less substance in this man,’ a senior GOP source said. ‘He’s caused so much needless friction between the president and Congress.'”

Is Deadeye Dick returning fire here? Raw Story (03.27.06):

“Karl Rove, Deputy White House Chief of Staff and special adviser to President George W. Bush, has recently been providing information to special prosecutor Patrick Fitzgerald in the ongoing CIA leak investigation, sources close to the investigation say.
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According to several Pentagon sources close to Rove and others familiar with the inquiry, Bush’s senior adviser tipped off Special Prosecutor Patrick Fitzgerald to information that led to the recent ‘discovery’ of 250 pages of missing email from the office of Vice President Dick Cheney.”

Rove said cooperating in CIA leak inquiry

Getting down and dirty! The lads are playing for keeps this time. Steve Clemons is calling it a “deadly dog fight“.

Scary Pukes

Hey, they went after ’em. Now they own ’em. Bloomberg (03.28.06), via Huffington:

“Republicans, who have profited politically from emphasizing faith and family values, are now finding those same issues dividing the party.

Economic conservatives and secular Republicans complain their message is being drowned out by Christian conservatives preoccupied with banning abortion and gay marriage and limiting stem-cell research.”

Republicans Split Over Religion’s Growing Role in Their Party

“Let me tell you, how it will be. There’s one for you, nineteen for me.”

“‘The real schism of the party is not abortion or gay rights,’ [Republican pollster Tony] Fabrizio said. ‘It’s religiosity. It’s whether or not you believe God’s Law should be used to set public policy.'”

“Should five percent appear too small, be thankful I don’t take it all.”

“Conflict between religious and self-described moderate Republicans will intensify ahead of the 2008 presidential election, Fabrizio said.”

Thanks Again

Reuters (03.28.06):

“General Motors Corp. said it will cut a few hundred salaried jobs on Tuesday in its initial effort to reduce its U.S. white-collar work force by 7 percent this year.

The first cuts will be announced at 30 locations, according to a GM spokesman. Employees will be given continued compensation and benefits for a period of time, depending on their length of service, he said.”

GM says to cut hundreds of salaried jobs Tuesday

“The employees being let go on Tuesday will be asked to leave the company immediately.”

“‘Our aim is to treat the employees being separated with dignity and respect,’ GM spokesman Robert Herta said.” Just get the hell out of here now.

GM. Sigh! What can you say? An example of what can happen when your company is managed by morons. Reuters (03.28.06):

“Like the elephant in the living room, the decline of General Motors is a problem that investors don’t want to think about but can’t ignore.

The world’s largest automaker, whose debt is close to the gross domestic product (GDP) of Belgium, lost more than $10 billion last year and is facing a bankruptcy that would reap devastation in the financial markets.”

Credit investors ponder GM-sized hole in universe

“GM’s share price has halved in the past year, while its $100 billion of bonds have been cut to junk, confronting investors with the prospect of never getting their money back.”

“It is losing market share in the United States, has $300 billion of long-term debt, provides health benefits to 1.1 million people (at the rate of about $1,500 per car produced), is threatened with a strike by its largest supplier, which is bankrupt, and is being investigated by the Securities and Exchange Commission.”

Other than that, what’s the problem?

Just In Case

Real vote of confidence, this is. Aljazzera (03.28.06):

“East Asian economies need to prepare for a possible collapse of the US dollar, the Asian Development Bank says.

The warning comes as the US trade deficit reaches a record high and global interest rates continue to rise.”

‘Asia must prepare for dollar collapse’

“Masahiro Kawai, the ADB’s head of regional economic integration, said on Tuesday: ‘Any shock hitting the US economy or the global market may change investors’ perceptions given the existing global current account imbalance.”

“‘Our suggestion to Asian countries is: Don’t take this continuous financing of the US current account deficit as given. If something happens then East Asian economies have to be prepared.'”

Well come on now. Can’t be that bad, can it? USAToday (03.14.06):

“The most complete scorecard of the United States’ international trade performance deteriorated to a record $804.9 billion deficit in 2005, the Commerce Department said Tuesday.

The ‘current account’ deficit, including trade in goods, services and investment income, was 20.5% greater than 2004’s $668.1 billion figure and more than twice as large as just four years earlier.”

U.S. trade deficit balloons to $805B

“‘We’re at a tipping point,’ says Catherine Mann of the Institute for International Economics.”

Some appear to have noticed.

Another One Bites The Dust

AP (03.28.06):

“White House chief of staff Andy Card has resigned and will be replaced by budget director Josh Bolten, an administration official said Tuesday.

President Bush was expected to announce the shake up during a meeting with reporters later Tuesday morning in the Oval Office of the White House.”

White House Chief of Staff Card to Resign

“The move comes amid a sharp decline in Bush’s approval ratings and calls from Republicans for the president to bring in new aides with fresh ideas and new energy.”

Ahhhh, Andy. Who can forget the illuminating observation he made back in September, 2004: “White House Chief of Staff Andrew Card said yesterday that President Bush views America as a ’10-year-old child’ in need of the sort of protection provided by a parent.” Gee. Not too patronizing or anything.

And what is American thinking about George these days? “The single word most frequently associated with George W. Bush today is ‘incompetent’, and close behind are two other increasingly mentioned descriptors: ‘idiot’ and ‘liar’.”

Oh my! Aren’t we the sassy little punks, eh?

The Oil Company Relief Act

NY Times (03.27.06):

“For more than a decade, lawmakers and administration officials, both Republicans and Democrats, have promised there would be no cost to taxpayers for a program allowing companies to avoid paying the government royalties on oil and gas produced in publicly owned waters in the Gulf.

But last month, the Bush administration confirmed that it expected the government to waive about $7 billion in royalties over the next five years, even though the industry incentive was expressly conceived of for times when energy prices were low.”

Vague Law and Hard Lobbying Add Up to Billions for Big Oil

“And that number could quadruple to more than $28 billion if a lawsuit filed last week [by Kerr-McGee] challenging one of the program’s remaining restrictions proves successful.”

Ahhh yes. The good old oil lease royalty program. We are in awe of the magnitude and brazenness of this scam. Like the oil companies are in dire straits after the year they had in 2005.

Also, bear in mind the royalty program is being managed by the Interior Department, which has had its own problems with conflicts of interest.

Triple Whammy

Ahhh, sweet religion. Can really get people believing in all sorts of things, can’t it? Still, it’s nowhere near as ominous as the Red Heifer prophecy. AlJazeera (03.27.06):

“A Muslim couple in India have been told by local Islamic leaders that they must separate after the husband ‘divorced’ his wife in his sleep.

The Press Trust of India said in a report published on Monday that Sohela Ansari had told friends that her husband Aftab had uttered the word ‘talaq’, or divorce, three times in his sleep.”

The husband who woke up divorced

“When local Islamic leaders heard about the incident, they said Aftab’s words constituted a divorce under an Islamic procedure known as ‘triple talaq‘.”

Plus, it’s gone high-tech. Within the last few years, “several Indian Muslims have taken to divorcing their wives by mail, over the phone and even through mobile phone text messages.”

Gotta believe email’s been used too.

Off The Deep End

Saint Petersburg Times (03.25.06), via Huffington:

“As Katherine Harris’ rocky Senate campaign takes an increasingly evangelical Christian bent, her remaining top campaign staffers are preparing to jump ship.

Colleagues say Harris’ closest confidante lately appears to be spiritual adviser Dale Burroughs, founder of the Biblical Heritage Institute in Bradenton.”

Harris puts her faith in religion

“‘Dr. Dale,’ as she is known among campaign staffers, describes herself as a licensed clinical pastoral counselor who counsels in behavior temperament, career, crisis and disaster, among other things.”

Considering the way Katherine’s campaign has been going, a counselor specializing in crisis and disaster may be just what the doctor ordered. Orlando Sentinel (03.26.06), also via Huffington:

“U.S. Senate candidate Katherine Harris slogged through another political morass Saturday when she suggested that one of her most senior advisers had fed embarrassing information to the press.

Appearing at a gun show in Orlando, Harris said that Adam Goodman, her longtime media consultant, had told the St. Petersburg Times that he and chief strategist Ed Rollins were leaving the campaign.”

Harris disputes reports of defections

Not true, says Katherine. “‘Ed Rollins is very committed to my campaign.'”, says Katherine.

How about Adam? “‘He is, is, uh . . . heh . . . no comment.'”, says Katherine.

Then there is the confusion about whether or not she is “going to commit [her] legacy from [her] father, $10 million” to the campaign. Yes, she told Sean Hannity (Crooks and Liars has the video, by the way). No, said her campaign people the next day.

The latest has been a definite maybe. “On Friday, a day after being asked about the apparent discrepancy between what Harris said last week and what [campaign representative Morgan] Dobbs said Thursday, Dobbs sent an e-mail to the Sentinel saying she would provide no additional information.”

“‘I do not have an official comment from the campaign on this issue,’ she wrote.”

Katherine may be putting her faith in religion, but it sounds like she’s keeping her money in the bank. As well she should:

“A University of North Florida poll released hours before her television appearance [March 16 on Hannity and Colmes] showed Harris 20 percentage points behind Nelson, 48 percent to 28 percent.”

Quinnipiac on February 24, 2006: “In Florida’s U.S. Senate race, Democratic incumbent Sen. Bill Nelson leads U.S. Rep. Katherine Harris, his likely Republican challenger, 53 – 31 percent, similar to his lead in August 31, 2005, and November 15, 2005, Quinnipiac University polls.”

As the Orlando Sentinel noted, the above Quinnipiac survey “was [taken] before a defense contractor admitted giving her illegal campaign donations while asking her to help him win $10 million in federal aid.”

The incomparable TPM Muckraker has its very own Katherine Harris archives.

We Got This Call, See

Pervez asks for a favor? Washington Post (03.25.06):

“The Bush administration has withdrawn an invitation to a Pakistani lawmaker and a prominent critic of President Pervez Musharraf who was to arrive in the United States today as a guest of the State Department, setting off charges that the action came at the behest of the Pakistani government.

Sana Ullah Baloch, who had been invited by the State Department last year and issued a visa, was told recently by the U.S. Embassy in Islamabad that he could not attend a State Department-sponsored program on accountability in government and business and that a visa he had already received had been revoked.”

U.S. Revokes Visa Of Pakistani Senator

Let’s see. He was invited by the State Department, and had already been issued a visa. What happened? Strap on the doublespeak helmet, because here it comes.

It was the funding. “American officials first told Baloch in a letter sent March 13 that they had taken the action because of ‘a recent withdrawal in funding which made it necessary for us to scale back the program.’

It wasn’t the funding, and it’s none of your business. “In an interview Wednesday, State Department spokeswoman Nancy Beck said the problem was not funding but rather new information that was received after Baloch had been approved that ‘led us to believe he was not eligible for a visa.’ She declined to elaborate.”

Not us! The Pakistani government, through its embassy, said it had nothing to do with it. The embassy’s press minister said “that the issuance or withdrawal of US visas is entirely the business of the US government and its representatives. ‘I reject in the strongest possible terms the allegation or the implication that the government of Pakistan had anything to do with the decision of the State Department to first issue a visa to the Senator and then withdraw it.'”

Baloch represents Balochistan, which has been a real troublespot for Pervez: “Members of the Pakistan Senate have criticised the continuing military operations in Balochistan and the country’s tribal areas in FATA [the Federally Administered Tribal Areas] and called for promoting dialogue and jirgas to resolve the problems afflicting the strife torn province.”

Fun fact: Balochistan shares a very long and very porous border with Iran and Afghanistan.