Month: April 2009

Categories
China Economics Financial Crisis

Theories of the Financial Crisis: The Chinese-American economic imbalance

[digg-reddit-me]John P. Judis summarized this theory of the crisis in The New Republic, “Economists know the fatal flaw in our system – but they can’t agree how to fix it.” Judis described how America has relied for decades on a “tortuous financial arrangement that knits together its economy with those of China and Japan”:

This informal system has allowed Asian countries to run huge export surpluses with the United States, while allowing the United States to run huge budget deficits without having to raise interest rates or taxes, and to run huge trade deficits without abruptly depreciating its currency. I couldn’t find a single instance of Obama discussing this issue, but it has been an obsession of bankers, international economists, and high officials like Federal Reserve Chairman Ben Bernanke. They think this informal system contributed to today’s financial crisis. Worse, they fear that its breakdown could turn the looming downturn into something resembling the global depression of the 1930s…

China depends on exports to the United States, and the United States depends on capital from China. If that special economic relationship breaks down, as it seems to be doing, it could lead to a global recession that could morph into the first depression since the 1930s.

Judis’s article seems to rely heavily on the analysis of Nouriel Roubini wrote most prolifically on this subject and predicted this system was approaching a crisis point in 2006. In a paper written with another prescient economist Brad Setser, Roubini pointed out the instability inherent in a system in which:

The US absorbs at least 80% of the savings that the rest of the world does not invest at home….[And] Social peace in China comes at the expense of political peace in the US.

Historian Niall Ferguson pointed the historical anomaly this represents as:

Usually it’s the rich country lending to the poor. This time, it’s the poor country lending to the rich.

Mark Landler explained the dynamic at work – and how it led to the current crisis – in a New York Times piece that was part of that newspaper’s “The Reckoning” series looking in depth at issues that led to the crisis:

In the past decade, China has invested upward of $1 trillion, mostly earnings from manufacturing exports, into American government bonds and government-backed mortgage debt. That has lowered interest rates and helped fuel a historic consumption binge and housing bubble in the United States…

By itself, money from China is not a bad thing. As American officials like to note, it speaks to the attractiveness of the United States as a destination for foreign investment. In the 19th century, the United States built its railroads with capital borrowed from the British.

In the past decade, China arguably enabled an American boom. Low-cost Chinese goods helped keep a lid on inflation, while the flood of Chinese investment helped the government finance mortgages and a public debt of close to $11 trillion.

But Americans did not use the lower-cost money afforded by Chinese investment to build a 21st-century equivalent of the railroads. Instead, the government engaged in a costly war in Iraq, and consumers used loose credit to buy sport utility vehicles and larger homes. Banks and investors, eagerly seeking higher interest rates in this easy-money environment, created risky new securities like collateralized debt obligations.

“Nobody wanted to get off this drug,” said Senator Lindsey Graham…

As Chinese money flooded into the American market, it created bubbles in which prices were inflated.

The primary beneficiaries of these bubbles were the economic elite whose jobs were not being outsourced or undercut by Chinese manufacturing and who owned stock, housing, or other assets which increased in value due to the added funds sloshing around in the financial system.

The American government similarly benefited from this Bretton Woods II as they were able to engage in wars, increase domestic spending, and lower taxes all at the same time – all without paying a higher interest rate on their deficit spending.

Financial firms made huge amounts of money as the inflow of the world’s savings bid up the prices of the assets they were buying and selling – and of course, they took the first cut of any profits from the sales – and assessed numerous fees for whatever it was they were doing. With an excess of capital, borrowing is cheap – which allows firms to make massive leveraged bets – also increasing their profits as well as their risk of being wiped out.

Lower wage workers benefited to a lesser extent as cheap Chinese goods – especially as sold by Wal-Mart – increased their buying power even as their wages stagnated over the past decade. Coupled with the easy credit resulting from the excess of money in the financial markets, the majority of workers were able to approximate a rising standard of living even as their wages stagnated – undercut by competition from abroad.

Until now – as this whole house of cards is falling apart. 

China is hoping the solution is to jump start it’s own domestic consumption – which might be difficult due to a wariness on the part of many Chinese about their future prospects: 

China kicked off its own campaign to encourage domestic consumption, which it hoped would provide a new source. But Chinese save with the same zeal that, until recently, Americans spent. Shorn of the social safety net of the old Communist state, they squirrel away money to pay for hospital visits, housing or retirement.

This accounts for the savings glut identified by Mr. Bernanke.

The way things are going now – it seems we’re screwed unless the Chinese people stop being so responsible thrifty and start spending like drunken American sailors. A paradox of thrift indeed.

—–

It should be noted that while I – and most of the authors I cite – specifically talk about the Chinese-American relationship, the points being made apply to East Asia in general – especially Japan which has contributed to the imbalance nearly as much as China.

Continue reading “Theories of the Financial Crisis: The Chinese-American economic imbalance”
Categories
National Security The Bush Legacy The Opinionsphere The War on Terrorism

Cheney Didn’t Panic

[digg-reddit-me]Andrew Sullivan begins to explain Dick Cheney’s recent odd agreement with anti-torture journalist Mark Danner – as both call for the release of memos which demonstrate the efficacy of torture with this typically insightful observation:

The one thing you saw most plainly in the Plame affair is how obsessed Dick Cheney is with public image, the chattering classes and spinning stories that might reflect poorly on him. The act is the elder statesman, authoritatively reviewing the world scene, soberly making judgments, calmly explaining it later to those pesky people who are required to elect you every four years.

This seems obviously true now that I’ve read it – although I cannot remember this point being discussed before. Cheney demonstrated that he cared a great deal for his public image – even if he was not concerned with that other related quality which we can call popularity. Where I think Andrew goes wrong is in how he explains Cheney’s support for torture in the next sentence:

The reality is a man who lost it on 9/11, leapt immediately to apocalyptic conclusions, and then, as the dust cleared, was unable to go back on the war crimes he had authorized and so dug in ever more deeply to justify them.

I cannot know what precisely motivated Cheney in the aftermath of September 11. But my impression is not that he lost it – but that he saw it as an opportunity to do what needed to be done. Certainly Andrew would agree with this assessment as to Cheney’s motivation regarding executive power and the unitary executive and even the invasion of Iraq. Cheney wanted to do all of these things beforehand and saw September 11 as a justification for each of his preconceived policy prescriptions. Andrew is now trying to account for why Cheney authorized torture – starting with the presumption that he did not plan on doing so beforehand. I too doubt that Cheney intended to institute a policy of torture before he came into the White House. But I believe that given his beliefs, it was inevitable that he would support it, whether September 11 happened or not. Without September 11, he may never have been given the chance to support it – but he would have done so if he had been given such a chance.

There is little evidence of Cheney’s thinking about torture before September 11 – although Barton Gellman in The Angler describes Cheney’s beliefs about torture in the context of the kidnapping and torture of William Buckley by Hezbollah in Beirut in 1984:

Cheney had been thinking about the power of cruelty since at least 1984. In March of that year, the CIA’s chief of station in Beirut, William Buckley, fell into the hands of Hezbollah. “He has kidnapped and tortured,” recalled Tom Smeeton, a former CIA officer who served then as minority staff director of the House Intelligence Committee. Cheney, a committee member, followed the Buckley case closely, reviewing a secretly obtained videotape of the station chief’s decline. Cheney “was quite concerned about the implications of his torture and what that could mean in terms of revelations of various intelligence operations going on in the Middle East,” Smeeton said. The presumption they shared, with foreboding, was that torture worked.

I’m sure Cheney – like many who watch action movies – believed that torture was effective. At the same time, Cheney seemed to have a romantic notion of doing the hard, unpopular thing – of living in moral gray areas – of the dark but necessary arts. This of course was evident in his infamous Meet the Press appearance on September 16, 2001. You can see this attitude in his opinion of the crimes of the Richard Nixon and Iran-Contra scandals. This romanticization of the Dark Side of power – the necessary evils done by rough men in the night to protect the rest of us made torture was inevitable. Of course, torture is not normally considered a “gray” area – so a legalistic distinction had to be made:

After September 11, Cheney and his allies pioneered a distinction that the U.S. government had not claimed before. “Torture,” narrowly defined, would remain out of bounds. But violent, cruel, or degrading methods, the terms of art in Geneva, were perfectly lawful.

But the main reason I don’t buy the idea that Cheney’s decision to torture was a product of panic was his apparent composure on September 11 – and the coherence of his response. Back to Barton Gellman in The Angler again:

If a mandarinate ruled America, the recruiting committee on September 11 would have had to find someone like Cheney. “I don’t want to get too poetic about this, but it’s almost as if his whole life had been a preparation for this moment in history,” said Jack Kemp, who used to be a future vice president himself. Scooter Libby quoted that line, too, giving credit to Winston Churchill. Cheney professed no knowledge of fate. He had some acquaintance, though, with force and counterforce. Al Qaeda having struck on his watch, Cheney made clear by word and deed that he would take a leading role in the nation’s reply. So, too, did Libby and Addington. The three of them simply knew what had to be done, a considerable advantage in the debate that would soon follow.

By my reading, the Bush administration approved torture because in the aftermath of September 11, every one panicked – except Dick Cheney – who calmly applied his governing philosophy to the crisis. Cheney himself fomented and controlled the panic with such things as the One Percent Doctrine. His romantic attitude is best demonstrated by the character of Jack Bauer:

Except apparently for the fact that Bauer is humanized by his guilt over what he has done and believes it is necessary for the system to bring him to justice.

Cheney has exhibited no such guilt for his actions – and in fact has demonstrated pride.

Cheney didn’t panic on September 11 – and I don’t think he is panicking now. He does not believe he did anything wrong – and he does believe that no matter what the press says today, history will support him in the end. This is part of his romantic self-image – of a master of the Dark Side. He knows that if torture is held to be not only evil, but an ineffective (and indeed counterproductive) tactic, his legacy will be forever blackened. He’s fighting for his legacy – part of which is the endorsement of torture. He truly believes torture works – and he seems to feel no shame about having authorized it.

Categories
Barack Obama Politics The Opinionsphere

3 interesting short essays

David Brooks approvingly describes the attitudes of the market-state liberals of the Obama administration in the New York Times:

When the members of this new establishment are confronted with a broken system — whether it involves hospitals, energy, air pollution or cars — their approach is the same. They aim to restructure incentives in order to channel the animal drives of the marketplace in responsible directions.

William Ecenbarger in the Smithsonian magazine asks if “we take more risks when we feel safe”:

This counterintuitive idea was introduced in academic circles several years ago and is broadly accepted today. The concept is that humans have an inborn tolerance for risk—meaning that as safety features are added to vehicles and roads, drivers feel less vulnerable and tend to take more chances. The feeling of greater security tempts us to be more reckless. Behavioral scientists call it “risk compensation.”

…The phenomenon has been observed well beyond the highway—in the workplace, on the playing field, at home, in the air. Researchers have found that improved parachute rip cords did not reduce the number of sky-diving accidents; overconfident sky divers hit the silk too late. The number of flooding deaths in the United States has hardly changed in 100 years despite the construction of stronger levees in flood plains; people moved onto the flood plains, in part because of subsidized flood insurance and federal disaster relief. Studies suggest that workers who wear back-support belts try to lift heavier loads and that children who wear protective sports equipment engage in rougher play…

Walter Shapiro explains why “Americans like Big Government” in The New Republic, even though that old Ronald Reagan line about “I’m here from the government and I’m here to help” still goes over well: because when federally-funded projects are successful, local politicians take the credit – and when it fails – they pass up the blame:

Even if these projects turn out to be the greatest job-creation engine since the construction of the pyramids, Obama and the stimulus package would only receive marginal political credit. Governor Ted Strickland will undoubtedly brag about the new roads and bridges when he runs for reelection next year and Columbus Mayor Michael Coleman will bask in the success of the police academy’s Class of ’09. This is not ingratitude, but an illustration of how the political game works. The feds pay the bills (and sometimes take the heat), while state and local officials never miss a ribbon cutting.

Categories
Barack Obama Liberalism Political Philosophy Politics

Ten Principles of Liberalism

[digg-reddit-me]Barack Obama’s incipient presidency has set off a furious debate over what his administration’s principles are. George Will described Obama’s administration on this past Sunday morning as the Third Wave of government intervention and expansion (with FDR’s New Deal and LBJ’s Great Society being the first two. Will, for some reason, declined to mention TR’s introduction of the regulatory state, as does almost everyone.) Right-wingers from Rush Limbaugh to Sarah Palin have described Barack Obama as a “socialist.” Meaghan McCain and Niall Ferguson deride what they characterize as a leftist agenda. On the other hand, supporters of Barack Obama’s candidacy have criticized him for betraying his progressive vision and defending the status quo. Others have defended him against charges of socialism and suggested he stands for good old-fashioned liberalism.

At this moment in history, as capitalism seems to have failed, as American international power is at an ebb, as globalization seems destined to continue, as the threat of terrorism continues to grow – evident both in our vulnerability and in the number of our enemies, as the nation-state which derives its legitimacy from providing for the needs of its citizens seems to be evolving into a market-state which is legitimated by the opportunities it offers its citizens – at this moment in history, Barack Obama has become president. The liberalism I am attempting to describe in this post is merely a sketch – but it is a sketch of what I see to be the right approach in this world – which as I have commented before, seems to have much in common with what I identified in the summer of 2007 as the Obama approach. As liberalism tends to be pragmatic rather than theoretical, many of these principles have regained prominence most specifically in response to recent problems in the world and with the Bush administration. I am focusing here on those aspects of principles which distinguish liberalism from other political philosophies – specifically, progressivism, various leftist movements, conservatives, libertarians, and extreme right-wingers. 

Here are the 10 principles of liberalism – whose three goals are to allow individuals liberty, opportunity, and community.

  1. Doubt v. Action. These two competing impulses are at the heart of all the rest of these principles. A Hayekian doubt about the efficacy of centralized planning coupled with a Rooseveltian (TR or FDR) need to act – to conduct “bold, persistent experimentation” while acknowledging that our “grasp on the truth is always provisional.” This balance was best articulated by Reinhold Niebuhr who wrote that while “We must exercise our power,” we must be remain aware that power corrupts even ourselves. Hayek similarly explained that “we needed to think of the world more as gardeners tending a garden and less as architects trying to build some system.” Liberalism was never utopian, but today’s liberalism has been tempered by the failures of big-state liberalism – as well as the failures of anti-regulatory “free” market fetishism. Only conservatism, properly defined historically, attempts a similar balance.
  2. The Market & the Government. Contemporary liberals reject the doctrinaire distinction between the “market” and the government that animated so much of the conflict in the 20th century. The free market should not be treated as some theoretical utopian ideal or as a perpetually lost state of innocence. And the government is not some evil force which must be reduced until it is of a size that it “could be drowned in a bathtub.” Rather the government and the free market exist together – and in a capitalist republic such as ours, each is dependent on the other. The free market does not exist in a state of nature but must be created by and maintained by the society and the state which provide the values and the rules and other conditions without which a market cannot be free. In other words, a free market is a product of a just government.
  3. Empower individuals. One of the key roles of government then – in creating a free market – is to empower individuals to participate in market freely, as individuals. A market is less than free if employees can be held hostage by large corporations and health care burdens ((As Daniel Gross explained in Slate, “An affordable national health care policy, which could allow people to quit their jobs and launch businesses without worrying about the crippling costs of premiums or medical costs, might be a better spur to risk-taking than targeted small-business loans.”)). To empower individuals then, the government must ensure that there is sufficient technological and transportational infrastructure; the government must ensure that basic needs can be met by individuals – for example access to health care; and the government must ensure that every individual has the opportunity to get an education. At the same time, individuals must be empowered to shape and control government more directly. Liberalism in a market-state must exhibit a preference for the individual over the corporation and government and must empower individuals against bullying and coercive measures of these large institutions.
  4. Predictability & stability. Government in a market-state must be predictable and the economy and society must be stable. Neither of these is an absolute good – both are contingent goods – as without predictability and stability, economic growth is impeded and liberty is impossible. Related concepts are sustainability and resilience.
  5. Reform. (Not revolution.) Liberalism has embraced a policy of reform – presuming that the status quo is not perfect yet acknowledging that rapid change could lead to worse. Reform is the balance liberalism strikes between stability and progress. This distinguishes them from conservatives who embrace the status quo over any change (standing athwart history yelling stop!) and leftists and right-wingers who embrace revolutions of various types to overthrow the current order as fundamentally wrong. The focus on reform is informed by the balance between doubt and action. Perhaps the best understanding of what reform means for a liberal can be found in Nassim Nicholas Taleb’s advocation of the word “tinkering.”
  6. Preventing destabilizing concentrations of power and encouraging fair processes of distribution. Liberalism acknowledges that power tends to become concentrated – sometimes in particular branches of the government (for example, in the presidency in the unitary executive theory); sometimes in corporations (as they become too big to fail); sometimes in a particular class of individuals (as they control more and more wealth.) Liberalism sees that such concentrations of power are incompatible with democracy and liberty – and that while such concentrations of power will empower certain individuals – they do so at the expense of most people. While socialists and communists and other utopians believe equality must be created – liberals merely seek to prevent extreme concentrations of power in the hands of any minority. At the same time, as Confucius said, “In a country well governed poverty is something to be ashamed of. In a country badly governed wealth is something to be ashamed of.” Which is why liberals must ensure that power is distributed through a fair process. Political power has been distributed by a constitutional order that needs to be tweaked now and then – and sometimes shaken up, as with the abolition of slavery. Economic power similarly is distributed in a market that sometimes is entirely unjust – as pollution imposes costs on some that are paid by others; and of course with the issue of slavery again. Government must step in to ensure that such unfair practices are not allowed. The goal is not to prevent someone like Bill Gates from having so much wealth, as his wealth is small enough to pose little threat to stability no matter what he does (almost) – it is to prevent 75% of the power from being controlled by 5% of the population – which does pose such a threat.
  7. The Rule of Law. Liberals embrace the fact that our nation was founded “as a nation of laws, not men” and that laws, while sometimes inconvenient are the foundation of our social bargain. Our leaders swear to uphold the law and to remain subject to it. That means if say, a President authorizing wiretapping in direct contravention of federal law, then he must be prosecuted.
  8. Aid to the disadvantaged. Liberals believe in the moral principle that a society and a government cannot be judged without taking into account how it deals with the disadvantaged – especially those who are disadvantaged as a result of the inevitable flaws in the system we choose to embrace. Liberals subscribe to the idea that “A nation’s greatness is measured by how it treats its weakest members.”
  9. First among equals. Liberals acknowledge that America has often been and remains a force for good in the world – but they believe that it detracts from this when it considers itself unrestrained by any law or treaty and unilaterally imposes its will. This creates instability and unpredictability – as well as encouraging other nations to form collectives against us and to obtain weapons of mass destruction to prevent an invasion and provoke a standoff. Instead, liberals see that America has been most effective and done the most good when it acted as “first among equals” in the community of nations. As technologicaland macro-economic forces have been rapidly decentralizing power, America remains the single most potent force in a non-polar world – but it detracts from it’s power when it acts alone and delegitimizes the trust the world has given it to act responsibly.
  10. Diversity and federalism. Liberals – embracing their fallibility as human beings, and acknowledging that their grasp of the truth is always provisional – embrace diversity and federalism. Diverse viewpoints, diverse cultural, cultural, economic, etc. backgrounds all should be welcome and protected so long as they do not attempt to impose their specific view on those not willing. This is why liberals must embrace federalism – which has traditionally been a conservative principle. Liberals seem to be embracing the idea of federalism – at least with regards to the issues of gay marriage and medical marijuana.
Continue reading “Ten Principles of Liberalism”
Categories
The Opinionsphere Videos

John Boehner on Global Warming: Cow Farts, Carcinogen, and a Pained Expression

[digg-reddit-me]Watching John Boehner demonstrate his ignorance when asked about global warming on This Week with George Stephanopoulos was surprisingly painful:

The huge amount of waste gasses from livestock do in fact contribute to global warming significantly; and of course it is silly to call carbon dioxide a carcinogen – but that’s very different from calling it a potentially dangerous greenhouse case in significant quantities. The fact that Boehner doesn’t even know the basic terms of this debate is disturbing if telling – as the only way to explain his rejectionist position is a combination of ignorance and greed for fundraising dollars.

Categories
Barack Obama Morality National Security Politics The Opinionsphere The War on Terrorism

Framing the Torture Debate

[digg-reddit-me]This isn’t a definitive timeline of the debate over torture in America. These are merely some highlights.

On September 11, 2001 we were attacked by militant islamists as they took advantage of the openness of our society and our technology and committed one of the most foul atrocities in history.

By September 12, 2001, everything had changed for those in power – and for many of us – “The sense of danger in the White House was urgent, palpable.” An associate of Condi Rice explained:

We really thought we were going to be attacked – possibly chemical, biological, even nuclear, the potential that they could blow up entire American cities…And then CIA came and said, ‘You know, this is the only way to question these people. Our experts say this is the only program that will work.’ And Justice said that the [Geneva Conventions] didn’t apply…and that the agency program did comply with the torture statute.

Others in the White House described a feeling of panic imbuing all their actions.

On September 16, 2001 – Dick Cheney appeared on Meet the Press:

I think the important thing here, Tim, is for people to understand that, you know, things have changed since last Tuesday…We…have to work, though, sort of the dark side, if you will. We’ve got to spend time in the shadows in the intelligence world. A lot of what needs to be done here will have to be done quietly, without any discussion, using sources and methods that are available to our intelligence agencies, if we’re going to be successful. That’s the world these folks operate in, and so it’s going to be vital for us to use any means at our disposal, basically, to achieve our objective.

On August 1, 2002, what becomes known as the Bybee torture memo, written apparently by his deputy John Yoo, re-defines torture as physical pain:

equivalent in intensity to the pain accompanying serious physical injury, such as organ failure, impairment of bodily function, or even death.

It is not known if all of the techniques justified using this legal shield have been made public – but a partial list includes:

  • Suffocation by water (waterboarding, or traditionally, the water torture);
  • Prolonged stress standing position, naked, held with the arms extended and chained above the head…
  • Beatings by use of a collar held around the detainees’ neck and used to forcefully bang the head and body against the wall…
  • Beating and kicking, including slapping, punching, kicking to the body and face…
  • Confinement in a box to severely restrict movement…
  • Prolonged nudity…this enforced nudity lasted for periods ranging from several weeks to several months…
  • Sleep deprivation…through use of forced stress positions (standing or sitting), cold water and use of repetitive loud noises or music…
  • Exposure to cold temperature…especially via cold cells and interrogation rooms, and…use of cold water poured over the body or…held around the body by means of a plastic sheet to create an immersion bath with just the head out of water.
  • Prolonged shackling of hands and/or feet…
  • Threats of ill-treatment, to the detainee and/or his family…
  • Forced shaving of the head and beard…
  • Deprivation/restricted provision of solid food from 3 days to 1 month after arrest…

Sometime in 2002, John Ashcroft exclaims during a meeting of the cabinet-level officials going over the details of how detainees are being interrogated:

History will not judge this kindly.

Donald Rumsfeld writes on 2002 memo describing interrogation techniques:

I stand for 8-10 hours a day. Why is standing limited to four hours?

Rumsfeld presumably stood at a desk, using it for support and moved around – a very different experience than “forced standing,” a former Communist torture technique which can result in physical effects which Red Cross reports described in detainees:

After 18 to 24 hours of continuous standing, there is an accumulation of fluid in the tissues of the legs. This dependent edema is produced by the extravasation of fluid from the blood vessels. The ankles and feet of the prisoner swell to twice their normal circumference. The edema may rise up the legs as high as the middle of the thighs. The skin becomes tense and intensely painful. Large blisters develop, which break and exude watery serum….

Beginning in 2004, photographs from the Abu Ghraib scandal surface:

Christopher Hitchens – after publicaly calling waterboarding and the other interrogation methods used merely “extreme interrogation” and not “outright torture” – accepts a challenge to undergo it himself. He comes away a changed man:

Here is the most chilling way I can find of stating the matter. Until recently, “waterboarding” was something that Americans did to other Americans. It was inflicted, and endured, by those members of the Special Forces who underwent the advanced form of training known as sere (Survival, Evasion, Resistance, Escape). In these harsh exercises, brave men and women were introduced to the sorts of barbarism that they might expect to meet at the hands of a lawless foe who disregarded the Geneva Conventions. But it was something that Americans were being trained to resist, not to inflict…

[I]f waterboarding does not constitute torture, then there is no such thing as torture.

Deroy Murdok writes in the National Review:

Waterboarding is something of which every American should be proud.

 

Former CIA operative Barry Eisler:

[T]orture is also an excellent way to get the subject to confess to anything at all, which is why it was a wonderful tool for the Spanish Inquisition and for the secret police of assorted totalitarian regimes. But if the goal is to produce accurate, actionable intelligence, torture is madness… To paraphrase Oscar Wilde, torture is worse than immoral: it’s tactically stupid. It produces false confessions, which can be used to confirm mistaken suspicions and even outright policy fantasies; it instills an insatiable thirst for vengeance in most people who are subjected to it, and so creates new, dedicated enemies; it permanently brutalizes its practitioners; and it cuts us off from intelligence from the local populace because so many people will refuse to inform on someone if they fear he’ll be tortured.

On October 15, 2004, Justice John Stevens wrote:

For if this nation is to remain true to the ideals symbolized by its flag, it must not wield the tools of tyrants even to resist an assault by the forces of tyranny.

On June 14, 2005, Senator Dick Durbin gave a controversial speech in which he read from an FBI report of detainee interrogations:

If I read this to you and did not tell you that it was an FBI agent describing what Americans had done to prisoners in their control, you would most certainly believe this must have been done by Nazis, Soviets in their gulags, or some mad regime – Pol Pot or others – that had no concern for human beings. Sadly, that is not the case. This was the action of Americans in the treatment of their prisoners

Malcolm Nance, a former SERE interrogator explained that Senator Dick Durbin was right:

Now, at long last, six years of denials can now be swept aside, and we can say definitively: America engaged in torture and legalized it through paperwork.

Despite all the gyrations – the ducking, dodging and hiding from the facts – there is no way to say that these people were not authorizing torture. Worse yet, they seem to have not cared a wit that these techniques came from the actual manuals of communist, fascist and totalitarian torturers.

On September 28, 2005, Captain Ian Fishback wrote a letter to Senator John McCain:

…the most important question that this generation will answer [is] Do we sacrifice our ideals in order to preserve security? Terrorism inspires fear and suppresses ideals like freedom and individual rights. Overcoming the fear posed by terrorist threats is a tremendous test of our courage. Will we confront danger and adversity in order to preserve our ideals, or will our courage and commitment to individual rights wither at the prospect of sacrifice? My response is simple. If we abandon our ideals in the face of adversity and aggression, then those ideals were never really in our possession.I would rather die fighting than give up even the smallest part of the idea that is “America.

On November 4, 2005, Senator John McCain explained his opposition to torture:

I have said it before but it bears repeating: The enemy we fight has no respect for human life or human rights. They don’t deserve our sympathy. But this isn’t about who they are. This is about who we are. These are the values that distinguish us from our enemies, and we can never, never allow our enemies to take those values away.

On January 19, 2009, Dick Cheney explained to the Weekly Standard

I think on the left wing of the Democratic party, there are some people who believe that we really tortured…

On January 14, 2009, Bob Woodward interviewed the top Bush administration official in charge of deciding whether to bring Guantanamo Bay detainees to trial in the Washington Post:

“We tortured [Mohammed al-]Qahtani,” said Susan J. Crawford, in her first interview since being named convening authority of military commissions by Defense Secretary Robert M. Gates in February 2007. “His treatment met the legal definition of torture. And that’s why I did not refer the case” for prosecution.

On January 22, 2009, a day after taking office, Barack Obama said:

I can say without exception or equivocation that the United States will not torture.

In April 2009, Mark Danner in the New York Review of Books:

[T]he political logic is insidious and, in the aftermath of a future attack, might well prove compelling…

The only way to defuse the political volatility of torture and to remove it from the center of the “politics of fear” is to replace its lingering mystique, owed mostly to secrecy, with authoritative and convincing information about how it was really used and what it really achieved.

On April 20, 2009, Dick Cheney told Sean Hannity:

I’ve now formally asked the CIA to take steps to declassify those memos so we can lay them out there and the American people have a chance to see what we obtained and what we learned and how good the intelligence was, as well as to see this debate over the legal opinions.

In spring 2008, Eric Holder explained:

We owe the American people a reckoning.

On March 18, 2008 Dawn Johnsen, who has been appointed to head Obama’s Office of Legal Counsel which was responsible for the legal opinions cited above wrote in in Slate:

We must avoid any temptation simply to move on. We must instead be honest with ourselves and the world as we condemn our nation’s past transgressions and reject Bush’s corruption of our American ideals. Our constitutional democracy cannot survive with a government shrouded in secrecy, nor can our nation’s honor be restored without full disclosure.

On April 19, 2009, Peggy Noonan on This Week With George Stephanopoulos:

Some things in life need to be mysterious … Sometimes you need to just keep walking.

(All emphases within quotations are my own.)

This is where we stand today – thanks to the courage of heroes within the Bush administration and the military who stood for American values in a time of crisis and against preemptive surrender of our way of life and thanks to the courage of journalists from Mark Danner to Andrew Sullivan to Glenn Greenwald to Dana Priest to Jane Mayer who exposed these secret actions.

Continue reading “Framing the Torture Debate”
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Economics Financial Crisis Humor Videos

The Not Incredible Adventures of the Down and Out Dollar

[digg-reddit-me]Saturday Night Live’s tribute this weekend to Amy Poehler included this great (and newly relevant) skit that I missed back in 2005:

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Barack Obama The Opinionsphere Videos War on Drugs

Barack Obama Declares the War on Drugs “an utter failure”

[digg-reddit-me]I’d heard this quote often, but never saw the video:

It’s interesting how the younger and less constrained Obama is able to flatly state the fact that the War on Drugs has been an utter failure and that marijuana should be decriminalized while still maintaining his opposition to legalization. 

I’m all for gradual steps and half-measures that push our society in a positive direction – rather than abrupt shifts that prompt backlashes. And I think Obama has the politics of this right, if not the policy – decriminalization must come first and separate from legalization. But once pot is decriminalized, the logic of it’s legalization becomes inevitable. The problem is that decriminalization could just as easily aid the Mexican drug cartels in the short term – as they take advantage of the gray area in which marijuana would exist legally. Of all 7 positive effects that would be possible if marijuana were legalized, only 3 of them would be partially accomplished by decriminalization.

The prudent political path then is to make the case for legalization while pushing for decriminalization – with the knowledge that the latter will lead to the former.

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Barack Obama Economics Financial Crisis Mexico National Security Politics The War on Terrorism War on Drugs

7 Reasons to Legalize Marijuana

[digg-reddit-me]

On this April 20th, the case to legalize marijuana is a no-brainer. There are at least 7 things that could be accomplished by legalizing it:

  1. Stabilize Mexico. The drug cartels are waging a war against the Mexican government and each other funded mainly by the profits from marijuana sales in the United States. Legalizing marijuana would create an opportunity for the current government’s attacks on the cartels to succeed – as the cartels would need to scramble to find alternate sources of revenue while fighting a war against a military bolstered by American aid.
  2. Stop wasting money on a failure. Barack Obama called the war on drugs “an utter failure.” Since he took office, he has vowed to cut the fat from the federal budget and eliminate failed programs. At a time when our tax dollars are at a premium, why should we continue to waste money on a failed government program?
  3. Protect the legitimacy of our laws. Almost half of all Americans admit to have tried marijuana – including 3 of our past 3 presidents – which means that they all broke the law. Such flagrant law-breaking undermines respect for the Rule of Law – and more important, once Americans break the law they can see how distorted the government propaganda campaign against marijuana is – further undermining respect for the government. America is currently waging a war on its citizens the likes of which have rarely been seen in history – as we imprison a greater percentage of our population than any other nation on earth and continue to militarize our police as they stop enforcing community standards and instead impose federal policies using extreme force.
  4. Stop aiding terrorists. According to a 2004 Congressional report, the illegality of drugs has incentivized a vast system of money laundering, smuggling, and corrupting of government officials – as well as created failed states and lawless regions – all of which aid terrorists seeking to carry out attacks on the United States. The criminalization of marijuana creates the biggest incentive on all of these fronts.
  5. Reduce crime. The War on Drugs has been militarizing America’s police forces and eating up resources which has led to a statistical uptick in non-drug related theft and violent crime synchronous with this shift. As police resources are spent enforcing federal drug laws – arresting, testifying, surveiling – and as the police become more militarized and distant from the communities they are charged with policing – serious non-drug related crimes increase. One report quantified this by explaining that every additional drug arrest leads to an increase of 0.7 Index (serious) crimes [page 6 of the pdf].
  6. Stimulate the economy. Obama may have tittered at the question, but there is precedent – the repeal of the prohibition of alcohol when FDR took office during the Great Depression. 
  7. …I’ll let Tim Meadows make the final point for legalization by explaining why not to smoke marijuana:

[Image by Torben H. licensed under Creative Commons.]

 

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Uncategorized

List Week! coming 4/20

This blog is on vacation until April 20, 2009 – which will be “List Week!” including lists of the Ten Core Principles of Market-State Liberalism (inspired by Russell Kirk’s Principles of Conservatism), a list of competing theories of the financial crisis, a list of reasons why marijuana should be legalized, and more!