Friday, September 18, 2009

Fed plans to approve banking salaries: report

http://ca.news.finance.yahoo.com/s/18092009/24/f-afp-fed-plans-approve-banking-salaries-report.html

NEW YORK (AFP) - The Federal Reserve would be required to approve
salaries for tens of thousands of US bank workers, as part of a plan
to curb risk-taking at financial institutions, The Wall Street Journal
reported Friday.

"The Fed's plan would, for the first time, inject government
regulators deep into compensation decisions traditionally reserved for
the banks' corporate boards and executives," the report said.

The proposal would see the Fed empowered to ban any compensation
policies it believes encourage bank employees -- from chief
executives, to traders, to loan officers -- to take too much risk.

"Bureaucrats wouldn't set the pay of individuals, but would review
and, if necessary, amend each bank's salary and bonus policies to make
sure they don't create harmful incentives," the report added.

A final proposal "is still a few weeks from completion and could be
revised along the way," the report said citing unnamed persons
familiar with the matter. The move requires a vote by the Fed board,
but not a Congressional green light.

"The US' largest banks, about 25 in number, would get especially close
scrutiny. The central bank intends to compare these banks as a group
to see if any practices stand out as unusually dangerous to their
firms," the report added.

In the United States, Wall Street banks rescued in the 2008 financial
crisis paid bonuses regardless of their performance, according to a
report by New York Attorney General Andrew Cuomo.

And the report found that some banks bailed out by the US government
paid executives bonuses that totaled more than entire company profits
last year.

Executive bonuses have generated public outrage and are a flashpoint
issue for the G20 leaders to address at a summit in Pittsburgh next
week.

France and Germany, Europe's leading economies, are lobbying for
strict limits on executive's compensation.

Obama: Legalize illegals to get them health care

http://washingtontimes.com/news/2009/sep/18/obama-ties-immigration-to-health-care-battle/?feat=home_cube_position1

President Obama said this week that his health care plan won't cover
illegal immigrants, but argued that's all the more reason to legalize
them and ensure they eventually do get coverage.

He also staked out a position that anyone in the country legally
should be covered - a major break with the 1996 welfare reform bill,
which limited most federal public assistance programs only to citizens
and longtime immigrants.

"Even though I do not believe we can extend coverage to those who are
here illegally, I also don't simply believe we can simply ignore the
fact that our immigration system is broken," Mr. Obama said Wednesday
evening in a speech to the Congressional Hispanic Caucus Institute.
"That's why I strongly support making sure folks who are here legally
have access to affordable, quality health insurance under this plan,
just like everybody else.

Mr. Obama added, "If anything, this debate underscores the necessity
of passing comprehensive immigration reform and resolving the issue of
12 million undocumented people living and working in this country once
and for all."

Republicans said that amounts to an amnesty, calling it a backdoor
effort to make sure current illegal immigrants get health care.

TWT RELATED STORIES:
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"It is ironic that the president told the American people that illegal
immigrants should not be covered by the health care bill, but now just
days later he's talking about letting them in the back door," said
Rep. Lamar Smith of Texas, the top Republican on the Judiciary
Committee.

"If the American people do not want to provide government health care
for illegal immigrants, why would they support giving them
citizenship, the highest honor America can bestow?" Mr. Smith said.

But immigrant rights groups see the speech as a signal that Mr. Obama
is committed to providing health care coverage for anyone in the
United States legally, regardless of their citizenship status.

"It's the first time I've certainly heard, publicly, him talking more
about legal immigrants," said Eric Rodriguez, vice president for
research and advocacy at the National Council of La Raza (NCLR). "I
think that was certainly positive progress. We were absolutely
concerned about not hearing that."

Poles, Czechs: US missile defense shift a betrayal

http://news.yahoo.com/s/ap/20090918/ap_on_re_eu/eu_eastern_europe_missile_defense_22

WARSAW, Poland – Poles and Czechs voiced deep concern Friday at
President Barack Obama's decision to scrap a Bush-era missile defense
shield planned for their countries.

"Betrayal! The U.S. sold us to Russia and stabbed us in the back," the
Polish tabloid Fakt declared on its front page.

Polish President Lech Kaczynski said he was concerned that Obama's new
strategy leaves Poland in a dangerous "gray zone" between Western
Europe and the old Soviet sphere.

Recent events in the region have rattled nerves throughout central and
eastern Europe, a region controlled by Moscow during the Cold War,
including the war last summer between Russia and Georgia and ongoing
efforts by Russia to regain influence in Ukraine. A Russian cutoff of
gas to Ukraine last winter left many Europeans without heat.

The Bush administration's plan would have been "a major step in
preventing various disturbing trends in our region of the world,"
Kaczynski said in a guest editorial in the daily Fakt and also carried
on his presidential Web site.

Secretary of Defense Robert Gates said he still sees a chance for
Poles and Czechs to participate in the redesigned missile defense
system. But that did not appear to calm nerves in Warsaw or Prague.

Kaczynski expressed hopes that the U.S. will now offer Poland other
forms of "strategic partnership."

In Prague, Czech Foreign Minister Jan Kohout said he made two concrete
proposal to U.S. officials on Thursday in hopes of keeping the
U.S.-Czech alliance strong: for the U.S. to establish a branch of West
Point for NATO members in Central Europe and to "send a Czech
scientist on the U.S. space shuttle to the international space
station."

An editorial in Hospodarske Novine, a respected pro-business Czech
newspaper, said: "an ally we rely on has betrayed us, and exchanged us
for its own, better relations with Russia, of which we are rightly
afraid."

The move has raised fears in the two nations they are being
marginalized by Washington even as a resurgent Russia leaves them
longing for added American protection.

The Bush administration always said that the planned system — with a
radar near Prague and interceptors in northern Poland — was meant as
defense against Iran. But Poles and Czechs saw it as protection
against Russia, and Moscow too considered a military installation in
its backyard to be a threat.

"No Radar. Russia won," the largest Czech daily, Mlada Fronta Dnes,
declared in a front-page headline.

Obama said the old plan was scrapped in part because the U.S. has
concluded that Iran is less focused on developing the kind of
long-range missiles for which the system was originally developed,
making the building of an expensive new shield unnecessary.

The replacement system is to link smaller radar systems with a network
of sensors and missiles that could be deployed at sea or on land. Some
of the weaponry and sensors are ready now, and the rest would be
developed over the next 10 years.

The Pentagon contemplates a system of perhaps 40 missiles by 2015, at
two or three sites across Europe.

Thursday, September 17, 2009

Balancing the Obama Budget With a Mandatory Gorilla


http://politicalmath.wordpress.com/2009/09/10/balancing-the-obama-budget-with-a-mandatory-gorilla/

Social Security Sent More than $40 Million in Checks to Dead People

http://www.cnsnews.com/news/article/54174

(CNSNews.com) – The Social Security Administration (SSA) has issued
benefit checks totaling $40.3 million to an estimated 6,100
beneficiaries for months – and in some cases for decades -- after
receiving notification of their deaths, according to a June audit
report from the agency's Office of Inspector General.

Approximately 1,760 of the 6,100 listed as deceased actually were
dead, the government auditor estimated. The rest were alive, but had
been wrongly listed as deceased.

During a sample audit in 2008, the inspector general uncovered 228
cases where beneficiaries had been receiving payments from SSA when
they were already listed as dead. Of those, 88 were verified to have
died. Another 140 were found to still be alive.

"SSA improperly paid these 88 deceased beneficiaries approximately
$2.0 million," the OIG report noted.

The remainder were alive, but had been reported as deceased in the
federal agency's Numident master file, a database of Social Security
information tied to person's Social Security number.

In one case, Social Security sent a deceased beneficiary monthly
checks of $1,185 for 18 years until October 2008, even though she died
in April of 1990. SSA had listed the New York City death certificate
number on the Numident records one month after her death, but her name
was not removed from the Social Security payment roll and SSA
continued to send her approximately $210,000 in 222 improper payments.

"Our review of available information indicated that someone cashed
these check payments," the inspector general reported. "To date, SSA
has not recovered any of the improper payments. The OIG has arrested a
suspect and is awaiting judicial action on this case."

In another case, improper payments were made for 30 years after the
death of a payee.

The sample audit led the OIG to conduct a wider audit – and to
conclude that 1,760 of the estimated 6,100 beneficiaries still getting
checks were actually deceased, the report stated.

"Our audit results indicated that a large percentage of these
beneficiaries were actually alive, and that death entries recorded on
their Numidents were erroneous," the report said. "However, our audit
results also indicated that a number of these beneficiaries were
deceased, and that dates of death recorded on their Numidents were
accurate."

The inspector general's office said it is concerned that Social
Security could make approximately $6.9 million in additional improper
payments over the next 12 months if these discrepancies are not
corrected."

Section 205(r) of the Social Security Act requires that the Social
Security match state death records against Social Security payment
records to identify and prevent erroneous payments after death. In
addition, SSA matches death records from other federal, state, and
local agencies.

How Democracies Become Tyrannies

How Democracies Become Tyrannies
By Ed Kaitz
Back in 1959 the philosopher Eric Hoffer had this to say about
Americans and America:
For those who want to be left alone to realize their capacities and
talents this is an ideal country.

That was then. This is now. Flash forward fifty years to the election
of Barack Obama and a hard left leaning Democrat Congress. What
Americans want today, apparently, is a government that has no
intention of leaving any of us alone.

How could Hoffer have been so wrong about America? Why did America
change so quickly? Can a free people willingly choose servitude? Is
it possible for democracies to become tyrannies? How?

The answers to these questions were famously addressed in a few pages
tucked within the greatest masterpiece of the classical world: Plato's
Republic. On the surface, and to most reviewers of Plato's writings,
the Republic is a dialogue on justice and on what constitutes the just
society. But to careful readers the deeper theme of the Republic is
the nature of education and the relationship between education and the
survival of the state. In fact, the Republic is essentially the story
of how a man (Socrates) condemned to death for "corrupting" the youth
of Athens gives to posterity the most precious gift of all: the love
of wisdom.

In the Republic, two young men, Glaucon and Adeimantus, accompany the
much older Socrates on a journey of discovery into the nature of the
individual soul and its connection to the harmony of the state.
During the course of their adventure, as the two disciples demonstrate
greater maturity and self-control, they are gradually exposed to
deeper and more complex teachings regarding the relationship between
virtue, self-sufficiency, and happiness. In short, the boys begin to
realize that justice and happiness in a community rests upon the moral
condition of its citizens. This is what Socrates meant when he said:
"The state is man writ large."

Near the end of the Republic Socrates decides to drive this point home
by showing Adeimantus what happens to a regime when its parents and
educators neglect the proper moral education of its children. In the
course of this chilling illustration Adeimantus comes to discover a
dark and ominous secret: without proper moral conditioning a regime's
"defining principle" will be the source of its ultimate destruction.
For democracy, that defining principle is freedom. According to
Socrates, freedom makes a democracy but freedom also eventually breaks
a democracy.

For Socrates, democracy's "insatiable desire for freedom and neglect
of other things" end up putting it "in need of a dictatorship." The
short version of his theory is that the combination of freedom and
poor education in a democracy render the citizens incapable of
mastering their impulses and deferring gratification. The reckless
pursuit of freedom leads the citizens to raze moral barriers, deny
traditional authority, and abandon established methods of education.
Eventually, this uninhibited quest for personal freedom forces the
public to welcome the tyrant. Says Socrates: "Extreme freedom can't
be expected to lead to anything but a change to extreme slavery,
whether for a private individual or for a city."

Adeimantus wants Socrates to explain what kind of man resembles the
democratic city. In other words, he wants to know how "democratic
man" comes to be and what happens to make this freedom loving man
eventually beg for a tyrant. Socrates clarifies that the democratic
man starts out as the son of an "oligarchic" father -- a father who is
thrifty and self-disciplined. The father's generation is more
concerned with wealth than freedom. This first generation saves,
invests, and rarely goes in for conspicuous consumption.[i]

The father's pursuit of wealth leaves him unwilling and unable to give
attention to his son's moral development. The father focuses on
business and finance and ignores the business of family. The son then
begins to associate with "wild and dangerous creatures who can provide
every variety of multicolored pleasure in every sort of way." These
Athenian precursors of the hippies begin to transform the son's
oligarchic nature into a democratic one. Because the young man has
had no moral guidance, his excessive desire for "unnecessary
pleasures" undermines "the citadel" of his soul. Because the
"guardians" of the son's inner citadel -- truth, restraint, wisdom --
are absent, there is nothing within him to defend against the "false
and boastful words and beliefs that rush up and occupy this part of
him."

A 1960s revolution in the son's soul purges the last remaining
guardians of moderation and supplants new meanings to old virtues:
"anarchy" replaces freedom, "extravagance" replaces magnificence, and
"shamelessness" replaces courage. The young man surrenders rule over
himself "to whichever desire comes along, as if it were chosen by
lot." Here Socrates notes the essential problem when a free society
becomes detached from any notions of moral virtue or truth: desires
are chosen by "lot" instead of by "merit" or "priority."

For the son the democratic revolution in his soul is complete. In
this stage "there is neither order nor necessity in his life, but he
calls it pleasant, free, blessedly happy, and he follows it for as
long as he lives." Socrates gives a brief illustration of the young
man's new democratic life:

Sometimes he drinks heavily while listening to the flute; at other
times he drinks only water and is on a diet; sometimes he goes in for
physical training; at other times, he's idle and neglects everything;
and sometimes he even occupies himself with what he takes to be
philosophy. He often engages in politics, leaping up from his seat
and saying and doing whatever comes into his mind. If he happens to
admire soldiers, he's carried in that direction, if money-makers, in
that one.

In short, the young man has no anchor, no set of guiding principles or
convictions other than his thirst for freedom. His life is aimless,
superficial, and gratuitous. The spoiled lotus-eaters of his
generation have defined themselves simply by mocking all forms of
propriety and prudence. What's worse, as these Athenian baby-boomers
exercise their right to vote, they elect "bad cupbearers" as their
leaders. The new cupbearers want to stay in office so they give the
voters whatever they desire. The public, according to Socrates, "gets
drunk by drinking more than it should of the unmixed wine of freedom."
Conservative politicians who attempt to mix the wine of freedom with
calls for self-restraint "are punished by the city and accused of
being accursed oligarchs."

As conservative politicians court suspicion so do conservative
teachers and academics who stubbornly hold on to objective
measurements of performance: "A teacher in such a community is afraid
of his students and flatters them, while the students despise their
teachers or tutors." Conservatism becomes unpopular just about
everywhere, to a point at which even the elderly "stoop to the level
of the young and are full of play and pleasantry, imitating the young
for fear of appearing disagreeable and authoritarian."

The explosion of boundaries and limits extends even to national
identity itself, so that resident aliens and foreigners "are made
equal to a citizen."

The citizens' souls become so infected with freedom that they become
excessively paranoid about any hint of slavery. But slavery comes to
mean being under any kind of master or limit including the law itself.
Says Socrates: "They take no notice of the laws, whether written or
unwritten, in order to avoid having any master at all." That is, any
kind of "hierarchy" in a democracy is rejected as "authoritarian."
But this extreme freedom, according to Socrates, eventually enslaves
democracy.

As the progressive politicians and intellectuals come to dominate the
democratic city, its "fiercest members do all the talking and acting,
while the rest settle near the speakers platform and buzz and refuse
to tolerate the opposition of another speaker." There are
"impeachments, judgments and trials on both sides." The politicians
heat up the crowds by vilifying business and wealth and by promising
to spread the wealth around. The people then "set up one man as their
special champion" and begin "nurturing him and making him great."

The people's "special champion" however transforms from leader to
tyrant. He "drops hints about the cancellation of debts and the
redistribution of land" and continues to "stir up civil wars against
the rich." All who have reached this stage, says Socrates, "soon
discover the famous request of a tyrant, namely, that the people give
him a bodyguard to keep their defender safe for them." The people
give him this new security force, "because they are afraid for his
safety but aren't worried at all about their own."

Socrates describes the early weeks of the new leader's reign:

"Won't he smile in welcome at anyone he meets, saying that he's no
tyrant, making all sorts of promises both in public and in private,
freeing the people from debt, redistributing land to them, and to his
followers, and pretending to be gracious and gentle to all?"

After a series of unpopular actions, including stirring up a war in
order to generate popular support, the leader begins to alienate some
of his closest and most ardent advisers who begin to voice their
misgivings in private. Following a purge of these advisors the tyrant
attracts some of the worst elements of the city to help him rule. As
the citizens grow weary of his tenure the tyrant chooses to attract
foreigners to resupply his dwindling national bodyguard. The citizens
finally decide they've had enough and begin to discuss rebellion.

At this point in the dialogue Adeimantus asks Socrates incredulously:
"What do you mean? Will the tyrant dare to use violence against [the
people] or to hit [them] if [they] don't obey? Socrates answers:

"Yes - once he's taken away [the people's] weapons."

Thus ends Book VIII of Plato's Republic. I won't spoil the marvelous
ending (Books IX and X) but I would like to spend a few moments
drawing some conclusions about the overall message of this fascinating
text and its relevance for 21st century Americans.

First, those of us who are incapable of self-mastery will always
shamefully prostrate ourselves before messianic political leaders.
The progressive left in America has spent countless generations
destroying the guardians of our inner citadel: religion, family,
parents, and tradition - in short, conservatism and limits. When we
exhaust the financial and moral capital of previous generations (and
future ones, as with the current stimulus bill) we will dutifully line
up at the public trough, on our knees. Citizens capable of
self-mastery will always choose to be left alone. In other words,
they'll always choose limited government.

Second, freedom without limits paves the way to tyranny by undermining
respect for the law. When politicians play fast and loose with the
law it becomes easier for them and for the people to see special
champions as alternative sources of rule. Today in America the
objective basis for law is being attacked on campuses and even in law
schools as too authoritarian and too insensitive to the subjective
experiences and personal narratives of criminals. The SAT exam has
also been under assault for the same reasons. As Socrates warned:
extreme freedom will instill a paranoia about any kind of "master"
including objective measurements of right and wrong, and of merit
based forms of achievement. But when the citizens become enslaved to
their vices they'll dutifully cry out for another kind of master.

Third, is the crucial role of education, which is the underlying theme
of Plato's Republic. The ethos of American education has been for
many decades saturated with a simple mantra: choice. What's worse,
those few remaining educators who chant the old, Socratic mantra of
"judgment" are vilified and harassed by the modern day lotus-eaters as
hateful conservatives. Socrates predicted that all of this would
happen in a democracy. But it is judgment not choice that enables a
young person to erect a citadel in the soul. This eliminates the need
for tyrants, and for bailouts too.

Finally, there is a question on the minds of many conservatives today:
How does one convince the younger generations of Americans to
distrust the growth of the State? Is it possible for Americans to
recover the desire to be left alone in order "to realize our
capacities and talents" as Eric Hoffer says?

I've read that in Iran, many young people chafe at the pervasive
despotism there, but when the burning desire for freedom threatens to
boil over, the government in Tehran eases its restrictions on the use
of personal satellite dishes. Electronic Soma for the digital age.

Hat tip: Larrey Anderson

House roll call for the ACORN vote

http://clerk.house.gov/evs/2009/roll718.xml