Tuesday, November 3, 2009

History Repeating: In Goldman Sachs We Cannot Trust...

GOLDMAN SACHS BUSINESS PRINCIPLES ( # 5 of 10)

"We stress creativity and imagination in everything we do. While recognizing that the old way may still be the best way, we constantly strive to find a better solution to a client's problems. We pride ourselves on having pioneered many of the practices and techniques that have become standard in the industry. -Goldman-Sachs Website, 2009.

HISTORY:

Goldman-Sachs is a financial institution that survived the Great Depression. John Kenneth Galbraith in his popular book, The Great Crash 1929 has a chapter dedicated exclusively to them entitled: In Goldman-Sachs We Trust.

Here we see a pattern emerging dating back nearly a century:

1928:

"Goldman, Sachs, and Company (GS&C) created a new venture called "Goldman, Sachs, Trading Company" (GSTC) and originally issued 1M shares at $100/share on Dec 4, 1928 but GS&C bought it all and then sold 90% of it to the public for $104 [apparently thinking this was a way to make a quick buck -- they had not yet learned about the concept of "leverage" as it is used/abused today]. Only 2 months later (Feb 21, 1929) GSTC merged with a company called Financial & Industrial Securities Corp. -- the resulting assets were $235M. Just before the merger, Feb 2 the stock was $136.50 and 5 days later on Feb 7 it was $222.50"
Massive value increase even though tangible real value was much less. Incredible spikes seem to follow the firm. Maybe they have the Midas touch?

“This remarkable premium was not the undiluted result of public enthusiasm for the financial genius of Goldman, Sachs. Goldman, Sachs had considerable enthusiasm for itself, and the Trading Corporation was buying heavily of its own securities. By March 14 it had bought 560,724 shares of its own stock for a total outlay of $57,021,936. This, in turn, had boomed their value. However, perhaps foreseeing the exiguous character of an investment company which had it investments all in its own common stock, the Trading Corporation stopped buying itself in March. Then it resold part of the stock to William Crapo Durant, who re-resold it to the public as opportunity allowed.”

1929:

Seven months later, after the October crash (including a 2:1 stock split), the price of the stock ultimately fell to approximately 1 3/4. The Goldman-Sachs Trading Corporation (GSTC) was an investment trust, a forerunner of the modern mutual fund. According to Galbraith, Goldman-Sachs' stock lost 97% of its going-public value., less than a year after its public offering.

1932:

But in a time with no SEC, virtually anything went on Wall Street during the Great Depression. Of course, we all know how the story ends. Years later in Washington Mr. Sachs had this to say to Senator Couzens at the Committee of United States Senate Hearing:

Senator Couzens: Did Goldman, Sachs and Company organize the Goldman Sachs Trading Company?

Mr. Sachs: Yes, sir.

Senator: And it sold its stock to the public?

Mr. Sachs: A portion of it. The firm invested originally in 10 percent of the issue.

Senator: And the other 90 percent was sold to the public?

Mr. Sachs: Yes, sir.

Senator: At what price?

Mr. Sachs: At 104...the stock was later split two for one.

Senator: And what is the price of the stock now?

Mr. Sachs: Approximately 1 3/4.

Deja-Vu perhaps?

2008:

Goldman Sachs seems to have a pattern of passing the proverbial buck after they have rinsed all profits from their venture and moved out of the way before the train derails.

(Excerpt:"In Goldman Sachs We Trust: The Story of a $222 Stock going to $1 During the Great Depression," mybudget360.com,8.2009. Image: Profiteer Illustration, Library of Congress, 1929).

Friday, October 9, 2009

And The Nobel War Is Peace Prize Goes To...President Barack Obama...

" Political language...is designed to make lies sound truthful and murder respectable, and to give an appearance of solidity to pure wind. " - George Orwell

It took 25 years longer than George Orwell thought for the slogans of 1984 to become reality.

“War is Peace.”

“Freedom is Slavery.”

“Ignorance is Strength.”

I would add, “Lie is Truth.”

The Nobel Committee has awarded the 2009 Peace Prize to President Obama, the person who started a new war in Pakistan, upped the war in Afghanistan, and continues to threaten Iran with attack unless Iran does what the US government demands and relinquishes its rights as a signatory to the non-proliferation treaty. The Nobel committee chairman, Thorbjoern Jagland said, “Only very rarely has a person to the same extent as Obama captured the world’s attention and given its people hope for a better future. Obama, the committee gushed, has created “a new climate in international politics.”

Tell that to the 2 million displaced Pakistanis and the unknown numbers of dead ones that Obama has racked up in his few months in office. Tell that to the Afghans where civilian deaths continue to mount as Obama’s “war of necessity” drones on indeterminably. No Bush policy has changed. Iraq is still occupied. The Guantanamo torture prison is still functioning. Rendition and assassinations are still occurring. Spying on Americans without warrants is still the order of the day. Civil liberties are continuing to be violated in the name of Oceania’s “war on terror.”

Apparently, the Nobel committee is suffering from the delusion that, being a minority, Obama is going to put a stop to Western hegemony over darker-skinned peoples. The non-cynical can say that the Nobel committee is seizing on Obama’s rhetoric to lock him into the pursuit of peace instead of war. We can all hope that it works. But the more likely result is that the award has made “War is Peace” the reality.

Obama has done nothing to hold the criminal Bush regime to account, and the Obama administration has bribed and threatened the Palestinian Authority to go along with the US/Israeli plan to deep-six the UN’s Goldstone Report on Israeli war crimes committed during Israel’s inhuman military attack on the defenseless civilian population in the Gaza Ghetto.

The US Ministry of Truth is delivering the Obama administration’s propaganda that Iran only notified the IAEA of its “secret” new nuclear facility because Iran discovered that US intelligence had discovered the “secret” facility. This propaganda is designed to undercut the fact of Iran’s compliance with the Safeguards Agreement and to continue the momentum for a military attack on Iran.

The Nobel committee has placed all its hopes on a bit of skin color.

“War is Peace” is now the position of the formerly antiwar organization, Code Pink. Code Pink has decided that women’s rights are worth a war in Afghanistan. When justifications for war become almost endless--oil, hegemony, women’s rights, democracy, revenge for 9/11, denying bases to al Qaeda and protecting against terrorists--war becomes the path to peace.

The Nobel committee has bestowed the prestige of its Peace Prize on Newspeak and Doublethink.

-Paul Craig Roberts ( "Warmonger Wins Peace Prize," CounterPunch, 10.11.2009. Image: "1984" Book Cover, Date Unknown ).

Thursday, October 8, 2009

A Passion For Justice: Divine For Some, Purely Human For Others...

"To my mind it is fundamental to our society to see that powers are not abused or misused. If they come into conflict with freedom of an individual or with any other of our fundamental freedoms, then it is the province of the Judge to hold the balance between the competing interests." - Lord Denning

Justice theory is one subsidiary of philosophy that never really suffers a bad century.

Back in Homeric times, life was simpler. Justice largely meant personal vengeance. Complications began when Plato famously pinned on Thrasymachus the view that justice is simply the will of the stronger, and on Glaucon and Callicles the idea that justice is conventional. Plato argued, through his familiar Socratic ventriloquy, that justice is divine, an ideal to which human justice can only haltingly aspire. Aristotle then introduced a formal criterion of justice that still wins the greatest agreement, perhaps because it's merely formal: Treat equals equally and unequals unequally.

From then on, follow the history of philosophers' sentences that begin "Justice is … " on and you hit so many diverse endings you wonder whether anyone, including the lady in the blindfold, knows what justice is.

To Aquinas, it's "a certain rectitude of mind whereby a man does what he ought to do in the circumstances confronting him." To Hume, it's "nothing but an artificial invention." To Sir Edward Coke, it's "the daughter of the law, for the law bringeth her forth." To 20th-century American jurist Learned Hand, it's "the tolerable accommodation of the conflicting interests of society." Do a survey, and about the only thinker who invites instant agreement is Belgian philosopher of law Chaim Perelman. According to Perelman, justice is simply "a confused concept."

One reason theories of justice abound is the range of the concept, applied to decisions, people, procedures, laws, actions, events. Justice is usually considered a positive thing, yet some rank it below mercy. It's divine for some, purely human for others. It's supposedly majestic, yet many complain of its quotidian banality and everyday scarcity. Recall the old lawyer's joke:

Petitioner: "Justice, justice, I demand justice!"

Judge: "Silence or I'll have you removed! This is a court of law!"

When Rawls declared justice "the first virtue of social institutions, as truth is of systems of thought," and began his painstaking probe of the conditions of just institutions, he re-established a modern tradition dating back to Hobbes: using social-contract theory to articulate ideal forms of social justice, sometimes in quasi-syllogistic form. But there was also a longstanding, skeptical, antisystematic tradition in justice theory.

Solomon wrote in A Passion for Justice that justice is "a complex set of passions to be cultivated, not an abstract set of principles to be formulated. … Justice begins with compassion and caring, not principles or opinions, but it also involves, right from the start, such 'negative' emotions as envy, jealousy, indignation, anger, and resentment, a keen sense of having been personally cheated or neglected, and the desire to get even." In time, suggested Solomon, "the sense of justice emerges as a generalization and, eventually, a rationalization of a personal sense of injustice."

Might our concept of justice arise when society's normal moral inertia, the tendency to accept traditions and status quo ethical procedures without challenge, is itself challenged?

Economist and philosopher, Amartya Sen inclines to that view. He begins An Idea of Justice by quoting Pip in Charles Dickens's Great Expectations:

"In the little world in which children have their existence, there is nothing so finely perceived and finely felt, as injustice." Sen adds, "The identification of redressable injustice is not only what animates us to think about justice and injustice, it is also central … to the theory of justice."

"Justice is ultimately connected with the way people's lives go, and not merely with the nature of institutions surrounding them." Two concepts from early Indian jurisprudence, niti (strict organizational and behavioral rules of justice) and nyaya (the larger picture of how such rules affect ordinary lives), provide a better prism for justice than Rawls's obsession with the characterization of just institutions. Indeed, Sen writes in a killer sum-up:

"If a theory of justice is to guide reasoned choice of policies, strategies, or institutions, then the identification of fully just social arrangements is neither necessary nor sufficient."


It was Solomon, in A Passion for Justice, who voiced the problem that hangs over ostensibly rigorous justice theory, which Sen plainly finds unconvincing yet never quite denounces. Speaking of the enormous technical literature spawned by Rawls, Nozick, and their acolytes, Solomon wrote:

"The positions have been drawn, defined, refined, and redefined again. The qualifications have been qualified, the objections answered and answered again with more objections, and the ramifications further ramified. … But the hope for a single, neutral, rational position has been thwarted every time."
Solomon complained that justice theory had "become so specialized and so academic and so utterly unreadable that it has become just another intellectual puzzle, a conceptual Gordian knot awaiting its academic Alexander."

Will Amartya Sen be that Alexander? In repeatedly bringing back into the discussion Adam Smith's Theory of Moral Sentiments, Sen signals the need for justice theory to reconnect to realistic human psychology, not the phony formal rationalism that infects modern economics or the for-sake-of-argument altruism that anchors Rawls's project. (In A Theory of Justice, Rawls writes that in his well-ordered society, "Everyone is presumed to act justly.") By declaring his desire "to address questions of enhancing justice and removing injustice, rather than to offer resolutions of questions about the nature of perfect justice," Sen sinks a knife into the heart of the latter utopian program.

On the other hand, Sen's own understanding of his aim in The Idea of Justice hardly dismisses formal resources or careful reasoning. He cites an alternative tradition to social-contract theory, one he identifies as extending from Smith to Mill and beyond and characterizes as "comparative" in its measuring of the justice actually experienced by individuals. That countertradition issued, Sen explains, in the "analytical—and rather mathematical—discipline of social-choice theory" developed by Kenneth Arrow in the mid-20th century.

"Reasoning," writes Sen early on, "is a robust source of hope and confidence in a world darkened by murky deeds." In The Idea of Justice, Amartya Sen provides us with a stunning model despite his eternally ambiguous and imperfectible subject. As he so winningly adds, "The remedy for bad reasoning is better reasoning."

- Carlin Romano, ("Amartya Sen Shakes Up Justice Theory," The Chronicle Review, 9.14.09. Image: "Blind Justice", Playboy Magazine Illustration, 1980s).

Friday, September 4, 2009

Homicidal Technology: Instant Communication, Instant Death...

Give me liberty or give me death? Try giving me loquacity and giving me death. We are, literally, talking and texting ourselves into oblivion.

In April, two people in the Seattle area were killed by a train in separate incidents while talking on a cellphone as they crossed railroad tracks. That same month, a truck driver in Florida admitted that he was texting just before he drove into a schoolbus, killing a student. Around the same time, a young man was hit by a car and killed as he talked on his cellphone while crossing the street in Montclair, New Jersey.

The train crash that took 25 lives last September in Los Angeles is believed to have been caused by an engineer who was texting on his cellphone. Last May, a texting engineer caused another train crash in Boston, injuring 50 people. Texting is still suspected in the DC subway accident that killed nine people in June. An air-traffic controller talking on a good, old-fashioned landline is believed to be one of the causes of the fatal collision last month between a plane and a helicopter over the Hudson River. The grisly list of death-by-communication goes on and on.

It’s gotten so bad that a local police department in Wales has made a shockingly graphic film illustrating the consequences of texting as you drive. It’s an Internet sensation. (Of course, half the people viewing it are probably watching it while they drive.)

Few of us take the time to notice how yesterday’s fresh idea hardens into today’s oppressive banality. But the idea that technology makes us free has now become a shopworn notion in need of drastic revision. So accelerated has communications technology become in the last 15 years that we don’t realize how it has been almost entirely driven by the profit-motive beyond our human needs. But rather than being the miraculous gizmos of iconoclasm and progressivism, our GPS’s are driving us into walls, our computers are making us more isolated than ever before, and our cellphones are distracting us to destruction.

Whatever happened to the communications revolution?

It was supposed to liberate humankind from, I guess, telephones into a brave new age of, I guess, talking to whomever we wanted when and where we wanted.

Texting contributed a further dimension of—hmmm, what is it, ah yes!text to the new revolution. Now humans could communicate with each other without having to be exposed to anything human, like physical presence or tone of voice. There was no longer any need to fear a reaction to what we were expressing. Or at least to experience a reaction.

And that’s the fatal problem.

I have a fondness for the Annalistes—French historians who believed that the reality of history was to be found not in great events and ideas, but in the influence of more mundane factors like climate, geography, and technology. In the Annaliste perspective, the catastrophic nature of the cellular transformation would be an inevitable result of the nature of the technological medium.

For our wish to have a human-free experience in an SMS exchange creates an actual, utter disregard for other human lives, and for our own. The train engineer who is texting a woman because he wants to flirt, or his friend because he needs attention, does so because he doesn’t want them to be involved in his need for them. At that moment, he can put them in his mind without bringing them into his life. It’s no wonder that, at that moment, he is also indifferent to the passengers in his care. The same solipsistic recklessness applies to the cellphone-distracted driver.

The impulse itself to use a cellphone is really just short of homicidal. The expectation—it’s become a right—that you can call anyone at any time is, socially speaking, a violent annulment of another person’s complicated and timebound existence. It’s a total denial that people exist outside our need for them. They don’t even exist on the same sidewalk, as we bump into them while talking on our phones.

Yet there is something even more infantile, and more fundamentally disturbing, about talking and texting while we go about our daily business of mobility and work.

The compulsion to text, especially, puts us at the center of the world’s attention. The nice thing about texting is that someone texts you right back. (They’d better.) And so you are constantly being wanted and needed. The little vibration from your BlackBerry or iPhone against your leg has become a pleasurable biological sensation in its own right—like the sudden release of endorphins or dopamine into your brain. That persistent cellular tingle against your flesh, or ring in your ear, is just like being a baby again. You are being summoned and caressed all the time.

The two experiences that keep us together are love and work, and the essence of both experiences is self-surrender. You lose yourself in a person, or in an activity.

The religious philosopher Martin Buber had an epiphany of this when, as a young boy, he stood stroking a horse. After a while, he forgot himself, his hand, the repetition of what he was doing and felt only the horse. The animal became a “thou” instead of an “it”—a being to be experienced rather than an instrument of gratification.

If the texting patterns of air-traffic controllers and train engineers are any indication, the self-forgetful vigilance of work is being slain by our wonderful new technology of communication. And the respect for others' lives—what you might call generalized love—is being abolished by the cellphone-behind-the-wheel.

Maybe it’s time to replace the “i” in iPhone with a “thou.”

-Lee Siegel, "Gasbag Nation", The Daily Beast, 9.4.09. Image: - H.P. Blavatsky, "The Secret Doctrine: The Synthesis of Science, Religion & Philosophy, Vol. II Anthropogenesis", 1888).

Saturday, August 22, 2009

Abraham Lincoln: A Most Unusual Dream...

At a cabinet meeting on April 14, 1865, Abraham Lincoln reported that he had had a most unusual dream. He had felt himself floating along the ocean, as the sun shone brightly in the background. He was on some sort of ship, drifting, searching for direction. It was the same dream he had had many times since being elected president, and every time, he claimed, it had served as an omen for some major event or disaster.

"Nonsense!," his cabinet officers proclaimed. "The war is over," they noted (Lee had surrendered to Grant on the April 9), "what could go wrong now?" Still, Lincoln was concerned.

"Perhaps," suggested Assistant Secretary of State Frederick Seward, "at each of these periods there were possibilities of great change or disaster, and the vague feeling of uncertainty may have led to the dim vision in sleep."

"Perhaps ..." Lincoln sighed.

He had neglected, however, to tell them about another dream he had had a few days earlier--a much more ominous one. He had described that dream to his wife and some friends, including Ward Hill Lamon, who recorded the president's telling:

"About 10 days ago," the president told them, "I retired very late. I had been up waiting for important dispatches from the front. I could not have been long in bed when I fell into a slumber, for I was weary. I soon began to dream. There seemed to be a deathlike stillness about me. Then I heard subdued sobs, as if a number of people were weeping. I thought I left my bed and wandered downstairs. There the silence was broken by the same pitiful sobbing, but the mourners were invisible. I went from room to room; no living person was in sight, but the same mournful sounds of distress met me as I passed along. I saw light in all the rooms; every object was familiar to me; but where were all the people who were grieving as if their hearts would break? I was puzzled and alarmed. What could be the meaning of all this? Determined to find the cause of a state of things so mysterious and so shocking, I kept on until I arrived at the East Room, which I entered. There I met with a sickening surprise. Before me was a catafalque, on which rested a corpse wrapped in funeral vestments. Around it were stationed soldiers who were acting as guards; and there was a throng of people, gazing mournfully upon the corpse, whose face was covered, others weeping pitifully.

"'Who is dead in the White House?' I demanded of one of the soldiers.

"'The president,' was his answer, 'he was killed by an assassin.' Then came a loud burst of grief from the crowd, which woke me from my dream. I slept no more that night; and although it was only a dream, I have been strangely annoyed by it ever since."

To relieve himself from the stresses of war, Lincoln often liked to attend the theater. That night, he and Mary Todd were to be accompanied to Ford's Theater by Gen. Ulysses S. Grant and his wife, Julia, to see a production of "Our American Cousin," one of Lincoln's favorite plays. At the last minute, however, the general and his wife decided to catch an earlier train out of town, and informed the Lincolns that they would not be attending. In their stead, Mary Todd invited Maj. H.R. Rathbone and Clara Harris, the stepson and daughter of Sen. Ira Harris.

The theater was laced with American flags and packed with a crowd anticipating the president's arrival. When the Lincoln walked out onto the balcony with his entourage, the crowd paid their respects as he nodded and waved politely. A special chair with a slight rocking motion had been put in to accommodate comfortably the president's large frame.

He sat peacefully.

In the bar next door sat another man, sulky and perturbed. John Wilkes Booth had been waiting for this moment, and when he had heard earlier that day of the president's plans to attend the evening performance, he knew that the time was ripe. He hated this man, the destroyer of the South, the tyrannical oppressor. In March, he had led a plan to kidnap the president, but it had failed. Now that the war was just about over, there was only one thing for him to do.

"I'm going to kill the president." he reportedly told someone.

"Yeah-ha-ha ..." they laughed, "Right."

Across town, Secretary of State William H. Seward lay bedridden. He had been in a horse-riding accident earlier, and an uncomfortable leather brace around his neck made sleep difficult. He had just managed, however, with the aid of his daughter, to catch some rest, when a messenger arrived at the house door. "Delivery," the messenger told the servant who answered, holding up a brown paper bag, "Medication."

The servant was unaware of any scheduled delivery.

But the deliveryman was adamant; he had to see the secretary of State at once. The servant, somewhat suspicious, refused to allow him. But the deliveryman was large and strong, and he pushed past the smaller man, and started up the stairs.

Vice President Andrew Johnson was not a well-liked man. He had started off as a tailor's apprentice, and did not even learn to read until his wife taught him at the age of 17. Far from an intellectual, he made his career in politics speaking from the stump in plain language. While his native Tennessee seceded with the South, Johnson remained loyal, despite being a Democrat and a supporter of slavery. He was rewarded with the nomination for vice president in 1864 on a split Republican-Democrat ticket. The idea was that this would increase the stability of the nation once the war was over; it later proved an unwise decision.

A note delivered to the vice president's residence that night read:

"Don't wish to disturb you. Are you at home? -J. Wilkes Booth."

Johnson was up in his hotel room, unaware of a man named George Andrew Atzerodt, who sat at a bar on the first floor of the hotel, drinking alone. It was his job to kill the vice president.

Edwin Stanton, the secretary of War, was retiring for the night, after a long day of work. Initially, Stanton had been one of Lincoln's greatest critics, even going so far as to call him a "damned fool." ("If Stanton said I was a damned fool, then I must be one," Lincoln had remarked, "for he is nearly always right and generally says what he means.") Lincoln had appointed him despite the criticisms. And, for his part, Stanton had proved worthy of the task, efficiently organizing what was an extremely inefficient organization. In time, he had come to respect Lincoln and even, perhaps, admire him. They had been through the war together, and though he had once judged him incompetent, he now recognized his wisdom.

But he could not think of these things. He was tired, and had to get to sleep.

Frederick Seward was coming down the stairs when he met the "deliveryman," Lewis Powell, alias Lewis Paine. Paine told the secretary of State's son that he had a delivery for his father, and that he must get it to him immediately.

"We did not request a delivery," the assistant secretary of State informed him.

"Let me just drop it to him," Paine requested, "so that I may satisfy my boss."

The son offered to take the delivery.

"No." Paine insisted.

There was a moment of perilous silence, and suddenly the larger man produced a knife. Several swift motions left Frederick screaming and covered in blood, as Paine raced up the stairs. He kicked open Seward's door....

As a well-known actor, John Wilkes Booth did not have a problem entering Ford's Theater. Concealing a one-shot derringer and a knife, Booth slowly crept toward the balcony. The one guard paid him no heed and went on break, and, as expected, it was easy to get to the president's door. Through the keyhole he could see the president. As he had heard, Grant had cancelled and was indeed not there. Booth had to settle for the president without the general. But how to turn the knob without being heard? He would have to wait. He knew this play well, and there was a part in the middle--a joke--that always made the crowd roar with laughter. He would wait for that part....

Atzerodt couldn't take it anymore. When was Johnson going to come down? He hugged his drink....

Paine burst into the room, surprised to see a woman--Seward's daughter--sitting nearby. But it was Seward he was interested in, and there he was, with the covers up to his chin.

Quickly he set upon him, stabbing at his neck. As Seward awoke in a start and turned feverishly away, his daughter leapt upon Paine's back. He struggled with her, then tossed her across the room. But as he went back at the secretary of State's neck, once again she was on him, and once again he tossed her away.

But now time was short. Soon they would be after him. Paine made one final effort. Unaware of the brace upon the secretary of State's neck, he instinctively went for that same target, slashing away powerfully. When finally he fled from the house, there was no getaway carriage. The servant had sounded the alarm. He would have to go on foot.

As the crowd exploded with laughter, John Wilkes Booth carefully turned the knob. There before him was the president's head, rocking back and forth. In a step, he was behind it, and a firecracker sound filled the theater.

Major Rathbone jumped up, as Mary Todd hysterically reached for the limp body of her husband. It happened so fast, that some in the crowd did not even realize what was going on until Booth's knife, originally meant for Grant, slammed down into the arm of Major Rathbone, who had reached out for the killer.

Booth's plan was to jump off the balcony onto the stage. But the pain-ridden arm of Rathbone, swinging fiercely, disrupted Booth's jump, and caused him to fall awkwardly, breaking his leg upon landing. Booth, undeterred, began limping across the stage toward his escape, screaming out (by most accounts) in Latin, "Thus always to tyrants!"

Knowing the theater well, he made a rear exit. There a boy stood holding his horse. A moment later, Booth was gone.

Atzerodt's nerves were shot. It seemed as if Johnson had been up there for weeks and weeks. Where was he already? Surely some government official would come to get the vice president soon now?

He could not wait. Fearfully, he got up and left the bar.

When Stanton was informed by messenger of the night's events, he at first had dismissed it as humbug. He had been with the secretary of State, for one, only hours before. What could have happened in that time?

But, to his fear, he soon heard that the news was quite true. Seward had been attacked and, worse, the president had been shot in the head. Quickly he made his way toward Ford's Theater.

The president had been moved across the street to a rooming house. Too large to fit in the small bed there, they had had to lay him diagonally across, his blood leaking out onto the pillow. Mary Todd was there, grabbing at him hysterically; at times she had to be removed from the room.

Stanton did not want to believe his eyes. He had no doubt now that he loved the man who lay dying before him. As doctors rushed in and out, doing their best in a desperate situation, Stanton remained through the night, refusing to leave the president's side.

At approximately 7:22 the next morning, the great man died.

"Now he belongs to the ages." Stanton remarked, promising to find the men responsible.

Booth awaited news of his team's success, and was disappointed to hear that Atzerodt had chickened out, and that Seward had survived due to the brace around his neck--his horse-riding accident had been a blessing in disguise.

Little sympathy could be found for the conspirators. Southern sympathizers did not rise up, and the government of the North remained stable. Booth did, however, get a doctor to fix his leg. The doctor's name was Samuel A. Mudd, hence the expression "your name is Mudd."

The repaired leg would not help Booth for long. He would head south looking for compassion for his cause. But the message to every Union soldier was clear: find this man.

And they did.

On April 26, 1865, Booth was cornered by Union soldiers near Bowling Green, Va. It is said that he tried to avoid arrest by running away. Perhaps the truth is that a court trial was not desired. He was shot and killed on the spot.

The rest of the conspirators were rounded up within a matter of days. Paine and Atzerodt were hanged, along with a young friend and co-conspirator of Booth's by the name of David Herold. Mrs. Mary E. Surratt, who had allowed the conspirators to meet at her house, was also hanged. Mudd and others received jail time.

Mary Todd Lincoln, who was unstable beforehand, spent a year in an asylum after her husband's death. Ironically, Major Rathbone was later murdered himself.

Lincoln's blood can still be found on the pillow on which they laid his head down to die. It is said that, if we wanted to, we might be able to clone him from the specimen.

But many believe Lincoln is with us still. Grace Coolidge, wife of the 30th president, Calvin Coolidge, claimed to have seen the ghost of Lincoln by the window of the Oval Office. Guests at the White House would later hear noises that they attributed to Lincoln's footsteps. Queen Wilhelmina of the Netherlands, invited to the White House by FDR, purported that she answered a knock at her door one night and found Lincoln standing before her. Norman Vincent Peale related the account of an unidentified actor staying at the White House who heard Lincoln's voice calling out for help, and awoke to see "the lanky form of Lincoln prostrate on the floor in prayer, arms outstretched with fingers digging into the carpet."

Other Lincoln-visit stories have been reported by Eleanor Roosevelt, Ronald and Nancy Reagan and Harry Truman. Even Winston Churchill claimed to have awoken one night to see the ghostly silhouette of Lincoln standing within his room.

-Ross Rosenfeld ("The Night Lincoln Died", Newsweek, 2.14.2003. Image: -Alexander Gardner, "Abraham Lincoln's Last Session" NOTE: This last photo session from Lincoln's life was long thought to have happened on April 10, 1865, but more recent research has indicated the earlier date at Gardner's Gallery, Washington D.C, Sunday, February 5, 1865 ).

Wednesday, July 29, 2009

Sociopathic Kings, Queens & Lords: Wealth Is Proof Of Goodness...

The Wall Street Journal reported last week that:

"Executives and other highly compensated employees now receive more than one-third of all pay in the US... Highly paid employees received nearly $2.1 trillion of the $6.4 trillion in total US pay in 2007, the latest figures available."

One of the questions often asked when the subject of CEO pay comes up is:

"What could a person such as William McGuire or Lee Raymond (the former CEOs of UnitedHealth and ExxonMobil, respectively) possibly do to justify a $1.7 billion paycheck or a $400 million retirement bonus?"


Why is executive pay so high?

I've examined this with both my psychotherapist hat on and my amateur economist hat on, and only one rational answer presents itself: CEOs in America make as much money as they do because there really is a shortage of people with their skill set. And it's such a serious shortage that some companies have to pay as much as $1 million a day to have somebody successfully do the job. But what part of being a CEO could be so difficult-so impossible for mere mortals-that it would mean that there are only a few hundred individuals in the United States capable of performing it?

In my humble opinion, it's the sociopath part:

CEOs of community-based businesses are typically responsive to their communities and decent people. But the CEOs of most of the world's largest corporations daily make decisions that destroy the lives of many other human beings. Only about 1 to 3 percent of us are sociopaths-people who don't have normal human feelings and can easily go to sleep at night after having done horrific things. And of that 1 percent of sociopaths, there's probably only a fraction of a percent with a college education. And of that tiny fraction, there's an even tinier fraction that understands how business works, particularly within any specific industry. Thus there is such a shortage of people who can run modern monopolistic, destructive corporations that stockholders have to pay millions to get them to work. And being sociopaths, they gladly take the money without any thought to its social consequences.

Today's modern transnational corporate CEOs-who live in a private-jet-and-limousine world entirely apart from the rest of us-are remnants from the times of kings, queens, and lords. They reflect the dysfunctional cultural (and Calvinist/Darwinian) belief that wealth is proof of goodness, and that that goodness then justifies taking more of the wealth.

Democracy in the workplace is known as a union. The most democratic workplaces are the least exploitative, because labor has a power to balance capital and management. And looking around the world, we can clearly see that those cultures that most embrace the largest number of their people in an egalitarian and democratic way (in and out of the workplace) are the ones that have the highest quality of life. Those that are the most despotic, from the workplace to the government, are those with the poorest quality of life.

Over time, balance and democratic oversight will always produce the best results. An "unregulated" marketplace is like an "unregulated" football game -CHAOS. And chaos is a state perfectly exploited by sociopaths, be they serial killers, warlords, or CEOs.

By changing the rules of the game of business so that sociopathic business behavior is no longer rewarded (and, indeed, is punished - as Teddy Roosevelt famously did as the "Trustbuster" and FDR did when he threatened to send "War Profiteers" to jail), we can create a less dysfunctional and more egalitarian society. And that's an important first step back from the thresholds to environmental and economic disaster we're now facing.

-Thom Hartmann ( Exerpt: "Profiling CEOs & Their Sociopathic Paychecks, 7.27.2009. Image: Louis XIII Crowned by Victory (Siege of La Rochelle, 1628), Oil on canvas, 228 x 175 cm, Musée du Louvre, Paris, 1635).

Sunday, July 12, 2009

Torture 2003: "Sadistic Acts Perpetrated Against The Innocent." -GWB

"In 2003, President Bush said torture anywhere is an affront to human dignity everywhere, and the United States is committed to building a world where human rights are respected and protected by the rule of law. In a statement issued on United Nations International Day in Support of Victims of Torture June 26, the president called on all governments to join in prohibiting, investigating and prosecuting all acts of torture and in undertaking to prevent other cruel and unusual punishment. Following is the official text of Bush's statement:

THE WHITE HOUSE
Office of the Press Secretary
June 26, 2003

STATEMENT BY THE PRESIDENT

United Nations International Day in Support of Victims of Torture

“Today, on the United Nations International Day in Support of Victims of Torture, the United States declares its strong solidarity with torture victims across the world. Torture anywhere is an affront to human dignity everywhere. We are committed to building a world where human rights are respected and protected by the rule of law. Freedom from torture is an inalienable human right. The Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment, ratified by the United States and more than 130 other countries since 1984, forbids governments from deliberately inflicting severe physical or mental pain or suffering on those within their custody or control. Yet torture continues to be practiced around the world by rogue regimes whose cruel methods match their determination to crush the human spirit. Beating, burning, rape, and electric shock are some of the grisly tools such regimes use to terrorize their own citizens. These despicable crimes cannot be tolerated by a world committed to justice.

Notorious human rights abusers, including, among others, Burma, Cuba, North Korea, Iran, and Zimbabwe, have long sought to shield their abuses from the eyes of the world by staging elaborate deceptions and denying access to international human rights monitors. Until recently, Saddam Hussein used similar means to hide the crimes of his regime. With Iraq's liberation, the world is only now learning the enormity of the dictator's three decades of victimization of the Iraqi people. Across the country, evidence of Baathist atrocities is mounting, including scores of mass graves containing the remains of thousands of men, women, and children and torture chambers hidden inside palaces and ministries. The most compelling evidence of all lies in the stories told by torture survivors, who are recounting a vast array of sadistic acts perpetrated against the innocent. Their testimony reminds us of their great courage in outlasting one of history's most brutal regimes, and it reminds us that similar cruelties are taking place behind the closed doors of other prison states.

The United States is committed to the world-wide elimination of torture and we are leading this fight by example. I call on all governments to join with the United States and the community of law-abiding nations in prohibiting, investigating, and prosecuting all acts of torture and in undertaking to prevent other cruel and unusual punishment. I call on all nations to speak out against torture in all its forms and to make ending torture an essential part of their diplomacy. I further urge governments to join America and others in supporting torture victims' treatment centers, contributing to the UN Fund for the Victims of Torture, and supporting the efforts of non-governmental organizations to end torture and assist its victims.

No people, no matter where they reside, should have to live in fear of their own government. Nowhere should the midnight knock foreshadow a nightmare of state-commissioned crime. The suffering of torture victims must end, and the United States calls on all governments to assume this great mission."

- Office of the White House Press Secretary (U.S Diplomatic Mission to Italy U.S. Department of State, 6.26.2003. Image: - Joseph Rodriguez, "Levi's Prison Guard-Advertisement", 2008).

Wednesday, July 8, 2009

Statistical Destroyers: Irrational Patriotism & The RAND Corporation

"You probably never heard of the RAND Corporation but it's indirectly influenced your life more than any government or institution in North America.

Early in its 60 years, this Santa Monica-based nonprofit corporation taught the U.S. Air Force how to fight a nuclear war while assuring the rest of us that such a war would be kind of OK. But it's done much more. Early on, RAND economist Kenneth Arrow argued mathematically that individuals always act rationally in their own interest, not in the interest of groups. This philosophy developed into Reaganism (government is the problem) and Thatcherism (society doesn't exist). It guided the policies of George W. Bush.

RAND developed "systems analysis," a logical, mathematical approach to problems. Its analysts argued, for example, that fallout shelters and evacuation into deep mines could save millions of American lives. That would make a nuclear war not just fightable, but winnable. Herman Kahn, an advocate of such wars, became the model for Stanley Kubrick's Dr. Strangelove. Paul Baran, another RAND analyst, thinking about surviving a Soviet nuclear attack, invented a way to use digital communications. His information packets are the foundation of the modern internet.

Systems analysis had an eager ally in Robert McNamara, who died Monday. When McNamara was U.S. defense secretary, he told his boss, President Lyndon Johnson, that Vietnam was a winnable war. Then RAND analysts interviewed Vietcong prisoners and found them alarmingly irrational and unconcerned about their individual interests. Instead, they were patriots determined to unify their country at any cost. The analysts decided the U.S. had put itself on the losing side of the war, but by then it was too late. It was a RAND analyst, Daniel Ellsberg, who secretly photocopied the top-secret history of the Vietnam War and released it to the U.S. media. As The Pentagon Papers, that leak discredited a generation of America's best and brightest.

Alex Abella's new book, "Soldiers of Reason" is a disturbing history of very smart people putting their brains at the service of very stupid ideas. He managed to interview many of the key persons in the organizations, as well as friends and relatives of those who launched RAND after World War II. The result is a book rich in ironies. Perhaps the richest irony is that RAND owes much of its success to an ex-communist who kept his radical youth a secret. Albert Wohlstetter had been part of a 1930s generation -- the brightest and poorest.

AT CCNY, Wohlstetter, a brilliant young mathematician, knew the Reds who sat at separate cafeteria tables -- the Stalinists at one, the Trotskyites at another. Some of the names of the CCNY Trots still resonate today: Irving Howe, Irving Kristol, Daniel Bell. They soon migrated from the left to the anti-Soviet right, and flourished in Cold War America. Kristol's son William is a Neoconservative. Not yet political, Wohlstetter left CCNY in 1934 and managed to study law at Columbia. There he applied his math skills to politics and philosophy. His mathematics and logic led him to join a Neo-Trotskyite splinter group called the "League for a Revolutionary Workers Party."

Fortunately for him, his party records were lost in a traffic accident. While he left the League, he never abandoned his view of the Soviet Union as a system determined to conquer the world. His mission in life was to thwart that system. Wohlstetter spent World War II as a government bureaucrat, and then, in postwar Los Angeles, bumped into an old colleague who invited him to apply for a job with the new RAND Corporation. With his communist past well concealed, he got the job -- and, Abella suggests, prevented the possibility of a Soviet first strike on American air bases.

Wohlstetter's analysis of the vulnerability of the Strategic Air Command didn't just teach the Air Force to disperse its bases. It also made him a major force in U.S. strategic thinking. RAND's systems analysis approach has dominated American policy-making ever since. Wohlstetter strongly influenced John F. Kennedy, Lyndon Johnson, and Richard Nixon. He eventually left RAND, but his impact endured. By the time he died in 1996, at the age of 86, he had inspired and advanced a new generation of apprentices who would become the Neocons: Richard Perle, Paul Wolfowitz, Donald Rumsfeld, Dick Cheney, Zalmay Khalilzad.

As soldiers of reason, the neocons believed in numbers and systems and individualism. Trotsky's bastards, they imagined themselves "scientific" just as the Bolsheviks had. Like the Bolsheviks, they believed in reason yet never examined their basic premises. Their patriotism was as irrational as that of the Vietcong, but far more destructive. It didn't matter. As long as they had access to the billions in the US defense budget, and they could invoke a Soviet or terrorist threat, they flourished.

Many who worked with RAND, including Wohlstetter and Kahn, emerge as genuinely likable men with charm and wit. That makes them all the more disturbing. RAND's greatest triumphs were the war in Iraq and the economic policies of the Bush administration. Now both are in ruins. But for the foreseeable future we will live with the consequences of RAND’s thinking, just as we have for the past 60 years.

-Crawford Kilian (Exerpt: “Cold War Cult,” thtyee.ca, 7.8.2009. Image:Westinghouse Advertisement, 1960s).