Joe Nocera, New York Times business analyst, thinks so.
Christopher J. Dodd, a Connecticut Democrat and chair of the Senate Banking Committee On Thursday, asked Neel Kashkari - the former Goldman Sachs Vice President Henry Paulson appointed to oversee the bailout - why the banks were being slow to make loans.
Senator Dodd: "How was Treasury going to ensure that banks used their new government capital to make loans — “besides rhetorically begging them?”
Kashkari: “We share your view. We want our banks to be lending in our communities.”
According to Nocera, what is actually happening is quite different. He suggests that Paulson’s rationale for the bailout - that banks would start lending again - "is a fig leaf.”
Instead the real agenda is more bank mergers.
Treasury recently introduced a new tax break that, according to Nocera, has only one purpose: to encourage bank mergers”. He cites tax expert Robert Willens: “It couldn’t be clearer if they had taken out an ad.”
As a result of this and other moves, “investors no longer trust Treasury.”
"First it says it has to have $700 billion to buy back toxic mortgage-backed securities.
"Then, as Mr. Paulson divulged to The Times this week, it turns out that even before the bill passed the House, he told his staff to start drawing up a plan for capital injections. Fearing Congress’s reaction, he didn’t tell the Hill about his change of heart.
"Now, he’s shifted gears again, and is directing Treasury to use the money to force bank acquisitions."
And loans to the public meantime?
“The dirty little secret of the banking industry is that it has no intention of using the money to make new loans”. Nocera listened in on a conference call between Chase executives and caught the following discussion of how Chase was going to spend the $25 billion it received from the Treasury:
“Twenty-five billion dollars is obviously going to help the folks who are struggling more than Chase,” he began. “What we do think it will help us do is perhaps be a little bit more active on the acquisition side or opportunistic side for some banks who are still struggling. And I would not assume that we are done on the acquisition side just because of the Washington Mutual and Bear Stearns mergers. I think there are going to be some great opportunities for us to grow in this environment, and I think we have an opportunity to use that $25 billion in that way and obviously depending on whether recession turns into depression or what happens in the future, you know, we have that as a backstop.”
“Read that answer as many times as you want”, says Nocera, “you are not going to find a single word in there about making loans to help the American economy.”
Nocera chased down Senator Dodd “and asked him what he was going to do if the loan situation didn’t improve. “All I can tell you is that we are going to have the bankers up here .... If it turns out that they are hoarding, you’ll have a revolution on your hands. ... There will be hell to pay.”
Nocera’s summary:
“I don’t know about you, but I’m starting to feel as if we’ve been sold a bill of goods.”
So When Will Banks Give Loans? By Joe Nocera, NYT. Published: October 24, 2008
Saturday, October 25, 2008
Thursday, October 23, 2008
A sleazy blizzard
It's a blizzard of really nasty robocalls and flyers in the mail.
After several last week we got 2 calls yesterday, but one friend got 3 in an hour - all disgusting anti-Obama stuff, from the Republican National Committee and the McCain campaign - they aren't even using cover.
Here' s one we got (I got the text from Democracy Now's website, but it is word for word)
McCAIN ROBOCALL: Hello, I’m calling for John McCain and the RNC, because you need to know that Barack Obama has worked closely with domestic terrorist Bill Ayers, whose organization bombed the US Capitol, the Pentagon, a judge’s home, and killed Americans. And Democrats will enact an extreme leftist agenda if they take control of Washington. Barack Obama and his Democratic allies lack the judgment to lead our country. This call was paid for by McCain-Palin 2008 and the Republican National Committee at 202-863-8500.
The flyer covers the same ground.
Unlike John Kerry, who was slow responding to the Swift Boat crap, Obama folk move fast. Here is their response:
OBAMA ROBOCALL: Hi. This is Jeri Watermolen calling for the Campaign for Change. I live in Green Bay, and like you, I’ve been getting sleazy phone calls and mail from John McCain and his supporters, viciously and falsely attacking Barack Obama. I used to support John McCain, because he honorably served our country. But this year he’s running a dishonorable campaign. We know McCain will continue many of Bush’s policies, and now he’s using George Bush’s divisive tactics. In fact, he hired the Bush strategist whose attacks even McCain once called hateful. Barack Obama will turn the page on these negative politics and stand up for the middle class. That’s the change we need, and it is why I have changed my mind about John McCain. Join me in voting for Barack Obama. Paid for by the Campaign for Change, a project of the Democratic Party of Wisconsin, 608-255-5172, and authorized by Obama for America. (Again, text from Democracy Now website).
And the reaction is good. For one, a Madison man who quit his job rather than make these calls is getting national attention, including in the NYT today. And this from that same story.
"On MSNBC, Representative Michele Bachmann of Minnesota was launching into the Obama/terrorist spin when she suggested that the news media should investigate “the views of the people in Congress and find out: Are they pro-America or anti-America.” So far, the only person who’s felt the impact of her call to reinvent McCarthyism for a post-Communist planet has been her opponent, a hitherto totally ignored Democrat named Elwyn Tinklenberg, who was stunned to discover in the following days that he had received close to $1 million in donations."
MAYBE sleaze isn't going to pay off this time.
After several last week we got 2 calls yesterday, but one friend got 3 in an hour - all disgusting anti-Obama stuff, from the Republican National Committee and the McCain campaign - they aren't even using cover.
Here' s one we got (I got the text from Democracy Now's website, but it is word for word)
McCAIN ROBOCALL: Hello, I’m calling for John McCain and the RNC, because you need to know that Barack Obama has worked closely with domestic terrorist Bill Ayers, whose organization bombed the US Capitol, the Pentagon, a judge’s home, and killed Americans. And Democrats will enact an extreme leftist agenda if they take control of Washington. Barack Obama and his Democratic allies lack the judgment to lead our country. This call was paid for by McCain-Palin 2008 and the Republican National Committee at 202-863-8500.
The flyer covers the same ground.
Unlike John Kerry, who was slow responding to the Swift Boat crap, Obama folk move fast. Here is their response:
OBAMA ROBOCALL: Hi. This is Jeri Watermolen calling for the Campaign for Change. I live in Green Bay, and like you, I’ve been getting sleazy phone calls and mail from John McCain and his supporters, viciously and falsely attacking Barack Obama. I used to support John McCain, because he honorably served our country. But this year he’s running a dishonorable campaign. We know McCain will continue many of Bush’s policies, and now he’s using George Bush’s divisive tactics. In fact, he hired the Bush strategist whose attacks even McCain once called hateful. Barack Obama will turn the page on these negative politics and stand up for the middle class. That’s the change we need, and it is why I have changed my mind about John McCain. Join me in voting for Barack Obama. Paid for by the Campaign for Change, a project of the Democratic Party of Wisconsin, 608-255-5172, and authorized by Obama for America. (Again, text from Democracy Now website).
And the reaction is good. For one, a Madison man who quit his job rather than make these calls is getting national attention, including in the NYT today. And this from that same story.
"On MSNBC, Representative Michele Bachmann of Minnesota was launching into the Obama/terrorist spin when she suggested that the news media should investigate “the views of the people in Congress and find out: Are they pro-America or anti-America.” So far, the only person who’s felt the impact of her call to reinvent McCarthyism for a post-Communist planet has been her opponent, a hitherto totally ignored Democrat named Elwyn Tinklenberg, who was stunned to discover in the following days that he had received close to $1 million in donations."
MAYBE sleaze isn't going to pay off this time.
Sunday, October 5, 2008
Goldman Sachs fingers in Wall Street bailout?
I was struck by the fact that no-one in power seemed to have noticed that we were in economic trouble until their pockets were threatened, when all of a sudden they decided to pick ours.
So I was intrigued by the question as to whether Henry Paulson's Goldman Sachs background and connections had anything to do with his sudden discovery of the problem. (Or rather whether there were any smoking pistols). Seems pretty clear from the following timeline:
On Sept 14 Lehmans was allowed to go into bankruptcy, Merrill Lynch was in trouble, and AIG asked The Fed for $40b.
Over the weekend Sept 14-15, there were meetings at the New York Federal Reserve. Henry M. Paulson Jr., the Treasury secretary, attended as did Lloyd C. Blankfein, the chief executive of Goldman Sachs attended the weekend meetings.
On Sept 15 the Fed said no to AIG, the Dow Jones sank over 500 points.
On Sept 16 there was another high level meeting to discuss financial aid for A.I.G. which Henry Paulson did not attend, but Blankfein was the ONLY Wall Street chief executive who attended this meeting. The Fed changed its mind and gave AIG $85b.
Why let Lehman collapse, but first deny then save AIG?
Probably not the only reason, but my guess is not unrelated, Goldman Sachs was deeply threatened by an AIG collapse, though few people were aware of this at first. A Goldman spokesman, declined to detail how badly hurt his firm might have been had A.I.G. collapsed and Goldman’s chief financial officer, assured analysts on Sept. 16 that his firm’s exposure was “immaterial". But other stories have confirmed that GS was in danger. By one calculation Goldman had $20 billion worth of risk tied to A.I.G.
On Sept. 16 the government announced its two-year, $85 billion loan to A.I.G. What is notable is that the plan saved the insurer’s trading partners - such as Goldman Sachs - but decimated its shareholders.
A Treasury spokeswoman declined to comment about Goldman’s role in the A.I.G. rescue. However turn around again and suddenly Goldman had changed its regulatory status to help bolster its finances.
Regarding Mr. Blankfein’s presence at the Fed during talks about an A.I.G. bailout, Goldman's CFO said: “I think it would be a mistake to read into it that he was there because of our own interests. We were engaged because of the implications to the entire system.”
On Sept 18 Secretary Paulson went the next step and proposed the $700 billion to bailout 'the entire system'.
So I was intrigued by the question as to whether Henry Paulson's Goldman Sachs background and connections had anything to do with his sudden discovery of the problem. (Or rather whether there were any smoking pistols). Seems pretty clear from the following timeline:
On Sept 14 Lehmans was allowed to go into bankruptcy, Merrill Lynch was in trouble, and AIG asked The Fed for $40b.
Over the weekend Sept 14-15, there were meetings at the New York Federal Reserve. Henry M. Paulson Jr., the Treasury secretary, attended as did Lloyd C. Blankfein, the chief executive of Goldman Sachs attended the weekend meetings.
On Sept 15 the Fed said no to AIG, the Dow Jones sank over 500 points.
On Sept 16 there was another high level meeting to discuss financial aid for A.I.G. which Henry Paulson did not attend, but Blankfein was the ONLY Wall Street chief executive who attended this meeting. The Fed changed its mind and gave AIG $85b.
Why let Lehman collapse, but first deny then save AIG?
Probably not the only reason, but my guess is not unrelated, Goldman Sachs was deeply threatened by an AIG collapse, though few people were aware of this at first. A Goldman spokesman, declined to detail how badly hurt his firm might have been had A.I.G. collapsed and Goldman’s chief financial officer, assured analysts on Sept. 16 that his firm’s exposure was “immaterial". But other stories have confirmed that GS was in danger. By one calculation Goldman had $20 billion worth of risk tied to A.I.G.
On Sept. 16 the government announced its two-year, $85 billion loan to A.I.G. What is notable is that the plan saved the insurer’s trading partners - such as Goldman Sachs - but decimated its shareholders.
A Treasury spokeswoman declined to comment about Goldman’s role in the A.I.G. rescue. However turn around again and suddenly Goldman had changed its regulatory status to help bolster its finances.
Regarding Mr. Blankfein’s presence at the Fed during talks about an A.I.G. bailout, Goldman's CFO said: “I think it would be a mistake to read into it that he was there because of our own interests. We were engaged because of the implications to the entire system.”
On Sept 18 Secretary Paulson went the next step and proposed the $700 billion to bailout 'the entire system'.
Monday, September 1, 2008
Who's rich, who's poor
John McCain thinks the line between rich and poor is about $5 million a year. That makes the vast majority of us poor, but also shows he doesn't know much about how the vast majority of us live. I guess he only knows rich folk.
But then many people think that the Republicans make life better for most of us, too - another error. The historical record shows that under Democrats we all do better. Under Republicans even the rich don't do as well as they would with a Dem President - but pity the poor!
Family Income Growth, annual average 1948-2005
By income level (Adjusted for inflation)
Percentile Under Dem. Pres. Under Rep. Pres
20th + 2.64% + 0.43%
40th + 2.46% + 0.8 %
60th + 2.47% + 1.13%
80th + 2.38% + 1.39%
95th + 2.12% + 1.90%
The 20th percentile is a plausible dividing line between the poor and the non-poor.
The 95th percentile is the best dividing line between the rich and the nonrich - well below the $5 million threshold John McCain used. It’s closer to $180,000.
Source: Is History Siding With Obama’s Economic Plan?
By ALAN S. BLINDER, August 30, 2008
http://www.nytimes.com/2008/08/31/business/31view.html?scp=1&sq=Blinder&st=cse
But then many people think that the Republicans make life better for most of us, too - another error. The historical record shows that under Democrats we all do better. Under Republicans even the rich don't do as well as they would with a Dem President - but pity the poor!
Family Income Growth, annual average 1948-2005
By income level (Adjusted for inflation)
Percentile Under Dem. Pres. Under Rep. Pres
20th + 2.64% + 0.43%
40th + 2.46% + 0.8 %
60th + 2.47% + 1.13%
80th + 2.38% + 1.39%
95th + 2.12% + 1.90%
The 20th percentile is a plausible dividing line between the poor and the non-poor.
The 95th percentile is the best dividing line between the rich and the nonrich - well below the $5 million threshold John McCain used. It’s closer to $180,000.
Source: Is History Siding With Obama’s Economic Plan?
By ALAN S. BLINDER, August 30, 2008
http://www.nytimes.com/2008/08/31/business/31view.html?scp=1&sq=Blinder&st=cse
Wednesday, August 20, 2008
Want more wars? Vote Johnny ‘shoot ‘em down’ McCain
Let’s be clear: Georgian President Mikheil Saakashvili started this particular outbreak of violence. On the night of Aug. 7, Saakashvili ordered an artillery barrage against Tskhinvali, in South Ossetia, and sent an armored column to occupy the town, killing a number of Russian peacekeepers. As a result of a three-day battle Tskhinvali was in smoking ruins and thousands of people fled. However Russian claims of genocide appear to have been exaggerated.
The big question is Why? Was Saakashvili under the impression that NATO or the US military would intervene if Russia fought back? It seems hard to imagine that he would have invaded South Ossetia if he did not think he had American backing. How could he have had that idea?
Well now ... joint US-Georgian military exercises ended just hours before Georgian troops moved into the province. A senior Bush administration official acknowledged that “it’s possible that Georgians may have confused the cheerleading from Washington with something else.”
And the 'confusing cheerleading' goes back longer than that. The US foreign policy teams have crammed NATO expansion down the Russians’ throats since the collapse of the Soviet Union. The West has expanded military alliances up to Russian borders, and assumed that Russia would do nothing about it.
A Russian perspective
Former Soviet leader Mikhael Gorbachev points out that Russia has long been told to simply accept the facts on a number of issues:
On the independence of Kosovo, the Russians had insisted that independence for Kosovo would be a serious affront. Last February, the United States and the European Union, over Russia’s vehement objections, recognized an independent Kosovo.
On the abrogation of the Antiballistic Missile Treaty, and the American decision to place missile defenses in neighboring countries:(today) August 20 2008 the US and Poland announced an agreement on the siting of 10 interceptor missiles in northern Poland.
On the unending expansion of NATO: Mr. Bush has promised NATO membership and its accompanying umbrella of American military support to Georgia.
Mr. Putin, angry at what he saw as American infringement right in his backyard, decided that Georgia was the line in the sand that the West would not be allowed to cross.
The McCain connection: McCain adviser also Georgia lobbyist.
Was McCain himself involved in setting this Russian bear trap? The Georgian crisis has created a campaign issue McCain can run on. The new trumped up threats about Russia make his antic-Soviet experience "relevant" again. And John McCain and friends were busy stirring the pot.
On April 17 McCain spoke with Saakashvili by phone, a call arranged by Randy Scheunemann, his major foreign policy adviser. Scheunemann is a leading neo-conservative lobbyist for oil companies and arms manufacturer. He was until recently a registered foreign agent for Georgia, and was Director of the Committee for the Liberation of Iraq. After the conversation, McCain issued a statement, saying that “we must not allow Russia to believe it has a free hand to engage in policies that undermine Georgian sovereignty.” Later that day, Scheunemann's Orion Strategies lobbying firm signed a new $200,000 deal with Georgia.
Bush team divided
Within the Bush administration, there is discord, as “the fight between the hawks and the doves” erupted anew, according to one administration official.
The hawks: Cheney and his aides and allies including the assistant secretary of state for Europe, Daniel Fried, see Georgia as a role model for their democracy promotion campaign. They have argued for more American military aid for Georgia, including Stinger antiaircraft missiles, so that it could defend itself against possible Russian aggression.
The “doves”: Condoleezza Rice, National Security Adviser Stephen J. Hadley and William J. Burns, the new under secretary of state for political affairs, have urged restraint. They argued that such a sale would provoke Russia, which would see it as arrogant meddling in its turf, the officials and diplomats said. Ms. Rice, for the time being, has won the fight against adding American-provided Stinger missiles to Georgia’s arsenal.
Is Saakashvili a democrat?
By last November, Mr. Saakashvili’s democratic credentials were becoming checkered. Accused by the opposition of corruption, arrogance and centralization, he declared a state of emergency. He won a snap election this year on a vote that the opposition said was rigged.
The oil connection:
If Saakashvili did believe he had US support, why did he not get it? Perhaps this is where that favorite foreign policy addiction – oil – plays a role in this dispute. The United States has poured hundreds of millions of dollars in aid and military hardware, mostly to protect the Baku-Tbilisi-Ceyhan pipeline that bypasses Russia and Iran on its way to Turkey.
Sources
U.S. Watched as a Squabble Turned Into a Showdown, Helene Cooper, C.J. Chivers, Clifford Levy, The New York Times, August 18, 2008 US troops train Georgians amid tension by Douglas Birch and Misha Dzhindzhikhashvili Associated Press, Jul 21st, 2008 | TBILISI, Georgia What Did We Expect? By Thomas Friedman, The New York Times: August 19, 2008 Russia Never Wanted a War, by Mikhael Gorbachev, The New York Times: August 19, 2008 The Battle of Tskhinvali Tour of Tskhinvali undercuts Russian claim of genocide, By Tom Lasseter | McClatchy Newspapers, Associated Press, Sunday, August 17, 2008Oil pipelines
The big question is Why? Was Saakashvili under the impression that NATO or the US military would intervene if Russia fought back? It seems hard to imagine that he would have invaded South Ossetia if he did not think he had American backing. How could he have had that idea?
Well now ... joint US-Georgian military exercises ended just hours before Georgian troops moved into the province. A senior Bush administration official acknowledged that “it’s possible that Georgians may have confused the cheerleading from Washington with something else.”
And the 'confusing cheerleading' goes back longer than that. The US foreign policy teams have crammed NATO expansion down the Russians’ throats since the collapse of the Soviet Union. The West has expanded military alliances up to Russian borders, and assumed that Russia would do nothing about it.
A Russian perspective
Former Soviet leader Mikhael Gorbachev points out that Russia has long been told to simply accept the facts on a number of issues:
On the independence of Kosovo, the Russians had insisted that independence for Kosovo would be a serious affront. Last February, the United States and the European Union, over Russia’s vehement objections, recognized an independent Kosovo.
On the abrogation of the Antiballistic Missile Treaty, and the American decision to place missile defenses in neighboring countries:(today) August 20 2008 the US and Poland announced an agreement on the siting of 10 interceptor missiles in northern Poland.
On the unending expansion of NATO: Mr. Bush has promised NATO membership and its accompanying umbrella of American military support to Georgia.
Mr. Putin, angry at what he saw as American infringement right in his backyard, decided that Georgia was the line in the sand that the West would not be allowed to cross.
The McCain connection: McCain adviser also Georgia lobbyist.
Was McCain himself involved in setting this Russian bear trap? The Georgian crisis has created a campaign issue McCain can run on. The new trumped up threats about Russia make his antic-Soviet experience "relevant" again. And John McCain and friends were busy stirring the pot.
On April 17 McCain spoke with Saakashvili by phone, a call arranged by Randy Scheunemann, his major foreign policy adviser. Scheunemann is a leading neo-conservative lobbyist for oil companies and arms manufacturer. He was until recently a registered foreign agent for Georgia, and was Director of the Committee for the Liberation of Iraq. After the conversation, McCain issued a statement, saying that “we must not allow Russia to believe it has a free hand to engage in policies that undermine Georgian sovereignty.” Later that day, Scheunemann's Orion Strategies lobbying firm signed a new $200,000 deal with Georgia.
Bush team divided
Within the Bush administration, there is discord, as “the fight between the hawks and the doves” erupted anew, according to one administration official.
The hawks: Cheney and his aides and allies including the assistant secretary of state for Europe, Daniel Fried, see Georgia as a role model for their democracy promotion campaign. They have argued for more American military aid for Georgia, including Stinger antiaircraft missiles, so that it could defend itself against possible Russian aggression.
The “doves”: Condoleezza Rice, National Security Adviser Stephen J. Hadley and William J. Burns, the new under secretary of state for political affairs, have urged restraint. They argued that such a sale would provoke Russia, which would see it as arrogant meddling in its turf, the officials and diplomats said. Ms. Rice, for the time being, has won the fight against adding American-provided Stinger missiles to Georgia’s arsenal.
Is Saakashvili a democrat?
By last November, Mr. Saakashvili’s democratic credentials were becoming checkered. Accused by the opposition of corruption, arrogance and centralization, he declared a state of emergency. He won a snap election this year on a vote that the opposition said was rigged.
The oil connection:
If Saakashvili did believe he had US support, why did he not get it? Perhaps this is where that favorite foreign policy addiction – oil – plays a role in this dispute. The United States has poured hundreds of millions of dollars in aid and military hardware, mostly to protect the Baku-Tbilisi-Ceyhan pipeline that bypasses Russia and Iran on its way to Turkey.
Sources
U.S. Watched as a Squabble Turned Into a Showdown, Helene Cooper, C.J. Chivers, Clifford Levy, The New York Times, August 18, 2008 US troops train Georgians amid tension by Douglas Birch and Misha Dzhindzhikhashvili Associated Press, Jul 21st, 2008 | TBILISI, Georgia What Did We Expect? By Thomas Friedman, The New York Times: August 19, 2008 Russia Never Wanted a War, by Mikhael Gorbachev, The New York Times: August 19, 2008 The Battle of Tskhinvali Tour of Tskhinvali undercuts Russian claim of genocide, By Tom Lasseter | McClatchy Newspapers, Associated Press, Sunday, August 17, 2008Oil pipelines
Caucasian War Timeline
Timeline: 2008
January: Georgian Ministry of Defense released a “strategic defense review” that laid out its broad military planning for the breakaway regions.
March 19: Saakashvili was in Washington to push for NATO membership for Georgia
April 3: Bush lobbied NATO leaders for Ukraine and Georgia to be welcomed into a Membership Action Plan that prepares nations for NATO membership, the night before the NATO summit meeting in Bucharest, Romania. Mr. Bush lost that battle.
April 4: NATO leaders agreed to endorse a United States missile defense system based in Eastern Europe, and the Europeans said invitations to the membership plan for Georgia and Ukraine might come in a year, at the next summit.
April 17: McCain spoke with Saakashvili by phone, a call arranged by Randy Scheunemann, his major foreign policy adviser. After the conversation, McCain issued a statement, on that “we must not allow Russia to believe it has a free hand to engage in policies that undermine Georgian sovereignty.”
Scheunemann is a leading neo-conservative lobbyist for oil companies and arms manufacturer. He was until recently a registered foreign agent for Georgia, and was Director of the Committee for the Liberation of Iraq. Later that day, Scheunemann's Orion Strategies lobbying firm signed a new $200,000 deal with Georgia.
April 21: a Georgian pilotless reconnaissance plane flying over Abkhazia was shot down. Georgia accused Russia of shooting it down while Mr. Putin expressed “bewilderment” at Georgia’s sending planes over Abkhazia.
May and June: Russia increased the number of troops in South Ossetia and sent troops into Abkhazia for ‘humanitarian’ reasons.
July: Condaleeza Rice in Tbilisi, where, aides said, she privately told Mr. Saakashvili not to let Russia provoke him into a fight he could not win. But her public comments were far more supportive.
July 21 - Aug 6: Joint US-Georgian military exercises involving more than 1,000 U.S. Marines and soldiers at a former Soviet base Monday, amid heightened tensions with Moscow.
August 1-5: Shelling from South Ossetia to Georgia proper increased significantly Georgian police officers were wounded by remotely detonated explosions in South Ossetia. Troops from Georgia battled separatist fighters, killing at least 6 people; the Georgians accused the South Ossetian separatists of firing at Georgian towns behind the shelter of Russian peacekeepers.
August 6: Separatists fired on several Georgian villages. The Russian Defense Ministry and South Ossetian officials say that Georgians provoked the escalation by shelling Russian peacekeeping positions in the region’s capital of Tskhinvali, along with civilian areas.
January: Georgian Ministry of Defense released a “strategic defense review” that laid out its broad military planning for the breakaway regions.
March 19: Saakashvili was in Washington to push for NATO membership for Georgia
April 3: Bush lobbied NATO leaders for Ukraine and Georgia to be welcomed into a Membership Action Plan that prepares nations for NATO membership, the night before the NATO summit meeting in Bucharest, Romania. Mr. Bush lost that battle.
April 4: NATO leaders agreed to endorse a United States missile defense system based in Eastern Europe, and the Europeans said invitations to the membership plan for Georgia and Ukraine might come in a year, at the next summit.
April 17: McCain spoke with Saakashvili by phone, a call arranged by Randy Scheunemann, his major foreign policy adviser. After the conversation, McCain issued a statement, on that “we must not allow Russia to believe it has a free hand to engage in policies that undermine Georgian sovereignty.”
Scheunemann is a leading neo-conservative lobbyist for oil companies and arms manufacturer. He was until recently a registered foreign agent for Georgia, and was Director of the Committee for the Liberation of Iraq. Later that day, Scheunemann's Orion Strategies lobbying firm signed a new $200,000 deal with Georgia.
April 21: a Georgian pilotless reconnaissance plane flying over Abkhazia was shot down. Georgia accused Russia of shooting it down while Mr. Putin expressed “bewilderment” at Georgia’s sending planes over Abkhazia.
May and June: Russia increased the number of troops in South Ossetia and sent troops into Abkhazia for ‘humanitarian’ reasons.
July: Condaleeza Rice in Tbilisi, where, aides said, she privately told Mr. Saakashvili not to let Russia provoke him into a fight he could not win. But her public comments were far more supportive.
July 21 - Aug 6: Joint US-Georgian military exercises involving more than 1,000 U.S. Marines and soldiers at a former Soviet base Monday, amid heightened tensions with Moscow.
August 1-5: Shelling from South Ossetia to Georgia proper increased significantly Georgian police officers were wounded by remotely detonated explosions in South Ossetia. Troops from Georgia battled separatist fighters, killing at least 6 people; the Georgians accused the South Ossetian separatists of firing at Georgian towns behind the shelter of Russian peacekeepers.
August 6: Separatists fired on several Georgian villages. The Russian Defense Ministry and South Ossetian officials say that Georgians provoked the escalation by shelling Russian peacekeeping positions in the region’s capital of Tskhinvali, along with civilian areas.
Saturday, August 2, 2008
same old same old
New York Governor Paterson is calling for immediate action in the face of what he is describing as worst economic downturn in decades. And just what is he recommending to deal with it: “freezing state hiring and cutting prized programs, possibly including education and health care”.
Sounds familiar. Isn’t this what we have been doing for the past decade? So where is Paterson getting these not-so-fresh ideas? From a tried and true team – or perhaps a ‘tired and untrue’ team. Paterson has consulted with high-profile economists like Robert E. Rubin, the Treasury secretary in Bill Clinton’s administration, Ben S. Bernanke, the Federal Reserve chairman; Henry M. Paulson Jr., the Treasury secretary. Hven’t we seen these guys before. Is this what we can expect as proposed solutions to the crisis from a Democratic Administration in Washington? I hope not.
Opportunity Knocks as Paterson Tackles Budget
JEREMY W. PETERS, NYT, August 2, 2008
Sounds familiar. Isn’t this what we have been doing for the past decade? So where is Paterson getting these not-so-fresh ideas? From a tried and true team – or perhaps a ‘tired and untrue’ team. Paterson has consulted with high-profile economists like Robert E. Rubin, the Treasury secretary in Bill Clinton’s administration, Ben S. Bernanke, the Federal Reserve chairman; Henry M. Paulson Jr., the Treasury secretary. Hven’t we seen these guys before. Is this what we can expect as proposed solutions to the crisis from a Democratic Administration in Washington? I hope not.
Opportunity Knocks as Paterson Tackles Budget
JEREMY W. PETERS, NYT, August 2, 2008
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