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Monthly Archives: April 2008

The case of the missing e-mail

A federal magistrate judge on Thursday chastised the Bush administration for failing to fully answer questions related to a long-running dispute over missing White House emails. The White House is facing lawsuits from two public interest groups, Citizens for Responsibilty and Ethics in Washington and the National Security Archive at George Washington University, demanding that the White House restore the missing e-mails and put in place systems to prevent further e-mail losses. Administration officials were ordered to provide detailed information about the burdens involved in taking immediate actions to preserve copies of hard drive, tapes, and other media that may contain copies of the missing e-mails.

The ongoing dispute spotlights a part of the executive branch that doesn’t often get much attention: its e-mail system. Two laws govern the retention of executive branch documents. The Federal Record Act requires the head of each federal agency to ensure that documents related to that agency’s official business be preserved for federal archives. The Watergate-era Presidential Records Act augmented the FRA framework by specifically requiring the president to preserve documents related to the performance of his official duties. A 1993 court decision held that these laws applied to electronic records, including e-mails, which means that the president has an obligation to ensure that the e-mails of senior executive branch officials are preserved.

In 1994, the Clinton administration reacted to the previous year’s court decision by rolling out an automated e-mail-archiving system to work with the Lotus-Notes-based e-mail software that was in use at the time. The system automatically categorized e-mails based on the requirements of the FRA and PRA, and it included safeguards to ensure that e-mails were not deliberately or unintentionally altered or deleted.

(Continue reading: ars technica)

Pentagon Wary Of Tehran’s Expanding Nuclear Program And Support Of Iraqi Insurgents

A second American aircraft carrier steamed into the Persian Gulf on Tuesday as the Pentagon ordered military commanders to develop new options for attacking Iran. CBS News national security correspondent David Martin reports that the planning is being driven by what one officer called the “increasingly hostile role” Iran is playing in Iraq – smuggling weapons into Iraq for use against American troops.

“What the Iranians are doing is killing American servicemen and -women inside Iraq,” said Secretary of Defense Robert Gates.

U.S. officials are also concerned by Iranian harassment of U.S. ships in the Persian Gulf as well as Iran’s still growing nuclear program. New pictures of Iran’s uranium enrichment plant show the country’s defense minister in the background, as if deliberately mocking a recent finding by U.S. intelligence that Iran had ceased work on a nuclear weapon.

No attacks are imminent and the last thing the Pentagon wants is another war, but Chairman of the Joint Chiefs of Staff Mike Mullen has warned Iran not to assume the U.S. military can’t strike.

“I have reserve capability, in particular our Navy and our Air Force so it would be a mistake to think that we are out of combat capability,” Mullen said.

Targets would include everything from the plants where weapons are made to the headquarters of the organization known as the Quds Force which directs operations in Iraq. Later this week Iraqi Prime Minister Nouri al-Maliki is expected to confront the Iranians with evidence of their meddling and demand a halt.

If that doesn’t produce results, the State Department has begun drafting an ultimatum that would tell the Iranians to knock it off – or else.

(CBS News)

The Last Time Interest Rates Were This Low Was December 2004

The Federal Reserve once again cut a key interest rate, trying to do whatever it can to keep the economy from grinding to a complete stop.

Today’s quarter-point cut brings the Fed Funds interest rate to 2 percent. It was the seventh such cut since September, when the central bank first started to lower rates — then at 5.25 percent — in response to a collapsing housing market and the tightening of credit.

The last time interest rates were this low was December 2004.

This cut might be the last one for a while. Many economists and investors expect that at some point soon the Fed will take a pause in its rate-cutting.

“Recent information indicates that economic activity remains weak. Household and business spending has been subdued and labor markets have softened further,” the Fed said in its statement. “Financial markets remain under considerable stress, and tight credit conditions and the deepening housing contraction are likely to weigh on economic growth over the next few quarters.”

While Wall Street investors typically like such moves, this rate cut is likely to have little, if any, impact on most Americans. Rates on mortgages, credit cards, student loans and other types of loans in the past benefited from such a cut, but now are unlikely to change substantially because of this move. The latest cut, however, could mean higher gas prices for Americans.

Nevertheless, Joel L. Naroff, president and founder of Naroff Economic Advisors, said the Federal Reserve made the right decision.

“Cutting one more time, it doesn’t do a whole lot,” Naroff said. “But it’s a chance for the Fed to signal that it intends to stop the rate reductions. The simple fact is short-term rates are low already. They don’t need to go a whole lot lower. The problem is not the level of rates, the problem is the availability of money and that’s the credit crunch, liquidity problem.”

(Continue reading: )

CAMP STRYKER, Iraq—The first warning that many U.S. troops receive here in Baghdad isn’t about the rampant IEDs (improvised explosive devices), or the RPGs (rocket propelled grenades), or even the EFPs (explosively formed projectiles). It’s about the PCPs: the pervasive combat paunches.

As I wait for my C-130 flight from Kuwait to western Baghdad, a soldier tells me about a PowerPoint slide that’s becoming popular in Army briefings: “Back in 2003, the average soldier lost 15 pounds during his tour of Iraq,” he recounts. “Now, he gains 10.”

Arriving at Camp Stryker, I get to savor the dilemma firsthand. My low-slung Army tent is pitched just down the road from a Pizza Hut, a Burger King and a Green Beans Coffee—the war-zone cousin of Starbucks that sells mocha frappes for a cheeky $4.25. Around the corner sits a massive chow hall run by former Halliburton subsidiary KBR Inc. where troops load up on four varieties of fried meats and five flavors of Baskin Robbins. The facility is billed as “all-you-can-eat,” and, trust me, soldiers do.

Traveling all the way to a war zone to report on military calorie counts may seem like the height of triviality, especially as Baghdad’s security situation implodes. But Camp Stryker’s butterball cuisine is more than a frivolous aside; it’s an entree into the general engorgement of the war itself.

Where, for instance, do the mountains of beef patties, pecan pies and Coco Puffs come from? The Houston-based KBR farms out most of its $27-billion government contract to Gulf states middlemen, who greet initial food shipments in Kuwait. Low-wage Pakistani and Nepali subcontractors then distribute the goods to U.S. mess halls, where even lower-wage Indians and Sri Lankans prepare them for the troops. All along the route are markups galore, sometimes exceeding 500 percent.

(Continue reading: Truthdig)

Canada’s C-51 Law May Outlaw 60% of Natural Health Products; Big Pharma Pushing to Criminalize Supplements

A new law being pushed in Canada by Big Pharma seeks to outlaw up to 60 percent of natural health products currently sold in Canada, even while criminalizing parents who give herbs or supplements to their children. The law, known as C-51, was introduced by the Canadian Minister of Health on April 8th, 2008, and it proposes sweeping changes to Canada’s Food and Drugs Act that could have devastating consequences on the health products industry.

Among the changes proposed by the bill are radical alterations to key terminology, including replacing the word “drug” with “therapeutic product” throughout the Act, thereby giving the Canadian government broad-reaching powers to regulate the sale of all herbs, vitamins, supplements and other items. With this single language change, anything that is “therapeutic” automatically falls under the Food and Drug Act. This would include bottled water, blueberries, dandelion greens and essentially all plant-derived substances.

(Continue reading: Natural News)

Fed’s Bailout Is Questioned by Ex-Staffer

The Federal Reserve’s rescue of Bear Stearns Cos. will come to be seen as its “worst policy mistake in a generation,” a former top Fed staffer said.

[Reinhart]
Vincent Reinhart: An ex-Fed player’s Monday-morning quarterbacking.

The episode will be seen as comparable to “the great contraction” of the 1930s and “the great inflation” of the 1970s, Vincent Reinhart said Monday at a panel organized by the American Enterprise Institute, a conservative-leaning think tank where he is now a scholar. Until mid-2007, Mr. Reinhart was director of monetary affairs at the Fed and secretary of its policy-making panel, the most senior position on the Fed’s Washington-based staff.

His appraisal is one of the harshest yet by a high-profile observer. The Fed last month lent Bear Stearns money to prevent a bankruptcy filing and then financed $29 billion of its assets to facilitate a takeover by J.P. Morgan Chase & Co. Former Fed Chairman Paul Volcker has said the move went to “the very edge of [the Fed's] lawful and implied powers,” although he has since said that that wasn’t meant as a criticism. Congress and analysts have deferred to the Fed’s judgment.

Mr. Reinhart said the bailout “eliminated forever the possibility the Fed could serve as an honest broker.” In 1998, the Fed coaxed private creditors of Long-Term Capital Management to bail out the hedge fund but didn’t have to put up its own money. If it ever tries a similar maneuver on a Wall Street cohort, he said, “The reasonable question any person in the room will ask is, ‘How much will you contribute to the solution?’”

(Continue reading: Wall Street Journal)

The Pentagon announced on Friday that it was suspending its briefings for retired military officers who often appear as military analysts on television and radio programs.

A spokesman for the Pentagon said the briefings and all other interactions with the military analysts had been suspended indefinitely pending an internal review.

On Sunday, The New York Times reported that since 2002 the Pentagon has cultivated several dozen military analysts in a campaign to generate favorable coverage of the administration’s wartime performance. The retired officers have made tens of thousands of appearances for television and radio networks, holding forth on Iraq, Afghanistan, detainee issues and terrorism in general.

Records and interviews show that the Bush administration worked to transform the analysts into an instrument intended to shape coverage from inside the major networks.

(Continue reading: New York Times)

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