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Ethel the Blog
Observations (and occasional brash opining) on science, computers, books, music and other shiny things that catch my mind's eye. There's a home page with ostensibly more permanent stuff. This is intended to be more functional than decorative. I neither intend nor want to surf on the bleeding edge, keep it real, redefine journalism or attract nyphomaniacal groupies (well, maybe a wee bit of the latter). The occasional cheap laugh, raised eyebrow or provocation of interest are all I'll plead guilty to in the matter of intent. Bene qui latuit bene vixit.

The usual copyright stuff applies, but I probably won't get enraged until I find a clone site with absolutely no attribution (which, by the way, has happened twice with some of my other stuff). Finally, if anyone's offended by anything on this site then please do notify me immediately. I like to keep track of those times when I get something right.

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Wednesday, June 27, 2001

MEA STRESSA
Thanks to those who've emailed during my unintended vacation. I've got the jones going again today although there's no guarantee how long it'll last. The date for my move to Duke University in North Carolina looms ever closer, I've managed to get involved with someone (for the first time in a decade) in just the last month, etc. The stressors are waxing rather than waning, although the marbles are still mostly all gathered together in the same bag. Perhaps I'll be a bit more forthcoming on the details in future, although don't stay up late waiting, eh?
posted by Steven Baum 6/27/2001 11:20:00 AM |
link

LINING UP AT THE TROUGH
As Dean Baker points out in this week's
Economics Reporting Review, even supporters of the privatization of Social Security admit that the overhead will greatly increase:
This is accurate, but it is worth noting that supporters of privatization also acknowledge that privatization could generate fees of this magnitude. The State Street Bank, which has been associated with the privatization drive, designed a low cost bare bones system, which by its own estimate would generate approximately $5 billion a year in fees. Olivia Mitchell, an economist who has researched this topic extensively, and sits on President Bush's Commission, has shown in her work that other privatized systems spend up to 10-20 percent of their annual revenue in fees. The same ratio applied to the U.S. system would imply $40-80 billion in annual fees. By comparison, the administrative costs of the current system are less than $3 billion. In short, there is no dispute that a privatized system will incur billions of dollars of administrative fees.
He also reports on a brazen lie by Treasury Secretary Paul O'Neill:
This article reports on a speech on Social Security that Treasury Secretary Paul O'Neill gave before a group of financial industry executives in New York. In the speech, O'Neill asserted that Social Security has no assets. The article points out that as Treasury Secretary, O'Neill is also a trustee of the Social Security program. In that capacity he signed the most recent trustees' report, which shows that the system has more than $900 billion in assets.
There's also a bit about yet another conflict of interest in the Shrub cadre:
This article reports on Treasury Secretary Paul O'Neill's cooperation with a financial industry lobbying group, which seeks to privatize Social Security. The article notes the peculiarity of the relationship, since O'Neill is a trustee of the Social Security system, with a fiduciary responsibility to it.
although by now it should be obvious that the Shrub definition of "conflict of interest" is "something bad that happens to other people."
posted by Steven Baum 6/27/2001 10:52:20 AM | link

BIG TIME DEALS
Clinton's fanatical enemies are still out to get him six months after he's left office, with one of the chief remaining "ranting points" being his pardon of Marc Rich, among whose supposed unpardonable offenses was brokering oil deals with Iran 20 years ago. Meanwhile, we find the the current Vice President has not only been
making deals with Iran, but has also been selling oil equipment to Iran in the last decade, i.e.
Acording to industry executives and confidential United Nations records, however, Halliburton held stakes in two firms that signed contracts to sell more than $73 million in oil production equipment and spare parts to Iraq while Cheney was chairman and chief executive officer of the Dallas-based company.
To be fair, however, the deals were every bit as legal as Clinton's pardon of Rich, seeing how Dan Burton still hasn't provided a videotape of Clinton swapping a pardon with Rich for a suitcase full of money:
The trade was perfectly legal. Indeed, it is a case study of how U.S. firms routinely use foreign subsidiaries and joint ventures to avoid the opprobrium of doing business with Baghdad, which does not violate U.S. law as long as it occurs within the "oil-for-food" program run by the United Nations.
So if Big Time was being legal if not completely ethical, then why did he lie about it?
Cheney has offered contradictory accounts of how much he knew about Halliburton's dealings with Iraq. In a July 30, 2000 interview of ABC-TV's "This Week", he denied that Halliburton or its subsidiaries traded with Baghdad.

"I had a firm policy that we wouldn't do anything in Iraq, even arrangements that were supposedly legal," he said. "We've not done any business in Iraq since U.N. sanctions were imposed on Iraq in 1990, and I had a standing policy that I wouldn't do that."

Cheny modified his response in an interview on the same program three weeks later, after he was informed that a Halliburton spokesman had acknowledged that Dresser Rand and Ingersoll Dresser Pump traded with Iraq.

He said that he was unaware that the subsidiares were doing business with the Iraqi rgime when Halliburton purchased Dresser Industries in September 1988.

"We inherited two joint ventures with Ingersoll-Rand that were selling some parts into Iraq," Cheney explained, "but we divisted ourselves of those interests."

The divestiture, however, was not immediate. The firms traded with Baghdad for more than a year under Cheney, signing nearly $30 million in contracts before he sold Halliburton's 49 percent stake in Ingersoll Dresser Pump Co. in December 1999 and its 51 percent interest in Dresser Rand to Ingersoll-Rand in February 2000, according to U.N. records.

"Contradictory accounts" and "modified his response", eh? One wonders what phrases would be used if Clinton or even Gore were involved instead. One doesn't wonder for even a moment what Dan Burton would do if rumors were made up on the spot that Clinton was involved with a firm that'd made deals with both Iran and Iraq in the last decade, or if Chelsea had been sighted saying the word "Iraq" without spitting immediately afterward, or if she'd been sighted spitting in public for that matter.
posted by Steven Baum 6/27/2001 09:25:52 AM | link

Tuesday, June 26, 2001

CALIFORNIA SCAMMING
From the
Sacramento Bee:
Three former San Diego Gas & Electric Co. employees who worked at a Duke Energy plant said Thursday that the generator destroyed working parts, withheld power supply or otherwise took actions that they believe drove up the price of electricity.

State officials said the whistle-blowers' comments at a state Senate hearing today could provide the most damaging illustration yet that power generators held down production to inflate prices on the spot market. Gov. Gray Davis has long alleged that power companies have overcharged the state and utilities.
...
"We stand behind our maintenance practices and have done a good job keeping the power flowing," Duke spokesman Tom Williams told the CBS television network.

But former mechanic Glenn Johnson said he saw generation units taken "down for economics."

Ed Edwards, also a mechanic, said he was ordered to destroy 23 pallets of working parts.

"We were asked, myself and other employees, to disperse of perfectly good parts that were used to make repairs of systems and components," Edwards said.

Adam Smith warned of this sort of thing, although even the miniscule percentage of free market "economists" who've actually read him never seem to remember those bits.
posted by Steven Baum 6/26/2001 04:19:35 PM | link


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