Government Run Like A Business Led To Lead In Flint’s Water

“If the kids in a rich suburb of Detroit had been drinking contaminated water, we would have done something about it.”
– Hillary Clinton

“There are no excuses. The governor long ago knew about the lead in Flint’s water. He did nothing. As a result, hundreds of children were poisoned. Thousands may have been exposed to potential brain damage from lead. Gov. Snyder should resign.”
– Bernie Sanders

You might have heard that there is lead in Flint’s water. You’re not going to believe how much. And you’re not going to believe how bad lead exposure is for people. But you’ll probably believe it happened because government-hating Republicans set aside democracy so Flint’s residents couldn’t stop them from running government “like a business” and cutting government spending.

Trade Policies Sent The Jobs Away

Michigan is one state that has been hard hit by our country’s trade policies. Once considered the center of the automobile industry, factories and jobs were sent out of the country to places where people are exploited and barely paid, and the environment is not protected. (Yes, we let them do that.)

The result has been absolutely devastating (see “ruin porn“) to Michigan cities like Detroit and Flint as jobs disappeared and people who could afford to move to try to find jobs did just that. The rest of the city’s residents are left in poverty amidst miles of boarded-up, abandoned and falling-down buildings and homes, empty storefronts, and absolutely overwhelmed and underfunded public services. Help from the state and federal governments is not forthcoming.

Run Government Like A Business

Rick Snyder is a businessman (CEO, venture capitalist) who in 2010 campaigned for governor on running government like a business, promising to be the CEO governor who would create jobs. Michigan was starved for jobs, first from Wall-Street-sponsored deindustrialization, then from the Wall-Street-caused crash and recession/depression. So any promise of jobs went a long way. Maybe it was time to try turning government over to someone wealthy from outside government who said he knew better than government how to run government. Daily Beast noted at the time, “there is a more than a hint of plutocrats-know-best in Rick Snyder’s campaign pitch.”

But government in a democracy is nothing like a business. It is supposed to organize itself to deliver services and make people’s lives better, not profit off the people. Managing government and business requires entirely different skill sets and mindsets. (Also, that thing about businesses “creating jobs?” That’s not what businesses strive to do; they strive to cut costs and eliminate jobs. According to the Daily Beast, “While Snyder was on the board of Gateway [a U.S.-based computer company that had its heyday in the 1990s but ceased independent operations in 2007], the company’s workforce contracted from 21,000 American workers in 2000 to 7,400 workers in 2003.”)

Emergency Manager Law, Setting Aside Democracy

In 2011, Republicans passed a controversial law allowing the governor to run government like a business and appoint a CEO-style “emergency manager” when a city is considered to be financially irresponsible (i.e., too black). Under the law, it does not matter that the people of the city already elected a mayor, council and other leaders. The governor sets the election aside, brings in an emergency manager to take control of the local government, reduce its size and cost, and privatize public property, no matter the effect on the people there.

Like a turnaround CEO brought in from another company, the emergency manager has few connections to the community. Cut services, cut costs, strip, streamline, just like a business would do. (Such cities are typically surrounded by well-off “white-flight” suburban areas that are not required to financially or otherwise participate in solving the problems.)

The affected communities didn’t like that, and, unlike a business, could still do something about it. Michigan’s emergency manager law was repealed by referendum in 2012. So Republicans re-passed it in a lame duck legislative session. But this time they included a small appropriation, which under Michigan law meant it cannot be subject to a voter referendum. That’s that; the board has spoken, everybody get in line, all row in the same direction, play on the same team, run the ball down the field, just like in a business, or get out. Except unlike in a business there is no “get out” – you still live there.


Public Health Emergency

Flint’s public health emergency started when the city’s emergency manager “saved money” ($8.5 million over 5 years) by switching the city’s water source from Detroit via a pipeline to drawing water from the polluted Flint River. People involved in water systems will tell you that river water is acidic, which leaches lead and other metals from pipes, but they were not asked. The emergency managers could have added corrosion control chemicals to the water, but that would be more “government spending,” and they didn’t.

This happened in April 2014. Immediately people started complaining about the taste and smell of the now-brown water that was coming into their homes. For 18 months people complained. They started getting rashes. People’s hair was falling out. The government, run like a business, did what businesses do: they entered “damage-control mode,” denied there was a problem, blamed the messengers and tried to spin things their way. City and state officials said the water was OK. But there were growing concerns that there was a problem.

A Flint pediatrician, Dr. Mona Hanna-Attisha of Hurley Children’s Hospital, compared blood test results for 1,746 children in Flint before and after April 2014 and discovered an increase in lead levels. “But when we announced the results, the state called me ‘an unfortunate researcher causing near hysteria,’ an ‘irresponsible researcher.’”

Then, in September, 2015, a study from Virginia Tech‘s Marc Edwards was released showing dangerous levels of lead in the water. Then in October city officials finally said, yes, something is wrong with the water and people should not drink it.

What was happening? Lead and other metals were “leaching” into the water as corrosion affected old pipes. From April 2014 until October 2015 the people of Flint were forced to drink contaminated water, filled with toxic amounts of lead and other metals.

How Much Lead Are We Talking About?

How much lead is in Flint’s water? Brace yourself.

The Washington Post provided a way to understand just how much lead, in “This is how toxic Flint’s water really is“:

In the spring of 2015, city officials tested water in the home of LeeAnne Walters, a stay-at-home mother of four and a Navy wife. They got a reading of 397 ppb, an alarmingly high number.

But it was even worse than that. Virginia Tech’s team went to Walters’ house to verify those numbers later in the year. They were concerned that the city tested water in a way that was almost guaranteed to minimize lead readings: They flushed the water for several minutes before taking a sample, which often washes away a percentage of lead contaminants. They also made residents collect water at a very low flow rate, which they knew also tended to be associated with lower readings.

So the Virginia Tech researchers took 30 different readings at various flow levels. What they found shocked them: The lowest reading they obtained was around 200 ppb, already ridiculously high. But more than half of the readings came in at more than 1,000 ppb. Some came in above 5,000 — the level at which EPA considers the water to be “toxic waste.”

The highest reading registered at 13,000 ppb.

Five parts per billion of lead are a concern. When lead reaches 15 parts per billion, the EPA says you are in trouble. 5,000 parts per billion is considered “toxic waste.”

From April 2014 until October 2015 (and later, and still) the people of Flint were drinking water with up to 13,000 parts per billion of lead in it.

What Lead Does To Health, Especially Children

Lead has terrible and irreversible effects on people’s health, especially children. Even low levels – 5 parts per billion – of exposure have been shown to have many subtle health effects.

According to the CDC, short-term exposure can cause people to feel:
● Abdominal pain
● Constipated
● Tired
● Headaches
● Irritable
● Loss of appetite
● Memory loss
● Pain or tingling in the hands and/or feet
● Weak

But if a pregnant woman is exposed, it can damage a developing baby’s nervous system. “Even low-level lead exposures in developing babies have been found to affect behavior and intelligence. Lead exposure can cause miscarriage, stillbirths, and infertility (in both men and women).”

In children lead exposure has “lasting neurological and behavioral damage.” It leads to intellectual disabilities, serious difficulty controlling impulses, retaining information and learning in school. It is difficult or impossible for them to later have thought-intensive jobs.

Lead can also keep the body from getting nutrients required for cell development and the growth of strong teeth and bones. (One way it does this is to “inhibit or mimic the actions of calcium.”)

According to the Natural Resources Defense Council’s (NRDC) “How Lead Poisons the Human Body,” “The lead builds up in soft tissue — kidneys, bone marrow, liver, and brain — as well as bones and teeth. … Some scientists believe that low-level chronic lead exposure in childhood can alter secretion of the human growth hormone, stunting growth and promoting obesity.”

The NRDC document has a warning for the future: “Unfortunately, most children do not present overt symptoms of poisoning. Because their symptoms (ranging from irritability to stomach upset) may not be immediately recognizable as lead-related the majority of cases go undetected.”


Cover Up?

Between April 2014 and October 2015, when studies confirmed that the water was poisoning people in Flint, people fought to get the city and state to do something. The water smelled, was brown, tasted bad and people were experiencing symptoms from it. And doctors were warning that people were showing signs of lead poisoning but could not yet confirm from where it was coming. All along the state kept saying this was not the result of the emergency manager’s decision to switch Flint’s water source to cut government spending, business-style.

It’s not as if people around the country were not trying to sound the alarm.

In May 2014, just a month after the water switch, the city learned that trihalomethanes ( TTHMs) were above levels allowed in the Clean Water Act, but did not inform residents until January 2015, and did not switch back to safe water.

In October 2014, GM noticed that the water was corroding engines and started trucking water in from elsewhere.

In March 2015, The New York Times reported:

After Flint changed the source of its drinking water last spring, Ms. Mays said, she noticed a change in the water’s color and odor. Then she started having rashes, and clumps of her hair fell out. When the city issued a boil order, she stopped using the water for drinking and cooking. Now her family spends roughly $400 a month on bottled water.

… Flint officials insist that the city’s water is safe. They say that the issues of odor and color are separate from the question of whether the water meets federal standards, and that no link to health problems has been proved.

…“I don’t feel hopeful,” Mr. Palladeno said. “At one time, I loved this town. I still love it. There’s good people here. But the governing is killing us. I think we need a federal intervention.”

The Atlantic wrote in July 2015:

Melissa Mays looks around the emergency room at a frail, elderly man in a wheelchair and a woman with a hacking cough and can’t quite believe she’s here. Until a few months ago, she was healthy—an active mother of three boys who found time to go to the gym while holding down a job as a media consultant and doing publicity for bands.

But lately, she’s been feeling sluggish. She’s developed a rash on her leg, and clumps of her hair are falling out. She ended up in the emergency room last week after feeling “like [her] brain exploded,” hearing pops, and experiencing severe pain in one side of her head.

Mays blames her sudden spate of health problems on the water in her hometown of Flint. She says it has a blue tint when it comes out of her faucet, and lab results indicate it has high amounts of copper and lead. Her family hasn’t been drinking the water for some months, but they have been bathing in it, since they have no alternative.

The State of Michigan, under the direction of Governor Rick Snyder, tried to keep the story under wraps, and deny there was a problem, apparently even after they knew there was a serious problem. As late as September the state was still denying there was a problem with the water from the Flint river, and taking issue with the studies saying otherwise. Michigan Live wrote, “State says data shows no link to Flint River, elevated lead in blood“:

Angela Minicuci, a spokeswoman for the Michigan Department of Health and Human Services, said blood lead levels in Flint have remained fairly steady for children under 16 years old since the city switched from Lake Huron water to the river.

However, while denying there was a problem, the governor’s office was secretly ordering filters be supplied to Flint.

Professor Marc Edwards from Virginia Tech University says the reason the state was still denying the link could be that they altered data from samples. CNN reports in “Did Michigan officials hide the truth about lead in Flint?

Documents and emails show discrepancies between two reports detailing the toxicity of lead samples collected by the Michigan Department of Environmental Quality and the city of Flint between January and June 2015, Professor Marc Edwards from Virginia Tech University said.

… According to Edwards, the Michigan Department of Environmental Quality and the city of Flint collected 71 lead level samples from homes when they were required to collect 100. The final report from the Department of Environmental Quality however, only accounted for 69 of those 71 samples.

Edwards said those two discarded samples were “high-lead” and would have lifted the “action level” above 15 parts per billion.

But wait, there’s more,

Edwards said the samples should have been taken from homes with lead pipes. The reports say they were, but Michael Glasgow, then-assistant supervisor of the Flint water plant, said this is not true. Glasgow told CNN the records were not complete, and the sampling teams did not know which homes had lead pipes.

“In essence, the state took an ‘F-grade’ for Flint water’s report on lead and made it into an ‘A-grade,'” Edwards told CNN.

But wait, there’s more,

The memo notes that residents were instructed to “pre-flush” taps before samples were taken, a practice that has been shown “to result in the minimization of lead capture and significant underestimation of lead levels.”

Michigan’s Department of Environmental Quality notified the city on June 25, 2015 that they had found high lead levels in some of the samples. It was after that notification that the samples changed, and showed no more lead.

Now Legionnaire’s Disease, Too

On top of the lead crisis, Legionnaire’s disease is breaking out in Flint, also apparently a consequence of the problems with Flint’s water. So far 87 cases of Legionnaire’s Disease, 10 of them fatal, have turned up.

Federal Emergency

Saturday President Obama declared a federal emergency in Flint. This means the federal government, the Federal Emergency Management Agency and other agencies can start to help the people there. FEMA will provide water, filters and cartridges and other items, up to $5 million. However, he did not declare Flint and its county, Genesee, to be disaster areas, which would bring additional funds and assistance, because that status has always been used for natural disasters rather than man-made (in this case we should say Republican-made) ones.

This crisis is terrible news for Flint. It comes as Flint was entering a period of revival. The University of Michigan had opened dormitories for its Flint campus and the result was new restaurants and shops springing up. Housing prices were finally stabilizing and increasing.

What Must Be Done

Michael Moore wrote a public letter to President Obama (with a petition, click through) asking for President Obama to provide federal assistance:

● The CDC here at once to truly assess all of the disease and damage that has been forced upon the people of Flint.

● FEMA has to supply large water containers in every home in Flint — and they must be filled by water trucks until the new infrastructure is resolved.

● The EPA must take over matters from the State (can the governor be removed and replaced like he did to the mayor of Flint?). Immediately.

● You must send in the Army Corps of Engineers to build that new water infrastructure. Otherwise, you might as well just evacuate all the people from Flint and move them to a white city that has clean drinking water — and where this would never happen.

The people in Flint are going to need complete health evaluations and care for any problems that show up. But this is also a long-term public health crisis. People will need evaluation and care for years.

Flint’s children that have been affected are going to need special teaching and other assistance, as well as other help for the rest of their lives.

Rachel Maddow

The reason this story has come to the attention of the nation is because Rachel Maddow has been pounding on it and making people listen. Here are links to some of the segments Maddow has shown. (If you only watch one, watch this one.)

● Dec. 15, 2015 Lead-poisoned children prompt emergency declaration from mayor

● Dec. 18, 2015, Kids’ toxic test results raised alarm over water supply: Doctor

● Dec. 19, 2015, Flint toxic water tragedy points directly to Michigan Gov. Snyder

● Dec 22, 2015, Snyder admin allowed Flint to drink toxic water despite warnings

● Dec. 23, 2015, Flint community scrambles to cope with state’s water error

● Dec. 29, 2015, Michigan governor apologizes for Flint water

● Jan. 4, 2016, New calls for federal probe of Snyder admin in Flint water fiasco

● Jan. 6, 2016, Flint water concerns ‘blown off’ by state: Snyder staffer e-mail

● Jan. 7, 2016, Water donations run dry in Flint, no action from Governor Snyder

● Jan. 11, 2016, Meager progress in Flint toxic water crisis by Michigan’s Snyder

● Jan. 13, 2016, Spike in cases of Legionnaires’ eyed for tie to Flint toxic water

● Jan. 15, 2015, Clinton chastises Snyder on Flint, state calls for federal help

Other Resources

Listen to “Not Safe to Drink,” a special documentary about the Flint water crisis

● Daily Kos, Anatomy of a community poisoned: The water disaster in Flint, Michigan

How To Help

How to help Flint, Michigan

How you can help people in Flint during the water crisis

Ways to help Flint residents during water crisis

Bottles for the Babies

One more thing. Like a business, Flint is telling customers they still owe for the poisoned water. They are sending shut-off notices to residents telling them they will be cut off if they do not pay up.

Government is not a business. It shouldn’t be thought of as a business and especially not run like a business. Government is supposed to represent us, We the People, and help us have better lives. It should serve us, not profit off of us and disregard our lives.


This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary and/or for the Progress Breakfast.

Exxon’s Funding Of Climate Denial Turned Americans Against Their Own Government For Profit

Exxon and other fossil fuel companies may have committed a crime of enormous proportions, and more and more elected officials and others are demanding an investigation.

The charge is that Exxon scientists and management knew since the late 1970s that the company’s product was helping cause our planet to warm “catastrophically,” but management responded by covering this up and disseminating disinformation – joining with other companies to commit an enormous fraud on the public for profit.

For some time, environmentalists have been warning that oil and coal companies were behind a broad campaign to deceive the public and block the government from regulating or taxing carbon pollution. Sites like ExxonSecrets, the Union of Concerned Scientists, SourceWatch and their Coal Issues portal, CoalSwarm and many others have been exposing, warning, documenting and working to get the word out.

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VW Case Shows Need For More And Bigger Government

Again and again we hear about corporations doing bad things so they can make more money: polluting, selling contaminated food or otherwise harming people’s health, selling products that injure people or just don’t do what they advertise, tricking and scamming people out of their money, selling banned goods or providing financial services for terrorists or drug cartels, and so many other things that are not good for people or society.

Wouldn’t it be great if there were some entity that was more powerful than these corporations, whose purpose is to protect us, reign these corporations in, make and enforce rules, prosecute offenders and put a stop to this stuff?

This Week: VW

This week we are hearing about Volkswagen (VW). For years the company claimed they were selling “clean diesel” engines, but they were tricking their customers, the public and governments around the world. Their cars are really a public health threat, putting out up to 40 times the legal limit of pollutants that cause asthma and other disease.

VW built a “defeat mechanism” into as many as 11 million cars. This mechanism let the cars pass government tests, even though they were polluting like crazy when driven in the real world. The mechanism made the engine run clean during government tests, then when it detected that the tests were finished it set the engine to start polluting again.

For years these cars have been harming people and until now VW was getting away with (and making big profits from) this. They were finally caught, and we will see whether executives are prosecuted, or if this will be one more case of weak (or corrupted) government issuing a fine that lets a company make its shareholders pay the cost instead of holding the executives that did it accountable.

The Fix For The VW Cars

This is huge. Up to 11 million cars have these “defeat” mechanisms in them. These cars have to be fixed because their emissions can cause people to develop asthma and other respiratory diseases. But fixing this is a big problem.

According to Wired, in “VW Owners Aren’t Going to Like the Fixes for Their Diesels,” there are two choices for fixing these cars – and either choice means the car owners end up losing a lot of what they thought they had paid for.

The first is to update the software so the cars always run in the “test mode” that defeated the emissions tests. But the changes the software made to the engines to get them to operate within the legal emissions limits while being tested will cause the car to either have poor acceleration or poor gas mileage.

The second is to actually fix the problem that causes the engines to pollute. According to Wired, VW would have to add a “urea” tank and the means to inject this into the catalytic converter:

The standard way of making a diesel run cleanly is to use selective catalytic reduction, a chemical process that breaks NOx [mono-nitrogen oxides] down into nitrogen and water. Part of that process includes adding urea to the mix. The super effective system can eliminate 70 to 90 percent of NOx emissions, and is used by other diesel manufacturers like Mercedes and BMW. The downside is that it adds complication to the system, and cost — $5,000 to $8,000 per car. And you need to periodically add the urea-based solution to your car to keep it working.

… So it seems the logical way to get those cars to perform like their diesel cousins is to add a urea. VW’s unlikely to embrace that option, because adding hardware to half a million cars would be far more expensive than a computer update. It wouldn’t be any fun for the TDI owner, either. Not only do you have to spend an afternoon with your local dealer, you have to make room for the tank. That could mean sacrificing cargo space or giving up the spare tire.

The cost to VW will be huge, and the customers lose either way. Never mind all the people suffering asthma and lung disease resulting from the pollution these cars were emitting.

VW Not An Isolated Case

The New York Times reports, in “Volkswagen Test Rigging Follows a Long Auto Industry Pattern,” that,

For decades, car companies found ways to rig mileage and emissions testing data. In Europe, some automakers have taped up test cars’ doors and grilles to bolster their aerodynamics. Others have used “superlubricants” to reduce friction in the car’s engine to a degree that would be impossible in real-world driving conditions.

Automakers have even been known to make test vehicles lighter by removing the back seats.
… [In 1973 the EPA] fined Volkswagen $120,000 after finding that the company had installed devices intended specifically to shut down a vehicle’s pollution control systems. In 1974, Chrysler had to recall more than 800,000 cars because similar devices were found in the radiators of its cars.

[. . .] Beyond emissions, the industry has long been contemptuous of regulation. Henry Ford II called airbags “a lot of baloney,” and executives have bristled at rules requiring higher mileage per gallon.

VW might not even be the only company that is scamming government testing labs with “defeat mechanisms’ right now. From the report,

“We call it the tip of the iceberg,” said Jos Dings, the director of Transport and Environment. “We don’t think this will be limited to Volkswagen. If you look at the testing numbers for the other manufacturers, they are just as bad.”

The Times report lists several examples of the auto industry engaging in profit-making by endangering their customers. There was the “unexploded Pinto” problem of gas tanks blowing up. There were 271 deaths from the Ford-Firestone tire scandal. There were the Takata airbags that either don’t work or injure people. There was Chrysler selling as new cars that had been driven for 60,000 miles with the odometers disconnected. Click through, there’s plenty… But no one has been put in jail.

So what VW was caught doing is “not an isolated incident” and, in fact, VW had already been caught doing the same thing in the 1970s.

Not Just Auto Industry

VW is hardly the only company in the auto industry engaged in these practices, and the auto industry is hardly the only industry engaging in this kind of activity.

● Of course, tobacco still kills over 480,000 Americans each year and no one even talks about doing anything about it. Everyone understands this is because of the great wealth and power of the tobacco companies as well as their influence over a certain political party. More than 480,000 terrible, painful deaths each year!

● The “Obamacare” health reform was written the way it was because it was understood from the start that the insurance and pharmaceutical companies had enough power to block anything they didn’t like. So we didn’t get Medicare for All or even a “public option.” These industries had already blocked the administration of President Bill Clinton from reforming the health care system, leading to more decades of deaths, untreated illness and bankruptcies.

● In 2000, The Nation reported, in “The Secret History of Lead,” that the lead industry knew and kept secret for decades that they were poisoning people with lead in gasoline, paint and other products, and instead of doing something about it they protected their profits by covering this up and attacking government efforts to do something.

The leaded gas adventurers have profitably polluted the world on a grand scale and, in the process, have provided a model for the asbestos, tobacco, pesticide and nuclear power industries, and other twentieth-century corporate bad actors, for evading clear evidence that their products are harmful by hiding behind the mantle of scientific uncertainty.

Mother Jones’ Kevin Drum reported on just one of the societal consequences of this decades-long crime, in “America’s Real Criminal Element: Lead.” His investigative report concluded that lead may be “the hidden villain behind violent crime, lower IQs, and even the ADHD epidemic.” That whole put-millions-in-prison thing that has ruined so many lives? Oops, it might have been the lead industry’s doing. Are any lead industry executives in jail for that?

● The fossil-fuel industry is notorious for polluting and for causing climate change. The industry has captured an entire political party and has them fight the development of alternative energy sources, taxes on carbon, fuel-saving public transportation initiatives, other energy-saving efforts, etc. The industry funds a climate denial cult that threatens the entire planet.

These are just a few of so many examples.

Big Government Prosecutions Can Make A Difference

Corporations save money by cutting corners. Dumping carbon into the air. Putting lead in gasoline. You name it. They price the potential fines into the product as a cost of doing business. And company shareholders pay those fines. The executives who commit the actual wrongdoing are rarely if ever held accountable themselves.

Many companies can safely assume that the government isn’t even going to catch them or do anything if they do. Government cowed by intense anti-government propaganda. We hear that “government can’t do anything as well as business can,” that “big government threatens us,” and “government takes money out of the economy.” We hear about “burdensome government regulations” that “kill jobs” on a 24/7/365 basis. Government and democracy do not have an advertising budget to counter this relentless propaganda.

Government is underfunded because the propaganda elects corporate-backed anti-government politicians who convince people to allow tax cuts (on the corporations and their owners) paid for by cutting back on government. And especially cutting back on government regulation and enforcement. The result is government enforcement is backing down all the time.

Industry executives revolve through the door into government and then back into plush corporate offices where they collect rewards for protecting their industries. Our “captured” government notoriously refuses to bring corporate criminals to justice. Not one banker, for example, was prosecuted for obvious crimes leading to the 2008 financial crash.

However last week we saw one rare instance of a prosecution of individuals for corporate crime. The people running Peanut Corporation of America, a Georgia peanut company, were prosecuted after a salmonella outbreak that sickened and hospitalized hundreds of people and killed 9 of them. Company executives knew for years their product was made in unsafe ways that were causing contamination — but instead of spending what was needed to fix the problem they covered this up. So the owner was sentenced to 28 years in prison and other executives were sentenced to 20 years.

Thanks to an actual prosecution resulting in prison terms for company executives it is likely that the public will suffer fewer food-safety problems, at least for a while.

Our government supposedly exists to protect We the People from wealthy and powerful interests, including other countries. Our revolution against the wealthy British aristocracy and the King’s corporations testify to this. A government that is “of the people, by the people and for the people” should be big enough, strong enough and funded enough to reign in companies and billionaires, and protect We the People from the kind of corporate misbehavior we saw from Volkswagen — long, long, long before it involves 11 million cars all spewing out serious threats to public health.


This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary and/or for the Progress Breakfast.

“Spreadsheet Error” Economists Blame “The Left” Not “Science”

In an op-ed in the NY Times today the “spreadsheet error” economists tell us all we need to know about their research and their conclusions. In the op-ed, Reinhart and Rogoff: Responding to Our Critics, skip to the last paragraph:

“Now we are being attacked by the left — primarily by those who have a view that the risks of higher public debt should not be part of the policy conversation. “

“The left?”

I think these two words tell the whole story. All the economists and other scholars who are criticizing the errors and selective use of favorable data in work represent “the left.” Actual science that looks at the real world to see what actually happens is “the left.”

Downward Spiral

Here is the situation:

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The Benghazi Cover-Up

There has been a ‘massive cover-up’ on Benghazi.

What are they covering up? We don’t know because it has been covered up.

How do we know it has been covered up? Because there is no evidence whatsoever that anyone, anywhere, did anything wrong! Obviously that means there has been a massive cover-up!!!!!

So obviously this is bigger than Watergate. This is bigger than all of the Clinton murders. This is bigger than 9/11.

More On Romney & Bain’s SEC Filing — Was It Fraud?

In Bain’s SEC Filings I wrote, “Key point: those SEC forms reassure Bain partners that Romney WAS running things after 1999. Tons of $$ involved. If he wasn’t that’s fraud.” On Sunday’s Up With Chris Hayes a former Bain partner seems to have confirmed my theory.
In 1999 Mitt Romney left Bain Capital to run the Olympics. But SEC filings and many other documents have turned up that claim Romney was still running Bain. This matters because after stories started to circulate that Bain was heavily involved in offshoring jobs to China, Romney has been insisting that he wasn’t there when Bain was doing the offshoring. (Never mind that he never asked them to stop doing that…)
My thinking is that the partners at Bain Capital insisted on maintaining the appearance that Romney at the helm to reassure their partners — investors, banks and buyout targets — that they were stable after Romney left when really they were not. They trusted Mitt and maybe there was a big danger of them pulling out of deals if they thought Mitt was not coming back. If Romney wasn’t there and they were assuring these companies that he was (and Romney insists he wasn’t there), that’s fraud (and conspiracy, with Romney signing the forms), never mind false signing of SEC forms. Fraud by Bain and fraud by Romney. And big money was on the line, so there was a lot of motive there.
As I wrote the other day, I interviewed Bain partner Ed Conard on the Fairness Radio program on May 16. I was pinning him down on how much risk Bain was taking to justify the huge returns they received, and he started talking about how their reputation is what holds all their partners to Bain. I wrote about this here, including links to the audio.
Then on Chris Hayes’ show this last Sunday Conard was on, and said quite a few things that I think might confirm what I was thinking. If you look at this as Romney suddenly leaving the firm to take on the Olympics job, which Conard talks about, and the firm scrambling to figure out what to do about this sudden departure which has left all the bankers, investors and buyout targets hanging, and the firm trying to reassure them things were stable, you see what I am talking about. Conard talked a few times on Hayes’ show about Romney’s “franchise value.” In other words, he means those partner companies wanted to see the name Romney at the helm of the firm.
So you see the motive for the double answers here — that he was and he wasn’t. The firm’s partners had a huge financial motive at the time to tell people Romney was there, and Romney went along with that ruse by signing things, and now Romney has a big motive to explain that he wasn’t really there. He’s calculating that public anger over offshoring (see Bain “Offshoring” Is A Big Deal Because Voters Want American Manufacturing) is a greater risk to him than people figuring out that he and Bain were committing fraud ten years ago.
Also by the way the fact that the firm didn’t put someone else at the helm, and as they say were running it with some kind of council of the firm partners, also tends to confirm what I suspect. If they officially put someone else in charge the people they were doing business with would learn that Romney (with all his “franchise value”) was not there running things. So the big question “so who was running Bain after Romney left?” really is the question, and they were hiding the fact that Romney had left, because various people they were doing business with might have pulled out.
Once again, if I am correct this was a fraud on those investors, banks and buyout targets. The statute of limitations has run out on this, but there is conspiracy, and there is Romney’s campaign still.
Here is Ed Conard on Up With Chris Hayes. With the above in mind, watch Ed Conard explain things, and tell me this doesn’t appear to confirm what I think is/was going on.

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Tobacco Companies Covered Up Radiation Risk

A recurring question in today’s economy that rewards con artists and psycopaths: ” Why aren’t they in jail?” Torturers, banksters, fraudsters (ratings agencies), bribers, professional climate deniers, and of course tobacco executives. Tobacco is still killing over 400,000 Americans every single year. Remind me, HOW many were killed by al Queda?
Today’s news, tobacco companies knew since 1959 that there was concentrated radiation in the smoke, increasing the liklihood of cancer, could have taken it out but the process would have made it less addictive.
See Tobacco Companies Hid Evidence of Radiation in Cigarettes for Decades – ABC News.

Social Justice: AT&T Plows Over Tenants’ Rights to save their iPhone Business in Silicon Valley

Silicon Valley’s crown jewel, Palo Alto just got mowed down last evening by AT&T. To be specific AT&T effectively tied the hands of many of the City policymakers, and then plowed through the City Council and over 35 residents leaving their bodies scattered on the sidewalks in their wake. Using the big stick approach, they bullied and threatened action in the Federal court system if their addendum to their existing site permit was not approved; and the Council caved to the mighty sword sacrificing many of their downtown rental residents. Most troubling is that with these actions of passing this addendum for the mounting of two AT&T antennas on this residential building, this City Council may have set a precedent to severely limit tenants’ rights going forward in this particular city and longer term in the state. Commercial building owners may now have enlarged rights that grant them the ability to railroad their tenants with whatever side businesses they choose. If this decision by Palo Alto holds, California may be able to rewrite the Civil Codes that govern the rights granted to landlords by allowiing them to enter the premises far beyond the scope of maintenance and/or emergency. You see the only way to get to this balcony is by gaining access through the bedrooms of the residents.
Effectively this City Council has opened a hornet’s nest that may continue to sting them as this decision raises questions of social justice for over 40% of the City’s residents, of which over 70% are management or other professionals in the tech industry. We all know that we live in a society that is fraught with corporate collusion, fraud and bad behavior. Yet it is troubling to see this kind of reprehensible behavior in our own backyard without tacit consideration for the privacy, health and/or safety of the rental residents. Palo Alto is a city that is full of bright entrepreneurs willing to risk it all to create technologies that can change the world. Sadly, none of them signed up to give away their rights. Who would have thought that liberal Palo Alto, the place of big dreams, would sink to this level! Most importantly, what is to prevent other such activities that suggest some degree of collusion between the private and public sectors? Not much with this precedent setting action, huh? Will Palo Alto become a city that only protects their landed gentry? With this decision, they are certainly well on their way to solely protecting property owners over the serfs that rent.
Taking this further, can building owners throughout the City now run either brothels or daycare centers while residents are working during the day or evening? After all given this recently enacted City precedent – building owners now have the right to discount the objections of their tenants to cut whatever side deal that want. This means that building owners can engage in mixed use and side deals regardless of the vocal protests of their tenants. As outrageous as this may seem, this is the box that has been pried open with last evening’s decision and it may prove to a gift that keeps on giving. The young, the bright and the able may now choose to take their start-ups elsewhere and be treated far better in the short and longer term. Maybe there were bigger reasons that Facebook, the symbol of all that is good in Palo Alto, has chosen to jump ship and move to a neighboring city.
Note: This post will appear in other blogs.

Against All Odds: Save the Middle Class and the American Dream

The American Dream is what is at stake for the Obama Administration, and they know it. This is the dirty, little secret that can longer be contained — it is escalating, cannot remain hidden, and may have significant political ramifications for the 2010 elections. The atrocity of the past years is this broken promise with the people, and it is deeply affecting the way they think, behave, vote and live. Moreover, it could begin to explain the groundswell response to candidate Barack Obama in 2008. The power of his words helped them believe that the dream was recoverable. He exemplified what was possible through education and hard work in his meteoric rise through American politics to the Oval Office. Further and more importantly, it also explains why we are now suffering such profound political despair reflected in the dropping poll numbers.
The middle class, for its survival, needs life to return to a semblance of “normalcy” – a time when they didn’t know how to spell the word “deficit” and didn’t have to care. They want their retirement savings back so they don’t have to work until they drop. They want a bank account that makes more then one percent interest. They want to know what their health insurance premiums will be this year and in ten. They want to know if their kids study, and if they save and sacrifice, that their lives will be better. They want their kids to get good jobs, and they want to hold onto our own jobs. And with despair and anger they realize that despite the heroic work of the Congress with this President in passing landmark legislation in all of these areas — they still are not safe. Economic ruin may still be right around the corner, and makes it hard to sleep at night.
You know we’ve all been hoodwinked and sold a bill of goods about the sanctity of the middle class in this country. It is a basic tenet of our lives, and made us different from other countries. The ranks swelled over the last decades after FDR to the present. But now for the first time since the Great Depression, the middle class is at risk of tipping over once and for all. They are not coming out of the financial, housing and environmental crises intact. Interest rates have ratcheted up on the family home, maybe there’s a balloon payment on the mortgage and its impossible to refinance under the “new” programs; savings have virtually no interest and are drying up; pensions have evaporated; health insurance premiums are basically unaffordable until 2014 if then; schools are overcrowded and on the decline; there are no jobs except in China and they don’t speak Mandarin; and unemployment is still at 9.5% — higher in key areas throughout the country. The new legislation is riddled with loopholes, as all legislation can be after laborious compromises and extensive details. What is different is that each of these loopholes is flagrantly being exploited by the banks, the credit card companies and the health insurance companies. For example, many of the unemployed cannot qualify for COBRA because their companies failed which is code for closed their doors. COBRA is not available when a company terminates their health insurance plan, and 2014 is a long way off when you need health insurance coverage now.
Frankly, this is not what the middle class signed up for. It was not part of the implicit promise made to them. As a result, they are angry (enter stage right the Tea Party to exploit this vulnerability), and depressed (evidenced in the lackluster June election voter turnout). This is a deadly combination that could seal the deal on the November elections for the big, bad guys. Yet somehow the middle class and its Democrats must rally again and rise above the collective depression (no pun intended). We cannot let the brilliant and effective message machine of the Republican Party lull them into universal amnesia — forgetting all the wrongs of the past. Remember these are the same guys (Bush and Cheney) that put the nails in the coffin cementing the potential extermination of the middle class. These same guys two weeks ago even blocked the extension of unemployment benefits while they frolicked on vacation. How could they do that to working families in this country? The extension passed the House before the break, but was filibustered in the Senate. And given all that, imagine life when we essentially give away the House because we are too depressed to vote or disorganized to keep these seats.
I will take liberal Speaker Nancy Pelosi any day over anti-choice, sanctimonious Republican Representative John Boehner as Speaker of the House. That would be a bad dream that just keeps on giving. This threat should be enough for the White House to saddle up and come out with a plan, a message (remember “hope and change”), and leadership to deliver – not the White House Press Secretary Gibbs message yesterday. David Gregory of Meet the Press has gotten so very good and Gibbs just walked into a fiasco announcing the potential lose of seats in the House. It was as bad as giving away candy instead of feeding the homeless, and maybe that’s why White House Special Advisor, David Axelrod, was so snarky with CNN’s Candy Crowley during the next hour on the Sunday morning political shows because it sure didn’t make any sense.
Snarky or not, we all know Obama and his team are awful busy with the economy, the oil spill and a few dozen Russian spies, but we need them to reach out to that disenfranchised middle class again, aka big voting block. After all, Obama is the master communicator and we know that he can do it because he has done it before to win in 2008. And now the stakes may even be higher. If we allow 40 seats in the House to go asunder and a few more in the US Senate — we can start waving bye-bye to the American Dream, the middle class, economic recovery, and maybe the Supreme Court for the next couple of decades.
Please see my Pearltree for some of the reference materials with more to come. This is a new tool to organize and share materials on the web. In full disclosure, I advise them as they build out the new features of this platform.
Middlle Class
Note, an earlier version of this article appeared this week on the Huffington Post.

Remember Tobacco?

Tobacco is still killing over 400,000 Americans each year.
Does anyone remember lawsuit by the US Government against tobacco companies, and the Justice department asked for a huge damages award? Then with their usual corruption the Bush administration set that aside and asked for only $10 billion? See Prosecutor Says Bush Appointees Interfered With Tobacco Case.
Well guess what?

The Obama administration asked the Supreme Court on Friday to allow the government to seek nearly $300 billion from the tobacco industry for a half-century of deception that “has cost the lives and damaged the health of untold millions of Americans.”

But the tobacco companies know that 5 of those Supreme Court justices are likely to dance with the once that got them there. They are now claiming it was all just “free speech”:

The companies also say the courts’ decision to brand their statements about smoking as fraudulent unfairly denied them their First Amendment rights to engage in the public-health debate about smoking.

My Main Beef With Obama

The first problem I have with President Obama stems from his refusal to uphold the rule of law and hold the Bush administration accountable for possible criminal activity. It doesn’t matter if we need to look forward, have big problems on the table, whatever. The first job of government is to uphold the rule of law, or the legitimacy of that government is undermined.
The conspiracy to invade Iraq needs to be investigated. If it is determined that these people lied, planted evidence, etc. in order to cause us to invade that country, this is the most serious crime imaginable. Enough people in this country and the world think this is a possibility that it undermines law and democracy not to look into this and see what we can find out.
Next move on to torture. This must be investigated, or else everyone will come to believe first that there are different standards in the law for people in power, and that it is the accepted policy of our country.
Now move on to the appearance of bribery, embezzlement, cronyism, favors to campaign contributors, selective prosecutions, no-bid contracts, improper political appointments, etc. These, if fond to have actually occurred, are all crimes. They are all supposed to be investigated and prosecuted. The rule of law demands that this is done. If they did these things and get away with it, then these things will happen again, with the bush administration as only a starting point next time.
President Obama’s failure to uphold the rule of law is inexcusable.