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Saturday, March 10, 2007

Peoples Gas files rate hike request - Increase would be first in 12 years; CUB vows scrutiny

Peoples Gas files rate hike request - Increase would be first in 12 years; CUB vows scrutiny
By Jon Van
Copyright © 2007, Chicago Tribune
Published March 9, 2007, 8:52 PM CST

Peoples Gas filed a rate increase request Friday with the Illinois Commerce Commission that the company estimated would raise residential gas bills, on average, as much as $120 a year for Chicago customers who heat their homes with natural gas.

The firm's parent, Integrys Energy Group Inc., also filed a rate increase for North Shore Gas customers that it estimated would amount to an average of as much as $60 a year for those customers who use gas to heat their homes.

The companies said last month that they would file for rate increases. Peoples President Desiree Rogers emphasized that it has been 12 years since the firm filed for an increase in the rates it charges to deliver natural gas.

"We have cut our costs during those 12 years, reducing staff and automating processes, to keep prices down," Rogers said. "But you can only cut so much."

The rate increase would raise about $102 million a year from Peoples customers and $6.5 million from North Shore customers.

Customer gas bills have been rising significantly in recent years because the price of natural gas has gone up, but charges for delivery have remained fixed, she said. Delivery charges amount to about 20 percent of a customer's bill on average. But delivery is where Peoples makes its money.

Though the ICC has authorized her company to earn somewhat more than 11 percent of its rate base investment, Rogers said actual results have been much below that. In 2006, the firm said it earned 4.2 percent on its rate base investment.

Energy conservation has played a role, she said.

In the last dozen years, Peoples customers have cut their consumption of natural gas by about 25 percent by insulating their homes, dialing down thermostats and other conservation measures.

"Using less gas is good," Rogers said. "We encourage that, but our fixed costs to deliver the gas don't change when people use less. We need a rate structure that will cover those fixed costs."

Consumer advocates vowed to closely examine the rate hike request and to oppose any increases that aren't economically justified.

"This is horrible timing," said Jim Chilsen, a spokesman for the Citizens Utility Board. "Illinois consumers are facing an energy crisis. Natural gas costs are climbing and electric bills are skyrocketing.

"Our experts will scrutinize this request and fight every penny that we don't think Peoples deserves. Just because there hasn't been an increase in the delivery rate for 12 years doesn't mean they automatically deserve to get an increase now."

Rogers said the increased funding will help to maintain the 4,000 miles of natural gas pipeline the company owns to deliver gas to about 815,000 customers.

For customers who don't heat their homes with gas but use it to heat water and for cooking, the company estimates that monthly bills on average would go up as much as $48 annually.

The ICC may take up to 11 months to hear testimony about the proposed rate hike, which Peoples said would likely take effect some time in early 2008.

jvan@tribune.com

City's 'skin' for Games? $500 million - But top official says only 'incompetents' could lose money

City's 'skin' for Games? $500 million - But top official says only 'incompetents' could lose money
By Gary Washburn and Philip Hersh
Copyright © 2007, Chicago Tribune
Published March 9, 2007, 11:22 PM CST

Chicago would be responsible for as much as $500 million if the 2016 Olympic Games operated in the red and other guarantees fell short, officials said Friday.

But Chicago 2016 Chairman Patrick Ryan insisted that no other host city has ever lost money in the Summer Games, and "we would have to be the first really incompetents to do that" if the reserves had to be tapped.

By a conservative estimate, the Games would generate a surplus of $525 million, Ryan said.

The risk of a money-losing Olympics would be "layered" under the plan proposed to meet the requirements of the United States Olympic Committee. The city could be required at two different points to come up with $250 million payments.

Exactly how City Hall would raise the money was somewhat hazy. Dana Levenson, the city's chief financial officer, said it would come from "cash on hand" and the proceeds of bond issues, but he did not elaborate on what funds would be used to pay off the borrowing.

Mayor Richard Daley for months had said that taxpayers would not be on the hook if Chicago wins the Games, but local officials amended that this week during a visit by a USOC evaluation team. An Olympic executive said that the city would have to have "skin in the game," a reference to cash backing in a worst-case scenario.

The city had been working to get "private market guarantees" as backing in case the Games operate in the red and only recently became aware of the requirement for public funds in reserve, Ryan said.

"You have to comply with what rules they establish, what they say it takes to win," he said. "Now we know it takes city skin in the game to win."

Defending Daley, a personal friend, Ryan said, "We think the mayor's statement stands that there won't be taxpayer money spent" because of the positive revenue projections.

Though Ryan said previous Summer Games enjoyed large surpluses, the figures he cited come from an author whose conclusions about the success of past Olympic Games can be questioned.

In his book, "The Economics of Staging the Olympics," Holger Preuss insists one can eliminate what he calls "investments" from the expense side on final balance sheets. That allows him to ascribe a $635 million surplus for the 1996 Atlanta Olympics, while the official Atlanta report calls its balance sheet a wash, with revenues and expenses of $1.72 billion.

Preuss goes so far as to contend that Montreal did not lose money on the 1976 Summer Games, something that most experts would dispute.

USOC Vice President Bob Ctvrtlik applauded the city's guarantee plan, saying it "substantially satisfies our requirements with respect to financial guarantees."

"This is a responsible, balanced approach reflecting commitments from both the private and public sectors, which we believe is critical for an internationally competitive bid," Ctvrtlik said in a statement.

Chicago and Los Angeles are vying for the right to be the U.S. candidate for 2016 in a contest that will be settled when the USOC selects a winner on April 14. The International Olympic Committee will make a final selection from a list of global competitors in 2009.

In what Ryan described as "a significant enhancement to our venue plan," the $78 million Olympics aquatics center would be built in Douglas Park on the impoverished West Side instead of the campus of the University of Illinois at Chicago as originally planned.

In the new location, it would be "more accessible to the community and much more available to the youth of that community," Ryan said.

The cost of the facility would be covered by $50 million from sale of air rights at the site of the planned Olympic Village near McCormick Place; $15 million from the Chicago Park District; and the remainder from the sale of naming rights.

Ctvrtlik said the USOC is "comfortable" with the change in location.

If a Chicago Olympics suffered an operating loss, the first pot of money to be tapped, an estimated $200 million, would come from two sources under the financing plan, officials said. They are skybox revenues at the major venues, including a new stadium planned for Washington Park, and money from the private developer of the Olympic Village.

Contributions from private donors in the years approaching the Games would add to the $200 million figure, Ryan said.

The city would be responsible for the next $250 million in potential losses. Third in line would be $250 million from private sources and other government entities. The city then would follow with another $250 million in reserve.

Quick action by the City Council is required to meet a March 31 USOC deadline. The council is expected to vote on the plan Wednesday.

Aldermen who emerged from private City Hall briefings on Friday generally liked what they heard, expressing confidence that the city's risk would be minimal and that the Games are worth pursuing despite the financial exposure.

"From what I saw, the structure looks sound," said Ald. Isaac Carothers (29th). "I think we should do all we can to bring this historic event to the city. [For] what it is going to do for the income of Chicago, it is well worth it."

Ald. Edward Burke (14th), chairman of the council's Finance Committee, was enthusiastic after his briefing, citing the impact on the city of the 1893 World's Columbian Exposition and the 1933-34 Century of Progress International Exposition.

"Believe it or not, in a six-month period 28 million people came to Chicago," Burke said of the Columbian Exposition. "It was the transforming event in Chicago's history.

"Likewise, in 1933 in the middle of the Depression, Chicago put on an exposition that was so successful it was held over for another year, and it was profitable," Burke said. "I think the potential of this 2016 Olympics to showcase Chicago and metropolitan Chicago and the state of Illinois is as important as it was in 1893 and 1933."

gwashburn@tribune.com

phersh@tribune.com

Fed warns of more subprime problems

Fed warns of more subprime problems
By Ben White in New York
Copyright The Financial Times Limited 2007
Published: March 9 2007 23:36 | Last updated: March 10 2007 01:07


Federal Reserve governor Susan Bies on Friday said problems in the subprime mortgage market could escalate, further unnerving investors, as shares in troubled lender New Century Financial continued to plummet.

At a risk management forum in Charlotte, North Carolina, Ms Bies said lenders were likely to see an increase in defaults involving borrowers who took out mortgages with low “teaser” interest rates, which jump to higher levels during the life of the loan.

“What’s happening is the front end of this wave of teaser-rate loans that are coming into full pricing,” said Ms Bies, who is retiring from the Fed. “So what we’re seeing in this narrow segment is the beginning of the wave – this is not the end, this is the beginning.” She added that, thus far, problems remain contained in the subprime sector.

The comments, reported by Bloomberg, came as shares in troubled mortgage lender New Century Financial fell another 17 per cent to $3.21 as analysts said the company would probably have to file for bankruptcy protection. Also on Friday, General Electric’s US home lending unit, WMC Mortgage, said it would cut back on loans and cut 460 jobs, or 20 per cent of its staff. Concerns about the subprime market helped limit US stocks to modest gains in spite of solid employment numbers.

New Century shares are off nearly 80 per cent since the lender disclosed last week that federal prosecutors were probing its accounting practices and trading in its shares. The mortgage group is negotiating with lenders to extend credit agreements and is not accepting new loan applications.

Andrew Wessel, analyst at JPMorgan, said the chances of New Century surviving were slim. “We believe it is likely that [the company] has essentially mortgaged its last unencumbered assets,” he said.

Morgan Stanley has extended $265m in new financing to New Century and taken over a $710m facility withdrawn by Citigroup. Morgan Stanley’s lending, like that extended by other banks, is secured by mortgage loans held by New Century. Banks that buy subprime loans from New Century to package and sell as securities also generally have the right to sell back the loans if they go into default. However, New Century may not be in a position to buy back bad loans.

International Herald Tribune Editorial - George Bush goes south

International Herald Tribune Editorial - George Bush goes south
Copyright by The International Herald Tribune
Published: March 9, 2007

President George W. Bush came to office six years ago pledging a "fundamental commitment" to Latin America.

Whether because events elsewhere distracted him or because he was incapable of concentrating on more than one or two foreign challenges at a time, Bush has failed to keep that promise. As he hops from Brazil to Uruguay to Colombia to Guatemala and finally to Mexico on his current Latin America tour, he is certain to hear well-founded complaints about the consequences of his inattention to the southern hemisphere.

Administration spokesmen have been denying that the president's trip is meant to counter the influence of the Venezuelan president, Hugo Chávez. But Bush's hosts know better.

If the president hopes for even modest success, he will have to alter his past approach to Latin America. Instead of harping on a militarized war on drugs or free-trade agreements that seem only to exacerbate poverty and disparities of wealth, Bush ought to heed the particular local needs of the countries he visits.

In Brazil, his first stop, he is likely to be told it is hypocritical of the United States to maintain a tariff of 54 cents per gallon on imported ethanol. Brazilian sugar-based ethanol is considerably cheaper to produce than U.S. corn-based ethanol, and so the U.S. tariff on imported ethanol amounts to a protectionist barrier for U.S. corn producers — exactly the sort of device American proponents of free trade commonly preach against.

If Bush wants to respond to Mexico's central concerns, he will take to heart complaints he is sure to hear from President Felipe Calderón about the U.S. failure to keep a promise to legalize undocumented Mexicans working in the United States. And Bush will also have to recognize that the United States cannot be considered a good neighbor if it builds a 700-mile wall along the Mexican border.

In Mexico as elsewhere in Latin America, the best way for Bush to begin rolling back the Chávez tide is by undoing some of the damage done during the past six years of

International Herald Tribune Editorial - Terrorism's victims

International Herald Tribune Editorial - Terrorism's victims
Copyright by The International Herald Tribune
Published: March 9, 2007


American law currently bars entry to the United States of some of terrorism's most abused victims: refugees who have been forced, often at gunpoint, to provide so-called material assistance.

Among those excluded by these provisions are a 13-year-old Ugandan girl taken away by the Lord's Resistance Army and forced to gather food and cook for her abductors, and a Sri Lankan fisherman kidnapped by Tamil Tiger rebels and forced to pay a ransom for his freedom.

Some who fought as irregulars alongside American troops in Indochina also now find themselves excluded because they have been wrongly classed as terrorists. Watching all that, Iraqis may well ask why they should now risk their lives in support of American policies if this is what they can expect if they ever have to seek refuge in the United States.

Just about everyone, including Bush administration officials, agrees that these rules need to be fixed. But the remedy that the Homeland Security Department has recently proposed — chiefly a promise of discretionary waivers — does not go nearly far enough. Unless the administration comes up with an acceptable solution soon, Congress will have to.

The problem begins with a sloppy definition of terrorism written into a 1990 immigration law. It was compounded after the 9/11 terrorist attacks by the Bush administration's overly aggressive and rigid interpretation of what constitutes material support for terrorism. Standard legal definitions of terrorism characterize it as planning or committing unlawful, violent acts aimed at killing, injuring, or intimidating innocent civilians. But the 1990 law defined it in a way that could encompass virtually any illegal civilian use of weapons — even to resist a violent dictatorship or to fight alongside American troops.

The Bush administration, using the Patriot Act and other tools, turned this into a much bigger problem by pumping up the number of groups — and individuals — officially labeled as terrorist and aggressively enforcing the concept of material support.

In response to complaints from both parties in Congress and from religious and human rights groups, the administration recently agreed to consider selective waivers of the material support ban. But the waivers would apply only if the groups doing the intimidating were not on any of the State Department's lists of terrorist organizations. That is a cruel and irrelevant distinction.

Duress is duress, no matter which group coerced the cooperation. In the name of keeping out terrorists, Washington should not slam the door on terrorism's victims

FBI admits abuse of Patriot Act

FBI admits abuse of Patriot Act
By Stephanie Kirchgaessner in Washington
Copyright The Financial Times Limited 2007
Published: March 9 2007 23:00 | Last updated: March 9 2007 23:00


The Bush administration misused its authority and improperly obtained personal information about people in the US on hundreds of occasions, according to a report released by a US Justice Department watchdog.

Robert Mueller, director of the Federal Bureau of Investigation, said he was to be held accountable for the abuses, which involved the improper use of so-called national security letters, which allowed the FBI to obtain personal information, including telephone, banking, and e-mail records.

“I am committed to ensuring that we correct these deficiencies,’’ Mr Mueller said, adding that he would not resign.

A report by Glenn Fine, inspector-general of the Justice Department, found that the FBI circumvented the legal restrictions on the use of the letters by obtaining telephone records from three unnamed telecommunications carriers without first getting required legal permission and that the FBI routinely sought out e-mail records improperly.

In one “possible violation” of the law detailed in the report, the inspector-general said the FBI issued a national security letter seeking education records from a North Carolina university in connection with the 2005 London Tube and bus bombings.

The report found that, in this case, the FBI sought records it was not authorised to demand under the law, including admissions applications, housing information, and campus health records.

In addition, the report found the FBI “significantly understated” the total number of letters it requested in half-yearly reports to Congress from 2003 to 2005. (FBI response)

Alberto Gonzales, attorney-general, said in a letter to the inspector-general that the problems raised in the report were “serious” and must be addressed immediately.

However, the national security letters were “vital investigative tools” to the US effort to “fight and win the war on terror”.

Mr Gonzales ordered the FBI’s inspection division to investigate the use of national security letters and said that – although there had been no allegation of misconduct by FBI lawyers – the office of professional responsibility would examine the role played by attorneys in the matter.

The inspector-general’s report comes at a difficult time for the Justice Department, which was under fire this week from lawmakers in Washington who are investigating the potential political motivation behind the recent firing of at least eight US attorneys.

The report drew angry reactions from lawmakers on Capitol Hill, including Senator Arlen Specter, the most powerful Republican on the judiciary committee.

Mr Specter said Congress had reauthorised the Patriot Act, which gave the government the authority to issue the letters, on the basis that the administration would be in strict compliance with the act’s limitations.

“The judiciary committee will now have to undertake comprehensive oversight on this important matter and perhaps act to limit the FBI’s power by revising the Patriot Act,” Mr Specter said.

China to invest its foreign currency reserves

China to invest its foreign currency reserves
By Jim Yardley and David Barboza
Copyright by The International Herald Tribune
Published: March 9, 2007

BEIJING: The Chinese government on Friday announced the formation of a new agency to oversee investment of China's $1 trillion in foreign currency reserves, representing a potent new force in international finance.

Finance Minister Jin Renqing offered no specifics about how much of the currency reserves would be made available to the investment agency. But analysts say the agency is expected to control one of the world's biggest investment funds, and one that could singlehandedly alter the value of many assets.

The government said one model for the agency was Temasek Holdings, the Singapore government's successful investment agency, which manages an $84 billion global portfolio of investments.

China already has the world's largest foreign exchange holdings, and they are growing rapidly because of the country's huge trade surpluses. Most of the reserves China now accumulates are conservatively invested in U.S. Treasury bonds and other government securities, which earn little return for China yet help to keep interest rates in the United States and other countries low.

But the investment agency being established will allow China to diversify its foreign exchange holdings. Analysts say the agency could deploy hundreds of billions of dollars to acquire financial or strategic assets around the world, particularly in
"They're not going to be looking for financial assets, but energy assets and natural resources, minerals — things China desperately needs," said Jing Ulrich of J.P. Morgan.

China's currency-exchange reserves are now held by its central bank, the People's Bank of China, and most of the reserves are expected to continue to be held there, in safe, conservative investments in government securities.

But a large sum of money is expected to be shifted to the new agency or investment group, which could aggressively invest it for higher returns. Some of the money could even possibly be used to acquire stocks, corporate bonds or real estate holdings in other parts of the world.

Some financial experts are already talking about the huge potential impact of China's emergence as a major global investor, and how that could push asset prices higher and create even more competition for scarce resources.

But Jin, the finance minister, suggested that the new investment agency would not simply be allowed to speculate.

"The biggest priority is safety, and under the principle of security we will try to will try to increase the efficiency of management and the investments' returns," Jin said at his news conference during the two-week meeting of the National People's Congress, the country's largely ceremonial national legislature.

The decision to form the new agency has been rumored for months, and Prime Minister Wen Jiabao said in January that the government was exploring new ideas about investing the currency reserves.

Andy Rothman, a strategist at CLSA Asia-Pacific Markets, said the government would probably be extremely conservative in how it invested and would initially use only a small fraction of its overall reserves.

Rothman said, "I think they'll be very conservative at the beginning and probably give them about $20 billion at the beginning."

"It's not all of a sudden going to change the world," he added.

"I think they are going to move very, very slowly to diversify what they are doing. Nobody should expect that suddenly they are going to invest $1 trillion."

Some analysts say the formation of the new agency means that Beijing is moving away from heavy reliance on investing in dollars through U.S. Treasury securities, and that could affect interest rates in the United States, which are being kept down by China's huge purchases.

But foreign exchange reserves are accumulating so quickly in China, at more than $20 billion a month, analysts say, that it's possible that for the time being the agency would be operating with only a small portion of the money now accumulating.

China's foreign exchange holdings are just one of the latest signs of the country's spectacular rise — and of its growing influence in the global economy and financial markets.

With that growth have come rising costs for education, health care and pension funds. Making a better return on government holdings, analysts say, will allow the government to cope with some of these problems.

Rothman said the formation of the new investment agency should be viewed in the context of other new government measures, like the recent efforts to pass a private property law and a law to equalize corporate taxes. He said China was trying to create the legal and regulatory structure to underpin its still-evolving market economy.

in, the finance minister, said the new agency would answer directly to the State Council, the equivalent of China's cabinet.

David Barboza reported from Shanghai.

Friday, March 09, 2007

Test Positive Aware Network Offers New Oral, Rapid HIV Testing

Contact:
Rhett Lindsay
Special Events Coordinator
Test Positive Aware Network
Phone: (773) 989-9400
E-mail: r.lindsay@tpan.com



Test Positive Aware Network Offers New Oral, Rapid HIV Testing

As part of Test Positive Aware Network’s (TPAN) newly funded HIV Prevention Programs, TPAN is proud to announce expanded testing hours using the OraQuick Rapid HIV Oral Test. In 20 minutes, a person can learn their HIV results, without the discomfort of drawing blood.

TPAN’s HIV testing hours:

Mondays 2-8
Tuesdays 10-4
Wednesdays 10-4
Thursdays 2-8
Fridays 10-3
Other times by appointment

To make an appointment and for more information about TPAN’s rapid, oral HIV testing, please call TPAN’s Prevention Coordinator Nick Branock at (773) 989-9400.


About Test Positive Aware

Test Positive Aware Network (TPAN) is one of Chicago’s longest standing HIV/AIDS service providing agencies. TPAN provides peer-led treatment education, support services, information dissemination and advocacy to empower people living with HIV/AIDS. TPAN also provides free, rapid, anonymous, oral HIV testing, prevention education services and a needle exchange program in an effort to reduce the spread of HIV/AIDS. TPAN proudly produces the only non-profit, national, HIV treatment publication Positively Aware and Positively Aware en Espanol. TPAN is a local Chicago agency making a difference nationally.

# # #

EXERCISE FOR OLDER ADULTS

Begin by standing on a comfortable surface, where you have plenty of room at each side. With a 5-lb potato sack in each hand, extend your arms straight out from your sides and hold them there as long as you can. Try to reach a full minute, and then relax. Each day, you'll find that you can hold this position for just a bit longer.

After a couple of weeks, move up to 10-lb potato sacks. Then try 50-lb potato sacks and then eventually try to get to
where you can lift a 100-lb potato sack in each hand and hold your arms straight for more than a full minute. (I'm at this level)

After you feel confident at that level, put a potato in each of the sacks.

Betraying the truth betrays the troops

Betraying the truth betrays the troops
BY ANDREW GREELEY
Copyright by The Chicago Sun-Times
March 9, 2007

I see by the papers that Senators Barack Obama and John McCain have been "dinged" by the "researchers" (mud collectors and mud throwers) because they have asserted that lives and money have been "wasted" in Iraq. How dare they say that the lives of "our troops" were wasted? Have they no respect for the feelings of the survivors of "our troops''? Must one maintain the illusion that these brave men and women died for something important, like American freedom or democracy or to prevent another World Trade Center attack?

The truth is that they died because of loyalty to the armed services and to their duty. That ought to be enough. One ought not to pretend that the war was waged for any other reason than that the president, the vice president, the secretary of defense and their coterie of neoconservative intellectuals wanted a war and exaggerated intelligence data to justify it.

The administration talks endlessly about loyalty to our troops and the duty of all Americans to support them. In fact, once they had the congressional resolution justifying the war, they showed precious little concern for the troops. They did not send enough troops to ensure immediate victory, nor did they train them for the kind of war they would have to fight. It was supposed to be over in a couple of weeks. You could win with substantial numbers of reserve and National Guard personnel, weekend soldiers who were yanked away from their families and jobs and sent off to war.

They did not equip the troops with adequate body armor or adequate vehicle armor. They did not devise a way to protect the troops from roadside bombs. They played games with their paychecks. They deployed and redeployed and then redeployed again, like they were yo-yos without any concern for their personal and familial stress. They assigned them to duty in prisons like Abu Ghraib for which they were totally unqualified.

And Donald Rumsfeld delivered himself of the brilliant military dictum, "stuff happens." And remarked that ''you don't fight the war you want to fight but the war you have to fight.''

Then, when the troops died in substantial numbers, they forbade pictures of flag-draped coffins being unloaded by the score from transport planes. They boasted of great progress and then redeployed troops again beyond human endurance.

As the casualties mounted, the president mouthed meaningless cliches like, "Iraq is hard." Hard on whom, one wonders? On himself or the vice president? On Secretary Rumsfeld or Secretary Condoleezza Rice or on the wives and children, the mothers and fathers, the sweethearts and the friends of those who died in a foolish war that has been bungled at every deeper step into the Big Muddy? Hard on the men and women whose lives will be forever blighted by unnecessary deaths? But those of us who wanted all along to remove them from harm's way are accused of not supporting the troopswhen the leaders who sent them into this military miasma clearly don't give a hoot about them, save as a political talking point.

Now we have the revelations of how the returning troops are treated at Building 18 in the Walter Reed Hospital complex, the inadequate treatment at most VA hospitals around the country, and the cover-up of statistics about brain injuries and post-traumatic stress disorder. The returning troops, it would seem, were relegated to a status similar to victims of Hurricane Katrina.

To those of you preparing to write your usual letters telling me I am a traitor for not caring about the troops, I reply that you betrayed them by your silence about the intolerable expenditure of American blood and money (some of which might have gone to VA hospitals) so that President Bush could play-act at the role of a wartime president. And he wasn't even the kind of wartime president who would tour the hospitals or appoint men to make sure the hospitals were decent places to come alive again.

In an administration where spin, doublethink and lies have replaced the truth, why is anyone surprised about mistreatment of injured troops? Why do we still think that the buck stops in the Oval Office as it did in Harry Truman's day?

Iraq: the patriotically correct version

Iraq: the patriotically correct version
By Jacob Weisberg
Copyright The Financial Times Limited 2007
Published: March 7 2007 19:32 | Last updated: March 7 2007 19:32
When it comes to Iraq, there are two kinds of candidate. The disciplined ones, such as Hillary Clinton, carefully avoid acknowledging reality. The more candid, such as John McCain and Barack Obama, sometimes blurt out the truth, but then quickly apologise.

For many US presidential aspirants, the first unspeakable truth is simply that the war was a mistake. The current focus is on Mrs Clinton’s obstinate refusal to acknowledge that voting to give President George W. Bush the power to invade Iraq was the wrong thing to do. Although fellow Democratic candidates John Edwards and Christopher Dodd have managed to express that they erred in voting for the 2002 war resolution, Mrs Clinton, along with Joe Biden and the full roster of Republican candidates, refuses to disgorge the M-word. Perhaps most absurdly, the senator Chuck Hagel, a possible Republican presidential candidate, has called Bush’s 21,500-troop “surge” the biggest blunder since Vietnam, without ever stating that the war itself was the larger blunder and that he favoured it.

Reasons for failing to admit that the war itself was a mistake are surprisingly alike across party lines. It is seldom easy to admit you were wrong – so let me repeat that I am sorry to have given even qualified support to the war. But what is awkward for columnists is nearly impossible for self-justifying politicians, who resist facing up to their mistakes at a glandular level. Specific calculations help to explain their individual positions. Mrs Clinton, for instance, clearly worries that confessing her failure will make it easier for Mr Obama and other consistent opponents of the war to savage her in the primaries. But at bottom, the impulse is the same across party lines. Politicians are stubborn and fear that an admission of error will be cast as flip-flopping and inconsistency.

A second truth universally unacknowledged is that Americans returning in flag-draped coffins or grotesquely maimed, and then treated like whining freeloaders at military hospitals, are victims as much as “heroes”. John Kerry was the first to violate this taboo when he was still a potential candidate last year. Mr Kerry told a group of California college students that those who fail in school end up in Iraq. A variety of conservative goons instantly denounced Mr Kerry for disrespecting the troops. An advanced sufferer from senatorial infallibility syndrome, Mr Kerry resisted apologising for his comment, but eventually regretted what he called a “botched joke” about Mr Bush.

Lost in the debate about whether Mr Kerry meant what came out of his mouth was the fact that what he said was largely true. Americans who attend college and have good employment options after graduation are unlikely to sign up for tours of the Sunni Triangle. People join the military for a variety of reasons, of course, but since the Iraq war turned ugly, the all-volunteer army has been lowering educational standards, raising enlistment bonuses and looking past criminal records. The lack of better choices is a larger and larger factor in the choice of military service. Our troops in Iraq may not see themselves as victims of political misjudgments, but they are.

Reality number three, closely related to number two and following directly from number one, is that the American lives lost in Iraq have been wasted. Mr Obama transgressed this boundary when he declared at a rally: “We ended up launching a war that should have never been authorised and should have never been waged and . . . have seen over 3,000 lives of the bravest young Americans wasted.” Mr Obama immediately said he had misspoken and apologised to military families. Mr McCain, too, used the term “wasted” when he announced his candidacy on a television talk show last week and promptly ate his words. The patriotically correct term for dying or losing parts of your body in a pointless war in Mesopotamia is, of course, “sacrifice”.

A fourth and final near-certainty, which is in some ways the hardest for politicians to admit, is that America is losing or has already lost the Iraq war. The US is the strongest nation in the history of the world and does not think of itself as coming in second in any two-way contest. When it does so, it is slow to face up to being beaten. American political and military leaders were reluctant to acknowledge or utter that they had miscalculated and wasted tens of thousands of lives in Vietnam, many after failure was assured. Even today, American politicians tend not to describe Vietnam as a straightforward defeat (although they will often admit that it was a mistake). Something similar is happening in Iraq, where the most that our leaders will say is that we risk losing and must not do so.

Democrats avoid the truth about the tragedy in Iraq for fear of being labelled unpatriotic or unsupportive of the troops. Republicans avoid it for fear of being blamed for the disaster or losing their defence and patriotism cards to play against Democrats. Politicians on both sides believe that acknowledging the unpleasant truths will weaken them and undermine those still attempting to persevere on our behalf. But nations and individuals do not grow weaker by confronting the truth. They grow weaker by avoiding it and coming to believe their own evasions.

The writer is editor of Slate.com

THE BUSH DOCTRINE - First strike - Candidates ought to be clear about their position on pre-emptive war

THE BUSH DOCTRINE - First strike - Candidates ought to be clear about their position on pre-emptive war
By Robert Schmuhl. Robert Schmuhl is Annenberg-Joyce Professor of American Studies and Journalism at the University of Notre Dame and author of "In So Many Words: Arguments and Adventures."
Copyright © 2007, Chicago Tribune
Published March 4, 2007

As rhetorical firefights over Iraq keep breaking out among the 2008 presidential candidates, the controversial policy that produced the war seems strangely distant from the campaign battlefield.

The Bush Doctrine, formulated after the Sept. 11 terror attacks, endorsed pre-emptive war as an option for dealing with potential enemies. But the past four years in Iraq have been a case study of the unintended consequences of the doctrine's aggressive approach.

Rather than sniping at each other about past statements or votes on Iraq, presidential candidates--Democratic and Republican alike--should be taking a stand on the policy of pre-emption. Will the nation's next president adopt a strike-first strategy?

The Bush Doctrine shifted American foreign policy from its Cold War emphasis on containment and deterrence to a more activist, assertive approach. Domestically, the new stance seemed a tough-minded response to terrorist threats. Internationally, U.S. strategy was perceived as superpower saber rattling with dangerous and unforeseen implications.

Previous presidents have acted pre-emptively. Lyndon Johnson did so in the Dominican Republic in 1965, Ronald Reagan in Grenada in 1983. But the Bush Doctrine is different in its unprecedented threat of military action and its procedural merging of pre-emptive and preventive war into indistinguishable activities.

Although documents articulating the administration's approach--notably "National Security Strategy" reports from 2002 and 2006--emphasize self-defense and a need to be pro-active when potential peril looms, the policy's execution is less precise and more problematic.

But the inability to find weapons of mass destruction in Iraq or direct involvement between Al Qaeda and Saddam Hussein--the stated reasons for going to war--weakens its rationale and undercuts the policy triggering it.

Iraq, from what we know now, is less an example of pre-emptive war--one based on incontrovertible evidence of an imminent attack--than of a preventive war, or one initiated on grounds that conflict is inevitable but not imminent.

This is an important distinction. The Bush Doctrine focuses on pre-emption without dealing with the more bellicose concept of preventive war.

Given all that has happened since 2003, candidates seeking the White House next year need to look beyond the Iraq imbroglio and debate the larger policy that led to America's entanglement there.

Here, the thinking of former presidents can be instructive, though a time when terror is such a threat is vastly different from earlier eras of conflict.


`Make war at pleasure'

As a member of the House of Representatives in 1848, Abraham Lincoln opposed pre-emptive strikes in the Mexican War because it allowed a president to act like a king and "to make war at pleasure." Later, in his first inaugural address in 1861, Lincoln spoke directly to Southern secessionists about "the momentous issue of civil war," saying, "The Government will not assail you. You can have no conflict without being yourselves the aggressors."

Nearly a century later, Dwight Eisenhower said in 1954 that modern weaponry made him, as a former military commander, dubious about any strike-first approach.

"A preventive war, to my mind, is an impossibility today," Eisenhower said. "How could you have one if one of its features would be several cities lying in ruins, several cities where many, many thousands of people would be dead and injured and mangled? . . . That isn't preventive war; that is war. I don't believe there is such a thing; and, frankly, I wouldn't even listen to anyone seriously [who] came in and talked about such a thing."

Eisenhower's successor, John F. Kennedy, was more emphatic. Speaking in 1963 at American University, Kennedy said the United States, "as the world knows, will never start a war."

With Iraq, the world now knows otherwise in no uncertain terms, and the consequences are troubling. In late January, the BBC World Service released results of a 25-country, 26,000-person survey. In 17 countries, a majority of those polled held a mainly negative view of U.S. influence, with Germany, France, Australia and Great Britain among the most critical.

As long as a strike-first policy is central to security strategy and execution, world leaders will respond in ways Americans find disturbing or dangerous. It's not surprising that Iran and North Korea allegedly have been seeking nuclear weapons when the only other member of the president's "axis of evil"--Iraq--was on the receiving end of a U.S. attack. American policy is a spark in this new arms race.

Is it any wonder Russian President Vladimir Putin threw rhetorical punches at the U.S. in his speech last month at the Munich Conference on Security Policy? Saying America "has overstepped its national borders in every way," Putin was, according to Russian media analysis, warning the 2008 presidential candidates that continuation of the Bush Doctrine could lead to more profound global crises.

While Putin grasped the broader issue, candidates are doing the opposite. By focusing so directly on Iraq and whether voting for congressional authorization of military action was right or wrong, White House hopefuls seem fixated on one tree rather than the more significant forest.


Jousting among Democrats

Especially on the Democratic side, with a fervent anti-war base crucial for nominating support, candidates keep jousting over prewar judgments and what they currently support.

Joseph Biden, Christopher Dodd and John Edwards have called their Senate votes authorizing the administration's use of force a mistake, while Barack Obama, Dennis Kucinich and Bill Richardson opposed the war, to varying degrees, from the beginning.

This leaves Hillary Rodham Clinton conspicuous among Democratic candidates in having voted for the Senate war resolution while being adamant about not apologizing for her vote or acknowledging it as a mistake. In fact, she told a New Hampshire audience recently, "If the most important thing to any of you is choosing someone who did not cast that vote or has said his vote was a mistake, then there are others to choose from."

Hers is a deliberate posture to avoid the label of an irresolute mind-changer. But the speech she delivered on the Senate floor Oct. 10, 2002, the day before the vote, is a nuanced argument of hopes and hedges.

After 26 paragraphs of history and context leading up to what she called "probably the hardest decision I have ever had to make," Clinton said: "Because bipartisan support for this resolution makes success in the United Nations more likely, and therefore, war less likely, and because a good faith effort by the United States, even if it fails, will bring more allies and legitimacy to our cause, I have concluded, after careful and serious consideration, that a vote for the resolution best serves the security of our nation."

Her vote, to a certain extent, was a bet with the Bush administration. It is now evident she lost that bet. However, near the end of her remarks she broadens her scope, taking direct aim at the Bush Doctrine. "My vote," she said, "is not, however, a vote for any new doctrine of pre-emption, or for unilateralism, or for the arrogance of American power or purpose--all of which carry grave dangers for our nation, for the rule of international law and for the peace and security of people throughout the world."

As the 2008 campaign intensifies, with televised debates and town-hall meetings multiplying, candidates have an obligation to tell the electorate more than their views, past and present, on Iraq. If pre-emptive or preventive war continues as the doctrine of the next president, voters--and the wider world community--should know whether another Iraq might loom on America's horizon.

Refocus on immigration

Refocus on immigration
By Juan Rangel
Copyright © 2007, Chicago Tribune
Published March 9, 2007

Last year, I joined hundreds of thousands of Hispanic immigrants who marched in cities across the country under the generic banner of "immigration reform." However, their faces told a more profound story: America's newest immigrants also yearn for America's promise.

Unfortunately, today's immigration debate has been led--or better, misled--by extremists on both sides of the political spectrum. Immigrants are depicted as vulnerable victims who suffer from American greed and abuse, or as foreign opportunists who demand and take America's generosity and benefits, but refuse to commit to her future.

Both sides have it wrong.

Immigrants, legal or not, seek a shot at economic prosperity--they always have. And today's illegal immigrants, mostly Mexican, are no different.

They replenish America's workforce with an unparalleled work ethic. They follow job opportunity to every corner of the United States, whether it's Chicago's factories, Nebraska's farmland, Los Angeles' restaurants, New York's hotels or even New Orleans' rebuilding effort. No job is ever considered too low--it's the next step up.

They breathe life into our economy with entrepreneurial vigor, building thriving businesses in every community they live in. As consumers, their brand loyalty and growing purchasing power have big business catering to their every want and need.

They rejuvenate aging neighborhoods by purchasing homes at a record pace. They repopulate great American cities that have lost families to suburbia. They celebrate traditional family and religious values and are optimistic about their economic future.

Like their European predecessors, their optimism leads them to embrace assimilation.

In myriad ways, they live and bolster the classic American dream: get better jobs, buy bigger homes, drive the newest sport-utility vehicles and watch satellite TV. What a country! What a people!

Yet, if their faces told this story at those massive marches last year, their hopeful voices have been drowned out by the angry rhetoric from leftist activists who have taken up the immigrant cause.

Worse, the left has taken a topic that most Americans, including a Republican president, can build consensus on and have turned it into a wedge issue that divides even the most centrist of middle America.

What has emerged are the demands for rights, charges of American discrimination and the ever-vague "fight for justice." The inspiring story of immigrant aspirations has morphed into the usual chant for entitlements and social services.

The left seized the moment with nationalist displays of Mexican flag waving, protesting teenagers staging school walkouts and foreign music stars bastardizing our national anthem in Spanish. Could the claim of "reconquering our stolen land for Aztlan" be far behind?

White liberals, who thrive on minority "struggles," create symbolic victims who seek sanctuary, while the newest "poverty pimps" demand government/philanthropic funds for a newfound constituency.

Not to be outdone, the extreme Republican right, which in essence has been organized and motivated by the left, espouses its equally hollow rhetoric, seducing the pragmatic center into this melee.

The "minutemen," a small inconsequential volunteer border group, demands the erection of a useless wall along our southern border to stop this "invasion." Local officials have turned their police into quasi-immigration agents. Others contemplate denying education services to undocumented children. Fearing a Spanish version of French Canada, English-only laws are being proposed across the U.S. Alarmists demand the immediate deportation of the "12 million criminals," disregarding its impact to our economy, or more simply, its logistical impracticality.

And of course, politicians, who never miss an opportunity to pander, respond in typical knee-jerk fashion to each side.

Extremists have succeeded at creating a vigorously do-nothing environment, which serves them just fine. In fact, their survival and relevance depends on it.

Again, they are both wrong!

To be sure, immigration reform is not easy to address. The undocumented or illegals, whichever term you prefer, bring new opportunities as well as additional burdens to our nation. Rather than allow fringe groups to distort the debate, we need an earnest discussion on how best to continue integrating immigrants into America's future.

It's time for a pragmatic and centrist leadership to recognize the contribution of the undocumented by creating a legal process that regulates their status and satisfies our nation's economic self-interest. To focus on anything else diminishes immigrant success, past and present, and threatens our potential, as well as our legacy, as a nation.

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Juan Rangel is the chief executive officer of the Chicago-based United Neighborhood Organization.

Dems: Troops out by '08 - White House vows to veto proposal

Dems: Troops out by '08 - White House vows to veto proposal
By Aamer Madhani and Liz Sly, Tribune correspondents; Aamer Madhani reported from Washington, and Liz Sly from Baghdad
Copyright © 2007, Chicago Tribune
Published March 9, 2007

WASHINGTON -- Laying out their toughest challenge for the Bush administration since taking control of Congress, Democrats in the House and Senate moved Thursday to set firm deadlines to withdraw all U.S. combat troops from Iraq in 2008.

The calls for a pullout deadline immediately set off partisan debate as Republican leaders accused Democrats of setting conditions that could lead to the failure of the U.S. military mission in Iraq.

But House Speaker Nancy Pelosi, who introduced legislation in the House calling for troops to be redeployed by Sept. 1, 2008, said the move is necessary to wind down the 4-year-old conflict, which has already left more than 3,100 U.S. troops dead.

Separately, the Senate Democrats introduced binding legislation directing the president to begin a phased redeployment within 120 days with the goal of redeploying all combat forces by March 31, 2008, but the Republican leadership immediately said it would not agree to bring the proposal to debate next week.

The latest maneuvering comes as Gen. David Petraeus, the top commander in Iraq, said the U.S. military would need to maintain its increased troop levels for some time if it expects to pacify the insurgency and stamp out sectarian fighting.

Some Democrats complained that their legislative leaders have been slow in taking meaningful action on Iraq since wresting control from the Republicans in November.

With the new strategy, the Democrats are acceding to the White House's plan to send an additional 21,500 combat troops and 7,000 support troops to Iraq but are trying to ensure that the escalation will be Bush's final gambit in pacifying Iraq.

"The president's strategy is not working, and Congress must decide whether to follow his failed policies or whether to change course," said Senate Majority Leader Harry Reid.



Satisfying liberal Democrats

With the House measure, Pelosi hopes to satisfy the desires of some in the party, particularly the more liberal wing, to hasten the withdrawal, while reassuring moderates hesitant to set conditions that could be seen as tying the hands of commanders in the field.

The legislation, which is attached to a spending bill funding the wars in Iraq and Afghanistan, also calls for an additional $1.2 billion to finance the war in Afghanistan and $3.5 billion for the Veterans Health Administration to assist returning veterans--points that the Democratic leadership is counting on to help draw support from moderate Republicans who have grown weary of the Iraq war.

"We will come together and find our common ground," Pelosi said.

The Republican leadership quickly retorted that the Democratic leadership was trying to bring its political weight to bear on the commanders in the field, and that such a move would telegraph arbitrary timelines to the enemy.

The White House called the proposal a "non-starter" and dismissed the move as an attempt to find comity among various Democratic Party factions.

The measure comes just days after an anti-war plan floated by Rep. John Murtha (D-Pa.) collapsed. It would have required the Pentagon to meet readiness and training standards for U.S. troops and would have effectively shut down the war as the Pentagon would have had difficulty finding enough fully rested, trained and equipped units to meet its needs.

Senior White House adviser Dan Bartlett said the newest plan is little more than a "political compromise in the Democratic caucus of the House" and would have a dire effect on the security of Iraq if it is passed.

"It would unnecessarily handcuff our generals on the ground," Bartlett told reporters aboard Air Force One with President Bush headed to South America. "Obviously, the administration would vehemently oppose and ultimately veto any legislation that looks like what was described today."

House Appropriations Committee Chairman David Obey (D-Wis.) said he hoped that his committee could complete markup of the legislation next week and that the full House could debate the bill the following week.



Petraeus: Maintain troop level

Rep. John Boehner (R-Ohio), the House minority leader, said soon after the Democrats unveiled their plan that the insurgents would sit back and wait for U.S. troops to leave before pressing ahead with their attacks.

"Gen. Petraeus should be the one making the decisions on what happens on the ground in Iraq, not Nancy Pelosi or John Murtha," Boehner said. "Under the guise of supporting our troops, Democrats are actually mandating their failure."

The House plan would require Bush to certify by July 1 and again by Oct. 1 that Iraq is making progress toward building its security apparatus and stabilizing the country.

If the Iraqi government met those benchmarks, U.S. troops would end their combat role no later than Sept. 1, 2008. If Iraq did not meet either of the deadlines, troop withdrawals would begin immediately and be completed in six months.

The legislation allows Bush to waive the standards, but such a situation could be embarrassing to a White House that maintains the troop increase is already having a positive effect in Baghdad and Anbar province.

Petraeus told reporters in Baghdad that it is likely the U.S. will have to sustain troop levels for the foreseeable future if the new plan to secure Baghdad is to have a chance of success.

He said he anticipated no new requests for troops in the foreseeable future, but did not rule out that more may be needed.

The general also said the use of force "is not sufficient" to end the conflict and political talks must eventually include some militant groups now opposing the U.S.

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amadhani@tribune.com

lsly@tribune.com

Error Message - Daylight-saving time comes early this year. Are your gadgets ready? If so, click . . .

Error Message - Daylight-saving time comes early this year. Are your gadgets ready? If so, click . . .
By Mike Hughlett
Copyright © 2007, Chicago Tribune
Published March 9, 2007

You may be set to spring forward Sunday and enjoy more evening sunshine courtesy of daylight-saving time. But your computer might not be.

While humans moved up the start of daylight-saving time this year, millions of machines--cell phones and video recorders, too--were programmed to mark the event in early April.

Techies throughout the country have been working feverishly in recent weeks to fix the glitch. It's a job that will cost businesses hundreds of millions of dollars.

Experts predict the fixes largely will succeed, meaning most people won't notice a thing.

Still, those who rely on their computer calendars may have to do a little work to ensure their schedules stay up to date. And some folks are bound to show up an hour late for a Sunday brunch or Monday morning meeting.

But the "DST" glitch isn't nearly as portentous as the Y2K bug, which unleashed global fears that computers would crash as 1999 segued into 2000.

"What this is going to be is a minor annoyance for people," said Jeffrey Hammond, a software analyst at Forrester Research. "If you see a device that's not going along with your watch, trust your watch."

Analysts say a lot of fixes are being done automatically by companies with central control over devices.

For example, wireless networks will automatically update the clock on their customers' cell phones. Comcast will do the same for digital video recorders, so no one who intends to record "King of Queens" at 6:30 p.m. Sunday will get a Billy Graham special at 7:30 instead.

But some systems, particularly those that are a little older, will require that owners go to a Web site to download a patch.

Congress decided in 2005 to move up daylight-saving time from the first Sunday of April to the second Sunday of March. The idea: More evening daylight would lead to energy savings.

Computers and other electronic gizmos made since 2005 take into account the switch. For instance, if you have a desktop computer with Microsoft's new Vista software, you need not worry.

However, millions of people have older versions of Microsoft's ubiquitous software. "There will be some challenges with both individuals and businesses," said Jim Desler, a Microsoft spokesman.

Microsoft already has sent automatic time updates to machines running on XP S2. But people using older Microsoft systems will have to go to a Microsoft Web site to download a software patch.

And even if a computer does run on Windows XP S2, Microsoft recommends downloading its "Outlook TimeZone Update Tool" if you use your computer's Outlook calendar.

A messed up electronic calendar is likely to be the average person's biggest headache, and not just on the PC.

Calendars on mobile phones that use Microsoft software could be affected. Ditto for the popular BlackBerry device, which runs on a system proprietary to its maker, Research In Motion Ltd.

For those who got their BlackBerry independently, not through their employer, RIM suggests a manual fix. Directions are on RIM's Web site.

Most BlackBerry users get their devices through their employer, so they probably do not need to worry. That's because employers will likely take care of the problem through a centralized computer system.

The daylight-saving switch has given corporate tech departments a fair amount of work.

t's not been huge, but it's not been trivial," said Steve Betts, chief information officer of U.S. infrastructure at Aon Corp.

The Chicago-based insurance brokerage has 43,000 employees worldwide spread across 500 offices, making for lots of PCs and BlackBerries to cope with.

Betts and others at Aon have been working since the end of January on "a program of patching" to make sure calendar appointments, for one thing, will properly transfer. "We're in pretty decent shape," Betts said.

For industry, if the time glitch is left unfixed, all sorts of time-pegged things could be affected.

Take an example from the cell phone business.

With a wireless plan from Sprint, customers pay less for calls made at 7 p.m. than at 6 p.m. If Sprint didn't patch its internal system, a call made at 7 would be billed as a call made at 6. (Sprint says rest assured; it has accounted for this issue.)

The daylight-saving glitch has forced companies to temporarily redirect their tech departments. That's costly, both in time and money.

A medium to large corporate tech department has probably commissioned two to four people to fix the glitch, said Hammond, the Forrester analyst. Those workers have put in about two weeks on the task--about $50,000 in labor costs on average, he said.

At the nation's publicly traded companies alone, the total cost to patch the glitch is $300 million to $350 million, Hammond estimates.

And those companies may get a chance to do it all over again. If substantial energy savings from the new daylight-saving time aren't realized, Congress can switch back to the old date.

----------

Staff reporter Eric Benderoff contributed to this story.

mhughlett@tribune.com

- - -

If fix not automatic, Web sites can help

Q. How will the early start of daylight-saving time on Sunday affect my home computer and devices?

A. Many computers, hand-held devices and online calendars are programmed to recognize daylight-saving time as the first Sunday in April. The new March 11 start might throw calendars off by an hour. Daylight-saving time will be extended a week in the fall, to the first Sunday in November.

Q. What do I do?

A. Most software vendors have sent automatic upgrades to computers, home networks and devices. If you are not sure whether you have received them, go to the Web sites of the technology companies and download the software patch at no charge. TiVo and cable companies say they have repaired their technologies.

Q. What if I don't fix everything?

A. People who use online calendars, particularly shared ones, may notice meetings are off an hour. And the display clock on the computer will be off until April 1, when the old daylight-saving time begins. Technology companies predict that everything should continue to operate normally.

Q. Where do I go if I need help?

A. For personal computers, the following sites offer assistance:

Microsoft.com/dst2007

Docs.info.apple.com/article.html rtnum=305056

Thursday, March 08, 2007

Financial Times Editorial Comment: Justice is served on an imperial presidency

Financial Times Editorial Comment: Justice is served on an imperial presidency
Published: March 7 2007 22:32 | Last updated: March 7 2007 22:32
Copyright The Financial Times Limited 2007


The Bush White House seems to specialise in tortured political dramas that are impenetrable to those who live outside the Washington Beltway – not to mention around the world. The Libby affair, which resulted on Tuesday in the conviction of Lewis “Scooter” Libby, a former top White House official, on perjury and obstruction of justice charges, is more opaque than most.

Even the prosecutor in the case has called it a “he-said, he-said, she-said, he-said, he-said, she-said, he-said, he-said, he-said” case. Most Americans, even those whose dismay at the turn of events in Iraq grows by the day, showed little interest in who said what to whom, in this convoluted saga of journalists and White House aides and unmasked CIA agents and lies about the Iraq war.

And even after a verdict, many important questions remain unanswered: the jury found that Mr Libby lied and tried to block justice, but not whether he, or anyone else in the White House, vindictively and illegally blew the cover of a CIA agent because her husband publicly criticised the administration’s Iraq policy – the unproved charge that sparked the scandal in the first place.

But one thing is clear: Mr Libby was the right-hand man to Dick Cheney, the most powerful vice-president in living memory, himself the right hand man to the president. When someone that close to the Oval Office is found guilty of trying to pervert the course of justice, that is a serious blot on the already sullied reputation of an unpopular presidency.

Once again, as so often in politics, a top official has been tripped up not by what he did, but by what he did to cover up what he (or someone else) had done. There may be lessons to be learned here in the cash-for-honours inquiry in the UK, where investigators now appear to be looking more for evidence of a cover-up than for the proof of the crime itself.

But proof of a cover-up does not constitute proof of a crime. Evidence that Mr Libby lied does nothing to prove or disprove the existence of much larger lies, about weapons of mass destruction and the rationale for launching the Iraq war in the first place. Mr Bush’s critics have seized on the conviction as evidence of that much larger deception.

In fact, it is evidence of something that is, if anything worse. Mr Libby’s cavalier approach to the truth betrays an attitude that pervades the White House to this day: an arrogance of power, that pretends government officials are above the law; an expansionist notion of executive privilege that pervades this administration, from the war in Iraq to the treatment of detainees, to the recent sackings of federal prosecutors – and apparent attempts by the US Department of Justice to muzzle them before a Congressional hearing.

The Libby verdict is a welcome if only small step towards reining in this imperial approach to the presidency.

Gates warns on US immigration curbs

Gates warns on US immigration curbs
By Kevin Allison in San Francisco
Copyright The Financial Times Limited 2007
Published: March 7 2007 19:26 | Last updated: March 7 2007 19:26
Bill Gates, the chairman of Micro soft, on Wednesday warned that restrictions on the number of skilled workers allowed to enter the US put the country’s competitiveness at risk.

The comments marked the latest attack on restrictive US immigration policies by the technology industry, which is facing a shortage of skilled workers even as demand for their skills is increasing.

Speaking before the Senate committee on health, education, labour and pensions, Mr Gates said that tighter US immigration policies – governed partly by concerns over terrorism – were “driving away the world’s best and brightest precisely when we need them most”.

“It makes no sense to tell well-trained, highly skilled individuals, many of whom are educated at our top colleges and universities, that the United States does not welcome or value them,” Mr Gates said. “America will find it infinitely more difficult to maintain its technological leadership if it shuts out the very people who are most able to help us compete.”

Mr Gates said that other countries were taking advantage of restrictive US policies by catering to highly skilled workers who would otherwise choose to study, live and work in the US.

“Our lost opportunities are their gains,” he said. “I personally witness the ill effects of these policies on an almost daily basis at Microsoft.”

Mr Gates’s comments on immigration were part of a broader warning over the state of US competitiveness.

Mr Gates said he felt “deep anxiety” about the US’s ability to remain competitive if it did not act quickly to improve education, invest in basic science research, and reform its immigration ­policies.

“America cannot maintain its innovation leadership if it does not educate world-class innovators and train its workforce to use innovations effectively. Unfort unately, available data suggest that we are failing to do so . . . especially in our high schools.”

Mr Gates called on Congress to loosen rules that prevent many foreign students from settling once their studies in the US are complete. He also suggested that Congress speed the process of obtaining permanent resident status for highly skilled workers.

Immigration reform emerged as a key issue among voters in last year’s mid-term elections. However, most of the debate has focused on illegal immigration and whether the US should create a guest worker programme for low-skilled immigrants.

The US currently limits visas for skilled foreign workers to 65,000 a year, while the number of green cards, required for permanent resident status is limited to 140,000 a year.

Mr Gates ack now ledged concerns over US job losses resulting from immigration but sought to distinguish between the need to encourage more highly skilled workers to enter the US and the broader debate on immigration reform.

“These reforms do not pit US workers against those foreign born,” he said. “Far from displacing US workers, highly skilled foreign-born workers will continue to function as they always have: as job creators.”

`Scooter' Libby and Bush's unkept promise

`Scooter' Libby and Bush's unkept promise
By Steve Chapman
Copyright © 2007, Chicago Tribune
Published March 8, 2007

So now we have confirmation that Vice President Dick Cheney's chief assistant set out to discredit former Ambassador Joseph Wilson by secretly telling reporters his wife worked for the CIA--and then repeatedly lied about it during a federal criminal investigation.

When George W. Bush assured us during the 2000 campaign that Cheney "is a man of integrity and sound judgment, who has proven that public service can be noble service," I doubt this is what Americans were expecting.

Nor does it quite jibe with what Bush and Cheney promised about the tone they would set. Cheney lamented that under Bill Clinton, Washington had "often become a scene of bitterness and ill will and partisan strife." In accepting the Republican nomination, Bush confided, "I want to change the tone of Washington to one of civility and respect." How are we coming on that project?

Whatever else you can say about Lewis "Scooter" Libby's conviction, it yielded a mortifying day for an administration that lately has spent most of its time in an acute state of public embarrassment. Never mind if the original leak violated federal law, or if the prosecution of Libby for lying about it was justified. At best, the campaign against Wilson was petty and cowardly; at worst, it was dangerous and criminal. In either case, it is devilishly hard to square with what Bush and Cheney pledged when they came to Washington.

No one above the age of 6 believes everything a candidate for office says. Still, it's occasionally useful to go back and compare what politicians say they will do and what they actually do. It reminds us of the folly of putting faith in them, and it reveals that some partisans will stick with their guy even when he does exactly the opposite of what they thought he would do.

During the previous administration, such reflections were a favorite pastime of conservatives and other critics, who noticed that after being elected, Clinton reversed himself on trade relations with China, allowing gays in the military and sending boat people back to Haiti. Then there was his affair with Monica Lewinsky, which provided howling proof of his 1992 complaint: "Our families have values. But our government doesn't."

Bush tapped into disgust over Oval Office shenanigans by vowing to "uphold the honor and dignity of the office to which I have been elected." It's good that he hasn't been canoodling with the interns, but where is the honor and dignity in leaking a CIA operative's name merely because her husband had the gall to criticize the administration? Imagine what Bush supporters would have said in 2000 if Al Gore's chief of staff had outed an intelligence operative for political gain.

The Valerie Plame leak is not the biggest of the administration's detours from its promises. During the campaign, Bush said Clinton's cardinal mistake was "to launch today's new causes with little thought of tomorrow's consequences." You could ponder for days and not come up with a better description of how we went wrong in Iraq.

Conditions in Iraq are not entirely within the U.S. government's control. But conditions at Walter Reed Army Medical Center can't be blamed on Sunni insurgents or Al Qaeda terrorists. They can only be ascribed to the people in charge, who didn't make a priority of assuring that those wounded in battle would be treated in a manner commensurate with their sacrifice.

Bush once promised to do right by our men and women in uniform. During the campaign, he fumed that many of them had paltry incomes and poor housing. "This is not the way a great nation should reward courage and idealism," he announced. "It is ungrateful, it is unwise, and it is unacceptable."

So what words would serve to describe a military hospital where injured soldiers were subjected to filth, neglect and bureaucratic incompetence? This week, Bush pronounced the situation "unacceptable." What he didn't say is that until now, those conditions, though not acceptable, were somehow accepted.

The biggest surprise was that, unlike in past debacles, someone in a high position got fired for the failure. Maybe this time, Bush woke up in the middle of the night in a cold sweat, suddenly recalling what he said in 2000: "An era of tarnished ideals is giving way to a responsibility era."

Tarnished ideals we've got. Responsibility we're still waiting for.

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Steve Chapman is a member of the Tribune's editor board. E-mail: schapman@tribune.com

Gay awareness panel roils school - Some parents object to kids' discussion

Gay awareness panel roils school - Some parents object to kids' discussion
By Lisa Black
Copyright © 2007, Chicago Tribune
Published March 8, 2007

Some parents have accused Deerfield High School of promoting a homosexual agenda by allowing gay students to speak before freshman classes about their personal experiences, cite research and invite questions.

Taking place in classrooms this week, the panel sessions are scheduled during a class called freshman advisory, which seeks to help students adjust to high school. The class is mandatory, but parents can choose to remove their child on days the lessons concern them, school officials said.

But Deerfield resident and parent Lora Sue Hauser, who heads a group called North Shore Student Advocacy, wants to see the panel discontinued, saying it delves into complex issues of sexuality that are better addressed by parents and trained counselors. She said the panel is one of several ways that Deerfield High and other schools treat homosexuality as morally acceptable without presenting the viewpoints of those who disagree.

"The school makes heterosexuality and homosexuality equivalent, and our country is deeply divided on that," said Hauser, who said dozens of parents belong to the advocacy group but fear they will be labeled as haters or religious fanatics if they speak out.

"You can't dump that on a 14-year-old," Hauser said. "These are really difficult waters to navigate."

School officials say the parents are picking out one portion of a unit that helps students make the transition into high school, forge friendships and create a climate of acceptance. The class begins in fall by familiarizing freshmen with the school, its resources and lessons on improving study skills. Teachers move into touchier topics during the second half of the school year.

Suzan Hebson, assistant superintendent for human resources for Township High School District 113, said she believes only a few parents oppose the freshman advisory class.

"We have a great deal of pride in the program and don't feel we are overstepping any boundaries that [most] parents would feel are inappropriate," Hebson said.

But Ellen Waltz, a Deerfield mother of eight, said the climate has changed so much that students who believe that homosexuality is immoral and violates their religious beliefs are now the ones being bullied.

She said other students called her daughter anti-gay and anti-Semitic when she spoke out during the panel four years ago. One of the panel members was Jewish.

"My daughter was devastated when she came home. She said, `Everyone hates me,'" said Waltz, adding that she plans to pull her son out of class for the day this year.

The advocacy group, led by eight board members who live in North Shore communities, published a full-page advertisement March 1 in a local newspaper, the Deerfield Review. The ad states: "We believe these students are being used to further the causes of gay activists," and demands that Deerfield High officials "rein in your staff who are using the school to promote their personal views."

Hauser said grassroots groups are forming around the nation to voice their objections to school practices, performances or material they find morally questionable. She is also a school-issues adviser for the Illinois Family Institute, which describes itself as being "dedicated to upholding and re-affirming marriage, family, life and liberty in Illinois."

During the panel sessions, students who belong to a club called the Straight and Gay Alliance talk about personal experiences, such as what it feels like to be bullied or to be a straight friend of a gay classmate. On a separate day, members of a racially diverse club called the Minority Report speak.

"The whole point of the presentation is to help students understand how they--maybe even flippantly, intending to communicate with others--can be perceived or misperceived by others," Hebson said.

Erin Kaplan, 17, a senior, who describes himself as the only transgender student at Deerfield, said he believes that the climate at school has improved since the panel discussions began five years ago. He said the student alliance began the practice "after a really big wave of homophobic comments, targets for being gay."

Kaplan, a panelist for the last three years, tells students that he was born a boy--his parents gave him the name "Evan"--but that he has always felt like he should have been a girl. He wears feminine clothing at times but has a man's narrow hips and husky voice.

The panel this year consists of seven students. Four students identify themselves as gay, bisexual or transgender, and three are heterosexual, he said.

"What is important is that we learn to respect each other as peers," Kaplan said. "That's really the heart of what we talk about."

Kevin Jennings, executive director of the New York-based Gay, Lesbian & Straight Education Network, commends the Deerfield program.

"We're not trying to tell people what to believe but how to behave," said Jennings, who described the Illinois Family Institute as one of several organizations trying to intimidate school districts.

"A program that helps kids deal with bullying and harassment helps kids learn," he said. "Politics and religion should be set aside in the school."

Waltz said she asked school officials if she could sit in on the class. They declined, saying her presence would detract from the learning experience and instead offered to videotape the class and give her a copy.

Laurie Higgins, a teacher's aide at Deerfield, said she, too, has complained to school administrators about the panel and her requests to have an opposing viewpoint presented have been denied.

"My goal is not to generate controversy," said Higgins, a Deerfield parent. "I don't think they should be treating [homosexuality] in the same way they treat conditions that are immutable and carry no behavioral implications, like race, sex, ethnicity and disability."

Hauser said the topic belongs in schools only when presented neutrally in an academic forum. She opposes the Day of Silence held every spring as part of a national event. On April 18 students attempt to remain quiet to bring attention to harassment of gays and their desire for a safe environment at school.

In response, other students--in Deerfield and elsewhere--participate in a Day of Truth, held a day later, which opposes acceptance of homosexuality.

"Neither day at Deerfield High School has been disruptive in nature, educationally," Hebson said. "Unfortunately, there have been some hurt feelings on those two days because it's pretty evident that people choose sides."

Waltz said her children tell her the only time there is tension at the school is during the week the panel discussions take place, culminating with the Day of Silence and Day of Truth.

"There really isn't a problem at our school," Waltz said. "It's like they're throwing more logs in the fire. ... All our kids are great kids, whether they're gay or straight."

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lblack@tribune.com

Wednesday, March 07, 2007

Runoff Rundown

Runoff Rundown
by Amy Wooten
Copyright by The Windy City Times
2007-03-07

In addition to a few surprises on Election Day, Chicago will see the largest number of runoff elections in years.

On April 17, there will be a total of 12 runoff elections ( 11 involving incumbents ) held throughout the city. There were many tight races. Candidates had to 50 percent of the vote in the Feb. 27 elections to avoid a runoff in April, in which the two candidates with the most votes must go head-to-head once again.

Here is a rundown of the runoff elections:

2nd Ward:

Alderman Madeline Haithcock came behind challenger Bob Fioretti for an April 17 showdown. Fioretti received 28 percent of the vote to Haithcock’s 21 percent.

Haithcock has held office since 1993, and is a former banker. Fioretti has spent his career as a civil rights lawyer. Both, in interviews with Windy City Times, expressed support for the LGBT community.

3rd Ward:

In a surprise to many, Alderman Dorothy Tillman will face a tough battle for re-election against Pat Dowell in this South Side ward. Tillman got roughly 43 percent of the vote, with Dowell trailing slightly behind at 38 percent. The runoff election will no doubt be a tight race.

Tillman has been on the city council for 23 years, and is known for her colorful hats and her controversial stances on human rights issues. Dowell is a supporter of organized labor, and is disappointed that Tillman voted against the Big Box ordinance.

15th Ward:

This South Side ward had the highest number of candidates—topping off at 11—so it is no surprise a runoff will be held next month. The seat was up for grabs because Alderman Ted Thomas is retiring. The majority of candidates received a low number of votes, so it will be a showdown between attorney Felicia Simmons-Stovall and Toni Foulkes, a union activist and Jewel bakery employee.

16th Ward:

On the South Side, Alderman Shirley Coleman, an ordained minister who focuses on crime and poverty issues, will face a runoff against challenger Joann Thompson, who supported the Big Box ordinance and has the backing or organized labor. ( Thompson got 41 percent of the vote while Coleman received 37 percent. )

18th Ward:

Vote counts showed incumbent Lona Lane ( who was appointed to replace Tom Murphy by Mayor Daley in December ) just a hair under the magic 50 percent needed to defeat challenger Paul Stewart, who received 26 percent of the vote. Both have experience working for the city.

21st Ward:

Alderman Howard Brookins, Jr., will face challenger Leroy Jones, Jr. Brookins pushed to have a Wal-Mart in his South Side ward and failed; therefore, unions backed Jones.

24th Ward:

A long list of candidates spread around the vote enough to give Michael Chandler and Sharon Dixon too few votes to avoid a runoff in this Lawndale-area ward. Chandler wound up with 36 percent of the vote, while Dixon garnered 20 percent.

32nd Ward:

Despite the fact that there were only three candidates, incumbent Ted Matlak only received 47 percent of the vote—not enough to stave off a runoff with Scott Waguespack, who got 39 percent. One of the major issues for Matlak’s challengers is what they perceive as an ongoing cycle of corruption in the alderman’s office.

35th Ward:

Incumbent Rey Colon will face former alderman Vilma Colom next month. A key issue for Colom is crime.

43rd Ward

On the North Side ( in the Lincoln Park area ) , Alderman Vi Daley is headed for a runoff against Michele Smith. Smith is a former prosecutor and businesswoman. Daley has worked hard on streetscape and capital improvements in the area.

49th Ward

On the Far North Side, Alderman Joe Moore just missed the magic number—getting 49 percent of the vote—and will face challenger Don Gordon, who received roughly 29 percent.

During his campaign, Gordon has shown his support of gay rights and a willingness to listen to LGBT concerns in the ward. Moore, famous for his foie gras ban, faced three challengers upset by what they perceived as his poor handling of issues from crime to condos. Many felt that the longtime alderman hasn’t done enough to improve the area, which is one of the most diverse neighborhoods in Chicago.

50th Ward

Like Moore, Alderman Bernie Stone, who has served the area for 33 years, was just under the magic number in order to avoid a runoff against Naisy Dolar.

Stone, a long-time ally to the mayor, received 48 percent of the vote. In the late ‘80s, Stone ran as a Republican against Carol Moseley Braun. He has since returned to the Democratic Party.

Dolar, an advocate for multiculturalism and director of the city’s Commission on Human Relations, received roughly 28 percent of the vote. Dolar is also noted for raising awareness of the city’s Asian-American community.

Surprises

In addition to a high number of runoff elections, there were a few surprises on Feb. 27, including the tight race between Alderman Helen Shiller and openly gay candidate James Cappleman ( 46th Ward ) . Shiller, a longtime LGBT ally, won 53 percent to 47 percent.

On the South Side, Sandi Jackson trumped appointed Alderman Darcel Beavers ( 7th Ward ) . The race, which was not even close, was a battle between two women from prominent Black political families. Jackson is the wife of Rep. Jesse Jackson, Jr.

The largest shock of election night was when longtime Alderman Burton Natarus, a staunch ally to the mayor, fell to Brendan Reilly ( 42nd Ward ) . Natarus had been on the city council longer than Reilly has been alive. Reilly is an AT&T executive, and has since voiced that he will support the mayor.

Feigenholtz Stem Cell Bill Passes

Feigenholtz Stem Cell Bill Passes
Copyright by The Windy City Times
2007-03-07

State Rep. Sara Feigenholtz, D-Chicago, voted Thursday to use public funding to support embryonic stem cell research in Illinois. The bipartisan measure, House Bill 138, marks the first time the House has approved embryonic stem cell research, according to a press release.

“I am grateful to my fellow legislators for having the wisdom to approve this measure,” Feigenholtz said in the statement. “The steps we have taken to approve and fund stem cell research will pave the way for medical miracles with tremendous life-saving potential. We are making an important investment and one that will keep Illinois competitive with other states that have already approved similar legislation.”

The measure, which passed 67-46-1, allows for research involving the derivation and use of human embryonic stem cells from any source, human embryonic germ cells and human adult stem cells from any source. Additionally, the bill authorizes the Illinois Department of Public Health to develop the Illinois Regenerative Medicine Institute Program to provide and award grants to state medical research institutions. In addition, the bill bans the cloning of human beings.

Chicagoan Becomes Lambda Legal Co-Chair

Chicagoan Becomes Lambda Legal Co-Chair
Copyright by The Windy City Times
2007-03-07

Lambda Legal has announced the appointment of a new co-chair, Chicago’s Roy Wesley of Chicago, to its national board of directors.

Wesley, who joined Lambda Legal’s board of directors in 2003, lives in Chicago and is the chief financial officer of Fermalogic, Inc., a research-driven industrial biotechnology company that develops technology to improve pharmaceutical manufacturing. “As a third generation Japanese American, I experienced discrimination very early in my life,” Wesley said in a statement. “As an infant, I was sent to an internment camp and have since struggled with prejudice because I am also a gay man. But as I look back, I can see clearly how things have gotten better, and I am honored to become a co-chair of Lambda Legal’s board of directors because I know that with each day, Lambda Legal gets us one step closer to ending legal discrimination in our country.”

Australian GDP surprisingly strong in Q4

Australian GDP surprisingly strong in Q4
© Reuters Limited
By Reuters March 7 01:47:53 GMT


Australia’s economy grew at its fastest pace in one and a half years last quarter as consumers and the government spent briskly while businesses ramped up production to meet strong domestic demand.

The strength handily beat market expectations and pushed the Australian dollar higher while bonds slipped as investors gave up any thought of interest rates being cut later in the year.

“It is clearly higher than most people were expecting, suggesting the economy had a fair amount of momentum in it at the end of 2006 and not a bad base for 2007,” said Michael Blythe, chief economist at Commonwealth Bank.

The country’s gross domestic product (GDP) rose 1.0 percent in the fourth quarter to an inflation-adjusted A$236 billion ($183 billion). That was well above forecasts of a 0.6 percent increase. Annual growth quickened to 2.8 percent from 2.2 percent in the third quarter.

Household spending added 0.7 percentage point to growth, as did business and government investment. Companies stocked up on n inventories, contributing a similar amount to growth. All of that helped to offset a hefty 1.3 percentage point drag from the country’s trade deficit.

Analysts noted output was up across a range of industries, outweighing weakness in the drought-hit farm sector, while incomes were further boosted because Australia’s export prices have been rising and its import prices falling.

“The Australian economy is responding to the most favourable global conditions in decades,” said Warren Hogan, head of market economics at Westpac. “The economy enters 2007 with momentum and will shrug off the impact of last year’s rate rises.” The Reserve Bank of Australia (RBA) raised rates three times in 2006 to curb inflation, with some success.

NEAR THE SPEED LIMIT

Earlier on Wednesday, the central bank left rates unchanged at 6.25 percent, a decision widely expected given growing confidence among officials that past tightenings were working to restrain inflation.

“Our base case favours a period of steady cash rates for the RBA, possibly throughout the whole of 2007,” said Su-Lin Ong, a senior economist at RBC Capital Markets.

“However, we continue to think that the extremely tight labour market, high level of capacity utilisation, risk of fiscal stimulus, and a generally supportive global growth backdrop will keep a tightening bias intact for some time,” she added.

That was essentially the message from a top central banker on Wednesday.

In a speech to an industry conference, Malcolm Edey, head of the RBA’s economics department, was optimistic on the outlook for global growth, thanks in large part to booms in China and India which he thought could continue for decades yet.

In turn, such growth would keep the demand for resources high and support the economies of commodity producers such as Australia, which was already close to full capacity after 16 years of uninterrupted expansion, said Edey.

Crucially, the labour market remains drum-tight with unemployment at 30-year lows of 4.5 percent after employers created a stunning 300,000 new jobs in the past year.

“The RBA’s main concern is the economy is running out of new workers,” said Rory Robertson, interest rate strategist at Macquarie Bank.

“It will only tighten again if unemployment falls yet further or we get some really bad news on inflation. Otherwise, they must be thrilled with where the economy is right now,” he added.

Greenspan risks new row with Fed

Greenspan risks new row with Fed
By Krishna Guha in Washington
Copyright The Financial Times Limited 2007
Published: March 6 2007 19:08 | Last updated: March 7 2007 00:34



Alan Greenspan risked stirring renewed controversy on Tuesday when he told the Bloomberg news agency that there was a “one-third probability” of a US recession this year.

The former Federal Reserve chairman’s comments are starkly at odds with the relatively upbeat assessment made by Ben Bernanke, his successor, in testimony to Congress last week.

Mr Greenspan’s latest remarks come barely a week after he told investors in Hong Kong that he thought a US recession this year was “possible”. The earlier comments spread quickly through the investment community, spooking investors and contributing to turmoil in financial markets.

Following a global sell-off in equities and other assets, Mr Greenspan was forced to clarify his statement, declaring he had said that a recession this year was “possible” but not “probable”.

The markets appeared to take Mr Greenspan’s latest comments in their stride but the remarks show he has decided not to keep quiet in the light of the past week’s experience, highlighting a dilemma for Mr Bernanke.

The Fed chairman is inclined to think it is not Mr Greenspan’s fault the market takes his comments so seriously. Moreover, such is the respect and goodwill towards Mr Greenspan within the Fed, as well as in markets globally, that there would be little benefit for Mr Bernanke in being seen to clash publicly with him.

However, the apparent second-guessing of the Bernanke Fed’s economic view by its former chief risks adding to the volatility and undermining the current chairman’s efforts to establish his authority in the markets.

Mr Greenspan on Tuesday told Bloomberg he was “surprised at this recent episode”. He said: “I was aware of the problem that if I stayed public I could make it difficult for Ben. For the most part it has worked. I was beginning to feel quite comfortable that I was fully back to the anonymity I was seeking.”

He said there were signs that the US’s economic expansion was ageing. “We are in the sixth year of a recovery. Imbalances can emerge as a result,” he said.

Mr Bernanke has not put any figure on the likelihood of a US recession this year. However, his public remarks suggest that, while he feels there may be some chance of a hard landing so painful that it results in negative growth this year, the likelihood of that is much less than one in three.

Mr Greenspan’s interview overshadowed a speech by Mr Bernanke later in the day, in which he called for new legislation to tighten controls on Fannie Mae and Freddie Mac, the government-sponsored mortgage finance institutions.

Mr Bernanke said their portfolios “represent a potentially significant source of systemic risk”. He suggested that the two institutions should only keep on their books loans that promoted low-cost housing.

Chicago Tribune Editorial - Verdict: He lied.

Chicago Tribune Editorial - Verdict: He lied.
Copyright © 2007, Chicago Tribune
Published March 7, 2007

Libby lied. That's what the jury said Tuesday. After all the suggestions of faulty memories and who said what to whom, that's what counts. I. Lewis Libby Jr., the former chief of staff to Vice President Dick Cheney, lied to federal agents and grand jurors. He lied during an investigation into how and why a CIA operative was unmasked in the midst of a debate about the Iraq war.

The jury didn't buy the defense that Libby was a busy man with a bad memory who simply forgot what he'd been told.

That answers one serious question. But it leaves a much larger--and more important--one hanging: Why?

Did Libby lie to help the White House avoid embarrassment? Because he wanted to cover his tracks? Because he just didn't think he'd get caught?

We don't know.

Many Americans long ago lost track of all the complicated twists in this case. And yes, some of the trial testimony was so complex and convoluted that it would take a phalanx of color commentators to help you follow the action.

Indeed, what many may remember most is not the case but the collateral damage it generated. Reporters have been dragged into court--and one of them was dragged off to jail for refusing to testify. Prosecutor Patrick Fitzgerald of Chicago has been accused of excessive zeal in his pursuit of a leak case in which no one was ever charged with leaking the CIA operative's name.

Politics helped drive the public discussion of this case, but politics didn't drive the case itself. Fitzgerald said Tuesday that he had done what "any responsible prosecutor" would do. "It's not the verdict that justifies the investigation," he said. "It's the facts. ... Any lie under oath is serious. The truth is what drives the justice system."

So what is the truth here?

The truth is that top government officials had a choice, and they chose badly. They had a choice when former ambassador Joseph Wilson wrote an op-ed in The New York Times, criticizing one aspect of the administration's rationale for war against Iraq.

Administration officials could try to refute Wilson's words with facts, fully and publicly.

Or they could launch a whispered smear campaign against Wilson to damage his credibility.

They foolishly chose the latter: Libby became a point man in a campaign to discredit a critic of the administration's war policy. In the process, Wilson's wife, CIA operative Valerie Plame, was outed in the press.

As Fitzgerald's prosecution of Libby played out, jurors--like all Americans--got an unflattering glimpse of a White House mobilized for action, ready to crush an opponent even if it meant the questionable declassifying of an intelligence report to undercut Wilson.

So now what? There is much speculation about the next chapter in this saga. Will Bush pardon Libby? Will Libby make a deal with prosecutors and step forward to fill in the blanks?

The full story of why top administration officials got so needlessly overwrought about a former ambassador's allegations in a newspaper commentary has yet to be told.

Americans deserve to hear it.

Lung cancer screening test called exciting - Boston University team shows it is possible to detect precancerous changes in normal tissue

Lung cancer screening test called exciting - Boston University team shows it is possible to detect precancerous changes in normal tissue
By Judy Peres
Copyright © 2007, Chicago Tribune
Published March 7, 2007

Scientists may be close to being able to predict who will develop lung cancer, a development that could prevent tens of thousands of deaths a year in the U.S.

Using a molecular test called a microarray, a research team from Boston University has come up with an 80-gene "signature" that can identify lung cancer in smokers at a very early stage. More important, the team showed that it is possible to detect precancerous changes in normal tissue.

"It's like a molecular Pap smear," said Dr. Avrum Spira, who led the investigation.

The Pap test, which can detect abnormal cells in cervical tissue, is credited with greatly reducing deaths from cervical cancer. But instead of examining whole cells, as the Pap does, microarrays examine every gene encoded in the cell's DNA.

Although lung cancer kills more people than any other malignancy, research into the disease has lagged behind others. For example, genetic tests already can predict which breast cancer patients don't need chemotherapy and which are likely to respond to targeted drugs.

The new study suggests personalized medicine may now be coming to lung cancer.

Most cancers are diagnosed based on what cells look like under a microscope and are treated with the same handful of drugs. In personalized medicine, high-tech tests can spot individual genes, or patterns of genes, that make the cells become cancerous. New drugs can target cancer cells, avoiding normal cells and sparing the patient unnecessary side-effects.

"A molecular signature is far more informative than what a pathologist can see under the microscope," Spira said. "Two cancers might look the same, but one [patient] will be dead in two years and one will be fine.

"I think you'll see an explosion of molecular tools in the next five to 10 years for all forms of cancer and potentially other diseases," he said.

His preliminary study appears in this month's issue of the journal Nature Medicine.

The next step, Spira said, is a large clinical trial "to get FDA approval for an early detection tool."

That trial should get under way later this year, and the test could be available in 2009. Within four or five years, he said, it may be possible to identify who is at risk of developing lung cancer so doctors can take steps to prevent it.

Spira's work is based on a new concept in cancer research known as "field of injury."

In the case of smoking and lung cancer, the field of injury is the entire airway, from the nose to the lungs. "We hypothesize that all the cells that line your airway are affected at a genetic level by the toxins in the cigarette smoke," he said.

Rather than examining lung tissue, which would involve an invasive procedure, his research team sampled cells from high up in the bronchial tubes that were easy to reach. "We can use these cells to tell us how the smoker is responding to the exposure, whether he has lung cancer now, and whether he may be at risk for developing it," Spira said.

Dr. Ravi Salgia of the University of Chicago called the research exciting. "We're behind the curve" in early detection of lung cancer, he said. "With techniques like this, we should be able to catch up relatively quickly."

Dr. Kathy Albain of Loyola University Chicago said: "I believe they have identified a molecular profile in normal-appearing airway cells that coexists with cancer. If longitudinal follow-up validates the association between this field damage and subsequent development of cancer, we might have a new screening test."

About 90 percent of lung cancer in this country occurs in current or former smokers. However, fewer than 20 percent of smokers get the disease, and doctors can't predict which ones are at risk.

More than 200,000 Americans will be diagnosed with lung cancer this year, and more than 160,000 will die of the disease. Lung cancer is a major killer, Spira said, largely because it is rarely detected early enough to be treated successfully.

Spira said the gene signature could be used as an adjunct to existing tests, such as bronchoscopy or CT. In the Nature Medicine paper, the authors noted that bronchoscopy identified only 53 percent of smokers with lung cancer. When the authors added their gene tests, they were able to identify 95 percent of the cancers.

----------

jperes@tribune.com

Scans don't save lives, study says
By Judy Peres
Copyright © 2007, Chicago Tribune
Published March 7, 2007

Screening current or former smokers with annual CT scans does not appear to prevent deaths from lung cancer, a new study concludes.

The study, in Wednesday's edition of the Journal of the American Medical Association, reported that CT screening found three times more cancers than expected and resulted in nearly 10 times as many cancer surgeries. But there was no reduction in deaths from lung cancer.

The JAMA study, by Dr. Peter Bach of Memorial Sloan-Kettering Cancer Center, seems to contradict a study published last year in the New England Journal of Medicine.

That one, by Dr. Claudia Henschke of New York-Presbyterian Hospital, reported that CT scans produced a 10-year survival rate of 88 percent for patients with the earliest stage of disease. She argued that CT screening of high-risk people could prevent 80 percent of lung-cancer deaths.

In an editorial accompanying the JAMA study, Drs. William Black and John Baron of Dartmouth said the discrepancy between the two studies might be explained because they examined different things--one looked at how long patients lived from detection and the other counted deaths. Early detection does not automatically translate into delayed deaths, they said.

Screening tests (one used in people with no symptoms) are considered useful only if the test reduces death or disability from a disease. Otherwise, the tests could lead to unnecessary treatment that can have its own risks.

Two large, ongoing trials are expected to determine in the next year or two whether people who get regular CT scans are less likely to die of lung cancer than those who don't.

Atkins tops other diets in 4-way study - But maximum average weight loss after a year is only 10.4 pounds

Atkins tops other diets in 4-way study - But maximum average weight loss after a year is only 10.4 pounds
By Chris Emery
Copyright © 2007, Chicago Tribune and The Baltimore Sun
Published March 7, 2007

If you go on a low-carbohydrate diet to shed weight, you've probably made a good decision, according a new report by Stanford University researchers.

Just don't expect miracles.

In the largest head-to-head study of competing diets so far, low-carb plans such as the Atkins diet turned out to be safe and effective for losing weight and improving cardiovascular health -- at least in the short run.

In fact, women who aggressively restricted carbs lost nearly twice as much weight over six months as women on higher-carb diets, the Journal of the American Medical Association reported Wednesday.

The bad news: Even those on the Atkins plan, which outscored three competing diets, were down only 10.4 pounds after a year. And on every plan, by the end of the study, most dieters were slowly but surely regaining the weight they had lost.

"It shows that people will steadily go back to their old habits," said Dr. Lawrence Cheskin, director of the Johns Hopkins Weight Management Center.

Still, researchers welcomed the news that popular low-carb diets are safe and effective, if not a panacea.

Christopher Gardner, a professor of medicine at Stanford and the lead author on the study, also cautioned that the long-term safety of low-carb, high-protein diets is still in question.

"We don't know what a high-protein diet would do over 10 years," he said. "It could impair kidney function or leach calcium out of the bones. But we didn't look at that."

The study is the largest yet to explore the difference between popular diets. The researchers studied four diets representing a range of recommended carbohydrate consumption.

The Atkins diet calls for the fewest carbohydrates and lots of protein. At the other end of the carb spectrum was the Ornish diet, which focuses on cutting fat intake.

The study tracked the weight of 313 overweight or obese women for one year beginning in February 2003. The women were 25 to 50 and lived in the community surrounding Stanford's campus near Palo Alto, Calif.

Gardner said several factors might explain why the Atkins plan was somewhat more effective.

One, he said, is that Atkins calls for drinking lots of water, reducing the quantity of soft drinks and other sweetened beverages the women drank.

The diet also calls for protein-rich meals, which may have cut down on consumption of refined carbohydrates.

Hillary coverage needs injection of real news

Hillary coverage needs injection of real news
BY CAROL MARIN
March 7, 2007
Copyright by The Chicago Sun-Times Columnist
The latest dissection of Hillary Clinton hit the front page of the New York Times on Tuesday. Now, I love the New York Times, subscribe to it, and read it daily, after my own paper, of course.

But if Tuesday's front-page story was an example of straightforward news reporting, then quick, get me my Drudge Report.

The story, prominently placed beneath the masthead and above the fold, was titled, "Clinton Shapes Tough and Tender Image for '08."

Fair topic. These are most certainly dueling campaign motifs as she endeavors to appear tough enough to be commander in chief yet tender enough to feel the pain of America's sick and poor.

But, wow, this 2,263-word story was almost as catty as Ann Coulter. (Scratch that, nothing's cattier than Coulter.) The first three paragraphs described in aching detail how Clinton "meticulously" signs autographs " 'H-i-l-l-a-r-y,' 'R-o-d-h-a-m,' 'C-l-i-n-t-o-n' " . . . no stray lines, no wayward marks . . ."

The writer observes, "She is the diligent student who gets an A in penmanship, the woman in a hurry who still takes care to dot her i's."

Talk about being damned with faint praise.

If that's a meaningful warning sign of what kind of president she would be, what the heck do you say about the poor student currently in the White House?

The article went on to discuss Clinton's self-described "re-introduction" of herself to the electorate by dubbing her "Mrs. Clinton -- Version 08, Nurturing Warrior, Presidential Candidate Model."

And then, for t-h-i-r-t-e-e-n paragraphs, the piece deconstructed the candidate's head movements. Yes, head movements.

"Mrs. Clinton is a prodigious nodder . . . in an array of distinctive flavors . . . the stern, deferential nod . . . the empathetic, lips pursed nod . . . the squinty, disbelieving nod . . . the blushing nod."

It was at that point in my reading that I flipped back to check the byline. Not that it should matter, but I had to wonder, did a man or a woman write this?

Man.

I'm sure Mark Leibovich is an excellent New York Times reporter and skilled observer of how Clinton, among other things, is heavily courting the women's vote, but did we need quite so much of Mr. Leibovich's sly interjections? Like when he mimics Clinton's voice as he tells the reader, "There is a larger lesson here, girls."

Girls?

Wasn't it the same, venerable New York Times that last year, also on the front page above the fold, featured a 2,000-word story on whether Bill and Hillary Clinton were spending many "nights" together? Though the Times claimed that "for many Democrats these days, Topic A is the state of their marriage," it sure looked like it was mainly Topic A for the Times itself. With the relentlessness of a Seymour Hersh, the paper was able to determine that "Since the start of 2005, the Clintons have been together about 14 days a month on average."

Couldn't I have just waited for my People magazine for that news?

If I'm seeing this with a woman's eyes, you'll have to forgive me. It's just that I haven't seen much about John and Cindy McCain's marital moments. Nor how McCain nods his head or signs his name. Or which aide holds his purse when he's speaking.

Oh, sorry. McCain doesn't have a purse, Clinton does. And thanks to the comprehensiveness of Tuesday's Times, we were told that an aide does, in fact, hold it when Clinton is at the podium.

Beyond her purse, there is the matter of her voice.

She sometimes speaks, the paper reported, "in the high, insistent pitch of a fed-up Mom."

How like a woman.

As legitimate as it is to examine how a candidate presents him or herself, maybe even the esteemed New York Times cannot yet jump beyond an attitude when discussing gender.

This is commentary, guys.

Put it in the back of the paper on the op-ed page.

And call it what it is.

A column.

But don't you dare mess with Maureen Dowd when you do it.

Boston Globe Editorial - Lost without translation

Boston Globe Editorial - Lost without translation
Copyright by The Boston Globe
Published: March 6, 2007

Judging by bestseller lists, Americans like to read mysteries, books recommended by Oprah Winfrey and books about success and weight loss. Unfortunately, this leaves out a whole world of books: those published in other languages in other countries.

To close the global gap, the National Endowment for the Arts gives out International Literature Awards, grants for nonprofit presses to publish and promote translated books. The endowment is righting a translation trade imbalance. Many books written in English are translated into other languages. ("Harry Potter" is a towering example.) But far fewer foreign books are translated into English.

Precise counts are hard to find, but researchers tallying reviews in Publishers Weekly found that in 2005 only 3.5 percent of reviews were of foreign books, a figure that's consistent with other estimates. Translating literature is tricky and fascinating, a matter not simply of getting the words right, but also of conveying the sense, tone and associations.

Another challenge is getting foreign books noticed in a world of IM- ing, Web-surfing, television-watching Americans. The endowment's grant is a good start. This year's newly announced $10,000 grants go to three publishers:

Archipelago Books, in Brooklyn, is publishing "Vredaman," a novel about a young boy written by Unai Elorriaga, a Basque writer. The translation is being done by the writer Amaia Gabantxo. Her translations have appeared in journals and in a book published by the University of Nevada Press, "An Anthology of Basque Short Stories."

Dalkey Archive Press, in Normal, Illinois, is publishing "I'd Like," a collection of linked stories by Greek author Amanda Michalopoulou. The stories are being translated by Karen Emmerich. On its Web site, Dalkey's director, John O'Brien, says the goal is to be a permanent home to world literature. An international coalition of individuals and foundations helps pay for this house of books.

Etruscan Press, in Wilkes-Barre, Pennsylvania, is publishing "Amerikaniki Fouga" (American Fugue), a novel by the Greek author Alexis Stamatis that takes place in the United States. Stamatis worked on the book during a residency at the University of Iowa. The translation is being done by writer Diane Thiel and her husband, Constantine Hadjilambrinos.

All the world is a book group — or it could be if more Americans knew what people across the oceans are reading.

Tuesday, March 06, 2007

US labour costs add to inflation threat

US labour costs add to inflation threat
By Daniel Pimlott in New York
Copyright The Financial Times Limited 2007
Published: March 6 2007 15:20 | Last updated: March 6 2007 15:20



US labour costs soared to a much higher level than previously estimated while efficiency at work sank to almost half the initially reported figure in the final quarter of last year, raising the threat of inflationary pressures.

The Labor Department said that revised data on non-farm workers showed that productivity had actually grown by 1.6 per cent between October and December, at an annualised rate, rather than the 3 per cent which it first reported. This was largely in line with predictions for the revised figures by Wall Street economists.

The poorer levels of efficiency at work meant that the cost of labour shot up by almost four times as much as initially reported. Labour costs grew by 6.6 per cent rather than the previously reported 1.7 per cent rate. This easily beat Wall Street estimates for a revised figure of 3.2 per cent.

About half of the rise in labour costs was down to one-off bonuses at the end of the year, according to estimates by Abiel Reinhart, an economist at JPMorgan Chase.

Hourly pay rose by 8.2 per cent.

“Because of the temporary nature of these bonus payments, annualised growth in unit labour cost should decelerate sharply or decline in the quarters ahead; such has been the experience in the aftermath of similar surges in the past,” said Mr Reinhart. “That qualification notwithstanding, unit labour cost has been trending up since early 2004 and, even after discounting for the temporary surge in the fourth quarter, is a source of upside inflation risk and downward pressure on profits.”

The weaker productivity figures and higher labour costs came as Alan Greenspan warned there was a “one-third probability” of a US recession in 2007 in an interview with Bloomberg News. The former Fed chairman’s comments on the possibility of recession helped to rock turbulent markets last week, and contrasts with the view of Ben Bernanke, current chief of the Fed, who recently delivered an upbeat assessment of the economy.

The major downward revision to productivity reflected the big cut in the reported level of US economic growth last week. GDP growth estimates were slashed to 2.2 per cent for the last quarter of 2006 from an initially announced growth rate of 3.5 per cent.

Lower output in the economy, while hours worked remained the same, meant that the amount produced per worker in the quarter fell, while the unit cost of labour rose.

But productivity growth was still an improvement on the third quarter of last year when productivity fell by 0.5 per cent.

The Federal Reserve has maintained a hawkish attitude to inflationary pressures and pays close attention to rising labour costs as it weighs up its decisions over the setting of interest rates.

For the whole of 2006 productivity rose by 1.6 per cent, the lowest level since 1997.

“On the one hand, stronger wage growth should shore up consumer spending and GDP growth the first half of 2006, however, it does explain some of the inflationary pressures recorded the second half of 2006,” said Peter Morici, a professor at the Robert H. Smith School of Business. “Workers were able to recoup real income lost to high energy prices.”

Don't blame the uninsured

Don't blame the uninsured
By John R. Graham, director of health care studies at the Pacific Research Institute
Copyright © 2007, Chicago Tribune
Published March 5, 2007

From Massachusetts to California, politicians seem to think they've discovered a groundbreaking solution to the problem of the uninsured: use the law to bully everyone into becoming insured.

California Gov. Arnold Schwarzenegger has made this idea the centerpiece of his second term. Former Massachusetts Gov. Mitt Romney thought he had a solution too, but now that he's campaigning for the presidency, he's trying to avoid responsibility for a new government bureaucracy that's driven premiums up to almost twice what he had promised.

Covering the uninsured is certainly a worthwhile goal. But simply mandating coverage won't necessarily bring it to those who lack it.

Just look at auto insurance. Even though it's against the law to drive without it in California, 25 percent of the state's drivers are uninsured. Why are they breaking the rules? Because they don't expect to be in an accident.

The same rationale applies for those without health plans. Just as they forgo auto insurance, many people choose not to buy health insurance, even if they have the means to do so. Not even Mr. Olympia himself could strong-arm all Californians into buying coverage.

But leaving aside the fact that insurance by force simply cannot happen, there's another problem behind this drive toward "universal coverage." It's predicated on the flawed notion that the insured subsidize the care of the uninsured. While appealing, this idea doesn't pass muster.

Consumer-advocacy groups, such as Families USA, estimate that the uninsured used about $29 billion worth of health services nationwide in 2005, which the privately insured paid for through higher premiums. Once everyone has insurance, the argument goes, fewer people will use expensive options such as emergency rooms for their primary care.

But the uninsured are not the primary reason for spiraling health costs.

They consume far less care than the insured. In 2000, just over half of the total uninsured population had any medical expenses at all. By contrast, more than 80 percent of those with insurance had medical expenses during the same period.

Or consider this: Of the 1.9 million California children who visited emergency rooms in 2003, only 80,000 were uninsured, according to UCLA's Center for Health Policy Research.

Simply put, the uninsured population is too small to have a significant impact on the premiums of the insured, as consumer advocates claim. Those proposing to contain soaring health-care costs by "covering the uninsured" are trying to squeeze a lot of blood from a small stone.

On top of that, there's another problem with the argument that those with health insurance subsidize those without. Many uninsured Americans pay extra taxes because their income is not sheltered by insurance-based tax breaks.

In fact, the uninsured pay about $60 billion in additional income taxes by forgoing those breaks. That explicit figure swamps the so-called hidden tax of the uninsured.

Ironically--and counterintuitively--the real problem behind out-of-control costs is "overinsurance." Across the country, many of those with health insurance are consuming far more health care than they actually need.

Insured Americans use health services twice as much, per person, as the uninsured. Sen. Tom Coburn (R-Okla.), an obstetrician, estimates that as much as one-third of health care is wasted because almost nobody has the right incentives to use it wisely.

Further, the concentration of health expenses is almost identical among both the insured and uninsured populations. That means that about half of each group has little or no health expenses, while just 5 percent of each population incurs 50 percent of its group's health care expenses.

In other words, compulsory insurance won't magically transform the incentives for the uninsured to consume health care. Instead, it will simply move them onto a higher spending baseline.

The real "hidden tax" in today's health-care system is levied by the insured on their fellow insured. Most politicians have no interest in talking about this tax. Asking the millions of insured Americans to willingly consume less health care is a path to electoral defeat.

Until someone has the courage to tackle this real problem, Americans can expect to be deluged with proposals for mandatory health insurance that are unhealthy, unwise and expensive. And if instituted, the proposals will do nothing but drive our costs even higher.

----------

John R. Graham is director of health care studies at the Pacific Research Institute.

The end of analog TV broadcasting

The end of analog TV broadcasting
By Steven Helle, a journalism professor at the University of Illinois at Urbana-Champaign
Copyright © 2007, Chicago Tribune
Published March 6, 2007

If you are among the 66 percent of American households with analog television sets, you should know your set is scheduled to become extinct in about two years.

All full-powered TV signals are mandated by Congress to be entirely digital by that date. Of course, if you have cable or satellite service, it is most likely that your converter box will change the digital signals to analog so they can still be viewed on your set, but you should check with your signal provider.

For the 15 percent of American households that rely on over-the-air broadcast signals, their sets will just go dark, unless they have tossed that analog TV set in favor of a digital one or have purchased a digital-to-analog converter box.

Congress picked the date of Feb. 17, 2009, to make the switch because it will follow the Super Bowl and thus avoid the outcry from angry fans who cannot receive the broadcast. Congress and the Federal Communications Commission have been slogging toward a digital deadline for 10 years as they sought to free up airwaves for government use and private wireless communication.

But Congress has continually moved the finish line as broadcasters complained that they could not convert their signals to digital in time. There is still much concern among public broadcasting stations as to how they will finance the expensive transition, and there is always the possibility that Congress could move the drop-dead date yet again.

Because presumably many constituents who receive free over-the-air signals cannot afford cable or satellite service (or expensive digital TVs), Congress has allocated almost $1 billion to be handed out in $40 coupons so households might afford converter boxes. Households can begin requesting coupons on Jan. 1, 2008.

One of the few non-defense-related areas of President Bush's new budget that received a spending increase was the FCC's effort to educate the American public about how many of its sets will go dark on Feb. 17, 2009. Congress should approve that expenditure, because it seems many consumers are the last to know what the government and industry have decided regarding the future of their television sets.

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Steven Helle is a journalism professor at the University of Illinois at Urbana-Champaign. He teaches communications law.

Reality of slavery's past still present

Reality of slavery's past still present
By Leonard Pitts, a syndicated columnist based in Washington
Copyright © 2007, Chicago Tribune
Published March 6, 2007

Somewhere, the gods of irony are laughing.

Can you blame them? Last month came news that Ancestry.com, a genealogical Web site, had documented a startling link between two very unalike men. It turns out an ancestor of the late South Carolina Sen. Strom Thurmond once owned an ancestor of the Rev. Al Sharpton. Two icons of 20th Century racial politics--the one a strident foe of integration, the other regarded by some as a bogeyman of racial activism--linked by ownership.

Somewhere, the gods are amused.

Sharpton is not. He has pronounced himself torn by conflicting emotion: humiliation, anger, pride and, above all, shock.

The reaction from Thurmond's family, meanwhile, has been characterized by that curious shrug of shoulders, that ambivalence and eagerness to change the subject one often finds in white people when slavery gets personal.

"I don't feel one way or the other," Thurmond's 74-year-old niece, Doris Strom Costner, told The Washington Post.

"I have no comment," Paul Thurmond, the senator's youngest son, told the New York Daily News.

And then there's Essie Mae Washington-Williams, product of a liaison Thurmond had with a 16-year-old black maid when he was in his 20s. She says Sharpton is guilty of "overreaction" about her father. "In spite of being a segregationist, he did many wonderful things for black people," she said.

Too bad those wonderful things did not include renouncing his hateful views or publicly acknowledging his black daughter.

William Faulkner was right: "The past is not dead. It's not even past."

It's a truth from which many of us instinctively recoil where slavery is concerned. We reject anything that threatens to bring us in too close or make too plain the connections between then and now, that and this.

A man asked me just the other day how much longer I intend to make "excuses" for the problems of black kids. Racial oppression is in the past, he said. We've been pumping money into "minority programs" for more than 40 years, he said. Where's the progress, he said.

And I'm thinking to myself, Lord, give me strength.

Surely I have not been derelict in pointing out the failures of and the need for the black community to be active and proactive in its own salvation. But if it's true that black folk have work to do, it's also true that the need for that work did not spring from nowhere but, rather, from a 350-year epoch of physical and--this is important--emotional brutalization. And some of us are impatient that 40 years of mostly half-hearted attempts at a remedy have not made things hunky dory? Oh, please.

Of course, by this point maybe he has stopped listening. Maybe you have too. Mention of that 350 years tends to have that effect.

Hence the ambivalence--"nervous chuckles," reported the Orlando Sentinel of a visit to Thurmond's hometown--that greeted last week's news in some quarters. Small wonder. It removed the shield of abstract. It put a face on the thing. And the danger is that if we can imagine that face, we can imagine others.

Condoleezza Rice purchased as breeding stock.

Oprah Winfrey raped on a nightly basis.

Will Smith, his back split open by a whip.

Sen. Barack Obama (D-Ill.) living with the same rights under the law, the same expectation of dignity, as a horse or a chair.

We spend a lot of time running from this. But we never escape. That's the lesson of Sharpton's experience, the reason for nervous chuckles and ambivalent shrugs. It's an unwelcome reminder that some stains don't wash out, some dead things do not rest.

And we live in the presence of the past.

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Leonard Pitts is a syndicated columnist based in Washington. E-mail: lpitts@miamiherald.com

Chicago immigration activists ready Washington push

Chicago immigration activists ready Washington push
By Antonio Olivo
Copyright © 2007, Chicago Tribune
Published March 5, 2007, 8:35 PM CST

As Congress prepares to renew its debate over federal immigration reform, Chicago activists plan to blitz lawmakers with phone calls and bus caravans to Washington in hopes of winning more rights for legal and undocumented immigrants.

The $450,000 Illinois Is Home campaign will also focus on promoting state reforms, such as allowing undocumented immigrants to qualify for driver's licenses, said Juan Salgado, president of the Illinois Coalition for Immigrant and Refugee Rights, during a news conference Monday.

The campaign will join other immigrant mobilization efforts already under way, as the likelihood increases for passage of some kind of federal legislation, organizers said.

On Saturday, a rally is planned downtown, at Federal Plaza, on the anniversary of the first of several marches last year that brought the immigration issue to the fore for many Chicagoans.

"It's important to work in concert," said Salgado, who helped coordinate those marches. "The obvious next step is to come out and be a part of the work that's happening to move votes in our congressional delegation."

That effort will include phone banks and a three-day trip to Washington next week, where participants will present Illinois' 21 members of Congress with a list of immigration reforms they'd like to see passed, organizers said.

At the end of March, a similar lobbying trip is scheduled for Springfield.

Leaders of the campaign plan to use ethnic media and the Internet to pull volunteers into their effort, while counting on sympathetic legislators to spread the word.

Billy Lawless, president of Celts for Immigration Reform, said the campaign would partially focus on the economic contributions immigrants have made to cities like Chicago. With the debate over immigration again heating up after dying in Congress last year, there is a sense of urgency behind the effort, he said.

"This is going to be our year" for some kind of reform, he said. "But we have to fight for it."

aolivo@tribune.com

Libby Found Guilty in CIA Leak Trial

Libby Found Guilty in CIA Leak Trial
By MICHAEL J. SNIFFEN and MATT APUZZO
copyright by The Associated Press Writers
Published March 6, 2007, 11:52 AM CST

WASHINGTON -- Former White House aide I. Lewis "Scooter" Libby was convicted Tuesday of obstruction, perjury and lying to the FBI in an investigation into the leak of a CIA operative's identity.

Libby, the former chief of staff to Vice President Dick Cheney, was accused of lying and obstructing the investigation into the 2003 leak of CIA operative Valerie Plame's identity to reporters.

He was acquitted of one count of lying to the FBI.

Libby had little reaction to the verdict. He stood expressionless as the jury left the room. His lawyer, Theodore Wells, said they were "very disappointed" with the verdict.

Special prosecutor Patrick Fitzgerald said he was gratified by the verdict.

"The results are actually sad," he added. "It's sad that we had a situation where a high level official person who worked in the office of the vice president obstructed justice and lied under oath. We wish that it had not happened, but it did."

The verdict was read on the 10th day of deliberations. Libby faces up to 30 years in prison, though under federal sentencing guidelines likely will receive far less.

U.S. District Judge Reggie B. Walton ordered a pre-sentencing report be completed by May 15. Judges use such reports to help determine sentences.

Libby faced two counts of perjury, two counts of lying to the FBI and one count of obstruction of justice. Prosecutors said he discussed Plame's name with reporters and, fearing prosecution, made up a story to make those discussions seem innocuous.

Libby's defense team said he learned about Plame from Cheney, forgot about it, then learned it again a month later from NBC newsman Tim Russert. Anything he told reporters about Plame, Libby said, was just chatter and rumors, not official government information.

Special prosecutor Patrick Fitzgerald said that was a lie. But Libby's defense team had argued that it would be unfair to convict Libby in a case where so many witnesses changed their stories or had memory problems.

Wells said he would ask the court for a new trial by April 13. Such requests are common following criminal convictions.

"Despite our disappointment in the jurors' verdict, we believe in the American justice system and we believe in the jury system," Wells told reporters outside the federal courthouse. "We intend to file a motion for a new trial and if that is denied, we will appeal the conviction. We have every confidence that ultimately Mr. Libby will be exonerated.... We intend to keep fighting to establish his innocence."

Libby will be allowed to remain free while awaiting sentencing, which is set for June 5.

As the verdicts were read, Libby's wife choked out a sob and sank her head. Moments later, she embraced the defense attorneys.

The jury acquitted Libby of one count of lying to the FBI about his conversation with Time magazine reporter Matthew Cooper.

Libby and his lawyers walked into the courthouse after Wells' statement, holding on to each other by the wrists, apparently so they wouldn't be separated in the crush of reporters and camera crews. They paused briefly when a cameraman fell.

During the trial, prosecutors said Libby made up a ludicrous lie to save his job during the CIA leak investigation by telling investigators he'd forgotten Cheney told him about the CIA status of Wilson's wife. Cheney had passed the information to Libby more than a month before Plame's identity was outed by conservative columnist Robert Novak.

Libby told investigators he learned of Plame's identity from NBC reporter Tim Russert, saying that he'd forgotten at the time he talked to the reporter that he'd been told of it earlier by Cheney.

Russert testified he never told Libby about Wilson's wife, and underwent a grueling cross-examination as Libby's legal team tried to discredit Russert's testimony.

Wells and Fitzgerald clashed over how important Libby and Cheney considered CIA officer Plame.

"The wheels were falling off the Bush administration" in the summer of 2003, Wells argued. How could Libby, serving Cheney as both chief of staff and national security adviser, remember Plame's job when 100,000 U.S. troops were in Iraq and hadn't found the weapons of mass destruction the administration had cited to justify the war? Wells asked.

"And he still had his day job of trying to prevent another 9/11" terrorist attack, Wells said.

Fitzgerald noted that eight witnesses, including an undersecretary of state, two CIA officials, two top Cheney aides, two reporters and former White House press secretary Ari Fleischer said they discussed Wilson's wife with Libby in a one-month span before Plame's CIA employment was publicly revealed.

Monday, March 05, 2007

Witness slams 'nightmares' of Army medical system

Witness slams 'nightmares' of Army medical system
Copyright by CNN News
POSTED: 5:17 p.m. EST, March 5, 2007


WASHINGTON (CNN) -- Witnesses told a House panel Monday that wounded U.S. soldiers are forced to struggle against a nightmarish and untrustworthy Army medical system which leaves veterans stranded in unfit conditions.

Two Iraq war veterans and the wife of a third gave heartbreaking, at times stunning, tales of neglect at the now notorious Walter Reed Army Medical Center.

The panel was convened in the wake of a scandal triggered by The Washington Post's detailing of problems at the hospital.

Annette McLeod, wife of Cpl. Wendell McLeod, who received an injury to his head in the war, said her husband "has been through the nightmares of the Army medical system.

"I'm glad that you care about what happened to my husband after he was injured in the line of duty. Because for a long time, it seemed like I was the only one who cared. Certainly, the Army didn't care. I didn't even find out that he was injured until he called me himself from a hospital in New Jersey."

"This is how we treat our soldiers -- we give them nothing," she said. "They're good enough to go and sacrifice their life, and we give them nothing. You need to fix the system."

A series of stories in The Washington Post in February documented a variety of problems at "Building 18," a one-time motel converted to a long-term outpatient dormitory at the Washington hospital. The newspaper found troops who lost limbs and suffered traumatic brain injuries or post-traumatic stress were quartered for months in moldy and rodent-infested rooms with inadequate follow-up care.

The panel chairman, Rep. John Tierney, called "the unsanitary conditions" and other problems at Walter Reed hospital "appalling."

"But we also realize that not only is it flat wrong, that's the tip of the iceberg," said Tierney, a Massachusetts Democrat. "For too many occasions, the soldiers at Walter Reed wait months, if not years, in sort of a limbo. And they must navigate through broken administrative processes and layers upon layers of bureaucracy to get their basic tasks accomplished."

The congressman said he believes the problems "go well beyond the walls of Walter Reed, and that they are problems systemic throughout the military health-care system. And as we send more and more troops into Iraq and Afghanistan, these problems are only going to get worse, not better. And we should be prepared to deal with them."

Maj. Gen. George Weightman, whose duties included overseeing the facility before he was fired over the scandal, said, "It is clear mistakes were made and I was in charge. We can't fail one of these soldiers or their families, not one, and we did."

He added, "We did not fully recognize the frustrating bureaucratic and administrative processes some of these soldiers go through. We should have and in this, I failed."

But Annette McLeod described him as a "fall guy."

"Mr. Weightman, in my opinion, he was just shoved into a situation that was already there, and because somebody had to be the fall guy, he was there," she said.

McLeod said her husband at one point waited four months for the results of an important medical test. She said the Army refuses to acknowledge that her husband suffered a brain injury. He once told the military he had needed special help with certain school subjects when he was young, and now the Army is using that "against him," she said.

Room 'wasn't fit for anyone'

During earlier testimony, a soldier who said he once lived in a recovery annex at Walter Reed described unfit hospital conditions.

Wounded Army Spc. Jeremy Duncan told the panel he spent some of his recovery in Building 18. Duncan said that his room "wasn't fit for anyone."

"I know most soldiers that come out of recovery have weaker immune systems and black mold can do damage to people," Duncan said. "The holes in the walls -- I wouldn't live there even if I had to."

After taking his complaints through the chain of command, nothing was fixed, Duncan said.

"That's when I contacted The Washington Post."

Asked what happened after the Post reported what he had to say, Duncan replied, "I was immediately removed from that room. And then the next day they were renovating the room."

Duncan rejected recent public statements from some military officials that they were unaware of the problems. "There's no way they couldn't have known," he said. "I mean, everybody had to have known somewhere. If they wanted to actually look at it or pay attention or believe it, it's up to them."

'I want to leave this place'

Another patient, Staff Sgt. John Daniel Shannon, said the revelations were no surprise. "Two years after first being admitted, I'm hearing the same thing that I heard two years ago," Shannon said. He described his many extensive efforts to get needed treatment and better conditions.

"I want to leave this place," said Shannon. "I have seen so many soldiers get so frustrated with the process that they will sign anything presented to them just so they can get on with their lives. We have almost no advocacy that is not working for the government, no one that we can talk to about this process who is knowledgeable and we can trust is going to give us fair treatment and informed guidance."

As testimony began, Vice President Dick Cheney was making a speech Monday to the Veterans of Foreign Wars, saying that President Bush has made clear "there will be no excuses, only action."

"We're going to fix the problems at Walter Reed, period," Cheney said.

Gen. Peter Schoomaker, Army chief of staff, said, "I couldn't be madder, and I couldn't be more embarrassed and ashamed."

Lt. Gen. Kevin Kiley, the Army's surgeon general, acknowledged Walter Reed "has not met our standards," and added, "for that I am sorry."

Kiley's statement came after Acting Secretary of the Army Peter Geren told the committee that "we have let some soldiers down."

"We're going to fix that problem," Geren said.

Geren stepped into his role after Army Secretary Francis J. Harvey's resignation Friday.

In addition to Harvey's resignation, the outcry over the conditions some outpatient soldiers faced at Walter Reed led to Weightman's removal. (Watch why the Army secretary and hospital commander lost their jobs )

On Friday, House Democrats released documents showing Weightman was warned in September that the Army's decision to turn over support services for the facility to a private contractor sparked an exodus of skilled staff. That left patient care "at risk of mission failure," Weightman's deputy, Col. Peter Garibaldi, warned in a memo to the general.

Financial Times Editorial Comment: Republican runners

Financial Times Editorial Comment: Republican runners
Copyright The Financial Times Limited 2007
Published: March 3 2007 02:12 | Last updated: March 3 2007 02:12


Competition is good for politics, as for most other fields of human endeavour. And on one level, America’s 2008 presidential campaign looks to be one of the most competitive ever: well over a dozen well-known, well-qualified and mostly well-funded Americans are already running for president – 20 months before the poll.

The American public is complaining about the ludicrously early start to the campaign, but not about the quality of the field. The pack includes a host of serious and talented people, with a wide range of views. The size and strength of the field makes this one of the most unpredictable elections ever.

But even this early in the gruelling process, one thing is becoming clear: the Republican party’s social conservative base has no overwhelming favourite in the race – and that could profoundly affect the outcome.

Senator John McCain, who has been running for president for years already, finally (if informally) declared his candidacy on late night television this week. He is the darling of the US media, but places only a distant second in opinion polls comparing potential Republican candidates (behind Rudy Giuliani, New York’s 9/11 hero).

Mr McCain is hardly the favourite of Christian conservatives, whom he once dubbed “agents of intolerance”. Many independent voters – who might otherwise prefer the maverick senator – dislike his gung-ho views on the Iraq war. The senator faces a difficult task: wooing social conservatives without looking like a hypocrite, while courting independents, distancing himself from the Iraq disaster and allaying fears that he is too old for the White House. It will be a neat trick if it works: but that is far from certain.

That does not mean Mr Giuliani has any better chance of getting nominated. He leads Republican rivals by 20 points in early polling, but it would be hard to imagine a candidate less congenial to the base: he supports gay and abortion rights, and opposes guns. The other big Republican name thus far, Mitt Romney, former Massachusetts governor, is courting activists with an anti-gay marriage campaign. But he would probably not long survive if Newt Gingrich, architect of the Republican party’s return to Congress in 1994, decided to enter the fray.

To choose any one of Messrs McCain, Giuliani or Romney, the Republicans would have to jettison some of their core values. They may be prepared to do that to retain the White House – indeed, they may have to. But it is hard to see Christian conservatives throwing in the towel just yet: they already have candidates in the field such as Mike Huckabee from Arkansas and Senator Sam Brownback from Kansas. But they are still looking for a figure of real heft who will resuscitate their revolution. That may be someone who, despite the jostling crowds heading for the starting blocks, is still back in the stables.

US service sector growth slows

US service sector growth slows
By Daniel Pimlott in New York
Copyright The Financial Times Limited 2007
Published: March 5 2007 16:31 | Last updated: March 5 2007 16:31


The US service sector saw a sharp drop off in activity last month, growing at its slowest rate since during the Iraq war in April 2003, according to data released on Monday.

The Institute for Supply Management said that its index of business activity for the services sector stood at 54.3, down 4.7 percentage points from January.

The report badly missed economists’ forecasts of a level of 57.

New orders in the service sector were down 0.6 percentage points at 54.8. But figures on employment in service industries put a more positive gloss on the state of the economy as the index for non-manufacturing jobs rose 0.5 percentage points to 52.2.

The figures added to concerns surrounding the state of the US economy, but the markets did not react strongly when the data was released. Alan Greenspan, former chairman of the Fed, warned last week that a recession was “possible”.

Other data released last week showing that the US economy grew less quickly than expected last quarter and that industrial investment slowed at the start of the year worried investors and contributed to the chill in global markets.

The service industries covered by the report make up around 80 per cent of the US economy and are the driver of economic growth as manufacturing faces ongoing weakness in housing, and the auto industry continues to ail.

Some analysts said that although the headline figure of the report was probably somewhat misleading, in the current market conditions it was still worrying.

Alan Ruskin, chief currency strategist at RBS Greenwich Capital, called the numbers “disappointing, but the breakdown is not nearly as poor as the headline would suggest. Both the employment index and orders data were fairly close to the prior months numbers.”

But he said that the data would “only add to fears that the economy may be losing a little momentum, even allowing for the breakdown.”

“The headline index is usually little more than a lagging indicator of the rate of growth of core retail sales,” said Ian Sheperdson, chief US economist at High Frequency Economics. “Given the mood of the markets, however, and the uncertainty surrounding the economic outlook, the report does not look good.”

Others warned that the data supported the view that the US economy was heading for slower growth this year.

“With the escalation of pressures on the financial services industry connected with problems in the sub-prime mortgage lending market, the services industries are expected to track in the slow to moderate growth range for several more months,” said Brian Bethune, US economist at Global Insight. “For the economy as a whole, this points to “slow speed ahead” - with potentially rough seas and headwinds - in the first half of 2007.”

Russia to revise stance over US missile plans

Russia to revise stance over US missile plans
Copyright The Financial Times Limited 2007
Published: March 5 2007 20:30 | Last updated: March 5 2007 20:30



Russia said it was revising its military doctrine to reflect other powers’ growing use of military force, while a Russian general warned again that Moscow could knock out elements of the US missile defence system planned for eastern Europe.

The comments came as Angela Merkel, German chancellor, added her voice to the heated international debate over the missile defence system by calling for Nato to be given responsibility for defusing concerns over the plan.

“Nato is the best place for discussion of this issue,” she told the Financial Times in an interview, arguing that Washington should step up consultation with its western allies and Russia.

Her statement reflects concerns over increasing east-west tensions since Vladimir Putin, Russian president, delivered a speech in Munich sharply criticising US unilateralism, and the US formally asked Poland and the Czech Republic to host parts of the anti-missile system.

Russia disputes Washington’s claims that the system is not aimed at Russia but designed to intercept missiles from “rogue” states such as Iran or North Korea.

Russia has said that it might withdraw from the 1987 Intermediate-Range Nuclear Forces treaty, which outlawed an entire class of medium-range weapons, unless the US drops plans to site the system in eastern Europe.

In the latest warning, Gen Igor Khvorov, head of Russia’s strategic bomber force, said Russian bombers could easily knock out the installations. “Since missile defence elements are weakly protected, all types of our aircraft are capable of applying electronic counter measures against them or physically destroying them.”

At the same time, Russia’s presidential security council said it was developing a new military doctrine to take account of the growing role of force in the foreign policy of “leading states”.

Without naming the US, it echoed the language of Mr Putin’s complaints about Washington’s unrestrained use of force.

“Leading states are paying increasing attention in military policy to modernising their military forces and improving their weaponry,” the statement added. “Modern forms of armed conflict are being actively implemented, technologies for use of force are being reviewed, the configuration of military presence is being changed, and military alliances are being strengthened – particularly Nato.”

But Mrs Merkel said that Nato should be the forum for greater consultation by Washington of both its western allies and Russia on the issue of missile defence. “It is better to have more discussion on this issue rather than less,” she said.

Condoleezza Rice, US secretary of state, used a visit to Berlin last month to stress that Washington had held 10 rounds of talks with Russia on the defence system since spring 2006.

Mirek Topolanek, Czech prime minister, also brushed aside European objections to the missile defence plan. “As for the 18 EU member states who host US military bases, it is not up to them to comment on the existence of such a presence in the Czech Republic,” he said after talks with Jaap de Hoop Scheffer, Nato secretary general, in Brussels.

German officials said Berlin was concerned that while the defence system was not targeted at Russia, there was a danger its creation could mark a departure from the international trend since the early 1990s towards disarmament.

At an EU meeting yesterday, Jean Asselborn, Luxembourg’s foreign minister, was more outspoken, calling the US plans “incomprehensible”.

“We will have no stability in Europe if we push the Russians into a corner,” he said.

By Neil Buckley in Moscow, Daniel Dombey in Brussels, and Hugh Williamson, Bertrand Benoit and Frederick Studemann in Berlin

Giuliani sells bank in campaign move

Giuliani sells bank in campaign move
By Caroline Daniel in Washington and James Politi in New York
Copyright The Financial Times Limited 2007
Published: March 5 2007 18:43 | Last updated: March 5 2007 18:43


Rudy Giuliani, the former mayor of New York, on Monday provided further evidence that he is stepping up his presidential campaign for 2008 when he sold his boutique investment bank, Giuliani Capital Partners, addressing concerns about potential conflicts of interest and adding to his warchest of campaign financing.

The terms of the sale to Macquarie Group, an Australian financial group, were not disclosed but analysts said that Giuliani Capital Advisors could be worth as much as $100m. It represents a large chunk of Mr Giuliani’s business interests, which he began building in early 2002, shortly after leaving his post as mayor.

GCA advises on mergers and acquisitions and restructurings in sectors such as infrastructure, energy, and property. Although largely US-based, it has advised on several international deals, particularly in Germany and the UK. It came under Mr Giuliani’s umbrella in 2004, trebling the size of his business interests, which were mostly confined to Giuliani Partners, a management consultancy. A spokesman for GP declined to comment on whether it would also be sold.

After months of being coy about his intentions Mr Giuliani has emerged as the Republican frontrunner, benefiting from strong name recognition, celebrity status from 9/11 and doubts about Senator John McCain and his advocacy of the unpopular troop surge in Iraq.

A Newsweek poll at the weekend showed that in a head-to-head contest with Mr McCain, he jumped into a 25-point lead, with 59 per cent to 34 per cent for McCain. That compared with just a 4 per cent edge in a January poll. Mr Giuliani came second this weekend in a straw poll of conservative activists at the Conservative Political Action conference.

On Tuesday Mr Giuliani will add to his resources with a fundraiser in Palo Alto hosted by Floyd Kvamme, a leading technology veteran from Silicon Valley who served on the National Finance Committee for President George W Bush.

Although he is a social conservative, Mr Kvamme is willing to overlook Mr Giuliani’s liberal positions. “You can’t help but be impressed by his leadership on 9/11. He was the bright shining star that day,” he said, adding: “Rudy Giuliani is a strict constructionist and wants judges who don’t make laws from the bench. I’m comfortable with that.”

Charlie Cook, editor of the Cook Political Report, warned that three-quarters of those surveyed in a recent Gallup poll were unaware of Mr Giuliani’s views on abortion and gay marriage.

“His backers are mostly conservatives and evangelicals drawn by his 9/11 strong leadership. That support will melt like an ice cream cone in August once abortion, guns, gay rights, Vietnam draft, marriage to his second cousin, and infidelities come out.”

In a hint of those potential problems, Andrew Giuliani, his son from his second marriage, told ABC this weekend that he “got his values from his mother” and had “problems with my father”, but added that he would still make “a great President”.