Saturday, July 04, 2009

Declaration of Independence


America grew out of legitimate concerns. Our Founding Fathers would be appalled by America's interventionist policies around the globe and the loss of critical rights. The Declaration of Independence states:

Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn that mankind are more disposed to suffer, while evils are sufferable than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.

As a graduate of Thomas Jefferson's University, I note similar quotes by this Founding Father:

"The oppressed should rebel, and they will continue to rebel and raise disturbance until their civil rights are fully restored to them and all partial distinctions, exclusions and incapacitations are removed." --Thomas Jefferson: Notes on Religion, 1776. Papers 1:548

"As revolutionary instruments (when nothing but revolution will cure the evils of the State) [secret societies] are necessary and indispensable, and the right to use them is inalienable by the people." --Thomas Jefferson to William Duane, 1803. FE 8:256

There are many abuses and usurpations, ranging from a corporate bought Congress and White House, to an unchecked Unitary Executive, to a mostly unused Judiciary. The Founders' checks and balances morphed into written checks and account balances.

Once aware, one is free to choose a response. I celebrate the ideal of America this July 4th, which includes freedom of thought and speech. I add compassion and love for my fellow man, for all of humanity. Peace to all this Independence Day.

Wednesday, July 01, 2009

The Ten Political Commandments


There is a new political faith, with key tenets. It is practiced by the red and blue teams, especially in the permanent political campaign. I'm sure there are more than ten commandments, but I became nauseous and had to stop.


1. A blinding facial concussion for an eye. Overwhelming force, repeatedly applied, is the best teacher. (Ignore the cycle of violence it teaches/creates. Ignore that it doesn't deal with root causes of the first eye loss, which could have been accidental or the result of bad processes.)

2. The government can't do anything right and the private sector is infallible. (It is government's job to contract everything to the private sector. Ignore the layers of contractors, each with their 15-20% profit motives. This poison will spread to health care via business process outsourcing. The worst hospital administrators I knew acted like general contractors, the current model of our federal government. There is a widespread failure in leadership.)

3. God blesses those he loves with resources and wealth, i.e. the prosperity gospel. (Who is the government to intervene with God's will by changing tax codes?)

4. Competition brings out the best in everyone and is the best allocator of resources. (Ignore that the government purposefully restricts competition in many markets and major purchase decisions. Ignore the damage competition does to complex processes that require collaboration.)

5. People are motivated by money, thus pay for performance will solve the ills of any problem, especially education and health care. (Ignore that P4P caused people to focus on/manipulate their pay scheme, not improving financial products on Wall Street. Expect the same distortions in teaching and health care delivery)

6. Anyone can be a boot strapper, i.e. pull themselves up from debilitating situations. All it takes is a little grit. (Never mind the mentally ill, the addicted, the frail elderly who lost all their retirement money to Bernie Madoff. Buck up Granny and grab your bootstraps.)

7. Taxes are evil. (A rational discussion of resources required to shepherd our country is not possible, not in the race to the global lowest common denominator on taxes and worker pay/benefits. Congress' corporate sponsors get value for their donations.)

8. The liberal media is the Fourth Estate, holding the other three estates in check. (Corporate owned media is not close to fulfilling its sacred mission. Most talking heads are a diversion, many are a perversion.)

9. Virtually every important freedom is limited, the right to bear arms, the right to pray, free speech, the right to drill for oil offshore, the right to invade any country we want for whatever reason we want, and the right to donate freely to political candidates.

10. Satan did it. He likes making Republicans look bad more so than Democrats, because Democrats are on Satan's side.
(When Repugnican'ts mess up, it's clearly the Damnocrats fault.)

As an independent voter, I find most political rhetoric off base, a tool for manipulation. Our elected leaders operate from bad management theory. Ignorance means most solutions will make matters worse.

Tuesday, June 30, 2009

Frances Townsend Lands Intelligence Association Board Chair


Baker Botts L.L.P. Partner Frances Fragos Townsend has been named chairman of the Board of Directors of the Intelligence and National Security Alliance. INSA is a nonprofit, non-ideological, professional association created to improve our nation's security.

One might expect a professional association to appoint a professional as their Board Chair. Frances Townsend omitted any mention of the hospital with the highest death toll from the Bush White House Lessons Learned report on Hurricane Katrina.

James A. Baker, III is one connection between Fran's employment and her hapless investigation. Baker has long time ties to The Carlyle Group, a politically connected private equity underwriter. Carlyle owned LifeCare Hospitals, which lost 24 patients in Katrina.

Mr. Baker surely knew of this omission when he created a consulting division for Fran in his law firm. James has a similar reputation in performing investigations. He conducted one Texas City BP explosion study, which killed 15 workers. His report went soft on CEO Lord John Browne. Shortly after the report's release, the good Lord landed a job with Carlyle's energy joint venture, Riverstone Holdings.

How much intelligence does it take to note something stinky? In addition to Fran's omission, Carlye and Riverstone paid the New York Attorney General a combined $50 million to make a pay for play investigation go away. Can you bribe your way out of a bribery investigation? That's something worth investigating, but INSA won't do it, not under Mrs. Townsend's Chairwomanship. That pattern is clear.

Monday, June 29, 2009

Carlyle Group's Short Term Management & Political Favors




The Carlyle Group purchased LifeCare Hospitals in August 2005 and Synagro Technologies in April 2007. The private equity underwriter (PEU) promotes its operational expertise in managing affiliates for maximum sale value. It charges affiliates 2% per year for management services.

Synagro Technologies bribed Moncia Conyers, the wife of Rep. John Conyers, in November 2007. Monice plead guilty to receiving two payments from Synagro in return for her vote on their sewage sludge and incinerator contract. Synagro or their representatives are yet to be charged.

The Carlyle Group and its joint venture energy investment, Riverstone Holdings, paid a combined $50 million to the New York Attorney General. The money settled their legal "pay to play" liability regarding New York pension fund investment placements. The bribes, or what look like bribes, seem to multiply.

LifeCare Hospitals lost 24 patients in the aftermath of Hurricane Katrina. While HCA helicoptered patients from their dead New Orleans facilities, Tenet and LifeCare let patients and staff swelter in toxic gumbo for five hellish days. Carlyle's innovative defense in wrongful death law suits involves blaming the feds. They suggest patients became wards of the government as soon as FEMA evacuation teams set up in New Orleans. How are people miles away from an acute care hospital clinically responsible for patients?

None of the above facts made the White House Lessons Learned report on Hurricane Katrina. No Carlyle Group's LifeCare and their 24 deaths, no Tenet's 10 patient deaths in Memorial Medical Center, no mention of the hospital facility with the highest death toll. Thirty four patients died in Memorial. The political connections are disturbing.

During the Bush years, the Carlyle Group was portrayed as a key part of the Bush cabal. It turns out they're a bipartisan PEU.

Friday, June 26, 2009

Congress Fails Miserably in Representing the People


What happens when 70% of Americans favor something, but Congress ignores their will? Consider the following examples:

1. Over 70% favor a government run, public health insurance option. Congress and the White House scramble to offer a not for profit insurance co-op in place of a government plan.

2. Over 70% of federal employees, under pay for performance plans, find the system unfair. A mere 26% find the rating and pay process equitable.

Senators Max Baucus and Kent Conrad are behind #1. Both get major donations from for-profit health care corporations, many with no facilities in their states of Montana and North Dakota.

Senator Evan Bayh wants pay for performance to solve the ills of education, while President Obama thinks P4P will rescue health care. The ignorance is palpable.

Citizens should be concerned that corporate sponsors outweigh the public will.

PEU's & Systemic Risk


Private equity underwriters claim they pose no systemic risk to the economy. They suggest a long term investment horizon makes up for their past sins of excess leverage and greed based income model. The WSJ reported on PEU's:

Filings unsealed by federal regulators allege Danny Pang walked away with at least $83 million before the seizure of his investment firm, Private Equity Management Group. Additionally, estimates of potential losses by Pang’s investors have escalated to as much as $654 million - or nearly 80% of the $823 million investors are still owed.

No risk? Hardly. Add risky financial bets to the equation and the mendacity grows exponentially. This is the group President Obama caters to with his infrastructure bank, financial public-private partnerships, and FDIC sales of bad banks.

The Carlyle Group is a virtual one stop PEU shop for Uncle Sam. They bought BankUnited with a $4.9 billion government subsidy, free of TARP restrictions. Carlyle has an infrastructure fund ready to invest in public works projects. From Booz, Allen, Hamilton to ARINC, Carlyle affiliates garner huge chunks of government business.

Swine Flu in U.S. Hits 1 Million


The Centers for Disease Control estimates 1,000,000 Americans have the H1N1 swine flu. It took five weeks for the number to reach 100,000, then another five weeks to his the million mark. What happens in the next five to ten weeks?

Thursday, June 25, 2009

Imploded Wall Street Goes Lobbying


The greed and leverage boys funnel money to elected officials in Washington, D.C. Bloomberg reported:

Wall Street’s largest trade group has started a campaign to counter the “populist” backlash against bankers, enlisting two former aides to Treasury Secretary Henry Paulson to spearhead the effort.
How much did consultants charge for "populist backlash"? Why aren't citizen's concerns reasoned? Is it populist to expect a financial firm to package quality products and stand behind them? Do citizens grab rakes and march over 30 to 1 or 40 to 1 debt to equity? I've never seen anyone protest excessive leverage.

Wall Street likely killed investing for a generation or more, but that's not their concern. Are people demanding salmonella contaminated peanut butter from PCA? Who wants Chinese tainted heparin before their next heart operation? Of course not. That's why they're reframing dissatisfied customers as "populists":

The outside consultants join SIFMA staff for a daily 10:00 a.m. conference call, “given the importance, complexity and real-time nature of the campaign style-implementation,” according to one of the memos.

Who's advising SIFMA?

To advise on the strategy, the trade group turned to a bipartisan roster of consultants. Such advice doesn’t come cheap and SIFMA is discussing dipping into its reserves to cover some of the costs, according to one memo.

Michele Davis, Paulson’s former spokeswoman, and Jim Wilkinson, his former chief of staff, are among those leading the effort. SIFMA is paying their firm, Brunswick Group LLC, a monthly retainer of $70,000, the documents show. Both Davis and Wilkinson declined to comment. Paulson left office in January.

Assisting them is a Democratic polling company, Brilliant Corners Research and Strategies, which is paid $5,000 a month. It is run by pollster Cornell Belcher, who worked on President Barack Obama’s campaign. BKSH & Associates Worldwide, a lobbying firm chaired by Republican strategist Charlie Black, signed on for $10,000.


Is there any link to Business Forward, the blue version of K Street? Brunswick Group lobbyists are behind Business Forward, a club for the big money boys to garner insider access to the White House.

Beware the next campaign. The last one produced soaring rhetoric, followed by Bush like implementation. Corporafornication lives, sponsored by the blue and red teams.

The greed and leverage boys will win. The current system of purchased politicians and campaign style implementation assures it. A pox on the red and blue political houses.

Wednesday, June 24, 2009

Southern Governors Go South to Buenos Aires


South Carolina Governor Mark Sanford and former Arkansas Governor Bill Clinton recently visited Buenos Aires, Argentina. Clinton raised money for his Global Initiative, with varying reports of his dalliances. Sanford supposedly hiked the Appalachian Trail, which runs from North Georgia to Maine. He confessed to wanting something "more exotic."

What caused Sanford's detour and surprise absence? Maybe Mark heard about Andrea Rincón, a shocking “morocha” (brunette) who's well-endowed and a former participant in the popular TV reality show “Big Brother”? Did all the stimulus talk inspire either Governor to pursue a lap dance?

(Note: the Governor's press conference revealed an extra-marital affair. Mark Sanford said he spent five days weeping in Argentina. Don't cry for Governor Sanford, Argentina! However, South Carolina taxpayers may gnash their teeth over footing his travel bills to Argentina.)

Lucky Max Baucus Represents Virtual Montanans


Senate Finance Chair Max Baucus plays a key role in health care reform. The NYT reported:

“I think I’m the luckiest guy in the world,” he said in an interview in his office. “Here I am representing Montana in the United States Senate. I am at the point to be able to do something really significant, really meaningful, and it must be done.”
Representing Montana? Really? Senator Baucus took campaign donations from eight for-profit health care companies with no, as in zero, facilities in his state.

Between Dirty Max, the Obama team's Chamber of Commerce reform lingo, Obama's appointment of a for-profit insider Health Czar, and a mostly purchased Congress, signs point to health care deform.

Obama-Led Democrats Plan to Cave


In his press conference, President Obama called for a "public option that's not profit driven."

Linda Douglas, Communications Director for the Office of Health Care Reform spoke on MSNBC. Linda said "if you have a not for-profit alternative."

A non-profit co-op faces significant start up costs and will be at an early competitive disadvantage. Current nonprofit co-ops have not solved the health insurance ills in various regions of the country.

Dirty Democrats plan to pander to their for-profit health care sponsors. Obama appointed a for-profit insider, Nancy-Ann DeParle as his health care czar. Why is the White House hiding Health Reform Czar Nancy-Ann DeParle? She is absent from the airwaves and Capital reform public testimonial sessions, but her handiwork made the news. Greed is as greed does. Co-op means co-opted.

Deform is coming.

(In the picture above, President Obama is surrounded by politicians with huge for-profit healthcare sponsorship. Many donations come from firms with no facilities in the Senator's state)