Showing posts with label debacle. Show all posts
Showing posts with label debacle. Show all posts

Monday, March 3, 2014

Bitcoin Debacle Shatters the Myth of Virtual Money



Bitcoin believers were shaken to their digital souls when Mt. Gox, the world’s largest exchange, defaulted on $ 470 billion worth of deposits and closed.


The virtual currency was supposed to provide a safer, more private and less costly alternative to money issued by governments, but lacking the imprimatur of a sovereign is failing.


Fundamentally, money provides a secure place to keep your wealth—you can store your savings for later use at a government guaranteed bank. And it eliminates the inconvenience of barter—a necessity for even the most rudimentary market economy.


Money permits a nightclub singer to buy bread from a baker who gets his music from iTunes. All accept dollars, because the U.S. government declares those to be “legal tender for all debts public and private.”


You can do business through barter or some alternative currency. However, workers, suppliers and landlords expect to be paid in dollars, and the IRS will require dollars at tax time for income earned through barter.


What gives money its value are the goods and services that may be purchased and taxes paid within the sovereign jurisdiction of the issuing government.


The earliest currencies were coins, often with the face of the sovereign stamped on gold or silver to instill confidence. Yet, governments minted coins with non-precious metals, and the Chinese issued paper money more than two thousand years ago.


The creators of Bitcoin and advocates of virtual currencies are fixated by the temptation of governments to print too much and destroy its value through inflation. However, inflation is hardly a problem in the United States, Europe and Japan, and central banks in other countries hold dollars, euro and yen to back up their currencies.


Bitcoin is created by ordinary folks solving increasingly difficult mathematical problems defined by the virtual currency’s creator, and like gold, is naturally limited in supply. It is stored in virtual wallets on private computers, or deposited at exchanges like Mt. Gox. These function much like commercial banks but are not guaranteed for safety by the FDIC, Federal Reserve and similar regulatory agencies around the world.


There is no “Bitland” where a government has declared it legal tender to buy goods and services and pay taxes. Lacking such a tangible connection to the real economy, it is very hard to value day-to-day, never mind next year.


Bitcoin traded for $ 1,117 on December 4, and now commands only about half that amount.


It is no place for your children’s college fund or retirement savings.


Bitcoin is hardly secure. A hacker can steal it from your digital wallet or an exchange that holds your deposits, just as pirates stole bank debit and credit card numbers from Target. And the government does not stand ready to back up Bitcoin exchanges that lose your money or identity to thieves.


A 2013 study found some 45 percent of all Bitcoin exchanges closed, taking their depositors money with them.


Bitcoin is supposed to be more private, because unlike commercial banks, its exchanges are not monitored by regulators, and its private payments system charges lower fees than do Visa and MasterCard.


However, personal and business transactions can be spied by hackers or government security agencies through its fairly open payments system. The government can subpoena your Bitcoin records or those of your exchange when it needs.


Factoring in such risks and potential intrusions, Bitcoin is a lot less private and more expensive to use than advertised.


Detractors of paper money have always been fixated by the absence of gold to back it up, but they fail to recognize what really makes a currency accepted and secure—the government guarantee and the good sense of the sovereign not to abuse its franchise.


It’s not the gold but the face of Caesar—the promise his image carries—that makes a coin money. 




Morici is an economist and professor at the University of Maryland Robert H. Smith School of Business. Follow him on Twitter, @pmorici1.




RealClearPolitics – Articles



Bitcoin Debacle Shatters the Myth of Virtual Money

Thursday, January 2, 2014

Professor blames "southern white radicals" for Obamacare debacle

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Professor blames "southern white radicals" for Obamacare debacle

Saturday, November 16, 2013

GOP Use Obamacare Debacle to Political Advantage

Republicans are using the Obamacare rollout debacle to their political advantage and putting together lists of Democratic lawmakers who are on record parroting President Barack Obama’s promise that Americans could keep their current health insurance to use against them in 2014.

Attack ads have already begun against Democratic Rep. Nick Rahall of West Virginia who is trying to make good on his promise by voting for the GOP bill that was before the House Friday, which,  if passed,  will allow insurers to keep selling the millions of health care policies that they have had to cancel because they don’t comply with the new health care law requirements.


“I’m concerned about my integrity with voters who have returned me here 38 years,” Rahall said. “They know me enough to know I wouldn’t purposely mislead them. They have that confidence in me, and I want them to continue to have that confidence in me.”


The measure passed 261-157 in the House with 39 votes from Democrats, even though Obama has promised to veto it.


The National Republican Congressional Committee put out press releases Friday against Democratic House members who have supported and defended Obamacare.


Rahall was among those that the NRCC  is launching a campaign against.


“With Obamacare proving to be a total disaster — from the botched website to the broken promises — it is no surprise that Rahall is now desperate to hide his support,” the NRCC press release against Rahall states. “But it’s too late — Nick Rahall is part of the problem. Because of his support for Obamacare, things are only going to get worse for West Virginia families.”


The NRCC lists the number of times Rahall voted for the health care law and voted against repealing it. The House Republican campaign arm also includes a list of 17 other Democrat lawmakers that the group has sent out similar press releases about.


“There’s nothing more damaging than when your word is devalued and people think they were misled,” said Republican Rep. Greg Walden of Oregon, NRCC head. “And especially damaging is when it actually affects you and your family. So in terms of degree of impact, this is off the Richter scale.”


Several Republican political action committees are also targeting Democratic lawmakers.


America Rising is putting up a collection of videos of various congressmen making Obamacare pledges similar to the one the president made, and Americans for Prosperity is already attack ads against Rahall and Democratic Sen. Kay Hagan of North Carolina.


Obama announced a “fix” Thursday saying that insurers are able to continue offering plans that are supposed to be canceled under Obamacare for one year.


“Unfortunately, the implementation of Obamacare has progressed to a point where millions of cancelled plans cannot be reinstated,” said Republican Sen. Ron Johnson of Wisconsin. “But the freedom of millions of Americans to keep doctors, treatments, and health plans they do value can still be preserved if Congress acts swiftly and decisively.”


According to Politico, the Wisconsin senator said Saturday that he will introduce a bill in the Senate that offers a “long-term” solution to the Obamacare debacle, “not a short-term political” fix like the one offered by “the President and Senate Democrats that simply will not work.”


He called Obama’s apology to Americans who lost their insurance as “phony as his fraudulent marketing of Obamacare.”


Johnson added that those who have supported the new health care law should be held accountable and be replaced in 2014.


The Democratic Congressional Campaign Committee head Rep. Steve Israel of New York said that a lot can change in a year and that by Republicans focusing on the health care law, they risk alienating “independent and moderate voters” who “are more interested in solutions.”


However, former Democratic Rep. Martin Frost of Texas said that if he “were still in Congress, I’d be concerned.”
 
Watch the Rahall ‘Broken Promises’ Ad below:


And the Americans for Prosperity Kay Hagan ad:


Related Stories:


© 2013 Newsmax. All rights reserved.




Newsmax – Politics



GOP Use Obamacare Debacle to Political Advantage

Thursday, October 24, 2013

30th Anniverary of Beirut Marine Corps Bombing Debacle


Yesterday was the 30th anniversary of the bombing of the U.S. Marine barracks in Beirut. The incursion into Lebanon was one of the biggest debacles of the Reagan administration.  Unfortunately, though Reagan eventually recognized his folly and pulled troops out, other presidents did not recognize the tragic lessons of the pointless loss of American troops.


Here’s a piece I wrote ten years ago on the Lebanon debacle for Counterpunch  (excerpted from my 2003 book, Terrorism and Tyranny: Trampling Freedom, Justice, and Peace to Rid the World of Evil (St. Martin’s/Palgrave).


Counterpunch, October 8, 2003


by James Bovard


In his televised speech to the nation on September 7, President Bush declared, “In the past, the terrorists have cited the examples of Beirut and Somalia, claiming that if you inflict harm on Americans, we will run from a challenge. In this, they are mistaken.” There are many parallels between the 1982-84 U.S. deployment and decimation of U.S. troops in Beirut and the current Iraqi situation. None of them bode well for the success of Operation Iraqi Freedom or the life expectancy of American troops.


Few Americans remember the bitter details of one of Reagan’s biggest foreign debacles. Lebanon had been wracked by a brutal civil war for seven years when, in June 1982, Israel invaded in order to crush the Palestinian Liberation Organization. U.S. troops were briefly deployed in August in Beirut to help secure a ceasefire to facilitate the withdrawal of the PLO forces to Tunisia.


U.S. troops exited Beirut after the PLO withdrawal was largely completed. However, in mid-September 1982, the massacre of more than 700 Palestinian refugees threatened to plunge Lebanon into total chaos. Lebanese Christian Phalangist militia butchered residents of the Sabra and Shatila refugee camps; the militia was armed, aided, and fed by the Israeli Defense Force, which surrounded and blockaded the camps.


The Lebanese government appealed to President Reagan to send American troops back into Beirut as a stabilizing factor, and Reagan quickly obliged. As fighting escalated between Christians, Muslims, Syrians, and Israelis in Lebanon, the original U.S. peacekeeping mission became a farce. The U.S. forces were training and equipping the Lebanese army, which was increasingly perceived as a pro-Christian, anti-Muslim force. (Most Lebanese are Muslim).


On April 18, 1983 a delivery van pulled up to the front door of the U.S. embassy in Beirut and detonated, collapsing the building and killing 46 people (including 16 Americans) and wounding over a hundred others. The U.S. embassy was a sitting duck for the terrorist assault: unlike many other U.S. embassies in hostile environments, it had no sturdy outer wall. Newsweek noted: “Delivery vehicles are supposed to go to the rear of the building. Why Lebanese police guarding the embassy driveway would have made an exception in the case of the black van remained a mystery.” The attack lacked novelty value, since the Iraqi and French embassies had been wrecked by similar car bomb attacks in the preceding 18 months.


Five days later, on April 23, 1983, Reagan announced to the press: “The tragic and brutal attack on our embassy in Beirut has shocked us all and filled us with grief. Yet, because of this latest crime we are more resolved than ever to help achieve the urgent and total withdrawal of all American forces from Lebanon, or I should say, all foreign forces. I’m sorry. Mistake.” But the actual mistake was a U.S. policy that would cost hundreds of Americans their lives.


By late summer 1983, the Marines were being targeted by Muslim snipers. In the same way that some Bush administration officials are shocked by the Iraqi resistance to American troops, Reagan administration officials seemed surprised at rising attacks on American soldiers.


The Reagan administration responded to sniper potshots and scattered mortar attacks on U.S. troops with a massive escalation. On September 13, Reagan authorized Marine commanders in Lebanon to call in air strikes and other attacks against the Muslims to help the Christian Lebanese army. Defense Secretary Caspar Weinberger vigorously opposed the new policy, fearing it would make American troops far more vulnerable. Navy ships repeatedly bombarded the Muslims over the next few weeks.


At 6:20 A.M. on Sunday morning, October 23, 1983, a lone, grinning Muslim drove a Mercedes truck through a parking lot, past two Marine guard posts, through an open gate, and into the lobby of the Marine headquarters building in Beirut, where he detonated the equivalent of six tons of explosives. The explosion left a 30-foot-deep crater and killed 243 marines. A second truck bomb moments later killed 58 French soldiers.


Colin Powell, who was then a major general, commented in his autobiography: “Since [the Muslims] could not reach the battleship, they found a more vulnerable target, the exposed Marines at the airport.” A surprise attack on a troop concentration in a combat zone does not fit most definitions of terrorism. However, Reagan perennially portrayed the attack as a terrorist incident and the American media and political establishment accepted that label.


Reagan administration officials scrambled to assert that the administration was blameless. White House press spokesman Larry Speakes declared on the day of the attack that the bombing “definitely was a difficult situation for us” since “people come out of nowhere and perform these acts.” Vice President George H.W. Bush rationalized: “It’s awfully hard to guard against that kind of terrorism.” Defense Secretary Weinberger announced that “nothing can work against a suicide attack like that, any more than you can do anything against a kamikaze flight.” Actually, during World War II, the U.S. Navy quickly responded by placing rows of antiaircraft guns on the sides of its big ships.


In the aftermath of the Marine barracks bombing, Reagan’s creativity with the facts matched George W. Bush’s Iraq tales. In a televised speech four days after the bombing, Reagan portrayed the attack as unstoppable, declaring that the truck “crashed through a series of barriers, including a chain-link fence and barbed-wire entanglements. The guards opened fire, but it was too late.” Reagan claimed the attack proved the U.S. mission was succeeding: “Would the terrorists have launched their suicide attacks against the multinational force if it were not doing its job? . . . It is accomplishing its mission.” He warned that a U.S. withdrawal could result in the Middle East being “incorporated into the Soviet bloc.” Reagan also declared that the U.S. was involved in the Middle East in part to secure a “solution to the Palestinian problem.”


Reagan sent Marine Corps commander Paul X. Kelley to Beirut. Kelley quickly announced that he was “totally satisfied” with the security around the barracks at the time of the bombing. Upon returning to Washington, Kelley was summoned to Capitol Hill and bragged to Congress: “In a 13-month period, no marine billeted in the building [destroyed by the truck bomb] was killed or injured” from incoming fire. Kelley inaccurately testified that the Marine guards had loaded weapons and that two of them had been killed in the attack. When congressmen persisted questioning, Kelley became enraged and shouted: “We’re talking about clips in weapons, but we’re not talking about the people who did it. I want to find the perpetrators. I want to bring them to justice! You have to allow me this one moment of anger.”


Even though there had already been numerous major car bombings in Beirut that year and scores of other suicide attacks, Kelley told the committee that the truck bombing “represents a new and unique terrorist threat, one that could not have been anticipated by any commander.” Kelley denied the Marines received any warning of an impending attack. However, on the morning of Kelley’s second day of testimony, the New York Times reported that the CIA specifically warned the Marines three days ahead of time that an Iranian-linked group was planning an attack against them.


Other military officials involved in Lebanon also denied any culpability. Vice Admiral Edward Martin, the commander of the Sixth Fleet, declared: “The only person I can see who was responsible was the driver of that truck.” Martin stressed in an interview: “You have to remember that prior to Oct. 23, there hadn’t been any real terrorism threat.” A New York Times investigation concluded: “Marine officers in Beirut and the admirals and generals in the chain of command above them did not consider terrorism to be a primary threat even after the embassy bombing, and even though Beirut had been full of terrorists for years.”


Shortly after the bombing, Reagan appointed a Pentagon commission headed by retired Admiral Robert Long to investigate. The commission report, finished in mid-December 1983, concluded that military commanders in Lebanon and all the way back to Washington failed to take obvious steps to protect the soldiers. The commission suggested that many fatalities might have been prevented if guards had carried loaded weapons. The report stated that the only barrier the truck overcame was some barbed wire that it easily drove over. The commission also noted that the “prevalent view” among U.S. commanders was that there was a direct link between the Navy shelling of the Muslims and the truck bomb attack.


When the White House saw the final version of the commission’s report, they issued a stop order. The Washington Post reported that the White House “delayed release of the report for several days, allowing Reagan to respond to its criticism before it became public, and then attempted to play down its impact by vetoing a Pentagon news conference on the document.”On December 27, 1983 Reagan revealed that “we have never before faced a situation in which others routinely sponsor and facilitate acts of violence against us.” Reagan sought to make the report “old news”: “Nearly all the measures that were identified by the distinguished members of the Commission have already been implemented and those that have not will be very quickly.” Reagan announced that the Marine commanders in Beirut “have already suffered enough” and should not “be punished for not fully comprehending the nature of today’s terrorist threat.” Reagan then effectively declared that no one would be held accountable: “If there is to be blame, it properly rests here in this office and with this president,” he announced, just before leaving Washington for a vacation in Palm Springs, California.


The Reagan administration blamed its antiterrorist failures on the Carter administration. White House press spokesman Larry Speakes announced: “We don’t quarrel with the fact that the CIA and other intelligence-gathering agencies have been crippled by decisions of the previous administration, and we are in the process of rebuilding capabilities. But it takes time . . . to re-establish our intelligence-gathering methods.”


The following September, shortly after a suicide bomber again obliterated much of the poorly-defended U.S. embassy in Beirut, Reagan blamed the debacle on Carter administration CIA cutbacks: “We’re feeling the effects today of the near destruction of our intelligence capability in recent years before we came here.” Reagan falsely asserted that the Carter administration had “to a large extent” gotten “rid of our intelligence agents.”


Reagan quietly withdrew U.S. combat troops from Beirut in early 1984. During the 1984 presidential election, the Reagan administration also responded to its Beirut debacles by attacking the patriotism of Democrats. In the vice presidential candidates debate, George H. W. Bush denounced Democratic candidate Walter Mondale and his vice presidential pick, Geraldine Ferraro: “For somebody to suggest, as our opponents have, that these men died in shame, they had better not tell the parents of those young marines.” Neither Mondale nor Ferraro had said that the Marines “died in shame.” Bush denounced Mondale for running a “mean-spirited campaign”: “We’ve seen Walter Mondale take a human tragedy in the Middle East and try to turn it to personal political advantage.” But Mondale’s criticisms of the Reagan administration’s failures in Lebanon were less strident than Reagan’s criticisms of Jimmy Carter for the Iran hostage crisis during the 1980 presidential campaign.


Muslims also responded to U.S. troops by seizing American hostages. Reagan sent military equipment to Iran as a means to entice the Iranians to exert pressure to get hostages released. After the “arms for hostages” deal became public (along with the illegal funneling of the proceeds to the Nicaraguan Contras), Reagan’s credibility was devastated. Reagan went into such a tailspin after the crisis broke that his new chief of staff, Howard Baker, briefly examined invoking the Twenty-Fifth Amendment to remove Reagan from office because of medical unfitness. The Tower Commission report on the debacle concluded: “The arms-for-hostages trades rewarded a regime that clearly supported terrorism and hostage-taking.”


The 1982-84 deployment of U.S. troops in Beirut achieved nothing. And, contrary to the arguments of today’s hardliners, a larger, longer deployment would have merely boosted the number of body bags arriving at Dover Air Force base. The Israelis were far more aggressive against perceived opponents in Lebanon than were the American troops. But even the Israelis were effectively driven out of Lebanon over a decade and a half later, after failing to suppress Hezbollah and losing more than twice as many soldiers there as it lost during the 1967 Six Day War.


The Reagan administration paid no political price for its Beirut debacle. Reagan and Bush Sr. succeeded in falsifying, blustering, and smearing their way out of political trouble. Now, two decades later, the only “lesson” that seems to be recalled is to stick resolutely to floundering policies – at least until the number of dead soldiers threatens to become politically toxic.






Antiwar.com Blog



30th Anniverary of Beirut Marine Corps Bombing Debacle

Friday, June 21, 2013

Greek party quits coalition over state TV debacle

ATHENS (Reuters) – The smallest party in Greece’s ruling coalition pulled out of the government on Friday after a row over the abrupt closure of the state broadcaster, leaving Prime Minister Antonis Samaras with a tiny majority in parliament.



Reuters: Top News



Greek party quits coalition over state TV debacle