PATH: BS | Business | Corporate Welfare

Alabama Fed Up With Red Cross

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Frustrated with the performance of the American Red Cross, Alabama's Gov. Bob Riley has asked Homeland Security Secretary Michael Chertoff for the federal aid necessary to let the state assume primary responsibility for operating its own emergency shelters in disasters. The move comes after months of criticism of the Red Cross, inspired by what even the organization's own leaders acknowledge was its inadequate response to Hurricane Katrina.

Now there's donation money well spent!

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Citizens Against Government Waste: "Watchdog" For Sale

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Citizens Against Government Waste made a name for itself by exposing government waste. But it has quietly made a lot of its money by lobbying.

Ron Campbell, a lobbyist from SPS Consultants, successfully ran Mexican avocado growers campaign in 2004 to expand access to the U.S. market. To overcome opposition from Californian avocado growers Campbell gave Citizens Against Government Waste (CAGW) $100,000 to generate a 'grassroots' lobbying campaign to support his clients.

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Army Bans Soldier/Family/Private-Purchased Body Armor

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Soldiers will no longer be allowed to wear body armor other than the protective gear issued by the military, Army officials said Thursday, the latest twist in a running battle over the equipment the Pentagon gives its troops in Iraq and Afghanistan.

The army claims that they don't want non-military-approved body armor on their troops, but common sense dictates that if a troop is asking his family to send him body armor, it's likely because he doesn't have any in the first place!

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Think Tanks For Sale

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[Dubious Research]
Slate.com has kicked off their new Hot Documents feature with a series of emails between disgraced Republican lobbyist Jack Abramoff and Amy Ridenour, Executive Director of the right-wing National Center for Public Policy Research. In their gushing exchange, it is clear that Ridenour can't do enough to make sure that Abramoff's clients are pleased with their investments.

National Center for Public Policy Research... ooh that sounds so official and non-partisian doesn't it? Just like the CATO institute and all those other total BS organizations that are basically whores for select corporate interests. Slate has a cool article which shows some of the insider e-mail dialogue between these think tanks and their pimps.

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Landmark Patent Case Before the Supreme Court

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The Supreme Court will hear arguments Wednesday in a patent case involving online auctioneer eBay Inc. that is part of a wider patent battle which has implications for both the software and pharmaceutical industries.

Another company claims to have the patent on eBay's "Buy it now" feature, and the case has now gone all the way to the SCOTUS.

On one side you have people and companies that feel patents have become too broad and are hurting commerce and innovation; on the other, you have powerful pharmaceutical companies, who enjoy patent protection as a means of justifying research and investment.

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Red Cross Blows Donation Money on Publicists & Movie Stars

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The American Red Cross has come under fire over payments to publicists who recruited stars to add lustre to its image, even as funds ran short for victims of Hurricane Katrina.

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Buy Nothing For Christmas

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This Christmas we'll be swamped with offers, ads and invitations to buy more stuff. But now there's a way to say enough and join a movement dedicated to reviving the original meaning of Christmas giving.

Buy Nothing Christmas is a national initiative started by Canadian Mennonites but open to everyone with a thirst for change and a desire for action.

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New Orleans Mayor Proposes Gambling As Solution To City Problems

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Mayor Ray Nagin called Friday for Las Vegas-style gambling in hurricane-hit New Orleans in a desperate attempt to quickly heal its battered lifeblood industry -- tourism. "Now is the time for us to think out of the box," Nagin said.

Wonderful news. If you haven't lost everything already, you can do so in any downtown hotel.

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United Airlines Secures $3B Loan

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[Travel]
United Airlines on Thursday said JP Morgan and Citigroup have agreed to arrange a $3 billion all-debt financing package to help the No. 2 U.S. carrier exit bankruptcy in February.

If at first you don't succeed, get some banks to bail you out.

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Delta Airlines File For Chapter 11 Bankruptcy

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[Travel]
IMO, the only American airline worth flying, as of Wednesday, filed Chapter 11, citing high oil prices and cheap competition. Apparently Northwest Airlines will do so this week as well.

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Anatomy of How Congress Works (or Doesn't Work)

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Rolling Stone has produced an epic outline of the behind-the-scenes deals involved in getting bills passed in the U.S. Government and the story is informative and downright frightening. When one discovers the handouts their tax dollars are paying for, such as $100,000 for a single street light, and the unbridaled cronyism and corporate control in government, you may never look at Congress the same again.

...When Rep. Chris Smith complained about Bush's policy toward veterans, he was relieved of his seat as the Veterans' Committee chairman. When Joel Hefley locked horns with Dennis Hastert during the Tom DeLay ethics flap, Hefley lost his spot as the House Ethics Committee chairman.

...The Rules Committee is supposed to wait out a three-day period before sending the bill to the House, ostensibly in order to give the members a chance to read the bill. The three-day period is only supposed to be waived in case of emergency. However, the Rules Committee of DeLay and Dreier waives the three-day period as a matter of routine. This forces members of Congress to essentially cast blind yes-or-no votes to bills whose contents are likely to be an absolute mystery to them.

...The Export-Import bank loan was a policy so dumb and violently opposed to American interests that lawmakers who voted for it had serious trouble coming up with a plausible excuse for approving it. In essence, the U.S. was giving $5 billion to a state-subsidized British utility (Westinghouse is a subsidiary of British Nuclear Fuels) to build up the infrastructure of our biggest trade competitor (CHINA), along the way sharing advanced nuclear technology with a Chinese conglomerate that had, in the past, shared nuclear know-how with Iran and Pakistan.

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Top Ten Dot-Com Flops

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CNet has an interesting article on the top 10 dot-com business flops of all time. It's of particular amusement to us, because this site is running on a server we purchased at a liquidation auction from the company listed as #5.

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North Carolina Whores Itself to Dell for 1600 Jobs

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Winston-Salem politicians wanted so much to woo Dell to their state they gave away land, then created a phony payback scheme to cover their tracks.

After pumping North Carolina for more than $270m, Dell decided it wasn't done yet. Actually pay for the land its new factory will sit on? Hell, no!

In a confusing exchange deal, Dell will "pay" the city of Winston-Salem $7m for land in return for $7m worth of roads and grants from the city to Dell, so it gains the 200-acre factory site for free. Dell currently faces a massive lawsuit over other parts of the North Carolina package.

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Cheney Pimps Out To The Tune of $5B More

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[Terroir-ism]
The U.S. military has signed on Halliburton to do nearly $5 billion in new work in Iraq under a giant logistics contract that has so far earned the Texas-based firm $9.1 billion, the Army said on Wednesday.

No conflict of interests here obviously. Better to give Halliburton $5 Billion than treat the veterans with better healthcare or give the soldiers armor and stuff they need. No word if any of that money will go to China for more "Support Our Troops" bumper stickers.

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Supreme Court Sets Another Scary Precedent

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In the case of Grokster vs MGM, the court basically ruled that there was indeed a case for Grokster being liable for the copyright infringement perpetrated by the software's users.

With a precedent like this, almost any manufacturer of any object that could be used illegally might be held liable for the negligence of one of its users.

Think about it like this: Apparently the case centered around the degree to which these software products may have been designed to perpetrate illegal activity. Along those lines, wouldn't there be evidence to indicate that more guns are used illegally than legally and therefore all gun manufacturers should be held liable for the crimes committed by those using their products?

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"Center for Consumer Freedom" Takes Aim At PETA

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Richard Berman, a professional lobbyist, and head of the organization, Center for Consumer Freedom (which ultimately is a shill for fast food, tobacco and other industries that have a vested interest in smokescreening concern over carcinogens and wholesale animal cruelty & slaughter) has in the past criticized anyone who threatened the profitability of his clients, whether it was to discredit Mothers Against Drunk Driving, stop government education to consumers on the dangers of Salmonella, or sabotaging efforts to raise minimum wage by purchasing influence among politicians such as Newt Gingrich. This high powered professional propagandist organization's next target? PETA, who has managed to get some fast food places to pay more attention to their meat harvesting procedures.

I'm no big PETA supporter; I think both extremes of the spectrum, from rabid pro-lifers to radical animal rights groups need to mellow out a bit. There seems to be no public word that I can find in response to the attack on PETA, but one thing is for sure, the people behind it have just as many skeletons in their closet, so it's time to call BS.

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Movie Studios Use Foreign Tax Loops To Make Big Bucks

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[Get-Rich-Quick]
As paradoxical and absurd as it sounds, it's cheaper for a Hollywood studio to make a big-budget action movie than to make a shoestring art film like Sideways. The reason for this has a lot to do with various regions around the world that offer tax incentives to studios and those investing in movie production. In many cases, the big studios have concocted elaborate schemes to temporarily transfer ownership of films to foreign holders to generate millions of dollars in instant profit, especially when the actual movies often cost a fraction of their so-called "big budget."

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PA Republican Wants To Stop Free Weather Reports

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Pennsylvania representative Rick Santorum, under the control of corporate interests who run commercial weather services, is introducing legislation to shut down the free weather information available online from the National Weather Service. This is taxpayer-funded, valuable information available to the people that is encroaching on profits of select corporate interests and they're buying politicians to shut it down. Shame Shame.

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Environmental Protection Agency Changes Its Name

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EPA To Drop 'E,' 'P' From Name

WASHINGTON, DC — Days after unveiling new power-plant pollution regulations that rely on an industry-favored market-trading approach to cutting mercury emissions, EPA Acting Administrator Stephen Johnson announced that the agency will remove the "E" and "P" from its name. "We're not really 'environmental' anymore, and we certainly aren't 'protecting' anything," Johnson said. "'The Agency' is a name that reflects our current agenda and encapsulates our new function as a government-funded body devoted to handling documents, scheduling meetings, and fielding phone calls." The change comes on the heels of the Department of Health and Human Services' January decision to shorten its name to the Department of Services.

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AOL Pays Millions to SEC to Make Fraud Charges Go Away

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In a statement the SEC said: "The Commission today charged Time Warner Inc. with securities fraud for materially overstating online advertising revenue and the number of its Internet subscribers and aiding and abetting three other securities frauds.

"Without admitting or denying the allegations in the complaint, Time Warner consented to the entry of a judgement that, among other things, orders it to pay $300m in civil penalties," it said.

You gotta love corporate America. Let's kick back a few hundred mil to the government and "neither admit nor deny any wrongdoing." Ok, right.

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