PATH: BS | Business | Corporate Welfare

Nearly One-Third of Congress Has Family On Payroll

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[Get-Rich-Quick]
If you think only Rep. "Dollar" Bill Jefferson was an anomaly, for creating shell companies to siphon political money to his family, you'd be wrong. Citizens for Responsibility & Ethics have released an extensive study of one branch of Congress showing more than two-thirds of our leaders are exploiting their position to ensure their family is in the lap of luxury.

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Michael Moore Lectures Government on Healthcare Reform

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Michael Moore came to the California Capitol on Tuesday and seemed to succeed on two fronts: promoting his new documentary on the ills of the American health care system, and rallying for a proposal to do away with health insurance companies and create a system in which government pays all medical bills, no questions asked.

Check out the video. It is very compelling!

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DuPont's $63 Million Dollar Plane You Bought That Can't Fly

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[Faulty Products]
Congress has spent more than $63 million on an experimental aircraft that has never flown more than a few feet and that the Pentagon has repeatedly rejected.

Designed as a plane that can take off straight up and then fly at 700 miles per hour, the craft has never attained a height of more than a few feet in prototype tests before crashing to the ground.

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AT&T Has A Problem With Net Neutrality

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AT&T chief Ed Whitacre handed the keys over to his replacement Randall Stephenson yesterday, but not before giving a rousing pep talk to fellow executives in the company’s San Antonio board room. We just received exclusive video of the AT&T chairman’s parting speech.

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Your Money At Work: $592M US Embassy In Iraq

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Construction of the U.S. embassy in Iraq, set to open in September, is projected to cost $592 million, with a staff of 1,000 people and operating costs totaling $1.2 billion a year. It will be a 104-acre complex, which is the size of approximately 80 football fields, featuring tennis courts and a swimming pool and a cabana.

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CNN: The Most Trusted Name In... Corporate BS And Misinformation

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[Environment]
According to MediaMatters, CNN has crossed the line. On Wednesday, the self-proclaimed "Most Trusted Name in News" aired an hour-long special on Global Warming that was anything BUT news.

The special, "EXPOSED: The Climate of Fear," on CNN Headline News was hosted by Glenn Beck, whose long history of factual distortions on Global Warming have been well documented...

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Government Contractors Owe $7.7 Billion In Back Taxes!

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A recent Government Accounting Office inquiry reveals that about 113,800 contractors working for a variety of federal agencies, including the Pentagon and the General Services Administration, have built up $7.7 billion in unpaid taxes. This matches untidily with a March GAO report saying that more than 21,000 doctors, health professionals or medical suppliers, collecting billions in federal Medicare dollars, simultaneously owed more than $1 billion in federal income taxes.

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Faith Based Initiatives Blow Fed Money On Big Screen TVs

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A contractor getting paid $3,500 a day to oversee faith-based initiatives for needy Ohio families spent some of the federal welfare money on downtown parking, big-screen televisions and a glowing report on the job it was doing, a newspaper reported Saturday.

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Bush To Appoint Industry Shill To Consumer Product Safety Comm.

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Insiders say that Michael Baroody, chief lobbyist for the National Association of Manufacturers (NAM), a powerful trade group that opposes aggressive product safety regulation, is President Bush's choice to head the Consumer Product Safety Commission (CPSC).

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Subcontractors Are Becoming A 4th US Government Branch

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In June, short of people to process cases of incompetence and fraud by federal contractors, officials at the General Services Administration responded with what has become the government's reflexive answer to almost every problem.

They hired another contractor.

It did not matter that the company they chose, CACI International, had itself recently avoided a suspension from federal contracting; or that the work, delving into investigative files on other contractors, appeared to pose a conflict of interest; or that each person supplied by the company would cost taxpayers $104 an hour. Six CACI workers soon joined hundreds of other private-sector workers at the G.S.A., the government's management agency.

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Wal-Mart Pays Itself Rent To Gain Huge Tax Breaks

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Wal-Mart, the nation's largest employer and the world's biggest retailer, is regularly paying itself rent and using the transaction to decrease the taxes it pays to state governments, according to a report in this morning's Wall Street Journal.

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J.P. Morgan Accounts Prove To Be Fraud-Friendly

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[Get-Rich-Quick]
One moment Dave DeSmidt had $179,000 in his 401(k) retirement account, the next he had nothing. In an instant, 25 years of savings had disappeared.

With a few clicks, someone raided DeSmidt’s retirement account with J.P. Morgan & Co and ordered a full disbursement to a private checking account.

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Iowa Farmers Make Out Like Bandits Due To Katrina Disaster

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[Environment]
When Hurricane Katrina struck New Orleans in 2005, the aftershocks rippled all the way to Iowa. Grain shipments down the Mississippi River were shut down and the price of corn plunged. While people were drowning in New Orleans, the government had systems in place to make sure farmers up north wouldn't feel the pain themselves, to the tune of billions of dollars of taxpayer money.

What resulted was a virtually unprecedented flood of government cash to Iowa's farmers, triggered by the drop in prices.

Iowa growers and landowners collected $2.24 billion in subsidies last year

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Where MADD's Charity Money Goes May Make You MAD

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People who donate to Mothers Against Drunk Driving are told by the charity that most of the $12 million it raises annually is spent on good works — stopping drunk driving and helping families traumatized by fatal crashes.

But an investigation reveals most of the high-profile charity's money is spent on fundraising and administration, leaving only about 19 cents of each donor dollar for charitable works.

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Where Do Your Cookies Go?

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There's a lot of talk about government waste, how much taxes Americans pay, and where it goes. The problem is our political leaders aren't particularly keen on letting the public know the details of how our tax dollars are spent. Here at BSA, we've compiled a few informative videos on the issue, including an ABC report on the Pentagon losing $2.3 Trillion dollars, Ben Cohen from Ben & Jerry's discussing how tax dollars are spent in a more consumer-friendly metaphor: Oreo cookies, and an amazing web site that seeks to visualize the disbursement of government money to thousands of departments.

For example, do you know that government spending in 2007 will increase the amount spent on missile defense by more than 10%, but spending on cancer research will decrease? Ask yourself: How many people do you know who have been killed by a missile, verses how many who have been killed by cancer?

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Playstation 3 Worth 12,000 Tacos?

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The latest person to go completely nuts over the latest video game console is not a person, but a corporation. Taco Bell has announced that if you're willing to donate your precious Playstation 3 to them to give a Boys & Girls club, they'll offer the generous gamer what they consider a "lifetime" worth of taco bell food (~ $12k in "taco bell bucks" -- no word about whether Angioplasty is included).

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Bush's Plan For Stopping Iraq Waste? Shut Down Oversight Office!

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A new battle is brewing in Congress over how the US government monitors the billions of dollars it spends on the reconstruction of Iraq. The Bush administration and leading Congressional Republicans are trying to close the Office of the Special Inspector General for Iraq Reconstruction. The special agency has uncovered several cases of waste and abuse, and has helped indict several American officials on charges of corruption.

The termination order comes in an obscure provision attached to last month's defense authorization bill. It says the Inspector General's office must close on October 1st of next year. The language was inserted by Congressmember Duncan Hunter, a California Republican who currently leads the House Armed Services Committee.

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Bush: Soldiers Won't Pay More Than 36% Interest

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Consumer loans to service members will be limited to 36 percent annual interest next year under a law President Bush signed Tuesday that is aimed at storefront lenders clustered around military bases.

And you thought our president wasn't taking care of the troops. Shame on you!

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Pastor Creates And Sells "ATMs For Jesus"

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Pastor Marty Baker preaches that the Bible is the eternal and inviolate word of God. On other church matters, he's willing to change with the times, including setting up his own for-profit venture making religious ATM machines and selling them to his own, and other churches. Now giving money to "God" is even easier than ever!

"It's truly like an ATM for Jesus," Baker said.

Amen.

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Top 10 Corporate Democrats-For-Hire

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The recent adoption of defeated Joe Lieberman by the Republicans has shown light on a bold breed of political prostitutes. They claim to be 'centrists,' but these D.C. Democrats -- whose corporate agendas aren't too different from Bush administration policies -- are living proof that the system needs fixing.

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A Virginia Republican's Obsession With Small Appliances

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Virginia's Republican senator George Felix Allen is a very busy guy in Congress. Is he looking into illegal wiretapping? Is he busy readying legislation to help hurricane Katrina victims? Is he working to bring our troops back home or curtail terrorism?

Nope. George Allen is apparently the go-to-guy when you need to import a ton of foreign-made, plastic home appliance crap, and you want import duties lifted so your profit margin is bigger. To what extent? Read on... this is rich..

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The Art of Lying After Getting Caught

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[Pubic Relations]
When you're caught doing something horribly wrong, you could apologize... or you could hire a firm to do it for you.

Faced with a Royal Commission of Inquiry into the payment of approximately $A300 million in kickbacks to Saddam Hussein's government, in breach of the United Nations' Iraq Oil-for-Food Program, the Australian wheat trader AWB Limited hired crisis management guru Peter Sandman to help it draft an apology. The Australian inquiry released e-mails between Sandman and AWB, which reveal that Sandman's proposed confessional statement was watered down by ABW's other PR adviser, Ian Smith from Gavin Anderson & Company. "The less you blame yourself, the more the public will blame you. You aren't blaming yourself nearly enough in this draft," Sandman wrote in one e-mail. Sandman's original three-page statement was eventually pared back to only one page. However, AWB executives decided not to make a public apology at all. The inquiry resumes public hearings in two weeks.

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$400M No-Bid FEMA Contracts Now Total $3.4 Billion

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Four no-bid contracts awarded by the Federal Emergency Management Agency to house Hurricane Katrina evacuees have ballooned in value from $400 million to about $3.4 billion, prompting renewed scrutiny from Congress and federal auditors.

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Will The Real Deficit Please Stand Up?

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The federal government keeps two sets of books.

The set the government promotes to the public has a healthier bottom line: a $318 billion deficit in 2005.

The set the government doesn't talk about is the audited financial statement produced by the government's accountants following standard accounting rules. It reports a more ominous financial picture: a $760 billion deficit for 2005. If Social Security and Medicare were included — as the board that sets accounting rules is considering — the federal deficit would have been $3.5 trillion.

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Lawyers Make Out Like Bandits In Google Clickfraud Settlement

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An Arkansas judge on Thursday approved a $90 million settlement between Google and its advertisers who claimed the leading Internet search company improperly billed them for fraudulent "clicks" on their ads.

"Victims" of the fraud get "credits"; the lawyers walk away with $30,000,000.00.

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Buggy Software Costs Government $12B Annually

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[Faulty Products]
Every year the Government Accountability Office issues a report that gives a brief summary of the status of major weapons acquisition programs. And every year the reports say that many, if not most, of those acquisition programs are experiencing cost overruns and schedule delays in their software development segments.

The problem is huge. In fiscal 2006, the Defense Department will spend as much as $12 billion on reworking software - 30 percent of its estimated budget of $40 billion for research.

There you have it. Is the United States spending taxpayer money to develop the next generation stealth fighter or anti-missile technology? Nope, they're probably trying to keep their F18s' software from crashing.

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Red Cross Donors' Security Compromised; Claims No Big Deal

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Darren Irby, spokesman for the national American Red Cross says, "We haven't viewed this as a security breach at this point."

What would you call it when a laptop containing personal information from thousands of blood donors - including Social Security numbers, sexual and disease history and medical information - was stolen from a local office of the American Red Cross? Sounds like a security breach to me.

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R.J. Reynolds' Non-Smoker Protection Act

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You figure a proposed law called The Arizona Non-Smoker Protection Act would have something to do with curtailing smoking right? Especially if this bill was promoted by a group called the Non-Smoker Protection Committee.

Then again, when R.J. Reynolds is behind the whole scheme, giving loads of money to shill businessmen to promote this "Non-Smoker Protection Act" it just might turn out to be some legislation designed to reinstate smoking all over the place and limit municipalities from putting restrictions on smoking.

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Autonomy of the Internet at Stake

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Congress is pushing a law that would abandon the Internet's First Amendment -- a principle called "Network neutrality" that prevents companies like AT&T, Verizon and Comcast from deciding which Web sites work best for you -- based on what site pays them the most. Your local library shouldn't have to outbid Barnes & Noble for the right to have its Web site open quickly on your computer.

Net Neutrality allows everyone to compete on a level playing field and is the reason that the Internet is a force for economic innovation, civic participation and free speech. If the public doesn't speak up now, Congress will cave to a multi-million dollar lobbying campaign by telephone and cable companies that want to decide what you do, where you go, and what you watch online.

This isn't just speculation -- we've already seen what happens elsewhere when the Internet's gatekeepers get too much control. Last year, Canada's version of AT&T -- Telus -- blocked their Internet customers from visiting a Web site sympathetic to workers with whom Telus was negotiating. And Shaw, a major Canadian cable company, charges an extra $10 a month to subscribers who dare to use a competing Internet telephone service.

Please let people know - this is serious!

update Telecommunications giants scored a victory over Net Neutrality advocates in the U.S. legislature yesterday as the proposed "Markey Amendment," a provision to prevent Internet providers from creating access chokepoints was voted down in the House of Representatives.

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Bush Suspends Environmental Regulations; Cites High Prices

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As if we're living in some kind of bizarro world, GW Bush today announced that he is suspending environmental regulations regarding air standards and pollution as some sort of means to address increasing fuel prices.

So now we get more pollution, and the claim is this will reduce gas prices? Anyone actually believe this??

DailyKOS says, "Is anyone else detecting a pattern here?

In the wake of Katrina, Bush suspends prevailing wage laws.

In the aftermath of 9/11, Bush basically suspends the Fourth Amendment and, at Gitmo, the right to a fair trial.

There is no tragedy, crisis or concern in this country that will go unmet by this administration ... with a boon to cronies or a bolstering of executive power."

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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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