Moon of Alabama Brecht quote
May 11, 2005
Waste is Patriotic

US tries to staunch wasteful flow of anti-terror funds (Financial Times)

The House of Representatives is set to vote on Thursday on legislation that would require homeland security funds to be spent mainly where the risk of terrorist attack is deemed highest. If it succeeds, it would be the first step in rolling back a pattern of waste that has been egregious even by Washington standards.

Glenville is unlikely to figure high on any list of potential terrorist targets.

The small town in south-east Georgia is little more than a ramshackle collection of one-storey wooden homes and whitewashed churches, surrounded by miles of farmland. Yet, beside a road junction outside the town stands a large billboard advertising a government website that informs people how to prepare for a terrorist attack.

The image illustrates one of the most striking features of the US response to the events of September 11: that much of the government money to protect against future attacks is being spent in places foreign terrorists would have trouble even finding.

(…)

The homeland security department’s inspector-general reported earlier this year, for instance, that while $560m had been granted to improve the security of US seaports, much of the money had gone to projects that had little effect.

(…)

In all, the report found that almost half the grants went for projects deemed marginal or unimportant by government reviewers.

(…)

Much of the problem has been due to the way in which Congress allocated the funds in the months after September 11. Under the influence of politicians from rural districts eager to get their share of the new windfall in homeland security spending, the 2001 Patriot Act guaranteed that each state would receive minimum shares regardless of its location or population.

This sounds pretty typical of the Bush motus operandi: take advantage of events to do things that appear to be related to these events, and use it instead to divert government funds towards favored constituencies without any consideration whether this is in any way useful. Make Blue States pay for (unnecessary) subsidies to Red states. And label people “unpatriotic” if they dare complain about the use of funds for “Homeland Security”.

The same happened with the pork-laden “Leave No Lobbyist Behind” Energy Bill, and the same is happening with the Iraqi “reconstruction” funds.

Money – vast amounts of money, amounting in tens of billions of dollars – are spent in useless and unaccountable ways, they always seem to go pretty directly to the corporates that have funded Bushco’s campaigns and their owners, and they are not even funded, as they are paid for by a massive increase in US federal debt (while programmes like Medicaid are cut).

This is the biggest robbery of all times. Several hundred billion dollars over a few years, directly from future taxpayers’ money to private pockets – with no measurable impact for society as a whole.

Possibly the only silver lining is that the people who are currently trying to tighten the Patriot Act (Christopher Cox, a Republican who represents a Los Angeles area district, has used his post as chairman of the House homeland security committee to highlight much of the waste; Susan Collins, R-Maine, in the Senate) are Republicans. Can they be pulled away from the fiscal madness of Bushco? Or are they just trying to bring pork back home?

Waste, graft, corruption. Where’s the accountability? Where’s the fiscal responsibility? Where’s the decency?

Why has 9/11 become a “windfall” for Bushco and Republicans? How did that happen?

Comments

If you want to understand how capitalism works in the USA, look at the story of
United Airlines pension dump. United contracted with employees for certain pension benefits. During the boom, the investments they had in the pension fund had paper value in excess of obligations, so they basically diverted the funds, wasted them on crappy operations and stupid investments (with the cooperation of the banks), and now dump their $10B pension debt 1/2 to the Feds and 1/2 by reducing benefits. But what’s another debt to Uncle Sam at this point?

Posted by: citizen k | May 11 2005 13:42 utc | 1

Th goal here isn’t to protect people from terrorists- it’s to scare people with terrorists. “Hey,” these billboards shout, “you- yes you!- can be killed by terrorists at any moment! Be afraid! Be very afraid!”
So of course they’ll go up in places where they do the most good for their real purpose. Which isn’t places like New York City or Washington DC or Los Angles, places that have actual risks of terrorist attacks. The people in those cities are just too damned educated, too damned liberal, to be scared. Which is why in ’04 all three cities went for Kerry, primarily on the basis of opposition to the Iraq war, while the heartland voted for Bush largely due to fear of terrorists. Which is humorous- because a New Yorker is much more likely to die in a terrorist attack than in the Iraq War, while a West Virginian is much more likely to die in the Iraq War than in a terrorist attack.

Posted by: Brian Hurt | May 11 2005 14:09 utc | 2

The remarkable thing is that this manufactured terrrst threat is so pervasive that one has a hard time ignoring it. Even though…it has been proven – yes, proven beyond ANY doubt – that elements within our govt planned and executed the 9/11 attacks. And OKC and JFK and many other murders (Wellstone) that get less press.
So, Brian, to compare the danger of attacks on podunk GA vs NYC is to accept that there is a liklihood of a terrrst attack somewhere in the US by…? Obvious answer, the same outfit that did it before, the reptilian insiders. Not Arabs, not Muslims.
Pay attention to the true perps here, whose propaganda machine spews a continuous stinking gush of fear.

Posted by: rapt | May 11 2005 14:57 utc | 3

slightly OT – what hedge fund is blowing up right now? There so many rumours and even Greenspan is out talking softly.
Someone big is in trouble after having been long GM bonds and short GM stocks. Kerkovian came in and bid GM stocks up and the next day S&P downgraded GM bonds.
Trouble ahead … but the U.S. taxpayer will bail out anyone anyway.

Posted by: b | May 11 2005 16:04 utc | 4

b – this was on the front page of the FT today:
Bond and stock markets hit by fears for hedge funds in wake of GM downgrade

Fears of hedge fund troubles in the wake of last week’s General Motors’ downgrade rattled stock and bond markets yesterday as investors worried that some funds might be struggling to meet margin calls.
Investment banks’ stocks slipped and Treasury bonds rose as investors shifted into safe haven assets. The complex trades struck by many hedge funds mean any troubles risk drawing in the counterparties, particularly banks, with which they conducted the trades.
Many funds are believed to have bought GM bonds, which had fallen sharply in March following a profits warning, in the belief that the debt was oversold. Simultaneously, bets were placed short-selling the company’s shares.
But last Wednesday, the stock leapt 18 per cent on news of billionaire Kirk Kerkorian’s tender offer for shares in the struggling carmaker. On Thursday, Standard & Poor’s caught the market off-guard by finally downgrading the company to junk, pushing GM bonds sharply lower.
“There could be pretty substantial problems given the size of the moves,” said Kim Rupert, analyst at Action Economics. “At this point we’re trying to figure out whether this is just the tip of the iceberg.”
General Motors is one of the largest corporate borrowers and its debt is among the most liquid. As a result the market in credit derivatives linked to its debt is one of the most active.

Posted by: Jérôme | May 11 2005 19:44 utc | 5

I’ll be shocked if that bill actually passes.
Too many red states have been getting windfalls from this. I don’t see them giving up the cash.

Posted by: fourlegsgood | May 12 2005 8:18 utc | 6

The Gvmt. encouraged the minor functionaries by giving them a slice of power – some authority to crack down trivially – on box cutters, socks and shoes, proper behavior in a queue, nail files — and giving them the oppo’ to hassle ppl about their papers. Bomb threats are an added boon, they give leeway for any nutty behavior.
Money was also handed out. Most of the money went to big companies who wasted it all (skimmed off into the pockets of the owners, they knew it was a gift..) but enough went to local law enforcement and security companies / local thingies – to boost their egos and image and make them proud and self important. Some even went to Universities for the thorough study of terrorism. !!
That was quite deliberate.
Not because protection against terrorism has any reality – it does not – the US has never been a terrorist target and is not today. Its liberal bent and open borders, its social stratification actually protect it from terrorism.
Rummy and all know that perfectly well.
Reinforcing fear and the idea that Amerika is under attack was the only aim. It is winding down now though. Even Ridge has admitted that the terrorist alerts were crummy – been on orange since God knows when.
USAtoday

Posted by: Blackie | May 14 2005 20:11 utc | 7