Category Archives: Politics

Introducing The Sichuan Tengzhong Hummer H1

This week’s bankruptcy filing by General Motors, and indeed the current critical condition of the entire U.S. economy can be traced directly to the wholesale loss of decent paying American manufacturing jobs, primarily to China.  Retailers like Walmart, whose stores are stocked predominantly with cheap Chinese-made goods are thriving, because financially desperate American families can’t afford to shop anywhere else (Walmart employs almost 1.5 million workers in the United States, and will be adding 22,000 more U.S. workers to its payroll in 2009; while this may sound like good news, it is anything but.)  It is a vicious cycle of cheap imports, resulting in job losses and low wages for those still lucky enough to find work, that creates an even greater demand for cheap imports that are destroying the American economy even more.  Probably the only thing that is limiting imports from China right now is the lack of available space on cargo ships.  The U.S. government does not seem to be the least bit inclined to limit imports, despite the damage they are doing to our country.

Now, it appears that General Motor’s Hummer division is being sold to China’s Sichuan Tengzhong Heavy Industrial Machinery Company.  We feel that dismantling what was one of the largest and oldest American corporations, and selling a portion of it to China is nothing short of treason.  It’s also ludicrous.  Friends, what you are witnessing is an acceleration of the destruction of the U.S. economy.

On a purely practical level, it won’t work.  The type of American buyers who are attracted to a vehicle like a Hummer won’t want a Chinese vehicle.  And as the U.S. economy continues to disintegrate because of exactly this sort of exportation of American brands and jobs, few if any Americans will be able to afford to buy a Hummer, or any vehicle, for that matter.

From a national security standpoint, selling yet another major American manufacturing company to China places America in grave danger. And remember… Hummer is basically a military vehicle, even if it has morphed into a family vehicle for soccer moms on American highways. We’ve said it before on this blog, and we’ll say it again…  Anytime it desires, China will be able to bring America to its knees without firing a single shot.  If China cuts off the supply lines that America has become dependent on, the United States will starve to death.   And we won’t be able to defend ourselves either, because unlike during World War II, America’s manufacturing capacity has all but disappeared.  If you think that melamine-laced pet food, lead-tainted toys, or toxic sheetrock from China are a problem, you ain’t seen nothing yet.

How bad are things getting for U.S. manufacturers?  We went to the Home Depot recently to buy a few sheets of sandpaper, and everything they had was made in China.  It appears that America can’t even manufacture sandpaper any more.

So stop worrying about North Korea or Iran or al-Qaeda or the Taliban.  What you should really be worrying about are those shiny new Sichuan Tengzhong Hummers that will soon be rolling down America’s highways.

We wonder if they sell portraits of Chairman Mao at Walmart.  There’s a bare wall in our living room where we could hang it.

– Routing By Rumor

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Walking On Water

//www.nytimes.com/slideshow/2009/01/15/us/20090115-PLANECRASH_3.html#

Photo is part of a slideshow at http://www.nytimes.com/slideshow/2009/01/15/us/20090115-PLANECRASH_3.html# (click photo to view)

When we started this blog just over a year ago, we decided to place a photo we took of the New York City skyline several years ago at the top of our page. The photo was taken from the deck of a New York Waterway ferry, traveling from their West 38th Street terminal in Manhattan, to their Port Imperial terminal in Weehawken, New Jersey. Little did we know at that time, that New York Waterway ferries, quite possibly the very boat we took our photo from, quite possibly piloted by the same captain, would be involved in this story.

That stretch of the Hudson River is the exact spot where Captain Chesley B. Sullenberger (see his page at linkedin.com) landed US Airways Flight 1549 yesterday afternoon. It landed in the middle of the river, near, or just slightly South of where the USS Intrepid (pictured in our banner photo), and now a sea, air & space museum, is permanently moored on the Hudson. That would put it right around the center of the frame in our photo. Then, because the lower Hudson River is a tidal river, subject to very strong currents, it quickly floated South, towards lower Manhattan. It was eventually manuvered to the shoreline off Battery Park, where it was tied up, awaiting a barge and crane which will lift it from the River.

How strong can the currents on the Hudson get? I don’t know what the typical ferry boat’s top speed is, but when the tide is going out, and the river is flowing South in the area of Manhattan, ferries we’ve been on can barely make any headway when heading North, against the current !

Just after takeoff from LaGuardia Airport (LGA) in Queens, New York, and heading to Charlotte Douglas Airport (CLT) in Charlotte, North Carolina, it is believed that the Airbus A320-214 with 155 passengers and crew aboard struck a flock of Canada Geese, and injested birds into both of its CFM56 engines, disabling them.

Captain Chesley B. "Sully" Sullenberger

Captain Chesley B. "Sully" Sullenberger, III

Flight 1549 pilot, Captain, Chesley Sullenberger, age 57, a former U.S. Air Force fighter pilot, has flown for US Airways for almost 30 years. He is also the owner of Safety Reliability Methods, Inc., and you can view his profile at their website. A point we found most interesting about Captain Sullenberger, is that in addition to a Master’s degree in Public Administration from the University of Northern Colorado, he holds a Master’s degree in Psychology with a concentration in Human Factors, from Purdue University. Prior to that, he received his Bachelor’s degree in Psychology and Basic Sciences from the United States Air Force Academy in Colorado. “Human factors” certainly played a role in averting disaster yesterday.

With the aircraft traveling West as it struck the birds over The Bronx, Captain Sullenberger reportedly considered attempting to reach Teterboro Airport, which was approximately eight miles away in Northern New Jersey, but he opted to turn South, and make an emergency water landing on the Hudson River instead. With the loss of both engines, he was at the controls of what was now a very heavy glider, and apparently felt he might not make the airport. He was also undoubtedly concerned about overflying heavily populated Northern New Jersey in his crippled aircraft. It turned out to be an excellent call. That’s the value of having someone like Chesley Sullenberger, with almost 40 years of flying experience, in the Captain’s seat.

The decision to make what turned out to be a textbook water landing undoubtedly saved 155 lives on the plane, and countless lives on the ground. It even seems that once the intact plane is pulled from the river, the passengers will eventually get their checked baggage returned to them, even if it doesn’t smell quite as fresh as it did when they checked it. We’re really hoping that there weren’t any live animals in the cargo hold, since they would have certainly drowned.

The fact that Captain Sullenberger happened to ditch the plane on that particular section of the Hudson River also played a big role in saving lives (Sullenberger indicated to accident investigators that he deliberately landed his plane close to river traffic, to “improve chances of recovery”).

It is heavily traveled by various watercraft, including ferries and tour boats. With the plane filling with water, and it’s passengers standing on the submerging wings and sitting on the deployed escape chutes, as many as 14 New York Waterway ferries, and at least one Circle Line tour boat converged on the aircraft, some reportedly within a minute or two of it’s hitting the water (read this NY Times story about some of the rescuers). Every passenger on the plane was rescued, with some suffering hypothermia and non life-threatening injuries. With an air temperature around 20 degrees Farenheit, and a water temperature in the 30’s, the plane’s passengers would not have survived very long in the near-freezing water of the Hudson River.

Only in New York !

Interestingly, there has been next to nothing in the news about the other four crew members, who should also be recognized. We found the identities of the other crew members in this Wall Street Journal article, which we excerpt here…

According to an internal US Airways flight roster, the first officer on the flight was Jeffrey Skiles, and the three flight attendants were Donna Dent, Doreen Welsh and Sheila Dail. One of the three attendants was injured and taken to a Manhattan hospital.

This Chicago Tribune article says that First Officer Skiles, age 49, lives in the town of Oregon, Wisconsin. He is a former flight instructor, who began flying at age 15.

New York Waterway, whose ferry Captains and crew members were instrumental in the rescue, is an interesting company. Started in 1986 by Arthur E. Imperatore, who previously operated a major East Coast trucking company, APA Transport, along with four of his brothers (see his bother George E. Imperatore’s obituary in the NY Times). New York Waterway service expanded after the September 11, 2001 attack on the World Trade Center shut down the PATH (Port Authority Trans Hudson) subway line between New Jersey and the World Trade Center site in lower Manhattan. When the PATH service eventually resumed, ridership on the ferries dropped off precipitously, nearly bankrupting New York Waterway. New York Waterway is now run by Imperatore’s son, Arthur Imperatore, Jr. Here’s an article about Arthur Jr.

The New York Waterway ferry ride between Weekawken, New Jersey and midtown Manhattan(they also operate other routes) is a pleasant five-minute voyage, albeit fairly expensive when you add up the fare and the parking fee. They offer free shuttle buses on the New York side, which will take ferry passengers to and from many parts of Manhattan.

Of course, the quintessential New York ferry ride is the city-operated Staten Island Ferry, which is actually free ! The 25-minute trips between St. George on Staten Island and lower Manhattan operate 24 hours a day, seven days a week.

Our guess is that President-elect Obama just might be inviting the heroic crew members of US Airways flight 1549 to the White House soon after his inauguration on January 20th. It was reported that President Bush phoned Captain Chesley Sullenberger. And we hope US Airways shows Captain Sullenberger (and the other crew members) their appreciation, despite the fact that he got one of their aircraft a bit damp.

Making Water Landings More Survivable

If this flight had made the same successful water landing in an area where immediate assistance from vessels in the area was not possible, the outcome would have been drastically different.

While we’re not aviation experts, we wonder if passenger aircraft might be designed to be boyant, whether or not the plane’s hull is breached. The Airbus A320 that was involved in this accident is equipped with what is called a “ditch switch” (see details and photo here). which the pilots can activate prior to a water landing. Assuming the hull remains intact, it is supposed to close the ports and other openings in the belly of the aircraft that would permit water to enter. In this incident, water quickly filled the airplane, so it seems like the hull was probably compromised in the landing. We suspect that this will be one of the things that investigators will be looking at. Perhaps airbags or other flotation devices that deploy when an aircraft hits the water are feasible.

The accounts we’ve read indicate that water in part of the cabin was chest-high before all the passengers could exit the plane. Passengers who were standing on the wings, awaiting rescue, found themselves sinking below the waterline as the fuselage took on water. Given the water and air temperature, it’s doubtful they would have survived, had rescuers not arrived almost immediately (see NY Times story).

It also seems to us that the U.S. Coast Guard, which licenses and regulates vessels such as the numerous ferries and tour boats that are found around New York City, might enact regulations that will help crews on those boats be more effective in rescues. For example, might some sort of platform that could be lowered to the water level be made required equipment ? Perhaps a motorized winch with a basket that can be lowered to the water would be valuable for water rescues. One of the ferries was using some sort of roll-up ladder which they unfurled over the bow of the ship, but injured, severly hypothermic victims or babies would not be able to climb a ladder. Would requiring vessels like ferries to have a few survival suits on-board for crew member use be feasible ?

If we’re not mistaken, the FAA only requires life rafts on aircraft that fly overwater routes. We doubt that a New York to Charlotte flight is categorized as such, but as flight 1549 demonstrated, being on a freezing river is probably not much different from being on the open ocean, in terms of the need for equipment such as life rafts. It appeared to us that some of the passengers on flight 1549 were sitting on inflated escape chutes (one chute at the forward door on each side of the plane), and not on life rafts. If there had been sufficient life rafts available on this flight, it seems that the crew would have had time to deploy them, and the crew would not have told passengers to jump into the water, as some have claimed !

Perhaps investigators should ask the passengers that survived this water landing what equipment they would want on future flights.

About This Airplane – N106US

According to the Federal Aviation Administration, US Airways flight 1549’s “tail number”, N106US, is registered to Wells Fargo Bank Northwest. The plane is 9 years old, having been delivered in 1999. There is already an extensive article about it at wikipedia.org !

Sunday, January 18 2009 Update…

US Airways flight 1549 being raised from the Hudson River late Saturday (photo and story at nytimes.com/2009/01/19/nyregion/19blackbox.html)

US Airways flight 1549 being raised from the Hudson River late Saturday (click on photo to see article and photo at nytimes.com/2009/01/19/nyregion/19blackbox.html)

Late yesterday, salvage crews raised flight 1549 from the Hudson River, and placed the plane onto a barge. The flight data recorder and cockpit voice recorder were recovered and sent to Washington for analysis.

Crews continue to search the Hudson for the missing left engine from the Airbus A320.

In an interview on Saturday with National Transportation Safety Board investigators, Captain Chesley Sullenberger indicated that he made the decision to ditch the plane on the Hudson River to avoid “catastrophic consequences” if they would have attempted to return to LaGuardia or make it to Teterboro Airport in heavily populated Northern New Jersey.


– Routing By Rumor

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Bloomberg Hits The Nail On The Head Regarding Economic Stimulus Plan

NYC mayor Michael R. Bloomberg

NYC mayor Michael R. Bloomberg

There was a piece on the radio this morning which discussed New York City Mayor Michael Bloomberg‘s comments about any future economic stimulus plans. Unfortunately, our searches for his comments have come up empty, but we’re guessing that he made these remarks yesterday. If we’ve misquoted Mr. Bloomberg, our apologies. We are going on our recollection of what we heard on the radio this morning.

Mr. Bloomberg (his middle name is “Rubens” – how many of you knew that?) said that the first round of economic stimulus checks the government mailed out amounted to a program that allowed Americans to go buy Chinese-made widescreen TVs at Circuit City. We couldn’t agree more. In fact, if you’ve followed RoutingByRumor, you know that we have said that the first round of economic stimulus checks amounted to little more than a subsidy for Middle East Oil producing countries, big oil and China, Inc. (You can rest assured that no matter how low the price of oil goes, no matter how much demand drops, that ExxonMobil will continue to post record profits in the quarters and years ahead.)

Franklin Delano Roosevelt

Franklin Delano Roosevelt

Mr. Bloomberg said that any future economic stimulus program should fund infrastructure projects, which would be similar to what the United States undertook to help lift the country out of The Great Depression. President Franklin Delano Roosevelt‘s Works Progress Administration (WPA) created almost eight million jobs between 1935 and 1943. Just as importantly, this New Deal agency built highways, bridges, schools and other public works projects across America that still serve our nation today. New York City has more than it’s share of crumbling infrastructure, and like other American cities, would benefit greatly from a modern-day WPA.

Mr. Bloomberg has been critical of the Federal government’s economic stimulus plan in the past. In fact, he’s been against it all along. Last February, he said the then-proposed first round of economic stimulus checks were “like giving a drink to an alcoholic”.

Athough not in relation to the current debate on future economic stimulus spending, Mr. Bloomberg appeared before lawmakers on Capitol Hill this past June, in his capacity as co-chair of Building America’s Future.   He gave this testimony about the need to invest in infrastructure projects.

At a time when there’s more layoffs in the news every day, and the scope of those job cuts are getting wider and wider (today’s news brought word of Citibank planning 10,000 job cuts worldwide), we desperately need a government program that will give American families more than fleeting relief. We need a program that will keep the economic stimulus money the government spends here at home, instead of it being an indirect subsidy for China, which doesn’t benefit American families one bit. Walmart is doing very well, thanks to American families desperate to stretch their income. There is no need to provide Americans with stimulus checks they can take to Walmart, to buy more Chinese made goods. We’ve read that something on the order of 80% of the goods on the shelves at Walmart are made in China.

There’s slim chance that outgoing President George W. Bush will try to implement a program that will put Americans to work while also rebuilding America’s infrastructure. Our hope is that President-elect Barack Obama will seize the opportunity to lift America out of hard times by proposing a program styled on Roosevelt’s WPA. If Washington is going to spend billions of more dollars in an attempt to prevent an economic collapse, doesn’t it make sense to spend it on projects that will benefit America for generations to come, while keeping our money here at home ?

– Routing By Rumor

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Hanesbrands Ships Even More American Jobs To China !

..And some people wonder why the American economy is on life support.

Hanesbrands, Inc., the North Carolina based clothing manufacturer best known for their Hanes, Champion and Playtex brands, has given up on more American workers. Two weeks ago, they announced the elimination of more than 8,000 jobs, or 12% of their payroll, and the closing of nine plants in five countries. The job cuts will include 1,300 workers in North Carolina alone. If you’re looking for work in China, you’re in luck. But if you’re looking for work in North Carolina, tough luck. Hanesbrands expects to hire 2,000 employees in China by the end of the year. They’re also building a new textile fabric plant in Nanjing, China.

What wonderful news for the American economy !

Hanesbrands is giving up on workers in Central America as well, including Costa Rica, El Salvador and Honduras. Apparently, not even low paid workers in these countries can compete against China. While it looks like most of these jobs are going to China, the company also said they will be moving production to plants in Vietnam and Thailand. It’s probably just a coincidence that these may be some of the worst countries on earth, in terms of worker exploitation (see “Secrets, Lies and Sweatshops“, Businessweek, 11/27/2006).

Al Norman over at The Huffington Post has written an excellent piece about Hanesbrands’ abandonment of American workers. He puts the blame squarely on retailers like Walmart, and the consumers that flock there looking for cheap goods. In fact, he calls Walmart “the travel agent for Hanesbrands”.  Also check out our article from last December, “The Walmartization Of America“.

Take a look at Hanesbrands’ CEO Richard A. Noll’s total annual compensation at Forbes.com. We would have less of a problem with the top management at a company receiving obscene levels of compensation if they were able to provide employees with secure jobs, and pay them decent wages. We’ve read opinions that most all CEOs at U.S. corporations are good, decent, intelligent people, and we trust that Mr. Noll fits that profile. But when large numbers of your employees are getting pink slips, and you are closing many of your factories, it seems to us that the pain should be shared by the most highly compensated employees at the company. If top management doesn’t see fit to spread around the pain, then the company’s directors should address the issue. Come to think of it, if Hanesbrands’ manufacturing is moving to low-cost places like China and Vietnam, perhaps their CEO position should move there also, to be closer to their workers. You could probably find a very capable CEO in Ho Chi Minh City, who would take the job for about 50 cents a day.

Do you think it’s possible for someone like Mr. Noll to comprehend the impact of the plant closings on an employee who has spent their entire career in a North Carolina textile factory, and is now told that their job is being sent to China? If you do the math, it would seem that if Mr. Noll and other executives at Hanesbrands took a modest cut in their annual compensation, Hanesbrands could afford to keep at least one of their North Carolina plants open, and many of their loyal employees on the payroll. It would sure be interesting to hear some of their soon-to-be-jobless employees’ opinions on the subject. Obviously, making tons of money is nice, but at some point, doesn’t the voice of reason (or perhaps conscience) tell you what the morally right thing to do might be ? Dining on Prime Rib is nice, but we would have trouble swallowing if we were surrounded by people who were starving to death. It’s also all about loyalty, which seems to be in terribly short supply in the American workplace, in the executive suite, as well as on the factory floor.

We believe, and we’ve written previously, that the loss of jobs and manufacturing capacity in the United States is at the root of our current economic woes. The withering stock market, the banking and real estate crisis, the credit crunch, the decrepit state of the U.S. auto industry and the weak U.S. dollar are all symptoms of an economy decimated by companies who have abandoned the American worker, in search of profits in places like China.

You know, those cheap Hanes socks, underwear or other garments at your local department store may not be the bargains they appear to be. Actually, you might not be able to afford the type of bargain that Hanes is offering !

Let’s say that you’ve had it with companies that have moved their manufacturing to China. This mom did, and she decided to boycott all Chinese-made goods for one year. She is a reporter, and wrote about her quest, in “A Year Without China: One Mom’s Fruitless Quest To Boycott China”. Her experience is quite interesting, and includes a futile attempt to avoid Hanes products made in China.

Last week, we were reading the New York Times, when an ad practically jumped off the page at us. With the title “Even The Rope We’re Hanging Ourselves With Is Made In China”, it echoes our feelings about what is wrong with the U.S. economy. A play on Lenin’s quote “The capitalists will sell us the rope with which we will hang them”, to be sure, but also very true with regard to the state of the U.S. economy.

The “rope” ad is from an organization we had never heard of, called The Institute For America’s Future. We urge you to visit their website at www.ourfuture.org. They are warning America about exactly the same things we’ve been writing about; the trade deficit, the exporting of American jobs, the loss of manufacturing capacity, and the dependence on foreign oil.

Doctor Bush and his band of merry economists can throw 700 billion band-aids at the problem, but that will have little effect. The patient is hemmorhaging, and unless the source of the bleeding is addressed, all the band-aids in China (or all the tea in China) won’t save the patient. President Bush has recently resorted to his emergency “fireside chats” with the American public, making his morning televised appearances to try and reassure the nation in the face of the economic meltdown. We think we can safely say these little pep talks have done nothing to calm Wall Street, or reassure the man on the street. They are too little, too late, from an American President who really doesn’t seem to get it.

And look at the $85 billion bailout of AIG, a company in such bad financial shape that they could afford to squander close to a half-million bucks on an “executive retreat” at a California resort, just days after lawmakers signed off on their bailout. But then, when your rich uncle is writing you a check for $85 billion, that hotel tab probably looks like pocket change. Talk about laughing all the way to the bank. It’s like giving a few bucks to a homeless person begging on the street, who then uses your money to hire a limo to take them to the welfare office. If AIG’s behavior isn’t criminal, it certainly should be.

And of course, when Robert Willumstad, the Chief Executive at AIG (he lost his job a day after the federal bailout was announced) is hauled before lawmakers on Capitol Hill, and asked to justify the squandering of money on a “retreat” at a California resort, which included $23,000 spent on spa treatments for AIG employees, he understandably pleads ignorance, telling the House Oversight and Government Reform Committee that he was “not familiar with the conference”.

In the last week or so, we’ve witnessed what historians will refer to as “The Stock Market Crash Of 2008”. The crash, proceeded by the economic epidemics of layoffs, home foreclosures and bank failures would seem to indicate to reasonable people that the U.S. economy, at the very least, is in a recession. In response to the crumbling economy, the U.S. government has taken unprecedented action to shore up banks, insurance companies and investments such as money market mutual funds. Yet, the Bush administration cannot bring themselves to using the “R” word. The Bush administration is in denial.

Good luck to the presidential candidate who will inherit this mess 100 days from now. Whichever candidate that happens to be, we think their first order of business, their top priority, must be to bring American jobs back to America, and to address the trade deficit and our dependence on foreign energy.

– Routing By Rumor

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Here’s Proof That Tasers Can Kill !

And tasers don’t just kill the people they are fired at.

We have written here previously, and here also, about our concerns regarding the increasing use of tasers by the nation’s police departments. We feel the weapons are too ripe for abuse and misuse to justify their use by police. We believe, as do many human rights organizations, that they can be used as weapons of torture, and that they can be lethal. We believe that many police officers, whether out of fear, ignorance, a desire to punish, or for their own amusement, have, and will continue to misuse the weapon.

Last Thursday, New York City police tasered an emotionally disturbed, naked man perched on a building ledge, who then fell to his death on the sidewalk below. Iman Morales (also spelled as “Inman” and “Iam” Morales in news reports), 35 years old, and a resident of Brooklyn, had fled from his apartment via the fire escape, screaming “you’re gonna kill me” to the approaching police. He was perched on the ledge, armed with nothing more than a fluorescent light bulb when he was shot with the taser. If you’ve ever handled fluorescent tubes, you probably know just how fragile they are. We can’t imagine anyone causing much damage with one.

No doubt Mr. Morales was having a bad day, and the police that responded to the call were about to have a bad day. The catalyst that turned a bad day into a tragic day was the availability of a taser, and the apparently misguided eagerness to use it. We doubt any police officer in their right mind would have even considered pulling their 9mm or their .38 and opening fire, yet the use of a taser was apparently considered acceptable, at least to the ranking officer at the scene. The end result was the same, nonetheless.

And yes, of course you can see amateur video of the incident on youtube, proving once again that Andy Warhol was correct. Here’s more news coverage posted on youtube. (We think that venues such as youtube have become the 21st century’s court of public opinion. Little of consequence occurs these days which doesn’t quickly show up on a youtube video. It also gives an ordinary citizen as much of a voice as the most powerful media outlets. Is the Internet great, or what?)

Morales’ mother, Olga Negron, had called police seeking help for her disturbed son, who reportedly had a history of psychiatric problems. Instead of the help his mother was seeking, quite tragically, Mr. Morales got exactly what he feared from the police. Was this a self-fulfilling prophecy, or was Mr. Morales just an excellent judge of character? We’ll never know.

New York City Police Department brass have acknowledged the tasering of Mr. Morales, under the circumstances, appears to have violated department guidelines on the use of the weapon. We think it violated common sense, human decency, good police work and the law.   Lieutenant Michael Pigott, the 46-year-old police officer with 21 years on the force, who ordered the use of the taser against Mr. Morales, was stripped of his gun and shield, and placed on desk duty. Nicholas Marchesona, the police officer who actually fired the Taser was also put on desk duty but kept his gun and badge, and, we assume, his taser.

This morning, on the day that Mr. Morales was to be buried, and less than a week after the deadly incident, Michael Pigott, the police lieutenant who ordered the use of the taser against Iman Morales, committed suicide (also see WCBS coverage of the suicide). Since the homicide last week, Mr. Pigott had told reporters that he was “truly sorry for what happened” to Iman Morales. This New York Times story provides some background information about Lt. Pigott.

Did guilt drive Mr. Pigott to commit suicide? Did the public shame of having video of the incident show up on youtube play a role? A suicide note reportedly mentioned concern about facing charges for his role in Mr. Morales’ death. We will probably never know for certain what drove him to take his own life, or for that matter, what possessed him to order the inappropriate use of the taser against a disturbed individual who posed little threat to anybody but himself. We think it’s fair to say that both Mr. Morales, and Mr. Pigott were killed by a taser, even if that won’t be the proximate cause of death listed on either death certificate. (A physician once told us that death certificates often fail to accurately identify the true cause of death.)

There are many who still believe the taser is a non-lethal weapon. Has anyone asked the Pigott family or the Morales family if they believe that?

From all accounts we’ve read by people that knew them, both Mr. Morales and Mr. Pigott were decent men.  Had it not been for the terribly misguided decision to arm New York City police with tasers, both men would likely be alive today.  That is the real tragedy.

How many dead bodies need to pile up on American streets, before our government acknowledges the fact that the taser, and similar devices, are indeed lethal weapons ? Our laws should treat the taser as a lethal weapon, regardless of who is pulling the trigger.

– Routing By Rumor

P.S. – Here’s an article by another WordPress blogger, that details the taser death of a man by police at an airport in Vancouver, British Columbia, Canada. His crime appears to be that he could not speak English, which seems to be a capital offense in Canada (with the exception of Quebec).

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Quote Of The Day: Ben Bernanke

Henry Paulson, Ben Bernanke, and Christopher Cox testifying before the Senate Banking Committee on Tuesday (photo: Dennis Cook/AP on msn.com)

And no, despite any resemblance, that is NOT a photo of the Three Stooges. A definite case can be made, however, that Mr. Bernanke is surrounded by “speak no evil” and “see no evil”.

Federal Reserve Chairman Ben Bernanke, Treasury Secretary Henry Paulson, SEC Chairman Christopher Cox and Federal Housing Finance Agency Director James Lockhart testified today before the Senate Banking Committee, about the Bush administration’s $700 billion financial industry bailout plan (see Associated Press article).

As incredible as this sounds, Mr. Bernanke told lawmakers that “you risk a recession with higher unemployment and increased home foreclosures unless you act“.

Risk a recession ?

Could someone tell us what they’re smoking down there in Washington?

What planet is Mr. Bernanke living on ?

If we’re not in a recession, then perhaps the U.S. economy will simply skip the recessionary phase, and just sublime directly into a depression (we’re awfully damn close). We suppose that would be more energy efficient.

We’re kind of surprised that Mr. Bernanke could be so out of touch with average Americans that he doesn’t realize what horrific shape the economy is in. He has spent most of his career in academia, so the isolation of the ivory tower could have something to do with it. And while he has a net worth in excess of $1 million, he earns less than $200,000 a year as Fed Chairman. With the cost of living in the DC area, that’s probably not enough to live a real lavish lifestyle. So, you would think that even if he isn’t your average working stiff, and he probably hasn’t lost his home to foreclosure or gotten a pink slip lately, he would appreciate just how much the average American family is hurting because of the R-E-C-E-S-S-I-O-N.

Does Mr. Bernanke really believe that a recession is still only a threat at this juncture? It makes us wonder if there might be something in the water in Washington that could be affecting the judgment of our nation’s leaders. On the other hand, he might be under considerable pressure to sing the company song, even if he disagrees with the lyrics. It does beg the question; just how bad must things get before the Bush administration acknowledges we’re in a recession. Would they ever admit it under any circumstances ?

If we’re not in at least a recession (or worse), why is the economy on life support, and why are all of these banks, investment houses and insurance companies going belly up ? And why are the markets so unstable, with one-day 400-point drops on the Dow becoming commonplace, and oil shooting up $20 in a day. And why are so many companies laying off thousands of employees each ?

If this ain’t a recession, what is it ?

A correction ?

A mild downturn ?

A slight dip ?

Turbulence ?

A pre-recession, kind of bumpy ride, but not quite a recession sort of thingy ?

A __________________. (fill in the blank with your own description)

As far as Mr. Bernanke’s warning of “higher unemployment and increased home foreclosures”, you mean it could actually get even worse than it is now ? Really ?

Something to look forward to, huh ?

– Routing By Rumor

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The Banking Meltdown Is Just A Symptom Of A Much Larger Problem

They’re comparing this week’s financial events in the United States with those that led to the start of the Great Depression. But make no mistake, the United States’ economy has been headed for disaster for years now. The loss of decent-paying jobs, the record number of home foreclosures and the depressed real estate market are all symptoms of a far greater problem. The near-collapse of the American banking system may be linked to the mortgage crisis, but look for a root cause elsewhere.

The looming failures of financial giants including Lehman Brothers and Merrill Lynch, and insurance companies such as AIG, have created shock waves felt from Wall Street to Main Street. For the first time in memory, people were concerned that the money in their bank accounts, money market accounts and retirement plans was at risk. A 1929-style run on the banks appeared to be imminent. Indeed, people started pulling their money out of money market accounts at an unprecedented rate. Even investment professionals are running scared. Putnam Investments was so rattled by recent events, that they suddenly decided to close and liquidate their $12.3 billion institutional Putnam Prime Money Market Fund, which had experienced a run of redemptions last Wednesday. (Read about money market funds “breaking the buck” in this cnn.com article, or in this blogger’s posting.) In the seven days ending this past Thursday, Americans collectively pulled a quarter of a trillion dollars out of their money market accounts, an indication that people are frightened. This has led to the government announcing that money market mutual funds will now be insured in much the same way that FDIC insurance protects bank deposits, although the insurance coverage is currently planned for only the next year (we think you can bet your bottom dollar (pun intended) that this insurance will become permanent).

Within the space of just a few days, the government’s $75 billion bailout of AIG grew into a proposed $700 billion bailout of the entire mortgage mess. (Didn’t something like that happen in the movie “The Blob That Ate Pittsburgh”?) The government certainly has the ability to print as much money as it needs to put out these brushfires, but it’s foolish to believe that the federal government throwing money at the problem will make it go away for any length of time.

The economists here at Routing By Rumor point to two very basic problems that the country’s economic woes can be directly attributed to. The first problem is that America is sending about half of it’s cash to the Middle East to buy oil. The second problem is that the rest of America’s cash is being sent to the Far East, mainly to China, to pay for just about everything else we consume. Unless this situation changes, the U.S. economy will never recover, and the current round of federal bailouts are just the beginning.

America has made little progress towards energy independence, despite 35 years having elapsed since the oil crisis of the early 1970’s gripped the nation. A second oil crisis in the late 70’s, as well as dramatic increases in the price of oil in the recent past have done nothing to break our dependence on foreign oil.

America has become dependent on China for almost all consumer goods. This is not only foolish from an economic perspective, it also presents a grave risk to America’s national security. We manufacture almost nothing domestically any more. We’ve said this before, and we’ll repeat it again… God help America if we ever go to war with China, because if that should ever happen, you might as well just go ahead and hang a picture of Chairman Mao in your living room. Now take a look at Walmart, the largest retailer in the United States. According to wakeupwalmart.com, more than 70% of the goods on Walmart’s shelves are made in China. To be fair, that’s probably no different than any other American retailer, but in our mind, Walmart is little more than a sales agent for China, Inc.

Just how bad have things gotten ? According to this CNN article, the United States Department of Agriculture says that 50 percent of the apple juice imported into the United States comes from China (an estimated 161,000 tons of apple juice compared to the 110,000 tons produced in the United States). If we’re reading those numbers correctly, that means the United States only produces 25% of all the apple juice it consumes.

Apple juice !!! What the hell is happening to our country ?

People, there’s something very, very wrong with the U.S. economy, if we can’t even grow our own apples in this country anymore. We’re in deep, deep trouble if we’ve even become dependent on China for apple juice.

They better come up with a new saying, because “As American as apple pie” doesn’t hold true any more.

When the presidential candidates show up for their next press conference or debate, in addition to the standard questions about abortion, the death penalty, Iraq and tax reform, perhaps someone can ask them to take off their shoes and tell us where they were made, and whether they see that as a problem. Or, ask them to remove all of their clothing that was NOT made in the U.S.A. That should be quite revealing.

Then there’s the U.S. banking industry, which to us, resembles nothing so much as legalized loan sharking. Banks are, on the one hand, paying minuscule interest rates to depositors, with regular savings accounts and interest-bearing checking accounts paying perhaps 1% or so, and in many cases, just a fraction of one percent APR or APY (the switch from quoting interest rates paid as APY, instead of APR is a scam onto itself, but we’re digressing). On the other hand, banks are charging 15% or 20% interest on credit card balances, and in some cases, as much as 35% or 40% APR for their less credit worthy customers. Did you know that federal law places no limit on the interest rate a bank can charge ? And while some states do so, there are states which do not cap interest rates. That’s why it’s likely that when you mail your monthly credit card payment, the address on the envelope is usually in South Dakota or Delaware, where, as far as credit card interest rates are concerned, the sky’s the limit.

Take a look at the off-the-wall late fees and other penalty charges that banks are getting away with, since a 1996 Supreme Court ruling removed limits on such fees. Today, typical credit card late fees are as high as $40, and continuing to go up. In fact, if there’s one thing that amazes us, it’s the way that banks continually come up with new ways of putting the squeeze on credit card holders. That’s why you continually get notices from card issuers, announcing changes in your account terms. It’s surprising to us that none of those notices have yet advised us that a late payment will result in a guy named Guido paying us a visit around midnight, to negotiate a repayment schedule using his Louisville Slugger.

We think most American’s have lost any trust they might have had in that cesspool called Wall Street, where, it seems to us, the average investor doesn’t stand a chance. Maybe Eliot Spitzer was on the right track after all, with his aggressive investigations. The well publicized scandals, insider trading and other illegal activities involving Wall Street firms and the companies that trade their stock there have eroded investor confidence. And while we don’t think it’s fair to single out any one individual, just take a look at the Dick Grasso case. How do you think the average American who is struggling to pay their mortgage or feed their family, feels about a situation like that one ? And yet, despite the current financial crisis in the United States, don’t expect CEO compensation to decrease much, even at companies that have to be bailed out with federal money.

So while the billions of dollars that Washington is throwing at the financial crisis will probably stabilize things in the short term, don’t start singing “Happy Days Are Here Again” just yet. They are not.

If you want to hear what it will sound like if happy days ever do get here again, check this out.

– Routing By Rumor

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