Government Sponsored Cover Up

From the Washington Post….

Half a year after the government seized Freddie Mac, confusion about its role is stoking tensions between the company and its regulator, including a dispute this month over how much the mortgage giant should reveal to private investors about its financial troubles.

Federal officials who took over Freddie Mac stopped short of nationalizing the company, leaving it partly in private hands. This means Freddie still has to answer to investors and file financial disclosures.

But when Freddie Mac’s executives concluded a few weeks ago that they had to disclose that the government’s management of the McLean company was undermining its profitability and would cost it tens of billions of dollars, the firm’s regulator urged it not to do so, according to several sources familiar with the matter.

Freddie Mac executives refused to bend. The clash grew so severe that they threatened to go to the Securities and Exchange Commission, which oversees corporate disclosures, to secure a ruling that the regulator’s request was out of line. The company’s regulator backed down, the sources said.

This is why government involvement in the economy is bad news.

The US Is Paying Pakistan To Kill US Soldiers

Something is up. It seems that people in the highest levels of the US and Pakistan governments have decided to tell the New York Times what everyone basically already knows. Pakistan is supporting the Taliban militants who are fighting US soldiers and they have no intention of ever stopping that support. A short quote from the article….

Details of the ISI’s continuing ties to militant groups were described by a half-dozen American, Pakistani and other security officials during recent interviews in Washington and the Pakistani capital, Islamabad. All requested anonymity because they were discussing classified and sensitive intelligence information.

The American officials said proof of the ties between the Taliban and Pakistani spies came from electronic surveillance and trusted informants. The Pakistani officials interviewed said that they had firsthand knowledge of the connections, though they denied that the ties were strengthening the insurgency.

And later on in the article, American officials say what everyone knows….

Top American officials speak bluntly about how the situation has changed little since last summer, when evidence showed that ISI operatives helped plan the bombing of the Indian Embassy in Kabul, an attack that killed 54 people.

“They have been very attached to many of these extremist organizations, and it’s my belief that in the long run, they have got to completely cut ties with those in order to really move in the right direction,” Adm. Mike Mullen, chairman of the Joint Chiefs of Staff, said recently on “The Charlie Rose Show” on PBS.

The Taliban has been able to finance a military campaign inside Afghanistan largely through proceeds from the illegal drug trade and wealthy individuals from the Persian Gulf. But American officials said that when fighters needed fuel or ammunition to sustain their attacks against American troops, they would often turn to the ISI.

When the groups needed to replenish their ranks, it would be operatives from the S Wing who often slipped into radical madrasas across Pakistan to drum up recruits, the officials said.

The whole article should really be read by everyone. The most interesting thing about the article is that is was high level Pakistan officials who talked to the New York Times reporters. I wonder what caused them to decide to talk? It seems like this article is designed to set the stage for something but I am not sure what.

Regardless, the article highlights the problem with America’s ruling class. They are so degenerate that they are propping up a regime that they know is complicit in ongoing attacks on American soldiers. They do this not because they want American solders to get killed but because they are afraid of what will happen if they stop the support.

They can’t make hard decisions. They don’t have the guts to do anything that might have real costs. And this can not be blamed solely on Obama. These problems were already clear when Bush was in charge. Nor is it solely a problem with the White House. Everyone who is informed in this country already pretty much knew everything in this article. But no “serious” pundit has been willing to lay out the true choices facing America.

The truth that nobody wants to admit is that we have only two choices. We can swallow our pride and leave Afghanistan with all the catastrophic implications that choice has. Or we can give Pakistan a true “us or them” ultimatum with all the catastrophic implications that such an ultimatum would necessarily entail.

What we are doing right now is not a sane choice no matter what your ideology is. We are sending Americans in who will die trying to create a stable Afghanistan when we know they can never succeed as long as ISI is supporting the other side. We are wasting blood and money simply because our political caste is composed of cowards who want to kick the can down the road until a solution magically appears. In the end, though, we are either going to have to leave or else fight Pakistan. All the money and blood that was spent to try to avoid that choice will have been wasted.

In a way, the New York Times article is almost a good sign. At least the political caste is starting to go on record as admitting to things that everyone already knows to be true. I don’t know what they are trying to set the stage for, but acknowledging the facts is a move in the right direction.

Stricter Gun Laws Would Help

From the LA Times…

The Feb. 21 attack on police headquarters in coastal Zihuatanejo, which injured four people, fit a disturbing trend of Mexico’s drug wars. Traffickers have escalated their arms race, acquiring military-grade weapons, including hand grenades, grenade launchers, armor-piercing munitions and antitank rockets with firepower far beyond the assault rifles and pistols that have dominated their arsenals.

The title is sarcastic for those who have trouble with such things.

Fun and Games in Pakistan

From the Belmont Club on Sunday…..

Meanwhile, Pakistan’s government continues to implode. The VOA reports that it has put a former Prime Minister under arrest and sealed off the capital against protesters.

Only he did not stay in jail very long. This from Economist today….

IF PAKISTAN’S president, Asif Zardari, had ever wondered who rules the roost in Punjab, the country’s most populous province, he found out on Sunday March 15th. As an angry crowd gathered outside the house—and temporary prison—of Nawaz Sharif, Mr Zardari’s great rival, the provincial police melted away.

With a roar of sports utility vehicles, Mr Sharif, the “lion of Punjab”, then swept forth to lead a protest march to Islamabad. “This is a prelude to a revolution,” he declared. Faced, at least, with a continuation of political unrest that had included a small riot that day in Lahore, Punjab’s capital, Mr Zardari proceeded to bow to his rival’s main demands.

3 links worth reading

A post from the Danger Room on how the US is making new advances in using emp effects to destroy enemy electronic hardware. But the US had better hope the technology does not spread or they will be the ones who are hurt the most by it.

A post from A Fistful of Euros on how Russia is trying to keep things calm in Ingushetia. Just a friendly little reminder that Russia is always one step away from falling apart. That is why historically Russia has favored strong autocratic leaders.

Speaking of strong Russia leaders, here is a story from the Telegraph on the growing rivalry between Putin and President Dmitry Medvedev. If the story is accurate, Medvedev is a fool. How may assassins owe their loyalty to him? As Mao said, power flows from the barrel of a gun, and there is no evidence that the people with the guns are about to follow Medvedev.