It's almost MadiGrass time. Come on down, Barack!

One of the oldest annual peaceful protests in Australia takes place on the NSW North Coast every year.
Yep, it's almost MadiGrass time again at Nimbin.
Time for all those old counter-culture warriors to dust off their good duds and march 'n' party for an end to Aussie prohibition of Teh Weed.

This year's poster fair cracked me up.

It's a good bet that U.S. President Barack Obama never thought he would feature at this rally.

Web Control by Professor Julien Petley, Brunel University

Attempts to rid the Internet of pornographic material are beginning to have a wider impact on freedom of expression online writes Julien Petley in the Spring 2009 article Web Control posted at Index on Censorship.**

** Due to the Rudd Government's recent entry into the strange world of Internet censorship I do not feel comfortable placing a direct link to the article, as linking directly to this academic critique would see North Coast Voices possibly risk overt bullying by the Australian Communications and Media Authority.

Update: Somebody Think of the Children reports that the residence of the owner of domain name Wikileaks has been raided.

"Neo-Liberal Meltdown": the global financial crisis explained

Robert Mann writing in the March 2009 issue of The Monthly magazine explains the beginnings of the global financial crisis, for those of us who don't have an economics degree or work in the financial sector.
He makes a better fist of it than the Prime Minister in his previous essay in the same magazine.

The causes of the global financial crisis are already reasonably clear. The crisis originated in a series of interconnected developments within the American financial sector. From the 1980s a vast market in obscure and opaque financial instruments known as derivatives developed there. The market grew at an accelerating pace. In 1989 it was worth US$2 trillion; by 2002, $100 trillion; and by September 2008, almost $600 trillion. (The annual GDP of the United States is presently about $15 trillion.) This explosion of the market in derivatives depended, in turn, on ideological convictions and political acts. In 1998 Brooksley Born, the head of the Commodity Futures Trading Commission, argued for the regulation of this market. Without it, she argued, the American economy and the global economy were being placed at risk. She was overpowered by the chairman of the Federal Reserve, Alan Greenspan, and President Clinton's Treasury secretary, Robert Rubin. Shortly after, Congress withdrew from the CFTC the authority to regulate derivatives. At much the same time, as a consequence of a $300-million lobbying campaign by financial corporations, Congress also repealed President Roosevelt's 1933 Glass-Steagall Act. Its purpose had been to separate the commercial banks, which had become involved in the speculative frenzy of the '20s, from the activities of the investment banks. The repeal of the Glass-Steagall Act opened all the American major banks to massive involvement in the derivatives market. More deeply, as Joseph Stiglitz has argued in Vanity Fair, the repeal completed the transformation of American banking culture.

The post-2000 derivatives explosion was also aided by American monetary policy. Greenspan reacted to the bursting of the dotcom bubble by steadily lowering official interest rates. In 2000-01 they dropped rapidly from 6.5% to 3.5%. By 2003 they had reached 1%. Effectively, at least for bankers, as Charles Morris puts it in his book The Two Trillion Dollar Meltdown, money was now free. At this time the explosion in the derivatives market intersected with the explosion in another market, sub-prime mortgage lending, which rose from US$145 billion in 2001 to $625 billion in 2005. On the basis of a housing bubble, which increased the price of houses by an annual 7-8%, borrowers with low incomes and no assets were encouraged by banks and mortgage brokers to purchase houses worth several hundred thousand dollars. Derivative traders saw these sub-prime mortgages as a splendid opportunity. They bundled up the mortgages and created from them esoteric derivatives products - like collateralised mortgage obligations or collateralised debt obligations - which were then sold on in their trillions to investors and pension funds. In an article for Portfolio, Michael Lewis gives a telling example of how the racket worked. Big Wall Street firms took piles of sub-prime mortgages with a BBB rating. They bundled them into new products and divided these products into tranches. The top 60% of these tranches were rated AAA. Lewis's informant, Steve Eisman, who made his fortune by 'shorting' the corporations and the products involved in this trade (that is, gambling on their failure), kept asking himself: How is this possible; why is this allowed?......

The systematically phoney evaluations of the derivative products and the corporations which dealt in them, pocketing substantial fees with each contract, arose as a result of a straightforward but fatal ratings-agency conflict of interest. The profits of the agencies derived from the Wall Street banks and investment businesses they were supposed to rate. The continuation of their own very healthy profit growth relied on their willingness to turn a blind eye. Yet the fraudulent behaviour of Wall Street rested on another, even deeper, kind of blindness: the ideological blindness of the regulators. Most important here was the regulator-in-chief, Alan Greenspan, the most enthusiastic derivatives cheerleader, who believed with regard to derivatives (and everything else) that the invisible hand of the market was an infinitely more reliable and intelligent guide than any regulatory action by the state........

It is obvious whose interest all this served. Before the recent crash, the average taxable income of the top 15,000 American income earners was US$30 million; their annual income in total, US$441 billion. In the mid 1970s the wealthiest 1% of Americans owned approximately 20% of national assets. On the eve of the financial collapse they owned some 40%. Very many of these people derived their income and their wealth from the financial sector. In 2008, even after the sector had begun imploding, the executives of the Wall Street corporations that were eventually rescued by taxpayers rewarded themselves with US$18 billion in bonuses. Vast riches had apparently come to be seen by this predatory class as an entitlement.

The full essay here.

How much the Australian Government has borrowed because of the global financail crisis to date is here.

'Truffles' Turnbull is peeved

According to Granny Herald the Leader of the Opposition was a mite peeved last Sunday:
''The application fee for a loan from Rudd Bank will be a donation to the Labor Party, we all know that,'' said Malcolm as a precursor to his favourite line of the week about a canine returning to its chunder.''Whenever Labor governments decide to get into the business of banking or financing the private sector, it's invariably tied up with cronyism, it's tied up with political donations.''........
''Look, this is a very bad idea. It's - leaving aside the question of competence and corruption and all of that which invariably goes with incompetence and corruption, invariably goes hand in hand with Labor banking - the big problem here Barrie, the other big problem is that it will make the perceived problem worse because the minute you have Mr Dumb Money himself, Kevin Rudd, there with a big bag of taxpayers' money, ready to lend on, take on bad loans or dud loans in order, for political reasons, any member of a syndicate that wants to get out will kick up a fuss knowing that the Government will take them out...''

Which is all a bit rich coming from a man who spent tens of thousands of dollars paving his way to Liberal Party pre-selection and then election to federal parliament and only recently had a merchant bank pay to bail him out of protracted litigation.

Whatisname and I had a meeting of minds

It was an almost comic situation.
In full camera glare Kevin Rudd watched political triumph threaten to turn to smoke on the breeze, as President Obama first forgot his title and then had obvious difficulty recalling Our Kev's name in the middle of one photo opportunity for the gathered media during the Australian Prime Minister's visit to Washington this week.

Yamba named best town in Australia in March 2009

The Australian Traveller Magazine has just named Yamba, at the mouth of the Clarence River on the New South Wales North Coast, the best little town in Australia.

It heads the list of 100 towns voted on by the judging panel, when asked the question:

"Regardless of where the town is located, would you recommend a good friend drive an hour out of their way specifically to visit this town?"

Pictures found at The Daily Telegraph, The Daily Examiner and Google Images

21st century history wars U.S. style?

Former U.S. Vice-President Dick Cheney may be disappointed that George W. Bush didn't hand out blanket pardons for his partners in political crime when he left the highest office in America, but he is still determined to defend the 'honour' of the administration of which he was a part.

Cheney started out on 2 April 2009 warning of fresh terrorist attacks against a weakened America.

By 15 March on CNN's State of the Nation he further fleshed out his assertion that President Obama's changes to former Bush Administration policy placed America at risk:

Former Vice President Dick Cheney on Sunday defended the Bush administration's economic record, the invasion of Iraq and the treatment of suspected terrorists, warning that reversing its anti-terrorism policies endangers Americans.

"We've accomplished nearly everything we set out to do," ex-Vice President Dick Cheney says Sunday about Iraq.

In a wide-ranging interview with CNN's "State of the Union," Cheney said the harsh interrogations of suspects and the use of warrantless electronic surveillance were "absolutely essential" to get information to prevent more attacks like the 2001 suicide hijackings that targeted New York and Washington.

"President Obama campaigned against it all across the country, and now he is making some choices that, in my mind, will, in fact, raise the risk to the American people of another attack," he said.

Critics said the Bush administration's "alternative" interrogation techniques amounted to the torture of prisoners in American custody, while the administration's warrantless surveillance program violated federal laws enacted after the Watergate scandal.

Since taking office in January, Obama has announced plans to close the U.S. prison camp at Guantanamo Bay, Cuba, to halt the military trials of suspected terrorists there, and to make CIA officers follow the Army field manual's rules on interrogations. Cheney said the administration appears to be returning to the pre-2001 model of treating terrorism as a law enforcement issue, rather than a military problem.

"When you go back to the law enforcement mode, which I sense is what they're doing, closing Guantanamo and so forth ... they are very much giving up that center of attention and focus that's required, that concept of military threat that is essential if you're going to successfully defend the nation against further attacks," he said.

One gets the general impression that Cheney can't wait to complete his own memoirs and wants to start massaging the historical record right away.

Still, the poor man is being sorely tested by the blogosphere which saw Slate earlier this year posting 'exclusive excerpts' from these same memoirs after Cheney announced that he was writing his version of events.

Some of which were oddly prescient of his current attitude:

Mark my words: There will be another terrorist attack. Thousands will die. Millions will suffer. When it happens, America will see at last that we were right. History will vindicate us, and we'll receive the respect we rightfully deserve. Not that I would ever want that, of course.