Archive for the ‘Crime and Punishment’ Category

The suspicious death of a Boeing whistleblower

March 15, 2024

John Barnett was a quality assurance inspector for Boeing at its assembly plant in North Charleston, S.C., where the 787 Dreamliner was put together.

He claimed Boeing was ignoring safety issues, and he claimed Boeing forced him to retire for that reason. He sued Boeing for allegedly attacking his character and making it harder for him to get a new job.  Boeing denies these charges.

John Barnett

After having started to give a deposition last Friday in preparation for his trial, he was found dead in his pickup truck in the parking lot of his hotel the following morning.

 He had a bullet wound in the head, and was holding a silver pistol in his hand.  There was a note, whose contents haven’t been publicly revealed.

A number of people find this suspicious.  So do I.  Why wouldn’t the recoil kick the pistol out of his hand?  As the New York Post reported:

Steve Chancellor, who has written two books on staged crime scenes and runs Second Look Training and Forensic Consulting, said that when someone dies by suicide, the gun only remains in the person’s hand 25 percent of the time.

“The mere fact that the gun was in the hand, I would pay attention to that,” he told The Post.

“Because many times when someone is trying to make it look like a suicide, they make that mistake and they put the gun in the hand.”

WCIV ABC Channel 4 News in Charleston reported:

A close family friend of John Barnett said he predicted he might wind up dead and that a story could surface that he killed himself.

But at the time, he told her not to believe it.

“I know that he did not commit suicide,” said Jennifer, a friend of Barnett’s. “There’s no way.”

Jennifer said they talked about this exact scenario playing out. However, now, his words seem like a premonition he told her directly not to believe.

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Why so few Latin American mass shooters?

February 14, 2023

One explanation given for the high number of mass shootings in the USA, compared to other rich countries, is that the USA is an unusually violent country.

Compared to European countries, we have much higher rates of homicides and violent crime, combined with a much greater access to lethal weapons.  So it is not surprising we have more mass shootings.

But virtually no mass shooters in Latin America

But what about Latin America?  On average, Latin American countries have much more crime and more fatal shootings than the USA does.  Yet mass shootings are virtually unknown.

Paul Hirschfield, writing in Foreign Affairs, noted that in the Philippines, guns are sold openly in shopping malls and gun violence is endemic. The gun homicide rate in 2018 was 50 percent higher than in the USA.  Yet mass shootings are rare.

He pointed out that countries such as Brazil, Colombia, Mexico and Venezuela have gun homicide rates far exceeding the USA’s.  But the Latin American region, which has 2.5 times as many people as the United States, has had only nine known lone-gunman style mass shootings since 1998.  Why?

One possible explanation, he wrote, is that the kind of suicidal loners who become mass shooters in the USA have different outlets in Latin America.  They may work out their rages by working as hit men or for police, military, terrorist or criminal organizations.

But he thinks the real answer is culture.  Extended family ties play a far greater role in Latin America than in Europe and North America.  Well-off Latin Americans on average live in larger households, have family nearby and usually live with their parents until marriage.  

This way of life promotes values such as loyalty, solidarity and interdependence that help counter-balance individualist values.  People who feel stigmatized or victimized are more likely to be defended by their kinfolk.

Of course not all Latin Americans enjoy the protection of extended families.  Hirschfield noted that Brazil’s infamous school shooter, who killed 12 children in a Rio de Janeiro school in 2011, had been adopted and lived alone.

But Latin Americans are notable for the ability of unrelated individuals to form voluntary associations and join together for mutual support.  This is called “relational mobility.”  Levels of relational mobility are above average among US Americans, but the level is twice as high in Mexico.

Hirschfield said that multiple studies have demonstrated that in a variety of situations, Latin Americans are more likely to display socially engaging emotions such as empathy, warmth, trust, and affection, and less likely to express socially disengaging emotions, such as pride and anger, than their counterparts in Europe and the United States.  So Latin Americans in crisis may have more moral support available than US Americans do.

My own take on this is that Latin Americans on average may be just as violent as we US Americans, or maybe more so, but they are much less suicidal.  Mass shootings are forms of suicide as well as homicide. 

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Why so many US American mass shooters?

February 13, 2023

THE VIOLENCE PROJECT: How to Stop a Mass Shooting Epidemic by Jillian Peterson, PhD, and James Densley, Phd (2021)

Mass shootings are horrible, fascinating and distinctively American.  No nation has anywhere close to the number of mass shootings that occur in the USA.  They are so common it seems as if they are impossible to prevent.

A mass shooter is someone who, out of rage and frustration, opens fire on people in a public place.  Frequently mass shooting is a form of suicide; the shooter kills himself or is killed by police.

Fewer than 1 percent of U.S. firearm homicides are by mass shooters.  It is not a significant risk for US Americans generally, but the nature of the crime makes it fascinating and frightening. 

Two criminologists, Jillian Peterson and James Densley, took it upon themselves to create a data base of every mass shooting since 1966 who killed four or more people in a public place, and every shooting incident at schools, workplaces and houses of worship since 1999.

They compiled detailed life histories of 180 shooters, talking to their wives, parents, siblings, childhood friends, work colleagues and teachers.   They also talked to five convicted mass shooters serving life sentences in prison, and also found several people who planned a mass shooting but changed their minds.  The Violence Project is the result of their research.

According to The Violence Project, virtually all mass shooters have four things in common:

  • Early childhood trauma and exposure to violence at a young age
  • An identifiable grievance or crisis point
  • Study of the actions of past shooters and validation for their methods and motives
  • The means to carry out an attack

There is a whole subculture of mass shooter fans on social media.   They regard mass shooters as heroes, because they’ve struck back at a world that marginalized them and made a name for themselves in a world that ignored them.

Roughly 70 percent of mass shooters are suicidal and 60 percent of mass shootings end with the death of the shooter.

It is like the ancient Greek story of Herostratus, who destroyed the world’s most beautiful temple in order that his name would be remembered.  And in fact, Herostratus is remembered, but the name of the builder of the temple is not.

News accounts spotlight today’s Herostratuses and provide scripts on how to act out their fantasies.    A mass shooting took place last May in a Buffalo, N.Y., supermarket, about 70 miles west pf where I live.  This was the top news story in my local Rochester, N.Y., newspaper for about a week.  Our many local homicides (76 last year) are usually reported on an inside page.

Most murders overall are by people known to the victims, most others are the byproduct of other crimes, but these kinds of crimes are more understandable than mass shootings.  The nature of mass shootings generates curiosity, which generates news coverage.

Peterson and Densley speculate that the reason for a decline in the number of serial killers is that mass shooters got more publicity.  They suggest that the names of accused mass killers be suppressed and that newspapers concentrate on reporting about the innocent victims and heroic resisters. 

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The rise in criminalization of young America

November 25, 2022

Arrest rates for young Americans have been rising for decades.  Nearly one in four Millennials have arrest records, and, if the trend is continuing, the rate is even higher for members of Generation Z.

Once you have an arrest record, it will hurt you for life, even if you are a law-abiding citizen from then on.

Average annual incomes are $6,000 a year lower for those with records of one arrest and $11,000 a year lower for those with multiple arrests.  Arrest records can bar you from certain jobs where “good moral character” is a requirement.

It’s not clear why arrests are on the increase.  Serious crimes, such as homicide and robbery, are declining.   As economic historian Adam Tooze commented:

But it is implausible to suggest that such a huge surge in criminalization can have been entirely to do with a greater amount of criminal behavior.  And if it were it would beg the question of what was defined as criminal.  A substantial surge in enforcement is clearly a contributing factor.

The surge may reflect the  “broken windows” policy of policing.  The idea is that lax law enforcement of minor offenses leads to disorder that encourages more serious offenses.

When Michael Bloomberg was mayor of New York, he openly said that most violent crime is caused by young black men, and the way to prevent crime was for police to harass young black men in line.

But although blacks are arrested more frequently on average than whites, arrest rates are going up for both blacks and whites.  Whatever the reason, it’s not just racism.

The biggest difference in arrest rates is between those who have college educations or. have parents with college educations, and those who don’t.  Of course cause and effect can work both ways.  An arrest record can affect your chances of getting into college.

Tooze concluded:

Mass incarceration is the most dramatic and most spectacularly damaging aspect of the criminalization of American society, but the damage done is far more all-pervasive than even the extraordinary figures for the American prison population would suggest.

According to the FBI, somewhere in excess of 77 million Americans have what the FBI deems to be a “criminal record,” approximately a quarter of the total population.  More Americans are recorded in the FBI’s criminal database than have college degrees.

America’s policing and criminal justice systems are a gigantic apparatus for the destruction of human capital and life chances that damages above all minorities and America’s working class.

What do you think?

LINKS

Barred from employment: How criminalization blights American lives by Adam Tooze for Chartbook #173.

Younger Americans Much More Likely to Have Been Arrested Than Previous Generations; Increase Is Largest Among Whites and Women by the RAND Corporation.

Where Millennials End and Generation Z Begins by Pew Research Center.

Joe Biden’s newest problem

April 13, 2020

Krystal Ball First On-Camera Interview With Tara Reade On Joe Biden Sexual Assault Allegation.

Evaluating Tara Reade’s Allegation Against Joe Biden by Nathan Robinson for Current Affairs.

Time’s Up Declines to Fund Joe Biden #MeToo Allegation by Ryan Grim for The Intercept.

White nationalists aren’t the only mass shooters

August 8, 2019

I deplore the way President Trump inflames racial antagonism, and I think it would be a good idea to restrict the sale of rapid-firing rifles that use large ammunition clips and magazines.  But I don’t think either of these things is a root cause of the mass shootings that plague the U.S.A.

The root cause of mass shootings is deeper than any particular ideology, whether that be white nationalism, Islamic jihadism or something else.  The fact that it is not just due to white nationalism is shown by the racial diversity of the shooters.

And no, we don’t need a renewed “war on terror,” this one aimed at white nationalists.   [Added 8/9/2019]

LINKS

The War on White Supremacist Terror by C.J. Hopkins for The Consent Factory.  [Added 8/9/2019]  Good article.

Mass shootings aren’t growing more common—and evidence contradicts common stereotypes about the killers by Charles J. Ferguson for The Conversation.

Five things to know about mass shootings in America by Frederic Lemieux for The Conversation.

Why Do We Have Mass Killers? by Rod Dreher for The American Conservative [Added 8/9/2019]

A handy list of black mass murderers who were taken alive (for people who think that being taken alive for mass murder is a ‘white privilege’) by Will Shetterly for it’s all one thing.  [Added 8/11/2019]

I added the text, changed the headline and added links the morning after I posted the chart.

Your vote may not count in full

June 16, 2016

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An outfit called Black Box Voting, which has been monitoring U.S. election tampering since 2003, reports that a quarter of U.S. votes are counted by an electronic system that is designed to be tampered with.

The GEMS election management system … … counts approximately 25 percent of all votes in the United States. … … A fractional vote feature is embedded in each GEMS application which can be used to invisibly, yet radically, alter election outcomes by pre-setting desired vote percentages to redistribute votes.  This tampering is not visible to election observers, even if they are standing in the room and watching the computer.  Use of the decimalized vote feature is unlikely to be detected by auditing or canvass procedures, and can be applied across large jurisdictions in less than 60 seconds.

Source: Fraction Magic | BlackBoxVoting.org.

In other words, the vote counting system can be set so that every vote for candidate Jones counts as a full vote and every vote for candidate Smith counts as three-quarters of a vote or half a vote.

This is damn disturbing.   What legitimate purpose could there be for such a feature?

Global Election Management Systems are a product of the Diebold company, whose voting machines have previously been shown vulnerable to undetectable hacking.

Investigative reporter Greg Palast claims that results of all national elections starting in 2004 have been falsified.  I wish I could say I believe this is impossible.

LINK

Fraction Magic: Votes are being counted as fractions instead of as whole numbers by Bev Harris for Black Box Voting.

How Trump used Judge Curiel as a red herring

June 13, 2016

Donald Trump’s Trump University scam was despicable.  He scammed 7,611 people who trusted in his same into giving him thousands of dollars for something he knew was worthless.

He’s being sued on behalf of students, and his attack on the impartiality of Judge Gonzalo Curiel, one of the judges in the case, based on Curiel’s Mexican ancestry, has created an uproar among both liberals and conservatives.

Actually the knee-jerk reaction to Trump’s attack on Curiel serves Trump’s purpose, because it shifts attention away from the major issue, which is the Trump University scam.

Donald Trump in 2005

Donald Trump in 2005

Trump University, which operated from 2005 to 2010, recruited students by offering free 90-minute real estate seminars in 700 cities from 2005 to 2010.  The purpose of the seminars was to sell them on signing up for $1,495 three-day seminars.  From there the next step was to sign up students for a $9,995 “silver” or $34,995 “gold” program.

Even after that, students were asked to spend more for books, additional courses and other materials.

Donald Trump said students who enrolled at Trump University would learn the secrets of getting rich in real estate from hand-picked instructors.

None of these things were true.  The instructors had no qualifications or expertise in real estate.  Trump himself barely knew them.  They were chosen for their ability to sell students on signing up for more expensive courses.

Their employee manual, which has been leaked to The Atlantic and other publications, gave extensive instructions on how to do that.  Students were encouraged to dip into retirement funds, and told how to apply for increases in the limits on their credit cards.

At least one was a high school student.  Many were veterans, retired police officers and teachers.  In return, they got little more than motivational speeches.

Trump claimed that Trump University received more than 10,000 testimonials from students—which means a lot of them must either be fake or be signed by attendees at the free seminars.

What he doesn’t have is a testimonial from anyone who attended Trump University, succeeded in real estate and attributed it to Trump U’s instruction.

Steven Brill reported that legal records show that Trump University took in more than $40 million, of which Trump himself received $5 million.

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Mass shootings in U.S. are an almost daily event

December 3, 2015

mass-shootings

Mass shootings are getting to be virtually an everyday occurrence in the United States.   While American gun violence and murder rates are declining overall, this one particular form of senseless violence holds steady, for reasons that aren’t clear to me.

About 64 percent of the shooters were white men, according to a survey by Mother Jones, about the same as the white percentage of the total population.  Black people were 16 percent of the total shooters, Asians were 9 percent and Latinos, native Americans and people of unknown ethnicity made up the rest.

I honestly don’t know what can be done, realistically, to eliminate mass shootings.  Obviously mass shootings could not take place if the shooters could not obtain firearms.  But gun prohibition has been ruled un-Constitutional by the U.S. Supreme Court, and I don’t think it would work even if it could be tried.

The typical mass shooter is a young man obsessed with weapons and images of violence, frustrated with work, school or relationships, with a history of minor acts of violence.  Mark Follman wrote a good article in the current issue of Mother Jones about efforts to identify potential mass shooters, and turn them away from violence.  Possibly a lot of violent incidents have been headed off this way.

But, as he wrote, there are “legions” of angry young men who own guns and like violent movies and video games, and yet never commit crimes.   I don’t see how it is feasible to monitor them all.

The baffling question is why this particular type of crime should be on the increase.   Follman talked to experts who said part of the reason is social media, which gives mass shooters a perverse kind of fame.   Mass shooters are typically people leading lives that are meaningless to themselves who want to make an impact—any kind of impact.

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Weekend reading: Links & comments 10/23/2015

October 23, 2015

Iceland Just Jailed Dozens of Corrupt Bankers for 74 Years, the Opposite of What America Does by Jay Syrmopoulos of the Free Thought Project (via AlterNet)

Iceland sentences 26 bankers to a combined 74 years in prison by gjohnsit for Daily Kos (Hat tip to my expatriate friend Jack)

Icelandic courts have sentenced 26 bankers to prison terms for two to five years each—a total of 74 years—for financial fraud and manipulation leading up to the financial crash of 2008.

The important precedent here, and the great contrast with the United States, is that Iceland prosecuted individuals, not banks.  An organization structure cannot commit crimes, any more than a bank building can commit crimes.   It is the individuals within the structure who have criminal responsibility.

JADE: A Global Witness Investigation Into Myanmar’s Big “State Secret” (hat tip to Jack)

High-quality jade is the most valuable product of Myanmar, formerly known as Burma.  But the government and people of the country get little benefit from it.  Instead the trade is controlled by military elites, corporate cronies and U.S.-sanctioned drug lords.

Nawal El Saadawi: ‘Do you feel you are liberated?  I feel I am not’ by Rachel Cooke for The Guardian (Hat tip to Jack)

An interview with the formidable 83-year-old Egyptian author, freethinker, feminist, medical doctor and campaigner against female genital mutilation.

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How heroin came to middle-class white America

August 13, 2015

DREAMLAND: The True Tale of America’s Opiate Epidemic by Sam Quinones is the story of how heroin addiction spread through rural and suburban white America.

Dreamland was the name of a popular swimming pool in Portsmouth, Ohio, a small city on the Ohio river that once was the center of the U.S. shoe manufacturing industry.

The pool closed as the shoe industry declined, but Portsmouth gave birth to a new industry—the mass prescription of  legal but addictive pain medications such as Purdue Pharmaceuticals’ OxyContin.

Regular practitioners were misled into thinking that OxyContin, a biochemical twin of heroin, and related were harmless, but industry really took off with the spread of “pill mills”—medical practices that were limited to the prescription of pills for alleged pain/

DreamlandQuinones51pEBThe business of addictive prescription drugs is one part of the story Quinones told.  The other more startling part is how poor people in the small Mexican town of Xalisco (population about 20,000) created a nationwide distribution franchise system which spread their locally-cooked black tar heroin across the United States.

The Xalisco Boys, as police came to call them, did not carry weapons, did not use drugs themselves, and never sold to black people (whom they thought were violent).   They emphasized product quality, good customer service and competitive prices, with discounts for new customers.

They created an equivalent to a pizza delivery franchise, in which customers could call a certain number and have heroin delivered to a certain spot.   The drivers were inconspicuous, kept out of trouble and drove nondescript vehicles.

They put heroin in balloons, which they kept in their mouths.  When police stopped them, they swallowed the balloons, which they were later able to recover, with the heroin intact.

As they moved out from their original base in the San Fernando Valley, they avoided areas where violent drug gangs operated. Instead they moved into areas where prescription painkillers such as OxyContin were heavily sold, and offered their product as a cheaper and easier-to-obtain substitute.

The Mexican drug cartels and urban criminal gangs are responsible for much of the heroin sold in the United States, Quinones wrote.  They control the heroin trade in Chicago, Atlanta, northern California and many other urban centers, he said; very little heroin comes from Asia any more.   The Xalisco Boys took heroin where the established traffickers never thought to go.

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Behind the test cheating scandal in Atlanta

April 2, 2015

MISC_high-stakes-testingEleven teachers in Atlanta face prison sentences after being convicted of cheating to improve students’ test scores.

I don’t justify cheating.  But they were not alone.  If your future depends on reaching an impossible or near-impossible numerical target, then the pressure to cheat is very great.  That’s not a justification for cheating, but it is an explanation of why cheating was a predictable result of high-stakes testing.

The ninth of the 10 truths of management applies here.

If you are attempting the impossible, you will fail.

As does Goodhart’s law.

When a measure becomes a target, it ceases to be a good measure.

Once more, I am not making an excuse for cheating.  It is wrong, no matter who does it.

But my friend and fellow retiree Bill Elwell passed along an excellent question from his friend, Karen Leshin.

Anyone who knows me, knows that in my professional career as an instructional leader and school administrator, I have been very involved with learning, testing and evaluation. I abhor cheating.  However, when I see school teachers and administrators in Georgia convicted of cheating leaving the  courtroom in handcuffs and facing jail time….I wonder why the bankers on Wall Street involved with crashing our economy and costing our government enormous amounts of money, walked free!  Quite the double standard!

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Mexican drug cartels: the ISIS next door

March 24, 2015

The Mexican drug cartels are just as vicious as the Islamic State and, from the standpoint of Americans, more dangerous.   They behead people, they torture and mutilate people and they have more power than the government over vast territories.  The main difference is that the drug lords worship money.

120814_mexicographic_1The United States government has waged a “war on drugs” by the same means by which it has waged a “war on terror,” by treating it as a military problem instead of a crime problem, and with the same failed result.

American policy has made the drug problem worse, just as it made terrorism worse.

First drug prohibition created a market for the drug cartels, just as, in an earlier era, alcohol prohibition created a market for organized crime in American cities.

Then the U.S. encouraged the Mexican government to wage a military campaign, plus torture and warrant-less detention, against the drug-lords, which escalated the conflict and the violence but did not win.

What the drug gangs are doing is so horrible that I might be tempted to think this was all right, if it was successful.  But it wasn’t.  It just meant that Mexicans are terrorized by their own government as well as the criminals.

The Drug Enforcement Administration took to working with some of the drug cartels against others.   The “Fast and Furious” fiasco, in which the DEA actually supplied guns to a drug gang and then lost track of them, was part of this.

But unlike with ISIS, we Americans do not have the option of walking away from the problem.  The power of the Mexican drug cartels reaches deep into the United States.

Merely liberalizing U.S. drug laws or winding U.S. operations in Mexico will not solve the problem, any more than ending alcohol prohibition solved the problem of organized crime in the USA, or U.S. withdrawal from Afghanistan or Iraq will solve the many problems of those countries.

I hope that a smarter person than me can see a way out.

LINKS

Can You Say “Blowback” in Spanish? by Rebecca Gordon for TomDispatch.   My post is based largely on this excellent, in depth summary of the situation.

Mexican drug cartels are worse than ISIL by Musa al-Gharbi for Al Jazeera.

Why Mexicans are saying they’ve had enough by Ioan Grillo and Simon Kholsa for the Tucson Sentinel.

 

Who was Boris Nemtsov?

March 3, 2015

Thousands of Russians today attended the funeral of Boris Nemtsov, the brave Russian opposition leader who was gunned down Friday a short distance from the Kremlin.

Boris Nemtsov

Boris Nemtsov

But Mark Ames of PandoDaily, who lived in Moscow during the 1990s, recalled Nemtsov as a part of the Boris Yeltsin regime, which was just as corrupt and just as murderous as what came after.   Nemtsov’s bogus reforms hid and facilitated corruption rather than hindering it, Ames wrote.

Unlike with the Vladimir Putin regime today, few American or European journalists or leaders back then cared about the dissolution of the Russian Duma, war against Chechnya or the murders of Russian journalists.

Yeltsin took the advice of Harvard economists and had good relations with the Clinton administration, and so the crimes and follies of his regime were overlooked—at least until the financial crash of 1998.

Of course Nemtsov’s murder is a serious matter, regardless of his political record.  There are many possible culprits.

Nemtsov’s enemies were legion: aside from Putin and his supporters, there are the more extreme nationalists who think Putin is a sell-out. 

Nemtsov’s open support for the Ukrainian government against his own country generated the kind of hatred antiwar activists had to endure during the Vietnam war: think Jane Fonda upon her return from Hanoi. 

Perhaps a bit more lethal are the oligarchs threatened by Nemtsov’s reform program – a series of “anti-corruption” measures ultimately aborted by his mentor, Boris Yeltsin.

via Justin Raimondo – Antiwar.com.

The one possibility I can’t take seriously is that he was killed as a “provocation” to discredit Putin.

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Why still so many Americans in prison?

February 13, 2015

us-incarceration-and-crime-rates

Why are there so many Americans in prison?  Why did the incarceration rate continue to rise even though the rate of violent crime went down?

I thought for a long time that the main reasons were that so many young men, especially black men, were imprisoned for nonviolent drug offenses, and that state laws required judges to impose long sentences even when the crimes were relatively trivial.

But John Pfaff, a Fordham law professor, has done an analysis indicating that, even if you fixed these two things, the U.S. prison population would only decline a little bit.

What then is the problem?  Pfaff said the increased prison population is due to zealous prosecutors.  In 1994, someone who was arrested faced a one change in three that a prosecutor would file felony charges.  By 2008, the odds of a felony charge were two in three.  Statistically, he said, this explains most of the increase.

It is not obvious what to do.  Prosecutors don’t a name for themselves, nor increase their chances of higher office, by exercising restraint.

LINK

Mass incarceration: A provocative new theory for why so many Americans are in prison by Leon Neyfakh for Slate.  (Hat tip to Mike the Mad Biologist)

The Imprisoner’s Dilemma by Oliver Roeder for FiveThirtyEight.  (Hat tip to kottke.org)  More statistics and analysis.  [Added 2/14/15]

China leads the world in executions

October 21, 2014

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Source: The Independent

Last year China executed more people, by far, than the rest of the world combined.

How insiders rob banks and cause crises

March 18, 2014

William K. Blank is professor of economics and law at the University of Missouri at Kansas City, a former bank regulator and author of The Best Way to Rob a Bank Is to Own One (which I haven’t read).

In this TED talk, he explains how crooked bankers enrich themselves through what he calls “control fraud”.  The method is as follows:

  • Make a lot of loans to people you know can’t pay you bank.
  • Conceal the bogus nature of the loans through fraudulent appraisals.
  • Collect high interest rates (for a while)
  • Report record profits (for a while)
  • Collect an enormous salary and enormous bonuses (for a while)
  • Escape scot-free with your riches when the crash comes.

There are two other elements that he doesn’t mention in this particular talk.

  • Convert the loans into financial securities and sell them to suckers
  • Go to Congress and the Federal Reserve Board to be bailed out when the crash comes.

Black said all this has been facilitated for the past 20 years by the Clinton, Bush II and Obama administrations, and by the Federal Reserve Board during that period.  Everything is in place for another crash as big as what came before.

It seems obvious to me that we Americans need to (1) break up the “too big to fail” banks (those whose assets exceed a certain set percentage of Gross Domestic Product, (2) refuse to insure deposits that are used for risky investment and (3) prosecute financial fraud, as was done in the Bush I administration following the savings and loan crash.

LINKS

America Has Become a “Cheater-Take-All” Nation by Willliam K. Black for AlterNet.

The Big Lie That Haunts the Post-Crash Economy by Dean Stockman for The New Republic.   The “big lie” is that “everyone” is to blame for the crash of the housing bubble, when in fact the bubble was mainly due to crooked financiers.

New Lawsuit Alleges That Wells Fargo Has a Manual for Mass Fabrication of Foreclosure Documents by Yves Smith.

Why Prosecutors Whiffed on Subprime Crime by Barry Ritholtz for Bloomberg View.

Hat tip for the video to Yves Smith.

Woody Allen cast as a Dostoyevsky villain

February 9, 2014

Woody Allen’s ex-partner, Mia Farrow, and estranged son, Ronan Farrow, have revived accusations that he raped his seven-year-old adopted daughter, Dyan Fallow, some 21 years ago.  After having read Robert B. Weide’s analysis of the case, I think the accusations (not charges, because prosecutors never filed charges) are unproved.

woody.allen.nihilistGrace Olmstead, writing for the American Conservative, thinks he probably is guilty because this is the kind of thing that an atheistic nihilist would be likely to do.  She compared him to Dostoyevsky’s fictional Svidrigailov from Crime and Punishment who raped a mute 15=year-old girl because, as another Dostoyevsky character said, if God does not exist, all is permitted.  Other writers suspend judgment on Allen’s guilt, but say his philosophy is a justification for child abuse.

What do these writers say about the child abuse perpetrated by priests of the Roman Catholic Church, who were then protected by the church?  Were they atheists and nihilists?  I don’t think so.  I don’t think you can tell much about what people would do by the creeds to which they pay lip service.

LINKS

The Woody Allen Allegations: Not So Fast by Robert B. Weide for The Daily Beast.

Defending the Case Against Woody Allen by Grace Olmstead for the American Conservative.

Woody Allen, Nihilist by Damon Linker for This Week.  Hat tip to Rod Dreher.

UN Report Blasts Catholic Church for Systematic Child Abuse Coverup, an interview of Kirsten Sandberg, chairperson of the UN Committee on the Rights of the Child, on the Real News Network.

I know that there are celebrities who’ve gotten away with sexual abuse of children for years.  I also know from personal acquaintance that innocent people can be falsely accused as a byproduct of martial or child custody disputes.  Based on what I’ve read, I think that Allen’s guilt has not been established, and that he is entitled to a presumption of innocence.

Corporations don’t commit crimes

January 31, 2014

No, corporations do not commit crimes.  Corporate executives commit crimes.  There is a difference.

The U.S. Department of Justice charged JP Morgan Chase with various crimes, including fraudulent sale of mortgage-backed securities, covering up losses, rigging electricity prices and aiding and abetting Bernie Madoff’s Ponzi scheme.  Last September Attorney General Eric Holder announced a settlement of the case, in which JP Morgan Chase agreed to pay nearly $20 billion in fines.

The company responded by laying off 7,500 employees and freezing the pay of employees below the executive level.  But now the board of directors raised the pay of CEO Jamie Dimon, who had ultimate responsibility for the illegal actions, from $11.5 million a year to $20 million.

As Matt Taibbi of Rolling Stone pointed out in a recent post on his web log.

Eric Holder and Barack Obama … decided last year to make a big show of punishing JP Morgan Chase as a symbol of bank corruption, then forgot to punish the actual persons who oversaw the bank’s misdeeds.  This is a little like reining in a school bully by halving his school’s budget.  It doesn’t work.  Crimes are committed by people, and justice has to target people, too.  Otherwise the whole thing is a joke.

But from the board of directors’ point of view, the fine is less than the $25 billion in TARP funds that Dimon got from the federal government when the company was on the verge of collapse.

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Click on Jamie Dimon’s Raise Proves U.S. Regulatory Strategy Is a Joke for the whole article by Matt Taibbi for Rolling Stone.

Click on JP Morgan Chase, Penance and Fines for an account of JP Morgan Chase’s misdeeds by Christopher Brauchli for Huffington Post.

Click on Dimon Does Davos, and His Board Gives Him a Raise for more by Bill Black.

Two good lessons from Finland

December 2, 2013

We Americans could benefit from following the example of Finland’s schools and also its prisons.

How many ombudsmen has the Pope?

November 18, 2013

Autocrats at the top of hierarchical organizations—whether governmental, corporate, religious, military or political—have a lot of power when it comes to crushing dissent or doing battle with outside forces.

But when it comes to internal reform, that autocratic power commonly melts away.   Autocrats who try to reform the institution they supposedly control run into mysterious resistances and obstacles.  An autocrat is only as powerful as the willing obedience of those lower in the hierarchy extends.

Pope Francis

Pope Francis

That’s why I admire and sympathize with Pope Francis in his struggle to clean house at the Institute for Religious Works, also known as the Vatican Bank.  Originally set up to finance the church’s charitable activities, the Vatican Bank operates outside Italian law and financial reporting requirements, and is understood to have been infiltrated by the Italian Mafia for the purposes of money laundering.

I don’t think Pope Francis really is targeted for assassination, as some Italian prosecutors have suggested, but I do think the various Italian Mafias are powerful institutions, and not only in Italy, and they did their utmost to frustrate the Pope’s efforts.

When Jorge Mario Bergoglio became Pope, I wrote about his ambiguous role in Argentina’s “dirty war” under the dictatorship.  I now think that what I wrote was uncharitable and based on incomplete information.

I admire Pope Francis not just for his highly-publicized modeling of the behavior of Jesus toward the poor, sick and outcast, but his willingness to take action against church officials who abuse their power, such as the Bishop of Limberg, Germany, who was suspended for misuse of church funds for his extravagant lifestyle.  You don’t have to be a Catholic to wish him success.

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Traffickers victimize Burma’s Rohingya refugees

August 13, 2013

This documentary by UK Channel 4 News is about victimization of Burma’s persecuted Rohingya Muslim minority.  Living in camps along the Burma-Bangladesh border, they are offered passage to Malaysia by Thai smugglers.  Instead of being taken to Malaysia, they are imprisoned in camps along the Thai border with Malaysia and held for ransom.  If the ransom isn’t paid, they are sold as slave laborers to Thai fishermen.

The investigation led to a camp being raided by Thai officials and kidnap victims being freed.  It would be nice to think that this will be part of an ongoing crackdown and not just a one-time action to counteract bad publicity.

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A white culture of lawlessness?

July 31, 2013

white culture of crime

Click on Video of Violent, Rioting Surfers Shows White Culture of Lawlessness for more.

Click on “…the most violent ethnic group in America” for an earlier post of mine.

Just to be clear, the cartoon and my post are intended to be a satirical comment about how certain types of crime and criminals are treated more leniently than others.  I don’t actually believe that white people as a group are criminal.  Some of my best friends are white people.  In fact, I’m a white person myself.

Click on Mat Bors Archive for more of his cartoons.

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The war on drugs and its Mexican quagmire

May 7, 2013

All the reasons that are given for drug prohibition or, for that matter, gun prohibition are reasons for prohibiting the consumption of alcohol.

The Centers for Disease Control say that alcohol abuse is the third-largest cause of preventable death in the United States.  More than 75,000 deaths a year are attributed to alcohol.  It is involved in 39 percent of highway fatalities, one-third of suicides and 37 percent of rapes and sexual assaults.   Each year there are 3 million violent crimes in which the victim says the offender was drunk.

Given these facts, it was understandable that the United States in 1919 would try prohibiting alcohol.   The prohibition laws did not stop people from consuming alcohol, but they did stimulate the growth of organized crime to a much more powerful place in American life.

But when the Noble Experiment was repealed in 1933, things did not return to the way they were in 1919.  Organized crime did not go out of business.  It sought other activities, and is an important part of American life to this day.  All the evils that Prohibition was intended to alleviate continue to this day.  But no reasonable person wants to restore Prohibition.  It is a cure that is worse than the disease, even though the disease is very real.

carteldrugterritoriesroutes1After reading a report in the Washington Post by Dana Priest on the current state of the war on narco-traffickers in Mexico, I think drug prohibition will end in the same way.   She told how the CIA spearheaded the drug war and developed such close ties with CISEN, the Mexican intelligence service, that it became virtually part of the Mexican government.  The George W. Bush administration stepped up arrests of drug kingpins and attempts to shut down drug smuggling routes.  The druglords responded savagely.

CISEN discovered from a captured videotape and a special analytical group it set up that some of the cartels had hired former members of the U.S.-trained Guatemalan special forces, the Kaibiles, to create sociopathic killers who could behead a man, torture a child or immerse a captive in a vat of acid.

Anxious to counterattack, the CIA proposed electronically emptying the bank accounts of drug kingpins, but was turned down by the Treasury Department and the White House, which feared unleashing chaos in the banking system.

As the Mexican death toll mounted, [President Felipe] Calderon pleaded with Bush for armed drones.  He had been impressed by the results in Iraq and Afghanistan, two former U.S. officials said.  The White House considered the request, but quickly rejected it.  It was far too likely to result in collateral damage, they said.

By 2009, President Obama’s first year in office, horrific scenes had become commonplace throughout Mexico: severed heads thrown onto a dance floor, a half-dozen bodies hanged from a bridge, bombs embedded in cadavers.  Ciudad Juarez, a stone’s throw from El Paso, was a virtual killing zone.

US_mx_drug_homicides_300

… … Success against the cartels’ leadership had helped incite more violence than anyone had predicted, more than 60,000 deaths and 25,000 disappearances in the past seven years alone.

Meanwhile, the drug flow into the United States continued unabated.  Mexico remains the U.S. market’s largest supplier of heroin, marijuana and methamphetamine and the transshipment point for 95 percent of its cocaine.

via The Washington Post.

On Dec. 1, a new President, Enrique Pena Nieto, took office.  According to Priest, he is less interested in the U.S.-backed policy of arresting druglords and more in drug abuse prevention and keeping Mexico’s streets safe.  In other words, he cares more about Mexico’s problems and less about helping the United States solve its problems.

She reported that U.S. officials are worried about President Pena Nieto’s priorities.  I think we in the United States would be wise to adopt these priorities for ourselves.  The roots of the U.S. drug addiction problem are in the United States, not in Mexico, Colombia or any other foreign country.

I think the war on drugs is going to end in the same way as Prohibition.  I don’t think that will be a good result, but I think it will be an inevitable result.  In this, as in many other things, I will be pleased if events prove me wrong.

There are two wise sayings that apply here.  One is Stein’s Rule, by Herbert Stein, the chair of the Council of Economic Advisers under President Nixon.

If something cannot go on forever, someday it will stop.

The other is one of Rumsfeld’s Rules, by Donald Rumsfeld, Secretary of Defense under President George W. Bush.

If a problem cannot be solved, it may not be a problem, but a fact.

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Behind the genocide trial of Rios Montt

April 19, 2013

It’s rare for a tyrant to go on trial for crimes against his people, unless he is defeated in war and tried by the victors.  But it appeared that an exception would be made in the case of General Efrain Rios Montt, ruler of Guatemala in 1982-83, who, with U.S. government approval, ordered his army to massacre and torture Mayan villagers, including women, children and sick people, in a campaign to stamp out guerrilla resistance.

This would have been an important precedent, leading to—who knows?—rulers of the world’s powerful nations being held legally accountable for crimes against humanity.  But as things stand today, it appears that the trial will not go forward.

View the videos for more about the charges against Rios Montt.

Hat tip to Oidin.

[Update 5/11/13]  Rios Montt was sentenced to 80 years in prison after being convicted of genocide.

[Update 5/27/13]  Rios Montt’s conviction was overturned by Guatemala’s Constitutional Court.

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