2010-06-27

Lawmakers guide Dodd-Frank bill for Wall Street reform into homestretch

story by Washington Post
written by David Cho, Jia Lynn Yang and Brady Dennis

Nearly two years after tremors on Wall Street set off a historic economic downturn, congressional leaders greenlighted a bill early Friday that would leave the financial industry largely intact but facing a more powerful network of regulators who could impose limits on risky activities.

The final bill took shape after a 20-hour marathon negotiation between House and Senate leaders seeking to reconcile their separate versions. The legislation puts a lot of faith in the watchful eye of regulators to prevent another financial crisis. New agencies would police consumer lending, the invention of financial products and the trading of exotic securities known as derivatives. Bank supervisors would have the power to seize large, troubled financial firms whose collapse could threaten the entire system. The bill calls for banks to hold more money in reserve to weather economic storms but leaves the details to regulators.

But with a few exceptions, the measure avoids dictating to Wall Street what it can and cannot do. The bill does not break up big banks or ban the trading of derivatives. Nor does it significantly streamline the confusing array of financial regulators in Washington.

The House and Senate are set to vote on the legislation next week, and administration officials said President Obama could sign it into law before July 4.

The action capped a surprisingly good week for Wall Street. On Thursday, Democrats failed to pass a separate bill that would have raised taxes on some of the country's wealthiest financiers. On Friday, stocks of financial firms jumped when trading opened in New York. Many analysts said the markets breathed a collective sigh of relief that the regulatory reform talks were over and that the results could have been much worse for the financial industry.

One firm that is likely to face more oversight is Goldman Sachs, which has become emblematic of the excesses of Wall Street. Regulators would more carefully track the firm's riskiest activities. In the coming year, a regulatory council could force the bank to shed its sizable hedge funds and private-equity activities. It also could be banned from making financial trades for its own profit instead of for clients, shaving roughly 10 percent from the firm's revenue. But after those changes, Goldman Sachs and a few other financial titans will still dominate the financial system, the analysts said.

A flurry of dealmaking allowed several industries to escape the new system. At the last minute, auto dealers were granted exemptions from new consumer rules, despite their major role in lending. Most mutual fund and insurance companies avoided a ban on some risky trading. Community banks, which make up the vast majority of their industry, got a carve-out months ago.

Still, the deal reached a few minutes before dawn Friday all but ensures that Obama will see his second major legislative achievement of the year, after health care, Democrats said. It also gives the president momentum as he presses major economies in Europe and Asia to make similar changes at an economic summit in Toronto this weekend.

"We are poised to pass the toughest financial reform since the ones we created in the aftermath of the Great Depression," Obama said at the White House, adding that the bill "represents 90 percent of what I proposed when I took up this fight . . . We've all seen what happens when there is inadequate oversight and insufficient transparency on Wall Street."

Asked whether he expected the compromise legislation to pass the full Senate -- which approved an earlier version, 59-39 on May 20, with support from four Republicans -- Obama replied, "You bet."

Republican lawmakers who serve on congressional financial panels blasted the compromise bill. "This legislation is a failure on both counts," Sen. Judd Gregg (R-N.H.) said in a statement. "It will not encourage much-needed stability and confidence in our financial markets. It will not significantly reduce systemic risk in our financial sector."

A flurry of change

The bill's final passage would set off a rush of activity. Two long-standing bank regulators would be combined, and regulators would have to launch more than 20 studies on controversial topics such as limiting the risky activities of big financial firms and setting precise capital reserve standards for banks.

Some administration officials acknowledged that leaving so much decision-making in the hands of regulators could open the process to lobbying by the financial industry. Many bank supervisors, in fact, work inside the headquarters of the biggest financial firms and have close relationships with the executives of the companies they regulate.

Among the first tasks for the administration would be to set up a new consumer protection bureau that would monitor credit card companies, mortgage brokers and banks to make sure consumers have clear information about financial products. The new agency, while housed in the Federal Reserve, would have its own budget and director appointed by the president and would have wide authority to write consumer protection rules and enforce them with civil penalties. It could, for instance, force mortgage lenders to be more upfront about possible interest increases in adjustable-rate loans. During the crisis, many borrowers were caught off guard by the rise in rates on such loans.

The wee hours of Friday morning brought about the final and most arduous compromises between lawmakers in reconciling the chambers' two versions of the bill.

Sen. Blanche Lincoln (D-Ark.) agreed to scale back a controversial provision that would have forced the nation's biggest banks to spin off their lucrative derivatives-dealing businesses. The proposal had been a particularly thorny issue for Democrats, causing internal divisions that threatened to derail the entire process.

Administration officials and Democratic leaders worked fervently to bridge the divide between Lincoln and a bloc of House Democrats that opposed the provision, especially those from New York, where much of the derivatives industry is concentrated. Finally, the two sides agreed to allow banks to hold onto derivatives related to traditional banking operations such as interest rates, currency rates and gold and silver. Banks would have to move their riskiest derivatives trades into an affiliate that must have its own capital reserves. The Senate agreed to the compromise language just after 2:30 a.m.

'Volcker rule'

The conference panel also strengthened the "Volcker rule," named after former Federal Reserve chairman Paul Volcker. That measure would bar banks from trading with their own money, a practice known as proprietary trading. In reaching this deal, negotiators adopted a provision that would ban certain forms of proprietary trading and forbid firms from betting against securities they sell to clients.

Under the agreement, firms would have up to two years to scale back proprietary trading and investments in hedge funds and private-equity funds. Banks also would be barred from betting against their clients on certain investments.

Even as they worked to toughen the Volcker language, lawmakers agreed to an exemption at the behest of Sen. Scott Brown (R-Mass.), one of the four Republicans who voted for the earlier version of the bill. Brown, whose state is a hub of the asset-management industry, wanted the bill to allow banks to invest at least a small amount of capital in hedge funds and private-equity investments. The measure would prohibit a bank from placing more than 3 percent of its capital in such investments. It was one of a number of provisions tailored to hold onto key votes as the bill heads toward final passage.

The cavernous Dirksen 106 conference room remained packed as dawn approached, but it was a chaotic and cluttered mass of humanity. Lawmakers had stopped trying to conceal their yawns. Aides who had worn down their BlackBerry batteries recharged them for the home stretch. Trash cans spilled over with coffee cups and sandwich wrappers. Empty Fritos bags and plastic Diet Coke bottles littered the room, along with reams of paper: old amendments, new amendments, handwritten amendments, amendments to amendments.

Weary lawmakers wrapped up their work minutes before sunrise.

"It's a great moment. I'm proud to have been here," said a teary-eyed Sen. Christopher J. Dodd (D-Conn.), who as chairman of the Senate Banking Committee led the effort in the Senate. "No one will know until this is actually in place how it works. But we believe we've done something that has been needed for a long time. It took a crisis to bring us to the point where we could actually get this job done."

One of the last motions Friday was to name the bill after the two chairmen, Dodd and Rep. Barney Frank (D-Mass.), who had shepherded the legislation through the House over the past year. At 5:07 a.m., they agreed unanimously that it would be known as the Dodd-Frank bill, and the sound of applause echoed down the empty hallways.

Michael Jackson's '84 Victory Tour glove sells for $190K

story and photo by AP

Bidders from around the world bought up Michael Jackson memorabilia worth nearly $1 million at an auction on the anniversary of his death, including $190,000 for the Swarovski-crystal-studded glove he wore on his 1984 Victory Tour.The bidding that began Friday on more than 200 items was "unlike anything we've ever experienced," said Darren Julien of Julien's Auctions, which ran the auction at Planet Hollywood in Las Vegas.

Some items, like the glove, brought 10 times more than their estimated value, he said.

"It just shows you Michael Jackson is the most sought after and most collectible celebrity of all time. It was just phenomenal," Julien told the Las Vegas Review-Journal.

"People flew in from Asia, Russia, all over. Now that he's gone, we now realize the true legend we lost," said Julien, who has not had a similar auction in his 15 years in the business. He predicted the sales would easily top $1 million by the time the auction wrapped up Sunday.

The glove had been expected to sell for between $20,000 and $30,000. The $190,000 sale price included the buyer's premium of $30,000, a standard industry fee that goes to the auction house, Julien said.

The winning bidder was Wanda Kelley of Los Angeles, who also bought a number of Jackson's albums at the auction, the Las Vegas Sun reported. She said she was prepared to go higher if necessary.

"Let's just say I wasn't walking out of here without that glove," she said.

A pair of Jackson's stage-worn loafers that were listed as worth $2,000 to $3,000 went for $90,000.

The custom jacket that the pop singer was wearing during his interview with Barbara Walters was listed at $6,000 to $8,000. It sold for $120,000.

A white Fedora sold for $56,250. One of the last autographs Jackson signed, and dated June 24, 2009, in his handwriting, went for $21,000.

Non-Jackson items that sold at the auction included:

• A Jimi Hendrix Fender guitar for $180,000.

• Prince's "Purple Rain" handwritten lyrics, which sold for $66,000.

• An Elvis Presley shirt worn in 1956 on "The Milton Berle Show," which fetched $61,200.

2010-06-25

WALL STREET REFORM REACHES FINAL STRETCH

WASHINGTON, DC – House Majority Whip James E. Clyburn today released the following statement after the House-Senate Conference Committee reached a final agreement on the Wall Street reform bill. This legislation is the most comprehensive and consumer friendly financial reform since 1933.
“Wall Street reform is an important step in our path to recovery. This legislation creates a new Consumer Financial Protection Agency, limits the fees banks can charge merchants to process debit-card transactions, empowers oversight bodies like the Securities and Exchange Commission, and helps to dismantle 'too big to fail' firms. In short, Wall Street reform prevents the irresponsible behaviors and practices that led to the financial crisis.

“While Democrats worked to find a way to restore responsibility and accountability to Wall Street, Congressional Republicans once again chose to defend Wall Street instead of Main Street. I look forward to passing this historic legislation next week and sending it to President Obama to make it the law of the land.”

2010-06-23

McChrystal out; Petraeus picked for Afghanistan

AP – President Barack Obama, flaked by Vice President Joe Biden and Gen. David Petraeus, concludes his statement in the Rose Garden at the White House in Washington DC. today, where the President announced that General Petreas will replace General Stanley A. McChrystal.

story by AP
written by Jennifer Loven


WASHINGTON – President Barack Obama sacked his loose-lipped Afghanistan commander Wednesday, a seismic shift for the military order in wartime, and chose the familiar, admired — and tightly disciplined — Gen. David Petraeus to replace him. Petraeus, architect of the Iraq war turnaround, was once again to take hands-on leadership of a troubled war effort.

Obama said bluntly that Gen. Stanley McChrystal's scornful remarks about administration officials represent conduct that "undermines the civilian control of the military that is at the core of our democratic system." He ousted the commander after a face to face meeting in the Oval Office and named Petraeus, the Central Command chief who was McChrystal's direct boss, to step in. http://kirktanter.blogspot.com/2010/06/stanley-mcchrystal-runaway-general-full.html

In a statement expressing praise for McChrystal yet certainty he had to go, Obama said he did not make the decision over any disagreement in policy or "out of any sense of personal insult." Flanked by Vice President Joe Biden, Defense Secretary Robert Gates and Adm. Mike Mullen, chairman of the Joint Chiefs of Staff, in the Rose Garden, he said: "War is bigger than any one man or woman, whether a private, a general, or a president."

He urged the Senate to confirm Petraeus swiftly and emphasized the Afghanistan strategy he announced in December was not shifting with McChrystal's departure.

"This is a change in personnel but it is not a change in policy," Obama said.

Indeed, as Obama was speaking, McChrystal released a statement saying that he resigned out of "a desire to see the mission succeed."

"I strongly support the president's strategy in Afghanistan," McChrystal said.

Obama hit several grace notes about McChrystal and his service after their Oval Office meeting, saying that he made the decision to sack him "with considerable regret." And yet, he said the job in Afghanistan cannot be done now under McChrystal's leadership, asserting that the critical remarks from the general and his inner circle in the Rolling Stone magazine article displayed conduct that doesn't live up to the standards for a command-level officer.

Obama seemed to suggest that McChrystal's military career is over, saying the nation should be grateful "for his remarkable career in uniform" as if that has drawn to a close.

McChrystal left the White House after the meeting and returned to his military quarters at Washington's Fort McNair. A senior military official said there is no immediate decision about whether he would retire from the Army, which has been his entire career. The official spoke on condition of anonymity because he was not authorized to speak publicly.

Petraeus, who attended a formal Afghanistan war meeting at the White House on Wednesday, has had overarching responsibility for the wars in both Afghanistan and Iraq as head of Central Command. He was to vacate the Central Command post after his expected confirmation, giving Obama another key opening to fill. The Afghanistan job is actually a step down from his current post but one that filled Obama's pre-eminent need.

Petraeus is the nation's best-known military man, having risen to prominence as the commander who turned around the Iraq war in 2007, applying a counterinsurgency strategy that has been adapted for Afghanistan.

He has a reputation for rigorous discipline. He keeps a punishing pace — spending more than 300 days on the road last year. He briefly collapsed during Senate testimony last week, apparently from dehydration. It was a rare glimpse of weakness for a man known as among the military's most driven.

In the hearing last week, Petraeus told Congress he would recommend delaying the pullout of U.S. forces from Afghanistan beginning in July 2011 if need be, saying security and political conditions in Afghanistan must be ready to handle a U.S. drawdown.

That does not mean Petraeus is opposed to bringing some troops home, and he said repeatedly that he supports Obama's revamped Afghanistan strategy. Petraeus' caution is rooted in the fact that the uniformed military — and counterinsurgency specialists in particular — have always been uncomfortable with rigid parameters.

With Washington abuzz, there had been a complete lockdown on information about the morning's developments until just before Obama spoke. By pairing the decision on McChrystal's departure with the name of his replacement, Obama is seeking to move on as quickly as possible from the firestorm.

In the magazine article, McChrystal called the period last fall when the president was deciding whether to approve more troops "painful" and said the president appeared ready to hand him an "unsellable" position. McChrystal also said he was "betrayed" by Ambassador Karl Eikenberry, the man the White House chose to be his diplomatic partner in Afghanistan. http://kirktanter.blogspot.com/2010/06/stanley-mcchrystal-runaway-general-full.html

He accused Eikenberry of raising doubts about Karzai only to give himself cover in case the U.S. effort failed. "Now, if we fail, they can say 'I told you so,'" McChrystal told the magazine. And he was quoted mocking Vice President Joe Biden.

If not insubordination, the remarks — as well as even sharper commentary about Obama and his White House from several in McChrystal's inner circle — were at the least an extraordinary challenge from a military leader. The capital hadn't seen a similar public contretemps between a president and a top wartime commander since Harry Truman stripped Gen. Douglas MacArthur of his command more than a half-century ago after disagreements over Korean war strategy.

Notably, neither McChrystal nor his team questioned the accuracy of the story or the quotes in it. McChrystal issued an apology. http://kirktanter.blogspot.com/2010/06/stanley-mcchrystal-runaway-general-full.html

Despite McChrystal's military achievements, he has a history of making waves and this was not his first brush with Obama's anger. Last fall as Obama was weighing how to adjust Afghanistan policy, McChrystal spoke bluntly and publicly about his desire for more troops — earning a scolding from the president, who felt the general was trying to box him into a corner.

Waheed Omar, spokesman for Afghan President Hamid Karzai, said Petraeus "will also be a trusted partner." Karzai had been a lonely voice in speaking out in support of McChrystal. But Omar said of Petraeus: "He is the most informed person and the most obvious choice for this job." http://kirktanter.blogspot.com/2010/06/stanley-mcchrystal-runaway-general-full.html

Obama 'angry' after reading McChrystal's remarks

story by CNN

President Barack Obama was "angry" after reading Gen. Stanley McChrystal's remarks about colleagues in a Rolling Stone article http://kirktanter.blogspot.com/2010/06/stanley-mcchrystal-runaway-general-full.html , White House press secretary Robert Gibbs said Tuesday.

McChrystal has been recalled to Washington to explain his actions to the president. He is expected to meet with Obama in the Oval Office on Wednesday, Gibbs said. Gibbs refused to speculate about McChrystal's fate, but told reporters "all options are on the table."

The White House will have more to say after Wednesday's meeting, Gibbs said. He noted, however, that McChrystal did not take part in a teleconference Obama had with Afghan President Hamid Karzai and other top officials on Tuesday.

The "magnitude and graveness" of McChrystal's mistake in conducting the interview for the article were "profound," Gibbs said. Defense Secretary Robert Gates said McChrystal had "made a significant mistake and exercised poor judgment."

Several elected officials have strongly criticized McChrystal but deferred to the president on the politically sensitive question of whether the general should keep his current position. A couple of key congressmen, however, have openly called for McChrystal's removal.

McChrystal apologized Tuesday for the Rolling Stone profile, in which he and his staff appear to mock top civilian officials, including the vice president. Two defense officials said the general also has fired a press aide over the article, set to appear in Friday's edition of Rolling Stone http://kirktanter.blogspot.com/2010/06/stanley-mcchrystal-runaway-general-full.html .

"I extend my sincerest apology for this profile. It was a mistake reflecting poor judgment and should never have happened," McChrystal said in a Pentagon statement. "Throughout my career, I have lived by the principles of personal honor and professional integrity. What is reflected in this article falls far short of that standard."

In the profile, writer Michael Hastings writes that McChrystal and his staff had imagined ways of dismissing Vice President Joe Biden with a one-liner as they prepared for a question-and-answer session in Paris, France, in April. The general had grown tired of questions about Biden since earlier dismissing a counterterrorism strategy the vice president had offered.

"'Are you asking about Vice President Biden?' McChrystal says with a laugh. 'Who's that?'"

"'Biden?' suggests a top adviser. 'Did you say: Bite Me?'"

McChrystal does not directly criticize Obama in the article, but Hastings writes that the general and Obama "failed to connect" from the outset. Sources familiar with the meeting said McChrystal thought Obama looked "uncomfortable and intimidated" by the room full of top military officials, according to the article.

Later, McChrystal's first one-on-one meeting with Obama "was a 10-minute photo op," Hastings writes, quoting an adviser to McChrystal. "Obama clearly didn't know anything about him, who he was. Here's the guy who's going to run his f---ing war, but he didn't seem very engaged. The Boss (McChrystal) was disappointed."

The article on to paint McChrystal as a man who "has managed to piss off almost everyone with a stake in the conflict," including U.S. Ambassador Karl Eikenberry, special representative to Afghanistan Richard Holbrooke and national security adviser Jim Jones. Obama is not named as one of McChrystal's "team of rivals." http://kirktanter.blogspot.com/2010/06/stanley-mcchrystal-runaway-general-full.html

Of Eikenberry, who railed against McChrystal's strategy in Afghanistan in a cable leaked to The New York Times in January, the general is quoted as saying, "'Here's one that covers his flank for the history books. Now if we fail, they can say, "I told you so.'"

Hastings writes in the profile that McChrystal has a "special skepticism" for Holbrooke, the official in charge of reintegrating Taliban members into Afghan society and the administration's point man for Afghanistan and Pakistan.

"At one point on his trip to Paris, McChrystal checks his BlackBerry, according to the article. 'Oh, not another e-mail from Holbrooke,' he groans. 'I don't even want to open it.' He clicks on the message and reads the salutation out loud, then stuffs the BlackBerry back in his pocket, not bothering to conceal his annoyance.

"'Make sure you don't get any of that on your leg,' an aide jokes, referring to the e-mail."

Both Democrats and Republicans have been strongly critical of McChrystal in the wake of the story. House Appropriations Committee chairman David Obey, D-Wisconsin, called McChrystal the latest in a "long list of reckless, renegade generals who haven't seemed to understand that their role is to implement policy, not design it."

McChrystal is "contemptuous" of civilian authority and has demonstrated "a bull-headed refusal to take other people's judgments into consideration."

Senate Foreign Relations Committee chairman John Kerry, D-Massachusetts, urged a cooling off period before a final decision is rendered on the general. My "impression is that all of us would be best served by just backing off and staying cool and calm and not sort of succumbing to the normal Washington twitter about this for the next 24 hours."

Sens. John McCain of Arizona, Lindsey Graham of South Carolina, Joe Lieberman of Connecticut and Jim Webb of Virginia -- all key senators on defense and foreign policy issues -- were each strongly critical of McChrystal's remarks, but noted that the general's future is a decision for Obama to make.

Karzai also weighed in, urging Obama to keep McChrystal as the U.S. commander in Afghanistan. The government in Kabul believes McChrystal is a man of strong integrity who has a strong understanding of the Afghan people and their culture, presidential spokesman Waheed Omar said.

A U.S. military official said Tuesday that McChrystal has spoken to Biden, Defense Secretary Robert Gates, Joint Chiefs of Staff chairman Adm. Mike Mullen and other officials referenced in the story, including Holbrooke, Eikenberry and Jones.

An official at the U.S. Embassy in Kabul said Eikenberry and McChrystal "are both fully committed" to Obama's Afghan strategy and are working together to implement the plan. "We have seen the article and General McChrystal has already spoken to it," according to a statement from an embassy official, making reference to McChrystal's apology.

"I have enormous respect and admiration for President Obama and his national security team, and for the civilian leaders and troops fighting this war and I remain committed to ensuring its successful outcome," McChrystal said in the closing to his apology.

Rolling Stone executive editor Eric Bates, however, struck a less optimistic tone during an interview with CNN on Tuesday.

The comments made by McChrystal and other top military aides during the interview were "not off the cuff remarks," he said. They "knew what they were doing when they granted the access." The story shows "a deep division" and "war within the administration" over strategy in Afghanistan, he contended. http://kirktanter.blogspot.com/2010/06/stanley-mcchrystal-runaway-general-full.html

King of Pop's estate has rebounded since death



story by AP
written by Ryan Nakashima

LOS ANGELES – The money is rolling in. The bills are being paid. And all those people who said Michael Jackson might earn more in death than in life are being proved right.

Like the estates of Elvis Presley and Yves Saint Laurent, Jackson's has grown immensely since he died on June 25, 2009.

Without Jackson's lavish spending sprees, and with the help of new revenue pouring in from nostalgia over the reign of the King of Pop, estate co-executors John Branca and John McClain have dramatically turned around Jackson's finances.

A kingdom that was on the verge of collapse from more than $500 million in debt now looks to be able to support his three children and his mother and donate healthily to children's charities.

The estate has earned more than $250 million in the year since he died. Executors used some of that to pay off $70 million in debt, including the $5 million mortgage on the Jackson family compound in Encino, part of Los Angeles. The interest payments on the remaining debt are now covered by a steady flow of cash.

"They're off to a spectacularly good start," said Lance Grode, a former Jackson lawyer and adjunct professor at the University of Southern California Law School. He added, however, "there's a long way to go before they pay off all of their debts."

A rundown of deals suggests that Jackson's fortune will be even bigger than could have been realized by a planned series of comeback concerts:

• A posthumous deal to sell unreleased Jackson recordings with Sony Music guaranteed $200 million over seven years. It has already brought $125 million to the estate.

• The film "This Is It," based on his final concert rehearsal footage, grossed $252 million worldwide. Sony Pictures paid the estate $60 million in advance, with an undisclosed amount more to come from DVD sales.

• Licensing deals on merchandise sold by Universal Music Group's Bravado unit and a new dance game by Ubisoft Entertainment brought in $26 million in advances. More is possible if unit sales are high.

• The Mijac Music catalog of copyrights, on songs that Jackson wrote, generated $25 million in the past year, thanks to heavy airplay on radio stations and song and album sales.

• Music publisher Sony/ATV, the copyright holder of the Beatles' and other artists' songs, posted double-digit percentage revenue gains in the year through March. That netted Jackson's estate, which owns a 50 percent stake, $11 million.

• Other income, including from a rerelease of Jackson's autobiography, "Moon Walk," and sales of commemorative tickets to his canceled concerts, brought in another $25 million.

The tally does not include a deal with Cirque du Soleil for shows inspired by Jackson's music, in which the estate will share half the costs and profits when the performances begin in late 2011. Nor does it account for a deal in the works to nearly double the estate's income from Sony/ATV. That cash goes to pay down most of Jackson's remaining debt.

According to co-executor Branca, Jackson's longtime lawyer and business manager, the new deals follow a script the two set out shortly before the singer died.

"When I met with him before he died we went through an agenda. John (McClain) and I are really executing on that," Branca told The Associated Press. "We're doing the things we think Michael would have wanted."

Several people have been paid for overdue bills after spending years trying to track the singer down. Others who haven't yet been paid say they have been treated professionally by the estate; a night and day change from his old regime.

"We couldn't (collect) until unfortunately he passed away," said Joseph Akhtarzad, a Jackson family friend who owns the Santa Monica-based Video & Audio Center. Last month, the estate settled a $128,429 tab with Akhtarzad for electronics goods owed since 2007.

Thomas Mesereau, who successfully defended Jackson in his 2005 child molestation trial, said the estate recently paid his law firm $341,452 for services provided after the trial, when Jackson moved to Bahrain.

The firm revived its claim in September because it gave up dealing with Jackson's previous managers.

If Elvis is any example, a moderate level of earnings could flow into Jackson's estate for decades.
Sony Music said more than 31 million Jackson albums have sold worldwide since he died, a stratospheric number for a music industry in decline.

With 8.3 million albums sold in the U.S., he was the top-selling artist in 2009, easily topping Taylor Swift's 4.6 million. It marked the most albums sold in a year since Usher topped 8 million in 2004, according to Nielsen SoundScan.

Even since the start of this year, Jackson songs have been played on American radio stations 140,000 times, about 10 times the pace before he died, according to Nielsen. Nearly a million Jackson albums have sold this year and a new album of unreleased material is set to hit stores in November, roughly in tandem with a new video game in which fans can mimic his signature moves.

"In the year that Michael has gone, we realize how incredibly talented he was," said Marty Bandier, the chief executive of Sony/ATV. "The guy was the King of Pop and more."

2010-06-22

Stanley McChrystal: The Runaway General - Full interview/article from Rolling Stone -

Even though he had voted for President Obama, Gen. Stanley McChrystal, right, and his new commander in chief failed from the outset to connect (Souza/WH).

story by Rolling Stone
written by Michael Hastings

This article, as it appears in Rolling Stone magazine, contains profanity.

“How'd I get screwed into going to this dinner?" demands Gen. Stanley McChrystal. It's a Thursday night in mid-April, and the commander of all U.S. and NATO forces in Afghanistan is sitting in a four-star suite at the Hôtel Westminster in Paris. He's in France to sell his new war strategy to our NATO allies – to keep up the fiction, in essence, that we actually have allies. Since McChrystal took over a year ago, the Afghan war has become the exclusive property of the United States. Opposition to the war has already toppled the Dutch government, forced the resignation of Germany's president and sparked both Canada and the Netherlands to announce the withdrawal of their 4,500 troops. McChrystal is in Paris to keep the French, who have lost more than 40 soldiers in Afghanistan, from going all wobbly on him.

"The dinner comes with the position, sir," says his chief of staff, Col. Charlie Flynn.

McChrystal turns sharply in his chair.

"Hey, Charlie," he asks, "does this come with the position?"


McChrystal gives him the middle finger.

The general stands and looks around the suite that his traveling staff of 10 has converted into a full-scale operations center. The tables are crowded with silver Panasonic Toughbooks, and blue cables crisscross the hotel's thick carpet, hooked up to satellite dishes to provide encrypted phone and e-mail communications. Dressed in off-the-rack civilian casual – blue tie, button-down shirt, dress slacks – McChrystal is way out of his comfort zone. Paris, as one of his advisers says, is the "most anti-McChrystal city you can imagine." The general hates fancy restaurants, rejecting any place with candles on the tables as too "Gucci." He prefers Bud Light Lime (his favorite beer) to Bordeaux, Talladega Nights (his favorite movie) to Jean-Luc Godard. Besides, the public eye has never been a place where McChrystal felt comfortable: Before President Obama put him in charge of the war in Afghanistan, he spent five years running the Pentagon's most secretive black ops.


"What's the update on the Kandahar bombing?" McChrystal asks Flynn. The city has been rocked by two massive car bombs in the past day alone, calling into question the general's assurances that he can wrest it from the Taliban.


"We have two KIAs, but that hasn't been confirmed," Flynn says.

McChrystal takes a final look around the suite. At 55, he is gaunt and lean, not unlike an older version of Christian Bale in Rescue Dawn. His slate-blue eyes have the unsettling ability to drill down when they lock on you. If you've fucked up or disappointed him, they can destroy your soul without the need for him to raise his voice.

"I'd rather have my ass kicked by a roomful of people than go out to this dinner," McChrystal says.

He pauses a beat.

"Unfortunately," he adds, "no one in this room could do it."


With that, he's out the door.


"Who's he going to dinner with?" I ask one of his aides.

"Some French minister," the aide tells me. "It's fucking gay."


The next morning, McChrystal and his team gather to prepare for a speech he is giving at the École Militaire, a French military academy. The general prides himself on being sharper and ballsier than anyone else, but his brashness comes with a price: Although McChrystal has been in charge of the war for only a year, in that short time he has managed to piss off almost everyone with a stake in the conflict. Last fall, during the question-and-answer session following a speech he gave in London, McChrystal dismissed the counterterrorism strategy being advocated by Vice President Joe Biden as "shortsighted," saying it would lead to a state of "Chaos-istan." The remarks earned him a smackdown from the president himself, who summoned the general to a terse private meeting aboard Air Force One. The message to McChrystal seemed clear: Shut the fuck up, and keep a lower profile


Now, flipping through printout cards of his speech in Paris, McChrystal wonders aloud what Biden question he might get today, and how he should respond. "I never know what's going to pop out until I'm up there, that's the problem," he says. Then, unable to help themselves, he and his staff imagine the general dismissing the vice president with a good one-liner.

"Are you asking about Vice President Biden?" McChrystal says with a laugh. "Who's that?"

"Biden?" suggests a top adviser. "Did you say: Bite Me?"


When Barack Obama entered the Oval Office, he immediately set out to deliver on his most important campaign promise on foreign policy: to refocus the war in Afghanistan on what led us to invade in the first place. "I want the American people to understand," he announced in March 2009. "We have a clear and focused goal: to disrupt, dismantle and defeat Al Qaeda in Pakistan and Afghanistan." He ordered another 21,000 troops to Kabul, the largest increase since the war began in 2001. Taking the advice of both the Pentagon and the Joint Chiefs of Staff, he also fired Gen. David McKiernan – then the U.S. and NATO commander in Afghanistan – and replaced him with a man he didn't know and had met only briefly: Gen. Stanley McChrystal. It was the first time a top general had been relieved from duty during wartime in more than 50 years, since Harry Truman fired Gen. Douglas MacArthur at the height of the Korean War.


Even though he had voted for Obama, McChrystal and his new commander in chief failed from the outset to connect. The general first encountered Obama a week after he took office, when the president met with a dozen senior military officials in a room at the Pentagon known as the Tank. According to sources familiar with the meeting, McChrystal thought Obama looked "uncomfortable and intimidated" by the roomful of military brass. Their first one-on-one meeting took place in the Oval Office four months later, after McChrystal got the Afghanistan job, and it didn't go much better. "It was a 10-minute photo op," says an adviser to McChrystal. "Obama clearly didn't know anything about him, who he was. Here's the guy who's going to run his fucking war, but he didn't seem very engaged. The Boss was pretty disappointed."


From the start, McChrystal was determined to place his personal stamp on Afghanistan, to use it as a laboratory for a controversial military strategy known as counterinsurgency. COIN, as the theory is known, is the new gospel of the Pentagon brass, a doctrine that attempts to square the military's preference for high-tech violence with the demands of fighting protracted wars in failed states. COIN calls for sending huge numbers of ground troops to not only destroy the enemy, but to live among the civilian population and slowly rebuild, or build from scratch, another nation's government – a process that even its staunchest advocates admit requires years, if not decades, to achieve. The theory essentially rebrands the military, expanding its authority (and its funding) to encompass the diplomatic and political sides of warfare: Think the Green Berets as an armed Peace Corps. In 2006, after Gen. David Petraeus beta-tested the theory during his "surge" in Iraq, it quickly gained a hardcore following of think-tankers, journalists, military officers and civilian officials. Nicknamed "COINdinistas" for their cultish zeal, this influential cadre believed the doctrine would be the perfect solution for Afghanistan. All they needed was a general with enough charisma and political savvy to implement it.


As McChrystal leaned on Obama to ramp up the war, he did it with the same fearlessness he used to track down terrorists in Iraq: Figure out how your enemy operates, be faster and more ruthless than everybody else, then take the fuckers out. After arriving in Afghanistan last June, the general conducted his own policy review, ordered up by Defense Secretary Robert Gates. The now-infamous report was leaked to the press, and its conclusion was dire: If we didn't send another 40,000 troops – swelling the number of U.S. forces in Afghanistan by nearly half – we were in danger of "mission failure." The White House was furious. McChrystal, they felt, was trying to bully Obama, opening him up to charges of being weak on national security unless he did what the general wanted. It was Obama versus the Pentagon, and the Pentagon was determined to kick the president's ass.

Last fall, with his top general calling for more troops, Obama launched a three-month review to re-evaluate the strategy in Afghanistan. "I found that time painful," McChrystal tells me in one of several lengthy interviews. "I was selling an unsellable position." For the general, it was a crash course in Beltway politics – a battle that pitted him against experienced Washington insiders like Vice President Biden, who argued that a prolonged counterinsurgency campaign in Afghanistan would plunge America into a military quagmire without weakening international terrorist networks. "The entire COIN strategy is a fraud perpetuated on the American people," says Douglas Macgregor, a retired colonel and leading critic of counterinsurgency who attended West Point with McChrystal. "The idea that we are going to spend a trillion dollars to reshape the culture of the Islamic world is utter nonsense.


In the end, however, McChrystal got almost exactly what he wanted. On December 1st, in a speech at West Point, the president laid out all the reasons why fighting the war in Afghanistan is a bad idea: It's expensive; we're in an economic crisis; a decade-long commitment would sap American power; Al Qaeda has shifted its base of operations to Pakistan. Then, without ever using the words "victory" or "win," Obama announced that he would send an additional 30,000 troops to Afghanistan, almost as many as McChrystal had requested. The president had thrown his weight, however hesitantly, behind the counterinsurgency crowd.

Today, as McChrystal gears up for an offensive in southern Afghanistan, the prospects for any kind of success look bleak. In June, the death toll for U.S. troops passed 1,000, and the number of IEDs has doubled. Spending hundreds of billions of dollars on the fifth-poorest country on earth has failed to win over the civilian population, whose attitude toward U.S. troops ranges from intensely wary to openly hostile. The biggest military operation of the year – a ferocious offensive that began in February to retake the southern town of Marja – continues to drag on, prompting McChrystal himself to refer to it as a "bleeding ulcer." In June, Afghanistan officially outpaced Vietnam as the longest war in American history – and Obama has quietly begun to back away from the deadline he set for withdrawing U.S. troops in July of next year. The president finds himself stuck in something even more insane than a quagmire: a quagmire he knowingly walked into, even though it's precisely the kind of gigantic, mind-numbing, multigenerational nation-building project he explicitly said he didn't want.


Even those who support McChrystal and his strategy of counterinsurgency know that whatever the general manages to accomplish in Afghanistan, it's going to look more like Vietnam than Desert Storm. "It's not going to look like a win, smell like a win or taste like a win," says Maj. Gen. Bill Mayville, who serves as chief of operations for McChrystal. "This is going to end in an argument."

The night after his speech in Paris, McChrystal and his staff head to Kitty O'Shea's, an Irish pub catering to tourists, around the corner from the hotel. His wife, Annie, has joined him for a rare visit: Since the Iraq War began in 2003, she has seen her husband less than 30 days a year. Though it is his and Annie's 33rd wedding anniversary, McChrystal has invited his inner circle along for dinner and drinks at the "least Gucci" place his staff could find. His wife isn't surprised. "He once took me to a Jack in the Box when I was dressed in formalwear," she says with a laugh.


The general's staff is a handpicked collection of killers, spies, geniuses, patriots, political operators and outright maniacs. There's a former head of British Special Forces, two Navy Seals, an Afghan Special Forces commando, a lawyer, two fighter pilots and at least two dozen combat veterans and counterinsurgency experts. They jokingly refer to themselves as Team America, taking the name from the South Park-esque sendup of military cluelessness, and they pride themselves on their can-do attitude and their disdain for authority. After arriving in Kabul last summer, Team America set about changing the culture of the International Security Assistance Force, as the NATO-led mission is known. (U.S. soldiers had taken to deriding ISAF as short for "I Suck at Fighting" or "In Sandals and Flip-Flops.") McChrystal banned alcohol on base, kicked out Burger King and other symbols of American excess, expanded the morning briefing to include thousands of officers and refashioned the command center into a Situational Awareness Room, a free-flowing information hub modeled after Mayor Mike Bloomberg's offices in New York. He also set a manic pace for his staff, becoming legendary for sleeping four hours a night, running seven miles each morning, and eating one meal a day. (In the month I spend around the general, I witness him eating only once.) It's a kind of superhuman narrative that has built up around him, a staple in almost every media profile, as if the ability to go without sleep and food translates into the possibility of a man single-handedly winning the war.


By midnight at Kitty O'Shea's, much of Team America is completely shitfaced. Two officers do an Irish jig mixed with steps from a traditional Afghan wedding dance, while McChrystal's top advisers lock arms and sing a slurred song of their own invention. "Afghanistan!" they bellow. "Afghanistan!" They call it their Afghanistan song.

McChrystal steps away from the circle, observing his team. "All these men," he tells me. "I'd die for them. And they'd die for me."


The assembled men may look and sound like a bunch of combat veterans letting off steam, but in fact this tight-knit group represents the most powerful force shaping U.S. policy in Afghanistan. While McChrystal and his men are in indisputable command of all military aspects of the war, there is no equivalent position on the diplomatic or political side. Instead, an assortment of administration players compete over the Afghan portfolio: U.S. Ambassador Karl Eikenberry, Special Representative to Afghanistan Richard Holbrooke, National Security Advisor Jim Jones and Secretary of State Hillary Clinton, not to mention 40 or so other coalition ambassadors and a host of talking heads who try to insert themselves into the mess, from John Kerry to John McCain. This diplomatic incoherence has effectively allowed McChrystal's team to call the shots and hampered efforts to build a stable and credible government in Afghanistan. "It jeopardizes the mission," says Stephen Biddle, a senior fellow at the Council on Foreign Relations who supports McChrystal. "The military cannot by itself create governance reform."


Part of the problem is structural: The Defense Department budget exceeds $600 billion a year, while the State Department receives only $50 billion. But part of the problem is personal: In private, Team McChrystal likes to talk shit about many of Obama's top people on the diplomatic side. One aide calls Jim Jones, a retired four-star general and veteran of the Cold War, a "clown" who remains "stuck in 1985." Politicians like McCain and Kerry, says another aide, "turn up, have a meeting with Karzai, criticize him at the airport press conference, then get back for the Sunday talk shows. Frankly, it's not very helpful." Only Hillary Clinton receives good reviews from McChrystal's inner circle. "Hillary had Stan's back during the strategic review," says an adviser. "She said, 'If Stan wants it, give him what he needs.' "

McChrystal reserves special skepticism for Holbrooke, the official in charge of reintegrating the Taliban. "The Boss says he's like a wounded animal," says a member of the general's team. "Holbrooke keeps hearing rumors that he's going to get fired, so that makes him dangerous. He's a brilliant guy, but he just comes in, pulls on a lever, whatever he can grasp onto. But this is COIN, and you can't just have someone yanking on shit."


At one point on his trip to Paris, McChrystal checks his BlackBerry. "Oh, not another e-mail from Holbrooke," he groans. "I don't even want to open it." He clicks on the message and reads the salutation out loud, then stuffs the BlackBerry back in his pocket, not bothering to conceal his annoyance.


"Make sure you don't get any of that on your leg," an aide jokes, referring to the e-mail.


By far the most crucial – and strained – relationship is between McChrystal and Eikenberry, the U.S. ambassador. According to those close to the two men, Eikenberry – a retired three-star general who served in Afghanistan in 2002 and 2005 – can't stand that his former subordinate is now calling the shots. He's also furious that McChrystal, backed by NATO's allies, refused to put Eikenberry in the pivotal role of viceroy in Afghanistan, which would have made him the diplomatic equivalent of the general. The job instead went to British Ambassador Mark Sedwill – a move that effectively increased McChrystal's influence over diplomacy by shutting out a powerful rival. "In reality, that position needs to be filled by an American for it to have weight," says a U.S. official familiar with the negotiations.


The relationship was further strained in January, when a classified cable that Eikenberry wrote was leaked to The New York Times. The cable was as scathing as it was prescient. The ambassador offered a brutal critique of McChrystal's strategy, dismissed President Hamid Karzai as "not an adequate strategic partner," and cast doubt on whether the counterinsurgency plan would be "sufficient" to deal with Al Qaeda. "We will become more deeply engaged here with no way to extricate ourselves," Eikenberry warned, "short of allowing the country to descend again into lawlessness and chaos."

McChrystal and his team were blindsided by the cable. "I like Karl, I've known him for years, but they'd never said anything like that to us before," says McChrystal, who adds that he felt "betrayed" by the leak. "Here's one that covers his flank for the history books. Now if we fail, they can say, 'I told you so.' "

The most striking example of McChrystal's usurpation of diplomatic policy is his handling of Karzai. It is McChrystal, not diplomats like Eikenberry or Holbrooke, who enjoys the best relationship with the man America is relying on to lead Afghanistan. The doctrine of counterinsurgency requires a credible government, and since Karzai is not considered credible by his own people, McChrystal has worked hard to make him so. Over the past few months, he has accompanied the president on more than 10 trips around the country, standing beside him at political meetings, or shuras, in Kandahar. In February, the day before the doomed offensive in Marja, McChrystal even drove over to the president's palace to get him to sign off on what would be the largest military operation of the year. Karzai's staff, however, insisted that the president was sleeping off a cold and could not be disturbed. After several hours of haggling, McChrystal finally enlisted the aid of Afghanistan's defense minister, who persuaded Karzai's people to wake the president from his nap.

This is one of the central flaws with McChrystal's counterinsurgency strategy: The need to build a credible government puts us at the mercy of whatever tin-pot leader we've backed – a danger that Eikenberry explicitly warned about in his cable. Even Team McChrystal privately acknowledges that Karzai is a less-than-ideal partner. "He's been locked up in his palace the past year," laments one of the general's top advisers. At times, Karzai himself has actively undermined McChrystal's desire to put him in charge. During a recent visit to Walter Reed Army Medical Center, Karzai met three U.S. soldiers who had been wounded in Uruzgan province. "General," he called out to McChrystal, "I didn't even know we were fighting in Uruzgan!"

Growing up as a military brat, McChrystal exhibited the mixture of brilliance and cockiness that would follow him throughout his career. His father fought in Korea and Vietnam, retiring as a two-star general, and his four brothers all joined the armed services. Moving around to different bases, McChrystal took solace in baseball, a sport in which he made no pretense of hiding his superiority: In Little League, he would call out strikes to the crowd before whipping a fastball down the middle.

McChrystal entered West Point in 1972, when the U.S. military was close to its all-time low in popularity. His class was the last to graduate before the academy started to admit women. The "Prison on the Hudson," as it was known then, was a potent mix of testosterone, hooliganism and reactionary patriotism. Cadets repeatedly trashed the mess hall in food fights, and birthdays were celebrated with a tradition called "rat fucking," which often left the birthday boy outside in the snow or mud, covered in shaving cream. "It was pretty out of control," says Lt. Gen. David Barno, a classmate who went on to serve as the top commander in Afghanistan from 2003 to 2005. The class, filled with what Barno calls "huge talent" and "wild-eyed teenagers with a strong sense of idealism," also produced Gen. Ray Odierno, the current commander of U.S. forces in Iraq.

The son of a general, McChrystal was also a ringleader of the campus dissidents – a dual role that taught him how to thrive in a rigid, top-down environment while thumbing his nose at authority every chance he got. He accumulated more than 100 hours of demerits for drinking, partying and insubordination – a record that his classmates boasted made him a "century man." One classmate, who asked not to be named, recalls finding McChrystal passed out in the shower after downing a case of beer he had hidden under the sink. The troublemaking almost got him kicked out, and he spent hours subjected to forced marches in the Area, a paved courtyard where unruly cadets were disciplined. "I'd come visit, and I'd end up spending most of my time in the library, while Stan was in the Area," recalls Annie, who began dating McChrystal in 1973.

McChrystal wound up ranking 298 out of a class of 855, a serious underachievement for a man widely regarded as brilliant. His most compelling work was extracurricular: As managing editor of The Pointer, the West Point literary magazine, McChrystal wrote seven short stories that eerily foreshadow many of the issues he would confront in his career. In one tale, a fictional officer complains about the difficulty of training foreign troops to fight; in another, a 19-year-old soldier kills a boy he mistakes for a terrorist. In "Brinkman's Note," a piece of suspense fiction, the unnamed narrator appears to be trying to stop a plot to assassinate the president. It turns out, however, that the narrator himself is the assassin, and he's able to infiltrate the White House: "The President strode in smiling. From the right coat pocket of the raincoat I carried, I slowly drew forth my 32-caliber pistol. In Brinkman's failure, I had succeeded."


After graduation, 2nd Lt. Stanley McChrystal entered an Army that was all but broken in the wake of Vietnam. "We really felt we were a peacetime generation," he recalls. "There was the Gulf War, but even that didn't feel like that big of a deal." So McChrystal spent his career where the action was: He enrolled in Special Forces school and became a regimental commander of the 3rd Ranger Battalion in 1986. It was a dangerous position, even in peacetime – nearly two dozen Rangers were killed in training accidents during the Eighties. It was also an unorthodox career path: Most soldiers who want to climb the ranks to general don't go into the Rangers. Displaying a penchant for transforming systems he considers outdated, McChrystal set out to revolutionize the training regime for the Rangers. He introduced mixed martial arts, required every soldier to qualify with night-vision goggles on the rifle range and forced troops to build up their endurance with weekly marches involving heavy backpacks.


In the late 1990s, McChrystal shrewdly improved his inside game, spending a year at Harvard's Kennedy School of Government and then at the Council on Foreign Relations, where he co-authored a treatise on the merits and drawbacks of humanitarian interventionism. But as he moved up through the ranks, McChrystal relied on the skills he had learned as a troublemaking kid at West Point: knowing precisely how far he could go in a rigid military hierarchy without getting tossed out. Being a highly intelligent badass, he discovered, could take you far – especially in the political chaos that followed September 11th. "He was very focused," says Annie. "Even as a young officer he seemed to know what he wanted to do. I don't think his personality has changed in all these years."


By some accounts, McChrystal's career should have been over at least two times by now. As Pentagon spokesman during the invasion of Iraq, the general seemed more like a White House mouthpiece than an up-and-coming commander with a reputation for speaking his mind. When Defense Secretary Donald Rumsfeld made his infamous "stuff happens" remark during the looting of Baghdad, McChrystal backed him up. A few days later, he echoed the president's Mission Accomplished gaffe by insisting that major combat operations in Iraq were over. But it was during his next stint – overseeing the military's most elite units, including the Rangers, Navy Seals and Delta Force – that McChrystal took part in a cover-up that would have destroyed the career of a lesser man.


After Cpl. Pat Tillman, the former-NFL-star-turned-Ranger, was accidentally killed by his own troops in Afghanistan in April 2004, McChrystal took an active role in creating the impression that Tillman had died at the hands of Taliban fighters. He signed off on a falsified recommendation for a Silver Star that suggested Tillman had been killed by enemy fire. (McChrystal would later claim he didn't read the recommendation closely enough – a strange excuse for a commander known for his laserlike attention to minute details.) A week later, McChrystal sent a memo up the chain of command, specifically warning that President Bush should avoid mentioning the cause of Tillman's death. "If the circumstances of Corporal Tillman's death become public," he wrote, it could cause "public embarrassment" for the president.

"The false narrative, which McChrystal clearly helped construct, diminished Pat's true actions," wrote Tillman's mother, Mary, in her book Boots on the Ground by Dusk. McChrystal got away with it, she added, because he was the "golden boy" of Rumsfeld and Bush, who loved his willingness to get things done, even if it included bending the rules or skipping the chain of command. Nine days after Tillman's death, McChrystal was promoted to major general.


Two years later, in 2006, McChrystal was tainted by a scandal involving detainee abuse and torture at Camp Nama in Iraq. According to a report by Human Rights Watch, prisoners at the camp were subjected to a now-familiar litany of abuse: stress positions, being dragged naked through the mud. McChrystal was not disciplined in the scandal, even though an interrogator at the camp reported seeing him inspect the prison multiple times. But the experience was so unsettling to McChrystal that he tried to prevent detainee operations from being placed under his command in Afghanistan, viewing them as a "political swamp," according to a U.S. official. In May 2009, as McChrystal prepared for his confirmation hearings, his staff prepared him for hard questions about Camp Nama and the Tillman cover-up. But the scandals barely made a ripple in Congress, and McChrystal was soon on his way back to Kabul to run the war in Afghanistan.


The media, to a large extent, have also given McChrystal a pass on both controversies. Where Gen. Petraeus is kind of a dweeb, a teacher's pet with a Ranger's tab, McChrystal is a snake-eating rebel, a "Jedi" commander, as Newsweek called him. He didn't care when his teenage son came home with blue hair and a mohawk. He speaks his mind with a candor rare for a high-ranking official. He asks for opinions, and seems genuinely interested in the response. He gets briefings on his iPod and listens to books on tape. He carries a custom-made set of nunchucks in his convoy engraved with his name and four stars, and his itinerary often bears a fresh quote from Bruce Lee. ("There are no limits. There are only plateaus, and you must not stay there, you must go beyond them.") He went out on dozens of nighttime raids during his time in Iraq, unprecedented for a top commander, and turned up on missions unannounced, with almost no entourage. "The fucking lads love Stan McChrystal," says a British officer who serves in Kabul. "You'd be out in Somewhere, Iraq, and someone would take a knee beside you, and a corporal would be like 'Who the fuck is that?' And it's fucking Stan McChrystal."

It doesn't hurt that McChrystal was also extremely successful as head of the Joint Special Operations Command, the elite forces that carry out the government's darkest ops. During the Iraq surge, his team killed and captured thousands of insurgents, including Abu Musab al-Zarqawi, the leader of Al Qaeda in Iraq. "JSOC was a killing machine," says Maj. Gen. Mayville, his chief of operations. McChrystal was also open to new ways of killing. He systematically mapped out terrorist networks, targeting specific insurgents and hunting them down – often with the help of cyberfreaks traditionally shunned by the military. "The Boss would find the 24-year-old kid with a nose ring, with some fucking brilliant degree from MIT, sitting in the corner with 16 computer monitors humming," says a Special Forces commando who worked with McChrystal in Iraq and now serves on his staff in Kabul. "He'd say, 'Hey – you fucking muscleheads couldn't find lunch without help. You got to work together with these guys.' "

Even in his new role as America's leading evangelist for counterinsurgency, McChrystal retains the deep-seated instincts of a terrorist hunter. To put pressure on the Taliban, he has upped the number of Special Forces units in Afghanistan from four to 19. "You better be out there hitting four or five targets tonight," McChrystal will tell a Navy Seal he sees in the hallway at headquarters. Then he'll add, "I'm going to have to scold you in the morning for it, though." In fact, the general frequently finds himself apologizing for the disastrous consequences of counterinsurgency. In the first four months of this year, NATO forces killed some 90 civilians, up 76 percent from the same period in 2009 – a record that has created tremendous resentment among the very population that COIN theory is intent on winning over. In February, a Special Forces night raid ended in the deaths of two pregnant Afghan women and allegations of a cover-up, and in April, protests erupted in Kandahar after U.S. forces accidentally shot up a bus, killing five Afghans. "We've shot an amazing number of people," McChrystal recently conceded.

Despite the tragedies and miscues, McChrystal has issued some of the strictest directives to avoid civilian casualties that the U.S. military has ever encountered in a war zone. It's "insurgent math," as he calls it – for every innocent person you kill, you create 10 new enemies. He has ordered convoys to curtail their reckless driving, put restrictions on the use of air power and severely limited night raids. He regularly apologizes to Hamid Karzai when civilians are killed, and berates commanders responsible for civilian deaths. "For a while," says one U.S. official, "the most dangerous place to be in Afghanistan was in front of McChrystal after a 'civ cas' incident." The ISAF command has even discussed ways to make not killing into something you can win an award for: There's talk of creating a new medal for "courageous restraint," a buzzword that's unlikely to gain much traction in the gung-ho culture of the U.S. military.

But however strategic they may be, McChrystal's new marching orders have caused an intense backlash among his own troops. Being told to hold their fire, soldiers complain, puts them in greater danger. "Bottom line?" says a former Special Forces operator who has spent years in Iraq and Afghanistan. "I would love to kick McChrystal in the nuts. His rules of engagement put soldiers' lives in even greater danger. Every real soldier will tell you the same thing."

In March, McChrystal traveled to Combat Outpost JFM – a small encampment on the outskirts of Kandahar – to confront such accusations from the troops directly. It was a typically bold move by the general. Only two days earlier, he had received an e-mail from Israel Arroyo, a 25-year-old staff sergeant who asked McChrystal to go on a mission with his unit. "I am writing because it was said you don't care about the troops and have made it harder to defend ourselves," Arroyo wrote.

Within hours, McChrystal responded personally: "I'm saddened by the accusation that I don't care about soldiers, as it is something I suspect any soldier takes both personally and professionally – at least I do. But I know perceptions depend upon your perspective at the time, and I respect that every soldier's view is his own." Then he showed up at Arroyo's outpost and went on a foot patrol with the troops – not some bullshit photo-op stroll through a market, but a real live operation in a dangerous war zone.


Six weeks later, just before McChrystal returned from Paris, the general received another e-mail from Arroyo. A 23-year-old corporal named Michael Ingram – one of the soldiers McChrystal had gone on patrol with – had been killed by an IED a day earlier. It was the third man the 25-member platoon had lost in a year, and Arroyo was writing to see if the general would attend Ingram's memorial service. "He started to look up to you," Arroyo wrote. McChrystal said he would try to make it down to pay his respects as soon as possible.


The night before the general is scheduled to visit Sgt. Arroyo's platoon for the memorial, I arrive at Combat Outpost JFM to speak with the soldiers he had gone on patrol with. JFM is a small encampment, ringed by high blast walls and guard towers. Almost all of the soldiers here have been on repeated combat tours in both Iraq and Afghanistan, and have seen some of the worst fighting of both wars. But they are especially angered by Ingram's death. His commanders had repeatedly requested permission to tear down the house where Ingram was killed, noting that it was often used as a combat position by the Taliban. But due to McChrystal's new restrictions to avoid upsetting civilians, the request had been denied. "These were abandoned houses," fumes Staff Sgt. Kennith Hicks. "Nobody was coming back to live in them."


One soldier shows me the list of new regulations the platoon was given. "Patrol only in areas that you are reasonably certain that you will not have to defend yourselves with lethal force," the laminated card reads. For a soldier who has traveled halfway around the world to fight, that's like telling a cop he should only patrol in areas where he knows he won't have to make arrests. "Does that make any fucking sense?" asks Pfc. Jared Pautsch. "We should just drop a fucking bomb on this place. You sit and ask yourself: What are we doing here?"


The rules handed out here are not what McChrystal intended – they've been distorted as they passed through the chain of command – but knowing that does nothing to lessen the anger of troops on the ground. "Fuck, when I came over here and heard that McChrystal was in charge, I thought we would get our fucking gun on," says Hicks, who has served three tours of combat. "I get COIN. I get all that. McChrystal comes here, explains it, it makes sense. But then he goes away on his bird, and by the time his directives get passed down to us through Big Army, they're all fucked up – either because somebody is trying to cover their ass, or because they just don't understand it themselves. But we're fucking losing this thing."

McChrystal and his team show up the next day. Underneath a tent, the general has a 45-minute discussion with some two dozen soldiers. The atmosphere is tense. "I ask you what's going on in your world, and I think it's important for you all to understand the big picture as well," McChrystal begins. "How's the company doing? You guys feeling sorry for yourselves? Anybody? Anybody feel like you're losing?" McChrystal says.


"Sir, some of the guys here, sir, think we're losing, sir," says Hicks.


McChrystal nods. "Strength is leading when you just don't want to lead," he tells the men. "You're leading by example. That's what we do. Particularly when it's really, really hard, and it hurts inside." Then he spends 20 minutes talking about counterinsurgency, diagramming his concepts and principles on a whiteboard. He makes COIN seem like common sense, but he's careful not to bullshit the men. "We are knee-deep in the decisive year," he tells them. The Taliban, he insists, no longer has the initiative – "but I don't think we do, either." It's similar to the talk he gave in Paris, but it's not winning any hearts and minds among the soldiers. "This is the philosophical part that works with think tanks," McChrystal tries to joke. "But it doesn't get the same reception from infantry companies."

During the question-and-answer period, the frustration boils over. The soldiers complain about not being allowed to use lethal force, about watching insurgents they detain be freed for lack of evidence. They want to be able to fight – like they did in Iraq, like they had in Afghanistan before McChrystal. "We aren't putting fear into the Taliban," one soldier says.

"Winning hearts and minds in COIN is a coldblooded thing," McChrystal says, citing an oft-repeated maxim that you can't kill your way out of Afghanistan. "The Russians killed 1 million Afghans, and that didn't work."

"I'm not saying go out and kill everybody, sir," the soldier persists. "You say we've stopped the momentum of the insurgency. I don't believe that's true in this area. The more we pull back, the more we restrain ourselves, the stronger it's getting."


"I agree with you," McChrystal says. "In this area, we've not made progress, probably. You have to show strength here, you have to use fire. What I'm telling you is, fire costs you. What do you want to do? You want to wipe the population out here and resettle it?"


A soldier complains that under the rules, any insurgent who doesn't have a weapon is immediately assumed to be a civilian. "That's the way this game is," McChrystal says. "It's complex. I can't just decide: It's shirts and skins, and we'll kill all the shirts."

As the discussion ends, McChrystal seems to sense that he hasn't succeeded at easing the men's anger. He makes one last-ditch effort to reach them, acknowledging the death of Cpl. Ingram. "There's no way I can make that easier," he tells them. "No way I can pretend it won't hurt. No way I can tell you not to feel that. . . . I will tell you, you're doing a great job. Don't let the frustration get to you." The session ends with no clapping, and no real resolution. McChrystal may have sold President Obama on counterinsurgency, but many of his own men aren't buying it.


When it comes to Afghanistan, history is not on McChrystal's side. The only foreign invader to have any success here was Genghis Khan – and he wasn't hampered by things like human rights, economic development and press scrutiny. The COIN doctrine, bizarrely, draws inspiration from some of the biggest Western military embarrassments in recent memory: France's nasty war in Algeria (lost in 1962) and the American misadventure in Vietnam (lost in 1975). McChrystal, like other advocates of COIN, readily acknowledges that counterinsurgency campaigns are inherently messy, expensive and easy to lose. "Even Afghans are confused by Afghanistan," he says. But even if he somehow manages to succeed, after years of bloody fighting with Afghan kids who pose no threat to the U.S. homeland, the war will do little to shut down Al Qaeda, which has shifted its operations to Pakistan. Dispatching 150,000 troops to build new schools, roads, mosques and water-treatment facilities around Kandahar is like trying to stop the drug war in Mexico by occupying Arkansas and building Baptist churches in Little Rock. "It's all very cynical, politically," says Marc Sageman, a former CIA case officer who has extensive experience in the region. "Afghanistan is not in our vital interest – there's nothing for us there."


In mid-May, two weeks after visiting the troops in Kandahar, McChrystal travels to the White House for a high-level visit by Hamid Karzai. It is a triumphant moment for the general, one that demonstrates he is very much in command – both in Kabul and in Washington. In the East Room, which is packed with journalists and dignitaries, President Obama sings the praises of Karzai. The two leaders talk about how great their relationship is, about the pain they feel over civilian casualties. They mention the word "progress" 16 times in under an hour. But there is no mention of victory. Still, the session represents the most forceful commitment that Obama has made to McChrystal's strategy in months. "There is no denying the progress that the Afghan people have made in recent years – in education, in health care and economic development," the president says. "As I saw in the lights across Kabul when I landed – lights that would not have been visible just a few years earlier."

It is a disconcerting observation for Obama to make. During the worst years in Iraq, when the Bush administration had no real progress to point to, officials used to offer up the exact same evidence of success. "It was one of our first impressions," one GOP official said in 2006, after landing in Baghdad at the height of the sectarian violence. "So many lights shining brightly." So it is to the language of the Iraq War that the Obama administration has turned – talk of progress, of city lights, of metrics like health care and education. Rhetoric that just a few years ago they would have mocked. "They are trying to manipulate perceptions because there is no definition of victory – because victory is not even defined or recognizable," says Celeste Ward, a senior defense analyst at the RAND Corporation who served as a political adviser to U.S. commanders in Iraq in 2006. "That's the game we're in right now. What we need, for strategic purposes, is to create the perception that we didn't get run off. The facts on the ground are not great, and are not going to become great in the near future."


But facts on the ground, as history has proven, offer little deterrent to a military determined to stay the course. Even those closest to McChrystal know that the rising anti-war sentiment at home doesn't begin to reflect how deeply fucked up things are in Afghanistan. "If Americans pulled back and started paying attention to this war, it would become even less popular," a senior adviser to McChrystal says. Such realism, however, doesn't prevent advocates of counterinsurgency from dreaming big: Instead of beginning to withdraw troops next year, as Obama promised, the military hopes to ramp up its counterinsurgency campaign even further. "There's a possibility we could ask for another surge of U.S. forces next summer if we see success here," a senior military official in Kabul tells me.


Back in Afghanistan, less than a month after the White House meeting with Karzai and all the talk of "progress," McChrystal is hit by the biggest blow to his vision of counterinsurgency. Since last year, the Pentagon had been planning to launch a major military operation this summer in Kandahar, the country's second-largest city and the Taliban's original home base. It was supposed to be a decisive turning point in the war – the primary reason for the troop surge that McChrystal wrested from Obama late last year. But on June 10th, acknowledging that the military still needs to lay more groundwork, the general announced that he is postponing the offensive until the fall. Rather than one big battle, like Fallujah or Ramadi, U.S. troops will implement what McChrystal calls a "rising tide of security." The Afghan police and army will enter Kandahar to attempt to seize control of neighborhoods, while the U.S. pours $90 million of aid into the city to win over the civilian population.


Even proponents of counterinsurgency are hard-pressed to explain the new plan. "This isn't a classic operation," says a U.S. military official. "It's not going to be Black Hawk Down. There aren't going to be doors kicked in." Other U.S. officials insist that doors are going to be kicked in, but that it's going to be a kinder, gentler offensive than the disaster in Marja. "The Taliban have a jackboot on the city," says a military official. "We have to remove them, but we have to do it in a way that doesn't alienate the population." When Vice President Biden was briefed on the new plan in the Oval Office, insiders say he was shocked to see how much it mirrored the more gradual plan of counterterrorism that he advocated last fall. "This looks like CT-plus!" he said, according to U.S. officials familiar with the meeting.


Whatever the nature of the new plan, the delay underscores the fundamental flaws of counterinsurgency. After nine years of war, the Taliban simply remains too strongly entrenched for the U.S. military to openly attack. The very people that COIN seeks to win over – the Afghan people – do not want us there. Our supposed ally, President Karzai, used his influence to delay the offensive, and the massive influx of aid championed by McChrystal is likely only to make things worse. "Throwing money at the problem exacerbates the problem," says Andrew Wilder, an expert at Tufts University who has studied the effect of aid in southern Afghanistan. "A tsunami of cash fuels corruption, delegitimizes the government and creates an environment where we're picking winners and losers" – a process that fuels resentment and hostility among the civilian population. So far, counterinsurgency has succeeded only in creating a never-ending demand for the primary product supplied by the military: perpetual war. There is a reason that President Obama studiously avoids using the word "victory" when he talks about Afghanistan. Winning, it would seem, is not really possible. Not even with Stanley McChrystal in charge.

2010-06-21

Arbitron replaces people meter with cell-phone like device

Arbitron this morning announced new PPM 360 technology that extends the Portable People Meter onto a wireless platform. The company says the new device design resembles a simple cell phone and is sleeker and smaller than the current meter. The inclusion of cellular wireless technology in the meter eliminates the need for an in-home docking station and a communications hub.

2010-06-16

REMARKS BY THE PRESIDENT TO THE NATION ON THE BP OIL SPILL

THE WHITE HOUSE
Office of the Press Secretary
_______________________________________________________________________________________
For Immediate Release                                                     June 15, 2010

REMARKS BY THE PRESIDENT
TO THE NATION
ON THE BP OIL SPILL

Oval Office

8:01 P.M. EDT

     THE PRESIDENT:  Good evening.  As we speak, our nation faces a multitude of challenges.  At home, our top priority is to recover and rebuild from a recession that has touched the lives of nearly every American.  Abroad, our brave men and women in uniform are taking the fight to al Qaeda wherever it exists.  And tonight, I’ve returned from a trip to the Gulf Coast to speak with you about the battle we’re waging against an oil spill that is assaulting our shores and our citizens.

On April 20th, an explosion ripped through BP Deepwater Horizon drilling rig, about 40 miles off the coast of Louisiana.  Eleven workers lost their lives.  Seventeen others were injured.  And soon, nearly a mile beneath the surface of the ocean, oil began spewing into the water.

Because there has never been a leak this size at this depth, stopping it has tested the limits of human technology.  That’s why just after the rig sank, I assembled a team of our nation’s best scientists and engineers to tackle this challenge -- a team led by Dr. Steven Chu, a Nobel Prize-winning physicist and our nation’s Secretary of Energy.  Scientists at our national labs and experts from academia and other oil companies have also provided ideas and advice.

As a result of these efforts, we’ve directed BP to mobilize additional equipment and technology.  And in the coming weeks and days, these efforts should capture up to 90 percent of the oil leaking out of the well.  This is until the company finishes drilling a relief well later in the summer that’s expected to stop the leak completely. 

Already, this oil spill is the worst environmental disaster America has ever faced.  And unlike an earthquake or a hurricane, it’s not a single event that does its damage in a matter of minutes or days.  The millions of gallons of oil that have spilled into the Gulf of Mexico are more like an epidemic, one that we will be fighting for months and even years. 

But make no mistake:  We will fight this spill with everything we’ve got for as long as it takes.  We will make BP pay for the damage their company has caused.  And we will do whatever’s necessary to help the Gulf Coast and its people recover from this tragedy. 

Tonight I’d like to lay out for you what our battle plan is going forward:  what we’re doing to clean up the oil, what we’re doing to help our neighbors in the Gulf, and what we’re doing to make sure that a catastrophe like this never happens again. 

First, the cleanup.  From the very beginning of this crisis, the federal government has been in charge of the largest environmental cleanup effort in our nation’s history -- an effort led by Admiral Thad Allen, who has almost 40 years of experience responding to disasters.  We now have nearly 30,000 personnel who are working across four states to contain and clean up the oil.  Thousands of ships and other vessels are responding in the Gulf.  And I’ve authorized the deployment of over 17,000 National Guard members along the coast.  These servicemen and women are ready to help stop the oil from coming ashore, they’re ready to help clean the beaches, train response workers, or even help with processing claims -- and I urge the governors in the affected states to activate these troops as soon as possible. 

Because of our efforts, millions of gallons of oil have already been removed from the water through burning, skimming and other collection methods.  Over five and a half million feet of boom has been laid across the water to block and absorb the approaching oil.  We’ve approved the construction of new barrier islands in Louisiana to try to stop the oil before it reaches the shore, and we’re working with Alabama, Mississippi and Florida to implement creative approaches to their unique coastlines. 

As the cleanup continues, we will offer whatever additional resources and assistance our coastal states may need.  Now, a mobilization of this speed and magnitude will never be perfect, and new challenges will always arise.  I saw and heard evidence of that during this trip.  So if something isn’t working, we want to hear about it.  If there are problems in the operation, we will fix them. 

But we have to recognize that despite our best efforts, oil has already caused damage to our coastline and its wildlife.  And sadly, no matter how effective our response is, there will be more oil and more damage before this siege is done.  That’s why the second thing we’re focused on is the recovery and restoration of the Gulf Coast. 

You know, for generations, men and women who call this region home have made their living from the water.  That living is now in jeopardy.  I’ve talked to shrimpers and fishermen who don’t know how they’re going to support their families this year.  I’ve seen empty docks and restaurants with fewer customers -– even in areas where the beaches are not yet affected.  I’ve talked to owners of shops and hotels who wonder when the tourists might start coming back.  The sadness and the anger they feel is not just about the money they’ve lost.  It’s about a wrenching anxiety that their way of life may be lost. 

I refuse to let that happen.  Tomorrow, I will meet with the chairman of BP and inform him that he is to set aside whatever resources are required to compensate the workers and business owners who have been harmed as a result of his company’s recklessness.  And this fund will not be controlled by BP.  In order to ensure that all legitimate claims are paid out in a fair and timely manner, the account must and will be administered by an independent third party. 

Beyond compensating the people of the Gulf in the short term, it’s also clear we need a long-term plan to restore the unique beauty and bounty of this region.  The oil spill represents just the latest blow to a place that’s already suffered multiple economic disasters and decades of environmental degradation that has led to disappearing wetlands and habitats.  And the region still hasn’t recovered from Hurricanes Katrina and Rita.  That’s why we must make a commitment to the Gulf Coast that goes beyond responding to the crisis of the moment. 

I make that commitment tonight.  Earlier, I asked Ray Mabus, the Secretary of the Navy, who is also a former governor of Mississippi and a son of the Gulf Coast, to develop a long-term Gulf Coast Restoration Plan as soon as possible.  The plan will be designed by states, local communities, tribes, fishermen, businesses, conservationists and other Gulf residents.  And BP will pay for the impact this spill has had on the region.  

The third part of our response plan is the steps we’re taking to ensure that a disaster like this does not happen again.  A few months ago, I approved a proposal to consider new, limited offshore drilling under the assurance that it would be absolutely safe –- that the proper technology would be in place and the necessary precautions would be taken.

That obviously was not the case in the Deepwater Horizon rig, and I want to know why.  The American people deserve to know why.  The families I met with last week who lost their loved ones in the explosion -- these families deserve to know why.  And so I’ve established a National Commission to understand the causes of this disaster and offer recommendations on what additional safety and environmental standards we need to put in place.  Already, I’ve issued a six-month moratorium on deepwater drilling.  I know this creates difficulty for the people who work on these rigs, but for the sake of their safety, and for the sake of the entire region, we need to know the facts before we allow deepwater drilling to continue.  And while I urge the Commission to complete its work as quickly as possible, I expect them to do that work thoroughly and impartially.       

One place we’ve already begun to take action is at the agency in charge of regulating drilling and issuing permits, known as the Minerals Management Service.  Over the last decade, this agency has become emblematic of a failed philosophy that views all regulation with hostility -- a philosophy that says corporations should be allowed to play by their own rules and police themselves.  At this agency, industry insiders were put in charge of industry oversight.  Oil companies showered regulators with gifts and favors, and were essentially allowed to conduct their own safety inspections and write their own regulations.  

When Ken Salazar became my Secretary of the Interior, one of his very first acts was to clean up the worst of the corruption at this agency.  But it’s now clear that the problem there ran much deeper, and the pace of reform was just too slow.  And so Secretary Salazar and I are bringing in new leadership at the agency -- Michael Bromwich, who was a tough federal prosecutor and Inspector General.  And his charge over the next few months is to build an organization that acts as the oil industry’s watchdog -- not its partner. 

So one of the lessons we’ve learned from this spill is that we need better regulations, better safety standards, and better enforcement when it comes to offshore drilling.  But a larger lesson is that no matter how much we improve our regulation of the industry, drilling for oil these days entails greater risk.  After all, oil is a finite resource.  We consume more than 20 percent of the world’s oil, but have less than 2 percent of the world’s oil reserves.  And that’s part of the reason oil companies are drilling a mile beneath the surface of the ocean -- because we’re running out of places to drill on land and in shallow water. 

For decades, we have known the days of cheap and easily accessible oil were numbered.  For decades, we’ve talked and talked about the need to end America’s century-long addiction to fossil fuels.  And for decades, we have failed to act with the sense of urgency that this challenge requires.  Time and again, the path forward has been blocked -- not only by oil industry lobbyists, but also by a lack of political courage and candor.  

The consequences of our inaction are now in plain sight.  Countries like China are investing in clean energy jobs and industries that should be right here in America.  Each day, we send nearly $1 billion of our wealth to foreign countries for their oil.  And today, as we look to the Gulf, we see an entire way of life being threatened by a menacing cloud of black crude.

We cannot consign our children to this future.  The tragedy unfolding on our coast is the most painful and powerful reminder yet that the time to embrace a clean energy future is now.  Now is the moment for this generation to embark on a national mission to unleash America’s innovation and seize control of our own destiny.

This is not some distant vision for America.  The transition away from fossil fuels is going to take some time, but over the last year and a half, we’ve already taken unprecedented action to jumpstart the clean energy industry.  As we speak, old factories are reopening to produce wind turbines, people are going back to work installing energy-efficient windows, and small businesses are making solar panels.  Consumers are buying more efficient cars and trucks, and families are making their homes more energy-efficient.  Scientists and researchers are discovering clean energy technologies that someday will lead to entire new industries. 

Each of us has a part to play in a new future that will benefit all of us.  As we recover from this recession, the transition to clean energy has the potential to grow our economy and create millions of jobs -– but only if we accelerate that transition.  Only if we seize the moment.  And only if we rally together and act as one nation –- workers and entrepreneurs; scientists and citizens; the public and private sectors.  
When I was a candidate for this office, I laid out a set of principles that would move our country towards energy independence.  Last year, the House of Representatives acted on these principles by passing a strong and comprehensive energy and climate bill –- a bill that finally makes clean energy the profitable kind of energy for America’s businesses. 

Now, there are costs associated with this transition.  And there are some who believe that we can’t afford those costs right now.  I say we can’t afford not to change how we produce and use energy -– because the long-term costs to our economy, our national security, and our environment are far greater. 

So I’m happy to look at other ideas and approaches from either party -– as long they seriously tackle our addiction to fossil fuels.  Some have suggested raising efficiency standards in our buildings like we did in our cars and trucks.  Some believe we should set standards to ensure that more of our electricity comes from wind and solar power.  Others wonder why the energy industry only spends a fraction of what the high-tech industry does on research and development -– and want to rapidly boost our investments in such research and development.   

All of these approaches have merit, and deserve a fair hearing in the months ahead.  But the one approach I will not accept is inaction.  The one answer I will not settle for is the idea that this challenge is somehow too big and too difficult to meet.  You know, the same thing was said about our ability to produce enough planes and tanks in World War II.  The same thing was said about our ability to harness the science and technology to land a man safely on the surface of the moon.  And yet, time and again, we have refused to settle for the paltry limits of conventional wisdom.  Instead, what has defined us as a nation since our founding is the capacity to shape our destiny -– our determination to fight for the America we want for our children.  Even if we’re unsure exactly what that looks like.  Even if we don’t yet know precisely how we’re going to get there.  We know we’ll get there.   

It’s a faith in the future that sustains us as a people.  It is that same faith that sustains our neighbors in the Gulf right now.        

Each year, at the beginning of shrimping season, the region’s fishermen take part in a tradition that was brought to America long ago by fishing immigrants from Europe.  It’s called “The Blessing of the Fleet,” and today it’s a celebration where clergy from different religions gather to say a prayer for the safety and success of the men and women who will soon head out to sea -– some for weeks at a time. 
The ceremony goes on in good times and in bad.  It took place after Katrina, and it took place a few weeks ago –- at the beginning of the most difficult season these fishermen have ever faced. 

And still, they came and they prayed.  For as a priest and former fisherman once said of the tradition, “The blessing is not that God has promised to remove all obstacles and dangers.  The blessing is that He is with us always,” a blessing that’s granted “even in the midst of the storm.” 

The oil spill is not the last crisis America will face.  This nation has known hard times before and we will surely know them again.  What sees us through -– what has always seen us through –- is our strength, our resilience, and our unyielding faith that something better awaits us if we summon the courage to reach for it.

Tonight, we pray for that courage.  We pray for the people of the Gulf.  And we pray that a hand may guide us through the storm towards a brighter day.  Thank you, God bless you, and may God bless the United States of America.

              END           8:18 P.M. EDT