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A rare look at secretive Brotherhood in America

A rare look at secretive Brotherhood in America

Muslims divided on Brotherhood

A group aiming to create Islamic states worldwide has established roots here, in large part under the guidance of Egypt-born Ahmed Elkadi

By Noreen S. Ahmed-Ullah, Sam Roe and Laurie Cohen

Tribune staff reporters

September 19, 2004

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Over the last 40 years, small groups of devout Muslim men have gathered in homes in U.S. cities to pray, memorize the Koran and discuss events of the day.

But they also addressed their ultimate goal, one so controversial that it is a key reason they have operated in secrecy: to create Muslim states overseas and, they hope, someday in America as well.

These men are part of an underground U.S. chapter of the international Muslim Brotherhood, the world's most influential Islamic fundamentalist group and an organization with a violent past in the Middle East. But fearing persecution, they rarely identify themselves as Brotherhood members and have operated largely behind the scenes, unbeknown even to many Muslims.

Still, the U.S. Brotherhood has had a significant and ongoing impact on Islam in America, helping establish mosques, Islamic schools, summer youth camps and prominent Muslim organizations. It is a major factor, Islamic scholars say, in why many Muslim institutions in the nation have become more conservative in recent decades.

Leading the U.S. Brotherhood during much of this period was Ahmed Elkadi, an Egyptian-born surgeon and a former personal physician to Saudi Arabia's King Faisal. He headed the group from 1984 to 1994 but abruptly lost his leadership position. Now he is discussing his life and the U.S. Brotherhood for the first time.

His story, combined with details from documents and interviews, offers an unprecedented look at the Brotherhood in America: how the group recruited members, how it cloaked itself in secrecy and how it alienated many moderate Muslims.

Indeed, because of its hard-line beliefs, the U.S. Brotherhood has been an increasingly divisive force within Islam in America, fueling the often bitter struggle between moderate and conservative Muslims.

Many Muslims believe that the Brotherhood is a noble international movement that supports the true teachings of Islam and unwaveringly defends Muslims who have come under attack around the world, from Chechens to Palestinians to Iraqis. But others view it as an extreme organization that breeds intolerance and militancy.

"They have this idea that Muslims come first, not that humans come first," says Mustafa Saied, 32, a Floridian who left the U.S. Brotherhood in 1998.

While separation of church and state is a bedrock principle of American democracy, the international Brotherhood preaches that religion and politics cannot be separated and that governments eventually should be Islamic. The group also champions martyrdom and jihad, or holy war, as a means of self-defense and has provided the philosophical underpinnings for Muslim militants worldwide.

Many moderate Muslims in America are uncomfortable with the views preached at mosques influenced by the Brotherhood, scholars say. Those experts point to a 2001 study sponsored by four Muslim advocacy and religious groups that found that only a third of U.S. Muslims attend mosques.

In suburban Bridgeview, Ill., some moderates say they quit attending the Mosque Foundation because the leadership became too conservative and dominated by Brotherhood members.

Documents obtained by the Tribune and translated from Arabic show that the U.S. Brotherhood has been careful to obscure its beliefs from outsiders. One document tells leaders to be cautious when screening potential recruits. If the recruit asks whether the leader is a Brotherhood member, the leader should respond, "You may deduce the answer to that with your own intelligence."

Islamic state a long-term goal

Brotherhood members emphasize that they follow the laws of the nations in which they operate. They stress that they do not believe in overthrowing the U.S. government, but rather that they want as many people as possible to convert to Islam so that one day--perhaps generations from now--a majority of Americans will support a society governed by Islamic law. Muslims make up less than 3 percent of the U.S. population, but estimates of their number vary widely from 2 million to 7 million.

Federal authorities say they have scrutinized the U.S. Brotherhood for years. Agents currently are investigating whether people with ties to the group have raised and laundered money to finance terrorism abroad. No terrorism-related charges have been filed.

Former leader Elkadi, who has been questioned at length by federal authorities about the inner workings of the Brotherhood, says the group has served Muslims in the United States well. He personally helped establish an Islamic community in the Florida Panhandle, with a mosque, school and health clinic. And though he eventually lost it all--even his medical license--some Muslims still view him as a great Islamic leader.

"Islam is for everyone," he says. "It's good for America, good for Muslims too. . . . It's good knowledge, and good knowledge should be available to everyone."

Mohammed Mahdi Akef, head of the international Muslim Brotherhood, based in Egypt, lauds Elkadi and the activities of the U.S. Brotherhood.

"They have succeeded in saving the younger generations from melting into the American lifestyle without faith," he says. "They have saved their children."

Once one of America's most influential Muslims, Elkadi now spends most of his days in front of the TV in his two-bedroom condominium in Sterling, Va., across the Potomac River from Washington.

Earlier this year he was diagnosed with a neurological disorder that affects motor skills, speech and memory. He often has difficulty expressing himself and seldom speaks more than two sentences at a time. Sometimes, he says, he smiles for no reason other than to try to remain cheerful.

But on many days his memory is clear, and his statements about the major events of the U.S. Brotherhood have been confirmed by others associated with the group.

Elkadi, a 64-year-old with a closely trimmed white beard, says he is willing to speak about the Brotherhood because he believes he has nothing to hide. Both he and his wife, Iman, 60, say they have devoted much of their lives to the Brotherhood, and Elkadi says the reason for that is simple: "It's genetic."

Both of their fathers were early Brotherhood leaders in Egypt, where the group began in 1928 as an opposition movement to the British-backed Egyptian monarchy. Its founder and leader was schoolteacher Hassan al-Banna, who advocated a return to fundamental Islam as a way to reform Muslim societies and expel Western troops.

The Brotherhood slogan became "Allah is our goal; the Messenger is our model; the Koran is our constitution; jihad is our means; and martyrdom in the way of Allah is our aspiration."

When Egypt imprisoned and executed some Muslim Brothers in the 1950s, many members fled the country and helped spread the philosophy throughout the Arab world. The group's ideological voice became philosopher Sayyid Qutb, who abhorred Western values and believed the Koran justified violence to overthrow un-Islamic governments.

Over time, the Brotherhood gained notoriety for repeatedly attempting to overthrow the Egyptian and Syrian governments and for spawning violent groups, including the Palestinian Islamic Jihad and the Palestinian group Hamas.

Today the Brotherhood remains based in Egypt, where it officially is banned but is tolerated. The group has renounced violence and now largely organizes political protests, runs professional unions and operates charities, providing social services that the government does not. Brotherhood supporters hold 15 of the 445 seats in the Egyptian parliament.

And while Brotherhood activities vary from country to country, and chapters are officially independent, international leaders in Egypt say that all chapters are united in their beliefs and that the Egyptian office gives them advice.

In recent months Akef, the international Brotherhood leader, repeatedly has praised Palestinian and Iraqi suicide bombers, called for the destruction of Israel and asserted that the United States has no proof that Al Qaeda was to blame for the Sept. 11 attacks.

Iman Elkadi's father, Mahmoud Abu Saud, was particularly involved in the Brotherhood's beginnings in Egypt and remains well-known in the Arab world. An accomplished economist, he is widely regarded as a pioneer in Islamic banking, which requires that interest not be charged for loans.

He also was jailed repeatedly for his Brotherhood activities.

"My grandfather would tell me that if my dad didn't come home for dinner, he would send someone to check the jails," Iman Elkadi recalls.

The Elkadi and Abu Saud families were linked in marriage in 1963 after Ahmed Elkadi, then a 22-year-old preparing to go into the Egyptian military, ran into his future father-in-law at a mutual friend's office. When the young Elkadi learned that Abu Saud had an unmarried daughter, he inquired about her. The father, familiar with the young man's family and its devotion to the Brotherhood, invited him to their home.

Soon after, the families arranged for Ahmed and Iman to marry. The wedding was held in Cairo, in a grandparent's garden. Only relatives were invited, though others were keenly interested: Soon afterward, Egyptian intelligence officials called the couple in for questioning.

Iman Elkadi says, "They asked my husband, `Couldn't you find anybody else to marry except Mahmoud Abu Saud's daughter?'"

A mission in U.S.

The Elkadis arrived in the United States in 1967, settling in the small Louisiana city of Monroe, where Ahmed Elkadi continued his medical training at a local hospital. By then the Muslim Brotherhood already was operating in the United States, though secretly.

A U.S. chapter of the Brotherhood, documents and interviews show, was formed in the early 1960s after hundreds of young Muslims came to the U.S. to study, particularly at large Midwestern universities, such as Illinois, Indiana and Michigan. Some belonged to the Brotherhood in their homelands and wanted to spread its ideology here.

But to protect themselves and their relatives back home from possible persecution, they publicly called themselves the Cultural Society and not the Brotherhood.

Many young Muslim professionals joined, including Elkadi. One of his daughters, Mona, recalls that when she was a teen, she often fielded phone calls from women who did not know that their husbands were in the Brotherhood and wondered where they were on a given night.

She says the husbands "put the fear of God in me about keeping this a secret. I'd get lectures from some of the men about how I was going to expose them."

Not anyone could join the Brotherhood. The group had a carefully detailed strategy on how to find and evaluate potential members, according to a Brotherhood instructional booklet for recruiters.

Leaders would scout mosques, Islamic classes and Muslim organizations for those with orthodox religious beliefs consistent with Brotherhood views, the booklet says. The leaders then would invite them to join a small prayer group, or usra, Arabic for "family." The prayer groups were a defining feature of the Brotherhood and one created by al-Banna in Egypt.

But leaders initially would not reveal the purpose of the prayer groups, and recruits were asked not to tell anyone about the meetings. If recruits asked about a particular meeting to which they were not invited, they should respond, "Make it a habit not to meddle in that which does not concern you."

Leaders were told that during prayer meetings they should focus on fundamentals, including "the primary goal of the Brotherhood: setting up the rule of God upon the Earth."

After assessing the recruits' "commitment, loyalty and obedience" to Brotherhood ideals, the leaders would invite suitable candidates to join. New members, according to the booklet, would be told that they now were part of the worldwide Brotherhood and that membership "is not a personal honor but a charge to sacrifice all that one has for the sake of raising the banner of Islam."

Mustafa Saied, the Floridian who left the Brotherhood six years ago, recalls how he was recruited in 1994 while a junior at the University of Tennessee. After Saied attended numerous prayer sessions, a fellow Muslim student took him to a quiet corner of a campus cafeteria and asked him to join.

"It was a dream, because that's what you're conditioned to do--to really love the Ikhwan," Saied says, using the Arabic term for Brothers or Brotherhood.

After he joined, he learned the names of other local members.

"I was shocked," he says. "These people had really hid the fact that they were Brotherhood."

He says he found out that the U.S. Brotherhood had a plan for achieving Islamic rule in America: It would convert Americans to Islam and elect like-minded Muslims to political office.

"They're very smart. Everyone else is gullible," Saied says. "If the Brotherhood puts up somebody for an election, Muslims would vote for him not knowing he was with the Brotherhood."

Saied says he left the group after several years because he disliked its anti-American sentiments and its support for violence in the Middle East.

"With the extreme element," he says, "you never know when that ticking time bomb will go off."

By the 1970s, Elkadi had moved to Missouri and, he says, become treasurer of the U.S. Brotherhood, collecting money from members from across the country. His wife was the unofficial bookkeeper, tracking who was behind on dues.

Members were required to pay 3 percent of their income per year, with the money going to travel, books and annual conferences, the Elkadis say. The conferences were held under the Cultural Society name, usually in large hotels and always on Memorial Day weekend. They were invitation-only, with word spread through the prayer groups. Some years, up to 1,000 people attended; every other year, elections were held.

While the U.S. Brotherhood was influential from its beginning--in 1963 it helped establish the Muslim Students Association, one of the first national Islamic groups in the U.S.--Elkadi thought the group could expand its reach.

And when he was elected president in 1984, he vowed to do just that.

Executing his strategy

Elkadi had a strategy to make America more Islamic that reflected a long-standing Brotherhood belief: First you change the person, then the family, then the community, then the nation.

By 1990, U.S. Brotherhood members had made headway on that plan by helping establish many mosques and Islamic organizations. Some of those efforts were backed financially by the ultraconservative Saudi Arabian government, which shared some of the Brotherhood's fundamentalist goals.

Elkadi himself helped create several noted Islamic organizations, including the Muslim Youth of North America, which attempted to draw thousands of high school students to Islam by sponsoring soccer teams, providing scholarships and offering a line of clothing. He served as president of the North American Islamic Trust, a group that helped build and preserve mosques.

Some of those organizations eventually would distance themselves from the Brotherhood. The Islamic Society of North America, the umbrella group for the Muslim Youth of North America and the Muslim Students Association, says Brotherhood members helped form those groups but that their overall influence has been limited.

Groups that the Brotherhood helped form printed Islamic books, many of which were distributed at mosques and on college campuses. They included Sayyid Qutb's "In the Shade of the Koran" and "Milestones," which urge jihad, martyrdom and the creation of Islamic states. Scholars came to view his writings as manifestos for Islamic militants.

"These books had questionable paradigms, especially a dichotomous division between `us' and `them,'" says Umar Faruq Abdallah, a noted Islamic scholar who heads a Muslim educational group in suburban Chicago. "It was very harmful. It helped to create a countercultural attitude in our community."

Inamul Haq, professor of religion at Benedictine University in Lisle, Ill., says the U.S. Brotherhood pushed Islam in a conservative direction. "They were in a position to define American Islam. Since they were well-connected in the Middle East, they were able to bring money to build various institutions."

Without the Brotherhood, he says, "We would have seen a more American Islamic culture rather than a foreign community living in the United States."

In his own community, Elkadi practiced what he preached. After moving to Panama City, Fla., in 1979, he borrowed $2.4 million from a Luxembourg bank managed by his father-in-law, Abu Saud, the early Brotherhood leader, and built a large Islamic medical center just outside of town, real estate records show.

Called the Akbar Clinic, the two-story brick building had a surgery center, an emergency room and dental, psychiatry, nutrition and acupuncture services.

Inside the clinic, Elkadi set up a small mosque and an Islamic school. The school occupied several rooms on the second floor until the students became too loud and classes had to be moved to a trailer on clinic grounds.

In many eyes, Elkadi was a true Muslim leader.

"Everyone flocked to him whenever there was a problem," says Aly Shaaban, a Muslim leader in Panama City. "He was a father figure. He had this magnetism. You see his face and you just want to kiss his face."

A life's work in ruins

But things were beginning to unravel for Elkadi. By 1995 he had lost virtually everything he had worked for: his clinic, the school, his medical license and the presidency of the U.S. Brotherhood.

First to go was the clinic. Elkadi had fallen behind on the bills, and by 1988 creditors had won thousands of dollars in judgments against him. To prevent a sheriff's sale, the Islamic bank in Luxembourg took over the property, and eventually it was sold to a drug rehabilitation clinic.

But Elkadi faced an even more serious professional problem: Florida regulators started disciplinary action against him for performing unnecessary surgeries at a Panama City hospital and for doing major operations, including a mastectomy, at his clinic without proper precautions, such as an adequate blood supply.

Regulators determined that Elkadi had performed unneeded stomach surgery on nine patients. The Florida Board of Medicine concluded that Elkadi "exhibited a total lack of judgment" and was "not a competent physician." The board revoked his license in 1992.

At the time, Elkadi adamantly denied the allegations and accused Florida regulators of being "grossly unfair," according to filings with the state.

By the mid-1990s, his problems deepened. Not only was he forced to close his now-overcrowded and dilapidated school because of financial difficulties, he learned that Brotherhood leaders wanted him out as president.

It remains unclear why he lost his position. Current and former Brotherhood members say they do not know or that Elkadi simply was voted out of office. Elkadi and his wife say he was removed because he was not conservative enough. They say he had been pushing for women and other Islamic groups to be more involved in the Brotherhood, and some members did not like that.

"For some members, it's a very ingrown type of mentality," Iman Elkadi says. "You work only among Muslims, don't contact non-Muslims, so that your work is limited to a small circle." She says the Elkadis believed that "the message of Islam is for everybody."

Elkadi's daughter says he took this and other rejections hard. Elkadi now says he is not angry about his ouster and still loves the organization and its members. "They are good people because they follow Islam," he says.

A change of face

In recent years, the U.S. Brotherhood operated under the name Muslim American Society, according to documents and interviews. One of the nation's major Islamic groups, it was incorporated in Illinois in 1993 after a contentious debate among Brotherhood members.

Some wanted the Brotherhood to remain underground, while others thought a more public face would make the group more influential. Members from across the country drove to regional meeting sites to discuss the issue.

Former member Mustafa Saied recalls how he gathered with 40 others at a Days Inn on the Alabama-Tennessee border. Many members, he says, preferred secrecy, particularly in case U.S. authorities cracked down on Hamas supporters, including many Brotherhood members.

"They were looking at doomsday scenarios," he says.

When the leaders voted, it was decided that Brotherhood members would call themselves the Muslim American Society, or MAS, according to documents and interviews.

They agreed not to refer to themselves as the Brotherhood but to be more publicly active. They eventually created a Web site and for the first time invited the public to some conferences, which also were used to raise money. The incorporation papers would list Elkadi--just months away from his ouster--as a director.

Elkadi and Mohammed Mahdi Akef, a Brotherhood leader in Egypt and now the international head, had pushed for more openness. In fact, Akef says he helped found MAS by lobbying for the change during trips to the U.S.

"We have a religion, message, morals and principals that we want to carry to the people as God ordered us," he says. "So why should we work in secrecy?"

But U.S. members would remain guarded about their identity and beliefs.

An undated internal memo instructed MAS leaders on how to deal with inquiries about the new organization. If asked, "Are you the Muslim Brothers?" leaders should respond that they are an independent group called the Muslim American Society. "It is a self-explanatory name that does not need further explanation."

And if the topic of terrorism were raised, leaders were told to say that they were against terrorism but that jihad was among a Muslim's "divine legal rights" to be used to defend himself and his people and to spread Islam.

But MAS leaders say those documents and others obtained by the Tribune are either outdated or do not accurately reflect the views of the group's leaders.

MAS describes itself as a "charitable, religious, social, cultural and educational not-for-profit organization." It has headquarters in Alexandria, Va., and 53 chapters nationwide, including one in Bridgeview, across the street from the mosque there.

Shaker Elsayed, a top MAS official, says the organization was founded by Brotherhood members but has evolved to include Muslims from various backgrounds and ideologies.

"Ikhwan [Brotherhood] members founded MAS, but MAS went way beyond that point of conception," he says.

Now, he says, his group has no connection with the Brotherhood and disagrees with the international organization on many issues.

But he says that MAS, like the Brotherhood, believes in the teachings of Brotherhood founder Hassan al-Banna, which are "the closest reflection of how Islam should be in this life."

"I understand that some of our members may say, `Yes, we are Ikhwan,'" Elsayed says. But, he says, MAS is not administered from Egypt. He adds, "We are not your typical Ikhwan."

MAS says it has about 10,000 members and that any Muslim can join by paying $10 a month in dues.

But to be an "active" member--the highest membership class--one must complete five years of Muslim community service and education, which includes studying writings by Brotherhood ideologues al-Banna and Qutb.

There are about 1,500 active members, including many women. Elsayed says about 45 percent of those members belong to the Brotherhood.

MAS' precise connection to the Brotherhood is a sensitive issue, says Mohamed Habib, a high-ranking Brotherhood official in Cairo.

"I don't want to say MAS is an Ikhwan entity," he says. "This causes some security inconveniences for them in a post-Sept. 11 world."

Preserving Muslim identity

Elsayed says MAS does not believe in creating an Islamic state in America but supports the establishment of Islamic governments in Muslim lands. The group's goal in the United States, he says, "is to serve and develop the Muslim community and help Muslims to be the best citizens they can be of this country." That includes preserving the Muslim identity, particularly among youths.

MAS collected $2.8 million in dues and donations in 2003--more than 10 times the amount in 1997, according to Internal Revenue Service filings.

Spending often is aimed at schools, teachers and children, the filings show. The group has conducted teacher training programs, issued curriculum guides and established youth centers. It also set up Islamic American University, largely a correspondence school with an office in suburban Detroit, to train teachers and preachers.

Until 18 months ago, the university's chairman was Yusuf al-Qaradawi, a prominent cleric in Qatar and a spiritual figure of the Brotherhood who has angered many in the West by praising suicide bombers in Israel and Iraq. The U.S. government has barred him from entering the country since late 1999. He says that action was taken after he praised Palestinian militants.

In the Chicago area, MAS has sponsored summer camps for teenagers. Shahzeen Karim, 19, says a camp in Bridgeview inspired her to resume covering her hair in the Islamic tradition.

"We were praying five times a day," Karim says. "It was like a proper Islamic environment. It brought me back to Islam."

At a summer camp last year in Wisconsin run by the Chicago chapter of MAS, teens received a 2-inch-thick packet of material that included a discussion of the Brotherhood's philosophy and detailed instructions on how to win converts.

Part of the Chicago chapter's Web site is devoted to teens. It includes reading materials that say Muslims have a duty to help form Islamic governments worldwide and should be prepared to take up arms to do so.

One passage states that "until the nations of the world have functionally Islamic governments, every individual who is careless or lazy in working for Islam is sinful." Another one says that Western secularism and materialism are evil and that Muslims should "pursue this evil force to its own lands" and "invade its Western heartland."

In suburban Rosemont, Ill., several thousand people attended MAS' annual conference in 2002 at the village's convention center. One speaker said, "We may all feel emotionally attached to the goal of an Islamic state" in America, but it would have to wait because of the modest Muslim population. "We mustn't cross hurdles we can't jump yet."

Federal authorities say they are scrutinizing the Brotherhood but acknowledge that they have been slow to understand the group.

In 2002, customs agents stopped Elkadi at Washington Dulles International Airport and questioned him for four hours. They wanted to know who was in the Brotherhood, where it gets its money and how the Elkadis invested their money. A month later, agents came to Elkadi's home with similar questions. He recalls that he answered every one.

Elkadi remains highly regarded in some Muslim circles. An article in 2000 in the MAS magazine praised him as a great Muslim in the ranks of al-Banna and Qutb.

He and his wife say they hope the Brotherhood succeeds. After all, they say, everyone in the Brotherhood agrees on the main issue.

"Everyone's goal is the same--to educate everyone about Islam and to follow the teachings of Islam with the hope of establishing an Islamic state," Iman Elkadi says. "Who knows whether it will happen or not, but we still have to strive for it."

- - -

Brotherhood has grown in influence

The Muslim Brotherhood, founded in Egypt more than seven decades ago, is among the most powerful political forces in the Islamic world today.

1928: The Muslim Brotherhood is formed in Egypt by Hassan al-Banna to promote a return to fundamental Islamic beliefs and practices and to fight Western colonialism in the Islamic world.

Late 1930s: The Brotherhood starts forming affiliated chapters in Palestine, Lebanon and Syria.

1948: The Brotherhood is implicated in the assassination of Egyptian Prime Minister Mahmud Nuqrashi, who had banned the group. Al-Banna denies involvement.

1949: The Egyptian government retaliates for Nuqrashi's assassination by killing al-Banna.

1954: A Brotherhood member tries to assassinate Egyptian President Gamal Abdel Nasser and fails. Nasser executes several of the group's leaders and incarcerates thousands of its followers.

1962: The Cultural Society is created as the first Brotherhood organization in the United States. Society members help establish numerous Islamic organizations, mosques and schools.

1966: Sayyid Qutb, a Brotherhood ideologue who urged Muslims to take up arms against non-Islamic governments, is executed by Nasser's regime.

1982: In Hamah, Syria, at least 10,000 people are killed by government troops suppressing an uprising by the Brotherhood.

1993: The Muslim American Society, initially based in Illinois and now in Virginia, is created to be a more public face of the Brotherhood in the U.S.

2001: The U.S. names Brotherhood member Youssef Nada and his Swissbased investment network, allegedly established with backing from the Brotherhood, as terrorist financiers. Nada denies any terrorist links.

2002: Tens of thousands of Brotherhood supporters fill the streets of Cairo during a funeral for group leader Mustafa Mashhour on Nov. 15.

2003: U.S. authorities investigating alleged terrorism funding describe Virginia businessman Soliman Biheiri as the Brotherhood's "financial toehold" in the U.S. Biheiri denies any terrorist links.

2004: The Egyptian government rounds up dozens of Brotherhood supporters, freezes members' assets and ousts one of its backers from parliament.

Tribune foreign correspondent Evan Osnos, staff reporter Stephen Franklin and Hossam el-Hamalawy contributed to this report.

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Obama and Versions of America: How to Affect Social Change by Dr. Paul Dean


Social change is a constant need due to the reality of the inexorable encroachment of sin in a culture. A civil society must have the rule of law or the sinfulness of man will go unchecked. Justice provides a sense of fairness and redress. Liberty keeps the government and citizens from controlling the lives of others. People are free to make their own way in the world, worship as they deem best, and the gospel is allowed an entrance into the market-place of ideas. Of course, the gospel is the only message that is the power of God unto salvation and the resulting society ordered by limited government, the rule of law, liberty and justice for all, an exalted work ethic, and personal responsibility.

Those who see social change as necessary don’t all agree on what that social change should be. One need simply scroll through a number of social issues in the news every week to affirm that state of affairs. Moreover, not all agree with how social change should be brought about. For example, the Washington Post is reporting that President Obama is making empathy a requirement for service on the Supreme Court. “Obama, preparing to nominate a successor to Justice David H. Souter, has often said that the best judges take note of the real world. By making empathy a core qualification, he is uniting his own eclectic experience as a community organizer and constitutional-law professor while demanding what he has called ‘a broader vision for what America should be.’”

It is this “broader vision for what America should be” and how to get there that is of concern for the believer. With reference to the Supreme Court, “Obama has said that 95 percent of Supreme Court cases pose no great controversy, and that rulings typically result in no great divisions. ‘But it's those 5 percent of the cases that really count,’ he told the Planned Parenthood Action Fund in 2007. ‘And in those 5 percent of cases, what you've got to look at is: What is in the justice's heart? What's their broader vision of what America should be?’” Further, “Obama connected his worldview to the bench in 2005 when he opposed the nomination of California Supreme Court Justice Janice Rogers Brown to the U.S. Court of Appeals for the District of Columbia Circuit. He said Brown was trying to create ‘a version of America’ by siding with the powerful.”

In his comments concerning his looming first appointment to the Court, the President would have the Court ignore current law deemed to be unfair. He cited a case involving Lilly Ledbetter, “the former Alabama tire company worker who learned through a furtive note from a colleague that she had long been earning less than her male counterparts. When her discrimination case reached the Supreme Court, five justices denied her claim, ruling that she sued too long after the pay decision was made. Many conservatives welcomed the ruling as a strict and proper interpretation of the law: The statute of limitations had expired. But Obama considered the ruling heartless and said Ledbetter had been treated unfairly. ‘The court has to stand up,’ he said, ‘if nobody else will.’”

On the other hand, Obama has often described his version of America. “He said people of all backgrounds ‘want a nation where we share life's risks and rewards with each other.’ ‘And when they make laws that will spread this opportunity to all who are willing to work for it,’ he went on, ‘they expect our judges to uphold those laws, not tear them down because of their political predilections.’”

There is a glaring contradiction in the President’s statements: “The court has to stand up if nobody else will,” and “they expect our judges to uphold those laws, not tear them down because of their political predilections.” The President is actually urging the Court to tear down laws based upon political predilections. Such contradictions are not uncommon for President Obama. On numerous occasions he has stated that government decisions will be based on science and not ideology with reference to embryonic stem-cell research, the Swine Flu, the environment, etc. The glaring reality is that his decisions are based on ideology. Further, Charles Krauthammer noted with reference to one such occasion, “Obama's address was morally unserious in the extreme. It was populated, as his didactic discourses always are, with a forest of straw men. Such as his admonition that we must resist the ‘false choice between sound science and moral values.’ Yet, exactly 2 minutes and 12 seconds later he went on to declare that he would never open the door to the ‘use of cloning for human reproduction.’” Krauthammer pointed out that Obama’s last statement was a choice of ethics over science.

The point here is that social change is always rooted in ideology. The question then becomes two-fold: how do we determine whose ideology is right and whose ideology will prevail? Of course, ideology that is not rooted in a source of authority outside of oneself will always be filled with inconsistencies and contradictions as the President’s is. Ideology that is always changing will lead to a society filled with self-focus, a demand for government assistance, injustice, and a waning commitment to liberty and the rule of law. Government is viewed as the savior for a while but the true result is tyranny. That reality is why a biblical ideology, more specifically, a New Covenant ideology of civil society, must drive our civil society. It is the only ideology that leads to liberty and justice for all.

The larger question for the Christian then is how do we go about affecting social change? There are thousands of Christians active in the political process of our nation. Consider this encouragement from a Christianity Today article entitled, “The New (Evangelical) Mainline: “We enjoy a significant position of authority — contra Meacham — in moral and political issues. Pastors Rick Warren and Joel Hunter, both of whom have had access to President Obama, exemplify this kind of standing in the culture. Glenn Stanton of Focus on the Family notes that the existence of laws or constitutional amendments opposing the redefinition of marriage in 43 states would be hard to explain absent the massive presence of pro-family evangelicals. Facing little competition from the old mainline, growing and dynamic megachurches, Pentecostals, and immigrant churches also have a great opportunity to appeal to the spiritually curious and open.”

However, part of the point of the Christianity Today article is that according to the American Religious Identification Survey, those who claim to be atheist, agnostic, or have no religious preference have doubled in eighteen years. Mainline denominations and even the Baptists are declining in membership. Yet, the author’s of the survey note that other trends “suggest a movement towards more conservative beliefs and particularly to a more ‘evangelical’ outlook among Christians.” Christianity Today suggests that evangelicals are becoming the new mainline. If the old mainline is now the sideline, as some are calling it, the question raised is “how do we, the new mainline, avoid becoming like the old mainline and present an authentic faith to our American neighbors?” How do we keep from becoming the sideline?

Christianity Today notes that “theological compromise in a misguided pursuit of relevance at all costs played a major role” in the sidelining of the mainline. A “rigorous and public recommitment to the unchanging truth of the gospel is essential.” Further, “spreading the gospel, not seeking social or political relevance, is the heartbeat of evangelicalism. More often than not, cozying up to the culture has been a ticket to later embarrassment. To be sure, we also must remain engaged in the larger culture. . . .Our future as a movement depends on that which is in our name, the evangel, the good news of Jesus Christ.”

The point is that Christians should be involved in the political process and indeed every area of civil life. But, we must never see the government as our savior. If the gospel does not permeate a culture, not only are people not saved, but political victories will be fewer and farther between until they are gone completely. Political victories are rooted in worldview as President Obama demonstrates. At the same time, if we focus on political victories apart from the gospel, what have we gained? We have gained a temporary victory based on what we want America to be. That’s all Obama wants: an America how he wants it to be. So, we go back and forth trading victories without really affecting change at the heart level both in terms of political ideology or salvation. If we continue on a course of political activism divorced from the gospel we may win a few victories in the short term, but the overall victory in the long term will be lost both in terms of the nation and the souls that need to be saved for eternity.

“Politics and legislation are the main engines of social change in Obama's view, said University of Chicago law professor David Strauss.” Sadly, many Christians and indeed Christian leaders hold the same view.

In the much talked about Newsweek story, “The End of Christian America,” Jon Meacham noted, “While we remain a nation decisively shaped by religious faith, our politics and our culture are, in the main, less influenced by movements and arguments of an explicitly Christian character than they were even five years ago.” In that statement, Meacham has unwittingly done us a favor. He is right. And, the solution is in the statement. Believers must realize that social change ultimately comes about by “arguments of an explicitly Christian character.” We battle in the realm of ideas. Paul said, “the weapons of our warfare are not carnal but mighty in God for pulling down strongholds, casting down arguments and every high thing that exalts itself against the knowledge of God, bringing every thought into captivity to the obedience of Christ (2 Cor. 10:4-5).”

Let’s go one step further than Christianity Today’s proper assessment. The reality is that our future not only as a movement but as faithful representatives of Christ and the advancement of His kingdom in America depends on that which is in our name, the evangel, the good news of Jesus Christ.

To schedule Dr. Dean to speak on Christian Worldview or to schedule biblical counseling training for your church through the Southern Baptist Association of Biblical Counselors or the International Association of Biblical Counselors, e-mail pauldeanjr@juno.com.

 

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Evil as Entertainment (author Unknown)

The internet is such a strange phenomenon and one we are really only beginning to understand, at least in terms of its impact on society and faith and family and just about everything else. What passes for entertainment on the internet would, at most other times in history, be regarded as shocking or wasteful or disgusting or maybe just plain absurd. Witness the web sites that offer video after video of people cracking bones doing stupid skateboard tricks. You can search YouTube for videos of people breaking bones and spend hours in senseless entertainment, guffawing at the stupidity and wincing at the pain. Or witness the sites that specialize in the macabre, displaying lineups of dead or dismembered bodies or photographic evidence of brutal accidents. Or witness the almost limitless amounts of pornography which is a contemporary form of entertainment for boys and men (and, increasingly, girls and women) of all ages. So much of the entertainment the internet offers is entertainment at its very worst. Evil has become entertainment.

I want to say a word today about watchblogs or discernment blogs or whatever you want to call them. I am referring to blogs that specialize in sharing bad news. They share stories and videos and anecdotes about Christians and churches and supposed Christians and supposed churches. Day after day they offer examples of all that is wrong in the church. They may vary what they offer a little bit, but what is true of them is that they offer a steady diet of negative content related to the church in general or perhaps related to just one person or one ministry. You know of some of these sites, I am sure.

I was thinking about such blogs a few days ago and arrived at a conclusion about them that actually rather surprised me. This is what I realized: these blogs are really little more than entertainment. And once I had these blogs filed in that way in my mind, their popularity and their draw began to make much more sense to me. They are really just a spiritualized form of YouTube or any other site that entertains by sharing what is gross and base and negative and that does so for the sake of entertainment. There is really no value in watching boys do stupid things on skateboards and laughing when they crack their ankle bones in half; there is really no value in watching the worst pastors in America preach to the worst churches in America. Such sites offer evil as entertainment.

Watchblogs offers what I think is a classic case of what Neil Postman referred to as context-free information. He once asked this: “How often does it occur that information provided you on morning radio or television, or in the morning newspaper, causes you to alter your plans for the day, or to take some action you would not otherwise have taken, or provides some action you would not otherwise have taken, or provides insight into some problem you are required to solve?” It is worth thinking about, isn’t it? How often do you see something on the news and actually do something about it? How often is that even the remotest possibility? “Most of our daily news is inert, consisting of information that gives us something to talk about but cannot lead to any meaningful action. This fact is the principle legacy of the telegraph: By generating an abundance of irrelevant information, it dramatically altered what may be called the ‘information-action ratio.’”

That information-action ratio is what is so out-of-whack in the world of the watchblogs. They provide information about churches and Christians—information that may be important to certain people in certain contexts. After all, if I went to a church where the pastor had been involved in an outrageous scandal, I would want to know about it. But if a pastor of a church in Kalamazoo preaches a sermon in which he says something scandalous, it has no effect on my life and, beyond its draw as entertainment, I can think of few good reasons for me to even know about it. Multiply this by hundreds of new stories a week (or even just tens of stories a week) and I end up with a huge amount of negative information that stays in my head and heart, but which has no bearing on my life.

What is the problem with this? Again, Postman answers, “In both oral and typographic cultures, information derives its importance from the possibilities of action.” Telegraphy, television and other forms of electronic media have made the relationship between information and action both abstract and remote. We hear more news than ever which elicits more opinions than ever, but which leave us increasingly impotent, unable to do anything more than offer opinions and bluster about what we might do if we could. And I am left asking, do I really need to read and to know so much of what passes as news today? Do I really need to read and to know about the seedy underbelly of the church, when such things happen thousands of miles away, among people I will never meet and in places I will never be? Such news is plenty entertaining, but it is useless to me. It does nothing to further my faith or to cause me to grow in godliness. In fact, I suspect just the opposite may well be true. I think of Paul’s words near the close of the book of Romans where he says, “I want you to be wise as to what is good and innocent as to what is evil” (Romans 16:19b). He wants these Christians to invest their time studying not what is evil, but what is good. When they have confidence in all that is good, the evil will become ever-more apparent.

This is not the first or only time Paul has given this exhortation. In 1 Corinthians 14:20 he wrote “Brothers, do not be children in your thinking. Be infants in evil, but in your thinking be mature.” And in saying this he echoes the words of Jesus who exhorted His disciples and warned them of the persecution that would come, saying “Behold, I am sending you out as sheep in the midst of wolves, so be wise as serpents and innocent as doves” (Matthew 10:16).

We are to focus much more on what is good than what is evil. This is one of the lessons I sought to teach in The Discipline of Spiritual Discernment. “Our efforts in discernment should revolve around knowing the truth so that we might see the evil in contrast to what is true. The reason it is better to focus on what is true is simple: error is constantly changing, shifting and morphing into new forms, always seeking to imitate what is true in new and creative ways. Truth, however, is constant. When we know what is true we will more easily be able to identify what is error.”

Filling our minds, our hearts, our computer screens, our blogs with all that is wrong in the church will do little to conform us into the image of the Savior. It can do little. My encouragement to you, whether you are a regular visitor to one of these sites or whether you simply visit them occasionally, is to examine your heart and to examine your motives. Do you visit such sites because they have information that you truly need to know? Or do you visit as a means of entertainment? Are you delighting in what is good and true and pure and lovely, or are you finding a strange, sick delight in all that is evil and ugly?


Find more at this web site:


http://www.challies.com/archives/articles/evil-as-entertainment.php



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Democracy needs a bailout -- By David Sirota


Forget the loss of investigative journalism. The passive American public is the biggest threat to democracy.


Without a bailout, newspapers will lay off staff, fewer journalists will report important stories, there will be no Fourth Estate check on state and corporate power, and the country will suffer. So goes the pro-democracy case for government and/or altruistic investors to save the newspaper industry with an infusion of cash.

Except, amid the debate about such a bailout, it seems government and investors are already subsidizing the industry with in-kind contributions of damning honesty. These outbursts of candor are so brazen and self-explanatory as to require almost zero reportorial resources for blockbuster scoops.

It started in January, when it seemed America would need enterprising journalists to find out whether President Obama's Wall Street-connected economic team was focused on helping average Americans, or on protecting the super-wealthy speculator class.

Typically, newspapers have to go all Woodward and Bernstein to answer such questions of influence and loyalties. They have to circumvent diversionary press-secretary spin, dig up documents and ferret out leaks -- and all of that takes money they increasingly do not have.

But then Treasury Secretary Tim Geithner came right out and said, "We have a financial system that is run by private shareholders, managed by private institutions, and we'd like to do our best to preserve that system." As Bloomberg News correctly noted, the White House was open about its primary "goal of preserving the private banking system." Motives admitted, objectives acknowledged, no expensive investigative reporting necessary.

Months later, longtime Republican Sen. Arlen Specter of Pennsylvania announced he was becoming a Democrat. For a moment, it appeared the republic needed reporters doing the tedious work of discovering whether or not Specter's move would shift his key votes and consequently result in new legislative possibilities. Yet, that's when Specter made his in-kind contribution to journalism's bailout, saving newspapers the reporting expense by admitting, "I will not be changing my own personal independence or my own approach to individual issues."

Then came the story of the dethroned Republican Party and its allegedly "new" direction. It is a drama that would have been nuanced and difficult to report in the past, but now requires little enterprise journalism at all, as the GOP is openly heading off the right cliff. Indeed, Republican obstructionists in Congress vote against almost everything, and top party leaders like Dick Cheney have said "it would be a mistake for us to moderate."

On Wall Street, forget needing a resource-bolstered business press to cut through saccharine-yet-deceitful corporate-speak. J. Christopher Flowers, one of the finance industry's richest speculators, has been publicly noting that when it comes to the federal rescue plan, "the government has all the downside and we have all the upside," meaning "lowlife grave dancers like me will make a fortune." And no need for a corps of gotcha correspondents to catch contrite and newly ascetic Wall Streeters secretly living it up -- execs long ago said they are still paying out big bonuses and salaries, with one insisting that pay caps are unacceptable because "$500,000 is not a lot of money."

Maybe the ruling class knows that after the Bush years' blatant extremism, corruption and robbery, horrifying truth has lost its shock-and-gag value and, thus, its potential for consequences. And maybe if Americans figure out how to re-create tangible ramifications for wrongdoing, officialdom's in-kind contributions of honesty will end and democracy's survival will require a newspaper renaissance.

Until then, though, the biggest threat to democracy is less the regrettably decimated journalism industry than the disenfranchised public. If we cannot or will not turn already reported news into immediate action, then no newspaper, however profitable or aggressive, can bail us out in the future.

© 2009 Creators Syndicate Inc.

-- By David Sirota

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Three Stories and One Supreme Court Nominee Sandy Rios


 

Sonia Sotomayor’s commitment to her own personal interpretation of the Constitution could have devastating consequences on everyday Americans, and here’s why:

It was Good Friday when the knock came on the door at the home of Pastor David Jones and his wife, Mary. San Diego County officials were hot on the trail of reportedly suspicious activities taking place inside the couple’s home each and every week.

Mrs. Jones, the co-conspirator, was interrogated vigorously. “Do you sing? Do you say ‘Praise the Lord?’ Do you say ‘amen?’” San Diegans can be relieved their county officials are in hot pursuit of major trouble makers. Especially on Good Friday. How could authorities possibly sit by and allow homes to be the centers of meal sharing and Bible Study in the midst of unsuspecting, at-risk neighbors?

The Joneses were warned that if they did not pay for an expensive Major Use Permit, normally used for the city to conduct studies on environmental impact, traffic patterns, etc., their weekly gatherings of 15 would have to stop. And if they did not stop, there would be escalating fines and “then it will get ugly.” Seems like it already has.

Meanwhile, down in Louisiana, a man was reportedly stopped by police and held for questioning and a background check for displaying the notoriously offensive “Don’t Tread on Me” bumper sticker. Christopher Gadsen, a Revolutionary War era general designed “Don’t Tread on Me” for a flag representing the need to defend America’s rights from tyranny. Ben Franklin loved the symbolism Gadsen used of the rattlesnake and the rebellion. Good thing Franklin wasn’t traveling in Louisiana, bearing that flag on his carriage, when those police were out to catch “right wing extremists.” Imagine … Homeland Security urging the nation’s law enforcement to protect the homeland from those who want to protect the homeland. Is there a category for that?

Or for that matter, for this: Debbie McLucas is a hospital supervisor at Kindred Hospital in Mansfield, Texas. Her husband and sons have all served in the military. Her daughter is currently stationed in Iraq as a combat medic. In honor of Memorial Day, Debbie did the unthinkable: She hung a three-by-five foot American flag in an office she shares with three other supervisors. One was quite offended. So offended, she took down the flag all by herself. Take that, Debbie McLucas. The hospital refused to support the display, claiming other patients and visitors were also offended.

It would be hard to fault the offended supervisor. She has only been in the country for 14 years, during which time she has risen to a high level of achievement, made a good salary and, as with a number among the new wave of immigrants, never had or felt a need to show loyalty to the country for her great fortune. It isn’t her country … this USA … some nation in Africa is … and the honoring of the shedding of American blood abroad to protect it was apparently of little consequence to her.

These three stories currently in the news represent the types of issues that may very well end up in the United States Supreme Court.

Enter Judge Sonia Sotomayor and the living, breathing, constitution philosophy she and Justice Ruth Bader Ginsburg and President Barack Obama embrace. Under the original interpretation of our rights, pastor and Mrs. Jones would have had the right to hold a Bible Study in their home, but the newly-found interpretation of the “right to privacy” which more enlightened judicial minds most recently found to protect abortion and homosexual relations may in the future not protect Bible Study, which by the way, is the source of objection for both.

While the ever-evolving interpretation of the First Amendment right to free religious expression currently extends to Muslims with prayer rugs in public school and prisons, future justices with an agenda may no longer see it extending to Christians in their homes.

Homeland Security’s new concern over “right-wing extremists,” including those who are pro-life, those who believe in a strict interpretation of the Bible, others who oppose illegal immigration and, horror of horrors, embrace state control rather than federal, has given us yet another interpretation of the First Amendment. The right to free speech, primarily guaranteed for the purpose of political dissent may soon not include political dissenters who display politically incorrect concerns with unpopular slogans on bumper stickers.

The Constitution is said to protect the burning of the American flag, but its guarantees haven’t devolved yet so that the display of it is criminal. Don’t think that couldn’t change. Our current president thought it inappropriate to wear the flag on his lapel while campaigning. While other American leaders have proudly worn it in the past, he called it a “false patriotism.” And his friends on the left agree. Newfound rights not to be “offended” together with immigration laws that have made it too tempting for some immigrants to reap the benefits of this country while disdaining and undermining it have made the flag unacceptable in many quarters. While their rights to claim offense may be protected by the new understanding of the law, our right to display the flag could well be threatened.

What’s at stake with the nomination of a judge like Sonja Sottomayor are real-life consequences for ordinary American citizens. What we don’t need is a justice taking the bench with the notion that somehow the Constitution doesn’t mean what it has always meant, who proceeds to twist it to reflect his or her own viewpoint—a justice like Sonia Sotomayor, the older, wiser Latina female, who in her own words “would more often than not reach a better conclusion than a white male…” judge.

The dangers of her attitude are exactly why the Constitution isn’t “living.” Its principles were established to endure for generations so that such men and women, persuaded by their times, could not recklessly adjudicate while claiming “new wisdom.” Methods change, circumstances change, but principles and carefully-crafted law based on those principles stand like a rock for all time.

A wise Latina woman and a wise white man will more often than not reach the same conclusion: One reflective of enduring wisdom and not the folly of our times

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Obama and His Pro-Life Apologists Obama and His Pro-Life Apologists



Note: Three months into President Obama’s first term, one of his most prominent pro-life opponents, Robert P. George, engaged in a debate with one of his most prominent pro-life supporters, Douglas W. Kmiec. The article below is adopted from George's remarks, which called for candid speech on Obama's abortion record.

One does not treat an interlocutor with respect if one refuses to speak plainly. Candor, far from being the enemy of civility, is one of its preconditions. And so I will speak candidly of the points where I, as someone dedicated to the principle that every member of the human family possesses profound, inherent, and equal dignity, find myself at odds—deeply at odds—with President Obama and his administration.

In my judgment, citizens who honor and seek to protect the lives of vulnerable unborn children must oppose the Obama administration’s agenda on the taking of unborn human life. Our goal must be to frustrate at every turn the administration’s efforts, which will be ongoing and determined, to expand the abortion license and the authorization and funding of human embryo-destructive research. Because the President came into office with large majorities in both houses of Congress, ours is a daunting task. But the difficulty of the challenge in no way diminishes our moral obligation to meet it. And I here call upon pro-life Americans, including those who, like Professor Kmiec, supported President Obama and helped to bring him to power, to find common ground with us in this great struggle for human equality, human rights, and human dignity.

Professor Kmiec and I share common ground in the belief that every member of the human family—irrespective of race, class, and ethnicity, but also irrespective of age, size, location, stage of development or condition of dependency—is entitled to our care and respect and to the equal protection of our laws. This is what it means to be pro-life. In this shared conviction, Professor Kmiec and I are on one side of a crucial divide, and President Obama is on the other. Professor Kmiec and I stand together in our opposition to abortion and human embryo-destructive research, but we share very little common ground on these matters with President Obama and those whom he has appointed to high office who will determine the fate of vast numbers of our weakest and most vulnerable brothers and sisters.

I appreciated the President’s candor at Notre Dame when he said:

“Now understand, understand, class of 2009, I do not suggest that the debate surrounding abortion can or should go away. Because no matter how much we may want to fudge it . . . the fact is that at some level the views of the two camps are irreconcilable.”

The President is right. His view regarding the status, dignity, and rights of the child in the womb, and the view shared by Professor Kmiec and myself, are irreconcilable. A chasm separates those of us who believe that every living human being possesses profound, inherent, and equal dignity, and those who, for whatever reasons, deny it. The issue really cannot be fudged, as people sometimes try to do by imagining that there is a dispute about whether it is really a human being who is dismembered in a dilation and curettage abortion, or whose skin is burned off in a saline abortion, or the base of whose skull is pierced and whose brains are sucked out in a dilation and extraction (or “partial birth”) abortion. That issue has long been settled—and it was settled not by religion or philosophy, but by the sciences of human embryology and developmental biology.

So it is clear that what divides us as a nation, and what divides Barack Obama, on one side, from Robert George and Douglas Kmiec, on the other, is not whether the being whose life is taken in abortion and in embryo-destructive research is a living individual of the human species—a human being; it is whether all human beings, or only some, possess fundamental dignity and a right to life. Professor Kmiec and I affirm, and the President denies, that every human being, even the youngest, the smallest, the weakest and most vulnerable at the very dawn of their lives, has a life which should be respected and protected by law. The President holds, and we deny, that those in the embryonic and fetal stages of human development may rightly and freely be killed because they are unwanted or potentially burdensome to others, or because materials obtained by dissecting them may be useful in biomedical research.

The President speaks of human rights, and I do not question his sincerity. But he does not understand the concept of human rights, as Professor Kmiec and I do, to refer to rights—above all the right to life—that all human beings possess simply by virtue of our humanity. For the President, being human is not enough to qualify someone as the bearer of a right to life. Professor Kmiec and I, by contrast, believe that every member of the human family, simply by virtue of his or her humanity, is truly created equal. We reject the idea that is at the foundation of President Obama’s position on abortion and human embryo-destructive research, namely, that those of us who are equal in worth and dignity are equal by virtue of some attribute other than our common humanity—some attribute that unborn children have not yet acquired, justifying others in treating them, despite their humanity, as non-persons, as objects or property, even as disposable material for use in biomedical research.

President Obama knows that an unborn baby is human. He knows that the blood shed by the abortionist’s knife is human blood, that the bones broken are human bones. He does not deny that the baby whom nurse Jill Stanek discovered gasping for breath in a soiled linen bin after a failed attempt to end her life by abortion, was a human baby. Even in opposing the Illinois Born-Alive Infants Protection Act, which was designed to assure that such babies were rescued if possible or at least given comfort care while they died, Barack Obama did not deny the humanity of the child. What he denied, and continues to deny, is the fundamental equality of that child—equality with those of us who are safely born and accepted into the human community.

During his campaign for the Presidency, then-Senator Obama was asked by Rick Warren: When does a baby acquire human rights? In reply, the future president did not say, “well it depends on when a baby (or a “fetus”) comes to life, or becomes a human being.” He knows that an unborn baby is alive and human, and he did not pretend not to know. His response to Pastor Warren did seem to express doubt of as to when rights begin, saying that the question was “above his pay grade.” But Obama’s record as an activist, legislator, and now as President makes clear his view that an unborn baby, or even a baby outside the womb like the one discovered in that soiled linen bin by Jill Stanek, possesses no rights that others are bound to respect or that the law should in any way honor. Throughout his political career, Obama has consistently and fervently rejected every form of legislation that would provide unborn babies or children who survive abortions with meaningful protection against being killed. Indeed, he has opposed even efforts short of prohibiting abortion that would discourage the practice, limit its availability, or directly favor childbirth over abortion.

Professor Kmiec and I believe in the equal fundamental rights of all, including the equality of mother and child. We recognize that women with undesired pregnancies can undergo serious hardships, and we believe that a just and caring society will concern itself with the well-being of mothers as well as their children. We agree with Mother Teresa of Calcutta, who by precept and example taught us to reach out in love to care for mother and child alike, never supposing that love for one entails abandoning care and concern for the other. President Obama holds a different view. He has made clear his own conviction that the equality of women depends on denying the equality and rights of the children they carry. He has made what is, from the pro-life point of view, the tragic error of supposing that the equality of one class of human beings can and must be purchased by denial of the equality of another.

One wishes that President Obama had listened carefully, and with an open mind and an open heart, to the pleas of Mother Teresa during her last visit to the United States. Her message was that a pregnant woman in need is not in need of the violence of abortion. What she and her child need are love and care—love and care from all of us. Our task, Mother reminded us, as individuals and as a society, is to love and care for mother and child alike.

President Obama’s supporters do him no good service by pretending that his expressions of willingness to find “common ground” with pro-lifers involve, at some level, recognition that abortion or embryo-destructive research is bad or tragic because it kills a living member of the human family. Unlike, say former President Clinton or former New York Governor Cuomo, or even Vice President Biden, President Obama does not profess to be “personally opposed” to abortion, or to believe that abortion is a wrongful act that must nevertheless be legally permitted because the consequences of outlawing it would be worse than those of tolerating it. His belief, and his policy, is that abortion, if a woman chooses it, is not wrong. That is why he is not personally opposed to it. There is no wrong there to oppose. Indeed, the President made crystal clear his view that abortion can be an entirely legitimate and even desirable option, when he said that if one of his daughters made a mistake and became pregnant, he would not want her to be “punished with a baby.” In such a case, he saw abortion as the right solution to a problem—a solution that we should be happy is available, and that we should make available if it happens not yet to be available. Without it, a young woman would be “punished.”

I have no doubt that the President regards it as deeply unfortunate, sometimes even tragic, that the problem giving rise to the woman’s need for an abortion exists; but there is equally no room to doubt that President Obama regards it as fortunate that a solution to the problem—in the form of abortion—is available. For someone holding this view, and many people in the academic world hold it, abortion is not in itself a bad or wrongful thing, any more than a knee replacement operation is in itself a bad or wrongful thing. Of course, it would be better if no one ever injured a knee and found himself in need of a knee operation. No one regards knee operations as desirable for their own sakes. No one deliberately injures himself just so that he can have a knee operation. And people don’t have knee operations performed on them for frivolous reasons. But a knee operation is not something that one would discourage or be personally opposed to. It is a solution to a problem, and should therefore be made as available and accessible as possible for people who need them. For those who share President Obama’s view of the moral status of the child in the womb, the decision to abort may be more wrenching for many women than the decision to have a knee operation typically is, but it is like a knee operation precisely inasmuch as it is a legitimate solution to a problem.

All of this was made transparently clear at a recent meeting at the White House in which people on both sides of the abortion issue were brought together to see if they could find some common ground. The meeting was led by Melody Barnes, the Director of the President’s Domestic Policy Council and a former board member of Emily’s List, one of the nation’s most aggressive organizations devoted to legal abortion and its public funding. At one point in the meeting, she recognized pro-life activist Wendy Wright, who attempted to explain ways that the President could begin to achieve his reported goal of reducing the number of abortions. Barnes interrupted her to make clear that the precise goal of the administration is to “reduce the need for abortions.” Two days after the meeting, the President spoke at Notre Dame, and he chose his words carefully. In speaking of common ground, he did not propose that we reduce the number of abortions, but rather [and I quote] “the number of women seeking abortions.” Get it? The President and his administration will not join us on the common ground of discouraging women from having abortions or even in encouraging them to choose childbirth over abortion. The proposed common ground is the reduction of unwanted pregnancies—not discouraging those in “need” of abortion from having them. The idea that the interests of a child who might be vulnerable to the violence of abortion should be taken into account, even in discouraging women from resorting to abortion or encouraging alternatives to abortion, is simply off the table.

The President and the people he has placed in charge of this issue, such as Melody Barnes, have a deep ideological commitment to the idea that there is nothing actually wrong with abortion, because the child in the womb simply has no rights. This commitment explains the policy positions President Obama has consistently taken since he entered the Illinois legislature. It crucially shapes and profoundly limits what he and those associated with him regard as the “common ground” on which he is willing to work with pro-lifers. And it explains why he and they reject what we, as pro-lifers, propose as common ground.

Because the President does not believe in the profound, inherent, and equal dignity of every member of the human family; because he does not believe that babies acquire human rights until after birth; because he does not see abortion as tragic because it takes the life of an innocent human being, he is utterly and intransigently unwilling to support even efforts short of prohibiting abortion that would plainly reduce the number of abortions. Moreover, he is adamantly in favor of funding abortions and abortion providers at home and abroad, and has already taken steps in that direction by revoking the Mexico City Policy and proposing a budget that would restore publicly funded abortions in Washington, D.C.—despite the well-documented and universally acknowledged fact that when you provide public funding for abortion, you get more abortions.

Some pro-choice people think that the killing of unborn children where there is no grave threat to the mother, though bad and unjust, should not be made illegal at least in the earliest stages. Potentially we would have significant common ground with these fellow citizens in the form of policies to discourage abortion and reduce the number of killings. For example, we could join together to oppose the funding of abortion at home and abroad; we could work together for bans on second and third trimester abortions, on abortions for sex-selection, and on particularly heinous methods of abortion, such as partial-birth abortions; we could agree on what Professor Hadley Arkes calls “the most modest first step of all,” namely requiring care—at least comfort care—for the child who survives an attempted abortion and is born alive. We could provide desperately needed financial support for pro-life clinics that assist pregnant women in need—need that is not always financial, but is often emotional and spiritual—and encourage and help these women make the choice for life. We could enact waiting periods, informed consent laws, and parental notification laws that have been shown, in research by Michael New and others, to reduce abortions. We could reject the funding of embryo-destructive research, and join together to support promising research and treatments using non-embryonic sources of stem cells.

However, far from meeting us on any of these areas of common ground, President Obama opposes our efforts. Political realities have prevented him from making good on his promise to the abortion industry to sign the pro-abortion nuclear bomb called the Freedom of Choice Act as one of his first acts in office. But he was not lying when he made that promise. His policies, and above all his appointments to key offices in the White House, the Justice Department, Health and Human Services, and elsewhere make clear that his strategy will be to enact the provisions of FOCA step by step, rather than as a package. As anyone occupying the role of David Axelrod or Karl Rove will tell you, this is obviously the politically astute way for the President to prosecute his agenda. The country does not accept President Obama’s extreme position on abortion. A recent poll showed that a majority of Americans now regard themselves as pro-life, and a majority favors significant legal restrictions on abortion. Plainly the President’s actual views are far more favorable to abortion than those of the general public; so if he is to advance his goals, and the goals of those who share his commitment to making abortion more widely available and easily accessible, the last thing it would make sense to do is try to enact FOCA as a package.

At Notre Dame, the President offered to work with pro-lifers to draft what he called “sensible” conscience protections for pro-life physicians and other health care workers. This favorably impressed some in the pro-life community, especially since one of President Obama’s first acts was to rescind conscience protection regulations supported by the pro-life community that had been put into place by the Bush Administration’s Department of Health and Human Services. Here, alas, I must urge caution. It seems to me overwhelmingly likely that the key word in the President’s offer is “sensible.” What is “sensible” to him, I predict, is precisely what is regarded as sensible by the Committee on Ethics of the American College of Obstetricians and Gynecologists, namely, requiring physicians to refer for abortions, even if their consciences forbid it, and allowing pro-life obstetricians and gynecologists to refuse to perform abortions only when it is clear that an abortion can be provided by a willing physician in the area. For physicians and surgeons who believe that abortion is unjust killing and a grave violation of human rights, this is not sensible. It is ominous. I beg the President’s pro-life supporters urgently to request from him a statement clarifying the meaning of “sensible” conscience protection. If it means weakening current laws, so doctors will be compelled to refer for abortions and in so-called emergencies even to perform abortions, then even here pro-life citizens have no common ground with the President of the United States.

Finally, let me say a word about a matter that has been of deep concern to me—the expansion of federal funding for embryo-destructive research. I regret that the President passed up a golden opportunity to establish true common ground with pro-life citizens. He could have left the funding of research involving cell lines created by the destruction of human embryos in place, and led the charge to promote ethically unproblematic non-embryo-destructive forms of stem cell science. He could have rallied the nation around adult stem cell science and brilliant new technologies for the production of pluripotent stem cells that manifest the very qualities that make embryonic stem cells interesting and potentially useful. He could have shown that we can give both sides in the great stem cell debate what they want—the promise of stem cell science, without the moral stain of embryo killing. But the President did not do that. He revoked the restrictions on funding research involving embryonic stem cell lines created after August 9, 2001. He even took the additional step of revoking President Bush’s 2007 executive order promoting research to advance non-embryo-destructive sources of pluripotent stem cells. Finally, he opened the door to funding research involving stem cell lines created by producing human embryos by somatic cell nuclear transfer or other means specifically for research in which they are killed. He delegated the details of any new guidelines to the National Institutes for Health. The NIH, under Acting Director Raynard Kington, a Bush-administration holdover, recently published its draft guidelines, which mercifully decline to walk through the door the President opened. For now, at least, there will be no funding of research involving embryos created just for destruction. If the President’s pro-life supporters are partially responsible for this piece of good news, they deserve our sincere thanks, and I here heartily offer mine. The NIH guidelines also include strong consent rules for parents. Already the supporters of embryo-destructive research and so-called “therapeutic cloning” are pressing the NIH to reverse course in both these areas. For that reason, I plead with all who believe in respect for human life, and especially those whose support of the President politically has given them influence with him and his administration, to work tirelessly to ensure that there is no further expansion of funding for embryo-destructive research or weakening of current consent requirements.

The common ground I am interested in is with pro-life Americans who, like Professor Kmiec, have supported the President politically. The election is over, and the current question is not who anyone thinks will do the best job as President, or even whether one may legitimately support candidates who deny the fundamental dignity and right to life of unborn human beings and who promise to protect and extend the abortion license and expand the funding of embryo-destructive research. The question is: On which issues will we support the President’s direction, and on which will we challenge him because he is heading in the wrong direction? Those pro-life Americans who voted for him and support him should not object when we speak for the most vulnerable and defenseless of our fellow human beings, even when that means severely criticizing the President’s policies. They should stand with us on common ground, and join their voices with ours.

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Robert George is a professor of jurisprudence at Princeton University.

Professor George is a member of the President's Council on Bioethics and of UNESCO's World Commission on the Ethics of Scientific Knowledge and Technology. He sits on the editorial board of Public Discourse. This article is based on the text of remarks given at a debate between Robert P. George and Douglas W. Kmiec at the National Press Club on May 28, 2009.

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Why I Hate Hate Crimes by Dillon Burroughs


I don't usually use the word "hate." But it's hard to talk about hate crimes without using the word. So I freely admit: I hate hate crimes.

"What is a hate crime?" you ask. Hate crime is a potential piece of legislation that would make certain speech punishable by law. In other words, if I made a comment about Muslims or Native Americans or Homosexuals that someone considered offensive, I could be fined, arrested, or even jailed.

This could be applied to conversations, but typically is used in public communications, which even includes sermons by ministers. In other words, a pastor could say a person who is a Buddhist will go to hell when he or she dies and later be arrested for it.

"Aren't you blowing this out of proportion?" you may be thinking. Consider this: In Canada, where hate crime law is already in place, a pastor said some words about Muslims that some Muslims didn't like. They took it to the law and the pastor was sentenced (yes, "sentenced") to 300 hours of community service in a local Muslim community.

In other Western nations were hate crime laws are in effect, there have been cases where ministers have called homosexuality a sinful practice and have been sued. This could even be applied to speaking out on issues such as premarital sex being sinful for Christians to practice or speaking out on a biblical view of divorce or church leadership standards.

America cherishes free speech. However, there are ratings on movies and video games for a reason. Americans can say what they want, but I can't yell "Fire!" in a theater or "Bomb!" in an airport without getting into trouble. However, both free speech and religious freedom is in trouble if people of a particular religious persuasion (Christian or otherwise) cannot say what their religious teachings teach during their assemblies.

Why am I talking about this now? Because as new political leaders take office in 2009, hate crime bills will once again be in discussion. It will be pitched as helping end racism and discrimination, issues I do care deeply about (and you probably do, too).

However, hate crime law will end up hurting religious free speech. I want anyone who cares about religious freedom to know NOW so we can help people understand this issue when it hits FOX and CNN in a few months.

So when hate crimes start coming up in conversation or on the news, tell people you hate hate crimes.

Why? I tell people it's because I love Jesus and want to be able to tell other people what His favorite book says about life. But even non-Christians can often agree that they don't want a law telling them they can't comment on controversial areas of life.


http://readdb.blogspot.com/2008/11/why-i-hate-hate-crimes.html

IMPLICATIONS:

-The John Ankerberg Show recently aired a series on Islam and Jihad. If this is rebroadast after a hate crimes bill is approved, who knows what would happen?

-What would happen when I speak on Wicca and communicate that Wiccans (and anyone of any other religion) who refuse to trust in Christ by faith will spend eternity in hell?

-What will happen if I claim that homosexuality is condemned as a sinful practice in the Bible and that Christians are called to live with a higher standard that includes sexuality expressed only between a husband and a wife?

-What will happen if I (or any other Christian) claims that Jesus is the only way to God?

-What happens when American religious liberty clashes with moral issues of the Bible?

I'm not completely sure, but if current legislation continues, we'll soon find out.
I am not ashamed of the gospel,
because it is the power of God
for the salvation
of everyone
who believes."
-Romans 1:16



And that's why I hate hate crimes. My name is Dillon Burroughs and I approve this message.

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Test Anxiety What the banks still won't tell us. Noam Scheiber, The New Republic

 

Ben Bernanke. Credit: AFP Photo/Paul J. Richards/Newscom

A few days after the stress-test results hit Wall Street last week, Fed chairman Ben Bernanke took to a podium in Jekyll Island, Georgia, to share his thoughts on the much-hyped exercise. The chairman went deep into the weeds on how 150 government examiners spent ten weeks scrubbing the balance sheets of the country's largest banks. He pronounced the findings firmly in the mainstream of independent studies, with copious citations to bolster his case. Then, when he was done, Bernanke tried to place the stress tests in a broader context. "A principal goal of the capital assessment process is to help increase confidence in the banking system. ... Whether the objectives of the assessment program were achieved will only be known over time," he said. "We hope that, in two or three years, we will be able to reflect on the banking system's return to health."

Bernanke is exactly right: The stress tests are a key inflection point in the story of the financial crisis. If, in two or three years, the banks have fully recovered, we'll look back on the stress tests as the moment Bernanke and his colleagues righted the course. But if, in three years, the banks are still muddling along--or, worse, if they've badly regressed--we may wonder whether the government missed an opportunity to wake the banks from a deep denial about losses.

To the extent a banker can feel relief in the middle of a financial crisis, that's the emotion that reigned on Wall Street in the aftermath of the stress tests. The government found that the country's 19 largest banks together needed a mere $75 billion in capital to cushion themselves against a near-doomsday scenario--a combination of shrinking GDP, high unemployment, and slumping housing prices the government deemed only ten to 15 percent likely. If necessary, the banks could procure much of that $75 billion simply by converting the preferred shares they awarded the government (similar to a loan in that a company has to pay a periodic interest rate to holders of the shares) into common stock (that is, an ownership stake). But, in most cases, even this won't be necessary. Thanks to a rising stock market, even the most stressed-out banks have had little trouble raising money from private investors--something that seemed impossible only weeks ago. The day after the government told Wells Fargo it had to raise $13.7 billion, it turned around and raised $8.6 billion in a new stock offering. (Some of The New Republic's investors may have positions in certain banks.)

The concern is that, while the government's numbers are defensible, there are simply hundreds of ways the stress tests could be off the mark. One easy-to-see example is the subset of securities--like mortgage-backed securities--the banks acquired for investment purposes and plan to hold for years. The 19 major banks have portfolios of such securities collectively worth hundreds of billions of dollars--many of which are now trading at deep discounts--and yet the stress test only anticipated about $35 billion worth of losses in this category. It's not hard to imagine the losses being much higher--if, for example, the mortgages backing certain securities go into default.

Actually, you don't need to imagine. MetLife, an insurer that officially became a bank holding company in 2001, has a portfolio of debt securities it values at about $188 billion. By its own accounting, if MetLife were to try to sell those securities today, it would have to sell them at a loss of about $29 billion. But, because MetLife deems the securities only temporarily depressed, and because it plans to keep them far into the future, MetLife doesn't "realize" the losses. Or, as MetLife's 2008 annual report elegantly put it, "[Based on] the Company's current intent and ability to hold [the securities] ... for a period of time sufficient for them to recover, the Company has concluded that these securities are not other-than-temporarily impaired."

As it happens, there's another insurance company that's heavily invested in debt securities hit hard by last fall's financial meltdown: AIG. And, unlike MetLife, the accountants at AIG's life insurance division looked over its $263 billion portfolio and concluded that some $39 billion was a lost cause. In fact, the language AIG uses to discuss the same issues in its annual report is strikingly at odds with MetLife's: "Notwithstanding AIG's intent and ability to hold such securities until they have recovered ... AIG concluded that it could not reasonably assert that the impairment would be temporary."

To be fair, the government was far more conservative than MetLife in its stress-test accounting: It estimated in the neighborhood of $8 billion in losses for these securities. Likewise, it's entirely possible that the particular contents of MetLife's portfolio differ significantly from AIG's--the government had access to "granular" information you and I do not. The point isn't to bash MetLife or the government's auditors. Just to point out that a stress test of this scope is incredibly subjective and each judgment call can have enormous consequences.

Bernanke is right, though: Even with these judgment calls, the government's numbers are broadly consistent with credible independent reports. Overall, the government estimated that the 19 major banks would suffer roughly $600 billion in cumulative losses under its stress-test scenario this year and next with earnings of about $363 billion. The IMF predicts that the entire U.S. banking system will suffer about $550 billion in cumulative losses while earning $300 billion. (This translates loosely to $367 billion and $200 billion for the stress-tested banks, which account for about two-thirds of the banking system.) Yes, the government insists its estimate is far more pessimistic than what is likely to occur, while the IMF touts its forecast as a reasonable expectation of the future. But, once you dispense with the no-longer-plausible idea that the stress tests posit a truly remote scenario, the two sets of numbers match up pretty well. (Most economic forecasts now fall somewhere between the governments' expected "baseline" scenario and the stress-test scenario.)

The problem isn't that the government won't acknowledge the size of banks' losses--the stress tests more or less do that. The real problem is that the banks won't fully acknowledge their losses. One of the more elusive concepts in all of accounting is an exercise known as reserving. When a bank receives, say, interest payments on a loan, not all of that revenue is profit. Some of it must be set aside to cover the possibility that the loan could go bad--what's known as a loss reserve. The relevant accounting rule says banks must set aside reserves for any "probable" losses over the intermediate-term (usually a year). Though there is some debate among accountants over what probable means--some say a better-than-even-chance, others say 70 to 80 percent likely--it is hard to conclude that the banks are adequately reserved.

One way the Fed tracks this is by looking at the ratio of reserves to actual losses. Because reserves are forward-looking (losses you anticipate over the next year) and actual losses are backward-looking (losses you've already suffered), it's not hard to see why this ratio should have risen after last fall's financial crisis: The crisis meant there would be big future losses, as people increasingly defaulted on their loans (hence the need for heavy reserves), but not necessarily a lot of losses initially (since many of those defaults hadn't happened just yet). In fact, the ratio of reserves to losses has been basically flat or falling for the four biggest banks over the last several quarters. (The four banks declined to comment. Their public filings say they believe they're reserving adequately, while conceding that the exercise is subjective.)

A more direct way to see this is to inspect the losses the banks implicitly expect. In their annual filings, banks are required to attach a "fair value" to their loan portfolio (essentially a market price), which is different from the value the banks claim on their books. As Christian Leuz, an accounting professor at the University of Chicago, notes, subtracting this "fair value" from the "book value" gives a rough estimate for the losses a bank would suffer if it had to liquidate its portfolio immediately--which comes to about $196 billion for the country's four largest banks (assuming my math is right). This should be a very pessimistic number, since a bank can always make more money by hanging on to some of its loans, which banks often do. But, pessimistic as it is, it's far, far smaller than the government's estimate for these banks' loan losses under its stress-test scenario--about $345 billion.

Bank self-delusion about losses is an old story--and a potentially alarming one. In 1991, the General Accounting Office (GAO) conducted a kind of autopsy on 39 banks that had failed in the late '80s. One of the figures the GAO studied was the difference between the loss reserves the banks had set aside six months before failing and the loss reserves regulators deemed necessary once they had a chance to inspect their books upon failure. The difference was staggering: $2.1 billion versus $9.4 billion--an increase of roughly four-and-a-half times. The banks' blissful (or perhaps willful) obliviousness to potential losses had stuck taxpayers with an enormous tab. "Banks do not crash overnight and there should have been some warning of the huge losses that had to be taken and, for the most part, absorbed by [the government]," the report groused.

Fortunately, thanks to the stress tests, the banks are being forced to raise capital to absorb potential losses whether or not they acknowledge them. But, even so, one can't feel too comfortable with a situation in which banks systematically lowball the numbers that determine whether they survive or collapse. For all its heroic digging, after all, the government only had 150 examiners spread out across 19 massive banks for ten weeks. The banks, by contrast, collectively have thousands of accountants and auditors at their disposal. There's no way the government could completely overcome this information disadvantage, even if it had had double the number of people spending double the amount of time. At a certain point, we have to rely on the banks own assessment of their financial situation. And that's when things get a little scary.

In April, Neil Barofsky, the special inspector general for the government's bank bailout, said his office was looking into whether certain banks committed fraud last fall to demonstrate that they were fundamentally sound--a precondition for receiving bailout money. "I hope we don't find a single bank that's cooked their books to try to get money but I don't think that's going to be the case," Barofsky told the Financial Times. Raise your hand if you disagree.

Noam Scheiber is a senior editor at The New Republic.

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"If You Build It, They Will Come" Ecclesiology Michael Craven


Author, Speaker, Founding Director of the Center for Christ & Culture


In our ongoing analysis of The Coming Evangelical Collapse we must inevitably examine what I call the “new ecclesiology” or doctrine of the church. I say new because there has been a shift in how we understand and define the church, so much so that the institution itself is being redesigned and much of its life reoriented.

Michael Spencer argues: “There are three kinds of evangelical churches today: consumer-driven megachurches, dying churches, and new churches whose future is fragile.”  For the purpose of clarification, the term megachurch refers to any Protestant congregation with a sustained average weekly attendance of 2000 persons or more in its worship services. This is not the type being addressed here. Simply being large is not necessarily bad. I know of many theologically orthodox, missional-minded churches that meet this criteria. Instead I am emphasizing the point made by Spencer: “consumer-driven megachurches,” which is more about philosophy, affecting churches both large and small. 

For many evangelicals, the consumer-driven megachurch has come to define success and thus this model, according to Spencer, remains most likely to survive the post-Christian era. I am not (nor is he) suggesting that these churches will survive because they are better or even that they should. Rather, these churches may stand a greater chance of survival because they tend to be insular, subcultural, and most accommodating to the culture. As Spencer noted, these churches are more “pragmatic, therapeutic, [and] church-growth oriented,” churches whose emphases have “shift[ed] from doctrine to relevance, motivation, and personal success.” Such churches are unlikely to offend, much less challenge, the post-Christian culture. In short, the culture is unlikely to be concerned with such churches. To those outside the church, they just don’t matter.

The premise of the consumer-driven megachurch is rooted in the idea that you if you build it they (the lost) will come, meaning: make the institution as attractive as possible. Don’t get heavy on doctrine and theology, emphasize “visitor experience,” maximize programs and services, Xbox and Playstation for the youth, weight rooms, yoga classes, restaurants, and, of course, you must have a Starbucks. Megachurches appear to be competing for “consumers” by offering the most amenities. Visit such a church and you will quickly pick up on the proprietary pride felt by its members, “our church has…”, “our church is…”, and so on. Such statements tend to be more about the institution rather than the work and person of Christ. Outside the Sunday gathering of the church, you’re likely to encounter a boastfulness subtly conveying the idea that “our church is better than your church.”

Driven in large part by the belief that mere church activity produces spiritual growth, the consumer-driven model—aka seeker-sensitive—tends toward the maxim: just get ’em in the door! Willow Creek admitted to this strategy in their 2007 Reveal survey results and concluded what should have been obvious: it does not work. Whether or not their humble discovery has been received and acted upon by those caught up in the church-growth movement remains to be seen.

The new ecclesiastical premise is that the worshipping congregation exists for the lost, the person not actually in the church. Build a building, strategically located (based on the latest demographic trends/data), make it nice, and hope they come. Given this new target audience, we then make some compromises. The sermon can’t focus on doctrine and theology; that might be confusing to visitors. So we jettison expository preaching—aimed at equipping the saints—for topical preaching addressing felt needs. This changes as the felt needs change and the Body never gets anything more than lowfat milk! (Recall the data demonstrating the staggering theological illiteracy in America).

Given the massive numbers of people that this model attracts, there is the practical requirement for countless volunteers just to manage operations. Add to this the need for hundreds of Bible study leaders, Sunday school teachers, and children’s workers, and standards begin to drop in order to fill practical needs. Business models and strategies are emphasized over and against theological depth. I have sat in such churches, attended Bible study classes only to be shocked by the ignorance of those teaching. Many are completely ignorant of church history and the most basic theological terms and concepts and those responsible for providing oversight and guidance are mostly unaware of what is missing. It is often the blind leading the blind.

Don’t misunderstand me, I’m not saying the lost are prohibited from participating in Christian worship—certainly not. As a famous twentieth-century theologian, rightly expressed this, “The church exists by mission as fire exists by burning.” The problem here is one of seriously misplaced emphasis. The church is the body of Christ. The body of Christ is called to be distinct from the world, being those who have been made “alive together with Christ“ (Eph. 2:5; emphasis mine), “fellow saints and members of the household of God” (Eph. 2:19). And to this body, Christ gave “pastors and teachers to equip the saints for the work of ministry, for the building up of the body of Christ, until we attain to the unity of the faith and of knowledge of the Son of God, to mature manhood … so that we may no longer be children, tossed to and fro … and carried about by every wind of doctrine, by human cunning, by craftiness in deceitful schemes.” Making “the body grow … so that it builds itself up in love” (Eph. 4:11–16).

Paul later contrasts this body with those who walk “in the futility of their minds … darkened in their understanding, alienated from the life of God” (Eph. 4:17–18). Clearly, the New Testament emphasizes that the church is a distinct people who are called together by God through grace for worship, fellowship, to be trained for the “work of ministry,” and then sent by Jesus “into the world” (John 17:18) so that the world may know God and his great love for them that was demonstrated on the cross (see John 17:21–23). We do not await the lost to come to us; we are sent to them and for this work, the Scriptures emphasize preparation. That is the work of the institutionalized church; the church exists for equipping the people of God for the mission of God, the administration of the sacraments, and ultimately the worship of the triune God by those who have experienced his saving grace.

Might this biblical understanding of the church better serve the purpose of reaching the world for Christ? Let’s stop watering down the Word, begin equipping the saints, “sanctified in the truth,” and go into the world. Rather than men building institutions in hopes that they come, let Christ build his church and obey his command to go to them.

© 2009 by S. Michael Craven

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I FEEL YOUR PAIN. NOT THEIRS. YOURS. by Ann Coulter

God save us from liberal "empathy." After President Barack Obama announced his empathetic Supreme Court nominee this week, Judge Sonia Sotomayor, we found out that some people are more deserving of empathy than others.

For example, Judge Sotomayor apparently "empathized" more with New Haven, Conn., government officials than with white and Hispanic firefighters who were denied promotions by the city on the basis of their race.

Let's hope she's as empathetic to New Haven residents who die in fires fought by inferior firefighters as a result of her decision.

In the now-famous firefighters' case, Ricci v. DeStefano, the New Haven Fire Department administered a civil service exam to choose a new batch of lieutenants and captains. The city went so far as to hire an outside consultant to design the test in order to ensure that it was job-related and not racially biased. (You know, just like all written tests were pre-screened for racial bias back when we were in school.)

But when the results came in, only whites and Hispanics scored high enough to earn promotions.

Such results never entice Democrats to reconsider their undying devotion to the teachers' unions that routinely produce students who can't read, write or do basic math. Obviously, disadvantaged children from single-parent homes suffer the most from inadequate public schools -- and their tragic outcome bedevils the entire society for the rest of the students' lives.

Instead, Democrats hide the failure of government schools by punishing the high-scoring whites, Asians and Hispanics, who presumably learned everything they know at home. (If only successfully applying a condom were relevant to firefighting, public school graduates raised in single-parent homes would crush the home-learners!)

So naturally, New Haven city officials decided to scrap the exam results and promote no one.

Seventeen of the high-scoring whites and one high-scoring Hispanic sued the mayor, John DeStefano, and other city officials for denying them promotions solely because of their race.

The district court ruled that there was no race discrimination because the low-scoring blacks were not given promotions either -- citing the landmark case, One Bad Apple v. The Rest of the Barrel. (That's the sort of sophistry we're taught in law school.)

Concerned that Sotomayor's famed "empathy" might not shine through in cases such as Ricci v. DeStefano, the Democrats are claiming -- as Obama spokesman Robert Gibbs said on MSNBC -- that she was merely applying "precedent" to decide the case. You know, just like conservatives say judges should.

This was an interesting claim, in the sense that it was the exact polar opposite of the truth.

To be sure, there is "precedent" for racial discrimination by the government, but Plessy v. Ferguson was overturned in 1954 by Brown v. Board of Education. If Sotomayor had another case in mind, she wasn't telling: The lower court's dismissal of the firefighters' case was upheld by Sotomayor and two other judges in an unsigned, unpublished opinion, titled, "Talk to the Hand."

Not only that, but Sotomayor's fellow Clinton appointee, Jose Cabranes (who sounds like an "empathetic" fellow), issued a blistering dissent from the appellate court's denial of a rehearing specifically on the grounds that the case "raises important questions of first impression in our Circuit -- and indeed, in the nation."

A "case of first impression" means there's no precedent. If there were a precedent, it would be a case of, at least, "second impression."

If it were merely "empathy" that explained liberal judges' lawless opinions, one might expect some liberal judges to have empathy for the white and Hispanic firefighters being discriminated against today, and others to have empathy for the hypothetical black firefighters discriminated against in times past.

But all liberals only have empathy for the exact same victims -- always the ones that are represented by powerful liberal interest groups. As Joe Sobran says, it takes a lot of clout to be a victim.

Thus, the media and Democrats seem to find successful Hispanic attorney Sotomayor much more "empathetic" than successful Hispanic attorney Miguel Estrada.

After aggressively blocking Estrada's nomination to a federal appeals court during Bush's first term solely on the grounds that he is Hispanic and was likely headed for the Supreme Court -- according to Senate Democrat staff memos -- now Democrats have the audacity to rave that Sotomayor will be the first Hispanic Supreme Court justice!

If Sotomayor is not more empathetic than Estrada, liberals at least consider her more Hispanic -- an interesting conclusion inasmuch as Sotomayor was born in New York and Estrada was born in Honduras.

Forty-four of 48 Senate Democrats voted to filibuster Estrada's nomination to the D.C. Circuit Court of Appeals, with congressman and professional Hispanic Raul Grijalva assuring them that just because "he happens to be named 'Estrada' does not give him a free ride."

The truth is liberals couldn't care less about Sotomayor being Hispanic. Indeed, liberals often have trouble telling Hispanic people apart, as James Carville illustrated on "Good Morning America" Wednesday morning when he kept confusing Miguel Estrada with Alberto Gonzales.

"Empathy," in Liberalspeak, is nothing but raw political power.

COPYRIGHT 2009 ANN COULTER
DISTRIBUTED BY UNIVERSAL PRESS SYNDICATE
1130 Walnut, Kansas City, MO 64106

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Government for the Good of the People: Ten Questions about Freedom, Virtue, and the Role of Government

Today's political debates are often muddied by misconceptions of the role of government and its responsibility to American citizens. What are the limits of good government? How can the virtues necessary for freedom flourish? Sustaining ordered liberty depends on good answers to these questions. 

1. What should government do?

Government plays an indispensable role in a healthy community, but this does not mean that everything a community needs to be healthy is government's responsibility. Government expresses society's understanding of justice and enacts judgment in light of that understanding. Government's task is to articulate the rights and duties of citizens and protect them from threats. This is very different from the belief that government should create rights or exercise people's duties for them through programs that replace individual and community initiatives.

2. Does morality have anything to do with government?

The government, acting on behalf of the people, declares certain actions to be just and unjust. This is a moral distinction between right and wrong. Whenever government debates whether or not certain actions and institutions are lawful, it takes moral considerations into account. Put another way, by formulating and upholding laws, government encourages and expresses a society's fundamental moral principles.

3. What should limit government's authority?

"If angels were to govern men," wrote James Madison, "neither external nor internal controls on government would be necessary." But even if political authorities were angels, there would still be limits on what government should and should not do.

In this sense, government power is inherently limited by the role of other social institutions, such as families, religious congregations, schools, and businesses. The rightful authority of these institutions helps to check the authority of the state.

Government's formal authority is restrained by its primary purpose (see question #1). Government is supposed to protect the ability of individuals and social institutions to exercise legitimate authority within their own particular areas of influence without unjust interference from other institutions. If the government is supposed to protect this freedom for citizens, its power to intrude must be subject to clearly defined limits. Such limits are defined in the United States Constitution and individual state constitutions.

4. Does big government pose moral problems?

When government oversteps its bounds and begins to assume more authority, it weakens other important social institutions, including those, like the family and religious congregations, that are particularly capable of encouraging moral virtue among citizens. Big-government programs and policies also tend to confuse the lines between citizen responsibility and government responsibility. As a result, they erode our understanding of the ethical obligations we have to one another—especially in regard to issues such as poverty and economic justice—and encourage us to assume and to expect that government will provide for our neighbors' needs.

5. What is the relationship between freedom and virtue?

Freedom relies on virtue for its survival. Government protects ordered liberty, but it is virtuous citizens taking personal responsibility for their actions and exercising mutual responsibility for the welfare of others who make ordered liberty possible. As Benjamin Franklin declared, "Only a virtuous people are capable of freedom."

All political communities are held together by common civic bonds. As the motto of the United States—e pluribus unum,or "out of many, one"—implies, the bonds that unite the nation's many individual citizens into one people are of critical importance. These bonds often take the form of moral obligations that we owe to one another as members of the same community. To fulfill these obligations, citizens need to exercise certain virtues. A virtuous citizen is someone who is enabled by character to act in a way that promotes the common good within the community.

Americans tend to see freedom, prosperity, and security as necessary elements of the common good. The habits needed to achieve these ends include trust, cooperation, self-sacrifice, hard work, and a sense of responsibility for others. These are key virtues for members of the American community and essential to the preservation of ordered liberty.

6. If virtue is necessary for freedom, what institutions are best equipped to promote virtuous behavior?

America's founders recognized that local forms of association are the best way for citizens to fulfill their moral obligations to one another. They believed that families, religious congregations, and other institutions of civil society are most effective in uniting their members in cooperative pursuit of the common good and thereby cultivating the indispensable virtues that are the foundation of a healthy democracy.

The founders especially emphasized the role of religion in moral formation. The belief in a "God All Powerful wise and good," claimed James Madison, is "essential to the moral order of the world." George Washington declared that "reason and experience both forbid us to expect that National morality can prevail in exclusion of religious principle." Religious communities bind people vertically to God and horizontally to one another. These social bonds not only depend upon, but actually help to generate, trust, cooperation, respect for authority, self-sacrifice, and a shared pursuit of and participation in the common good.

The family is also crucial to the cultivation of virtue and moral sense. In the family, continual character training and moral authority are exercised by those who love and desire the best for each member.

In addition, sports teams, orchestras, schools, professional guilds, neighborhoods, theatre troupes, and other voluntary associations can function as local communities that cultivate moral development in similar ways. On a basketball team, for example, players learn what it means to trust others, work together, train hard, respect authority, identify and coordinate different personal skills, accommodate the errors of others, and rely on others to accommodate their own errors. Team members are trained not to consider just themselves, but to act in the best interest of the whole team.

7. How does big government weaken smaller, virtue-producing communities?

As government claims responsibility for more tasks, it absorbs the allegiance that citizens once placed in other relationships and forms of association. When the federal government assumes more responsibility for fulfilling the moral obligations among citizens, it tends to undermine the perceived significance and authority of local institutions and communities.

This encourages citizens, instead of looking to their families, churches, or local communities for guidance and assistance, to depend on the government for education, welfare, and various other services. As individuals begin to look more consistently to the government for support, the institutions that are able to generate virtues like trust and responsibility begin to lose their sway in the community. Excessive bureaucratic centralization thus sets in motion a dangerous cycle of dependence and social decay.

8. Does government have a role in the moral formation of its citizens?

Smaller institutions can encourage virtue among their members because of the strong social bonds and personal contact they share, but government is more dependent on fear of punishment to motivate good behavior. Government can promote political goods such as justice and equality and can contribute to habits such as self-restraint and moderation. However, it is not as equipped as other institutions to cultivate the virtues necessary for many other important ends. As Martin Luther King, Jr., explained, laws can restrain the heartless; they cannot change the heart.

But while government is not equipped to cultivate some virtues in citizens, it does have a role to play in their moral formation: It articulates a sense of justice, impartial judgment, and equality before the law. Government also protects those institutions that, through their strong social bonds and personal contact, are equipped to encourage other virtues among citizens. By protecting virtue-forming institutions such as the family or religious congregations against unjust interference from other institutions—including the state—government can influence the cultivation of virtue and the strength of social bonds. Government officials should work to provide the social and legal conditions that help local associations to exercise the authority that rightly belongs to them.

9. How does government influence public opinion and values?

Government actions subtly shape how citizens think, speak, and act, thereby influencing where we tend to place our trust, hope, and expectations.

The authority to enforce laws carries certain implicit powers: the power to promote certain causes, prioritize certain risks, endorse certain values and beliefs, uphold certain standards, encourage certain expectations, and define and interpret certain terms. For example, government policy dictates that American taxpayers must contribute to Social Security, and that shapes how we think about addressing need in our society (regardless of one's opinion of the current Social Security program).

Government also has the power to influence our expectations and outlook on important social questions, such as where to seek assistance for material needs (the welfare state); whom to blame in times of crisis (FEMA, the President, the Federal Reserve); and what people are entitled to by right (privacy, cheap prescription drugs, same-sex marriage).

The powers to pass laws and collect taxes therefore entail the power to set social priorities and to define, to some extent, the terms of public understanding, involvement, and debate.

10. How much should we trust government?

We should be able to trust our government to perform its appropriate tasks of promoting justice and punishing injustice. Without this protection, communities would not be as free to strengthen social bonds, encourage pursuit of the common good, or cultivate virtue. Therefore, the government deserves a certain degree of trust, hope, and loyalty. But a healthy democracy is one in which citizens give government only the loyalty it deserves without diminishing their trust in or allegiance to other institutions and authorities.

Cultural allegiances to family, church, and local associations are some of "the most powerful resources of democracy," according to Robert Nisbet. By not placing complete trust in the government, citizens can help to prevent any one institution from becoming too powerful. For this reason, the diversification of authority and allegiance among various social institutions actually strengthens democracy.

Conclusion
The power of government carries significant moral implications. The amount of responsibility yielded to or claimed by government can shape attitudes, motivations, expectations, and even the terms of public debate.

Government can also influence the cultivation of character and the strength of social bonds by protecting institutions that help to encourage virtue in society, such as the family or religious congregations, against unjust interference from other institutions, including the state. In other words, there is a strong moral case to be made for limited government authority.

Ryan Messmore is William E. Simon Fellow in Religion and a Free Society in the Richard and Helen DeVos Center for Religion and Civil Society at The Heritage Foundation.

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Liberals Declare America Liberal by Chris Good

First there was the Republican National Committee proposal to re-label the Democratic Party the "Democrat Socialist Party"; now Campaign for America's Future and Media Matters have declared America "a center-left nation," releasing an 18-page report that cites polls on Americans' opinions on health care, taxes, abortion, and gay marriage.

Their point is that it's erroneous to claim that America is conservative, or center-right, as a few in the media have following the 2008 election--given that Barack Obama won on a relatively liberal platform, and Democrats have crushed the GOP in the last two election cycles. If Republicans want to call Obama a liberal, that's fine: he is, and America agrees with him.

Particularly on gay marriage, which has gained a lot of ground this year as more states have approved it, CAF and Media Matters make a strong point: one reason it's been said that America is conservative, relative to other nations, is its social tendencies. But growing support for gay marriage has marked a shift on that front.

Polling data, however, show most Americans still opposed to gay marriage. The CAF/Media Matters report cites 61 percent support for gay marriage or civil unions.

After looking at some of the poll-question wordings, it's not surprising that people answered the way they did: for instance, "Would you like to see major corporations have more influence in this nation, less influence, or keep their influence as it is now?" (Even if you're conservative, do you necessarily want major corporations to have "more influence"?)

The report finds that Americans don't mind big government, especially when it comes to health care. The idea that government can do more to ensure access to health care has long been a major underpinning of Obama's health care platform, and a Gallup poll this year found that 54 percent to 41 percent think it's government's responsibility to make sure all Americans have healthcare coverage. (It should be noted, however, that 54 percent is a low point for the past eight years.)

Unintentionally, the report leads us to a question: even if America is center-left, do Americans identify themselves as such? And, if they don't, will calling Obama and Democrats "liberal" have much of an impact?

The last election showed that it doesn't have much of one. As CAF/Media Matters points out, the GOP spent much of the '08 campaign labeling Obama as "the most liberal senator"--and look how that turned out.

The GOP's labeling game is about convincing the nation that Obama and his party are out of sync with national sentiment; CAF and Media Matters want to convince us that the nation is farther left than the GOP thinks, and that Obama is a liberal zeitgeist.

Taking the RNC proposal into account, we can now safely ask: if the Democratic Party is socialist, and it enjoys widespread support, does that mean the nation is not just center-left, but socialist in its own right?

Perhaps Obama should run to his left.

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A Failure of Capitalism - The Aftershock Threat Richard A. Posner

One of the reasons, as I explained in my book, for calling our economic crisis a  "depression" is that, as was already clear on February 2, when the book was completed, the government was spending trillions of dollars--on top of all the normal expenses of government--to try to arrest the downward spiral and speed recovery. Since then, the expenditures, commitments, and guarantees--all of which represent costs, actual or expected, though many or even most of them will eventually be avoided or recovered--have increased further, and concern has begun to be expressed that the soundness of America's public finance and currency is being undermined by the growing mountain of public debt. The interest rate at which the government borrows to finance the public debt has been rising, and there is even talk, though surely premature, that the government may lose its triple A credit rating!

Remarks by the distinguished macroeconomist Paul Krugman, at a panel discussion of the economic situation published in the current New York Review of Books (June 11), help to bring the problem into focus.

Krugman has been trying for some time, without success, to correct a misunderstanding by the prominent historian (and author of an excellent recent book on the history of banking) Niall Ferguson. Ferguson, who was also on the panel, argued as he has before that the monetary and the fiscal responses to a recession or depression--that is, reducing interest rates by expanding the supply of money, and increasing demand for goods and services by deficit financing of public works--operate at cross purposes. The cost of public works has to be financed by borrowing, and any increase in borrowing raises interest rates and therefore reduces the effectiveness of the monetary response.

Actually, as Krugman pointed out, the monetary and fiscal responses are complementary. The monetary response, we have learned, is inadequate, since, as I keep saying, you can lead a bank to money but you can't make it lend. Essentially the monetary response involves the Federal Reserve's increasing the balances in bank accounts, which increases the amount of money that banks are permitted to lend. But because many banks are still undercapitalized as a result of the collapse of the housing and associated mortgage-credit bubble, because loans in a depression are especially risky, and because the demand for loans is way down since production is down and consumers feel overindebted and so want to save rather than borrow, most of the newly created money is piling up in bank accounts and other safe savings havens rather than being spent.

Moreover, the lower interest rates are, the more difficult it is to persuade the hoarders of cash and cash equivalents to invest their money productively. We want interest rates to be low, to induce borrowing and lending, which increase economic activity. But we don't want then to be so low that there is insufficient inducement for the hoarders to part with their cash. Cash that is hoarded is inert; it does not contribute to economic activity; and so hoarding exacerbates a depression.

The role of fiscal policy, in the form of Keynesian deficit spending on public works (though that is only part of the $787 stimulus program enacted by Congress, the rest being tax reductions and benefits enhancements, which unfortunately are less effective means of fighting a depression because their effect on employment is indirect), is to make up the shortfall in private demand for goods and services by increasing the public demand for them. Construction workers laid off because of the fall in the demand for new residential and commercial buildings can be hired to build public buildings. The result is to reduce unemployment, thus increasing incomes, and increase confidence by other workers that they will not be laid off; and increased incomes and increased confidence in one's economic prospects reduce the propensity to hoard. The net cost to the government should be lower than the aggregate outlay, moreover, because an increase in employment increases income tax revenues and reduces unemployment benefits.

But assuming that there is a net cost to the program, Ferguson is right that the government will borrow more, and that this will raise interest rates--but probably only slightly. For as Krugman points out, the fall in private demand has been matched (not dollar for dollar, however) by a rise in savings, included hoarded cash. The personal savings rate has risen in the last year from 1 percent to more than 4 percent. To quote Krugman, "that saving ought to be translated into investment, but the investment demand is not there." Deficit spending on public works is a way of using the pool of savings to increase investment and therefore employment. "Keynesian policy...takes excess desired savings and translates them into some kind of spending. If the private sector won't do it, the government will."

The relation between savings and (productive) investment can be seen most clearly by imagining that the government decided to finance the public works program by selling "Victory [over Depression]" bonds to the general public. Because the bonds would be safe (the risk of the United States' defaulting on its obligations is effectively zero), most of the hoarders would be quick to buy them in lieu of holding cash that carries no interest at all; and so the government would not have to pay a high rate of interest on the bonds to be able to sell them. The government isn't financing the public works program in this way, but the economic substance may be very similar. If a money-market fund in which a person has placed some of his savings buys government securities to be able to pay interest on its money-market accounts, the person is indirectly financing the government.

It is not clear that Ferguson would disagree. For from one of his remarks at the panel discussion it appears that his real concern is not with the impact of the stimulus program on interest rates but with the cumulative effect of all current and planned federal expenditures on the long-term solvency of the U.S. government, including expenditures financed by the creation of money by the Federal Reserve. (When the Federal Reserve buys Treasury securities, this does not reduce federal debt, but merely transfers it from one government agency to another.) That is a legitimate concern, but it does not prove that the stimulus program is unwise. The longer and deeper the depression, the larger will be the federal deficit; so if the stimulus program makes the depression shorter and shallower, it may not increase and in fact may reduce the total public debt.

Krugman is an advocate of universal health care and of other costly social programs, and he argues in the panel discussion that the depression has underscored "the importance of a strong social safety net," such as Europeans have. Their generous safety net has reduced the human costs of the depression to them "because Europeans don't lost their health care when they lose their jobs. They don't find themselves with essentially no support once their trivial unemployment check has fallen off. We have nothing underneath. When Americans lose their jobs, they fall into the abyss." But safety nets are costly, and, Krugman continues,"there are people who say we should not be worrying about things like universal health care in the crisis, we need to solve the crisis. But this is exactly the time when the importance of having a decent social safety net is driven home to everybody, which makes it a very good time to actually move ahead on these other things."

So he is saying that the time is ripe in a political sense for a basic change in the management of the American economy. He may be right. For one effect of a European-style safety-net economy is to reduce the amplitude of the swings that we call the business cycle, and at the moment that amplitude, the human costs of which are increased by the absence of a stroong safety net, is hurting many Americans. Because the European-style safety net raises labor costs, in part by making it difficult to lay off workers, unemployment is higher in Europe than in the United States in boom periods; employers are reluctant to hire if it will be difficult for them to lay off workers when the boom ends. But in the current world depression our unemployment rate is higher than the average European rate (after correction for differences attributable to different definitions of unemployment).

Even if the European approach is thought preferable to ours and compatible with our political and social culture, the costs of moving toward it in the present economic setting must be estimated and given their due weight. The costs are of two kinds. The first is increase that a costly and ambitious program of social reform must create in the uncertainty of the economic environment. As Keynes emphasized, uncertainty tends to dampen the "animal spirits" that drive economic activity, and to increase the incentive to hoard, which retards economic activity, as I have been emphasizing. Second, the costs of ambitious social reform, when added to the costs of the depression-recovery programs and the "normal" budget deficit exacerbated by the decline of tax revenues in a depression, may result in a potentially destabilizing level of public debt.

My own heretical view is that Americans are undertaxed, and so if I thought that the increase in the public debt was going to be financed by higher taxes I would not be upset. But Congress and the public seem adamant against tax increases, even when they take the form of closing ridiculous loopholes, and against spending reductions, even in ridiculous programs such as farm subsidies; and this combination of aversions makes it likely that increases in the public debt will be financed by a combination of continued borrowing, but at higher and higher interest rates, and inflation.

A bit of inflation can be a good thing in a depression, because it operates as a tax on cash balances and thus reduces hoarding and stimulates spending. But I am worrying about the inflation that hits after the depression, when the government decides that it can no longer finance the public debt by borrowing, cannot raise taxes, cannot cut spending, and is left with having to debase the currency. I would like to see greater efforts by the Administration and by the economics profession to determine, so far as may be possible to do, the gravity of this danger.

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The six biggest ways (we know about) that TARP scams taxpayers. By Andy Kroll


Bank bailout: The greatest swindle ever sold

Editor's note: This article has also appeared on TomDispatch.com.


|On Oct. 3, as the spreading economic meltdown threatened to topple financial behemoths like American International Group (AIG) and Bank of America and plunged global markets into free fall, the U.S. government responded with the largest bailout in American history. The Emergency Economic Stabilization Act of 2008, better known as the Troubled Asset Relief Program (TARP), authorized the use of $700 billion to stabilize the nation's failing financial systems and restore the flow of credit in the economy.

The legislation's guidelines for crafting the rescue plan were clear: The TARP should protect home values and consumer savings, help citizens keep their homes, and create jobs. Above all, with the government poised to invest hundreds of billions of taxpayer dollars in various financial institutions, the legislation urged the bailout's architects to maximize returns to the American people.

That $700 billion bailout has since grown into a more than $12 trillion commitment by the U.S. government and the Federal Reserve. About $1.1 trillion of that is taxpayer money -- the TARP money and an additional $400 billion rescue of mortgage companies Fannie Mae and Freddie Mac. The TARP now includes 12 separate programs, and recipients range from megabanks like Citigroup and JPMorgan Chase to automakers Chrysler and General Motors.

Seven months in, the bailout's impact is unclear. The Treasury Department has used the recent "stress test" results it applied to 19 of the nation's largest banks to suggest that the worst might be over; yet the International Monetary Fund as well as economists like New York University professor and economist Nouriel Roubini and New York Times columnist Paul Krugman predict greater losses in U.S. markets, rising unemployment, and generally tougher economic times ahead.

What cannot be disputed, however, is the financial bailout's biggest loser: the American taxpayer. The U.S. government, led by the Treasury Department, has done little, if anything, to maximize returns on its trillion-dollar, taxpayer-funded investment. So far, the bailout has favored rescued financial institutions by subsidizing their losses to the tune of $356 billion, shying away from much-needed management changes and -- with the exception of the automakers -- letting companies take taxpayer money without a coherent plan for how they might return to viability.

The bailout's perks have been no less favorable for private investors who are now picking over the economy's still-smoking rubble at the taxpayers' expense. The newer bailout programs rolled out by Treasury Secretary Timothy Geithner give private equity firms, hedge funds, and other private investors significant leverage to buy "toxic" or distressed assets, while leaving taxpayers stuck with the lion's share of the risk and potential losses.

Given the lack of transparency and accountability, don't expect taxpayers to be able to object too much. After all, remarkably little is known about how TARP recipients have used the government aid received. Nonetheless, recent government reports, congressional testimony, and commentaries offer those patient enough to pore over hundreds of pages of material glimpses of just how Wall Street-friendly the bailout actually is. Here, then, based on the most definitive data and analyses available, are six of the most blatant and alarming ways taxpayers have been scammed by the government's $1.1 trillion, publicly funded bailout.

1. By overpaying for its TARP investments, the Treasury Department provided bailout recipients with generous subsidies at the taxpayer's expense.

When the Treasury Department ditched its initial plan to buy up "toxic" assets and instead invest directly in financial institutions, then-Treasury Secretary Henry Paulson Jr. assured Americans that they'd get a fair deal. "This is an investment, not an expenditure, and there is no reason to expect this program will cost taxpayers anything," he said in October 2008.

Yet the Congressional Oversight Panel (COP), a five-person group tasked with ensuring that the Treasury Department acts in the public's best interest, concluded in its monthly report for February that the department had significantly overpaid by tens of billions of dollars for its investments. For the 10 largest TARP investments made in 2008, totaling $184.2 billion, Treasury received on average only $66 worth of assets for every $100 invested. Based on that shortfall, the panel calculated that Treasury had received only $176 billion in assets for its $254 billion investment, leaving a $78 billion hole in taxpayer pockets.

Not all investors subsidized the struggling banks so heavily while investing in them. The COP report notes that private investors received much closer to fair-market value in investments made at the time of the early TARP transactions. When, for instance, Berkshire Hathaway invested $5 billion in Goldman Sachs in September, the Omaha-based company received securities worth $110 for each $100 invested. And when Mitsubishi invested in Morgan Stanley that same month, it received securities worth $91 for every $100 invested.

As of May 15, according to the Ethisphere TARP Index, which tracks the government's bailout investments, its various investments had depreciated in value by almost $147.7 billion. In other words, TARP's losses come out to almost $1,300 per American taxpaying household.

2. As the government has no real oversight over bailout funds, taxpayers remain in the dark about how their money has been used and if it has made any difference.

While the Treasury Department can make TARP recipients report on just how they spend their government bailout funds, it has chosen not to do so. As a result, it's unclear whether institutions receiving such funds are using that money to increase lending -- which would, in turn, boost the economy -- or merely to fill in holes in their balance sheets.

Neil M. Barofsky, the special inspector general for TARP, summed the situation up this way in his office's April quarterly report to Congress: "The American people have a right to know how their tax dollars are being used, particularly as billions of dollars are going to institutions for which banking is certainly not part of the institution's core business and may be little more than a way to gain access to the low-cost capital provided under TARP."

This lack of transparency makes the bailout process highly susceptible to fraud and corruption. Barofsky's report stated that 20 separate criminal investigations were already under way involving corporate fraud, insider trading and public corruption. He also told the Financial Times that his office was investigating whether banks manipulated their books to secure bailout funds. "I hope we don't find a single bank that's cooked its books to try to get money, but I don't think that's going to be the case."

Economist Dean Baker, co-director of the Center for Economic and Policy Research in Washington, suggested to TomDispatch in an interview that the opaque and complicated nature of the bailout may not be entirely unintentional, given the difficulties it raises for anyone wanting to follow the trail of taxpayer dollars from the government to the banks. "[Government officials] see this all as a Three Card Monte, moving everything around really quickly so the public won't understand that this really is an elaborate way to subsidize the banks," Baker says, adding that the public "won't realize we gave money away to some of the richest people."

3. The bailout's newer programs heavily favor the private sector, giving investors an opportunity to earn lucrative profits and leaving taxpayers with most of the risk.

Under Treasury Secretary Geithner, the Treasury Department has greatly expanded the financial bailout to troubling new programs like the Public-Private Investment Program (PPIP) and the Term Asset-Backed-Securities Loan Facility (TALF). The PPIP, for example, encourages private investors to buy "toxic" or risky assets on the books of struggling banks. Doing so, we're told, will get banks lending again because the burdensome assets won't weigh them down. Unfortunately, the incentives the Treasury Department is offering to get private investors to participate are so generous that the government -- and, by extension, American taxpayers -- are left with all the downside.

Joseph Stiglitz, the Nobel Prize-winning economist, described the PPIP program in a New York Times Op-Ed this way: 

"Consider an asset that has a 50-50 chance of being worth either zero or $200 in a year's time. The average 'value' of the asset is $100. Ignoring interest, this is what the asset would sell for in a competitive market. It is what the asset is 'worth.' Under the plan by Treasury Secretary Timothy Geithner, the government would provide about 92 percent of the money to buy the asset but would stand to receive only 50 percent of any gains, and would absorb almost all of the losses. Some partnership!

"Assume that one of the public-private partnerships the Treasury has promised to create is willing to pay $150 for the asset. That's 50 percent more than its true value, and the bank is more than happy to sell. So the private partner puts up $12, and the government supplies the rest -- $12 in 'equity' plus $126 in the form of a guaranteed loan.

"If, in a year's time, it turns out that the true value of the asset is zero, the private partner loses the $12, and the government loses $138. If the true value is $200, the government and the private partner split the $74 that's left over after paying back the $126 loan. In that rosy scenario, the private partner more than triples his $12 investment. But the taxpayer, having risked $138, gains a mere $37."

Worse still, the PPIP can be easily manipulated for private gain. As economist Jeffrey Sachs has described it, a bank with worthless toxic assets on its books could actually set up its own public-private fund to bid on those assets. Since no true bidder would pay for a worthless asset, the bank's public-private fund would win the bid, essentially using government money for the purchase. All the public-private fund would then have to do is quietly declare bankruptcy and disappear, leaving the bank to make off with the government money it received. With the PPIP deals set to begin in the coming months, time will tell whether private investors actually take advantage of the program's flaws in this fashion.

The Treasury Department's TALF program offers equally enticing possibilities for potential bailout profiteers, providing investors with a chance to double, triple, or even quadruple their investments. And like the PPIP, if the deal goes bad, taxpayers absorb most of the losses. "It beats any financing that the private sector could ever come up with," a Wall Street trader commented in a recent Fortune magazine story. "I almost want to say it is irresponsible."

4. The government has no coherent plan for returning failing financial institutions to profitability and maximizing returns on taxpayers' investments.

Compare the treatment of the auto industry and the financial sector, and a troubling double standard emerges: As a condition for taking bailout aid, the government required Chrysler and General Motors to present detailed plans on how the companies would return to profitability. Yet the Treasury Department attached minimal conditions to the billions injected into the largest bailed-out financial institutions. Moreover, neither Geithner nor Lawrence Summers, one of President Barack Obama's top economic advisors, nor the president himself has articulated any substantive plan or vision for how the bailout will help these institutions recover and, hopefully, maximize taxpayers' investment returns.

The Congressional Oversight Panel highlighted the absence of such a comprehensive plan in its January report. Three months into the bailout, the Treasury Department "has not yet explained its strategy," the report stated. "Treasury has identified its goals and announced its programs, but it has not yet explained how the programs chosen constitute a coherent plan to achieve those goals."

Today, the department's endgame for the bailout still remains vague. Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, wrote in the Financial Times in May that the government's response to the financial meltdown has been "ad hoc, resulting in inequitable outcomes among firms, creditors, and investors." Rather than perpetually prop up banks with endless taxpayer funds, Hoenig suggests that the government should allow banks to fail. Only then, he believes, can crippled financial institutions and systems be fixed. "Because we still have far to go in this crisis, there remains time to define a clear process for resolving large institutional failure. Without one, the consequences will involve a series of short-term events and far more uncertainty for the global economy in the long run."

The healthier and more profitable bailout recipients are once financial markets rebound, the more taxpayers will earn on their investments. Without a plan, however, banks may limp back to viability while taxpayers lose their investments or even absorb further losses.

5. The bailout's focus on Wall Street mega-banks ignores smaller banks serving millions of American taxpayers that face an equally uncertain future.

The government may not have a long-term strategy for its trillion-dollar bailout, but its guiding principle, however misguided, is clear: What's good for Wall Street will be best for the rest of the country.

On the day the mega-bank stress tests were officially released, another set of stress-test results came out to much less fanfare. In its quarterly report on the health of individual banks and the banking industry as a whole, Institutional Risk Analytics (IRA), a respected financial services organization, found that the stress levels among more than 7,500 FDIC-reporting banks nationwide had risen dramatically. For 1,575 of the banks, net incomes had turned negative due to decreased lending and less risk-taking.

The conclusion IRA drew was telling: "Our overall observation is that U.S. policy makers may very well have been distracted by focusing on 19 large stress test banks designed to save Wall Street and the world's central bank bondholders, this while a trend is emerging of a going concern viability crash taking shape under the radar." The report concluded with a question: "Has the time come to shift the policy focus away from the things that we love, namely big zombie banks, to tackle things that are truly hurting us?"

6. The bailout encourages the very behaviors that created the economic crisis in the first place instead of overhauling our broken financial system and helping the individuals most affected by the crisis.

As Joseph Stiglitz explained in the New York Times, one major cause of the economic crisis was bank overleveraging. "[U]sing relatively little capital of their own," he wrote, "[banks] borrowed heavily to buy extremely risky real estate assets. In the process, they used overly complex instruments like collateralized debt obligations." Financial institutions engaged in overleveraging in pursuit of the lucrative profits such deals promised -- even if those profits came with staggering levels of risk.

Sound familiar? It should, because in the PPIP and TALF bailout programs the Treasury Department has essentially replicated the very overleveraged, risky, complex system that got us into this mess in the first place: In other words, the government hopes to repair our financial system by using the flawed practices that caused this crisis.

Then there are the institutions deemed "too big to fail." These financial giants -- among them AIG, Citigroup and Bank of America -- have been kept afloat by billions of dollars in bottomless bailout aid. Yet reinforcing the notion that any institution is "too big to fail" is dangerous to the economy. When a company like AIG grows so large that it becomes "too big to fail," the risk it carries is systemic, meaning failure could drag down the entire economy. The government should force "too big to fail" institutions to slim down to a safer, more modest size; instead, the Treasury Department continues to subsidize these financial giants, reinforcing their place in our economy.

Of even greater concern is the message the bailout sends to banks and lenders -- namely, that the risky investments that crippled the economy are fair game in the future. After all, if banks fail and teeter at the edge of collapse, the government promises to be there with a taxpayer-funded, potentially profitable safety net.

The handling of the bailout makes at least one thing clear, however: It's not your health that the government is focused on, it's theirs -- the very banks and lenders whose convoluted financial systems provided the underpinnings for staggering salaries and bonuses while bringing our economy to the brink of another Great Depression.

-- By Andy Kroll

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Random Thoughts


Thomas Sowell

Random thoughts on the passing scene:

They say that people mellow with age. However, the older I get, the less patience I have with cleverness.

If increased government spending with borrowed or newly created money is a "stimulus," then the Weimar Republic should have been stimulated to unprecedented prosperity, instead of runaway inflation and widespread economic desperation that ultimately brought Adolf Hitler to power.

Just days after Colin Campbell informed us that the American people were willing to pay higher taxes in order to get government services-- and that Republicans therefore needed to stop their opposition to taxes-- California voters resoundingly defeated a bill to raise taxes in order to pay for the many government services in that liberal state.

Who was it who said: "I cannot tell what powers may have to be exercised in order to win this war"? George W. Bush? Dick Cheney? Donald Rumsfeld? Actually it was Franklin D. Roosevelt, in a "fireside chat" broadcast on September 7, 1942. He understood that survival was the number one right, without which all other rights are meaningless.

They say adversity concentrates the mind. Now that Republicans have been badly beaten in two consecutive Congressional elections, what Republican leaders in Congress are saying today makes more sense than what they said when they were in power.

When my sister's children were teenagers, she told them that, if they got into trouble and ended up in jail, to remember that they had a right to make one phone call. She added: "Don't waste that call phoning me." We will never know whether they would have followed her advice, since none of them was ever in jail.

One of the most important talents for success in politics is the ability to make utter nonsense sound not only plausible but inspiring. Barack Obama has that talent. We will be lucky if we escape the catastrophes into which other countries have been led by leaders with that same charismatic talent.

When I think of the people with serious physical or mental handicaps who nevertheless work, I find it hard to sympathize with able-bodied men who stand on the streets and beg. Nor can I sympathize with those who give them money that subsidizes a parasitic lifestyle which allows such men to be a constant nuisance, or even a danger, to others.

How surprising is it that Barack Obama, who spent decades hanging out with people who spewed out their hatred of America, did not say anything in the presence of foreign rulers like Hugo Chavez and Daniel Ortega, when they spewed out their hatred of America?

We seem to be moving steadily in the direction of a society where no one is responsible for what he himself did but we are all responsible for what somebody else did, either in the present or in the past.

Why let discussions with visiting celebrities be a constant distraction during a televised tennis match or baseball game?

If we each sat down and wrote out all the mistakes we have made in our lives, all the paper needed would require cutting down whole forests.

Much discussion of the interrogation of captured terrorists ignores the inescapable reality of trade-offs. The real question is: How many American lives are you prepared to sacrifice, in order to spare a terrorist from experiencing distress?

Governments should govern, not micro-manage the economy. A government unrealistic enough to think it can micro-manage is likely to do a worse job than most.

Inspiring as it is to study the history of the struggles and sacrifices that created and preserved America, it is also painful to see how all those investments of efforts and lives are being frittered away today for short-sighted and self-centered reasons.

Why the mere relocation of imprisoned terrorists from Guantanamo to prisons in the United States is a moral issue in the first place is by no means clear, since morality deals with behavior, rather than location. But putting them within the jurisdiction of liberal circuit court judges who can find reasons to turn them loose is a much more serious issue.



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