Category Archives: Republicans

My Observations about Jobs and the US Chamber of Congress

I am sure there are lots of reasons that jobs are leaving the country that probably cannot be isolated to one party or the other but I will tell about my experience in management at US Robotics, a high tech dial up modem maker, in the nineties.  When I got there we were selling 9600bps modems at about $500 a pop.  A company called Hayes was under-selling us by $100 or so.  Upper management went ballistic and told us to redesign and cost reduce the modem.  We did all that but we were still short until we started costing out the effect of manufacturing the modems in the Far East.  The cost reduction was dramatic.  We were able to sell 1400bps Sportster Modems at $200.  To make a long story short, we went from a 5 million dollar company to a 50 million dollar company in 5 years and killed the competition.  We did not lay off any US employees.  We actually ramped up to 3 manufacturing shifts.  We learned that stable products were cheaper to produce in the Orient.  However, since we were coming out with about 100 new products a quarter world-wide we found that new products, less stable, did better in our manufacturing facilities. 

There are several reasons why the Far East can manufacture cheaper than us:

1)       Their cost of living is cheaper.

2)       They can pay their labor a lot less.

3)       There were no unions so the companies could work their employees literally to death in some cases or fire them.

4)       Some of those governments illegally (with regard to trade treaties) underwrite the manufacturing costs.  Part of the issue with this is a legitimate issue that foreign countries make…some of those countries fund R&D much like we do here for things like NIH, Defense, etc. so the companies do not need to take the R&D cost out of their cost of goods sold.

The US Chamber of Commerce along with big American based companies in China is actively siding with the Chinese government and those Chinese companies to oppose labor union in China.  For more info see:

http://www.fpif.org/articles/labor_rights_in_china

I think this presents many problems for us.  The Chinese government and businesses will not be able to hold this tide off forever.  The Chinese people will demand better working conditions and better pay.  If we stand in the way we risk losing the good will of the Chinese people.  Also, they are just starting to go through what we went through some decades ago.  If their cost of production rises it will only help manufacturing jobs in the US.

Here is another thought, white collar jobs are now following the blue collar trend.  India is gobbling of professional software jobs from the US for many of the reasons that China gobbled up manufacturing jobs.   We need to understand that our pain is due to a world economy that is allowing more impoverished countries to increase the standard of living.  We need to let them go through the process until economic conditions normalize.  If we try to stamp every fire out that pops up we are going to make enemies in the world and we still not stop the tide.

IMO, protectionism or exploitative capitalism will only hurt us in the long run.  We need to respond with innovation, retraining, budding new markets and we probably still will not be able to stop the pain just mitigate it.  When I got out of undergraduate school with a BS in Electrical Engineering I had my pick of a dozen jobs.  A young graduate now can hardly get a technician position now with that degree.

I think it is also useful to think of this type of economic cycle in terms of our own immigration problems as well.

Federal Deficit and Debt – President Obama vs President Bush

If you look at these numbers you will see that the national debt has gone up every year since 1969 except the last four years of the Clinton administration budget:

Revenues, Outlays, Deficits, Surpluses, and Debt Held by the Public,

1968 to 2007, in Billions of Dollars

Sources: Congressional Budget Office; Office of Management and Budget.

Date         Deficit (-) or Surplus Debt Held by the Public

1968                 -25.2                             289.5

1969                 3.2                                278.1

1970                 -2.8                               283.2

1971                 -23.0                             303.0

1972                 -23.4                             322.4

1973                 -14.9                             340.9

1974                 -6.1                               343.7

1975                 -53.2                             394.7

1976                 -73.7                             477.4

1977                 -53.7                             549.1

1978                 -59.2                             607.1

1979                 -40.7                             640.3

1980                 -73.8                             711.9

1981                 -79.0                             789.4

1982                 -128.0                           924.6

1983                 -207.8                           1,137.3

1984                 -185.4                           1,307.0

1985                 -212.3                           1,507.3

1986                 -221.2                           1,740.6

1987                 -149.7                           1,889.8

1988                 -155.2                           2,051.6

1989                 -152.6                           2,190.7

1990                 -221.0                           2,411.6

1991                 -269.2                           2,689.0

1992                 -290.3                           2,999.7

1993                 -255.1                           3,248.4

1994                 -203.2                           3,433.1

1995                 -164.0                           3,604.4

1996                 -107.4                           3,734.1

1997                 -21.9                             3,772.3

1998                 69.3                              3,721.1

1999                 125.6                            3,632.4

2000                 236.2                            3,409.8

2001                 128.2                            3,319.6

2002                 -157.8                           3,540.4

2003                 -377.6                           3,913.4

2004                 -412.7                           4,295.5

2005                 -318.3                           4,592.2

2006                 -248.2                           4,829.0

2007                 -160.7                           5,035.1

http://www.cbo.gov/budget/data/historical.pdf

Federal Debt Under President George W. Bush

President Bush started with 3.3196 trillion dollars of public debt.

He left his 8 years (6 years with control of both branches of Congress) with 7.8111 trillion dollars of public debt.

This means the public debt increased 4.4915 trillion dollars during his administration.

Federal Debt Under President Obama

Here are the numbers for the Obama administration projected out to 21014:

Year Gross Debt in Billions as % of GDP Debt Held By Public ($Billions) as % of GDP
2010 (2 Sept) 13,442.1 92.1 (2nd Q) 8,933.2 61.2 (2nd Q)
2010 (est.) 14,456.3 98.1 9,881.9 67.1
2011 (est.) 15,673.9 101.0 10,873.1 70.1
2012 (est.) 16,565.7 100.6 11,468.4 69.6
2013 (est.) 17,440.2 99.7 12,027.1 68.7
2014 (est.) 18,350.0 99.8 12,594.8 68.5

 This means the public debt is estimated to increase under the Obama administration by 4.7837 trillion dollars.

http://en.wikipedia.org/wiki/United_States_public_debt

Wikipedia can be unreliable but I checked out the numbers before I posted the link.  The chart is a little simpler to read but here is the official US Treasury Department numbers:

http://www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt_histo4.htm

http://www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt_histo5.htm

Projected (est.) Congressional Budget Office numbers come from this report:

http://www.cbo.gov/ftpdocs/100xx/doc10014/03-20-PresidentBudget.pdf

Republican’s commonly complain that the surplus was due to Republican control of the Congress.  However, they do not point out that President Clinton did not have full control of the Congress for six years as President Bush did.

The Republicans took control (not a super majority) of the US House of Representatives in 1994 not the Senate.

http://en.wikipedia.org/wiki/United_States_House_of_Representatives_elections,_1994

In 1995 the Republicans took control of the Senate as well (not a super majority).

“In the 1996, 1998, and 2000 elections, Republicans lost Congressional seats but still retained control of the House and, more narrowly, the Senate. After the 2000 election, the Senate was divided evenly between the parties, with Republicans retaining the right to organize the Senate due to the election of Dick Cheney as Vice President and ex officio presiding officer of the Senate. The Senate shifted to control by the Democrats (though they technically were the plurality party as they were one short of a majority) after GOP senator Jim Jeffords changed party registration to “Independent” in June 2001, but later returned to Republican control after the November 2002 elections. In the 2006 elections, Democrats won both the House of Representatives (233 Democrats, 202 Republicans) and the Senate (49 Democrats, 49 Republicans, and 2 Independents caucusing with the Democrats) as well as the majority of state governorships (28-22).”

http://en.wikipedia.org/wiki/Republican_Revolution

The Republicans had full control of the Executive and Congressional branches of government for six years and could not generate a surplus.  However, President Clinton did it for four years without having full control.

Unemployment Statistics – President Obama vs President Bush

 

Unemployment Under President George W. Bush

The unemployment rate in 2000 was 4.0%

The unemployment rate in 2009 was 9.3%

The rate went from 4.0% to 7.7% under President Bush, 3.7% over his administration.

http://www.bls.gov/cps/cpsaat1.pdf

Unemployment Under President Obama

Current estimates are 9.6%

President Obama took office on January 20, 2009

In January 2009 the rate was 7.7%

It went from 7.7% to estimated 9.6% under President Obama, 1.9% under President Obama to date.

Series Id:           LNS14000000
Seasonally Adjusted
Series title:        (Seas) Unemployment Rate
Labor force status:  Unemployment rate
Type of data:        Percent or rate
Age:                 16 years and over

Top of Form

Download:

Bottom of Form

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
2000 4.0 4.1 4.0 3.8 4.0 4.0 4.0 4.1 3.9 3.9 3.9 3.9  
2001 4.2 4.2 4.3 4.4 4.3 4.5 4.6 4.9 5.0 5.3 5.5 5.7  
2002 5.7 5.7 5.7 5.9 5.8 5.8 5.8 5.7 5.7 5.7 5.9 6.0  
2003 5.8 5.9 5.9 6.0 6.1 6.3 6.2 6.1 6.1 6.0 5.8 5.7  
2004 5.7 5.6 5.8 5.6 5.6 5.6 5.5 5.4 5.4 5.5 5.4 5.4  
2005 5.3 5.4 5.2 5.2 5.1 5.0 5.0 4.9 5.0 5.0 5.0 4.9  
2006 4.7 4.8 4.7 4.7 4.6 4.6 4.7 4.7 4.5 4.4 4.5 4.4  
2007 4.6 4.5 4.4 4.5 4.4 4.6 4.6 4.6 4.7 4.7 4.7 5.0  
2008 5.0 4.8 5.1 5.0 5.4 5.5 5.8 6.1 6.2 6.6 6.9 7.4  
2009 7.7 8.2 8.6 8.9 9.4 9.5 9.4 9.7 9.8 10.1 10.0 10.0  
2010 9.7 9.7 9.7 9.9 9.7 9.5 9.5 9.6 9.6        

http://www.bls.gov/webapps/legacy/cpsatab15.htm (need check U3 Seasonally Adjusted)

How George Bush and the Private Mortgage Market Created The Perfect Storm

This article is a factual examination of the historical causes for the economic collapse that began in 2006.

Here are some obvious facts about the economic crisis:

It occurred in 2006.  President Bush had been president for six years.  The Republicans had controlled both the Senate and the House for six years.

The last four years of the Clinton administration there was an annual budget surplus.  The last time this occurred was in 1969.[i]  It has not happened since.  To be fair, the Republicans took control of the House of Representatives in 1994.

Certainly, a significant event that started the collapse happened during the last few years of the Clinton administration.  The Gramm–Leach–Bliley Act of 1999, known as financial services deregulation,

repealed part of the Glass-Steagall Act of 1933, opening up the market among banking companies, securities companies and insurance companies. The Glass-Steagall Act prohibited any one institution from acting as any combination of an investment bank, a commercial bank, and an insurance company.[ii]

The bill was a compromise between the Clinton Administration and the House Republicans:

The bill then moved to a joint conference committee to work out the differences between the Senate and House versions. Democrats agreed to support the bill after Republicans agreed to strengthen provisions of the anti-redlining Community Reinvestment Act and address certain privacy concerns; the conference committee then finished its work by the beginning of November. On November 4, the final bill resolving the differences was passed by the Senate 90-8, and by the House 362-57. This legislation was signed into law by Democratic President William Jefferson “Bill” Clinton on November 12, 1999.[iii]

The law allowed the traditional investment brokers to create and sell High Risk Investment Products to traditionally Low Rise Investment Banks that led to sub-prime mortgage fiasco and Hedge Fund meltdown of 2007. Historically, the combined industry has been known as the “financial services industry”.[iv]

This post will document, reference and detail how the mortgage meltdown occurred.

This is what the data will show:

  • The increase of low income housing, sub-prime loans in the Clinton and Bush administration were NOT the prime factor in the economic crisis although they did contribute in a small way.
  • A large ramp up in purchasing of Mortgage Backed Securities (MBS) under pressure from the Bush administration to meet the 56% low income housing requirement of President Bush contributed more significantly to the collapse.
  • The market demand created by the MBS in the private sector for 30 trillion dollars of unregulated, credit default swaps was the final and most significant factor in the mortgage meltdown.

In 2008 a Washington Post article stated,

In 1995, President Bill Clinton’s HUD agreed to let Fannie and Freddie get affordable-housing credit for buying subprime securities that included loans to low-income borrowers. The idea was that subprime lending benefited many borrowers who did not qualify for conventional loans. HUD expected that Freddie and Fannie would impose their high lending standards on subprime lenders.  Banks typically back prime loans with customers’ deposits. But subprime lenders often rely on money from Wall Street investors , who buy packages of loans as investments called mortgage-backed securities.[v]

Many folks quote this article but here is the history that proceeded President Clinton’s action:

Conventional loans are low risk.  Sub-prime loans are higher risk, non-conventional loans.

How did non-conventional, sub-prime loans get started[vi]?

Fair Housing Act[vii] of 1968 – President Lyndon B. Johnson

It was a follow-up to the Civil Rights Act of 1964. While the Civil Rights Act of 1866 prohibited discrimination in housing, there were no federal enforcement provisions.

[viii] of 1974 – President Gerald Ford

It made it unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction, on the basis of race, color, religion, national origin, sex, marital status, or age.

Home Mortgage Disclosure Act[ix] of 1975 (HMDA) – President Gerald Ford

It requires financial institutions to maintain and annually disclose data about home purchases, home purchase pre-approvals, home improvement, and refinance applications involving 1 to 4 unit and multifamily dwellings. It also requires branches and loan centers to display a HMDA poster.

HMDA was designed by the Federal Reserve Board in order to:

Help public officials to distribute public-sector investments

Discover if financial institutions are serving housing needs of communities

Identify where there are discriminatory lending practices

Community Reinvestment Act of 1975[x] – President Jimmy Carter

It was designed to encourage commercial banks and savings associations to meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods. Congress passed the Act in 1977 to reduce discriminatory credit practices against low-income neighborhoods, a practice known as redlining.

The Questionable Authority is a blog that explains redlining well,

Let’s start with the Community Reinvestment Act and the reasons that it was passed. For decades prior to the law’s passage, banks engaged in a process known as redlining, where they declined to write loans in certain geographic areas – typically low-income areas with large minority populations. They did not decline to write bad loans in these areas; they refused to write any loans at all. For example, in 1975 the largest bank in the Bronx wrote a grand total of 32 loans in the entire borough (Rooney 1995, p.50). No loans means no new businesses, no new housing, no opportunity. [xi] 

Here is a historical chart based on The American Institute of Policy Research and the Government Accounting Office.[xii] [xiii] The columns are:

the total sub-prime loans as a percentage of all loan originations (Col 1).  The total includes Government Sponsored Enterprises (GSEs are Freddie, Fannie and FHA) and private mortgage companies.  Freddie and Fannie are not government agencies.

the percent of GSE sub-prime loans (Col 2).  For example, 1997 the GSE sub-prime loans were 51% of the total originations of 19%.

the total in billions of all of all loan originations (Col 3).

the total in billions of all sub-prime loans (Col 4) including private sector, GSE and FHA.

the total in billions of sub-prime, GSE and FHA loans (Col 5).

the percent of the total market of GSE and FHA, sub-prime loans (Col 6)

the default percentage of the total market (Col 7)

the amount in billions of the total market defaults (Col 8 )

Note: All currency amounts in billions

Year    Col 1    Col 2    Col 3    Col 4  Col 5  Col 6  Col 7  Col 8

1997    19%     51%     $926    $176    $90      10%     0.9%    $8

1999    22%     61%     $1050  $231    $141    13%     0.9%    $12

2001    19%     65%     $1437  $273    $177    12%     0.7%    $17

2003    17%     67%     $1765  $300    $201    11%     0.6%    $21

2005    26%     43%     $1042  $271    $117    11%     1.5%    $9

2007    18%     70%     $2033  $366    $256    13%     0.5%    $28

Column 1 show that, for the years shown, all private sector and public sector sub-prime loans which includes low income loans peaked in 2005 at 26%.

Column 2 shows that, for the years shown, all

The American Institute of Policy Research further states,

 

Subprime Loans as a percentage of total originations were fairly constant for the period 1997-2003, averaging about 19.5%. The percentage averaged 26% for 2004-2006, before declining to 18% in 2007.[xiv]

Conclusion:

Non-conforming, sub-prime loans were a small percentage of all mortgage originations. 

Fannie, Freddie and FHA were an even smaller percentage of all sub-prime loans.

Defaults on all mortgages were even smaller

In 1997, two years after the Clinton and HUD issue, GSE and FHA sub-prime loans represented about 10% of the total market.  Even in the Bush administration this only grew 13%.

This is a historical chart based on a paper presented to the Financial Crisis Inquiry Commission.[xv] The columns are:

GSE new mortgage business as a percentage of total single family mortgage originations (Col 1)

FHA new mortgage business as a percentage of total single family mortgage originations (Col 2)

Private, sub-prime new mortgage business as a percentage of total single family mortgage originations (Col 3)

Private, high risk (stated income, etc.) new mortgage business as a percentage of total single family mortgage originations (Col 4).  High risk was not tracked until 2002.

Year    Col 1    Col 2    Col 3    Col 4

1997    32%     9%       14%     NA

1999    42%     9%       12%     NA

2001    44%     6%       9%       NA

2003    51%     4%       10%     21%

2005    30%     2%       32%     42%

2007    30%     2%       34%     45%

The report further states,

It thus appears that the subprime lending innovations over this period actively displaced GSE and FHA activity, leading to the declines in their market shares. [xvi]

Conclusion: From 2003 to 2006 GSEs and FHA new market share went down significantly while private mortgage company’s market share on sub-prime, high risk loans went up significantly.

MBS are packages of mortgages (sort of like mutual funds) that are bought and sold on in the stock market.  They are mortgages bought from private companies and bundled into packages by huge trading firms (you know the ones we bailed out) and sold on the stock exchange.

In 1997 the GSEs owned about 12% of the total market share of these securities. In 2001 the GSEs owned about 15% of the total market share of these securities.  In 2008 this percentage had grown dramatically to 40%. 

In intervening years it was much more.  President Bush directed his HUD director to pressure the GSEs into buying massive amounts these MBS on the open market.  This created huge market for these securities and encouraged more and more risky private sector mortgages so they could be bought, bundled and sold on the open market largely to Fannie and Freddie.

As the Washington Post article states,

But by 2004, when HUD next revised the goals, Freddie and Fannie’s purchases of subprime-backed securities had risen tenfold. Foreclosure rates also were rising.

That year, President Bush’s HUD ratcheted up the main affordable-housing goal over the next four years, from 50 percent to 56 percent. John C. Weicher, then an assistant HUD secretary, said the institutions lagged behind even the private market and “must do more.”

For Wall Street, high profits could be made from securities backed by subprime loans. Fannie and Freddie targeted the least-risky loans. Still, their purchases provided more cash for a larger subprime market.

“That was a huge, huge mistake,” said Patricia McCoy, who teaches securities law at the University of Connecticut. “That just pumped more capital into a very unregulated market that has turned out to be a disaster.”[xvii]

How did the GSE’s accomplish this?  As the article further states:

In 2003, the two bought $81 billion in subprime securities. In 2004, they purchased $175 billion — 44 percent of the market. In 2005, they bought $169 billion, or 33 percent. In 2006, they cut back to $90 billion, or 20 percent. Generally, Freddie purchased more than Fannie and relied more heavily on the securities to meet goals.

“The market knew we needed those loans,” said Sharon McHale, a spokeswoman for Freddie Mac. The higher goals “forced us to go into that market to serve the targeted populations that HUD wanted us to serve,” she said.

But because Fannie and Freddie were buying mortgage-backed securities rather than the actual subprime loans, their involvement came too late to require stiffer standards from lenders.

Fannie and Freddie “made no progress in civilizing the market,” said Sandra Fostek, a senior regulator at HUD.

William C. Apgar Jr., who was an assistant HUD secretary under Clinton, said he regrets allowing the companies to count subprime securities as affordable.

“It was a mistake,” he said. “In hindsight, I would have done it differently.”[xviii]

Conclusion: Even though Fannie, Freddie and FHA had much less to do with new loans in the Bush administration they bought huge amounts of MBS in those years to meet President Bush’s 56% housing requirement. 

Additionally, the President encouraged the GSEs to “focus” their “core housing mission” “with respect to low-income Americans and first-time homebuyers” in the following statement from the White House,

The Administration strongly believes that the housing GSEs should be focused on their core housing mission, particularly with respect to low-income Americans and first-time homebuyers. Instead, provisions of H.R. 1461 that expand mortgage purchasing authority would lessen the housing GSEs’ commitment to low-income homebuyers.[xix]

Conclusion:  President Bush had directed HUD to require the GSEs to meet the 56% low income housing requirement.  This pressured the GSEs to buy massive MBS.  This created a massive market for junk mortgages.

Credit Default Swaps are insurance policies on mortgages, sort of like the futures market for commodities for MBS.  Credit Default Swaps are not regulated.  The government did not own credit default swaps.  This was purely a private market commodity.

Between 2000 and 2008, the market for such swaps ballooned from $900 billion to more than $30 trillion.[xx]

This is what brought AIG down.

Goldman Sachs played both sides MBS and Credit Default Swaps.

When the Fannie and Freddie bought huge amounts of MBS, pressured by the Bush administration, the market for credit default swaps went astronomical.  This is ultimately what broke them and resulted in tax payers having to bail them out. [xxi]

If you do not believe me what about Greenspan, Treasury Secretary Paul O’Neill, Securities and Exchange Commission chairman Harvey Pitt, and Commodity Futures Trading Commission chairman James Newsome,

In September 2002, Greenspan, Treasury Secretary Paul O’Neill, Securities and Exchange Commission chairman Harvey Pitt, and Commodity Futures Trading Commission chairman James Newsome wrote a letter to members of Congress to note their opposition to legislation that would regulate derivatives. They wrote:

We believe that the [over-the-counter] derivatives markets in question have been a major contributor to our economy’s ability to respond to the stresses and challenges of the last two years. This proposal would limit this contribution, thereby increasing the vulnerability of our economy to potential future stresses….

We do not believe a public policy case exists to justify this governmental intervention. The OTC markets trade a wide variety of instruments. Many of these are idiosyncratic in nature….

While the derivatives markets may seem far removed from the interests and concerns of consumers, the efficiency gains that these markets have fostered are enormously important to consumers and to our economy.

Greenspan and the others urged Congress “to be aware of the potential unintended consequences” of legislation to regulate derivatives.

They got it exactly wrong. Swaps and derivatives ended up undermining, not bolstering, the economy.[xxii]

This data clearly shows that:

The increase of low income, sub-prime loans and the low overall default rate of all loan originations (1.5% in 2005 was the highest tracked in this data, through 2007).  This dispels that myth that the crisis was caused by loan defaults of low-income folks.

The huge increase of MBS purchased by the GSEs from 2003 through 2006 under pressure from the Bush administration to meet the 56% affordable housing requirement along with the 30 trillion dollar credit default swap fault market it created in the private sector was the cause of the housing bubble that burst into the subsequent economic crisis.  Even Alan Greenspan, a Republican, admitted in his interview Brian Naylor,

BRIAN NAYLOR: The man once known as the maestro for his direction of the nation’s economy as Fed chairman sat for four long hours yesterday, watching lawmakers who once cheered his performances turn into harsh critics. Testifying before the House Oversight Committee, Greenspan didn’t down play the severity of the crisis in the nation’s markets.

 

Mr. ALAN GREENSPAN (Former Chairman, Federal Reserve): We are in the midst of a once-in-a-century credit tsunami. Central banks and governments are being required to take unprecedented measures.

 

NAYLOR: Under questioning from Democrats on the panel, Greenspan conceded he might have been, as he put it, partially wrong in not moving to regulate trading of some derivatives that are among the root causes of the credit crisis. He also admitted his free market ideology may be flawed. This exchange with committee chairman, Democrat Henry Waxman of California, verged on the metaphysical.

 

Representative HENRY WAXMAN (Committee Chairman, Democrat, 30th District of California): You found a flaw in the reality…

 

Mr. GREENSPAN: Flaw in the model that I perceived is a critical functioning structure that defines how the world works, so to speak.

 

Rep. WAXMAN: In other words, you found that your view of the world, your ideology was not right. It was not working.

 

Mr. GREENSPAN: How it – precisely. That’s precisely the reason I was shocked, because I’ve been going for 40 years or more with very considerable evidence that it was working exceptionally well.[xxiii]

This is what happens when the private sector and government work in collusion with each other.  Between the Democrats and the Republican’s who do you suppose would have the explicit, stated purpose of doing that?  Hint: Who wants to privatize Social Security[xxiv] and Medicare?  Who do you think is going to pay for it?


[i]Revenues, Outlays, Deficits, Surpluses, and Debt Held by the Public,

1968 to 2007, in Billions of Dollars

Sources: Congressional Budget Office; Office of Management and Budget.

Date        Deficit (-) or Surplus           Debt Held by the Public

1968                -25.2                            289.5

1969                3.2                               278.1

1970                -2.8                              283.2

1971                -23.0                            303.0

1972                -23.4                            322.4

1973                -14.9                            340.9

1974                -6.1                              343.7

1975                -53.2                            394.7

1976                -73.7                            477.4

1977                -53.7                            549.1

1978                -59.2                            607.1

1979                -40.7                            640.3

1980                -73.8                            711.9

1981                -79.0                            789.4

1982                -128.0                          924.6

1983                -207.8                          1,137.3

1984                -185.4                          1,307.0

1985                -212.3                          1,507.3

1986                -221.2                          1,740.6

1987                -149.7                          1,889.8

1988                -155.2                          2,051.6

1989                -152.6                          2,190.7

1990                -221.0                          2,411.6

1991                -269.2                          2,689.0

1992                -290.3                          2,999.7

1993                -255.1                          3,248.4

1994                -203.2                          3,433.1

1995                -164.0                          3,604.4

1996                -107.4                          3,734.1

1997                -21.9                            3,772.3

1998                69.3                             3,721.1

1999                125.6                           3,632.4

2000                236.2                           3,409.8

2001                128.2                           3,319.6

2002                -157.8                          3,540.4

2003                -377.6                          3,913.4

2004                -412.7                          4,295.5

2005                -318.3                          4,592.2

2006                -248.2                          4,829.0

2007                -160.7                          5,035.1

http://www.cbo.gov/budget/data/historical.pdf

[ii]Gramm–Leach–Bliley Act

http://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Act

[iii]Gramm–Leach–Bliley Act

http://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Act

[iv]Gramm–Leach–Bliley Act

 http://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Act

[v]How HUD Mortgage Policy Fed The Crisis

http://www.washingtonpost.com/wp-dyn/content/article/2008/06/09/AR2008060902626.html

[vi] Community Reinvestment Act

http://en.wikipedia.org/wiki/Community_Reinvestment_Act

[vii]FAIR HOUSING ACT

 http://www.justice.gov/crt/housing/title8.php

[viii]US Code, 15 U.S.C. § 1691

 http://www.law.cornell.edu/uscode/15/1691.html

[ix] Home Mortgage Disclosure Act of 1975

http://www.fdic.gov/regulations/laws/rules/6500-3030.html#6500hmda1975

[x] Community Reinvestment Act

http://www.fdic.gov/regulations/laws/rules/6500-2515.html#6500hcda1977

[xi]http://scienceblogs.com/authority/2008/09/the_subprime_mortgage_crisis_a.php

[xii]Table 3: Detail for Subprime Loans – see endnotes for sources (page 10 pdf)

http://www.aei.org/docLib/Pinto-High-LTV-Subprime-Alt-A.pdf

Figure 1: GSE Investment Portfolio and MBS ($ Billions, Left Axis),

GSE % of Total Outstanding Single Family Mortgages (Right Axis)

http://www.fcic.gov/hearings/pdfs/2010-0227-Jaffee.pdf

[xiii]  GAO report (page 18 for sub-prime data and page 21 for default rates data in pdf):

http://www.mortgagebankers.org/files/News/InternalResource/57640_GAOReportInformationonRecentDefaultandForeclosureTrends.pdf

[xiv]http://www.aei.org/docLib/Pinto-High-LTV-Subprime-Alt-A.pdf (page 12 pdf)

[xv]Figure 1: GSE Investment Portfolio and MBS ($ Billions, Left Axis),

GSE % of Total Outstanding Single Family Mortgages (Right Axis)

http://www.fcic.gov/hearings/pdfs/2010-0227-Jaffee.pdf

[xvi]Figure 2: GSE, FHA, Subprime, and High Risk New Mortgage Activity as Percentage of Total Single‐Family Mortgage Originations (page 9 pdf)

http://www.fcic.gov/hearings/pdfs/2010-0227-Jaffee.pdf

[xvii]How HUD Mortgage Policy Fed The Crisis

http://www.washingtonpost.com/wp-dyn/content/article/2008/06/09/AR2008060902626.html

[xviii]How HUD Mortgage Policy Fed The Crisis

http://www.washingtonpost.com/wp-dyn/content/article/2008/06/09/AR2008060902626.html

[xix]Statement from the White House (President Bush) October 26, 2005:

http://georgewbush-whitehouse.archives.gov/omb/legislative/sap/109-1/hr1461sap-h.pdf

http://topics.nytimes.com/top/reference/timestopics/subjects/c/credit_default_swaps/index.html?inline=nyt-classifier

[xxi]Interesting Article

http://money.cnn.com/magazines/fortune/fortune_archive/2005/01/24/8234040/index.htm

See also,

http://www.nytimes.com/2005/08/29/opinion/29krugman.html

http://blogs.reuters.com/felix-salmon/2010/05/03/did-greenspan-try-to-quash-a-housing-bubble-debate/

[xxii]http://motherjones.com/politics/2008/10/alan-shrugged

[xxiii]http://www.npr.org/templates/story/story.php?storyId=96070766

[xxiv]To those that say they could invest their Social Security dollars I can tell you as an active trader that even professionals rarely do better than market.  I wouldn’t mind if the Congress did allow folks to do their own investing but it is sort of like people that do not have health insurance…when they do need medical care they end up in the emergency room and cost all of us more money.  However, if we could figure out a way for people that invested their own Social Security dollars and lost it all to keep from ending up on the taxpayer’s bill I would have no problem with it.  It is true that the Bush Administration was only pushing for a lower percentage of Social Security dollars that could be invested privately but this debate goes back many decades to the beginning of Social Security.  The Republicans since FDR would like to get rid of or never have had Social Security.  Since they have failed to get rid of it in previous decades their current effort is to make a fundamental change to the trust fund (which can only be done through a very difficult act of Congress) to allow a small percentage of individual investment.  If they could accomplish this subsequently increasing the allowed percentage would be a much easier Congressional task.

Here are more references for the Republican attempts to privatize Social Security in this decade:

Assorted articles concerning Republican’s plans to privatize Social Security:

Republican Privatization to Eliminate Medicare and Social Security

What are Republicans trying to privatize Social Security?

Social Security Privatization

Pelosi blasts Republican plan to privatize Social Security

National Review: Social Security Privatization a Winning Issue

Social Security Still Needs to Be Privatized

Social Security

Republican bills aimed at privatization:

Report: “Social Security Reform: Current Issues and Legislation,” By Dawn Nuschler. Congressional Research Service, Library of Congress. Updated May 18, 2007.http://www.house.gov/waxman/pdfs/crs/RL33544.pdf

Page CRS-18:

In the 109th Congress, 10 Social Security reform bills were introduced as follows: H.R. 440 (Representative Kolbe and Representative Boyd), H.R. 530 (Representative Sam Johnson), H.R. 750 (Representative Shaw), S. 540 (Senator Hagel), S. 857 (Senator Sununu), H.R. 1776 (Representative Paul Ryan), H.R. 2472 (Representative Wexler), S. 1302 (Senator DeMint), H.R. 3304 (Representative McCrery), and S. 2427 (Senator Bennett). All but two of the measures (H.R. 2472 and S. 2427) would have established individual accounts to supplement or replace traditional Social Security benefits, among other changes.

Report: “Social Security: The Chilean Approach to Retirement.” By Christopher Tamborini. Congressional Research Service, Library of Congress, May 17, 2007. http://assets.opencrs.com/rpts/RL34006_20070517.pdf

Page CRS-3: “During the 109th Congress, 10 Social Security reform bills were introduced; all but two of these would have allowed workers to invest some part of their earnings in individual retirement accounts, either to supplement the Social Security system (often referred to as add-on accounts) or to replace part of the system (often referred to as carve-out accounts).13 No legislation received congressional action.”

Report: “Social Security Reform: Current Issues and Legislation,” By Dawn Nuschler. Congressional Research Service, Library of Congress. Updated May 18, 2007. http://www.house.gov/waxman/pdfs/crs/RL33544.pdf

Page CRS-18: “In the 109th Congress, 10 Social Security reform bills were introduced as follows: H.R. 440 (Representative Kolbe and Representative Boyd), H.R. 530 (Representative Sam Johnson), H.R. 750 (Representative Shaw), S. 540 (Senator Hagel), S. 857 (Senator Sununu), H.R. 1776 (Representative Paul Ryan), H.R. 2472 (Representative Wexler), S. 1302 (Senator DeMint), H.R. 3304 (Representative McCrery), and S. 2427 (Senator Bennett).”

Web page: “Biographical Directory of the United States Congress 1774-Present.” United States Congress. Accessed September 17, 2008 at http://bioguide.congress.gov/biosearch/biosearch.asp

{This site was used to determine the party affiliations of the sponsors of the following bills:}

H.R. 440 – Representative Kolbe (R-AZ) and Representative Boyd (D-FL)

H.R. 530 – Representative Sam Johnson (R-TX)

H.R. 750 – Representative Shaw (R-FL)

S. 540 – Senator Hagel (R-NE)

S. 857 – Senator Sununu (R-NH),

H.R. 1776 – Representative Paul Ryan (R-WI)

S. 1302 – Senator DeMint (R-SC)

H.R. 3304 – Representative McCrery (R-LA)

Report: “Social Security Reform: Current Issues and Legislation,” By Dawn Nuschler. Congressional Research Service, Library of Congress. Updated May 18, 2007. http://www.house.gov/waxman/pdfs/crs/RL33544.pdf

Page CRS-23:

During the 110th Congress, two comprehensive Social Security reform measures have been introduced: H.R. 1090 (Social Security Guarantee Plus Act of 2007) and H.R. 2002 (Individual Social Security Investment Program Act of 2007). H.R. 1090, which is the same as H.R. 750 in the 109th Congress, would establish voluntary individual accounts funded with general revenues, among other program changes. H.R. 2002, which is the same as H.R. 530 in the 109th Congress, would establish individual accounts funded with a redirection of current payroll taxes, among other program changes.

{H.R. 1090 was sponsored by Rep. Ron Lews (R-KY). H.R. 2002 was sponsored by Rep. Samuel Johnson (R-TX).}

Bill: “S.2765, Saving Social Security Act of 2008.” United States Senate, March 13, 2008. http://thomas.loc.gov/

Sec. 101. Establishment of an investment-based option for social security benefits.

 Bill: “H.R.4922: Savings Account for Every American Act of 2007.” United States House of Representatives, December 19, 2007. http://thomas.loc.gov/

 {This bill calls for the establishment of individual “S.A.F.E.” savings accounts through payroll deduction to be used in retirement. A S.A.F.E. account has meaning as provided for by section 222 (c) of the IRS Code of 1986.}

 Bill: “H.R.1090: Social Security Guarantee Plus Act of 2007.” United States House of Representatives, February 15, 2007. http://thomas.loc.gov/

 [March 13, 2007: Referred to House Subcommittee on Social Security.]

 Bill: “H.R.2002: Individual Social Security Investment Program Act of 2007.” United States House of Representatives, April 23, 2007. http://thomas.loc.gov/

  [April 25, 2007: Referred to House Subcommittee on Social Security.]

 Bill: “S.2765: Saving Social Security Act of 2008.” United States Senate, March 13, 2008. http://thomas.loc.gov/

  [March 13, 2008: Referred to Senate Committee on Finance.]

 Bill: “H.R. 4922: Savings Account for Every American Act of 2007.” United States House of Representatives, December 19, 2007. http://thomas.loc.gov/

 [December 19, 2007: Referred to Committee on Ways and Means and Committee on Oversight and Government Reform.]

Report: “2008 Republican Party Platform.” Republican National Committee, September 2008. http://www.gopplatform2008.com/2008Platform.pdf

Page 19: “Comprehensive reform should include the opportunity to freely choose to create your own personal investment accounts which are distinct from and supplemental to the overall Social Security system.”

Web page: “Obama ’08, Seniors and Social Security” Obama for America. Accessed November 11, 2008 at http://www.barackobama.com/issues/socialsecurity/

“In the midst of the 2005 debate over Social Security privatization, Obama gave a major speech at the National Press Club forcefully arguing against privatization. He also repeatedly voted against Republican amendments that aimed to privatize Social Security or cut benefits.”

Transcript: “The Republican Debate on Fox News Channel,” New York Times, October 21, 2007. http://www.nytimes.com/2007/10/21/us/politics/…

“And you have to go to the American people and say we don’t — we won’t raise your taxes. We need personal savings accounts, but we got to fix this system.”

Report: “Strengthening Social Security and Creating Personal Wealth for All Americans.” The President’s Commission to Strengthen Social Security, December 21, 2001. http://www.csss.gov/reports/Final_report.pdf

Page 11: “Personal accounts improve retirement security by facilitating wealth creation and providing participants with assets that they own and that can be inherited, rather than providing only claims to benefits that remain subject to political negotiation.”

Ken Buck and “Pro-abortion”

Ken Buck made a comment last night that he makes a distinction between pro-choice and pro-abortion folks. Just as “pro-life” is an intentionally manipulative misnomer so is this distinction. I have made the case on my blog (http://mixermuse.com/blog/2010/01/29/the-greater-good-and-scott-roeder/) that “pro-life” folks are not “pro-life” as they would have you believe. They are really anti-abortion folks that maintain a radical, fundamentally religious position if they oppose abortion under any circumstances. Additionally, if they really believed that all life was sacred they would oppose the death penalty, oppose war and favor a radical solution to health care. In any case, my intent with this post is to suggest that the argument that Ken Buck and the other anti-abortionists make that assumes there are rabid “pro-abortion” folks out there are really a deflection of their own radical views.

It is nonsensical to suggest that pro-choice folks really want people to get abortions. It is ludicrous to think that most sensible folks would want to push abortions on people. Why would anyone in their right mind insist that someone get an abortion? The only way I could see that someone could arrive at this position would be if they wanted to target an ethnic group on the grounds of some extreme genocidal position. Does Ken Buck think that these “pro-abortion” folks really want to target an ethnic group? The anti-choice folks have made these claims in the past about historical, pro-choice people but these days that claim only makes them look like lunatics to those of us outside their club. What other reason would someone be radically “pro-abortion”?

What he calls “pro-abortion” is really only people that think abortion should be an individual choice and not a big-government call about what should be a personal issue (to put it in Ken Buck’s terms). What really bothers me about this tactic is that it re-directs the real extremism to a fabricated extremism. Psychologists call this “projection” but in sociological terms it is really an attempt at mass manipulation. The real radicals are the ones that believe abortion should be outlawed under any circumstances (rape, incest, to protect the life of the mother, etc.). However, if they can re-define their extremism as the more “sensible” position then their position feigns the appearance of less radical and thus, more moderate. Thus, the “right” is never “right enough” and the left is always increasingly just left of the radical right. If the position that the government should not intrude on people’s personal choice for an abortion is shown to be “pro-abortion” and radical then the anti-abortion folks make their extremism more palatable. If people see through this, their feeble attempts at manipulation are ineffective and the real zealots become apparent.

What I take away from Ken’s comment is that he is content to surround himself with extreme right positions and he is willing to make everyone else look like the extremist he really is. If one adopts an ideology that can never directly be stated but only pointed at in “code words” it is because the ideology cannot stand on its own, in the light of reason and reasonable folks. I get the feeling that a lot of the right wing rhetoric is dishonest, pointing to ideas that they cannot express directly except in their inner circle. Thus, comments border on elitism, support for the rich and big business, racism, sexism, and homophobia but never quit get there in public discourse because that light would be too revealing. I know there are conservatives that have direct, honest and well thought out positions but this trend on the right is a little disturbing. I do all I can to make my ideas direct and without any need to ‘paint lipstick on a pig’. The question voters need to ask themselves is, “Is this the kind of person we want for our Senator”?

The Odd Thing about the Tea Party

There is something odd about the tea party that I have not been able to pin down until now. The Tea Party is “mad as hell and ain’t gonna take it no more”. I see these older white folks talking about armed revolution and it makes me chuckle. Could you see gray haired, overweight revolutionaries being mowed down by the military? This sounds like a Monty Python skit to me. Anyway, the really funny thing is that these folks are demonstrating to conserve. There is an oxymoron knotted in this thought. The thought of ‘conserving’ is to continue the status quo. Traditionally, conservatives do not want too much change. They support establishment candidates that are not going to rock the boat. It would be ludicrous to demonstrate to stay the same. It would be like painting legs on a snake, a koan. These folks are using the thought ‘conserve’ to covertly introduce a radical agenda.

They do not want to conserve. They want to push an elitist, marginally violent (for now), questionably racist, quasi anarchistic agenda. They all came out of the conservative Republican ranks so they think of themselves as conservatives but they have not worked out the ideological specificities of their own anger. If they really wanted to conserve they would stay in the Republican Party and vote for the ‘true’ conservatives (whatever that is). These folks say they are ‘true’ patriots and ready to spill blood to prove it. Their deacto flag is the American Revolutionary flag that states, “Don’t Tread on Me”. They quote Thomas Jefferson, “The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants.” They rarely state the rest of the quote but it is the part that I agree with about the Tea Party, “It is it’s natural manure.” They think of themselves as extreme patriots. They do not think they are racists as they find that position untenable but they make ‘rational’ claims and ‘mere’ jokes about Islamics, women and blacks. Personally, I am all too happy to see them tear the Republican Party to pieces. However, when they find out they do not want to conserve but overthrow traditional conservatives it will be interesting to see how far they will go with their lassie faire capitalism. They are against taxes because they see that their standard of living is going down and they blame it on the liberals. Many of the ingredients are in play for the dictionary definition of fascism.

Only one thing is lacking – a vibrant, charismatic leader. After World War 1 the Germans saw their standard of living go down and blamed it on the Versailles Treaty that ended the war. They saw ‘illegal immigrants’ and ethnic groups such as the Jews as the source of their plight. They still maintained their extreme nationalism after World War 1. Hitler seized the moment and played on their angry emotions. He rightly divined undercurrents that were making the Germans angry as hell and gave those emotions voice and clarity. He played up the ethnic antagonisms and voiced the ‘rational’ concerns of their anger. Like Sarah Palin, he spoke in thinly veiled terms of violence (i.e., locked and loaded, cleaning their guns, scope crosshairs, etc.). He played on the Germans anger with their current government and advocated throwing the bums out. He made the current German government the enemy which is not a conservative inclination. He appealed to the ‘true’ German national. He focused their anger on the liberals of his day the socialists and the communists (contrary to the obscurantism and revisionist history of Jonah Goldberg). He used the corporatism of his day to finance his campaign. There were some differences. He did not play on religious values as his megalomania would not allow it (although he did fan nationalism into a religious zeal). He gave the Germans a revisionist history of themselves.

I do not know if the Tea Party would follow this route even if a Hitler type came along but the Tea Party does need to clarify its ideology and unify its goal. They are ripe for the picking and these folks are not scholars. They distrust ‘liberal’ universities and to the contrary trust the antithesis in folks like Sarah Palin. I think the fascist tendency in this country has been redefined, revised, made virtuous and put lipstick on but the stench has been apparent since Reagan and growing. Fascism is really violent hate disguised. With a little push like a lower standard of living and a vibrant spokesperson it could grow legs. I hope that this is not the case. In any case, on the positive side, these folks will tear the Republican Party to pieces and if, as I have long thought, the religious element checks out the Republicans will be introduced to what the Democrats have been dealing with for decades, plurality.

Regarding the Proposed Mosque in New York City

Concerning this article:

http://www.msnbc.msn.com/id/38616979

Do people care about philosophical consistency these days? Timothy McVeigh was Catholic. There is a Catholic Church half a mile from the Murrah building. If you oppose the mosque in New York City why wouldn’t you oppose the Catholic Church in Oklahoma City? …unless there is something else at work here like racism…if you are a racist admit it…why play games around the issue? …same with the immigration issue…at least liberals have an ideology they can be straight about!

I guess if you love Ayn Rand, Absolute EGO, Darwinian politics/marketplace/ideas then might makes right. The rich, the powerful and big business are the real things and sophistry is the tool to get the masses to vote for you. Get your guns out folks. Evolution, climate change and Einstein (http://tpmmuckraker.talkingpointsmemo.com/2010/08/conservapedia_founder_takes_on_the_notorious_liber.php) are all liberal plots to keep folks from reading the Bible. We are putting the petal to the metal and going in full reverse to the dark ages. At least they knew how to treat the powerful!

– Thank You Rachel Maddow!
http://www.msnbc.msn.com/id/26315908/ns/msnbc_tv-rachel_maddow_show/#38650984

Regarding Illegal Immigrants

After doing some research on this issue I ran across these Dallas Morning News articles:

http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/080810dnmetbabies.2be9a7e.html

http://www.dallasnews.com/sharedcontent/dws/news/localnews/stories/061206dnmetmoms.d9b9669.html

and this politifact.com article:

http://www.politifact.com/truth-o-meter/statements/2010/aug/06/lindsey-graham/illegal-immigrants-anchor-babies-birthright/

I discovered that a major claim made by the authors about Parkland Hospital in Dallas is false according to Parkland Hospital. I know that the Dallas Morning News could care less but I did send this email to poltifact.com:

Dear Sirs,

In the aforementioned article you quoted the Dallas Morning News article by SHERRY JACOBSON as follows:

“To offer a concrete example, we found a 2006 article from the Dallas Morning News about Parkland Memorial Hospital in Dallas, a safety-net facility for poor residents. As many of 70 percent of the roughly 16,000 women giving birth annually at the hospital were immigrants who were in the U.S. illegally, according to one survey cited in the story.”

You called this “ample evidence” and a “concrete example”. Actually, Parkland Hospital stated this about the Dallas Morning News article:

“Misinformation about Parkland’s patient population
Numerous circulated reports state erroneously that a “patient survey” conducted in 2006 revealed that 70 percent of women who give birth at Parkland are “illegal immigrants.” The data in question, reported in an article in The Dallas Morning News, was a calculation during a three-month period of labor and delivery patients who did not qualify for Medicaid. Some of these patients lacked immigration documentation and some did not.”

Please see the entire press release here:

http://www.parklandhospital.com/pdf/GetTheFacts.pdf

I have had dealings with the Dallas Morning News and a little research into SHERRY JACOBSON might prove interesting so in the future I would highly recommend you really look hard at anything you get from the these folks.

Does this information tilt your Truth-O-Meter?

I was hoping they might care about the accuracy of their facts. In any case, it does appear that Republican rhetoric has once again bumped up against that nasty pest – the facts.

Hegel and the State of Exception (updated 8/18/10)

Thus I use the term ‘state of exception’ to make clear a set of political and juridical phenomena which we are trying to define. This term, which has come from the German tradition, is Ausnahmezustand. This term is extraneous to the French or Italian scholars who prefer to speak of …… [in a language I cannot understand] or in the Anglo-Saxon tradition the corresponding terms are ‘martial law’ or ’emergency powers.’ In this sense the choice of the term ‘state of exception’ involves taking a position with respect to the very nature of phenomena. For instance the ‘state of siege’ or ‘martial law’ expresses of course a relation to war, the state of war which has always been important in the origin of this institution. But they show in the final stage to show themselves to be inaccurate as to the fact and stage of the [illegible]. That’s why it is necessary to have a state of siege, political fictitious state of siege etc. The state of exception is not a special juridical order (the law which regulates the state of war,) rather it is a suspension of the whole juridical order itself which marks it for the limits, the threshold of the juridical order. It is for that reason that in public law there is not such a thing as a theory for the ‘state of exception.’ Although the proximity between the state of exception and sovereignty has been established by the German jurist Carl Schmitt in his 1922 book ‘Political Theology,’ his obvious definition of the sovereign as the ‘one who decides on the state of exception’ has been widely debated. Nevertheless the jurist could continue to ignore this phenomena and treat it more as a quaesti facti than as a true juridical problem. According to opinions which are very common, the ‘state of exception’ constitutes a point of imbalance between public law and politics which, like civil war, insurrection and resistance, is located in an ambiguous zone at the border between the juridical and the political. But precisely for that reason it seems to me that the question of the state of exception’s limits becomes particularly urgent.

Giorgio Agamben. The State of Exception – Der Ausnahmezustand. Lecture at European Graduate School. (1)
http://www.youtube.com/watch?v=dW5hl0-w7P8
http://www.egs.edu/faculty/giorgio-agamben/articles/the-state-of-exception/ (This is a transcript of the lecture but the link does not always work.)

Does the perpetuity of the state of exception necessitate the perpetuity of revolution? Thomas Jefferson thought that “no society can make a perpetual constitution or even a perpetual law” and “every law, naturally expires at the end of 19 years. If it is to be enforced longer, it is an act of force, and not of right.”(2) In excerpts from Giorgio Agamben’s article, “State of Exception” he states:

The textual basis of the conflict lies first of all in Article 1 of the constitution, which establishes that “the Privilege of the Writ of Habeas Corpus shall not be suspended, unless when in Cases of Rebellion or Invasion the public Safety may require it” but does not specify which authority has the jurisdiction to decide on the suspension (even though prevailing opinion and the context of the passage itself lead one to assume that the clause is directed at Congress and not the president). The second point of conflict lies in the relation between another passage of Article 1 (which declares that the power to declare war and to raise and support the army and navy rests with Congress) and Article 2, which states that “the President shall be Commander in Chief of the Army and Navy of the United States.” (3)

A Brief History of the State of Exception (4)
http://www.press.uchicago.edu/Misc/Chicago/009254.html

The state of exception is not merely an exception to the “Writ of Habeas Corpus” in the US Constitution which would apply only to American citizens. While Habeas Corpus has a history much longer than the history of the United States, the notions embodied in the US Constitution of democracy (rule by the people) goes all the way back to the Greeks. For Jefferson, the Constitution embodied a living constitution of a society of people committed to the Enlightenment ideals of individual freedom, equality and government by the people. John Locke, one of Jefferson’s mentors, wrote extensively on liberty and the social contract theory. (5) Immanuel Kant thought that a democratic government would make war less likely:

…if the consent of the citizens is required in order to decide that war should be declared (and in this constitution it cannot but be the case), nothing is more natural than that they would be very cautious in commencing such a poor game, decreeing for themselves all the calamities of war. Among the latter would be: having to fight, having to pay the costs of war from their own resources, having painfully to repair the devastation war leaves behind, and, to fill up the measure of evils, load themselves with a heavy national debt that would embitter peace itself and that can never be liquidated on account of constant wars in the future.

Perpetual Peace: A Philosophical Sketch (6)
http://www.constitution.org/kant/perpeace.txt

Jefferson thought that the US Constitution would be a model for the rest of the world. He hoped it would change the world for the better. However, he also feared that the Federalist tendency could erode the rule of the people which is why he advocated a revolution every 19 years. The fear of Jefferson was the fear of the state of exception. The state of exception includes but is not limited to Habeas Corpus. It really asks a larger question, “Can any constitution be constructed such that liberty and justice are essentially protected?” For Jefferson and Agamben the answer is, no. Jefferson, like Walter Benjamin, thought the only answer was a perpetual revolution of the people.

The whole constitutional question and in a larger sense, how any kind of constitution could democratically protect a nation from going to war, that would be “of the people”, seems to be an impossible task. This is a very good article concerning the US constitutional question on the initiation of war:

The war on terrorism and the modern relevance of the Congressional power to “declare war” (7)
http://www.allbusiness.com/legal/3585740-1.html

In the conclusion the author notes:

Where does all of this leave us? What, if anything, is left of the power of Congress to “declare War?” I submit that it is largely an anachronism, because the kind of aggressive uses of force historically associated with formal declarations of war, which the Framers seemed most concerned about checking with a congressional veto, have now been outlawed.

The defensive need for swift action in the case of aggression is a clear case in which the will “of the people” cannot be conclusively established before the commitment of troops and possibly years of war have been initiated by the Executive branch. The article cited above also establishes other nuances of this situation that appears to have also mystified the framers of our Constitution. The general thought based on the framers and their mentors was that defensive military action must reside with the Executive branch but offensive action should include the Congress. However, as the above article cites, this can get murky too. This seems to me to be a clear case where there is no democratic resolution possible and opens up the rift that is aimed at the notion of the state of exception.

The use of the state of exception has been used liberally by Democrats and Republicans but in recent times more liberally by Republicans. Here are some examples:

1. The Patriot Act of George Bush (8)
2. The suspension of a right to trial (Habeas corpus) at Guantánamo Bay, Cuba (9)
3. Dick Cheney’s defense of torture based on “national security” and Abu Ghraib (10)
4. Justification for the wars in Iraq and Afghanistan (10)

Wendell Kisner in his article, “Agamben, Hegel, and the State of Exception” discusses two thinker’s resolution to the problem:

Carl Schmitt’s approach is to try to annex the state of exception within the juridical order itself. The difficulty here is that one then has a juridical order that includes a provision regarding its own suspension (insofar as the state of exception suspends the rule of law), making it difficult to make sense of how a legal order can govern, ‘legally’, the state of exception in which that very order is deactivated, as well as how any legal limitation can be applied to it.

Agamben, Hegel, and the State of Exception (11)
http://www.cosmosandhistory.org/index.php/journal/article/view/77/154

Walter Benjamin’s approach is to always separate the state of exception from the juridical order, thereby ‘unmasking’ (as Agamben puts it) the ‘mythico-juridical violence’ that attempts to unify them in the service of the authoritarian state (SE 63). Benjamin wrote shortly before his death that ‘the tradition of the oppressed teaches us that the ‘state of exception’ is the rule’ (cited in SE 57). Agamben follows Benjamin here and suggests that, because the state of exception is the ‘anomic’ space from which any legal order emerges at all, it is no longer even possible to return to liberal democracy: ‘From the real state of exception in which we live, it is not possible to return to the state of law, for at issue now are the very concepts of “state” and “law”’ (SE 87). Regarding the two possibilities exemplified by Schmitt and Benjamin, he then concludes,

To live in the state of exception means to experience both of these possibilities and yet, by always separating the two forces, ceaselessly to try to interrupt the working of the machine that is leading the West toward global civil war (SE 87).

And thus:

The only truly political action, however, is that which severs the nexus between violence and law. And only beginning from the space thus opened will it be possible to pose the question of a possible use of law after the deactivation of a device that, in the state of exception, tied it to life (SE 88).

As mentioned above, beginning from the state of exception, it is not predetermined which way it will go and so the risk is great. Will revolution bring a more just political order or a more oppressive totalitarianism?

Agamben, Hegel, and the State of Exception (11)
http://www.cosmosandhistory.org/index.php/journal/article/view/77/154

The debate of the state of exception seriously puts our constitutional government into question. Can the Constitution be suspended in times of “emergency”? What constitutes an emergency? Couldn’t this be a slippery slope that could be used for looser and looser situations and ultimately make a mockery of “due process”? Would the Constitution then be simply smoking mirrors for totalitarianism? Could Plato have this in mind when he wrote in “The Republic”

This and no other is the root from which a tyrant springs; when he first appears above ground he is a protector.

http://www.constitution.org/pla/republic.txt

Dr. Kisner suggests that Hegel poses a possible way out of the dilemma. He first seems to make the suggestion that the distinction between constitutional order and the state of exception is a necessary kind of symbiotic relationship that is brought about by limitation and the refusal of limitation which he and Hegel call “negative freedom”. Writing of freedom he states:

Insofar as that demand requires abstraction from all particular determinacy in order to first become self-determining and thereby free, however, it requires abstracting from the very historically determinate conditions of its own appearance at a particular time and place in history.

Agamben, Hegel, and the State of Exception (11)
http://www.cosmosandhistory.org/index.php/journal/article/view/77/154

He quotes Hegel:

The will on one side is the possibility of abstraction from every aspect in which the I finds itself or has set itself up. It reckons any content as a limit, and flees from it. This is one of the forms of the self-direction of the will, and is by imaginative thinking insisted upon as of itself freedom. It is the negative side of the will, or freedom as apprehended by the understanding. This freedom is that of the void, which … becoming actual it assumes both in politics and religion the form of a fanaticism, which would destroy the established social order, remove all individuals suspected of desiring any kind of order, and demolish any organization which then sought to rise out of the ruins. Only in devastation does the negative will feel that it has reality

Agamben, Hegel, and the State of Exception (11)
http://www.cosmosandhistory.org/index.php/journal/article/view/77/154

It is almost as if we must create order to destroy it, to free ourselves from it as freedom dictates. Thus, the state of exception is a necessity of freedom. The will is on an essential mission to destroy itself to concretize its freedom. Order or the Forms (peros) must undo itself in chaos (aperion). The notion of the individual necessitates its destruction:

In archaic Roman law, the “state of exception” describes the juridical situation of homo sacer (sacred man), a human being who — for one reason or another — “may be killed but not sacrificed,” that is, someone who is no longer included in human society nor even covered by its most basic protections. Condemned to exist in a state of exception, the homo sacer can be killed by anyone, without a murder being committed. To Agamben, the striking thing is that this situation (which concerns the extra-juridical order) was inscribed within Rome’s juridical order. The rule and the exception to it became confused, indistinct: the exception now becomes the rule. The homo sacer is not simply excluded from society; he or she is also included into its “constitution,” its legal code. But he or she is included only as “bare life,” only as a body, a mere creature without political or “human” rights of any kind. This was a major historical development, which constituted “the first paradigm of the political realm of the West.” Prior to that, bare life (zoe in Greek) had not been “included in/excluded from” the politico-juridical realm, which merely concerned itself with bios (living in the polis as a citizen).

The Secret of George W. Bush’s Power: the State of Exception
http://www.notbored.org/state-of-exception.html

Thus “bare life reaches its maximum indeterminacy”:

The immediately biopolitical significance of the state of exception as the originary structure in which law encompasses living beings by means of its own suspension emerges clearly in the ‘military order’ issued by the President of the United States on November 13, 2001, which authorized the ‘indefinite detention’ and trial by ‘military commissions’ (not to be confused with the military tribunals provided for by the law of war) of noncitizens suspected of involvement in terrorist activities […] What is new about President Bush’s order is that it radically erases any legal status of the individual, thus producing a legally unnamable and unclassifiable being. Not only do the Taliban captured in Afghanistan not enjoy the status of POWs as defined by the Geneva Convention, they do not even have the status of persons charged with a crime according to Americans laws. Neither prisoners not persons accused, but simply ‘detainees,’ they are the object of a pure de facto rule, of a detention that is indefinite not only in the temporal sense but in its very nature as well, since it is entirely removed from the law and from judicial oversight. The only thing to which it could possibly be compared is the legal situation of the Jews in the Nazi Lager (camps), who, along with their citizenship, had lost every legal identity, but at least retained their identity as Jews. As Judith Bulter has effectively shown, in the detainee at Guantanamo, bare life reaches its maximum indeterminacy.

State of Exception (12)
http://www.notbored.org/state-of-exception.html (quoted here)

In “negative freedom”, freedom is an anarchism that separates form and content. It has no content, no order to replace the limitations of constitution and exception with; it can only tear away at the ground, the foundation of law within the form of law. This sounds like a Derridian deconstruction but Dr. Kisner relegates post-modernism to a maze of relativism that apparently must feast on the absolute as exception feeds on the Constitution.

In true Hegelian fashion Dr. Kisner retrieves a positive from a negative:

Therefore negative freedom is a standing contradiction: its very character as negation of limit is itself its limit. Alternatively stated, its very flight from all content is its content. The abstractive move of the state of exception itself is its own positive character. But this in turn means that negative freedom negates itself as absence of limits. It is defined as absence of limits. But insofar as this is its limit, this negates its character as absence of limits. We do not need to merely oppose a better concept of freedom to it, as do Rousseau and Kant. Negative freedom is not negated by some other concept of freedom but by itself. To put it another way, the state of exception is not overcome by some other juridical order that is imposed upon it or which has to annex it in advance. Rather, its own negativity as the suspension of all normativity/juridicality is itself negated by the positive character that this very negation is.

Insofar as it negates all limit, negative freedom is negative. But insofar as this flight from limit is its own limit, it has a positive character. Thus insofar as the will is nothing other than the willing of freedom, the will now wills this positive character. The step is certainly minimal, but a subtle shift has occurred from willing the absence of limit to willing a limit, even if that limit be nothing other than the very willing of the absence of limit. We’ve moved from a will that wills nothingness to one that wills its own positive character, and hence from willing nothing to willing something.

But this is self-determination in its most germinal form. The abstraction from all limit abstracts from every externally imposed or pregiven determinacy. But that very movement reveals its own determinacy as such abstraction, and hence it is only now in a position to will itself as freedom. The limit it now wills is its own limit rather than a pregiven one, and hence it has ‘given itself’ that limit or, to look at it another way, is submitting to the limit that it is. Insofar as it submits to its own limit, it gives its limit to itself or is self-determining. Thus from out of the suspension of law a self-imposed law emerges. This is not yet the fully explicit legal system of a juridical order, of course, but is the minimal limit out of which any such legal order must emerge if it is to be self-determining and thereby free. It is from here that we can get from Rousseau’s natural freedom to a freedom defined as ‘obedience to the law one has prescribed for oneself’.

Agamben, Hegel, and the State of Exception (11)
http://www.cosmosandhistory.org/index.php/journal/article/view/77/154

So the state of exception is the movement of spirit that creates content, it historicizes a Constitution to overturn it. When we understand this conundrum we no longer are externally compelled to keep the law, we can become the law; have the law written in our hearts as Paul might suggest.

Freedom has here gained a greater degree of concreteness over the merely abstract universality characterizing a will that, in rejecting all limitation, winds up being an empty formality devoid of content. An abstract universal is one that is other than its particular content—the separation of form from content is what makes it abstract. Once we take the step to a will that wills itself, to a freedom that has itself for its content, then we have a concrete universal—the concrete universality in which the form of freedom is the same thing as its content. What the will henceforth must do in order to be free is not to withdraw from all determination but to determine itself. A freedom that wills itself universally is what Hegel calls a ‘right’.

Agamben, Hegel, and the State of Exception (11)
http://www.cosmosandhistory.org/index.php/journal/article/view/77/154

It seems to me that the notion of “externally imposed” gets added into the argument at a critical point such that now the argument is shifted from a sort of viscous circle between Constitution and state of exception to a conflict between will and “negative freedom” or by extension between me and the other. The “external” would then be “negative freedom”, the other. Reminiscing of Emanuel Levinas, the other undoes the totalizing of will, has meaning beyond “me”, beyond being (ontology) – meontology (me-on). If the other turns out to be me then the conflict is resolved and we can all walk away happy – Tat tvam Asi. However, can we think of a resolution in terms of the self-determination? How does this change the four examples I cited above of the state of exception? Doesn’t this internalization of the conflict at the least enable a sort of bourgeois perpetuation of the status quo? Perhaps a Hegelian, guru-like state of enlightenment ushers in a hard earned ‘right’ but have all the issues been resolved? Even if Hegel is absolutely right and has concretized the universal, is everything done? We still have Dick Cheney and Abu Ghraib. Have we silenced the cry of those victims or at least made them “understandable”? Do we have to misunderstand Hegel to care about the conflict in the Constitution and the state of exception? Do we have to lapse into an external (negative freedom) versus internal (will) dialectic?

What impact does this, “What the will henceforth must do in order to be free is not to withdraw from all determination but to determine itself” have on the original problem of Constitution and state of exception? Should we take this as an admonition not to withdraw from the dilemma but to approach it with a deeper understanding of how we “willed it thus” as Nietzsche might suggest? Is the suggestion that a shift from what “they” are doing (and the moral high ground it affords) to what I am doing as self-determined somehow erases the dilemma? Does a “concrete universal” change or alter the dilemma in some discernable way? What results from understanding the cause?

While Dr. Kisner asks us to consider the real nature of the dilemma and thus find some sort of resolve we could also ask, “What does it matter?” What effect is produced by asserting the cause? It certainly does not make Guantánamo go away. Perhaps it does help erode our concern over doing something about Guantánamo. It seems to me that a dialectic is called for on the external and internal. However, that could easily land us into Cartesian Dualism, the old mind/body, subject/object dilemma. Can we use a dualism (external/internal) to resolve a dualism (Constitution/State of Exception) or have we simply obscured and shifted the argument cleverly? Are we essentially obligated by the suffering of the other or are we only called to internalize it? What kind of world-philosophy would internalize the dilemma or as Levinas might suggest totalize it? Haven’t we lapsed into a sort of self-determining totalization albeit of our own essential making? It almost looks like an anti-materialization, a resolution of Spirit, self-determination gone absolute. Spirit has gathered itself as itself and as Paul suggests “For from him and through him and to him are all things” with “Him” being us – an Occidental, Vedantic koan. It just seems to me that out in the hinter land howling wolves still mark the lost graves of the damned.

It also appears that a resolution to the state of exception as “self-determining” misunderstands the violence that Agamben and Benjamin are aiming at in the tension of law and lawlessness (anomie). Law and violence are not subsumed or synthesized (aufhebung, lifted up, sublated) such that they are both preserved in their transformation. The brute facts of violence, its horrific immediacy, its irrecoverable loss, its senselessness nevertheless retain their significance in relation to law. Without law, violence would merely be a random act of nature without consequences, without significance. Both law and violence are essential to each other. The power of the Executive inchoately, essentially carries with it, the intent of the despot for war and violence. It cannot be regulated by law or constitution but must exist alongside it as a necessary component of a democracy. Its violence and potential for abuse cannot be dulled or transformed unless invasion, torture, collateral damage and war can be thought in different terms that violate their meaning. They can be totalized. By totalized, I mean put into a higher context that essentially loses its immediate impact, its brute force (allusion to Derrida – force of law). Totalizing causes these horrific acts to lose something about them that we should not and cannot lose (without violating it beyond recognition). I find Levinas’ discussion of the saying and the said to have an odd kind of ambience here.

The violence of the said, the totalizing of the said, that narcissistically substitutes itself for saying. It violently abolishes the anachrony of the other. In so doing it does not transform the saying but re-presents it as determined. As such, it inscribes the other into its own orb, the orb of sameness. In this moment the other is negated, lost, obviated and violence asserts itself once again. However, the face of violence is now bourgeois; the slave is property, the Jews as “bare life reaches its maximum indeterminacy”. The result of this is that ethics (as Levinas thinks it) cannot be transcended, synthesized or lifted up beyond itself. If it is “self-determined” it is really only lost and relegated to the hinter land. It is interesting to note that if we were drawing parallels the said would be related to law and the saying would be related to violence. Could it be that the interruption of the face of the other violently displaces me, breaks the plastic molds I make of the face of the other (in Levinas’ words)? Horrific violence is a result of the loss of Ethics (as Levinas envisions it). Could it be that death is the final violence that disrupts the said, the nomus (law) of being? Would this mean that violence as the disruption of totality turns in on itself and lashes out at the absolute alterity (otherness) of the other in rage and lawlessness?

With archaic passion for survival the will, the Executive, is pitched in a desperate effort to re-establish itself, its dominance, it takes on a psychopathic revenge for life. The force of non-being (me-on) is re-presented as the abyss, the void. The disruption of the other that puts me and mine into question rolls in as a fog over the void. A pathological need washes over beings, the totality of ‘Being’, to uphold order over chaos, to reestablish law over lawlessness, totality over alterity, and restore ‘Being’ from its corrosive demise. The heroic as the Executive must gather itself. In the face of absolute threat, the Executive is roused with infinite passion to reclaim its origin (arche), its right to be as self-determined. Agamben makes the state of exception sound like a vortex, a black hole, a center that defies all the known laws of physics, is void of any real determination including “self-determination”:

This debate takes place in the same zone of anomie, of lawlessness that on one side that must be kept at any price in relation to the juridical order and on the other hand must be freed on the contrary from this relationship. What is at stake in this zone of anomie is the relationship between violence and the law. That is to say that the state of violence is a cipher of human action. To Schmitt’s gesture that tries each time to re-scribe the violence in the juridical context Benjamin responds by showing to violence for pure revolutionary violence in existence outside any juridical order. Interesting for some reason you have to understand the fight for anomie, for lawlessness, seems to be, for Western politics and juridical tradition as decisive for Western metaphysics (the child’s struggle about being ….[indistinct]) To pure existence as a physical wager corresponds here pure violence as the ultimate political object. To the ontological strategy that tries to capture being in lawleess language corresponds to a strategy of exception which must establish and conserve the relationship between violence and law. It is as if both law and lawless language are in need of an anomic order (a logic zone of suspension) in order to ground their reference to world and life. Law seems to be able to exist only by grasping anomic lawlessness in the same way that language can only exist by grasping a [known quest?]. In both cases, the conflict concerns (a very peculiar) empty space. On one hand anomie, the juridical void, and on the other pure being being void of any real determination. For the juridical order the empty space is precisely the state of exception as its constitutive action.
Giorgio Agamben. The State of Exception – Der Ausnahmezustand. Lecture at European Graduate School. (1)
http://www.youtube.com/watch?v=dW5hl0-w7P8
http://www.egs.edu/faculty/giorgio-agamben/articles/the-state-of-exception/ (This is a transcript of the lecture but the link does not always work.)

Ethics as the absolute alterity of the face of the other must always return as tides on the sands to the desperate battle for self-determination, for any kind of determination. The Hegelian lifting up (13) of terms is the transformation of alterity to sameness. It is the re-establishment of self, the self AS self and other, law and lawlessness, judicial and Executive. Otherness must essentially drop out and thus, violence is destined to be the future of ‘Being’. The tides of once again, samsara are fates from the future that can only mercifully be absolved in the finality of death. Tragically, in the land of the living, the progeny of the past is the desperate violence for the eradication of the other.

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Notes

(1) August 2003. Transcription by: Anton Pulvirenti
(2) “no society can make a perpetual constitution or even a perpetual law. The earth belongs always to the living generation.”…”Every constitution then, and every law, naturally expires at the end of 19 years. If it is to be enforced longer, it is an act of force, and not of right.” Thomas Jefferson To James Madison Paris, Sep. 6, 1789
http://odur.let.rug.nl/~usa/P/tj3/writings/brf/jefl81.htm
(3) Even if congress does need to approve exceptional cases and keep the executive branch on a “short leash” look at what happened when the congress approved the intervention in Iraq (here are the votes http://mixermuse.com/blog/2010/01/02/nearly-every-member-of-congress-voted-for-intervention-in-iraq/). As the votes indicate Democrats had more problems with it than Republican’s but many Democrats voted for it for purely political reasons. So even though theoretically the legislative branch (and the judicial branch by extension) has reasonable checks and balances to executive abuse the reality is a very different story. I remember the intervention in Iraq and Afghanistan as a congressional “rubber stamp” to Bush. In times where the president commits us to war with troops already engaged in conflict (without official decree of war) most politicians do not display a concern for the Constitution but a concern for their political survival (I note Obama’s recent statement on the mosque in New York as a notable exception). History is replete with examples of how both parties were more concerned with their jobs than balancing abuses of the executive branch. It seems to me that this is a giant loop hole that effectively dismantles Constitutional mechanisms and indicts our whole democratic, Constitutional form of government.
(4) Excerpt from pages 11-22 of State of Exception by Giorgio Agamben, translated by Kevin Attell, published by the University of Chicago Press. ©2004 by the University of Chicago. All rights reserved. This text may be used and shared in accordance with the fair-use provisions of U.S. copyright law, and it may be archived and redistributed in electronic form, provided that this entire notice, including copyright information, is carried and provided that the University of Chicago Press is notified and no fee is charged for access. Archiving, redistribution, or republication of this text on other terms, in any medium, requires the consent of the University of Chicago Press.
(5) Locke, John. Second Treatise on Government (1689)
(6) Perpetual Peace: A Philosophical Sketch by Immanuel Kant
(7) By Turner, Robert F
Publication: Harvard Journal of Law and Public Policy
Date: Monday, April 1 2002
(8) “Another thing to do with the relationship between the ‘state of exception’ and law and life is the immediately biopolitical meaning of the ‘state of exception.’ It is an original structure by means of which law includes in itself living through this sort of suspension. I think it appears clearly in the military order declared by the President of the United States on November 24, 2001 which auhtorised the indefinite detention and trial by military commissions (not to be confused with the military courts)of citizens suspected of being involved in terrorist activities. The US Patriot Act was voted in by Congress in May, 2002, it allowed the Attorney General to detain anyone suspected of an activity which would threaten the national security of the United States. But in this case the alien had to be, after 7 days, either expulsed or accused of any violation of the law. So it was new in the military order of President Bush to completely cancel any juridical status of an individual. It thus produced a human being juridically unable (to defend him/ herself). Taliban capture in Afghanistan cannot be protected by the status of a prisoner of war according to the Geneva Convention. They cannot be accused even according to American law. Neither prisoner nor accused but only detainees are the object of a purely factual sovereignty completely outside the law. The only possible comparison is the juridical situation of the Jew in the Nazi Lager. They had lost not only citizenship but any juridical identity.”
Giorgio Agamben. The State of Exception – Der Ausnahmezustand. Lecture at European Graduate School. August 2003. Transcription by: Anton Pulvirenti
http://www.egs.edu/faculty/giorgio-agamben/articles/the-state-of-exception/
(9) “Why suspend the habeas corpus in insurrections and rebellions? The parties who may be arrested may be charged instantly with a well defined crime; of course, the judge will remand them. If the public safety requires that the government should have a man imprisoned on less probable testimony in those than in other emergencies, let him be taken and tried, retaken and retried, while the necessity continues, only giving him redress against the government for damages. Examine the history of England. See how few of the cases of the suspension of the habeas corpus law have been worthy of that suspension. They have been either real treasons, wherein the parties might as well have been charged at once, or sham plots, where it was shameful they should ever have been suspected. Yet for the few cases wherein the suspension of the habeas corpus has done real good, that operation is now become habitual and the minds of the nation almost prepared to live under its constant suspension.” –Thomas Jefferson to James Madison, 1788. ME 7:97

“The following [addition to the Bill of Rights] would have pleased me:…No person shall be held in confinement more than days after he shall have demanded and been refused a writ of habeas corpus by the judge appointed by law, nor more than days after such a writ shall have been served on the person holding him in confinement, and no order given on due examination for his remandment or discharge, nor more than hours in any place of a greater distance than miles from the usual residence of some judge authorized to issue the writ of habeas corpus; nor shall that writ be suspended for any term exceeding one year, nor in any place more than miles distant from the station or encampment of enemies or of insurgents.” –Thomas Jefferson to James Madison, 1789.
(10) See http://www.markdanner.com/orations/show/213?class=related_content_link
The Politics of the Forever War: Terror, Rights, and George Bush’s State of Exception (transcript)
The 2006 Remarque Lecture, New York University
by Mark Danner
(11) Cosmos and History: The Journal of Natural and Social Philosophy, Vol 3, No 2-3 (2007)
(12) Stato di eccezione (2003, translated into English as State of Exception by Kevin Attell and published by Stanford University Press in 2005)
Giorgio Agamben
State of Exception
Translated by Kevin Attell
©2005, 106 pages
Cloth $30.00 ISBN: 978-0-226-00924-7
Paper $13.00 ISBN: 978-0-226-00925-4
(13) Even Hegel died and was not lifted up as some of his disciples would like ;-).

Please note that this article will be updated and changed as I do more research and hopefully, get feedback from others – everything on this site is a work in progress.