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09/20/2005:

"Outpouring of relief cash raises fear of corruption and cronyism"

The outpouring of billions of dollars in federal relief money to victims of Hurricane Katrina is raising concerns about the risks of corruption and cronyism, with Bush administration critics expressing the fear that the Gulf coast, like Iraq, could become another grand experiment in neoconservative ideology.

Already, no-bid contracts have been awarded to major Republican contributors including Kellogg, Brown & Root, the subsidiary of Vice President Dick Cheney's old company Halliburton. President Bush has unilaterally lifted a protection law that makes it possible for contractors to pay sub-minimum wage rates to reconstruction workers.

Among provisions releasing more than $60bnto the disaster area meanwhile, is a rise in the limit on government-issued credits cards from $25,000 to $250,000. One Republican Senator, and the Democrats, have denounced this provision as outrageous and open to abuse.

Critics have been particularly disturbed by reports that Karl Rove, President Bush's political brain who has no experience in disaster relief or urban planning, may be put in charge of the reconstruction effort. Since his speciality is fighting and winning elections, the concern is that he will want to redraw the electoral map of southern Louisiana and Mississippi before providing new homes or electricity and water.
independent.co.uk

Clinton Launches Withering Attack on Bush on Iraq, Katrina, Budget
On the US budget, Clinton warned that the federal deficit may be coming untenable, driven by foreign wars, the post-hurricane recovery programme and tax cuts that benefitted just the richest one percent of the US population, himself included.

"What Americans need to understand is that ... every single day of the year, our government goes into the market and borrows money from other countries to finance Iraq, Afghanistan, Katrina, and our tax cuts," he said.

"We have never done this before. Never in the history of our republic have we ever financed a conflict, military conflict, by borrowing money from somewhere else."

Clinton added: "We depend on Japan, China, the United Kingdom, Saudi Arabia, and Korea primarily to basically loan us money every day of the year to cover my tax cut and these conflicts and Katrina. I don't think it makes any sense."