STATE DEPT. RETIREE ACCUSED OF SPYING

(Washington Post Staff Writers) A former State Department official with top-secret security clearance and his wife have been charged with spying for Cuba over the past three decades, passing information by shortwave radio and correspondence exchanged in local grocery stores, federal prosecutors said. READ MORE

TAX WOULD MOVE MICROSOFT JOBS OFFSHORE

(Bloomberg) -- Microsoft Corp. Chief Executive Officer Steven Ballmer said the world’s largest software company would move some employees offshore if Congress enacts President Barack Obama’s plans to impose higher taxes on U.S. companies’ foreign profits. READ MORE

FORMER COUNTRYWIDE CEOCHARGED WITH FRAUD

MOZILO'S "FRIENDS OF ANGELO" PROGRAM
GAVE VIP LOANS TO FAVORED LAWMAKERS

WASHINGTON TIMES: The Securities and Exchange Commission has charged former Countrywide Mortgage CEO Angelo Mozilo and two others with insider trading. The charges allege Mozilo made $140 million selling his stock while telling investors that the company dealt mostly in stable mortgages. Countrywide Mortgage was one of the leading subprime mortgage lenders in the country. . . .READ MORE

THE HILL: Charges against Mozilo could lead to renewed scrutiny of current and former government officials involved in his "Friends of Angelo" program. Under this program, the officials, which included Sens. Chris Dodd (D-Conn.) and Kent Conrad (D-N.D.), received more favorable borrowing terms than did other Countrywide customers. Both Senators have denied any wrongdoing but the controversy has haunted Dodd, especially. . . .READ MORE

MORE COVERAGE AT NAKED CAPITALISM

GOLD SURGES ON CONCERNS ABOUTINFLATION, DEFICIT SPENDING

CNN/MONEY: Gold prices leaped to a near-record high Thursday on news of a weak dollar and inflationary concerns. The price of the precious metal could break $1,000. Tom Pawlicki, a precious metals analyst at MF Global, said "Budget deficits create worries in the market that more money will have to be printed...The dollar will suffer in this environment." . . .READ MORE

U.S. CONTEMPLATING FINANCIALSANCTIONS AGAINST NORTH KOREA

REUTERS: The United States has told the government of South Korea that is preparing financial sanctions against North Korea for weapons trading and counterfeiting, according to the South Korean newspaper Chosun Ilbo. A U.S. delegation, led by Deputy Secretary of State James Steinberg, has been in South Korea on a four day visit and includes a Treasury Department official who oversaw the last round of financial punishments against North Korea for counterfeiting and other offenses. . . .READ MORE

CHRYSLER BANKRUPTCYHEADS TO COURT

REUTERS: A U.S. appeals court will hear arguments on Friday that the sale of Chrysler to Italian company Fiat and the U.S. government violated bankruptcy law and should be halted. Investors and government officials will be watching the proceedings closely as the decision could. bear upon the ongoing bankrputcy of General Motors. . . .READ MORE

300 WORDS OR LESS: 06.05.09

Accretion

Among the problems that have led to the present "crisis administration" is the accretion of power in Washington, DC. These United States are decaying into The United State. The effect is seen most profoundly in the Legislative and Executive branches, though the sheepishness of the Judicial branch dumbly rounds out the problem.
The Sixteenth Amendment of February 3, 1913, short-circuited the political chain of command, permitting the Congress to tax individuals. This is foundational to the contemporary situation where small numbers of officials make decisions in committees that have profound economic impact on people of other constituencies, a watered-down version of taxation without representation.
During the 2008 campaign, it came as no surprise that the Democrat candidate favored a government solution to "the sub-prime mortgage crisis." It was a profound disappointment that the Republican candidate offered to have the Treasury Secretary take charge and work with banks to pursue relief. State Governors: chopped liver?
I've three specific suggestions to offer, a la the Federalism Amendment:

• Every Congress must win approval from two thirds of the state legislatures in the 18th month of the Congress, or none of the members of the Congress are permitted to run for re-election for their current seat. Obviate the prisoners dilemma of voters, who, under the current rules, are inclined to build seniority by re-electing nitwits.
• All committee assignments in the Congress shall be randomized. Sequential assignments to a given seat disallowed. Bring fresh eyes to problems. The certainty of turning over the job to an unknown pair of eyes motivates integrity.
• Strike Amendment 16. Congress decides a budget. Bills the states. States failing to deliver have a sales tax to make up the difference applied. The Federal government is disallowed deficit spending except in case of declared war.

-- CLS