Currency Consequences

"Dollar Falls on Fears of U.S. Deficits" -- Paul Blustein and Jonathan Weisman in The Washington Post, 11/5/04:

The dollar continued its decline in global currency markets yesterday, intensifying worries among some economists that mounting U.S. budget and trade deficits could send the U.S. currency into a tailspin.

But John B. Taylor, the Treasury undersecretary for international affairs, defended the Bush administration view that the deficits pose no danger of a dollar collapse. He issued a detailed rebuttal of what he called "scare stories."

The dollar fell yesterday to within a fraction of a cent of its all-time low against the euro of $1.2930 , trading as low as $1.2898 before rallying slightly to close at $1.2867. It fell modestly against the Japanese yen, and continued a sharp slide against the Canadian dollar, which rose to 83 U.S. cents yesterday for the first time in 12 years.

It was the second straight day that the dollar has fallen despite a surge in the stock market, continuing a trend that began in early October when it started slipping against the currencies of major U.S. trading partners. The declined rekindled the fears of some analysts that the dollar could be headed for a severe sell-off unless the White House and Congress make a major effort to shrink the budget gap.

"As the dust settles after the U.S. elections, the one theme that is developing is the growing recognition [in the markets] of the need for more dollar depreciation," economists at J.P. Morgan told clients yesterday, citing as one major reason the likelihood that "there will be no serious new policies to trim the U.S. budget deficit."

Where Insurgents’ Explosives Came From

"Soldiers Describe Looting of Explosives" -- Mark Mazzetti in The Los Angeles Times, 11/4/04:

WASHINGTON — In the weeks after the fall of Baghdad, Iraqi looters loaded powerful explosives into pickup trucks and drove the material away from the Al Qaqaa ammunition site, according to a group of U.S. Army reservists and National Guardsmen who said they witnessed the looting.

The soldiers said about a dozen U.S. troops guarding the sprawling facility could not prevent the theft because they were outnumbered by looters. Soldiers with one unit — the 317th Support Center based in Wiesbaden, Germany — said they sent a message to commanders in Baghdad requesting help to secure the site but received no reply.

The witnesses' accounts of the looting, the first provided by U.S. soldiers, support claims that the American military failed to safeguard the munitions. Last month, the International Atomic Energy Agency — the U.N. nuclear watchdog — and the interim Iraqi government reported that about 380 tons of high-grade explosives had been taken from the Al Qaqaa facility after the fall of Baghdad on April 9, 2003. The explosives are powerful enough to detonate a nuclear weapon.

During the last week, when revelations of the missing explosives became an issue in the presidential campaign, the Bush administration suggested that the munitions could have been carted off by Saddam Hussein's forces before the war began. Pentagon officials later said that U.S. troops systematically destroyed hundreds of tons of explosives at Al Qaqaa after Baghdad fell.

Asked about the soldiers' accounts, Pentagon spokeswoman Rose-Ann Lynch said Wednesday, "We take the report of missing munitions very seriously. And we are looking into the facts and circumstances of this incident."

The soldiers, who belong to two different units, described how Iraqis plundered explosives from unsecured bunkers before driving off in Toyota trucks.

The U.S. troops said there was little they could do to prevent looting of the ammunition site, 30 miles south of Baghdad.

"We were running from one side of the compound to the other side, trying to kick people out," said one senior noncommissioned officer who was at the site in late April 2003.

"On our last day there, there were at least 100 vehicles waiting at the site for us to leave" so looters could come in and take munitions.

"It was complete chaos. It was looting like L.A. during the Rodney King riots," another officer said.

He and other soldiers who spoke to The Times asked not to be named, saying they feared retaliation from the Pentagon.

A Minnesota television station last week broadcast a video of U.S. troops with the 101st Airborne Division using tools to cut through wire seals left by the International Atomic Energy Agency, or IAEA, at Al Qaqaa, evidence that the high-grade explosives remained inside at least one bunker weeks after the war began.

The video was taped April 18, 2003, while soldiers from the 101st Airborne searched Al Qaqaa for chemical and biological weapons. The IAEA had placed seals on nine of the bunkers at the complex, where inspectors had found high-grade explosives. Other bunkers contained more conventional munitions.

After opening bunkers, including one containing the high-grade explosives, U.S. troops left the bunkers unsecured, the Minnesota station reported.

According to the four soldiers — members of the 317th Support Center and the 258th Rear Area Operations Center, an Arizona-based Army National Guard unit — the looting of Al Qaqaa occurred over several weeks in late April and early May.

The two units were stationed near Al Qaqaa at a base known as Logistics Support Area (LSA) Dogwood. Soldiers with the units said they went to the ammunition facility soon after the departure of combat troops from the 101st Airborne Division.

The soldiers interviewed by The Times could not confirm that powerful explosives known as HMX and RDX were among the munitions looted.

One soldier said U.S. forces watched the looters' trucks loaded with bags marked "hexamine" — a key ingredient for HMX — being driven away from the facility. Unsure what hexamine was, the troops later did an Internet search and learned of its explosive power.
Sorry Not Sorry

"We found out this was stuff you don't smoke around," the soldier said.

According to a list of "talking points" circulated by the Pentagon last week, when U.S. military weapons hunters visited Al Qaqaa on May 8, 2003, they found that the facility "had been looted and stripped and vandalized." No IAEA-monitored material was found, the "talking points" stated.

A senior U.S. military intelligence official corroborated some aspects of the four soldiers' accounts. The official who tracked facilities believed to store chemical and biological weapons — none was ever found in Iraq — said that Al Qaqaa was "one of the top 200" suspect sites at the outset of the war.

Despite the stockpiles at the site, no U.S. forces were specifically assigned to guard Al Qaqaa — known to U.S. forces in Iraq as Objective Elm — after the 101st Airborne left the facility.

Members of the 258th Rear Area Operations Center, responsible for base security at nearby LSA Dogwood, came across the looting at Al Qaqaa during patrols through the area. The unit, which comprised 27 soldiers, enlisted the help of troops of the 317th Support in securing the site, the soldiers said.

The senior intelligence official said there was no order for any unit to secure Al Qaqaa. "No way," the officer said, adding that doing so would have diverted combat resources from the push toward Baghdad.

"It's all about combat power," the officer said, "and we were short combat power.

"If we had 150,000 soldiers, I'm not sure we could have secured" such sites, the officer said. "Securing connotes 24-hour presence," and only a few sites in Baghdad were thought to warrant such security.

Troops of the two units went to Al Qaqaa over a week in late April but received no orders to maintain a presence at the facility, the soldiers said. They also said they received no response to a request for help in guarding the facility.

"We couldn't have been given the assignment to defend a facility unless we were given the troops to do it, and we weren't," said one National Guard officer. "[Objective] Elm being protected or not protected was not really part of the equation. It wasn't an area of immediate concern."

Some confusion came in late April 2003 when U.S. commanders in Baghdad reassigned military responsibility for the area surrounding Al Qaqaa from Army units to the 1st Marine Division, which had participated in the assault on Baghdad and eventually took control over much of southern Iraq.

According to Marine sources, when the 1st Marine Division took over, the combat unit didn't have enough troops to secure ammunition depots scattered across central and southern Iraq. The Al Qaqaa facility, they said, was of particular concern.

"That site was just abandoned by the 101st Airborne, and there was never a physical handoff by the 101st to the Marines. They just left," said a senior officer who worked in the top Marine command post in Iraq at the time. "We knew these sites were being looted, but there was nothing we could do about it."

During the same period, Marines came across another massive ammunition depot near the southern Iraqi town of Diwaniya, the senior officer said. They sent a message to the U.S. headquarters in Baghdad seeking guidance on how to keep the site from being plundered.

Commanders in Baghdad responded that the Marines should attempt to blow up the depot. The Marine officers responded that the site was too large to demolish.

Commanders in Baghdad "didn't have a good response to that," the officer said. "There was no plan to prevent these weapons from being used against us a year later."

Post Mortem

arbus_hand_grenade.jpg

"An Electoral Affirmation of Shared Values" -- Todd Purdum, The New York Times, 11/3/04:

It was not a landslide, or a re-alignment, or even a seismic shock. But it was decisive, and it is impossible to read President Bush's re-election with larger Republican majorities in both houses of Congress as anything other than the clearest confirmation yet that this is a center-right country - divided yes, but with an undisputed majority united behind his leadership.

Surveys of voters leaving the polls found that a majority believed the national economy was not so good, that tax cuts had done nothing to help it and that the war in Iraq had jeopardized national security. But fully one-fifth of voters said they cared most about "moral values" - as many as cared about terrorism and the economy - and 8 in 10 of them chose Mr. Bush.
Diane Arbus, Child with a Toy Hand Grenade (1962).

In other words, while Mr. Bush remains a polarizing figure on both coasts and in big cities, he has proved himself a galvanizing one in the broad geographic and political center of the country. He increased his share of the vote among women, Hispanics, older voters and even city dwellers significantly from 2000, made slight gains among Catholics and Jews and turned what was then a 500,000-popular-vote defeat into a 3.6 million-popular-vote victory on Tuesday. . . .

The biggest questions now may be about just what parts of that agenda Mr. Bush will choose to pursue, and just how many fights he will take on with either his liberal opponents or his conservative supporters.

Will Mr. Bush move to create private investment accounts for Social Security, a move that would follow through on an idea he first broached four years ago, gratify free-market ideologues but discomfit fiscal conservatives worried about how he would pay for them and practical politicians fearful of simply touching such a hot issue? Will he pick confirmation fights over anti-abortion judges, or press for a constitutional amendment to ban same-sex marriage? Or neither? Or both?

Yesterday, Mr. Bush sounded a conciliatory note. "A new term is a new opportunity to reach out to the whole nation," he said. "We have one country, one Constitution, and one future that binds us." Mr. Cheney's daughter Mary and her longtime partner, Heather Poe, appeared together at the victory rally.

The power of second-term presidents tends to dissipate quickly and Mr. Bush's will be limited at the outset because he will still be five Republican votes shy of the 60 needed in the Senate to stop a Democratic filibuster.

Senator Arlen Specter, the moderate Pennsylvania Republican expected to head the Judiciary Committee, warned Mr. Bush yesterday against nominating judges "who would change the right of a woman to choose, overturn Roe v. Wade."

James A. Thurber, director of the Center for Congressional and Presidential Studies at American University, said that for all the Republican gains, "the other story is that the nation is deadlocked, especially in the Senate, over what the most important issues are and how we deal with them."

But Grover Norquist, president of the conservative group Americans for Tax Reform, said that the Republican Party was no longer what it was 25 or 30 years ago, "a collection of people running on their own." Instead, Mr. Norquist said, "there is a coherent vision, and to a large extent voters can tell that Republicans are not going to raise their taxes, are for tort reform, are for free trade."

He said that without the drag of the war in Iraq, Mr. Bush would probably have rolled up a bigger majority.

As it is, Mr. Bush became the first presidential candidate to win more than 50 percent of the popular vote since his father did so in 1988, and he received a higher percentage of the popular vote than any Democratic candidate since Lyndon B. Johnson in 1964.

All those are daunting numbers for the Democrats. Early in his campaign, Mr. Kerry drew fire for musing aloud that the Democrats could win the White House without the South.

Yet for all of their hope that the Southwest could be their new ticket, Democrats were left with the fact that in the past 28 years, only Jimmy Carter and Bill Clinton among their ranks have made it, and both had Southern and evangelical support. Mr. Kerry, a lifelong Roman Catholic, often struggled this year to speak of his faith in public.

"Bill Clinton and Jimmy Carter got elected because they were comfortable with their faith," said Representative Rahm Emanuel of Illinois, a former Clinton aide. "What happened was that a part of the electorate came open to what Clinton and Carter had to say on everything else - health care, the environment, whatever - because they were very comfortable that Clinton and Carter did not disdain the way these people lived their lives, but respected them."

He added: "We need a nominee and a party that is comfortable with faith and values. And if we have one, then all the hard work we've done on Social Security or America's place in the world or college education can be heard. But people aren't going to hear what we say until they know that we don't approach them as Margaret Mead would an anthropological experiment."

Wait Until After the Election

"Allies: Hungary Joins Others in Pulling Troops" -- Judy Dempsey in The New York Times, 11/3/04:

BERLIN, Nov. 3 - Hungary announced Wednesday that it would withdraw its 300 troops from Iraq, becoming the latest country in United States-led coalition to bow to public pressure and prepare to bring its soldiers home.

Speaking at a ceremony for the end of military conscription, the newly appointed prime minister, Ferenc Gyurcsany, said Hungary was obliged to stay until the Iraqi elections scheduled for January, but would withdraw the troops by March.

"To stay longer is an impossibility," said Mr. Gyurcsany (pronounced JOR-chahn-ee).

The United States had persuaded 32 countries to provide 22,000 soldiers as part of the multinational force established to stabilize postwar Iraq. But over the last few months, a number of countries have withdrawn, some citing the cost but others concerned about security, and many governments face increasing public opposition to the war.

Spain's Socialist government withdrew its 1,300 troops after it swept into power last March, reversing the commitment of the prior center-right government of Prime Minister José María Aznar. The Dominican Republic withdrew 302 soldiers, Nicaragua 115 and Honduras 370. The Philippines withdrew its 51 in July, a month early, after insurgents took hostage a Filipino truck driver working for a Saudi company. Norway withdrew 155 military engineers, keeping only 15 staff members to help NATO train and equip the Iraqi security forces.

Two large contributors to the international force - Britain, with 12,000 troops, and Italy, with more than 3,100 - have insisted they will not withdraw. But Poland, the fourth-largest contributor, with 2,400 troops, says it intends to withdraw by the end of next year, and the Netherlands, with 1,400 troops, said this week that the latest rotation of troops would be its last contribution to Iraq.

New Zealand is withdrawing its 60 engineers and Thailand said it wanted to bring home its 450 troops. Singapore has reduced its contingent to 33, from 191; Moldova has trimmed its force to 12, from 42. On Wednesday Bulgaria's Defense Ministry said it would reduce its 483 troops to 430 next month, Reuters reported.

The Data


Exit poll data
at CNN.com.

MOST IMPORTANT ISSUE    BUSH    KERRY   
Education (4%) 25% 75%
Taxes (5%) 56% 44%
Health Care (8%) 22% 78%
Iraq (15%) 25% 74%
Terrorism (19%) 86% 14%
Economy/Jobs (20%) 18% 80%
Moral Values (22%) 79% 18%

SIZE OF COMMUNITY    BUSH    KERRY   
Urban (30%) 43% 56%
Suburban (46%) 51% 48%
Rural (24%) 56% 43%

The End

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"Kerry Concedes Race to Bush" -- Calvin Woodward and Ron Fournier (AP) in The Minneapolis Star-Tribune, 11/3/04:

President Bush won a second term from a divided and anxious nation, his promise of steady, strong wartime leadership trumping John Kerry's fresh-start approach to Iraq and joblessness. After a long, tense night of vote counting, the Democrat called Bush today to concede Ohio and the presidency, The Associated Press learned.

Kerry ended his quest, concluding one of the most expensive and bitterly contested races on record, with a call to the president shortly after 10 a.m. Minnesota time, according to two officials familiar with the conversation.

Civilian Deaths in Iraq

"Study: Iraqi Civilian Deaths Increase Dramatically After Invasion" -- Tim Parsons in The Johns Hopkins Gazette, 11/1/04:

Civilian deaths have risen dramatically in Iraq since the country was invaded in March 2003, according to a survey conducted by researchers from the Johns Hopkins Bloomberg School of Public Health, Columbia University School of Nursing and Al-Mustansiriya University in Baghdad.

The researchers found that the majority of deaths were attributed to violence, which were primarily the result of military actions by Coalition forces. Most of those killed by Coalition forces were women and children. However, the researchers stressed that they found no evidence of improper conduct by the Coalition soldiers.

The survey is the first countrywide attempt to calculate the number of civilian deaths in Iraq since the war began. The United States military does not keep records on civilian deaths, and record keeping by the Iraq Ministry of Health is limited. The study is published in the Oct. 29 online edition of The Lancet.

"Our findings need to be independently verified with a larger sample group. However, I think our survey demonstrates the importance of collecting civilian casualty information during a war and that it can be done," said lead author Les Roberts, an associate with the Bloomberg School of Public Health's Center for International Emergency, Disaster and Refugee Studies.

The researchers conducted their survey in September 2004. They randomly selected 33 neighborhoods of 30 homes from across Iraq and interviewed the residents about the number and ages of the people living in each home. More than 7,800 Iraqis were included. Residents were questioned about the number of births and deaths that had occurred in the household since January 2002. Information was also collected about the causes and circumstances of each death. When possible, the deaths were verified with a death certificate or other documentation.

The researchers compared the mortality rate among civilians in Iraq during the 14.6 months prior to the March 2003 invasion with the 17.8-month period following the invasion. The sample group reported 46 deaths prior to March 2003 and 142 deaths following the invasion. The results were calculated twice, both with and without information from the city of Falluja. The researchers felt the excessive violence from combat in Falluja could skew the overall mortality rates. Excluding information from Falluja, they estimate that 100,000 more Iraqis died than would have been expected had the invasion not occurred. Eighty-four percent of the deaths were reported to be caused by the actions of Coalition forces, and 95 percent of those deaths were due to air strikes and artillery. "There is a real necessity for accurate monitoring of civilian deaths during combat situations. Otherwise it is impossible to know the extent of the problems civilians may be facing or how to protect them," said study co-author Gilbert Burnham, associate professor of international health at the Bloomberg School and director of the Center for International, Disaster and Refugee Studies.

Voting Story

"Voting Story" -- Paul Ford at ftrain.com, 11/1/04:

I was talking with a good friend of mine about the weather. "Vote," she said.

"Vote?" I said. "Vote vote vote vote, vote vote."

"Vote vote?"

"Vote!"

We talked about how tired we both had become. "Vote vote vote vote, vote vote," I said. "Vote," she replied, commiserating.

I thought about it for a moment. "Vote," I said. "Vote, vote vote." She nodded in agreement.

Flash

Endorsements

"Bush Endorses Kerry" -- Newshounds.us, 10/27/04:

At a GOP campaign event in Lancaster, PA, Bush said: "This investigation is important & it's ongoing, & a political candidate who jumps to conclusions without knowing the facts is not a person you want as your commander in chief." The crowd cheered, as they always do.

Eminem endorses Kerry.

"36 Papers Abandon Bush for Kerry" -- Howard Kurtz in The Washington Post, 10/27/04:

The Orlando Sentinel has backed every Republican seeking the White House since Richard M. Nixon in 1968. Not this time.

"This president has utterly failed to fulfill our expectations," the Florida paper said in supporting John F. Kerry, prompting some angry calls and a few dozen cancellations.

"A lot of people thought they could trust that the Sentinel would always go Republican, and when that didn't happen, they felt betrayed," said Jane Healy, the paper's editorial page editor.

The Sentinel is among 36 newspapers that endorsed President Bush four years ago and have flip-flopped, to coin a phrase, into Kerry's corner. These include the Chicago Sun-Times, the Los Angeles Daily News and the Memphis Commercial Appeal, according to industry magazine Editor & Publisher. Bush has won over only six papers that backed Al Gore, including the Denver Post, which received 700 letters -- all of them protesting the move.

Nine more papers, including the Cleveland Plain Dealer yesterday, abandoned Bush after four years but did not support the Massachusetts senator. Instead, these papers -- the Detroit News, the Tampa Tribune and the New Orleans Times-Picayune among them -- threw up their collective hands and made no endorsement.