Burrowing Into Some Rabbit Holes

Chicago has a lot of strengths, along with a deserved, well, reputation. The City of Big Shoulders? Perhaps. But legal and illegal corruption have long greased the wheels in the City That Works. Chicago is joined at the hip with the State of Illinois, with no shortage of its own symptoms. Paul Powell, an Illinois Secretary of State who passed away while in office in 1970, just before $800,000 in cash (nearly $5 million in today’s dollars, given the inflation since then) was found stuffed in a shoebox and other places in his hotel room, along with 49 cases of whiskey. George Ryan, a former governor still in jail on corruption convictions. And they don’t seem to learn. Rod Blagojevich was elected to the governor’s seat after Ryan, and Blagojevich now stands to be sentenced following his conviction on corruption charges earlier this year.
The longer-term financial consequences arising when public institutions are used to fleece the public can be seen in the fiscal status of the City of Chicago, as well as the Land of Lincoln. Last year, interest rates and credit default swap costs for Illinois state debt climbed above California, suggesting the market considered Illinois the worst credit quality among the 50 United States.
The latest nasty recession hasn’t helped, but long-festering inefficiency and corruption have been a major factor in financial deterioration. A recent study led by Dick Simpson of the University of Illinois/Chicago estimated costs of $350 million a year in Chicago arising simply from waste, theft, patronage, nepotism and contract rigging. And speaking of waste, an illuminating symbol comes from the cost of garbage disposal in Chicago. A recent Wall Street Journal article reviewed the city’s finances, and found Chicagoans paying far higher costs per ton of garbage disposed than any other city in the country, nearly twice as much as the second highest.
In light of the environment, and the seeming inability of public institutions to reform after scandal after scandal, the prospects for ethical and cultural renewal in Chicago in the new administration led by Mayor Rahm Emanuel might best be viewed cautiously.
Here’s another reason for caution on that score.
A 2009 article/interview published in The American Conservative summarized some of Sibel Edmonds’ testimony in a court case in Ohio. This venue allowed her to speak about topics where this former FBI translator had been silenced by a dubious legal constraint called the ‘state secrets privilege.’ The 2009 article included shocking material about corruption and influence peddling. And the city of Chicago was surprisingly prominent, given the scope of her material.
Edmonds closed her 2009 article / interview with the following observations:
As soon as Obama became president, he showed us that the State Secrets Privilege was going to continue to be a tool of choice. It’s an arcane executive privilege to cover up wrongdoing—in many cases, criminal activities. And the Obama administration has not only defended using the State Secrets Privilege, it has been trying to take it even further than the previous terrible administration by maintaining that the U.S. government has sovereign immunity. This is Obama’s change: his administration seems to think it doesn’t even have to invoke state secrets as our leaders are emperors who possess this sovereign immunity. This is not the kind of language that anybody in a democracy would use.
The other thing I noticed is how Chicago, with its culture of political corruption, is central to the new administration. When I saw that Obama’s choice of chief of staff was Rahm Emanuel, knowing his relationship with Mayor Richard Daley and with the Hastert crowd, I knew we were not going to see positive changes. Changes possibly, but changes for the worse. It was no coincidence that the Turkish criminal entity’s operation centered on Chicago.
In our coming series, we are going crawl into a few of these rabbit holes.
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