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Breaking. and this is an ongoing story that reminds me so much of the Russian coup against Gorbachev that looked so frightening at first, then the coup leaders were all found locked in a room, half naked, drunk off their asses. What bumblers…
We had three scandals in three days…
- Benghazi.
- AP Reporters getting wiretapped.
- IRS searching up Tea Partiers…
Turns out none are scandals.
A) Obama and Hillary are absolved from the Benghazi episode. The ABC email that started it all, was doctored. The whole thing was built off a piece of misinformation.
B) The AP Reporters? A very serious leak compromising considerable resources needed to be tracked down. The House Bill which would have made listening to journalist illegal was voted against by none other than Darral Issa.. Only 20 others were extremely discombobulated enough to do so. Though is passed overwhelmingly over Issa’s objection, a Republican filibuster killed it in the Senate. Obama then a Senator, had committed to voting for it. ”Republicans killed it” quoted Patrick Leahy, forever known for his episode in Dark Knight.
C) IRS searching up Tea Partiers. The IRS is a non partisan machine and is in a complete disconnect with any administration. The head of the IRS during this time-frame was a Bush appointee. The head of the division what oversees these tax exempt organizations, was appointed by Bush and approved by the Republican Senate in 2005… Why either of these would target the Tea Party for political means is unfathomable. But to do so because these organizations being investigated were formed to promote the NOT PAYING OF TAXES….. well, wouldn’t you do the same?
All three cases were complete duds. There was no “there”, there. All the prophecies of you had better watch out, …were premature.
The big question is… why are we even talking about this? Can you say poll results?
- December 12, 2012: Kentucky: Hillary Clinton would beat Paul, Rubio in 2016
- January 10, 2013: Clinton could be unstoppable if she runs in 2016
- January 17, 2013: Clinton could beat Bush and Rubio in Florida in 2016
- January 31, 2013: Clinton could win Texas in 2016
- February 8, 2013: Clinton potentially competitive in Alaska
- February 14, 2013: Clinton tied or ahead against GOP candidates in Louisiana
- February 28, 2013: Clinton would beat Walker, Ryan in Wisconsin in 2016
- March 21, 2013: Clinton’s popularity soars in Florida while Rubio stumbles
- April 11, 2013: Clinton and Paul are neck and neck in Kentucky
- April 25, 2013: Clinton would be dominant in New Hampshire in 2016
- May 8, 2013: Republicans decide it’s time to find out just how responsible Hillary Clinton is for the deaths of four Americans in Benghazi
Can you say …. “getting trounced in Red States”?
When your mom gets cancer. You don’t hate your mom. You hate the cancer.
Likewise, it was hard not to like the German people during WWII. It was easy to hate the fact that they were trying to kill you.
And so it is with Republicans… 99% of them are just like us. They too love their country; they too want it fixed; they too are angry, frustrated that events are not moving at fast-forward..
They are wonderful people; who also, happen to be Americans. We can never forget that if we were together in a bar with beer, wine, and spirits flowing like milk and honey, we’d all have a “gay ole time” (Flintstones’ reference) …
We want the same things, and we should be working together on fixing America… but we can’t….
Because of the Cancer…..
That cancer is not necessarily the Republican Party, but it is, the force that IS currently manipulating the Republican Party. That cancer is not a single person in the Republican hierarchy… It is instead that revision of the old cancer, that originally was against recognizing new states into the Federal Union. It is that old cancer that kept slavery legal for thirty years beyond when it should have been eliminated. It is the revision of that old cancer that kept blacks as second class citizens across the South. It is the cancer that fought against giving the Negro their Civil Rights. It is that cancer that denied Tobacco caused cancer. It was the same cancer that encouraged the killing of 4 students at Kent State, to teach those dirty hippies who listened to the Doors, a lesson they wouldn’t forget. It is the same cancer that denied the process of evolution, denied birth control, denied NPR, and ran rampant against all evidence of global warming…… Each time; they were wrong.
It is the same cancer that blew up a building in Oklahoma City.
It is the same cancer that fired bullets into working men and women who were refusing to work, until they got a raise…
It is the same cancer that took out Gabby Gifford……
With all these offenses, it is easy to point your finger and say, “Damn you Republicans..” It is in fact, way too easy.
But is not the people voting Republican who are to blame… They, like the German people, are bystanders. often gaping wide eyed when shown the truth, of what their support for the force of evil did to innocent men and women.
It is easy to turn all Republicans into demons if you don’t talk to them. But listening to them talk, (and we’re talking real people here, not their David Korsch’s) it is very easy to find common ground.
That common ground is this: sure, you tax the wealthy, and we’ll cut spending and together we’ll have high revenue with less expense, and be out of this mess in no time….
This is what every card carrying Republican is telling me, that is of course, if they don’t subscribe to the “cult-like” Republican meetings…. They say: “tax the fuckin’ wealthy; it won’t affect me; Just make sure that extra money is not wasted but is used to pay down the waste we already spent!”
Democrats have already offered to cut Medicare, Social Security, Defense Spending, all those things dear to their heart… So the problem isn’t them.
The problem is with the Republicans, who have balked on the tax issue, especially when it comes to raising taxes on millionaires… yet they have no qualms raising taxes on the middle class and poor. Republicans have shut down the Federal Government four times this year. Four times! They did so each time because the obvious was about to happen. WE were about to get a consensus among the rational members of both parties on how we were going to raise taxes and cut expenses (at the same time) which would bring us into line.
They pulled out of negotiations and said: we will not raise taxes one penny… and also, we will not do any business either in the House or Senate, until the Bush Tax Cuts are permanent.
And that,in one sentence, is why nothing gets done.
It’s as if a terrorist broke into your workplace. Under gunpoint he straps C4 to several of your firm’s employees, and starts firing his gun out the window to get everyone’s attention….
Rule Number 1: You don’t negotiate with terrorists.
That is the problem Obama and the rest of America is faced with, raising this question:
Do we attack (shut down government) and later clean up, or do we negotiate something we can both live with?
What do you do with cancer… Leave it? live with it?
There’s your answer to today’s political gridlock.
Removing all Democrats will be like having the Brits flee France across the channel, leaving the Nazi’s to run France without contention….
Removing all Republicans will be like marching triumphantly into Berlin.
It is pretty obvious who is the cancer and who is not. WE, THE PEOPLE, can’t let it linger any longer. The cancer must go, preferably without killing its host in the process…
Senator Hatch’s own words….
“We’ve been down this road before,” he said. “In 1990 Congress and the president struck a deficit reduction deal that combined spending cuts with tax increases. Unfortunately, while the tax hikes remained, the spending restraint did not, and our debt has marched higher.”
The Reality:

Courtesy of TPM
So if you knock off the 74% overspent on both wars, and knock off the 32% overspent on the Medicare Medical Profit Enhancement Act signed by Bush in 2003, spending is flat relative to GDP.
Revenue isn’t… Hatch says it worked great then… As reality shows, the only difference between then and now, is we aren’t taxing enough… Any Republican who says we are taxing too much, is like Hatch, a big, fat liar….
Poor Roger Clemens: Apparently it’s more of a crime to lie before Congress, than it is for a member of Congress to blatantly lie on CNN to the American people?
Did he just say (1:00) “although the tax hikes remained (uhh, is he so old his memory skipped over the Bush tax cuts?) … our spending cuts (see above chart) did not?
Caught in the act, Big Fat Liar…. Got some water to pour on to your pants?

Image Courtesy of Cape Cod Living
Duffy is God’s answer to a prayer.. I miss the old days of blogging when we were debating principals instead of people… Duffy has stuck to the old line of debating principals with facts, and that is what makes him special in the eyes of bloggers everywhere…
Since the passing of Steve Newton, he has been the only one to challenge me in any argument, and usually some pretty good stuff comes out of both sides during the exchange… I have respected that.. Cause once again, opinions mean dick. Facts are what we steer by.. It is my hope that in responding to his challenge that an answer may make itself apparent.. Who knows? It may not come from me… But if I’m the catalyst for bringing it out in the open, then… none of this was in vain..
Why I like to debate Duffy is simple.. Neither side, he or I, is concretely set in their opinions… We accept it when the other side makes sense… I usually go into such debates having no idea where they’ll end up… I hope the rest of you enjoy the ride as welI….
That said..
kavips rebutt’s:Uh… Mr. President. That’s not entirely accurate.
First off, the Community Reinvestment Act of 1977 was developed for, and locked in on, urban developmental areas and had no part of the subprime boom, which primarily occurred out in western desert regions where owning 4 to 5 investment homes was normal… Those homes were overwhelmingly funded by loan originators NOT SUBJECT to the act… We all know the crises was not because people couldn’t afford a payment on their house. It came about, because with no occupants, people could not afford the payments of 4 to 5 houses….. Instead of one loan per borrower turning up in default; four to five were.

Second off, The housing bubble reached its point of maximum inflation in 2005.

Courtesy of NYT
Third off, During those exact same years, Fannie and Freddie were sidelined by Congressional pressure, and saw a sharp drop in their share of loans secured by the Feds… Follow the dotted line on the very bottom of the graph…

Courtesy of NYT
Fourth off; During those exact same years, private secures, like Delaware’s own AIG, grabbed the lions share of the market.

Courtesy of NYT
Remember these graphs for later on when I discuss the results of deregulation, versus regulation… But like it or not, these graphs conclusively show that private insurers, who thanks to Marie Evans, we now know were deregulated by Phil Gramm in the 2000 Omnibus Bill, were the primary cause of the worlds financial collapse.. Probably put best by these words of AIG’s spokesperson, who when asked why they didn’t have sufficient funds to cover losses, said point blank, “We were deregulated. We were no laws requiring us to keep any funds, ..so we spent it…”
kavips rebutt’s:Uh… Mr. President. That’s not entirely accurate. I agree that the hedge funds did survive better than the banks. Not because of bailouts, but because they sold short during the crises and made billions while firms closed and people got thrown out of work. There is nothing wrong with that; I did the same. In fact close readers may remember my warnings that the crises was impending almost a year earlier. Very close readers may remember my telling them exactly when to sell, and at what point the stock market would rebound… I must say: I called it rather well.
De regulated hedge funds are not the issue… De-regulated, excessively leveraged, mortgage securities, are a different story however… They, not the banks that held them, are the cause of the crises…Years from now, when academics search for causes of the stock market crash of 2008, they will focus on the pivotal role of mortgage-backed securities. These exotic financial instruments allowed a downturn in U.S. home prices to morph into a contagion that brought down Bear Stearns a year ago this month – and more recently have brought the global banking system to its knees.
Where you err is when you state that banks too big to fail, assumed they would be bailed out… By implication, you say imply they failed from squandering money, and wanted the bailouts.. But your tax dollars didn’t flow directly to the bottom line.
So in that sense, the bailout money represents an expense for banks. That’s one reason a number of banks have said they want to give the money back as soon as possible.
You say big banks were counting on a bailout, and they got them? That didn’t happen to these banks. New Mexico, Georgia, and Florida each lost a bank just last Friday. That brings to 8, the number of banks failed in June. Unfortunately if a bank is failing, it can’t bet on itself to fail, as can a hedge fund.
kavips rebutt’s:Uh… Mr. President. That’s not entirely accurate. The idea is that the banks made bad decisions knowing taxpayers would bail them out is the issue that is inaccurate. For the record, I have no qualms that it was the Clinton legacy who tore down the wall between banks and investment banking. Like you, I feel it was a good idea to do so… Again the problem was not primarily with banks making loans to people who could not pay.. Although, it was as late as October 2009, when I was made aware of one private Bank in Denver still exaggerating income to make loans look good enough on paper to get approval of securitization. What caused the collapse was the leveraging of those loans as securities, so that as the housing market became overextended, and the ARM jumped past the low cost opening years, the damage was 100 times worse because of leveraging. What made the collapse criminal, was that the insurance most financial institutions had bought from AIG, to cover such an improbable event, had already spent by that companies executives, out on bonuses to themselves. What made it doubly criminal, was that when they received government dollars through a taxpayer bailout, those same executives assumed it was to first go towards paying their bonuses again. However, very recent events may give some cover to the argument that some collusion was implicit in the bailing out of Goldman Sacs and AIG… Basically, once bailed out, AIG paid Goldman Sacs for shares twice as much as they were worth. The documents also indicate that regulators ignored recommendations from their own advisers to force the banks to accept losses on their A.I.G. deals and instead paid the banks in full for the contracts.
Someone asked me to weigh in on the Secretary of State controversy…
Ok, I’ll oblige, briefly.
I do not think it should be Hillary Clinton. Not at least in the first term… My personal favorite is Colin Powell, again, but after doing it once, he would be a fool to take another stab of going at it again…
Therefore I do not think it will be Hillary Clinton… The one thing I have noticed watching Obama react is that he is pensive; he thinks through things before acting… If one thinks through the Hillary episode, it becomes rather apparent that her place in history would be better served, at least in the first term, as head of the U. S. Senate…
Here is why… Perhaps I was the only one, but I noticed that Hillary garnered a lot of support from the other side through out her primary fight… Comments from Republicans as far back as Iowa assumed Hillary was the foregone conclusion to become our next President, and were ready to accept it.
Shows what Republicans know…
Being just the emissary of the chief executive, is rather limiting to a women of Hillary’s talents. Those talents can be better served for instance, by redesigning the Senate into a non partisan body, where individual Senators can again focus on the will of their local constituents, and not have to follow lockstep party politics… After all, that philosophy worked rather well through out the thirties, forties, fifties, sixties, seventies, and eighties…. It will take a strong willed leader to undo the hardened partisan boundaries that were built up over the last two chief executives terms…
But that loosening of rigid partisanship, is exactly what is needed in order to get things done… Hillary, as a Senate leader who reaches out to Republicans even when she doesn’t have to, is just the quintessential person to enable this important change to evolve… As the former wife of a chief executive, she is well aware of the benefits of triangulating power between both parties…and that capacity can make her a powerful ally to President Obama in the Senate….
Whoever takes over the reins of the next Senate, will become one of the greatest Senators of all time…. As I write, considerable challenges are queuing up, ready for the new Congress to open its doors.. Upon only a quick perusal of those Senators entering next January, one readily sees that the only one with sufficient clout is Hillary. Our nation needs Hillary there. The uniqueness of which is Hillary’s life story, is both hers and our nation’s greatest asset, to insure for us all, that a better future is forthcoming…
Fortunately Obama is sharp enough to know that.
The best bet is John Kerry; the former presidential candidate who almost beat Bush, could carry enough clout and representative power in his meetings with world leaders, whereas his removal from the Senate, would not create an unfillable black hole into which all good intentions would collapse…
I see both of these candidates growing in stature over the next four years. Each of these two positions fit them well, and likewise, they also fit the positions well… Over time, I believe that the scenario which I have laid out, will in future years become like King Arthur’s round table….. the stuff of legend…..
To a chorus of “the economy is bad”, “the economy is bad”, we wake up every day… Yes, that may be true, but since most have already accepted it to be so, based on their own day to day experiences, what good does it do to harp on it?
I decided very little. Of course others can write reports on its demise and still others can read those accounts and weep. Whereas I will acknowledge that cries like this are very important before some actions are taken ie those actions leading us down dangerous paths, such as “let’s deregulate bundled loans”, or “let’s decrease the money received by the Treasury by Tax Cuts during an expensive war”; once those actions are taken, comments, though well meant, have no other use except to say, “See, I told you so”, and/or make Republicans wince.
Being vindicated may make one feel good, but it does little to alleviate the hardships being faced by all.
So as my title asks……how are we going to fix it?
First step is: make sure it doesn’t happen again or to be put another way: Cut off its source of fuel…..
Our current calamity occurred because of deregulation…. Rampant speculation was allowed to continue, further pushing a bubble outward until someone realized it was just a thin membrane, full of nothing but air…. Rampant speculation is always the problem behind a collapse of an economy…. Before we understood economics, the world had panics and bubbles bursting all the time…. Each time it burst we learned more and we regulated more. Then, someone eventually found a loophole, an area unregulated, and suddenly all resources race to that spot, creating another aneurysm until it too bursts. Afterwards, that area comes under regulation.
The Great Depression caused banks to be regulated. The Savings and Loan Crises and subsequent bailout, caused S & L’s to come under regulation. Obviously we need to now regulate the bundling of loans and other unregulated securities….
That….. is the first step, which helps us, the sufferers, very little. However it is needed to keep the trend from getting worse…
Next, we deprive the Depression of its oxygen: “we need to forgive us our debts…..” Right now as I write, the Fed’s are forgiving debts of several banks and financial corporations who speculated poorly. As we see with this year’s stimulus package, when money goes directly to financial institutions, there is nary a ripple in the economy…. I think we all knew this would happen…. It was all over the news when the stimulus package was announced.. Any smart person would use an unexpected bonanza to pay down debt instead of allowing it to grow exponentially as we spend it on trinkets….
But trinkets are what keeps our economy afloat…. So how does one stimulate an economy so heavily saddled with debt, that the debt just sucks up every attempt to jump start it? Easily…. You forgive the debt for a while until the economy seems healthy and then return to normal…. It’s just another form of stimulus package.
The first argument AGAINST doing so is this: you are teaching people that not paying back what you owe is ok… Valid point. But equally valid would be this rejoinder: by doing the alternative, bailing out insolvent corporations with taxpayers money, you are teaching corporations that making bad loans will cost them nothing, yet gain immense profits.
Under our current system we reward bad behavior from those giving out bad loans, which in turn, penalizes good common people who actually saved nest eggs, by wiping out a large portion of the value of their holdings. ( Anyone checked their 401K lately?)
Therefore what is needed is a simple way to rejuvenate the economy, in a way that rewards good behavior yet punishes those who misbehaved, not the other way around.
Unfortunately for Delaware, credit cards are one of the easiest way to accomplish that. Here is how it could be done.
A year of no interest. (this is theoretical, so finish reading before responding.) Pay back all principal owed, but not the reward that a bank receives for lending you its money….its interest.
What does this do to banks? For one, they stay open. They remain solvent; they do not have to shut down or get bailed out with money we are borrowing elsewhere from the Chinese… During that year, the financial institutions write off their books, all of the amount of interest they had anticipated receiving from all previous loans. Which means that we never have to pay that amount back. When the year starts anew, we pay the full amount again. As for the missing year of interest: the banks will eat it.
But…. new loans will not be part of the deal… Loans made during that year will be charged interest, or fees, as they normally are. This gives banks some form of income. And once this year has passed, banking returns back to normal…
Some safety nets can be provided. One, for example, would be to lend a small bank an interest free loan from the Fed, if it was unable to meet its payroll or other expenses and stay open due to its lack of interest coming in. After the interest-free year was over, that amount would be paid back in interest free installments as well…
What this interest-free year does, is keep institutions open, keep a Great Depression at bay, puts money into the hands of buyers, money which cannot be spent on debt, and which must go for goods and services.
As the demand for more products increase, so does commercial lending. For to increase production, new and newer loans will need to be negotiated, Each new loan thereby gives banks more income.
The bad news is that banks won’t make tons of profit. No problem, this year, they wouldn’t anyway, And without this new type of stimulus package, as we saw during the 10 year Great Depression (when there just wasn’t any money anywhere to get things started….). things stayed bad year after year after year.
And one additional side benefit? It would teach a lesson to all, that lending money to someone who obviously can’t pay it back….CANNOT now be done with impunity….. The burden is finally placed upon those who did the sin… and not on the innocent suffering silently….
(I look forward to your comments and challenges…..)
One of the obligations of being in a family is that whenever one of your young relatives performs in public, you feel obligated, if not proud, to arrange your calender in order to go out and see them…..
So it was at the year end concert I attended tonight…….A gaggle of 3rd, 4th, and 5th graders encompassing the entire range of talent humanly available, assembled wearing jet black pants and bleached white shirts, before parents and family to perform (or for some, to endure) their 15 minutes of fame.
After each of the individual class acts, the entire assembly of students was assembled for a grand finale.
They preformed their school song and the last song on the ticket was according to the program…..some patriotic song…..Of course I thought……
The piano started and among the children, the singing broke out……..
Tears started to well…..
As my mind grasped the immensity of what I was beholding…..it was America I was seeing, right to the core….It was what makes this nation different from any other past or present…….
For on that stage, there were no blacks…..there were no whites……one could tell by the contrast with those clothes they were wearing…….just many, many, different shades of brown…..Some with red hair, were a light brown. others with black hair were a dark brown….But from the audience level looking up it would be rather hard to quantify among most of them whether we were gazing at a light skinned dark person, or a dark skinned light person in a majority of those pouring their hearts out in singing those words…..
So why is so much effort being used to quantify race in this election year. Who cares?
What was obvious to me, as one Delawarean school performed for their families, was anyone pushing us back down the way of division, was leading us the wrong way…..That is not where America needs to go. Rather we need to be going the opposite way….the way in which every American can prosper and by each person’s cumulative growth, together our nation prospers at the same time…. The key word is “every”. And I’d be willing to settle for a definition of 98% as being the practical definition of “every”.
America does not need to prosper….as Republicans have touted as they roll back taxes on the wealthy. But every human American does….if this nation is to remain a bastion of Democracy against the new threats of Russia, and China. both technological equals with vast resources at their disposal…..
There may come a time when we may need assistance from the rest of the world if our nation is to survive….. Having a multicultural nation would be our best defense against any national attack…. Who could not support a nation which allowed ones relatives to work and send back the very money one needed to survive upon?
Allow me the luxury of this theoretical example. One of our best defenses which we have going for us to keep China from attacking us, is to have a large number of Chinese living here and calling us their home…. How can an attacking nation convince its citizenery that we are evil when each individual soldiers relatives back home are telling him otherwise?
Likewise with Russians, Indians, Arabs, and Latin Americans…..Our common defense rests on our friendships, probably a little more than it rests on our weapons…..
America needs to become color blind…and recognize in some way that we are all some shade of brown….some are East Asian brown, some are Central Asian brown, some are West Asian brown. Some are western Eurasian brown. And some come from the Mother continent of Africa. Those indigenous Americans are immigrants themselves whose ancestors migrated across the Siberian land bridge and spread across both continents……Genetically among the whole planet’s pool, we are (rounded) 99% alike.
It is time for Obama. I haven’t paid that much attention. What is he? West Eurasian, East Asian? Is he west or east African? And if one honestly comes to terms with the fact that one really doesn’t know,.,… then how can that person automatically collate him as a black man, when my own television screen shows me his skin is light brown? Obama throws our racial stereotypes right on edge. Furthermore this controversy brings up a valid point. If any child comes from parents of two different shades of skin, why do we automatically call that child black? Why is he not white? This controversy is solved if we choose to call it as it is…. “If a dark brown mothers the baby of a light brown, it’s a medium brown…” “Whoop de doo.” Anyone with married friends of different shades of brown, who happen to have children, knows full well the impossibility of pigeonholing each of their progeny’s behavior based on their skin’s shade of brown…..
If one looks at race with a clear eye….it is laughable.
Our country is crumbling apart, is currently fighting just to say we didn’t lose in some dry ungamely place, and is flat broke. Meanwhile billions and billions, are spent switching corporations from one owner to the next, and back again at an even higher price…..and for what?
America cannot afford to stay the same……McCain is the same…..Hillary…..likewise is the same…..Yes, they both are good people….Yes, they both have reasons for proposing what they do. And yes, they could each make a much better president than the one we have just endure.
But to use Galactica termonolgy, America needs “to Jump”….. We need to move our entire nation, en masse, to some point into the future. The last person to make a jump of the likes we now need, was Franklin D. Roosevelt. The one before that, was Lincoln….. So these events don’t come that often.
It would be wise to reflect that as little as a year ago, even within our little forums here in “the first state”, there was general excitement among progressives of both parties, who were clamoring over whether Gore would eventually rise high enough in stature to take back the presidency, and after an 8 year delay, put us back on the proven course to success…..
It would be worth noting as well that at this time last year, Clinton was odds on favorite to be elected. So what has happened, is that an upstart has risen through his own party, and beaten back the efforts of a front runner, who all had assumed would waltz into the White House because there was no one who could beat her (sort of like the New England Patriots)……..But someone did, and when they came out of the fight, they did so unbloodied with negatives, as did their opponent…..Democrats across the nation have spoken….and this is… a nation of all…..Collectively they have said ” wow, we had two wonderful candidates; we each voted for our favorite; it’s tough to settle, but in the end, maybe by only a field goal, one will win.”
Undeniably the winner will need to jump America’s ship far into America’s future…..We can’t wait for the shattering of our infrastructure and economic markets, the poisoning of our planet, or the breakdown of our people to occur before we take action. We know what needs done and that action will need to be taken as quickly as possible. Having either one of the two candidates with a ligher shade of brown calling the shots, means we will still have to relive those same old controversies that should have been put behind us many years ago……
Race should not be an issue…..it certainly isn’t for kids in the 3rd, 4th, and 5th grades…..ask them…..They’ll tell you….”Who cares what shade of brown lurks in one’s skin? We’re all the same.”

