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A new report from the Pentagon’s inspector general describes a massive failure in accounting for military equipment and services provided to forces in Iraq. More than $1 billion for military equipment like tractor trailers, tank recovery vehicles, crates of machine guns and rocket propelled grenades is unaccounted for. (CBS News, New York Times)

Salon pushes beyond Bush’s obvious prevarications about the NIE and Iran’s nuclear threat and argues that “the real lie” is Bush’s claim that “his administration has made a serious offer to negotiate with the Islamic Republic, and that Iranian intransigence is the only thing preventing a diplomatic resolution. Negotiations over Iran’s nuke program, which started in the fall of 2003, were initiated by Britain, France and Germany, not the U.S. “Contrary to Bush’s statement at his press conference this week, the United States did not “facilitate” these negotiations.” (Salon)

The Nation reports that “bu$ine$$” for Blackwater has never been better. Despite the massacre of 17 Iraqis, Congressional investigations of tax fraud, and a federal lawsuit alleging war crimes, Blackwater, having launched a marketing campaign, still seems a favorite of the Bush administration. The company even managed to have its own paratroopers make an aerial landing – complete with Blackwater parachutes – in San Diego’s Qualcomm Stadium during a halftime show at the San Diego State/BYU football game. (The Nation)

The contract employee who was banned from Iraq by the U.S. ambassador and is now under investigation by the Justice Department continues to oversee the construction of the much-delayed new $740 million American embassy in Baghdad from nearby Kuwait. James L. Golden is implicated in a Justice Department criminal investigation into how embassy construction subcontracts were issued. (McClatchy)

Now that it’s the congressional pages who are acting up, the party that initially hid the Mark Foley page scandal suddenly seems concerned about supervision and misconduct. Two Republicans resigned from the bipartisan House Page Board after four pages were booted out in recent weeks for “serious criminal acts” and “inappropriate sexual indiscretions.” For the kids, “we have adopted a zero-tolerance policy,” one supervisor noted. (CQ Politics)

House Republicans are rattled by Democrats’ plan for an outside ethics office – “Democratic Proposal for an Independent Ethics Entity in the House.” GOP lawmakers have focused on a provision permist any two members of the Office of Congressional Ethics “to initiate an investigation into charges against a member, arguing that it would enable partisan witch-hunts.” (The Hill)

CNN, the “most trusted name in news,” is pulling its two hour special “speculative documentary,” “We Were Warned – Iran Goes Nuclear,” from its lineup on December 12. The new National Intelligence Estimate on Iran’s suspension of its nuke program in 2003 seems to have given CNN pause about its “reporting.” (Variety, Think Progress)

Senator Arlen Specter (R-PA), who recently invoked Senate Rule XIX in defense of accusations that he is a puppet for Bush, has postponed a Senate Judiciary Committee vote on contempt charges against Karl Rove and Josh Bolten until next week. (Huffington Post, CQ Politics)

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