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Gnarls Barkley's "Crazy" was tapped as a finalist for the Grammy for Record of the Year, which certainly seemed appropriate, since, as 2006 ran out, the whole world appeared headed for a rubber room. Presidential front-runner John McCain, sometimes accused of having a few screws loose, told the Yeshiva University Hanukkah Convention that Iran's leaders were "possibly deranged." Tehran rebutted the charge by hosting a convention of Holocaust deniers, including an Israeli-flag-burning Rockland County rabbi and kooky ex-Klansman David Duke. Leisure nut President Bush decided he'd be out of his mind to try to tackle the Iraq problem before the New Year. Mowaffak al-Rubaie, Iraq's national-security adviser, suggested that his country's lunatic army take over the asylum of Baghdad. Mayor Bloomberg painted a Hieronymus Bosch scenario of the city's future — including insane all-day rush hours circa 2030 — then unveiled some out-there solutions that seemed just crazy enough to work. A British tabloid floated the wacky idea that the U.S. intelligence services were holding secret info on paranoid Princess Di that could cause "exceptionally grave damage to the national security."