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Here Comes Huntsman

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The bombastic non-Romney Republican Presidential hopeful, Herman Cain, has been providing us with a very entertaining meltdown.  He has attempted to silence the handful of women, who came forward to accuse him of sexual harassment, with threatened defamation suits.  Nevertheless, a woman who claimed to have been his paramour for thirteen years – Ginger White – possessed something the other women lacked:  documentation to back up her claim.  She has produced phone records, revealing that Cain was in contact with her at all hours of the day and night.  Cain’s humorously disingenuous response:  He was providing advice to Ms. White concerning her financial problems.  When I first heard about Ginger White’s allegations, I assumed that she was motivated to tell her story because she felt outraged that Cain had been trying to cheat on her by making inappropriate advances toward those other women.

The next non-Romney candidate to steal the Republican spotlight was Newt Gingrich.  Aside from the fact that Newt exudes less charisma than a cockroach, he has a “baggage” problem.  Maureen Dowd provided us with an entertaining analysis of the history professor’s own history.  The candidate and his backers must be counting on that famously short memory of the voting public.  The biggest problem for Gingrich is that even if he could win the Republican nomination, he will never get elected President.

Meanwhile, Romney’s fellow Mormon, Jon Huntsman, is gaining momentum in New Hampshire.  Huntsman has something the other Republicans lack:  the ability to win support from Independent and Democratic voters.  The unchallenged iron fists of Rush Limbaugh and Fox News, currently in control of the Republican party, have dictated to the masses that the very traits which give Huntsman a viable chance at the Presidency – are negative, undesirable characteristics.

Conservative commentator Ross Douthat of The New York Times, took a hard look at the mismanaged Huntsman campaign:

Huntsman is branded as the Republican field’s lonely moderate, of course, which is one reason why he’s currently languishing at around 3 percent in the polls.

*   *   *

Huntsman has none of Romney’s health care baggage, and unlike the former Massachusetts governor, he didn’t spend the last decade flip-flopping on gun rights, immigration and abortion.

*   *   *

At the same time, because Huntsman is perceived as less partisan than his rivals, he has better general election prospects.  The gears and tumblers of my colleague Nate Silver’s predictive models give Huntsman a 55 percent chance of knocking off the incumbent even if the economy grows at a robust 4 percent, compared to Romney’s 40 percent.

*   *   *

On issues ranging from foreign affairs to financial reform, Huntsman’s proposals have been an honorable exception to the pattern of gimmickry and timidity that has characterized the Republican field’s policy forays.

But his salesmanship has been staggeringly inept.  Huntsman’s campaign was always destined to be hobbled by the two years he spent as President Obama’s ambassador to China.  But he compounded the handicap by introducing himself to the Republican electorate with a series of symbolic jabs at the party’s base.

As Ross Douthat pointed out, New Hampshire will be Huntsman’s “make-or-break” state.  The candidate is currently polling at 11 percent in New Hampshire and he has momentum on his side.  Rachelle Cohen of the Boston Herald focused on Huntsman’s latest moves, which are providing his campaign with some traction:

Monday Huntsman introduced a financial plan aimed at cutting the nation’s biggest banks and financial institutions down to size so that they are no longer “too big to fail” and, therefore, would never again become a burden on the American taxpayer.

“There will be no more bailouts in this country,” he said, because taxpayers won’t put up with that kind of strategy again.  “I would impose a fee [on the banks] to protect the taxpayers until the banks right-size themselves.”

The strategy, of course, is likely to be music to the ears of anyone who despised not just the bailouts but those proposed Bank of America debit card fees.  And, of course, it gives Huntsman a good opening to make a punching bag of Mitt Romney.

“If you’re raising money from the big banks and financial institutions, you’re never going to get it done,” he said, adding, “Mitt Romney is in the hip pocket of Wall Street.”  Lest there be any doubt about his meaning.

That issue also happens to be the Achilles heel for President Obama.  Immediately after he was elected, Obama smugly assumed that Democratic voters would have to put up with his sellout to Wall Street because the Republican party would never offer an alternative.  Huntsman’s theme of cracking down on Wall Street will redefine the Huntsman candidacy and it could pose a serious threat to Obama’s reelection hopes.  Beyond that, as Ms. Cohen noted, Huntsman brings a unique skill set, which distinguishes him from his Republican competitors:

But it’s on foreign policy that Huntsman – who served not only in China and Singapore but as a deputy U.S. trade representative with a special role in Asia – excels, and not just because he’s fluent in Mandarin.

This is the guy anyone would feel comfortable having answer that proverbial 3 a.m. phone call Hillary Clinton once talked about.

If that phone call is coming from China – Huntsman won’t have to wake up an interpreter to conduct the conversation in Chinese.

Any other Republican candidate will serve as nothing more than a doormat for Obama.  On the other hand, if Jon Huntsman wins the Republican nomination, there will be a serious possibility that the Democrats could lose control of the White House.


 

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More Dirty Laundry

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Will an Independent candidate please step into the 2012 Presidential campaign?

On November 6, 2012 a good number of citizens who voted for Barack Obama in 2008 will realize that they are faced with the choice of voting for either Black Romney or White Romney.  As a result, those former Obama supporters won’t bother to vote at all.  Barack Obama won’t be seen as a significantly dissimilar alternative to Romney.  The indiscernible difference between those candidates would not justify the effort of standing in line at the polls.

Voter disappointment with the President is now being overshadowed by the rising pile of dirty laundry he has accumulated during his tenure in the White House.  The burgeoning Solyndra scandal is being mishandled by the President himself.  You would think he had learned a lesson from Weinergate, to the effect that fallacious denials about scandal allegations can create more trouble for a politician than the scandal itself.  FactCheck.org recently caught Obama in a lie about the loan guarantee program exploited by Solyndra:

Obama referred to Solyndra’s loan at an Oct. 6 press conference as “a loan guarantee program that predates me.”  That’s not accurate. It’s true that the Energy Policy Act of 2005 created a loan guarantee program for clean-energy companies developing “innovative technologies.”  But Solyndra’s loan guarantee came under another program created by the president’s 2009 stimulus for companies developing “commercially available technologies.”

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In a March 2009 press release announcing a $535 million loan guarantee for Solyndra, the Energy Department said:  “This loan guarantee will be supported through the President’s American Recovery and Reinvestment Act, which provides tens of billions of dollars in loan guarantee authority to build a new green energy economy.”  Damien LaVera, an Energy Department spokesman, confirmed that Solyndra’s funding came solely from section 1705.

That revelation is simply the first layer of frosting on a cake with some noxious ingredients baked into the recipe.  ABC News provided this report:

An elite Obama fundraiser hired to help oversee the administration’s energy loan program pushed and prodded career Department of Energy officials to move faster in approving a loan guarantee for Solyndra, even as his wife’s law firm was representing the California solar company, according to internal emails made public late Friday.

“How hard is this? What is he waiting for?” wrote Steven J. Spinner, a high-tech consultant and energy investor who raised at least $500,000 for the candidate before being appointed to a key job helping oversee the energy loan guarantee program.  “I have OVP [the Office of the Vice President] and WH [the White House] breathing down my neck on this.”

Many of the emails were written just days after Spinner accepted a three-page ethics agreement in which he pledged he would “not participate in any discussion regarding any application involving [his wife’s law firm] Wilson [Sonsini Goodrich & Rosati].”

*   *   *

Recovery Act records show Allison Spinner’s law firm, Wilson Sonsini, received $2.4 million in federal funds for legal fees related to the $535 million Energy Department loan guarantee to Solyndra.  That ethics agreement said his wife would forgo pay “earned as a result of its representation of applicants in programs within your official duties.”

Although many Obama apologists have characterized the Solyndra scandal a nothing more than a “Republican smear campaign”, Ryan Reilly of the non-Republican Talking Points Memo offered this analysis of the allegations:

Solyndra was raided by the FBI earlier this month.  The Government Accountability Office had raised concerns that the Energy Department agreed to back five companies — including Solyndra — with loans without properly assessing their risk of failure.  All this from a company that Obama described as a company with a “true engine of economic growth.”

And the details that are emerging from the investigators at the Republican-controlled House Energy and Commerce Committee are making things look worse for the administration.

Nine days before the administration formally announced the loan, a White House budget analyst wrote an email calling the deal “NOT ready for prime time,” according to documents given to ABC News by the House Energy and Commerce Committee investigators.

Despite the ongoing Occupy Wall Street protest, President Obama has seen fit to launch an assault on the Sarbanes-Oxley Act, which was created after the Enron scandal.  Sarbanes-Oxley most notably assigned responsibility to corporate officers for the accuracy and validity of corporate financial reports and established criminal penalties for destruction or alteration of financial records, interference with investigations, as well as providing protection for whistle-blowers.  The Business Insider reports that President Obama is advancing the recommendations of his jobs council which call for attenuating the Sarbanes-Oxley regulations, in order to make it easier for small companies to go public, by way of initial public offerings (IPOs):

The jobs council, headed by GE CEO Jeff Immelt and including Sheryl Sandberg and Steve Case, found that the Sarbanes-Oxley was a key factor in reducing the number of IPOs smaller than $50 million from 80 percent of all IPOs in the 1990s to 20 percent in the 2000s.

Obama also said the “Spitzer Decree,” which bans investment banks from using banking revenues to pay for research and expert analysis of publicly-traded companies, deserves reconsideration as well.  The council said the rule shares the blame for the decline in IPOs among small companies.

Yves Smith of Naked Capitalism reacted to the news with this remark:

This is ridiculous.  Do you know what happens with small stocks?  Pump and dump (and I’ve seen this at closer range than I would like.  I had a former client get involved by having his private company merged into a public company controlled by small stock low lifes.  They ran it from $1 to about $12 twice, and then it went back to under $2 and stayed there).

We were reminded of Obama’s hypocrisy on the subject of financial reform by a fantastic article written by Suzanna Andrews for Vanity Fair, which detailed how Elizabeth Warren was thrown under the bus by Obama, who shocked his supporters with his refusal to nominate Warren as chair of the Consumer Financial Protection Bureau (which she created).

Another disillusioned 2008 Obama supporter, Bill McKibben, wrote an essay for Tom’s Dispatch about how the President has sold out to Big Oil:

Here’s an example:  by year’s end the president has said he will make a decision on the Keystone XL pipeline, which would carry crude oil from the tar sands of northern Alberta to the Gulf of Mexico.  The nation’s top climate scientists sent the administration a letter indicating that such a development would be disastrous for the climate.  NASA’s James Hansen, the government’s top climate researcher, said heavily tapping tar-sands oil, a particularly “dirty” form of fossil fuel, would mean “game over for the climate.” Ten of the president’s fellow recent Nobel Peace Prize laureates pointed out in a letter that blocking the prospective pipeline would offer him a real leadership moment, a “tremendous opportunity to begin transition away from our dependence on oil, coal, and gas.”

But every indication from this administration suggests that it is prepared to grant the necessary permission for a project that has the enthusiastic backing of the Chamber of Commerce, and in which the Koch Brothers have a “direct and substantial interest.”  And not just backing.  To use the words of a recent New York Times story, they are willing to “flout the intent of federal law” to get it done.  Check this out as well:  the State Department, at the recommendation of Keystone XL pipeline builder TransCanada, hired a second company to carry out the environmental review.  That company already considered itself a “major client” of TransCanada.  This is simply corrupt, potentially the biggest scandal of the Obama years.  And here’s the thing:  it’s a crime still in progress.  Watching the president do nothing to stop it is endlessly depressing.

We shouldn’t be too surprised to learn that Obama’s dirty laundry has a few oil stains.  The BIG surprise would be Obama’s reelection.


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Doing Fine Without A Demand

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Back on September 8, when I wrote about the plans for an “Occupy Wall Street” demonstration, I expressed my surprise that the ultimate goal of the occupation was deliberately left open.  Since that time, there has been a good deal of criticism concerning a failure of the movement to focus on a particular demand.  Many observers (including myself) believed that the lack of a single goal would doom the effort to failure.  As it turned out, the only drawback of that strategy was that it got the campaign off to a slow start.  When forced to acknowledge that the occupation was taking place after the arrest of 80 demonstrators on September 25, the corporate-controlled media made a point of emphasizing that there were only “a couple hundred” people participating in the protest.  After over 700 protesters were arrested on the Brooklyn Bridge Saturday, it became obvious that the mainstream media had been understating the number of participants involved in this effort.

Despite the transparent media efforts to under-report this event, there was one conspiracy allegation that fell apart.  Many protesters claimed that the New York police “set up” the Brooklyn Bridge marchers, by directing them from the pedestrian walkway onto the vehicular traffic lanes. Natasha Lennard of the City Room blog at The New York Times – who ended up getting arrested with the Brooklyn Bridge protesters – debunked the claims of entrapment:

The Internet was filled with pointed suggestions that officers from the New York Police Department led protesters onto the road as a trap to perform mass arrests; indeed, some video footage seems to show officers leading protesters onto the “illegal” section of the bridge.  From what I saw, however, a couple of dozen marchers made the decision to move off the sidewalk into the road at the bridge’s entrance to chants of “off the sidewalks, into the streets.”

This breakaway group quickly gained support of surrounding marchers, numbers of whom jumped over barricades on the sidewalk’s edge to stream into the road, until hundreds of people eventually covered the passageway usually intended for a steady flow of traffic.

As the Occupy Wall Street movement spawned similar protests around the nation, critics continued to bemoan the absence of a clear-cut message – many of whom offered their own suggestions.  These remarks by Nicholas Kristof were typical of the criticisms expressed since the occupation began:

Where the movement falters is in its demands:  It doesn’t really have any.  The participants pursue causes that are sometimes quixotic – like the protester who calls for removing Andrew Jackson from the $20 bill because of his brutality to American Indians.

On the other hand, the lack of a specific goal seems to be having the same “Rorschach effect” exploited by Barack Obama during his 2008 campaign.  The avoidance of a narrow agenda appears to be attracting a broader range of participants from across the political spectrum, who are now joining the protest.

Tina Susman of the Los Angeles Times discussed the views of some who emphasized keeping the message vague or simply sticking with no unified message at all:

Michael T. Heaney, a University of Michigan political science professor who has studied social protest movements, said such groups often bump up against pressure to become more focused and to either build or join institutions that can support them.

“What you’re talking about is a degree of buying into a political system,” Heaney said.  “But the more you use tactics that we recognize as getting you influence, the more you buy into the system, and the more you buy into the system, the more you open yourself up to compromise.”

In Occupy Wall Street’s case, Heaney said demands could be as vague as simply calling for financial bailout programs to apply to individuals rather than banks.

Most of those in Zuccotti Park, though, don’t see the need for a change in tactics.  At least not yet.

“There isn’t a consolidated message, and I don’t think there needs to be,” said Andrew Lynn, 34, who drove the three hours from his home in Troy, N.Y., to help the demonstrators’ media team.

So far, Occupy Wall Street seems to be doing just fine without a unified message.  As Andrew Grossman reported for The Wall Street Journal, the protest doesn’t appear to be losing any steam:

Meanwhile, the encampment in Zuccotti Park showed no signs of ending, despite falling temperature and a night of rain.  Shortly after 1 a.m. Sunday, a few hundred people huddled under tarps and sleeping bags filled the windswept plaza.  Once the sun rose, more joined:  Members of Transport Workers Union Local 100, which represents nearly 38,000 workers in the city’s bus and subway systems, marched in to cheers.

Protesters distributed a newspaper – “The Occupied Wall Street Journal” – that they printed using money raised online.

Its lead story began:  “What is occurring on Wall Street right now is remarkable.  For over two weeks, in the great cathedral of capitalism, the dispossessed have liberated territory from the financial overlords and their police army.”

At this point, it appears as though the activists participating in the Occupy Wall Street effort should stick with their unrestricted focus.  If it ain’t broke, don’t fix it.


 

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Circular Firing Squad

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I knew this would happen.  Near the end of Obama’s first year in office, I anticipated that the President’s polling numbers would eventually sink and his reelection campaign would face strong headwinds.  By that point – on the eve of his reelection campaign – someone would blame the defection of white voters for Obama’s failure to win a second term.  In December of 2009, I wrote a piece discussing how the “race card” would not serve as a “free pass” for the Disappointer-In-Chief.  I referenced critiques, written by several African-American commentators, who were more-than-a-little upset with Obama’s job performance during that first year.

As expected, once Obama’s approval rating dropped to 40%, it didn’t take too long for someone to step forward with the “blame whitey” meme.  Melissa Harris-Perry, a professor of political science at Tulane University, recently wrote an article for The Nation, wherein she blamed racism for Obama’s declining popularity:

The 2012 election may be a test of another form of electoral racism:  the tendency of white liberals to hold African-American leaders to a higher standard than their white counterparts.  If old-fashioned electoral racism is the absolute unwillingness to vote for a black candidate, then liberal electoral racism is the willingness to abandon a black candidate when he is just as competent as his white predecessors.

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President Obama has experienced a swift and steep decline in support among white Americans – from 61 percent in 2009 to 33 percent now.  I believe much of that decline can be attributed to their disappointment that choosing a black man for president did not prove to be salvific for them or the nation.  His record is, at the very least, comparable to that of President Clinton, who was enthusiastically re-elected.  The 2012 election is a test of whether Obama will be held to standards never before imposed on an incumbent.  If he is, it may be possible to read that result as the triumph of a more subtle form of racism.

Despite the fact that Obama has yet to lose the 2012 election, Professor Harris-Perry has already seen fit to assemble a “circular firing squad” to assign blame for the Obama campaign’s inevitable failure.  Her theory about racism drew quick fire from more-intelligent commentators, who exposed the absurdity of her claim.  Corey Robin, who earned a PhD in Political Science from Yale, did a thorough job of debunking Professor Harris-Perry’s claim.  Among the points made by Dr. Robin, was this:

In fact, according to this September Washington Post story, “Five months ago, 83 percent of African Americans held ‘strongly favorable’ views of Obama, but in a new Washington Post-ABC news poll that number has dropped to 58 percent.”  That’s why, according to this piece, Obama has made special outreach efforts to blacks:  he’s worried about their dwindling support.  But as the Post also goes onto explain, “That drop is similar to slipping support for Obama among all groups.”

The most important point made by Corey Robin was his focus on the overarching problem of Obama’s politics:

But when we assess Obama, like any other president, we’re not thinking about his skills and talents; we’re thinking about what we call his “politics” and, even more important, how his politics reflect larger forces and structures in American society: corporate power, neoliberal ideology, declining organizational capacity on the left, and so on.  We see him, often, as a symptom of those forces, not a challenge to them.  Not, again, because of any lack of intelligence or ability on his part, but because, in part, he is a product of the structure (with all its failings) we would like to see dismantled.

Yves Smith of Naked Capitalism ripped Professor Harris-Perry’s article to shreds.  Ms. Smith concluded her essay by placing blame back on the man himself:

It took most people far too long to get that Obama was a phony because the presumption that a black man would be sympathetic to the fate of the downtrodden is a deeply embedded but never voiced prejudice (and this bias is exploited successfully by the right in depicting Obama as a socialist).

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These traditional iconic symbols of liberalism – secular urban elitism, blackness, technocratic skill, micro-issue identity based political organizing groups – have been fully subverted in the service of banking interests.  Obama is the ultimate, but not the only, piece of evidence that these symbols are now used simply to con the Democratic base out of their support and money.  The task of moving forward will require rebuilding the symbolic vocabulary of the defenders of the middle class.

Melissa Harris-Perry is forgetting that Barack Obama is only half  black.  In fact, many of us are blaming Obama’s white half for breaking so many campaign promises and for his selling out to the plutocracy.


 

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Tempus Fugit

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If a Democrat wants to challenge Barack Obama for the Democratic Party’s Presidential nomination, time is quickly running out.  It takes a while to put a campaign together.  Aside from rounding-up enough money to challenge an incumbent – who is expected to have a $1 billion war chest – there are other logistic challenges.  For starters, a campaign team must be assembled, along with a network across the states.  Messaging strategy and a campaign theme must be established.  It’s a huge deal.  Nevertheless, if the Democrats believe that they can just sit back and watch Obama swagger his way to re-election – they’re going to be in for a big disappointment.

As I pointed out in my last posting, Obama’s problems have expanded beyond weak polling numbers.  The Solyndra scandal can be expected to receive at least as much television coverage as the Casey Anthony “Tot Mom” trial.  Ron Suskind’s new book about the President’s handling of the economy, Confidence Men, has provided us with an abundance of insights on Obama’s leadership failings.  Those observations will reverberate throughout the 2012 campaign until Election Day.

Obama’s mishandling of the economic crisis is useful only as evidence of the President’s ineptitude in the domestic policy arena.  Has Obama done any better with his foray into foreign policy?  Steve Clemons provided us with the answer to that question by way of an article which appeared in The Atlantic.  The essay is also available at his own blog, The Washington Note.  Mr. Clemons provided a great analysis of Obama’s influence on the Israel – Palestine peace process:

Obama continues to parrot the line that peace can only be achieved between the “two parties”, that only they can really bring this global ulcer to a close, when they decide to negotiate.  The fact is that the status quo of frozen negotiations is benefiting the dominant, settlement-expanding Israel — and the US, in promising to veto at the UN Security Council Palestine’s bid for official state recognition, is playing guarantor to one side, undermining the aspirations of others on the other side of the equation.  What if the US had said to Kosovo — no statehood, no recognition from the US until you resolve all of your ongoing issues with Russia?

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Obama is assuring the further emasculation and perhaps final demise of Palestine’s moderates.  Obama is also treating the Israelis and Palestinians as if they are on equal footing, equally able to concede to each other’s demands.  What Obama doesn’t get is that a substantial portion of Israel’s population loves not having a deal and never wants one.  They are OK with a peace process to nowhere — but that is not acceptable for the less-endowed, less-powerful Palestinian side.  Hamas is in the rejectionist corner as well, seeing its fortunes rise as earnest efforts at peace go nowhere.

The world watched Barack Obama lose a battle in the last two years with Israel Prime Minister Benjamin Netanyahu over Israeli settlement expansion in contested and occupied territories.  This is like the Soviet Union having lost a war of wills at the height of its power with Cuba.

The client state trumped the President of the United States — telegraphing to many around the world that President Obama ultimately didn’t have the courage of his convictions and wasn’t able to deploy power and statecraft to achieve the outlines of what he called for in his lofty rhetoric.  Obama’s UN General Assembly speech has done nothing to reverse the impression that Netanyahu is the alpha dog in the relationship with President Obama — and this is truly tragic and geostrategically consequential.

Well, at least Obama is consistent  .  .  .  equally inept and spineless on foreign policy issues as he is when challenged with domestic policy matters.

Will any Democrat step up to prevent the Republican Party from taking over the White House (any more than it already has with Obama in there)?  The President’s apologists can no longer dismiss criticism of this administration by characterizing it as propaganda from Fox News.  Matt Taibbi’s recent remark about Obama exemplifies how an increasing number of Americans – from across the political spectrum – feel about our current President:

I just don’t believe this guy anymore, and it’s become almost painful to listen to him.

Wake up, Democrats!  Time is of the essence.


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Time For Sanity

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Amid all of the television news specials, turgid essays and grim pictorials we have seen on the tenth anniversary of the September 11 attacks – there have been a few encouraging glimpses of sanity.  Several commentators have pointed out that Osama Bin Laden got exactly what he wanted when America reacted to that tragedy by spending trillions on military assaults, which ended up killing unknown thousands of innocent Muslims – also known as “collateral damage”.

How many otherwise peace-loving Muslims will be attracted to Islamist extremism because of outrage over a “war on terror” they perceive as a “war on Islam”?  How badly has our economy been damaged because a military invasion of Iraq was sold as an effective way to prevent another 9/11?

Another tragic change Bin Laden brought to America was the inflammation of a pre-existing National Security Gestapo, which had always been hell-bent on having its way – individual freedom and privacy be damned!  We have witnessed how Barack Obama has been more than happy to accommodate those forces – many of which are private contractors – deliberately placed out of the reach of that pesky Freedom of Information Act.

How did we get to this deteriorated situation?  The mass media bear a large share of the responsibility.  Their need to out-sensationalize the competition helped fuel a consensual mindset, ginned-up with rage and ready to support whatever junta could strike back at our enemy with unrestrained force.  We were told that this enemy was terrorism itself – a tactic.  Our government had declared war against a tactic.  Anyone who questioned that battle was characterized as weak or unpatriotic.

It is only now – ten years after the tragedy – when people are willing to take a rational look at how our political leaders and our media establishment reacted to (or took advantage of) these events.

Spencer Ackerman wrote an article for Wired with the title, “How to Defeat Terrorism:  Refuse to Be Terrorized”.  In the political world, the refusal to be terrorized requires the courage to stand up to intimidation and accusations of being “weak on terror”.  In fact, our political leaders have been rendered weak from terror.  That weakness has resulted in significant deterioration of our personal liberties as well as capitulation to those lobbyists and pressure groups demanding unlimited expenditures in the name of “homeland security”.  Spencer Ackerman provided this explanation:

Look at the charts that Danger Room’s Lena Groeger compiled.  She tallies $6.6 trillion in defense spending after 9/11.  There is nothing that al-Qaida could possibly do to justify even a slice of such a monster expenditure.  Why did it happen?

Former White House counterterrorism chief Richard Clarke has an answer.  “There’s going to be a terrorist strike some day,” Clarke told Frontline for its “Top Secret America” documentary this week.  “And when there is, if you’ve reduced the terrorism budget, the other party, whoever the other party is at the time, is going to say that you were responsible for the terrorist strike because you cut back the budget.  And so it’s a very, very risky thing to do.”

*   *   *

It’s much harder to be the one to stand up and say the threat of terrorism is too minor for such expanded surveillance, and the government needs to stop.  When libertarian Sen. Rand Paul (R-Kentucky) made precisely that case, Democratic Senate leader Harry Reid (D-Nevada) subjected him to cheap, hypocritical demagoguery.

The only way this changes is if citizens change the political incentives for politicians.  Two-bit terrorists will always be around, sadly.  But when the Harry Reids get major political blow-back for attacking the Rand Pauls, then – and only then – will the 9/11 Era be truly over.

Another important theme of Ackerman’s essay is the absence of an “end game” for this war on terror.  After conceding that Defense Secretary Leon Panetta may be entirely justified in claiming that al-Qaida is on the verge of strategic collapse, Ackerman emphasizes that “it would be foolish” to relent at this point:

But all of that is only justifiable if the new U.S. Shadow Warsundeclared, largely covert wars in Pakistan, Yemen, Somalia and beyond – actually end soon.

*   *   *

When Barack Obama ran for president, his national security team told me, in an extensive series of interviews, that a major focus of his presidency would be to confront what they called the “politics of fear” – the national-security freakout that led to counterproductive post-9/11 moves like invading Iraq.  But since coming to power, Obama has accommodated himself to the politics of fear far more than he’s confronted it.

*   *   *

Only when citizens make it acceptable for politicians to recognize that the threat of terrorism isn’t so significant can the country finally get what it really needs, 10 years later:  closure.

President Obama created a new challenge for himself:  By killing off Bogeyman Bin Laden and with the imminent destruction of the world’s largest terrorist organization, he is now faced with the duty to lead America out of this dark age of terrorphobia.


 

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Occupy Wall Street – For Some Reason

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Back in July, the Canadian-based, activist network known as Adbusters, announced plans to organize an occupation of Wall Street on September 17, 2011.  Their July 13 announcement revealed that the ultimate goal of the occupation was deliberately left open:

On September 17, we want to see 20,000 people flood into lower Manhattan, set up tents, kitchens, peaceful barricades and occupy Wall Street for a few months.  Once there, we shall incessantly repeat one simple demand in a plurality of voices.

Tahrir succeeded in large part because the people of Egypt made a straightforward ultimatum – that Mubarak must go – over and over again until they won.  Following this model, what is our equally uncomplicated demand?

The most exciting candidate that we’ve heard so far is one that gets at the core of why the American political establishment is currently unworthy of being called a democracy:  we demand that Barack Obama ordain a Presidential Commission tasked with ending the influence money has over our representatives in Washington.  It’s time for DEMOCRACY NOT CORPORATOCRACY, we’re doomed without it.

This demand seems to capture the current national mood because cleaning up corruption in Washington is something all Americans, right and left, yearn for and can stand behind.

A website specifically dedicated to this event was created:  OccupyWallSt.org.  The site has a Mission Statement, proclaiming that on September 17, a tent city will be established in lower Manhattan:

Once there, we shall incessantly repeat one simple demand in a plurality of voices and we will not leave until that demand has been met.

As for that mysterious demand, the website provides a hint as to how it will be determined:

What we demand from our government is for the people to decide through democratic consensus, not this website.  A Facebook poll started by Adbusters suggests the demand might be an end to corporate personhood.

So, will the Facebook poll serve as the vehicle for reaching that “democratic consensus”?

On August 23, Adbusters announced that the Internet hacktivist group, Anonymous had joined #OCCUPYWALLSTREET.  Anonymous prepared this one-minute, promotional video for the cause.  Once Anonymous got on board, the Department of Homeland Security became interested in the event (if it had not done so already).  Computerworld magazine reported that on September 2, a bulletin was issued by the DHS National Cybersecurity and Communications Integration Center (NCCIC):

The DHS alert also warns of three cyber attacks and civil protests it says are planned by Anonymous and affiliated groups.

The first attack, dubbed Occupy Wall Street (OWS) is scheduled for Sept. 17.

The so-called ‘Day of Rage’ protest was first announced by a group called Adbusters in July and is being actively supported by Anonymous.  The organizers of OWS hope to get about 20,000 individuals to gather on Wall Street on that day to protest various U.S. government policies.

It sounds to me as though the Department of Homeland Security is getting revved-up for a mass-rendition to Guantanamo and a busy schedule of “Full Roto-Rooter” cavity searches.  It could get scary.  The camoflauge-attired attendees probably won’t be interested in hearing my explanation that “I’m just here to demand the dismissal of Kathryn Wylde from her post as a Class C Director of the New York Federal Reserve Bank.”

My favorite commentator for MarketWatch, Paul Farrell, predicted that the turnout could be a bit larger than anticipated:

Given today’s intense anger against America’s totally dysfunctional government, no one should be surprised if 90,000 arrive for Occupy Wall Street and its solidarity allies at other financial centers across the world, armed with their rallying cry to stop “the corruption of our governments by Wall Street money.”

After discussing the potential for historic change Occupy Wall Street seems to offer, Farrell posed the simple question:  Will it work?

In the final analysis, this may be a bad case of “too little, too late:”  Back in 1776 our original 57 revolutionaries also “had enough” when they signed the Declaration of Independence. They also risked everything, family, fortunes and lives.  They actually had “one simple demand,” to be free of a tyrannical ruler, George III.

Today, the new ruler is greedy, corrupting democracy.  But it’s locked deep in the American soul.  Maybe they’re asking the wrong question:  Not “Is America Ready for a Tahrir Moment?” Rather ask:  “Is America Past That Moment, Buried Too Deep in a Culture of Greed to Change?”

If so, Wall Street wins, again.  And America loses, again.

The promoters of the Tea Party movement were able to channel the outrage experienced by taxpayers, who watched the Federal Reserve hand trillions over to a small handful of ineptly-managed megabanks.  The Tea Party promoters redirected and exploited that anger as a motivating force, which provoked those citizens to vote against their own interests.  The attempt to tame the beast with regulation (as had been done after the Great Depression) was sabotaged.  Could the Occupy Wall Street effort bring justice back to defeat financial anarchy?  It would be nice if it worked, although I gave up on “hope” in early 2009.


 

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Voices Of Reason For An Audience Of Psychotics

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A “double-dip” recession?  Maybe not.  In his August 30 article for the Financial Times, economist Martin Wolf said the 2008 recession never ended:

Many ask whether high-income countries are at risk of a “double dip” recession.  My answer is:  no, because the first one did not end.  The question is, rather, how much deeper and longer this recession or “contraction” might become.  The point is that, by the second quarter of 2011, none of the six largest high-income economies had surpassed output levels reached before the crisis hit, in 2008 (see chart).  The US and Germany are close to their starting points, with France a little way behind.  The UK, Italy and Japan are languishing far behind.

If that sounds scary – it should.  The fact that nothing was done by our government to address the problems which caused the financial crisis is just part of the problem.  The failure to make an adequate attempt to restore the economy (i.e.  facilitate growth in GDP as well as a reduction in unemployment) poses a more immediate risk.  Here’s more from Martin Wolf:

Now consider, against this background of continuing fragility, how people view the political scene.  In neither the US nor the eurozone, does the politician supposedly in charge – Barack Obama, the US president, and Angela Merkel, Germany’s chancellor – appear to be much more than a bystander of unfolding events, as my colleague, Philip Stephens, recently noted.  Both are – and, to a degree, operate as – outsiders.  Mr Obama wishes to be president of a country that does not exist.  In his fantasy US, politicians bury differences in bipartisan harmony.  In fact, he faces an opposition that would prefer their country to fail than their president to succeed.  Ms Merkel, similarly, seeks a non-existent middle way between the German desire for its partners to abide by its disciplines and their inability to do any such thing.  The realisation that neither the US nor the eurozone can create conditions for a speedy restoration of growth – indeed the paralysing disagreements over what those conditions might be – is scary.

Centrism continues to get a bad name because two of the world’s most powerful leaders have used that term to “re-brand” passivity.

Martin Wolf is not the only pundit expressing apprehension about the future of the global economy.  Margaret Brennan of Bloomberg Television interviewed economist Nouriel Roubini (a/k/a “Dr. Doom”) on August 31.  Roubini noted that there is no reason to believe that Republicans will consent to any measures toward restoring the economy during this election year because “if things get worse – it’s only to their political benefit”.  He estimated a “60% probability of recession next year”.  Beyond that, Roubini focused on the forbidden topic of stimulus.  He pointed out that the limited 2009 stimulus program prevented a recession from becoming another Great Depression “but it was not significant enough”.  Nevertheless, a real economic stimulus is still necessary – but don’t count on it:

With millions of unemployed construction workers, we need a trillion-dollar, five-year program just for infrastructure – but that’s not politically feasible, and that’s why there will be a fiscal drag and we will have a recession.

Nick Baker of Bloomberg BusinessWeek observed that Dr. Roubini’s remarks negatively impacted the stock market on Wednesday, “offsetting reports showing faster-than-estimated growth in American business activity and factory orders.”

If you aren’t worried yet, the most recent Weekly Market Comment by economist John Hussman of the Hussman Funds might get you there.  Pay close attention to Hussman’s distinction between opinion and evidence:

It is now urgent for investors to recognize that the set of economic evidence we observe reflects a unique signature of recessions comprising deterioration in financial and economic measures that is always and only observed during or immediately prior to U.S. recessions.  These include a widening of credit spreads on corporate debt versus 6 months prior, the S&P 500 below its level of 6 months prior, the Treasury yield curve flatter than 2.5% (10-year minus 3-month), year-over-year GDP growth below 2%, ISM Purchasing Managers Index below 54, year-over-year growth in total nonfarm payrolls below 1%, as well as important corroborating indicators such as plunging consumer confidence.  There are certainly a great number of opinions about the prospect of recession, but the evidence we observe at present has 100% sensitivity (these conditions have always been observed during or just prior to each U.S. recession) and 100% specificity (the only time we observe the full set of these conditions is during or just prior to U.S. recessions). This doesn’t mean that the U.S. economy cannot possibly avoid a recession, but to expect that outcome relies on the hope that “this time is different.”

While the reduced set of options for monetary policy action may seem unfortunate, it is important to observe that each time the Fed has attempted to “backstop” the financial markets by distorting the set of investment opportunities that are available, the Fed has bought a temporary reprieve only at the cost of amplifying the later fallout.

Be sure to read Hussman’s entire essay.  It provides an excellent account of the Fed’s role in helping to cause the financial crisis, as well as its reinforcement of a “low level equilibrium” in the economy.  In response to those hoping for another round of quantitative easing, Hussman provided some common sense:

The upshot is that it remains unclear whether the Fed will revert to reckless policy in September, or whether the growing disagreement within the FOMC will result in a more enlightened approach – abandoning the “activist Fed” role, and passing the baton to public policies that encourage objectives such as productive investment, R&D, broad-benefit infrastructure, and mortgage restructuring – rather than continuing reckless monetary interventions that defend and encourage the continued misallocation of resources and the repeated emergence of speculative bubbles.

President Obama should look to John Hussman if he wants to learn the difference between centrism and passivity.


 

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From Disappointing To Creepy

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It was during Barack Obama’s third month in the White House, when I realized he had become the “Disappointer-In-Chief”.  Since that time, the disappointment felt by many of us has progressed into a bad case of the creeps.

Gretchen Morgenson of The New York Times has been widely praised for her recent report, exposing the Obama administration’s vilification of New York State Attorney General Eric Schneiderman for his refusal to play along with Team Obama’s efforts to insulate the fraud-closure banks from the criminal prosecution they deserve.  The administration is attempting to pressure each Attorney General from every state to consent to a settlement of any and all claims against the banksters arising from their fraudulent foreclosure practices.  Each state is being asked to release the banks from criminal and civil liability in return for a share of the $20 billion settlement package.  The $20 billion is to be used for loan modifications.  Leading the charge on behalf of the administration are Shaun Donovan, the Secretary of Housing and Urban Development, as well as a number of high-ranking officials from the Justice Department, led by Attorney General Eric Hold-harmless.  Here are some highlights from Ms. Morgenson’s article:

Mr. Schneiderman and top prosecutors in some other states have objected to the proposed settlement with major banks, saying it would restrict their ability to investigate and prosecute wrongdoing in a variety of areas, including the bundling of loans in mortgage securities.

*   *   *

Mr. Schneiderman has also come under criticism for objecting to a settlement proposed by Bank of New York Mellon and Bank of America that would cover 530 mortgage-backed securities containing Countrywide Financial loans that investors say were mischaracterized when they were sold.

The deal would require Bank of America to pay $8.5 billion to investors holding the securities; the unpaid principal amount of the mortgages remaining in the pools totals $174 billion.

*   *   *

This month, Mr. Schneiderman sued to block that deal, which had been negotiated by Bank of New York Mellon as trustee for the holders of the securities.

The passage from Gretchen Morgenson’s report which drew the most attention concerned a statement made to Schneiderman by Kathryn Wylde.  Ms. Wylde is a “Class C” Director of the Federal Reserve Bank of New York.  The role of a Class C Director is to represent the interests of the public on the New York Fed board.  Barry Ritholtz provided this reaction to Ms. Wylde’s encounter with Mr. Schneiderman:

If the Times report is accurate, and the quote below represents Ms. Wylde’s comments, than that position is a laughable mockery, and Ms. Wylde should resign effective immediately.

The quote in question, which was reported to have occurred at Governor Hugh Carey’s funeral (!?!)  was as follows:

“It is of concern to the industry that instead of trying to facilitate resolving these issues, you seem to be throwing a wrench into it.  Wall Street is our Main Street — love ’em or hate ’em.  They are important and we have to make sure we are doing everything we can to support them unless they are doing something indefensible.”

I do not know if Ms. Wylde understands what her proper role should be, but clearly she is somewhat confused.  She appears to be far more interested in representing the banks than the public.

Robert Scheer of Truthdig provided us with some background on Obama’s HUD Secretary, Shaun Donovan, one of the administration’s arm-twisters in the settlement effort :

Donovan has good reason not to want an exploration of the origins of the housing meltdown:  He has been a big-time player in the housing racket for decades.  Back in the Clinton administration, when government-supported housing became a fig leaf for bundling suspect mortgages into what turned out to be toxic securities, Donovan was a deputy assistant secretary at HUD and acting Federal Housing Administration commissioner.  He was up to his eyeballs in this business when the Clinton administration pushed through legislation banning any regulation of the market in derivatives based on home mortgages.

Armed with his insider connections, Donovan then went to work for the Prudential conglomerate (no surprise there), working deals with the same government housing agencies that he had helped run.  As The New York Times reported in 2008 after President Barack Obama picked him to be secretary of HUD, “Mr. Donovan was a managing director at Prudential Mortgage Capital Co., in charge of its portfolio of investments in affordable housing loans, including Fannie Mae and the Federal Housing Administration debt.”

Obama has been frequently criticized for stacking his administration with people who regularly shuttle between corporations and the captured agencies responsible for regulating those same businesses.  Risk management guru, Christopher Whalen lamented the consequences of Obama’s cozy relationship with the Wall Street banks – most tragically, those resulting from Obama’s unwillingness to adopt the “Swedish solution” of putting the insolvent zombie banks through temporary receivership:

The path of least resistance politically has been to temporize and talk.  But by following the advice of Rubin and Summers, and avoiding tough decisions about banks and solvency, President Obama has only made the crisis more serious and steadily eroded public confidence.  In political terms, Obama is morphing into Herbert Hoover, as I wrote in one of my first posts for Reuters.com, “In a new period of instability, Obama becomes Hoover.”

Whereas two or three years ago, a public-private approach to restructuring insolvent banks could have turned around the economic picture in relatively short order, today the cost to clean up the mess facing Merkel, Obama and other leaders of western European nations is far higher and the degree of unease among the public is growing.  You may thank Larry Summers, Robert Rubin and the other members of the “do nothing” chorus around President Obama for this unfortunate outcome.

We are now past the point of blaming Obama’s advisors for the President’s recurrent betrayal of the public interest while advancing the goals of his corporate financiers.  Yves Smith of Naked Capitalism has voiced increasingly harsh appraisals of Obama’s performance.  By August 22, it became clear to Ms. Smith that the administration’s efforts to shield the fraud-closure banks from liability exposed a scandalous degree of venality:

It is high time to describe the Obama Administration by its proper name:  corrupt.

Admittedly, corruption among our elites generally and in Washington in particular has become so widespread and blatant as to fall into the “dog bites man” category.  But the nauseating gap between the Administration’s propaganda and the many and varied ways it sells out average Americans on behalf of its favored backers, in this case the too big to fail banks, has become so noisome that it has become impossible to ignore the fetid smell.

*   *   *

Team Obama bears all the hallmarks of being so close to banks and big corporations that it has lost all contact with and understanding of mainstream America.

The latest example is its heavy-handed campaign to convert New York state attorney general Eric Schneiderman to a card carrying member of the “be nice to our lords and masters the banksters” club.  Schneiderman was the first to take issue with the sham of the so-called 50 state attorney general mortgage settlement.  As far as the Administration is concerned, its goal is to give banks a talking point and prove to them that Team Obama is protecting their backs in a way that the chump public hopefully won’t notice.

*   *   *

Yet rather than address real, serious problems, senior administration officials are instead devoting time and effort to orchestrating a faux grass roots campaign to con a state AG into thinking his supporters are deserting him because he has dared challenge the supremacy of the banks.

I would include Eric Schneiderman in a group with Elizabeth Warren and Maria Cantwell as worthy challengers to Barack Obama in the 2012 Presidential Election.  I wish one of them would step forward.


 

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Left Out

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Support for President Obama’s re-election bid is in disarray.  His sinking poll numbers have left many Democrats hoping for a miracle (i.e. some degree of economic recovery before November of 2012).  A significant component of the party’s progressive bloc is looking for a challenger to step forward – as can be seen at the StopHoping.org website.  One of the bloggers at Corrente – Hugh – recently had a good laugh at those who were anticipating a possible Primary challenge to Obama from former Wisconsin Senator Russ Feingold.  Here is some of what Hugh had to say:

The point is that Feingold could have been, and should have been, if he were legit, a focus for progressive organizing.  But he wasn’t.  . . . Feingold could have been the voice of opposition to Bush and his policies, but the silence from the Wisconsin Senator’s office was deafening.  He could have played the same role opposing Obama’s right wing corporatist agenda.  He did not.  Indeed he lost his Senate seat largely because of his failure to distance himself from Obama.

There are other reasons to dislike Feingold and question his progressive credentials.  He voted for John Roberts as Chief Justice of the Supreme Court. He voted for Obamacare.  And he is a deficit hawk.

Many left-leaning commentators have been offering suggestions to the President as to what actions he should be taking – as well as what message he should be delivering.  Experience has demonstrated that Obama never pays attention to well-intentioned, sensible advice.  How many times has Robert Reich written a roadmap for the President to use toward saving the economy as well as Obama’s own Presidency – only to be ignored?  As the campaign drags on, try to keep count of how many commentaries are written under the theme:  “What Obama Needs to Say and Do Right Now”.  Rest assured that he won’t say or do any of it.

Meanwhile, Republican voters are currently flocking to the standard-bearer du jour, Texas Governor Rick Perry.  Alexander Cockburn of CounterPunch wrote a great essay about Perry’s unmatched political instincts and the challenges ahead for both parties in the upcoming Presidential race:

The obvious question is whether Perry, having won the right, can clamber back along the kook branch towards something vaguely resembling the solid timber of sanity, to capture the necessary independents and disillusioned folk who bet on Obama in 2008.  Hard to say.  Perry is pretty far out on the limb.  Reagan, with the strenuous help of the press, managed the crawl back in 1980, amid widespread disappointment and disgust with Jimmy Carter.  Disappointment and disgust with Barack Obama?  The president has slithered down in the most recent polls, and now is just above the 50 per cent disapproval rating.  There are still around 30 million Americans without work, or enough work. There’s the endlessly cited observation that no president presiding over more than a 7 per cent jobless rate can hope for a second term.

The progressive sector is already rallying the Obama vote by pounding out the unsurprising message that Perry is a shil and errand boy for corporate America, Amazing! Imagine that a conservative Texas Republican would end up in that corner, arm in arm with Barack Obama, messenger of hope and change, also shil and errand boy for corporate America, starting with the nuclear industry, the arms sector, the ag/pesticide complex and moving on through Wall Street and the Fed, and equipped with truly noxious beliefs about fiscal discipline, the merits of compromise.  He’s a far more dangerous man to have in the Oval Office than Perry.  We need a polarizer to awaken the left from its unending, unbreakable infatuation with our current president, despite all the horrors he has perpetrated and presided over, most significantly the impending onslaught on Social Security and Medicare.

Any Republican who wants to maintain a viable candidacy will be forced to start taking some hard swings at Rick Perry.  Jon Huntsman has already started to do so.  Michele Bachmann might not, if she wants a shot at becoming Perry’s running mate.  It won’t matter what Ron Paul says … because the mainstream media are pretending as though he doesn’t exist.  If you haven’t seen it yet, Jon Stewart ran a superb piece, exhibiting how all of the major news outlets – including Fox – were apparently reading from the same script after Congressman Paul came within 100 votes of beating Michele Bachmann in the Iowa Straw Poll.  Watching those reports could have led one to believe that Ron Paul had dropped out of the race.  On August 17, Tara Sartor of the Pew Research Center’s Project for Excellence in Journalism provided this analysis of how the television news organizations squelched Ron Paul’s near-victory in Iowa:

In a further attempt to gauge the post-straw poll attention to Paul’s campaign, PEJ also used the Snapstream server’s closed captioning capability to assess the candidates’ television coverage in the first few days after that balloting.

The sample included the three network Sunday morning panel shows on August 14, the morning and evening network news programs on August 15 and four hours of prime-time cable and one hour of daytime from each of the three major cable news networks on August 15.

According to that analysis, Paul was mentioned just 29 times. By comparison, Perry was mentioned 371 times, Bachmann was mentioned 274 times, and Romney was mentioned 183 times.

I hope that the anti-Paul conspiracy helps to energize those voters who had been ambivalent about supporting the “other Texan” in the race.

At some point, the progressive Democrats are going to be faced with the ugly reality that they don’t have a candidate in the 2012 Presidential campaign.  As has been the case with Ron Paul and his supporters – the Left will be left out.


 

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