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Has Fox News Destroyed the Republican Party?

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It was more than two years ago when ABC News televised Terry Moran’s interview with David Frum, former speechwriter for George W. Bush.  On March 23, 2010 – the day after the interview – the ABC News website ran this piece by David Schoetz, which included an embedded video of the interview.  As we can see from the article, Moran’s interview with Frum was right on target:

Among the comments Frum made to “Nightline” was the assertion that “nobody ever won an election by spitting at his political opponents” and that “anger trapped the [Republican] leadership.”  But it was this exchange, which you can see starting at the 2:20 mark, that is generating some buzz today: Moran: “It sounds like you’re saying that the Glenn Becks, the Rush Limbaughs, hijacked the Republican party and drove it to a defeat?”  Frum: “Republicans originally thought that Fox worked for us and now we’re discovering we work for Fox.  And this balance here has been completely reversed. The thing that sustains a strong Fox network is the thing that undermines a strong Republican party.”  Our report posed the question: Will Democrats pay a price for pushing through health care at any cost? Or are Republicans the ones in trouble for the way they chose to fight?  We know where Frum stands.

As the battle over Obamacare began to reach a boiling point, Fox News televised a discussion between Bill O’Reilly and Charles Krauthammer on September 26 entitled, “Is Ted Cruz the new leader of the Republican Party?”  Krauthammer was less enthusiastic about Cruz than the fawning O’Reilly.  Krauthammer pointed out that the battle Cruz was waging against Obamacare was doomed and that Cruz was simply attempting to position himself as the next GOP Presidential candidate.  As an aside, I find it curious that those who tout the sanctity of the Constitution are so willing to ignore Article Two, Section 1, which states (in part):

No Person except a natural born Citizen, or a Citizen of the United States, at the time of the Adoption of this Constitution, shall be eligible to the Office of President; neither shall any person be eligible to that Office who shall not have attained to the Age of thirty five Years, and been fourteen Years a Resident within the United States.

Here is what Wikipedia provides concerning the controversy over this issue:

As Cruz was born in Canada, various commentators from the Austin American-Statesman[97] and the Los Angeles Times,[98] discussed Cruz’s legal status as a natural-born citizen. Because he was a U.S. citizen at birth (since his mother was a U.S. citizen who lived in the U.S. for more than 10 years as required by the Nationality Act of 1940), most commentators believe Cruz is eligible to serve as President of the United States.[10][99][10][100] After hearing that according to legal experts he is a dual citizen of Canada and the U.S., Cruz announced on August 19, 2013 that he would renounce his Canadian citizenship.[101]

I enjoyed the last sentence, which stated, “After hearing that according to legal experts he is a dual citizen …”  One would have thought that Cruz might be a legal expert himself, since he graduated magna cum laude from Harvard Law School.  In any event, any plans Cruz had made for the Presidency were certainly destroyed by the government shutdown fiasco.  Of course, Cruz will always remain popular with his hard core supporters, despite the fact that he has alienated the Republican Party itself, and he has no chance of getting elected – even in the unlikely event that he should become the GOP nominee.

Cruz will always be haunted by his recitation of Green Eggs and Ham during his pseudo-filibuster, which Krauthammer aptly pointed out was simply an attempt to upstage the filibuster conducted by Rand Paul over the use of drones.

The bigger question concerns the devastation this fiasco has caused for the Republican Party.  As David Frum pointed out, the hero worship Fox News brings to the wingnuts of the GOP empowers those characters, making the GOP a party of extremists.  Although a recent ABC News/Washington Post poll showed that 74 percent of Americans disapproved of the way Congressional Republicans handled the budget crisis, the more important issue concerns the extent to which the GOP has sustained long-term damage as a result of this episode.  If it causes Republicans to become unelectable, they will have Fox News to blame.


 

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2012 Jackass of the Year Award

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It’s already time to announce the winner of TheCenterLane.com’s fifth annual Jackass of the Year Award.  This was another one of those years when we had a last-minute contestant, who tried to his best to snatch the award away from those who had been working all year for the honor.

In the aftermath of the tragic mass-murder of 26 young children at the Sandy Hook Elementary School, the National Rifle Association’s vice-president, Wayne LaPierre, held his infamous press conference on December 21, wherein he blamed everything except guns for the killings.  LaPierre blamed television violence, video games, hurricanes, “other natural or man-made disaster(s)”, terrorist attacks, and numerous other scapegoats.  Did he blame porn?  I can’t remember.  After the press conference, even Rupert Murcoch’s New York Post saw fit to trash the guy with its headline:  “Gun Nut: NRA Loon In Bizarre Rant Over Newtown”.  The New York Daily News ran a headline describing LaPierre as a “vile NRA nut”, and the “Craziest Man on Earth”.  Although I lack the professional credentials to render a diagnosis on the sanity of any individual, I do know a jackass when I see one.  Wayne LaPierre is such a severe jackass that he deserves serious consideration as our 2012 Jackass of the Year.

Every year I have to resist the temptation to nominate Stuart Varney of Fox News.  Varney is the senior business commentator for the Fox News Network.  It seems as though Jon Stewart runs at least one video clip per week of Varney making a fool of himself.  Varney is an unabashed hater of solar power and most other sources of “green energy”.  He frequently refers to advocates of green energy as “greenies”, as though such an approach were something shameful.  Nevertheless, Varney was able to dodge the award this year with his recent interview with Tommy Chong.  The interview wasn’t that great, but it was good enough to warrant sparing Varney the indignity of this award.

Unfortunately, there is no single individual whom we can blame for the December 21 hysteria.  The Vancouver Sun ran an interesting article about a local author named Brad Carrigan, who did his part to promote a good bit of the December 21 foolishness through a website where he sold books, videos, his own seminars and sessions at his “spiritual retreat centre in the mountains”.  Unfortunately, Carrigan did not become prominent enough to earn our Jackass of the Year Award.

In an election year, the candidates are usually too easy to single out for this award.  Nevertheless, the 2012 Presidential Campaign brought us this year’s Jackass of the Year Award winner:  Donald Trump.  His idiotic “birther-ism” served no other purpose than to motivate 400,000 people to sign a petition, requesting Macy’s to abandon its relationship with Trump.  A good place to find a handy list of reasons why Trump deserves this award can be found at the New York Daily News website.  There you will find a link to Penn Jillette’s book excerpt at Salon about Trump and what it was like to appear on Celebrity Apprentice.  According to Jillette, Trump really cares about the things insignificant bloggers have to say about him.  As one such insignificant blogger, all I can say is:  Congratulations, Jackass!


 

Talking To The Money

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By now, you’ve heard about it dozens of times.  Mitt Romney is taking heat for remarks he made at a private fundraiser in Boca about the 47 percent of Americans who won’t vote for him because they enjoy taking handouts from the government.  In response to the dustup, the Romney camp has focused on remarks made by Barack Obama during the 2008 campaign about people who “cling to their guns and religion”.  Obama’s discussion with “Joe the Plumber” about “spreading the wealth around” has been cited as another example of Obama’s favoritism of one population segment over another.  Nevertheless, as Brit Hume explained to Greta on Fox News, the Republicans’ focus on those remarks did not work during the 2008 campaign and there is no reason to believe that it will gain any more traction during the current election cycle.

Actually, there is a better example of Obama’s expression of contempt for a bloc of voters during a fundraiser, which is somewhat analogous the situation involving Romney in Boca.  During the mid-term election campaign in September of 2010, Obama managed to alienate a good number of his own supporters during an event at the home of the appropriately-named Rich Richman.  The event demonstrated how politicians – from either party – will speak more candidly and cynically about the “little people” when talking to their fat cat contributors.  Nevertheless, the Republicans will not likely exploit Obama’s remarks at the Rich-man event.  Of course, Obama supporters would be reminded that their candidate is not a significantly different alternative to Romney.  However, by the same token, Romney supporters would be reminded that their candidate does not offer a significantly distinct alternative to Obama.  As a result, the Republicans will never use it.

Let’s jump into the time machine and look back at how I discussed the Richman event on September 20, 2010:

President Obama recently spoke at a $30,000-per-plate fundraising event for the Democratic National Committee at the home of Richard and Ellen Richman.  (Think about that name for a second:  Rich Richman.)  Mr. Richman lives up to his surname and resides in the impressive Conyers Farm development in Greenwich, Connecticut.  Christopher Keating of the Capitolwatch blog at courant.com provided us with the President’s remarks, addressed to the well-heeled attendees:

.   .   .   Democrats, just congenitally, tend to get – to see the glass as half empty.   (Laughter.)  If we get an historic health care bill passed – oh, well, the public option wasn’t there.  If you get the financial reform bill passed –  then, well, I don’t know about this particularly derivatives rule, I’m not sure that I’m satisfied with that.  And gosh, we haven’t yet brought about world peace and – (laughter.)  I thought that was going to happen quicker.  (Laughter.) You know who you are.  (Laughter.)

The tactlessness of those remarks was not lost on Glenn Greenwald of Salon.com.  Mr. Greenwald transcended the perspective of an offended liberal to question what could possibly have been going on in the mind of the speaker:

What’s most striking about Obama’s comments is that there is no acceptance whatsoever of responsibility (I’ve failed in some critical areas; we could have/should have done better).  There’s not even any base-motivating vow to fight to fix these particular failures (we’ll keep fighting for a public option/to curb executive power abuses/to reduce lobbyist and corporate control of our political process).  Instead, he wants you to know that if you criticize him — or even question what he’s done (“well, I don’t know about this particular derivatives rule, I’m not sure that I’m satisfied with that”) – it’s your fault:  for being some sort of naive, fringe-leftist idiot who thought he would eliminate the Pentagon and bring about world peace in 18 months, and/or because you simply don’t sufficiently appreciate everything he’s done for you because you’re congenitally dissatisfied.

*    *    *

Sitting at a $30,000 per plate fundraising dinner and mocking liberal critics as irrational ingrates while wealthy Party donors laugh probably does wonders for bruised presidential egos, but it doesn’t seem to be a particularly effective way to motivate those who are so unmotivated.  Then again, Barack Obama isn’t actually up for election in November, so perhaps the former goal is more important to him than the latter.  It certainly seems that way from these comments.

Of course, liberals weren’t the only Obama supporters who felt betrayed by the President’s abandonment of his campaign promises.  In fact, Obama owed his 2008 victory to those independent voters who drank the “Hope and Change” Kool-Aid.

Glenn Greenwald devoted some space from his Salon piece to illustrate how President Obama seems to be continuing the agenda of President Bush.  I was reminded of the quote from former Attorney General John Ashcroft in an article written by Jane Mayer for The New Yorker.  When discussing how he expected the Obama Presidency would differ from the Presidency of his former boss, George W. Bush, Ashcroft said:

“How will he be different?  The main difference is going to be that he spells his name ‘O-b-a-m-a,’ not ‘B-u-s-h.’ ”

One important difference that Ashcroft failed to anticipate was that Bush knew better than to disparage his own base.

By the onset of the 2012 Presidential Campaign, many of Obama’s 2008 supporters had become ambivalent about their former hero.  As I pointed out on August 13, once Romney had named Paul “Marathon Man” Ryan as his running mate (rather than Ohio Senator Rob Portman), he provided Democrats with a bogeyman to portray a Romney Presidency as a threat  to middle-class Americans:

As the Democratic Party struggled to resurrect a fraction of the voter enthusiasm seen during the 2008 campaign, Mitt Romney came along and gave the Democrats exactly what they needed:  a bogeyman from the far-right wing of the Republican Party.  The 2012 campaign suddenly changed from a battle against an outsourcing, horse ballet elitist to a battle against a blue-eyed devil who wants to take away Medicare.  The Republican team of  White and Whiter had suddenly solved the problem of Democratic voter apathy.

Nevertheless, some degree of disillusionment experienced by Obama’s supporters continues.  Consider the final paragraph from a September 20 essay by Robert Reich:

And even if Obama is reelected, more hard work begins after Inauguration Day – when we must push him to be tougher on the Republicans than he was in his first term, and do what the nation needs.

In other words, it will be up to the voters  to make sure they aren’t betrayed by Obama as they were during his first term.

The Republican insistence on attempting to portray Obama as a “Socialist” rather than a disingenuous poseur has served no other purpose than to invite an eloquent smackdown from the namesake of the GOP’s Patron Saint.

Romney’s failure to win the Presidential Election will be more the result of ignored opportunities than the result of gaffes.


 

Keeping The Megabank Controversy On Republican Radar

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It was almost a year ago when Lou Dolinar of the National Review encouraged Republicans to focus on the controversy surrounding the megabanks:

“Too Big to Fail” is an issue that Republicans shouldn’t duck in 2012.  President Obama is in bed with these guys.  I don’t know if breaking up the TBTFs is the solution, but Republicans need to shame the president and put daylight between themselves and the crony capitalists responsible for the financial meltdown.  They could start by promising not to stock Treasury and other major economic posts with these, if you pardon the phase, malefactors of great wealth.

One would expect that those too-big-to-fail banks would be low-hanging fruit for the acolytes in the Church of Ayn Rand.  After all, Simon Johnson, former Chief Economist for the International Monetary Fund (IMF), has not been the only authority to characterize the megabanks as intolerable parasites, infesting and infecting our free-market economy:

Too Big To Fail banks benefit from an unfair, nontransparent, and dangerous subsidy scheme.  This isn’t a market.  It’s a government-backed distortion of historic proportions.  And it should be eliminated.

Last summer, former Kansas City Fed-head, Thomas Hoenig discussed the problems created by what he called, “systemically important financial institutions” – or “SIFIs”:

… I suggest that the problem with SIFIs is they are fundamentally inconsistent with capitalism.  They are inherently destabilizing to global markets and detrimental to world growth.  So long as the concept of a SIFI exists, and there are institutions so powerful and considered so important that they require special support and different rules, the future of capitalism is at risk and our market economy is in peril.

So why aren’t the Republican Presidential candidates squawking up a storm about this subject during their debates?  Mike Konczal lamented the GOP’s failure to embrace a party-wide assault on the notion that banks could continue to fatten themselves to the extent that they pose a systemic risk:

When it comes to “ending Too Big To Fail” it actually punts on the conservative policy debates, which is a shame.  There’s a reference to “Explore reforms now being considered by the U.K. to make the unwinding of its biggest banks less risky for the broader economy” but it is sort of late in the game for this level of vagueness on what we mean by “unwinding.”  That unwinding part is a major part of the debate.  Especially if you say that you want to repeal Dodd-Frank and put into place a system for taking down large financial firms – well, “unwinding” the biggest financial firms is what a big chunk of Dodd-Frank does.

Nevertheless, there have been occasions when we would hear a solitary Republican voice in the wilderness.  Back in November,  Jonathan Easley of The Hill discussed the views of Richard Shelby (Ala.), the ranking Republican on the Senate Banking Committee:

“Dr. Volcker asked the other question – if they’re too big to fail, are they too big to exist?” Shelby said Wednesday on MSNBC’s “Morning Joe.”  “And that’s a good question.  And some of them obviously are, and some of them – if they don’t get their house in order – they might not exist.  They’re going to have to sell off parts to survive.”

*   *   *

“But the question I think we’ve got to ask – are we better off with the bigger banks than we were?  The [answer] is no.”

This past weekend, Timothy Haight wrote an inspiring piece for the pro-Republican Orange County Register, criticizing the failure of our government to address the systemic risk resulting from the “too big to fail” status of the megabanks:

The concentration of assets in a few institutions is greater today than at the height of the 2008 meltdown.  Taxpayers continue to be at risk as large financial institutions have forgotten the results of their earlier bets.  Legislation may have aided members of Congress during this election cycle, but it has done little to ward off the next crisis.

While I am a champion for free-market capitalism, I believe that, in some instances, proactive regulation is a necessity.  Financial institutions should be heavily regulated due to the basic fact that rewards are afforded to the financial institutions, while the taxpayers are saddled with the risk.  The moral hazard is alive and well.

So far, there has been only one Republican Presidential candidate to speak out against the ongoing TBTF status of a privileged few banks – Jon Huntsman.  It was nice to see that the Fox News website had published an opinion piece by the candidate – entitled, “Wall Street’s Big Banks Are the Real Threat to Our Economy”.  Huntsman described what has happened to those institutions since the days of the TARP bailouts:

Taxpayers were promised those bailouts would be a one-time, emergency measure.  Yet today, we can already see the outlines of the next financial crisis and bailouts.

The six largest financial institutions are significantly bigger than they were in 2008, having been encouraged to snap up Bear Stearns and other competitors at bargain prices.

These banks now have assets worth over 66% of gross domestic product – at least $9.4 trillion – up from 20% of GDP in the 1990s.

*   *   *

The Obama and Romney plan simply appears to be to cross our fingers and hope no Too-Big-To-Fail banks fail on their watch – a stunning lack of leadership on such a critical economic issue.

As president, I will break up the big banks, end future taxpayer bailouts, and restore capitalist principles – competition and creative destruction – to our financial sector.

As of this writing, Jon Huntsman has been the only Presidential candidate – including Obama – to discuss a proposal for ending the TBTF situation.  Huntsman has tactfully cast Mitt Romney in the role of the “Wall Street status quo” candidate with himself appearing as the populist.  Not even Ron Paul – with all of his “anti-bank” bluster, has dared approach the TBTF issue (probably because the solution would involve touching his own “third rail”:  regulation).  Simon Johnson had some fun discussing how Ron Paul was bold enough to write an anti-Federal Reserve book – End the Fed – yet too timid to tackle the megabanks:

There is much that is thoughtful in Mr. Paul’s book, including statements like this (p. 18):

“Just so that we are clear: the modern system of money and banking is not a free-market system.  It is a system that is half socialized – propped up by the government – and one that could never be sustained as it is in a clean market environment.”

*   *   *

There is nothing on Mr. Paul’s campaign website about breaking the size and power of the big banks that now predominate (http://www.ronpaul2012.com/the-issues/end-the-fed/).  End the Fed is also frustratingly evasive on this issue.

Mr. Paul should address this issue head-on, for example by confronting the very specific and credible proposals made by Jon Huntsman – who would force the biggest banks to break themselves up.  The only way to restore the market is to compel the most powerful players to become smaller.

Ending the Fed – even if that were possible or desirable – would not end the problem of Too Big To Fail banks.  There are still many ways in which they could be saved.

The only way to credibly threaten not to bail them out is to insist that even the largest bank is not big enough to bring down the financial system.

It’s time for those “fair weather free-marketers” in the Republican Party to show the courage and the conviction demonstrated by Jon Huntsman.  Although Rick Santorum claims to be the only candidate with true leadership qualities, his avoidance of this issue will ultimately place him in the rear – where he belongs.


 

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More Scrutiny For An Organization Called Americans Elect

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On July 25, I explained that the Republi-Cratic Corporatist Party was being threatened by a new, Internet-based effort to nominate a presidential ticket, which would be placed on the 2012 ballot in all fifty states.  Last summer, that organization – Americans Elect – described itself in the following terms:

Americans Elect is the first-ever open nominating process.  We’re using the Internet to give every single voter – Democrat, Republican or independent – the power to nominate a presidential ticket in 2012.  The people will choose the issues. The people will choose the candidates.  And in a secure, online convention next June, the people will make history by putting their choice on the ballot in every state.

*   *   *

We have no ties to any political group – left, right, or center.  We don’t promote any issues, ideology or candidates.  None of our funding comes from special interests or lobbyists.  Our only goal is to put a directly-nominated ticket on the ballot in 2012.

*   *   *

The goal of Americans Elect is to nominate a presidential ticket that answers to the people – not the political system.  Like millions of American voters, we simply want leadership that will work together to tackle the challenges facing our country.  And we believe a direct nominating process will prove that America is ready for a competitive, nonpartisan ticket.

Since that time, there has been a good deal of scrutiny focused on Americans Elect.  Justin Elliott recently wrote a comprehensive piece for Salon, highlighting the numerous sources of criticism targeting Americans Elect.  Mr. Elliott provided this summary of the controversies surrounding the organization:

The group is hoping to raise $30 million for its effort. It has already raised an impressive $22 million as of last month.  So where is all that money coming from?  Americans Elect won’t say. In fact, the group changed how it is organized under the tax code last year in order to shield the identity of donors.  It is now a 501(c)(4) “social welfare” group whose contributors are not reported publicly.

What we do know about the donors, largely through news reports citing anonymous sources, suggests they are a handful of super-rich Americans who made fortunes in the finance industry. (More on this below.)  But it’s impossible to fully assess the donors’ motives and examine their backgrounds and entanglements – important parts of the democratic process – while their identities and the size of their donations remain secret.

*   *   *

Americans Elect officials often tout their “revolutionary” online nominating convention, which will be open to any registered voter. But there’s a big catch.  Any ticket picked by participants will have to be approved by a Candidate Certification Committee, according to the group’s bylaws.

Among other things this committee will need to certify a “balanced ticket obligation”  – that the ticket consists of persons who are “responsive to the vast majority of citizens while remaining independent of special interests and the partisan interests of either major political party,” according to the current draft of Americans Elect rules.  Making these sorts of assessments is, of course, purely subjective.

Jim Cook of Irregular Times has been keeping a steady watch over Americans Elect, with almost-daily postings concerning the strange twists and turns that organization has taken since its inception (and incorporation).  Mr. Cook’s December 11 update provided this revelation:

The 501c4 corporation Americans Elect is arranging for the nation’s first-ever privately-run online nomination of candidates for President and Vice President of the United States in 2012.  As with any other corporation in the United States, it has a set of bylaws.  On November 18, 2011 the Americans Elect corporation held an unannounced meeting at which it amended its previous bylaws.

A month later, Americans Elect has not posted changes to the bylaws, or posted any notice of the changes, on its website for public review.  Furthermore, Americans Elect has generally made it a practice to post its documents as images that cannot be indexed by search engines or searched by keyword.  For these reasons, Irregular Times has retyped the bylaws into an easily searchable text format, based on a pdf file submitted to the Florida Secretary of State on November 22, 2011.  You can read the full text of the amended bylaws here.

Just a day earlier (on December 10) Jim Cook had been highlighting one of the many transparency controversies experienced by the group:

On the Americans Elect’s “Candidates” web page it rolled out last month, various numbers were tossed up without explanation.  A reference to a wildly error-prone slate of candidates’ supposed policies drawn up by Americans Elect contractor “On the Issues” appeared next to various politicians’ names, but the actual calculation by which Americans Elect came up with its “National Match” for each politician has never actually been published.  I’ll repeat that in bold:  Americans Elect’s system for calculating its numerical rankings of politicians was never shared with the public.

Another problem for Americans Elect concerns compliance with its bylaws by individual directors, and the lack of enforcement of those bylaws, as Cook’s December 9 posting demonstrates:

She’s done it five times before; this is the sixth.

The Americans Elect bylaws are very specific, as an Americans Elect Director, Christine Todd Whitman is not supposed to “communicate or act in favor of or in opposition to any candidate for President or Vice President at any time before the adjournment of the online nominating convention of Americans Elect.”

But here she is this week nevertheless, appearing on national television via FOX News to communicate in favor of presidential candidate Jon Huntsman   .   .   .

*   *   *

The bylaws say that when the neutrality provision is violated, there must be some sort of sanction.  But Christine Todd Whitman is getting away with it again and again and again where the whole country can see it.  Is the Americans Elect corporation inclined to follow its own rules?  If not, how much trust should we place in it as it gets ready to run its own private presidential nomination in less than five months’ time?

Richard Hansen, a professor at the University of California at Irvine Law School, wrote an essay for Politico, which was harshly critical of Americans Elect.  He concluded the piece with these observations:

But the biggest problem with Americans Elect is neither its secrecy nor the security of its election.  It is the problems with internal fairness and democracy.  To begin with, according to its draft rules, only those who can provide sufficient voter identification that will satisfy the organization – and, of course, who have Internet access – will be allowed to choose the candidate.  These will hardly be a cross section of American voters.

In addition, an unelected committee appointed by the board, the Candidates Certification Committee, will be able to veto a presidential/vice presidential ticket deemed not “balanced” – subject only to a two-thirds override by delegates.

It gets worse.  Under the group’s bylaws, that committee, along with the three other standing committees, serves at the pleasure of the board – and committee members can be removed without cause by the board.  The board members were not elected by delegates; they chose themselves in the organization’s articles of incorporation.

The bottom line:  If Americans Elect is successful, millions of people will have united to provide ballot access not for a candidate they necessarily believe in – like a Ross Perot or Ralph Nader – but for a candidate whose choice could be shaped largely by a handful of self-appointed leaders.

Despite the veneer of democracy created by having “delegates” choose a presidential candidate through a series of Internet votes, the unelected, unaccountable board of Americans Elect, funded by secret money, will control the process for choosing a presidential and vice presidential candidate – who could well appear on the ballot in all 50 states.

Forget about Tom Friedman’s breathlessly-enthusiastic New York Times commentary from last summer, gushing praise on Americans Elect.  It’s beginning to appear as though this movement is about to go off the rails, following the Cain Train into oblivion.


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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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Losing The Propaganda War

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The propaganda war waged by corporatist news media against the Occupy Wall Street movement is rapidly deteriorating.  When the occupation of Zuccotti Park began on September 17, the initial response from mainstream news outlets was to simply ignore it – with no mention of the event whatsoever.  When that didn’t work, the next tactic involved using the “giggle factor” to characterize the protesters as “hippies” or twenty-something “hippie wanna-bes”, attempting to mimic the protests in which their parents participated during the late-1960s.  When that mischaracterization failed to get any traction, the presstitutes’ condemnation of the occupation events – which had expanded from nationwide to worldwide – became more desperate:  the participants were called everything from “socialists” to “anti-Semites”.

Despite the incessant flow of propaganda from those untrustworthy sources, a good deal of commentary – understanding, sympathetic or even supportive of Occupy Wall Street began to appear in some unlikely places.  For example, Roger Lowenstein wrote a piece for Bloomberg BusinessWeek entitled, “Occupy Wall Street: It’s Not a Hippie Thing”:

As critics have noted, the protesters are not in complete agreement with each other, but the overall message is reasonably coherent.  They want more and better jobs, more equal distribution of income, less profit (or no profit) for banks, lower compensation for bankers, and more strictures on banks with regard to negotiating consumer services such as mortgages and debit cards.  They also want to reduce the influence that corporations – financial firms in particular – wield in politics, and they want a more populist set of government priorities: bailouts for student debtors and mortgage holders, not just for banks.

In stark contrast with the disparaging sarcasm spewed by the tools at CNBC and Fox News concerning this subject, The Economist demonstrated why it enjoys such widespread respect:

So the big banks’ apologies for their role in messing up the world economy have been grudging and late, and Joe Taxpayer has yet to hear a heartfelt “thank you” for bailing them out.  Summoned before Congress, Wall Street bosses have made lawyerised statements that make them sound arrogant, greedy and unrepentant.  A grand gesture or two – such as slashing bonuses or giving away a tonne of money – might have gone some way towards restoring public faith in the industry.  But we will never know because it didn’t happen.

On the contrary, Wall Street appears to have set its many brilliant minds the task of infuriating the public still further, by repossessing homes of serving soldiers, introducing fees for using debit cards and so on.  Goldman Sachs showed a typical tin ear by withdrawing its sponsorship of a fund-raiser for a credit union (financial co-operative) on November 3rd because it planned to honour Occupy Wall Street.

The Washington Post conducted a poll with the Pew Research Center which compared and contrasted popular support for Occupy Wall Street with that of the Tea Party movement.  The poll revealed that ten percent of Americans support both movements.  On the other hand, Tea Party support is heavily drawn from Republican voters (71%) while only 24% of Republicans – as opposed to 64% of Democrats – support Occupy Wall Street.  As for self-described “Moderates”, only 24% support the Tea Party compared with Occupy Wall Street’s 45% support from Moderates.  Rest assured that these numbers will not deter unscrupulous critics from describing Occupy Wall Street as a “fringe movement”.

The best smackdown of the shabby reportage on Occupy Wall Street came from Dahlia Lithwick of Slate:

Mark your calendars:  The corporate media died when it announced it was too sophisticated to understand simple declarative sentences.  While the mainstream media expresses puzzlement and fear at these incomprehensible “protesters” with their oddly well-worded “signs,” the rest of us see our own concerns reflected back at us and understand perfectly.  Turning off mindless programming might be the best thing that ever happens to this polity.  Hey, occupiers:  You’re the new news. And even better, by refusing to explain yourselves, you’re actually changing what’s reported as news.  Because it takes a tremendous mental effort to refuse to see that the rich are getting richer in America while the rest of us are struggling.  Maybe the days of explaining the patently obvious to the transparently compromised are finally behind us.

By refusing to take a ragtag, complicated, and leaderless movement seriously, the mainstream media has succeeded only in ensuring its own irrelevance.  The rest of America has little trouble understanding that these are ragtag, complicated, and leaderless times.  This may not make for great television, but any movement that acknowledges that fact deserves enormous credit.

Too many mainstream news outlets appear to be suffering from the same disease as our government and our financial institutions.  Jeremy Grantham’s Third Quarter 2011 newsletter will be coming out in a few days and I’m hoping that he will prescribe a cure.  My wilder dream is that those vested with the authority and responsibility to follow his advice would simply do so.


 

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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?

*   *   *

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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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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Obama Presidency Continues To Self-Destruct

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It’s been almost a year since the “Velma Moment”.  On September 20, 2010, President Obama appeared at a CNBC town hall meeting in Washington.  One of the audience members, Velma Hart, posed a question to the President, which was emblematic of the plight experienced by many 2008 Obama supporters.  Peggy Noonan had some fun with the event in her article, “The Enraged vs. The Exhausted” which characterized the 2010 elections as a battle between those two emotional factions.  The “Velma Moment” exposed Obama’s political vulnerability as an aloof leader, lacking the ability to emotionally connect with his supporters:

The president looked relieved when she stood.  Perhaps he thought she might lob a sympathetic question that would allow him to hit a reply out of the park.  Instead, and in the nicest possible way, Velma Hart lobbed a hand grenade.

“I’m a mother. I’m a wife.  I’m an American veteran, and I’m one of your middle-class Americans.  And quite frankly I’m exhausted.  I’m exhausted of defending you, defending your administration, defending the mantle of change that I voted for, and deeply disappointed with where we are.”  She said, “The financial recession has taken an enormous toll on my family.”  She said, “My husband and I have joked for years that we thought we were well beyond the hot-dogs-and-beans era of our lives.  But, quite frankly, it is starting to knock on our door and ring true that that might be where we are headed.”

The President experienced another “Velma Moment” on Monday.  This time, it was Maureen Dowd who had some fun describing the confrontation:

After assuring Obama that she was a supporter, an Iowa mother named Emily asked the president at a town hall at the Seed Savers Exchange in Decorah what had gone wrong.

*   *   *

“So when you ran for office you built a tremendous amount of trust with the American people, that you seemed like someone who wouldn’t move the bar on us,” she said.  “And it seems, especially in the last year, as if your negotiating tactics have sort of cut away at that trust by compromising some key principles that we believed in, like repealing the tax cut, not fighting harder for single-payer.  Even Social Security and Medicare seemed on the line when we were dealing with the debt ceiling.  So I’m just curious, moving forward, what prevents you from taking a harder negotiating stance, being that it seems that the Republicans are taking a really hard stance?”

President Obama can no longer blame the Republicans and Fox News for his poor approval ratings.  He has become his own worst enemy.  As for what Obama has been doing wrong – the title of Andrew Malcolm’s recent piece for the Los Angeles Times summed it up quite well:  “On Day 938 of his presidency, Obama says he’ll have a jobs plan in a month or so”.

Lydia Saad of the Gallup Organization provided this report on the President’s most recent approval ratings:

A new low of 26% of Americans approve of President Barack Obama’s handling of the economy, down 11 percentage points since Gallup last measured it in mid-May and well below his previous low of 35% in November 2010.

Obama earns similarly low approval for his handling of the federal budget deficit (24%) and creating jobs (29%).

*   *   *

President Obama’s approval rating has dwindled in recent weeks to the point that it is barely hugging the 40% line. Three months earlier, it approached or exceeded 50%.

The voters have finally caught on to the fact that Barack Obama’s foremost mission is to serve as a tool for Wall Street.  In Monday’s edition of The Washington Post, Zachary Goldfarb gave us a peek at Obama’s latest gift to the banksters:  a plan to provide a government guarantee of mortgage backed securities:

President Obama has directed a small team of advisers to develop a proposal that would keep the government playing a major role in the nation’s mortgage market, extending a federal loan subsidy for most home buyers, according to people familiar with the matter.

The administration’s reaction to curiosity about the plan was a tip-off that the whole thing stinks.  Mr. Goldfarb’s article included the official White House retort, which was based on the contention that the controversial proposal is just one of three options outlined earlier this year in an administration white paper concerning reform of the housing finance system:

“It is simply false that there has been a decision to move forward with any particular option,” said Matt Vogel, a White House spokesman.  “All three options remain under active consideration and we are deepening our analysis around how each would potentially be implemented.  No recommendation has been made to the president by his economic advisers.”

And if you believe that, you might be interested in buying some real estate located in  . . .

Zachary Goldfarb explained the plan:

Fannie, Freddie or other successor firms would charge a fee to mortgage lenders and banks and use the money to create an insurance pool to cover losses on mortgage securities caused by defaults on the underlying loans.  The government would be the last line of defense in case of another housing market meltdown, using taxpayer money to cover losses only if the insurance pool ran dry.

The Washington Post report inspired economist Dean Baker to expose the ugly truth about this scheme:

It would be difficult to find an economic rationale for this policy other than subsidizing the financial industry. The government can and does directly subsidize the purchase of homes through the mortgage interest deduction.  This can be made more generous and better targeted toward low and moderate income families by capping it and converting it into a tax credit (e.g. all homeowners can deduct 15 percent of the interest paid on mortgages of $300,000 or less from their taxes).

There is no obvious reason to have an additional subsidy through the system of mortgage finance.  Analysis by Mark Zandi showed that the subsidy provided by a government guarantee would largely translate into higher home prices.  This would leave monthly mortgage payments virtually unaffected.  The diversion of capital from elsewhere in the economy would mean slower economic growth and would kill jobs for auto workers, steel workers and other workers in the manufacturing sector.

For these reasons, if President Obama was really against big government and job killing measures, he would oppose this new scheme to subsidize mortgage securitization.  On the other hand, if the goal is to ensure high profits and big salaries for top executives in the financial sector, then a government subsidy for mortgage securitization is good policy.

Frustration with the inevitability that the 2012 Presidential Election will ultimately become a choice between two corporatists has inspired a movement to encourage a Democratic Primary challenge to Obama.  The organization – StopHoping.org – is based on this simple objective:

The majority of U.S. citizens favor protecting Social Security, Medicare, and Medicaid; taxing the rich; cutting military spending; and protecting the environment.  We don’t have a candidate . . . yet.  Potential candidates supported on this site will be notified and encouraged to run.

I hope they succeed!


 

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