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Our Generation Got Old

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October 13, 2008

As John McCain’s Presidential campaign goes swirling down the toilet during the final desperate weeks of its existence, we see its surrogates cling to the non-issue of Obama’s contact with 1960s radical activist, Bill Ayers.  As I said on October 2, McCain missed his chance to take control of this race by opposing the 700-billion-dollar “bailout bill”, which has yet to inspire the confidence of the investing public, foreign markets or the banks.  By reuniting with his old ally from the “campaign finance reform” days, Democratic Senator Russ Feingold of Wisconsin, as well as Democratic rising star, Senator Maria Cantwell of Washington, the “Blue Dog” Democrats and the so-called “House Republicans” led by Jeb Hensarling and Mike Pence, McCain could have secured his position as the man who would take the Republican Party into the new century.  Instead, he chose to follow the advice of the lobbyists who run his campaign:  Steve “Skinhead” Schmidt and (Jeffrey Dahmer look-alike) Rick Davis.  These “Guys on the Plane” (if I may steal an expression from Peggy Noonan) have their careers rooted in the negative campaigning strategies created by Lee Atwater and refined by Karl Rove.  These operatives have no other cards to play.  They have no experience in successful reliance upon a strategy, based solely on portraying their own candidate in a positive way.

As the nation’s economic condition becomes more perilous, the McCain campaign leans more heavily on its claim that Obama’s contacts with Bill Ayers should determine the outcome of the 2008 Presidential election.

At this point it’s starting to get funny.  Worse yet  … it is an indicator (to me, at least) of how old I am and how old my generation has become.  Back in my old home town (a place called Chicago) there is a writer for a local paper called the Chicago Tribune.  His name is John Kass.  Kass is an outspoken opponent of Chicago’s current mayor, Richard M. Daley and Kass has a nickname for him, just as I have nicknames for such worthy characters as Senator Joe “The Tool” Lieberman.  On Sunday, October 12, Kass expressed his outrage that Marilyn Katz, Ayers’ fellow member of the 1960s radical group, Students for a Democratic Society (SDS), is involved in Obama’s Presidential campaign.  Kass took particular umbrage at the fact that Marilyn Katz now has a successful public relations firm called: MK Communications.  According to Kass, MK Communications now represents the Chicago Police Department, City Colleges of Chicago, the city’s “Law Department” (actually referred to as the Office of the Corporation Counsel for the City of Chicago), and numerous other city departments  … including the venerable “Streets and San”.  Kass seemed like a shoe salesman trying to fit an old foot that was accustomed to the “militant radical” style of the 1960s, into the new, 21st century, “Terrorist” model. It  doesn’t fit.  The militant radicals of the 1960s used small bombs to make political statements.  There is an absence of information about the number of alleged casualties or injuries resulting from such bombings.  Today, “terrorists” use small bombs to take down airplanes and they use airplanes to take down skyscrapers.  The use of the “terrorist” label to a 1960s radical is an obvious stretch.

The rant by the Tribune’s Kass about how former radical, Marilyn Katz, has become a “mainstream” figure in Chicago’s Public Relations business community, reminded me of an old song.  On August 17, 1969, Grace Slick and her band, Jefferson Airplane, woke up the crowd at the Woodstock Music and Arts Fair with what she described as “morning maniac music”: the title song from their upcoming album, Volunteers.  Included among the song’s lyrics was the following passage:

One generation got old.
One generation got soul.
This generation got no destination to hold.

The Marilyn Katz story and the Bill Ayers story tell me that our generation got old.  The former radicals of that era are now playing important roles within what they used to consider an archaic milieu, referred to as “the establishment”.  Nevertheless, many members of this latest “establishment” generation are in a fight to retain the claim of having “soul” by helping to bring an African-American to The White House for the first time in this nation’s history.  The crowds at the McCain and Palin rallies have expressed their fear of what an Obama Administration might bring to America.  These McCain supporters have been able to replace their fears of how they are going to economically survive from day to day and how to fund their retirement plans with the fears conjured up by Schmidt, Davis and their ilk.  The ball is now in the court of the Obama campaign to help establish a legacy for these people and all Americans – by righting the ship capsized by the “perfect storm” of greed, corruption and deregulation.  Another three-pointer would be nice.

Who Was The “Kill Him!” Guy?

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October 9, 2008

It was Monday, October 6, 2008.  Sarah “The Gumball” Palin was speaking before a crowd in Clearwater, Florida.  She was dressed in white.  Behind her, stood a predominately female group of individuals, similarly dressed in Klan white.  Palin stood before the crowd and launched into the long-discredited attempt by the McCain campaign to assert that Barack Obama “pals around with domestic terrorists”.

As many have learned by now, Obama’s involvement in the Annenberg Foundation’s program to assist public education (The Annenberg Challenge Project) placed him in contact with a former radical activist of the 1960s, William Ayers.  Both Obama and Ayers live in Chicago’s Hyde Park neighborhood, near the University of Chicago.  In 1995, Ayers hosted an informal fundraising event for Obama’s first run for the Illinois State Senate.  During the years 2000-2002, Obama and Ayers served on the board of an anti-poverty group, The Woods Fund of Chicago.  Bill Ayers is the son of Thomas G. Ayers, the former Chairman and CEO of Chicago’s electricity monopoly, Commonwealth Edison Company.  Having such a background in the 1960s, resulted in the political radicalization of many similarly-situated young people.  Bill Ayers became part of a militant faction of the Students for a Democratic Society (SDS) called The Weathermen.  They eventually changed the name of the organization to the gender-neutral Weather Underground.  In 1969 (when Obama was 8 years old) Bill Ayers felt outraged by the fact that there was a statue in Chicago (not far from where Oprah Winfrey’s Harpo Studios are now located) commemorating the deaths of seven police officers involved in suppressing the “Haymarket Riot” of 1886.  An untold number of protesting laborers were killed during that chaos.  This event resulted from the original “May Day” celebration of the rights of laborers (May 1, 1886).  Ayers decided to participate in a successful plot to destroy the statue with a bomb.  No live humans were injured in that event.  Although the statue was rebuilt two years later, the Weathermen blew it up again within a few months.

Dana Milbank reported in the Washington Post, what many of us saw on the news concerning Palin’s remarks about Obama at the October 6 rally in Clearwater:

“Now it turns out, one of his earliest supporters is a man named Bill Ayers,” Palin said.

“Boooo!” said the crowd.

“And, according to the New York Times, he was a domestic terrorist and part of a group that, quote, ‘launched a campaign of bombings that would target the Pentagon and our U.S. Capitol,'” she continued.

“Boooo!” the crowd repeated.

“Kill him!” proposed one man in the audience.

As a result of this incident, many commentators have expressed their outrage that the current rhetoric of the McCain campaign could motivate someone to call for the assassination of Barack Obama.  Others have suggested that it cannot be discerned as to whether this man was calling for the killing of Obama or Bill Ayers.  In either event, I would expect (and as a taxpayer – demand) at this point, that Barack Obama’s Secret Service detail would be contacting Palin’s Secret Service detail to request any and all photographic and video information that might depict the man yelling “kill him!” at that rally.  I would also like to believe that the Secret Service is in the process of identifying this individual.  One would expect them to have a few things to discuss with him.  Once this maniac is identified, the Secret Service should let us know who he is (or, at least, see what he looks like) if they cannot locate him.  If he turns up in my area, I and many of my friends, would like to be able to advise the Secret Service of his current whereabouts, should we spot him.

The Gumball vocalizes indignation over “domestic terrorism”.  Shouldn’t that fury result in some sort of response to her audience member who proposed such an act to her very face?

The Gumball Gets Obnoxious

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October 6, 2008

In the days before the Vice-Presidential debate, many wise Republicans were calling for Sarah “The Gumball” Palin to be “thrown under the bus” and off the Republican ticket.  As I discussed on September 15, Sarah Palin has a limited skill set to fulfill her role as Vice-Presidential candidate.  (This became painfully obvious during the interviews with Charlie Gibson and Katie Couric.)  The Gumball can recite a small number of memorized answers very well, while looking directly into the TV camera to “connect” with her like-minded audience.  She can follow instructions from her handlers and recite the correct answer number as necessary.  She can read speeches, written by her handlers and deliver them in an enthusiastic way.  At the Vice-Presidential debate, she again demonstrated the ability to work from within her limited skill set to connect with the disappointed Republican “base”.  Nevertheless, at the debate, we saw her include another talent in her repertoire: the ability to read answers from cards.  Her “say it ain’t so, Joe” talking point was read from a card and delivered too quickly to have the full impact intended by the writers.  As she reached the following passage, we could see her reading it off a card:

Now, doggone it, let’s look ahead and tell Americans what WE have to plan to do for them in the future.

Because she avoided catastrophe at the debate, her performance was considered a “success” by many.  This inspired the strategists and handlers to give The Gumball a new role:  carrying the “dirty” water for the campaign – to deliver the negative attacks against Obama – Biden, in accordance with the latest game plan.  Palin’s debut in this role, following on the heels of yet another, scathing Tina Fey send-up of this fool, has made her appear as an individual whose ignorance is exceeded only by her obnoxiousness.  It makes me wonder what the campaign really has in mind for her.  Is this just another way of throwing her under the bus?  In this role, she has changed from “goofy” to actually detestable.  Let Palin sling the mud and if it doesn’t work, the guy at the top of the ticket can disown it.

What really gave me the creeps about the mainstream media’s analysis of the VP debate was best exemplified by the remarks of NBC’s White House correspondent, David Gregory, during NBC’s Meet The Press on October 5:

She made a decision that she was going to be rhetorical and not substantive on the issues.

*   *   *

I think she took herself off the table as an issue that could bring down the McCain Campaign.

*   *   *

She chose to ignore a lot of the substantive aspects of the debate and speak right to the American people.

At this point, most people with an I.Q. above 80 realize that The Gumball doesn’t decide anything about this campaign or what her statements will be in the pursuit of victory in this election.  Her job is to follow instructions —  to read or recite what she is told and nothing more.  The fact that someone of Mr. Gregory’s stature would expect the viewing public to believe the myth that The Gumball, herself, has anything substantive or strategic to contribute to this campaign is insulting to our intelligence.  Mr. Gregory:  Do you really think we are all so stupid as to believe that The Gumball can do anything other than recite prepared “talking points”, read scripted speeches and follow instructions?  Why is it so important for you to have us pretend that this numbskull can make important campaign decisions?  Do you have “handlers” directing you to deliver such absurd propositions to us?

On the other hand, Peggy Noonan’s remarks during that same panel discussion on Meet The Press, provide a candid view of the ugly truth about the current campaign:

We live in the age of political strategists.  We live in the age of “The Guys on the Plane”.  We live in the age of “The Blackberry Guy” saying:  “Let’s get ’em this way –  Let’s get ’em this way!”

*  *  *

I have the sense sometimes, lately, that these “Guys on the Plane” think history is their plaything.  History is not their plaything.

*  *  *

This is not a time for playfulness and mischief.  It ain’t right!

Rest assured that The Gumball will be spat out by “The Guys on the Plane” as soon as she loses her flavor.  This is likely to happen by November 5.  After that:  Watch what happens to her political career.

McCain Loses His Chance

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October 2, 2008

It was the opportunity for a “game-changing move” in the 2008 Presidential campaign.  Just as John McCain was dropping back in the polls, providing Barack Obama the chance to “close the deal” even more decisively than he did with Hillary Clinton, McCain missed the opportunity to turn the game around.  Last week, he arrived in Washington (after the pseudo-suspension of his campaign) on a mission to save us all from the crisis declared by Treasury Secretary Henry Paulson.  After McCain arrived, he found a number of both Republican and Democratic members of the House of Representatives opposed to the revised, 110-page, economic “bailout bill” (the Emergency Economic Stabilization Act of 2008).  At that point in time, McCain had the opportunity to break with the unpopular Bush Administration and band together with the 133 Republican and 95 Democratic House members (who eventually voted against the bill) to form a “coalition of mavericks” (oxymoron, non-sequitur or both?) resisting this bailout of the big banks and other “fat cats” on Wall Street.  He didn’t.  He chose instead, to copy whatever Barack Obama was doing.  Besides, his move dovetailed well with the pseudo-“bipartisan” duet he had been playing, throughout the entire campaign, with Joe “The Tool” Lieberman.  Had McCain stood with those 133 young Republican members of the House and the 95 Democrats (many of whom consider themselves conservative, “Blue Dog” Democrats) he could have re-ignited his flatulent campaign.  (Is it really safe to do that?  —  Let’s ask Johnny Knoxville.)

Howard Fineman provided an interesting retrospective of this phase in the evolution the economic “bailout bill” at the Newsweek website on September 30:

The Paulson Plan is not great. Some two hundred academic economists have ridiculed it, and so have the House Republicans, by a 2-1 margin.  Public opinion (and not just the angry phone callers) is turning against the measure—to the extent that anybody understands it.

But the consensus is that Washington has to do something, and that the current version is far better than what the lawmakers started with.

McCain made a show of returning to Washington to try to jam the original measure through.  He deserves credit for the instinct. An old Navy motto is: Don’t just stand there, DO something!  That is McCain to the core, and so much the better for it.

But when he got to town, he realized something that no one had bothered to tell him, apparently:  the grassroots of his own party (the grassroots that has never really trusted him) hated the Paulson Plan.  They weren’t about to support it and risk their own necks.  McCain worked the phones, but fell back in the ranks.

When the second revision of this bill (at over 400 pages) finally made it to the Senate floor for the vote on Wednesday, October 1, there were 9 Democrats, 15 Republicans and Independent Senator Bernie Sanders of Vermont, voting against it.  McCain again missed the opportunity for a truly bipartisan resistance to this measure.  Such an act would have demonstrated genuine leadership.  He could have rejoined his old buddy, Wisconsin Senator Russ Feingold, as well as Florida Democrat Bill Nelson and rising Democratic star, Maria Cantwell from the State of Washington, all of whom voted against this measure.  Such a move would have emboldened resistance to the “bailout bill” in the House of Representatives, where the term of office lasts only two years.  (The short term results in greater accountability to American voters, who are believed to have notoriously short memory spans.)

Is this bill really necessary?  On the October 1 edition of MSNBC’s Countdown with Keith Olbermann, Paul Krugman, Economics Professor at Princeton University, admitted that:

…  it will be relatively ineffective, although rejecting it will cause a big run on the system.  Then we will come back and do it right in January or February  …

When Keith Olbermann asked Krugman about the likelihood that nothing consequential would happen if this bill did not pass, Krugman responded by saying that such possibilities have “shrunk in the past week”.  Krugman went on to claim that “the credit crunch has started to hit Main Street”, using, as an example, the rumor that: “McDonald’s has started to cut credit to its franchisees.”  McDonald’s has issued a press release stating that this was not the case.  What is really happening is that the banks are acting like spoiled children, holding their breath until the government gives them what they want, using the threat of unavailable credit as a gun to the head of Congress.

Public opposition to this bailout was best summed up by Peggy Noonan, when she appeared on The Daily Show with Jon Stewart on October 1:

But we are in a real economic crisis and the American political establishment said we must do A, B and C to deal with it and the American people  …  said:  “No.  We don’t trust you to handle this.  We don’t trust you to do the right thing.”

John McCain had the opportunity to stand with those people, as well as the 133 House Republicans and 15 Senate Republicans, to do “the right thing”.  He decided to forego that opportunity.  Barack Obama said, on the Senate floor Wednesday, that it was not worth risking the American economy and the world economy by challenging this bill.  John McCain decided that it was not worth risking his Presidential campaign on such a challenge.  That’s too bad for him.  The gamble probably would have paid off.

Will It Work?

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September 29, 2008

This is the question on everyone’s mind as they ponder the new “bailout bill”, officially known as the Emergency Economic Stabilization Act of 2008.  It is available for everyone to read on the Internet (all 110 pages of it), but most people are looking for answers to the most important questions:  Will it pass and will it work?

Just after midnight on Monday morning, David Rogers, of Politico.com, reported that the bill (which goes to the House floor on Monday and the Senate floor on Wednesday) was still facing resistance from both the right and the left, despite the support voiced by both Presidential candidates.  Republican Congressman Chris Shays of Connecticut was quoted in the article as saying that:  “For this to pass, a lot of people are going to have to change their minds”.  The following passage provided more light on the view of this bill from those House Republicans providing resistance to the measure:

Yet a closed-door party meeting Sunday night illustrated all the problems anew.  The session ran for hours, and while Minority Leader John Boehner (R-Ohio) said he would vote for the bill, he could not predict the number of votes he would have for it, and he famously referred to the measure as a “crap sandwich” before his rank and file.

Jackie Kucinich reported for TheHill.com that earlier in the day, Congressman Mike Pence of Indiana had sent out a letter to his fellow Republicans in opposition to this bill:

The decision to give the federal government the ability to nationalize almost every bad mortgage in America interrupts this basic truth of our free market economy …  Republicans improved this bill but it remains the largest corporate bailout in American history, forever changes the relationship between government and the financial sector, and passes the cost along to the American people.  I cannot support it.

The opposition to the bill from the Democratic side was discussed in another Politico.com article:  this one by Ryan Grimm.  Grimm’s article discussed an “intense” Democratic Caucus meeting.  He quoted Minnesota Congressman James Oberstar as describing resistance to the bill coming from across the complete spectrum of Democratic opinion, from liberal to conservative.  California Congressman Brad Sherman had met with Republican Darrell Issa before the meeting.  Sherman’s contribution to the Caucus discussion was described this way by Ryan Grimm:

Sherman spoke out against the bill during the caucus meeting, arguing that billions of dollars would flow to foreign investors, that oversight was lax and that limits on executive compensation were too weak.   Rep. Joe Baca (D-Calif.) said he was leaning toward a no vote, too.

The House vote on the bill is scheduled to take place after a four-hour debate, beginning at 8 a.m. on Monday.

Whether or not this bill will ultimately “work” is another question.  Paul Krugman, Economics Professor at Princeton University, wrote in the Sunday New York Times:

The bailout plan released yesterday is a lot better than the proposal Henry Paulson first put out — sufficiently so to be worth passing.  But it’s not what you’d actually call a good plan, and it won’t end the crisis.  The odds are that the next president will have to deal with some major financial emergencies.

Steve Lohr’s report from the Sunday New York Times, discussed the outlook for this plan, as voiced by Robert E. Hall, an economist and senior fellow at the Hoover Institution, a conservative research group at Stanford.  Lohr observed:

There was no assurance that the bailout plan would work as intended to ease financial turmoil and economic uncertainty.

Lohr’s article then focused on the opinion of Nouriel Roubini, an economist at the Stern School of Business at New York University:

The $350 billion to $400 billion in bad credit reported by the banks so far could eventually exceed $1.5 trillion, he estimated, as banks are forced to write off more bad loans, not only on more housing-related debt, but also for corporate lending, consumer loans, credit cards and student loans.

The rescue package, if successful, would make the recognition of losses and the inevitable winnowing of the banking system more an orderly retreat than a collapse. Yet that pruning of the banking industry must take place, economists say, and it is the government’s role to move it along instead of coddling the banks if the financial system is going to return to health.

A more unpleasant perspective appeared in an editorial published in the September 25 edition of The Economist:

If the economics of Mr Paulson’s plan are broadly correct, the politics are fiendish.  You are lavishing money on the people who got you into this mess. Sensible intervention cannot even buy long-term relief:  the plan cannot stop house prices falling and the bloated financial sector shrinking. Although the economic risk is that the plan fails, the political risk is that the plan succeeds.  Voters will scarcely notice a depression that never happened.  But even as they lose their houses and their jobs, they will see Wall Street once again making millions.

Whatever your definition of “success” might be for this plan, the experts agree that things aren’t going to return to “normal” for a long time, if ever.

The Real Republicans Stand Up

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September 25, 2008

On Monday, September 22, the real Republicans in Congress stood up to the “bailout” plan, written by the Bush Administration and ratified by Treasury Secretary Henry Paulson.  As I wrote in my last posting, there has been a serious question as to whether the Democrats in Congress had the cajones to stand up to the Bush Administration’s proposed Seven Hundred Billion – to One Trillion Dollar bailout of those financial institutions holding fuzzy mortgages and mortgage-based securities.  The Administration’s plan, as originally written, gave autocratic authority to Treasury Secretary Henry Paulson for administration of this plan, without oversight by the Courts or Congress.  At this point in the 2008 campaign, it has become time to give the well-deserved recognition to those Republican and/or conservative members of Congress as well as those conservative pundits, who put philosophy ahead of political allegiance and who spoke out for what they felt was right on this issue.  The Congressional Democrats alone, would have backed down and simpered away from a fight with the “lame duck” Bush Administration on this proposal.  Were it not for the intestinal fortitude and existential authenticity of the following individuals, Congress would have, once again, provided the “rubber stamp” for yet another, despotic Bush plan.

Before I congratulate them by name, let’s take a look back to the words of a great patriot, Thomas Paine.  This passage was the opening to an article called The Crisis, written on December 23, 1776.  His words are as important now as they were then:

THESE are the times that try men’s souls. The summer soldier and the sunshine patriot will, in this crisis, shrink from the service of their country; but he that stands by it now, deserves the love and thanks of man and woman. Tyranny, like hell, is not easily conquered; yet we have this consolation with us, that the harder the conflict, the more glorious the triumph. What we obtain too cheap, we esteem too lightly: it is dearness only that gives every thing its value. Heaven knows how to put a proper price upon its goods; and it would be strange indeed if so celestial an article as FREEDOM should not be highly rated.

Accordingly, the following Republican members of Congress should be given their due congratulations for rising above political loyalty on this monumental issue:

House Republican Study Committee (RSC) Chairman Jeb Hensarling (R-Texas) who expressed skepticism about the Treasury Department’s proposal (last) Friday, saying he was “unconvinced that this is the proper remedy for our nation at this time.”  (This was reported by Jackie Kucinich and Alexander Bolton for TheHill.com on September 22.)

The article by Kucinich and Bolton also disclosed that:

In a statement Saturday, Rep. Mike Pence (R-Ind.), a former RSC chairman, came out against the idea of a government bailout.  “Congress must not hastily embrace a cure that may do more harm to our economy than the disease of bad debt,” he said.

The Kucinich/Bolton article went on to describe the action taken by Republican Congressman Scott Garrett of New Jersey:

In a “Dear Colleague” letter circulated on Monday, Rep. Scott Garrett (R-N.J.) attached three articles written by economists at the Brookings Institution, the Heritage Foundation and the University of Chicago that all offer alternatives to the administration’s plan.

“As in most cases, there is not just one solution to a public policy problem,” Garrett wrote.   “It is my hope that the ideas below will provide some interesting analysis to the problems faced by the U.S. financial markets and generate thoughtful debate as we consider this monumental legislative proposal.”

Last, but not least, was Republican Congressman Cliff Stearns of Florida, who took time out to chat with Rachael Maddow on Wednesday night.  Kucinich and Bolton noted how:

Florida Republican Cliff Stearns also criticized the proposal, which would allocate hundreds of millions of dollars to buy mortgage-based assets from private firms.

“Bailout after bailout is not a strategy,” said Stearns, who said that taxpayers could be left with a huge bill.

Were it not for the integrity of these individuals, the Democratic Party’s opponents of the original Bush Plan would not have enjoyed a chance at challenging the Administration’s original draft bailout proposal.

While we’re at it  …  let’s give a pat on the back to one of  those bold conservatives, motivated by philosophy, rather than the televangelist lobby or the neocon trend:  George Will.  He has always been on my blogroll for a reason:  his opinions are often philosophy – based, rather than party – based.  Here’s what he had to say about the bailout plan in the Jewish World Review on September 23:

Treasury Secretary Paulson, asked about conservative complaints that his rescue program amounts to socialism, said, essentially: This is not socialism, this is necessary. That non sequitur might be politically necessary, but remember that government control of capital is government control of capitalism. Does McCain have qualms about this, or only quarrels?

What is the real motivation behind the McCain campaign’s proposed “time out”?  Is it because McCain’s campaign manager, (Jeffrey Dahmer look-alike) Rick Davis, as corporate Director and Treasurer of his lobbying firm: Davis Manafort, had been monthly collecting $15,000 from the vilified Freddie Mack, up until August?  Or is it because Sarah Palin had been caught on video, going through some strange ritual with avowed “witch hunter” Bishop Thomas Muthee at the Wasilla Assembly of God church?  I suspect it’s because McCain is lost in the woods without a compass, moral or otherwise.

Here We Go Again

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September 22, 2008

Exactly one year ago, we saw the release of Naomi Klein’s book, The Shock Doctrine: The Rise of Disaster Capitalism.  Klein’s book explained how unpopular laws were enacted in a number of countries around the world, as a result of shock from disasters or upheavals.  She went on to suggest that some of these events were deliberately orchestrated with the intent of passing repugnant laws in the wake of crisis.  She made an analogy to shock therapy, wherein the patient’s mind is electrically reformatted to become a “blank slate”.  Klein described how advocates of “the shock doctrine” seek a cataclysmic destruction of economic order to create their own “blank slate” upon which to create their vision of a “free market economy”.   She described the 2003 Iraq war as the most thorough utilization of the shock doctrine in history.  Remember that this book was released a year before the crisis we are going through now.

You may recall former Senator Phil Gramm’s recent appearance in the news for calling the United States a “nation of whiners” and positing that the only recession going on in the United States these days is a “mental recession”.  Gramm is a longtime buddy and mentor to a certain individual named John McCain.  Gramm is the architect of the so called “Enron Loophole” allowing speculators to drive the price of oil to absurd heights.  (Gramm’s wife, Wendy, was a former member of Enron’s Board of Directors.)  Gramm was most notorious for his successes in the deregulation of Wall Street (with the help of McCain) that facilitated the “mortgage crisis” as well as the current economic meltdown.  He sponsored the 1999 bill that repealed the Glass-Steagall Act.  The repeal of that law allowed “commercial” and “investment” banks to consolidate.  Gramm’s face appears in many campaign videos with McCain, taken earlier this year.  As a result of the outrage generated by Gramm’s remarks, McCain formally dismissed Gramm as his campaign’s economic advisor.  Despite the fact that Gramm no longer has a formal role in the McCain campaign, many believe that he would be McCain’s choice for Secretary of the Treasury in the event that McCain should win the Presidential election.  On September 21, MSNBC’s David Shuster grilled McCain campaign spokesman, Tucker Bounds, about the possibility that McCain is planning to appoint Phil Gramm as his Secretary of the Treasury, should McCain win.  Tucker Bounds squirmed all over the place, employing his usual tactic of deflecting the subject of the current economic crisis back to the Obama campaign.  Most noticeably, Mr. Bounds never made any attempt to deny that McCain plans to put Gramm in charge of the Treasury.

Our current Treasury Secretary, Henry Paulson, is on the covers of this week’s newsmagazines, pushing for uncritical acceptance of his (and hence, the Bush Administration’s) solution to the current economic crisis.  This basically amounts to a three-page “bailout” plan for banks and other financial intuitions holding mortgages of questionable value, at a price to the taxpayers of anywhere from $700 billion to One Trillion Dollars.  The Democrats are providing some “pushback” to this plan.  Barack Obama was quoted by Carrie Brown of Politico.com as saying that the Bush Administration has “offered a concept with a staggering price tag, not a plan”.  Obama went on to insist that the “American people must be assured that the deal reflects the basic principles of transparency, fairness and reform”.

As reported by Stephen Labaton in the September 21 New York Times, House Speaker Nancy Pelosi complained that:

… the administration’s proposal did “not include the necessary safeguards. Democrats believe a responsible solution should include independent oversight, protections for homeowners and constraints on excessive executive compensation.

Senator Chris Dodd of Connecticut was quoted in that article as saying:  “We need to offer some assurance to the American taxpayer that Congress is watching.”  Dodd went on to explain:

One of the things that got us into this mess was the lack of accountability and the lack of oversight that was occurring, and I don’t think we want to repeat those mistakes with a program of this magnitude.

The Times article then focused on the point emphasized by Republican Senator Arlen Specter:

I realize there is considerable pressure for the Congress to adjourn by the end of next week  . . .   But I think we must take the necessary time to conduct hearings, analyze the administration’s proposed legislation, and demonstrate to the American people that any response is thoughtful, thoroughly considered and appropriate.

Nevertheless, Treasury Secretary Paulson made the rounds of the Sunday talk shows to advocate pushing this bailout through quickly, without the safeguards and deliberation suggested by the Democrats and Senator Specter.  As Zachary Goldfarb reported in the September 21 Washington Post:

Paulson urged Congress not to load up the legislation with controversial provisions. “We need this to be clean and quick,” he said.

“Clean and quick”  . . .   Is that anything like “Shock and Awe”?  As usual, there is concern about whether Congressional Democrats will have the spine to resist the “full court press” by the Bush Administration to get this plan approved by Congress and on the President’s desk for signature.  As Robert Kuttner reported in The Huffington Post:

One senior Congressional Democrat told me, “They have a gun to our heads.” Paulson behaved as if he held all the cards, but in fact the Democrats have a lot of cards, too. The question is whether they have the nerve to challenge major flaws in Paulson’s plan as a condition of enacting it.

Here we go again.  Will the Democrats “grow a pair” in time to prevent “the shock doctrine” from being implemented once again?  If not, will we eventually see the day when Treasury Secretary Phil Gramm basks in glory, while presiding over his own manifestation of economic utopia?

This Should Have Happened Last Year

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September 18, 2008

I’m sorry.  What is happening in the financial markets right now, should have happened at this time, last year.  I put my money where my mouth was, in the belief that a laissez-faire Republican government would have let market conditions run their course.  That strategy caused me to lose money for the past year.  When precious metals should have been going up, they were going down.  Something “stinky” was happening.  At this time, last year, Jon Markman of msn.com was discussing the “duct tape and pixie dust” being used to hold the economy together.  In hindsight, I suspect that there may have been an effort to keep the ca-ca from hitting the fan until after Election Day (November 4).  Time will tell whether there was some skullduggery involved in such an effort.  Do you think that the “oil speculators” realized, at some point, that they could manipulate the prices of the small handful of stocks (30) that comprise the Dow Jones Industrials, by manipulating the price of oil?  Are these same “oil speculators” on “good behavior” right now, out of fear that the “Enron Loophole” could be doomed?

I apologize because I have been making (back) lots of money this week, while many people have seen their retirement plans crash and burn.  I stuck to my belief that the emperor was not really wearing any clothes.  It cost me money to adhere to that opinion, although it is now “payback time”.  To no surprise, the Carly Fiorinas of this nosedive will walk away with their golden parachutes intact.  However, will AIG still be free to make crucial decisions about which lawsuits to litigate?  Do they have a right to make those (and other) decisions as they used to, now that you and I own eighty percent of that company?

Meanwhile, John “Keating Five” McCain claims that he will champion the interests of those suckers who vote for him, by bringing “The Good Old Boys of Wall Street” to Alaskan frontier justice.  Why would anyone believe this?  Based on his record, McCain could not expect the voters to consider him as the advocate of the downtrodden.  For some reason, the Obama campaign has expressed an unwillingness to use the “Keating Five” episode of McCain’s life, as fodder for negative ads.  (They may find themselves thinking more clearly in late October.)

Let’s take a look back at the “glory days” of The Keating Five, from what is available on Wikipedia.org:

The Keating Five scandal was prompted by the activities of one particular savings and loan: Lincoln Savings and Loan Association of Irvine, California. Lincoln’s chairman was Charles Keating, who ultimately served five years in prison for his corrupt mismanagement of Lincoln.  In the four years since Keating’s American Continental Corporation (ACC) had purchased Lincoln in 1984, Lincoln’s assets had increased from $1.1 billion to $5.5 billion.  Such savings and loan associations had been deregulated in the early 1980s, allowing them to make highly risky investments with their depositors’ money, a change of which Keating took advantage.  Lincoln’s investments took the form of buying land, taking equity positions in real estate development projects, and buying high-yield junk bonds.

*   *   *

The core allegation of the Keating Five affair is that Keating had made contributions of about $1.3 million to various U.S. Senators, and he called on those Senators to help him resist regulators. The regulators backed off, to later disastrous consequences.

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(f)ive senators, Alan Cranston (D-CA), Dennis DeConcini (D-AZ), John Glenn (D-OH), John McCain (R-AZ), and Donald W. Riegle (D-MI), were accused of improperly aiding Charles H. Keating, Jr., chairman of the failed Lincoln Savings and Loan Association, which was the target of an investigation by the Federal Home Loan Bank Board (FHLBB).

*   *   *

After a lengthy investigation, the Senate Ethics Committee determined in 1991 that Alan Cranston, Dennis DeConcini, and Donald Riegle had substantially and improperly interfered with the FHLBB in its investigation of Lincoln Savings. Senators John Glenn and John McCain were cleared of having acted improperly but were criticized for having exercised “poor judgment”.  All five of the senators involved served out their terms. Only Glenn and McCain ran for re-election, and they were both re-elected.

*   *   *

McCain and Keating had become personal friends following their initial contacts in 1981, and McCain was the closest socially to Keating of the five senators. Like DeConcini, McCain considered Keating a constituent as he lived in Arizona. Between 1982 and 1987, McCain had received $112,000 in political contributions from Keating and his associates. In addition, McCain’s wife Cindy McCain and her father Jim Hensley had invested $359,100 in a Keating shopping center in April 1986, a year before McCain met with the regulators. McCain, his family, and their baby-sitter had made nine trips at Keating’s expense, sometimes aboard Keating’s jet. Three of the trips were made during vacations to Keating’s opulent Bahamas retreat at Cat Cay. McCain did not pay Keating (in the amount of $13,433) for some of the trips until years after they were taken, when he learned that Keating was in trouble over Lincoln. On his Keating Five experience, McCain has said: “The appearance of it was wrong. It’s a wrong appearance when a group of senators appear in a meeting with a group of regulators, because it conveys the impression of undue and improper influence. And it was the wrong thing to do.”

So where is the Obama ad using “Poor Judgment” as its theme?  Wouldn’t it be nice to see that phrase repeated under a picture of Sarah Palin?

Stupidity As A Virtue

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September 15, 2008

The initial interview Charlie Gibson had with Sarah “The Gumball” Palin, televised on Thursday, September 11, displayed her ability to rattle off scripted answers to Gibson’s questions.  At times, I wondered whether there might have been a “handler” on the set, giving Palin signals as to what answer to recite.  Perhaps by running his hand through his hair and patting his stomach after one of Gibson’s questions, such a handler may have given Palin the signal:  Answer #6.  Later in the interview, when Gibson asked her about a possible invasion of Iran by Israel to bomb nuclear facilities, the “handler” may have scratched his ear and rubbed his right eye: a signal to use answer #4.  After Gibson pressed for a real answer to that question, the handler may have placed his hand to his forehead, palm out, with four fingers extended, meaning:  Repeat answer #4.  When Gibson pressed on for an answer to his question, the hand would have risen in front of the forehead once again, with the four fingers extended.  Although The Gumball may have been able to decide for herself, which question required which answer number, she was obviously reciting canned responses prepared by McCain’s strategists.  Curiously, there was no answer praising the merits of the “Bush doctrine” of pre-emptive warfare.  After the interview, Palin’s apologists explained away The Gumball’s ignorance about the issue, as confusion resulting from some sort of trick question.

In this Presidential campaign, the word “elite” has become a code word for “smart”.  Hillary Clinton used that word to describe Barack Obama, probably because he made Law Review while attending law school, although she never made law review.  (She did serve on the editorial board of a publication called Yale Review of Law and Social Action, which existed only while she was there.)  Obama not only made Law Review at Harvard; he was the President of the Harvard Law Review – an executive position Sarah Palin could never achieve in this or any other lifetime.  The term “elite” is continuously used by McCain supporters in reference to (smart) politicians, news outlets (that employ only smart people), publications (requiring that one be credentialed as “smart” to write for them), as well as educational institutions that would never admit the likes of Sarah Palin or John McCain.  John McCain graduated sixth from the bottom of his class at Annapolis.  He was accepted there because both his father and grandfather graduated from the Naval Academy.  If that doesn’t sound like a familiar pattern, you may want to do some reading about a man named Prescott Bush.

There is an apparent attempt by the McCain camp to manipulate as much of the voting public as possible, into believing that anyone who is “smart” is an “elite” and therefore, somehow “bad”.  This is an easy sell to those who feel jealous of, and intimidated by, people they believe to be smarter than themselves.  The question is:  are there enough of those people out there for this strategy to work?  In twelve years, have we gone from Beavis and Butthead Do America to Beavis and Butthead are America?  The lobbyists who run the McCain campaign are counting on it.  Meanwhile, Palin can continue to say dumb things (including the lie about Iraq as responsible for the attacks of September 11) and McCain can say even dumber things.  In a Portland, Maine TV interview, McCain was asked to explain what experience Palin had in the area of national security.  McCain responded:  “Energy.  Sarah Palin knows more about energy than anyone else in the United States of America.”  Part of McCain’s comfort about saying something so inane, is based on his failure to realize that in the age of YouTube.com, he will be accountable for this statement to a world-wide audience.  Second, he probably lacks the insight to realize what a bombastic claim that was.  Finally, his campaign strategists probably realize that such stupidity will actually endear McCain to a large number of voters. This makes me wonder whether they actually instructed The Gumball to deliberately mispronounce the word “nuclear” based on similar strategy.

The important point to keep in mind is that a significant percentage of American voters do not base their Presidential preferences on any rational thought process.  They decide “from their gut”.  McCain’s campaign staff knows this, because it’s how George W. Bush got elected.  If the Obama campaign wants to stay in this fight, they are going to have to tailor a message that will reach this population.  One way to accomplish this would be to base their ads on proven, successful, commercial TV ad campaign themes.  Obama will never “dumb down” to the level of McCain, Bush or Palin to win over the hearts of mindless voters.  Nevertheless, he should not overlook an appeal to the consensual mentality of that large population, referred to as “the masses”.  He should always remember that sage advice from comedy movie legend, Stan Laurel:  “You can lead a horse to water … but a pencil has to be lead.”

From St. Paul to Ron Paul

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September 11, 2008

The first time I ever voted in a Presidential election was when I decided to vote for the Libertarian candidate, Roger MacBride.  I agreed with the principles of the Libertarian Party.  They had good writers, putting their message together in a way that could gain the enthusiasm of those not electrified by “Oatmeal Man” Gerald Ford, or by the tranquil Jimmy Carter.  Although they have not managed to get many charismatic candidates to act as their standard-bearers, the Libertarians finally have one this year.  Bob Barr served in Congress as the Representative for Georgia’s 7th Congressional District from 1995 to 2003.  In Congress, he served as a senior member of the Judiciary Committee, as Vice-Chairman of the Government Reform Committee, as a member of the Committee on Financial Services and the Committee on Veteran’s Affairs.  Although he was a harshly partisan antagonist of Bill Clinton during the impeachment promotion, he subsequently took on a relaxed, charming demeanor, winning over the usually “cold room” for conservatives on HBO’s Real Time with Bill Maher.  In 2004, he left the Republican Party to join the Libertarian Party.

Bob Barr is now running for President, as the candidate of the Libertarian Party.  In 1988, Ron Paul was the Libertarian Party’s Presidential candidate.  You may remember Ron Paul from the 2008 Republican primaries, occasionally beating Rudy Giuliani and the other “also-rans” of this past spring.

On September 10, Barr’s campaign manager, Bob Varney, issued a press release, disclosing that Bob Barr has invited GOP Congressman Ron Paul to be his running mate in the upcoming Presidential election.  The press release disclosed that:

In a letter sent to Paul, Barr called Paul one of the “few American patriots” who exist in today’s society, and asked him to “seriously consider this final offer as an opportunity to show true, lasting leadership beyond party politics”.

Wayne Allyn Root, who has been Barr’s running mate in this election, was quoted in the press release as expressing support for the selection of Ron Paul as Barr’s new running mate:

Understanding Dr. Ron Paul’s reputation and name recognition in the freedom movement, I am willing to step aside as Libertarian vice presidential candidate if he would be willing to take my place.  I will pledge to work day and night, just as I have as the vice presidential nominee, to support Dr. Paul.  I believe this is a wonderful opportunity for the Libertarian and freedom movements.  I encourage Dr. Paul to accept Congressman Barr’s offer.

Many might consider this entire idea as the daydream of some “fringe” political group.  Nevertheless, you may want to look down the road (as the Libertarians obviously are) to a scenario wherein Sarah Palin, for whatever reason, alienates the centrist Republicans and independents, who may have otherwise voted for McCain.  These people might then vote for Bob Barr.  Add to the mix, those not currently enthusiastic about a McCain Presidency, who just can’t get motivated to vote for Barack Obama (for whatever reason).  With Ron Paul on his ticket, Barr has the possibility of winning enough electoral votes to prevent McCain or Obama from winning a majority of Electors as a result of the general election, in the event that “wild card” Palin turns out to be a disaster.  If that happens and no single candidate has a majority of Electors in the Electoral College, the Twelfth Amendment requires that the Presidential election shall be decided in the House of Representatives.  Since Bob Barr and Ron Paul both served in the House, unlike Barack Obama, there is a chance that Barr could win the Presidency.  The mere fact that the Democrats have a majority in the House is of no consequence.   The Twelfth Amendment requires that each State shall vote in the House as a single delegation, with each State having only one vote.  That vote would be determined by the majority of a State’s Representatives voting for a particular candidate.  He who has 26 States, wins.  (The Vice-President is elected by the Senate, making a  McCain/Paul administration  possible.)  With Sarah Palin as McCain’s running mate, a Barr/Paul Libertarian ticket could get some breathing room.  If there is enough breath to carry that ticket out of the Electoral College, we could be in for some wild times.