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Disappointing Diatribe From A Disillusioned Dionne

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Poor E.J. Dionne!  He is suffering through the same transition process experienced by many Obama supporters who have been confronted with the demise of the President’s phony “populist” image.  The stages one passes through when coping with such an “image death” are identical to those described in the Model of Coping with Dying, created in 1969 by Psychiatrist, Dr. Elisabeth Kübler-Ross. For example, a few weeks ago, Bill Maher was passing through the “Bargaining” stage – at which point he suggested that if we elect Obama to a second term in the White House, the President will finally stand up for all of those abandoned principles which candidate Obama advocated during the 2008 campaign.  As we saw during Friday’s episode of Maher’s Real Time program on HBO, the comedian has now progressed to the “Acceptance” stage, as demonstrated by his abandonment of any “hope” that Obama’s pseudo-populist image might still be viable.

Meanwhile E.J. Dionne appears to be transitioning from the “Denial” stage to the “Anger” stage – as exemplified by his dwelling on the issue of who is to blame for this image death.  Dionne’s conclusion is that “Centrists” are to blame.  Dionne’s recent Washington Post column began with the premise that “centrism has become the enemy of moderation”.  While attempting to process his anger, Dionne has expounded some tortured logic, rambling through an elaborate “distinction without a difference” comparison of “Centrists” with “Moderates”, based on the notion that Moderates are good and Centrists are bad.   Dionne’s article was cross-posted at the Truthdig blog, where many commentors criticized his argument.  One reason why so many Truthdig readers had less trouble accepting the demise of Obama’s false “populist” image, could have been their exposure to the frequent criticism of Obama appearing at that website – as exemplified by this cartoon by Mr. Fish, which appeared immediately to the left of Dionne’s article on Saturday.

An easy way to make sense of Dionne’s thought process at this “Anger” stage is to replace any references to “centrists” or “centrism” by inserting Obama’s name at those points.  For example:

Because centrism Obama is reactive, you never really know what a centrist Obama believes.  Centrists are Obama is constantly packing their his bags and chasing off to find a new location as the political conversation veers one way or another.

*   *   *

Yet the center’s devotees, in politics and in the media, Obama fear(s) saying outright that by any past standards—or by the standards of any other democracy—the views of this new right wing are very, very extreme and entirely impractical.  Centrists Obama worr(ies) that saying this might make them him look “leftist” or “partisan.”

Instead, the center Obama bends.  It He concocts deficit plans that include too little new tax revenue.  It He accepts cuts in programs that would have seemed radical and draconian even a couple of years ago.  It He pretends this crisis is caused equally by conservatives and liberals when it is perfectly clear that there would be no crisis at all if the right hadn’t glommed onto the debt ceiling as the (totally inappropriate) vehicle for its anti-government dreams.

It’s time for moderates to abandon centrism Obama and stop shifting with the prevailing winds.  They need to state plainly what they’re for, stand their ground, and pull the argument their way. Yes, they would risk looking to “the left” of where the center Obama is now – but only because conservatives have pulled it him so far their way.

Toward the end of the piece we see how Dionne is getting some glimpses of the fact that Obama is the problem:

But when this ends, it’s Obama who’ll need a reset.  At heart, he’s a moderate who likes balance.  Yet Americans have lost track of what he’s really for. Occasionally you wonder if he’s lost track himself.  He needs to remind us, and perhaps himself, why he wants to be our president.

In reality, Barack Obama was able to deceive Americans by convincing them that he was for populist causes rather than corporatist goals.  The President never “lost track of what he’s really for”.  He has always been Barry O. Tool – a corporatist.

At the conclusion of Dionne’s essay we learn that – contrary to what we were told by Harry Truman – “the buck” stops at the desks of Obama’s “centrist advisers”:

His advisers are said to be obsessed with the political center, but this leads to a reactive politics that won’t motivate the hope crowd that elected Obama in the first place.  Neither will it alter a discourse whose terms were set during most of this debt fight by the right.

We’ve heard the “blame the advisers” rationale from others who passed through the Kübler-Ross phases at earlier points during the Obama Presidency:  There were those who sought to blame Rahm Emanuel when the “public option” was jettisoned from Obama’s healthcare bill.  We then heard from the “Hope fiends” who blamed Larry Summers, Tim Geithner and Peter Orszag for Obama’s refusal to seriously consider the “Swedish solution” of putting the zombie megabanks through temporary receivership.  In fact, it was Obama making those decisions all along.

I’m confident that once E.J. Dionne reaches the “Acceptance” stage, we will hear some refreshing, centered criticism of President Obama.


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Balance Provokes Outrage

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December 13 marked the launch date for an organization named No Labels.  The group describes itself this way:

No Labels is a 501(c)(4) social welfare advocacy organization created to provide a voice for America’s vital center, where ideas are judged on their merits, a position which is underrepresented in our current politics.  No Labels provides a forum and community for Americans of all political backgrounds interested in seeing the nation move not left, not right, but forward.  No Labels encourages all public officials to prioritize the national interest over party interest, and to cease acting on behalf of narrow, if vocal, special interests on the far right or left.

Although No Labels has both a Declaration and a Statement of Purpose, you will find the most useful information about the group on its Frequently Asked Questions page.

As a political centrist, I found most of what I read at the No Labels website appealing enough, although I disagreed with a bit of it.  First of all, the group would have been more aptly-named, “No Polarization” since they aren’t really opposed to labels, as they explained:

We are never asking people to give up their labels, only put them aside to do what’s best for America.

Besides – I enjoy using labels to describe people.  Some of my favorite labels include:  corporatist, plutocrat, oligarch and tool.  Another statement on the No Labels website with which I disagreed was the following remark, from their Statement of Purpose:

We can’t seem to break our addiction to foreign oil.

I would suggest:  “We can’t seem to break our addiction to carbon-based energy sources.”  There is no such thing as “foreign oil”.  The so-called, “American” oil companies are all incorporated in the Cayman Islands and none of them pay income taxes to our government.  All of our oil comes from multinational corporations and it is commingled with “Muslim oil” and “Venezuelan Communist oil” at storage depots.  If the people from No Labels insist on treating us as idiots in the same manner as the two major political parties, they will deservedly fail in their mission.

I was particularly amused by the fact that so many people expressed outrage about the founding of No Labels.  The new organization managed to draw plenty of ire from an assortment of commentators during the past week and it made for some fun reading.  One of the “Founding Leaders” of No Labels is John Avlon of the Huffington Post.  He recently wrote this essay in response to spleen-venting by Rush Limbaugh on the right and Keith Olbermann on the left – both of whom expressed displeasure with the inception of the new association:

“If we do this right, we can discredit this whole mind-set of the ‘moderate center’ being the defining group in American politics,” said Rush.  “Because this No Labels group is going to end up illustrating what a fraudulent idea that whole concept of, ‘There are people who decide issue by issue.  On the left they like certain things, on the right they like certain things.’ ”

So Rush believes that there are no principled Americans who decide what they believe on different policies issue-by-issue.  For someone who talks about freedom a lot, he doesn’t have much faith in free will or free-thinking.  He doesn’t believe that Americans — especially independent voters — can consider themselves fiscally conservative but socially liberal.  You either walk in lockstep as a social conservative and fiscal conservative or you are a ‘hard-core liberal’ — libertarians, apparently, need not apply.

*   *   *

Keith Olbermann named No Labels one of the “worst persons in the world” last night (a badge of honor he gave to me earlier this year).  He called us “wolves in sheep’s clothing,” and “a bunch of fraudulent conservative Democrats pretending to be moderates and a bunch of fraudulent Republicans pretending to be independents.”  Again, there’s the impulse to divide and deny the legitimacy of anyone who doesn’t conform to a hyper-partisan view of politics.

Conservative columnist George Will provided this amusing bit of speculation that the entire effort might simply be a pretext for Michael Bloomberg’s Presidential ambitions:

Often in the year before the year before the year divisible by four, a few political people theatrically recoil from partisanship.  Recently, this ritual has involved speculation about whether New York Mayor Michael Bloomberg might squander a few of his billions to improve America by failing to be elected president.

Oh, snap!  Good one, George!

The strangest reaction to the kick-off of No Labels came from Frank Rich of The New York Times.  The relevant portions of Mr. Rich’s rant seemed to be based on the theme that the Republican-dominated 112th Congress will be intransigent and therefore, President Obama along with his fellow Democrats, must fight intransigence with intransigence.  This formula for gridlock would ultimately prove more harmful to Democrats than Republicans.

The Frank Rich diatribe was particularly bizarre because it rambled all over the place, with rants about people and subjects having nothing to do with No Labels.  Peter Orszag has no connection to No Labels.  So, why did Frank Rich go off on the wild tangent about Orszag, Citigroup and Scott Brown’s contributions from the financial sector as though any of them might have had something to do with No Labels?  Forget about what John Avlon told you concerning Keith Olberman’s putting No Labels on his “worst persons in the world” list.  According to Frank Rich, the entire No Labels effort is actually a “a promotional hobby horse for MSNBC”.  It gets weirder:  Rich believes that because a political consultant (Mark McKinnon) and a fund-raiser (Nancy Jacobson) are “prime movers” for No Labels . . .  therefore “No Labels itself is another manifestation” of the syndrome wherein “both parties are bought off by special interests who game the system and stack it against the rest of us.”  At this point, the only factoid I can find to support that allegation is the inclusion of the term “foreign oil” in the group’s Statement of Purpose.  So, I’ll keep an open mind.  Besides, I enjoy a good conspiracy theory as well as Jesse Ventura’s television program with the same name.  Nevertheless, it becomes difficult to stick with Frank Rich’s theory that by failing to seek re-election as Senator of Indiana, Evan Bayh deliberately “facilitated the election of a high-powered corporate lobbyist, Dan Coats, as his Republican successor”.  The fact that Bayh’s father, former Senator Birch Bayh, is a lobbyist is interposed to emphasize the likelihood that Evan will also become a lobbyist.  Is this discussion being offered to explain that Evan Bayh “stepped aside” to allow Dan Coats to become Senator because Bayh has a genetic pre-disposition to the “Lobbyist Code of Dishonor”?  If so, in what manner does this impact No Labels?  Guilt by association?

The animosity generated by this group’s stand against what it calls “hyper-partisanship” demonstrates that the opponents of No Labels are advocates of hyper-partisanship.  In the days ahead, it will be interesting to see who else speaks out to “give acrimony a chance”.


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Fedbashing Is On The Rise

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It seems as though everyone is bashing the Federal Reserve these days.  In my last posting, I criticized the Fed’s most recent decision to create $600 billion out of thin air in order to purchase even more treasury securities and mortgage-backed securities by way of the recently-announced, second round of quantitative easing (referred to as QE2).  Since that time, I’ve seen an onslaught of outrage directed against the Fed from across the political spectrum.  Bethany McLean of Slate made a similar observation on November 9.  As the subtitle to her piece suggested, people who criticized the Fed were usually considered “oddballs”.  Ms. McLean observed that the recent Quarterly Letter by Jeremy Grantham (which I discussed here) is just another example of anti-Fed sentiment from a highly-respected authority.  Ms. McLean stratified the degrees of anti-Fed-ism this way:

If Dante had nine circles of hell, then the Fed has three circles of doubters.  The first circle is critical of the Fed’s current policies. The second circle thinks that the Fed has been a menace for a long time.  The third circle wants to seriously curtail or even get rid of the Fed.

From the conservative end of the political spectrum, the Republican-oriented Investor’s Business Daily provided an editorial on November 9 entitled, “Fighting The Fed”.  More famously, in prepared remarks to be delivered during a trade association meeting in Phoenix, Sarah Palin ordered Federal Reserve chairman Ben Bernanke to “cease and desist” his plan to proceed with QE2.  As a result of the criticism of her statement by Sudeep Reddy of The Wall Street Journal’s Real Time Economics blog, it may be a while before we hear Ms. Palin chirping about this subject again.

The disparagement directed against the Fed from the political right has been receiving widespread publicity.  I was particularly impressed by the pummeling Senator Jim Bunning gave Ben Bernanke during the Federal Reserve Chairman’s appearance before the Senate Banking Committee for Bernanke’s confirmation hearing on December 3, 2009.  Here is the most-frequently quoted portion of Bunning’s diatribe:

.   .   .   you have decided that just about every large bank, investment bank, insurance company, and even some industrial companies are too big to fail.  Rather than making management, shareholders, and debt holders feel the consequences of their risk-taking, you bailed them out. In short, you are the definition of moral hazard.

Michael Grunwald, author of Time magazine’s “Person of the Year 2009” cover story on Ben Bernanke, saw fit to write a sycophantic “puff piece” in support of Bernanke’s re-confirmation as Fed chairman.  In that essay, Grunwald attempted to marginalize Bernanke’s critics with this statement:

The mostly right-leaning (deficit) hawks rail about Helicopter Ben, Zimbabwe Ben and the Villain of the Year,   . . .

The “Helicopter Ben” piece was written by Larry Kudlow.  The “Zimbabwe Ben” and “Villain of the Year” essays were both written by Adrienne Gonzalez of the Jr. Deputy Accountant website, who saw her fanbase grow exponentially as a result of Grunwald’s remark.  The most amusing aspect of Grunwald’s essay in support of Bernanke’s confirmation was the argument that the chairman could be trusted to restrain his moneyprinting when confronted with demands for more monetary stimulus:

Still, doves want to know why he isn’t providing even more gas. Part of the answer is that he doesn’t seem to think that pouring more cash into the banking system would generate many jobs, because liquidity is not the current problem.  Banks already have reserves; they just aren’t using them to make loans and spur economic activity.  Bernanke thinks injecting even more money would be like pushing on a string.
*   *   *

To Bernanke, the benefits of additional monetary stimulus would be modest at best, while the costs could be disastrous. Reasonable economists can and do disagree.

Compare and contrast that Bernanke with the Bernanke who explained his rationale for more monetary stimulus in the November 4, 2010 edition of The Washington Post:

The FOMC decided this week that, with unemployment high and inflation very low, further support to the economy is needed.

*   *   *

But the Federal Reserve has a particular obligation to help promote increased employment and sustain price stability. Steps taken this week should help us fulfill that obligation.

Bernanke should have said:  “Pushing on a string should help us fulfill that obligation.”

Meanwhile, the Fed is getting thoroughly bashed from the political left, as well.  The AlterNet website ran the text of this roundtable discussion from the team at Democracy Now (Michael Hudson, Amy Goodman and Juan Gonzalez – with a cameo appearance by Joseph Stiglitz) focused on the question of whether QE2 will launch an “economic war on the rest of the world”.  I enjoyed this opening remark by Michael Hudson:

The head of the Fed is known as “Helicopter Ben” because he talks about dropping money into the economy.  But if you see helicopters, they’re probably not your friends.  Don’t go out and wait for them to drop the money, because the money is all going electronically into the banks.

At the progressive-leaning TruthDig website, author Nomi Prins discussed the latest achievement by that unholy alliance of Wall Street and the Federal Reserve:

The Republicans may have stormed the House, but it was Wall Street and the Fed that won the election.

*   *   *

That $600 billion figure was about twice what the proverbial “analysts” on Wall Street had predicted.  This means that, adding to the current stash, the Fed will have shifted onto its books about $1 trillion of the debt that the Treasury Department has manufactured.  That’s in addition to $1.25 trillion more in various assets backed by mortgages that the Fed is keeping in its till (not including AIG and other backing) from the 2008 crisis days.  This ongoing bailout of the financial system received not a mention in pre- or postelection talk.

*   *   *

No winning Republican mentioned repealing the financial reform bill, since it doesn’t really actually reform finance, bring back Glass-Steagall, make the big banks smaller or keep them from creating complex assets for big fees.  Score one for Wall Street.  No winning Democrat thought out loud that maybe since the Republican tea partyers were so anti-bailouts they should suggest a strategy that dials back ongoing support for the banking sector as it continues to foreclose on homes, deny consumer and small business lending restructuring despite their federal windfall, and rake in trading profits.  The Democrats couldn’t suggest that, because they were complicit.  Score two for Wall Street.

In other words, nothing will change.  And that, more than the disillusionment of his supporters who had thought he would actually stand by his campaign rhetoric, is why Obama will lose the White House in 2012.

The only thing I found objectionable in Ms. Prins’ essay was her reference to “the pro-bank center”.  Since when is the political center “pro-bank”?  Don’t blame us!

As taxpayer hostility against the Fed continues to build, expect to see this book climb up the bestseller lists:  The Creature from Jekyll Island.   It’s considered the “Fedbashers’ bible”.


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