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Looking Beyond The Smokescreen

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We bloggers have the mainstream news outlets to thank for our readership.  The inane, single-minded focus on a particular story, simply because it brings a huge audience to one’s competitors, regularly provides the driving force behind programming decisions made by those news producers.  As a result, America’s more discerning, critical thinkers have turned to internet-based news sources (and blogs) to familiarize themselves with the more important stories of these turbulent times.

Robert Oak, at The Economic Populist website, recently expressed his outrage concerning the fact that a certain over-publicized murder trial has eclipsed coverage of more important matters:

For over a week we’ve heard nothing else by the press but Casey Anthony.  Imagine what would happen if Nancy Grace used her never ending tape loop rants of hatred against tot mom to spew and prattle about the U.S. economy? Instead of some bizarre post traumatic public stress disorder, stuck in a rut, obsessive thought mantra, repeating ad nauseum, she’s guilty, we might hear our politicians are selling this nation down the river.

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Folks, don’t you think the economy is just a little more important and actually impacts your lives than one crime and trial?  The reality is any story which really impacts the daily lives of working America is not covered or spun to fiction.

The fact that “our politicians are selling this nation down the river” has not been overlooked by Brett Arends at MarketWatch.  He recently wrote a great essay entitled, “The Next, Worse Financial Crisis”, wherein he discussed ten reasons “why we are doomed to repeat 2008”.  Of the ten reasons, my favorite was number 7, “The ancient regime is in the saddle”:

I have to laugh whenever I hear Republicans ranting that Barack Obama is a “liberal” or a “socialist” or a communist.  Are you kidding me?  Obama is Bush 44.  He’s a bit more like the old man than the younger one.  But look at who’s still running the economy: Bernanke. Geithner. Summers. Goldman Sachs. J.P. Morgan Chase. We’ve had the same establishment in charge since at least 1987, when Paul Volcker stood down as Fed chairman.  Change?  What “change”?  (And even the little we had was too much for Wall Street, which bought itself a new, more compliant Congress in 2010.)

As the 2012 campaign season begins, one need not look too far to find criticism of President Obama. Nevertheless, as Brett Arends explained, most of that criticism is a re-hash of the same, tired talking points we have been hearing since Obama took office.  We are only now beginning to hear a broader chorus of pushback from commentators who see Obama as the President I have often described as the “Dissapointer-In-Chief”.  Marshall Auerback wasn’t so restrained in his recent appraisal of Obama’s maladroit response to our economic crisis, choosing instead to ratify a well-deserved putdown, which most commentators felt obligated to denounce:

It may not have been the most felicitous choice of phrase, but Mark Halperin’s characterization of Barack Obama was not far off the mark, even if he did get suspended for it.  The President is a dick, at least as far as his understanding of basic economics goes.  Obama’s perverse fixation with deficit reduction uber alles takes him to areas where even George W. Bush and Ronald Reagan dared not to venture.  Medicare and Social Security are now on the table.  In fact entitlements of all kinds (excluding the myriad of subsidies still present to Wall Street) are all deemed fair game.

To what end?  Deficit control and deficit reduction, despite the fact that at present, the US has massive excess capacity including millions of unemployed and underemployed, a negative contribution from net exports, and a stagnant private spending growth horizon.  Yet the President marches on, oblivious to the harm his policies would introduce to an already bleeding economy, using the tired analogy between a household and a sovereign government to support his tired arguments.  It may have been impolitic, but “dick” is what immediately sprang to mind as one listened incredulously to the President’s press conference, which went from the sublime to the ridiculous.

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Let’s state it again:  households do not have the power to levy taxes, to issue the currency we use, and to demand that those taxes are paid in the currency it issues.  Rather, households are users of the currency issued by the sovereign government.  Here the same distinction applies to private businesses, which are also users of the currency.  There’s a big difference, as all us on this blog have repeatedly stressed:  Users of a currency do face an external constraint in a way that a sovereign issuer of its currency does not.

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The President has the causation here totally backward.  A growing economy, characterized by rising employment, rising incomes and rising capacity utilization causes the deficit to shrink, not the other way around.  Rising prosperity means rising tax revenues and reduced social welfare payments, whereas there is an overwhelming body of evidence to support the opposite – cutting budget deficits when there is slack private spending growth and external deficits will erode growth and destroy net jobs.

The increasing, widespread awareness of Obama’s mishandling of the economic crisis has resulted in a great cover story for New York Magazine by Frank Rich, entitled, “Obama’s Original Sin”.  While discussing Rich’s article, Yves Smith of Naked Capitalism lamented the fact that Obama is – again – the beneficiary of undeserved restraint:

Even Rich’s solid piece treats Obama more kindly that he should be.  He depicts the President as too easily won over by “the best and the brightest” in the guise of folks like Robert Rubin and his protégé Timothy Geithner.

We think this characterization is far too charitable.  Obama had a window in time in which he could have acted, decisively, to rein the financial services in, and he and his aides chose to let it pass and throw their lot in with the banksters.  That fatal decision has severely constrained their freedom of action, as we explain .  .  .

Miscreants such as Casey Anthony serve as convenient decoys for public anger.  Hopefully, by Election Day, the voters will realize that Casey Anthony isn’t to blame for the pathetic state of America’s economy and they will vote accordingly.


 

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The Al Franken Month

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January 26, 2009

At the end of 1979, Al Franken appeared on the “Weekend Update News” during Saturday Night Live to announce that the 1980s would be “The Al Franken Decade”.  For those of us old enough to remember, it’s scary to realize that “The Al Franken Decade” ended almost twenty years ago.  In 1999, Franken released a book entitled:  Why Not Me? concerning his fictitious run for the Presidency in 2000.  The cover of the book featured a photograph of Franken being sworn in as President.  Although many news publications restrict their discussions of Franken’s background to the subject of his years with Saturday Night Live, they overlook the elements on his resume qualifying him to serve as a United States Senator.  For one thing, he graduated cum laude from Harvard in 1973.  In 1996, he wrote a book entitled: Rush Limbaugh Is a Big Fat Idiot and Other Observations, wherein he dared to challenge the most outspoken pundit of conservative talk radio.  The book found its way to the number one spot on the New York Times best seller list.  He subsequently took on the Fox News organization with his book:  Lies and the Lying Liars Who Tell Them: A Fair and Balanced Look at the Right.  The book sported a picture of Bill O’Reilly on the cover and included a chapter criticizing O’Reilly’s on-air statements.  From 2004 through 2007, Franken hosted his own talk show on Air America Radio.  His program was primarily focused on political issues.

Franken’s Minnesota campaign against Norm Coleman for the United States Senate has found its way into the court system, with the trial scheduled to begin today.  By the time votes had been counted (on November 18) Coleman was ahead by only 215 votes.  Because the candidates were separated by less than 0.5 percent of the vote, Minnesota law required an automatic recount.  On January 5, 2009, the Minnesota State Canvassing Board certified the recounted vote totals, with Franken leading by 225 votes.  The next day, Coleman filed suit, contesting the recount result.  The trial of this case is taking place before a three-judge panel of “trial-level” judges.  As you can imagine, there will likely be an appeal from whatever result is reached in that case.  In the mean time, Franken has filed a motion before the Minnesota Supreme Court to compel Secretary of State Mark Ritchie and Governor Tim Pawlenty to sign the election certificate, designating Franken as the winner.  That hearing is set for February 5.

A good source for understanding the court battle over this Senate seat is MinnPost.com.  There, you will find Jay Weiner’s guide to the trial as a handy reference.  Mr. Weiner has spelled out the issues raised by Coleman’s suit in the following manner:

Were the more than 2.9 million votes cast on Nov. 4, 2008, for Democratic challenger Al Franken and Republican incumbent Sen. Norm Coleman counted accurately, fairly and uniformly statewide?

Were about 11,000 of the 288,000 absentee ballots cast rejected properly and with consistent measures in all 87 counties?

Were any votes counted twice? Just because a precinct registry says 20 people voted and 22 votes exist, does that mean votes were double counted?  Are there other reasons such discrepancies could exist?

Should votes cast on Election Day that have since gone missing be counted?

Should votes that were found after Election Day that weren’t originally counted by included in the final tally?

Jay Weiner’s article also included his take on the ultimate outcome of this suit:

For all the talk of alleged double-counted votes or missing votes or newly found votes after Election Day, it seems unlikely that Coleman can scrounge up enough votes in those categories to net him the 226 new votes he needs.

Meanwhile, Michael O’Brien of The Hill website, has disclosed that Coleman has taken a job with the Republican Jewish Coalition while this battle continues:

In what could be seen as a sign that Coleman thinks his bid to return to the Senate may be lost, he has signed on to do consulting work for the group, which is comprised of a number GOP leaders.

“The senator needs to earn a living while the contest is going on,” said Coleman spokesman Mark Drake, who said the job does not at all affect Coleman’s bid to win reelection.

With the Democratic Party poised to capture yet another Senate seat, we can expect a lot of excitement to surround this trial.  The Al Franken Decade may be long gone but, like it or not, the current decade has brought us The Al Franken Month.  Beyond that, if this trial ends up the way most commentators expect, the United States Senate will experience at least one Al Franken Term.  Six years may not be another decade … but it should be fun.