Tag: Politics

The High Cost For Bad Internet Connection In The US

Recently the Federal Communications Commission announced that it wanted to create a free super Wi-Fi network across the country, virtually eliminating a monthly internet bill.  Naturally, the telecommunication giants and the lawmakers in Congress who protect them are opposed.  In Europe, internet users enjoy inexpensive, high speed access to a broadband, phone, and cable TV package for as little as $40 a month.  The phone service has unlimited local calling and a lot of free international calls.

Bloomberg View contributor and  visiting professor at the Harvard Kennedy School of Government and Harvard Law School, Susan Crawford notes that Americans pay a high price for slow and bad internet connections at a time when “the internet has taken the place of the telephone as the world’s basic, general-purpose, two-way communication medium“.  In the article, she describes how a city in Louisiana brought cheaper, high speed internet to its community despite opposition from the telephone and local cable companies:

Terry Huval is a large, friendly man with a lilting Southern accent who plays Cajun fiddle tunes in his spare time. He is also the director of utilities in Lafayette, Louisiana. “Our job is making sure we listen to our citizens,” he says.

In 2004, the Lafayette utilities system decided to provide a fiber-to-the-home service. The new network, called LUS Fiber, would give everyone in Lafayette a very fast Internet connection, enabling them to lower their electricity costs by monitoring and adjusting their usage.

Push-back from the local telephone company, BellSouth Corp., and the local cable company, Cox Communications Inc., was immediate. They tried to get laws passed to stop the network, sued the city, even forced the town to hold a referendum on the project — in which the people voted 62 percent in favor. Finally, in February 2007, after five civil lawsuits, the Louisiana Supreme Court voted, 7-0, to allow the network.

From 2007 to mid-2011, people living in Lafayette saved $5.7 million on telecommunications services.

Prof. Crawford joined Bill Moyers on Moyers & Company to discuss why U.S. internet access is slow, costly and unfair

Susan Crawford, former special assistant to President Obama for science, technology and innovation, and author of Captive Audience: The Telecom Industry and Monopoly Power in the New Gilded Age, joins Bill to discuss how our government has allowed a few powerful media conglomerates to put profit ahead of the public interest – rigging the rules, raising prices, and stifling competition. As a result, Crawford says, all of us are at the mercy of the biggest business monopoly since Standard Oil in the first Gilded Age a hundred years ago.

“The rich are getting gouged, the poor are very often left out, and this means that we’re creating, yet again, two Americas, and deepening inequality through this communications inequality,” Crawford tells Bill.

Punting the Pundits

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

Wednesday is Ladies’ Day

Follow us on Twitter @StarsHollowGzt

Marcy Wheeler, aka emptywheel: Innocent Until Proven Guilty; Imminent Until Proven – Too Late!

Those defending the language on imminence in the white paper released last week are right on one count: it is not new language. Below the fold, I’ve excerpted the language on imminence from three different formulations on imminence – Brennan’s speech at Harvard, the white paper, and Holder’s Northwestern speech – to show the consistency (and also, with John Brennan’s September 16, 2011 speech, exactly two weeks to Anwar al-Awlaki notice that this was now US policy). [..]

It’s telling not because it introduces wholesale new ideas. But because it makes clear what is implicit – but unstated – in the three other formulations.

A person who poses an imminent threat does not have to have committed any crime in the past. Imminence is exclusively about the future possibility of violence, not necessarily past involvement in it.

Katrina vanden Heuvel: Stop coddling the big banks

George Will and I don’t agree on much. We’ve shared many a spirited debate over the years on ABC’s “This Week.” But on one of the key issues of our time – how to save our economy and our democracy from the reign of the big banks – it’s time for the Obama administration to listen to George Will.

In his Sunday column, “A badly needed breakup,” Will makes the conservative case for a common-sense principle: financial institutions that are Too Big to Fail are also Too Big to Exist. Will’s full-throated call to arms is welcome, and his conclusion echoes that of countless occupiers, tea partiers, and Americans of all stripes. Here’s hoping, for the sake of the republic, that Will can bring more of his fellow conservatives along with him.

Ruth Coniff: Voting Rights Under Attack

In an incendiary new report, “Rig the Vote: How a National Effort to Attack Voting Rights Landed in Wisconsin“, the Center for Media and Democracy and Citizen Action of Wisconsin Education Fund show how Republicans and rightwing groups across the country are working to undermine elections and ensure a Republican lock on electoral college votes in states that have historically voted Democratic.

Among the nefarious vote-rigging efforts explored in the report: Republicans hope to take their gerrymandered redistricting plans nationwide–changing the rules so that electoral votes in swing states are awarded based on Congressional districts, not popular vote totals.

This could guarantee that Republican candidates like Mitt Romney, even as they lose the popular vote, get enough electoral votes to become President against the will of the majority of American voters.

Marion Brady: A Real Paradigm Shift in Education

I envy Thomas Paine’s way with language. I’ve been searching for years for words that would have the impact of those he penned in his 1776 pamphlet, “The Crisis.”

Admittedly, “These are the times that try men’s souls,” and the words that followed, weren’t a howling success. Only about a third of the colonists agreed with Paine’s call for revolution. Another third wanted to stick with England. The remaining third were neutral or apathetic.

What Paine was able to do that I can’t do is sell an idea to at least enough people to make something happen. I need to convince not a third of readers but, say, a tenth, to call their legislators and tell them to dismantle the education “reform” machine assembled in Washington by business leaders and politicians.

Kimberly Halkett: US Food Industry Battles Against Regulation

Why are Americans getting fatter, and who’s to blame? It’s a question members of the US Congress need to be asking.

Like the war on tobacco decades ago, the US is now fighting a new battle on obesity. On one side are US public health officials advocating for their government to put in place better nutrition policies. But those efforts have met stiff resistance, in part because the $1 trillion US food and beverage industry is fighting regulation with a powerful weapon: its deep pockets.

It’s no secret the standard American diet is relatively inexpensive, convenient and satisfying. Whether it’s highly marketed fast food or highly processed, packaged foods in the supermarket, what Americans eat has changed dramatically over decades.

Donna Smith: Churning Isn’t Just for Butter Anymore

It isn’t often anymore that I learn a new word in the health care system discussion, but this week I did.  Churning.  I was at a meeting here in Colorado where I have taken on a new role in advocating and administering for a publicly financed, universal, single-payer system with Health Care for All Colorado.  And the definition of churning I learned is a sad commentary on a system that still allows access to care based on inequality of coverage that leaves so many people suffering and tens of thousands dying in America every year.

Churning is the policy wonk term for those who qualify and are covered by a public program like Medicaid and who then have access to a private insurance plan through a new job that offers it or through a family member’s coverage but who then lose that coverage and end up back on the public insurance for which they qualify.  They churn.  And they suffer.

SOTU: One Year Ago (Up Date)

Last night President Barack Obama gave the annual State of the Union address before the nation and a joint session of Congress. He made a lofty speech outlining his plan for the nation over the next year, most of which are highly unlikely to come to fruition due to the intransigence of the Republican held House. Will any of this be remembered in a month? Or, for that matter, next year? Does anyone remember the promises and goals from last year’s SOTU? I doubt anyone remembers this:

EXCLUSIVE: Obama To Announce Mortgage Crisis Unit Chaired By New York Attorney General Schneiderman

by Sam Stein, The Huffington Post

WASHINGTON — During his State of the Union address tonight, President Obama will announce the creation of a special unit to investigate misconduct and illegalities that contributed to both the financial collapse and the mortgage crisis.

The office, part of a new Unit on Mortgage Origination and Securitization Abuses, will be chaired by Eric Schneiderman, the New York attorney general, according to a White House official.

Schneiderman is an increasingly beloved figure among progressives for his criticism of a proposed settlement between the 50 state attorneys general and the five largest banks. His presence atop this new special unit could give it immediate legitimacy among those who have criticized the president for being too hesitant in going after the banks and resolving the mortgage crisis. He will be in attendance at Tuesday night’s State of the Union address.

Ahh! Now, you remember that. Whatever happened to the Residential Mortgage-Backed Securities Working Group? Apparently not much.

Obama’s Mortgage Crisis Working Group Falls Short Of Billing

by Sam stein and Ryan Grim, The Huffington Post

A year later, progressives said they consider the panel a disappointment and, possibly, a diversion to placate Schneiderman and homeowner advocates. The Justice Department said it doesn’t know what the fuss is about.

“You described it as a unit that was announced to great fanfare,” said Tony West, the number three man in the Justice Department, in an interview. “A lot of people have the misimpression that this is some type of prosecutorial department that was set up. What the working group is is exactly that. It is part of the financial fraud enforcement task force. It doesn’t stand alone.” [..]

Schneiderman’s working group, critics said, has not lived up to that billing. [..]

According to those involved in putting together cases, officials at the SEC were naturally disposed to striking quick settlements rather than carrying out long-term investigations. The Justice Department, meanwhile, was worried about shaking a recovering housing market and fragile banks.

(Mike) Lux, in particular, pointed an accusatory finger at working group co-chairman Lanny Breuer, the assistant attorney general for the Justice Department’s Criminal Division, who has said he will leave his post next month. [..]

Whether driven by Breuer’s presence or not, the working group suffered from what the high-level source called “leaked leverage.” With different actors wanting slightly different outcomes, it closed cases that may have potentially been made bigger. Among those cited include one last month, when the Office of the Comptroller of the Currency and the Federal Reserve reached a $8.5 settlement with 10 U.S. banks on charges of foreclosure abuses.

Stein and Grim state that ‘progressives interviewed for this story who know and like Schneiderman offered the same conclusion: He got played.” Former blogger for FDL, David Dayen disagrees:

I agree with David, Mr. Schneiderman’s settlement with banks here in New York have been disappointing, to say the least. He is not some naive neophyte. He knew precisely what he was signing up for when he was offered the position with this group.

Up Date: 18:12 EST 2.13.13: From David Dayen at Salon:

Wall Street wins again

The secret truth: There never was a “task force” dedicated to ferreting out mortgage fraud

This is the key point.  There are no offices, no phones and no staff dedicated to the non-task force.  Two of the five co-chairs have left government.  What “investigators” there are from the task force are nothing more than liaisons to the independent agencies doing their own independent investigations.  In the rare event that these agencies file an actual lawsuit or enforcement action, the un-task force merely puts out a statement taking credit for it.  Take a look at this in action at the website for the Financial Fraud Enforcement Task Force, the federal umbrella group “investigating” financial fraud.  It’s little more than a press release factory, and no indictment, conviction or settlement is too small.  The site takes credit for cracking down on Ponzi schemes, insider trading, tax evasion, racketeering, violations of the Americans With Disabilities Act (!) and a host of other crimes that have precisely nothing to do with the financial crisis.  To call this a publicity stunt is an insult to publicity stunts. [..]

Maybe these groups who claim to be interested in accountability should have recognized the value of what pressured the White House to set up the diversionary tactic of a task force in the first place: public shaming.  Last month’s Frontline documentary “The Untouchables” has had arguably more of an impact on reviving moribund financial fraud cases than anything else.  Within a couple of weeks of its premiere, the head of the criminal enforcement division, Lanny Breuer, announced he would step down.  Then, DoJ suddenly decided to sue credit rating agency Standard and Poor’s over its conflict of interest in rating clearly fraudulent securities as safe assets, a case it had been investigating for two years.  You can view this as an accident of timing; it seems more like a direct response.  Shaming has done far more than a pretend task force, though that’s admittedly a low bar.  You would think outside pressure groups would have recognized the virtue of outside pressure instead of trying to play an inside game.

h/t priceman

 

NDAA: Killing the Democratic State

Pulitzer Prize winning journalist and Truthdig columnist, Chis Hedges, along with six other journalists and activists filed a lawsuit against the Obama administration  over Section 1021 of the National Defense Authorization Act (NDAA) alleging that it violated free speech and associational rights guaranteed by the First Amendment and due process rights guaranteed by the Fifth Amendment of the United States Constitution. Last Wednesday they were back in Federal Court in Manhattan for a hearing before three judges:

Attorney Bruce Afran, addressing press and gathered activists in an icy downtown Manhattan plaza Wednesday, said the three-judge panel today challenged the government to prove that the NDAA provision is nothing more than an “affirmation” of the laws regarding indefinite detention already established by Authorization for Use of Military Force. According to the DoJ, the NDAA provision is nothing new, but simply a codification of AUMF. The plaintiffs and their supporters vehemently disagree, as did Judge Forrest last year. Afran stressed again Sunday that 1021(b)(2) “broadens the power of the military” when it comes to the capture and indefinite detention of U.S. citizens and as such “breaches the constitutional barrier between civilians and the military” and constitutes a significant extension of the military state beyond the powers given by AUMF.

Mr. Hedges explains the consequences for the nation and the democratic state should they lose this case:

If we lose in Hedges v. Obama – and it seems certain that no matter the outcome of the appeal this case will reach the Supreme Court – electoral politics and our rights as citizens will be as empty as those of Nero’s Rome. If we lose, the power of the military to detain citizens, strip them of due process and hold them indefinitely in military prisons will become a terrifying reality. Democrat or Republican. Occupy activist or libertarian. Socialist or tea party stalwart. It does not matter. This is not a partisan fight. Once the state seizes this unchecked power, it will inevitably create a secret, lawless world of indiscriminate violence, terror and gulags. I lived under several military dictatorships during the two decades I was a foreign correspondent. I know the beast. [..]

Five thousand years of human civilization has left behind innumerable ruins to remind us that the grand structures and complex societies we build, and foolishly venerate as immortal, crumble into dust. It is the descent that matters now. If the corporate state is handed the tools, as under Section 1021(b)(2) of the NDAA, to use deadly force and military power to criminalize dissent, then our decline will be one of repression, blood and suffering. No one, not least our corporate overlords, believes that our material conditions will improve with the impending collapse of globalization, the steady deterioration of the global economy, the decline of natural resources and the looming catastrophes of climate change.

But the global corporatists-who have created a new species of totalitarianism-demand, during our decay, total power to extract the last vestiges of profit from a degraded ecosystem and disempowered citizenry. The looming dystopia is visible in the skies of blighted postindustrial cities such as Flint, Mich., where drones circle like mechanical vultures. And in an era where the executive branch can draw up secret kill lists that include U.S. citizens, it would be naive to believe these domestic drones will remain unarmed. [..]

After the hearing, Mr Hedges, along with three of his co-plaintiffs, Pentagon Papers whistle-blower Daniel Ellsberg; Revolution Truth Executive Director Tangerine Bolen; journalist and U.S Day of Rage founder Alexa O’Brien; and Demand Progress Executive Director David Segal, and their attorneys, Carl Mayer and Bruce Afran, sat down to discuss the state of the lawsuit. The discussion was moderated by Natasha Lennard of Salon and Matt Sledge of The Huffington Post.

In a second panel to “discuss the broader context of the case,” Mr. Hedges, Mr. Ellsberg and Ms. Bolen were joined by film maker and activist Michael Moore, NSA whistle-blower Thomas Drake and Jesselyn Radack, an attorney for CIA whistle-blower John Kiriakou and a director of the Government Accountability Project.

Live Steam: 2013 State of the Union & Your Guide to Not Watching

Tonight President Barack Obama addresses a joint session of Congress as prescribed by the Constitution. If you prefer not to watch, you can join is for the live blog of the 2013 Westminster American Kennel Club Dog Show that starts at the same time. For those who still want to know what the president says, here is a guide of this year’s SOTU provided by Slate‘s David Weigel so you don’t have to watch:

The State of the Union is the most predictable, rote, pointless exercise of pomp in American politics. That’s good news for you. The pre-speech period, roughly 24 to 48 hours of spin and leaks, spoils the policy details that’ll be remembered when the speech is complete. (I say “policy” because they obviously can’t predict which lawmakers’ eye-rolls will make the Top 10 .gif lists.)

Based on my own close reading of this stuff, here’s what will be happening in the House of Representatives tonight.

Obama blames Republicans for things Republicans actually did, which will be seen as unfair. [..]

Republicans ask why Obama’s still not endorsing their bills. [..]

An emotional appeal on gun rights grips America. [..]

Republicans accuse Obama of ignoring the debt, while basically agreeing with his approach to it. [..]

Obama tells a horrendous, sub-Tosh.0 quality joke.

Now for your entertainment, or not, the President of the United States.

ek hornbeck says:

To tell you the truth, I don’t know why anyone is watching the Washington (Hollywood for the Ugly) Oscars when there are cute doggies on display.

Maybe you just hate dogs.

In any event you will hope (foolishly and in vain) that they don’t say anything too destructive, evil, and stupid.

The space below is provided so you don’t have to kill any more Chinese Walmart slaves through damaging your TV during any of the more egregiously wrong-headed and mendacious moments by venting your frustration in soothing pixels of insight instead of poorly aimed remotes.

Or, you know, kicking your dog.

Drones: How America Kills

How America kills using drones has been a hot topic for many on the left who feel that the Obama administration has gone too far with the ubiquitous “Global War on Terror” (GWOT) when the president ordered the assassination of Anwar Al Awlaki and two weeks later his 16 year old son. The disagreement over this policy became even more heated when the Justice Department released an undated White Paper that outlined the memos that allegedly justifies extrajudicial executions by the Executive branch without due process. Constitutional lawyer and columnist at The Guardian, Glenn Greenwald observed that the memo has forced many Democrats “out of the closet as overtly unprincipled hacks:”

Illustrating this odd phenomenon was a much-discussed New York Times article on Sunday by Peter Baker which explained that these events “underscored the degree to which Mr. Obama has embraced some of Mr. Bush’s approach to counterterrorism, right down to a secret legal memo authorizing presidential action unfettered by outside forces.” [..]

Baker also noticed this: “Some liberals acknowledged in recent days that they were willing to accept policies they once would have deplored as long as they were in Mr. Obama’s hands, not Mr. Bush’s.” As but one example, the article quoted Jennifer Granholm, the former Michigan governor and fervent Obama supporter, as admitting without any apparent shame that “if this was Bush, I think that we would all be more up in arms” because, she said “we trust the president“. Thus did we have – while some media liberals objected – scores of progressives and conservatives uniting to overtly embrace the once-controversial Bush/Cheney premises of the War on Terror (it’s a global war! the whole world is a battlefield! the president has authority to do whatever he wants to The Terrorists without interference from courts!) in order to defend the war’s most radical power yet (the president’s power to assassinate even his own citizens in secret, without charges, and without checks). [..]

What this DOJ “white paper” did was to force people to confront Obama’s assassination program without emotionally manipulative appeal to some cartoon Bad Guy Terrorist (Awlaki). That document never once mentioned Awlaki. Instead – using the same creepily clinical, sanitized, legalistic language used by the Bush DOJ to justify torture, renditions and warrantless eavesdropping – it set forth the theoretical framework for empowering not just Obama, but any and all presidents, to assassinate not just Anwar Awlaki, but any citizens declared in secret by the president to be worthy of execution. Democratic Rep. Barbara Lee wrote that the DOJ memo “should shake the American people to the core”, while Harvard Law Professor Noah Feldman explained “the revolutionary and shocking transformation of the meaning of due process” ushered in by this memo and said it constituted a repudiation of the Magna Carta.

In doing so, this document helpfully underscored the critical point that is otherwise difficult to convey: when you endorse the application of a radical state power because the specific target happens to be someone you dislike and think deserves it, you’re necessarily institutionalizing that power in general. That’s why political leaders, when they want to seize extremist powers or abridge core liberties, always choose in the first instance to target the most marginalized figures: because they know many people will acquiesce not because they support that power in theory but because they hate the person targeted. But if you cheer when that power is first invoked based on that mentality – I’m glad Obama assassinated Awlaki without charges because he was a Bad Man! – then you lose the ability to object when the power is used in the future in ways you dislike (or by leaders you distrust), because you’ve let it become institutionalized. [..]

What’s most remarkable about this willingness to endorse extremist policies because you “trust” the current leader exercising them is how painfully illogical it is, and how violently contrary it is to everything Americans are taught from childhood about their country. It should not be difficult to comprehend that there is no such thing as vesting a Democratic President with Power X but not vesting a GOP President with the same power. To endorse a power in the hands of a leader you like is, necessarily, to endorse the power in the hands of a leader you dislike.

Like Bob Herbert’s statement – “policies that were wrong under George W. Bush are no less wrong because Barack Obama is in the White House” – this is so obvious it should not need to be argued. As former Bush and Obama aide Douglas Ollivant told the NYT yesterday about the “trust” argument coming from some progressives: “That’s not how we make policy. We make policy assuming that people in power might abuse it. To do otherwise is foolish.

Hypocrisy thy name is Obama loyalists.

This weekend on Up with Chris Hayes, host Chris Hayes and his guest examined he government’s use of drone strikes and its “targeted killing” program in light of the release of the White Paper and the confirmation hearing for John Brennan, President Obama’s nominee to head the CIA. They discussed what the law allows, what the constitution allows, what American’s think should be allowed and the what are the moral and ethical implications.

To discuss “How America Kills,” Chris was joined by Jeremy Scahill, national security correspondent for The Nation magazine; Jennifer Draskal, Associate law professor at Georgetown University and fellow at the school’s Center on National Security; Richard Epstein, senior fellow at the Hoover Institution at Stanford University, professor of law at New York University Law School; and Hina Shamsi, director of the National Security Project for the ACLU.

Punting the Pundits

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

Follow us on Twitter @StarsHollowGzt

Hakim: From Afghanistan: My Voice Is Not Political, It Is Human

It’s hard for me, an ordinary citizen of Singapore, a medical doctor engaged in social enterprise work in Afghanistan and a human being wishing for a better world, to write this from Kabul.

But people are dying.

And children and women are feeling hopeless.

“What’s the point in telling you our stories?” asked Freba, one of the seamstresses working with the Afghan Peace Volunteers to set up a tailoring co-operative for Afghan women. “Does anyone hear? Does anyone believe us?”

Silently within, I answered Freba with shame,” You’re right. No one is listening.”

So, I write this in protest against my government’s presence in the humanitarian and war tragedy of Afghanistan, as a way to lend my voice to Freba and all my Afghan friends.

Modernize Registration and Require Early Voting Periods

President Obama has a long agenda for his State of the Union address, but it is important that he not forget the most fundamental democratic reform of all: repairing a broken election system that caused hundreds of thousands of people to stand in line for hours to vote last year. It is time to make good on his election-night promise.

Those seeking political power by making voting more inconvenient will resist reforms, but a better system would actually be good for both parties and, more important, the country.

Richard (RJ) Eskow: Increasing Social Security Benefits: An Idea Whose Time Has Come

Archaeologists of the future will sift through our newspapers, websites, and other ephemera and marvel at the inverted shape of our political debate. They’ll be particularly surprised to discover that, at a time when retirement security was being destroyed for an entire generation, politicians were posturing over how to make the problem even worse by cutting Social Security.

And they’ll marvel over how long it took us to agree on the right solution: Increasing Social Security benefits instead.

The concept of increasing Social Security has been around for a while. Strengthen Social Security, a coalition of 320 groups, reviewed the program’s ability to meet current and future needs and concluded that benefits should be increased rather than cut. The National Academy for Social Insurance proposed increasing benefits for vulnerable groups. The AFL-CIO has called for raising benefits. We got in the game, too, suggesting that a 15 percent increase in 2011 be included as part  of a forward-thinking progressive agenda.

Michael T. Klare: A Presidential Decision That Could Change the World: The Strategic Importance of Keystone XL

Presidential decisions often turn out to be far less significant than imagined, but every now and then what a president decides actually determines how the world turns. Such is the case with the Keystone XL pipeline, which, if built, is slated to bring some of the “dirtiest,” carbon-rich oil on the planet from Alberta, Canada, to refineries on the U.S. Gulf Coast.  In the near future, President Obama is expected to give its construction a definitive thumbs up or thumbs down, and the decision he makes could prove far more important than anyone imagines.  It could determine the fate of the Canadian tar-sands industry and, with it, the future well-being of the planet.  If that sounds overly dramatic, let me explain.

Sometimes, what starts out as a minor skirmish can wind up determining the outcome of a war — and that seems to be the case when it comes to the mounting battle over the Keystone XL pipeline. If given the go-ahead by President Obama, it will daily carry more than 700,000 barrels of tar-sands oil to those Gulf Coast refineries, providing a desperately needed boost to the Canadian energy industry. If Obama says no, the Canadians (and their American backers) will encounter possibly insuperable difficulties in exporting their heavy crude oil, discouraging further investment and putting the industry’s future in doubt.

Robert REich: Why We Need an Investment Budget

Part of the President’s State of the Union message and of his second term agenda apparently will focus on public investments in education, infrastructure, and basic R&D.

That’s good news. But how do we fund these investments when discretionary spending is being cut to the bone in order to reduce the budget deficit?

Answer: By treating public investments differently from current spending.

No rational family would borrow to pay for a vacation but not borrow to send a kid to college. No rational business would borrow to finance current salaries but not to pay for critical new machinery.

Yet that’s, in effect, what the federal government does now. The federal budget doesn’t distinguish between borrowing for current expenditures that keep things going, and future investments that build future productivity. All borrowing is treated the same.

Wendell Potter: Fixing Medicare: Start By Eliminating Drug Makers’ Sweetheart Deal, Not Benefits

It’s no surprise that American corporations spend billions of dollars each year on lobbying, trying to gain favorable treatment from legislators. What some may find a bit unnerving is the industry that’s leading the pack in these efforts.

You might think our nation’s defense and aerospace companies, which have legions of hired guns on Capitol Hill, are the leaders. Or perhaps Big Oil, which is perpetually fighting with environmentalists and consequently needs friends in Washington to block what it considers onerous legislation or regulations.

In both cases, you’d be wrong. It’s actually the pharmaceutical industry that spends the most each year to influence our lawmakers, forking over a total of $2.6 billion on lobbying activities from 1998 through 2012, according to OpenSecrets.org. To get some perspective on just how big that number is, consider that oil and gas companies and their trade associations spent $1.4 billion lobbying Congress over the same time frame while the defense and aerospace industry spent $662 million, a fourth of Big Pharma’s total.

The Geithner Doctrine

The former special inspector-general of the troubled asset relief program (TARP), Neil Barofsky says that it is time for a “post mortem” analysis former Treasury Secretary Timothy Geithner’s doctrine, the preservation of large banks, the largesse of Wall St. and the perversion of of the US criminal justice system. In this article posted at naked capitalism, Mr. Barofsky looks at the effect of the “Geithner Doctrine” and the weak response to the LIBOR scandal:

The recent parade of banking scandals, such as the manipulation of Libor rates by Barclays, Royal Bank of Scotland and other major banks, can be traced back to the lax system of regulation before the financial crisis – and the weak response once disaster struck.

Take the response of the New York Federal Reserve to Barclays’ admission in 2008 that it was submitting false Libor rates and was not alone in doing so. Mr Geithner’s response was to in effect bury the tip. He sent a memo to the Bank of England suggesting some changes to the rate-setting process and then convened a meeting of regulators where he reportedly described only the risk but not the actual manipulation of the rate. He then put the government imprimatur on the rate via bailout programmes. His inaction helped permit a global crime to continue for another year.

When it was UBS’s turn to settle its Libor charges, even though a significant amount of the illegal activity took place at the parent company level, only a Japanese subsidiary was required to take a plea. Eric Holder, US attorney-general, demonstrated his embrace of the Geithner doctrine (a phrase coined by blogger Yves Smith) in explaining the UBS decision. He said that a more aggressive stance against the parent company could have a negative “impact on the stability of the financial markets around the world”.

This week we saw the latest instalment of the saga. In fining RBS £390m, the DoJ only indicted one of the bank’s Asian subsidiaries, avoiding the more damaging result that would have stemmed from charging the parent company.

Instead of seeking deterrence and justice, the US government increasingly appears to have fully absorbed the Geithner doctrine into its charging decisions by seeking a result that has a minimal impact on the target bank but will generate the best-looking press release. Some banks today are still too big to fail – and they are still too big to jail.

There are no meaningful consequences for this criminality. The fines with a promise not to do this again are just a game to allow the banks to continue the fraudulent conduct and find better ways to cover it up. Mr. Barofsky concludes that we must ditch the “Geithner Doctrine” to end “the game of incentives gone wild, and the lack of accountability in the aftermath of the crisis has only reinforced those bad incentives.”

o reclaim our system of justice, the global threat posed by the failure of any of our largest financial institutions must be neutralised once and for all. They must be reduced in size, their safety nets must be dramatically constricted and their capital requirements enhanced far beyond the current standards. Then, and only then, can the same set of rules apply to all.

In an extended interview with The Daily Show host Jon Stewart, Mr. Barofsky discussed the double standards of the TARP program and the alien culture of Washington DC and explains why the banks will never face true justice..

Punting the Pundits

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

Follow us on Twitter @StarsHollowGzt

Paul Krugman: The Ignorance Caucus

Last week Eric Cantor, the House majority leader, gave what his office told us would be a major policy speech. And we should be grateful for the heads-up about the speech’s majorness. Otherwise, a read of the speech might have suggested that he was offering nothing more than a meager, warmed-over selection of stale ideas.

To be sure, Mr. Cantor tried to sound interested in serious policy discussion. But he didn’t succeed – and that was no accident. For these days his party dislikes the whole idea of applying critical thinking and evidence to policy questions. And no, that’s not a caricature: Last year the Texas G.O.P. explicitly condemned efforts to teach “critical thinking skills,” because, it said, such efforts “have the purpose of challenging the student’s fixed beliefs and undermining parental authority.”

And such is the influence of what we might call the ignorance caucus that even when giving a speech intended to demonstrate his openness to new ideas, Mr. Cantor felt obliged to give that caucus a shout-out, calling for a complete end to federal funding of social science research. Because it’s surely a waste of money seeking to understand the society we’re trying to change.

The New York Times Editorial: Quietly Killing a Consumer Watchdog

The consumer bureau has taken seriously its mandate to protect the public from the kinds of abuses that helped lead to the 2009 recession, and it has not been intimidated by the financial industry’s army of lobbyists. That’s what worries Republicans. They can’t prevent the bureau from regulating their financial supporters. Having failed to block the creation of the bureau in the 2010 Dodd-Frank financial reform bill, they are now trying to take away its power by filibuster, and they may well succeed.

The bureau cannot operate without a director. Under the Dodd-Frank law, most of its regulatory powers – particularly its authority over nonbanks like finance companies, debt collectors, payday lenders and credit agencies – can be exercised only by a director. Knowing that, Republicans used a filibuster to prevent President Obama’s nominee for director, Richard Cordray, from reaching a vote in 2011. Mr. Obama then gave Mr. Cordray a recess appointment, but a federal appeals court recently ruled in another case that the Senate was not in recess at that time because Republicans had arranged for sham sessions.

Noah Feldman: Obama’s Drone Attack on Your Due Process

The biggest problem with the recently disclosed Obama administration white paper (pdf) defending the drone killing of radical clerk Anwar al-Awlaki isn’t its secrecy or its creative redefinition of the words “imminent threat.” It is the revolutionary and shocking transformation of the meaning of due process.

Fortunately, as seen during John Brennan’s confirmation hearing for Central Intelligence Agency director, Congress is starting to notice]. [..]

The Obama administration’s apparent belief that due process can be satisfied in secret internal inside the executive branch is arguably a greater departure from precedent. It is a travesty of the very notion of due process. And to borrow a phrase from Justice Robert Jackson, it will now lie about like a loaded weapon ready for the hand of any administration that needs it.

Sen. Bernie Sanders: A Choice For Corporate America: Are You With America Or The Cayman Islands

When the greed, recklessness, and illegal behavior on Wall Street drove this country into the deepest recession since the 1930s, the largest financial institutions in the United States took every advantage of being American. They just loved their country – and the willingness of the American people to provide them with the largest bailout in world history. In 2008, Congress approved a $700 billion gift to Wall Street. Another $16 trillion in virtually zero interest loans and other financial assistance came from the Federal Reserve. America. What a great country.

But just two years later, as soon as these giant financial institutions started making record-breaking profits again, they suddenly lost their love for their native country. At a time when the nation was suffering from a huge deficit, largely created by the recession that Wall Street caused, the major financial institutions did everything they could to avoid paying American taxes by establishing shell corporations in the Cayman Islands and other tax havens.

Robert Kuttner: The Sorry State of Our Union

President Obama delivers his fifth State of the Union Address on Tuesday. Based on White House leaks, the president will emphasize rebuilding the middle class. He will invoke the importance of education, infrastructure, clean energy, and manufacturing.

These are terrific themes, economically and politically. The only problem is that rebuilding the middle class by the public investments that the society needs is out of the question — because of the downward drag of a budget politics that the president shares.

The administration is officially committed to the idea that we need another $1.5 trillion in budget cuts over the next decade — a rate of fiscal contraction half again as large as this year’s Sequester, and for 10 full years.

Robert Reich: Coming Tuesday (Hopefully): The State of the Union’s Economy

If you’re sitting in the well of the House when a president gives a State of the Union address (as I’ve had the privilege of doing five times), the hardest part is on the knees. You’re required to stand and applaud every applause line, which means, if you’re in the cabinet or an elected official of the president’s party, an extraordinary amount of standing and sitting.

But for a president himself, the State of the Union provides a unique opportunity to focus the entire nation’s attention on the central issue you want the nation to help you take action on.

President Obama has been focusing his (and therefore America’s) attention on immigration, guns, and the environment. All are important. But in my view none of these should be the central theme of his address Tuesday evening.

The Grand Discussion: Economic Recovery Part 2

After his exclusive interview with MSNBC’s Chris Hayes, host of Up with Chris Hayes, Nobel Prize winning economist and New York Times columnist/blogger, Dr. Paul Krugman (@NYTimeskrugman) joins Chris and his panel guests Dean Baker (@DeanBaker13), co-director Center for Economic & Policy Research and author; Alexis Goldstein (@alexisgoldstein), a former vice president of information technology at Merrill Lynch and Deutsche Bank, now an Occupy Wall Street activist; and Heather McGhee (@hmcghee), vice-president of Demos. Enjoy the lively and informed discussion about the self imposed sequester crisis, global austerity and the role of inequality in the recovery.

Load more