Tag: TMC Politics

Jan 26 2013

A Half Billion Dollar Tax Gift to BioTech Company

Unbeknownst to most of the legislators and public, tucked very neatly in section 632 (pdf) of the “fiscal cliff” bill, was provision that gave the world’s largest biotechnology firm, Amgen, a drug maker that sells a variety of medications, a half billion dollar gift that allows the company to evade Medicare cost-cutting controls by delaying price restraints on a class of drugs used by kidney dialysis patients for two years. Meanwhile in December, Amgen had been fined  $762 million in civil and criminal penalties for illegal marketing of one of its other drugs. This pricing break would wipe out two thirds of those fines.

This undercover handout of taxpayer’s dollars during a so-called “fiscal crisis” was reported in depth by The New York Times investigative reporters, Eric Lipton and Kevin Sack, who also revealed the “architects” of this giveaway, Republican Minority Leader Mitch McConnell, Democratic Senator Max Baucus, chair of the Senate Finance Committee, and that committee’s ranking Republican, Orrin Hatch.

Amgen has deep financial and political ties to lawmakers like Senate Minority Leader Mitch McConnell, Republican of Kentucky, and Senators Max Baucus, Democrat of Montana, and Orrin G. Hatch, Republican of Utah, who hold heavy sway over Medicare payment policy as the leaders of the Finance Committee.

It also has worked hard to build close ties with the Obama administration, with its lobbyists showing up more than a dozen times since 2009 on logs of visits to the White House, although a company official said Saturday that it had not appealed to the administration during the debate over the fiscal legislation.

The measure flies in the face of attempts to curb the enormous expense of dialysis for the Medicare program by reversing incentives to over-prescribe medication. But that didn’t deter the “three amigos” from sneaking in the provision to their generous benefactor:

Amgen’s employees and political action committee have distributed nearly $5 million in contributions to political candidates and committees since 2007, including $67,750 to Mr. Baucus, the Finance Committee chairman, and $59,000 to Mr. Hatch, the committee’s ranking Republican. They gave an additional $73,000 to Mr. McConnell, some of it at a fund-raising event for him that it helped sponsor in December while the debate over the fiscal legislation was under way. More than $141,000 has also gone from Amgen employees to President Obama’s campaigns.

What distinguishes the company’s efforts in Washington is the diversity and intensity of its public policy campaigns. Amgen and its foundation have directed hundreds of thousands of dollars in charitable contributions to influential groups like the Congressional Black Caucus and to lesser-known groups like the Utah Families Foundation, which was founded by Mr. Hatch and brings the senator positive coverage in his state’s news media.

Amgen has sent large donations to Glacier PAC, sponsored by Mr. Baucus in Montana, and OrrinPAC, a political action committee controlled by Mr. Hatch in Utah.

Not surprisingly when the news of this giveaway hit the paper, it enraged a bipartisan group of legislators to repeal this section.

U.S. Rep. Peter Welch (D-Vt.) filed legislation this week to eliminate the exemption for a class of drugs, including Amgen’s Sensipar, that are used by kidney dialysis patients. [..]

“Amgen managed to get a $500-million paragraph in the fiscal-cliff bill and virtually no one in Congress was aware of it,” Welch said. “It’s a taxpayer ripoff and comes at a really bad time when we’re trying to control healthcare costs. Amgen should not be allowed to turn Medicare into a profit center.” [..]

Other co-sponsors of the bill seeking repeal include House Republican Richard Hanna of New York and two House Democrats, Jim Cooper of Tennessee and Bruce Braley of Iowa.

Rep. Welch sat down with Bill Moyers on Moyers & Company to discuss Amgen’s “sweetheart deal”



The transcript can be read here

“When there is this back room dealing that comes at enormous expense to taxpayers and enormous benefit to a private, well-connected, for-profit company, we’ve got to call it out,” Welch tells Bill. “Those members of Congress who are concerned about the institution, about our lack of credibility, about the necessity of us doing things that are in the public good as opposed to private gain, we’ve got to call it out.”

Jan 25 2013

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: Deficit Hawks Down

President Obama’s second Inaugural Address offered a lot for progressives to like. There was the spirited defense of gay rights; there was the equally spirited defense of the role of government, and, in particular, of the safety net provided by Medicare, Medicaid and Social Security. But arguably the most encouraging thing of all was what he didn’t say: He barely mentioned the budget deficit. [..]

Mr. Obama’s clearly deliberate neglect of Washington’s favorite obsession was just the latest sign that the self-styled deficit hawks – better described as deficit scolds – are losing their hold over political discourse. And that’s a very good thing.

Why have the deficit scolds lost their grip? I’d suggest four interrelated reasons.

New York Times Editorial: Women in the Battlefield

The Pentagon’s decision to end its ban on women in combat is a triumph for equality and common sense. By opening infantry, artillery and other battlefield jobs to all qualified service members regardless of sex, the military is showing that categorical discrimination has no place in a society that honors fairness and equal opportunity.

Defense Secretary Leon Panetta, who overturned the ban this week, and the Joint Chiefs of Staff, who unanimously urged him to do it, deserve praise for bringing military policy in line with reality. Women have been in the thick of combat in Iraq and Afghanistan for more than a decade. More than 280,000 have been deployed there, thousands have been injured and more than 150 killed. With the rule abolished, such service and sacrifice will no longer be unofficial and unrecognized.

Joseph A. Palermo: Flaccid Filibuster Reform Throws a Wet Blanket on ‘Audacity’

Senate Majority Leader Harry Reid talked a big game about taking apart the filibuster leading up to his Grand Bargain with Republican leader Mitch McConnell. The Kentucky senator now promises to play nice. But like Lucy holding the football for Charlie Brown, he has once again snookered the hapless Majority Leader. Reid has rewarded McConnell for his years of obstructionism and hyper-partisanship. The whole charade wouldn’t matter much if the fate of the United States and the world didn’t depend to a large degree on the decisions of these 100 politicians.

Reid’s handshake deal with McConnell means there’ll be no “talking filibuster” like in Mr. Smith Goes to Washington, and he also caved on the idea of requiring a 41-vote threshold to filibuster. Senators can still saunter over to the floor followed by a text message from a staffer and tie up any piece of legislation that doesn’t meet their fancy. And without a formal vote on altering the filibuster, we don’t even know all of the Democratic senators who sided with McConnell and the Republicans to hold them accountable. [..]

The Democrats should try something new: Stand up for what you believe in, have a public fight about it, and then if you lose you still look like you have principles and a backbone. Reid’s filibuster deal with McConnell makes the Democrats look like they have neither principles nor backbone.

John Nichols: Why Do ‘Pro-Life’ Pols Like Paul Ryan Protect Weapons of Mass Murder?

Congressman Paul Ryan consistently-make that aggressively-identifies himself as “pro-life.”

If the Catholic congressman’s definition of the term is narrowly limited to the debate about reproductive rights, perhaps Ryan can convince himself that his use of the term is appropriate.

But leading American Catholics are telling Ryan and other politicians that they can’t get away with claiming to be “pro-life” and “pro-NRA.” Theologians, priests and nuns are challenging the House Budget Committee chairman and 2012 Republican vice presidential nominee-who often suggests that his ideas and positions are influenced by Catholic teaching on social and economic issues-and other elected Catholics who trumpet their “pro-life” positions to think more seriously about the meaning of the term.

George Zornick: There Was No Reason to Surrender on Filibuster Reform

There’s a lot of unconvincing spin coming from the Senate Democrats who brokered an awful “filibuster reform” deal with Senate Minority Leader Mitch McConnell Thursday morning. Chief among them is the argument that this is any kind of actual reform-it isn’t. [..]

Simply put, the most radical ideas put forth by Republicans, and thus those most deserving of the filibuster, are likely to be wildly unpopular. They can be defeated without it. And in the event of a crisis, Democrats would still have the talking filibuster.

An even broader point-and the most important one-is that the Senate was simply not designed to work under a sixty-vote threshold. It’s not what the framers intended. The Senate is considered the more deliberative body because members have six-year terms and generally bigger constituencies, not because they are supposed to pass everything with a supermajority. If Reid truly respects the institution, he should have considered restoring it to its original form.

Alex Pareene: Virginia GOP jumps on the deform-the-electoral vote bandwagon

Republicans know America doesn’t support them, so now they’re looking to count less of America

Electoral vote-rigging plans show a Republican Party that is finally acknowledging the reality that a majority of Americans don’t subscribe to its brand of conservatism. Virginia was a “red state” for the entirety of the post-Civil Rights Act era, and this move shows that the GOP has effectively given up on winning it for the foreseeable future. It’s a stunning admission of irrelevance. [..]

Now we see what the Republican Party does when it can’t ignore the evidence that most Americans aren’t Republicans: Instead of changing anything at all about their beliefs to bring themselves closer to the mainstream, they are all brainstorming increasingly bizarre ways of winning elections without receiving more support from citizens.

Jan 25 2013

Transaction Tax: Three Cents on the Trade

While we have been distracted by the irrational exuberance of a second term for Barack Obama, Benghazi (again) and gun control, the European Union has come around to the realization that there is a need to do something about the economy. On Tuesday the the EU approved a financial transaction tax (FTT) for eleven nations:

Eleven countries won the EU’s backing for a financial transaction tax (FTT), with Germany, France, Italy and Spain adding their names to eurozone neighbours Austria, Portugal, Belgium, Estonia, Greece, Slovakia and Slovenia.

The UK, which already imposes a tax on share trades, could benefit from a shift in banking business if Germany and France tax foreign exchange or derivatives trading in Frankfurt and Paris.

The levy, which could raise as much as €35bn (£29.3bn) a year for the 11 countries, is designed to prevent a repeat of the conditions that stoked the credit crunch by reining in investment banks. Following the decision, the European Commission will put forward a new proposal for the tax, which if agreed on by those states involved, would mean the levy could be introduced within months. Although critics say such a tax cannot work properly unless applied worldwide or at least across Europe, countries such as France are already banking on the extra income from next year.

Former Labor Secretary Robert Reich tweeted:

Despite past unsuccessful attempts to introduce a FTT, two Democratic representatives, Rep. Peter DeFazio (D-OR) and Sen. Tom Harkin (D-IA), will reintroduce the FTT which would raise an estimated $352 billion over the next decade by imposing a 0.03 percent tax on trades. That translates to 3 dollars on every $100 in trades. Critics have said that it will have a detrimental effect on economic growth, one of the bill’s sponsors have stated that has already been proven to be false:

“For 50 years we had a tax that was about seven times larger than this when the country was seeing the greatest growth in its history, post-World War II,” he said. “So we’ve proven this will not have a detrimental impact on growth. In fact, it perhaps is beneficial to growth. It’s not necessarily beneficial to salaries of hedge fund managers on Wall Street.”

Complaints that an FTT would encourage businesses to move elsewhere are countered by the facts that 52 financial executives, including several former heads of mega-banks JP Morgan and Goldman Sachs, endorsed the idea and forty countries around the world have already embraced a transactions tax.

Journalist Economist and author David Cay Johnston joined Ed Schultz on the The Ed Show what the FTT would mean for the American economy.

With the capitulation on filibuster reform and the feral children still running the asylum, there is little chance that something this sensible will even get out of committee. That is a very sad state of affairs for this country.

Correction: We received a very kind e-mail from Pulitzer Prize winning journalist David Cay Johnston noting that he is not an economist. He is a renowned investigative journalist who has written about economics and the US tax system.

Jan 24 2013

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

Gail Collins: Arms and the Women

Women in the military are going to get to serve in combat. They killed the Equal Rights Amendment to keep this from happening, but, yet, here we are. And about time. [..]

Women now make up almost 15 percent of the American military and their willingness to serve made the switch to an all-volunteer Army possible. They’ve taken their posts with such seamless calm that the country barely noticed. The specter that opponents of the E.R.A. deemed unthinkable – our sisters and daughters dying under fire in foreign lands – has happened over and over and over. More than 130 women have died and more than 800 have been wounded in Iraq and Afghanistan. The House of Representatives includes a female double-amputee in the person of the newly elected Tammy Duckworth of Illinois, a former military pilot who lost both her legs when her helicopter was shot down in Iraq.

We’ve come a long, sometimes tragic, heroic way.

Josh Barro: Did Republicans Create a Budget Monster?

After much bluster about the debt limit, Republicans are offering an extension until May at a small price: Both houses must pass a budget resolution, which the Democratic-controlled Senate has not done for several years. Republicans are excited to force Senate Democrats on the record with a budget plan that will surely show years of red ink to come. But before they celebrate, they should think for a second about how politically ugly this year’s House budget is sure to be. [..]

Republicans think forcing Democrats to pass a budget that is laden with spending and deficits will be to their political advantage. But the reason large deficits persist is that the things you can do to shrink deficits tend to be even less popular than deficits themselves — especially if you insist on a deficit-reducing plan that also cuts taxes on the wealthy.

So, if you want to see the most politically explosive budget that passes a house of Congress this April, don’t look to the Senate. Look to the House.

Richard (RJ) Eskow: David Brooks Is Shocked When Tribes Let Sick People Die. He Also Wants to Cut Medicare.

In his review of Jared Diamond’s new book, David Brooks is appropriately horrified by the stories of tribal women who were left to die rather than be cared for by their communities. He’s so horrified, in fact, that he seems to reject Diamond’s core thesis that these tribespeople have something to teach us about ourselves. [..]

When he was done writing that review Brooks went back to one of his primary preoccupations, which is pushing for Medicare cuts. [..]

In column after column, Brooks has insisted that our national spending on Medicare is unsustainable. He defended the Romney/Ryan voucher plan, which would place arbitrary limits on how much would be spent to provide health care for our elderly (but not on how much profit could be made from their treatment). He also misrepresented the plan to make its case, which wasn’t very civil of him.

Dean Baker: Four More Years of ‘It Could Have Been Worse’

There have been two momentous events in the last week. Of course President Obama’s swearing in for a second term is a big deal, even if somewhat less historic than his inauguration back in 2009. The other big event was the release of the Federal Reserve Board’s transcripts from the 2007 meetings of the Fed’s Open Market Committee (FOMC). [..]

Alan Greenspan, Ben Bernanke (he was governor during most of the run-up), and the rest also seemed oblivious to the extent to which the housing market was driving the economy. There was little appreciation of the fact that an unsustainable building boom and surge in consumption driven by ephemeral housing wealth were the major factors driving the economy in the years 2002-2007.

The 2007 transcripts show that this crew was still oblivious even as the economy was beginning to collapse all around them. This is the captain and crew of the Titanic planning their stay in New York after the ship had already hit the iceberg.

John Nichols: GOP Version2013: Battling Not Just Democrats but Democracy

On a day when most Americans were focused on the stirring second inaugural address of President Barack Obama – and on the broader majesty of the transference of an election result into a governing mandate – Republican state senators in Virginia hatched an elaborate scheme to rig the electoral system against democracy.

Prevented by an even 20-20 divide in the chamber from gerrymandering Senate districts to favor one party or the other, the Republicans knew that their only opening to draw lines that favored their candidates in this fall’s off-year elections would be if at least one Democrat were missing. Inauguration Day gave them an opening, as an African-American senator, a veteran of the civil rights movement, was in Washington to recognize the beginning of the new term of the nation’s first African-American president. [..]

After doing the dirty deed, the Republican senators adjourned their Rev. Martin Luther King Day session not in honor of the civil rights icon but “in memory of General Thomas J. ‘Stonewall’ Jackson.”

Welcome to GOP Version2013.

E.J. Dionne, Jr.: Reagan Is Obama’s Touchstone

To understand how Barack Obama sees himself and his presidency, don’t look to Franklin Roosevelt or Abraham Lincoln. Obama’s role model is Ronald Reagan-and that is just what Obama told us before he was first elected.

Like Reagan, Obama hopes to usher in a long-term electoral realignment-in Obama’s case toward the moderate left, thereby reversing the 40th president’s political legacy. The Reagan metaphor helps explain the tone of Obama’s inaugural address, built not on a contrived call to an impossible bipartisanship but on a philosophical argument for a progressive vision of the country rooted in our history. Reagan used his first inaugural to make an unabashed case for conservatism. Conservatives who loved that Reagan speech are now criticizing Obama for emulating their hero and his bold defense of first principles.

Jan 23 2013

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

Katrina vanden Heuvel: Cuomo’s Clean Elections Choice

One of the last results from Election Day 2012 is also one of the sweetest. Running in a district gerrymandered by Republicans, grassroots candidate Cecilia Tkaczyk scored a stunning upset over millionaire Assemblyman George Amedore in a New York State Senate race. Even better, Tkaczyk-and the grassroots army that powered her to victory-did it by making campaign finance reform the signature issue in the race. Tkaczyk’s victory, achieved by a nineteen-vote margin following a recount that ended Friday, is a shot in the arm for progressives. It’s also a test for New York Governor Andrew Cuomo, who’s counting on progressive votes in 2016. [..]

Over the past few months, Andrew Cuomo had the opportunity to help secure Democratic control of the state senate. But he passed, neither endorsing Democrats against Tea Partying opponents, nor lifting a finger when senators who were elected as Democrats moved to erect an alternative majority coalition with the Republicans (a result that’s neither Democratic nor small-“d” democratic).

Kara Dansky: Obama Must Tackle Criminal Justice Reform in His Second Term

President Obama is the first sitting president in recent history to speak out against criminal justice policies that hurt inner city and rural communities. This is a big deal.

With state budgets and vulnerable communities crippled by misguided criminal justice policies, the president is certainly right that the time for reform has come.

The myriad ways in which our criminal justice system is unwieldy, expensive, and damaging to vulnerable populations can be traced to one glaring issue: the U.S. has the world’s highest incarceration rate. With many of these people serving time for low-level, non-violent offenses, there is simply no justification for keeping such a large segment of our population behind bars. And of course most people affected by this national embarrassment are poor people and people of color.

Sarah van Gelder: Obama Inaugurates Renewed Energy on Climate Change

That the president put climate change so high on his second-term agenda surprised many. But action must follow words

President Barack Obama included a call to action on climate change in his inaugural speech on 21 January, surprising those who believed gun violence and immigration reform would take top billing. It’s not the first time he’s talked about the issue, by any means, but few thought he would return to it with such emphasis now.

During his 2008 campaign, he spoke of working for the moment when the rise of the oceans would begin to slow and our planet would begin to heal. During the 2012 election campaign, he was mocked for that statement.

But no one was laughing this fall when waves swept over lower Manhattan and towns up and down the eastern seaboard; nor this summer when much of the US midwest suffered from drought and brave firefighters battled unprecedented fires across the west. Obama spoke in Monday’s inaugural address of our responsibility to “preserve our planet”, recognizing that “the failure to do so would betray our children and future generations”.

Vandana Shiva: Our Violent Economy is Hurting Women

There is a connection between the growth of unjust economic policies and the intensification of crimes against women.

Violence against women is as old as patriarchy.

Traditional patriarchy has structured our worldviews and mindsets, our social and cultural worlds, on the basis of domination over women and the denial of their full humanity and right to equality. But it has intensified and become more pervasive in the recent past. It has taken on more brutal forms, like the murder of the Delhi gang rape victim and the recent suicide of a 17-year-old rape victim in Chandigarh.

In India, rape cases and cases of violence against women have increased over the years. The National Crime Records Bureau (NCRB) reported 10,068 rape cases in 1990, which increased to 16496 in 2000. With 24,206 cases in 2011, rape cases jumped to incredible increase of 873 percent from 1971 when NCRB started to record cases of rape. And Delhi has emerged as the rape capital  of India, accounting for 25 percent of cases.

Kaitlin Sopoci-Belknap : Move to Amend: Citizens United is Just the Tip of the Iceberg

It’s been three years since the Supreme Court issued its outrageous decision in Citizens United vs. FEC, overturning the flimsy campaign finance protections afforded under McCain-Feingold law. The case opened the floodgates to billions of dollars perverting our elections, much of it completely unreported, and some amount even coming from foreign corporations and governments. The Court literally legalized bribery, and wealthy individuals and special interests took full advantage of it.

As shameful as that decision is, we must confront the sobering reality that it is only the tip of the iceberg. A small ruling elite (often succinctly described as the 1%) have stolen control of the country, and they are ruling over us. They use the façade of elections to legitimize the theft. And even when decent legislation is enacted, they use the Courts to overturn those laws. Citizens United vs. FEC is merely a deepening of the crisis of corporate rule.

Betsy Reed: What Obama’s Inaugural Address Got Wrong About Poverty

Liberals seeking affirmation for their faith in President Obama believed they found it in his second Inaugural Address, with his passionate invocation of Stonewall and Seneca Falls, his soaring rhetoric about government “of, by and for the people” and an American creed forged “through blood drawn by lash, and blood drawn by sword.”]

But amidst the warm words for equality and collective action, one sentence stood out:

“We are true to our creed when a little girl born into the bleakest poverty knows that she has the same chance to succeed as anybody else because she is an American, she is free, and she is equal not just in the eyes of God but also in our own.”

However much we might like to imagine otherwise, a little girl born into the bleakest poverty will never have “the same chance to succeed as anybody else.” If you take a step back, could anything be more obvious? And yet this notion is so thoroughly woven into the “American creed” that we barely notice how misleading it is.

Jan 23 2013

The “Untouchable ” Banks (Up Date)

“Too big to fail” now according to the Justice Department, “too big to jail.” The PBS news series, Frontline “investigates why Wall Street’s leaders have escaped prosecution for any fraud related to the sale of bad mortgages” in its presentation of “The Untouchables.”

Transcript can be read here

Phil Angelides: Enforcement of Wall St. is “Woefully Broken”

Phil Angelides was chairman of the Financial Crisis Inquiry Commission, which was created by Congress in 2009 to investigate the causes of the crisis. In its report, submitted in January 2011, the commission concluded that the crisis was avoidable, a result of excessive risk taking, failures of regulation and poorly prepared government leaders. This is the edited transcript of an interview conducted on Oct. 11, 2012.

Lanny Breuer: Financial Fraud Has Not Gone Unpunished

Lanny Breuer serves as assistant attorney general for the Department of Justice’s Criminal Division. He told FRONTLINE that when fraud from the financial crisis has been detected, the Department of Justice has pursued charges. “But when we cannot prove beyond a reasonable doubt that there was criminal intent, then we have a constitutional duty not to bring those cases,” Breuer said. This is the edited transcript of an interview conducted on Nov. 30, 2012.

Too Big To Jail? The Top 10 Civil Cases Against the Banks

by Jason M. Breslow

The Justice Department’s initial response to the financial crisis did not take long to materialize. In June 2008, three months before the Lehman Brothers collapse, the department brought its first criminal case, charging two former Bear Stearns executives with securities fraud for their alleged roles inflating the housing bubble.

A little more than a year later, a jury found the executives not guilty, dealing the DOJ an early setback. Since then, government investigations into the crisis have almost exclusively centered on civil charges, which requires prosecutors establish guilt beyond a preponderance of the evidence. The bar is higher in criminal cases, requiring they prove guilt beyond a reasonable doubt.

Here are 10 of the most prominent of those cases to date. In nearly all, the government won multi-million dollar settlements, but the companies and officials involved were not required to admit wrongdoing.

Secrets and Lies of the Bailout

by Matt Taibbi

The federal rescue of Wall Street didn’t fix the economy – it created a permanent bailout state based on a Ponzi-like confidence scheme. And the worst may be yet to come

It has been four long winters since the federal government, in the hulking, shaven-skulled, Alien Nation-esque form of then-Treasury Secretary Hank Paulson, committed $700 billion in taxpayer money to rescue Wall Street from its own chicanery and greed. To listen to the bankers and their allies in Washington tell it, you’d think the bailout was the best thing to hit the American economy since the invention of the assembly line. Not only did it prevent another Great Depression, we’ve been told, but the money has all been paid back, and the government even made a profit. No harm, no foul – right?

Wrong.

It was all a lie – one of the biggest and most elaborate falsehoods ever sold to the American people. We were told that the taxpayer was stepping in – only temporarily, mind you – to prop up the economy and save the world from financial catastrophe. What we actually ended up doing was the exact opposite: committing American taxpayers to permanent, blind support of an ungovernable, unregulatable, hyperconcentrated new financial system that exacerbates the greed and inequality that caused the crash, and forces Wall Street banks like Goldman Sachs and Citigroup to increase risk rather than reduce it. The result is one of those deals where one wrong decision early on blossoms into a lush nightmare of unintended consequences. We thought we were just letting a friend crash at the house for a few days; we ended up with a family of hillbillies who moved in forever, sleeping nine to a bed and building a meth lab on the front lawn.

Up Date: After his appearance on “Frontline”, Yves Smith at naked capitalism delightedly announced the news that Lanny Breuer, former Covington & Burling partner and more recently head of the criminal division at the Department of Justice, had his resignation leaked today.

Never mind resign, why hasn’t Obama fired him?

Jan 23 2013

VA GOP Rigging Elections To Win

During Monday’s Inauguration coverage, MSNBC commentator and host Chris Matthews remarked about the slipping popularity of the Republican Party and how in order to win they will have to rig the elections in order to win in the future.

“If states like Pennsylvania ever get controlled by Republican legislators, that is frightening,” [..]

“There’s so much willingness to rig the elections by the Republicans,” Matthews continued. “They know they’re heading into demographic trouble. They know they’re going to be a minority in this country. It’s almost like Lebanon – we’ve got to fake the census now, y’know?”

He concluded: “And what I see them doing is saying, ‘Okay, we know we’re never going to be popular again, so we’re going to have to rig it.”

Apparently, Mr. Matthews was unaware of what the Republicans in the Virginia legislature were up to.

Virginia Senate Sneaks Through Gerrymandering Bill While Country Watches Inauguration

by Annie-Rose Strasser, Think Progress

While the eyes of the nation were turned toward President Barack Obama’s second inauguration on Monday, the Virginia State Senate managed to hurriedly pass a bill that would redistrict the state’s senate seats.

The vote, 20-19, would have been a tie had Democratic Senator Henry Marsh been present. Marsh, a civil rights leader, was in Washington, D.C., attending the inauguration.

Had Marsh been present, however, the state’s Lieutenant Governor, Bill Bolling, would likely have broken the tie. The bill was reportedly pushed through in a matter of hours. [..]

The gerrymandering bill now goes to the heavily Republican House of Delegates for a vote, where it will likely face little opposition.

Victim Of VA State Sen. GOP ‘Dirty Trick’ Calls Move ‘Shameful’

by Evan McMorris-Santoro, Talking Points Memo

“I wanted to attend the historic second inauguration of President Obama in person,” Marsh said in a statement. “For Senate Republicans to use my absence to push through a partisan redistricting plan that hurts voters across the state is shameful.” [..]

Marsh said he was “outraged” and “saddened” by the state Senate GOP move. He said the bill was “unconstitutional,” a line being used by many Democrats in Virginia these days that could signal future legal action.

Gov. McDonnell Condemns Virginia Senate GOP Move As Bad Way To Do Business

by Evan McMorris-Santoro, Talking Points Memo

After first distancing himself from the new legislative lines the Virginia Senate GOP forced through Monday, Gov. Bob McDonnell (R) condemned his party’s political gamesmanship Tuesday.

“I certainly don’t think that’s a good way to do business,” McDonnell told reporters in Richmond, according to the Fredericksburg Free Lance-Star. [..]

McDonnell has so far not said if he would veto the redistricting plan, which still must pass the state House. It is not clear if McDonnell has taken or will take other steps to undo the Senate GOP’s surprise move.

I wouldn’t put any money on Gov. McDonnell vetoing that bill, as Laura Conaway at The Maddow Blog  notes, the governor would like everyone to just stop talking about the  sneak redistricting now

When I asked McDonnell’s office just now whether he would sign or veto the bill, which still needs approval from the House, they sent over a recording (mp3) of the governor fielding that question today with local reporters. The verbate:

   REPORTER: Is it time yet to tell these guys, “If it comes to me, I’m going to veto it”?

   MCDONNELL: Well, listen, my focus this year is on education, transportation, and budget and government reform. That’s what I had asked this session to be about. Obviously, the tactics that were used yesterday was a surprise, and I don’t think that’s the way that business should be done. But I haven’t looked at the bill. I’m not happy about the things that have happened. Look, some people said they were against my transportation bill long before yesterday, so this has got a long way to go. I don’t know whether I’m going to get a bill or not. But I’m going to wait and see at this point what happens. I have not looked at the bill. At this point, though, I want people to focus on the things that are important. What I said the session should be about is education, transportation — not redistricting and other things. That’s my focus.

The short answer, so far, is no answer yet. McDonnell could try to keep the House from passing the bill and sending it to him. A year ago, he found himself in much the same position, trying to get the legislature off the ledge — and off the front pages — with that forced ultrasound bill. He ended up signing that one.

The bill would create a Republican super majority in both houses, so that even if a Democrat is elected governor, s/he’ll be unable to pass an agenda. Gov. McDonnell will sign this it.

Jan 22 2013

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

Today is the 40th anniversary of Roe v Wade.

Kate Manning: Leeches, Lye and Spanish Fly

Women’s historical willingness to endure horrible dangers, to submit to extreme and prolonged pain, to risk grave injury and death rather than remain pregnant, tells us something important about female desperation and determination, and the price women were – and still are – willing to pay to control their own bodies. What it tells us is that women will always find ways to end an unwanted pregnancy, no matter what the law says, no matter the risks to themselves.

If the Supreme Court were ever to overturn Roe v. Wade, or if anti-abortion forces continue to successfully chisel away at a woman’s access to safe abortion, many women will still choose abortion – by their own hands. Leeches, lye and Spanish fly are still among the many tools available to the self-abortionist. So are knitting needles, with predictable, disastrous consequences. There is no law that will end the practice of abortion, only laws that can protect a woman’s right to choose it, or not, and to keep it the safe and private procedure still available to us in 2013, 40 years after the Supreme Court made it legal.

New York Times Editorial: A Chance to Fix the Senate

For six years, Democrats in the Senate have chafed at an unprecedented abuse of the filibuster by Republicans, who have used the practice to hold up nominees high and low and require a supermajority for virtually every bill. But now that they finally have an opportunity to end much of this delay and abuse, Democrats are instead considering only a few half-measures. [..]

With the support of 51 senators, the rules could be changed to require a “talking filibuster,” forcing those objecting to a bill to stand and explain their reasons, at length. The current practice of routinely requiring a 60-vote majority for a bill through a silent objection would end, breaking the logjam that has made the chamber a well of inefficiency and frustration.

Robert Kuttner: The State of Obama

President Obama has heartened progressives with many actions since his re-election. He seems to grasp that he has a lot more power to move public opinion than he used in his first term. He also understands that most of the Republican positions on the issues are unpopular with broad public, divisive within the Republican Party, and just plain bad policy.

So will he maximize his advantage? Or will the State of the Union be the occasion for more olive branches, more searching for common ground that doesn’t really exist.

American history shows that a leader does better being “president of all the people” by isolating a destructive opposition rather than splitting the difference with it. In his second inaugural, Lincoln famously and magnanimously declared, “With malice toward none and charity for all, let us bind up the nation’s wounds.” But first it was necessarily to defeat the South on the battlefield. The film, Lincoln, accurately underscored the reality that no compromise with the Confederacy was possible.

Paul Buchheit: The Extremist Cult of Capitalism

A ‘cult,’ according to Merriam-Webster, can be defined as “Great devotion to a person, idea, object, movement, or work..(and)..a usually small group of people characterized by such devotion.”

Capitalism has been defined by adherents and detractors: Milton Friedman said, “The problem of social organization is how to set up an arrangement under which greed will do the least harm, capitalism is that kind of a system.” John Maynard Keynes said, “Capitalism is the astounding belief that the most wickedest of men will do the most wickedest of things for the greatest good of everyone.” [..]

Capitalism is a cult. It is devoted to the ideals of privatization over the common good, profit over social needs, and control by a small group of people who defy the public’s will. The tenets of the cult lead to extremes rather than to compromise. Examples are not hard to find.

Glenn Greenwald: MLK’s Vehement Condemnations of US Militarism are More Relevant Than Ever

His vital April 4, 1967 speech is a direct repudiation of the sophistry now used to defend US violence and aggression

The civil right achievements of Martin Luther King are quite justly the focus of the annual birthday commemoration of his legacy. But it is remarkable, as I’ve noted before on this holiday, how completely his vehement anti-war advocacy is ignored when commemorating his life (just as his economic views are). By King’s own description, his work against US violence and militarism, not only in Vietnam but generally, was central – indispensable – to his worldview and activism, yet it has been almost completely erased from how he is remembered.

King argued for the centrality of his anti-militarism advocacy most eloquently on April 4, 1967, at Riverside Church in New York City – exactly one year before the day he was murdered. That extraordinary speech was devoted to answering his critics who had been complaining that his anti-war activism was distracting from his civil rights work (“Peace and civil rights don’t mix, they say. Aren’t you hurting the cause of your people, they ask?”). King, citing seven independent reasons, was adamant that ending US militarism and imperialism was not merely a moral imperative in its own right, but a prerequisite to achieving any meaningful reforms in American domestic life.

Rick Perlstein : Our Obama Bargain (Part 2 of 3)

Happy Re-inauguration Day. In a post last week, I wrote of the strangeness of our Obama, in his passion for bargaining with people who despise him, and his passion for envisioning deals that, even if struck, deliver nothing particularly good either in policy or political terms. The “bargain” becomes the end in itself, the holy grail. It certainly doesn’t establish trust with his bargaining partners. For instance, his unilateral pay freeze for federal workers announced after the 2010 “Tea Party” elections. That, of course, was meant to build his bona fides among Republicans as a fiscal conservative. How did that work out for you, BHO? [..]

Why is Barack Obama like this? Where does this anything-but-reality-based faith that lions can lay down with lambs come from? The curious thing is that you might have expected experiences of his formative years to have taught him the opposite lesson.

Robert Dreyfus: Obama’s Inaugural: A New Foreign Policy?

Let’s allow ourselves to hope, or imagine, for a moment that Barack Obama’s second inaugural address opens the door to a new American foreign policy.

Certainly, his speech was not a foreign policy address, skimming lightly over the top of where he intends to lead the country. But in two crucial paragraphs, there was no saber rattling, and his praises of our troops and their courage, and of America’s battle against “fascism and communism,” seemed, to me at least, perfunctory. Instead, he spoke of peace, and he stressed that “enduring security and lasting peace do not require perpetual war.” That, at the very least, is a slap in the face to George W. Bush and the neoconservatives, whose “Global War on Terror” was precisely “perpetual.”

And in a line that could be read as a signal to current adversaries, including Iran, Obama suggested that in the past, former enemies became “the surest of friends.”

Jan 21 2013

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 Big Deal

On the day President Obama signed the Affordable Care Act into law, an exuberant Vice President Biden famously pronounced the reform a “big something deal” – except that he didn’t use the word “something.” And he was right.

In fact, I’d suggest using this phrase to describe the Obama administration as a whole. F.D.R. had his New Deal; well, Mr. Obama has his Big Deal. He hasn’t delivered everything his supporters wanted, and at times the survival of his achievements seemed very much in doubt. But if progressives look at where we are as the second term begins, they’ll find grounds for a lot of (qualified) satisfaction.

Consider, in particular, three areas: health care, inequality and financial reform.

New York Times Editorial: A Choice for Republican Leaders

Ted Cruz, the newly elected Tea Party senator from Texas, embodies the rigidity the public grew to loathe in Congress’s last term. He is bursting with fervor to fight compromise and consensus-building in Washington wherever it is found. Unlike 85 percent of the Republicans in the Senate, he would have voted against the fiscal cliff deal. He says gun control is unconstitutional. Breaking even with conservative business leaders, he would have no qualms about [using the debt ceiling as a hostage v] because he believes (falsely) that it would produce only a partial government shutdown and not default.

Considering the damage that this kind of thinking did to the country and the Republican Party over the last two years – a downgraded credit rating, legislative standoffs, popular anger, a loss of Republican seats – it might seem obvious that the party should marginalize lawmakers like Mr. Cruz. Instead, they continue to gain power and support. Party leaders named Mr. Cruz vice chairman of the National Republican Senatorial Committee.

Glen Ford: Don’t You Dare Conflate MLK and Obama

Were Martin alive, he would skewer the putative leftists and their “lesser evil” rationales for backing the corporatist, warmongering Obama. As both a theologian and a “revolutionary democrat,” as Temple University’s Prof. Anthony Monteiro has described him, MLK had no problem calling evil by its name – and in explicate triplicate. His militant approach to non-violent direct action required him to confront the underlying contradictions of society through the methodical application of creative tension. He would make Wall Street scream, and attempt to render the nation ungovernable under the dictatorship of the Lords of Capital. And he would deliver a withering condemnation of the base corruption and self-serving that saturates the Black Misleadership Class.

He would spend his birthday preparing a massive, disruptive action at the Inauguration.

Robert Kuttner: The President’s Running Room-and Ours

With Republicans divided, the president could open up space to move progressive policies. First, the progressive community needs to move him.

President Barack Obama won a tactical victory on New Year’s weekend by forcing Republicans to raise taxes on the top 1 percent, but he has far bigger challenges to address-and so do progressives. The economy is still at risk of several more years of hidden depression, with a high level of unemployment and no wage growth. The initial budget deal, thanks to Obama’s post-election toughness on tax increases on the rich and pressure by unions and progressive organizations not to cut Social Security and Medicare, was better than it might have been. But still to come are debates over budget cuts, with Republicans having the leverage of an automatic $120 billion “sequester” for this fiscal year now postponed to early March, if Congress fails to legislate its own additional deficit reduction.

In principle, Obama has committed to $4 trillion in budget cuts over a decade, a sum that would be a huge drag on the recovery, leaving too little for the public investment necessary to create jobs and for the scale of infrastructure spending needed to mitigate future superstorms like Sandy. Since the election, the president has walked back some of his earlier commitment to spending cuts. But even as he forced major concessions out of the Republicans, he has continued to embrace deficit reductions as a necessary path to recovery, a strategy that makes no economic sense and that only whets the appetites of the right-wing anti-government crusade and its close ally, the corporate-sponsored Fix the Debt campaign.

So where is Obama’s running room to pursue a more far-reaching agenda? And where is the running room for progressives to move him?

John Nichols: This President Can-and Must-Claim a Mandate to Govern

With his second inauguration, Barack Obama will become the first president since Dwight Eisenhower to renew his tenure after having won more than 51 percent of the vote in two consecutive elections.

More importantly, in a political sense, he will be the first Democrat since Franklin Delano Roosevelt to have won mandates from the majority of the American people in two consecutive elections. [..]

Roosevelt’s genius was the linking of democracy and self-governance, the reminding of Americans that thru elections and government they have the master economic and political forces that would otherwise dominate them. After a 2012 election campaign that his Republican foes portrayed as a referendum on the role of government, Obama has a mandate to make government work again for the American people. His inaugural address should claim that mandate with all the passion and all the determination that FDR brought to the mission seventy-six years ago.

Ray McGovern: The Moral Torment of Leon Panetta

Leon Panetta returned to government in 2009 amid hopes he could cleanse the CIA where torture and politicized intelligence had brought the U.S. to new lows in world respect. Yet, after four years at CIA and Defense, it is Panetta who departs morally compromised

Defense Secretary Leon Panetta, a practicing Catholic, sought a blessing on Wednesday from Pope Benedict XVI. Afterward Panetta reported that the Pope said, “Thank you for helping to keep the world safe” to which Panetta replied, “Pray for me.”

In seeking those prayers, Panetta knows better than the Pope what moral compromises have surrounded him during his four years inside the Obama administration, as CIA director overseeing the covert war against al-Qaeda and as Defense Secretary deploying the largest military on earth.

For me and others who initially had high hopes for Panetta, his performance in both jobs has been a bitter disappointment. Before accepting the CIA post, Panetta had criticized the moral and constitutional violations in George W. Bush’s “war on terror,” especially the use of torture.

Jan 21 2013

Seriously, Bloomie, Dancing?

Back in July, 2012 while returning from  Jazz at Lincoln Center’s Midsummer Night’s Swing, Caroline Stern, 55, and her boyfriend George Hess, 54, were arrested, handcuffed and held by the New york City Police for dancing  the “Charleston” on the subway platform.

“We were doing the Charleston,” Stern said. That’s when two police officers approached and pulled a “Footloose.”

“They said, ‘What are you doing?’ and we said, ‘We’re dancing,’ ” she recalled. “And they said, ‘You can’t do that on the platform.’ ”

The cops asked for ID, but when Stern could only produce a credit card, the officers ordered the couple to go with them – even though the credit card had the dentist’s picture and signature.

When Hess began trying to film the encounter, things got ugly, Stern said.

“We brought out the camera, and that’s when they called backup,” she said. “That’s when eight ninja cops came from out of nowhere.”

Hess was allegedly tackled to the platform floor, and cuffs were slapped on both of them. The initial charge, according to Stern, was disorderly conduct for “impeding the flow of traffic.”

They sued. They won. While NYC Councilman Peter Valone complains that “At $75,000 a dance, the city’s going to go bankrupt sooner than we thought,” he said. “Here, it looks like it was the taxpayers who got served.”

But whose fault is that, Mr. Valone? It’s not illegal to dance in the subway. Maybe the problem is an out of control police department:

For fiscal year 2011, New York City gave out $185.6 million to settle suits against the NYPD. That number rounds out to about $70 per resident, according to the New York Post. Though the New York City Law Department insists there is no blanket policy on settlements, City Councilman Peter Vallone Jr., who also heads the City Council’s Public Safety Committee, said such settlements have only increased since he took office in 2002. [..]

New York Civil Liberties Union head Donna Lieberman insists the city should start learning from suits, rather than just paying to get rid of them.

The city is still facing million in lawsuits by groups and individuals, including two city council members, resulting from brutal, unlawful tactics and false arrests from the Occupy Wall Street protests.

Mayor Michael Bloomberg and Police Commissioner Ray Kelly are to blame for this. Perhaps Mr. Vallone needs to stop blaming the lawyers for settling these suits, which would cost even more to litigate, and look at the real cause, an out of control mayor and police department.

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