Thursday, April 21, 2011

ACORN WAS ACCUSED OF PAYING PEOPLE TO REGISTER VOTERS, WHO THEN COULD HAVE VOTED FOR WHOMEVER THEY CHOSE. WHEREAS THE KOCH BROTHERS GET AWAY WITH FORCING THEIR 50,000 EMPLOYEES TO VOTE THE WAY THEY INSTRUCT THEM.



April 21, 2011
ThisBoyTV



Thought Control: Right-Wing Koch Brothers Caught Telling Thousands of Employees How to Vote

The Nation magazine has revealed that Koch Industries sent a letter to most of its 50,000 employees on the eve of the November elections, advising them on whom to vote for and warning them of the dire consequences should they choose to vote otherwise. As a result of the Citizens United v. Federal Election Commission ruling last year, Koch Industries and other corporations are now legally allowed to pressure their workers to adopt their political views. Koch Industries is run by the billionaire brothers, Charles and David Koch, who have helped bankroll the Tea Party movement and dozens of other right-wing causes, including the recent attacks on public sector employees and unions going on in many states. [Original includes rush transcript]

PRIVATIZED GOVERNMENT: COMING SOON TO A TOWN NEAR YOU


Go to original here.




Maddow: Mich. Gov. Snyder using new ‘Emergency Financial Managers’ law to assist corporate land grab from the poor

* Posted on 04.20.11
* By Roxanne Cooper
* Categories: Nation

Benton Harbor, MI is 10,235 population town. 85.5% of the residents are African-American. The per capita income is among the lowest in the state: $10,235.

Michigan Governor Rick Snyder recently castrated the city government of the struggling town, using his controversial “Emergency Financial Managers” law. The law, as Raw Story previously reported, allows Snyder to “take over municipalities that don’t pass a financial stress test.”

On Tuesday night, MSNBC’s Rachel Maddow made the case that Snyder, Whirlpool (global headquarters in Benton Harbor), Harbor Shores (a developer) and assorted political cronies are using the newly enacted law to grab prime beachfront property deeded to the city’s residents in 1917 in order to develop it into a Jack Nicklaus-designed golf course and luxury “signature” homes.

Watch the segment below, which originally aired on MSNBC’s Rachel Maddow Show on April 19, 2011.

Visit msnbc.com for breaking news, world news, and news about the economy

Wednesday, April 20, 2011

I WAS RIGHT ABOUT S&P! THEY PLAYED A MAJOR CRIMINAL ROLL IN CRASHING THE ECONOMY IN 2008, AND NOW THEY ARE THREATENING TO CRASH IT AGAIN IF THE GOVERNMENT FAILS TO GUT MEDICARE, MEDICAID, AND SOCIAL SECURITY. BUT THEIR THREAT IS HOLLOW; THEY CAN'T POSSIBLY END THE DOLLAR'S REIGN AS RESERVE CURRENCY (see my previous post).


Original here.



.                                                                                                                       .

The S&P debt warning: Wall Street extortionists demand savage cuts

20 April 2011

Five days after the US Senate Permanent Subcommittee on Investigations released a voluminous report detailing the criminal activities of the banks and credit rating firms that precipitated the 2008 Wall Street crash and global recession, one of the named culprits, Standard & Poor's Credit Ratings Services, issued an ultimatum to the White House and Congress demanding an agreement on savage austerity measures ahead of the 2012 elections.

In lowering its outlook from "stable" to "negative" on the top AAA rating for US Treasury bonds, S&P spoke Monday for the entire financial mafia that is headquartered on Wall Street. The ratings firm declared in a press release that failure to reach an agreement in the coming months to reduce the federal deficit by at least $4 trillion over the next decade "could lead us to lower the rating."

This amounts to a threat to crash the US and global economy and undermine the status of the dollar as the world reserve currency. The move is part of an internationally orchestrated drive by the major banks and speculators to push through devastating attacks on the living standards of the American working class.

They are applying to the United States the extortionate methods used previously to stoke up speculative attacks on the sovereign debt of a number of European countries, including Greece, Ireland, Portugal and Spain. S&P and its major ratings rivals Moody's and Fitch have issued strategically timed credit warnings and downgrades to create a crisis atmosphere, which governments have then utilized to override popular opposition and impose mass layoffs and wage cuts and shred social programs.

John Chambers, chairman of the sovereign ratings committee at S&P, virtually admitted as much, according to a report in Tuesday’s Wall Street Journal. The Journal wrote: “If the US reaches a British-style resolution, S&P will restore the US outlook to stable, Mr. Chambers said.”

In May of 2009, S&P lowered Britain’s credit outlook. It reversed the action 17 months later after the newly elected Conservative-Liberal Democrat coalition government announced a program of draconian cuts that will shatter the country’s social safety net.

Readers can make their own judgment as to S&P’s standing to be issuing such ultimatums. The Senate report on the Wall Street crash describes the corrupt process by which S&P routinely slapped AAA ratings on worthless securities marketed by the banks as follows: “Credit rating agencies were paid by Wall Street firms that sought their ratings and profited from the financial products being rated… The ratings agencies weakened their standards as each competed to provide the most favorable rating to win business and greater market share. The result was a race to the bottom.”

Senator Carl Levin, the chairman of the subcommittee, described what the investigation uncovered as “a financial snake pit rife with greed, conflicts of interest and wrongdoing.”

By rights, the top S&P executives who presided over this fraud and pocketed multi-million-dollar salaries in the process should be sitting in prison. Instead, still at their posts and having suffered no consequences, they are using the disaster of their own making to gut bedrock social programs such as Medicare, Medicaid and Social Security upon which tens of millions of people depend.

The statement issued by S&P on Monday described both the Republican fiscal year 2012 budget plan and that outlined by President Obama last week as a basis for cutting the federal deficit by $4 trillion. However, the two sides had to come to an agreement before the national election in 2012, the company insisted.

This demand underscores the anti-democratic character of the so-called budget debate. It is an elaborate charade, behind which stands the dictatorship of the banks. The deal to eviscerate what is left of the social reforms of the 20th century has to be sealed before the elections to make sure that the vote in no way becomes a referendum on austerity and the electorate has absolutely no say in the matter.

The mass opposition to the measures being proposed by both parties is well known to Wall Street and its political servants in Washington. On Monday, the same day as the S&P announcement, McClatchy Newspapers published the results of a McClatchy-Marist poll showing that voters by a margin of 2-to-1 support raising taxes on incomes above $250,000, with 64 percent in favor and 33 percent opposed. They oppose cutting Medicare and Medicaid by 80-18 percent.

S&P intervened at the behest of the banks to shift the phony budget debate even further to the right and create the conditions for even deeper cuts than those being currently proposed. Interviewed Monday on Bloomberg Television, David Beers, S&P’s global head of sovereign finance ratings, said the $4 trillion deficit-cutting target was “not enough to ultimately halt the rising trajectory of US debt.” It was, he said, merely “a useful starting point.”

The establishment media immediately signaled that it had gotten the message. The Los Angeles Times editorialized that “Congress and the White House can’t afford to ignore this warning shot.” The Financial Times of London published an editorial that declared, “S&P’s warning shot should galvanise America’s leaders.”

Democratic leaders rushed to reassure Wall Street that they were on board. Speaking at a community college in Virginia Tuesday, Obama said, “I believe that Democrats and Republicans can come together to get this done.”

Steny Hoyer of Maryland, the No. 2 Democrat in the House of Representative, said Monday, “Today’s revised outlook shows the urgent, bipartisan action needed to put our nation on a serious path to reduce deficits.”

Erskine Bowles, a former White House chief of staff for Bill Clinton and co-chair of last year’s bipartisan fiscal commission, was even more emphatic. Speaking to the Financial Times, he said S&P had been “absolutely right” in lowering its outlook on US debt. “If anything, they understate the extent of the problem,” he said.

Only a mass, independent movement of implacable opposition by the working class can defeat this criminal conspiracy. The World Socialist Web Site and the Socialist Equality Party urge workers and young people to reject the entire framework of the so-called budget debate. There must be uncompromising opposition to any cuts in jobs, wages or social programs and services. The working class bears no responsibility for the crisis of the capitalist system.

We propose an alternate policy. As a down payment, to begin to recoup the wealth plundered by the financial elite, we propose a 50 percent tax surcharge on all household wealth over $5 million.

This should be supplemented by raising the income tax on households taking in more than $500,000 a year to 90 percent.

These measures will not only generate hundreds of billions of dollars for jobs, schools, health care, housing and pensions, they will attack the profligate squandering of resources and contribute mightily to the moral as well as the economic health of society.

These initial steps lead inexorably to the nationalization of the banks and major corporations and their transformation into public utilities under the democratic control of the working population. This is a socialist program. It requires that the working class break politically from the two parties of big business and build a mass movement to fight for a workers’ government.

Barry Grey
The author also recommends:
Senate report on Wall Street crash: The criminalization of the American ruling class
[18 April 2011]

WHY DID S&P LOWER THE U.S. CREDIT RATING? BECAUSE THE DOLLAR IS AT RISK OF LOSING ITS POSITION AS THE WORLDS RESERVE CURRENCY? NOPE, IT CAN'T BE THAT (READ BELOW). MAYBE A PLOY TO TRICK CONGRESS INTO CUTTING SOCIAL SECURITY. YEP, THAT'S WHAT I THINK.


Original article here





Monday, February 28, 2011 6:50 PM

US Dollar About to Lose Reserve Currency Status - Fact or Fantasy?


A number of sites are commenting on a Bloomberg video in which El-Erian, PIMCO Co-CEO says "Dollar could lose its reserve currency status".



Bloomberg: "Mohammad what does a weak dollar signal to you, a dollar that can't jump up here on a day like we've seen today?"

El-Erian: "It is a warning shot to America that we cannot simply assume flight to quality, flight to safety. That people are starting to worry about the fiscal situation in the U.S. They are starting to worry about the level of debt. They are starting to worry about what they hear about states and municipalities. So, I would take this as a warning shot that we cannot assume that we will maintain the standing of the reserve currency as we have in the past."

Reserve Currency Definition

Before we can debate whether or not the US will lose reserve currency standing, we must first define what it means.

Investopedia defines Reserve Currency as follows.

"A foreign currency held by central banks and other major financial institutions as a means to pay off international debt obligations, or to influence their domestic exchange rate."

I accept that definition. Unfortunately Investopedia rambles on with nonsense about the implications: "A large percentage of commodities, such as gold and oil, are usually priced in the reserve currency, causing other countries to hold this currency to pay for these goods."

That sentence is a widely believed fallacy. The reality is no country is obligated to hold dollars to buy goods denominated in dollars.

Currencies are Fungible

Currencies other that illiquid currencies with low or no trading volume (think of Yap Island stones or the Cuban Peso) are fungible. It is a trivial process to switch from one currency to another.

You can buy gold or silver in any country, and I assure you those transactions do not all take place in dollars. Thus, just because a commodity is widely priced in dollars does not mean it only trades in dollars.

That holds true for oil as well.

I keep pointing this out, unfortunately to no avail, that oil trades in Euros right now. There is no selling of Euros to buy dollars on the front causing the oil producers to trade dollars for euros on the back end. The oil states simply sell oil for a price in Euros and then hold Euros in their Forex reserves.

Fact and Fantasy

The first part of what El-Erian said is factual. Here it is again for convenience. "People are starting to worry about the fiscal situation in the U.S. They are starting to worry about the level of debt. They are starting to worry about what they hear about states and municipalities."

Those are true statements. Unfortunately, his "warning shot" regarding reserve currency status is fallacious.

To understand why, let's return to the definition of reserve currency: "A foreign currency held by central banks and other major financial institutions as a means to pay off international debt obligations, or to influence their domestic exchange rate."

Foreign Currency Reserve Factors

1. Trade Volumes
2. Trade Deficits
3. Currency Manipulation
4. Hot Money

Trade Volumes and Trade Deficit

The US happens to be at or near the top of nearly every country's trading partners. The US runs a trade deficit with most of them. Those trading partners accumulate dollars as a simple function of math. We run a deficit, someone else runs a surplus.

Some wonder why the surplus countries do not buy oil or commodities with their accumulated dollars. OK, what does Saudi Arabia, Iran, or Venezuela do with the dollars then?

Does Iran or Venezuela even hold dollars now? Think of the implications of that answer in light of the widely viewed fallacy that one needs dollars to buy oil.

Regardless of where the dollars end up, those US dollars will eventually return home. Recall that Dubai tried to buy a US port and China tried to buy Unocal. Both were rejected for security reasons. However, those dollars will return home, with China, Japan, and the oil states buying various US assets.

Currency Manipulation

Most US trading partners do not want their currencies to rise, especially China and Japan.

Consider the Yuan which does not float. To suppress the value of the Yuan, China takes US dollars and exchanges them for Yuan at a pegged rate. China does this hoping to create jobs and boost exports.

The US calls this currency manipulation and it is. However, it is no more manipulative than Bernanke flooding the markets with US dollars hoping to weaken the US dollar and stimulate growth.

Hot Money

Hedge funds and other speculators have moved money to China banking on currency appreciation.

China needs to maintain currency reserves to allow for the repatriation of those US dollars. Michael Pettis at China Financial Markets points out that most of the hot money inflows into China are done by Chinese businesses that understand how to get around rules and regulations regarding currency inflows.

That argument make perfect sense, but the math remains the same regardless of where the hot money comes from.

Global Beggar-Thy-Neighbor Policies

It is pretty pale to suggest the end of the US dollar as a reserve currency when countries hold dollars as a function of math, then hold still more dollars to suppress their currencies, hoping to keep their exports up to "stimulate growth".

Mathematical Impossibility

Another mathematical relationship says the dollar, the pound, the Yen, and the Yuan cannot all be weak at the same time (relative to each other). Yet that is precisely what every country wants. It's mathematically impossible.

You can see the effect in rising commodity prices.

If commodity prices were a function of the US dollar alone, then they would be rising in US dollar terms alone. Instead there is upward pressure on commodities in all currencies.

At some point the desirability to hoard commodities will peak.

Zero Hedge Comments

Zero Hedge commented on reserve currency status about a week ago.

Regarding El-Erian's statement: "I would take this as a warning shot that we cannot assume that we will maintain the standing of the reserve currency as we have in the past"

Zero Hedge quipped:
That's a given - the question however remains, which fiat currency, if any, is willing and ready to step in and replace the USD? With all eyes continuing to be look at the CNY, how long before China finally takes the plunge to find out just who is the real reserve currency in the world?
Will Another Fiat Currency Replace the Dollar?

For starters, Zero Hedge ignored the essential trade deficit math. The US runs a trade deficit, someone else must run a trade surplus.

Second, Canadian dollar and the Swiss Franc do not have enough trading volume. More importantly, there are not enough Canadian Dollars or Swiss Francs to go around. Look at what happened to Iceland when too many plunged into the Icelandic króna.

The Canadian and Swiss economies are simply not big enough for them to be global reserve currencies. In regards to the Euro, is Europe in a better fundamental situation than the US? Would it matter even if it was? To answer the second question, please remember trade deficit math.

As for the Yuan, it is complete silliness to suggest the currency of a command-economy dictator-led country that will not even float its currency will be some sort of major reserve currency.

To the extent that China trades with Russia, South Korea, etc., local reserves in varying currencies can happen (and are happening already), but the global significance of it is wildly overstated. The amounts in question are tiny, as a simple function of math.

Will the dollar remain the global reserve currency forever? Of course not. However, it is highly unlikely any of the presumed leading Fiat candidates including the Yuan and the Keynesian wet-dream IMF SDRs (Special Drawing Rights), will take the dollar's place. SDRs are essentially a basket of currencies.

The concept of trading in baskets of currencies backed by nothing is even more ridiculous than the existing setup. People do not buy goods and services in baskets of currencies.

What can replace the dollar?

Gold, or a mechanism like gold that would impose a hard restrictions on perpetual deficits is what its takes to restore sanity. However, we may not see a significant move towards gold until there is a massive currency crisis or revolt against fiat currencies in general, not just the US dollar.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

Tuesday, April 19, 2011

WHY DID S&P ISSUE A WARNING ON THE U.S. BOND RATING? HERE A COUPLE EXPERTS DISCUSS THE POSSIBILITIES. MY BET IS THAT IT WAS STAGED AS A FAKE JUSTIFICATION FOR ROBBING SOCIAL SECURITY.

   theREALnews

April 19, 2011

Why Did S&P Issue Warning on US Bond Rating?

Kevin Hall and Mark Weisbrot discuss reasons for Standard and Poor's warning US could lose AAA rating

More at The Real News

Bio

Mark Weisbrot is co-director of the Center for Economic and Policy Research, in Washington, D.C. He received his Ph.D. in economics from the University of Michigan. He has written numerous research papers on economic policy, especially on Latin America and international economic policy. He is also co-author, with Dean Baker, of Social Security: The Phony Crisis (University of Chicago Press, 2000). Kevin G. Hall, the former South America bureau chief, is the Bureau's national economics correspondent. During a 24-year career he has worked in Rio de Janeiro, Mexico City, Saudi Arabia, Miami, Los Angeles and Washington, D.C., and has reported from across the globe. He is the 2004 winner of the Sigma Delta Chi award, given by the Society of Professional Journalists Award for best foreign correspondence. A member of the National Economists Club, Hall is also an elected board member of the Society of American Business Editors and Writers, the nation's premier association for business journalists.

IS OBAMA A LIBERAL WHO IS CONGENITALLY UNABLE TO NEGOTIATE A FAVORABLE COMPROMISE WITH CONSERVATIVES, OR IS HE FARTHER RIGHT THAN THOSE WHO VOTED FOR HIM EVER SUPPOSED? GLENN GREENWALD BELIEVES THE LATER ...AND SO DO I.










Obama's "bad negotiating" is actually shrewd negotiating

Original

By Glenn Greenwald

(updated below = Update II [Thurs.])
 
In December, President Obama signed legislation to extend hundreds of billions of dollars in Bush tax cuts, benefiting the wealthiest Americans. Last week, Obama agreed to billions of dollars in cuts that will impose the greatest burden on the poorest Americans. And now, virtually everyone in Washington believes, the President is about to embark on a path that will ultimately lead to some type of reductions in Social Security, Medicare and/or Medicaid benefits under the banner of "reform." Tax cuts for the rich -- budget cuts for the poor -- "reform" of the Democratic Party's signature safety net programs -- a continuation of Bush/Cheney Terrorism policies and a new Middle East war launched without Congressional approval. That's quite a legacy combination for a Democratic President.

All of that has led to a spate of negotiation advice from the liberal punditocracy advising the President how he can better defend progressive policy aims -- as though the Obama White House deeply wishes for different results but just can't figure out how to achieve them. Jon Chait, Josh Marshall, and Matt Yglesias all insist that the President is "losing" on these battles because of bad negotiating strategy, and will continue to lose unless it improves. Ezra Klein says "it makes absolutely no sense" that Democrats didn't just raise the debt ceiling in December, when they had the majority and could have done it with no budget cuts. Once it became clear that the White House was not following their recommended action of demanding a "clean" vote on raising the debt ceiling -- thus ensuring there will be another, probably larger round of budget cuts -- Yglesias lamented that the White House had "flunked bargaining 101." Their assumption is that Obama loathes these outcomes but is the victim of his own weak negotiating strategy.

I don't understand that assumption at all. Does anyone believe that Obama and his army of veteran Washington advisers are incapable of discovering these tactics on their own or devising better strategies for trying to avoid these outcomes if that's what they really wanted to do? What evidence is there that Obama has some inner, intense desire for more progressive outcomes? These are the results they're getting because these are the results they want -- for reasons that make perfectly rational political sense.

Conventional D.C. wisdom -- that which Obama vowed to subvert but has done as much as any President to bolster -- has held for decades that Democratic Presidents succeed politically by being as "centrist" or even as conservative as possible. That attracts independents, diffuses GOP enthusiasm, casts the President as a triangulating conciliator, and generates raves from the DC press corps -- all while keeping more than enough Democrats and progressives in line through a combination of anti-GOP fear-mongering and partisan loyalty.

Isn't that exactly the winning combination that will maximize the President's re-election chances? Just consider the polling data on last week's budget cuts, which most liberal commentators scorned. Americans support the "compromise" by a margin of 58-38%; that support includes a majority of independents, substantial GOP factions, and 2/3 of Democrats. Why would Democrats overwhelmingly support domestic budget cuts that burden the poor? Because, as Yglesias correctly observed, "just about anything Barack Obama does will be met with approval by most Democrats." In other words, once Obama lends his support to a policy -- no matter how much of a departure it is from ostensible Democratic beliefs -- then most self-identified Democrats will support it because Obama supports it, because it then becomes the "Democratic policy," by definition. Adopting "centrist" or even right-wing policies will always produce the same combination -- approval of independents, dilution of GOP anger, media raves, and continued Democratic voter loyalty -- that is ideal for the President's re-election prospects.

That tactic in the context of economic policy has the added benefit of keeping corporate and banking money on Obama's side (where it overwhelmingly was in 2008), or at least preventing a massive influx to GOP coffers. And just look at the team of economic advisers surrounding Obama from the start: does anyone think that Bill Daley, Tim Geithner and his army of Rubin acolytes and former Goldman Sachs executives are sitting around in rooms desperately trying to prevent budget cuts and entitlement "reforms"?

Why would Obama possibly want to do anything different? Why would he possibly want a major political war over the debt ceiling where he looks like a divisive figure and looks to be opposing budget cuts? Why would he possibly want to draw a line in the sand defending Medicare, Medicaid and Social Security from any "reforms"? There would be only two reasons to do any of that: (1) fear that he would lose too much of his base if he compromised with the GOP in these areas, or (2) a genuine conviction that such compromises are morally or economically intolerable. Since he so plainly lacks both -- a fear of losing the base or genuine convictions about this or anything else -- there's simply nothing to drive him to fight for those outcomes.

Like most first-term Presidents after two years, Obama is preoccupied with his re-election, and perceives -- not unreasonably -- that that goal is best accomplished by adopting GOP policies. The only factor that could subvert that political calculation -- fear that he could go too far and cause Democratic voters not to support him -- is a fear that he simply does not have: probably for good reason. In fact, not only does Obama not fear alienating progressive supporters, the White House seems to view that alienation as a positive, as it only serves to bolster Obama's above-it-all, centrist credentials. Here's what CNN's White House Correspondent Ed Henry and Gloria Borger said last night about the upcoming fight over entitlements and the debt ceiling:
Henry: I was talking to a senior Democrat who advises the White House, outside the White House today who was saying look, every time this president sits down with Speaker Boehner, to Gloria's point about negotiating skills, the president seems to give up another 5 billion dollars, 10 billion dollars, 20 billions dollars. It' s like the spending cuts keep going up. If you think about where the congressional Democrats started a couple of months ago they were talking about no spending cuts on the table. It keeps going up.
But this president has a much different reality than congressional Democrats.
Borger (sagely): Right.
Henry: He's going for re-election, him going to the middle and having liberal Democrats mad at him is not a bad thing.
Borger: Exactly.
That's why I experience such cognitive dissonance when I read all of these laments from liberal pundits that Obama isn't pursuing the right negotiating tactics, that he's not being as shrewd as he should be. He's pursuing exactly the right negotiating tactics and is being extremely shrewd -- he just doesn't want the same results that these liberal pundits want and which they like to imagine the President wants, too. He's not trying to prevent budget cuts or entitlement reforms; he wants exactly those things because of how politically beneficial they are to him -- to say nothing of whether he agrees with them on the merits.

When I first began blogging five years ago, I used to write posts like that all the time. I'd lament that Democrats weren't more effectively opposing Bush/Cheney National Security State policies or defending civil liberties. I'd attribute those failures to poor strategizing or a lack of political courage and write post after post urging them to adopt better tactics to enable better outcomes or be more politically "strong." But then I realized that they weren't poor tacticians getting stuck with results they hated. They simply weren't interested in generating the same outcomes as the ones I wanted.

It wasn't that they eagerly wished to defeat these Bush policies but just couldn't figure out how to do it. The opposite was true: they were content to acquiesce to those policies, if not outright supportive of them, because they perceived no political advantage in doing anything else. Many of them supported those policies on the merits while many others were perfectly content with their continuation. So I stopped trying to give them tactical advice on how to achieve outcomes they didn't really want to achieve, and stopped attributing their failures to oppose these policies to bad strategizing or political cowardice. Instead, I simply accepted that these were the outcomes they most wanted, that Democratic Party officials on the whole -- obviously with some exceptions -- weren't working toward the outcomes I had originally assumed (and which they often claimed). Once you accept that reality, events in Washington make far more sense.

That Obama's agenda includes an affirmative desire for serious budget cuts and entitlement "reforms" has been glaringly obvious from the start; it's not some unintended, recent by-product of Tea Party ascendancy. Since before Obama was even inaugurated, Digby has been repeatedly warning of his support for a so-called "Grand Bargain" that would include cuts to Social Security, Medicare and Medicaid. And Jane Hamsher and Ezra Klein had a fairly acrimonious exchange very early on in the Obama presidency over the former's observation that Obama officials were expressly advocating cuts in Social Security while Klein insisted that this would never happen (yesterday, Klein reported that Obama would be supportive of Bowles-Simpson, which proposes deep cuts to Social Security, and boasted of his anticipation weeks ago that this would happen). Before Obama's inauguration, I wrote that the most baffling thing to me about the enthusiasm of his hardest-core supporters was the belief that he was pioneering a "new form of politics" when, it seemed obvious, it was just a re-branded re-tread of Clintonian triangulation and the same "centrist", scorn-the-base playbook Democratic politicians had used for decades.

What amazes me most is the brazen claims of presidential impotence necessary to excuse all of this. Atrios has written for weeks about the "can't do" spirit that has overtaken the country generally, but that mindset pervades how the President's supporters depict both him and the powers of his office: no bad outcomes are ever his fault because he's just powerless in the face of circumstance. That claim is being made now by pointing to a GOP Congress, but the same claim was made when there was a Democratic Congress as well: recall the disagreements I had with his most loyal supporters in 2009 and 2010 over their claims that he was basically powerless even to influence his own party's policy-making in Congress.

Such excuse-making stands in very sharp contrast to what we heard in 2008 and what we will hear again in 2012: that the only thing that matters is that Obama win the Presidency because of how powerful and influential an office it is, how disaster will befall us all if this vast power falls into Republican hands. It also contradicts the central promise of the Obama candidacy: that he would change, rather than bolster, the standard power dynamic in Washington. And it is especially inconsistent with Obama's claimed desire to be a "transformational" President in much the way that Ronald Reagan was (but, Obama said to such controversy, Bill Clinton was not). Gaudy claims of Fundamental Change and Transformation and Yes, We Can! have given way to an endless parade of excuse-making that he's powerless, weak and there's nothing he can do.

Obama's most loyal supporters often mock the notion that a President's greatest power is his "bully pulpit," but there's no question that this is true. Reagan was able to transform how Americans perceived numerous political issues because he relentlessly argued for his ideological and especially economic world-view: a rising tide lifts all boats, government is not the solution but is the problem, etc. -- a whole slew of platitudes and slogans that convinced Americans that conservative economic policy was optimal despite how much it undermined their own economic interests. Reagan was "transformational" because he changed conventional wisdom and those premises continue to pervade our political discourse.

When has Obama ever done any of that? When does he offer stirring, impassioned defenses of the Democrats' vision on anything, or attempt to transform (rather than dutifully follow) how Americans think about anything? It's not that he lacks the ability to do that. Americans responded to him as an inspirational figure and his skills of oratory are as effective as any politician in our lifetime. It's that he evinces no interest in it. He doesn't try because those aren't his goals. It's not that he or the office of the Presidency are powerless to engender other outcomes; it's that he doesn't use the power he has to achieve them because, quite obviously, achieving them is not his priority or even desire.

Whether in economic policy, national security, civil liberties, or the permanent consortium of corporate power that runs Washington, Obama, above all else, is content to be (one could even say eager to be) guardian of the status quo. And the forces of the status quo want tax cuts for the rich, serious cuts in government spending that don't benefit them (social programs and progressive regulatory schemes), and entitlement "reform" -- so that's what Obama will do. He won't advocate, and will actually oppose, steps as extreme as the ones Paul Ryan is proposing: that's how he will retain his "centrist" political identity and keep the fear levels high among his voting base. He'll pay lip service to some Democratic economic dogma and defend some financially inconsequential culture war positions: that's how he will signal to the base that he's still on their side. But the direction will be the same as the GOP desires and, most importantly, how the most powerful economic factions demand: not because he can't figure out how to change that dynamic, but because that's what benefits him and thus what he wants.

Ironically, Obama is turning out to be "transformational" in his own way -- by taking what was once the defining GOP approach to numerous policy areas and converting them into Democratic ones, and thus ensconcing them in the invulnerable protective shield of "bipartisan consensus." As Digby put it: "Reagan was a hard-core ideologue who didn't just tweak some processes but radically changed the prevailing conventional wisdom. Unfortunately, Obama is actually extending the Reagan consensus, even as he pursues his own agenda of creating a Grand Bargain that will bring peace among the dueling parties (a dubious goal in itself.)" That has been one of the most consequential outcomes of the first two years of his presidency in terms of Terrorism and civil liberties, and is now being consecrated in the realm of economic policy as well.


UPDATE: Obama gave a speech today on the budget that many liberals seemed to like -- some more than others.  It was a fine speech as far as it goes -- advocating, among other things, defense cuts and a repeal of the Bush tax cuts and vowing to protect the poor from the pain of deep entitlement reductions -- but I've long ago ceased caring about what Obama says in individual, isolated speeches: especially an Obama now formally in re-election mode.  As I said above, he can be expected to oppose Paul Ryan's plan and "pay lip service to some Democratic economic dogma."  If this becomes a sustained bully pulpit campaign to rhetorically sell these principles to the citizenry accompanied by real action to defend them, that will be one thing:  I'll be pleasantly surprised and will be happy to say so.  But what matters is actions and outcomes.

UPDATE II [Thurs.]:  As I noted, most liberals, at least that I've heard, had a quite favorable response to Obama's speech, chief among them (as the above links show) Paul Krugman.  Yet by the end of the day, Krugman was quoting Bob Greenstein of the Center on Budget and Policy Priorities, who argued that Obama's "plan is a rather conservative one, significantly to the right of the Rivlin-Domenici plan" and that it "could produce an outcome that is well to the right of the already centrist-to-moderately-conservative Obama proposal."  Krugman himself added that "it’s a center-right plan already; if it's the starting point for negotiations that move the solution toward lower taxes for the rich and even harsher cuts for the poor, just say no."

That highlights two key points.  One is that the expectation level of liberals is now so low that they cheer for a pretty speech that introduces a "rather conservative, center-right plan" -- one that is almost certainly the mere starting point that will lead to a still more rightward economic policy.  And the second is that Obama always has been able to deliver nice speeches, especially ones that trigger the desired response among progressives; the test for Obama is what he does, not what he says in a single speech.

Monday, April 18, 2011

THE FEDERAL GOVT IS ABOUT TO SETTLE NIGHTMARE OF 60 MILLION HOME MORTGAGES WITH UNTRACEABLE LENDERS DUE TO THE FUNDAMENTALLY ILLEGAL MORTGAGE ELECTRONIC REGISTRATION SYSTEM (MERS) DEVISED BY THE LENDERS TO HIKE THEIR PROFITS WHILE CONDEMNING MANY BORROWERS TO EVICTION. HERE MICHAEL COLLINS EXPLAINS IT ALL, FEARING THAT OUR GOVT MAY ONCE AGAIN REWARD THE PERPS AT THE EXPENSE OF THE VICTIMS.

 

ForeclosureGate Deal - The Mandatory Cover Up

Sunday, April 17, 2011

VOTER FRAUD IS BELIEVED TO BE RAMPANT IN THE U.S. BY THOSE WHO WATCH THE MAINSTREAM MEDIA, BUT AFTER SPENDING 5 TO 7 YEARS RESEARCHING EVERY COUNTY IN THE COUNTRY, THIS AUTHOR FOUND FEW INDICTMENTS AND ALMOST NO CONVICTIONS...


“The Myth of Voter Fraud” (MUST-SEE VIDEO of Lorraine Minnite & MCM!)

With thanks to Joly MacFie, Ace Videographer

Original here
MP3: http://punkcast.com/1888/1888/1888_the_myth_of_voter_fraud.mp3

About News From Underground

News From Underground is a daily e-news service run by Mark Crispin Miller, a Professor of Culture and Communication at NYU. It is based on his belief that academics, like reporters, have a civic obligation to help keep the people well-informed, so that American democracy might finally work.

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Blogger's Note: I don't think that many of you are ready to watch the full 1 hour 17 minutes, but I found the first half hour to be totally engaging and immensely informative. (The rest is an open discussion of questions raised by the audience.) The first half hour is indeed a MUST-SEE for any American who has been led to believe that "voter fraud" is widely committed in the U.S. ...by liberals. No conservatives have ever been charged despite copious evidence of large-scale, highly organized, well financed, and decidedly fraudulent election activities (for the tip of the iceberg, go here).

Saturday, April 16, 2011

OFFSHORE TAX HAVENS SUCK THE LIFE BLOOD OF THE GLOBAL ECONOMY

April 15, 2011

Offshore Banking and Tax Havens Have Become Heart of Global Economy

As millions of Americans prepare to file their income taxes ahead of Monday’s deadline, we look at how corporations and the wealthy use offshore banks and tax havens to avoid paying taxes and other governmental regulations. "Tax havens have grown so fast in the era of globalization, since the 1970s, that they are now right at the heart of the global economy and are absolutely huge," says our guest, British journalist Nicholas Shaxson. "There are anywhere between $10 and $20 trillion sitting offshore at the moment. Half of world trade is processed in one way or another through tax havens." Shaxson is the author of the new book, Treasure Islands: Uncovering the Damage of Offshore Banking and Tax Havens. [Original includes transcript]

THIS KINDA SAYS IT ALL...