Divide And Conquer

Serial liar Scott Walker (R-Kochbitchistan) is up for recall, and as an out-of-state observer, I don’t see the question. He’s out to screw 99% of Wisconsinites for the benefit of a few – and not necessarily a few Wisconsinites.

Here’s some dish on one of his cronies:

Wisconsin Gov. Scott Walker’s 2011 statement that going after collective bargaining for public workers was the first step in his plan to divide and conquer was made to billionaire roofing and siding wholesaler Diane Hendricks, who had asked him, “Any chance we’ll ever get to be a completely red state and work on these unions and become a right-to-work? What can we do to help you?” While the things Hendricks has done to help Scott Walker personally include more than $500,000 in campaign contributions, she’s apparently much less interested in helping Wisconsin by paying corporate taxes.

Despite annual sales of around $5 billion, Hendricks’ company, ABC Supply, paid nothing in state corporate income tax between 2005 and 2008, the most recent years for which the information was available.

But really, I wanted to save the “divide and conquer” quote for posterity. See the post for video. Really, Wisconsin, where’s the question?

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Arizona: Cornucopia Of Crazy

Those desert folks should spend less time in the sun. Without further comment:

It appears the House Republicans, this time lead by Arizona Rep. Trent Franks are about to give us a sort of a rerun of the Sandra Fluke debacle, only this time the woman they’re refusing to allow to testify before a Congressional hearing is D.C.’s only elected representative, Del. Eleanor Holmes Norton.

 

 

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What Is A Bank, Anyway?

I remember when we had savings and loans, and trying to figure out the difference between that and a bank. I don’t remember the answer now, but that’s OK because we don’t have any Savings and Loans anymore. Hmm, I wonder how that happened.

Anyway, a few years ago we had this economic meltdown for reasons that seemed to have little to do with banking, and yet these few, large banks we have are at the center of it. So what now is the difference between a bank and an investment or brokerage firm? Damn little.

Golden Boy Jamie Dimon of JP Morgan Chase has been beating his chest for the past few years that his bank was different from all those other scurvy Wall Street Banks, but had to recently admit to a minimum of $2 billion in losses due to one of their crazy complex “financial instruments.”

One person pushing back against the Fiscal-Political Complex is Elizabeth Warren, former Obama Administration official and current Senate candidate in Massachusetts. Warren had this to say:

Wall Street isn’t going to change its ways until Washington gets serious about strong oversight and real accountability. No special deals. We need a tough cop on the beat to make sure that nobody steals your purse on Main Street or your pension on Wall Street. Problem is, in Washington money talks—and Wall Street has plenty of money to spread around.

The post author notes that her opponent, Wall Street Darling Scott Brown,

[...] is avoiding the subject all together, still trying to talk about whether or not Warren is Native American. Of course Brown doesn’t want to talk about Wall Street, and particularly about JPMorgan Chase, probably because of this.

“This” being the chart below:

The banksters seem to be “spreading their money around” quite selectively. Of course they are trying to foil any plans to regulate their activities, in a greedy, self-serving manner.

Former Fed Chairman Paul Volker highlights my original question: what makes a bank a bank:

“You’ve got great advantages if you’re a government regulated bank,” Volcker explained. “Take the two big remaining investment banks — used to call them investment banks — Goldman Sachs and Morgan Stanley. Both during the crisis got a banking license. Why’d they get a banking license? They wanted the protection of the government in the middle of the crisis. Now the crisis is over, if they want to do proprietary trading, they want to do a lot of other things, it’s very simple: give up their banking license.”

This was back in April, but takes on greater significance now. JPM’s losses appear small enough that they won’t need the government to step in and cover them. But the idea behind the Volcker Rule is that federally insured banks shouldn’t be making these kinds of bets at all — because when the bets go spectacularly bad, it falls to taxpayers to cover them.

So investment banks went the way of savings and loans, and are now just banks. But rather than the former investment banks stopping their ridiculous, meaningless trades, now everyone is doing it.

I should note that JP Morgan Chase has been pushing the idea that this failed transaction was a hedge and not an investment. And it has been working as news reports (as on spineless NPR) refer to the deal as a failed hedge. I believe according to current law, stupid-ass egomaniacal fairy dust derivatives are okay as hedges, but not as investments.

Next question: what’s the difference between a hedge and an investment? Think in terms of a person who worked hard all their life and is now homeless because of what these criminals did.

(added)

Here’s the video.

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Very Serious People

I’ve never understood the Sunday morning talking head shows. When I was a kid, and when these shows might have been relevant, I certainly was not tuning into The MacNeil/Lehrer Report while waiting to go to Mass. Once I was older, I stopped getting up early enough on a Sunday for it to matter.

So I must admit that I have very little personal experience with these shows, but I catch the soundbites they propagate. For instance,

As Steve Benen noted, on the heels of the $2 billion loss by JPMorgan Chase, here was the RNC Chairman Reince Priebus’ reaction on Meet the Press this Sunday — RNC Chief: Leave Wall Street alone:

JPMorgan’s reckless, $2 billion fiasco appears to have a silver lining of sorts: the bank’s bad bets help demonstrate the need for safeguards in the system. In his new column, Paul Krugman thanks JPMorgan Chase CEO Jamie Dimon for offering “an object demonstration of why Wall Street does, in fact, need to be regulated.”

And yet, somehow, some still don’t see it that way. On NBC’s “Meet the Press” yesterday, Republican National Committee Chairman Reince Preibus, common sense be damned, argued that the JPMorgan mess changes nothing.

Host David Gregory asked a straightforward question: “In light of the losses on Wall Street this week, you think we need less financial regulation rather than more?” In Preibus’ mind, it’s not even a close call: “I think we need less.” The RNC chief added that Democrats have “made things worse” by approving new safeguards and adding new layers of accountability to the financial system.

It reminded me of an Upton Sinclair line: “It is difficult to get a man to understand something, when his salary depends upon his not understanding it.”

So yet another right-wing white male pushing deregulation uber alles (except, of course, its only peer -tax cuts).

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GOP Budget

The Grand Old Party is continuing to back out of the agreement they made last year involving the the debt ceiling and the so-called super Committee. At the time, the biggest threat was that the SC would actually come to an agreement. Fortunately it failed, and many, from the beginning, said it did not matter because the republicans will change their mind.

This is not a case of a handshake agreement; they passed a law. So, the republicans can back away all they want. They are stuck in this room until and unless both houses of Congress pass, and the President signs, a law changing the rules.

So what do the republicans propose? Let’s keep all the cuts to social programs, and in place of the defense cuts. let’s cut those programs some more (i.e., the Ryan budget).

What they perhaps are most afraid of is that we the people will see that cuts to social programs are unacceptable, but that defense cuts don’t bother us so much.

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So Long Senator Lugar

Senate Majority Leader Harry Reid (D-NV) had this to say on Sen. Richard Lugar’s loss in an Indiana republican primary:

“Throughout the history of this country, even in the most trying times, that’s times of great social and political unrest, our elected representatives have worked together despite their differece to do what’s right for all Americans,” he said. “So I worry when I see dedicated patriot like Sen. Lugar drummed out by tea party zealots for being too willing to cooperate. But that’s what happened on Tuesday.”

So who is this zealot tea bagger? CNN’s Soledad O’Brien spoke with him:

“What I hear you say is you are not going to compromise,” CNN host Soledad O’Brien observed. “In fact, the only compromise you’ll do is really getting other people on the other side of the aisle to your side of the aisle, which I guess is the definition against compromise.”

“It is the definition of political effectiveness,” Mourdock replied.

“Political effectiveness, you’re saying, is not possible with compromise,” O’Brien noted. “Some people would say political effectiveness in the Senate requires compromise. There are many issues that cannot be done if you do not get bipartisan support. You’re not going to work towards bipartisan support?”

“The fact is you never compromise on principles,” Mourdock explained. “If people on the far left have a principle they want to stand by, they should never compromise. Those of us on the right should not either. Compromise may come in the finer details of a plan or a budget.”

We’ve known this for at least a decade: republicans, for whatever reason, will not deal in good faith with others. Until now. At least with Mourdock, he’ll stab you in the chest rather than the back. Metaphorically speaking. Either way, unless the Democratic challenger wins in November, we’ll just be exchanging one Indiana Dick for another.

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Non-Traditional Ciitizen: Michelle Bachmann

One of the problems with transnational corporations isn’t that they have no allegiance to a home country – no corporation has patriotic motivations – only monetary ones. The problem is that they can skirt any particular law in any country, often through accounting tricks.

With people, on the other hand, being a citizen of more than one country is problematic. I was taught that with citizenship, the benefits come along with responsibilities – uphold the Constitution, defend the nation, etc.

I believe in traditional citizenship – a union between one person and one country. Allowing multiple citizenship has a corrupting  influence on our society. Claiming dual allegiances casts a suspicion upon that person’s actions – for whose good are they working?

On a day-to-day basis, these duals can put on and take off whichever national hat they wish. Imagine if I were a dual U.S.-German citizen. I could follow the German laws on the highway, and the U.S. laws at the local gun show.

This comes up because once-Presidential-candidiot and always a clown Michelle Bachmann (R-FantasyLand):

recently became a citizen of Switzerland, making her eligible to run for office in the tiny European nation, according to a Swiss TV report Tuesday.

And by recently, they mean since mid-March. She dropped out of the 2012 race at the beginning of January so perhaps she saw this coming. Seeing what they’ve done to Obama over his citizenship, she was probably afraid they would treat her the same. And by “they” I mean her and her ilk. Fortunately republicans are irony-impervious or they would all just explode.

Bachmann says it was a family decision driven by her children:

“Congresswoman Bachmann’s husband is of Swiss descent, so she has been eligible for dual-citizenship since they got married in 1978. However, recently some of their children wanted to exercise their eligibility for dual-citizenship so they went through the process as a family,” said Bachmann spokesperson Becky.

It seems that the kids figured getting out of Minnesota was not enough. To get away from this lady they are considering Europe. There’s no way Red White and Blue Mom would step foot on the Continent. Dad would visit for long weekends.


Update 5/10
Although again Michelle Bachman became a Swiss citizen months ago, that fact has only just surfaced. On the heels of the breaking news:

Michele Bachmann’s office says the congresswoman has withdrawn her dual Swiss citizenship, MinnPost’s Devin Henry reports.

“I took this action because I want to make it perfectly clear: I was born in America and I am a proud American citizen,” Bachmann said, according to Henry’s report.

I guess no brunch in Basel with the family.

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Why We Can’t Have Nice Things

A message to all those newly come to politics in the U.S. about how the two major political parties work:

  • First, the republicans destroy everything they can get their hands on
  • Things get so dire that the voting public decides to ‘throw the bums out’
  • The Dems take over and act reasonably, but not decisively, to correct the situation
  • With progress slow, the voting public decides to believe the republican BS and throw the Dems out
  • Repeat.

This has been the process for three decades, and is reaching a crescendo with the tea bag republicans. The basic problem is that, in terms of Sisyphus, it is easier to roll boulders down hill rather than up. While acknowledging that individual and collective political memory is so short, it is still surprising that a mere two years after Bush Jr. left office, the republicans made electoral gains. The same republicans who crapped all over the country for the previous eight years rallied their base to do this, but they got a bunch of Freshmen republican Congressmen who refuse to toe the line.

There are abundant resources showing that the economy does better under Democratic governance that under republican mis-governance, but here’s another:

To recap, under Obama:

  • Private sector jobs: Up by 35 thousand
  • Public sector jobs: Down 608 thousand
  • Stock market: Up by 64%

And under Bush:

  • Private sector jobs: Down by 646 thousand
  • Public sector jobs: Up by 1.7 million
  • Stock market: Down 24%

Also realize that the current, austerity-driven public sector job losses are not coming solely out of Bush Jr’s hiring frenzy focused on military, “security,” and intelligence (foreign and domestic) agencies. Bush did not hire nearly as many teachers, cops, or firefighters as he did middle managers, but those union people are losing their jobs – and their communities are losing their services. (Don’t forget to thank unions for weekends.)

Found this later:

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Middle America At Its Worst

When I lived in and near Rogers Park in Chicago I visited a place called the Heartland Cafe, a tree-hugging cafe with drinks and live entertainment. Many years later I came across the Heartland Institute, also in Chicago, and thought they might be related. How wrong I was.

The Heartland Institute is an extreme right-wing think tank more akin to its East-Coast brother, the Heritage Foundation. The post below mashes the names up in its headline into “Heritage Institute,” but in the story correctly references the Heartland Institute, whose tagline is: “Ideas That Empower People.” More accurately that would be: “Lies That Empower Certain People (Who Already Have Power).”

That said, Hunter, the author, tells the tale of Heartland’s pay-for-research program on climate change:

Don your ceremonial Fonzie jackets, one and all, because the anti-climate-science Heartland Institute didn’t just jump the shark on this one, they jumped it twice, then jumped it once more backwards, then took it to the movies for the evening, then jumped it once more with roller skates on. Yikes:

Billboards in Chicago paid for by The Heartland Institute point out that some of the world’s most notorious criminals say they “still believe in global warming” – and ask viewers if they do, too…The billboard series features Ted Kaczynski, the infamous Unabomber; Charles Manson, a mass murderer; and Fidel Castro, a tyrant.

Already the billboard had has some effect, as Rep. James Sensenbrenner (R-WI) has pulled out of Heartland’s upcoming conference rather than be associated with this nuttery.

So how does this work? Hey kids, Charles Manson believes climate change is real! If you believe it, you’re just like Charles Manson! Who thought up that one, did they scour drunken Young Republican house parties until they came up with the single dumbest idea any person had ever had in the history of having ideas? (Just kidding: Young Republicans do not have house parties. They have cotillions, I think.)

Normally I question using “Jump the Shark” references, but this one seems apt. The deniers are plumb out of lies so they go for character assassination. So what do these billboards look like?

Real class, Heartland Institute.

 


Coincidentally, the Swift Boat movement, it seems, has also, too, jumped the shark, at least according to the headline: Swift boating jumps the shark, but I’m not buying this one. It is some winger trying to turn bin Laden’s death into a negative for the President. The post ends:

So when Arends runs an ad accusing President Obama of refusing to share credit for ordering the Osama bin Laden raid, the worst possible outcome is that some of the people who watch the ad don’t realize it’s a lie and as a result walk away thinking President Obama is kind of a dick. But even if that happens, at least they’ll still think he’s the dick who killed bin Laden.

 

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Follow The Money

As we learned from All The President’s Men, if not from Watergate itself, if you want to uncover corruption you need to follow the money trail. So who is making money these days? Beyond the obvious Military-Energy Complex, we also have private prisons and for-profit education.

First the prisons. In Mississippi, a corporation known as GEO Group managed three correctional facilities including the Walnut Grove Youth Detention Facility (WGYDF) about which the Department of Justice reported earlier this year:

WGYCF is deliberately indifferent to staff sexual misconduct and inappropriate behavior with youth. The sexual misconduct we found was among the worst that we have seen in any facility anywhere in the nation. Further, staff fails to report allegations of staff sexual abuse to supervisors and State officials, as required by law.

Evidence reveals systematic, egregious and dangerous practices at WGYCF exacerbated by a lack of accountability and controls. The Justice Department found reasonable cause to believe that a pattern or practice of unconstitutional conduct exists in several areas, including:

Deliberate indifference to staff sexual misconduct and inappropriate behavior with youth;

Use of excessive use of force by WGYCF staff on youth;

Inadequate protection of youth from youth-on-youth violence;

Deliberate indifference to youth at risk of self-injurious and suicidal behaviors; and

Deliberate indifference to the medical needs of youth.

“Our findings show that due to the unconstitutional operation of WGYCF, youth were sexually preyed upon by staff and all too frequently suffered grievous harm, including death,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The widespread and significant deficiencies at the facility violate the Eighth Amendment’s mandate that imprisoned youth be protected from harm and provided with adequate medical and mental health care. “

As the first post further points out:

The CEO of GEO George C. Zoley earned a salary of $1,145,000, got a bonus of $1,334,498 and with other compensations like stock options, the total for him is $5,734,949. The company he heads up, the GEO Group, is raking in the blood money by the barrel full.

The post also goes on to note that GEO, along with Corrections Corporation of America (CCA), regularly run facilities “plagued with dangerous conditions due to the private operator’s cost-saving measures. .”

Along with prisons, schools should not be for profit. The State requires children to attend school in a similar way to how the State “requires” some individuals to go to prison. In both cases, private corporations should not be allowed to profit from the situation. If this is allowed, corporations would be in a position to write regulations which require citizens to consume their product. For prisons we see corporatists loving the war on drugs, of course, and now the crackdown on illegal immigrants, both of which increase prison populations and spur the building of new prisons.

For schools, we have textbooks and testing, as well as whole schools with the so-called charter schools. But as the second post says:

Testing is big business

 

The education commissioner of Texas, a Republican, recently said that:

 

“The assessment and accountability regime has become not only a cottage industry but a military-industrial complex. And the reason that you’re seeing this move toward the “common core” is there’s a big business sentiment out there that if you’re going to spend $600-$700 billion a year in public education, why shouldn’t be one big Boeing, or Lockheed-Grumman contract where one company can get it all and provide all these services to schools across the country.”

 

Texas has been at the forefront of the testing craze; in fact, testing was one of the things George W. Bush brought with him from Texas and pushed to a national level, through No Child Left Behind. In 2000, Pearson Education, the company that produces tests for Texas, “signed a $233 million contract to provide tests for Texas schools, and in 2005 they got another $279 million.” In 2011, as Texas was slashing its education budget to the bone, Gov. Rick Perry’s administration gave Pearson a $470 million contract “to come up with a new test that will hold Texas schoolchildren to a higher standard at the same time that budget cuts are forcing them into increasingly crowded classrooms.”

Ahh yes, the “Texas Miracle” as it was called during the Gore v. Bush presidential contest. The name is perfect for the right-wing framing: “miracle” implies that Bush’s education is great, but the reality is that it would be a miracle if the republicans did anything positive vis a vis education. The corporatists are still doing the same thing as with Michelle Rhee and the D.C. schools.

So once again: keep the profit motive, and corporations, out of basic state services.

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