After what has been esentially President Obama"s first
year in
office we are seeing apologists come out to defend his record thus far.
Unfortunately, it has come to that already. Although attacks from the
unscrupolus right were to be expected, it is his failure to deliver for
liberals/progressives that is the most troubling. That is the kind of
"change we can believe in" voters wanted, not a prettied up version of
Bush Republicanism. Although the right is in political chaos, the Dems
are split and the gap is growing wider. So it is time to face the
record and the indications should alarm even the Republican light
me-toos. It is hard to find any real reform. Those who give Obama a
good grade for 2009 take stock.
Obama continued the Bush bailout
of the big financial institutions while minimizing stipulations and
holding back on pushing Congress for tough, concrete, reregulation.
Those who didn't warn us of the coming breakdown have been incorporated
into positions of importance in his administration. Knowlegable
observers admit that the same finaincial overreach could happen again.
THIS IS THE REPUBLICAN POSITION
Foreclosures remain high and
devalued properties are being sold to subsidized first time home buyers
rather than back to previous owners. Bankers talk about moral hazzard
while being bailed out by taxpayers. Meanwhile, bankers won't loan to
small businesses. A NICE HYPOCRITICAL, REPUBLICAN TOUCH
The inadequate stimulus package, which was supposed to jump start main
street, has been largely held back, keeping unemployment high and wages
suppressed. THIS IS THE REPUBLICAN POSITION
While Obama promoted
health care reform, he has flip flopped on the mandate and soft peddled
the Public Option after letting single payer become a non-starter. He
has even caved on the Medicare buy in so there is no meaningful cost
containment in the Senate version of the bill while requiring everyone
to sign up for increasingly expensive, private insurance plans.
Combined with taxpayer subsidies, the retention of the insurance
industry anti-trust exemption and denial of drug reimportation, this is
a Republican dream. Unless a robust Public Option is included to
provide real cost competition, and that seems doubtful, this is VERY
REPUBLICAN.
After many meetings, Obama has decided to add 30,000
or so troops to the Afghanistan warfare. Aside from the likes of George
Will and Pat Buchanan, this is THE REPUBLICAN POSITION
After pleging to scrap the earmark extravagance, Obama
will sign the
budget bill which is bulging with them. This goes right to Obama's
biggest priority failure--to attack congressional corruption. VERY BUSH
LIKE AND DOWNRIGHT REPUBLICAN
The weak cap and trade legislation to
do something about carbon dioxid emmisions has gone off the radar
screen while evermore people lose the shoreline they have lived on.
South sea islanders and a huge number of Bengladeshes are being
disposessed by the rising sea levels and will suffer more. Obama
brought nothing to Copenhagen and seems, aside from rhetoric,
relatively unconcerned. The callousness and irresponsibility are
mainstream REPUBLICAN.
And while stating that no one is above the law, Obama refused to
prosecute GW Bush, Dick Cheney and high administration officials for
their war crimes, if nothing else. His justice department has even come
to the defense of John Yoo, who wrote up justifications for torture.
This wouldn't pass the Nuremberg smell test. It
reenforces the
double standard in our so-called system of justice. REPUBLICAN BEDROCK
But it's not just the major issues that make one wonder. The new
transparency that he touted has never come about. No insistance on
ending behind closed door meetings and the administration even wouldn't
allow a social secretary to testify about a couple of party crashers.
Yet the survellience of Americans continues in the name of homeland
security. QUITE REPUBLICAN
"Don't ask, don't tell" is still in order. Obama has been silent on
anti-gay marriage initiatives across the land, selling out his
homosexual supporters. REALLY REPUBLICAN
The administration has
gone soft on China's human rights violations and support for repressive
regimes in Sudan and Burma. Corporate profits come first. CORE
REPUBLICAN
Nominating judge Sotomayor for the Supreme Court was a
2 for 1, no brainer. It didn't change the liberal-conservative
composition much and Obama is unlikely to get the chance to move it
back to the center. One wonders if he would if he could.
Immigration reform awaits. Given the exposed disfunction the last time
Congress addressed the issue it is unclear where he, deferring to that
corrupt body, will stand.
Obama bought 2 car companies with our
tax money but has failed to raise gas taxes, the surest way to force
more fuel efficient vehicles to market. The revenue could be recycled
to compensate for the pain. Raising any taxes of any kind gives
Republicans talking points while they rail against deficits. Obama lets
them get away with that kind of hypocrisy.
While supposedly
concerned about the deficits and debt, Obama has not proposed a tax on
financial transactions which would reduce speculation adversity. THAT'S
REPUBLICAN POLICY
The bureaucratic incompetence which allowed the
underwear bomber to board an international flight is right out of the
9/11 playbook. VERY BUSH LIKE
It should be clear that President
Obama has acted much more like a Bush/Republican than providing the
change we need and hoped for. What is supremely ludicrous is that while
all this is going on the right wing propaganda purvayers are calling
Obama a socialist and spouting that the country is going to the lefty
dogs! The factually challenged tea baggers rail at anything Dick Armey
tells them to and we seem to have become inured to the hypocisy,
duplicity, distortion and mendacity that comes from the likes of
Limbaugh, Beck, Palin, the Cheneys and right wing morons. If
pronostigators are to be believed, Dems are in trouble in November when
it is the steadfast, nihlistic party of NO that has brought about the
extortion payoffs we have seen in the Senate to get what could have
been real, affordable, life saving health care reform on the books.
With Republican help we could have pollution reduction legislation and
more clean energy independence. Without Republican scare mongering we
could have had more people working to rebuild our deterioriating
infrastructure. We could be rebuilding the middle class with steeply
progressive income tax reform. We could be restoring the esteem of
congress by at least weeding out those most obviously corrupt.
But Obama has all along shown himself to be a true Democrat in one
regard. No spine. No willingness to get tough; to calling out
individual congressman and publicly indicting them. No willingness to
fight back against those who distort and lie. The right gets an
administration pass. The VP would be ideally suited to be a counter
attack dog while Obama seemed cooperative but Biden has been kept
muzzled. Republicans play political gutter ball while Obama just
absorbs the punishment. That is a prescription for a well deserved
rebuke and he and his administration are courting outright failure by
not keeping the spotlight on where it belongs while bringing forth the
liberal agenda this nation so badly needs. And if not the best orator,
the observably most intelligent, presentable "Democrat" we have seen
since John Kennedy, if not ever, who will begin restoring America?
Apologists need to see the reality and toughen up or we all (except the
super rich) go down the drain.
December 31, 2009
JBM
GO BACK TO TOP
As this is written, President Obama has moved to bring
the
captured 9/11 conspirators to trial in N.Y.. This process will drag on
for years but at least it is a start. Meanwhile congress has picked its
way towards an inadequate health care reform bill with little input
from the president. Unemployment remains high and some are calling for
an administrative shakeup.
But the 3 most important issues have never been addressed by Obama nor
mentioned seriously by anyone else (at least not lately). This myopia
has and will cripple his administration, relegating it to
insufficiency, however better than Reagan and Bush. And the detriments
mount.
Reagan's--government and regulation is bad--dictum opened wide the door
to corruption and the ruling class has taken full predatory advantage.
The body most able to deal with it, Congress, has instead become the
core of it. Bribery is a felony whether dressed up as large campaign
contributions, future private sector job assurances, plane rides,
junkets and perks or just camaraderie with suck up lobbyists. And until
laws and regulations are severely tightened, indictments brought,
trials completed and long prison sentences handed out to the majority
of congressmen, no efficacious legislation will be passed
uncompromised. Raw pork is used to buy votes, corrupting
constituencies. Earmarks should always have to pass with exposure and
majority votes. This is a cause that both the right and the left can't
legitimately argue with yet Obama has been silent.
Economic stimulus and real health care reform, among other pressing
problems, are being curtailed by mounting concerns over America's
deficits, debt and unfunded obligations. However, as Ellen Brown has
pointed out, there may be a solution. Each year, our government borrows
money from the Federal Reserve, which represents big banks, in order to
fill in the gap between revenues and expenditures. These banks don't
have that money laying around in their vaults, they create it by making
an accounting adjustment on a computer screen. It is created out of
thin air. Well why not just create the money, backed by the pledge of
tax payers, directly and save all those interest charges which will
soon become politically too burdensome to honor? In fact, why not buy
up our debt with fiat money, retire the bonds and regulate how much of
that income can be lent in order to control any inflation? If major
banks, some of which are really insolvent, collapsed without that
federal interest then let the government take over those banks and lend
from the government presses if necessary. Socialism? That is just an
empty pejorative if the actual circumstances are beneficial. As long as
supply matches demand, and there is plenty of under utilized supply,
what with double digit unemployment and empty commercial real estate,
proper stimulus spending can rejuvenate our producers. Our founding
fathers and the Lincoln administration issued fiat money to conduct our
wars; it's not like this idea hasn't been implemented before. The real
question about this too good to be true proposal is why has no one even
mentioned it? Why hasn't Obama at least released a few trial balloons?
It may be our only way out. Of course if he too has been captured by
the banking industry as apparently the major media has been...
Finally, given all the talk about global warming and the less vocalized
concerns about pollution, species extinction, deforestation etc., the
common cause has never been brought up, let alone addressed. WE HAVE
TOO MANY PEOPLE ON THE PLANET! HELLO. Anybody home?
Arguably, the most we can handle over the long term is about 5b. We are
now at 6+b and heading towards 9b. Malinda Gates (Bill's wife) has
mentioned that reducing disease reduces birth rates as mothers believe
their children will reach adulthood. Still, the projections haven't
changed and all those surviving children will grow up to produce more
children. Certainly, educating girls (including sex education for all)
is one way to reduce unwanted population growth. But there are others,
including more death penalties (without all the time and expense) for
criminal behavior. Just be sure guilt is certain. Penalize women for
having more than 2 children. Make sure that men have condoms handy.
Don't discourage homosexuality. Things could be done to help head off
an upcoming ecological calamity. But Obama is silent again.
From the "little" things like "don't ask-don't tell" to the largest
problems, President Obama has demonstrated thus far that real change is
not coming from his administration. His lack of spine and progressive
leadership (the Democratic malaise) is just going to pave the way for
the criminal party, (otherwise known as the Republican party) to get
back in power. This country can't stand any more of that.
November 20, 2009
JBM
GO BACK TO TOP
The American voters decided to take a big chance in
choosing
Barack Obama as our new president. His command of the issues and
felicitous presentation was charismatic and the rhetoric struck at the
cords of momentous frustration and discontent stemming from the
horrendous GW Bush administration. "Radical" change was desired and
Obama talked a good game. Track record--not required.
Now, 9 months into his term, there is evident a wide and growing
separation between the well chosen words and the inaction, or lack of
accomplishment thus far. The liberal natives have become restless with
just cause.
When Obama came into office the economy was in danger of collapsing,
pulled down by the weight of the precarious financial sector. The
bailout money for our big banks was parceled out, a $700+b stimulus
bill was passed and some of that money was used to secure jobs as
unemployment increased. However, the public, even the major media, has
sensed that recovery on Wall Street is not translating to recovery on
Main Street. This should not be surprising given that Obama surrounded
himself with Geithner, Summers and others cozy with the financial power
brokers who got us into this mess. No James Galbraiths or William
Greiders close enough to whisper in Obama's ear. The result? Big banks
consolidating without too big to fail regulation, huge bonus awards
tempered by an appointed paymaster for only a few corporations that are
largely owned by the public, unemployment that isn't falling,
increasing foreclosures and hardship for many in the bottom 90%. And a
federal debt so massive that it can never be repaid under any
conditions we can imagine.
Virtually everyone knows that our banks and other financial
institutions need to be reregulated. Supposedly some legislation to
that effect is working its way through congress but "no one" believes
that such a corrupt body will pass adequate regulatory legislation and
enforce it. Obama should have been clear and decisive about tieing
bailout money to specific reforms. After talking about the need for
transparency months ago, we now find obscurity.
As to the stimulus: it is clear that the roll out has been tardy. Obama
campaigned on using federal dollars to insulate older homes, a 4 win
proposition: it would provide jobs that didn't require extensive
training, it would free up working class, home owner (or renter)
discretionary spending, it would reduce pollution and our dependence on
oil exporting countries which don't usually have our best interests in
mind. Yet the summer has passed and no significant achievement has been
accomplished here as we go into another winter. No reasonable excuse
has been offered. One can't help but think that much of the stimulus
has been held back for the 2010 election year. Given the intervening
suffering that has accrued, that would be deplorable.
The other major 2009 objective of Obama's administration has been
health care reform. The congressional wrangling over the lives of
thousands of Americans who have died for lack of access to primary care
demonstrates just how compromised Representatives and especially
Republican Senators are. Max Baucus is the poster boy for the bought
and paid for legislator. Harry Reid is still futzing around, amply
demonstrating that his reelection is more important to him than real
reform. Everyone knows that the only option to holding down insurance
company gouging is a good, available public option. Still, Obama too
has waffled on it all summer and fall. That's not leadership. And it
certainly isn't helping that he hasn't gone after the recalcitrant
Senators, one by one, to wake up voters in those states. This isn't a
marshmallow roast, this is political/economic warfare and the corrupt
and greedy don't care how many citizens they kill.
One legislative divide has been how to pay for universal coverage. The
House has the answer; tax the rich. Obama? Silent. And Obama could have
picked up additional revenue by supporting a gas tax increase which
would spur more interest in fuel efficient vehicles and reduce global
warming. Another opportunity missed. Obeisance to big oil? One has to
wonder.
If justice delayed is justice denied then Obama has gotten off to a
discouraging start on these 2 signature issues. But thanks to the Bush
administration and the last 30 years of Republican rule, our president
has a lot more to do.
October 23, 2009
JBM
GO BACK TO TOP
As things stand now it looks like there will be no real
health
care reform coming out of congress for the foreseeable future. Not only
are the congressional Republicans adamantly against affordable,
universal coverage but many Republicans, who call themselves Democrats
("blue dogs"), are also content to see a continuation of big business
control of our nation's health.
This was made quickly evident by Senate Finance Chairman Max Baucus
dismissing a new single payer system from the start even though such a
system had popular support in opinion polls. The fact that he had taken
so much campaign money from those who would lose out from such a system
has been considered by major media as nothing more than typical
congressional conflict of interest. No call for his removal has been
made from any quarter. No lists of other Senators and House members who
have received big contributions from the affected private health care
parties, and their excuses for doing as little as they can politically
get away with, has been promulgated by our most watched news sources.
Appropriate funding sources, such as taxing those who make over a
quarter million dollars a year, are getting rolled back to millionaire
income status while President Obama's idea of capping tax deductions of
the rich has apparently died. Then some of the same obstructionists say
there isn't enough money to pay for a universal plan.
And while corporate congressmen claim they need more time, Senate
majority leader (if he can be called a leader) doesn't give the Senate
time, in August, to pursue their stalling tactics. Senate
vacations are more important than American lives.
Obama himself has contributed to the grinding halt to reform in 2 ways.
First he hasn't put forth a simple, specific plan, which would include
a public option, together with a concrete funding proposal.
Consequently, many congressmen are justifiably caught up in confusion
especially with all the lies and distortions put out by opponents. In
Washington and in the right wing media venues, there are no sanctions
for misleading congressmen or the general public. Second, Obama hasn't
even started naming names and the contributions of those who are
looking to slowly kill reform while hundreds of Americans die each week
for lack of basic care. The media never finds these people and presents
the statistics so dupes and despicables promote the idea that a
government plan must be worse even while private insurers reveal record
profits which come from the suffering and early termination of the
unfortunate who can't afford insurance.
Now comes the Professor Louis Gates front door flap which serves as a
convenient distraction to the real outrage. Why so much has been made
about a local incident where no one was killed or injured or jailed
should cause wonder. Some see this as picking up on a simmering
national emotion involving racism and bigotry in general. No one has
mentioned that it is 1 of 2 (the other being sexual misconduct)
phenomena that the general public can understand. Talk of a "national
discussion on race" is beyond pie in the sky.
Though frustrated, Americans won't or can't comprehend the complexities
of health care and the "back room" deals and bribery ties involved. And
don't look for Curic, Gibson and Williams et. al. for help when they
can prolong the entertaining distraction. After all, successful reform
might just spread out to the media industry. Heaven forbid.
July 26, 2009
JBM
It has been previously argued on this site (see the
AMERICA'S
FUTURE link etc.) that the overall decline of intelligence (a
combination of growing ignorance and stupidity) of our population, at
least in relation to the growing complexity of modern life, is
propelling the decline of the United States as a world leader, moving
us further and further away from our perceived potential. Three recent
examples underscore the contention.
The first is the Sarah Palin saga. Over the last year she has come to
the fore of the Republican party and has drawn the admiration and
following of a large contingent of the right. No matter how dumb she
appears in her answers, no matter how many lies she tells, no matter
that she has shown no command of any of the major issues confronting
the country, that following persists. It persists even after quitting
her position as Alaska's governor while telling a national audience
that she is not a quitter! As explained by Thomas Frank in What's
the Matter With Kansas
it seems that heartlanders, in particular, are suspicious and resentful
of anyone who seems to convey command of abstract subject matter. Palin
is physically attractive but has shown no such signs, just the right
combination for these types whose priorities (an aspect of
intelligence) are so revealing.
The second example is all the hoopla over the death and memorial of
Michael Jackson. This was not a great statesman (as if we had any),
this was not a great teacher, engineer, need filling businessman,
inventor, efficacious investor, doctor or general, this was an
entertainer, someone who maybe gets attention at the end of the day
when the work of building and maintaining a healthy society is done. He
was never rated as a great singer and although he pioneered dance moves
his later life didn't warrant role model status to say the least. Yet
with the outpouring of grief and speculation one would think he was
practically the most wonderful man of our time. And the major TV media
outlets hyped it up all they could (except PBS) in order to keep us
distracted from real events and stories (as explained by Kathleen Hall
Jamison on the PBS Newshour). Once again the priorities of a
substantial portion of our population were exposed as defective.
Finally, but by no means exhaustive, we have seen the recent story of
GM's emergence from bankruptcy and the hot sales of their new muscle
car, the Camarro. Not only is this not a break through gasoline
reduction car but it is an awful investment coming at a time when we
must make smarter choices with our limited resources. A new vehicle
loses thousands of dollars as soon as it is driven off the car lot. It
is designed to be as costly to repair as car makers can get away with.
Constant design changes make new cars "obsolete" as soon as possible.
The smart vehicle buyer would find a reliable older model in good
condition (or fix it up) and maintain it over the long run. The money
not wasted on soon to be scrap metal could be invested in R&D,
education, mass transit, renewable energy etc., projects which would
have further payoffs in the future. This has been known since the days
of Vance Packard.
Granted these examples do not pertain to the majorities of our society
but when combined with downgraded formal educational resources due to
budget cuts and tuition hikes, along with the growing dominance of the
distraction media, all in the face of increasing complexity, the case
for intellectual incompetency led national decline is increasingly
secure.
July 12, 2009
JBM
Apparently we are going to be distracted by media
coverage of the
verbal gauntlet Sonia Sotomayor will be run through in her Supreme
Court confirmation hearings this summer. The protestations and
denigrations coming from the right wing assassin squad started as soon
as her name was announced. Many of the condemnations stem from an off
hand remark she made at a gathering in which she said that she would
hope that a wise, experienced Latina would make better decisions than a
white man. Jumping on this old, spontaneous utterance clearly denotes
that critics have very little to stand on. However, her defenders seem
to have missed the salient points of the statement.
She compared
a wise person with one who may not be wise. Other things being equal,
one would naturally not only hope but expect that the wise one would
make better decisions than one with questionable wisdom. But the key
word here is "hope". Sotomayor did not say that the wise Latina would
make better decisions. She did not say that she would expect that the
wise Latina would make better decisions. She only "hoped" that would
occur. The same sentence could be interpreted as saying she was afraid
this might not be the case. Then what? Would the blowhards indict her
as being anti-Hispanic? This expressed "hope" in no way makes her a
racist. She might also "hope" that none of her decisions would be
minority opinions but that doesn't mean it will happen nor does it
connote a superiority complex.
That said, there is no question that she was selected for political
reasons. President Obama gets a two-for here, quelling not only women's
groups but also the Latino quarter. Serious Republicans would drive
both contingents further away from the party by voting against her
confirmation (regardless of qualifications). It is a reversal of the
Justice Thomas ploy in which the left couldn't very well vote against a
black without alienating that voting block, regardless of his judicial
philosophy. It's-back at you-politics. Given that no white male was
given serious consideration, regardless of qualifications, this was
clearly an "affirmative action" pick. The left should not try and deny
the obvious. Now, having pacified both groups, Obama has a wide freedom
of choice, should he get another chance to nominate a potential
Justice.
That said, Sotomayor may well be qualified to serve on the court. No
credible critic has put her outside the ball park of judicial
competence. Republicans moved her up the judicial ladder to the Federal
Appeals level. And given the unwillingness of candidates to say
anything substantive in the hearing process we will not know if she was
one of the very best possibilities until we see her Court decisions. It
is take your chances once again, given the outrageous, smearing
disservice that goes on, mostly from the right.
And there is another bonus for Dems here. Given that many Republican
Senators, who want to get reelected and need female and Hispanic
support, will vote to confirm, this will further split the purists from
the big tent, right wing side. Thanks Rush, Carl and Newt.
No one expects that Sotomayor will not be confirmed. So
let's not
pay any more attention to the fulminations and the drawn out
confirmation process which gives Senators air time to posture. There
are too many other crisis to focus on. May 31, 2009
JBM
President Obama has been in office for over 100 days,
an
arbitrary milestone which generates media appraisal. And it has become
clear that his campaign for real change has developed some troubling
fissures calling into question his real commitment. Let's look at some
particulars.
In foreign policy: Obama is following course in Iraq but has
disappointed the left with his bump up of troops for Afghanistan.
Appointing Richard Holbrooke was the best choice to oversee the region
but no answer has been found to buck up the Pakistani leadership in its
less than all out efforts to kill off the Taliban. No progress has been
made in "talk therapy" with Iran nor in dealing with the new right wing
government of Israel. In his railing against North Korea he stated that
"words must mean something" but his words changed no course there.
China remains an obstacle in reducing repression in Africa and
Southeast Asia, as well as Tibet, yet Secretary of State Clinton put on
an embarrassing performance in not even criticizing the Chinese regime
which mitigates our sanctions against Bashier in Sudan. It took the
International Criminal Court to issue an arrest warrant and he answered
by kicking out 10 aid groups in Darfur. The terrible plight of citizens
in Zimbabwe under the thug Mugabe is ignored.
Our president can't even get cooperation in Europe for more government
spending stimulation to counter the world recessionary slide. In short,
although he has regained popular support for America, which is no small
achievement, he has little to show for it.
In domestic policy: Obama still hasn't sorted out the repeated
dichotomous statement that "no one is above the law but I am looking
ahead" or words to that effect. However, it does seem that he wants to
leave Bush administration officials and the former president and VP
outside the criminal justice system even though most Americans want an
investigation and perhaps prosecutions. Rule of law has no meaning if
violators are not put on trial. Thus far, Obama has overstepped his
position by stating that CIA operatives should not be prosecuted while
maintaining that it is the Attorney General who decides who is
indictable or not. Obama violates his oath of office (to uphold the
law) every day this foot dragging lingers. It is impeachable.
And trying to get Republicans on board his agenda has proven to be a
dismal, almost absolute, failure. He hires some old hands that were
responsible, in part, for the economic problems we are now confronted
with. A lobbyist is hired when it is convenient despite pledges to do
otherwise.
It seems that huge bonus contracts for the financial sector are
sacrosanct but auto union contracts and bond holder claims are to be
ripped up in negotiations or bankruptcy court. No one is held
accountable for the disappearance of bank bailout money. Bankers
foreclose on underwater home owners while they grab for tax money. No
earmarks are allowed but the budget bill is loaded with them. And why
aren't we hearing about federal stim money paying for working class,
home owner insulation installation by now? And every day the planet
gets a little warmer.
It will be interesting to see if Obama can get upcoming major
legislation through the Senate, even with 60 so-called Democrats. As
long as both parties' congressmen are taking bribes it is unlikely that
really beneficial change can take place. So far, playing Mr. nice guy
hasn't worked very well.
People currently reject the party of "no" but that won't last unless
and until some of these developing cracks are closed. Although Obama
has accomplished a lot in tone, there is still heavy lifting to be
done.
May 6, 2009
JBM
GO BACK TO TOP
BOSS Limbaugh has spoken. He has come out and stated
what
Republicans and Conservatives are quietly hoping for and believe. The
right cannot get back into the White House and control congress if
President Obama's domestic policy looks even largely successful. They
know that most Americans hold them responsible for the economic damage
that we are living through. They know that their trickle down,
deregulation dogma is now as bankrupt as underwater mortgages. But
Obama is too popular to attack personally. That, at least for now,
isn't gaining any traction. So the shift from personal attack
(questioning his place of birth etc.) to trumpeting that Obama's
spending agenda will fail to what?; stop the slide into depression and
less spending won't? However, they say, big spending certainly will be
indebting future generations (with the likely prospect of tax hikes for
the rich, which is what they are really afraid of). Forget that a
declining economy will reduce revenues needed to pay off even current
debt.
So Republicans are standing against sufficient government spending to
deal with the growing unemployment numbers and business failures. The
tax cut mantra still prevails. But studies show that spending on
infrastructure is better than tax cuts for gaining jobs. Still, RNC
Chairman Michael Steele publicly states that government spending won't
create jobs even as private contractors are hiring in anticipation of
federal dollars coming in.
But, so far, media interviewers have not held Republican "leaders" feet
to the fire. If they want Obama's stimulus policies to fail (and almost
all Republican congressmen voted against his stimulus legislation),
they necessarily want the country to fall into depression. MAKE THEM
SAY IT. [There is no other choice. The economy isn't going to turn
around on its own.] After all, if over 2t of wealth has evaporated and
an organization of engineers has determined that we are up over 2t in
needed infrastructure work, then the "meager" 800b stimulus package,
laced with Republican backed tax cuts, is already wholly inadequate.
Major economists are already citing this short coming. What with half
measures taken against big banks, which should be nationalized, and
might be if it wasn't for the left over dogma of "privatization is
better", chances are very good that the rescue plan will stabilize
America at a substandard level. We will become known as Japan II. And
that doesn't even account for world circumstances and their effects. If
anything, we need more government spending to pull the world out of the
spiral of economic decline. IF THE RIGHT HAS A BETTER, VIABLE PLAN,
CALL THEM OUT ON IT. IN DETAIL. OR SHUT UP (in other words ignore
them). Certainly they don't since all they really stand for is giving
to the rich. That is why all they say is no.
On the other hand, it is time to stop letting Obama get away with his
contradictory statement on indicting Bush administration officials for
their misdeeds. If no one is above the law then prosecuting those who
break the law is mandatory. If he is just looking ahead then he is
necessarily continuing the legal double standard by letting the elite
get away with their alleged crimes. If that is his intent, MAKE HIM
ADMIT IT. [He can't credible have it both ways.]
If not, it is time to pin him down to a timetable for the attorney
general to indict. After all, Holder has testified that water boarding
is torture (let alone all the other instances of "enhanced
interrogation") and Bush and Cheney have virtually, openly admitted to
ordering it. Same for warrantless wire tapping. The time is fast
approaching for perp walks and orange jump suits. He can't continue
putting this off or justice will be denied. That would be unforgivable.
America needs the clarity and the cleansing. It is clear that Obama
isn't going to get Republican cooperation anyway so there is nothing
politically to lose, especially when the polls show that we want
justice. Now.
March 6, 2009
JBM
GO BACK TO TOP
Since last fall, if not before, the U.S. federal
government has
been trying to revive the economy after the virtual collapse of the
financial sector. Untold hours have been spent discussing ways to
recapitalize the banks and get them lending again, stop the declining
value in the housing market and halt increasing unemployment, as well
as stopping the hemorrhaging deficits and soaring U.S. debt because of
stimulus program outlays.
But 2 ideas that may help restore stability and order have been
summarily dismissed from evaluation. The first refusal is a left over
from the Conservative, Reaganite philosophy, now bankrupt, that the
private sector can always manage economic affairs better than the
government. Even after the egregious over leveraging of the banking
system which even surprised former Fed chairman, Alan Greenspan, it is
still accepted as an article of faith that banks should not be
nationalized, or at least not for more than the shortest periods of
time. Bank boards and executives should not be government employees
under any permanent circumstances. But why not?
Let's put this contention to the test by either taking over a major
bank that cannot pass the coming stress test or starting up a public,
commercial bank from scratch, with the same regulations as its private
competitors and see who comes out better after 10 years. If the public
bank held its own or better it would blow a huge hole in the
conservative dogma of private supremacy; therefor Republicans would be
dead against it and try to undermine a public bank at every turn. This
would certainly involve trying to influence who was put in charge. But
Dems, in control of the White House and Congress could get
uncompromised people running things for at least 5 years. Influential
Congressman Barney Frank, head of the House banking committee, would
likely be prominent and enlightened in the selection of managers and
the ongoing oversight of efficacy and fairness. Why not at least air
this option out?
Another question stems from the asset loss in the stock and housing
markets etc.. Those assets could have previously been converted into
cash. Why not just print money to make up for what has vanished? This
could be done by filling the federal treasury with new money. The risk
of perceptive default would be reduced so Treasury bills would command
higher prices and/or lower interest payments. Those that now hold
T-Bills would likely suffer diminution in value but could that would be
net mitigated by a return to quicker prosperity. Liquidity
inflation>hyper inflation would be unlikely since the new money
would be just replacing most of the lost currency. The stimulus program
could even be enlarged to adequately replace the loss of demand which
would restore more jobs and return us to the virtuous cycle. This would
help restore confidence in the economic system and that undermined
confidence is the major stumbling block to recovery. Such a move would
have to be limited to a truly crisis circumstance but that is what we
have now. Why has virtually no one given this option serious
consideration? If these options are not viable then let's bring them up
and dismiss them in an convincing manner.
Finally, as most attentive observers understand, the rest of the world
is coming down with us. And in this age of globalization it is doubtful
that any national economy can fully emerge from recession by itself.
Therefore, and for other neglected reasons too, it is time to start a
campaign for a world global summit to bring together new economic
relationships pertaining to fair trade, monetary and fiscal policy,
banking regulations and so forth. A new Brettin Woods. Hammering out
such agreements would make solving our national crisis seem like
recess. But it must be done and the losers from any new agreements must
be brought on board--or isolated. The new administration probably knows
this but is concentrating on our domestic concerns. That may be putting
the cart before the horse. The world public needs to be prepared for
this reorganization eventuality--now. Let's see some serious talk about
it in the media and get the world leaders moving.
February 24, 2009
JBM
GO BACK TO TOP
Generally, in modern times, the newly elected U.S.
president has
been given a 100 day to 6 month "honeymoon", a time when the opposition
party would hold fire and give the new man a chance to see what he can
do. But given the crucial and enormous, pressing problems inherited
from President Bush and the high expectations President Obama has set,
this normal period of relaxation has been scrapped. And the
congressional Republicans left in congress have made it clear that they
intend to undermine any of Obama's attempts to start turning the
falling economy around. Rush Limbaugh has openly stated that he wants
Obama to fail (and the country to go into depression) in order to get a
right winger back in the Oval Office in 2012. And if House and Senate
Republicans don't agree, they haven't shown it by their words or
actions.
Given that the demand hole, as cited by the Congressional Office of
Management and Budget, is something like 2t, it seems quite likely that
the Obama/Dem stimulus plan of something like 900b would likely be only
a half measure of correction. And since spending on projects has more
return than tax cuts, one would think that any rescue plan would be
almost all spending. If nothing else, at least we would have the
infrastructure improvements we sorely need and states would have the
money to save public service jobs.
But in his endeavor to make nice with the right, Obama, and Dems, have
caved and agreed to an even smaller plan (789b) with a bigger
percentage of tax cuts. And still, all but 3 Republican Senators voted
against the rescue plan. When accused of a "do nothing" position while
the economy melts down, defenders such as George Will countered that
that was a false choice. Republicans did have a alternative plan (which
Will didn't mention at the time on This Week),
one which Senator McCain proposed. It was for 400m and was largely
composed of tax cuts--like those which melted into the wood work last
spring. From what almost any objective observer can discern, it was a
proposal designed to fail. [Imagine if he was the president.] Indeed,
while a few Republicans have been taking credit for provisions they
inserted in the bill they were supposedly shut out of and voted
against, most congressional Republicans and Governors have succeeded in
pasting failure on any viable economic upturn package. And they will
equate that failure with Obama himself.
Now, after the too vague, bank rescue plan, promulgated by Tim
Geithner, a mortgage bailout plan has been introduced. It has tried to
tease out the proper from improper home buyer support, something that
can only be done accurately by an objective party in each individual
case. And make no mistake, this is a triage plan. Pertaining
regulations will undoubtedly leave some injustices behind on either
side of the narrow line of appropriate adjudication. And Republicans
are going to play up those inequities to justify their rejection of
this plan too. Those who feel that they are footing the bill for the
less prudent need to be reminded that reducing foreclosures raises
neighborhood property values, including their own homes. Not only that
but producing a housing price floor is a prerequisite for beginning an
economic upturn in general, as financial uncertainty is big reason for
the recession.
Summing up all the federal bailout spending will threaten the viability
of the dollar. We are still trusted to pay back those buying T-Bills,
but for how long? It will be an enormous burden on future generations,
however, if we don't get the economy roaring back the tax revenues
won't be there to avoid rolling, virtual bankruptcy and/or uncontrolled
inflation. If you haven't already, you can start gritting your teeth
now. Thanks Bush.
February 19, 2009
JBM
GO BACK TO TOP
The 8 year reign of political malfeasance, corruption
and
feckless incompetence is finally over. The tally of Bush administration
failings has been written and will continue to be updated for years to
come as the down the road consequences become better known. But
tomorrow the burden is placed on Barack Obama to begin to change course
back toward an upward track. There is vital work to be done at every
turn.
His initial, primary goal is to begin to reverse the deepening
recession. He has laid out a general theme to rebuild our crumbling
infrastructure and provide jobs but specifics have been wanting. As
always, Republicans want tax cuts so that the rich may benefit (if they
can get away with that-again) and the rest of us can buy necessities
and unnecessities like bigger screen TVs and electronic gadgets and
software, pricey cloths, better furniture, stocks and lots of stuff
from China. This is not investment, it is largely wasteful spending on
feel good items and it is this kind of profligacy that has mired us in
our present circumstance.
Now is the time to reverse the "bad government" cut taxes, Reaganomic
tag and use those tax revenues we should have had to invest in public
works; the kind of improvements and innovations that the private sector
won't touch now but will build on later on. However, we don't have
those revenues and so Obama and the country must gamble that monstrous
deficit spending won't drive up interest rates which would dampen
growth. Not overcoming deflation and job loss will just decrease
federal revenues and grow the debt. If the gamble doesn't pay off we
will slide into depression and much of the world will join in.
Critics of such spending tell us that it will take too long to see
results. But there is a lot of spending that will have beneficial
effects right away or shortly thereafter. Pumping money out to states
and counties will reduce public sector job loss and may initiate
rehiring for positions that are needed but were lost. Contractors can
quickly add work crews to repair roads and paint bridges. Insulation
and energy efficient windows can be put into older housing stock
thereby permanently saving residents money on heating and reducing
America's energy vulnerability. DSL lines can be added to existing
telephone services. None of these jobs require much training or new
permits and studies. And all of them can demonstrate tangible evidence
that the process is working and that things are getting better, which
will buy the new administration more approval time.
Improving health care efficiency and building new electric transmission
lines, as well as energy farms will take more time as will replacing
schools and other public structures. Rebuilding our water and sewer
lines won't make as much of a positive impression but will be
necessary. In short, projects must be doled out in a timely and
functional fashion in order to avoid bottlenecks and waste.
A foreign policy engagement blitz is in order and Hillary Clinton will
have a lot to do. The world will welcome a new multi-lateral approach
to our problems. But it will not just entail making peace and helping
those in need, it will also involve thorny and very complicated
international economic regulation and trade negotiations. And we must
join the world in getting serious about reducing global warming. Much
of this will be fine print stuff that most Americans won't understand
or care about--they will just care about the local results. But it is
vital work nonetheless.
And then there is distasteful job that must be addressed if we are to
regain international respect and cooperation. GW Bush and Dick Cheney
must be investigated, indicted and tried not only for war crimes but
for violations of other laws. Administration officials must be charged
and enticed to roll on those above wherever the trail leads. Historians
should have no choice but to forever condemn Bush and company after all
is examined.
Obama wants to bring us together but he risks opening up a divide
between those that believe that the rule of law applies to everyone and
those who believe that big shots are exempt. Obama will lose a lot of
support if he chooses to align himself with the latter. Ignoring
justice may be expedient now but will haunt him later. And after
tomorrow, he can't dodge this and other specific questions any longer.
Finally, given the sober situation he faces, an expensive and
entertainment filled inaugural gala is not appropriate. Bad start.
January 19, 2009
JBM
GO BACK TO TOP
First, looking back on predictions for the past year:
it seems
that John McCain emerged as the Republican candidate for president
after all. And Barack Obama, considered here as too risky a choice (in
2007), nevertheless showed real leadership in winning the nomination
and election. The long primary gave him time to hone his message and
delivery which, overall, were superb. McCain ran an incoherent and
atrocious campaign, capped by his wild pick of Sarah Palin for VP.
Everyone wondered where the real McCain went after last spring.
Meanwhile, Bush coasted through the year, having no clout largely due
to his unpopularity. The fall financial crisis came as a shock (but
with proper information it wouldn't have) and the federal bank bailout
put an end to unregulated, market fundamentalism for the foreseeable
future. However, the cost has already been high (GM and Chrysler almost
went under etc.) and will get worse. Federal capital injection, the
Democratic, Keynesian remedy, has been invoked. The question is can the
government go into much more debt without losing credibility. Economist
James K. Galbraith argues that it can. Led by recession caused falling
oil prices, no inflation seems in the offing as housing prices continue
their down turn and pessimistic consumers pull back. Those who believed
that the middle class had little to fall back on were not surprised.
Look for close to 10% U.S. unemployment by mid year when the Obama
infrastructure-stimulus package begins to take effect.
The TV picture didn't darken as suggested it might but cut backs trim
more at the edges. Next fall, NBC carves an hour off it's prime time
schedule, inserting Leno instead and so-called reality shows riddle the
4 major "free" TV networks' schedule overall. Corruption and the
environment were ignored by congress and the president--that was a safe
prediction. And as suggested, there were no technological, eye popping
breakthroughs, although advances were made on lots of fronts.
No question that the economy will be the focal point of 2009. And not
just in the U.S.. The question is will Obama be able to combat
environmental degradation while working to restore jobs, rebuild
infrastructure and win 2 wars etc.. Global warming, species extinction
and environmental pollution are at a critical stage and the public
needs to be awakened to the sacrifices necessary to slow the worsening
problems. This will be particularly tricky as the full deleterious
effects won't be felt for another generation or 2. And no one in the
main stream is even whispering about the need to reduce humanity by at
least a billion people--right now, as population increases threaten to
overwhelm salutary environmental efforts.
As Tom Freidman notes in his latest book, price points need to be set
to encourage entrepreneurial investment in clean energy. Raising gas
taxes and forcing better gas mileage will be key tests. Given the right
carrots and sticks, we may see surprisingly reduced emission vehicles
coming on the market this year. Other advances are likely in the
medical and communication fields. But we are going to need more food
sources, especially for underdeveloped nations. The oceans are now
critically deficient.
This is going to be a dynamic, vitally important year and there will be
lots to pay attention to. And who knows, Americans might just become
more responsible in this regard.
January 1, 2009
JBM