May 17, 2012 archive

The Liberal Party (Part 2)

Runaway train on entitlement cuts?

digby, Hullaballoo

5/16/2012 01:00:00 PM

I’m afraid we are looking as a scenario in which they’ll end up accepting “tax reform” (another word for tax cuts for the wealthy and corporations) in exchange for tax hikes on the middle class and benefits cuts to social security and medicare. And they will strut and puff and knock themselves over patting each other on the back for being “responsible” and doing the “hard work” of screwing the American people, including the most vulnerable, in the middle of a depression and at a time when their futures have never been more insecure. Heckuva job.

I don’t know what more to say about this. Voting against them will not stop it. Voting for them will not stop it. So far, public opposition will not stop it. Certainly, there’s little reason to believe that the administration will stop it.



Everyone keeps telling me that they will never cut social security and medicare because they’re popular programs. One would certainly think that should be true. So can someone please tell me what they have to gain by pretending they want to? Honestly, I don’t see it either as a negotiating ploy or a public relations tactic. The only thing I can come up with is that they believe the Village hype that they will be “heroes” for bucking the popular will. And perhaps they will be — not in the public’s mind, of course, but Gloria Borger and Cokie Roberts will think they’re just dreamy and Pete Peterson and his pals on Wall Street will surely be grateful.



Democrats know all this. Becerra should have his district offices inundated with phone calls. People should picket and protest. But I doubt it will do any good. They are determined to do this and they aren’t being honest about the reasons why. (Either that or they are too stupid to be in elective office and that’s saying something.) Bill Clinton is one of the most astute students of the budget in the entire country. He knows very well that he is spouting utter crapola. There is no earthly reason for him to do this except as a reflexive desire to appear reasonable to people who loathe the very air he breathes — or appease Pete Peterson and his pals. Actually, in his case, it’s probably both.

This has the feeling of a runaway train to me. The Republicans have worn them down and they just want to get past the election. Sure, they may get some little token of a tax hike on the wealthy in return. But it will be nothing to the sacrifices that average Americans will have to make. Indeed, this whole formulation is fundamentally immoral — tax hikes on millionaires in exchange for poor, sick old people having to do with less than their already meager guarantee is disgusting. Couldn’t we at least agree to fuck over the sick, old people only as a last resort?

I disagree with digby.  Vote against them.

The Liberal Party

DNC Shamed Into Helping Wisconsin Recall, Still Not Committing Funds

By: David Dayen, Firedog Lake

Wednesday May 16, 2012 9:35 am

After some controversy, the Democratic National Committee has agreed to help efforts with the Wisconsin recall. However, this will not include any of the DNC’s war chest of funds, which they are husbanding for the general election.

Debbie Wasserman Schultz, the DNC chair, committed to come to Wisconsin to attend a fundraiser and to recruit volunteers for Tom Barrett’s campaign to recall Scott Walker. In addition, DNC members have been encouraged to contribute to the recall effort. However, the DNC did not pledge funds that they plan to use to support the general election campaign of President Obama and other Democrats in the fall. They certainly have plenty; the President and the DNC just announced that they raised $44 million just in April.



The question becomes whether a recall failure would have consequences for the fall election. The DNC is clearly making the choice to sit out the recall financially, wait for everything to blow over, and come back in the fall. But there could be a ripple effect here, in a key swing state as well as a state with an open Senate seat and a hot contest there. The failure to keep up the recall energy and dispose of Walker could definitely have repercussions. And there are only three weeks to turn it around.

Electoral victory my ass.  What “Democrats” are really interested in-

The Pete Peterson Fiscal Summit and What It Says About Democrats

By: David Dayen, Firedog Lake

Wednesday May 16, 2012 1:03 pm

(I)t’s interesting to me to see who has been seduced by this power. Republicans are basically saying the same things in the era of Peterson that they have been saying for the past thirty years: they want low taxes and less wealth-redistributing programs to the lower classes. Sometimes they say they want “less spending” and a “smaller deficit,” but only when a Democrat is in office, and only in relation to those redistributive policies. The tax cuts blow holes in the deficit, so that’s not a preoccupation for them.



The only tax cuts they would entertain repealing are the ones that distribute funds to the lower classes. For example, in their budget bill, they replaced defense cuts with, among other things, a rollback of the child tax credit, which goes mostly to lower-class and middle-class families.

By contrast, Democrats have moved over the last several decades, under duress from Peterson on having to “be serious” about deficits. One after another at last night’s event, Democratic politicians took aim at so-called entitlements, which I prefer to describe as the social safety net.



I’d like to find the Democrats who are “reluctant to commit to longer-term health-care savings” and who “don’t want to touch Social Security.” Contrary to President Clinton’s remarks, they no longer exist. Even Nancy Pelosi is playing footsie with benefit cuts.

If this doesn’t happen in the near future, it’s because Peterson and his ilk failed to get Republicans to provide cover with any tax increases. But the idea that Democrats are somehow reluctant to get out the budget axe is just wrong. They are far more serious about so-called “fiscal responsibility” than Republicans. In fact, the President on that stage, Clinton, was the one who ended welfare as we know it. We now know, after the Great Recession, the terrible costs to that policy for millions of families. But Democrats haven’t learned from that experience.

So while Republicans are clearly insane about the fiscal future – and impervious to logic, as Tom Coburn showed – the country has drifted to the right because one party has become caught up in pleasing the likes of Pete Peterson rather than their own constituents.

“We have a lot of people in our party who will not be drummed out if they depart from the conventional wisdom,” Clinton said last night. That’s not true. For the conventional wisdom in the Democratic Party is now that “balanced” cuts are needed to the entire budget to move America forward. And if you depart from that… you hear the drums playing, right?

One party.  And it’s not the Republicans, they’ve always been about pleasing the likes of Pete Peterson.

Cartnoon

Porky’s Party

Why the $2 Billion Chase Loss Matters to Everyone

Cross posted from The Stars Hollow Gazette

Felix Salmon, finance blogger at Reuters and Matt Taibbi, of ‘vampire squid” fame from “Rolling Stone“, were guests on “View Point with Eliot Spitzer“, discussing the implications JPMorgan’s $2 billion trading loss and why it should matter to anyone with a banking account at Chase, or any other to big to fail bank.

Taibbi and Salmon agree JPMorgan’s risk-taking has broad implications. “JPMorgan Chase takes deposits in from every single mom and pop, and small business and large business, in the world, and the President of the United States,” Salmon says. “They’re a utility bank and it is their job and their duty … to take those deposits and lend them out into the economy. And what do they do instead? They take $360 billion and put it in a hedge fund in London.”

Jamie Dimon’s failure

by Felix Salmon

Drew’s Chief Investment Office quadrupled in size between 2006 and 2011, reaching $356 billion in total, and it’s easy to see how that happened. On the one hand, it was incredibly profitable, with the London team alone, which oversaw some $200 billion, making $5 billion of profit in 2010, more than 25% of JP Morgan’s net income for the year. At the same time JP Morgan accumulated enormous new deposits in the wake of the financial crisis, both by acquiring banks and by attracting big new clients wanting the safety of a too-big-to-fail bank. Historically, JP Morgan has served big corporations by lending them money, but nowadays, as the cash balances on corporate balance sheets get ever more enormous, the main thing these companies want from JP Morgan is a simple checking account – one where they can be sure that their money is safe.

With lots of deposits coming in, and little corporate demand for loans, it was easy for all that money to find its way to the Chief Investment Office, which could take any amount of liabilities (deposits are liabilities, for a bank) and turn them into assets generating billions of dollars in profits.

Never mind the weak tea Volker rule, what is needed is a new, revised Glass-Steagal, the break up the TBTF and protection for investors and the economy.

On This Day In History May 17

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

Click on image to enlarge

May 17 is the 137th day of the year (138th in leap years) in the Gregorian calendar. There are 228 days remaining until the end of the year.

On this day in 1954, in a major civil rights victory, the U.S. Supreme Court hands down an unanimous decision in Brown v. Board of Education of Topeka, ruling that racial segregation in public educational facilities is unconstitutional. The historic decision, which brought an end to federal tolerance of racial segregation, specifically dealt with Linda Brown, a young African American girl who had been denied admission to her local elementary school in Topeka, Kansas, because of the color of her skin.

Brown v. Board of Education of Topeka, 347 U.S. 483 (1954), was a landmark decision of the United States Supreme Court that declared state laws establishing separate public schools for black and white students unconstitutional. The decision overturned the Plessy v. Ferguson decision of 1896 which allowed state-sponsored segregation. Handed down on May 17, 1954, the Warren Court’s unanimous (9-0) decision stated that “separate educational facilities are inherently unequal.” As a result, de jure racial segregation was ruled a violation of the Equal Protection Clause of the Fourteenth Amendment of the United States Constitution. This ruling paved the way for integration and the civil rights movement.

Supreme Court Review

The case of Brown v. Board of Education as heard before the Supreme Court combined five cases: Brown itself, Briggs v. Elliott (filed in South Carolina), Davis v. County School Board of Prince Edward County (filed in Virginia), Gebhart v. Belton (filed in Delaware), and Bolling v. Sharpe (filed in Washington D.C.).

All were NAACP-sponsored cases. The Davis case, the only case of the five originating from a student protest, began when sixteen-year-old Barbara Rose Johns organized and led a 450-student walkout of Moton High School.

The Kansas case was unique among the group in that there was no contention of gross inferiority of the segregated schools’ physical plant, curriculum, or staff. The district court found substantial equality as to all such factors. The Delaware case was unique in that the District Court judge in Gebhart ordered that the black students be admitted to the white high school due to the substantial harm of segregation and the differences that made the schools separate but not equal. The NAACP’s chief counsel, Thurgood Marshall, who was later appointed to the U.S. Supreme Court in 1967, argued the case before the Supreme Court for the plaintiffs. Assistant attorney general Paul Wilson, later distinguished emeritus professor of law at the University of Kansas, conducted the state’s ambivalent defense in his first appellate trial.

Unanimous Opinion and Key Holding

In spring 1953 the Court heard the case but was unable to decide the issue and asked to rehear the case in fall 1953, with special attention to whether the Fourteenth Amendment’s Equal Protection Clause prohibited the operation of separate public schools for whites and blacks.

The case was being reargued at the behest of Associate Justice Felix Frankfurter, who used re-argument as a stalling tactic, to allow the Court to gather a unanimous consensus around a Brown opinion that would outlaw segregation. Chief Justice Vinson had been a key stumbling block. The justices in support of desegregation spent much effort convincing those who initially dissented to join a unanimous opinion. Even though the legal effect would be same for a majority versus unanimous decision, it was felt that it was vital to not have a dissent which could be relied upon by opponents of desegregation as a legitimizing counterargument.

Conference notes and draft decisions illustrate the division of opinions before the decision was issued. Justices Douglas, Black, Burton, and Minton were predisposed to overturn Plessy. Fred M. Vinson noted that Congress had not issued desegregation legislation; Stanley F. Reed discussed incomplete cultural assimilation and states’ rights and was inclined to the view that segregation worked to the benefit of the African-American community; Tom C. Clark wrote that “we had led the states on to think segregation is OK and we should let them work it out.” Felix Frankfurter and Robert H. Jackson disapproved of segregation, but were also opposed to judicial activism and expressed concerns about the proposed decision’s enforceability. After Vinson died in September 1953, President Dwight D. Eisenhower appointed Earl Warren as Chief Justice. Warren had supported the integration of Mexican-American students in California school systems following Mendez v. Westminster.

While all but one justice personally rejected segregation, the self-restraint faction questioned whether the Constitution gave the Court the power to order its end. The activist faction believed the Fourteenth Amendment did give the necessary authority and were pushing to go ahead. Warren, who held only a recess appointment, held his tongue until the Senate, dominated by southerners, confirmed his appointment.

Warren convened a meeting of the justices, and presented to them the simple argument that the only reason to sustain segregation was an honest belief in the inferiority of Negroes. Warren further submitted that the Court must overrule Plessy to maintain its legitimacy as an institution of liberty, and it must do so unanimously to avoid massive Southern resistance. He began to build a unanimous opinion.

Although most justices were immediately convinced, Warren spent some time after this famous speech convincing everyone to sign onto the opinion. Justices Robert Jackson and Stanley Reed finally decided to drop their dissent to what was by then an opinion backed by all the others. The final decision was unanimous. Warren drafted the basic opinion and kept circulating and revising it until he had an opinion endorsed by all the members of the Court.

Holding

The key holding of the Court was that, even if segregated black and white schools were of equal quality in facilities and teachers, segregation by itself was harmful to black students and unconstitutional. They found that a significant psychological and social disadvantage was given to black children from the nature of segregation itself, drawing on research conducted by Kenneth Clark assisted by June Shagaloff. This aspect was vital because the question was not whether the schools were “equal”, which under Plessy they nominally should have been, but whether the doctrine of separate was constitutional. The justices answered with a strong “no”:

   Does segregation of children in public schools solely on the basis of race, even though the physical facilities and other “tangible” factors may be equal, deprive the children of the minority group of equal educational opportunities? We believe that it does… Segregation of white and colored children in public schools has a detrimental effect upon the colored children. The impact is greater when it has the sanction of the law, for the policy of separating the races is usually interpreted as denoting the inferiority of the negro group. A sense of inferiority affects the motivation of a child to learn. Segregation with the sanction of law, therefore, has a tendency to [retard] the educational and mental development of negro children and to deprive them of some of the benefits they would receive in a racial[ly] integrated school system… We conclude that, in the field of public education, the doctrine of “separate but equal” has no place. Separate educational facilities are inherently unequal. Therefore, we hold that the plaintiffs and others similarly situated for whom the actions have been brought are, by reason of the segregation complained of, deprived of the equal protection of the laws guaranteed by the Fourteenth Amendment.

Muse in the Morning

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Muse in the Morning


Browns

Career of Evil

My Little Town 20120516: Sister Ligouri

Those of you that read this regular series know that I am from Hackett, Arkansas, just a mile or so from the Oklahoma border, and just about 10 miles south of the Arkansas River.  It was a rural sort of place that did not particularly appreciate education, and just zoom onto my previous posts to understand a bit about it.

Hackett schools were horrible when I was going there, so after the seventh grade my parents decided to look for alternatives.  My friend’s parents actually bought a house in a good Fort Smith school district, but there were some domestic issues involved as well and his mum and dad actually preferred living apart.

The only other legal alternative was for me to attend Saint Anne’s High School, the only Catholic high school in town.  Arkansas is only about 3% Catholic, so even to have a Catholic high school was sort of amazing.  The problem was that Saint Anne’s started at ninth grade.  We went for an interview and the principal decided that I had sufficient background to bypass the seventh grade.

The Wild West Is Where I Want To Be

“He seldom has any point to make except obvious ones” – The Christian Science Monitor