Tag: TMC Politics

What We Now Know

What We Know: A historically low tax rate for the US

Statistics showed that in 2009, American paid the lowest federal tax rate in thirty years. Chris Hayes and his panel guests shared what they have learned this week. Some of Saturday’s Up with Chris Hayes guests were Mark Bittman (@bittman), food columnist for The New York Times and author of several books; James Carville, lead strategist for Bill Clinton’s 1992 presidential election campaign, and political science professor at Tulane University; Katrina Vanden Heuvel (@katrinanation), editor and publisher of The Nation magazine; and L. Joy Williams (@ljoywilliams), political strategist and founder of LJW Community Strategies.

Share with us what you have learned this week.

Open Thread

How Some of Us Think

Cross posted from The Stars Hollow Gazette

“See better, Lear; and let me still remain / The true blank of thine eye”

Earl Of Kent, King Lear, ~William Shakespeare~

How to Think

by Chris Hedges

Cultures that endure carve out a protected space for those who question and challenge national myths. Artists, writers, poets, activists, journalists, philosophers, dancers, musicians, actors, directors and renegades must be tolerated if a culture is to be pulled back from disaster. Members of this intellectual and artistic class, who are usually not welcome in the stultifying halls of academia where mediocrity is triumphant, serve as prophets. They are dismissed, or labeled by the power elites as subversive, because they do not embrace collective self-worship. They force us to confront unexamined assumptions, ones that, if not challenged, lead to destruction. They expose the ruling elites as hollow and corrupt. They articulate the senselessness of a system built on the ideology of endless growth, ceaseless exploitation and constant expansion. They warn us about the poison of careerism and the futility of the search for happiness in the accumulation of wealth. They make us face ourselves, from the bitter reality of slavery and Jim Crow to the genocidal slaughter of Native Americans to the repression of working-class movements to the atrocities carried out in imperial wars to the assault on the ecosystem. They make us unsure of our virtue. They challenge the easy clichés we use to describe the nation-the land of the free, the greatest country on earth, the beacon of liberty-to expose our darkness, crimes and ignorance. They offer the possibility of a life of meaning and the capacity for transformation. [..]

We march collectively toward self-annihilation. Corporate capitalism, if left unchecked, will kill us. Yet we refuse, because we cannot think and no longer listen to those who do think, to see what is about to happen to us. We have created entertaining mechanisms to obscure and silence the harsh truths, from climate change to the collapse of globalization to our enslavement to corporate power, that will mean our self-destruction. If we can do nothing else we must, even as individuals, nurture the private dialogue and the solitude that make thought possible. It is better to be an outcast, a stranger in one’s own country, than an outcast from one’s self. It is better to see what is about to befall us and to resist than to retreat into the fantasies embraced by a nation of the blind.

If the only real achievement of Barack Obama’s presidency is to have opened the eyes of Americans to the depth of the corruption and control of the elites, then he will have achieved more than I expected.

The Egyptian Game of Chicken: Morsi v. The Miltary

Cross posted from The Stars Hollow Gazette

Egyptain Pres. MorsiJust before the last round of presidential elections in Egypt that put Muslim Brotherhood candidate Mohamed Morsi in office, the Egyptian Supreme Constitutional Court, which is still packed with the Mubarak regimes appointees, ruled that the parliamentary elections were invalid. The ruling military then dissolved the lower house until new elections could he held. Sunday, in defiance of the ruling, President Morsi decreed the the old parliament to reconvene until a new parliament was elected:

The move was the first in a series of decrees planned by Morsi against the military, according to Morsi’s former campaign media coordinator Sameh El-Essawy, a member of the Muslim Brotherhood’s Freedom and Justice Party. [..]

And hints of a deal seemed unlikely after Morsi’s decree, which stipulated that parliament reconvene and continue its duties until a new assembly is elected, scheduled for 60 days after Egypt drafts a new constitution. Morsi’s decree directly contradicts Scaf’s wishes, and underlines his determination to take control of the country’s executive.

Morsi’s decree is a reversal of the Scaf decision to dissolve parliament, not the SCC ruling that deemed it invalid, said El-Essawy. “He reversed the Scaf decision, using the same executive powers they had. He has not reversed the court ruling which he respects and that’s why a new parliament will be elected after the constitution,” he said.

The Egyptian Parliament reconvened for five minutes on Tuesday for just one vote:

The parliamentary speaker, Saad el-Katatny, convened a session of the lower house on Tuesday morning but it lasted only five minutes, during which time he stressed that parliament had the utmost respect for the law, and would do nothing to subvert it. MPs then voted that parliament would refer the matter of its ability to convene to the court of cassation in Cairo, and would not assemble until a judgment had been given.

As the drama was being played out, demonstrators against the dissolution of parliament gathered in Tahrir Square. Meanwhile, anti-parliament protesters congregated on the other side of town in the eastern district of Nasr City to voice their objection to its return.

Tuesday’s assembly was boycotted by a sizable number of liberal MPs while an independent MP, Mustafa Bakri, had already announced his formal resignation from parliament due to its unconstitutionality.

Then just hours after the chamber’s brief session, the Supreme Constitutional Court stepped in

“The Supreme Court has once again reiterated that the parliament is dissolved,” our correspondent said. “It’s the third decsion by them saying that Morsi’s decison to reinstate the parliament was illegal. They cannot say it in any more certain terms than that.”

“They’re saying that the parliament sessions cannot continue, which would mean legislative powers would stay in the hands of the armed forces – in this power struggle between the military and the president.” [..]

Lawyers representing Morsi criticised the court’s latest decision and said Tuesday’s ruling was a political move that would further complicate the crisis.

“This ruling is null and void,” lawyer Abdel Moneim Abdel Maqsud told reporters while another member of the team, Mamduh Ismail, called it a “political decision”. [..]

Morsi’s decree was hailed by those who want to see the army return to barracks, but it was criticised by those who fear an Islamist monopolisation of power as a “constitutional coup”.

As noted in an editorial in the Los Angeles Times, this is just the first of many confrontations between Morsi and the military:

In reconvening the People’s Assembly, Morsi insisted that he wasn’t flouting the decision of the court but rather reversing an executive action taken by the military council in the absence of a civilian president. Indeed, the overarching issue in this dispute is whether the armed forces are prepared to yield power to the elected representatives of the Egyptian people. [..]

To some extent, the military’s power – along with economic realities – may have inclined Morsi and the Muslim Brotherhood to a more pluralist and moderate course. But if the generals overplay their hand, they will lose popular support and antagonize Egypt’s allies, including the United States, which provides the military with $1.3 billion a year in assistance. Both Congress and the Obama administration have put the generals on notice that those funds are in jeopardy if the transition to democracy is thwarted. An attempt to shut down a reconvened parliament would be interpreted inside and outside Egypt as just such an obstruction.

So far, the Mohamed Morsi 0 – Egyptian Military 1.  

Just How Hot Is It?

Cross posted from The Stars Hollow Gazette

It’s been pretty hot across the United States with little rain crops are withering and wild fires rage throughout the West. There is no denying that this year has been really warm. Actually, it’s been warmer for a year now:

According to the NOAA National Climatic Data Center’s “State of the Climate: National Overview for June 2012” report released Monday, the 12-month period from July 2011 to June 2012 was the warmest on record (since recordkeeping began in 1895) for the contiguous United States, with a nationally-averaged temperature of 56.0 degrees, 3.2 degrees higher than the long-term average.

According to the report, every single state in the contiguous U.S. except for Washington saw warmer-than-average temperatures during this time period. The period from January to June of this year also has been the warmest first half of a year on record for the U.S. mainland.

For a large portion of the contiguous U.S., these first six months were also drier than average=Statewideprank&submitted=Submit]. The U.S. Drought Monitor showed that as of July 3, 56 percent of the contiguous U.S. is experiencing drought conditions. In June, wildfires burned over 1.3 million acres, the second most on record for the month.

We need to have better conversations about climate than having hacks like George Will pontificating that “it’s Summer” as though the evidence for change doesn’t exist. Or as The Washington Post columnist Joel Achenbach puts it, Global warming is a fact:

At some point we should stop litigating the basic question of whether climate change is happening. Climate change is a fact. The spike in atmospheric CO2 is a fact. The dramatic high-latitude warming is a fact. That the trends aren’t uniform and linear, and that there are anomalies here and there, does not change the long-term pattern. The warming trend has flattened out in the last decade but probably only because of air pollution from Chinese coal-fired power plants or somesuch forcing we haven’t fully discovered (smog is hardly the long-term solution we should be seeking). The broader patterns are clear.

Models show the greatest warming spike down the road still, decades hence. Thus in a sense, saying that “this is what global warming is like” whenever we have a heat wave actually understates the problem. Having spent much of my life in Florida, I can tell you, what kills you in summer is not the temperature but the duration of the season, which lasts basically forever – into November or even December in South Florida. So, yeah, 100 degrees in July gets my attention here in DC, but so will a stretch of 85-degree high temperatures in October.

This past Sunday, Chris Hayes on his MSNBC show “Up with Chris Hayes” hosted a panel that discussed the recent wave of extreme heat and it relationship to climate change. His guests were Bill McKibben (@billmckibben), author of “Eaarth: Making a Life on a Tough New Planet” and founder of 350.org, a global grassroots environmental movement to solve the climate crisis; Eric Klinenberg (@EricKlinenberg), professor of sociology at New York University and author of “Heat Wave: A Social Autopsy of Disaster in Chicago;” Thomas Mann co-author with Norman Ornstein of “It’s Even Worse Than It Looks: How the American Constitutional System Collided with the New Politics of Extremism“, a senior fellow for governance studies and the W. Averell Harriman Chair at the Brookings Institution; Joan Walsh (@joanwalsh), MSNBC political analyst and Salon’s editor-at-large; and Esther Armah (@estherarmah), playwright and author, host of “Wake Up Call” on WBAI-FM.

Rep. Barney Frank Marries Jim Ready

Cross posted from The Stars Hollow Gazette

Rep. Barney Frank married his partner Jim Ready Saturday in Newton, MA. Mr. Frank met his husband at a fund raiser in 2005 and they started dating in 2007 after Mr. Ready’s longtime partner, Robert Palmer, passed away after a long illness. The modest ceremony took place in the Marriott hotel in Newton and was preformed by Massachusetts Gov. Deval Patrick. Guests included House Minority Leader Nancy Pelosi, Senator John Kerry and Representatives Dennis J. Kucinich and Steny H. Hoyer and other close friends and family of the grooms.

Mr. Frank, Democrat of Massachusetts, became, in 1987, the first sitting member of Congress to volunteer that he was gay. He is now the first to be married to a partner of the same sex. Both bridegrooms said they recognized the historical significance of the ceremony, which lasted less than five minutes. Gov. Patrick told the guests that Mr. Frank had requested that the service “be short and to the point.”

And in vows written by the couple, Mr. Frank and Mr. Ready pledged to love each other “on MSNBC or on Fox” and “in Congress or in retirement,” a reference to Mr. Frank’s decision not to seek another term. [..]

They had long discussions about marriage; Mr. Frank wanted to be married while still serving in Washington. Mr. Ready was worried about the public scrutiny. But he remembered how he felt in high school in Tewksbury, Mass., when Mr. Frank came out publicly.

“The kids that are going to see us, and feel strong enough to be able to come out and be who they are. That gives me more encouragement that I’m doing the right thing,” he said.

Their wedding bands were made of black diamonds set in tungsten, a metal used in welding. Mr. Ready picked the material. “It helps keep me grounded, after going to lunch with the president,” he said.

The wedding took place at a no-frills Marriott hotel in Newton. (Mr. Frank said he chose the location for ease of access.) The bridegrooms planned to wear tuxedos by Joseph Abboud, which Mr. Frank noted is a union shop.

Ms. Pelosi said at the reception on Saturday that it was appropriate that a landmark same-sex wedding take place around the Fourth of July. “It’s about expanding freedom,” she said. “This opportunity was a long time coming.”

We extend our best wishes and congratulations to Barney and Jim. Mazel Tov

In some other positive news for the LGBT community, the Episcopal Church has moved closer to allowing transgender men and women to be ordained as ministers:

INDIANAPOLIS (Reuters) – The U.S. Episcopal Church’s House of Bishops on Saturday approved a proposal that, if it survives a final vote, would give transgender men and women the right to become ministers in the church.

The House of Bishops voted at the church’s General Convention to include “gender identity and expression” in its “non-discrimination canons,” meaning sexual orientation, including that of people who have undergone sex-change operations, cannot be used to exclude candidates to ministry. [..]

The Episcopal Church, which has about 2 million members mostly in the United States, now allows gay men and lesbians to join the ordained ministry.

The resolutions on gender would allow transgender individuals access to enter the Episcopal lay or ordained ministries, and extend the overall non-discrimination policy to church members.

The resolutions must now be approved by the church’s House of Deputies.

Great news, indeed!

Open Thread: What We Now Know

What Happens When You Elect Actual Socialists

Chris Hayes summarizes the news of the week as he talks about the intended tax hikes in France under newly elected President François Hollande. He is joined on the panel by Jared Bernstein (@econjared), MSNBC contributor, former Chief Economist & Economic Policy Advisor to Vice President Joe Biden, Senior Fellow at the Center for Budget and Policy Priorities; Karl Smith (@ModeledBehavior), Assistant Professor of Economics and Government at The University of North Carolina at Chapel Hill and contributor to the Forbes blog Modeled Behavior; Jamila Bey (@jbey), Contributing writer to Washington Post blog She the People, and reporter for Voice of Russia Radio; Annie Lowrey (@AnnieLowrey), economic policy reporter for The New York Times.

The Surveillance State of America

Cross posted from The Stars Hollow Gazette

NSA EagleIn 2005 while George W. Bush still sat in the Oval Office, James Bamford penned this article for the New York Times Week in Review titled The Agency That Could Be Big Brother. Mr. Bamford, the author of “Puzzle Palace” and “Body of Secrets: Anatomy of the Ultra-Secret National Security Agency“, wrote about the National Security Agency which was created in absolute secrecy in 1952 by President Harry S. Truman. This agency is now the largest of the security agencies surpassing the CIA and other spy organizations. And it is still growing. The agency now has sites all over the US and around the globe and we have no idea what their budget is or for that matter what they are doing with all that information. In 2005, controversy over whether the Pres. Bush broke the law when he secretly ordered the N.S.A. to bypass a special court (FISA) and conduct warrantless eavesdropping on American citizens had provoked some Democrats to call for his impeachment. Now today, Pres. Barack Obama, a Democrat, expands the NSA’a power and there is not silence, but support from the Democrats. We don’t even know how much is spent by the NSA since their budget is classified. Heh, Congress doesn’t know either. But I digress.

Columnist David Sirota wrote in the Seattle Times that the NSA now claims that “it can’t tell Congress about its activities violating the privacy of Americans because doing so might violate Americans’ privacy”.

In a letter to senators Ron Wyden, D-Ore., and Mark Udall, D-Colo., the agency wrote: “(A) review of the sort suggested would itself violate the privacy of U.S. persons.” [..]

So why would the NSA nonetheless refuse to provide one? Most likely because such an estimate would be a number so big as to become a political problem for the national-security establishment.

According to the nonpartisan Electronic Frontier Foundation, “The U.S. government, with assistance from major telecommunications carriers including AT&T, has engaged in a massive program of illegal dragnet surveillance of domestic communications and communications records of millions of ordinary Americans since at least 2001.”

That’s right, millions – and that’s merely what happened with one of many programs over the last decade.

Moving forward, Wired notes that the NSA is building the “Utah Data Center” – “a project of immense secrecy” designed “to intercept, decipher, analyze, and store vast swaths of the world’s communications as they zap down from satellites and zip through the underground and undersea cables of international, foreign, and domestic networks.”

Appearing at the Socialism 2012 conference in Chicago, Salon.com contributing editor and civil rights lawyer, Glenn Greenwald gave a speech on Challenging the Surveillance State. Glen suggests that if you can’t watch all four videos the last one about the harms from ubiquitous surveillance is the most important one. He also points out FDL’s Kevin Gosztola’s excellent commentary and summation of the speech.

The 1st Amendement v United States Government

Cross posted from The Stars Hollow Gazette

The past Sunday constitutional lawyer and contributing editor at Salon.com Glenn Greenwald appeared with Chris Hayes on MSNBC’s “Up with Chis Hayes”to discuss the history of anonymous speech in politics and debate whether spending money is an exercise of free speech. The other guests on the panel are Maria Hinojosa, anchor of NPR’s Latino USA and president of Futuro Media Group; Rep. Peter Welch, Democrat of Vermont and member of the House Oversight and Government Reform Committee; and Heather McGhee, vice president of policy and research at the progressive think tank Demos.

Glenn also penned a scathing piece on Sen. Diane Feinstein’s (D-CA) attack on our First Amendment rights using, oh noes!, Terror! as an excuse. Glenn makes the point that Feinstein’s outrage over Julian Assange and Wikileaks is tantamount to an attack of freedom of the press.

Dianne Feinstein targets press freedom

The supreme Senate defender of state secrecy and the Surveillance State, California Democrat Dianne Feinstein, yesterday issued a statement to Australia’s largest newspaper, The Sydney Morning Herald, demanding (once again) the prosecution of WikiLeaks and Julian Assange. To see how hostile Feinstein is to basic press freedoms, permit me to change “Assange” each time it appears in her statement to “The New York Times“:

   The head of the US Senate’s powerful intelligence oversight committee has renewed calls for [The New York Times] to be prosecuted for espionage. . . .

   “I believe [The New York Times] has knowingly obtained and disseminated classified information which could cause injury to the United States,” the chairwoman of the Senate Select Committee on Intelligence, Dianne Feinstein, said in a written statement provided to the Herald. “[It] has caused serious harm to US national security, and [] should be prosecuted accordingly.”

As EFF’s Trevor Timm noted, there is no sense in which Feinstein’s denunciation applies to WikiLeaks but not to The New York Times (and, for that matter, senior Obama officials). Indeed, unlike WikiLeaks, which has never done so, The New York Times has repeatedly published Top Secret information. That’s why the prosecution that Feinstein demands for WikiLeaks would be the gravest threat to press freedom and basic transparency in decades. Feinstein’s decades-long record in the Senate strongly suggest that she would perceive these severe threats to press freedom as a benefit rather than drawback to her prosecution designs.

Under Sen. Feinstein’s premise we should have prosecuted Woodward and Bernstein and every other reporter who has exposed government wrong doing. I wonder is she would like to take on Dick Cheney for outing a CIA agent to get us into a war based on a lie, the consequences of which we will never know.  

Open Thread: What We Now Know

We Now Know Obama Is Best Suited to Handle an Alien Invasion

Chris Hayes rounds up what he and his guests learned this past week. His guests are Rep. Yvette Clark (D-NY); Akhil Amar, professor of law at Yale Law Scholl; Ezra Klein, columnist for the Washington Post; and Avik Roy, Romney Health Care Advisor.

Federal Reserve Lies About Foreclosures

Cross posted from The Stars Hollow Gazette

While the attention was on the SCOTUS ruling on the affordable Care Act, this is what was going on under the radar at the Federal Reserve:

Federal Reserve, Regulators Arguing for More, Quicker Foreclosures

by David Dayen

The Federal Reserve has decided to put their thumbs on the scales of justice, explicitly attempting to overturn state-based anti-foreclosure laws on the spurious grounds that they hurt the economy.

This story by Tim Reid in Reuters cites the Fed arguing against the kind of laws in states like Nevada – and soon, California – that have saved hundreds of thousands of homes from foreclosure.

   “State and federal laws enacted to protect homeowners from eviction in the wake of the 2008 housing crash may be extending the slump, according to a growing number of economists and industry experts.

   Foreclosures have all but ground to a halt in Nevada, which passed one of the stiffest borrower-protection laws in the country last year. Yet the housing market is further than ever from recovery, local real estate agents say, with a lack of inventory feeding a “mini-bubble” in prices that few believe is sustainable.

   A recent U.S. Federal Reserve study found that in states requiring a judicial review for foreclosure, delays associated with the process had no measurable long-term benefits and often prolonged the problems with the housing market.”

There’s been a concerted effort to overturn due process in these judicial foreclosure states, on the theory that foreclosures must be quickly flushed through the system so the market can “clear.” Incredibly, house organs like the Fed still express this opinion even after years of documented evidence of illegal foreclosures using false and forged documents in court. The explicit recommendation from the Federal Reserve is to react to systematic foreclosure fraud by closing the courthouse doors to troubled borrowers.

The entire premise that judicial foreclosure states are prolonging the housing slump is completely spurious. Nothing furthers the housing slump more than a spate of foreclosures flooding the market, increasing the supply of distressed homes that sell cheaply and bringing down property values in a particular area. That’s what the Fed is arguing for.

Yes, they’re serious. This is basically siding with the banks, giving fraud as pass and screwing the homeowners and housing market with a flood of foreclosures. And Reuters and other trade publications have decided to publish the propaganda that keeping people in their homes is causing the market to slump and the solution is more foreclosures.

Freelance writer and attorney who helped expose the foreclosure fraud, Abigail Field takes on the Reuters “b.S.” sentence by sentence, shredding the propaganda that the housing crisis was caused by homeowners but by the banks themselves who created the shadow market of foreclosed homes and the underwater crisis. She makes these four points:

  • First, en route to committing mass securities fraud the banks dishonored their contracts and failed to document the mortgage loans as they promised investors they would. As a result, they’ve had to fabricate nonsensical, obviously fraudulent and often sworn statements to try to foreclose. It’s that swamp of fraud that’s causing the delays.
  • Second, banks are manipulating housing market inventory, letting properties they own rot, not listing them for sale, and when auctioning them, sometimes outbidding third parties.
  • Third, bankers’ securities fraud broke the secondary market for non-government backed mortgages. As a result, there’s a lot less capital to lend wannabe homeowners.
  • Fourth, lender-driven appraisal fraud led to such inflated prices that the underwater problem is directly attributable to them.
  • Rather than deal in the reality that our housing crisis is banker driven and dare push the meme that bankers must be held accountable, Reuters is helping bankers (and their government allies) push the idea that if only we made it easy for bankers to use their fraudulent documents, the housing market would heal quickly.

    There’s even more that exposes not just the Federal Reserve’s pass on bank fraud but the how the Obama administration’s so called homeowner bail out is just more hand outs to the banks:

    Sentences ten and eleven:

    “The increasing doubt about the impact of anti-foreclosure laws on the long-term health of the housing market calls into question a basic principle of the Obama Administration’s approach to the housing crisis.

    Many Democrats, including Obama, say struggling homeowners should get more time to make good on their mortgage arrears, or have the breathing room to renegotiate their loans with lenders, especially in the wake of the “robo-signing” scandal in which banks were found to have falsified foreclosure paperwork.”

    How I wish the Obama Administration’s approach had really been about helping struggling homeowners. Instead it has been mostly theatrics with gifts to the banks thrown in. Most recent example – the latest refinancing program has become a fee/profit center for the big banks. Moreover, if homeowners did “make good”, that would be better for everyone involved, including the broader market, but in the era of maximally predatory servicing, it’s not easy. Ditto with mortgage mods that work – and when they include principal reduction that’s meaningful, they work.

    Hey, look! In sentence 11 we get the first whiff of banker wrongdoing. And wow, he not only uses the misleading “robo-signing“, but he also says “falsified foreclosure paperwork.” Foreclosure “paperwork” doesn’t sound that serious, though, does it? How about “falsified documents affecting property title”? Or, “lied under oath about how much borrowers owed and to whom?”

    And as Yves Smith at naked capitalism notes in her article the lies get repeated ad nauseum:

    The way Big Lies get sold is by dint of relentless repetition. In the wake of the heinous mortgage settlement, foreclosure fatigue has set in. A lot of policy people want to move on because the topic has no upside for them. Nothing got fixed, the negotiation process took a lot of political capital (meaning, as we pointed out, it forestalls any large national initiatives in the near-to-medium term), and Good Dems don’t want to dwell on a crass Obama sellout (not that that should be a surprise by now). But the fact that this issue, which ought to be front burner given its importance both to individuals and the economy, is being relegated to background status creates the perfect setting for hammering away at bank-friendly memes. When people are less engaged, they read stories in a cursory fashion, or just glance at the headline, and don’t bother to think whether the storyline makes sense or the claims are substantiated.

    Just look at the headline: “Evidence suggests anti-foreclosure laws may backfire.” First, it says there are such things as “anti-foreclosure laws.” In fact, the laws under discussion are more accurately called “Foreclose legally, damnit” laws. Servicers and their foreclosure mill arms and legs have so flagrantly violated long-standing real estate laws in how they execute foreclosures that some states have decided to up the ante in terms of penalties to get the miscreants to cut it out. [..]

    And that is perhaps the most remarkable bit, the failure to consider that gutting the protections to the parties to a contract undermines commerce. Borrowers in judicial foreclosure states paid higher interest rates due to the greater difficulty of foreclosure. So now they are to be denied what they paid for because the banks recklessly disregarded the procedures they set up and committed to perform? What kind of incentive system is it when we reward massive institutional failure with a bank-favoring settlement and supportive messaging from central bank economists? As Dayen stated:

       “So when these officials argue against laws like those in Nevada, which merely criminalize a criminal practice, or California, which provides due process for people having their homes taken from them, they’re arguing in favor of what amounts to a dissolution of justice.”

    I don’t think you’ll read anything like this at Reuters. Shameful

    ACA: The Good, the Bad & the Truly Ugly

    Cross posted st The Stars Hollow Gazette

    First, this morning House Majority Leader Eric Cantor (R-VA) made the rounds of talk shows spouting how the Affordable Health Care bill can be repealed with a simple majority in the House and Senate since the bill was passed under reconciliation. Without a filibuster proof majority in the Senate, Ryan Lizza at The New Yorker points out the obstacles for that to happen:

    Many Republicans, especially in the blog and talk-radio swamps, would cry, “Use reconciliation!” Readers familiar with the congressional debates of 2009-2010 will remember that this procedure allows certain budgetary measures to pass through the Senate with a simple majority. [..]

    But reconciliation wouldn’t work here-the process can only be used for policies that have budgetary effects and a C.B.O. score. Much of the A.C.A., such as the insurance exchanges and subsidies, would fall under these categories. But a lot of it, including the hated individual mandate, does not. Repealing the exchanges and subsides without repealing the mandate and the other regulations and cost controls in the law would create a health-care Frankenstein that a President Romney would be rather nuts to support.

    That said, the SCOTUS ruling has some rather complex ramifications and Chief Justice Robert’s ruling was rather sly. First was there are the three bit from SCOTUSblog that Lambert Strether pointed out at Corrente:

    First, here’s the reasoning:

       Essentially, a majority of the Court has accepted the Administration’s backup argument that, as Roberts put it, “the mandate can be regarded as establishing a condition — not owning health insurance — that triggers a tax — the required payment to IRS.” Actually, this was the Administration’s second backup argument: first argument was Commerce Clause, second was Necessary and Proper Clause, and third was as a tax. The third argument won.

    Second, here are the implications for the role of the State as we have understood it from the New Deal onward; what Phillip Bobbitt would call a change a Constitutional Order:

       The rejection of the Commerce Clause and Nec. and Proper Clause should be understood as a major blow to Congress’s authority to pass social welfare laws.

    Third, here is the new Constitutional Order:

       Using the tax code — especially in the current political environment — to promote social welfare is going to be a very chancy proposition.

    Chancy or not — and it will be the precariat that suffers mischance, and not the elite, in any case — that’s what they’re going to do.

    Next from Scarecrow at FDL News Desk who argues that Chief Justice Robert’s “incoherent decision” will “shackle congress” and “screw millions of uninsured:

    In the process, he did violence to constitutional law and logic.  Consider, for example, Robert’s logic on the “mandate.”  In saving the “mandate,” Roberts essentially defined it as not a mandate.  You are not really required to purchase insurance, he noted; instead, you may choose not to purchase insurance and instead pay a minor tax.  As we know, taxing is just a way to collect revenues, a contribution to the common, aggregate costs of public programs.  In this case, the program is paying for many people’s health care through a system of risk/cost sharing.

    But if the so-called mandate is not really a mandate but rather an option that can be avoided by paying a tax, and if a legitimate purpose of this tax, as government and amicus briefs argued, is to help cover aggregate costs across a pool of many insured and uninsured people, then what does that do to Robert’s argument about the Commerce Clause?  When arguing about the Commerce Clause, Roberts insists it’s a requirement to purchase a “product,” which forces you to take an action, and thus to engage in commerce when you would not otherwise have done that.  Regulating “inaction” is not permissible, Roberts argues.

    But if, as Roberts concludes, the “mandate” is not a mandate, and the tax’s purpose is to help cover pooled costs, and not to buy a “product,” then there is no “mandate” to purchase a “product.”  So no one is forced to engage in commerce as Roberts framed it.  Indeed the “commerce” is already there in the risk sharing system across millions of people, all engaged in commerce by paying premiums into a pooled risk scheme.  Robert’s entire premise for striking down the Commerce Clause rationale is thus contradicted by his argument about how it’s permissible for Congress to enact a tax to support funding of collective health care costs.  That’s what the tax does; but it’s also what paying insurance premiums does.

    Roberts’ reasoning on Medicaid is equally illogical. His premise is that Congress cannot expand an existing program administered by states that depends on shared state/federal funding by conditioning funding for the whole program on the states actually implementing the expansion.  As Brad DeLong observes, if Congress were just now creating a fully expanded Medicaid, to be implemented by states but mostly paid for by the feds, there would be no question that Congress could condition federal funding on the states actually carrying out the programs.  But if the program already exists for half the needy population, Congress cannot complete the program for the other half and use the same leverage to achieve the same degree of state cooperation.

    As per the CBO, if the states actually implement the expansion and make an effort to get those eligible to sign up, 16 to 17 million more people will have health care coverage. But without that leverage to get the states to accept Medicaid expansion it leaves the poor between around 50% and 133% of the poverty line in a real no man’s land, because they would both be ineligible for Medicaid AND the coverage subsidies in the exchanges.

    As for the states voluntarily opting in for the Medicaid expansion, David Dayen doesn’t think that will happen either, even though the cost for the states would only be responsible for less than 10% of the costs.

    And being on the hook for even a small amount of funds isn’t going to make any of these governors happy. Heck, here’s a Democrat, former West Virginia Governor and current Senator Joe Manchin, making the argument for them:

       We should all recognize that the health care challenges that many West Virginians and Americans face are not going to go away unless Congress takes additional action to repair this bill. Now that the Court has ruled, we can move forward with fixing what is wrong with this bill and saving what is right. I have always been determined to reduce the burden on states from the Medicaid expansion, and this ruling affirms my position – and makes clear that states must have the flexibility to live within their means by determining Medicaid eligibility as each state sees fit. I have always said one size doesn’t fit all.

    That’s going to be a compelling set of logic for a non-trivial number of governors. They’ll also distort how much the expansion would put their states “on the hook.” 26 states sued to eliminate the Affordable Care Act entirely, and they almost got there. Why wouldn’t they jump at the chance to eliminate the portion that creates half of the coverage benefits?

    This isn’t going to be universal. New Mexico’s Republican Governor Susanna Martinez, for example, certainly sounds like she’ll take the money. But Southern states in particular, who paradoxically house the citizens most in need of the Medicaid expansion coverage, will be likely resisters at the outset. And it’s not like a lot of success in modern America comes from rallying at the grassroots level for poor and disenfranchised people.

    As was noted by Ezra Klein of the Washington Post, opponents of the ACA see this as a win:

    “We won,” said Georgetown law professor Randy Barnett, who was perhaps the most influential legal opponent of the Affordable Care Act. “All the arguments that the law professors said were frivolous were affirmed by a majority of the court today. A majority of the court endorsed our constitutional argument about the Commerce Clause and the Necessary and Proper Clause. Yet we end up with the opposite outcome. It’s just weird.”

    Yes, it’s weird but so was the whole ACA bill from the very start.

    Bailing Out Europe

    Cross posted from The Stars Hollow Gazette

    The heads of state of the EuroZone countries met in Brussels today for a two day summit to  try to come to an agreement on how to bail out two of its biggest members, Italy and Spain:

    The 27 government chiefs will discuss buying Spanish and Italian government bonds to bring down borrowing costs that are near euro-era records, Finnish Prime Minister Jyrki Katainen said. He also proposed that bailout funds buy collateralized government debt in primary markets.

    “I’ve come for very rapid solutions to support countries in difficulty on the markets,” French President Francois Hollande told reporters as he arrived in Brussels. Without specifying Spain or Italy, he said they “have made considerable efforts to deal with their public accounts.”

    Leaders will consider short-term measures to stem the sovereign debt turmoil as EU President Herman Van Rompuy’s road map to strengthen the bloc’s common currency and financial oversight ran into immediate opposition from Germany. German Chancellor Angela Merkel has become increasingly isolated as Hollande, Italian Prime Minister Mario Monti and Spanish Premier Mariano Rajoy unite to push for quicker action to ease the crisis that emerged in Greece in late 2009.

    Apparently all did not go German Chancellor Merkel’s way as she canceled her scheduled evening press conference. Or maybe she was watching her country’s football team get trounced by the Italians.

    Euro 2012 Live Blogging: Italy 2 Germany 0

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