Tag: TMC Politics

Cross posted from The Stars Hollow Gazette

While the traditional MSM has been kvetching over the selection of former Republican Senator Chuck Hagel as Secretary of Defense, President Barack Obama another far more controversial nomination. True to form of favoring George W. Bush’s war criminals, the president nominated his counter-terrorism advisor John Brennan to head the CIA. Brennan, who endorsed Bush’s torture program and illegal surveillance, has also been completely in charge of the president’s drone and targeted assassination programs. It was because of that and his approval of NSA illegal wire taping and the immunization of the telecommunication companies that Brennan’s nomination to head the CIA in 2009 was withdrawn by the fledgeling Obama administration. How soon, not just the media, so-called progressives have forgotten its outrage over the criminality of the Bush/Cheney regime.

John Brennan’s extremism and dishonesty rewarded with CIA Director nomination

by Glenn Greenwald, The Guardian

Obama’s top terrorism adviser goes from unconfirmable in 2008 to uncontroversial in 2013, reflecting the Obama legacy

Prior to President Obama’s first inauguration in 2009, a controversy erupted over reports that he intended to appoint John Brennan as CIA director. That controversy, in which I participated, centered around the fact that Brennan, as a Bush-era CIA official, had expressly endorsed Bush’s programs of torture (other than waterboarding) and rendition and also was a vocal advocate of immunizing lawbreaking telecoms for their role in the illegal Bush NSA eavesdropping program. As a result, Brennan withdrew his name from consideration, issuing a bitter letter blaming “strong criticism in some quarters prompted by (his) previous service with the” CIA.

This “victory” of forcing Brennan’s withdrawal proved somewhat Pyrrhic, as Obama then appointed him as his top counter-terrorism adviser, where he exerted at least as much influence as he would have had as CIA Director, if not more. In that position, Brennan last year got caught outright lying when he claimed Obama’s drone program caused no civilian deaths in Pakistan over the prior year. He also spouted complete though highly influential falsehoods to the world in the immediate aftermath of the Osama bin Laden killing, including claiming that bin Laden “engaged in a firefight” with Navy SEALS and had “used his wife as a human shield”. Brennan has also been in charge of many of Obama’s most controversial and radical policies, including “signature strikes” in Yemen – targeting people without even knowing who they are – and generally seizing the power to determine who will be marked for execution without any due process, oversight or transparency. {..}

It is a perfect illustration of the Obama legacy that a person who was untouchable as CIA chief in 2008 because of his support for Bush’s most radical policies is not only Obama’s choice for the same position now, but will encounter very little resistance. Within this change one finds one of the most significant aspects of the Obama presidency: his conversion of what were once highly contentious right-wing policies into harmonious dogma of the DC bipartisan consensus. Then again, given how the CIA operates, one could fairly argue that Brennan’s eagerness to deceive and his long record of supporting radical and unaccountable powers make him the perfect person to run that agency. It seems clear that this is Obama’s calculus.

The Seduction of John Brennan’s “Moral Rectitude”

by Marcy Wheeler, emptywheel

FWIW, having John Brennan in a position where he will be subject to Congressional oversight – rather than the oversight-free and more expansive position he’s in now – might not be an entirely bad thing. And after the DiFi-Jose Rodriguez smackdown, I’m not sad to see (CIA Acting Director Michael) Morell get passed over, because I don’t think he has sufficient independence from people like Rodriguez. {..}

So I can’t help but think the people hailing his “moral rectitude” have been seduced by an old spook. Because every story that claims Brennan has some kind of higher ethics or a plan to put order to our out-of-control CT programs is either followed-or has the proof within itself-that the moral rectitude is the PR, whereas the embrace of unchecked power seems to be backed by his actions.

This statement from the ACLU on Brennan’s nomination, expressed there concerns:

WASHINGTON – President Obama this afternoon nominated his counterterrorism advisor John Brennan to become the next director of the CIA. Laura W. Murphy, director of the ACLU’s Washington Legislative Office, had the following concerns with the president’s choice to fill this critical national security post.

Despite media reports that Brennan continually raised civil liberties concerns within the White House, noted Murphy, the Senate should not move forward with his nomination until it assesses the legality of his actions in past leadership positions in the CIA during the early years of the George W. Bush administration and in his current role in the ongoing targeted killing program. [..]

“The Senate should not move forward with his nomination until all senators can assess the role of the CIA-and any role by Brennan himself-in torture, abuse, secret prisons, and extraordinary rendition during his past tenure at the CIA, as well as can review the legal authorities for the targeted killing program that he has overseen in his current position,” Murphy said. “This nomination is too important to proceed without the Senate first knowing what happened during Brennan’s tenures at the CIA and the White House, and whether all of his conduct was within the law. ”

Murphy also added that a recent Senate Intelligence Committee report could be used to determine the extent of Brennan’s role in these programs.

“To the extent these questions can be answered by the Intelligence Committee’s still-undisclosed report on the CIA’s role in torture, the Senate should use the report to determine what role Brennan had and whether his conduct was consistent with both the law and American values,” Murphy said.

Murphy remarked that the CIA can take two actions now to help restore the rule of law.

“The Senate should not move forward with the nomination of John Brennan until it is clear that he is committed to making sure that the CIA will end its targeted killing program, and agree to work with the Senate Intelligence Committee on the declassification review and disclosure of the committee’s report on the CIA’s past role in torture and abuse,” she said. “These steps would help assure all Americans that the past wrongs of the CIA have ended, and won’t be brought back.”

Brennan will most likely be confirmed by the Senate with far less “fireworks” than the Hagel nomination. I have no doubt that it will be done under the cloak of secrecy, invoking “national security”, aka, covering war crimes and the perpetrators.  

Cross posted from The Stars Hollow Gazette

The controversy over President Barack Obama’s nomination of former Senator Chuck Hagel to be the next Secretary of Defense are, as Republicans say, he is anti-military, anti-Israel and soft on Iran. The gay Log Cabin Republicans, and a few others from the left, object because of his stand against the 1998 appointment of James Hormel as Ambassador to Luxembourg, who is openly gay. The problem on the left is he’s another Republican. Most of these objections won’t prevent Sen. Hagel from being confirmed.

At The Guardian, Glenn Greenwald discusses the concerns of the GLBT community and the objections of the left in his article:

When it comes to LGBT equality, 1998 is a different universe. Virtually no prominent Democrats (let alone Republicans) supported marriage equality back then, or even equal rights for LGBT citizens. In fact, Hagel’s comment came only two years after the overwhelming majority of Democratic Senators voted in favor of the truly odious and discriminatory Defense of Marriage Act – including Joe Biden, Patty Murray, Pat Leahy and Paul Wellstone – which was then signed into law by Bill Clinton. That law not only defined marriage as between a man and a woman, but barred the federal government from issuing any spousal benefits – immigration, tax, death benefits – to same-sex couples. If you’re going to judge politicians by how they felt about LGBT issues 15 years ago, be prepared to scorn almost every national Democratic Party hero you have as a bigot. [..]

So yes: like virtually every prominent politician in both parties, Chuck Hagel had primitive and ugly views on gay issues back in 1998. But shouldn’t the question be: does he still hold these views or, like huge numbers of Americans, have his viewed evolved since then? Hagel has apologized for what he said, an apology which Hormel accepted, graciously noting: “I can’t remember a time when a potential presidential nominee apologized for anything . . . .Since 1998, fourteen years have passed, and public attitudes have shifted–perhaps Senator Hagel has progressed with the times, too.” Moreover, Hagel last week also vowed that he is “fully supportive of ‘open service’ and committed to LGBT military families.” [..]

Then there’s the issue of Hagel’s party affiliation. The perception that Republicans are more trustworthy than Democrats on military issues – and that Democratic presidents thus had to rely on Republicans to run the Pentagon – was indeed both pervasive and baseless. But that, too, has changed: the outgoing Defense Secretary, Leon Panetta, is as loyal and partisan a Democrat as it gets, and nobody objected to his selection.

But much more importantly: when it comes to issues such as war, militarism, defense spending and Middle East policy, isn’t substance much more significant than whether someone has an “R” or “D” after their name? As Obama himself proves – and as Biden and Clinton before him proved – the fact that someone has a “D” after their name is hardly a guarantor that they will oppose policies of aggression and militarism. Indeed, as Clemons said Friday night on MSNBC, most Democrats in the Pentagon are so afraid of being cast as “soft on defense” that they hug policies of militarism far more eagerly and unquestioningly than Chuck Hagel ever would. Is partisan identity so all-consuming that it completely trumps substance, so that a hawkish Democrat is preferable to a war-skeptic Republican?

Just as a reminder, although Sen. Hagel objected to the authorization to invade Iraq in 2002, he still voted for it. So have the feral children of the right turned on him? It would seem that Sen. Hagel did the unthinkable, he told he truth about the real reason for the invasion, oil. He then committed a second “cardinal sin” when he voted for withdrawal.

Then according to the neocon’s he is soft on Iran and not sufficiently pro-Israel and has even been called antisemitic. Those objections are based on Sen. Hagel’s refusal to sign onto a number of AIPAC’s policy pronouncements and objections to military intervention with Iran over a non-existant nuclear weapons program.  Since most of those allegations are exaggerated or just false, the opposition is losing “steam” according to Josh Marshall at TPM:

Nominations lose steam or gain steam. Campaigns against nominations lose steam or gain steam. And at the moment, the campaign against Chuck Hagel’s nomination is losing steam. AIPAC and the ADL have both signaled they do not plan to make a fight of it. Israel’s Deputy Foreign Minister is giving Hagel the thumbs up. Now even the Washington Post editorial page has signaled it’s backing off its opposition.

As I noted on Sunday, the prospect of a five seat Democratic majority denying a reelected President the nomination of a former Senator who is blandly unobjectionable anywhere outside the hothouse of DC was always quite unlikely. And these tells are consequential precisely because they signal that the parties in question don’t think it’s a winnable fight.

This is all a tempest in a teapot and ridiculous on its face just as the complaints that Pres. Obama isn’t sufficiently bipartisan. Sen. Hagel is just another in a long succession of right of center nominees, appointments and hold overs from the Bush administration that have been part of Pres. Obama’s neoliberal agenda.  

Cross posted from The Stars Hollow Gazette

This past week calls by Republicans to not raise debt ceiling got little push back from the talking heads this Sunday as Senate Minority Leader Mitch McConnell made the morning rounds insinuating that it might not be so bad. Lets get something straight that the MSM village is allowing to happen here. The Republicans are conflating passing a budget bill (future spending) with making the payment on those expenditures (past spending). Those two things are NOT the same. The debt ceiling addresses the later and the consequences of even threatening to not pay US debts would have the same, if not greater, negative results as it did in 2011 when the feral children of the House held it hostage. The result of that debacle was the current sequestration bill and “fiscal cliff” crisis.

The inflation that everyone from the Federal Reserve to Wall St. wants to the one thing that would put the US in the same boat as Greece, facing increasingly higher interest rate payments. In other words the debt ceiling and the budget resolution are NOT the same and should not be treated the same.  The sequester and the budget resolution are negotiable; the debt ceiling is not.

This idea of holding the debt ceiling is in fact so dangerous to the world economy that politicians, economist and pundits are calling for President Barack Obama to act by using possibly the only legal means he may have, mint a Trillion Dollar Platinum Coin. Even New York Times columnist and economist, Paul Krugman has change his mind calling for the president to be ready to mint that coin:

Should President Obama be willing to print a $1 trillion platinum coin if Republicans try to force America into default? Yes, absolutely. He will, after all, be faced with a choice between two alternatives: one that’s silly but benign, the other that’s equally silly but both vile and disastrous. The decision should be obvious. [..]

It’s easy to make sententious remarks to the effect that we shouldn’t look for gimmicks, we should sit down like serious people and deal with our problems realistically. That may sound reasonable – if you’ve been living in a cave for the past four years.Given the realities of our political situation, and in particular the mixture of ruthlessness and craziness that now characterizes House Republicans, it’s just ridiculous – far more ridiculous than the notion of the coin.

So if the 14th amendment solution – simply declaring that the debt ceiling is unconstitutional – isn’t workable, go with the coin.

If you think that this possibility isn’t serious, consider the fact that the feral children of the House now do introducing legislation to prevent the president from minting the coin

And now a US Congressman has come out against the coin idea and is proposing a law to ban it (via Matthew O’Brien). Ironically, this action actually legitimizes the coin option. [..]

In the past, hiking the debt ceiling was pretty painless, but some in the GOP are staunchly opposed to doing it, raising the specter that the US will default on its obligations.

It’s because of this that some people are getting more excited about the “Platinum Option,” which refers to a technical loophole in the law that allows the Treasury to create platinum coins in any denomination, theoretically up to a trillion and beyond. [..]

We’ve posted his full press release below, but the key thing here is that the idea is now legitimized, as a GOP Congressman implicitly acknowledges that the coin idea is currently legal.

Note that in his press release, the Congressman uses the flawed analogy of comparing the US government to a small business. Unlike governments, small businesses can’t print money. And small businesses can’t “deficit spend,” the way governments can.

The opponents of this idea are also wrong. Josh Borrow, who writes at Bloomberg‘s The Ticker, enumerates why their arguments are all wrong and concludes:

Minting the platinum coin would be less economically damaging than any of the above options, which is why Obama should announce he will pursue it if the debt ceiling is not raised. Hopefully, inflation hawks will be so alarmed by the president’s intention to use his direct monetary authority that they will choose to cut a deal and we’ll never actually get to the minting stage.

But if Republicans call Obama’s bluff, he should be ready to mint that coin – – and to save the economy by doing so.

Cross posted from The Stars Hollow Gazette

Last night (Jan. 1) the House of Representatives voted to make permanent the Bush/Obama tax cuts on all but the top 1% of tax payers and increasing taxes on on 77.1 percent of U.S. households, mostly because of the expiration of a payroll tax cut. With the bill set to be signed by Pres. Barack Obama, Congress and the White House move to the next manufactured crisis that this bill set up, the draconian sequester cuts to defense and non-defense spending and the debt ceiling, also a manufactured “crisis.” The bill did hold off those draconian cuts for two months, just in time for spending to hit the debt ceiling.

Pres. Obama made it clear in his address after the passage of the “Fiscal Cliff” bill, that he would not allow the debt ceiling to be used as a bargaining chip in negotiations over spending.

“I will not have another debate with this Congress over whether or not they should pay the bills that they’ve already racked up through the laws that they passed. We can’t not pay bills that we’ve already incurred.”

“If Congress refuses to give the United States government the ability to pay these bills on time, the consequences for the entire global economy would be catastrophic – far worse than the impact of a fiscal cliff.”

This bill was not the best deal as this article on the behind the scenes Senate dealings by Ryan Grym at Huffington Post tells it:

The White House sent Reid a list of suggested concessions as his staff debated what to send back to McConnell. Reid looked over the concessions the administration wanted to offer, crumpled up the paper and tossed it into his fireplace. The gesture was first reported by Politico and confirmed to HuffPost by sources with knowledge of it, who noted that Reid frequently keeps his fire going and is fond of feeding a variety of proposals to it.

Reid’s staff then called McConnell’s office with a simple message: Our last offer stands. There will be no further concessions. McConnell took to the Senate floor, complaining that he had no “dance partner” in Reid, and called Vice President Joe Biden, a man he assumed would be more willing to give. McConnell was right.

Perhaps the most important concession he wrangled from the administration, which Reid had been unwilling to make, was a two-month extension of the sequester, automatic cuts to defense spending and domestic programs that were supposed to be triggered Jan. 1. Reid wanted much more, worried that the two-month period will simply set up another colossal showdown that will also rope in the debt ceiling and funding for the government. “The deal itself is OK, but sets up Democrats for [a] worse fight and strengthens Republicans’ hand for what they really want: cuts,” said a Democratic source close to Reid. “Biden gave away the store on timeline. Two months and we’re back at this and in worse shape.”

President Barack Obama has vowed not to negotiate over the debt ceiling, but Democrats in the Senate are worried that they’ve now lost their leverage. “Everyone knew taxes would be raised on high earners,” said the Democratic source. “So with that out of the way, what do we bargain with?”

All they had to do was let the tax cuts end and pass new tax bill that included extension of unemployment benefits, ended unconstitutional the debt ceiling nonsense and added some stimulus to really create jobs, since we all know that tax cuts don’t. But no, Pres. Obama had to have this done and kept backing away from his so-called “line in the sand.”

If anyone believes at this point that Obama stand up to the threats of a government shut down by Republicans refusing to raise the debt ceiling without serious concessions on Medicare and Social Security, consider these three reasons to doubt from Jon Walker at FDL Action

1) Failure to stick to previous lines in the sand – In past negotiations Obama has failed to stick to his previous lines in the sand. Obama did not stick to his demand that the Bush tax cuts end for income over $250,000. Similarly despite saying he would not play games with the debt ceiling, Obama seemed to treat it as just another bargain chip when trying to get a deal with John Boehner.

2) Dismissing unilateral action – The Obama administration has dismissed unilateral action to address the debt ceiling. Doing something like invoking the 14th amendment would probably be the easiest way to defuse the fight, but the administration has declared that “not an option.” Even if the Obama team didn’t think it was a legally viable solution by completely removing the threat it has weakened its bargaining position.

3) Allowing the creation of a new super cliff in two months – When WP Joe Biden took over the negotiations from Sen. Harry Reid the major concession he made was to have only a two month delay of the sequestration cuts instead of a one year delay.

Meanwhile the “irrational exuberance” of Wall St’s feral children over the tax deal abounds with the markets closing on a high. Let’s see what happens in two months when we sit on the edge of another cliff.

Cross posted from The Stars Hollow Gazette

If anyone had any doubts that the US Government is no longer a “government of the people” but of corporation and Wall St, you need only read the recently released FBI documents that labeled Occupy Wall Street a “terrorist group” and coordinated with banks and cities nationwide to suppress the protests with strong arm tactics and targeted assassinations (see pg 61 of document). This all started before the protest even began without evidence that the protests would be anything but peaceful and despite the internal acknowledgment that the movement opposed violent tactics. The documents prove that the government blatantly lied about the Department of Homeland Security involvement in coordinating the violent crackdown in New York City, Oakland and other major cities. Partnership for Civil Justice obtained the heavily redacted FBI documents revealing that the surveillance began at least a month before the protest in Zuccotti Park began and that the #OWS movement was being treated as potential criminal and terrorist activity.

The PCJF has obtained heavily redacted documents showing that FBI offices and agents around the country were in high gear conducting surveillance against the movement even as early as August 2011, a month prior to the establishment of the OWS encampment in Zuccotti Park and other Occupy actions around the country.

“This production, which we believe is just the tip of the iceberg, is a window into the nationwide scope of the FBI’s surveillance, monitoring, and reporting on peaceful protestors organizing with the Occupy movement,” stated Mara Verheyden-Hilliard, Executive Director of the Partnership for Civil Justice Fund (PCJF).  “These documents show that the FBI and the Department of Homeland Security are treating protests against the corporate and banking structure of America as potential criminal and terrorist activity.  These documents also show these federal agencies functioning as a de facto intelligence arm of Wall Street and Corporate America.”

“The documents are heavily redacted, and it is clear from the production that the FBI is withholding far more material. We are filing an appeal challenging this response and demanding full disclosure to the public of the records of this operation,” stated Heather Benno, staff attorney with the PCJF.

Author and activist Naomi Wolf reported in The Guardian that these “new documents prove what was once dismissed as paranoid fantasy: totally integrated corporate-state repression of dissent.”

It was more sophisticated than we had imagined: new documents show that the violent crackdown on Occupy last fall – so mystifying at the time – was not just coordinated at the level of the FBI, the Department of Homeland Security, and local police. The crackdown, which involved, as you may recall, violent arrests, group disruption, canister missiles to the skulls of protesters, people held in handcuffs so tight they were injured, people held in bondage till they were forced to wet or soil themselves – was coordinated with the big banks themselves.

The Partnership for Civil Justice Fund, in a groundbreaking scoop that should once more shame major US media outlets (why are nonprofits now some of the only entities in America left breaking major civil liberties news?), filed this request. The document – reproduced here in an easily searchable format – shows a terrifying network of coordinated DHS, FBI, police, regional fusion center, and private-sector activity so completely merged into one another that the monstrous whole is, in fact, one entity: in some cases, bearing a single name, the Domestic Security Alliance Council. And it reveals this merged entity to have one centrally planned, locally executed mission. The documents, in short, show the cops and DHS working for and with banks to target, arrest, and politically disable peaceful American citizens.

The documents, released after long delay in the week between Christmas and New Year, show a nationwide meta-plot unfolding in city after city in an Orwellian world: six American universities are sites where campus police funneled information about students involved with OWS to the FBI, with the administrations’ knowledge (p51); banks sat down with FBI officials to pool information about OWS protesters harvested by private security; plans to crush Occupy events, planned for a month down the road, were made by the FBI – and offered to the representatives of the same organizations that the protests would target; and even threats of the assassination of OWS leaders by sniper fire – by whom? Where? – now remain redacted and undisclosed to those American citizens in danger, contrary to standard FBI practice to inform the person concerned when there is a threat against a political leader (p61).

Mara Verheyden-Hilliard, executive director of the PCJF, sat down for an interview with Amy Goodman on Democracy Now!

Transcript can be read here

So much for paranoia. The government is out to stop peaceful protest in anyway they can.

Up host Chris Hayes discusses what we have learned since last week with guests Oliver Stone, award-winning director, producer and screenwriter; Veronique de Rugy, senior research fellow at the Mercatus Center at George Mason University; David Cay Johnston, Pulitzer Prize winning journalist and author; and Suzy Khimm, reporter for the Washington Post.

2012: A Safe Year To Fly

By Daniel Politi, Slate

Fear of flying may soon be a thing of the past as 2012 was a great year to get on a plane. Air travel is now the safest it has been “since the dawn of jet planes,” reports the Wall Street Journal, noting that the industry is set to mark the lowest rate of fatalities in 2012 since the early 1960s. Before Saturday’s crash near Moscow that killed four people, there were a total of 22 fatal crashes across the world in 2012, a decline from the 28 seen in 2011 and far lower from the 34 fatal accidents per year that is the average over the last decade. Of the 22 crashes, only 10 were of passenger aircraft, and just three were larger jetliners built in the West. The other seven were turboprops built in the West or Russia.

Secrecy of Memo on Drone Killing Is Upheld

by Adam Liptak

WASHINGTON – A federal judge in Manhattan refused on Wednesday to require the Justice Department to disclose a memorandum providing the legal justification for the targeted killing of a United States citizen, Anwar al-Awlaki, who died in a drone strike in Yemen in 2011.

The ruling, by Judge Colleen McMahon, was marked by skepticism about the antiterrorist program that targeted him, and frustration with her own role in keeping the legal rationale for it secret.

“I can find no way around the thicket of laws and precedents that effectively allow the executive branch of our government to proclaim as perfectly lawful certain actions that seem on their face incompatible with our Constitution and laws while keeping the reasons for their conclusion a secret,” she wrote.

“The Alice-in-Wonderland nature of this pronouncement is not lost on me,” Judge McMahon wrote, adding that she was operating in a legal environment that amounted to “a veritable Catch-22.”

A lawsuit for the memorandum and related materials was filed under the Freedom of Information Act by The New York Times and two of its reporters, Charlie Savage and Scott Shane. Wednesday’s decision also rejected a broader request under the act from the American Civil Liberties Union.

David E. McCraw, a lawyer for The Times, said the paper would appeal.

Cross posted from The Stars Hollow Gazette

The next “plateau” in the on going “Mythical Cliff” debate is the unconstitutional debt ceiling which the Republicans are now threatening to take hostage to demand draconian cuts to social security and other programs while sparing defense. With the settlement over the Obama tax cuts out of the way, the $1 trillion dollars in sequestration cuts are scheduled to take effect in two month at the same time authorized spending will “hit the roof,” setting up the showdown between the feral Tea Party dominated Republican held House, the roadblocked filibustered Senate and the ever capitulating White House. Still very much in danger are Social Security and Medicare which President Barack Obama has refused to take off the table and keeps offering up as sacrifice as part of an agreement. To get what they want the Republicans are willing to let the government default on its debt

Sen. Pat Toomey (R-Pa.) said on MSNBC’s “Morning Joe” this week, “we Republicans need to be willing to tolerate a temporary, partial government shutdown” in order to achieve spending cuts and entitlement reforms.

On Friday morning, meanwhile, House Speaker John Boehner (R-Ohio) told members that he was prepared to use the debt ceiling fight as leverage to get spending cuts. According to a source in the room, Boehner showed fellow lawmakers the results of a survey by the Winston Group, a GOP polling firm, which showed that 72 percent of Americans “agree any increase in the nation’s debt limit must be accompanied by spending cuts and reforms of a greater amount.”

“The debate is already under way,” the speaker said.

Elsewhere on Friday morning, Sen. John Cornyn (R-Texas), the second-ranking Senate Republican, penned an op-ed making a similar argument.

   Republicans are more determined than ever to implement the spending cuts and structural entitlement reforms that are needed to secure the long-term fiscal integrity of our country.

   The coming deadlines will be the next flashpoints in our ongoing fight to bring fiscal sanity to Washington. It may be necessary to partially shut down the government in order to secure the long-term fiscal well being of our country, rather than plod along the path of Greece, Italy and Spain. President Obama needs to take note of this reality and put forward a plan to avoid it immediately.

Calling this a “government shutdown,” even a partial shut down, is just plain spin that will result in an even deeper recession than the last one from which we have yet to fully recover. In a letter from Matthew E. Zames, a managing director at JPMorgan Chase and the chairman of the Treasury Borrowing Advisory Committee lists what will happen if the debt ceiling is not raised:

First, foreign investors, who hold nearly half of outstanding Treasury debt, could reduce their purchases of Treasuries on a permanent basis, and potentially even sell some of their existing holdings. [.]]

Second, a default by the U.S. Treasury, or even an extended delay in raising the debt ceiling, could lead to a downgrade of the U.S. sovereign credit rating. [..]

Third, the financial crisis you warned of in your April 4th Letter to Congress could trigger a run on money market funds, as was the case in September 2008 after the Lehman failure. [..]

Fourth, a Treasury default could severely disrupt the $4 trillion Treasury financing market, which could sharply raise borrowing rates for some market participants and possibly lead to another acute deleveraging event. [..]

Fifth, the rise in borrowing costs and contraction of credit that would occur as a result of this deleveraging event would have damaging consequences for the still-fragile recovery of our economy. [..]

Finally, (..) because the long-term risks from a default are so large, a prolonged delay in raising the debt ceiling may negatively impact markets well before a default actually occurs.

Obviously, the Republicans did not learn from the last hostage threat that resulted in a market down turn and the downgrade of the US credit rating. That debacle resulted in an extension of the Bush tax cuts and, now the permanent Obama tax cuts. Without tax increases as leverage the President and the Democrats have very little wiggle room.

That brings us to the elephant in the room that most of the MSMS, some so called progressive blogs and pundits, including Nobel Prize winning economist Paul Krugman, have laughed off as “not serious,” the “Trillion Dollar Platinum Coin Solution” (TPC). Guess what, they aren’t laughing at this any more. We may not be able to print money but we can mint coins of any denomination. From Paul Krugman:

The peculiar exception is that clause allowing the Treasury to mint platinum coins in any denomination it chooses. Of course this was intended as a way to issue commemorative coins and stuff, not as a fiscal measure; but at least as I understand it, the letter of the law would allow Treasury to stamp out a platinum coin, say it’s worth a trillion dollars, and deposit it at the Fed – thereby avoiding the need to issue debt. [..]

In reality, to pursue the thought further, the coin really would be as much a Federal debt as the T-bills the Fed owns, since eventually Treasury would want to buy it back. So this is all a gimmick – but since the debt ceiling itself is crazy, allowing Congress to tell the president to spend money then tell him that he can’t raise the money he’s supposed to spend, there’s a pretty good case for using whatever gimmicks come to hand.

But there is a solution to preventing a real fiscal crisis and Josh Barrow at Bloomberg has an ingenious solution to both the debt ceiling and the TPC and why we need to “go off the platinum cliff”:

This law was intended to allow the production of commemorative coins for collectors. But it can also be used to create large-denomination coins that Treasury can deposit with the Fed to finance payment of the government’s bills, in lieu of issuing debt.

What the law should say is that the executive branch may borrow to pay whatever obligations the federal government has, but may not print. Unfortunately, when we hit the debt ceiling, the situation will be backwards: The administration will not be allowed to borrow, but it can print in unlimited quantities.

This points toward an interesting solution.

If Republicans start issuing a list of demands that must be met before they will raise the debt ceiling, Obama should simply say that he will issue platinum coins as necessary to pay government bills if he cannot borrow. But, to avoid causing long-term inflation expectations to skyrocket, he should pledge that he will have the Treasury issue enough bonds to buy back all the newly issued currency as soon as it is allowed to do so.

And then he should offer to sign a bill revoking his authority to issue platinum coins — so long as that bill also abolishes the debt ceiling. The executive branch will give up its unwarranted power to print if the legislative branch will give up its unwarranted restriction on borrowing to cover already appropriated obligations.

Here that Barack? Dare them to destroy the face and credit of this country, then flip that coin on the table along with the bill. Wanna bet they’ll bite?

Meanwhile, we need to encourage our weak kneed president to do what Atrios said

Cross posted from The Stars Hollow Gazette

The sequel to the the Bush/Obama tax debacle  is the unconstitutional debt ceiling. According to the 14th Amendment, the US has to pay its bills, even if the government has to borrow the money through bond sales. So the debt ceiling is another manufactured “cliff” that was created to curb spending which it didn’t, obviously, or we wounded be having another media side show staring the White House and the Congressional leadership. So get comfy and grab you favorite munchies as we watch the 99% get raked over the coals.

President Obama:

Obama Debt Ceiling Statement: Limit Increase Not Up For Debate After Fiscal Cliff Showdown

from Reuters

“While I will negotiate over many things, I will not have another debate with this Congress about whether or not they should pay the bills they have already racked up,” Obama said in remarks in the White House.

McConnell: Spending fight coming whether Obama ‘wants it or not’

by Alicia M. Cohn, The Hill

Senate Minority Leader Mitch McConnell (R-KY):

President Obama will get a fight over government spending with a hike to the debt limit “whether he wants it or not,” Senate Minority Leader Mitch McConnell (R-Ky.) wrote Thursday.

In an op-ed for Yahoo, McConnell wrote that Republicans would focus on reducing spending in the next Congress, and in conjunction with the debate over raising the $16.4 trillion debt ceiling. Congress will likely need to take action on the debt limit within the next two months.

“The president may not want to have a fight about government spending over the next few months, but it’s the fight he is going to have, because it’s a debate the country needs,” McConnell warned.

Speaker of the House John Boehner (R-OH)

Boehner tells GOP he’s through negotiating one-on-one with Obama

by Russel Berman, The Hill

Speaker John Boehner (R-Ohio) is signaling that at least one thing will change about his leadership during the 113th Congress: he’s telling Republicans he is done with private, one-on-one negotiations with President Obama.

and just to prove that the 113th Congress will bear little difference to the 112th

At noon today, I introduced the first bill of the 113th Congress to repeal Obamacare in its entirety.

— Michele Bachmann (@MicheleBachmann) January 3, 2013

Let the games begin: Thunderdome

Cross posted from The Stars Hollow Gazette

Last night the House of Representatives voted to make permanent the Bush/Obama tax cuts on all but the top 1% of tax payers and increasing taxes on on 77.1 percent of U.S. households, mostly because of the expiration of a payroll tax cut. With the bill set to be signed by Pres. Barack Obama, Congress and the White House move to the next manufactured crisis that this bill set up, the draconian sequester cuts to defense and non-defense spending and the debt ceiling, also a manufactured “crisis.” The bill did hold off those draconian cuts for two months, just in time for spending to hit the debt ceiling.

Pres. Obama made it clear in his address after the passage of the “Fiscal Cliff” bill, that he would not allow the debt ceiling to be used as a bargaining chip in negotiations over spending.

“I will not have another debate with this Congress over whether or not they should pay the bills that they’ve already racked up through the laws that they passed. We can’t not pay bills that we’ve already incurred.”

“If Congress refuses to give the United States government the ability to pay these bills on time, the consequences for the entire global economy would be catastrophic – far worse than the impact of a fiscal cliff.”

This bill was not the best deal as this article on the behind the scenes Senate dealings by Ryan Grym at Huffington Post tells it:

The White House sent Reid a list of suggested concessions as his staff debated what to send back to McConnell. Reid looked over the concessions the administration wanted to offer, crumpled up the paper and tossed it into his fireplace. The gesture was first reported by Politico and confirmed to HuffPost by sources with knowledge of it, who noted that Reid frequently keeps his fire going and is fond of feeding a variety of proposals to it.

Reid’s staff then called McConnell’s office with a simple message: Our last offer stands. There will be no further concessions. McConnell took to the Senate floor, complaining that he had no “dance partner” in Reid, and called Vice President Joe Biden, a man he assumed would be more willing to give. McConnell was right.

Perhaps the most important concession he wrangled from the administration, which Reid had been unwilling to make, was a two-month extension of the sequester, automatic cuts to defense spending and domestic programs that were supposed to be triggered Jan. 1. Reid wanted much more, worried that the two-month period will simply set up another colossal showdown that will also rope in the debt ceiling and funding for the government. “The deal itself is OK, but sets up Democrats for [a] worse fight and strengthens Republicans’ hand for what they really want: cuts,” said a Democratic source close to Reid. “Biden gave away the store on timeline. Two months and we’re back at this and in worse shape.”

President Barack Obama has vowed not to negotiate over the debt ceiling, but Democrats in the Senate are worried that they’ve now lost their leverage. “Everyone knew taxes would be raised on high earners,” said the Democratic source. “So with that out of the way, what do we bargain with?”

All they had to do was let the tax cuts end and pass new tax bill that included extension of unemployment benefits, ended unconstitutional the debt ceiling nonsense and added some stimulus to really create jobs, since we all know that tax cuts don’t. But no, Pres. Obama had to have this done and kept backing away from his so-called “line in the sand.”

If anyone believes at this point that Obama stand up to the threats of a government shut down by Republicans refusing to raise the debt ceiling without serious concessions on Medicare and Social Security, consider these three reasons to doubt from Jon Walker at FDL Action

1) Failure to stick to previous lines in the sand – In past negotiations Obama has failed to stick to his previous lines in the sand. Obama did not stick to his demand that the Bush tax cuts end for income over $250,000. Similarly despite saying he would not play games with the debt ceiling, Obama seemed to treat it as just another bargain chip when trying to get a deal with John Boehner.

2) Dismissing unilateral action – The Obama administration has dismissed unilateral action to address the debt ceiling. Doing something like invoking the 14th amendment would probably be the easiest way to defuse the fight, but the administration has declared that “not an option.” Even if the Obama team didn’t think it was a legally viable solution by completely removing the threat it has weakened its bargaining position.

3) Allowing the creation of a new super cliff in two months – When WP Joe Biden took over the negotiations from Sen. Harry Reid the major concession he made was to have only a two month delay of the sequestration cuts instead of a one year delay.

Meanwhile the “irrational exuberance” of Wall St’s feral children over the tax deal abounds with the markets closing on a high. Let’s see what happens in two months when we sit on the edge of another cliff.

Cross posted from The Stars Hollow Gazette

Late last night the House of Representatives voted to pass the Senate’s “Fiscal Cliff” bill and, by unanimous consent a few meaningless bills that will go nowhere. What they didn’t do, that Speaker John Boehner (R-OH) had promised they would, was pass the $60.4 billion Sandy Relief Bill that passed the Senate last week. The reaction from the regions representatives was scathing, especially from Republicans.

“I’m saying right now, anyone from New York or New Jersey who contributes one penny to Congressional Republicans is out of their minds,” Representative Peter T. King, a Long Island Republican, said during an interview on CNN on Wednesday morning. “Because what they did last night was put a knife in the back of New Yorkers and New Jerseyans. It was an absolute disgrace.”

And Representative Michael G. Grimm, a Republican from Staten Island, said the failure to vote was a “betrayal.” He urged that action be taken as soon as possible.

“It’s not about politics,” he said. “It’s about human lives.” [..]

President Obama issued a statement Wednesday calling for an immediate vote.

“When tragedy strikes, Americans come together to support those in need,” he said. “I urge Republicans in the House of Representatives to do the same, bring this important request to a vote today, and pass it without delay for our fellow Americans.”

Gov. Chris Christie of New Jersey, a Republican, and Gov. Andrew M. Cuomo of New York, a Democrat, released a joint statement condemning the decision not to vote on the storm aid bill this week.

“With all that New York and New Jersey and our millions of residents and small businesses have suffered and endured, this continued inaction and indifference by the House of Representatives is inexcusable,” they said. They added, “This failure to come to the aid of Americans following a severe and devastating natural disaster is unprecedented.” [.]

“Denying emergency aid to Superstorm Sandy victims is a new low for House Republicans,” said Senator Frank R. Lautenberg, a New Jersey Democrat. “When our neighbors in other states are knocked down by emergency events, we put partisan politics aside and extend a helping hand to help them get back up. Helping struggling families recover from disasters has never been a partisan issue in Washington and it never should be. New Jersey and New York families have been hurt badly by Sandy and it is shameful that Washington Republicans are adding to their pain by standing in the way of their recovery.” [..]

“Speaker Boehner’s failure to allow vote on Sandy bill is a disgrace,” Mr. Schumer said in a statement. Senator Kirsten E. Gillibrand, a Democrat from New York, issued a blistering statement on Wednesday morning, calling the inaction “indefensible and shameful.” She called on Mr. Boehner to visit damaged neighborhoods on Staten Island and in the Rockaways, but said, “I doubt he has the dignity nor the guts to do it.”

“Speaker Boehner should call his members back for an up-or-down vote today and allow them to vote their consciences,” she said. “Anything less is an insult to New York.”

Outgoing chair of the House Homeland Security Committee, Rep. Peter King (R-NY), who represents part of the area devastated by Sandy, was the most scathing.

“It pains me to say this. The fact is the dismissive attitude that was shown last night toward New York, New Jersey, and Connecticut typifies a strain in the Republican party”

“I can’t imagine that type of indifference, that type of disregard, that cavalier attitude being shown to any other part of the country. We’re talking about real life and death situations here.”

It was in the low 20º F’s here in NYC this morning with wind chill factors near 0º F. There are still thousands living in homes and apartment buildings that have intermittent to no heat, hot water, or electricity. For many food and medical care is still a crisis. The official death toll from the storm is about 143 for the region. The fact is there are many more deaths that can be attributed to the storm, either from accidents or exacerbation of medical conditions from stress or lack of access to medical care or medications. The fears now is that people will die from hypothermia in their own homes that they fear to leave because of vandalism. Most have lost everything and have struggled to keep what is left and rebuild their live, they are afraid to leave and still willing to risk their lives to keep what is left. Yet, the House leadership has left for vacation refusing to do their jobs.

I don’t often agree with Peter King, as a matter of fact I can’t recall ever agreeing with him, but he spoke for me and everyone living here in the region, especially those still struggling to survive.