
Tuesday, February 7, 2012
Asking Not

Tuesday, November 22, 2011
The Republican Brand: An Empty Hat

Monday, September 19, 2011
Hating Obama and Raising Money
There are two messages being sent to us by the House of Representatives. "Hate Obama. Vote Republican." The other message is, "Save the Rich. GOP Now." But, the question the American people want answered is, "How are you going to guide the country?" Pending focus groups, we’ll have to wait for an answer. Meanwhile, House Republicans showed the country that they do not think that trust is an issue. They did two things last week to prove that. First, they voted for the country to default, which would increase the deficit they oppose. Second, they voted to help send jobs overseas, which they excoriate. They also seek reelection at the time when their approval rating is less than 13% and expect the country to reward such delusional behavior.
That will work if the country is delusional, too.
On September 13 the House passed a resolution of disapproval of the debt ceiling deal that they passed in August. They had also granted themselves the right to pass a resolution saying they disapproved of it. They passed such a resolution. I did not make that up. Never mind that the Senate has already rejected their attempt to put the country into default and that House Republicans do not have enough votes to overcome a presidential veto. They passed it anyway.
HJR 77 says, “Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That Congress disapproves of the President’s exercise of authority to increase the debt limit, as exercised pursuant to the certification under section 3101A(a) of title 31, United States Code.”
To put this in context, the Republican House also passed the "Protecting Jobs From Government Interference Act" just two days later. According to the GOP, HR 2587 essentially prevents the National Labor Relations Board from doing its job, which is what “government interference" means to them. They do not say that, naturally, but that is what the bill does. The other thing it does is to pander to the corporations that fund the Republican Party.
“This bill dismantles key functions of the National Labor Relations Board and guts more than 70 years of established labor law in our country,” said Congressman Pete Stark (D-CA) in opposition. “If this legislation becomes law, it would eliminate nearly all worker protections when companies illegally fire workers and close or move plants in retaliation for union activities.”
Remember the GOP “Pledge to America?” It promised a “government more transparent in its actions” and “honest in its dealings.” They lied or forgot about it.
Today’s consumer confidence rating is the fourth lowest since 1952, according to GOP pollster Bill McInturff. “The collapse of confidence in government has substantially eroded already weak consumer confidence.” The debt ceiling negotiation profoundly reshaped our view of the economy and the federal government that has yet to be realized in full measure. “It has led to a scary erosion in confidence . . . at a time when this steep drop in confidence can be least afforded.”
When the GOP’s McInturff says, “We are entering a new phase of the American political dialogue that has been irrevocably shifted in a way that will prove difficult to predict,” he is not kidding. Why would he? By its actions however, the GOP does not seem to care about such cause and effect. It seems to think that default is an option. It seems to care more about the party itself and raising money than it cares about the best interests of American people and real governance.
Hating Obama is a posture, not a policy. The resuscitation of Republican party that brought enough new members to the 112th Congress to create a majority succeeded by rallying contempt for the new Democratic administration, personified by the president. HJR 77 and HR 2587 are more posturing. Neither bill advances a course of action to address chronic U.S. unemployment or to improve our anemic economy. Neither bill demonstrates smart opposition. Instead they lend credence to the cynical observation that the GOP agenda is to maintain the recession in order to win a national election.
Hating Obama and raising enough money to mount a successful campaign may not be as mutually sustainable as the GOP seems to believe.
Friday, August 26, 2011
I Should Live So Long
Thursday, August 25, 2011
Eric Cantor's Rhetorical Deniability
An important part of being a politician is to keep your name before the public in the press. House Majority Leader Eric Cantor (R-VA) did a lot of that recently in the debt ceiling hostage taking by the Tea Party wing of the GOP as its articulate spokesperson and rising star. While congress is on vacation, to keep his name in the press, Cantor has signed off on an opinion piece in the Washington Post, “Removing the obstacles to economic growth.” He says there are two: “The first is the federal government’s debt crisis” and “The second is the jobs crisis.” He should know since his majority is responsible for creating the first one and for doing nothing about the second one. Cantor blames President Obama for each.
The real problem with extreme government debt would be the interest burden it would create. If interest payments reached 12% of GDP, that could cause a government default. The US is far from reaching that point. However, it was using the debt ceiling to extort political concessions that made a routine financial process look like the crisis it became. Cantor kept his name in the press then by walking out of negotiations with Vice President Biden.
According to Cantor, however, “the Obama administration’s anti-business, hyper-regulatory, pro-tax agenda has fueled economic uncertainty and sent the message from the administration that ‘we want to make it harder to create jobs.’” HR 1745 takes money away from the long-term unemployed. Where is the job creation in that?
To be fair, Cantor's deputy chief of staff Rob Collins said the congressman didn't know the bank was seeking bailout money and never interceded on the bank's behalf with government regulators. Additionally, a spokesman for the bank said Diana Cantor had nothing to do with the operation of NYPBT and was "never aware that the parent bank was seeking or received [bailout] funding."
Last year the Wall Street Journal reported, “Eric Cantor, the Republican Whip in the House of Representatives, bought up to $15,000 in shares of ProShares Trust Ultrashort 20+ Year Treasury ETF last December, according to his 2009 financial disclosure statement. The exchange-traded fund takes a short position in long-dated government bonds. In effect, it is a bet against U.S. government bonds—and perhaps on inflation in the future.”
Rhetoric and deniability are common in politics and in court. The Department of Justice is investigating the US credit downgrades by rating agencies Standard & Poor and Moody. The downgrade is a direct outcome of the debt ceiling crisis which congressional Tea Party members and House Majority Leader Cantor championed. The credit downgrade also spooked the markets. Cantor’s piece may keep him in the public eye, but it obfuscates the fact that the crisis and the downgrade cannot be laid at the president’s feet. They can be laid at Mr. Cantor’s.
Article first published as Eric Cantor’s Rhetorical Deniability on Blogcritics.
Monday, May 2, 2011
Peace and Prosperity: Nothing Personal
People are not going to like what any president does. Many people are not going to like the person, as is the case with Barack Obama and to a greater extent than to George W. Bush. Conservatives revere the Bush presidency, especially its tax cuts and its waging wars. They despise Obama for trying to undo both of those situations as if it’s personal. They seem to hate peace and prosperity.
What’s more, in the middle of that period -- February 4, 2003, to be exact -- White House budget chief Mitch Daniels conceded that the budget would remain in deficit for the next decade. According to Slate, “a Feb. 3 White House fact sheet lays down the Bush line: The budget would be in double digit deficit if had there never been a tax cut in 2001.” Republicans blame run-away spending, now.
The elephant in the living room is the deficit financing of two wars. End the wars and we apply a tourniquet to the deficit spending that requires raising the debt ceiling. Since March 1962, that ceiling has been raised 74 times and ten of those times have occurred since 2001. If President Obama is to be despised for anything, it must be for attempting peace and prosperity. It’s nothing personal.
Article first published as Peace and Prosperity: Nothing Personal on Blogcritics.
Thursday, April 28, 2011
Another Fake Debate: Raising the Debt Ceiling
Time Magazine used the word “zoom” with respect to the “public debt” in a 1941 article and said, “The President questioned the meaning of a legal debt limit, hinted that there should be no legal limit.” There were only newspapers, magazines, movie theatre newsreels and radio to report that the 1940 Democratic platform “made no mention of that fiscal dodo, that old museum piece: a balanced budget. Franklin Roosevelt held to precedent—he didn't mention it, either.”
Bear in mind that the idea of a federal budget was relatively new. Up until 1921, the president did not have much of anything to do with hashing out budget, other approving or disapproving it as the head of his political party. The Budget and Accounting Act of 1921 created the U.S. General Accounting Office (GAO) as part of the Legislative Branch. Its job was to audit federal books and prevent fraud. In the Executive Branch, the 1921 legislation created the Bureau of Budget to coordinate budget submissions by various departments and agencies.
Former Treasury Department economist Bruce Bartlett wrote in Forbes, “Deficits primarily resulted from wars, and strenuous efforts were always made to pay them off as soon as possible afterward. On those occasions when the Treasury needed to sell bonds, each individual bond issue had to be specifically authorized by Congress.”
The federal budget is actually on automatic pilot, anyway. The reality is that neither Congress nor the presidents have anything so say about it. “If you take all the earmarks, unnecessary weapons systems, waste, fraud and abuse and everything else you can think of that deserves to be cut, it still adds up to drops in the ocean compared to Social Security and Medicare,” Bartlett says. “As long as those programs are off limits the president's budget will continue to decline as a matter of political and economic importance.”
As to the meaning of the debt ceiling that President Roosevelt questioned, since March 1962 the debt ceiling has been raised 74 times. According to the Congressional Research Service, 10 of those times have occurred since 2001. Theoretically, the debt ceiling limit is supposed to help Congress control spending. However, in reality, the debt limit is ineffective in controlling spending and deficits. Politicians and reality continue to be strangers to one another.
Here is where the appearance of a showdown gets legs. “Administration officials say even GOP firebrands won’t risk a national default and an international financial meltdown,” according to Politico. “There is a growing sense among all parties that President Barack Obama won’t be able to extend the credit limit without making significant new concessions to congressional Republicans.”
Democrats have leverage, however. “There are obviously divisions in the GOP among the leaders and the people pursuing their dumb notions of linking [cuts] to the debt vote,” said Representative Barney Frank (D-MA). Speaker John Boehner (R-OH) has repeatedly said the limit needs to be raised. Representative Eric Cantor (R-VA), Boehner’s number 2 in the House, is keeping with his alliance with tea party conservatives and taking taken a tougher line. But that’s all it is – a line.
Conservative strategists are warning that the GOP should not push the debt ceiling debate too close to the breaking point. According to the Huffington Post, “If there is a vote on raising the debt ceiling and it fails, there will be a significant market reaction,” said Tony Fratto, a former Treasury and White House official in the Bush administration. “Investors already believe that Congress doesn’t understand the financial markets. A failure to raise the debt ceiling will confirm this to them."
The country is already sour on congress. Gallup reports, “Congress' approval is at 17%, essentially unchanged from last month's 18%, and identical to where it was just after last November's midterm congressional elections. The current rating is just four percentage points above the all-time low of 13% from December.”
Gallup also reports that neither the budget nor unemployment is Americans' top overall concern. “That distinction belongs to the economy, by a significant margin over any other issue. The economy has placed first or second on the list each month since February 2008.” Even so their polling shows that “Independents and Republicans are both twice as likely as Democrats to say the budget is the most important problem. In turn, Republicans are less likely than Democrats and independents to view unemployment as the top problem.”
Pew Research March survey found that 34% of Americans said the economic issue they found most worrisome was “the job situation,” followed by rising prices (28%) and then the budget deficit (24%). The survey also said, “The number citing the deficit as their top economy worry had increased from 19% in December. Concern over rising prices increased even more dramatically -- from 15% in December to 28% in March.”
Pew Research also found that with respect to Obama’s handling of the federal budget deficit, 33% approved and 59% disapproved. However, when asked whether the GOP or President Obama has the better approach on the deficit, “most Americans (52%) say there is not much difference between the two sides -- and Republicans have lost ground on this measure, among their own base, since November.”
Not surprisingly the New York Times/CBS poll finds pretty much the same results. Of Barack Obama’s handling the federal budget deficit, 33% approve and 59% disapprove. Of the way the Republicans in Congress are handling the federal budget deficit, 27% approve and 63% disapprove. As to the way Congress is handling its job, 16% approve and 75% disapprove. Congress beats the president in disapproval.
H.L. Menken said, “The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary.” The recent House Republican habit of creating fake debates and backing losing legislation would seem to confirm Menken’s observation. However, its Barney Frank who calls the raising the deficit ceiling debate best. “In the end, the Republicans are not going to be able to withstand the pressure from the business community, the guys who finance their campaigns. … In the end, they have to do this.” Posturing about the debt ceiling is another fake debate.
Thursday, February 3, 2011
Landmark or Landmine: Roe v Wade
“I am committed to protecting this constitutional right,” President Obama said in a statement. “I also remain committed to policies, initiatives, and programs that help prevent unintended pregnancies, support pregnant women and mothers, encourage healthy relationships, and promote adoption.” Mr. Obama said the 1973 Supreme Court ruling “affirms a fundamental principle: that government should not intrude on private family matters.”
We’ll see how that commitment works.
The phrase that it “ain’t what you say, it’s the way that you say it” comes to mind whenever I consider landmark Supreme Court decisions, none more so than that of Roe v Wade. Whenever the 38-year-old case comes up, the next words to follow are “that legalized abortion.” Those three words express an often repeated opinion of what the Court ruled when it struck down Texas criminal abortion statutes as “…vague and over broadly infringing the plaintiffs' Ninth and Fourteenth Amendment rights.”
What the ruling says is different than such a “that legalized abortion” modifier. It would be more accurate to say of Roe that “the unborn have never been recognized in the law.” In fact, it is exactly what Justice Harry Blackmun wrote. Roe is not about abortion.
Roe is about the right to privacy which, while not specifically articulated in the Bill of Rights, comes from a previous landmark decision, Griswold v Connecticut. In that 1965 case, the Court identified a constitutionally protected right to privacy, which the Court reasoned prohibited states from denying birth control to married couples. In that case the Court ruled that the Constitution protected a right to privacy by the due process clause of the Fourteenth Amendment.
As the Roe decision declares, “State criminal abortion laws, like those involved here, that except from criminality only a life-saving procedure on the mother's behalf without regard to the stage of her pregnancy and other interests involved violate the Due Process Clause of the Fourteenth Amendment, which protects against state action the right to privacy, including a woman's qualified right to terminate her pregnancy.”
It is not a carte blanche for the termination of pregnancy, however, as Justice Blackmun wrote. “We, therefore, conclude that the right of personal privacy includes the abortion decision, but that this right is not unqualified, and must be considered against important state interests in regulation.”
The controversial nature of public opinion relating to abortion and to the Roe decision is polarized. The opposing sides try to be careful with their use of language, as in what they call themselves: Abortionists or Pro-Choice on one side and Anti-Abortionists or Pro-Life on the other. Both sides are highly politicized and their confrontations have a history of violence.
The prevailing view of the Pro-Choice side is characterized by organizations such as the National Abortion Federation. As a “professional association of abortion providers in North America,” the NAF says, “We believe that women should be trusted to make private medical decisions in consultation with their health care providers. NAF currently offers quality training and services to abortion providers and unbiased information and referral services to women.”
The more activist Pro-Life side is characterized by organizations such as the Pro-Life Action League, which organizes and participates in marches, such as the recent one in San Francisco. The League says, “We confront the abortionists and abortion promoters wherever they are. We picket and demonstrate outside abortion facilities, pro-abortion events, the offices of abortion organizations like NOW and Planned Parenthood and even abortionists' houses. We infiltrate their meetings and groups.”
Each side of the abortion issue has a different position on when life begins, at conception or later. It is an argument that has its roots in the 19th Century. But the Roe v Wade decision side steps that debate, leaving it outside of the rule of law.
“Texas urges that, apart from the Fourteenth Amendment, life begins at conception and is present throughout pregnancy, and that, therefore, the State has a compelling interest in protecting that life from and after conception. We need not resolve the difficult question of when life begins. When those trained in the respective disciplines of medicine, philosophy, and theology are unable to arrive at any consensus, the judiciary, at this point in the development of man's knowledge, is not in a position to speculate as to the answer.”
If the debate is outside of the rule of law, it is not outside of the legislation of laws. The American Civil Liberties Union cautions that Congress is trying attempting to legislate around the Roe decision, “making access to abortion services harder to obtain for low-income women.” The ACLU says, “No woman plans to have an abortion, but that is the point of health insurance.” It contends, “That’s why the majority of plans currently include coverage for abortion care. Politicians should not be working to take away coverage that already exists for most women.”
While that may or may not be, the question becomes how legislators will respond to their constituencies and to public opinion. The group Priests for Life president, Father Frank Pavone, asserts that even after 38 years the public still does not understand what the ruling in Roe means. “Perhaps it is more accurate to say our nation is beginning to awaken to the fact that Roe’s policy – imposed by a Court rather than voted on by the people’s representatives -- has never represented what the majority of Americans think about abortion.” Perhaps.
So, what is that thinking? Let us turn to Gallup where you too can look at the data. Two years after the 1973 Roe v Wade ruling “gave sweeping constitutional protection to abortion”, Gallup asked Americans to say whether they believe abortion should be "legal under any circumstances," "legal only under certain circumstances," or "illegal in all circumstances."
The survey results said, “In the most recent period, from 2005 to 2009, the majority of all age groups favored the middle "legal only under certain circumstances" position.” Gallup further observed that even though the topic of abortion is a contentious social issue, “in recent years, the generational distinctions have blurred.” Gallup asked about abortion, not about the right to privacy.
Given the mood swing of the country that put a new Republican majority in Congress with its avowed anti-abortion agenda, the President’s right to privacy commitment is either to a Constitutional landmark or to a political landmine.
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Originally published on Blogcritics, January 25, 2011
Thursday, July 8, 2010
McChrystal and Steele: Please Fire Me
It takes tremendous ego to hold jobs such as there’s. General McChrystal’s job was taking the fight to our enemies in hot pursuit with overwhelming firepower. Chairman Steele’s job was to conduct overwhelming fundraising for national campaigning. Egos notwithstanding, insubordinate opinion made public compromised their competence in each of their positions. The issue is not the content of what each man said. The issue is competence in their positions.

The issue of having interviews and stories approved comes up from time to time, as it did when the US Army invaded Grenada and again in the first Gulf War. It will not under Petraeus. His boss, Secretary of Defense Gates says so. Besides, Petraeus knows how to successfully utilize command staff. For example his Civil Affairs Officer will not hesitate to step on an interview with his commander, like start coughing loudly or getting between the reporter and his boss. Reporters will hear the magic words, “That is all the time the General has for you” and the interview is over.
The Army is all about organization and structure. Not surprisingly, there is nothing magical about how things are to be conducted. There are field manuals like FM 41-10 that includes the topic of press relations in peace and in war times. There are rules and service schools that teach those rules. The Defense Information School (DINFOS) is where Public Affairs Officers are taught how to perform in their G5/S5 staff positions.
The Republican National Committee has an organizational structure that is headed by a Chairperson. Not unlike a CEO to a board of directors, the Chairperson serves at the pleasure of committee and is responsible to it for increasing the value of the RNC. The committee is responsible to registered Republican voters nationally for getting Republican candidates elected. Donations have decreased significantly under Mr. Steele’s chairmanship, a decrease in value. CBS News reports that “donors who were once reliable RNC fundraising sources are now looking elsewhere, prompted by fears that Steele will not effectively manage their contributions.” While his contrary and inaccurate public opinions are interesting, devaluing the RNC is the result of poor stewardship. Mr. Steele has demonstrated that he is incompetent in that position.
The committee should have no choice. For Steele to remain as Chairperson is an example of the elite hypocrisy the committee has allowed. It is also quite cynical because it sets up Mr. Steele to take the fall for the results of the upcoming No

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Wednesday, March 31, 2010
Last Frontier of Sedition
One of the drawbacks liberals face is the fact that although we may find the words of such rousers as Sarah Palin distasteful, we will still defend her right to say those words. What we need to remember, however, is that our defense of the right to free speech does not extend to seditious speech. Palin and the Tea Party have entered sedition’s last frontier.
The recent pseudo-event with Sarah Palin headlining the Tea Party Express' Showdown in Searchlight, she addressed a throng of 9-thousand and attempted to sell a negative message to the disenfranchised of that crowd. Her disingenuous rhetoric aside, Sam Adams would have been proud of her. Sam knew a thing or two about pseudo-events and inciting a crowd. He headlined the original Boston Tea Party and proved that when you win a war, your thugs become patriots. Sedition is what gets things going.
Here is the short version. Sedition is “any act, writing, speech, etc., directed unlawfully against state authority, the government, or constitution, or calculated to bring it into contempt or to incite others to hostility, ill will or disaffection; it does not amount to treason and therefore is not a capital offense.”
After Palin posted the rifle scope cross hair target map on her Facebook page, she entered the frontier of sedition using Twitter. “Don’t Retreat, Instead – RELOAD!” And on national television, in U.S. Senate Majority Leader Harry Reid’s hometown of Searchlight, Nevada, Palin proclaimed to the crowd that the big-government, big-debt spending spree of the Senate majority leader, Obama and House Speaker Nancy Pelosi is over. “You’re fired!” she said.
The Donald Trump tag line is from the hit TV show "The Apprentice,” produced by Mark Burnett who also produces “Survivor.” Burnett is about to produce “Sarah Palin’s Alaska.” The Learning Channel is said to be paying more than $1 million per episode for that Palin business. We will see what other words are loaded to her lips. Having loaded lips will be an audience pleaser since Palin gets $100 thousand per appearance.
Sarah Palin is like Anna Nicole Smith with glasses – known for being known and not standing for anything. It is fine to be a celebrity of a rally circuit in tertiary US metro-markets. It seems a bit much for the 6 figures pay for her to declare to the multitude “We're not going to sit down and shut up. Thank you for standing up." You’re welcome, but what are we supposed to do now that we are standing? In the frontier of sedition, this is where they pass out hoods for us to wear.
Tuesday, February 10, 2009
Fairness: the Fake Debate
Someone needs to explain why it is that conservatives continue to insist that liberals want to reinstitute the FCC’s 1949 Fairness Doctrine. While it is true that the old regulation is brought up from time to time, it has no traction in either the House of Senate. The administration is opposed to it. The Supreme Court would rule against it. Still, conservative talk radio continues to chant about the “Hush Rush Bill’ as if were a real threat with real backing. It isn’t, it doesn’t and it’s not going to happen. Nor will the sky fall.
Before you start to write your commentary about Nancy Pelosi, stop for a moment. The speaker of the House has been quoted as saying she supported the Fairness Doctrine by John Gizzi, Political Editor of Human Events, which calls itself the “Headquarters of the Conservative Underground.” He asked a yes-no question and she said yes at a Christian Science Monitor luncheon they both attended. She also said no, she didn’t think it would come to the floor for a vote. It is an issue for which the speaker does not express a majority opinion.
Perhaps someone can also explain how it is it that conservatives (“disposed to preserve existing conditions, institutions, etc., or to restore traditional ones, and to limit change”) use the word liberal as an adjective of derision as in the term liberal media or liberal socialist agenda such as “state aid for the betterment of the working classes.” That socialism is some kind of evil.
How could mainstream media be anything other than liberal (“favorable to or in accord with concepts of maximum individual freedom possible, esp. as guaranteed by law and secured by governmental protection of civil liberties”)? Being liberal minded requires reporting both sides of any issue, which defines fairness in and of itself without any regulation to be fair.
The conservative mantra that their champion Ronald Reagan struck down the Fairness Doctrine is incorrect. His son Michael claims in his blog, Michigan Redneck II, “My dad, President Reagan, killed the ‘Fairness Doctrine.’ As a result, this rule change allowed Rush, Hannity, and me to have radio talk shows — that’s why the new proposal to bring it back is being called the ‘Hush Rush’ bill. Now the liberals are dying to shut us up.”
No, the president did not. The FCC overturned the regulation. What President Reagan did was to veto a congressional attempt to make the regulation a law. The Supreme Court set the stage for the FCC to dump the regulation in 1984 (FCC v. League of Women Voters, 468 U.S. 364). The regulation came up again in 1993 and failed. Neither Congress nor the Clinton administration supported it.
There is a difference between a regulation and a law. Section 315 of the Communications Act of 1937 was federal law passed by Congress. It required broadcast stations to offer "equal opportunity" to all legally qualified political candidates for any office if they had allowed any person running in that office to use the station. The Fairness Doctrine was simply FCC policy, a regulation the FCC dumped as unconstitutional in 1987. After Meredith Corp. v. FCC, the Supreme Court declared that the Doctrine was not mandated by Congress and the FCC did not have to continue to enforce it.
For the record, as an independent regulatory agency, the FCC has the power to reimpose the Fairness Doctrine at anytime without action by either the executive or legislative branches. It should not be confused, but often is, with the Equal Time rule. The Fairness Doctrine deals with matters of public importance, not political opinion. The Equal Time rule only deals with political candidates.
Nonetheless a fake debate about the Fairness Doctrine continues. “In 1980 there were fewer than 100 radio talk shows nationwide. Today there are more than 1,400 stations entirely devoted to talk formats. Liberals, not satisfied with their domination of academia, Hollywood and most of the mainstream media, want to kill talk radio, where liberals have been unable to dent conservatives' dominance,” George Will wrote in the Washington Post.
Will’s colleague Michael Gerson wrote that “three hours of Rush Limbaugh on a radio station would have to be balanced by three hours of his liberal equivalent. This may sound fair and balanced. But it would destroy the profitability of conservative talk radio and lead other outlets to avoid political issues entirely -- actually reducing the public discussion of controversial issues.” They also both wrote that in 1987 President Reagan “eliminated” (Will) or “overturned” (Gerson) the 1949 FCC regulation.
While they are both wrong about Reagan, they do not demonstrate much knowledge about radio. If conservatives dominate talk radio, it is because it’s cheap. Talk radio doesn’t cost a radio station anything except electricity. Typically the air-time is brokered and the talker pays for the time. Rush Limbaugh, Laura Ingraham and Dr. Laura Schlessinger, for example, are not so much radio personalities as they are media companies. Their concern about the Fairness Doctrine is literally lip service.
They do have large audiences and wield influence. Sometimes their influence works against them. One of my former radio colleagues, Gary Nelson of WFOR TV4 Miami, recently wrote, “About the vitriol on talk radio, in doing a piece the day after the election, on Bush losing the Hispanic vote, I interviewed a Colombian-American voter who said he had been a Republican all his life and had never voted for a Democratic presidential candidate. He said the ‘mean-spirited’ attacks on Obama changed him. ‘Rush Limbaugh cost John McCain my vote,’ he said.”
President Barack Obama is expected to appoint longtime friend Julius Genachowski as chairman of the Federal Communications Commission. Mr. Genachowski also has a Harvard background as a legal scholar and was a Supreme Court law clerk. That may lead him to play a stronger role in determining legal strategy on FCC court cases, normally a Justice Department task. When Genachowski does become FCC chairman, his biggest immediate task will be working on the digital TV transition. The Fairness Doctrine does not appear on his docket.
As to the conservative assertion that the White House will sign Fairness Doctrine legislation, that is far from likely. The President opposes it. As he said in his inaugural address, “To those who cling to power through corruption and deceit and the silencing of dissent, know that you are on the wrong side of history.”
The broadcast media of 1949 has its own chapter in history, as will the Internet sixty years from now. Today we have right wing and left wing media. Some are even in the middle. There is one thing that Rush and both Lauras have to fear about being silenced: listeners changing stations. As to a new, improved, rebranded Fairness Doctrine, forget about it. It is not going to happen.
Thursday, January 29, 2009
Broke Banks Mounting
If ever there was an industry that needs some positive public relations, it is banking. Bank failures have become common place. In Georgia, for example, there have been five bank failures in the last five months and the hits just keep on coming. Another fifteen banks are expected to go under this year, more than twice the number that collapsed there during the savings and loan crisis twenty years ago.
Until last year, California had seen only 3 bank failures during the previous decade – in 1999, 2000 and 2003. According to the FDIC, California suffered 5 bank failures in 2008 alone.
· PFF Bank and Trust, Pomona, California, closed.
· Downey Savings and Loan Association, F.A., Newport Beach, California, closed.
· Security Pacific Bank, Los Angeles, California, closed.
· First Heritage Bank N.A., Newport Beach, California, closed.
· IndyMac Bank, F.S.B., Pasadena, California, closed. (The FDIC was named Conservator.)
Banking is a highly regulated business. Despite news commentaries that bankers got greedy as banks were deregulated and became corrupt, bank consumers have protection. In the case of IndyMac Bank, the third-largest bank to fail in American history, a run on deposits and rising defaults made Federal regulators seize it.
The mortgage loan portion of the banking business earned derision for being lax and, in some cases, predatory in its lending practices. Federal Reserve Chairman Ben Bernanke says that a sustained economic recovery may require additional bailouts of financial institutions. However, the business loan portion of banking has become the collateral casualty that threatens the country’s economic recovery.
As a business management consultant experienced in dealing with bankers on behalf of my clients, it is clear to me that business loan criteria are in flux. Even clients with excellent credit, strong assets and positive history are being denied new loans and are incurring decreased credit lines. New financing does not seem to be happening. Does that mean banks are not lending money to small businesses? They say that they are but that assertion is inconsistent with my clients’ are experiences.
Banks make money by selling the use of money, right? “If the borrower provides the bank with both a belt and a pair of suspenders,” Joe Nocera wrote in the New York Times, “the loan is being granted.” However, “[i]n addition to not making new loans, the banks are systematically withdrawing commitments and capital from the economy.”
So what about the Economic Stimulus Package of 2008? It is about tax breaks for businesses that spent money on property and vehicles last year while their credit lines were getting trashed. According to the Packages press release, “This new legislation will not only benefit small businesses in a variety of ways, but it will also provide an economic boost to the entire nation.” Bold words in that generalization do not change the fact that “there are exceptions and additional requirements.” Tax credits for small businesses that create jobs sound fine, but it takes money to make the payroll to pay for the jobs to qualify for the tax credits.
Consider this: it is not that bankers are greedy, they are just not thinking of anything except their bank as directed from the home office. They do not make informed decisions, they just react. That is not greedy, that is stupid. Additionally, from the previous bailout round of the dying days of the Bush Administration, there is no mechanism to hold the banks accountable for putting bailout money into circulation.
Bank accountability is about to change with the new administration. Specifically, the government might force banks to make loans they would otherwise avoid. It is certain that the Obama administration wants to avoid more stupidity, such as those of the Bush Treasury secretary, Henry Paulson “who sold Congress on an elaborate strategy for shoring up banks and then shifted to an entirely different approach before he even got started.”
A retreat is in order. Banking and bank shareholders have no choice but to go along with a change that will mean making less money by taking less risk.
Meanwhile, forces for the benefit of small business—the largest aggregate employer in the United States -- are seeking the administration’s ear. The National Development Council wants a $75 billion small business stimulus package and a Cabinet-level position to coordinate federal resources for small businesses. Additionally, the National Small Business Association is seeking congress’s ear, asking for 25 percent of TARP funds to be aimed at small business lending and a mandate that 23 percent of stimulus infrastructure funds be contracted out to small businesses. Both are debatable requests.
Another debatable move is that of credit card companies like American Express. In November the Federal Reserve granted a request by American Express to become a bank holding company and access to low-cost financing from the Fed. Just like the banks, Amex also cuts back credit lines regardless of business or personal credit worthiness or history. The credit card business is a trillion dollar a year industry, cunning, predatory and greedy.
At the top of the banking food chain are some serious minded criminals who got away with being sharks in the Bush Administration’s pool. While the former president may avoid prison, I hope that those lesser crooks at the top serve time. Nor do I believe that bank shareholders, whom the crooks served, should prosper at taxpayer expense while the banking system undergoes its overhaul.
Small business needs direct financial help to grow our pillaged economy and to create the jobs promised by the new administration. Tax credits alone cannot make job growth happen. The new congress and administration need to hear from us. We will have to make prosperity happen. They will have to help us.