Right-wing candidate Herman Cain can’t be defeated by supporting evil policies…yet gets laid low by getting caught getting laid.
Jobless? Face It: Obama’s Not That Into You
Forget Herman Cain’s 9-9-9. The battle cry for every American ought to be 7-7-7.
7-7-7: for the $7.7 trillion the Bush and Obama Administrations secretly funneled to the banksters.
Remember the $700 billion bailout that prompted rage from right to left? Which inspired millions to join the Tea Party and the Occupy movements? Turns out that that was a mere drop in the bucket, less than a tenth of what the Federal Reserve Bank doled out to the big banks.
Bloomberg Markets Magazine reports a shocking story that emerged from tens of thousands of documents released under the Freedom of Information Act: by March 2009, the Fed shelled out $7.77 trillion “to rescuing the financial system, more than half the value of everything produced in the U.S. that year.”
The U.S. national debt is currently a record $14 trillion.
We knew that the Fed and the White House were pawns of Wall Street. What’s new is the scale of the conspiracy.
Even the most jaded financial reporters were stunned at the extent of collusion: “The Fed didn’t tell anyone which banks were in trouble so deep they required a combined $1.2 trillion on Dec. 5, 2008, their single neediest day. Bankers didn’t mention that they took tens of billions of dollars in emergency loans at the same time they were assuring investors their firms were healthy. And no one calculated until now that banks reaped an estimated $13 billion of income by taking advantage of the Fed’s below-market rates.”
Citigroup earned an extra $1.8 billion by reinvesting the Fed’s below-market loans. Bank of America made $1.5 billion.
Bear in mind, that’s only through March 2009.
“Many Americans are struggling to understand why banks deserve such preferential treatment while millions of homeowners are being denied assistance and are at increasing risk of foreclosure,” wrote Representative Elijah Cummings, a ranking member of the House Committee on Oversight and Government Reform who is demanding an investigation.
Indeed we are.
This stinks. It’s terrible economics. And it’s unbelievably cruel.
First the economics. The bank bailouts were supposed to loosen credit in order to encourage lending, investment, job creation and ultimately consumer spending. It didn’t work. Banks and corporations alike are hoarding cash. President Obama, who promised 4 million net new jobs by earlier this year, has been reduced to claiming that unemployment would have been even higher without the bailouts.
Ask any business executive why nobody is hiring and they’ll blame the lack of consumer demand. If the ultimate goal is to put more money into people’s pockets, why not just, you know, put more money into people’s pockets?
Bank executives used federal taxdollars to pay themselves tens of billions in bonuses and renovate their corporate headquarters. We the people got 0-0-0. What if we’d gotten 7-7-7 instead?
Every man, woman in child in the United States would have received $24,000.
A family of four would have gotten $96,000.
And that’s without an income test.
New data from the U.S. Census Bureau shows that 100 million American citizens—one of out of three—subsists below or just above the official poverty line. Demographers, statisticians and economists were stunned. “These numbers are higher than we anticipated,” Trudi J. Renwick, the bureau’s chief poverty statistician, told The New York Times. “There are more people struggling than the official numbers show.”
For four decades progressive economists have warned that the middle-class was being eroded, that the United States would become a Third World country if income inequality continued to expand. They can stop. We’re there.
These poor and “near poor” Americans comprise the vast majority of the uninsured, un- and underemployed, and foreclosure victims. If Bush-Obama’s 7-7-7 Plan had gone to each one of these 100 million misérables instead of Citigroup and Bank of America, the IRS would have mailed out 100 million checks for $77,700 each.
This would have paid off a lot of credit cards. Kept millions in their homes, protecting neighborhood property values. Allowed millions to see a doctor. Paid for food.
A lot of the money would have been “wasted” on new cars, Xboxes—maybe even a renovation or two. All of which would have created a buttload of consumer demand.
If you’re a “99er”—one of millions who have run out of unemployment benefits—Obama’s plan for you is 0-0-0.
If you’re one of the roughly 20 million homeowners who have lost or are about to lose your house to foreclosure—most likely to a bank using fraudulent loan documents—you get 0-0-0.
If you’re a teacher asking for a raise, or a parent caring for a sick child or parent, or just an ordinary worker hobbling to work on an old car that needs to be replaced, all you’ll get is 0-0-0.
There isn’t any money to help you.
We don’t have the budget.
You can’t get the bank to call you back about refinancing, much less the attention of your Congressman.
But not if you’re a banker.
Bankers get their calls returned. They get anything they want.
There’s always a budget for them.
They get 7-7-7.
COPYRIGHT 2011 TED RALL
Herman Cain and the Criminalization of Poverty
Pizza baron Herman Cain leads in the polls. Yet nobody believes he can win the Republican nomination. The fact that the #1 candidate doesn’t stand a chance is an improbable truism emblematic of our broken-down political system.
Partly it’s that he’s black. Republicans are racists.
Partly it’s that the nomination was promised to Mitt Romney. He’s been waiting. It’s Willard’s turn.
It’s not the accusations of sexual harassment. Republicans are sexists. For the GOP touching the hired help (or wannabe hired help) is the droit du CEO.
The reason Cain isn’t allowed to be president is money. Romney is spectacularly wealthy. Cain is merely rich. As of October Romney had used his white-male Wall Street connections to raise $14 million. Cain had a paltry $700,000.
After reports surfaced that Cain had groped Susan Bialek, a woman who asked him for help landing a job, Cain received $250,000 in contributions in a single day. Attempted rape—she says he tried to force her head into his special place—pays.
Unsurprisingly, the Cain campaign went to work smearing the credibility of his accusers. One of his proxies, right-wing radio talker Rush Limbaugh, took to pronouncing Bialek’s surname “buy-a-lick.”
Cain’s main attack, however, is focusing on the women’s finances. “Who Is Sharon Bialek?” asked a Cain campaign email to reporters.
It was a perfect illustration of what’s wrong with the media.
“The fact is that Ms. Bialek has had a long and troubled history, from the courts to personal finances—which may help explain why she has come forward 14 years after an alleged incident with Mr. Cain, powered by celebrity attorney and long term Democrat donor Gloria Allred,” said the Cain camp.
Well, sure, Bialek’s past-due bills “might” explain why Cain waited so long to speak out. For that matter, she “might” be a delusional space alien who prefers Domino’s. Heck, she “might” even have vomited at the thought of her groper becoming president.
Who knows anything, really?
Not Cain—he’s never heard of neoconservatism. But I digress.
Back to Cain’s smear campaign. The narrative is simple: this bitch is poor. I’m rich. She’s lying about me to pay her bills.
The fact that the media plays along with such reasoning shows how elites wage class war against the 99 percent of us who work for a living.
“Ms. Bialek was also sued in 1999 over a paternity matter,” spat the Cain campaign. “In personal finances, PACER (Federal Court) records show that Ms. Bialek has filed for bankruptcy in the Northern District of Illinois bankruptcy court in 1991 and 2001…Ms. Bialek has worked for nine employers over the past 17 years.”
The New York Times added some context.
“Saddled with $17,200 in legal fees related to a paternity fight with the father of her infant son, Ms. Bialek filed for bankruptcy protection in 2001. Her income had dropped to $19,000 in 2000 from $38,000 the year before, court records show, and she had only a few thousand dollars in assets. Court records show that Ms. Bialek has continued to experience money troubles in recent years. The Internal Revenue Service in 2009 filed a lien against her for $5,176 in unpaid taxes, and an Illinois lending company won a judgment last year for $3,539.”
Bialek and her attorney anticipated attacks that she was planning to profit from her account, announcing that she would not sell her story. That should have done the trick, but no. Cain’s smear tactics appear to be working so far.
No one but Bialek and Cain know what happened that night back in 1997. Regardless of the truth, the implications of Cain’s approach should be troubling. To follow Cain’s argument to its logical conclusion, anyone who has ever had money problems can’t be trusted to tell the truth.
Poor people are liars.
Rich people are not.
Which no doubt comes as news to former clients of Bernard L. Madoff Investment Securities LLC.
Bear in mind, there is no evidence that Bialek or the other women committed perjury, or fraud, or embezzlement. Their characters are not at issue. Bialek’s sin, if you agree with Cain, is that she’s broke.
These days, who isn’t?
Over a million Americans a year file bankruptcy. One in nine Americans have seriously considered it since the economy died in 2008. According to Cain, they are all—to a man, or is it just women?—lying sacks.
The I.R.S. filed liens against over a million Americans in 2010, a 60 percent increase from the year before. Are they inherently untrustworthy?
I’ve gone to court. I’ve had judgments against me. I don’t think I was more honest before those things happened.
The Tories of Great Britain widened the gap between rich and poor, then cast the poor into debtors’ prisons. Like their ideological forebears, Cain and his fellow Republicans want to criminalize poverty. Thanks to their pro-corporate policies, which have dominated the U.S. for 40 years, the economy is dead. The ranks of the poor, the dispossessed, the bankrupt and the tax non-payers like Susan Bialek have grown and continue to expand.
To be poor, Cain and the GOP argue, is for your word to be worthless.
Bialek may or may not be lying. Either way, her veracity has nothing to do with her income. “It’s not about me,” she told an interviewer. “I’m not the one running for president.”
COPYRIGHT 2011 TED RALL
It’s the Not Caring About the Economy, Stupid
As a pundit it’s my job to explain why politicians do the things they do. Every now and then, however, a pol behaves so irrationally that I have to throw up my arms and ask:
What the hell is this guy thinking?
That’s what Obama has me doing. For over two years. Why isn’t he worried about unemployment?
Thomas Frank wondered in “What’s the Matter with Kansas?” why Americans don’t vote their (liberal) self-interest. What I can’t figure out is why President Obama isn’t following his self-interest.
Obama says he wants a second term. I believe him. Every president wants one.
Americans vote their pocketbooks. Not exclusively—they care about a candidate’s values—but no president has ever been reelected with an unemployment rate over 7.2 percent. Right now it’s 9.1 percent. Unless there’s an unexpected reversal, it will still be way high by Election Day 2012.
Economists surveyed by USA Today predict that the jobless rate will be pretty much the same, 8.8 percent, at this time next year. Goldman Sachs is even more pessimistic. They think it will be 9.25 percent by the end of 2012—with a “meaningful downside risk” that it will be even worse.
Polls indicate that economic insecurity, specifically high unemployment, has been the biggest issue on voters’ minds since Obama took over in 2009.
77 percent of Americans tell Gallup the economy is getting worse. That’s up from 62 percent a month ago.
If Obama wants to get reelected he has to do something about jobs. Something BIG. Failing that—and that’s an epic fail—he has to at least be perceived as trying to do something about jobs. But he hasn’t done squat so far. And his job approval rating, now at an all-time low of 39 percent, reflects that.
I don’t like admitting this, but I’m mystified. Why isn’t Obama even trying to look like he cares about the one issue that could make or break his reelection chances?
What’s up? Are he and his advisors morons, or just out of touch? Do they have some secret jobs-related October Surprise that will magically reemploy the 22 percent of Americans who are out of work during the last few weeks of the election? Are they the Chicago Black Sox of politics, determined to throw the race to the Republicans? Psychologist Drew Westen can’t figure it out either, wondering aloud if Obama is sick in the head.
Some ask: Is Obama a Republican?
“Government doesn’t create jobs,” tweeted GOP candidate Herman Cain recently. “Businesses create jobs. Government needs to get out of the way.” Obama and his fellow fake Democrats never challenge this right-wing framing.
Maybe they believe it. “The White House doesn’t create jobs,” Obama press secretary Jay Carney said August 5th.
But the meme is wrong. In the real world where flesh-and-blood American workers have been living since 2000, businesses haven’t created any jobs. Instead, they’ve eliminated millions of them. And shipped millions more overseas.
Those job-killing trends—eliminating workers, increased automation and globalization—won’t change soon. “Workers are getting more expensive while equipment is getting cheaper, and the combination is encouraging companies to spend on machines rather than people,” Catherine Rampell recently reported for The New York Times.
There’s also a death-spiral effect. Elena Semuels of The Los Angeles Times sums it up: “Economists say the nation is stuck in a Catch-22 scenario: The economy won’t improve until businesses hire, but many won’t hire without consumer demand, which is weak because of the current state of the job market and concerns about the future.”
“Everyone says, ‘How can we have a recovery without jobs?’ [But] until I start seeing my competitors add jobs, I’m not going to do it,” Loren Carlson of the CEO Roundtable tells MSNBC.
Recovery won’t come from business. The scope of the post-2008 meltdown is too vast.
On the other hand, government can and does create jobs. Indirectly, it creates the veneer of law and order that permits commerce. Government can also employ people directly.
FDR orchestrated the direct hiring of 9 million Americans as government employees for the WPA and other programs. The federal government even hired writers and artists. Adjusted for population growth, that’s the same as 22 million people today. Obama could have done something like that in early 2009.
Too late now, of course. Obama’s inaction on the economy prompted a Republican sweep in the 2010 midterms. They won’t go along.
Keynes 101: the time for austerity is during a boom, when you can afford to save up for a rainy day. Governments are supposed to spend their way out of a recession or depression. The GOP-conceived debt ceiling deal is 200-proof insanity.
“An anti-Keynesian, budget-balancing immediacy imparts a constrictive noose around whatever demand remains alive and kicking,” wrote Bill Gross of the bond-trading firm Pimco in The Washington Post. “Washington hassles over debt ceilings instead of job creation in the mistaken belief that a balanced budget will produce a balanced economy. It will not.”
Rather than criticize this austerity lunacy, Obama is still going along. “Mr. Obama’s senior adviser, David Plouffe, and his chief of staff, William M. Daley, want him to maintain a pragmatic strategy of appealing to independent voters by advocating ideas that can pass Congress, even if they may not have much economic impact,” reports the New York Times.
“We’re at a loss to figure out a way to articulate the argument in a way that doesn’t get us pegged as tax-and-spenders,” admits a Democratic Congressional advisor. For God’s sake, grow a pair! Make your case to the public.
Anything that doesn’t have “much economic impact” isn’t going to have much electoral impact either. And neither are token gestures like a three-day bus tour, revamping the patent process, or another overhyped speech. (Scheduled for September. Because, why rush?)
As you read this Obama is off to Martha’s Vineyard, hanging out with millionaires.
Really—what’s going on? Can Obama really be that stupid? Can anyone?
COPYRIGHT 2011 TED RALL