Be INFORMED

Wednesday, November 09, 2011

Koch’s Eat The Dirt In Ohio Issue 2

 Ohio Gov. Kasich admits that, on Issue 2, 'the people have spoken clearly'

by Laura Clawson for Daily Kos Labor

Wed Nov 09, 2011

The fight to defeat Ohio's Issue 2 was one more look at what a determined mobilization of the 99 percent can look like. And holy crap, what a victory it led to: with 99 percent of votes reporting, the margin is 61-39. ModernEsquire notes that turnout was barely lower than in 2010, when Ohio was voting for both a governor and a senator, and just a handful of counties voted to strip collective bargaining rights from public workers—many counties that would be red in a partisan election voted no.

Today, we get to see a chastened Gov. John Kasich—but not quite chastened enough:

At a news conference Tuesday night, Mr. Kasich congratulated the winners and said he would assess the situation before proposing any new legislation. “It’s time to pause,” he said. “The people have spoken clearly.”

When asked about the people’s message, Mr. Kasich said, “They might have said it was too much too soon.”

Dude. Your polling is hilariously bad (PDF); just 33 percent of voters approve of you, and if they could do 2010 over, you'd lose big. In an off-off-year election, the vote against your signature measure was bigger than the vote for you in your own election year. The one voters wish they could do over. Maybe you're still lingering in the bargaining stage of grief? If so, get over it. The voters of your state didn't say that taking collective bargaining rights from workers was "too much too soon." They said it was unacceptable, now or in the future.

Hopefully, the force with which Ohio voters jammed Issue 2 back down Kasich's throat will be enough to make not just him but Republican governors and legislators in a few other states take pause.

Originally posted to Daily Kos Labor on Wed Nov 09, 2011
Also republished by Daily Kos.

Taxpayers Getting Shafted By Bank Of America?

   On Tuesday:

BoA Dumps $75 Trillion In Derivatives On Taxpayers, Super Committee Looks Away. Seize BoA Now.

by Ralph Lopez     Tue Nov 08, 2011     Original Article

It's real money, especially since "Bank of America Deathwatch" financial pundits have multiplied on the web and it has become a bit of a geek guessing game.  When will BoA finally tank?  And when it tanks, the question becomes, who will walk away with all their money, and who will be left holding the bag?  The deal just snuck through with the Federal Reserve's, and implicitly, Congress's approval insures Wall Street casino gambler's debts by moving them into accounts meant for penny-pinching grandmas. 

Citing Bloomberg, financial commentator Avery Goodman tells us:

Even if we net out the notional value of the derivatives involved, down to the net potential obligation, the amount is so large that the United States could not hope to pay it off without a major dollar devaluation, if a major contingency actually occurred and a large part of the derivatives were triggered.

A bailout for one company's most irresponsible investors triggering a major dollar devaluation?  This is the kind of thing that starts revolutions. 

Goodman reports:

Bank of America (BAC) has shifted about $22 trillion worth of derivative obligations from Merrill Lynch and the BAC holding company to the FDIC insured retail deposit division. Along with this information came the revelation that the FDIC insured unit was already stuffed with $53 trillion worth of these potentially toxic obligations, making a total of $75 trillion.

Without going too far into bewildering financial jargon, it's like this: Your wildest son is asking you to co-sign for a debt.  If he can't make his payments, you are on the hook.  How much is the debt?  He doesn't know.  Just sign on the dotted line.

Meanwhile the "super committee" is looking for a trillion or so dollars in hits to everything, including Social Security and Medicare/Medicaid, to keep the budget from going any more out of whack.  It's urgent, they say, for us to stop spending like drunken sailors.  But at the same time they just whipped out a pen and signed for junior, crossing their fingers that something won't happen which is almost inevitable.

Where did I stumble across this news item?  Sure as heck not on MSM, which is focused on the smoke grenade of BoAs recent $400 million fee case settlement.  $400 million fits into $72 trillion almost 2 million times.  Now which is the bigger story?

I stumbled across it posted by an outraged Occupy Wall Street-type on one of their Facebooks.  You don't need to read Karl Marx to become an Occupy Wall Streeter.  The American financial pages will do it.

It is unlikely the taxpayer's hit will be as much as $72 trillion.  Again, no one knows.  But it will be a chunk of money.

BusinessWeek writers Phil Mattingly and Bob Ivry point out that Dodd-Frank is not strong enough to prevent the BoA move:

Separating complex transactions from FDIC-insured savings has been a cornerstone of U.S. regulation for decades, including Dodd-Frank, the regulatory overhaul enacted last year. Bank of America’s transfer prompted some lawmakers to push for stronger rules than were included in that sweeping law.  Senator Bernie Sanders, a Vermont Independent who supported legislation to separate trading operations from commercial banking, said the transaction is a “perfect example why we should break up too-big-to-fail financial behemoths.”

Representative Maurice Hinchey, a New York Democrat who pushed to require splitting commercial and investment banking, said “What Bank of America is doing is perfectly legal -- and that’s the problem.”

Hinchey is among more than 40 House lawmakers who have signed on to a bill that would reinstate the Glass-Steagall Act, the Depression-era law that enforced separation of depository institutions from investment operations.  Most are Democrats, but that leaves roughly 180 House Democrats who have not signed onto the bill, and at the moment have no intention to.  Not to mention the "super committee" eyeing your Social Security.  Nor Obama.

A commenter in a Columbia Journalism Review piece on the Bloomberg reportage says:

The government should not be on the hook for the bets of an investment bank which is impossible when you allow a deposit and investment bank to merge.

The re-instatement of Glass_Steagall, which prevents bankers from going to Vegas with grandma's money, is consistently on lists of reforms being being debated by OWS.

Glass-Steagall began to be dismantled under Ronald Reagan, with Bill Clinton finishing the job for Wall Street in 1999.  When Bill Clinton signed the law, Progressive Historian notes:

it symbolized the ending of the twentieth century Democratic Party that had created the New Deal. Although the 1999 law did not repeal all of the banking Act of 1933, retaining the FDIC, it did once again allow banks to enter the securities business...

The repeal of one of the most important pieces of legislation in this nation's history came about as a result of another Clinton "triangulation,"...

The transaction is against the Federal Reserve's own regulations, but as Avery Goodman points out, Congress has given ultimate power to the Federal Reserve to ignore its own enabling Act legislation.  The pertinent passage of the enabling legislation reads:

The Board may, at its discretion, by regulation or order exempt transactions or relationships from the requirements of this section if it finds such exemptions to be in the public interest

Dave Johnson writing for Truthout.org summarizes the absurdity well:

This situation of crony government protecting the connected rich while people are in the streets demanding change is more and more reminiscent of Egypt under Mubarak.... Currently in Washington Congress' elite "super committee" represents the 1%, looking at ways to take more money out of the economy, discussing cutting Social Security at a time when many people have lost their pensions and savings. They are discussing cutting Medicare and other health services at a time when more and more people are in need. They are discussing cuts and cuts and cuts, when working people are falling behind and behind and behind.

But the actual causes of the deficits that have Congress so concerned are ignored. Reagan and the Bushes cut taxes on the rich and increased military spending, and the deficits and resulting debt soared. It is right there in front of our faces. But even with such "concern" about deficits the tax cuts for the rich continue and the huge increases in military spending are left alone. Instead Congress discusses austerity - making the 99% pay for the benefits and bailouts for the 1%.

Now why are those protesters out there again?   Simple.  The ones whose interviews the MSM does not air read the financial pages.   At the same time many politicians, including Obama, give plenty of lip service about busting up banks which are "too big to fail."  But unless someone does something soon, BoA is a done deal.  As always, never listen to what politicians say.  Watch what they do.  A couple of currency devaluations, and we're in Greece.

It is something when financial geeks in conservative business pages are calling for the government to seize Bank of America now, before it brings just America down with it.  That's when you know we are all in this together.

White House contact page

Congress contact page (including the "super committee")

Distribution of wealth in America: one percent own one-third of all assets:

image

Tuesday, November 08, 2011

Don’t Let Obama Take A Koch Check

by RobertGreenwald       Sun Nov 06, 2011

Tens of thousands of Americans and citizens around the world have rightfully spoken out about the Keystone XL oil pipeline, a roughly 2,000 mile long development that would carve up six states and enrich the 1% even more.

Few personify the wealthiest 1% more than Charles and David Koch, who're among the largest financial beneficiaries of dirty tar sands oil. The Keystone XL pipeline would hurt America and make the Koch brothers richer. In other words, it would give the Koch brothers more billions of dollars to buy American democracy and bend it to their whims.

This doesn't have to be the case. The State Department and White House can veto the pipeline's permits because it crosses an international border with Canada.

The pressure's on. The State Department was rightfully exposed for shoddy oversight. Leaders in Congress continue fighting to further investigate the Koch brothers' involvement, and just recently, President Obama said he would personally approve or deny the Keystone XL pipeline.

It's the biggest environmental issue from now until next year. Will President Obama and Secretary of State Hillary Clinton chose American safety or will they hand the Koch brothers billions more in profit that they'll politically use against them?

The world's top scientists agree that the tar sands is virtually game-over for the climate. More than that, why would this administration lend a lifeline to its wealthiest adversaries?

As Jamie Henn, one of the partners for today's rally outside the White House, wrote:

President Obama can deny the permit, right now, and shut down this flow of cash to the Kochs. In doing so, he'll show that our national interest isn't always determined by the 1%, in this case a few big oil companies and the Koch Brothers, but by the 99% of us who have to pay the price for their greed.

Let' s not forget that the pipeline would raise the price of gasoline in the Midwest and jeopardize one of our nation's most strategic and vital aquifers.

The Keystone XL oil pipeline is emblematic of a lot that we've learned about the Koch brothers since our Koch Brothers Exposed campaign began earlier this year. Whenever possible, the brothers try operating in the shadows and attacking the truth so they can get richer in secret.

We must continue holding them accountable. And we must pressure our leaders to make sure they don't enrich two of the biggest threats to American democracy.

Voter Fraud, Republican Style

From John Nichols on Monday, November 7, 2011 by The Nation

Block the Vote: Ohio GOP Bars Early Voting to Suppress Pro-Labor Turnout

TOLEDO — When Mitt Romney’s dad was a candidate for president back in the 1960s, Republicans competed on the strength of their personalities and ideas.

It was the same when Newt Gingrich was an up-and-coming Republican leader in the 1980s and the early 1990s.

But no more?

Republicans have a new strategy for competing in tight elections.

They cheat.

In Ohio this fall, the party faces a serious challenge. Republican Governor John Kasich, a GOP “star” for the better part of three decades, has staked his political fortunes on an attempt to eliminate collective bargaining rights for public employees while undermining the ability of their unions to function.

The move has proven to be massively unpopular. More than 1.3 million Ohioans signed petitions that forced a referendum on whether to implement the anti-labor law. Polls show that Ohioans are ready to do just that when they weigh in on referendum Issue 2.

But Ohio’s Republican secretary of state is trying to make it a whole lot harder for Ohioans to cast those votes.

On Friday, across Ohio, county boards of elections shut down early voting for next Tuesday’s election. They did so on orders from Secretary of State Jon Husted. A Republican stalwart,

Husted served as the party’s legislative point man (rising to the rank of Ohio House Speaker), co-chaired GOP campaigns (including that of 2008 presidential candidate John McCain) and has been closely tied to national conservative groups working on issues such as school choice and privatization. While serving in the legislature, Husted was allied with the corporate-funded American Legislative Exchange Council, which has been promoting Voter ID laws and other rule changes designed to suppress turnout.

Husted claimed a hastily passed and deliberately vague new state law, which took effect just last week, prohibits early voting in the three days before the election. That’s a dramatic change from traditional practice in Ohio, where early voting on the Saturday, Sunday and Monday before high-profile elections has been allowed for years—and has permitted tens of thousands of citizens to participate in the process.

The law in question, Ohio House Bill 224, was written primarily to deal with military ballots. Yet, Husted is interpreting it as a bar on early voting. State Representative Kathleen Clyde, a Democrat who represents Kent, says Hustad is essentially creating his own rules.

“When you take out major chunks” of the legislation, as Husted has, explains Clyde, “the bill is now unreadable and incomprehensible.”

But the confusion has worked for Husted and the GOP. County election officials have, at his behest, shut down early voting across Ohio.

That’s caused protests across Ohio. In Toledo, crowds showed up outside the offices of the Lucas County Board of Elections, which had scheduled business hours for Saturday and Sunday but canceled them to comply with Husted’s order.

“It’s un-American and undemocratic to close the polls the weekend before the vote,” said the Rev. Willie Perryman, pastor of Toledo’s Jerusalem Baptist Church. “The real reason is they want to suppress the vote.”

“For me, the voting booth is the one place where the rich man and the poor man stand as equals,” Larry Friedman, the president of a Toledo cleaning firm who showed up to protest the closing down of early voting.company, explained to reporters.

There was no question that qualified voters wanted to cast their ballots early—either because they would be away on election day or because they wanted to avoid lines. Newspapers, radio and television stations across the state reported on voters who came to local elections offices Saturday and Sunday, only to find doors that have historically been open on the eve of a major election to be locked.

In the last off-year election, 2009, the Toledo area saw 1,814 early votes, Lucas County Elections Board executive director Ben Roberts told the Toledo Blade.

In 2010, the number rose to 5,551.

This year, before Husted shut down the early voting, 5,602 ballots had been cast. Perryman and others who were protesting believe that thousands more would have been cast Saturday, Sunday and Monday.

So why erect a barrier to thousands of voters in one county, and to tens of thousands or more statewide?

As with moves made by Republican governors and legislators not just in Ohio but across the country to develop overly strict Voter ID laws, to limit same-day registration and to cut back on early voting, the point is to depress turnout, especially in working-class communities such as Toledo.

The barriers don’t just make it harder to vote; they reduce enthusiasm in communities that are trying to increase turnout.

“As you get closer to [election day] the excitement grows and therefore we’re going to miss the moment with the early vote,” explained the Rev. Cedric Brock of the Mount Nebo Church in Toledo, who told local reporters that the shuttering of the polls over the weekend was “un-American” and “un-democratic.” “Ohio being the battleground state for the country for the 2012 Presidential race, we feel this is a tag to slow that momentum down,” said Rev. Block.

The pastor’s point is well taken.

Opposition to Governor Kasich’s anti-labor law appears to be so intense that turnout will be strong Tuesday—and if polls are correct, the governor will be dealt a setback by the people.

But allowing assaults on democracy in an off-year election is a dangerous game. It sets a precedent for the presidential election year, when the gaming of the system could well tip the balance in battleground states.

© 2011 The Nation

John Nichols is Washington correspondent for The Nation and associate editor of The Capital Times in Madison, Wisconsin. His most recent book is The “S” Word: A Short History of an American Tradition. A co-founder of the media reform organization Free Press, Nichols is co-author with Robert W. McChesney of The Death and Life of American Journalism: The Media Revolution that Will Begin the World Again and Tragedy & Farce: How the American Media Sell Wars, Spin Elections, and Destroy Democracy. Nichols' other books include: Dick: The Man Who is President and The Genius of Impeachment: The Founders' Cure for Royalism.

    Republished from Common Dreams