“Uniquely American And Uniquely Stupid”: The Makings Of The Next Debt Ceiling Debacle
I hate to interrupt fulminations about President Obama’s three incredible shrinking scandals with something as prosaic as concern about the GOP’s threatening to sabotage the economy, but a couple of bits of real news emerged yesterday regarding the debt ceiling (yes that, again).
It’s actually a perfect juxtaposition: On the same day that an interview with Standard & Poor’s top U.S. credit rating analyst warned of tinkering with the debt ceiling, House Republicans huddled up to brainstorm about what their price should be for not deliberately tanking the economy.
On the one hand you’ve got an interview National Journal did with Nikola Swann, “Standard & Poor’s top analyst for the U.S. credit rating.” You will recall that Standard & Poor’s downgraded its rating of U.S. debt in 2011 after the last debt ceiling showdown. And you will recall that that showdown was engineered by the GOP as a political hostage-taking situation: Virtually everyone (or virtually everyone who is responsible) acknowledges that raising the debt ceiling is necessary to avoid the U.S. government defaulting on its obligations, which would be financially cataclysmic, but the Republicans threatened to force that exact scenario if they didn’t get spending cuts.
Now the debt-ceiling-fight countdown clock is ticking once again (the Treasury started its “extraordinary measures” to avoid default at noon today), with the moment of crisis expected to hit some time between August and year’s end. Does the prognosis look any better? “We have not seen any strong evidence that the political system as a whole is more effective, more stable, or more predictable than we thought it was in 2011,” Swann told National Journal’s Stacy Kaper. “There does seem to be, especially in recent years, an overall trend in the U.S. to effectively make major policy decisions at the last moment in a crisis setting. We don’t see that as credit-positive.”
That’s delightful understatement. He goes on to say that in order to avoid another credit downgrade, the U.S. should extend the debt ceiling for five years and bring the debt-to-GDP ratio under control with a plan that is actually credible. House Republicans passed a bill (which stands zero chance of becoming law) which would allow the Treasury to prioritize government payments (which would still leave the government in a position of not paying its bills … it would just be not paying for goods and services while making sure that its debt holders are taken care of). “This does not sound like a very comfortable scenario,” he says in another bit of understatement.
The final point in the interview is the most instructive:
S&P rates over 120 sovereign governments, including all of the wealthy developed ones. Of those, there are very few that have anything similar to the U.S. debt ceiling. Of those countries that do have some kind of legislated limit on the amount of debt, that limit is set as part of the budget-setting process. It almost never is divided the way it is in the U.S. We don’t think it is helpful to credit quality.
The very idea of a debt ceiling that doesn’t rise with authorized spending is, in other words, both uniquely American and uniquely stupid. Why? Because it lends itself to the kind of irresponsible hostage taking the Republicans are gearing up to engage in yet again.
And it’s a political terrorism scheme that is increasingly disengaged from reality (to which its connection was tenuous at best anyway). To wit: The last time around the GOP objection to the debt ceiling was grounded in rising deficits; this didn’t make their threats less irresponsible but at least established a plausible-sounding connection between their threat and their demand. But the budget deficit is, as my bloleague Pat Garofalo wrote earlier this week, the incredible shrinking issue. As a percentage of the economy, it is now roughly half of what it was when President Obama took office.
But Republicans know they’ve got a hostage so they’re bound and determined to extract a ransom. Hence the brainstorming session they held yesterday where 39 different members of the House GOP conference arose to offer their idea of what policy they should demand in return for not intentionally tanking the global economy. The ideas, according to various reports, ranged from approval of the Keystone XL pipeline to doing something about partial-birth abortion.
My personal favorite item comes from Jonathan Strong’s account at National Review Online:
The Ryan budget passed by the House assumes repeal of Obamacare. So if House Republicans were to press for enactment of the Ryan budget in exchange for raising the debt ceiling, that would entail repealing Obamacare – which is why there are pangs of doubt within the GOP leadership about whether that strategy is realistic.
So GOP leadership thinks demanding that the president sign onto the radical Ryan budget is unrealistic because it would necessarily involve repealing Obamacare? As if the Ryan budget’s dramatic cuts to discretionary spending and gutting of Medicare and Medicaid would be evenly remotely acceptable were Obamacare not involved? The whole scenario yesterday has the air of fantasy – like my wife and I arguing over what we’ll do when we win the Powerball tomorrow night (she looks oddly askance at my plan to commute via jet pack).
By: Robert Schlesinger, U. S. News and World Report, May 17, 2013
“Scandalous vs. Scandal Lust”: Chasing Smoke And Finding Little Fire
I have watched in recent days as a parade of conservatives have used specific and real governmental missteps to justify their wide-ranging paranoia and irrational hostilities. “Aha!”
You have to take their glee in sorrow with a grain of salt. For them this is more about their scandal lust than what’s scandalous. These people have been searching for a scandal — Kenyan birth certificates and a Michelle Obama “whitey” tape — for years. The fact that they now have something solid and not made of sand is going to make sad souls happy. That’s to be expected.
What’s not to be expected — but has become depressingly predictable — is to watch liberals rending their garments and gnashing their teeth in woe-is-us doom chanting. The overreaction is exhausting and embarrassing.
Let’s say what this confluence of missteps is and what it is not — at least as the evidence now suggests.
First, the three issues — Benghazi, the targeting of conservative groups by the I.R.S. and the Department of Justice’s monitoring of Associated Press journalists — appear to be completely unrelated, try as politicians and pundits may to connect them. Second, the president does not appear to have had any direct involvement in any of the episodes. Third, their weight and resonances differ greatly, although all could be diminished by their emerging concurrently.
At this point, this is about flaws of procedures — some possibly illegal, all very disturbing — and problems of perception. But they are neither fatal nor unfixable.
Now, let’s separate the well-worn Benghazi witch hunt from the other two. From all appearances that is just a callous use of a tragic event to take a political slap at President Obama and a stab at the likely Democratic presidential heavyweight Hillary Clinton. It is being conducted by hyperpartisan politicians and aggravated by Fox News, both with a stake in justifying their unjustifiable contempt for this Democratic administration, and foiling the next one.
But Americans appear to be tiring of all that chasing of smoke and little finding of fire.
According to a Pew Research Center poll issued this week, the percentage of Americans closely following the Benghazi news has continued to fall. Less than half of the respondents believe that the Obama administration has been dishonest, while almost as many say that the Republicans have gone too far in the hearings. At least one in five don’t know either way.
According to the Pew Poll:
“About half (56 percent) of Republicans and Republican-leaning independents say they regularly watch the Fox News channel, and this group is particularly frustrated over the Benghazi situation. Fully 79 percent of Republicans who regularly watch Fox News say the Obama administration has been dishonest, compared with 60 percent of Republicans who don’t watch Fox regularly. Nearly half (46 percent) of Republicans who regularly watch Fox News say they are following the story very closely — compared with 23 percent among other Republicans. Those who regularly watch Fox News are also far more critical of the news media: 59 percent say the hearings have not received sufficient coverage by the news media.”
On the I.R.S. scandal, however, it certainly appears that the agency behaved stupidly. Not because they sought to scrutinize the mockery that is these 501(c)4 “social welfare” groups, but because they did so unevenly. But what will be left after all the hue and cry? As the Notre Dame law professor Lloyd Mayer told the Christian Science Monitor this week:
“What has been missed in the outrage is the recognition that this problem arose from much deeper sources than the poor judgment or possible partisan bias of a handful of I.R.S. employees.”
He continued:
“Congress has given the I.R.S. the difficult task of applying an incredibly vague definition of political activity and an uncertain standard for how much political activity tax-exempt social welfare organizations may engage in.”
That, in the end, is the real scandal.
And now to the Associated Press scandal. The Justice Department was just wrong in the employ of its dragnet, and the administration — as represented by a spokesman, Jay Carney — was disingenuous in its insistence that the administration supports “unfettered” journalism. It just doesn’t. But we’ve always known that, at least we in the media have. The scandal here is that an atmosphere of intolerance for leaks — which Republicans ironically accused the Obama administration of encouraging — seems to have overtaken the Justice Department.
On Wednesday the White House took steps to mitigate the damage, releasing more than 100 pages of Benghazi talking point e-mails, seeking to revive a shield law for reporters who refused to disclose confidential sources, and having the president himself deliver a statement on the I.R.S. In it he announced the resignation of the acting commissioner of the agency, the implementation of new safeguards and a pledge to work with Congress in investigating the matter. As the president said, “The good news is that it’s fixable.” And, it is.
That’s it — the gist of all three as far as we know at this point. These are not administration-enders. People can be punished, or fired or even jailed, if Speaker John Boehner has his way, but at this early stage signs are not pointing to any of those people being in the White House.
Even if I had hair, I wouldn’t be setting it on fire, not yet anyway.
By: Charles M. Blow, Op-Ed Columnist, The New York Times, May 15, 2013
“The Real IRS Problem”: The Post Citizens United Explosion Of Undisclosed Political Campaign Spending
Americans of all political stripes should be outraged at the recent revelation that the Tea Party was unfairly targeted by the IRS before last year’s election. The IRS should never base its decisions on political preferences or ideological code words, regardless of what bureaucratic challenges it may face. But the lesson that the right is drawing from the IRS’s misdeeds — the lesson that threatens to dominate the public conversation about the news — is wrong.
We’re seeing a knee-jerk reaction, particularly from the Tea Party and their allies in Congress, that is threatening to turn the IRS’s mistakes into an indictment of “big government” writ large. Some are already trying to tie the scandal to the Right’s favorite target, Obamacare, and to the Benghazi conspiracy theory.
The danger of this frame is that it will discourage the IRS from fully investigating all nonprofit groups spending money to influence elections. And it will distract from the core problem behind the IRS’s mess: the post-Citizens United explosion of undisclosed electoral spending.
Before the Supreme Court’s decision in Citizens United, only a limited number of nonprofit 501c(4) groups could spend money to influence elections — those who did not take contributions from corporations or unions. But Citizens United lifted restrictions on corporate spending in elections, setting the stage for individuals and companies to funnel unlimited money through all corporations, including c(4)s and super PACs in an effort to help elect the candidates of their choice. Spending by c(4)s has exploded since Citizens United, since the decision allowed any c(4) nonprofit corporation that didn’t spend the majority of its money on electoral work to run ads and campaign for and against candidates. And c(4)s, as long as they follow this rule, don’t have to disclose their donors under the laws currently in place.
The IRS, then, was forced to play a new and critical role in policing this onslaught of electoral spending. IRS officials clearly made poor choices in how to confront this sudden sea change and those mistakes should be investigated and properly addressed. But strong oversight of this new wave of spending remains critically important and clearlywithin the IRS’s purview.
If we let understandable concerns about bad decisions by the IRS lead to weakening of campaign finance oversight, our democracy will be the worse off for it. Instead, we should insist that the government strengthen its oversight of electoral spending — equally across the political spectrum. We should pass strong disclosure laws that cover all political spenders, including c(4)s. And we should redouble our efforts to overturn Citizens United by constitutional amendment and reel back the flood of corporate money that led the IRS to be in this business in the first place.
By: Michael B. Keegan, The Blog, The Huffington Post, May 15, 2013
“Incompetent Malice”: Editing Emails While Diplomatic Security Burns
The surest sign that there is indeed no there there regarding the Benghazi “scandal”? The fact that anonymous GOP staff feeding information to reporters apparently felt the need to edit the White House emails they were onpassing. It’s a bad sign for scandal-mongerers if they feel the need to punch up their supposed evidence.
At issue is the email document trail behind the talking points the administration promulgated in the days after the September 11, 2012 attack at the U.S. facilities in Benghazi, Libya. Since virtually the first instant of the attack, the GOP has fixated on it as being sort of a scandal, with the currently popular iteration suggesting that the initial administration spin was an effort to cover up the fact that terrorist elements were involved in the attacks.
Last week a Republican operative or operatives leaked what were portrayed as quotes from emails – which the White House had not released – which purported to show that the White House and State Department had nefariously pushed to have references to terrorist involvement expunged from the administration’s talking points.
But on Wednesday the White House released 100 pages of the emails covering the evolution of the talking points (scroll to the bottom to read them yourself, courtesy of the Huffington Post). Then CBS News’ Major Garrett issued a report last night under the headline “WH Benghazi emails have different quotes than earlier reported.” Garrett goes on to detail the differences between the leaked GOP versions of the emails and what was actually written.
For example:
On Friday, Republicans leaked what they said was a quote from Rhodes: “We must make sure that the talking points reflect all agency equities, including those of the State Department, and we don’t want to undermine the FBI investigation.”
But it turns out that in the actual email, Rhodes did not mention the State Department.
It read: “We need to resolve this in a way that respects all of the relevant equities, particularly the investigation.”
He goes on to note a similar change in an email then-State Department spokeswoman Victoria Nuland sent. The GOP version has her worried about “previous warnings provided by the Agency (CIA) about al-Qaeda’s presence and activities of al-Qaeda.” But the actual email she sent doesn’t mention the terrorist group at all.
As the Huffington Post reports, CBS isn’t the first news outlet to note the differences between the real emails and the versions leaked by Republicans:
The news parallels a Tuesday CNN report which initially introduced the contradiction between what was revealed in a White House Benghazi email version, versus what was reported in media outlets. On Monday, Mother Jones noted that the Republicans’ interim report included the correct version of the emails, signaling that more malice and less incompetence may have been at play with the alleged alterations.
Of course, there’s no reason why malice and incompetence need be competing alternatives. In fact incompetent malice seems likely: This was a ham handed attempt to produce “evidence” of a scandal where there is none.
Mother Jones’s Kevin Drum sums up:
This has always been the Republican Party’s biggest risk with this stuff: that they don’t know when to quit. On Benghazi, when it became obvious that they didn’t have a smoking gun, they got desperate and tried to invent one. On the IRS, their problem is that Democrats are as outraged as they are. This will force them to make ever more outrageous accusations in an effort to find some way to draw a contrast. And on the AP phone records, they have to continually dance around the fact that they basically approve of subpoenas like this.
A sane party would take a deep breath and decide to move on to other things. But the tea partiers have the scent of blood now, and it’s driving them crazy. Thus the spectacle of Michele Bachmann suggesting today that it’s time to start impeachment proceedings.
It’s no wonder that GOP leaders are urging their colleagues to throttle back and let the scandals that flared up this week play out before, like Bachmann, calling for impeachment hearings. The real scandal regarding Benghazi, of course, doesn’t involve talking points but funding streams. As former diplomat Ronan Farrow writes in the Atlantic:
Hillary Clinton waged a losing fight with Congress for embassy security resources over the course of the first Obama administration. Some of the ringleaders of last week’s hearing were among the prominent opponents to that spending, with Representative Chaffetz and Representative Darrell Issa joining to cut nearly half a billion dollars from the State Department security accounts that cover armored vehicles, security systems, and guards. In Fiscal Year 2011, House Republicans cut $128 million from the Obama Administration’s requests for embassy security funding; in 2012, they cut another $331 million. Issa once personally voted to cut almost 300 diplomatic security positions. In 2011, after one of many fruitless trips to the Hill to beg House Republicans for resources, an exhausted, prophetic Hillary Clinton warned that cuts to embassy spending “will be detrimental to America’s national security.” Democrats, like Senator Barbara Boxer in a heated speech this week, have been quick to paint opposition to security funding as exclusively Republican. The truth is, it is a bipartisan failure, repeated through years of both Republican and Democratic control of Congress. In 2010, Democrats cut $142 million from the Administration’s requests for State Department funding.
But why would House Republicans – obsessed as they are with their twin goals of getting Obama and Hillary Clinton and cutting spending – pursue an investigation into dangerous spending cuts pushed by Congress and fought by Secretary Clinton?
http://www.docstoc.com/docs/156800521/White-House-Documents-Relating-to-Events-in-Benghazi-Libya -Courtesy The Huffington Post
By: Robert Schlesinger, U. S. News and World Report, May 17, 2013
“Unstable Lawmakers”: Five Worst Ideas From Texas’ Tea Party Government
It’s no surprise that in the state that gave us personalities like Representative Ron Paul, Governor Rick Perry, and Senator Ted Cruz, legislators have proposed more than their fair share of outrageous laws. Nearly failing to extend Medicaid benefits to the state’s disadvantaged, moving to make English the state’s official language, and putting forward a constitutional referendum that would prohibit tax increases only scratch the surface in the Lone Star State..
Here are the 5 worst ideas to come from Texas’s right-wing government:
Suing The Obama Administration 25+ Times
Texas’ attorney general sure knows how to put taxpayers’ money to good use. Greg Abbott takes pride in the fact that he has sued the Obama administration more than 25 times since February, 2010. “In all, Abbott’s federal cases have cost the state more than $2.8 million,” according to a Texas newspaper. “That includes $1.5 million-plus in salaries for state employees working on the cases, nearly $250,000 in court costs and the travel expenses of attorney general’s office personnel, and roughly $1 million for outside counsel and expert witnesses.”
Abbott, who once insisted that Democrats are more of a threat than North Korea, sued the federal government and lost in cases of discriminatory voter-ID laws and gerrymandered district maps, costing the state well over $1 million in these two cases alone.
Making It Illegal To Introduce Or Implement Any New Federal Gun Laws
Texas lawmakers took their Second Amendment paranoia to an entirely new level in April with the proposal of HB 1076. This law “would ban state agencies from enforcing any new federal gun laws, including background checks,” according to MaddowBlog. “The bill passed the Republican-led House on a largely party-line vote Monday, but legal experts say the attempt to ‘nullify’ possible future federal laws likely wouldn’t pass the scrutiny of the U.S. Supreme Court.”
Texas Republicans have given themselves full authority to ignore federal laws that place any restrictions on gun sales. The proposed law states that the American people have a right granted to them by the U.S. and Texas Constitutions to bear arms, and any law that threatens those rights—even a law instituting simple background checks—will be immediately rejected.
Placing Armed Guards In Texas Schools
While you will not see any new gun laws in Texas that limit gun purchases, Republican legislators won’t think twice about implementing laws that increase the use of guns—even in schools. Gun-loving Texas lawmakers introduced a proposal that would put “school marshals” in every one of the state’s K-12 schools.
According to the Dallas News, “Marshals will be allowed to carry a gun and their identity would only be known to the school’s head administrator and law enforcement. If working in a classroom or around children, the school marshal’s weapon will be locked away but within reach.”
Following the incident at Sandy Hook Elementary School, where 20 children and six adults were killed in a school shooting, Republican lawmakers in Texas decided the best response to this was to put more guns in the hands of citizens—and to put those citizens in our children’s schools.
Defunding Planned Parenthood
Pro-life legislators in Texas who were working to defund Planned Parenthood and close down all locations in the state suffered a minor setback when the case was taken before a Texas judge—but they overcame that obstacle when the judge ruled that the state has the authority to defund the women’s health organization simply because it advocates for abortion rights. State Republicans were even making absurd claims that Planned Parenthood was pushing teenagers to get pregnant, in an attempt to bring in steady business.
Texas lawmakers were also seeking to keep funds from the Women’s Health Program—a government program that provides low-income women with preventive care—away from Planned Parenthood. This issue was also taken to court, where the same judge voted again in their favor, despite the fact that states do not have the authority to block health providers (such as Planned Parenthood) from receiving Medicaid funds.
After a backlash from voters and a report from the Texas Health and Human Services Commission that projected a significant increase in births among low-income women, Texas Republicans have quickly worked to reverse their initial actions against Planned Parenthood and women’s health organizations statewide.
Rewarding Companies That Deny Contraception To Employees
Hobby Lobby, an arts and crafts supplier chain, recently sued the U.S. government over the health care law that requires they provide their employees coverage for contraceptives. Hobby Lobby president Steve Green cited his Christian values as his reason for standing against this women’s health law.
“When a business is being stressed nearly to the point of bankruptcy by punitive federal taxes, of course the state should give them relief,” Texas State Republican representative Jonathan Stickland stated. “The Obama administration’s mandate and their threats to bury Hobby Lobby with $1.3 million per day in tax penalties aren’t just unconstitutional, they’re unconscionable. It is simply appalling that any business owner should have to choose between violating their religious convictions and watching their business be strangled by the strong arm of Federal mandates and taxation.”
Stickland’s efforts through House Bill 649 to grant tax breaks to Hobby Lobby so they can cover the cost of contraception for employees would actually keep them from paying any state taxes at all. The state of Texas would lose over a million dollars in tax revenue from Hobby Lobby alone.
By: Allison Brito, The National Memo, May 15, 2013
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