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“John Boehner’s Christmas Gift”: A Guarantee That The Republican House Will Destroy The Economy

Last week, we learned that Speaker of the House John Boehner has no control over his majority. We’ve seen Boehner have trouble with his caucus before, of course — a significant portion of these people are crazy — but the failure of “Plan B” was different. In the past Boehner has had trouble whipping votes to support things that were destined to become law. Boehner couldn’t get his caucus to support TARP because TARP was awful and was also definitely going to happen. Boehner couldn’t get the votes for the 2011 debt deal because conservatives thought they’d eventually force an even better deal. But this was a totally symbolic gesture that never had any shot at passing the Senate or getting signed by the president. Boehner’s “Plan B” was a stupid pointless empty gesture, and that is why its failure is actually slightly scary, in addition to being hilarious.

The point of “Plan B” was to give Republicans a means of blaming Democrats when everyone’s taxes go up next year, while also giving them an opportunity to claim that they supported raising taxes on rich people. The problem was, Republicans really don’t support raising taxes on rich people, and they feel so strongly about this that they didn’t want to pretend to support a tax increase.

What is especially silly about all of this is that in any sort of sensible political system none of it would be happening. A majority of Americans just voted for Democrats to control the White House, Senate and House of Representatives, which would seem to indicate that a majority of American voters would just prefer it if Barack Obama, Harry Reid and Nancy Pelosi decided all of this for themselves. But that’s not the way our archaic political system works, and instead we will watch this unpopular anthropomorphic Camel 100 carefully negotiate a compromise with the president that his party will refuse to support, until we either extend all tax cuts forever or “go over the cliff” and cause every Sunday show panelist in the country to hyperventilate until losing consciousness.

How did we get here? Keep in mind, your average congressperson is as dumb as your average regular person, and Republican members listen to the same talk radio and read the same right-wing blogs and watch the same Fox News as every other conservative. It’s always been comforting to imagine that canny evil masterminds huddle in backrooms plotting how to use the right-wing media machine to manipulate the rubes into accepting whatever the corporate elites want, but the story now is that the canny masterminds have no control over the media operation they’ve built and the “grownups” cannot convince the true believers to do shit. There’s really no talking sense into Michele Bachmann and Steve King, and every two years gerrymandered ultra-conservative districts send more and more Kings and Bachmanns to the House. And Republicans know that their safe districts are only safe from Democrats, not even-crazier Republicans.

John Boehner will probably be fine. He’ll likely remain speaker even, mostly because no one else wants that horrible job. America might not be fine.

“Going over the fiscal cliff” will be a fun adventure at first, especially because it has been so long since America has had any sort of tax hike or defense budget cut, but shortly after the “cliff” comes the debt ceiling increase vote, and there is really no chance, at all, of the House raising the debt ceiling, under any circumstance. Maybe if the president agrees to block grant Medicare and return America to the gold standard. And promises to personally fire 100 teachers.

The idea that “going over the cliff” would give the president enough leverage to get a halfway decent deal — with some stimulus up front and everything! — depended on a House of Representatives capable of acting rationally. It’s apparent that they are in fact prepared to intentionally tank the entire American economy.

 

By: Alex Pareene, Salon, December 24, 2012

December 26, 2012 Posted by | Fiscal Cliff | , , , , , , , | 2 Comments

“A Party Of Spineless Legislators”: John Boehner’s Failure And The GOP’s Disgrace

Remarkably, John Boehner couldn’t get enough House Republicans to vote in favor of his proposal to keep the Bush tax cuts in place on the first million dollars of everyone’s income and apply the old Clinton rates only to dollars over and above a million.

What? Even Grover Norquist blessed Boehner’s proposal, saying it wasn’t really a tax increase. Even Paul Ryan supported it.

What does Boehner’s failure tell us about the modern Republican party?

That it has become a party of hypocrisy masquerading as principled ideology. The GOP talks endlessly about the importance of reducing the budget deficit. But it isn’t even willing to raise revenues from the richest three-tenths of one percent of Americans to help with the task. We’re talking about 400,000 people, for crying out loud.

It has become a party that routinely shills for its super-wealthy patrons at a time in our nation’s history when the middle class is shrinking, the median wage is dropping, and the share of Americans in poverty is rising.

It has become a party of spineless legislators more afraid of facing primary challenges from right-wing kooks than of standing up for what’s right for America.

For all these reasons it has become irrelevant to the problems America faces.

The Republican Party is in the process of marginalizing itself out of existence. I am tempted to say good riddance, but that would be premature.

 

By: Robert Reich, Robert Reich Blog, December 20, 2012

December 21, 2012 Posted by | Budget | , , , , , , , , | 2 Comments

“The Republican Winter Carnival”: Will John Boehner’s Speakership Survive Until Plan C?

Has there been a House speaker in modern American history with less control over his members than John Boehner?

Over the past three days, Boehner has focused all attention on “Plan B”: an effort to strengthen his hand in negotiations with President Obama by passing backup legislation that would extend the Bush tax cuts for all income under $1 million.

Tonight, Boehner lost that vote. In a dramatic turn of events on the House floor, he pulled the legislation. In a statement released moments ago, he said, “The House did not take up the tax measure today because it did not have sufficient support from our members to pass.” Boehner lost.

Plan A, which was a deal with Obama, was put on ice, many believe, because Boehner couldn’t wrangle the votes to pass anything Obama would sign. Plan B failed because Boehner couldn’t wrangle the Republican votes to pass something Obama had sworn he wouldn’t sign.

The failure of Plan B proved something important: Boehner doesn’t have enough Republican support to pass any bill that increases taxes — even one meant to block a larger tax increase — without a significant number of Democrats. The House has now adjourned until after Christmas, but it’s clear now what Plan C is going to have to be: Boehner is going to need to accept the simple reality that if he’s to be a successful speaker, he’s going to need to begin passing legislation with Democratic votes.

There’s an asterisk there, though: It’s not entirely clear whether Boehner will be the speaker of the House a month from today. The vote to elect the next speaker is on Jan. 3. To win, you need an absolute majority of the House, not a plurality. Even a hopeless conservative challenge that attracts only a handful of Republican votes could deny Boehner the speakership until a consensus candidate emerged. Tonight’s vote makes that challenge more likely.

A significant number of Boehner’s members clearly don’t trust his strategic instincts, they don’t feel personally bound to support him, they clearly disagree with his belief that tax rates must rise as part of a deal, and they, along with many other Republicans, must be humiliated after the shenanigans on the House floor this evening. Worse, they know that Boehner knows he’ll need Democratic support to get a budget deal done. That means “a cave,” at least from the perspective of the conservative bloc, is certain. That, too, will make a change of leadership appealing.

If a conservative spoiler runs, he or she could very possibly deny Boehner the 218 votes he needs to become speaker, clearing the way for a more moderate candidate like Eric Cantor to unite the party. It’s hard to say exactly how likely that is. But it’s likelier than it was, say, this morning.

 

By: Ezra Klein, The Washington Post, December 20, 2012

December 21, 2012 Posted by | Budget | , , , , , , , , | 2 Comments

“Leading From Behind”: Could John Boehner Lose The House Speaker’s Gavel?

Think Congress is dysfunctional during these fiscal-cliff negotiations? What if John Boehner can’t even get enough House Republican votes next month to be reelected as speaker?

Far-fetched? Perhaps. But at least one conservative group says Boehner’s hold on the speaker’s gavel should not be viewed as a done deal. It is launching an all-out effort aimed at about 100 House Republicans to see if it can find at least 17 of them angry enough, and bold enough, to block Boehner’s reelection when the new Congress commences on Jan. 3.

“With Boehner basically out there promoting a tax hike and removing conservatives from key committees, these are not good precedents for the next two years,” Ned Ryun, whose father, Jim Ryun, was a representative for Kansas, complained to the National Journal on Thursday.

Ned Ryun is president and CEO of American Majority, a Virginia-based group that says it has trained thousands of conservative activists and also says that it embraces but predates the Tea Party movement. He is getting attention with a blog he posted on Wednesday — not so much because he says Boehner should be fired as speaker, but because he says the conservative movement could actually accomplish that goal under House rules and that it does not have to be a “fairy-tale” wish.

Boehner, whose last two years as speaker already have been mired in grousing from conservative groups, is again being hit this week from the far right over his counteroffer in fiscal-cliff negotiations with the White House to raise $800 billion in revenue by closing special-interest loopholes and tax deductions. Some groups are casting this as his seeming openness to breaking a promise not to raise taxes.

Adding to that anger has been other news this week that the speaker and his House GOP steering committee had purged four conservatives from their coveted committee seats, at least three of whom have been butting heads with party leaders over government spending and the federal deficit. This just weeks after Boehner had pleaded for unity in a private conference call to fellow House Republicans on the day after the Nov. 6 election.

For this anger to result in Boehner losing his speaker’s gavel, explained Ryun to National Journal on Thursday, enough conservative members need to show “some guts” and publicly rebel.

He says his group is looking at a list of about 100 conservatives whom they will try to persuade to step up, go public with their disappointment in Boehner, and show they are willing to take the risks and potential punishment Boehner has already shown he will dish out if such an effort fails.

In fact, there was already some murmuring within the House Republican conference itself about potential maneuvering in the upcoming speaker election as a way to express conservative discontent, say House GOP sources familiar with such talks.

But each of those who spoke — all on the condition they not be identified — also underscored that they’ve seen no concerted effort yet to organize anything beyond some conservatives saying they might simply vote “present” instead of specifically for Boehner. Even doing that would bring potential punishment from top leaders, because the votes are public.

Boehner spokesman Michael Steel responded on Thursday by pointing out that the Ohio Republican last month “was honored to be selected by the House Republican Conference to be its candidate for speaker.” In fact, there was only one other candidate nominated in that closed-door process. And the nomination by Rep. Louie Gohmert, R-Texas, of former Speaker Newt Gingrich did not even receive a seconding. But there was no actual roll-call vote, and Boehner was selected by acclamation.

For their part, House Democrats reelected Nancy Pelosi as their leader, and also their nominee to be speaker.

Under normal circumstances, Boehner’s reelection as speaker on Jan. 3 should be automatic. House Republicans are set to enter the new Congress holding 234 seats and the Democrats will have 200 seats (one of the House’s total 435 seats is to be vacant with the resignation last month of former Rep. Jesse Jackson Jr. of Illinois). But the linchpin of the conservative “oust-Boehner” strategy being floated rests on the requirement that to be elected as speaker, a candidate must receive an “absolute majority” of all House member votes cast for individuals.

And as confirmed in the details contained in a Congressional Research Service analysis dated Jan. 6, 2011, titled, “Speakers of the House: Elections, 1913-2011,” a concerted effort by as few as 17 House conservatives could — in fact — throw this normally routine reelection process for Boehner into turmoil.

“Members normally vote for the (speaker) candidate of their own party conference, but may vote for any individual, whether nominated or not,” states the CRS report. “To be elected, a candidate must receive an absolute majority of all the votes cast for individuals. This number may be less than a majority (now 218) of the full membership of the House, because of vacancies, absentees, or members voting “present.”

In short, with Jackson having retired, as few as 17 House Republican members now can deny Boehner an “absolute majority” of the total 434 expected votes on Jan. 3, if all the Democrats back Pelosi.

The CRS report goes on to note that the elected speaker has always been a sitting member of the House, but the Constitution does not require that to be so. As a result, Republicans upset with Boehner aren’t limited to voting for Pelosi, or even another Republican, but almost anyone as a symbolic alternative.

“If no candidate receives the requisite majority, the roll call is repeated until a Speaker is elected.

Since 1913, this procedure has been necessary only in 1923, when nine ballots were required before a speaker was elected, states the report.

On Thursday, one House Republican member, who described himself during the interview as a conservative, said he has not been approached by any colleagues about such a maneuver but has heard discussion about it from other sources. He insisted he would not go along with such a ploy — but he also said that if Boehner were to not be elected on the first ballot, it would be tantamount to a “no confidence vote.” He said that would likely lead to some energetic closed-door conferences to iron out differences, “or even pick a new leader.”

This lawmaker said that in such a scenario, he did not believe either Majority Leader Eric Cantor nor Majority Whip Kevin Smith would be selected by the conference as its new nominee — “because they are all functioning as one team.”

Meanwhile, a senior House Democratic aide appeared to relish such talk, saying it indicates Boehner’s leadership team “is going to have to work their butts off and call in every chit to make sure he wins what should normally be just a boring vote.”

“If Speaker Boehner wants to purge independent, bold conservatives — I think it’s time he gets fired as speaker,” blogged Ryun. “Not only for the purge. He has failed to effectively win negotiations with President Obama and appointed moderate committee chairs. To the public, Boehner may appear radical, but in reality he proposes milquetoast policies, like the tax hikes he proposed this week.”

 

By: Billy House, The Atlantic, December 6, 2012

December 9, 2012 Posted by | Congress, Politics | , , , , , , , | 1 Comment

“Good Cop, Bad Cop”: Conservative Think Tanks’ Responses To Default Is Another Reason To Kill The Debt Ceiling

House Republicans are looking to weaponize the debt ceiling again, while the Obama administration is trying to make removing the threat of default part of any agreement.

Here’s one reason why the debt ceiling needs to go: the conservative intellectual infrastructure cheered on a potential default. I had imagined that there would be a good cop/bad cop dynamic to the right. Very conservative political leaders would be the bad cop, saying that they weren’t afraid to default on the debt, while conservative think tanks would play a version of the good cop, warning of the dire consequences of a default for the economy if their bad cop friend didn’t get his way.

For instance, here’s bad cop Sen. Pat Toomey (R-PA) saying that the markets “would actually accept even a delay in interest payments on the Treasuries,” especially “if it meant that Congress would right this ship, address this fiscal imbalance, and put us on a sustainable path, and that the bond market would rally if it saw we were making real progress towards this.” Missing interest payments is fine; in fact, it is great for the country if it is used to pass the Ryan Plan.

Financial analysts, to put it mildly, disagreed. JP Morgan analysts wrote that “any delay in making a coupon or principal payment by Treasury would almost certainly have large systemic effects with long-term adverse consequences for Treasury finances and the US economy.”

Here’s where the think tanks are fascinating. You could imagine them saying “our partner Toomey is nuts, we can’t control him, and you’d better do what he says or there’s going to be real damage.” But that’s not what they did. It’s best to split the work they did on the debt ceiling in two directions:

1. Technical Default Ain’t No Thang. The first is arguing, like Toomey, that a “technical default” wouldn’t matter, and in fact it could be a great thing if the Ryan Plan passed as a result. How did James Pethokoukis, then of Fortune and now of AEI, deal with a Moody’s report arguing a “short-lived default” would hurt the economy? Pethokoukis: ”I guess I would care more about what Moody’s had to say if a) they hadn’t missed the whole financial crisis, b) didn’t want to see higher taxes as part of any fiscal fix and c) if they made any economic sense.” Default doesn’t matter because Pethokoukis doesn’t want taxes to go up, and there’s no economic sense because of an interview he read in the Wall Street Journal.

Others went even further, arguing that the real defaulters are those who, um, don’t want to default on the debt. Here’s the conservative think tank e21 with a staff editorial arguing that ”policymakers need to stay focused on the real default issue: whether the terms of the debt limit increase this summer will be sufficiently tough to ensure that the nation’s debt-to-GDP ratio is stabilized and eventually sharply reduced.” All these people who want a clean debt ceiling increase are causing the real default issue. As someone who used to do a lot of credit risk modeling, this is my favorite: “Indeed, those demanding the toughest concessions today actually have a strong pro-creditor bias.” S&P disagreed with whoever wrote that editorial and increased the credit risk (downgraded) based on the threat of this technical default.

The Heritage Foundation wrote a white paper saying that you could just “hold the debt limit in place, thereby forcing an immediate reduction in non-interest spending averaging about $125 billion each month,” and that “refusing to raise the debt limit would not, in and of itself, cause the United States to default on its public debt.” Dana Milbank noted that these kinds of shuffling plans would still leave the government short and likely cause a recession. Milbank: ”Without borrowing, we’d have to cut Obama’s budget for 2012 by $1.5 trillion. That means even if we shut down the military and stopped writing Social Security checks, the government would still come up about $200 billion short.” The Cato Institute also jumped in with the technical default crowd here.

But that was the reaction from the number-crunching analysts. What about the bosses?

2. Civilization Hangs in the Balance of the Debt Ceiling Fight. Here’s the president of AEI, Arthur C. Brooks, in July 2011: “The battle over the debt ceiling…is not a political fight between Republicans and Democrats; it is a fight against 50-year trends toward statism…No one deserves our political support today unless he or she is willing to work for as long as it takes to win the moral fight to steer our nation back toward enterprise and self-governance.”

Even better, the president of The Heritage Foundation, also in July 2011, compares Democrats to Japan during World War II and then argues: ”We must win this fight. The debate over raising the debt limit seems complicated, but it is really very simple. Look beyond the myriad details of the awkward compromises, and you see an epic struggle between two opposing camps….Congress should not raise the debt limit without getting spending under control.”

So the the conservative intellectual infrastructure, which consumes hundreds of millions of dollars a year, looked at the possibility of a debt default and determined it was both inconsequential and also the only way to stop statism in our lifetimes. No wonder the time period around the debt ceiling in 2011 was such a disaster for our economy, killing around 250,000 jobs that should have been created. There’s no reason to assume all the same players won’t play an even worse cop this time around.

There’s no good reason for the debt ceiling, and now there are really bad consequences for its existence. Time to end it.

 

By: Mike Konczal, The National Memo, December 6, 2012

December 7, 2012 Posted by | Politics | , , , , , , , , | 2 Comments