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“Citigroup Becomes Its Own Self-Serving Lawmaker”: 21st Century Civics Lesson; How A Corporate Bill Becomes A Law

Congress, which has long been so tied up in a partisan knot by right-wing extremists that it has been unable to move, suddenly sprang loose at the end of the year and put on a phenomenal show of acrobatic lawmaking.

In one big, bipartisan spending bill, our legislative gymnasts pulled off a breathtaking, flat-footed backflip for Wall Street, and then set a dizzying new height record for the amount of money deep-pocketed donors can give to the two major political parties. It was the best scratch-my-back performance you never saw. You and I didn’t see it — because it happened in secret.

The favor was huge — allowing Wall Street’s most reckless speculators to have their losses on risky derivative deals insured by us taxpayers. Yes, such losses were a central cause of the 2008 financial crash and subsequent unholy bank bailout, which led to passage of the Dodd-Frank reform law, including a provision sparing taxpayers from covering future losses. But with one, compact, 85-line provision inserted deep inside the 1,600-page, trillion-dollar spending bill, Congress did a dazzling flip-flop on that regulation, putting us taxpayers back on the hook for the banksters’ high-risk speculation.

In this same spending bill, Congress also used its legislative athleticism to free rich donors (such as Wall Street bankers) from a limit of under $100,000 on the donation that any one of them can give to political parties. In a spectacular gravity-defying stunt, lawmakers flung the limit on these donations to a record-setting 15 times higher than before. So now bankers who are grateful to either party for being able to make a killing on taxpayer-backed deals can give $1.5 million each to the parties.

Perhaps you recall from your high school civics class that neat, one-page flow chart showing the perfectly logical, beautifully democratic process that Congress must go through to pass our laws.

What a bunch of kidders those chart makers were! To see how the sausage is really made, let’s take a look at that trillion-dollar budget bill that Congress squeezed out just before Christmas. It was crammed with special corporate favors, such as: reinstating a Bush rule allowing mining giants to explode the tops off ancient Appalachian mountains and then bulldoze the rubble down into the valley below, destroying pristine mountain streams; another letting long-haul trucking outfits require their drivers to be on the road more than 11 hours a day and up to 82 hours per week, filling our highways with highballing, sleep-deprived truckers; and cutting $60 billion from the Environmental Protection Agency, freeing up polluters to go unpunished for polluting.

None of these favors had anything to do with that “how a bill becomes law” flow chart in our civics textbook. No bill was filed, no public hearings, no debate, no vote. Just — BAM! — there they were, a thicket of benefits secretly slipped into the 1,600-page budget bill by … well, by whom? Largely by corporate lobbyists, though they get one of their for-hire congresscritters to do the actual dirty deed.

The taxpayer subsidy for Wall Street, for example, was written by Citigroup. The bank’s lobbyists then handed the provision to Kansas Republican Kevin Yoder, who slipped it into the bill. Thus, the Wall Street conglomerate that took a $50 billion bailout from us taxpayers just seven years ago to save itself from its own bad deals essentially was allowed to become an unelected, self-serving, do-it-yourself, backroom “lawmaker” to make sure that your and my tax dollars will be there to cover its next mess-up.

And that, boys and girls, is the real flow chart for making our laws. It’s always an amazing sight when Wall Street and Congress get together — especially when they get together out of sight.

 

By: Jim Hightower, The National Memo, December 24, 2014

December 27, 2014 Posted by | Citigroup, Congress, Wall Street | , , , , , , , , | Leave a comment

“What States’ Rights?”: House GOP Fights For Food-Stamp Cuts

Ordinarily, when conservative policymakers complain about “fraud” and “cheating” in federal programs intended to help poor people eat food, they’re referring to individuals accused of abusing the system unfairly. But over the last few days, congressional Republicans are using familiar rhetoric in an unfamiliar way.

Republican leaders are threatening to take congressional action to stop state governors from flouting the food stamp cuts contained in the 2014 farm bill.

The governors of at least six states – New York, Connecticut, Rhode Island, Pennsylvania, Montana and Oregon – have now taken measures to protect more than a combined $800 million in annual Supplemental Nutrition Assistance Program benefits, and more states are expected to follow suit. Their actions threaten – over time – to wipe out the more than $8 billion in cuts over 10 years to the food stamp program that were just passed by Congress as part of the 2014 farm bill.

But those who initially supported the food stamp cuts are warning that retaliatory actions may be coming.

As a policy matter, the underlying change is a little tricky. Republicans successfully cut food aid to the poor – though not nearly as much as they’d hoped – which mostly affected 17 states that participate in the “Heat and Eat” program, which connects federal LIHEAP (Low-Income Home Energy Assistance Program) assistance with SNAP (Supplemental Nutrition Assistance Program).

At last count, six of the affected governors – five Democrats and one Republican – have decided to start fiddling with the books, moving money around so low-income constituents won’t lose their food benefits. Other governors appear eager to do the same.

And this has apparently outraged Republicans on Capitol Hill. House Speaker John Boehner (R-Ohio) told reporters late last week that he wants Congress to “try to stop this cheating and this fraud from continuing.” Rep. Frank Lucas (R-Okla.), who helped write the relevant legislation, wants a full congressional investigation and new measures intended to guarantee food-stamp cuts.

Remember, the “cheating” and “fraud” is in reference to state officials trying to help low-income residents access food.

For its part, the Obama administration seems a lot less concerned than Congress.

Rep. Kevin Yoder (R-Kan.) expressed anger Friday over the possibility that none of the cuts to the SNAP program would be realized and asked USDA Secretary Tom Vilsack during an appropriations hearing whether he had any inside knowledge that states would nullify the benefit reductions.

Vilsack said he didn’t know or suspect what the states would do, but defended their right to take action.

“Frankly, as a former governor and former state senator, I respect the role of governors and legislatures to make decisions that they think are in their state’s best interests,” Vilsack said.

GOP lawmakers found this unsatisfying. Expect to hear quite a bit more about this in the coming weeks.

 

By: Steve Benen, The Maddow Blog, March 17, 2014

March 19, 2014 Posted by | House Republicans, SNAP, States Rights | , , , , , , , | Leave a comment

   

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