Friday, October 25, 2013

Real Americans Like Obamacare So Conservatives Resort To Shameless Lies















Real Americans Like Obamacare So Conservatives Resort To Shameless Lies

Halloween is approaching and the hobgoblins of conservative media are already spinning nightmarish tales of the Affordable Care Act (aka ObamaCare). Actually, they have been doing it for quite some time, dating back to at least March 2010 when Tucker Carlson’s Daily Caller published an article headlined [3] “IRS looking to hire thousands of armed tax agents to enforce healthcare laws.” Fox News reposted the article on its community web site and Fib Factory, Fox Nation [4] despite the fact that it was a complete fabrication and was debunked [5] by the Annenberg Center’s FactCheck.org

This year the campaign to recast a program that makes health insurance accessible to millions of Americans as a plague of locusts has risen to fever pitch. The Republican Party and conservative media has pulled out all the stops in a strategy aimed at scaring people from signing up with the hope that low enrollment will collapse the system. President Obama had the same concerns last month when he said…

    “What you’ve had is an unprecedented effort that you’ve seen ramp up in the past month or so that those who have opposed the idea of universal health care in the first place — and have fought this thing tooth and nail through Congress and through the courts — trying to scare and discourage people from getting a good deal.”

These are not the hackneyed GOP talking points about death panels, job killers and government bureaucrats coming between patients and doctors. These are far more fanciful efforts that stretch the limits of credulity and appear to have more in common with satire than actual news reporting. But this is what it has come to as Obamacare has finally reached the consumer stage and conservatives are desperate to keep people from discovering its benefits.

1) Fox News Warns That If You Sign Up For ObamaCare Hackers Will Steal Your Life Savings [6]
On an episode of “The Real Story” on Fox News, host Gretchen Carlson introduced an ominous new strain of fear-mongering to demonize Obamacare. She interviewed John McAfee, the anti-virus software developer who is presently a fugitive from a murder investigation in Belize. He made a wild accusation that visitors to Healthcare.gov are going to be victimized by hackers who will steal their identities and/or drain their bank accounts.

Neither Carlson nor McAfee actually provided any evidence of such a threat. In fact, when directly asked about it, McAfee diverts from the question and lays out a completely different threat that has nothing whatsoever to do with the Obamacare website. He alleges that nefarious individuals could set up their own unaffiliated websites in the hopes of luring naive people to take advantage of. Of course, that is a threat that exists for every website, and has since the Internet began. Visiting Healthcare.gov does not expose anyone to these phony sites as implied by the fear-mongers at Fox.

2) WorldNetDaily Reports “Obama ‘Crashing Health-Care Site On Purpose’” [7]
This article asserts that the President is so afraid that insurance shoppers will learn that Obamacare is really more expensive than the old system that he deliberately caused the website to crash to keep people from seeing the rates. No one is defending the botched launch of the insurance exchanges. However, the notion that the technical glitches were intentionally caused by Obama is delusional.

WND’s argument (supported by links to Rush Limbaugh) that rates will increase leaves out the subsidies and tax credits that are available for many applicants. With these adjustments, premiums for most people will be substantially lower. The administration would, therefore, be anxious for consumers to have access to that information and would not be putting obstacles in their path.

3) Rand Paul: Take Obamacare Or Go To Jail [8]
Tea Party darling Rand Paul has made innumerable false statements about virtually every policy that has emanated from the White House. But none are more surreal than his comment, “They say take [Obamacare] or we will put people in jail. People say we aren’t going to put anybody in jail. The heck they won’t. You will get fined first. If you don’t pay your fines, you will go to jail.”

That’s interesting coming from someone who has frequently complained that no one in Congress has read the Affordable Care Act. If he had read it himself he would have known that the law explicitly prohibits criminal consequences for non-payment of fines. It states “In the case of any failure by a taxpayer to timely pay any penalty imposed by this section, such taxpayer shall not be subject to any criminal prosecution or penalty with respect to such failure.” It rarely gets more clear than that, but the mission to frighten the public exceeds the motivation for truth on the part of GOP scare-meisters.

4) Right-Wing Think Tank Mortified That Obamacare Website Links To Voter Registration Form [9]
This is a particularly curious horror story as it seeks to raise an alarm over something that ought to be regarded as a civic duty. Nevertheless, the conservative MacIver Institute (a Koch brothers-funded [10] operation) published an article [11] that implied there was some sort of heinous objective on the part of the Obama administration for having included a link to a voter registration form on the Obamacare website. This startling revelation is met with foreboding by MacIver and a flurry of right-wing media outlets that disseminated MacIver’s story, including National Review, Glenn Beck’s TheBlaze, Breitbart News, the Daily Caller, and Fox News. All of their reports agreed that this was a clandestine attempt to register only Democratic voters despite the absence of any partisan framing. MacIver even asks specifically “[W]hat does registering to vote have to do with signing up for Obamacare?”

The core of the right’s trepidation is rooted in a more fundamental aversion to the act of voting itself. It is why they are continually erecting new barriers to voting. Democrats, on the other hand, have sought to expand voter turnout with bills like the 1993 National Voter Registration Act [12] (aka Motor Voter) that mandates certain government agencies provide people with access to voter registration. In fact, that 20-year-old law requires that Obamacare administrators make voter registration available. MacIver, and similarly mortified conservative comrades, are either unaware of this, or are deliberately feigning ignorance in order to rile up their conspiracy-prone base.

5) Weekly Standard Finds Imaginary Threat On Obamacare Website [13]
The ultra-conservative Weekly Standard dispatched its crack reporters to ferret out what it portrayed [14] as an ominous security threat on the Healthcare.gov website. What it found were comments in the site’s source code that said that “You have no reasonable expectation of privacy regarding any communication or data transiting or stored on this information system.” The Standard notes that these comments were not visible to users and were not part of the site’s terms and conditions. But that didn’t stop them from implying that users would be still be bound by it because “the language is nevertheless a part of the underlying code.” Not really. It’s only a part of some inoperative text that carries no more obligation than some discarded notes.

This is another situation where you have to wonder whether these people are embarrassingly stupid or brazenly dishonest. There is a reason this language was not visible. It was deliberately removed with the use of HTML comment tags by the site’s programmers. It was undoubtedly edited out because it was not an accurate expression of the site’s privacy policy. It does not mean that users are agreeing to a secret clause permitting the government to spy on them as the Standard implied. If any of these “reporters” had a 14-year-old at home they could have learned what this is about. But that would have interfered with their goal, which is to leave Americans with the false impression that some hidden danger lurks beneath the surface of Obamacare.

6) Fox News Fears ACORN Is Back To Push ObamaCare [15]
The Curvy Couch Potatoes over at Fox & Friends had a jolly old time resurrecting their fear of a community organizing enterprise that no longer exists. ACORN was wrongly hounded out of business by right-wing opponents after pseudo-journalist and convicted criminal James O’Keefe distributed some deceitfully edited and libelous videos. But that hasn’t stopped conservative media from exhuming the corpse whenever they are in need of a sensationalist story, as demonstrated by Fox co-host Elisabeth Hasselbeck, who announced that “We’re getting information that ACORN operatives are trying to sign people up for the Affordable Care Act.”

While ACORN was never found to have engaged in any unlawful activity, there was a bill passed that prohibited them from receiving federal funds. However, there is nothing in the law that prevents organizations with former ACORN staff from getting federal grants. In fact, there isn’t even any current law that prevents ACORN from getting grants as the previous ban was not included in the latest Continuing Resolution. Fox is brazenly misrepresenting the facts in an attempt to reignite fears of the old ACORN bogeyman. They upped the terror ante by further alleging that ACORN would use your personal medical and financial information against you politically. They never revealed how that would occur, or to what end, but that isn’t the point. Their only interest is spreading fear, no matter how irrational and unsupported.

Conclusion

The zealousness with which these right-wing propagandists pursue their disinformation campaign is evidence of their own fear that Americans will come to appreciate having access to affordable healthcare. Therefore, they see their mission as derailing the program before that eventuality unfolds. Their tactics get more extreme and absurd the closer the program gets to gaining acceptance. A particular target of their attack is young people whose participation is important for the program to succeed. Consequently, opponents have launched a well-funded campaign (thanks to the Koch brothers) to scare off young consumers. Generation Opportunity has already released the now notorious “Creepy Uncle Sam” videos that make false implications of government intrusion into medical care. Next they are embarking on a 20-city college tour to mislead students.

PolitiFact has reviewed 16 claims made by Obamacare detractors and found all of them false. Twelve of those were designated “Pants On Fire” lies [16]. If there is one question that begs to be asked, it is this: If Obamacare is so terrible, why do opponents have to tell so many lies about it?

Obamacare is a free market solution - you buy insurance from privately owned insurance companies to health care cost that were raising 14% a year. Which meant that many patriotic hard working Americans either could not get insurance or they were going bankrupt trying to pay big medical corporations for their medical care. We could have just made Medicare, a government run socialized health insurance program available for everyone over 18, but conservatives did not want that either. Reality check: conservative Republicans thought it was moral to lie the country into a war in Iraq that cost $3 trillion dollars, but think it is immoral for patriots to have health care insurance. No wonder most of the nation thinks conservatism is just another name for wacky nutbars. 

Wednesday, October 23, 2013

Conservative Republicans And The Perfection of Private Enterprise













Conservative Republicans And The Perfection of Private Enterprise
Private systems are focused on making profits for a few well-positioned people. Public systems, when sufficiently supported by taxes, work for everyone in a generally equitable manner.

The following are six specific reasons why privatization simply doesn't work.

1. The Profit Motive Moves Most of the Money to the Top

The federal Medicare Administrator made $170,000 in 2010. The president of MD Anderson Cancer Center in Texas made over ten times as much in 2012. Stephen J. Hemsley, the CEO of United Health Group, made almost 300 times as much in one year, $48 million, most of it from company stock.

In part because of such inequities in compensation, our private health care system is the most expensive system in the developed world. The price of common surgeries is anywhere from three to ten times higher in the U.S. than in Great Britain, Canada, France, or Germany. Two of the documented examples: an $8,000 special stress test for which Medicare would have paid $554; and a $60,000 gall bladder operation, for which a private insurance company was willing to pay $2,000.

Medicare, on the other hand, which is largely without the profit motive and the competing sources of billing, is efficiently run, for all eligible Americans. According to the Council for Affordable Health Insurance and other sources, medical administrative costs are much higher for private insurance than for Medicare.

But the privatizers keep encroaching on the public sector. Our government reimburses the CEOs of private contractors at a rate approximately double what we pay the President. Overall, we pay the corporate bosses over $7 billion a year.

Many Americans don't realize that the privatization of Social Security and Medicare would transfer much of our money to yet another group of CEOs.

2. Privatization Serves People with Money, the Public Sector Serves Everyone

A good example is the U.S. Postal Service (USPS), which is legally required to serve every home in the country. Fedex and United Parcel Service (UPS) can't serve unprofitable locations. Yet the USPS is much cheaper for small packages. An online comparison revealed the following for the two-day shipment of a similarly-sized envelope to another state:

-- USPS 2-Day $5.68 (46 cents without the 2-day restriction)
-- FedEx 2-Day $19.28
-- UPS, 2 Day $24.09

USPS is so inexpensive, in fact, that Fedex actually uses the U.S. Post Office for about 30 percent of its ground shipments.

Another example is education. A recent ProPublica report found that in the past twenty years four-year state colleges have been serving a diminishing portion of the country's lowest-income students. At the K-12 level, cost-saving business strategies apply to the privatization of our children's education. Charter schools are less likely to accept students with disabilities. Charter teachers have fewer years of experience and a higher turnover rate. Non-teacher positions have insufficient retirement plans and health insurance, and much lower pay.

Finally, with regard to health care, 43 percent of sick Americans skipped doctor's visits and/or medication purchases in 2011 because of excessive costs. It's estimated that over 40,000 Americans die every year because they can't afford health insurance.

3. Privatization Turns Essential Human Needs into Products

Big business would like to privatize our water. A Citigroup economist exulted, "Water as an asset class will, in my view, become eventually the single most important physical-commodity based asset class, dwarfing oil, copper, agricultural commodities and precious metals."

They want our federal land. Attempts at privatization were made by the Reagan administration in the 1980s and the Republican-controlled Congress in the 1990s. In 2006, President Bush proposed auctioning off 300,000 acres of national forest in 41 states. Paul Ryan's Path to Prosperity was based in part on Republican Jason Chaffetz' "Disposal of Excess Federal Lands Act of 2011," which would unload millions of acres of land in America's west.

They want our cities. A privatization expert told the Detroit Free Press that the real money is in urban assets with a "revenue stream." So Detroit's most valuable resource, its Water & Sewerage Department (DWSD), is the collateral for a loan of $350 million to pay off the banks handling the litigation. Bloomberg estimates a cost of almost half a billion dollars, in a city where homeowners can barely afford the water services.

And they want our bodies. One-fifth of the human genome is privately owned through patents. Strains of influenza and hepatitis have been claimed by corporate and university labs, and because of this researchers can't use the patented life forms to perform cancer research.

4. Public Systems Promote a Strong Middle Class

Part of free-market mythology is that public employees and union workers are greedy takers, enjoying benefits that average private sector workers are denied. But the facts show that government and union workers are not overpaid. According to the Census Bureau, state and local government employees make up 14.5% of the U.S. workforce and receive 14.3% of the total compensation. Union members make up about 12% of the workforce, but their total pay amounts to just 10% of adjusted gross income as reported to the IRS.

The average private sector worker makes about the same salary as a state or local government worker. But the median salary for U.S. workers, 83% of whom are in the private sector, was $18,000 less in 2009, at $26,261. Inequality is much more pervasive in the private sector.

5. The Private Sector Has Incentive To Fail, or No Incentive At All

The most obvious incentive to fail is in the private prison industry. One would think it a worthy goal to rehabilitate prisoners and gradually empty the jails. But business is too good. With each prisoner generating up to $40,000 a year in revenue, the number of prisoners in private facilities has increased from 1990 to 2009 by more than 1600%, from about 7,000 to over 125,000 inmates. Corrections Corporation of America recently offered to run the prison system in any state willing to guarantee that jails stay 90% full.

Nor do privatizers have incentive to maintain infrastructure. David Cay Johnston describes the deteriorating state of America's structural foundation, with grids and pipelines neglected by monopolistic industries that cut costs rather than provide maintenance. Meanwhile, they achieve profit margins of over 50%, eight times the corporate average.

As for public safety, warning signs about unregulated privatization are becoming clearer and more deadly. The Texas fertilizer plant, where 14 people were killed in an explosion and fire, was last inspected by the Occupational Safety and Health Administration (OSHA) over 25 years ago. The U.S. Forest Service, stunned by the Prescott, Arizona fire that killed 19, was forced by the sequester to cut 500 firefighters. The rail disaster in Lac-Megantic, Quebec followed deregulation of Canadian railways. At the other extreme is the public sector, and the Federal Emergency Management Agency (FEMA), which rescued hundreds of people after Hurricane Sandy while serving millions more with meals and water.

The lack of private incentive for human betterment is evident throughout the world. The World Hunger Education Service states that "Harmful economic systems are the principal cause of poverty and hunger." And according to Nicholas Stern, the chief economist for the World Bank, climate change is "the greatest market failure the world has seen."

6. With Public Systems, We Don't Have to Listen To "Individual Initiative" Rantings

Back in the Reagan years, a stunning claim was made by Margaret Thatcher: "There is no such thing as society. There are individual men and women, and there are families." More recently, Paul Ryan complained that government support "drains individual initiative and personal responsibility."

That's easy to say for people with good jobs.

Individual initiative? Our publicly supported communications infrastructure allows the richest 10% of Americans to manipulate their 80% share of the stock market. CEOs rely on roads and seaports and airports to ship their products, the FAA and TSA and Coast Guard and Department of Transportation to safeguard them, a nationwide energy grid to power their factories, and communications towers and satellites to conduct online business. Perhaps most important to business, even as it focuses on short-term profits, is the long-term basic research that is largely conducted with government money. As of 2009 universities were still receiving ten times more science & engineering funding from government than from industry.

Public beats private in almost every way. Only the hype of the free-market media keeps much of America believing that "winner-take-all" is preferable to working together as a community.

This work is licensed under a Creative Commons Attribution-Share Alike 3.0 License

Paul Buchheit is a college teacher, an active member of US Uncut Chicago, founder and developer of social justice and educational websites (UsAgainstGreed.org, PayUpNow.org, RappingHistory.org), and the editor and main author of "American Wars: Illusions and Realities" (Clarity Press).

Private enterprise is not an inherently bad system, but it relies on something terribly lacking in today's largely Conservative economy, moral responsibility. That's right. Our systems would work better and keep more money in the pockets of people who do actual work and have real ideas if our economy was not structured in a way that redistributes the capital created by workers to filthy rich CEOs and Wall Street gamblers. That used to be the grand bargain - OK you corporate cronies can make a lot of money, but in return you cannot take advantage of or steal from workers. The elite top 10% have taken a butcher knife to that bargain and made over half of America into wage slaves - who no matter how hard they work will never get ahead - a good recent example. .

Wednesday, October 16, 2013

The Welfare State - American Corporations Live Off The Welfare Of American Workers


















 The Welfare State - American Corporations Live Off The Welfare Of American Workers

From 2007 to 2011, the biggest public benefits programs spent $243 billion each year on working families who live in poverty or on the brink of it because their jobs pay so poorly, according to a study published Tuesday by researchers at the University of California, Berkeley. The research focuses on fast food workers as exemplifying the plight of low-wage workers and the costs that low wages pass along to taxpayers.

    The study focused on the largest direct assistance programs to establish the cost of the “last line of defense between America’s growing low-income workforce and the want of basic necessities.” The combined cost of public health care programs, the Supplemental Nutrition Assistance Program (SNAP, or food stamps), the Earned Income Tax Credit that targets low-income workers, and Temporary Assistance for Needy Families (TANF, formerly known as welfare Note: No one can live off TANF or welfare there whole life, there is a limit of five years for any one person's lifetime) for working families averaged $243 billion from 2007 to 2011.
Conservative and anti-American plutocrats like the Koch brothers are not capitalists, they do not practice free enterprise, neither do the Waltons ( the family that owns WalMart, Walgreens and Sams Club). The five largest banks in the USA who are still so big that if they fail the country will go into another big recession - do not practice capitalism. They and all large US and western European corporations practice plutocracy, the modern incarnation of feudal lordships. Sure today is a little better, we get wages and we can buy stuff from those corporations, but they own American workers just like feudal lords owned serfs. Even more crazy is that American workers - by virtue of the capital they create - pay these plutocrats to continue being plutocrats. Every time a working class Conservative or libertarian votes conservative they vote to disempower themselves and their country.









Monday, October 14, 2013

Paul Ryan (R-WI) is holding the government hostage in exchange for control of every uterus in America











Paul Ryan (R-WI) is holding the government hostage in exchange for control of every uterus in America
Since negotiations to avert a national default on the debt have shifted from the House to the Senate, Republicans in the lower chamber are still hoping to use the talks as “leverage” to limit women’s access to contraception.

According to the Washington Post, in a private meeting with House Republicans Rep. Paul Ryan (R-WI) — who earlier this weak floated a compromise that would raise the debt ceiling in exchange for cuts to entitlement programs — railed against emerging Senate proposals and argued that the “House could not accept either a debt-limit bill or a government-funding measure that would delay the next fight until the new year”:

    According to two Republicans familiar with the exchange, Ryan argued that the House would need those deadlines as “leverage” for delaying the health-care law’s individual mandate and adding a “conscience clause” — allowing employers and insurers to opt out of birth-control coverage if they find it objectionable on moral or religious grounds — and mentioned tax and entitlement goals Ryan had focused on in a recent op-ed in the Wall Street Journal.

    Ryan’s speech appeared only to further rile up the conservative wing of the GOP conference, which has been agitating the shutdown strategy to try to tear apart the health-care law.

The Affordable Care Act stipulates that employers and insurers must provide no-cost contraception coverage as part of their health care plans and exempts churches and religious nonprofits that primarily employ people of the same faith from the requirement. In a compromise between Catholic groups and the White House, religiously affiliated colleges, universities, and hospitals that wish to avoid providing birth control can also opt out of offering the benefits, while their employees receive contraception coverage at no additional cost sharing directly from the insurer.

Republicans, however, are not satisfied with the accommodation and have tried to expand the so-called conscience clause, permitting any employer or insurance plan to exclude health services, no matter how essential, from coverage if they morally object to it.

In the last week of budget negotiations, some in the GOP have walked back their demand to fully defund the Affordable Care Act and have instead offered relatively small changes to the Affordable Care Act. But Senate Majority Leader Harry Reid (D-NV), who is now leading the negotiations with Sen. Mitch McConnell (R-KY) and the White House, insists that changes to the health care law are off the table.

By all means let's have a “conscience clause” for everything: you're vegetarian, then using the conservative view on conscience you can deny your employees that part of their paycheck they spend on meat. If you are a catholic employer you can pay your Protestant and Jewish employees less because their religion is morally objectionable. According to conservative "conscience" if you do not approve of drinking beer, you can refuse to insure anyone who drinks beer. When conservatives say they're for "personal "freedom" they're just joking. What they believe in is the freedom to impose every weirdo freaky thing they believe in on everyone else - kind of like the Communist party in China or the rulers of Iran.

Saturday, October 12, 2013

Google's motto used to be do no evil, now they have joined evil central, ALEC














Google's motto used to be do no evil, now they have joined evil central ALEC
Quietly, Google has joined ALEC -- the American Legislative Exchange Council -- the shadowy corporate alliance that pushes odious laws through state legislatures.

In the process, Google has signed onto an organization that promotes such regressive measures as tax cuts for tobacco companies, school privatization to help for-profit education firms, repeal of state taxes for the wealthy and opposition to renewable energy disliked by oil companies.

ALEC’s reactionary efforts -- thoroughly documented by the Center for Media and Democracy -- are shameful assaults on democratic principles. And Google is now among the hundreds of companies in ALEC. Many people who’ve admired Google are now wondering: how could this be?

Well, in his recent book “Digital Disconnect: How Capitalism Is Turning the Internet Against Democracy,” Robert W. McChesney provides vital context. “It is true that with the advent of the Internet many of the successful giants -- Apple and Google come to mind -- were begun by idealists who may have been uncertain whether they really wanted to be old-fashioned capitalists,” he writes. “The system in short order has whipped them into shape.”

McChesney adds: “Any qualms about privacy, commercialism, avoiding taxes, or paying low wages to Third World factory workers were quickly forgotten. It is not that the managers are particularly bad and greedy people -- indeed their individual moral makeup is mostly irrelevant -- but rather that the system sharply rewards some types of behavior and penalizes other types of behavior so that people either get with the program and internalize the necessary values or they fail.”

Google has widely mythologized itself as some kind of humanistic techno-pioneer. Obscured in a fog of digital legend is the agenda that more than ever is transfixed with maximizing profits while capitalizing on anti-democratic leverage of corporate power. Google’s involvement in ALEC is consistent with the company’s mega-business model that relentlessly exploits rigorous data-mining of emails, online searches and so much more.

Yet image-conscious companies can be skittish about public pressure. That helps to explain why dozens of firms withdrew from ALEC during the last year.

A few days ago -- when my colleagues at RootsAction.org sent out an email alert about news of ALEC’s connection with Google as well as with Facebook and Yelp -- more than 25,000 people quickly signed a petition urging those companies to “stop funding ALEC.” Several thousand of the petition signers added comments that can be read online along with the petition.

Those comments reflect widening comprehension of Google and the significance of its alignment with ALEC. Here’s a sampling:

“I expected better. Maybe that was naive.”  James C., San Jose, CA

“What happened to your big pledge? ‘Don't be evil’? Guess it was just words...”  Lois W., Sun City, AZ

“Better check your definition of EVIL -- look it up on Google…”  Armando A., Vista, CA

“Please don't fund tyranny. You were supposed to be one of the good guys.”  Ernest W., Easthampton, MA

“Your credibility is fading associating with this kind of scum.”  John B., Easton, CT

 “You are subverting the wishes of your clients/users while undermining democracy.”  Vincent G., Sioux Falls, SD

“Shame on you. Think about what the majority of your users want instead of the ‘rich’ guys.”  Karen B., Westminster, CO

For those who are not familiar with ALEC (American Legislative Exchange Council) these are some starter articles, ALEC Exposed ( they are a militant proto-fascist anti-American organization that truly hates democracy) and they promote the control of the economy by elite plutocrats and the personal lives of Americans, Conservative Nonprofit Acts as a Stealth Business Lobbyist.

Thursday, October 10, 2013

Three Things Patriotic Americans Should Know About The Government Shut-down















Three Things Patriotic Americans Should Know About The Government Shut-down

1. Conservative Money from radical anti-American conservative groups is behind the shut-down. There is no blame to spread around, conservative Republicans are completely responsible for the shut-down and any consequences suffered by any American from park visitors to families of veterans killed in action, The Money Behind the Shutdown Crisis

Representative Aaron Schock is a conservative Republican from Illinois, but not conservative enough for the hard-right activist group Club for Growth, which is seeking someone to run against him in next year’s primary.

His crime? In 2011, he voted to increase the debt ceiling, and, in 2012, he voted for a stopgap spending bill that prevented a government shutdown. In neither case did he demand the defunding of health care reform.

Club for Growth and other extremist groups consider a record like his an unforgivable failure, and they are raising and spending millions to make sure that no Republicans will take similar positions in the next few weeks when the fiscal year ends and the debt limit expires.

If you’re wondering why so many House Republicans seem to believe they can force President Obama to accept a “defunding” of the health care reform law by threatening a government shutdown or a default, it’s because these groups have promised to inflict political pain on any Republican official who doesn’t go along.

Heritage Action and the Senate Conservatives Fund have each released scorecards showing which lawmakers have pledged to “defund Obamacare.”

2. Conservative Republicans have been planning the shut-down for months

Shortly after President Obama started his second term, a loose-knit coalition of conservative activists led by former Attorney General Edwin Meese III gathered in the capital to plot strategy. Their push to repeal Mr. Obama’s health care law was going nowhere, and they desperately needed a new plan.

Out of that session, held one morning in a location the members insist on keeping secret, came a little-noticed “blueprint to defunding Obamacare,” signed by Mr. Meese and leaders of more than three dozen conservative groups.

It articulated a take-no-prisoners legislative strategy that had long percolated in conservative circles: that Republicans could derail the health care overhaul if conservative lawmakers were willing to push fellow Republicans — including their cautious leaders — into cutting off financing for the entire federal government.

“We felt very strongly at the start of this year that the House needed to use the power of the purse,” said one coalition member, Michael A. Needham, who runs Heritage Action for America, the political arm of the Heritage Foundation. “At least at Heritage Action, we felt very strongly from the start that this was a fight that we were going to pick.”

Last week the country witnessed the fallout from that strategy: a standoff that has shuttered much of the federal bureaucracy and unsettled the nation.

To many Americans, the shutdown came out of nowhere. But interviews with a wide array of conservatives show that the confrontation that precipitated the crisis was the outgrowth of a long-running effort to undo the law, the Affordable Care Act, since its passage in 2010 — waged by a galaxy of conservative groups with more money, organized tactics and interconnections than is commonly known.

With polls showing Americans deeply divided over the law, conservatives believe that the public is behind them. Although the law’s opponents say that shutting down the government was not their objective, the activists anticipated that a shutdown could occur — and worked with members of the Tea Party caucus in Congress who were excited about drawing a red line against a law they despise.

A defunding “tool kit” created in early September included talking points for the question, “What happens when you shut down the government and you are blamed for it?” The suggested answer was the one House Republicans give today: “We are simply calling to fund the entire government except for the Affordable Care Act/Obamacare.”

The current budget brinkmanship is just the latest development in a well-financed, broad-based assault on the health law, Mr. Obama’s signature legislative initiative. Groups like Tea Party Patriots, Americans for Prosperity and FreedomWorks are all immersed in the fight, as is Club for Growth, a business-backed nonprofit organization. Some, like Generation Opportunity and Young Americans for Liberty, both aimed at young adults, are upstarts. Heritage Action is new, too, founded in 2010 to advance the policy prescriptions of its sister group, the Heritage Foundation.

The billionaire Koch brothers, Charles and David, have been deeply involved with financing the overall effort. A group linked to the Kochs, Freedom Partners Chamber of Commerce, disbursed more than $200 million last year to nonprofit organizations involved in the fight. Included was $5 million to Generation Opportunity, which created a buzz last month with an Internet advertisement showing a menacing Uncle Sam figure popping up between a woman’s legs during a gynecological exam.

The Kochs and Freedom Partners Chamber of Commerce want to mold the USA into something that resembles feudal lordships, with average American workers earning slave wages, powerless and without health care insurance. That is how they define freedom, a USA that looks like a few feudal lords having all the power, throwing the concept of government by and for the people in the trash.

3. Conservative Republicans claim they are acting out of principles, that the deficit is out of hand. That is a baldfaced, shameless lie, Obama has done a remarkable job of getting the debts George Bush and conservatives ran up ( see chart at top) under control, False Equivalence That Leans on Public Opinion Is Still False Equivalence. Here's a fact: The deficit is falling. Here's another fact: Americans don't know the deficit is falling.

Tuesday, October 1, 2013

Watch Out Patriots, The Conservative Wall Street Plutocrats Are Coming After Your Pension











Watch Out Patriots, The Conservative Wall Street Plutocrats Are Coming After Your Pension
Lips are smacking on Wall Street. Today’s tasty treat? The pensions of hard-working people across America. Financial hustlers have been working overtime to convince the population that we are in the midst of an “unfunded liability crisis” in which states and cities can no longer afford to pay pensions to public workers. Here’s the truth: Wall Street predators have had their hands in the pension cookie jar for decades, and now they’re poised to gobble up the retirements of teachers and firefighters in yet another orgy of greed.

Unknown to much of the public, Wall Street has been soaking state and municipal coffers with derivatives schemes and various frauds for years [3]. As Alexander Arapoglou and Jerri-Lynn Scofield have explained, not only have Wall Street banks screwed public finances with fancy credit default swaps and other "innovative" financial products that blow up in the faces of cities and states, they have also been engaged in widespread frauds that squeeze pension yields. This happened in the LIBOR rate-rigging scandal [4], in which big banks were found to be manipulating interest rates, which has resulted in lower returns on pension fund investments and has caused shortfalls in pension plans. The lack of actions from authorities means this kind of hustling will surely continue.

Rolling Stone’s Matt Taibbi has just published an article [5] outlining how this gigantic heist is going down. While Wall Street has been on its scam-a-licious rampage, no-good politicians have been taking taxpayer money meant for pensions and spending it on whatever they wanted, depleting funds. (This is actually securities fraud, but the nearly toothless SEC has barely lifted a finger to address it.) Even so, pensions were still in fairly decent shape when the crash of 2008 came and wrecked budgets across America. The Wall Street-driven financial crisis crushed state and local revenues, and the financiers decided this was the perfect moment to dive in for yet another helping of public money by seizing control of public pensions.

In Taibbi’s colorful words: “This is the third act in an improbable triple-fucking of ordinary people that Wall Street is seeking to pull off as a shocker epilogue to the crisis era.”

Wall Street has plenty of politicians in its pockets to grease the wheels. Taibbi hones in on the notorious example of Rhode Island treasurer Gina Raimondo, a former venture capitalist who made the war against pensions her raison d’etre and handed over a billion in pension funds to hedge funds that could charge the strapped state boatloads of hidden fees to manage them. Firms like Goldman Sachs and Bain Capital, along with predators like billionaire John Arnolds, formerly of Enron, are overwhelmed with joy and have filled Raimondo’s coffers for a 2014 gubernatorial run. They know a good thing when they see it.

Wall Street’s PR message? The country’s financial woes were the fault of hard-working elementary school teachers and cops. It’s an audacious, shockingly cynical lie, but with enough money thrown behind it, the lie has spread like a cancer through the media and the political world. Rapacious bankers have successfully pitted private sector workers who have been losing their pensions against public sector folks who were still hanging on to theirs—a tried and true divide-and-conquer tactic that means big money for criminal banksters.

The villains who have helped spread this lie include the folks at Pew Charitable Trusts, an organization known for its centrism and number-crunching. Starting in 2007, Pew started rolling out studies suggesting that pensions were unsustainable, and found an eager accomplice in the form of noxious billionaire John Arnold, a right-winger and former Enron commodities trader who, as Taibbi reports, was “helping himself to an $8 million bonus while the company's pension fund was vaporizing.”

Arnold created a foundation named after himself to focus on “reforming” pensions, and got some big-name Republicans and Tea Partiers, like Dick Armey and Orrin Hatch, to get the game going. “Arnold and Pew struck up a relationship,” writes Taibbi, “and both have since been proselytizing pension reform all over America, including California, Florida, Kansas, Arizona, Kentucky and Montana.” Over and over, they cited an “unfunded liability crisis” conveniently overlooking the glaring fact that the financial crisis and various Wall Street investment schemes are the reason states and cities are having a hard time paying workers what they were owed. They pretend the problem is that worker pensions are too expensive—a big fat whopper that blames the victims of Wall Street’s own shenanigans.

Meanwhile, hedge funds continue to take over state pension funds with guarantees that their fees and hustling will be kept hidden from the public, all the while delivering underperforming returns on shitty investments. (Now it becomes clear why Wall Street had a massive freak-out at the idea that Eliot Spitzer, who understands their tricks, was nearly put in charge of managing New York City’s pensions in his recent run for comptroller.)

As Taibbi correctly concludes, the "unfunded liability" is largely a fiction. There are legitimate issues with pensions, “but the idea that these benefit packages are causing the fiscal crises in our states is almost entirely a fabrication crafted by the very people who actually caused the problem.”

And let’s just add a final twist to this tortuous story: Even if you’re not a public sector worker, Wall Street is determined to get its hands on your retirement, too, and it has got politicians in Washington, including President Obama, talking about cuts to Social Security [6] in the name of a phony debt ceiling crisis. It's the wet dream of Wall Street to weaken Social Security and take hold of American retirement money so that scam artists can charge outrageous fees and continue their rampage of thievery against people who work hard serving their communities and simply want to retire with some modicum of dignity.

To be fair president Obama has offered the possibility of making future increase in Social Security tied to an inflation mechanism called chained  CPI. While probably not a good idea since it fails to take into account prices for some items that cannot be bought at discount or have generic substitutes, it is not thief. The rest is the usual story - anything, any kind of greed, abhorrent behavior is OK for Wall Street because they're doing it in the name of capitalism. They're giving capitalism a really bad reputation at this point since it seems to mean stealing from the middle-class and working poor to give to millionaires..