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Category Archives: Obama administration

What Hath 9/11 Wrought?

11 Saturday Sep 2010

Posted by Craig in Bill of Rights, Constitution, Justice Department, Obama administration, terrorism, torture, war on terror

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ACLU, Andrew Sullivan, Bush administration, Daily Dish, due process, equal justice, Executive Branch, habeas corpus, Judicial Branch, national security, Ninth Circuit Court of Appeals, Obama administration, President Obama, rendition, rule of law, September 11, state secrets, The Day That Changed America, torture, war crimes

September 11, 2001 has been dubbed ‘The Day That Changed America’ and indeed it did. Indeed it did—and not for the better. It changed America from the land of the free and the home of the brave to the land of the increasingly less free and the home of ‘do whatever it takes to keep us safe.’ It changed us from a country governed by the founding principles of due process, equal justice, and the rule of law to a country where indefinite detention without charges or trials are an accepted practice. Where the Executive Branch, aided and abetted by the Judicial Branch, can be exempted from accountability from what were once considered war crimes simply by invoking the vague and all-encompassing claims of “state secrets” and “national security interests.”

These changes were exemplified in a decision by the Ninth Circuit Court of Appeals on Wednesday when it dismissed a suit by five men who allege they were imprisoned and tortured under the Bush administration’s rendition program. The decision was also considered a “major victory” for the Obama administration, who appealed an earlier ruling which said the suit should go forward.

“In a 6-5 ruling issued this afternoon, the 9th Circuit Court of Appeals handed the Obama administration a major victory in its efforts to shield Bush crimes from judicial review, when the court upheld the Obama DOJ’s argument that Bush’s rendition program, used to send victims to be tortured, are “state secrets” and its legality thus cannot be adjudicated by courts.  The Obama DOJ had appealed to the full 9th Circuit from last year’s ruling by a 3-judge panel which rejected the “state secrets” argument and held that it cannot be used as a weapon to shield the Executive Branch from allegations in this case that it broke the law.”

Not that this is any shift in direction. It’s just the latest effort by the current administration to continue, and in some cases expand upon, the policies of the former administration—policies candidate Obama denounced but President Obama embraces:

“Among other policies, the Obama national security team has also authorized the C.I.A. to try to kill a United States citizen suspected of terrorism ties, blocked efforts by detainees in Afghanistan to bring habeas corpus lawsuits challenging the basis for their imprisonment without trial, and continued the C.I.A.’s so-called extraordinary rendition program of prisoner transfers — though the administration has forbidden torture and says it seeks assurances from other countries that detainees will not be mistreated.”

The reaction to the decision from the ACLU:

“This is a sad day not only for the torture victims whose attempt to seek justice has been extinguished, but for all Americans who care about the rule of law and our nation’s reputation in the world. To date, not a single victim of the Bush administration’s torture program has had his day in court. If today’s decision is allowed to stand, the United States will have closed its courtroom doors to torture victims while providing complete immunity to their torturers.”

Andrew Sullivan at The Daily Dish:

“The case yesterday is particularly egregious because it forbade a day in court for torture victims even if only non-classified evidence was used. Think of that for a minute. It shreds any argument that national security is in any way at stake here. It’s definitionally not protection of any state secret if all that is relied upon is evidence that is not secret. And so this doctrine has been invoked by Obama not to protect national security but to protect war criminals from the law. There is no other possible interpretation.

The Bush executive is therefore now a part of the American system of government, a system that increasingly bears no resemblance to the constitutional limits allegedly placed upon it, and with a judiciary so co-opted by the executive it came up with this ruling yesterday. Obama, more than anyone, now bears responsibility for that. We had a chance to draw a line. We had a chance to do the right thing. But Obama has vigorously denied us the chance even for minimal accountability for war crimes that smell to heaven.

And this leviathan moves on, its budget never declining, its reach never lessening, its power now emboldened by the knowledge that this republic will never check it, never inspect it, never hold its miscreants responsible for anything, unless they are wretched scapegoats merely following orders from the unassailable above them.”

To those who would “look forward” and give the Obama administration a pass here, ask yourself a few questions. If it were the Bush administration would you be so lenient? Let’s be very honest. If one administration is guilty of authorizing and condoning war crimes, is not the following administration, as evidenced by its actions, guilty of being an accessory to the commission of war crimes? I don’t see how any other conclusion can be reached.

Another thing to consider for those who may trust this far-reaching and unchecked expansion of Executive Branch power in the hands of President Obama—the power doesn’t leave with him when he leaves office. Would you trust it in the hands of President Palin? Think about it.

First they came for the suspected terrorists, and I didn’t care because I wasn’t a suspected terrorist………

It’s 1938 All Over Again

07 Tuesday Sep 2010

Posted by Craig in Congress, economy, Obama administration, Politics

≈ 1 Comment

Tags

1938, cut taxes, Democrats, Financial Crisis, Gallup polling, House, increase spending, Obama administration

Any of this sound familiar?

“The U.S. economy has been crippled by a financial crisis. The president’s policies have limited the damage, but they were too cautious, and unemployment remains disastrously high. More action is clearly needed. Yet the public has soured on government activism, and seems poised to deal Democrats a severe defeat in the midterm elections.

[…]

Gallup polling… [a]sked whether government spending should be increased to fight the slump, 63 percent of those polled said no. Asked whether it would be better to increase spending or to cut business taxes, only 15 percent favored spending; 63 percent favored tax cuts.”

The result?

“And the…election was a disaster for the Democrats, who lost 70 seats in the House and seven in the Senate.”

The year was 1938. The president was Franklin Delano Roosevelt. Now here we are again:

“More stimulus is desperately needed, but in the public’s eyes the failure of the initial program to deliver a convincing recovery has discredited government action to create jobs.”

So what is the Obama administration proposing as a solution for a stagnant economy and insufficient job creation? Tax cuts, tax cuts, and more tax cuts:

“With just two months until the November elections, the White House is seriously weighing a package of business tax breaks – potentially worth hundreds of billions of dollars – to spur hiring and combat Republican charges that Democratic tax policies hurt small businesses, according to people with knowledge of the deliberations.”

Good, sound political strategery—let the opposition define the terms of engagement and play into their theme that tax cuts are the prescription for whatever ails the economy. And speaking of political strategery, how the hell is anybody still unclear on this subject?

“If administration officials can agree on a policy path, it is not clear that it would be approved in the current environment on Capitol Hill.”

Aaaaarrrggghhhh!!

Krugman concludes:

“But always remember: this slump can be cured. All it will take is a little bit of intellectual clarity, and a lot of political will. Here’s hoping we find those virtues in the not too distant future.”

That’ll be the day.

Is 9% Unemployment the New Norm?

28 Wednesday Jul 2010

Posted by Craig in economy, Obama, Obama administration, Politics, Unemployment

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$2 trillion, 2012, 27 weeks or more, 9% or higher, Chamber of Commerce, corporations, economy, long-term unemployed, Meet The Press, onerous regulations, private investment, profits, recovered sufficiently, Republican Congress, Timothy Geithner, unemployment, White House

Considering this:

“Nearly half of the unemployed—45.9%—have been out of work longer than six months, more than at any time since the Labor Department began keeping track in 1948…Overall, seven million Americans have been looking for work for 27 weeks or more, and most of them—4.7 million—have been out of work for a year or more.”

And this:


How do you get to this?:

“Treasury Secretary Timothy Geithner said the economy has now recovered sufficiently for government to begin to make way for private business investment.

Mr. Geithner’s comments on Sunday, which echo previous sentiments expressed by President Barack Obama, reflect a turning point in the government response to the worst economic downturn since the Great Depression, a period marked by deep federal intervention in the financial, housing, auto and other industries.

“We need to make that transition now to a recovery led by private investment,” Mr. Geithner said Sunday on NBC’s “Meet the Press.”

Led by private investment? Corporations are sitting on nearly $2 trillion of profits now and unemployment is still hovering around 10%. Just when is this private investment going to kick in and start hiring?

“A survey last month of more than 1,000 chief financial officers by Duke University and CFO magazine showed that nearly 60 percent of those executives don’t expect to bring their employment back to pre-recession levels until 2012 or later — even though they’re projecting a 12 percent rise in earnings and a 9 percent boost in capital spending over the next year.”

“2012 or later” huh? Something else significant is scheduled for 2012, isn’t it? Conspicuously convenient timing for the unemployment picture to start improving if you ask me.

Why aren’t corporations hiring now? The Chamber of Commerce claims it’s because of the “onerous regulations” being placed on them by the Obama administration. Now if one had a conspiratorial mind one might think that big business wants to keep the unemployment numbers high through 2012 so that they get a Republican Congress this year to be followed by a Republican president in 2012 who would cancel all those “onerous regulations.” One might think that, and one would be right, in my opinion.

Sadly, the administration seems to be willing to accept 9% or higher as the new norm:

“The White House said Friday it expects that unemployment will stay at or above 9% until 2012, but at the same time forecast that the economy will grow by at least 4% in 2011 and 2012.”

To whom it may concern at the White House:

If you seriously think that the economy has “recovered sufficiently” so that the government can get out of the way and let private investment take over on job creation; if you’re willing to accept unemployment at 9% or above through 2012; schedule the moving vans for the morning of January 20, 2013.

Fear of Glenn Beck Behind Shirley Sherrod’s Firing

21 Wednesday Jul 2010

Posted by Craig in Conservatives, Fox News, Obama administration, Politics, Racism

≈ 1 Comment

Tags

ACORN, Agriculture Secretary Tom Vilsack, Andrew Breitbart, Cheryl Cook, CNN, Glenn Beck, Shirley Sherrod, USDA, White House, zero tolerance

Is this what the powers that be in Washington have sunk to?:

“Sherrod told CNN that the White House urged her to resign Monday afternoon after the video clip surfaced.

“They harassed me,” she said. “I got three calls from the White House. At one point they asked me to pull over to the side of the road and do it because you are going to be on Glenn Beck tonight.

[…]

Sherrod said the White House calls came from Cheryl Cook, USDA deputy undersecretary for rural development. “The administration was not interested in hearing the truth. They didn’t want to hear the truth.”

And this? From Cook’s boss, Agriculture Secretary Tom Vilsack

“The controversy surrounding her comments would create situations where her decisions, rightly or wrongly, would be called into question making it difficult for her to bring jobs to Georgia…Our policy is clear. There is zero tolerance for discrimination at USDA and we strongly condemn any act of discrimination against any person.”

So federal government employees like Shirley Sherrod can be smeared by edited video tapes sent by an anonymous source to a well-known right-wing purveyor of doctored video tapes (see ACORN) Andrew Breitbart. They can lose their jobs without one shred of evidence or one second of investigation into whether or not the accusations are true. All because of adherence to a stupid-ass zero tolerance policy (as are all zero tolerance policies) where right or wrong doesn’t matter, just make it go away so it doesn’t show up on the Glenn Beck Histrionics Hour? What a bunch of weak-kneed, pants-wetting cowards.

Also, regarding this from the agriculture secretary; I may have been born at night, but it wasn’t last night.

“Agriculture Secretary Tom Vilsack this afternoon took responsibility for firing an official, Shirley Sherrod whose appearance on video recalling her behavior toward a white farmer drew charges of racism, and whose immediate firing drew suggestions that the administration had over-reacted to an edited video clip. A White House official told me just now that the White House backs Vilsack’s decision — but that it was Vilsack’s alone. The official said the White House — contrary to the Sherrod’s charge — did not pressure the Department to fire her.”

Bullshit. This high profile of a firing done this quickly isn’t done by a USDA deputy undersecretary or even the Secretary of Agriculture without being run by somebody at 1600 Pennsylvania Avenue.

Shirley Sherrod is owed two things. First and foremost, her job back. Immediately. Secondly,  apologies from everyone involved. Both should come as quickly and as publicly as was her hasty dismissal. Let’s also hope a lesson has been learned here. When Breitbart releases a video and Fox News cranks up their RNC propaganda machine, will somebody please check out the veracity before the condemnations and firings begin?

Why Tim Geithner Opposes Elizabeth Warren as Head of the CFPB

20 Tuesday Jul 2010

Posted by Craig in bailout, economy, financial reform, financial regulation, Obama administration, Politics, too big to fail, Wall Street

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bankers, CFPB, Consumer Financial Protection Bureau, Elizabeth Warren, Hank Paulson, Huffington Post, John Ralston, Larry Summers, President Obama, scheme, TARP, Timothy Geithner, Wall Street

Elizabeth Warren should be a no-brainer as President Obama’s choice to head the newly-created Consumer Financial Protection Bureau (CFPB). She is a long-time advocate for the rights of consumers, the person most responsible for the Bureau’s inclusion in the recently-passed financial reform legislation, and its most notable and vocal supporter. She has this crazy notion that a consumer protection agency should actually…you know…protect consumers against the abusive practices of the big banks.

As chair of the TARP oversight committee Warren regularly clashed with what those banks consider to be in their best interests, as well as those in the administration who make a habit of carrying the banker’s water, namely Treasury Secretary Timothy Geithner. Which is why it wasn’t surprising when Huffington Post reported last week that Geithner opposed Warren’s nomination.

Then came this, a piece by John Talbott (also in the Huffington Post) on Sunday. The reason for the treasury secretary’s opposition:

“The [financial reform] bill has been written to put a great deal of power as to how strongly it is implemented in the hands of its regulators, some of which remain to be chosen. The bank lobby will work incredibly hard to see that Warren, the person most responsible for initiating and fighting for the idea of a consumer financial protection group, is denied the opportunity to head it.

But this is not the only reason that Geithner is opposed to Warren’s nomination. I believe Geithner sees the appointment of Elizabeth Warren as a threat to the very scheme he has utilized to date to hide bank losses, thus keeping the banks solvent and out of bankruptcy court and their existing management teams employed and well-paid.”

The “scheme” to which Talbott refers began with Geithner’s predecessor as Treasury Secretary, Hank Paulson, and is being continued by Geithner and his partner in crime in the Obama administration, Larry Summers. In short it goes like this:

The $700 billion in TARP money was originally supposed to go to get bad loans, the so-called toxic assets, of the bank’s books. Immediately after TARP was passed, Paulson did a 180 and decided to use it as a direct cash infusion into the big banks rather than buying bad loans. (Nothing to do with him being a former Goldman CEO, I’m sure).

That left the banks with trillions of dollars of toxic assets still on the books, where they remain today. Geithner’s plan is for the banks to:

“…earn their way out of their solvency problems over time so the banks are continuing to slowly write off their problem loans but at a rate that will take years, if not decades, to clean up the problem.

And this is where defeat of the nomination of Elizabeth Warren becomes critical for Geithner. For Geithner’s strategy to work, the banks have to find increasing sources of profitability in their business segments to balance out their annual loan loss recognition from their existing bad loans in an environment in which they continue to recognize new losses in prime residential mortgages, commercial real estate lending, sovereign debt investments, bridge loans to private equity groups, leverage buyout lending and credit card defaults.

The banks have made no secret as to where they will find this increase in cash flow. They intend to soak their small retail customers, their consumer and small business borrowers, their credit card holders and their small depositors with increased costs and fees and are continuing many of the bad mortgage practices that led to the crisis

[…]

It is exactly these types of unwarranted fees on small consumers and poorly designed products that Elizabeth Warren will fight against as head of the new consumer finance protection group. And it is why Geithner sees her as so threatening. Unless the banks are allowed to raise fees and charges on their smaller consumer customers, Geithner’s and Summers’ scheme for dealing with the banking crisis by hiding problem loans permanently on the banks’ balance sheets will be exposed for what it is, an attempt at preserving the jobs of current bank executives at the cost of dragging out this recovery needlessly for years in the future.”

After much thought and careful consideration (which took about 1.5 seconds) I have a suggestion for how President Obama can resolve this conflict. Warren’s in, Geithner’s out. Problem solved.

GOP Agenda: Meaningless Generalities and “Going Back”

19 Monday Jul 2010

Posted by Craig in budget, Congress, Conservatives, economy, financial reform, Obama administration, Politics, Republicans

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Tags

David Gregory, Debt Commission, free enterprise system, generalities, Hanes, John Cornyn, Meet The Press, Pete Sessions, Peter King, Republican agenda, ship jobs overseas, specifics

It appears that Republicans are following the advice of Rep. Peter King (R-NY) about laying out their agenda for what they would do should they regain control of the House in the November mid-term elections. On Bill Bennett’s radio program last Thursday, Rep. King said this:

“I don’t think we have to lay out a complete agenda, from top to bottom, because then we would have the national mainstream media jumping on every point trying to make that a campaign issue.”

Yesterday on Meet the Press Rep. Pete Sessions and Sen. John Cornyn, both of  Texas (sigh) continued with that theme. When David Gregory asked Sessions to explain what the GOP would do to cut the deficit, Sessions replied with meaningless generalities like these:

“We need to live within our own means.”

“We need to make that sure we read the bills.”

“We are going to balance the budget.”

“We need to make sure that…we look at all that we are spending in Washington D.C.”

Sessions added something which stood out to me when Gregory pressed him for specifics. “He [Rep. Chris Van Hollen D-MD who remarked earlier about removing tax incentives for employers who ship jobs overseas] wants to diminish employers’ ability to be able to be competitive across the world…We need to go back to the exact same agenda that is empowering the free enterprise system rather than diminishing it.”

“Employers’ ability to be competitive across the world.” For instance Hanes:

“As recently as 2006 when Hanes was spun off from its parent Sara Lee Corporation, the company had 19 plants in the US and Puerto Rico. It currently has seven with one (Forsyth, NC) more scheduled to close by year-end 2010. Hanes now manufactures its wares across 17 plants and production facilities scattered across the Caribbean and Central America (Haiti, El Salvador and Honduras) to South East Asia (Bangladesh, Thailand, Vietnam), Micronesia (Saipan, Marshall Islands), a China manufacturing hub and one plant in Mount Airy, North Carolina.

…two thirds of the growth in earnings for Hanes came as a result of moving its production offshore and from financing activities.

Who benefits? Well management certainly does as do the shareholders. Its stock closed today at $25.97 up 78.3 percent year-over-year. Its CEO, Richard Noll, was paid $5.7 million in 2009. Not bad for a manufacturer of underwear and hosiery. Meanwhile, the company’s average wage in Bangladesh is $0.33 cents an hour. Of its 50,000 employees worldwide, less than ten percent work in the US.”

This is the “free enterprise system” that Sessions and his fellow Republicans want to “empower rather than diminish.” Great for creating jobs in Bangladesh, not so much in America. Not to mention the “go back” remark. There’s the GOP agenda in a nutshell.

Cornyn’s answer to the question was much the same, adding that he wants to wait and see what the debt commission has to say. Way to face up to those tough choices, Sen. Cornyn. Watch:

Vodpod videos no longer available.

Obama and Axelrod’s Mixed Messages

12 Monday Jul 2010

Posted by Craig in Congress, Democrats, economy, Obama, Obama administration, Politics, Republicans

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Tags

Atrios, David Axelrod, DNC, job creation, no desire on Capitol Hill, Paul Krugman, President Obama, speech, This Week, Washington Monthly, White House

To whom it may concern at the White House and the DNC:

If you want to lose the House and possibly the Senate in November, if you want to increase the possibility of the 2 most dreaded words in the English language—President Palin—becoming a reality in 2012, keep the lack of a cohesive message coming. And keep on waiting for the GOP to get on board.

First have President Obama come out on a Thursday with a speech focusing on job creation—saying how we can’t afford to give the keys back to the Republicans because they’re the ones whose policies “gave us the economic crisis” and drove the economy into the ditch. This is called firing up the base for the upcoming mid-term elections. (BTW, mid-term elections are all about turning out the base, and in case you haven’t noticed the Republican base is ready to vote today).

Then have David Axelrod go on This Week on Sunday and say that “there is no great desire on Capitol Hill” for more spending to stimulate the economy and that “we’re hoping we can persuade enough people on the other side of the aisle to put politics aside and join us.”  This makes your base throw up their hands (or just throw up) and say ‘For cryin’ out loud, somebody get a freakin’  clue. The Republicans don’t want anything that resembles economic growth, now or in the next 2 years. When are you guys gonna get it?’

Here are some steps you might want to consider and some advice you might want to listen to. First from Atrios:

“So let’s say Obama’s people have correctly deduced that there’s no chance in hell of getting anything through Congress. They have two basic options. First, they could get on the teevee every day and say, “This is my plan to help. Republicans in Congress won’t pass it.” They could hold rallies in Maine. Allies could run ads. At least people would know who is for and who is against…and just what it was that people are for or against.”

Option two is back off proposals you’ve previously made and have Axelrod get on the teevee and say, “there is some argument for additional spending in the short-run to continue to generate economic activity.”

Paul Krugman adds:

“I have no idea what they’re thinking. It would be one thing if polls suggested a tolerable outcome in November, so that playing it safe could possibly make sense as a political strategy. But that’s not the way it is; and it’s hard to see what possible motivation there is for pulling punches.”

Steve Benen at Washington Monthly:

“My sense is that President Obama really hates — and actively avoids — picking fights he fully expects to lose…The defeat would leave him weaker, exacerbate intra-party tensions, and at the same time signal that the White House lacks confidence in the strength of the economic recovery.

But the current alternative is far worse, especially given the fact that the White House should lack confidence in the strength of the economic recovery. It makes a lot more sense to push an ambitious jobs bill — like, now — invite Republicans to do what they always do, give Democrats something to fight for, and have the debate.

[…]

Yes, Republicans will block any measure intended to improve the economy, and it’s largely too late for a new stimulus effort to boost the economy before November. But it’s still worth having the fight — force the GOP to stand in the way of job creation, and show the public that Democrats are prepared to fight to improve on an unsatisfactory status quo.”

To sum up, you’re quickly approaching (if not already at) ‘nothing to lose’ stage. In sports terminology, this is not the time for basketball’s 4-corner offense or football’s prevent defense. (Long-time Houston fans can tell you how both of those work out, and it ain’t good. See UH–NC State and Oilers vs. Buffalo Bills). For those who don’t follow sports, let’s go with “faint heart never won fair maiden.” And faint heart never kicked the shit out of an obstructionist Republican either. It’s time to go bold and force the other team to re-act to you, not you to them.

Just my $0.02.

The Semantics of Perpetual War

06 Tuesday Jul 2010

Posted by Craig in Afghanistan, Iraq, Obama administration, war on terror

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Afghanistan, combat operations, Iraq, perpetual war, stability operations, withdrawal

I can change my name to Buick and sit in the garage—it doesn’t make me a car. Likewise, whether it’s called “combat operations” or “stability operations” in Iraq—it’s still a war. And leaving 50,000 troops there isn’t a “withdrawal.”

“President Obama has set an August deadline for the end of the combat mission in Iraq…The August deadline might be seen back home as a milestone in the fulfillment of President Obama’s promise to end the war in Iraq, but here it is more complex. American soldiers still find and kill enemy fighters, on their own and in partnership with Iraqi security forces, and will continue to do so after the official end of combat operations.

[…]

What soldiers today would call combat operations — hunting insurgents, joint raids between Iraqi security forces and United States Special Forces to kill or arrest militants — will be called “stability operations.” Post-reduction, the United States military says the focus will be on advising and training Iraqi soldiers, providing security for civilian reconstruction teams and joint counterterrorism missions.

“In practical terms, nothing will change,” said Maj. Gen. Stephen R. Lanza, the top American military spokesman in Iraq. “We are already doing stability operations.”

[…]

“I like to say that in Iraq, the only thing Americans know for certain, is that we know nothing for certain,” said Brett H. McGurk, a former National Security Council official in Iraq and current fellow at the Council on Foreign Relations.

This much IS certain. The end is not in sight for the practice of perpetual war. In Iraq or Afghanistan.

Politicization of the DOJ Hasn’t “Changed”

06 Tuesday Jul 2010

Posted by Craig in Justice Department, Obama, Obama administration, Politics, terrorism, war on terror

≈ Leave a comment

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Alberto Gonzales, Bush, Cheney, Department of Justice, Eric Holder, Pat Leahy, Sept. 11 conspirators, trials, White House

A trip down memory lane:

“Remember the plaintive cries of Democrats and progressives about the wrongful politicization of the Department of Justice by the Bush/Cheney Administration? Remember the stunning chart Sheldon Whitehouse whipped out at a Senate judiciary hearing on Alberto Gonzales’ tenure as AG showing how politicized the hallowed independent prosecutorial discretion of the DOJ had become under Bush, Cheney and Gonzales? The one that Pat Leahy called “the most astounding thing I have seen in 32 years?

That was in late April of 2007, little more than three years ago.”

Fast forward to Sunday (emphasis added):

…the decision on where to hold the high-profile trials of Mohammed and four others accused of being Sept. 11 conspirators has been put on hold and probably will not be made until after November’s midterm elections, according to law enforcement, administration and congressional sources.

In an unusual twist, the matter has been taken out of the hands of the Justice Department officials who usually make prosecutorial decisions and rests entirely with the White House, the sources said.

“It’s a White House call,” said one law enforcement official, who spoke on condition of anonymity to discuss internal deliberations. “We’re all in the dark.”

Attorney General Eric Holder says it ain’t so:

“Holder, at a June 17 news conference, denied any political motive. “The conversations that we are having are ongoing,” he said. “The political thing . . . the fact of the elections, is not a part of the conversations at all.”

And if you’ll buy that…..

Billions for Big Oil, Nothing for the Unemployed

04 Sunday Jul 2010

Posted by Craig in budget, Congress, Deepwater Horizon, economy, Gulf Oil Spill, lobbyists, Obama administration, oil exploration, Politics, special interests, Unemployment

≈ 2 Comments

Tags

Big Oil, BP, lobbyists, New Jersey, oil refineries, Robert Menendez, subsidies, tax breaks, Transocean, unemployment benefits

We can’t afford to extend unemployment benefits, but:

“…an examination of the American tax code indicates that oil production is among the most heavily subsidized businesses, with tax breaks available at virtually every stage of the exploration and extraction process.”

Take, for instance, two of the major players in the Gulf oil spill—Transocean and BP:

“When the Deepwater Horizon drilling platform set off the worst oil spill at sea in American history, it was flying the flag of the Marshall Islands. Registering there allowed the rig’s owner to significantly reduce its American taxes.

The owner, Transocean, moved its corporate headquarters from Houston to the Cayman Islands in 1999 and then to Switzerland in 2008, maneuvers that also helped it avoid taxes.

At the same time, BP was reaping sizable tax benefits from leasing the rig. According to a letter sent in June to the Senate Finance Committee, the company used a tax break for the oil industry to write off 70 percent of the rent for Deepwater Horizon — a deduction of more than $225,000 a day since the lease began.”

Congress and the Obama administration are working (allegedly) on legislation that would cut $20 billion in oil industry tax breaks. The response from the oil companies? One wrong move and the economy gets it:

“Jack N. Gerard, president of the American Petroleum Institute, warns that any cut in subsidies will cost jobs. “These companies evaluate costs, risks and opportunities across the globe,” he said. “So if the U.S. makes changes in the tax code that discourage drilling in gulf waters, they will go elsewhere and take their jobs with them.”

What are the chances of Congress eliminating these subsidies? Slim and none:

“Efforts to curtail the tax breaks are likely to face fierce opposition in Congress; the oil and natural gas industry has spent $340 million on lobbyists since 2008, according to the nonpartisan Center for Responsive Politics, which monitors political spending.”

An example is Sen. Robert Menendez (D-NJ) who is co-sponsoring the legislation that would end the tax breaks, but:

“While the legislation would cut many incentives over the next decade, it would not touch the tax breaks for oil refineries, many of which have operations and employees in his home state, New Jersey.”

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