This is a Democratic Adviser?

I have to admit to being with Digby on this one.   It’s getting more obvious to me that this Democratic Administration is going after our Social Security benefits with gusto.  You may recall that Peter Orzag was the Obama Budget Director and is now one of the major economic advisers to the President.  This contribution to the NYT is not the first flare to be fired, but it is a distinctly blinding one.

So, first Orzag admits that Social Security is not a federal deficit problem. You would think he’d end with that.  Social Security is an off budget program and it’s self funding and managing.  That’s the deal.  People pay for the benefits and they expect them.  It’s a third rail of politics and you’d think after Dubya’s adventures into handing the trust fund to Wall Street that would be all she wrote.  But, it’s not.  (Emphasis is mine on this.)

So it would be desirable to put the system on sounder financial footing. And that is precisely what the co-chairmen of President Obama’s bipartisan commission on reducing the national debt have bravely proposed to do. It’s too bad their proposal has been greeted with so much criticism, especially from progressives — who really should look at it as an opportunity to fix Social Security without privatizing it. Although the plan leans too much on future benefit reductions and not enough on revenue increases, it still offers a good starting point for reform.

The main flaw in the proposed Social Security plan is that it relies too little on revenue increases and too much on future benefit reductions. A reasonable objective would be a 50-50 balance between changes in benefits and changes in revenues. But the way to bring reform into better proportion is to adjust the components of this proposal, not to fundamentally remodel it.

Alrighty, so let’s first IGNORE the fact that the cat food commission had no real business sticking its nose into Social Security because it’s charter said it was to go after the Federal Deficit.  And, as Orzag has stated, Social Security is NO contributor to that deficit.

So, here’s where I agree with Digby.

I can hardly believe anyone of his stature could argue this nonsense. Orszag agrees that SS does not contribute to the long term deficit and yet is trying to convince us that that the Deficit Commission draft just put it on the table anyway, apparently out of a surfeit of progressive idealism. Huh? Moreover, he also thinks it makes sense to jump right on the third rail in American politics because it would be desirable” to do something about a potential future problem — when we are in the middle of an epic economic shitstorm with stubborn 10% unemployment and a banking and housing crisis that shows no sign of abating.

Is he ignorant of the fact that most people in this country are convinced — mainly because they’re being told it every single day by every politician, talking head and gasbag — that “entitlements” are destroying the economy and the future of the United States? The idea that social security cuts could buy the administration a chance for more stimulus is delusional.

Yup, delusional. And get this closer …

The White House has been handed a highly progressive reform plan for Social Security that could attract Republican support as well.

If this is progressive, I want to be known as something completely different.

This just seems to be the start of the swansong for the program.  BostonBoomer sent me this call for liberals to get on board with similar clarion calls today. It’s from USN and John Farrell.

Okay, my liberal friends. On Friday I explained why the proposals of the Simpson-Bowles commission should be welcomed, and put on the bargaining table by conservatives. Today I will argue, despite what Paul Krugman says, that there’s good stuff for liberals too.

Remember, first and foremost, that this is a starting point. You don’t have to buy into everything to keep the conversation going. And beware misinformation.

You know, this all seems to assume that we don’t have Democratic pols that make Faustian bargains with themselves before they even start dealing with the Republicans.  I have to admit that I’m with Krugman on this one too.

Right at the beginning of his administration, what Mr. Obama needed to do, above all, was fight for an economic plan commensurate with the scale of the crisis. Instead, he negotiated with himself before he ever got around to negotiating with Congress, proposing a plan that was clearly, grossly inadequate — then allowed that plan to be scaled back even further without protest. And the failure to act forcefully on the economy, more than anything else, accounts for the midterm “shellacking.”

You expect any one to fight for what’s right in Social Security given recent history like Krugman identifies?  I don’t. No hope or expectation of it at all.  After all, a major Presidential Advisor just call Allan Simpson brave instead of being labeled the crazy old coot he is.


Status Quo redux

It looks like the House Democrats have decided to stick with their leaders and then just add another.  In an interesting move, there’s now going to be a minority WHIP and something else. No one knows what the something else is but we know the something else person is Congressman Clyburn.   Each of these three represent some Democratic base.   WAPO has some of the details, but not that much.    Hoyer is still going to be whipping the blue dog contingent.

Trying to resolve a dispute among her top lieutenants, House Speaker Nancy Pelosi (D-Calif.) on Friday night indirectly backed her longtime adversary, Rep. Steny H. Hoyer (D-Md.), to continue serving as her chief deputy.

Pelosi’s move came in an unusual statement late Friday night that endorsed Rep. James E. Clyburn (D-S.C.) for the No. 3 post in the House Democratic leadership. Rather than endorse Clyburn for the current No. 3 position of caucus chairman, she plans to create a new, undefined leadership position for him, a leadership source explained Saturday.

Hoyer, the current majority leader, and Clyburn, the majority whip, are vying to be elected minority whip in the next Congress when House Democrats vote Wednesday. That position will rank second behind Pelosi, who is expected to be minority leader.

Pelosi’s statement amounted to an endorsement of keeping her leadership team intact, rather than trying to purify ranks for the party’s liberals, as some lawmakers and activists have urged.

To me, this is just another Democratic Party attempt to be all things to all parties and further splinter every one into segments.  Since Clyburn’s responsibilities haven’t really been announced, what duties will they give him?  His title–according to Politico–is Assistant Leader.  How does Hoyer feel about  what might seem a demotion yet he’s essential got the same title?  Or, will his entire job stay the same but he just gets called Number 3 instead of Number 2.  Rep. John Larson (Conn.) stays as Democratic Caucus chairman which is now the number four leadership position.  Weird.  Seems like they’re splitting one baby four ways, but maybe that’s just  me.  It is certainly seems apt for the completely splintered Democratic Party. I’ll give them that.


KO for KO?

Two breaking news stories worth front paging are sweeping blog headlines.

First, Keith Olbermann has been suspended indefinitely without pay at MSNBC for donationg to three Democratic candidates during the last election. This is from Politico.

Olbermann made campaign contributions to two Arizona members of Congress and failed Kentucky Senate candidate Jack Conway ahead of Tuesday’s election.

Olbermann, who acknowledged the contributions in a statement to POLITICO, made the maximum legal donations of $2,400 apiece to Conway and to Arizona Reps. Raul Grijalva and Gabrielle Giffords. He donated to the Arizona pair on Oct. 28 — the same day that Grijalva appeared as a guest on Olbermann’s “Countdown” show.

NBC has a rule against employees contributing to political campaigns, and a wide range of news organizations prohibit political contributions — considering it a breach of journalistic independence to contribute to the candidates they cover.

Other links:

CBS

Mediaite

The second breaking news story of interest is that Nancy Pelosi will run for Minority Leader.  This is from Ryan Griffin at Huffpo. Pelosi  Tweeted the announcement.

House Speaker Nancy Pelosi (D-Calif.) will make a bid to be Democratic minority leader, she announced Friday via Twitter. “Driven by the urgency of creating jobs & protecting #hcr, #wsr, Social Security & Medicare, I am running for Dem Leader,” she tweeted.

Other Links:

CNN

Politico

In related news, Rep. Van Hollen is leaving his chairmanship at the DCCC.


Disturbing if True

Bill Clinton pushed Kendrick Meek to quit the Florida Senate race  (via politico).

Bill Clinton sought to persuade Rep. Kendrick Meek to drop out of the race for Senate during a trip to Florida last week — and nearly succeeded.

Meek agreed — twice — to drop out and endorse Gov. Charlie Crist’s independent bid in a last-ditch effort to stop Marco Rubio, the Republican nominee who stands on the cusp of national stardom.

I had heard rumors the White House was pushing for this but was unaware that former President Clinton was involved.  Meek may be the underdog in the race, but pushing Crist to block Rubio is over the top, imho.  They’ve been doing this for Lincoln Chaffee’s gubenatorial bid  also. Caprio’s losing steam now since he told POTUS to ‘shove it’ and the independent Chaffee’s embracing Obama in TV ads.

Exactly what is going on here?


The Blame Game

20090807-181851-pic-80916081_t756It’s amazing to me that so many people can get so worked up about one mid level bureaucrat in the White House who is a repentant communist and says he accidentally signed a 9-11 truther petition thinking it was just a request for more information on what the White House knew prior to those terrorist attacks. Meanwhile, we have a Secretary Treasury whose taken gifts from banks, underpaid his taxes by more money than I personally see in years, and seems completely captured by Wall Street and unable to draft decent regulation containing their gambling addiction. Then, there is the fact that I continually write about the same people in Wall Street and the Investment Banking community cooking up death derivatives and going about their merry way, subsidized, unpunished, and totally unrepentant over causing the worst financial crisis since 1929.

I just have to scream: WTF is wrong with you people? Why are we punishing some one for his venture into social activism while completely ignoring people that are making off with our national treasure and the lifeblood of our mixed market economy? These are folks that drove your house prices down, ruined your pension plans and your 401k, and are taking bailouts by the billions. Where’s the sense of balance? How does this resemble justice?

Here’s a REALLY good example from today’s NY Times. Written by Gretchen Morgensen, it’s called “Fair Game-They Left Fannie Mae, but we got the Legal Bills.” It’s all about the government having to bail out Fannie Mae because of the extremely bad management practices, and yes, illegal accounting practices that stuck us with a huge mess and an even bigger bill. Morgensen interviews Representative Alan Grayson, a Florida Democrat, who is one congress critter doing his oversight responsibility while others wallow in the political contributions from their regulatees.

With all the turmoil of the financial crisis, you may have forgotten about the book-cooking that went on at Fannie Mae. Government inquiries found that between 1998 and 2004, senior executives at Fannie manipulated its results to hit earnings targets and generate $115 million in bonus compensation. Fannie had to restate its financial results by $6.3 billion.

Almost two years later, in 2006, Fannie’s regulator concluded an investigation of the accounting with a scathing report. “The conduct of Mr. Raines, chief financial officer J. Timothy Howard, and other members of the inner circle of senior executives at Fannie Mae was inconsistent with the values of responsibility, accountability, and integrity,” it said.

That year, the government sued Mr. Raines, Mr. Howard and Leanne Spencer, Fannie’s former controller, seeking $100 million in fines and $115 million in restitution from bonuses the government contended were not earned. Without admitting wrongdoing, Mr. Raines, Mr. Howard and Ms. Spencer paid $31.4 million in 2008 to settle the litigation.

When these top executives left Fannie, the company was obligated to cover the legal costs associated with shareholder suits brought against them in the wake of the accounting scandal.

Now those costs are ours. Between Sept. 6, 2008, and July 21, we taxpayers spent $2.43 million to defend Mr. Raines, $1.35 million for Mr. Howard, and $2.52 million to defend Ms. Spencer.

“I cannot see the justification of people who led these organizations into insolvency getting a free ride,” Mr. Grayson said. “It goes right to the heart of what people find most disturbing in this situation — the absolute lack of justice.”

What’s the difference between getting justice and getting retribution? Well, in terms of missing it by light years, compare the treatment between social activist Van Jones and practitioners of accounting malpractice like Raines, Howard and Spencer (or tax dodgers who get gifts from Wall Street Bankers like our SOT). It’s the difference between a slap on the wrist and a slap across the face.

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