Category: Campaign Finance

The Koch Suckers are Flooding the Zone in Wisconsin

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No, I do not mean boots on the ground, the Kochs don’t work that way.

I mean money, and lots of it:

If you want to get a good sense of what’s really happening in the Wisconsin recall wars, keep an eye on the right wing money that’s now flooding into the races, in a last ditch effort to keep the state senate in Republican hands.

Club for Growth Wisconsin has dumped at least $1.5 million into the recall races, according to the progressive group One Wisconsin Now, which tells me it got the information from its ad tracker.

Even more tellingly, the Club has poured a surprising $400,000 into the battle to recall state senator Alberta Darling, who was once viewed as safe, One Wisconsin Now’s executive director Scot Ross tells me. Ross adds that his media tracker found that the Club sank the money into the race right after a Dem poll found that Darling is getting edged by her Dem recall challenger, Rep. Sandy Pasch.

If true, this is significant. If labor and Dems can knock off Darling, it would be a major coup: She is the co-chair of the legislative committee that passed Scott Walker’s union-busting proposals. Of all the GOP state senators targeted for recall, she’s been in office the longest. And Dems privately admit that they think the chances are slim that she can be defeated. But if the Club is pouring massive cash into an effort to prop her up, this could mean Dems have succeeded in widening the playing field beyond the most vulnerable GOP recall targets, meaning that cash being spent on Darling could have otherwise been spent elsewhere.

Obviously, the fact that they have lots of money to throw around is not good, but the fact that they feel compelled to throw it at what should be slam dunks is good.

If the Democrats want to win this, they need to focus on boots on the ground, and I mean locals, not hired guns, because the ‘Phants will have more money for the foreseeable future.

Where His Campaign Was, There Is Nothing But a Greasy Stain…

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It’s Newt again. His fundraisers just bailed from his campaign:

Newt Gingrich’s top two fundraising advisers resigned on Tuesday, and officials said the Republican candidate’s hobbling presidential campaign carried more than $1 million in debt.
FILE – In this June 16, 2011 file photo, Republican presidential candidate, former House Speaker Newt Gingrich speaks at the Republican Leadership Conference in New Orleans. Gingrich’s top two fundraising advisers resigned on Tuesday, and officials said the Republican candidate’s hobbling presidential campaign carried more than $1 million in debt.

FILE – In this June 16, 2011 file photo, Republican presidential hopeful, former House Speaker Newt Gingrich speaks at the Republican Leadership Conference in New Orleans. Gingrich’s top two fundraising advisers resigned Tuesday, June 21, 2011, and officials said the Republican candidate’s hobbling presidential campaign carried more than $1 million in debt. The departures were the latest blow for the former House speaker who watched 16 top advisers abandon his campaign en masse earlier in June.

The departures of fundraising director Jody Thomas and fundraising consultant Mary Heitman were the latest blow for the former House speaker who watched 16 top advisers abandon his campaign en masse earlier this month, partly because of what people familiar with the campaign spending described as a dire financial situation.

These people, who spoke on the condition of anonymity because they were not authorized to discuss the campaign’s inner workings, said the former Georgia lawmaker racked up massive travel bills but money had only trickled in since he got into the race earlier this spring.

This is incredible.  The

I think that this is getting so pathetic that he might stop getting invitations to the Sunday political talk shows.

This would be a good thing. I hate listening to that self-important fatuous snollygoster moral pygmy on the TV present himself as some sort of intellectual giant.

Wanker of the Day

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David Streitfeld, a reporter for the New York Times just released an article
claiming a 62 year backlog of foreclosures.

The problem is that the story is based on fairly bogus stats, and the source of the stats, and for that matter, the source of pretty much the entire story, is Lender Processing Services (LPS), which is currently the target of multiple lawsuits, for defrauding investors, and (literally!!!!) having a price sheet on the web for forged documents through its DocX subsidiary (some background here)

So, this guy took a press release from what is allegedly one of the most corrupt and criminal organizations involved in the mortgage mess and phoned in an article.

Time for a blogger ethics panel.

H/t Naked Capitalism.

IOKIYAR*

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So John Edwards has been indicted for potential misuse of campaign funds to hide his affair, but the Department of Justice, despite the the fact that the normally weaselly Senate Ethics Committee was seriously considering expulsion, and referred their files to the DoJ for a criminal investigation, appears to be doing nothing:

“There is no question that I have done wrong,” John Edwards said Friday in front of the North Carolina courtroom where he pleaded not guilty to six counts of violating federal campaign laws. “I take full responsibility for having done wrong.”

But, Edwards said, he did not violate federal law.

“I will regret for the rest of my life the pain and the harm that I have done,” the former Democratic presidential candidate said, “but I did not break the law and I never, ever thought I was breaking the law.

Compare that to the web of conspiracy and money laundering that Senators Ensign and Coburn engaged in, and one begins to wonder why the DoJ is so hands off on that.

My only answer is that Reagan, Bush, and Bush spend an awful lot of time politicizing the Justice Department, and we are now harvesting the fruits of this.

*It’s OK If You Are A Republican.

Big Labor Getting a Clue

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After getting nothing but feeble lip service from national Democrats on labor issues, and even less on the Republican state-level jihad against unions from the national Dems, labor unions are pulling back on donations to national democrats:

Some of the nation’s largest labor unions are cutting back dramatically on their financial support to the Democratic Party, saying they are highly frustrated with the failure of Democrats to put up stronger resistance to Republican proposals opposed by labor.

The unions have cited what they see as Democrats’ tepid response to Republican efforts to eliminate collective bargaining rights for public sector workers, cut Medicare funding and require voters to show identification at the polls.

“It doesn’t matter if candidates and parties are controlling the wrecking ball or simply standing aside,” said Richard Trumka, president of the AFL-CIO, in a speech Friday. “The outcome is the same either way. If leaders aren’t blocking the wrecking ball and advancing working families’ interests, working people will not support them.”

…………

Labor’s threats to Democrats follow a major push in last year’s midterm election, when unions spent $8 million backing a liberal challenger to former senator Blanche Lincoln (D-Ark.). The challenger, then-lieutenant governor Bill Halter, lost to Lincoln in a runoff, and a weakened Lincoln went on to lose the general election to Republican John Boozman.

Trumka trumpeted the outcome of that race in a question-and-answer period after his speech Friday. A moderator asked what was different about his latest rhetoric given that unions have threatened to withdraw support for Democrats in the past.

“Ask Blanche Lincoln,” he replied.

This is really the point that should be made, that there are a lot of Democrats who have little or no interest in protecting the average American worker, or of supporting organized labor, the distinguished gentlewoman from WalMart being one of the more prominent examples, and making an example of them is a good thing.™

I would also note that Lincoln was down by double digits to any Republican before the primary challenge.

It’s Jobless Thursday

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Initial claims are out and they are better, but still not enough to constitute a recovery in the job market.

Initial claims were at 403,000, still above the roughly 375K required for a meager recovery, while the less volatile 4 week moving average climbed to a 7 month high.

In the longer time views, while continuing claims fell, extended and emergency claims rose.

These are awful numbers, and Barack Obama has to be thanking his lucky stars about what a clown show the Republican Presidential campaign has become, because there were also a whole passel of truly anemic economic metrics released today, with the Philadephia Fed survey, the Conference Board’s Index of Leading Economic Indicators, and existing home sales disappointing.

Schadenfraude Alert

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It looks like a lot of big anonymous donors to political advcocy groups are facing a tough choice, pay a 35% gift tax, or contest the rules in open court, where your anonymous donations to Karl Rove will become a matter of public record:

The Internal Revenue Service appears to have begun to enforce a tax on gifts to the non-profit organizations that were a key vehicle for anonymous politics in the last five years and had promised to play a large role in the presidential cycle, a move which could reshape the place of money in politics in 2012.

“It appears that the IRS Estate and Gift Tax team has also started paying attention to 501(c)(4) organizations,” a Los Angeles tax lawyer who has followed the issue closely, Ofer Lion, wrote in a memo to clients today.

Gifts to other political organizations are not taxable under federal law, and lawyers informally say many donors do not typically pay the gift tax — which may run as high as 35%, mirroring income tax rates — for contributions to 501(c)4s.

The IRS focus would only apply to quite large donors: the first $13,000 annually are exempt. The rest of the contributions, however, reduce a donor’s lifetime tax exemption, which stands currently at $5 million but stands to drop to $1 million in 2013, a fact which would mean a donor’s heirs lose substantially more to estate taxes, including potentially a “clawback” of money that’s already been given away back into the taxable estate.

………

“[C]ontributors wishing to remain anonymous may feel the need to pay sizable gift tax assessments rather than challenge the tax in open court, and on the public record,” Lion wrote.

My heart bleeds borscht for the Koch suckers who now face Morton’s Fork.

And While They Were Going After bin Laden, They Found Time to Kiss Up To The Banks…

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This awful policy is driven by a desire for campaign donations.

The New York Times has an editorial excoriating the Obama administration for deregulating foreign currency swaps:

A loophole in the law — which the bankers and their friends, including the administration, fought for — allows the Treasury secretary to exempt the instruments. The arguments in favor of exemption, beyond a desire to please the banks, were always unconvincing. They still are. The Treasury Department has asserted that the exempted market is not as risky as other derivatives markets, and therefore does not need full regulation.

That claim has been disputed by research, but even if it were true, it would be a weak argument. For instruments to be relatively safer than the derivatives that blew up in the crisis, necessitating huge bailouts, hardly makes them safe. Worse, dealers could probably find ways to manipulate the exempted transactions so as to hedge and speculate in ways that the law is intended to regulate.

……

The department has also said that because the market works well today, new rules could actually increase instability. That is perhaps the worst argument of all. It validates the antiregulatory ethos that led to the crisis and still threatens to block reform.

The Treasury’s plan will be open for comment for 30 days. Count us opposed.

(emphasis mine)

There can be a fine line between regulatory capture and corruption, and I am not sure on which side this falls.

In a way, this is worse than Bush and His Evil Minions™, because W was (correctly) perceived as a radical, but the actions of “Team Geithner” now firmly entrenched this thinking on both sides of the aisle.

H/t Paul Krugman for the graph pr0n.

Ha Ha!

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Anonymous has apparently penetrated the US Chamber of Commerce, and now released a 1.2 Gigabyte file containing the documents.

It seems to contain files from the Chamber, the American Legal Exchange Council, and the the Mackinac Center.

The last two are right wing front groups.

The ALEC writes legislation to kill unions as well as the poor and the elderly, and the Mackinac Center is yet another of those right wing so-called “think” tanks.

There is a caveat here, one which has been posted at AnonNews:

On April 29th a person using the twitter account “@septscelles”  released a large file to Barrett Brown that purportedly contained secret US Chamber of Commerce documents. This file was later made available via File Dropper as a (strangely truecypted) torrent named “chambersecrets2”.  It is also reported to have been made available in an unencrypted form on the Pirate Bay.

Despite the promise of secrets and leaks, early research has thus far shown that this information is publicly available through a simple Google search. It’s very possible that “@septscelles” is just an attention seeking troll. Despite this, there is a more insidious possibility. We learned from the HB Gary emails that the Chamber of Commerce was advised to “feed the fuel between the feuding groups, [creating] disinformation.” Specific mention was made of “[creating] messages around actions to sabotage or discredit the opposing organization [and to] submit fake documents and then call out the error…”

The file is very large, and will therefore take some time to fully examine. Nevertheless, we would like to state that this information was provided by an unknown party and may be an attempt to discredit Anonymous through a campaign of misinformation. More information will be coming soon.

So obviously, breaking out the champagne is premature, though perhaps chilling it might not be a bad idea.

You can go through the documents by downloading this torrent.

H/t Hedgehog at the Stellarparthenon BBS.

Why Not Gus Frerotte?

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The most wanktastic representative in the Democratic caucus, Heath Shuler, had got himself a primary challenger, Cecil Bothwell:

North Carolina Blue Dog Democrat Heath Shuler is getting a primary challenge.

Councilman Cecil Bothwell, who originally said he would run as an independent, has changed his mind on the advice of friends and supporters, according to The Asheville Citizen-Times.

“I originally believed that the best way to address issues too long ignored and to challenge the corporate power over the national parties was to run as an independent,” he said. “But I’ve heard from hundreds of people, from WNC to Washington, DC, who believe the most likely path to success is up the middle instead of trying for an end-run.”

He’s not on Act Blue yet, but when he is, I will add him to my Act Blue page.

He’s actually an interesting guy, the only openly Atheist politician I know of, according to his Wiki Page.

Wisconsin Election(s) Update

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In the Wisconsin Supreme Court race, JoAnne Kloppenburg filed a petition with the Government Accountability Board for a recount, which is automatic, and at state expense, because the margin was less than the ½% margin.

She also called for an investigation of the actions of Waukesha County Clerk Kathy Nickolaus, who has been using odd methods, and generating odd results, for years.

I don’t know how this will turn out, but given that Wisconsin uses paper ballots, my guess is that Ms. Nickolaus will not look good at the end of this, because even if she isn’t shown to have engaged in ballot fraud, her history of incompetence is well documented.

Additionally, it looks like Wisconsin will be more than doubling its recall elections in its history, there have been 4 total in history, but now 5 recall petitions have already been filed against state senators, which means that there should be at least 5 recall elections.

I would expect a lot of money from the Koch brothers to flow in for both the recount and the elections.

Surprise, The Vampire Squid* is F%$#ing Its Customers Too

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The Senate Permanent Subcommittee on Investigations has issued its report on the financial meltdown, and among other things, they say that Goldman Sachs deliberately misinformed its customers so that it could bet against them and lied to Congress.

Of course, there won’t be any prosecutions, even though the behavior is so egregious that the New York Times has has started to wonder why there have been no prosecutions. (This is a serious article, about 4000 words long, not a throw away comment in an OP/Ed)

Of course, Matt Taibbi, and the rest of us have been asking this question for months.

The answer is that it’s because they own us, or at the very least, they own Barack “The Worst Constitutional Law Professor Ever” Obama, Timothy “Eddie Haskell” Geithner, and Eric “Place” Holder, which comes to the same damn thing.

When this sort of fraud goes investigated and unpunished, it becomes the social norm, and metastasizes.

*Alas, I cannot claim credit for the bon mot describing Goldman Sachs as a, “great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.” This was coined by the great Matt Taibbi, in his article on the massive criminal conspiracy investment firm, The Great American Bubble Machine.

Someone Needs to Open Up a Can of Whup Ass on the Krauts

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The periphery in Europe is experience contracting GDP and a debt crisis. The most recent case is that of Portugal, which is now asking for an EU bailout.

Unfortunately the conditions of the bailout are always the same Teutonic prescription:

  • Austerity budgets, which hike taxes and cut spending.
  • Paying off the banks that lent the money to the governments at 100¢ on the dollar.

The problem that this creates is:

  • Social instability.
  • Further GDP contraction, which increases debt load relative to the GDP.
  • Declining tax revenues.

The prescription for these problems is:

  • Austerity budgets, which hike taxes and cut spending.
  • Paying off the banks that lent the money to the governments at 100 ¢ on the dollar.

Rinse, lather, repeat.

The problem here is two-fold, and they are both of German origin:

  • The Germans have never gotten over their bout with hyperinflation in the 1920s, and so feel that inflation is the only battle to fight.
    • This also, at German insistence, got baked into both the Euro and the European Central Bank (ECB), which has no mandate to do anything by keep inflation low.  Unlike the Fed it has no mission to minimize unemployment as well.
  • There is a complete unwillingness by the EU and the ECB to allow for hearcuts on the bondholders, which (surprise) appear to largely be the German banks.

This  is why, on the basis of spiking commodity prices, driven largely by the Libya conflict, the ECB has just raised its benchmark rate.

The thing here is that there is an awful lot of pain being inflicted to support German philosophy*, as well as supporting the bad debts of their banks, which would be insolvent by any realistic evaluation of this debt.

When someone big enough† finally tells the German banks to go pound sand, things should get interesting.

*Which, according to my physicist brother, is also why quantum mechanics such a pain, the the formative texts were written by Germans, who felt an obligation to be obscure and confusing.
†And I don’t mean Spain big. If the new government in Ireland gives a 50¢ haircut to the bond holders, the Germans will have a banking experience to rival our S&L crisis of the 1980s.

Alan Greenspan, STFU!

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Ayn Rand’s most successful apostle* is back at it again saying that regulations are causing all of our financial problems, and gives us this bon mot:

The problem is that regulators, and for that matter everyone else, can never get more than a glimpse at the internal workings of the simplest of modern financial systems. Today’s competitive markets, whether we seek to recognise it or not, are driven by an international version of Adam Smith’s “invisible hand” that is unredeemably opaque. With notably rare exceptions (2008, for example), the global “invisible hand” has created relatively stable exchange rates, interest rates, prices, and wage rates.

With notably rare exceptions, Abraham Lincoln enjoyed the play Our American Cousin.

As Paul Krugman observes, the level out outright cluelessness shown here is mind boggling, though the best response comes from Henry Farrell, who holds a “With notably rare exceptions,” contest that is hysterically funny.

*No, really, he actually hung out with her and was a part of regular meetings in her apartment.

Here’s a Shocker

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Wisconsin Governor Scott Walker was bankrolled by the Koch brothers Josef Stalin derived fortune:

Wisconsin Republican Governor Scott Walker, whose bill to kill collective bargaining rights for public-sector unions has caused an uproar among state employees, might not be where he is today without the Koch brothers. Charles and David Koch are conservative titans of industry who have infamously used their vast wealth to undermine President Obama and fight legislation they detest, such as the cap-and-trade climate bill, the health care reform act, and the economic stimulus package. For years, the billionaires have made extensive political donations to Republican candidates across the country and have provided millions of dollars to astroturf right-wing organizations. Koch Industries’ political action committee has doled out more than $2.6 million to candidates. And one prominent beneficiary of the Koch brothers’ largess is Scott Walker.

Seriously, these guys are to the conservative wackdoodle movement as Gaëtan Dugas was to AIDS.

*No seriously, Koch Industries made its money building refineries for Josef Stalin.

Unsurprising News of the Day

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In the last election, the City banks, the London equivalent of Wall Street, supplied half the campaign donations for the Tories:

Financiers in the City of London provided more than 50% of the funding for the Tories last year, new research has revealed, prompting claims that the party is in thrall to the banks.

A study by the Bureau for Investigative Journalism has found that the City accounted for £11.4m of Tory funding – 50.79% of its total haul – in 2010, a general election year. This compared with £2.7m, or 25% of its funding, in 2005, when David Cameron became party leader.

The research also shows that nearly 60 donors gave more than £50,000 to the Tories last year, entitling each of them to a face-to-face meeting with leading members of the party up to and including Cameron.

The study shows the impact that Michael Spencer has had on party funding. He was appointed by Cameron as Tory treasurer in an attempt to reduce the influence of Lord Ashcroft, the party’s former deputy chairman. Spencer was asked by Cameron to increase the number of relatively small donations of £50,000 to curb the influence of large donors such as Ashcroft, and for these smaller donations the City was place to look.

Relatively small donations of fifty thousand quid? That’s like eighty thousand US Dollars!

This might explain why their proposals to reign in bankster pay are so toothless.

Delay Sentenced to 3 Years in the Slam

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Schadenfreude, sweet schadenfreude!

And 10 years probation on money laundering and conspiracy charges.

The only cloud to this silver lining is that his active work on behalf of human traffickers in the Northern Marianas, creating what was for all intents and purpose a consequence free zone for slavery and forced prostitution, is not a part of this sentence.

I may be a bad person for doing a happy dance about this, but then I am a bad person, because I am doing a happy dance.

The desire for retributive justice is something that is a nearly universal human characteristic, and it is only through conquering our baser animal instincts through the application of higher order thought, and empathy, but I guess that I am simply not so evolved.

Needless to say, the fact that I am unevolved will come as no surprise to those who know me well.

Well, If I Had Been Ignored for 2 Years, I’d Quit Too

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Paul Volcker, arguably the person in the administration most strongly for enhanced regulation of financial institution, is leaving the administration:

Former Federal Reserve Chairman Paul Volcker plans to leave his role as head of a panel of experts advising President Barack Obama on the economy, sources familiar with the decision said on Wednesday.

The departure of Volcker, 83, from the President’s Economic Recovery Advisory Board is among a series of changes Obama is planning to announce soon.

The decision to leave the board was Volcker’s.…

Seeing as how he was generally ignored, and his initiatives, like the Volcker rule were, at best, used as political talking points, it’s no wonder.

If I weren’t someone with my tongue so far up the banks’ rectums that I tasted tonsils (see Summers, Lawrence and Geithner, Timothy), and I were an economic adviser to the Obama administration, I wouldn’t have made it past 2 months, much less 2 years.

Not a Witch, Is a Crook

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Everyone’s favorite witchcraft denying loony toon Senate candidate, Christine O’Donnell, is being investigated for diverting campaign funds for her personal use, specifically, though not limited to, having her campaign pay the rent on her town house.

The interesting thing here is that her misdeeds, which will likely result in nothing more than fines, were unnecessary, because federal campaigns are allowed to pay their candidates up to an amount equal to the wages of the office that they are running for.

That innovation was given us by Maryland’s own nut job, Alan Keyes.