Category: Congress

Time to Stop Covering for Our Friends in Riyadh

At a Congressional hearing, former 9/11 commissioners refused to contradict an implication that the House of Saud knew of the attacks before they occurred:

A former member of the 9/11 Commission on Tuesday left open the possibility that the Saudi royal family knew about the 9/11 terror plot before it happened.

Rep. Dana Rohrabacher, R-Calif., asked members of the panel at a House Foreign Relations subcommittee hearing to raise their hands in response to this question:

“How many of you there believe that the royal family of Saudi Arabia did not know and was unaware that there was a terrorist plot being implemented that would result in a historic terrorist attack in the United States, in the lead-up to 9/11?”

Two of the four panelists raised their hands, but Tim Roemer, 9/11 Commission member and a former congressman from Indiana, did not. Neither did Simon Henderson, director of the Gulf and Energy Policy Program at the Washington Institute for Near East Policy.

………

Those 28 pages remain classified despite calls for their release from several former members of the 9/11 Commission — a bipartisan blue-ribbon panel that from 2002 to 2004 investigated the 9/11 attacks and the intelligence failures that allowed them to succeed.

Sen. Bob Graham, co-chairman of the congressional inquiry into the attacks, has suggested that the pages contain “substantial” evidence of Saudi involvement — both by the government and private citizens. “I think it is implausible to believe that 19 people, most of whom didn’t speak English, most of whom had never been in the United States before, many of whom didn’t have a high school education — could’ve carried out such a complicated task without some support from within the United States,” Graham said on 60 Minutes last month.

………

Graham and his Republican co-chair, former Sen. Porter Goss, have joined 9/11 victims’ family members, activists, and congressional leadership to call for the release of the 28 pages. The chapter was initially classified by the George W. Bush White House, fearful of upsetting a U.S. ally. Despite twice promising to release the pages, President Obama has withheld them.

We really need to stop coddling the Saudis.  It’s bad policy, and with a Presidential election coming up, it is piss poor politics.

3 “Democrats” Who Think That Your Financial Advisor Should Be Allowed to Cheat You

The Senate voted to prohibit regulators from requiring financial advisors to work in their own client’s best interest:

The Senate voted Tuesday to strike down a controversial Obama administration rule for financial advisers, setting up a showdown with the White House.

Senators voted 56-41 to overturn the Labor Department’s fiduciary rule, which requires financial advisers to act in the best interest of retirement savers.

The Senate’s vote paves the way for a battle with the White House, which has pledged that President Obama will veto the legislation once it reaches his desk.

“The final rule reflects extensive feedback from industry, advocates, and Members of Congress, and has been streamlined to reduce the compliance burden and ensure continued access to advice, while maintaining an enforceable best-interest standard that protects consumers,” the Office of Management and Budget said in a statement.

………

Americans for Financial Reform, an advocacy group, defended the regulation.

The rule “simply says that financial professionals who claim to offer honest, unbiased advice on retirement savings should actually have to do that,” the group said.

“The motive for this resolution is not a genuine concern about the wellbeing of retirement savers. Instead, some Wall Street salespeople and their firms are worried about losing out on the billions of dollars in excess profits they have been making by recommending investment products that serve their own interests.”

If you look at the vote you will find 3 “Democratic” senators who voted to allow grandma to be cheated out of her retirement, former Congressional “Blue Dog” Joe Donnelly (D-IN), Heidi Heitkamp (D-ND), and Jon Tester (D-MT).

They need to be primaried, big time.

They are all up for reelection in 2018

How Utterly Proper

Karl Rove’s Crossroads PAC has endorsed Debbie Wasserman-Schultz in the Democratic primary for her Congressional seat:

The super-PAC founded by GOP operative Karl Rove on Tuesday mocked Democratic National Committee (DNC) Chairwoman Debbie Wasserman Schultz’s (D-Fla.) leadership as a boon to Republicans and “endorsed” her reelection bid.

American Crossroads said Wasserman Schultz’s management has led to electoral gains for Republicans and more tension among Democrats.

“Congresswoman and DNC Chairwoman Debbie Wasserman Schultz has played a critical role over the past several years in the massive Republican gains we have achieved at the state level, in the U.S. House of Representatives, and in the U.S. Senate,” Crossroads President and CEO Steven Law said in a statement.

“Wasserman Schultz’s leadership has also been a catalyst for the emerging civil war in the Democratic Party this year, ensuring that their nominating process will drag on far longer than that of Republicans,” he added.

The GOP group is backing her over her insurgent primary challenger Tim Canova.

“Voters of the 23rd District of Florida should know — American Crossroads stands with Chairwoman Debbie Wasserman Schultz in her primary against ultra-liberal outsider Tim Canova, and they should too.”

Obviously, this is trolling, but it is very high quality trolling.

Oh Snap!

Despite a veto threat from the Obama administration, the Senate passed a bill allowing 911 victims to sue them for their ties to the terrorists:

A bill that would let the families of those killed in the Sept. 11 attacks sue Saudi Arabia for any role in the terrorist plot passed the Senate unanimously on Tuesday, bringing Congress closer to a showdown with the White House, which has threatened to veto the legislation.

The Senate’s passage of the bill, which will now be taken up in the House, is another sign of escalating tensions in a relationship between the United States and Saudi Arabia that once received little scrutiny from lawmakers.

Administration officials have lobbied against the bill, a view that the White House spokesman Josh Earnest reiterated after the vote. And the Saudi government has warned that if the legislation passes, it might begin selling off up to $750 billion in Treasury securities and other assets in the United States before they face a danger of being frozen by American courts. Adel al-Jubeir, the Saudi foreign minister, delivered the warning to lawmakers and the administration while in Washington in March.

The House of Saud is claiming that if this passes, they will dump their Treasuries on the market, which will cause the dollar to tumble.

So the dollar falls, making imports more expensive, and our exports more expensive.

This would have the effect of reinforcing our manufacturing economy and improving our balance of trade.*

The Senate bill carves out an exception to the [1976] law [which grants immunity to foreign governments] if foreign countries are found culpable for terrorist attacks that kill American citizens within the United States. If the bill were to pass both houses and be signed by the president, it could clear a path for the role of the Saudi government to be examined in the Sept. 11 suits.

………

Mr. Schumer said he believed that Democrats would override a veto from Mr. Obama. ………

So, if the House follows suit, and Obama vetoes the bill, this is going be a major sh%$ storm, and it’s going to jam up the Democrats something fierce.

It plays into one of Trump’s narratives, and it’s a very popular idea among the American public.

What’s more, Republicans would love to override an Obama veto.

The simple solution would be for Obama not to veto the bill, but because the foreign policy establishment continues to view the House of Saud to be an invaluable ally, as opposed to the medieval terrorism supporters that they actually are, so the ever establishment Obama will follow through on his veto.

*Only please, Brer Fox, please don’t throw me into the briar patch.

Quit Drawing Targets on Your Shoes, Morons

The useless meat sacks known as “Senate Moderates” are now prostrating themselves before the possibility of President Trump:

As Democrats portray Donald Trump as a dangerous leader for his party, most of them barely acknowledge he could be president. But some centrist Democrats say they’re ready and willing to work with the business mogul should he defeat their party’s nominee.

“The people will have a chance to vote. If Donald Trump is elected president there will be a great opportunity to sit down and have a conversation about what that agenda looks like,” explained Sen. Heidi Heitkamp (D-N.D.), who has long backed Hillary Clinton. “If he’s president, we’re going to have disagreement. But we’d better all figure out how to come up with an agenda for the American people.”

Getting ready for a potential Trump presidency in their home states may just be good politics for moderate senators such as Heitkamp, Jon Tester of Montana and West Virginia’s Joe Manchin. They’ll be top targets for Republicans in 2018, a midterm year that could favor the GOP if recent trends of lower turnouts in nonpresidential elections continue. And it’s a good bet that they’ll need Trump voters to keep their jobs.

Seriously?

These cheese eating surrender monkeys are panicking over the midterms, and so they are engaging in activities calculated to demoralize the base.

It’s stupid on a policy level, it’s stupid, on a political level, it’s even worse.

This is blind unreasoning panic.

I’ve seen zebras chased by cheetahs that carry themselves with more grace and dignity.

F%$# Me, I Agree with the Orange One ……… Not Trump, the Other Orange One

I mean John Boehner, who is most assuredly not a fan of Ted Cruz:

“Lucifer in the flesh,” the former Speaker said. “I have Democrat friends and Republican friends. I get along with almost everyone, but I have never worked with a more miserable son of a bitch in my life.”

That’s my sense of Ted Cruz as well.

I have never in my life seen someone as widely loathed as Ted Cruz in public life.

Endorsements in the Maryland and Pennsylvania Senate Races

In Maryland, I endorse Donna Edwards, because on every issue where they differ, she is right, and Chris Van Hollen is wrong.

While he now disavows this position, he has been receptive to cutting Social Security, which is reason to never support him in the primary.

In Pennsylvania, the Senate Primary race is between Joe Sestak and Katie McGinty.

Sestak would be a slam dunk in this campaign, except for the fact that he defeated Arlen Specter, who had switched parties to Democrat, in the 2010 primary, which has so enraged Chuck Schumer that he has dumped a ton (something around $2 million) of money on the non-entity (she came in a distant 4th in a 4 man race for Governor in 2014) Mcginty.

She’s never held elective office, so there’s not a whole bunch of record to go after, but she has taken a lot of energy money, including over $100,000.00 from fracking interests, and she’s trying to run as an environmentalist.

So, it’s clear that she thinks that you fool enough people for long enough to get into office, and her dismal performance in the gubernatorial primary 2 years ago does not bode well for her ability as a campaigner, so no, just no.

Please, make Chuck Schumer cry.

Yet Another of My Cousin’s* Brilliant Ideas

As you may be aware, Senators Richard Burr (R-NC) and Dianne Feinstein* (D-CA) have proposed a bill requiring that all encryption include a back door for the authorities. It appears that the bill as written also outlaws things like MP3 and JPEG files:

The proposed bill put forward by Senators Richard Burr (R-NC) and Dianne Feinstein (D-CA) to force US companies to build backdoors into their encryption systems has quickly run into trouble.

Less than 24 hours after the draft Compliance with Court Orders Act of 2016 was released, more than 43,000 signatures have been added to a petition calling for the bill to be withdrawn. The petition, organized by CREDO Action, calls for Congress to block the proposed law as a matter of urgency.

Meanwhile, in the technical world, experts have been going through the legislation and pointing out glaring holes in the draft bill. Bruce Schneier, the guy who literally wrote the books on modern cryptography, noted that the bill would make most of what the NSA does illegal, unless No Such Agency is willing to backdoor its own encrypted communications.

“This is the most braindead piece of legislation I’ve ever seen,” Schneier – who has just been appointed a Fellow of the Kennedy School of Government at Harvard – told The Reg. “The person who wrote this either has no idea how technology works or just doesn’t care.”

He pointed out that it isn’t just cryptographic code that would be affected by this poorly written legislation. Schneier, like pretty much everyone, uses lossy compression algorithms to reduce the size of images for sending via email but – as it won’t work in reverse and add back the data removed – this code could be banned by the law, too. Files that can’t be decrypted on demand to their original state, and files that can’t be decompressed back to their exact originals, all look the same to this draft law.

In the, “Has no idea how technology works or just doesn’t care,” issue, I will go for both.

This bill is a mindbogglingly stupid idea.

*Full disclosure, my great grandfather, Harry Goldman, and her grandfather, Sam Goldman were brothers, though we have never met, either in person or electronically.

The House of Saud Needs to Go Cheney Itself

It appears that the corrupt Neanderthals in Ryadh are upset about a bill in Congress that might make them accountable for their support of terrorists:

Saudi officials have long denied that the kingdom had any role in the Sept. 11 plot, and the 9/11 Commission found “no evidence that the Saudi government as an institution or senior Saudi officials individually funded the organization.” But critics have noted that the commission’s narrow wording left open the possibility that less senior officials or parts of the Saudi government could have played a role. Suspicions have lingered, partly because of the conclusions of a 2002 congressional inquiry into the attacks that cited some evidence that Saudi officials living in the United States at the time had a hand in the plot.

Those conclusions, contained in 28 pages of the report, still have not been released publicly.

The dispute comes as bipartisan criticism is growing in Congress about Washington’s alliance with Saudi Arabia, for decades a crucial American ally in the Middle East and half of a partnership that once received little scrutiny from lawmakers. Last week, two senators introduced a resolution that would put restrictions on American arms sales to Saudi Arabia, which have expanded during the Obama administration.

Families of the Sept. 11 victims have used the courts to try to hold members of the Saudi royal family, Saudi banks and charities liable because of what the plaintiffs charged was Saudi financial support for terrorism. These efforts have largely been stymied, in part because of a 1976 law that gives foreign nations some immunity from lawsuits in American courts.

The Senate bill is intended to make clear that the immunity given to foreign nations under the law should not apply in cases where nations are found culpable for terrorist attacks that kill Americans on United States soil. If the bill were to pass both houses of Congress and be signed by the president, it could clear a path for the role of the Saudi government to be examined in the Sept. 11 lawsuits.

Obama administration officials counter that weakening the sovereign immunity provisions would put the American government, along with its citizens and corporations, in legal risk abroad because other nations might retaliate with their own legislation. Secretary of State John Kerry told a Senate panel in February that the bill, in its current form, would “expose the United States of America to lawsuits and take away our sovereign immunity and create a terrible precedent.”

The bill’s sponsors have said that the legislation is purposely drawn very narrowly — involving only attacks on American soil — to reduce the prospect that other nations might try to fight back.

………

The bill is an anomaly in a Congress fractured by bitter partisanship, especially during an election year. It is sponsored by Senator John Cornyn, Republican of Texas, and Senator Chuck Schumer, Democrat of New York. It has the support of an unlikely coalition of liberal and conservative senators, including Al Franken, Democrat of Minnesota, and Ted Cruz, Republican of Texas. It passed through the Judiciary Committee in January without dissent.

My heart is bleeding borscht over their discomfort.

Dynastic Politics at Its Finest

Duncan D. Hunter, the son of Duncan L. Hunter, has been caught spending campaign funds on personal expenses, a federal crime:

Rep. Duncan Hunter — whose spending of campaign funds on video games made national news this week — said on Thursday that he’s cutting short a trip to Israel to return to the United States and rectify that problem and several other mistakes.

“There was no taxpayer money involved, and I take full responsibility,” Hunter, R-Alpine, said by telephone from his trip. “That’s it. I’m going to pay everything back by tomorrow morning, with interest.”

Hunter said he and his wife were the only two holders of his campaign’s credit card, which incurred most of the expenses. As of Thursday morning, he said, he is now the only card-holder.

Hunter’s call came amid a review by The San Diego Union-Tribune of an unusual pattern of expenditures listed on his disclosure forms as personal expenses or mistaken charges “to be paid back.”

Campaign finance reports show $5,339 in such charges during 2015 alone: $1,128 in travel, $1,650 to Hunter’s children’s school in El Cajon, $1,424 for video games and $1,137 paid to an oral and facial surgeon.

The forms list only one personal expense that was actually paid back by Hunter — $169 on Oct. 21, with no indication of which personal expense was being reimbursed. None of the other outstanding charges were listed as repaid, or as an ongoing debt to the campaign for the year-end accounting.

The Union-Tribune was the first to report this week that more than 60 video game transactions totaling $1,302 were being questioned by the Federal Election Commission. News outlets from Esquire to Roll Call picked up the story.

I will note that dynastic politics has a long of enabling corrupt and unqualified, whether we are talking about the Hapsburgs, the any number of the Bush clan, Ron Paul’s idiot son, and **ahem** another prominent Presidential candidate.

Nothing to See Here, Move Along

Is anyone surprise that the guests on Chris Matthews’ show Hardball have given over 75 thousand dollars to his wife’s campaign?

It’s an interesting racket:

One day last June, MSNBC’s Chris Matthews opened his show with some news: His wife, Kathleen Matthews, a former local news anchor and Marriott hotel executive, had announced a run for Congress, seeking to replace Chris Van Hollen in Maryland’s 8th District. Matthews enthusiastically endorsed his wife’s candidacy, and vowed to “offer Kathleen whatever help I can.”

The longtime host of Hardball added: “As a journalist, I also know how important it is to respect certain boundaries on my support for her both in my public role and here on MSNBC. And while most of you know that our show doesn’t typically cover congressional races, I will continue to fully disclose my relationship with her as part of MSNBC’s commitment to being transparent and fair in our coverage.”

In the ensuing months, Kathleen’s name has rarely come up on Hardball. But many of the guests on the show have become generous donors to her campaign. And the transparency Matthews promised has not extended to mentioning that to his audience.

Using Federal Election Commission data and Hardball transcripts, The Intercept has identified 48 frequent guests of Matthews’s program who have made donations to the Kathleen Matthews for Congress campaign. These individuals, their spouses, or their political action committees donated $79,050 as of December 31, 2015 — about 5 percent of the $1.5 million Matthews had raised as of that time.

Some of the guests made the donations after they were on the show — in some cases, long after. But in at least 11 of these cases, the Hardball guests appeared on the program after Kathleen Matthews announced her candidacy, and without any disclosure of the donations. And in at least three of those cases, the donations came within days of the MSNBC appearance.

As Atrios would say, “Time for another blogger ethics panel.”

Debbie Wasserman-Schultz Really Needs to be Fired

Even if you ignore her tenure at the DNC, which is marked by incompetence, careerism, and biased, her history in supporting the most egregious examples of abusive consumer is a reason to force her retirement.

In November, she voted to allow car dealers to discriminate against minorities:

Before Thanksgiving, Florida Congresswoman Debbie Wasserman Schultz helped push through congress a bill that would allow automobile dealers and auto finance companies to discriminate against minority and unsophisticated car buyers by charging them more in fees and interest rates.

The Reforming CFPB Indirect Auto Financing Guidance Act that Wasserman Schultz voted for would basically let lenders and dealers ignore Consumer Financial Protection Bureau rules that bar dealers and auto finance companies from charging unsophisticated borrowers who are mostly minorities hundreds of dollars more in excessive interest and fees on car loans regardless if the car buyer has excellent credit.

The National Automobile Dealers Association or NADA is pushing this bill because they realized that after dusting off an old marketing book from Wells Fargo, that their members could easily widen their profit margins by adding stealth fees and charging higher interest rates to unsophisticated minority consumers who are just happy they can own a new car.

The bill is, as Brian O’Connor at the Detroit News points out, “a repulsive layering of racism wrapped in consumer rip-offs wrapped in a layer of lies and stuffed with lots and lots of campaign cash.”

Like an old sub-prime mortgage, the auto finance company sets a minimum interest rate on car loan made through a dealer, and the dealer can then hike the interest rate to 2.5 percentage points or more with the lender kicking in back end points equaling 1% to 3% of the sale price of the car to the dealer and the salesman. This similar to what used to be called Yield Spread Premiums in lending. In other words, NADA wants and what Wasserman Schultz endorses is really ghetto loans for cars.

And now she’s tring to hamgstring the CFPB’s attempts to regulate the worst practices of the payday lending industry:

One of the benefits of America’s unusually stingy welfare system is that it allows our domestic payday-loan industry to thrive. Since the safety net is too threadbare to catch the working poor when they fall on troubled times, payday lenders are able to charge them exorbitant interest on subsistence loans. Nationally, the average interest rate on a payday loan is a stellar 390 percent.

But Elizabeth Warren’s Consumer Financial Protection Bureau is dead set on sapping all of the dynamism out of the payday-loan industry. The CFPB is about to issue new regulations on payday lenders that are aimed at preventing borrowers from falling into a vicious (or viciously profitable) cycle where they take out high-interest loans just to make the interest payments on their previous high-interest loans. Fortunately, DNC chair Debbie Wasserman Schultz is co-sponsoring a bill that would gut the CFPB’s regulations and allow payday lenders to keep profiting off the desperation of the impoverished.

According to a memo obtained by the Huffington Post, Wasserman Schultz is trying to rally congressional Democrats around a bill that would delay the CFPB’s new rules for two years and nullify those rules in any state that adopts its own payday-lending law, like the DNC chair’s own home state of Florida.

The key thing about such state laws is that they’re likely to be much kinder to the profits of payday lenders than what the CFPB is crafting. In Florida, the average interest rate on a payday loan is still 304 percent, according to Pew Charitable Trusts. What’s more, 76 percent of all payday loans in the state are turned loans — loans taken out to pay back another loan — according to Americans for Financial Reform. Thus, Florida’s law has left the highly profitable vicious cycle of payday borrowing intact.

………

With such brave legislators leading the Democratic Party, it’s difficult to understand how Bernie Sanders can get so mad at the “Establishment.”

H/t Naked Capitalism, where they also note that DWS recently signed onto a letter to the CFPB asking for an exemption for credit unions and banks smaller than $10 billion from consumer protecting regulations.

Seriously.  What is wrong with the Democratic Party?

I kind of understand how one might be tempted to make use of an evil person’s evil, but Debbie Wasserman-Schultz is to incompetent that her evil servs no one.

If she were were in a James Thurber novel, the Todal would have Gleeped her by now.*

Support Tim Canova, who primarying her.

*The 13 Clocks. Just go read it.

The Official Hat of Team Obama


A Spelunking Helmet for Frequent Cavers

There are reports taht Barack Obama is considering Nevada Governor Brian Sandoval as a Supreme Court appointment:

The White House is considering picking the Republican governor from Nevada to fill the current vacancy on the Supreme Court, scrambling political calculations in what is expected to be a contentious confirmation battle in which Senate Republicans have pledged to play the role of roadblock.

President Obama is weighing the selection of Brian Sandoval, a centrist former federal judge who has served as governor since 2011, according to two people familiar with the process. Though the review process is in its initial phases and it is unclear whether the governor could ultimately emerge as the president’s pick, even the prospect of his nomination poses a difficult dilemma for Senate Republicans who have promised not to consider any nomination before November’s elections.

Here’s the kicker though, it turns out that Sandoval has explicitely called Obamacare unconstitutional:

The Washington Post reports that the White House is vetting Brian Sandoval, the Republican governor of Nevada who once labeled President Obama’s signature health law “unconstitutional,” as a possible nominee for the Supreme Court vacancy left by the death of Justice Antonin Scalia. Sandoval previously served as a federal district judge, the lowest rank of judges who receive lifetime appointments, for just under four years. He resigned to run for governor in 2009.

Though the Post claims that “Sandoval is increasingly viewed by some key Democrats as perhaps the only nominee President Obama could select who would be able to break a Republican blockade in the Senate,” the second-ranking Senate Republican poured cold water on this idea almost immediately after the Post’s report went live. According to Politico’s Burgess Everett, Senate Majority Whip John Cornyn (R-TX) “says [it] doesn’t make a difference if Sandoval is the nominee.”

The fact that Obama would consider naming Sandoval is surprising, given the governor’s past statements on the Affordable Care Act. In his first State of the State Address in 2011, Sandoval said that “many aspects of the law are unconstitutional” and he pledged to “continue to fight to have them overturned.” He later personally signed briefs filed in the Supreme Court arguing against the law’s constitutionality and claiming that the Supreme Court “should hold the ACA invalid in its entirety.”

It’s worth noting that, after losing this case, Sandoval did agree to implement provisions of the law, such as its Medicaid expansion. Nevertheless, if Sandoval’s position had prevailed in the Supreme Court, Obamacare would have completely ceased to exist.

I understand that Obama is looking for items to bolster his legacy, and getting another Supreme Court justice confirmed by the Senate would be a feather in his cap, but Sandoval is only 52, and would likely be on the court for more than 25 years.

I understand your need to do your PPUS (Post Partisan Unity Schtick), and I know that you really want to appoint another justice, but it’s not worth it if you have to appoint a bad justice.

Least Surprising News of the Day

Pharma bro Martin Shkreli hasw taken the 5th in response to a Congressional inquiry into price gouging in drugs:

The founder and former CEO of Turing Pharmaceuticals, Martin Shkreli, invoked his Fifth Amendment right against compelled self-incrimination on Wednesday, and he won’t comply with a subpoena for documents issued from a Senate panel investigating pharma drug pricing tactics.

The 32-year-old Shkreli was also subpoenaed to appear before a different panel, the US House Committee on Oversight and Government Reform, to testify about the price of a life-saving drug he increased by more than 5,000 percent.

Shkreli became the poster child for greed last year after he raised the price of Daraprim—used to treat parasitic infections—from $13.50 a pill to $750. A single pill once sold for $1. Now facing criminal charges that he allegedly defrauded investors, Shkreli has said he should have boosted prices for the drug even more.

Let’s be clear:  He has a right not to testify against himself, but generally it doesn’t apply to, you know, physical proof.

And yes, he is a ratf%$# who deserves to spend the rest of his life in gaol.

I have a New Endorsement

Timothy Canova, who is running against Debbie Wasserman-Schultz in the Democratic primary.

It appears that dissatisfaction with DWS, both in her district and inside the DC Beltway that The Hill, a bastion of inside the Beltway thinking has taken notice:

For Rep. Debbie Wasserman Schultz (D-Fla.), the problems with the left just keep coming.

The Democratic National Committee (DNC) chief has infuriated many Democrats with her handling of the party’s presidential primary debates. She drew further howls from liberals for deeming a whole generation of young women “complacent” about their abortion freedoms.

And now she’s facing a primary challenge from a liberal Wall Street reformer who says she’s a corporate shill detached from her district.

The challenge highlights the difficulty facing Wasserman Schultz as she juggles her dual roles as Florida representative and head of the DNC — duties that sometimes come into conflict.

Timothy Canova, a professor at the Shepard Broad College of Law in Florida’s Nova Southeastern University, says Wasserman Schultz’s positions on trade, criminal justice, consumer protection and drug policy reform — among others — are evidence that she’s sold out to corporate interests at the expense of her constituents.

It marks the first primary challenge to Wasserman Schultz since her arrival on Capitol Hill in 2005.

Canova launched his bid last week on a platform that pulls more than a few pages from that of populist Sen. Bernie Sanders (I-Vt.), the Democratic presidential hopeful who’s waged a surprisingly strong challenge to front-runner Hillary Clinton by attacking from the left.

In that mold, Canova is vowing to fight President Obama’s trade agenda, reform the criminal justice system, rein in big banks and curtail the influence of money in politics — all issues where he sees Wasserman Schultz as vulnerable.

“People here on the ground — I hear left and right, you name it — are just dissatisfied that she’s not responsive, she takes people for granted, and it’s becoming evident in the way she votes on an awful lot of issues,” Canova said Friday by phone.

“She takes a lot of corporate money, and she votes for corporate interests contrary to the interest of her own constituents.”

Canova, a former aide to the late Sen. Paul Tsongas (D-Mass.), is pointing to a host of votes that, he says, make Wasserman Schultz a bad fit for the district.

He says she fought against new Consumer Financial Protection Bureau guidelines governing car loans and pay-day lenders.

He’s quick to note that she opposed a 2014 Florida referendum to legalize medical marijuana, calling her “a drug warrior” in the pockets of a private prison industry that promotes incarcerations.

And he’s highlighting the fact that she was one of just 28 House Democrats to support the fast-track trade bill that’s greased the skids for the Trans-Pacific Partnership (TPP), a huge international accord that’s a top priority of Obama but remains anathema to liberals in his own party.

Canova said the TPP would be an environmental catastrophe for South Florida, which “is really facing, in the long-term, an existential problem with climate change and rising oceans.”

“In a democracy, you have to hold your officials accountable,” Canova said. “I was hoping somebody would step forward and challenge her. Nobody else would, and that’s really the basis of the challenge.”

Canova has a tough road ahead. Wasserman Schultz, as head of the DNC, is the most prominent Democrat in Florida; she’s a prodigious fundraiser for the party; and she glided to a sixth term in 2014 with 63 percent of the vote.

Still, in an environment when political non-conformers like Sanders and Donald Trump have attracted support by simple virtue of their outsider status, Canova sees an opening.

“There’s a perception … that she’s bullet-proof here at home because she wins by big majorities,” he said. “But she’s never been challenged in a primary.”

Washerman Schultz has faced some difficulty representing her district while also serving as a figurehead role for her party.

Debbie Wasserman-Schultz isn’t having difficulties because she has duties as head of the DNC.

She is facing a backlash because she is a careerist political climber with no underlying beliefs beyond that, she is as dumb as a post, and she refuses to listen to people she needs for implementation of her agenda.

I am so hoping that she gets the boot in the primary.

In any case, I have added Dr. Canova to Matthew Saroff’s Act Blue Page.

Good Riddance, Reptile*

Steve Israel, former Blue Dog who became the head of the Democratic Campaign Congressional campaign committee, and used his position to avoid challenging vulnerable Republicans when he wasn’t trying to rebuild the Blue Dog Caucus, is retiring:

Rep. Steve Israel (D-Huntington) won’t seek re-election to a ninth term in November in order to spend more time writing his second book, he said Tuesday.

The Democrat, who has held the seat since 2000, said in a statement, “It is time for me to pursue new passions and develop new interests, mainly spend more time writing my second novel.”

He said he is “looking forward to spending more time home and frequenting my beloved New York diners. Simply put, it’s time to pass on the torch.” He will complete his term and retire at the end of the year.

Any guesses on how long before he gets a lobbying gig with a seven figure salary for dictators, polluters, or despots?

I’ll take the under on 2 months after he leaves office.

*FWIW, Nancy Pelosi, when she made him of the DCCC, she admiringly noted his “Reptilian Tendencies.”

It’s Back

After having their plans to thwarted by activists, CISA is back:

US librarians have joined with a host of civil liberties groups to condemn a cybersecurity bill now passing through Congress they claim will be both “unhelpful” and “dangerous to Americans’ civil liberties”.

The American Library Association, the world’s oldest and largest library affiliation, has joined with 18 other groups including Fight for the Future, Demand Progress and FreedomWorks to issue a letter to the White House and Congress urging lawmakers to oppose the final version of a bill they claim will dramatically expand government surveillance while failing to tackle cyber-attacks.

Politicians from both sides of the House have been pushing for stronger cybersecurity measures in the wake of the Paris attacks and the recent San Bernardino shooting.

Republican House speaker Paul Ryan has been leading the charge to push through legislation and reconcile two bills, the Protecting Cyber Networks Act (PCNA) and the National Cybersecurity Protection Advancement with the Cybersecurity Information Sharing Act of 2015 (Cisa), a controversial bill that passed a Senate vote in October.

The speed with which Ryan is trying to push through a compromise has worried privacy activists. “We’ve just learned that the Intelligence Committees are trying to pull a fast one,” Nathan White, senior legislative manager at digital rights advocate Access, said in a recent email to supporters. “They’ve been negotiating in secret and came up with a Frankenstein bill – that has some of the worst parts from both the House and the Senate versions.”

  • According to the letter’s signatories, the proposed “conference” legislation would:
  • Create a loophole that would allow the president to remove the Department of Homeland Security, a civilian agency, as the lead government entity managing information sharing.
  • Reduce privacy protections for Americans’ personal information.
  • Overexpand the term “cyber threat” to facilitate the prosecution of crimes unrelated to cybersecurity.
  • Expand already broad liability protection for information disclosure.
  • Pre-empt state, local or tribal disclosure laws on any cyber-threat information shared by or with a state, tribal or local government.
  • Eliminate a directive to ensure data integrity.

They are going to keep trying until we put a stake through the heart of the surveillance industrial complex.

That is Going to Leave a Mark………

Tervor Noah had a very special guest on The Daily Show last night, Jon Stewart:

Senate Majority Leader Mitch McConnell has been obstructing a bill to pay for the health coverage for the first responders at the Twin Towers because he wants to hold it hostage to a change in oil export policy.

Jon Stewart came out of retirement, and appeared as a guest.

He also went down to Congress to harangue what were clearly uncomfortable Senators and Representatives.

Watch the whole thing, particularly the round table toward the end.

It sucks to be Mitch McConnell on even the best of days, this makes it suck even more.

Because Comedy Central vids autoplay on some platforms, I have put the video after the break

Tha Bankster’s Lose One

In the highway bill, congress has significantly reduced dividends paid by the Federal Reserve to banks:

Big banks will lose a portion of a multibillion-dollar government handout they’ve enjoyed for over 100 years, thanks to a compromise highway bill released Tuesday. One estimate pegged the loss to the banks at $8 billion to $9 billion over a 10-year time frame.

The bill, as it emerged from a House-Senate conference committee, pays for roads, bridges, and mass transit projects in part by reducing what is currently a 6 percent annual dividend on stock that the big banks buy to become members of the Federal Reserve system.

Fed membership offers many perks, from access to processing payments to cheap borrowing. But the dividend could be the sweetest gift, because banks cannot ever lose money on the stock; they’re even paid out if their regional Fed bank disbands.

Despite the total lack of risk, member banks have received the 6 percent dividend payout every year since 1913.

So for example, JPMorgan Chase, which has held stock since then, has made back its investment six times over without risking any loss. And if the bank stock was in place before 1942, that dividend payment is tax-free.

Originally — that is, 100 years ago — the Fed offered the dividend to entice banks into the new Federal Reserve system. But nationally chartered banks are today required by law to become members, and all banks must abide by the standards of membership. So the dividend is just a vestigial sweetener that never went away, pumping billions of dollars in public money to the banks for no discernible reason.

………

Senate Majority Leader Mitch McConnell, seeing no better option, stuck a version of it in the Senate highway bill. The provision called for cutting the dividend from 6 percent to 1.5 percent, eliminating $17 billion in big-bank subsidy over a 10-year period. It passed.

The banks freaked out, aided by Fed Chair Janet Yellen, who warned of unnamed “unintended consequences.” Through a well-worn lobbying strategy, they managed to get the House of Representatives to remove the dividend cut and replace it with a raid on the Fed’s capital surplus account, which is used to cover losses on the balance sheet.

In other words, Yellen and the Fed quietly preferred flushing their own surplus account over denying banks their full entitlement.

But when the final bill was released Tuesday, the dividend reduction remained in there, albeit with some modifications.

The reduction now applies only to banks with over $10 billion in assets, compared to the $1 billion threshold in the original bill. Instead of cutting the dividend to 1.5 percent, the rate will now match the interest rate of the highest-yield 10-year Treasury note at the point that the dividend is due. For context, the high yield at the last Treasury auction was 2.304 percent.

There are, however, some more giveaways to the banksters in the bill, including an attempt to exempt even more mortgage lenders from Consumer Financial Protection Bureau oversight.

Cui Bono?

As Bear who Swims observes, it turns out that the latest “bipartisan” efforts to reform criminal justice have been hijacked by a Koch brothers attempt to make it next to impossible to prosecute white colar crimes:

For more than a year, a rare coalition of liberal groups and libertarian-minded conservatives has joined the Obama administration in pushing for the most significant liberalization of America’s criminal justice laws since the beginning of the drug war. That effort has had perhaps no ally more important than Koch Industries, the conglomerate owned by a pair of brothers who are well-known conservative billionaires. Now, as Congress works to turn those goals into legislation, that joint effort is facing its most significant test — over a House bill that Koch Industries says would make the criminal justice system fairer, but that the Justice Department says would make it significantly harder to prosecute corporate polluters, producers of tainted food and other white-collar criminals. The tension among the unlikely allies emerged over the last week as the House Judiciary Committee, with bipartisan support, approved a package of bills intended to simplify the criminal code and reduce unnecessarily severe sentences.

………

One of those bills — which has been supported by Koch Industries, libertarians and business groups — would make wholesale changes to certain federal criminal laws, requiring prosecutors to prove that suspects “knew, or had reason to believe, the conduct was unlawful,” and did not simply unknowingly violate the law.

Many laws already carry such a requirement — known as “mens rea” — but Congress left it out of many others, and libertarian groups say that has made it too easy to unknowingly violate obscure laws. Some environmentalists argue, however, that the real motive of Charles Koch, the philanthropist and the company chairman, in supporting the legislation is to block federal regulators from pursuing potential criminal actions against his family’s network of industrial and energy companies, a charge the company denies.

………


The proposed standard, Justice Department officials said, might have prevented guilty pleas in a variety of cases, such as the charges filed in 2013 against Jensen Farms of Colorado for failing to adequately clean cantaloupe, resulting in an outbreak of food-borne illness that was cited as a factor in at least 33 deaths. It also might have prevented the plea in the 2012 charges against the owner of a pharmacy who sold mislabeled, super-potent painkillers blamed in three deaths.

The same powers, officials said, have allowed the government to pursue charges against major corporations, like the 2011 conviction of Guidant, the giant medical device company, for failing to report safety problems with defibrillators, used to restart heartbeats.

………

Mark V. Holden, general counsel and senior vice president at Koch Industries, acknowledged in an interview this week that the company’s efforts to pursue revisions in federal criminal law were inspired in part by a criminal case filed 15 years ago against Koch Industries claiming that it covered up releases of hazardous air pollution at a Texas oil refinery. Those charges resulted in a guilty plea by the company and a $20 million penalty.

That case, Mr. Holden said, demonstrated that the Justice Department too often pursues criminal cases even when the accused had no criminal intent. The company itself discovered the problems and notified the authorities, he said, meaning the company did not knowingly violate the law.

Yeah, right.

Koch industries did nothing wrong.

If you believe that, I have some swampland in Florida for you.

I was wondering when the other shoe would drop.

I kind of figured that there would be a Republican turd in the punch bowl.