Saturday, December 20, 2014

No Virginia, There is no Santa Claus…


No Virginia, There is no Santa Claus… but better still, there is a Senator Elizabeth Warren.

With gratitude to Virginia O’Hanlon, and The Sun… J.M. Hamilton (12-20-14)




Dear Editor, I am 8 years old.

Some of my little friends say there is no Santa Claus.

Papa says, “If you see it in The Sun, it’s so.”

Please tell me the truth, is there a Santa Claus?

Virginia O’Hanlon

115 W. 95th St.

 


Virginia O’Hanlon, a real girl, wrote a real letter.

Virginia, your little friends, the plutocracy, are wrong. They have been affected by the skepticism of a skeptical age. The political elite do not believe except what can be denominated in campaign contributions. The economic and political elite think that nothing can be which is not comprehensible by their little minds. All minds, Virginia, whether they be corrupt politicians or monopolist, are little. In this great universe of ours man is a mere insect, an ant, in his intellect, as compared with the boundless world about him, as measured by the intelligence capable of grasping the whole truth and knowledge.

No, Virginia, there is no Santa Claus, but better still, there is a Senator Elizabeth Warren.  The Senator exists as certainly as love and generosity and devotion exist, and you know that they abound and give to your life its highest beauty and joy. Alas! How dreary would be the world if there were no Senator Warren! It would be as dreary as if there were no Virginias. There would be no faith in the political process, no populism, no democratic means to make tolerable this unjust existence. We should have no enjoyment, except in the material. The eternal light with which childhood fills the world would be extinguished.

Not believe that Senator Warren will run for President! You might as well not believe in PACs, 501(c), grass roots movements, or the power of social media! You might get your papa to hire men to watch Massachusetts on Christmas Eve to find Senator Warren, but even if they did not see Senator Warren railing against Wall Street, what would that prove? Nobody sees HOPE that there will be a President Warren, but that is no sign that there will not be a President Warren. The most real things in the world are those that neither children nor men can see. Did you ever see robber barons dancing on the lawn? Of course not, but that’s no proof that they are not there. Nobody can conceive or imagine all the wonders that are unseen and unseeable in the world.

You tear apart the Wall Street cartel and see what makes the noise inside, but there is a veil covering the unseen world which not the strongest military, nor even the united strength of the military industrial and intelligence complex could tear apart. Only faith, fancy, poetry, love, romance can push aside that curtain and view future President Warren’s super natural beauty and glory beyond. Is it all real? Ah, Virginia, in all this world there is nothing else real and abiding.

No President Warren! Thank God she lives and her fight lives forever. A thousand years from now, Virginia, nay 10 times 10 thousand years from now, Senator Warren’s words will continue to make glad the heart of humankind.


Copyright JM Hamilton Publishing 2014

Friday, December 12, 2014

Why Serve?


Why Serve?

Kissinger: In my life, I have almost always been on the side of active foreign policy. But you need to know with whom you are cooperating. You need reliable partners -- and I don't see any in this conflict (Syria).

Kissinger: I have learned, as I wrote, that history must be discovered, not declared. It's an admission that one grows in life. It's not necessarily a self-criticism. What I was trying to say is you should not think that you can shape history only by your will. This is also why I'm against the concept of intervention when you don't know its ultimate implications.

Kissinger: I'll tell you what I thought at the time. I thought that after the attack on the United States, it was important that the US vindicate its position. The UN had certified major violations. So I thought that overthrowing Saddam was a legitimate objective. I thought it was unrealistic to attempt to bring about democracy by military occupation.

SPIEGEL: Why are you so sure that it is unrealistic?

Kissinger: Unless you are willing to do it for decades and you are certain your people will follow you. But it is probably beyond the resources of any one country.

Spiegel Online - International  11-13-14


By J.M. Hamilton (12-12-14)

In 1988, Governor Michael Dukakis (MA – D) lost his presidential election to George H.W. Bush, largely, due to the perception that he was soft on crime.  This ushered in a period where a fear mongering GOP attempted to label every Democrat as “soft on crime.”  The Democratic Party, rather than sticking to its principles on appropriate and impartial sentencing (many Dems objected to the death penalty), rushed – in a game of political one-upmanship – alongside the GOP - to build the criminal justice industrial complex.

Today, nearly forty years later, most Democrats, and more than a few Republicans, recognize President Reagan’s federal mandatory sentencing guidelines, the criminal justice industrial complex, the steady privatization of our prison system, and the militarization of our local and state police agencies for what they are: a complete and unmitigated disaster. 

A national disaster that is a threat to the rule of law; that has led to the highest incarceration rate in the developed world (totalitarian China has a lower incarceration rate than the U.S.); has had the pernicious effect of disenfranchising minority voters; incarcerated and ruined the lives of many young citizens and persons of color for victimless crimes, like drug possession; and has led to the complete melt down of race relations and police and societal relations in our country.  Forty years – two generations - is a long time for both political parties to figure out that their “get tough” moves on crime were intolerant, a waste of taxpayer resources and human lives, and worse still, completely racist.

Today, the Democratic Party (or GOP-Lite), led by President Obama, appears ready to repeat a similar mistake.  The Democratic Party appears all too ready to begin following a fear mongering GOP, once again, down the rabbit hole of foreign policy and by ignoring President Washington’s admonishment:  to beware of foreign entanglements.

The result of the GOP’s blind over-reach, globally, has been failed wars in Iraq and Afghanistan.  Like Vietnam before it, Afghanistan and Iraq nation building has wasted hundreds of billions in taxpayer dollars, led the Federal Reserve to print trillions of dollars to pick up the tab, and caused record amounts of suicide among our fighting men and women; and above all, Iraq and Afghanistan have proven once again, that indigenous people (governed by corrupt puppet regimes), who are unwilling to fight for their own freedom, will not fill the vacuum – when American forces depart.  Hence, leaving a disaster in the making, nearly every time America reaches for the DOD for nation building purposes.

Now our President, who many of us support, and who campaigned on a pledge to pull the U.S. out of two failed GOP led wars, Iraq and Afghanistan – quite possibly in a duel of political one- upmanship, yet again – is doubling down and leading this nation to war. 

Sound familiar? 

POTUS has started up fresh wars in Iraq and Syria, and appears to be backtracking on winding down the Afghanistan nation building exercise.  (The President has also steadily back peddled on his pledge not to place boots on the ground in Iraq and Syria.)  Per departing Defense Secretary, Mr. Hagel, local Afghanistan forces – after more than a decade of U.S. occupation – need more time to get their act together.  Good luck with that.

Question:  Thirty to forty years from now, will a future generation of Americans and both political parties wake up from our national nightmare of foreign adventures to recognize – like the building of the criminal justice industrial complex – that it was all an epic waste of lives and resources?  Foreign adventures that were, and are, a monumental waste of taxpayer money, little more than a boondoggle for the military industrial complex, war profiteering defense contractors and multinationals, and a complete waste and ruin of the lives of the men and women who proudly serve this nation (and a disaster for the indigenous peoples we allegedly, went in to protect, and bring hope and democracy to)?

And the U.S. can place the forty-year old war on drugs right up there in the pantheon of ineptitude as well.  It’s a war that should have never been waged.

To that end, the point of today’s piece:  Why serve?  Or more specifically, why serve in our nation’s armed forces?

Culturally, it’s no accident that Hollywood continues to glorify WWII with new movies, but films portraying Afghanistan and various Iraqi conflicts often take on a more ominous tone, or are morally ambiguous (more akin to Vietnam movies), and with good reason.  When one compares the costs of the lightning raid by Special Forces on OBL’s compound, versus the trillions spent, and the hundreds of thousands of lives wasted on the two nation building exercises (designed to eliminate a similar or the same threat)… well the cost/benefit analysis doesn’t add up.  There is no comparison.  The abuse of the men and women who serve doesn’t stop there, however.

Not only are our soldiers poorly paid while serving, but upon returning home, many are forsaken by their country, cast off as refuse, with poor employment prospects, and worse health care (as illustrated by the recent scandals that rocked the V.A.)  An inordinate amount of the men who serve their country end up homeless, suffering from PTSD.

How about the circumstances that placed these men and women into harms way to begin with?  It’s well documented that America has been led into war, time and time again, through misinformation, falsehood, and contrived and slanted data.  The true motive for Iraq was the ocean of oil it contains – a resource that is now in abundant supply within the United States. 

As for the politicians, who are all too eager to send our troops into battle?  Unlike previous generations, the majority of the members of today’s U.S. Congress have never seen a battlefield, let alone served.  And as there is no draft, it is highly unlikely that their sons or daughters would ever be placed in harms way.  As taxes are no longer raised to pay for wars (wars are now financed), and there is no draft, the general public rarely offers focused, or sustained, disapproval of U.S. war efforts, no matter how badly mismanaged.  And that is by design.  The corporate run news media flashes a couple of beheadings on the nightly news, and our martial response is often exponentially disproportionate, poorly calibrated, and with little thought given to the repercussions or unintended consequences.   

It gets worse still, because thanks to SCOTUS’ Citizens United and McCutcheon decisions, arguably, the Congress and the Executive branch – in no small way – are compromised into doing the plutocracy’s bidding on foreign policy matters.  This means the true power brokers in America, the plutocracy (the Business Roundtable, the Chamber of Commerce, Wall Street, and Private Equity barons) call the shots, and the Congress is all too happy execute their requests.   The fact that the nation, as some have argued, went into Iraq, so that Mr. Cheney’s Halliburton could start up operations in the region, is a terrible reason to fight a war. 

How many of the nation’s youth were led into joining the war effort, post 9-11, with the best of patriotic intentions, when the reality was they were not fighting for democracy and America, but rather were fighting so that Exxon Mobil could begin sucking up Iraqi oil?  Do we really want our nation’s fighting force dying and killing for the Royal House of Saud, Qatar, or so that Exxon can make an extra billion on its next quarterly statement? 

What have our rulers, the plutocracy, done to demand such blind allegiance from our armed forces and our citizens?  The U.S. economic power elite have shipped jobs offshore in record numbers, through free trade agreements, outsourcing, and globalization.  As noted in Barron’s: through M&A, bankruptcies, and private equity, the plutocracy has cut down the number of publicly traded companies from 8,823 in 1997 to 5,008 at the end of 2013.  This industrial and service sector consolidation -  killed jobs and opportunity - has made the rich wealthier, caused gross wealth and wage inequality, led to stagnating wages, harmed the economy and the tax base, and led to monopolies and cartels (that produce a predatory tax on society, and a drag on the economy through monopolistic profits).  Worse still, the power elite are now fleeing the country, that has long protected them and their assets, in the latest tax dodge called inversions.  How’s that for instilling loyalty and trust?

Perhaps contributing most to foreign policy chaos, is the military industrial complex or MIC.  The revolving door between private defense contractors and the armed forces’ generals and officer staff is ceaselessly spinning.   This means we have an organization (the DOD) that is a dedicated advocate for war to resolve all the nation’s problems, both foreign and domestic.  Don’t understand something, don’t like some foreign head of state or some regime, is a dictator nationalizing domestic resources, is the U.S. economy stagnating, need a distraction from political stalemate and the ineffectiveness of our government to solve problems….   forget about an exit strategy, and unintended consequences be damned: WAVE THE FLAG AND BOMB IT, ALREADY!

It’s the GOP way.  And rapidly becoming the Democratic way, where the end always justifies the means.  That’s precisely the problem with these wars: the means and the process, unlimited war, has become the end unto itself.



Make no mistake about it, we should all cherish and honor the men and women who serve this country.  We can strongly disagree with the military missions our economic and political leaders send our armed forces on, but the men and women in uniform have no choice but to execute upon their orders.  My grandfather served in WWII, within the European theatre, and my father served in the U.S.A.F. for thirty-five years, during the height of the cold war.  I have a strong appreciation and a sense of gratitude for what these men and women do everyday, and the sacrifices their families make for our nation.  While our nation’s history is rich with battles and wars fought for righteous and moral causes, recent conflicts and nation building exercises do not reflect well upon our economic and political leadership, nor our nation.  In fact, they make us look morally bankrupt, and are financially, bankrupting the nation.

In nearly all instances where our military was deployed from Vietnam to Syria, the U.S. had made the situation worse, while facing no existential threat to our national security.  In fact, it is the wars themselves and the resulting blowback, that have created a threat to our national security: by creating deficit spending, by over-extending our military on missions it is ill suited for, and by abusing the men and women who serve.  Dr. Kissinger is 100% correct, and as J.M.H. has previously argued: nation building should be conducted by an international body, not solely the U.S. military.

Record poppy production in Afghanistan under U.S. watch, notwithstanding.  Torture conducted by the CIA as a matter of routine, like brushing your teeth in the morning.  An intelligence community (FBI, CIA, NSA, etc., etc., etc) that has run completely off the rails, violated the nation’s civil liberties and due process, created a police/surveillance state, and that is beyond the reach of any reasonable controls or guidance.  These are just a few examples of where the DOD and the intelligence community are entirely out of control, and conducting their affairs in a morally and logically unconscionable manner.

Some fifty odd years ago, in his farewell address to the nation, the greatest General who ever lived, President Eisenhower, called it:

We cannot mortgage the material assets of our grandchildren without asking the loss also of their political and spiritual heritage. We want democracy to survive for all generations to come, not to become the insolvent phantom of tomorrow.”

As such, and in this current environment, I would be very hard pressed to recommend to my son that he serve in the armed forces.  Instead, if he wanted to serve his country, I would recommend that he join the peace corps.



President Obama, in 2008, campaigned on a desire to end two failed nation building exercises.  And the American people, wisely, supported the President in that regard.  What should have come as a surprise to no one was that these two wars, like Vietnam before them, would come to a very bad end (just as I predicted in 2010 in my piece, No More Afghanistans).  No less surprising is that the GOP, who brought these circumstances upon the nation, would attempt to hang their foreseen failure upon the current White House occupant.  But shame on the great communicator, President Obama, for forgetting to mention to the American people, the highly probable collapse of a corrupt and unstable Iraqi regime.

More recently President Obama characterized his foreign policy as not doing “stupid stuff” (which this blog has applauded), but how smart was it to go into Syria to fight a force, ISIL, that has no nukes, no air force, and no weapons of mass destruction?  (Or was it just politically expedient for the President, and necessary to create the greatest opportunity for Hillary’s coronation?)  Moreover, the beneficiaries of our martial efforts in the region appear to be Big Oil companies (Halliburton, Exxon, et al.), Iran, various oil rich Arab monarchies, and Assad, the Syrian dictator.  Secretary of State John Kerry, who once asked how can we ask our soldiers to “die for a mistake” called Vietnam, now is the biggest cheerleader for the latest Iraqi/Syrian war.  As for the rogue states who played no small part in the formation of ISIL, The Royal House of Saud and Qatar…. As usual, the U.S. is addressing the symptom (ISIL) and not the problem, our so-called allies (Saudi Arabia and Qatar).

Until there is campaign finance reform in this country – coupled with term limits, extravagant sums of money are divorced from the political process, and until the DOD and Intelligence agencies are brought under control, there should be a moratorium on any and all wars, unless the U.S. and its territories are invaded.  Our nation’s warriors are fighting and dying in foreign lands for a lie, for major corporations, and to enrich DOD contractors.  And so that politicians, beating the fear drum, can be reelected.

Americans now realize that our criminal justice and judicial system is an abomination…. How many lives must be wasted, and trillions burned through by the DOD, before we recognize our foreign policy for what it is, a complete disaster?

Time for some fresh blood and some new thinking is this regard; time for Senators Warren and Paul to run for higher office.

 
P.S.

J.M.H. has been writing about monopolies and cartels for a few years now, calling them an unholy alliance between government and the private sector.  Crony capitalism at its worst, monopolies feed upon the consumer, kill jobs and opportunity, stifle innovation, and are a tax upon society, through monopolistic profits.  And at long last much of what I have written has played out before our eyes in real time, with the collapse of Big Oil and OPEC.  You want to stimulate the economy and create jobs (forget about the FED), expand the tax base, and eliminate the Federal debt… politicians take note…. Kill monopolies, oligopolies, monopsonies, and cartels.



There’s no greater stimulus under the sun, and no greater preserver of capitalism's best attributes.


Copyright JM Hamilton Publishing 2014

Wednesday, November 26, 2014

Populism is Not the Problem….



Happy Thanksgiving!  A 2010 flashback… the more things change, the more they stay the same.  Alas in more recent years, the Federal Reserve has become the primary purchaser of U.S. debt, having surpassed China; otherwise, the following piece on many levels still rings true.     - J.M.H. (11-27-2014)


Populism is Not the Problem….

By J.M. Hamilton  (2-8-10)

Populism, as decried in the New Yorker article, is not the problem…. 

Perhaps, populism is sometimes, a little misguided, yes, but in fact, it’s the solution.  As usual the instincts of the American people are, in fact, highly accurate.   And any politician, who wants to survive and navigate these troubled times would do well to heed, get out in front of, and attempt to steer public opinion.   Such is the calling of President Obama, the second coming of the Great Communicator, leading up to these mid-term elections!

As for the populist rallying cry of the Tea-Bag crowd, “cut taxes,” this originates from the public’s inherent fear of big government and rising fiscal deficits.  Obama was elected on a platform of change, and what his administration gave the nation was not change, but a redux of the Clinton’s first years in office.   The bill that was about to be passed by Congress, was NOT healthcare reform (or healthcare cost management), but rather, a serious power grab and an expansion of the welfare state.

And hence, the Massachusetts’ miracle, or debacle, depending upon one’s views!

What Mr. Obama really should have spent his first year doing, instead, was giving the nation real change, by addressing the public’s need for jobs, and shearing Wall Street, and cutting it down to size, via the Volcker Rule and much, much more.  In brief, the taxpayer owned banks should have already been broken up, which – allegedly (per the banks anyway) – creates dis-economies of scale, and hence, by definition, more jobs, via greater inefficiencies.   Breaking up the banks into their core constituent parts would also go a very long way towards eliminating systematic risk; and breaking them up would help prevent the next financial melt-down…. A financial meltdown that this nation can ill afford.

President Obama would have been perceived as a real agent of change had he taken on Wall Street, and given government support to the people, instead of government support/welfare to Wall Street.  Instead enormous piles of the President’s political capital were wasted on millionaires and billionaires.

And what has it got the President?

The banks are now lobbying against real reform, and they are planning Obama’s overthrow, by biding their time, and NOT lending to small and mid-sized businesses.   As we read in today’s NY Times, the banks are in fact getting ready to back the very same Republican party that ran this nation into the ground.  That’s right, the Republican party that has ran record, annual, budget deficits, since Reagan, and unleashed today’s financial crisis, via soft money policies and bank deregulation.  Okay, the Democrats were not exactly absent for the last thirty years – but rarely were they in charge of the executive branch, except for Clinton – who actually ran budget surpluses.

In fairness to President Obama, Mr. Paulson, Goldman Sachs Alum, did set up the President, by attaching little or no strings to TARP lending.   But I digress…. It was Mr. Obama who brought Tim Geithner on board.

Had this administration spent its first year reining in Wall Street’s worst tendencies, and had the President done more to stimulate the economy and create jobs (instead of giving hand outs, on top of hand outs, to the banks)…. One wonders if the Tea-Bag movement would have ever gotten off the ground?  But what we got instead was not change, but business as usual in Washington: finger pointing, half measures, and stalemate.  Exactly, what the Republican party delivered for the last eight years.

As for the populist….it’s important for all of us to remember that tax cuts are always nice, but unless they are coupled with reductions in government spending, they are no better than government spending that is not supported by tax revenue (borrow and spend).   In short, tax cuts w/out corresponding reductions in government spending (Republicans) are no better than increased government spending which is unsupported by an increase in government tax receipts (Democrats), because they both lead to …What?…. greater government borrowing, greater dependence upon our enemy, China, and an ever rising national debt to GDP ratio.

It would be grand to emulate the great supply-siders of the 20th Century:
  Kennedy and Reagan!  (Kennedy proposed reducing the top individual tax rate from 91% to 65%... no your eyes do not deceive you, and the corporate tax rate from 52% to 47%.  Who knew JFK was a radical?)

However, our National Debt no longer allows such extravagances.  Instead, it is this President’s challenge, to create jobs and spur economic growth through means other than government spending.  And what better way to create jobs than to break up the banks, and insist that any foreign banks – operating on U.S. soil – also adhere to U.S. bank law (Volcker Rule, Et Al.), and also be cut down to their proper size.  Otherwise, foreign banks who do not adhere – good-bye.
 

President Obama was very wise to embrace Messrs. Volcker and King’ counsel, post Massachusetts.   Healthcare reform – real cost containment – can wait for another day, like when the unemployment is below 6% again (for two consecutive quarters), and the banks are made to heel!

The President has to do all this with both governmental arms tied behind his back, that would be the House of Representatives and the Senate.   Let us all pray for President Obama’s success!  Obama’s success is our country’s success.   Given the incompetence of the U.S. Congress, the President truly will need divine intervention, and truly deserves our best wishes.   Time for Obama to channel, not only Reagan optimism, but the trust busting courage of Teddy Roosevelt.

 

Copyright JM Hamilton Publishing 2014

Saturday, November 15, 2014

The End of History


The End of History


By J.M. Hamilton  11-15-2014

Euless, Texas  - (Circa ’89, ’90 and ’91).  From my balcony on a clear Texas night, one could see maybe a dozen aircraft in the air, circling D/FW International or taking off.   It was a spectacular sight, although I sometimes wondered if one of those aluminum birds might come down upon me.  

No less spectacular was the fall of the Berlin Wall.  The 25th anniversary of which, we recognize this month, here and now, November 9th, 2014.  For a young Republican, an ardent conservative, who detested freedom crushing dictatorships and totalitarian regimes… that was it.  The fall of the Berlin Wall was the cat’s ass.  Watching East-Germans scale those walls made me very proud to be an American and alive to witness that event.  That feeling was only surpassed two short years later, with the collapse of the Soviet Union. 

The exponentially smarter of the two Bush presidencies was in power, Mr. George Herbert Walker Bush.  And at the time, I confess, I did not understand the man.  Bush Senior, or Poppy, as the clan is said to call him, reneged upon his “read my lips - no new taxes pledge,” and it would cost him a second term.  Then again, Mr. Bush Sr. never believed in what he termed – when campaigning against Ronald Reagan  -“voodoo economics” (aka tax cuts for the rich), which, by ’91, was grounds for excommunication from National Review and the conservative movement. 

For many of us, the elder Bush Presidency was a riddle, and by today’s GOP standards, moderate and entirely unelectable.   He even loaned money to Soviet Union to help Gorbachev prop up the communist regime.  Why was a Republican President helping to prop up the nemesis of freedom?  The Koch Brothers' owned CATO Institute also wanted to know.  And then there was the first Gulf War, where for the first time in my life time, I saw a U.S. President utilize military force to protect commercial oil interests in a highly successful manner: deftly, with an international coalition, a lightning quick victory, and no nation building.

And now, through the prism of time, we can look back and see: this man was right about nearly everything.  H.W. knew federal budget deficits were not sustainable indefinitely, contrary to what Mr. Richard – “deficits don’t matter” – Cheney would have us believe.  While one can disagree with Mr. Bush (H.W.) about going into Iraq in the first place, he clearly knew how to properly use force and correctly eschewed nation building  (The opposite of the Bush Presidency to come).  And as for supporting the Soviet Union, H.W. – a former CIA Director – knew that when the U.S.S.R. crumbled, all sorts of hell was likely to break out in the world, in the forms of religious wars, ethnic cleansing, and popular uprisings. 

Of course, the Soviet Union fell because it was over-extended militarily, bogged down in a nasty war of attrition in Afghanistan (caught in a nation building exercise), its finances were a complete mess, and its economy and economic system didn’t do a whole lot for its people (but consign them to egalitarian poverty).

Sound familiar?  Yes, history repeats time and time again.

For a brief shining moment, in the early ‘90s, America had it all.  It was supposed to be the end of history… as utopian democracy and capitalism would engulf the world, making everyone prosperous beyond belief.  As the only super power left standing, the U.S. could have influenced dictatorships to go democratic, instead of practicing realpolitik by propping up authoritarian regimes, globally, for quarterly profits and short-term commercial gain.  The U.S. could have raised taxes – as Mr. Clinton later did – w/out harming or slowing down the economy; hence, putting money away for the future good of our country and the next bust-cycle, instead of turning on the Fed’s printing presses now, in our time of need. 

Many of today’s problems seem to harken back to the late eighties/early nineties:  the collapse of the Soviet Union, and the decades of strife and war that have followed (some of it of America’s making); not raising taxes during relatively or highly prosperous times (as the Keynesian model proscribes), and the resulting Federal deficits as far as the eye can see (much of these, under Republican administrations and GOP dominated Congresses, no less); and later in the decade, the Democratic Party turning politically right under the Clintons, with their love of Wall Street banks and the resulting campaign contributions, and the Clintons speeding up the process of banking deregulation. 

The foundation for the gross wage & wealth inequality we see in this country today, goes back to the late eighties and early nineties: tax cuts for the rich; the Federal Reserve engineered economy – led by the Maestro; an economy built on debt and finance; and banking and commercial deregulation  (You have to give Reagan, H.W., and Clinton credit.  At least they were smart enough to stay out of long term military engagements, particularly in the Middle-East.)  In short, we are where we are as a nation, because both political parties have bought into the Republican agenda for the last thirty-five years.  Arguably, the only difference between the GOP and GOP-Lite (the Democratic Party) are a handful 50 year old social issues, which goes along way towards explaining the 2014 mid-term route for the Dems.   After all, why wear a condom, when you can go all the way, bareback with the GOP?  (Ponder that analogy, but only for a moment.)

Both parties pander to the business round table, the chamber of commerce, the MIC, and the plutocracy’s agenda, so that in essence we now live in a one party state.  So why vote?  Voters showed their disdain for the one-party state in 2014, by turning up in record low numbers.



We are all slaves to history.   As much as we like imagine our Presidents as omnipotent and all-powerful, they are all too human and highly limited it what they can accomplish.  Their aspirations and goals for the nation and its people, as well as themselves, often fall victim to history and forces beyond their control. 

Fast forward to today, and President Obama.  Mr. Paul Krugman, who I generally admire, recently in the pages of the Rolling Stone, called the President transformative and consequential.   Really?

Granted, just my opinion, but President Obama to date struck me more along the lines of a caretaker President (a preserver of the status quo, and a great friend of the plutocracy), and what a competent Republican administration should look like; President Obama to me, appears more along the lines of a Herbert Walker Bush, than the revolutionary radical the GOP often attempts to portray him to be.  And I think if we viewed Obama’s presidency honestly, and from the perspective of where the GOP was at under Reagan and Herbert Walker Bush, or say even an Eisenhower, vis a vis, today’s Molotov cocktail throwing GOP, why yes, of course, the analysis holds.  

But don’t take my word for it, let’s let numbers and facts speak for themselves.  Let’s call the following analysis the duality of the Obama Presidency.

·      President Obama came into office inheriting the worst economic crisis, since the Great Depression, and two badly botched and grossly mismanaged nation-building exercises.  Moreover, the prior administration – Bush (W) – The Younger – didn’t run a budget surplus in a single year of his eight years in office.   Financial deregulation, from Reagan through Bush II, brought the nation to its knees.

·      So what did the “radical/transformative” Obama do?

·      All the bank bailout measures of the prior administration, were kept and expanded upon by the Obama administration.

·      Not a single bank executive or CEO responsible for the crisis, or subsequent crimes (FOREX, LIBOR, commodities, HFT, derivatives/swaps, money laundering for terrorists, the shafting of consumers and clients, accounting scandals,  etc., etc.) saw jail time, or even faced charges.  Obama’s AG, Mr. Holder, said the Cartel was too big to prosecute.

·      The banks – under Obama  - have grown bigger, more concentrated, and more powerful, as have the economic and power elite.  And Dodd Frank isn’t worth the paper it’s printed upon, in its ability to protect the American people.


·      Meanwhile free trade agreements, globalization, the off-shoring and outsourcing of labor, have led to stagnant wage growth and high and higher rates of unemployment/underemployment, for much of Obama’s time in office.   Cheap labor?  What could be dearer to an employer’s heart?

·      In short, under President Obama the rich have grown wealthier, more powerful, and the middle-class and the poor have been hit hard, with unemployment/underemployment, stagnating wages, and home prices that in many markets never fully recovered .

·      Under fiscal blackmail and brinkmanship executed by the GOP, President Obama signed into law an extension of 82% of the Bush (W) tax cuts for the wealthy.   Obama, like Herbert Walker Bush before him, did not believe in “voodoo economics,” but you wouldn’t know it from the 2012 negotiations.

·      President Obama talks a great game on the climate, and the need to cut carbon emissions.  Further validating POTUS’ claims, the DOD says the climate change is now an issue of national security.  Even Exxon officially acknowledges carbon’s impact on the environment, due to its own product.  And yet, tax breaks for big oil continue, the U.S. production of coal, gas and oil has never been higher, and a concerted and focused effort to move to green technologies and a carbon tax, largely abandoned.

·      On Civil Rights, Obama – thanks in large part to VP Joe Biden – did the right thing by the LGBT community; but minorities are still treated like second and third class citizens in our society.  Whether it’s record levels of incarceration for victimless crimes, like drug possession, or a failure on the part of his administration to act on immigration reform, the President has not taken care of our brown and black citizens, and future citizens.  This has played into the GOPs agenda, perfectly, coupled with voter suppression laws.  Their goal: to disenfranchise the non-white voting public.

·      SCOTUS has tarnished and struck a blow at our democracy, with Citizens United and McCutcheon decisions, but have the Dems pushed for political reform, and a roll back of big money and dark pools of money in politics?   Quite the opposite, the Democratic led Senate crushed an opportunity at reform earlier this year.  Pathetic.

·      On foreign policy, Obama started out well enough, by at least not expanding the number of aimless wars this country was in; but he was slow to pull out of Iraq, and slower still to wind down, Afghanistan.   And even though we are energy independent, there always seems to be an excuse to put more and more boots on the ground in the Middle-East.  Despite energy independence, and a whole cornucopia of domestic issues and problems in this country to solve, the President couldn’t help but start up a new war in Iraq and Syria, so that commercial interests,  and big oil, could continue to operate in Iraq.

·      As a constitutional law prof, you’d think Obama would know better, but Obama has been a great defender of the Surveillance state, and the countless number of agencies and bureaus that make up the intelligence community. 

To be sure President Obama has had zero help from Congress, and in particular The House, first run by Ms. Pelosi, and now run by Mr. Boehner.  The House has done everything to thwart the President, but the President, time and time again, appears to be an all too willing accomplice (in the protection of moneyed interests).

The GOP has moved so far right in this country, in the exclusive service of cartels, money and power, that the Democratic Party – from Clinton forward – has all too often followed suit, if not in lockstep (the Dems moving further right than perhaps H.W., himself).  And then the Dems wonder why the long forgotten and economically disenfranchised voters did not show up in support of their efforts, for the mid-term elections?  Quite the mystery, that.

Either the Democratic Party doesn’t have the strength of its convictions, the intelligence to argue its case, or has become little more than a milder form of the GOP.   At the same time, the party that used to have the likes of Lincoln and Roosevelt in their midst, grows increasingly rabid, reactionary, brittle, and regressed, so that many, like myself, had to finally flee, post – W/Cheney. 

One alternative view, giving Obama the benefit of the doubt, is that the President has had to hold himself back for the last six years.  Reasons as varied as re-election concerns, two mid-terms, being the first president of color, and a legitimate and naïve belief that he could bridge the gap in our political system (alas, what gap is there to bridge in single party plutocracy?)…. May have all factored, to some degree, into his political calculations.

Those chains have been removed now.  President Obama has two years to show the nation: who he really is; to illustrate and demonstrate the real differences between the two parties; to re- launch a progressive agenda; to rein in the MIC, foreign adventures, and the Surveillance state; and to above all - fight for the people and give them a reason to vote again.  Most importantly, while government has a critical role to play in balancing out the needs of the many against the incredible wealth and power of the few… President Obama must show that capitalism works and can work for the many.  The primary way to demonstrate capitalism works for all is to bust up cartels and monopolies, insure competition, and where appropriate, mandate regulatory controls. The government is great at many things, but American workers don’t need more palliatives, like unemployment checks and foods stamps.  What America needs is more jobs and higher wages.

This means business executives will need to practice what H.W. Bush might have called a "gentler and kinder" form of capitalism, than what has been practiced in this country as of late.

Shipping more jobs offshore to the Pacific Rim, in another “free trade bonanza” for the wealthy, would be the wrong move.

By turning sharp left (which is where the political center was two to three decades ago), President Obama will reveal today’s GOP for what they are, slaves to moneyed interests and adversaries to the interests of the majority of Americans.

I know all of these things are in the President: courage, conviction, intelligence and empathy.  I voted for him twice. 

Besides…. What’s the President got to lose?  The GOP is going to spend the next two years stalling and holding impeachment hearings, and/or filing litigation against the President for no good reason.

Get out your Veto pens Mr. President, and your Executive Order pens…. this ride is about to get extremely nasty.  Time to make some history.


P.S.

Not too long ago, the NY Times ran a story about how the GOP missed the good ol’ days under a President Clinton (whom they tried to impeach).  Given what President Obama has done for the wealthy and the plutocracy in this country, I wonder if in a few years time, the GOP will be pining away for those good ol’ “President Obama days?”  Under a Warren Presidency, or even a Paul Presidency, that’s entirely possible.

Copyright JM Hamilton Publishing 2014