Thursday, April 23, 2015

Players



Players


Thunder only happens when it's raining
Players only love you when they're playing
-       Fleetwood Mac – Song:  Dreams

To further sweeten the (TPP) deal for Democrats, the package includes expanding trade adjustment assistance — aid to workers whose jobs are displaced by global trade — to service workers, not just manufacturing workers.

   -  Deal Reached on Fast-Track Authority for Obama on Trade Accord, New York Times

By J.M. Hamilton (4-24-15)

From the perspective of a liberal, and a libertarian on foreign policy and monetary issues, President Obama can simultaneously be one of the most exciting and frustrating presidents to watch.  We may not see in our life time a President this gifted, again.   In many respects, President Obama reminds me of a Nixon, sans the personal demons, who won his second term by the greatest popular vote margin, since WWII.  As the President advances in the fourth quarter, or the winter, of his Presidency (free of seeking re-election or a mid-term vote), all Americans can finally get some feel for where the President truly stands. 

He’s bold on Cuba; he’s proposed free community college education.  To his everlasting credit, he’s attempting to negotiate with the Iranians on nukes, rather than reflexively, as the GOP and Israel would have us do, launch into yet another failed Middle-East war. 

Like Nixon, President Obama is capable of pivoting right and left; and to the frustration of Republicans, co-opting some the GOP’s very own policies, and reminding Republicans of their far more moderate recent past (going into the 2012 election, J.M.H. cited President Obama as the GOP’s best candidate).  Since the 2014 midterm, the President has stuck his neck out, exercising executive power, in the face of a reactionary and incompetent Republican led Congress.  In a key event, the exercise of executive power was utilized as a patch for immigration reform.  And the President has pushed for net neutrality.  All great actions. 

None of these efforts are to be taken lightly, and they are certainly encouraging; the public, particularly Dems, recognizes the President’s efforts, and his poll numbers reflect as much.  The real President Obama maybe finally stepping forward and not a moment too soon.  However, one gets the feeling on some of the more crucial issues of the day (campaign reform, legislative and judicial terms limits, wage and wealth inequality, regulatory capture by Wall Street and the roll back of financial regulation, and the growth of monopolies, cartels and M&A activity during his presidency)…. Mr. Obama is not engaged or, perhaps conveniently, has grown tired.  The appearance is, when it comes to protecting the economy and the American people from the predations of the aristocracy, the President still leans towards the plutocracy, monopolist and multinationals (whose support any candidate or political party needs – under current campaign law and SCOTUS rulings - in order to get elected).

Hence, the absolutely critical need for campaign financial reform, the roll back of Citizens United and McCutcheon decisions, the separation between moneyed interests and state, and terms limits for all state and federal officials, especially the judiciary.

In short, when it comes to taking on the aristocracy, most Dems and the POTUS are, largely, MIA.  And as J.M.H. has stated on more than one occasion, there is no greater threat to Americans, the American economy, capitalism, and our national security, than monopolies, cartels, and the concentration of power (economic and political) into too few hands.

To be sure, the Obama Administration makes the second Bush Administration (W) look like amateur hour.  However, for a man who originally campaigned on the basis of “change”…. this debt based economy, the power of the plutocracy, the massive scale of the police and surveillance state, the devotion to an adventurist foreign policy, and the economic and military support for some of the planet’s most nefarious dictatorships, at times it sure feels an awful lot like more of a Bush administration redux, or worse.  I guess when it comes to some of these moral quandaries and vices, it’s just too hard to quit cold turkey.

The bittersweet Obama Presidency reminds me of the old Fleetwood Mac song, Dreams, and in particular the lyrics, “Players only love you when they’re playing.”  President Obama, like all Presidents to varying degrees, played us, the people, the electorate, with promises.  Promises that perhaps he never could have delivered upon, but promises the electorate clearly expected him to fight for.  And with the energy and oratory skills of this President, clearly more could’ve and should’ve been done.  


If we look at the revolving door of Obama Administration friends and officials, one gets the feeling that not only is the “will” non-existent, but clearly, on some of these issues, like Wall Street (banking, hedge fund, and private equity) regulatory reform, there is zero interest in rocking the boat.  The revolving door between administration officials and friends, and private equity, banking, and hedge funds, is spinning full throttle.  Despite the global financial pandemic unleashed in 2008 by many of these same institutions, and the havoc wreaked upon ordinary Americans, the Obama Administration seems to have lost the will to fight this regulatory battle, and like the Clintons before him, may have joined the other side.  The Congress passed a weak/lame law called Dodd-Frank, largely written by the lawyers and minions of the Wall Street cartel, and it has been rolled back ever since.  Moreover, despite billions of dollars in fines paid by Wall Street banks, which will never begin to pay for the damage done to the American and global economies - to date, not a single bank executive has done hard time.  In fact, many remain in power.

And speaking of remaining in power, look at how the turnstyles fly, between government and the private sector:

  • Timothy Geithner moves from Treasury secretary to private equity;
  • General Petraeus loses his job at the CIA for passing secrets onto a lover and confidant, and lands a cushy job at private equity;
  • Deval Patrick, a long time Obama supporter and a former Massachusetts Governor, runs directly into the arms of private equity, upon leaving office; and then there’s,
  • Ben Bernanke, former Federal Reserve chairman, who just picked up a sweet gig at a hedge fund. 

This is just a recent sampling of a long list public officials, appointed by Democratic administrations, who made their way into Wall Street, post government career.  Many more arrive directly from Wall Street, and shadow banking, to slide and slither into highly important government positions – regulating their very own industry.  Much of the deregulation and laissez faire policies that directly led to the 2008 financial crisis came from the Clinton Administration, and his appointees: Messrs. Rubin, Summers, and the former SEC chairman Mr. Levitt (The Clinton financial dereg included, but was not limited to, the repeal of Glass-Steagall, and swaps and derivatives deregulation).   

And why would banking, shadow banking, and private equity hire Dems?  Well that’s easy.  Many of these “Dems,” or GOP-Lite, made policies, printed money, or softened regulation that was highly favorable to an industry that short- sells America, Americans, and our future on a daily basis.  Just to be clear, private equity (PE) thrives on a dysfunctional Congress, the lack of regulation, the free flow of cash from the Fed, and every day is a tax holiday for PE, given the carried interest loophole and the exceptionally low capital gains tax rate.  They call private equity operations “chop shops” for a reason, and that’s because they are literally disemboweling American business, jobs and opportunity, and the U.S. economy.  And yet, the President remains mysteriously reticent about the exodus of his administration’s friends and officials into private equity’s waiting arms.

How are we to trust the Democratic Party to regulate and rein in job killing cartels, monopolies, banking, private equity, and shadow banking…. When many of our top appointed Democratic public officials, either came from Wall Street, or landed there, post White House career?

Gives a whole new meaning to President Obama’s quip to John Stewart: “Change that you can believe in, but...”

And now President Obama, like the Clintons before him, is doing a number on the middle class, yet again, by aligning with Republicans to pass the TPP, free trade agreement.   Before it becomes an election year issue, the White House has crossed political lines, and is doing a full on push for TPP fast track passage (aka TPA). 

Spoiler alert!  Here’s a hint for my readers:  When Obama and Republicans are getting along, and are all buddy-buddy, you know the American public is about to get royally scrod, in favor of the plutocracy.  Obama and the GOP are generally at each other’s throats, so why the bro-fest? 

The TPA/fast track agreement negotiated behind closed doors, has a provision within it offering government support and welfare for displaced American workers.  That’s how egregious this deal is: To make the “free trade” agreement appealing, it doesn’t promise U.S. jobs, but rather, it promises U.S. welfare to workers who will get the shaft (like recent free trade agreements).  The TPP cannot stand public scrutiny, so the agreement itself and the negotiations have become“classified.”  So much for transparency and democracy; only insiders, big business, and the wealthy are privy to this agreement.

Looks like our “liberal” President is in bed with banks, hedge funds, private equity, and multinationals, who benefit most from the TPP’s globalization.  Namely, global tax/regulatory/labor loophole exploitation, at American worker expense.  And many wonder why the country has suffered with stagnation and subpar economic growth for the last seven years.  Look no further than free trade agreements and a government that caters to the predators on the Street and in multinational suites.


Yes, President Obama sounds like the second coming when he’s on the stump, when he needs your vote/love.  He’s a very talented man.  But now, when he needs nobody’s vote/nobody’s money, when the President is finally free, arguably we see his true colors?  Free trade agreement across the Atlantic, same thing (but many Germans aren’t buying).  President Obama, defender of the faith?  More like defender of the people who least need government help and assistance, the plutocracy.  The game is rigged, and under TPP guess who wins, again?



Like the song says, thunder only happens when it’s raining, and the liberal and populist base of the Democratic Party is finally being heard like a roar from the heavens.   Hence, presidential candidate Hillary Clinton’s left turn.  Hillary hasn’t campaigned much since her announcement, and shrewdly she has said less, and offered even fewer details.  To her credit she has placed wealth and wage inequality front and center, so far.  Mrs. Clinton was the first candidate, or prospective candidate, to raise the campaign finance reform issue.  Alas, the devil is in Mrs. Clinton’s unstated details.

It’s a hell of a start coming from a plutocrat. 

The Clintons, however, have a track record of signing off on free trade agreements, like NAFTA; and they have a definitive history of siding with the interests of Wall Street banks, shadow banking, and private equity… and against America’s interests.

Will Hillary and Bill play us all over again?   Whispering sweet promises during the election, only to give their love to their fellow plutocrats (post-coronation), who need it least?

As more then one wag has stated:  The Clintons are always there for you when they need you.  From the perspective of left center field, the Dems are clearly the lesser of two evils, vis a vis the GOP.  Wouldn’t it be wonderful if the next President actually acted upon their campaign pledges and promises, and they showed their appreciation and love to the electorate throughout their term in office?  Wouldn’t it be great if the Dems became something more than the “lesser of two evils,” or GOP-Lite?

Wouldn’t it be nice if the American public was no longer played?

Would’ve, could’ve, should’ve!   Nah, the only thing that will set the system right is if Americans boycott the 2016 election in droves (continue the 2014 trend of record low voter turnouts).  Why give compromised politicians the legitimacy of our vote; why give our crony government, owned and operated by the plutocracy, the legitimacy of our support?

Why indeed?

Copyright JM Hamilton Publishing 2015

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