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House Minority Whip Eric Cantor (R-VA) claims, falsely, that the Obama stimulus package would spend four times as much money on “lawn grass” as it allocates for small businesses. Cantor is referring to the plan’s $200 million allocation for renovating Washington’s National Mall, which fellow Republicans characterize as “earmarks” or “pork.” According to MSNBC and Fox News, Cantor claims: “When you’re seeing four times as much money spent on grass in Washington—that is actually lawn grass in Washington—than you do to help small businesses, that has your priorities backwards.… If you look at the bill that passed the ways and means committee yesterday, for every dollar spent to help small businesses, four dollars is being spent to help upkeep the grass on the lawns of Washington. Again, what does that have to do with a stimulus bill?” The Center for American Progress (CAP), a progressive think tank, accuses Cantor of “completely invent[ing] the truth.” The draft version of the House stimulus plan allocates over four times as much money for “creating small business opportunity”—$880 million—than for renovating the National Mall. The figures also do not include the stimulus plan’s more than $20 billion in business tax cuts. CAP notes that spending money on infrastructure, such as the Mall renovations, is considered one of the most effective ways to stimulate the economy, creating “twice as many jobs as tax cuts.” The tax cuts that Cantor champions—mostly for large businesses and wealthy Americans—are, CAP says, among the least efficient ways to grow the economy. Cantor is also wrong in characterizing the Mall spending as money for “lawn grass.” The money will be allocated for, among other projects, repairing the Tidal Basin’s seawall, adding restrooms to the Mall, and renovating buildings and monuments in Washington’s Capitol district. CAP notes that “all of [this] will require new workers and create jobs.” (Think Progress 1/23/2009)
Eric Cantor (R-VA), the House Minority Whip, while appearing on C-SPAN’s “Washington Journal,” agrees with a caller that the Obama administration is moving the US towards one-party fascist rule. The caller says: “But what really is scaring the rest of us, the other half of us, is the fascism. I mean the true fascism that is happening in this country today.… The belligerent takeover of a one-party system.” Without repeating the terminology, Cantor agrees: “Now as far as a one-party government in here, I think what the public is doing, they’re finally waking up and everybody is realizing that checks and balances are a part of the system and divided government is something that is beneficial to a balanced debate, and something that can produce a better outcome. Which is exactly why Republicans in the House have said, ‘Look, we want to work with our colleagues on the other side of the aisle. We want to try to bring this president back into the mainstream.’” (Armbruster 3/25/2009)
Fox News anchor Bill Hemmer tells his viewers that Fox is “keeping up” with four “interesting” projects reportedly funded by the economic stimulus act. Hemmer says that the research on the projects was done by Fox News itself. He does not tell viewers that the research, and the text and graphics displayed on-screen during his report, come directly from the Web site of Eric Cantor (R-VA), the Republican House Minority Whip. Cantor’s site lists 12 so-called “wasteful spending” projects funded by the recovery act. The four cited by Hemmer are from a section of Cantor’s site called “Washington Watch Report,” which calls itself “your one stop shop to learn about examples of government waste that have been uncovered by House Republicans.” The four projects include a skate park in Pawtucket, Rhode Island; an “art walk” in Rochester, New York; funding for a homeless project in Union, New York; and a transportation study in Ohio. Hemmer and guest Representative Mike Pence (R-IN) list each project and then criticize it. During the segment, Pence twice promotes Cantor’s Web site, and concludes by saying: “I commend you all. I commend my colleagues and the Republicans’ whip’s office with the Washington Watch Web site. People can go online and read more of these—we’re finding more everyday.” During Pence’s concluding statement, Fox News displays a “chyron” at the bottom of the screen that reads, “GOP Watchdog Exposes Wasteful State Spending of Gov’t Money” (see October 13, 2009). (Media Matters 4/23/2009)
At a town hall in Hiawatha, Kansas, Representative Lynn Jenkins (R-KS) tells constituents that the Republican Party desires a “great white hope” to appear, capable of defeating the political agenda of President Obama and the Democrats who lead Congress. Jenkins later apologizes for what she calls her infelicitous word choice. Jenkins lists a number of white Republicans who could emerge to lead the Republican Party against Obama and the Democrats. “Republicans are struggling right now to find the great white hope,” she says. “I suggest to any of you who are concerned about that, who are Republican, there are some great young Republican minds in Washington.” Jenkins names three Republican House members—Eric Cantor (R-VA), Kevin McCarthy (R-CA), and Paul Ryan (R-WI)—as potential leaders. “So don’t, you know, lose faith if you are a conservative,” she says. Local reporters note that the phrase “great white hope” is often associated with racist attitudes in the US, centered around African-American boxer Jack Johnson, who became heavyweight boxing champion in the early 1900s. The reaction among white Americans was strong enough to create a campaign to find a white boxer—a “great white hope”—who could defeat Johnson and reclaim the title for whites. Kenny Johnston, executive director of the Kansas Democratic Party, finds Jenkins’s remarks unacceptable. “The congressman might have avoided this problem if she had stuck to discussing constructive solutions to the health care crisis instead of lamenting the Republican Party’s search for a leader,” he says. A spokeswoman for Jenkins, Mary Geiger, says Jenkins intended no racial overtones in her word choice. “There may be some misunderstanding there when she talked about the great white hope,” Geiger says. “What she meant by it is they have a bright future. They’re bright lights within the party.” (Carpenter 8/26/2009) Reporting on the incident, the news Web site Raw Story notes that in 1910, white boxer James Jeffries, slated to fight Johnson, told reporters, “I am going into this fight for the sole purpose of proving that a white man is better than a Negro.” During the match, a ringside band played the song, “All Coons Look Alike to Me.” Johnson defeated Jeffries. (Raw Story 8/27/2009)
Representative Joe Wilson (R-SC), who shouted “You lie!” at President Obama during his speech to a joint session of Congress earlier in the evening (see September 9, 2009), apologizes publicly for his behavior during the speech. In an e-mail to reporters, he writes: “This evening, I let my emotions get the best of me when listening to the president’s remarks regarding the coverage of illegal immigrants in the health care bill. While I disagree with the president’s statement, my comments were inappropriate and regrettable. I extend sincere apologies to the president for this lack of civility.” He also apologizes to White House chief of staff Rahm Emanuel. (Thrush 9/9/2009; Thrush 9/9/2009)
Slammed by Republicans and Democrats - Before Wilson makes his apologies, Senator John McCain (R-AZ) calls his actions “totally disrespectful,” and adds, “There is no place for it in that setting, or any other, and he should apologize for it immediately.” Vice President Joe Biden, a longtime senator, says the next morning: “I was embarrassed for the chamber and a Congress I love. It demeaned the institution.” Representative Eric Cantor (R-VA) says after the speech: “Obviously, the president of the United States is always welcome on Capitol Hill. He deserves respect and decorum. I know that Congressman Wilson has issued an apology and made his thoughts known to the White House, which was the appropriate thing to do.” Cantor spent much of the speech ostentatiously texting on his Blackberry, and later claimed to be taking notes on the proceedings. Senator Patrick Leahy (D-VT) says angrily upon leaving the House chambers: “I’ve been here for 35 years. I’ve been here for seven presidents. I’ve never heard anything like that.… It strengthens the president, because it demonstrates what he is facing. Most people have respect for the president.” Wilson’s fellow South Carolinian James Clyburn (D-SC) says the outburst is just another in a long line of political attacks by Wilson. “Joe Wilson took our state’s reputation to a new low,” he says. “I thought [Governor] Mark Sanford had taken it as low as it could go, but this is beyond the pale.” (Sanford is under fire for having a long-term affair and spending state tax monies on visiting his paramour in Argentina.) “To heckle is bad enough, but to use that one word, the one three-letter word that was not allowed to be used in my house while I was growing up, is beyond the pale.” Representative Maxine Waters (D-CA) says of Wilson’s outburst: “It was just something that nobody had ever witnessed before. We all felt embarrassed.” Senator Dick Durbin (D-IL) predicts Wilson’s outburst will have political consequences: “The person who said it will pay a price. I think the average American thinks that the president and the office deserve respect, and that was a disrespectful comment. They’ll pay a price in the court of public opinion.” (Thrush 9/9/2009; Associated Press 9/10/2009; Kellman 9/10/2009; Scherer 9/10/2009)
Acceptance - The White House quickly accepts Wilson’s apology. House Speaker Nancy Pelosi agrees, saying, “It’s time for us to talk about health care, not Mr. Wilson.” (Kiely 9/10/2009)
Resolution of Disapproval - House Majority Leader Steny Hoyer (D-MD) says the House may call for a rebuke of some sort against Wilson. “There’ll be time enough to consider whether or not we ought to make it clear that that action is unacceptable in the House of Representatives,” he says after the speech. “I’ve talked to Republican members who share that view.” (Associated Press 9/10/2009) On September 15, the House will pass a “resolution of disapproval” against Wilson, with only six Republicans voting for the resolution. (Rosen 10/4/2009) The resolution is brought in part due to Wilson’s refusal to apologize to either Obama or to the House of Representatives on the floor of the House. (Kiely 9/10/2009)
Using Wilson's Outburst against the GOP - The Washington Post’s Greg Sargent writes that Democratic strategists will use Wilson’s outburst to portray the Republican opposition to reform “as obstinate, angry, and irrevocally hostile towards Obama and his agenda.” (Sargent 9/10/2009) In the weeks after the speech, the Republican Party will use Wilson’s outburst as the centerpiece of a fundraising effort around the nation. The National Republican Congressional Committee will call Wilson a “national figure” who is raising important concerns about health care reform. The House Democratic campaign organization will respond, saying of Wilson and his Republican supporters, “[T]he very liars who heckled President Obama for calling them out are raising millions of dollars off of their rude, dishonest attack.” (Fox News 9/26/2009) Salon’s Joan Walsh asks: “How is it that Obama hasn’t faced a single heckler in his own health care town halls, but he’s not safe from the angry, uninformed mob when he speaks to Congress? The next time you see an important Republican leader claim the town-hell hecklers are just fringe elements and bad apples, remind them of Rep. Wilson.” (Walsh 9/9/2009)
Raising Millions - In the days after the speech, Wilson will send e-mails to his supporters claiming to be the target of “liberals who want to give health care to illegals” for his outburst, and asking for donations. Wilson’s campaign will claim that it raises over $1 million in donations in the first 48 hours after the speech. (CNN 9/12/2009) By the time the September 30 deadline passes, Wilson and the challenger for his House seat, Rob Miller (D-SC), a retired Marine, will have raised over $4 million between them. Wilson will attend fundraisers as far afield as Michigan and Missouri. When Wilson boasts of being given “hundreds of invitations” to appear with Republicans in other states, Miller will retort: “He’s out there on his ‘thank you tour.’ He should be doing an apology tour. He should be apologizing to every teacher, every law enforcement official, every man, woman, and child in South Carolina for being disrespectful to the president.” (Rosen 10/4/2009)
The progressive media watchdog Web site Media Matters releases the results of an analysis it has performed on Fox News’s claims to be an objective news provider. According to Media Matters, Fox News’s news reporting (as opposed to its commentary) is permeated with conservative slant, spin, and outright falsehoods. The Media Matters analysis, which restricts itself to material broadcast in 2009, is prompted by White House claims that Fox News is not an objective source of news, but a purveyor of Republican- and conservative-sourced propaganda (see October 11, 2009). (Media Matters 10/13/2009)
Anchors Echoed False Health Care Claims - In February, Fox News anchors Bill Hemmer and Megyn Kelly echoed a false claim made by health care lobbyist Betsy McCaughey that a legislative provision in a Senate spending bill would empower the government to “dictate treatments” doctors can provide for patients (see February 9-10, 2009).
Anchor Echoed Republican Press Release So Closely that Typo Is Repeated - Also in February, Fox News anchor Jon Scott repeated the claims of a Senate Republican Communications Center press release so closely that the on-air graphics repeated a typographical error from the original document (see February 10, 2009). Scott did not acknowledge the source of the research, even after apologizing for the typo.
News Show Passed Off Seven-Month-Old Video Clip as New to Claim White House Hypocrisy - On March 15, Fox News anchor Martha MacCallum used video clips of Vice President Joseph Biden to falsely assert that the administration’s economic message had drastically changed since the election, from negative characterizations to positive assertions. MacCallum did not tell the audience that the clip of Biden was a seven-month-old clip from the presidential campaign, and that the words Biden was speaking were his characterization of Republican candidate John McCain’s perceptions (see March 16-17, 2009).
Anchor Promoted, Praised 'Tea Parties' - Several times in March and April, Hemmer, the host of Fox News’s flagship morning news broadcast America’s Newsroom, hosted segments promoting and praising the upcoming April 15 “tea party” protests (see March 23-24, 2009, April 6-7, 2009, and April 13-15, 2009).
Labeled GOP Op-Ed Claims as 'Facts' - On April 1, Scott repeated claims made by a Republican congressman in an editorial about the GOP’s “alternative budget” almost verbatim, but labelled them “facts” (see April 1, 2009).
Fox Repeated Discredited GOP Claims about Price of 'Cap-and-Trade' Proposal - On April 1 and 2, anchors Eric Shawn and Alisyn Camerota repeated a disproven claim that the Obama administration’s “cap-and-trade” emissions control proposal would cost American households over $3,000 per year. They did not report that the claim had been disproven (see April 1-6, 2009).
Obama Budget '4X Bigger' Than Bush Budgets - On April 3, Hemmer’s America’s Newsroom displayed an on-air “chyron” that falsely claimed President Obama’s 2010 budget proposal was four times larger than the largest budget submitted by former President Bush (see April 3, 2009).
News Anchors Promoted 'Tea Parties' - On April 15, Fox anchors joined opinion commentators in touting the day’s “tea party” protests (see April 15, 2009). The next day, Fox News anchor Megyn Kelly admitted that the network gave the protests “PR” coverage (see April 16, 2009).
Correspondent Used GOP Research to Criticize Democratic Spending - On April 23, Hemmer used research by Republican House Minority Whip Eric Cantor (R-VA) to “expose” several “wasteful” projects funded by the Democrats’ economic stimulus act, without revealing the source of the research to his audience (see April 23, 2009).
Correspondent Claimed Legislation Would Curb Religious Expression - On April 29, Fox News correspondent Molly Henneberg repeated disproven claims that a pending hate crimes bill would interfere with Americans’ right to religious expression (see April 29, 2009).
News Anchor Accused Democrats of Defending Pedophiles - On May 6, Hemmer falsely accused Congressional Democrats of voting to extend “hate crimes” protection to pedophiles (see May 5-6, 2009).
News Anchor Accused Supreme Court Nominee of 'Reverse Racism' - On May 26, Kelly misrepresented a remark by Supreme Court nominee Sonia Sotomayor to accuse her of “reverse racism” (see May 26, 2009).
Misleading Editing to Bolster Obama 'Apology Tour' Claim - On June 2, Fox anchors Scott and Jane Skinner aired selectively edited clips of a speech by Obama in France to falsely claim that the president had nothing but criticism for the US while in Europe. They then asked if Obama intended to embark on a second “apology tour” (see June 2, 2009). On July 30, The Live Desk guest host Gregg Jarrett told viewers that a recent decision by the Obama Justice Department may have meant that it was permissible for blacks to intimidate whites at the voting booth, but not the other way around (see July 30, 2009).
News Anchor Reported False Allegation of Criminal Activity by Obama Official - On October 1, Hemmer reported that Education Department official Kevin Jennings covered up the crime of statutory rape. The allegation had been disproven five years before (see September 28 - October 1, 2009). (Media Matters 10/13/2009)
Tea party leaders angrily deny that their movement has any tolerance for racism and anti-Semitism, and say that accusations of this are attempts by “liberals” to “marginalize” the movement. Any incidents of racist or anti-Semitic sloganeering or other activities, they say, are isolated and not tolerated by the organizations themselves (see February 18, 2009, August 1, 2009, August 4, 2009, August 4, 2009, August 6, 2009, August 11, 2009, September 2009, September 14, 2009, March 16, 2010, March 20, 2010, March 24-25, 2010, May 14, 2010, July 14, 2010, July 15, 2010, July 23, 2010, August 6, 2010, September 11, 2010, September 12, 2010, and April 15, 2011). Sal Russo, chief strategist of the Tea Party Express, says: “Liberals and Democrats, with help from their friends in the media, have tried to marginalize the tea party movement. First they said [the tea party movement] was AstroTurf, that these weren’t real people (see March 13, 2009 and After, April 2009 and After, April 6-13, 2009, April 8, 2009, April 14, 2009, April 15, 2009, April 16, 2009, July 23, 2009, July 24, 2009, August 4, 2009, August 4, 2009, August 5, 2009, August 6, 2009, August 6-7, 2009, August 10, 2009, August 10, 2009, August 11, 2009, August 28, 2009, July 3-4, 2010, August 30, 2010, and September 20, 2010).… Then they said it’s just a bunch of crackpots, and they would go out and find the oddest person in the crowd. Now they’re using race. But the attempts to vilify this movement is what you’d expect. It’s not going to work with the tea party.” Tea party leaders say that recent reports of harassment, threats, and vandalism of Democratic lawmakers by opponents of the Obama administration’s health care reform initiative (see August 5, 2009, August 5, 2009, August 6, 2009, August 6, 2009, August 10, 2009, March 20, 2010, and March 24-25, 2010) are isolated incidents that have nothing to do with their organizations; House Minority Whip Eric Cantor (R-VA) says he has also received hateful emails and telephone messages, but has chosen not to publicize them. Cantor has previously said that someone fired a bullet into his Richmond office, an event that local police will determine was a ricochet and not fired directly at his office. As to suggestions that Republican lawmakers such as himself have encouraged their supporters to harass or threaten Democrats, Cantor says, “Any suggestion that a leader in this body would incite threats or acts against other members is akin to saying that I would endanger myself, my wife, or my children.” However, Chris Van Hollen (D-MD) says he and others were singled out by Cantor, and have received death threats and harassing emails and telephone calls, including some from people identifying themselves as tea party members. Senate Sergeant at Arms Terry Gainer has told reporters that there is “no evidence that annoying, harassing, or threatening telephone calls or emails are coordinated.” Dale Robertson of TeaParty.org says that he believes the reports of tea partiers vilifying or spitting on Democratic lawmakers are lies concocted by Democrats: “These people could be anybody. I wouldn’t put it past the Democrats to plant somebody there. They’re trying to label the tea party, but I’ve never seen any racial slurs.” In February 2009, Robertson was photographed holding a sign at a tea party rally in Houston bearing a racial slur (see February 27, 2009). (Weigel 1/4/2010; Washington Times 3/26/2010; Christopher 3/26/2010)
House Republicans rush a bill to the floor for a vote to eliminate all public funding of the presidential election. The bill, if passed by the Senate and signed into law by President Obama, would eliminate one of the few remaining public funding methodologies for federal elections, and, critics say, give wealthy corporate and individual donors even more influence over elections. Public financing of presidential elections was made law by the 1971 Federal Election Campaign Act (FECA—see February 7, 1972 and 1974) and upheld by the Supreme Court (see January 30, 1976). The bill comes to a vote almost exactly a year after the Supreme Court allowed corporations and labor unions to make unlimited donations to political organizations (see January 21, 2010). The bill, HR 359, was sponsored by Representative Tom Cole (R-OK) in June 2009 and cosponsored by 17 other House members, all Republicans. It would eliminate the Presidential Election Campaign Fund and the Presidential Primary Matching Payment Account. The Republican House leadership did not hold hearings on the bill, nor allow it to be debated in committee. Representative Chris Van Hollen (D-MD) calls the bill “a sneak attack on the system,” and notes that the Republicans had pledged to observe “transparency and openness,” but instead are pushing through such a transformative bill without allowing debate. The bill passes the House on a 239-160 vote, with the Republican majority overriding the Democratic minority. Ten Democrats vote for the bill and one Republican votes against it. Senate Minority Leader Mitch McConnell (R-KY) has already introduced his version of the bill in the Senate, though Senate Democrats say the bill has no chance of passing; Senate Majority Leader Harry Reid says through a spokesperson that the bill will never be brought up for a vote. (Kroll 1/24/2011; Raw Story 1/25/2011; Walsh 1/26/2011; Overby 1/27/2011; Salant 1/27/2011)
Repair or Eliminate? - Presidential candidates who accept public funding must agree not to accept private donations in the fall campaign. Every presidential candidate from 1976 to 2008 has accepted public funding. In 2000, George W. Bush (R-TX) did not take public financing for his primary campaign, and in subsequent years no presidential nominee has taken such funding. In 2008, Barack Obama (D-IL) declined to take public financing for his general election, the first presidential nominee to do so. Republicans claim the elimination of the public funding program would save the government between $520 and $617 million over the next 10 years. Meredith McGehee, policy director at the Campaign Legal Center, says the public financing system needs to be updated. It was created in 1976, she notes, and does not reflect the needs of 21st-century candidates. Lawmakers from both parties have attempted, without success to introduce legislation to update the system. McConnell says that Americans do not believe in the PECF, citing declining public participation. The program is funded by a $3 check-off on individual tax returns; in 1980, almost 29 percent of tax returns carried the check-off, while in 2007 only 8.3 percent of tax returns checked off the donation. “In a time of exploding deficits and record debt, the last thing the American people want right now is to provide what amounts to welfare for politicians,” McConnell says. House Democrats have introduced legislation that would modify and update the PECF instead of end it. One of that legislation’s sponsors, David Price (D-NC), says, “Dare we forget what Watergate was all about?” (Price is referring to the post-Watergate origins of the PECF.) “President Nixon’s Committee to Re-Elect the President, fueled by huge quantities of corporate cash, paid for criminal acts and otherwise subverted the American electoral system. Let’s not return to the darkest days of our democracy.” (Kroll 1/24/2011; Walsh 1/26/2011; Overby 1/27/2011; Salant 1/27/2011)
Obama Administration Opposes Bill - The Obama administration strongly opposes the bill, saying that the public financing system should be improved rather than eliminated. In a statement, the White House says: “The presidential election public financing system was enacted in the aftermath of the Watergate scandal to free the nation’s elections from the influence of corporations and other wealthy special interests. Rather than candidates having to rely on raising large sums of private money in order to run, the system provides qualifying presidential candidates with the option of accepting matching funds in the primary and a public grant in the general election.… H.R. 359 would kill the system, not strengthen it. Its effect would be to expand the power of corporations and special interests in the nation’s elections; to force many candidates into an endless cycle of fundraising at the expense of engagement with voters on the issues; and to place a premium on access to large donor or special interest support, narrowing the field of otherwise worthy candidates.” (Raw Story 1/25/2011)
Divided Response from Lawmakers - Representative Eric Cantor (R-VA) says after the bill passes that voting it into effect “should be a no-brainer.” House Minority Leader Nancy Pelosi (D-CA) says that Congress “should come together to ensure that the American people are heard, that they are heard and that they are not drowned out by special interest dollars.” Republicans such as Aaron Schock (R-IL) call Democrats and the Obama administration “hypocrites” because in 2008, Obama turned down public financing. Schock says, “It was President Obama who killed it and made a mockery of public financing of president campaigns with his arrogant pressing of self advantage.” David Price (D-NC) makes an angry rejoinder, saying: “Talk about having it both ways. [Schock] comes onto this floor to condemn President Obama for opting out of the system, and then he proposes to abolish the system so that everybody has to opt out.” Cole also condemns Obama for not taking public financing in 2008, and says he believes public financing of elections should be illegal, but goes on to say that he supports Republicans who take public financing because it is a legal option. Lynn Woolsey (D-CA) says: “Special interest money is having a corrosive effect on our democracy, eating away at the people’s confidence in their government and their elected representatives. The one beacon of light in this system is the public financing of presidential campaigns. It is, I would remind everyone, a voluntary system.” “This is an attempt to finish the job that the Supreme Court started with the Citizens United decision,” says Senator Charles Schumer (D-NY). Schumer chairs the Senate Rules Committee, which has jurisdiction over campaign finance legislation. “It would bust one of the last dams protecting our election system from an uncontrolled flood of special-interest money.” (Walsh 1/26/2011; Overby 1/27/2011; Salant 1/27/2011)
Campaign Finance Reform Advocates Critical of Bill - David Arkush of the citizens advocacy group Public Citizen says in a statement, “A vote for HR 359 is a great way to tell the American people that you want to give corporations more power over our government rather than make democracy work for ordinary Americans.” Craig Holman of Public Citizen says of the bill: “Make no mistake about it: The Republican leadership’s legislation to eliminate public financing is an attack not just on the presidential public financing system, but also an attack on congressional public financing proposals. To ensure that the public’s voice can be heard against the corporate onslaught, we need to expand public financing of elections, not kill it.” Campaign finance reform advocate Fred Wertheimer of Democracy 21 calls the bill “a gross abuse of the legislative process.” (Kroll 1/24/2011; Raw Story 1/25/2011) The nonpartisan Public Finance Action Fund, which advocates for public financing of state and federal elections, says in a statement: “These efforts are not about saving taxpayer money, they are about giving corporate donors even more access than they enjoy today. We hope these measures don’t advance any further.” (Walsh 1/26/2011)
Bill Dies in Senate - The bill will, as expected, not pass the Senate, which is under Democratic control. A similar bill will be introduced in December 2011 (see December 1, 2011), again pass the House, and die in the Senate. (Abrams 12/1/2011)
TPMDC reporter Brian Beutler notes that many Congressional Republicans, led by but not limited to those who consider themselves “tea party” members (see April 30, 2011), are heeding the advice of a small number of unorthodox financial experts who go against the “common wisdom” that a possible credit default by the US would lead to potential catastrophe among national and global financial markets. The issue centers on Congressional Republicans’ insistence that they will not raise the US debt limit, or debt ceiling, unless the Obama administration gives them a wide array of draconian spending cuts; in the past, raising the US debt limit has been a routine matter, often handled with virtually no debate and little, if any, fanfare. Beutler says that the most influential of these advisors is Stanley Druckenmiller, who made billions managing hedge funds. Druckenmiller’s advice was that the US could weather several days of missed interest payments if the US debt ceiling were not immediately raised without serious consequences. House Budget Committee chairman Paul Ryan (R-WI), House Majority Leader Eric Cantor (R-VA), and Senator Pat Toomey (R-PA) are all echoing Druckenmiller’s claims in media interviews and in Congress. Beutler writes that the newfound popularity of Druckenmiller’s claims “alarms everyone from industry insiders to Treasury officials to economists, conservative and liberal, to non-partisan analysts who say the consequences of the US missing even a single interest payment to a debt-holder would be catastrophic—even if it was followed immediately by a legislative course correction.” Former Federal Reserve chairman Alan Binder, now a Princeton economist, warns that if the US were to default on its debt even for a few days, the US dollar would crash in value, interest rates would spike, and the US economy would find itself spiraling into a full-blown recession. Binder writes: “For as long as anyone can remember, the full faith and credit of the United States has been as good as gold—no one has better credit. But if investors start to see default as part of US political gamesmanship, they will demand compensation for this novel risk. How much? Again, no one can know. But even if it’s as little as 10-20 basis points on the US government’s average borrowing cost, that’s an additional $10 billion to $20 billion in interest expenses every year. Seems like an expensive way to score a political point.” JPMorgan CEO Jamie Dimon agrees, telling PBS viewers: “Every single company with treasuries, every insurance fund, every—every requirement that—it will start snowballing. Automatic, you don’t pay your debt, there will be default by ratings agencies. All short-term financing will disappear. I would have hundreds of work streams working around the world protecting our company for that kind of event.” JPMorgan issued a statement after Dimon’s comment saying that even a brief default would trigger “a run on money market funds… that would leave businesses unable to meet their short-term obligations and teetering on the bring of bankruptcy.” JPMorgan compares the money-market run to the aftermath of the 2008 Lehman Bros collapse, which sent the US into a recession. Analyses and reports by the Treasury Borrowing Advisory Committee and Government Accountability Office have warned of dire consequences following a default even of a day or two. Toomey and others insist that a credit default would simply make the Treasury Department find other ways to avoid missing interest payments, but, economists and financial leaders warn, the consequences of that would be enormous. Binder writes: “If we hit the borrowing wall traveling at full speed, the US government’s total outlays—a complex amalgam that includes everything from Social Security benefits to soldiers’ pay to interest on the national debt—will have to drop by about 40 percent immediately. That translates to roughly $1.5 trillion at annual rates, or about 10 percent of GDP. That’s an enormous fiscal contraction for any economy to withstand, never mind one in a sluggish recovery with 9 percent unemployment.” Druckenmiller and some Republicans believe that forcing a credit default would end up benefiting the country, as the Obama administration would give in to Republican demands for enormous spending cuts in return for Republicans’ agreement to raise the debt ceiling. Business Insider reporter Joe Weisenthal recently wrote: “Of course, a default by the world’s most stable nation would probably have impacts in ways nobody can imagine, but one thing seems to be clear. The notion—as some people suggest—that a default would somehow increase US credit-worthiness is absurd.” (Weisenthal 4/20/2011; Rampell 4/26/2011; Beutler 5/20/2011)
Joydeep Mukherji, the senior director for the credit firm Standard & Poor’s, says that one of the key reasons the US lost its AAA credit rating (see August 5, 2011) was because many Congressional figures expressed little worry about the consequences of a US credit default, and some even said that a credit default would not necessarily be a bad thing (see May 20, 2011). Politico notes that this position was “put forth by some Republicans.” Mukherji does not name either political party, but does say that the stability and effectiveness of American political institutions were undermined by the fact that “people in the political arena were even talking about a potential default. That a country even has such voices, albeit a minority, is something notable. This kind of rhetoric is not common amongst AAA sovereigns.” Since the US lost its AAA credit rating, many Republicans have sought to blame the Obama administration (see August 6-9, 2011), even though House Speaker John Boehner (R-OH) said that he and his fellow Republicans “got 98 percent” of what they wanted in the debt ceiling legislation whose passage led to the downgrade (see August 1, 2011). Representative Michele Bachmann (R-MN), running for the Republican presidential nomination in 2012, led many Republican “tea party” members in voting against raising the nation’s debt ceiling, and claimed that even if the US did not raise its debt ceiling, it would not go into default, a statement unsupported by either facts or observations by leading economists (see April 30, 2011, June 26, 2011, July 13, 2011, and July 14, 2011). “I want to state unequivocally for the world, as well as for the markets, as well as for the American people: I have no doubt that we will not lose the full faith and credit of the United States,” she said. Now, however, one of Bachmann’s colleagues, Representative Tom McClintock (R-CA), says that the media, and S&P, misinterpreted the Republican position. “No one said that would be acceptable,” McClintock says of a possible default. “What we said was in the event of a deadlock it was imperative that bondholders retain their confidence that loans made to the United States be repaid on schedule.” Treasury Secretary Timothy Geithner says of S&P’s response to the default crisis: “They, like many people, looked at this terrible debate we’ve had over the past few months, should the US default or not, really a remarkable thing for a country like the United States. And that was very damaging.” (Boak 8/11/2011) TPMDC reporter Brian Beutler recalls: “For weeks, high-profile conservative lawmakers practically welcomed the notion of exhausting the country’s borrowing authority, or even technically defaulting. Others brazenly dismissed the risks of doing so. And for a period of days, in an earlier stage of the debate, Republican leaders said technical default would be an acceptable consequence, if it meant the GOP walked away with massive entitlement cuts in the end.” He accuses McClintock of trying to “sweep the mess they’ve made down the memory hole” by lying about what he and fellow Republicans said in the days and weeks before the debt ceiling legislation was passed. Beutler notes statements made by House Budget Committee chairman Paul Ryan (R-WI) and House Majority Leader Eric Cantor (R-VA), where they either made light of the consequences of a possible credit default or said that a default was worthwhile if it, as Cantor said, triggered “real reform.” Representative Louis Gohmert (R-TX), one of the “tea party” members, accused the Obama administration of lying about the consequences of default; Beutler writes, “This was a fairly common view among conservative Republicans, particularly in the House” (see July 14, 2011). (Beutler 8/11/2011)
Many prominent economists and financial leaders lay the blame for the US credit rating downgrade (see August 5, 2011) at the feet of Congressional Republicans. Republicans have been unified in blaming the Obama administration’s economic policies for the downgrade (see August 6-9, 2011), though House Speaker John Boehner boasted that he and his fellow Republicans received “98 percent” of what they wanted in the debt-ceiling legislation that led to the downgrade (see August 1, 2011). Nobel Prize-winning Paul Krugman, a self-described liberal, blamed Congressional Republicans for the downgrade hours after credit rating agency Standard & Poor’s announced it (see August 5-6, 2011), and S&P itself implied that Republicans were at fault for the downgrade for being willing to risk sending the nation into default if they were blocked from getting their way in the debt-ceiling legislation (see August 11, 2011). Even before the credit rating downgrade, the New York Times reports, “macroeconomists and private sector forecasters were warning that the direction in which the new House Republican majority had pushed the White House and Congress this year—for immediate spending cuts, no further stimulus measures and no tax increases, ever—was wrong for addressing the nation’s two main ills, a weak economy now and projections of unsustainably high federal debt in coming years” (see May 20, 2011). These economists and forecasters generally agree with the Obama administration’s wishes to immediately stimulate the economy to include greater private-sector spending and create more jobs, with spending cuts more useful as a long-term remedy. Republicans in Congress and on the presidential campaign trail, however, continue to insist that their policies are what will rescue the US economy; House Majority Leader Eric Cantor (R-VA) says that he and his fellow Republicans “were not elected to raise taxes or take more money out of the pockets of hardworking families and business people,” and will never consider tax or revenue increases of any sort. Even Republican economic figures such as Reagan advisor Martin Feldstein and Henry Paulson, the Treasury secretary under President George W. Bush, say that revenue increases should balance any spending cuts, a position Congressional Republicans—particularly “tea party” Republicans such as presidential candidate Michele Bachmann (R-MN)—refuse to countenance. Bank of America senior economics research official Ethan Harris writes: “Given the scale of the debt problem, a credible plan requires both revenue enhancement measures and entitlement reform. Washington’s recent debt deal did not include either.” Ian C. Shepherdson, the chief US economist for research firm High Frequency Economist, says, “I think the US has every chance of having a good year next year, but the politicians are doing their damnedest to prevent it from happening—the Republicans are—and the Democrats to my eternal bafflement have not stood their ground.” Joel Prakken, chairman of Macroeconomic Advisers, and Laurence H. Meyer, former Federal Reserve governor, both call the Republicans’ calls for spending cuts “job-kill[ers].” Bill Gross, head of the bond-trading firm Pimco, lambasts Republicans and what he calls “co-opted Democrats” for throwing aside widely accepted economic theory for Republican-led insistence that draconian spending cuts, largely in social safety-net programs such as Social Security and Medicare, will “cure” the US’s economic ills. Instead, Gross writes: “An anti-Keynesian, budget-balancing immediacy imparts a constrictive noose around whatever demand remains alive and kicking. Washington hassles over debt ceilings instead of job creation in the mistaken belief that a balanced budget will produce a balanced economy. It will not.” (Calmes 8/12/2011)
A journalist and activist sues to overturn provisions in a US defense spending bill that authorize indefinite military detention, including of US citizens, who are accused of being associated with groups engaged in hostilities with the United States (see December 15, 2011, December 31, 2011). The indefinite detention provisions in the NDAA caused considerable controversy from the time they were first proposed (see July 6, 2011 and after). Chris Hedges, formerly of the New York Times, and his attorneys, Carl J. Mayer and Bruce I. Afran, file the suit seeking an injunction barring enforcement of section 1021 (formerly known as 1031) of the 2012 National Defense Authorization Act (NDAA), alleging it is unconstitutional because it infringes on Hedges’ First Amendment right to freedom of speech and association and Fifth Amendment right to due process, and that it imposes military jurisdiction on civilians in violation of Article III and the Fifth Amendment. President Obama and Secretary of Defense Leon Panetta are named as defendants in the initial complaint, individually and in their official capacities. (Hedges 1/16/2012) Six other writers and activists will later join Hedges as plaintiffs in the lawsuit: Daniel Ellsberg, Jennifer Bolen, Noam Chomsky, Alexa O’Brien, “US Day of Rage,” Kai Wargalla, and Birgitta Jónsdóttir, who is also a member of parliament in Iceland. Senators John McCain (R-AZ), Harry Reid (D-NV), and Mitch McConnell (R-KY), and Representatives Nancy Pelosi (D-CA), John Boehner (R-OH), and Eric Cantor (R-VA), will be added as defendants, in their official capacities. (Final Complaint: Hedges v. Obama 2/23/2012 ) The plaintiffs, their attorneys, and two supporting organizations, RevolutionTruth and Demand Progress, will establish a Web site to provide news and information related to the case, including legal documents. (StopNDAA.org 2/10/2012) The Lawfare Blog will also post a number of court documents related to the case, including some not available at StopNDAA.org, such as the declarations of Wargalla, O’Brien, and Jónsdóttir. (Wakeman 4/4/2012) Journalist and activist Naomi Wolf will file an affidavit supporting the lawsuit. (Wolf 3/28/2012) The judge in the case, Katherine B. Forrest, will issue a preliminary injunction enjoining enforcement of the contested section, finding it unconstitutional (see May 16, 2012).
During a state Democratic Party convention in San Diego, Representative Maxine Waters (D-CA) calls Republican legislators “demons.” In response, Fox News talk show host Eric Bolling advises Waters to “step away from the crack pipe,” earning Bolling accusations of employing racist rhetoric against Waters. Waters, an African-American, speaks in support of Democrats retaking the US House of Representatives in November 2012, and says of House Speaker John Boehner (R-OH) and Majority Leader Eric Cantor (R-VA): “I saw pictures of Boehner and Cantor on our screens [at the convention]. Don’t ever let me see again, in life, those Republicans in our hall, on our screens, talking about anything. These are demons. They are bringing down this country, destroying this country, because they’d rather do whatever they can do destroy this president rather than for the good of this country.” After news of Waters’s remarks becomes publicly known on February 15, Brad Dayspring, a spokesperson for Cantor, calls Waters’s rhetoric “sad and unfortunate.” (Fox News 2/15/2012) On February 16, Bolling, the host of Fox News’s The Five, appearing as a guest host on Fox News’s morning show Fox and Friends, responds to Waters’s rhetoric: “What is going on in California? How’s this? Congresswoman, you saw what happened to Whitney Houston (see February 12-13, 2012). Step away from the crack pipe. Step away from the Xanax. Step away from the Lorazepam. Because it’s going to get you in trouble. How else do you explain those kinds of comments?” Co-hosts Steve Doocy and Juliet Huddy laugh uncomfortably at Bolling’s comments; after a commercial break, Bolling modifies his comments by saying he was “kidding about the crack pipe, but obviously the rhetoric, you know.” Doocy immediately responds: “Of course. We knew that.” Progressive media watchdog Web site Media Matters says Bolling’s rhetoric is “racially charged,” particularly with his reference to Waters smoking crack, a drug stereotypically associated with African-American gangsters and street criminals. Politico notes that there is no evidence crack or any other illegal drug was involved in Houston’s recent death. (Media Matters 2/16/2012; Media Matters 2/16/2012; Politico 2/16/2012) On Fox and Friends co-host Brian Kilmeade’s radio show later in the day, guest host Andrea Tantaros, a Fox News commentator, defends Bolling’s racially inflammatory rhetoric. “How is that a racist remark?” Tantaros asks a caller. She goes on to say that Bolling was just joking, and says that “when you inject race into everything, you legitimize when people are actually really genuinely making racist remarks, which Eric Bolling was absolutely not doing.” (Media Matters 2/16/2012) Liberal news blog The Grio calls Waters’s rhetoric “incendiary” and Bolling’s comments “racially provocative and insensitive.” (The Grio 2/16/2012)
US District Court Judge Katherine B. Forrest (Southern Division, New York) finds a controversial section of the 2012 National Defense Authorization Act (NDAA) unconstitutional and issues a preliminary injunction barring enforcement. Section 1021(b)(2) of the NDAA authorizes indefinite military detention without trial of any person “who was a part of or substantially supported al-Qaeda, the Taliban, or associated forces that are engaged in hostilities against the United States or its coalition partners, including any person who has committed a belligerent act or has directly supported such hostilities in aid of such enemy forces” (see December 15, 2011). The law makes no exception for US persons. It has been under review by the court because seven individuals (journalists, activists, and politicians) sued, alleging this section is unconstitutional because it violates their First Amendment right to freedom of speech and association and Fifth Amendment right to due process, and that it imposes military jurisdiction on civilians in violation of Article III and the Fifth Amendment (see January 13, 2012). (OPINION AND ORDER: 12 Civ. 331 (KBF) Hedges et al v. Obama, preliminary injunction enjoining enforcement of NDAA Section 1021 5/16/2012)
Judge Finds NDAA Undermines Protected Speech and Association - The plaintiffs argued that, due to their association with and/or reporting on al-Qaeda and the Taliban in the course of their work as journalists and activists, they might be subject to detention under § 1021, and that, due to the vagueness of the law, there was no way to know if the law could be used against them. In testimony and briefs, the plaintiffs gave examples of how they had altered their speech and behavior out of fear they might be subject to detention. In her Opinion and Order, Forrest notes: “The Government was unable to define precisely what ‘direct’ or ‘substantial’ ‘support’ means.… Thus, an individual could run the risk of substantially supporting or directly supporting an associated force without even being aware that he or she was doing so.” And: “The Government was given a number of opportunities at the hearing and in its briefs to state unambiguously that the type of expressive and associational activities engaged in by plaintiffs—or others—are not within § 1021. It did not. This Court therefore must credit the chilling impact on First Amendment rights as reasonable—and real. Given our society’s strong commitment to protecting First Amendment rights, the equities must tip in favor of protecting those rights.” (OPINION AND ORDER: 12 Civ. 331 (KBF) Hedges et al v. Obama, preliminary injunction enjoining enforcement of NDAA Section 1021 5/16/2012)
Judge Rejects All Three Arguments Made by the Government - Forrest summarizes the government’s position in this way: “[F]irst, that plaintiffs lack standing; second, that even if they have standing, they have failed to demonstrate an imminent threat requiring preliminary relief; and finally, through a series of arguments that counter plaintiffs’ substantive constitutional challenges, that Section 1021 of the NDAA is simply an ‘affirmation’ or ‘reaffirmation’ of the authority conferred by the 2001 Authorization for Use of Military Force.” Rejecting the first and second arguments, Forrest finds the plaintiffs do have standing because their fear of imminent indefinite detention without charge or trial is reasonable, due to the vagueness of § 1021 and the government’s failure to state that the plaintiff’s activities aren’t covered under section 1021, leaving the plaintiffs with no way of knowing if they might be subject to detention. Furthermore, Forrest finds the plaintiffs have suffered actual harm, evidenced by incurring expenses and making changes in speech and association due to fear of potential detention. Regarding the third argument, Forrest rejects the idea that § 1021 could simply be affirming the AUMF, because “[t]o so hold would be contrary to basic principles of legislative interpretation that require Congressional enactments to be given independent meaning”; otherwise § 1021 would be “redundant” and “meaningless.” Furthermore, Forrest finds § 1021 of the NDAA is substantively different than the AUMF; it is not specific in its scope and “lacks the critical component of requiring… that an alleged violator’s conduct must have been, in some fashion, ‘knowing.’” (OPINION AND ORDER: 12 Civ. 331 (KBF) Hedges et al v. Obama, preliminary injunction enjoining enforcement of NDAA Section 1021 5/16/2012)
Judge Finds Lawsuit Will Likely Succeed on Merits, Justifying Injunction - Based on the information put forward by the seven plaintiffs and the government, Forrest concludes the lawsuit will likely succeed on its merits, thus it should be allowed to proceed, stating: “This Court is left then, with the following conundrum: plaintiffs have put forward evidence that § 1021 has in fact chilled their expressive and associational activities; the Government will not represent that such activities are not covered by § 1021; plaintiffs’ activities are constitutionally protected. Given that record and the protections afforded by the First Amendment, this Court finds that plaintiffs have shown a likelihood of succeeding on the merits of a facial challenge to § 1021.” Forrest also notes that issuing a preliminary injunction barring enforcement is unusual, but called for given the evidence and circumstances, stating: “This Court is acutely aware that preliminarily enjoining an act of Congress must be done with great caution. However, it is the responsibility of our judicial system to protect the public from acts of Congress which infringe upon constitutional rights.” (OPINION AND ORDER: 12 Civ. 331 (KBF) Hedges et al v. Obama, preliminary injunction enjoining enforcement of NDAA Section 1021 5/16/2012)
President Obama’s Justice Department files a motion urging a federal judge to reconsider a ruling and order that blocked enforcement of a law authorizing indefinite military detention. The case is Hedges v. Obama and the law at issue is section 1021 of the 2012 National Defense Authorization Act (NDAA). The filing calls Judge Katherine B. Forrest’s preliminary injunction barring enforcement of Section 1021(b)(2) of the NDAA (see May 16, 2012) “extraordinary” as it restricts the president’s authority during wartime. It also questions whether “an order restraining future military operations could ever be appropriate,” and disputes Forrest’s finding that the plaintiffs who had sued to overturn the law (see January 13, 2012) have standing to sue. In footnote 1, the government states that it is construing the order “as applying only as to the named plaintiffs in this suit.” Forrest will clarify in a subsequent Memorandum Opinion and Order that by blocking enforcement of § 1021(b)(2), the only remaining persons covered are those defined in § 1021(b)(1): “A person who planned, authorized, committed, or aided the terrorist attacks that occurred on September 11, 2001, or harbored those responsible for those attacks” (see June 6, 2012). (Hedges v. Obama: Government's Memorandum of Law in Support of Its Motion for Reconsideration of the May 16, 2012, Opinion and Order 5/25/2012)
Background - The NDAA was passed by Congress on December 15, 2011 (see December 15, 2011) and signed into law by President Obama on December 31 (see December 31, 2011). The provision for indefinite military detention of any person accused of supporting groups hostile to the United States, without charge or trial, began to generate controversy soon after it was disclosed (see July 6, 2011 and after).
The YG Network, a Republican political organization nicknamed the “Young Guns,” tells Republican House members that if they vote for specific House proposals, they will be rewarded by advertisements on their behalf to be paid for by YG. The organization is run by former aides to House Majority Leader Eric Cantor (R-VA), but denies having any ties to the lawmaker. Congressional leaders such as Cantor are not permitted to offer anything in exchange for a vote. YG is launching a radio advertising campaign that will run ads praising Republican House members who voted with Cantor to repeal a tax on medical devices, and advises those members to “keep voting to stop tax increases arriving next year,” referring to a group of tax rates that will expire at the end of 2012. An aide says the YG Network is trying to “leverage the floor schedule and votes scheduled by Cantor to help members at home.” According to Politico, “[i]f a [Republican House] member—specifically, an ally of Cantor and Majority Whip Kevin McCarthy (R-CA)—votes for a leadership priority, they can look forward to an ad in their district.” The aide says that YG hopes the effort becomes “another tool in the belt to call attention to members and help encourage cohesion on difficult-to-whip votes.” YG advisor Brad Dayspring explains: “For too long, a lot of the good legislation that the House has passed has gone unnoticed because [Senate Democrats] have sat on [their] hands for a year and a half. Too often, the only outside group activity occurring back in districts comes in the form of an attack against new conservative lawmakers. The YG Network hopes to change the conversation by highlighting the positive work that the new generation of conservatives have done, calling attention to legislative votes that would help create jobs, remove the red tape weighing down small business, and to repeal ‘Obamacare.’” A number of “Young Guns” legislators will receive radio ads on their behalf. (Sherman 6/10/2012) Paul Ryan of the Campaign Legal Center says that what YG is doing is probably legal, but, he adds, “many would characterize the way Washington politics has long worked as ‘legalized bribery.’” The Supreme Court’s 2010 Citizens United ruling (see January 21, 2010) is what makes activities like this possible, he says: “When you allow unlimited special interest money in politics, this type of behavior should be expected. Criticism is fair, but nevertheless, it’s predictable. This is the world that this Supreme Court majority has given us with the Citizens United decision. It’s troubling, but entirely predictable. Even more troubling is the likelihood of conversations behind closed doors—threats of huge corporate-funded independent spending campaigns made [for those who don’t act in the corporation’s interest on a given piece of legislation]. And much of it, we will never hear about.” Ryan warns that he expects lobbyists to meet with legislators and say, “you saw what we did to so-and-so,” referring to a lawmaker who did not behave in the interest of the lobbyist’s client. Ryan says the lobbyist will ask, “Do you want that to happen to you?” (Israel 6/11/2012)
Politico reporters Kenneth P. Vogel and Tarini Parti report on the difficulty of getting solid information about the donors being organized by the billionaire Koch brothers. Oil magnates Charles and David Koch (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, and February 14, 2011) intend to raise at least $400 million to defeat President Obama in the 2012 election (see Late May 2012), and to ensure victory for Republicans in state and local races around the nation (see February 21, 2012). Vogel and Parti call the Koch political operation “its own political party,” almost, even going so far as to hold its own semi-annual conventions, including one scheduled for late June in San Diego. That convention will bring together dozens of millionaire and billionaire conservatives, who will write big checks for the Koch efforts. Additionally, the Kochs will unveil their new voter database, Themis (see April 2010 and After), which they expect will help in targeting potential Republican voters around the country. Themis played a big part in a recent successful effort to stop Governor Scott Walker (R-WI) from being recalled, as did huge amounts of Koch-organized donations on behalf of Walker. Three of the prime figures in the Koch efforts are convention “emcee” Kevin Gentry and political operatives Marc Short and Tim Phillips (see May 29, 2009); the operation is orchestrated primarily by Koch advisor and operative Richard Fink. Additionally, the Koch brothers intend to take over the Cato Institute think tank (see February 29, 2012) and make it more politically active. Minnesota television station owner Stanley Hubbard, a longtime Koch supporter, says: “They ask for support—and they get it because we all love our country and we have a different vision than do the liberals. I’ve gotten friends to be involved, and I think others have, too, so I would guess, yes, that’s expanding.” Vogel and Parti expand on how secretive the Koch network (which they call “Koch World”) actually is. They are unable to find out where the San Diego convention is to be held, though they did determine that it is scheduled to take place over the weekend of June 23. A Republican who has worked with Koch-backed groups says: “The Koch groups are very complex in the way they do things. They’re difficult to penetrate from the outside, which is smart. You often need a Sherpa.” The conventions are heavily patrolled by hired security guards, who at one recent convention threw out a Politico reporter under threat of arrest. Participants are required not to discuss the convention with outsiders, including making posts on Facebook or Web blogs. (The winter 2011 convention in Rancho Mirage, California, leaked to the press, sparking what Politico calls “raucous protests” outside the exclusive resort hosting the conference.) According to Vogel and Parti, Phillips runs the lobbying organization Americans for Prosperity (AFP—see Late 2004 and November 2009). Short oversees the spending of Koch network monies by other approved groups, some of which air television ads attacking Democrats. Gentry raises money for the Koch network. Gentry often uses urgent and even apocalyptic rhetoric in his fundraising appeals, warning potential donors of “dangerous and imminent threats” to American society and comparing the Koch conventions to the Continental Congress of 1776. One recent email lauded efforts by Supreme Court Justice Clarence Thomas to help the Koch brothers’ fundraising. Gentry also spearheads the fundraising efforts for an informal network of conservative think tanks such as the Heritage Foundation, AFP, and the Texas Public Policy Foundation. Some conservatives are uncomfortable with the Koch brothers’ attempts to gain dominance in conservative party politics. “Koch has been angling for the last three or four years to consolidate more of the conservative movement within their network,” says one conservative operative. “That’s why they do these seminars—to try to consolidate more big donors’ money and direct it into their projects.” The operative admits that the Koch fundraising efforts are very effective, saying, “Some of the donors believe giving to one source makes it easier for them instead of having to give to a dozen different places, and others just want to come out to hang with the billionaire brothers and be part of a very elite universe.” Koch conventions regularly feature prominent conservatives like Thomas and fellow Supreme Court Justice Antonin Scalia, Texas Governor Rick Perry, New Jersey Governor Chris Christie, Virginia Governor Bob McConnell, House Majority Leader Eric Cantor (R-VA), and right-wing radio hosts Rush Limbaugh and Glenn Beck. While federal documents track some $120 million in donations from recent Koch summit donors, most of the money raised and spent goes untracked, instead being hidden away by “nonprofit” groups that purport to be non-political social advocacy groups. Gentry has assured donors, “There is anonymity that we can protect.” (Vogel and Parti 6/15/2012)
Casino billionaire Sheldon Adelson, one of the world’s 15 richest people, is on course to contribute at least $71 million to efforts to unseat President Obama in the November presidential elections and elect Republicans to national and state office (see February 21, 2012). Adelson’s contributions are cloaked in secrecy, as much of his contributions go to “nonprofit” political organizations that under the law do not have to disclose their donors. Adelson and his wife Miriam have already contributed $10 million to a “super PAC” backing Republican presidential candidate Mitt Romney (see June 13, 2012), and have either given or pledged to give up to $35 million to other organizations, including Crossroads GPS, a “nonprofit” organization led by former George W. Bush advisor and longtime Adelson friend Karl Rove, the Koch-financed Americans for Prosperity (AFP—see Late 2004, May 29, 2009, and November 2009), and another organization linked to House Majority Leader Eric Cantor (R-VA). Adelson is a strong supporter of Israel’s far-right government and a staunch opponent of US labor unions. Adelson has told friends that he may give up to $100 million in efforts to unseat Obama and elect Republicans in state races; indications are that he may give much, much more. Some of Adelson’s donations may go to another Koch-funded organization, the Center to Protect Patients’ Rights, which in 2010 was used to funnel tens of millions of dollars to other conservative organizations (see October 12, 2010). The Young Guns Network is a nonprofit group set up by Cantor, and has received $5 million from Adelson (see June 10, 2012). So has the “super PAC” the Congressional Leadership Fund, a group linked to House Speaker John Boehner (R-OH). Adelson’s Las Vegas casino The Sands is under investigation by the Securities and Exchange Commission (SEC) and the Justice Department for possible violations of the Foreign Corrupt Practices Act, which exists to prevent bribery of foreign business officials. The Sands denies any wrongdoing. Adelson previously backed Romney’s opponent Newt Gingrich (R-GA), but as Gingrich’s hopes for the presidential nomination faded, Adelson indicated that he would shift his support to Romney. Adelson has told GOP colleagues he intends to make most of his contributions to nonprofits like Crossroads GPS, which are not required to make the names of their donors, or the amounts of their donations, public. Although the law bars candidates like Romney from soliciting donations exceeding $5,000, Republican fundraisers say that candidates and their representatives have flocked to Adelson in recent months, as have representatives from organizations such as the US Chamber of Commerce, which intends to spend $50 million in efforts to elect Republicans to Congress. The nonprofit Republican Jewish Coalition has received millions from Adelson in the past, and says it intends to spend some $5 million this year on behalf of candidates such as Josh Mandel (R-OH), running to unseat Senator Sherrod Brown (D-OH). Adelson also donated $250,000 to help turn back efforts to recall Governor Scott Walker (R-WI) and $250,000 to a political committee backing Governor Rick Scott (R-FL), who is battling the Justice Department to be allowed to purge hundreds of thousands of minority voters from the voting rolls. (Stone 6/16/2012) In March 2012, 80 billionaires such as Adelson gave two-thirds of the monies raised by super PACs, creating an outsized influence on the presidential and “downticket” election campaigns (see March 26, 2012).
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