Strange Voices Are Saying…

“I don’t think there’s much hope at this point in blocking the nomination from the outside; apparently a chief executive can make terrible choices for dodgy reasons whenever he wants, as we’ve learned time and again…It’s good to be the king, especially when the court is so cowed (and by court I mean the professional DC liberal class).”

As rumors fly that — despite the obvious terribleness of the pick — Obama has virtually settled on Larry Summers as Fed Chair, David Dayen wonders aloud if this is all part of a Grand Bargain redux:

“You’re a President with a very tough set of fiscal fights coming up. You’ve wanted entitlement reforms for five years, but cannot get it worked out. You’ve been playing footsie with the Senate Republican caucus all year. Now you’re in a situation where you need Republican votes…I mean, any rational human would have given up on grand bargaineering by now…[but now] the White House can argue that they simply had to go along with, I don’t know, the chained CPI measure they put in their own budget, because it was a way to ‘get’ Larry Summers, among other things.” Frighteningly plausible.

The Dream Persists.

“We have also come to his hallowed spot to remind America of the fierce urgency of Now. This is not time to engage in the luxury of cooling off or to take the tranquilizing drug of gradualism. Now is the time to make real the promise of democracy.” – Dr. Martin Luther King, August 28th, 1963.

“It is implausible to imagine that, were King to be raised from the dead, he would look at America’s jails, unemployment lines, soup kitchens or inner-city schools and think his life’s work had been accomplished. Whether one believes that these inequalities are caused by individuals making bad choices or by institutional discrimination, it would be absurd to claim that such a world bears any resemblance to the one King set out to create.” As The Nation‘s Gary Younge reminds us, today should not be about resting on laurels by any means: There is work to do.

Welcome to the Machine.

“We end up with a question of just how long the slow decay of existing systems (many of them admittedly dysfunctional) will go on without anyone, technocrat or otherwise, having to deal with the fact that the needs that created those systems remain as acute as ever while the ability of our society to satisfy those needs is more and more deficient…Defund the schools in Philadelphia and the children of Philadelphia who can’t flee to private institutions or move with families to the suburbs are still there. Incentives can only push so much dust under the rug before the rug itself is mounded high to the ceiling of the room.”

In a less-than-positive review of the administration’s recently-proposed higher education reforms — in short, Race to the Bottom for colleges — Tim Burke attempts to explain the madness behind Obama’s technocratic method. “Technocrats live in the wonderland of the question marks in the Underpants Gnomes business model, endlessly fussing over the exact terms of Point #1 and certain that the Profit! of #3 will follow.”

Also, I said this in the Virtually Speaking chat the other day, but we’ve tried this sort of business-minded technocratic leadership before in America — It didn’t pan out. (Burke post by way of Tropics of Meta.)

Worse than Enron? Shrug.

“Look at the numbers. Of the $410 million, $125 million represents the disgorgement of illicit profits from Morgan’s scheme — money the bank wouldn’t have collected at all if it operated within the law. (The sum is supposed to be returned to ratepayers.) So that doesn’t count. The real punishment is the balance of $285 million. How badly will that hurt JPMorgan Chase? Well, the big bank collected $97 billion in net revenue last year, so it represents a little more than a single day of intake.

Ask yourself: If you could steal $125 million, with the only downside being that if you got caught you might have to give the money back and lose a single day’s income, would you give it a go? Me too.”

On the announcement that J.P. Morgan will be paying a pittance for engaging in massive Enron-style energy fraud, the L.A. Times‘ Michael Hiltzik calls out the regulatory sham for what it is. “Our top regulators actually think they’ve gotten the better of a huge illegal enterprise, which is a good sign that they’re delusional. They didn’t even get Morgan to admit that it had done anything wrong.”

It’s tempting to hate on FERC for agreeing to this sucker’s deal, but let’s face it, this type of wink-and-a-nod, Potemkin oversight is endemic across our supposed regulatory agencies. (See also: the (lack of) fallout from JP Morgan’s Whale Trade.)

It used to be, not even all that long ago, people and companies who engaged in systemic energy and financial fraud went to prison. Now…not so much. Today, they not only continue to be treated as esteemed citizens by the highest levels of government — They even have the temerity to complain they’re being over regulated.

Meanwhile, our ostensibly progressive administration spends much of its days trying to prosecute whistle blowers and poor people to the fullest extent of the law. Some system. Honestly, if you’re not disgusted at this point, you’re not paying attention.

Endless Summers.

“Finally we have Summers’ role in the 2008-2009 financial crisis. Summers was one of the people who pushed the Democrats in Congress to accept the no (real) conditions TARP bailout given to them by Henry Paulson. Once in the White House he was the staunch defender of the bankrupt banks belligerently challenging anyone who proposed letting the market work its magic and put these behemoths out of our misery. As a result of Summers’ work the too big to fail banks are bigger and more profitable than ever.”

As Summers supporters — including the President — try to push him for Federal Reserve Chairman (over the more experienced Janet Yellen), Dean Baker asks the obvious question: At this late date, why, exactly, should Larry Summers be head of anything? “In short, if we look at Larry Summers track record in dealing with crises it is pretty abysmal. But on attendance, he gets an ‘A.'”

Seriously, how many more times does this guy have to be wrong? And why pick for Fed Chair someone, as Sheila Bair succinctly put it, who was clearly “part of the deregulatory cabal that got us into the 2008 financial crisis?”

And, let’s be clear: Even putting that trillion-dollar fiasco aside — other than that, Mrs. Lincoln, how was the play — from attacking Brooksley Born in the late 90’s to his embarrassing interim at Harvard (where, on top of everything else, Wonderboy lost the endowment $2 billion) to ham-stringing the 2009 stimulus out of the gate, everything Summers touches turns to lead.

But, lo, here he is once again, being force-fed to us by the usual suspects as a brilliant speaker of economic truths. Yet another classic case of failing-up in Washington, where it’s always better to be wrong and with the herd than prescient and correct.

Update: “Although Summers had been an early advocate of Warren’s idea to establish a consumer regulator to deal with abusive lending, he was rankled by the support she received from other administration officials, particularly Christina Romer, who chaired Obama’s Council of Economic Advisers.” Among his many other sins, Summers also went out of his way to block Elizabeth Warren as CFPB head — a bureau she in effect created — apparently because of personal pique. So, yeah, let’s put this guy in charge. He is so SMRT!

Manning Down.

“The ‘aiding the enemy; charge was so preposterous on its face, and so evil in its intent, that it tended to obscure how contrary to acceptable American jurisprudence the entire situation — from his detention to his trial — regarding Bradley Manning was. But it was in that charge that this administration — this Democratic administration, headed by a former professor of constitutional law — demonstrated its willingness, if not its eagerness — to elevate information into a tin god to whom we are all suppliants, and against whom we have no civil rights worthy of the name.”

As the Bradley Manning trial moves to sentencing — I wrote about the case here in March — Esquire’s Charlie Pierce wonders again how we got so far down the rabbit hole. Honestly, we should have a pretty good sense, at this late date, that prosecuting anyone under the godforsaken Espionage Act is generally a terrible idea.

Referring to the most venomous of the charges, which Manning thankfully escaped — that he was willfully “aiding the Enemy” by blowing the whistle on Army misdeeds — Pierce writes: “That anyone in this government thought this is a good idea is something worth studying. Manning’s going to go to jail from now until Christ alone knows when. The people who thought this up are still going to have good government jobs. Something’s not right with that.” Amen.

The Arctic Depression.

“The release of methane from thawing permafrost beneath the East Siberian Sea, off northern Russia, alone comes with an average global price tag of $60 trillion in the absence of mitigating action — a figure comparable to the size of the world economy in 2012 (about $70 trillion). The total cost of Arctic change will be much higher.”

A new scientific analysis estimates the global cost of the melting Arctic, and it’s extremely terribad — $60 TRILLION bad. “Many experts now say that if recent trends continue and Arctic sea ice continues its ‘death spiral,’ we will see a ‘near ice-free Arctic in summer’ within a decade. That may well usher in a permanent change toward extreme, prolonged weather events ‘such as drought, flooding, cold spells and heat waves.'” So, hey, instead of working to address this multi-trillion dollar crisis before it hits, let’s just spend years and years and years sweating the deficit. Now, that’s leadership.

Update Per Mother Jones, the potentiality of such a methane bomb is in some dispute: “Bear in mind that there are many good reasons to be skeptical of a methane disaster — it is hardly a matter of scientific consensus that this is a real concern. And that stands in stark contrast to the issue of climate change in general, an issue on which scientists are overwhelmingly aligned (and where the solution remains incredibly obvious: cutting carbon emissions).”

Orange is the Same Old Black.

“Last month, President Obama quietly did something that should shake every American to the core. Seeking to enforce federal crack cocaine laws that have since been repealed, the Obama administration asked a federal appeals court to ensure that thousands of human beings, mostly poor and mostly black, remain locked in prison – even though everyone agrees that there is no justification for them to be there.”

Yet another for the Hope-and-Change file: Obama’s DOJ urges the Courts to keep prisoners convicted under outdated sentencing requirements in jail, because…because…well, it’s hard to fathom, really. “For several years, federal judges have done nothing to remedy this injustice; one famously concluded that the prisoners sentenced under the old law had simply ‘lost on a temporal roll of the cosmic dice”. So, there are American citizens serving tens of thousands of years in prison because, according to all three branches of government, it’s just their tough luck?”

If you’re keeping score at home, folks, Obama’s Department of Justice has basically said at this point that whistleblowers and non-violent drug offenders should get the book thrown at them, but economy-toppling banksters and torturers should walk free. Yessir, they’re really speaking truth-to-power over at DOJ these days. What a courageous bunch.

The Minimum is Not Enough.

“As of today, it’s been four years since the last increase in the federal minimum wage, to $7.25 per hour, or $15,000 per year for full-time work…[T]he current level, by all measures, is just too low…[I]f it had kept up with inflation since its peak in 1968, the federal minimum wage would now be $10.75 an hour. And if the minimum wage had grown along with workers’ productivity, it would be as high as $17.19 today.”

After four years of inaction, CEPR examines the costs of a stagnant minimum wage. Conversely, raising the minimum to $10.10 an hour — as supported by 80% of Americans — would create an estimated 300,000 jobs and add $33 billion to the economy. So you’d think Congress would get on that, yes? Umm…

In very related news, a new AP poll finds that, as a result of stagnant wages, income inequality, and a deteriorating job market, fully 80% of Americans experience poverty, unemployment, and deprivation at some point in their lives. “By 2030, based on the current trend of widening income inequality, close to 85 percent of all working-age adults in the U.S. will experience bouts of economic insecurity.” The American Dream, now with Vegas casino odds.

The Eyes of the White Tower.

“Consider the basic premise of Tolkien’s trilogy: a small group of dedicated subversives willing to sacrifice their lives slips in under the surveillance system of a great power, blends in with an alien population, and delivers a devastating blow to the heart of its empire, leaving its security forces in disarray and its populace terrified. Even a tower or two crumbles to dust.”

You know of what I speak, Snowden…a Great Eye, lidless, wreathed in flame. From the bookmarks, academics David Rosen and Aaron Santesso employ Tolkien to explain the modern surveillance state. “[I]n Sauron, Tolkien is able to imagine a figure of godlike power and seemingly infinite resources, but crippling interpretive fallibility.”

A bit overwrought, perhaps, but food for thought. And they neglected to mention another telling similarity: The hearts of Men are easily corrupted.