Minority Report.


Imagine for a moment you are president of the United States.

You were just elected in the midst of a worsening economic crisis, one that demands bold action and decisive leadership to confront. Fortunately, you enter office with an historic wind at your back: You enjoy unprecedented enthusiasm and goodwill from millions of new voters, a clear mandate for change, and, most importantly, sizable majorities in both the House and Senate.

You also know that the political opposition — who hold a long and storied record of being ruthless, craven and despicable to get what they want — will try to prevent your agenda by any means necessary.

And, being a student of history, you know that, particularly in the face of a poor economy, this political opposition is very likely to pick up congressional seats in the next election (with a few notable exceptions, one of which I’ll get to in a moment.) In other words, a pendulum swing against you is highly probable, and so the majorities you have are probably as big as they are ever going to get.

Basically, you have two years, and likely two years only, to do pretty much anything you want in order to grapple with this economic crisis. Do you [a] take a page from FDR’s 100 Days, go big, and push hard for the progressive agenda you laid down in your election campaign, which has the added benefit of enthusing the “rising American electorate” that got you elected? Or do you [b] try to ingratiate yourself with people who will always hate you, water down your signature legislative initiatives from the outset, and seemingly go out of your way to depress the lefty base that got you elected?

I think you see where I’m going with this.

First things first, let’s be clear about why the Republicans took back the House so decisively two days ago.

1) It’s the Economy, Stupid. Though it may be mostly Dubya’s fault, the economy is obviously still in terrible shape. The official unemployment rate hovers just under the double-digits, and real unemployment and underemployment levels are much higher. Household incomes are down, consumer debt is up, millions of homeowners are stuck with underwater mortgages, and millions more feel in danger of slipping under. As everyone knows, when economic times are bad, the party in power suffers.

Compounding the situation, families are feeling under the gun at exactly the same time that those same wealthy few who precipitated the Great Recession are now rolling in dough. Having evaded pretty much any and all serious consequences for the meltdown they created, the Big Brains on Wall Street are instead giving themselves record bonuses, and trying to profit from even more rampant corruption on the foreclosure front. To no one does this ugly sight look like change we can believe in.

2) Republicans voted, Democrats didn’t. Again, not rocket science: Democrats lost because Republicans came out and Democrats stayed home. Look at the breakdown of exit polls: As per the norm in midterms, the 2010 electorate was older than the population at large. (23% of the vote versus 13% of the population.) And 57% of those seniors, worried that the threat of Creeping Socialism might somehow interfere with their federal retirement security and universal health care, pulled the lever for Republicans.

Conversely, 29 million Obama voters did not show up to vote. “Hispanics, African Americans, union members and young people were among the many core Democratic groups that turned out in large numbers in the 2008 elections…In 2010, turnout among these groups dropped off substantially, even below their previous midterm levels.” Take voters under 30, for example, who vote Democratic at about the same rate seniors vote Republican. They went from 18% of the electorate in 2008 to 11% this year. Obviously, that’s a problem.

So, working back from these factors — economic performance and voter turnout — it follows that the two best things the administration could have done to improve Democrats’ standing this year would have been to get the economy moving again and to get the Democratic base fired up and ready to go. So what happened? Let’s look at the tape.

The Economy: As Paul Krugman has already pointed out, much of the story of this election was written way back in February 2009, when the Obama administration chose to settle on a stimulus package that was watered-down to appease Republicans who would never, ever vote for it. In fact, thanks to Larry Summers, the stimulus was low-balled from the start — Summers made sure Christina Romer’s higher-end projections for the amount needed never even made it to the president’s desk.

So the crystal was in the steel at the point of fracture, and mainly because Obama, doing the President Goldilocks routine that would become a trademark, watered down the Recovery Act early-on to appease an opposition that was unappeasable.

By late 2009, the warning signs that ARRA was probably too small were all over the place — not the least in the growing state budget crises seen all across the country. But even as Republicans throttled congressional attempts to remedy the situation, the Obama administration remained mostly passive…or, in the case of food stamps, worse. Many in the White House took up the standard of the deficit witchhunt. (Yes, there was some rhetorical urging of the tsk-tsk variety eventually, but that, as on so many other fights, was after the chips were already down.)

Going along with this frustrating passivity was the increasing sense over time that this administration, elected to be change we could believe in, was more than a little cozy with the Wall Street yokels who caused the economic disaster in the first place. Yes, TARP was originally Dubya’s baby — not that very many voters seemed to remember that fact. (And it’s hard to blame them when folks like Geithner keep touting its merits.) Still, acceding to the $700 billion bailout for Wall Street — with little to no strings attached — was an extraordinarily inopportune way to kick off an administration theoretically premised on fundamental change.

I have to confess that, at the time, I thought TARP was unfortunate but probably necessary. Two years later, I’m thinking I probably just just got railroaded, and didn’t know what I was talking about. (Hey, it wasn’t the only thing I was wrong about in 2008.) But, even back then, I argued that TARP had to come with game-changing restrictions on Wall Street’s behavior. Those, clearly, were not forthcoming.

Yes, Congress did pass financial reform — But let’s remember, Team Obama worked openly to weaken the bill, and even now certain admin folks are clearly trying to derail Elizabeth Warren, the best chance the financial reforms, however tepid, have at working as intended for consumers. (Or, to quickly take another example, there’s the matter of the HAMP foreclosure program, which, as David Dayen has documented, seems more concerned with recouping money for lenders than helping families in trouble.)

As on the finreg bill, so too on other fronts — and this is where we get to the suppressing turnout issue.

On health reform, which thank god eventually passed, we now know that the administration cut deals early on to kill drug reimportation on behalf of the pharmaceutical industry (even after Sen. Dorgan reintroduced the idea) and, more egregiously, to kill the public option on behalf of AHIP and the hospitals. Looking back, the president signaled the public option’s expendability in his September 2009 health care address, another classic example of the wait-too-long-then-try-to-swoop-in-and-save-the-day legislative strategy usually preferred by the White House. And by the eve of the midterms, he was openly mocking public option supporters at fundraisers.

But, even those fundamental breaks with real reform aside, the entire health care process got badly screwed up when the administration, in a misguided attempt to curry bipartisan favor for reform, let Max Baucus dink around for weeks on the Senate Finance Committee. While Republican Senators Snowe and Grassley played Lucy to Baucus’ Charlie Brown and kept moving the football, the Tea Party August of 2009 took shape, and almost a year in legislative time was lost. And, by the time Baucus finally released the durned thing, the bill had once again been watered down to gain imaginary Republican votes that were never, ever going to be forthcoming.

The litany of Obama’s other sins by now are well known. As noted before, this administration has been absolutely egregious on civil liberties, all the while telling us to “look forward, not backward” on Dubya’s torture regime. (But different rules for everyone else, it seems.) Meanwhile, Gitmo is still open, and DADT is still enforced. Immigration reform did not happen. Nor did energy reform, despite House Democrats going out on a limb to pass a bill way back in June of 2009. (Yesterday, Obama the “shellacked” buried this bill for good.) And so on.

If all these compromises and capitulation — which were never political necessities so much as unforced errors — weren’t enough to depress the base, the administration’s press arm continued a steady diet of hippie-punching. “Left of the left“, pajama-wearing bloggers, the “professional left” — time and again, “senior advisors” and press flaks went out of their way to scorn the people who sweat blood and tears to get them elected. I already mentioned Obama ridiculing public option supporters — Well, where did folks ever get the notion that a wonky, badly-named fix like the public option was the ground to fight on anyway? Because the president told us it was important.

To be clear: I am not arguing that Obama hasn’t accomplished anything (although, in almost all cases — including health care reform, much more credit should really go to the very unfairly maligned Speaker Pelosi — she’s the one who made it all happen.) But, at every point down the line, for every piece of legislation that did pass, you have to factor in the opportunity costs that were lost. And consistently, this administration has pursued the politics of the lowest common denominator. To quote the prescient Drew Westen once again:

I don’t honestly know what this president believes. But I believe if he doesn’t figure it out soon, start enunciating it, and start fighting for it, he’s not only going to give American families hungry for security a series of half-loaves where they could have had full ones, but he’s going to set back the Democratic Party and the progressive movement by decades, because the average American is coming to believe that what they’re seeing right now is ‘liberalism,’ and they don’t like what they see. I don’t, either. What’s they’re seeing is weakness, waffling, and wandering through the wilderness without an ideological compass. That’s a recipe for going nowhere fast — but getting there by November.

And, hey, look what happened.

Remember how I mentioned a midterm outlier way up at the beginning of this post? That was 1934 — when, in an economy even worse than the one America faces now, Roosevelt managed to pick up seats in both the House and Senate. FDR gave us the 100 Days, a flurry of political activity we haven’t seen before or since. Now, granted, the Roosevelt team did not have to contend with either unfettered money corrupting the system or a pathetic Fourth Estate in a death spiral — both severe problems with our current political culture that must be addressed. Still, when elected in the midst of a similar economic crisis, with similar expectations, this administration did not bring about a 100 Days. It gave us Three Months of Max Baucus dicking around to appease intractable Republicans.

So why did the 2010 shellacking happen? Because of the economy, yes. And because of low turnout, yes. And also because of troubling trends like corrupting money everywhere and a national press in severe decline — The fact that the media followed Christine O’Donnell more than any other 2010 candidate tells you all you need to know about that broken-down disaster we call the Village these days.

But, nonetheless, all of these determining factors were exacerbated in the wrong direction by the administration’s fatal addiction to the Fetal Position fallacy. As I said of this year’s State of the Union address, “people were not looking to President Obama for this sort of deficit tsk-tsking and small-bore, fiddling around the margins. You’d think we Dems would have learned this by now. But curling up into a fetal position and mouthing moderate GOP-lite bromides will not stop the Republicans from kicking us, ever.

Some argue politics is the art of the possible. That’s true, but I believe much, much more was possible if this administration had actually deigned to fight for it.

Some say the president can only do as much as Congress lets him — he needs 60 votes, yadda yadda yadda. I’d say that he had 60 votes, and even then did not push to make things happen as much as he could. I would also argue that the presidency of the United States is actually a remarkably powerful position these days, that Obama has showed no inclination to act progressive on crucial matters like civil liberties that are totally in his bailiwick, and that, even now with a Republican House, the administration could move forward with a progressive agenda, if it so desired.

Some — such as pathetic, DLC-brand fortunate sons like Evan Bayh and Harold Ford — say progressivism was tried and found wanting. I would argue progressivism was not even tried.

Some say it is time to go for the Dems to embrace a more “centrist”, GOP-lite Third Way from now on. I think we’ve been experimenting with that sad sack of failure for decades now — it’s our First Way — and it’s been proven over and over again not to work. (Just ask the Blue Dogs, who got eviscerated on Tuesday. Why vote for Republican-lite when you can have the real thing?)

Basically, it comes to this. Without vision, the people perish…and vote GOP. And because this administration did not go big, because it did not produce the change people so desperately desired, and because it forsook the possibility of real progressivism early and often to indulge their fantastical belief in the magical unicorns of High Broderism, the Democrats have now lost the House — ironically the one branch of government that, under Speaker Pelosi, actually tried to get done what had been promised.

Now, matters are worse.

“The Beast” is not contained.

The relationship between the federal government and the oil company has been an awkward collaboration all along — “We have them by the neck,” Interior Secretary Ken Salazar said of BP in congressional testimony last week — but it reached a turning point Monday when the administration said it no longer wants to share a podium with BP at the daily briefing in Louisiana. Instead, the national incident commander, Coast Guard Adm. Thad W. Allen, will give a solo briefing wherever he happens to be.

With “Top Kill” a failure, the way forward murky, the environmental impact likely irrevocable, and oil still flowing into the Gulf at a rate three times what BP tried to spin, the Obama administration begins to move toward a more confrontational footing, including having Attorney General Holder look into a possible criminal investigation. Yeah, I’d say there’s a case there. And it’d be a much better use of Justice’s time than its flat-out reprehensible war on whistleblowers. (Aquaman cover via Graphic Policy. And Spongebob fared little better.)

Update 2: “‘We will prosecute to the fullest extent of the law, anyone who has violated the law,’ Holder said. ‘This disaster is nothing less than a tragedy.’” I’m all for it — Let’s get some accountability here for once. But, hey, you know what else is a tragedy? Torture. And you know what else? Indefinite detentions. And you know what else? The fraud-fueled Wall St. meltdown. As I noted above, the only folks this Justice Dept. seems to have been cracking down on so far, in full defiance of 2008 campaign promises about transparency, are whistleblowers. Their priorities have seemed awfully screwed-up thus far, to say the least.

In a Flash, a Grim Recognition.

The initial reaction of traders to the Flash Crash was that some human must have made a mistake submitting a trade. But the SEC…hasn’t found evidence of a ‘Fat Fingered Louie’ punching a billion rather than a million on an order. In fact, the SEC still doesn’t know what caused this crash. Curiously, no one is focusing on what caused the crash to stop…JP Morgan and Merrill Lynch were big buyers precisely as the market hit minus one thousand points on the Dow. It seems rather odd that both these firms at the same time would see the same trading opportunity.

In fact, what they did was violate one of the prime rules of trading: never try to catch a falling knife. The market was falling fast and furious at the point they entered the pit to buy equity futures, so why did they take such an enormous risk? We learned yesterday that both of these firms, plus Goldman Sachs, were such superb traders in the market that none of them had a single losing trading day all last quarter. This type of risky trade is not how you get to be a superb trader.

Over at the Agonist, Numerian digs deep into last week’s “Flash Crash” — and comes to some very troubling conclusions. To wit, the big players know the thresholds where the trading algorithms kick in, and thus, basically, the fix is in. “The stock market seems to be nothing but a playground for the big banks and other connected firms who get a preview peek at everything that goes through the market, and who can program their computers to skim profits off daily with no risk whatever. The stock market is also, quite possibly, prone to more serious manipulation that resulted in last Thursday’s crash.

Oof. I’m out of my comfort zone when it comes to understanding market behavior, so I hope someone has a better explanation for the Flash Crash than the disconcertingly plausible one offered here. (Just saying Greece doesn’t quite cut it, I don’t think.)

Pouring Water on a Drowning Man.

“The Times article, based on information from former intelligence officers who spoke on condition of anonymity, said Abu Zubaydah had revealed a great deal of information before harsh methods were used and after his captors stripped him of clothes, kept him in a cold cell and kept him awake at night. The article said interrogators at the secret prison in Thailand believed he had given up all the information he had, but officials at headquarters ordered them to use waterboarding.” Perusing last week’s sordid torture memos, eagle-eyed blogger Marcy Wheeler discovered an unsettling statistic: two suspects — Abu Zubaydah and Khalid Shaikh Mohammed — were waterboarded by the CIA 266 times. Zubaydah “revealed no new information after being waterboarded, the article said, a conclusion that appears to be supported by a footnote to a 2005 Justice Department memo saying the use of the harshest methods appeared to have been ‘unnecessary’ in his case.

Meanwhile, as right-wing stooges like former CIA director Michael Hayden and Mike Allen’s anonymous friend excoriate the president for breaking tradition and revealing the illegalities of the Dubya era, Chief of Staff Rahm Emanuel ventured onto the Sunday shows to tamp down talk of any prosecutions, even for the higher-ups. “[P]eople in good faith were operating with the guidance they were provided. They shouldn’t be prosecuted…those who devised policy, he [Obama] believes that they were — should not be prosecuted either, and that’s not the place that we go — as he said in that letter.

Wrong answer, Rahm. And, unless President Obama were to grant full pardons to the architects of Dubya-era torture, it’s not even his call whether or not they should be prosecuted. In fact, choosing not to prosecute them would constitute a violation of international law.

Update: The White House doesn’t necessarily agree with Rahm. “[A]dministration officials said Monday that Mr. Emanuel had meant the officials who ordered the policies carried out, not the lawyers who provided the legal rationale. Three Bush administration lawyers who signed memos, John C. Yoo, Jay S. Bybee and Steven G. Bradbury, are the subjects of a coming report by the Justice Department’s ethics office that officials say is sharply critical of their work. The ethics office has the power to recommend disbarment or other professional penalties or, less likely, to refer cases for criminal prosecution.

Update 2: “With respect to those who formulated those legal decisions, I would say that that is going to be more of a decision for the attorney general within the parameters of various laws, and I don’t want to prejudge that.” President Obama opens the door further for prosecution.

Inside our Room 101.

“You asked me once,” said O’Brien, “what was in Room 101. I told you that you knew the answer already. Everyone knows it. The thing that is in Room 101 is the worst thing in the world.”

The door opened again. A guard came in, carrying something made of wire, a box or basket of some kind. He set it down on the further table. Because of the position in which O’Brien was standing, Winston could not see what the thing was.

“The worst thing in the world,” said O’Brien, “varies from individual to individual. It may be burial alive, or death by fire, or by drowning, or by implement, or fifty other deaths. There are cases where it is some quite trivial thing, not even fatal…In your case,” said O’Brien, “the worst thing in the world happens to be rats.”

And, sometimes, here in our own Room 101, it’s insects. As breaking everywhere this afternoon, the President authorizes the release of four long-awaited CIA memos that detail the rationalizing and application of Bush-era torture policies. [No. 1 | No. 2, No. 3a/3b | 4a/4b.] And, as Salon‘s Glenn Greenwald notes, they seem to suggest that even the parties-that-be knew what they were doing constituted torture. (“Each year, in the State Department’s Country Reports on Human Rights Practices, the United States condemns coercive interrogation techniques and other practices employed by other countries. Certain of the techniques the United States has condemned appear to bear resemblance to some of the CIA interrogation techniques…The State Department’s inclusion of nudity, water dousing, sleep deprivation, and food deprivation among the conduct it condemns is significant and provides some indication of an executive foreign relations tradition condemning the use of these techniques.“) But, they approved these already-condemned practices as legal anyway, with the caveat that they “cannot predict with confidence whether a court would agree with this conclusion.” Yeah, you think?

Well, let’s hope the courts get a chance to decide either way. While releasing these documents today, Pres. Obama and Attorney General Holder also made clear that the CIA interrogators involved will not be prosecuted for these acts. “‘It would be unfair to prosecute dedicated men and women working to protect America for conduct that was sanctioned in advance by the Justice Department,’ he said in a statement.” Um, I’m of the opinion that it would be unfair to get strung up in a, cough, “stress position” by a bunch of Cheney-authorized CIA yahoos and then see no legal recourse for it. (And, hey, “just following orders” — what a novel legal defense. Who were the ad wizards that came up with that one?)

On the other hand, as the WP points out: “Today’s carefully worded statement left open the possibility, however, that agents and higher-level officials who may have ventured beyond the strategies approved by Bush lawyers could face legal jeopardy for their actions.” That still closes too many legal doors, imho. The strategies approved by Bush lawyers are horrible — and illegal — enough. But, at least we can still hold out the minute possibility that the real, top-level architects of Dubya-era torture policy will face some sort of prosecution for their crimes, above and beyond their inevitable condemnation in the history books. (President Obama may argue that “[t]his is a time for reflection, not retribution,” but, the law is the law. And, as he should know, pardoning Nixon didn’t do Gerald Ford any favors.)

Either way, let’s be clear: These memos prove beyond a shadow of a doubt — as if there were any doubt left — that it was the stated and directed policy of the Dubya-era CIA to engage in acts they knew to be torture. That is unacceptable, completely antithetical to our ideals, and exceedingly worthy of a criminal investigation. If, in the name of national unity or CIA morale or whatever, the president wants to give a pass to the flunkies who actually held the victims down as they flailed, choked, or writhed in agony…well, that just means somebody else higher-up has to pay. Fine. But, if the rule of law means anything anymore, and I believe it does, the people responsible must be held to account.

Hulk Free to Smash Again.

Mr. Holder said in a statement that ‘I have concluded that certain information should have been provided to the defense for use at trial.'” Hmmm. Why does Clay Davis come to mind? After discovering that agents at Justice and the FBI tried to frame a guilty man, as it were, Attorney General Eric Holder drops the prosecution of 85-year-old former Senator Ted Stevens. “The collapse of the Stevens case was a profound embarrassment for the Justice Department, and it raised troubling issues about the integrity of the actions of prosecutors who wield enormous power over people they investigate.” Uh, ok…but why aren’t we seeing this judicious, otherwise laudable commitment to fair play when it comes to state secrets and victims of extraordinary rendition?

At any rate, as official Washington rushes to embrace Stevens once more, let’s keep the big picture in mind: “[E]ven leaving criminal wrongdoing aside, no one disputes that Stevens accepted hundreds of thousands of dollars worth of home renovations and gifts (remember that massage chair?) from a supporter who had a slew of business interests that Stevens was in a position to affect as a powerful federal lawmaker and appropriator. That’s what we call ‘corrupt’. As Melanie Sloan of Citizens for Responsibility and Ethics in Washington put it, according to The Hill’s paraphrase: ‘Holder’s decision in no way should be viewed as a vindication of Stevens but rather as an indictment of the Justice Department’s inability to do one of its most important jobs.‘” True, that.

The Sheltering Sky.

“‘The universe of offshore tax cheating has become so large that no one, not even the United States government, could go after all of it.” A new Senate report delves into offshore tax shelter schemes by extremely wealthy individuals, ones which cost the American public billions in federal tax revenues (and which often utilized fronts based in the Isle of Man, once the long-time home of my now-deceased English grandparents.) “‘We need to significantly strengthen the aiding and abetting statutes to get at the lawyers and accountants and other advisers who enable this cheating,’ Senator Levin said, adding that ‘we need major changes in law to stop the use of tax havens’ by tax cheats.

Embezzle for Freedom.

“Unbeknownst to almost all of Washington and the financial world, Bush and every other President since Jimmy Carter have had the authority to exempt companies working on certain top-secret defense projects from portions of the 1934 Securities Exchange Act. Administration officials told BusinessWeek that they believe this is the first time a President has ever delegated the authority to someone outside the Oval Office”. In related news (and as seen at Ed Rants), Dubya has apparently, on the sly, “bestowed on his intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations.”

Morally Bankrupt, pt. II.

Even as the fundies rattle the leash, the House moves to placate the GOP’s real masters by approving the corporate-friendly bankruptcy bill 302-126. “Its passage by Congress is a victory for executives in the credit card, retail and auto financing industries who have pushed it for nearly a decade.” But, not to worry, y’all — the base is protected: The bill “preserve[s] loopholes that enable wealthy individuals who file for bankruptcy to shield unlimited amounts of money in complex trusts and in multimillion-dollar homes in states including Texas and Florida.”

“Morally Bankrupt.”

“So what does the bill do? It makes it harder for average people to file for bankruptcy protection; it makes it easier for landlords to evict a bankrupt tenant; it endangers child-support payments by giving a wider array of creditors a shot at post-bankruptcy income; it allows millionaires to shield an unlimited amount of equity in homes and asset-protection trusts; it makes it more difficult for small businesses to reorganize while opening new loopholes for the Enrons of the world; it allows creditors to provide misleading information; and it does nothing to rein in lending abuses that frequently turn manageable debt into unmanageable crises. Even in failure, ordinary Americans do not get a level playing field.” Salon‘s Arianna Huffington ably dissects the GOP bankruptcy legislation currently making its way through Congress. Update: It passes the Senate, with the help of 18 Dems. For shame.