No More Apologies -- It's Time to Stand Up for Our Convictions

For some time now, various "reporters" and on-air personalities on the Fox News Network have failed to report the full story or relevant facts, instead indulging in race baiting in order to exploit people's fears and crank up the fringe of their audience. This was exemplified by Glenn Beck's nightly assault on Van Jones earlier this year. Recently, Fox has cranked up stories about the Department of Justice's decision not to prosecute a voter intimidation case against a Black Panther group and even worse, calls for Atty. General Holder's resignation. And now, the Sherrod Debacle.

Turns out Van Jones' name was added to a website without his permission, a fact the group finally admitted some time after he resigned. And maybe he said some things about the Republican Party that he shouldn't have -- but that has nothing to do with the fact that he is a brilliant environmental organizer. It also turns out that it was the Bush Administration who decided not to prosecute the case against the black panthers because as Bush's Assistant Attorney General Perez testified, "the facts did not constitute a prosecutable violation of the criminal statues, and under the Obama Administration Justice Department a judgment was won in a civil case.

And by now we all know how the Sherrod story went down. Despite his claims to the contrary on Fox News Sunday, Chris Wallace didn't have his facts quite right. As a media matters study showed, Fox News did in fact spend a lot of air-time on July 19th and 20th cranking up the false story. Not to mention that foxnews.com bragged that shortly after they posted a "report" about the video Mrs. Sherrod resigned.

None of this is new. I don't believe all or even most of the Republican party voters are racist, but going at least as far back as Lee Atwater, the Willie Horton ads, and the attacks on John McCain in the South Carolina primaries in both 2000 and 2008, the immigration debate in 2006, there is a persistent willingness in the Republican party to use race baiting for electoral advantage. The fact is, this is racist behavior.

Now if the Tea Party, which is not a professional group of politicians have the decency to repudiate the racist fringe in their group, why can't the Republicans? Obviously they think this approach works on the margins, but even if this stuff works, it sure doesn't produce good leaders or a civil society, and it certainly doesn't produce a stronger America, it produces an even more polarized and angry America. It's that willingness to put party ahead of country that has the Republicans in such low regard.

There are lessons to be learned here. Tom Vilsack stated the first one best: don't make decisions without all the facts. To that I would add: consider the source. If it is a group of individuals or a corporation that has chronically ignored the facts and engaged in race baiting in the past, they are likely to do it again. A report by Fox News, Breitbart or Matt Drudge, ought to have -- as it does in most people's minds -- little credibility.

The second lesson is harder. Stand up for what you believe in. I admire Nancy Pelosi because she is tough, gets things done, and doesn't take crap from the right wing or any one else. After the year and a half this country has just been through, it is pretty obvious that the right-wing has no intention of cooperating with anyone, and that they will do anything to regain power, just as they were willing to do anything to hold on to it. The only reasonable approach is to stand up to them as you would any group of bullies. Call them out for what they do- or don't do as the case may be. If the Tea Party can call out some of their own members, surely we can call out a group of people who have put their party ahead of their country.

I have often said the biggest problem with the Democrats is that we are not tough enough. Now is the time to be tough. The fact is that the stimulus package has reduced unemployment from where it would have otherwise been in this Bush-induced recession (based on policies most of the Republicans now in Congress voted for). The fact is, as 60 members of the House and the CBO showed last week, the Public Option, or Medicare Buy-in, as it should more correctly be called, would have reduced the deficit over ten years by an additional $68 million dollars. The fact is that President Obama -- despite Republicans killing the climate change bill -- has done more in 18 months to change America's approach to the environment and green jobs than any president in memory.

The fact is that if we are going to tackle the deficit, it makes no sense to cut taxes for people with plenty of money while we tell people who depend on Social Security and Medicare that they have to do with less, or to play games with unemployment insurance for those who need it most.

The fact is that the Democrats won the election in 2008. The Republicans refuse to do anything for the country except say "no". That means we have to work hard and do what we believe is right. And we have to stop apologizing for it. We have to stand up for what we believe in and stop trying to make deals with people who cannot be trusted to make deals for the good of our country. It's not too late to win in 2010. Conviction politics works. Just ask the right wing!

Sarah Palin's Endorsement Of Kelly Ayotte May Have Hurt Senate Candidate's Campaign (POLL)

Sarah Palin's endorsement of Republican candidate Kelly Ayotte in the race for U.S. Senate in New Hampshire may have adversely affected the conservative contender's campaign.

A new survey from Public Policy Polling finds that Ayotte has experienced diminished support from moderate voters since the ex-Alaska Governor issued a statement of support for her candidacy.

An excerpt of analysis from PPP:

The Palin endorsement may well be playing a role in this. 51% of voters in the state say they're less likely to back a Palin endorsed candidate to only 26% who say that support would make them more inclined to vote for someone. Among moderates that widens to 65% who say a Palin endorsement would turn them off to 14% who it would make more supportive.

The polling organization notes that 47 percent of New Hampshire voters identify as moderates -- comprising the largest voting bloc in the stat

Neel Kashkari, TARP Guru, Supports Cutting Entitlements, Citing 'Me-First' Attitude Of Beneficiaries

Remember Neel Kashkari? Back during the financial crisis, Kashkari sat at the U.S. Treasury's Office of Financial Stability, where he was in charge of implementing the Troubled Asset Relief Program -- the fancy name for a wheelbarrow full of $700 billion in taxpayer money that went to revive the do-not-resuscitate banks of the world, which is exactly what those banks asked the government to do. Well, the whole experience made Kashkari terribly, terribly sad! So he went out into the woods to build himself a Cabin Of Emotions, where he could grieve over the fact that Washington, DC had lost the lustrous glamour that attracted him in the first place -- during the Iran-Contra hearings.

But since then, he was rescued from his doldrums by bond giant PIMCO, where he became its managing director of investment management. Now he's on the op-ed pages of the Washington Post, with a message for the olds: STOP BEING SO "ME-FIRST" and let us cut your entitlements!

A nation's culture can have a profound impact on its competitiveness. Our shared beliefs in free markets, fair play and the rule of law inspire entrepreneurs to pursue their dreams and give global investors confidence to bring their money to America. These beliefs have passed from citizen to citizen, from generation to generation. They have strengthened over our history and brought an important competitive edge to the United States.

Hey, let's remember some basic things before we go any further, shall we? "Free markets" equals "too big to fail banks will never be allowed to fail." "Fair play" equals "bailing out these too big to fail banks when they nearly destroy the economy while small banks die by the hundreds." "Rule of law" equals "big banks using derivatives to get around capital rules." Okay? Moving on!

Our belief in free markets is founded on the idea that each individual acting in his or her self-interest will lead to a superior outcome for the whole. The financial crisis has reminded us that free markets are not perfect -- but they do allocate capital better than any other system we know. A "me first" mentality usually makes markets more efficient.

Okay! So, a person who retires today probably entered the workforce in the mid to late 1960s. They acted in their self-interest, let's say, and this led to some "superior outcomes for the whole." It was so "me-first" of those people to not consider the possibility that decades after they started contributing to the nation's wealth, that another generation of idiots would come around and destroy it, leaving us with no other choice than to push those aging former societal contributors out onto ice floes to die! What jerks! Where was their foresight? Why weren't they smart enough to get way into toxic mortgage-backed securities? They could be the ones holding America hostage today!

Cutting entitlement spending requires us to think beyond what is in our own immediate self-interest. But it also runs against our sense of fairness: We have, after all, paid for entitlements for earlier generations. Is it now fair to cut my benefits? No, it isn't. But if we don't focus on our collective good, all of us will suffer.

Well, Neel Kashkari isn't going to suffer, because he works for PIMCO, remember? And PIMCO's brilliance was the way it strictly adhered to a "me-first" philosophy:

As of June 30th, 61 percent of PIMCO's holdings -- $500 billion -- were in the very mortgage backed securities that it's now being hired by the Fed to buy back on behalf of US taxpayers, according to a September Bloomberg report that cited data on PIMCO's own website.

That could explain why, as financial blogger Rolfe Winkler pointed out earlier today, PIMCO chief Bill Gross was sounding the alarm in early September about the disastrous fate that would befall the US economy unless the government started buying up troubled mortgage assets.

If we are to prevent a continuing asset and debt liquidation of near historic proportions, we will require policies that open up the balance sheet of the U.S. Treasury.

Within days, Treasury did what Gross was asking. In other words, as Peter Cohan, a professor of management at Babson College, put it at the time in a post on Bloggingstocks.com:

Bill Gross, who manages $830 billion, has convinced the U.S. Treasury to use your taxpayer dollars to bail him out of his bad investments.

And Gross seems to have had his eye on the endgame for a while here too. Later that month, he argued in a Washington Post op-ed that a broader bailout -- what became TARP -- was also desperately needed, and he seemed to suggest that his own PIMCO would be a perfect candidate to manage the funds.

And now, Neel Kashkari is in the Washington Post today, arguing that cutting entitlements is akin to TARP because both are "unpopular decisions that are in our collective best interest." Except that TARP benefitted PIMCO greatly and, having been done a good turn, PIMCO rescued Kashkari from his sad little cabin in the woods. Some pigs are more collectively best-interested than others.

But Kashkari says we have to act now now now! Cut entitlements before it's too late!

If we wait until the bond market shuns Treasurys, the economic consequences could be dire. Virtually overnight, we could have far less money to spend on priorities such as defense, education and research. Once confidence in U.S. Treasury bonds is lost, it could take years to return.

Let's take a look at the bond market, shall we?

That red line indicates the interest rate yield on 2-year T-Bills, currently at about 0.6%. Now, there are plenty of market experts who will be willing to debate the fine points of this, but doesn't it seem like the world's investors a) find 2-year T-Bills to be one of the safest investments around and b) are really unconcerned about the U.S. deficit? When, exactly, is the confidence going to be lost? Will it be soon?

Fun fact: Right now, the 2-year T-Bill is seen as so safe that, judging by the yields, it's apparently riskier to get a 2-year CD from a bank. The average yield on a 2-year CD is about DOUBLE that of a 2-year T-bill, according to Bankrate.com. So investors are passing up double the yield in order to buy Treasuries.

Kashkari says, "Our leaders need to make the case for cutting entitlement spending by tapping into our shared beliefs of sacrifice and self-reliance." That word -- "our" -- seems awfully ironic! Pare back now, America, so there's money on hand to save the banks again! Shacks in the woods for everyone else.