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Dirty Money

Super PACs have garnered a lot of attention lately, but they aren’t the real money in politics. Far worse are so-called “dark-money nonprofits”, which are allowed to keep their donors secret.

The Citizens United decision not only allows corporations to spend unlimited amounts of money on politics, it gives the same right to nonprofits. However, a nonprofits are supposedly not allowed to be primarily political in purpose or they can lose their IRS status. Tax law requires that the primary work of a nonprofit must be to benefit the community at large, not a single candidate or party. But that hasn’t stopped nonprofits like Karl Rove’s Crossroads GPS, or David Koch’s Americans for Prosperity from becoming the new political cash cows, since donors to nonprofits can keep their identities secret.

How bad is it? Back in 2010, dark-money nonprofits already spent 50% more than Super PACs. Through the spring of 2012 it just got worse, with 91% of political advertising coming from these nonprofits, including nonprofit trade groups like the US Chamber of Commerce (which also do not have to disclose their donors).

But as of last Saturday, the rules are changing. Previously, these organizations could run unlimited “issues” ads (politically oriented advertising that doesn’t endorse or oppose a specific political candidate) without disclosing who is paying for the ad. But a recent court case closed this loophole. So these nonprofits have a Catch-22 situation. If they run “issues” advertising, they now have to disclose the donors who paid for that ad. They can still run explicitly political ads (which endorse or oppose a specific candidate) without disclosing their donors, but if they run too many of those they risk losing their tax exempt status.

Of course, donor secrecy is the primary reason these dark-money nonprofits exist. The US Chamber of Commerce has already declared that they will refuse to disclose their donors. And Americans for Prosperity has made it clear that any change forcing them to disclose their donors is off the table.

Of course, none of this may matter. Let’s say that in response to the court decision, a group like Crossroads GPS just stops running issues ads (so they don’t have to disclose their donors) and instead just runs explicitly political ads (e.g., endorsing Romney or telling you to vote against Obama) until the upcoming election. What could happen to them? They could be slapped with a fine. They could even be shut down. But the wheels of justice turn slowly, so it is unlikely anything would happen until after the election. By then it would be too late. Even if a nonprofit becomes blatantly political and gets shut down, another one would just spring up to replace it.

And that my friend, is why corporations (including nonprofits) are not people. You can’t throw them in jail. According to a University of California election law expert, “If a nonprofit has to sacrifice its name and pay a fee, and it helps keep the House, win back the Senate, and take back the White House, that’s a small price to pay.”

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Short Sighted

As if it weren’t bad enough that Republicans were deliberately blocking bills that would help the economy, in order to win elections. We almost expect that of them.

But this is the height of cynicism and hypocrisy.

Ohio’s Senate race is neck-and-neck, with progressive Sherrod Brown pitted against Republican Josh Mandel. Mandel vocally opposed raising the debt ceiling last year, and has indicated that he would vote against it if elected to the Senate. If the government is not able to meet it’s financial obligations it will cause a default and likely financial chaos.

But Mandel won’t feel the pain. Both he and his wife have invested in financial instruments that “short” US Treasury bills. If the government defaults, the value of Treasury bills would go down dramatically, and this investment — which bets against Treasury bills — would shoot up in value.

Seriously. Not only is Mandel voting against the US economy, he’s betting against it.

Should we be surprised? Last year, it was discovered that Eric Cantor — the Republican’s chief debt ceiling negotiator — had an investment in the same financial instruments.

This may be the ultimate in cynical insider trading, but despite a new law that explicitly bans members of Congress from insider trading, that law only applies to trading using confidential information they receive as lawmakers. In addition, that law was weakened by Republicans before it was passed, and according to the New York Times “prosecutions would still be difficult”. For now, the best way to stop politicians who bet against the country they are sworn to protect is to vote them out of office.


© Clay Bennett

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“Dark Wizards for a Better America” Super PAC

Even if you aren’t a Harry Potter fan, McSweeney’s has a hilarious article called “In Hindsight, Maybe We Shouldn’t Have Let Lord Voldemort Start His Own Super PAC”. Here’s just a short quote from it:

I’m not saying that Super PACs are inherently evil or anything. After all, look how that Citizens United case turned out—even the Supreme Court figured that well-funded special interest groups ought to have a constitutionally protected right to inject extreme sums of money into the political process. I mean, every American has that right, don’t they?

It just seems like under the old rules, Voldemort had a slightly harder time bending Congress to his infernal will. Campaign finance regulations used to place a cap on individual contributions, and the identity of each donor had to be logged with the FEC—so even He-Who-Must-Not Be-Named had to be, you know, named.

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State of the Statesman


© Lee Judge

I find this comic especially funny, since it came out before Mitt Romney’s disastrous attempt to be statesmanlike in England.

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Late Night Political Humor

“A new CBS poll found that 47 percent of voters are supporting Mitt Romney, while 46 percent support Obama. Well, it makes sense, because if Romney wins, it’s definitely going to be thanks to the one percent.” – Jimmy Fallon

“Jobless claims rose again by 35,000 last week. Not good. But it does show that if you’re unsuccessful in this country, you didn’t do it on your own. You had help. Thank you, President Obama.” – Jay Leno

“President Obama hasn’t met with his jobs council in over six months. You know the reason? They’re all out looking for jobs.” – Jay Leno

“Federal Reserve chairman Ben Bernanke told a congressional committee the economic recovery is weakening. But the good news is most Americans will not be affected because they had no idea there was a recovery.” – Jay Leno

“A new study claims that for the first time ever, Canadians are wealthier than Americans. We are their Mexico now it turns out.” – Jimmy Kimmel

“Over the past five years, the value of the Canadian household has risen above the American household. I think most of that came from Justin Bieber and he belongs to us now.” – Jimmy Kimmel

“The United States Postal Service is about to default on $5.5 billion. They made the payment but the check got lost in the mail.” – Conan O’Brien

“How about those Olympic uniforms? They’re made by Ralph Lauren and they’re beautiful. They’re colorful, they’re odd. I mean they look like the cast of ‘Glee.’ They look like the entire navy of Monaco.” – David Letterman

“At the Beijing Olympics in 2008, they handed out 100,000 condoms. This year it’s 150,000. That’s 100,000 for the U.S. basketball team and 50,000 for everyone else.” – Jimmy Kimmel

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The Manchurian Candidate

Lost in all the brouhaha about Mitt Romney’s gaffe-o-rama in England is the fact that one of the main things he did while in London is hold a fundraising dinner in a foreign city, where scandal-plagued international bankers paid $25,000 to $75,000 a plate to support his election campaign.

That’s right. Romney is explicitly asking for money on foreign soil to influence a US election. He may insult the Brits over their Olympic preparations, but he’s happy to take their money and do their bidding.

Oh, and the fundraiser almost got derailed when Romney’s co-chair for the dinner had to resign his job as CEO of Barclays bank because of his involvement in the LIBOR banking scandal. But it turned out ok, because another banker (the chief lobbyist for Barclays) took his place. Other people at the dinner include insiders from “Bank of Credit Suisse, Deutsche Bank, HSBC, Goldman Sachs, Blackstone and Wells Fargo Securities — and, of course, Bain Capital Europe.” But we don’t know who else attended, because US law doesn’t require Romney to report who attends his fundraising dinners abroad.

Just as Sheldon Adelson is throwing unlimited amounts of (mostly foreign) money at the Romney campaign in order to avoid prosecution for violating the law, maybe Romney just considers it good business to get money from international bankers who want to avoid any responsibility for the LIBOR (London InterBank Offered Rate) scandal, where top bankers were found guilty of distributing “false interest rates in order to fool investors and game the international economy.” Of course, if that screws up the international economy or makes people taking out a home mortgage to pay too much in interest, that’s probably not something Romney would be concerned about.

Interestingly, the dinner was held at the Mandarin Oriental hotel, and is estimated to have raised more than $2 million for Romney.

UPDATE: Romney is also holding a fundraiser in Jerusalem on Monday, but in a last minute decision he decided to kick the media out of the event, which violates the agreement he set up with the media back in April. So much for being transparent. The Romney campaign refuses to even discuss why this fundraiser is closed to the media. But the likely reason is that he wants to tell his donors something he does’t want the American people to hear. According to the Washington Post:

Romney has a history of delivering different messages to his donors when reporters are not present to hear them. At a closed-press fundraiser in Florida this spring, reporters from NBC News and the Wall Street Journal, without Romney’s knowledge, overheard the candidate outline new tax policy proposals and suggest that he might dramatically downsize the Department of Education and eliminate the Department of Housing and Urban Development.

We do know that one of the people who will be attending the fundraiser is billionaire Sheldon Adelson, who is flying over from the US.

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Real Issues of the Future


© Ruben Bolling

I said it already, but you really do need to read the article about Climate Change in Rolling Stone. There is absolutely no excuse for us not having the political will to do something about this.

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Late Night Political Humor

“During a fundraiser a country club in Mississippi, Mitt Romney said the GOP is a party focused on helping the poor. See, his wife Ann is right, he is funny. He can make jokes.” – Jay Leno

“In his new campaign ad, President Obama asks, ‘What is Mitt Romney hiding?’ My guess: a personality.” – Jay Leno

“The Obama administration has reportedly told Syrian rebels they can’t help them until after the election. So at least they’re consistent. That’s the same thing they’re telling us. ‘Can’t help you until after the election.” – Jay Leno

“Romney’s surrogate, John Sununu, he’s in hot water for saying that, ‘I wish president Obama would learn how to be an American.’ Well, that’s kind of insulting, isn’t it? Don’t you think? President Obama spends money he doesn’t have. He loves to skip work and play golf. He sneaks away from his wife to eat fatty foods. What is more American than that?” – Jay Leno

“Well, President Obama and first lady Michelle went to see the U.S. Olympic basketball team play Brazil the other day. And during the game, they were put on the kiss cam. At first, they didn’t kiss and the crowd booed them. Then the camera went back to them. And they finally did kiss. Isn’t that amazing? A politician in Washington caught on camera kissing a woman he’s actually married to?” – Jay Leno

“President Obama said 1992’s dream team was better than this year’s Olympic basketball team. Which is interesting because a lot of people think 1992’s president is better than this year’s president.” – Jimmy Fallon

“Every American athlete who wears the Chinese made uniforms will get a free bootleg copy of the new Batman movie.” – Jay Leno

“Batman is a billionaire who doesn’t trust the system to get the job done. He has a butler and an awesome car that gets like two miles to the gallon. He is the most Republican superhero of all time! Batman is a Republican.” – Craig Ferguson

“North Korean leader Kim Jong-Un has been awarded the highest rank in the country’s military. The decision was praised by everyone from Parliamentary leader Kim Jong Un to opposition leader Kim Jong Un.” – Conan O’Brien

“We’re learning more and more about this guy Kim Jong-Un. New vicious, evil dictator of North Korea. Quite a … Apparently quite a ladies’ man. For a long time he was known as Kim Jong Clooney.” – David Letterman

“The boy Scouts of American has announced that they will continue to enforce their policy of banning openly gay boys from being scouts and openly gay adults from taking leadership positions in the organization. Between this and same sex marriage, people really don’t want gay people tying knots.” – Jimmy Kimmel

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Stumbler in Chief

Despite my opinion of Mitt Romney, I always thought that at least he is more intelligent than our last Republican president. But now I’m not quite sure about that.

Romney is in the middle of a trip to England, which is supposed to show him acting like a statesman. It also helps that the Olympics are starting on Friday, because it gives Romney a chance to remind people that he ran the Salt Lake City Winter Olympics.

Until now, the Olympics seemed to be the only part of his career that Romney was willing to talk about. If fact, he is so proud of his Olympics that he wrote a book about it called “Turnaround: Crisis, Leadership, And The Olympic Games“. His role in the Olympics was a major factor in his winning the governorship of Massachusetts (something that he doesn’t like to talk about).

But it turns out that Romney saved his Olympics on the back of the taxpayers. He lobbied for so much money from the federal government that he had to be registered as a lobbyist. Which is hypocritical since Romney attacked both Newt Gingrich and Rick Santorum during the primary for their work as lobbyists.

So how much money did Romney get from the government? How about $1.3 billion from the feds, plus more from the state of Utah. That’s more taxpayer money spent than all the previous Olympics put together. Even Republicans called the Salt Lake games “an incredible pork-barrel project”, “a ripoff of the taxpayers”, and “a national disgrace”, and called for a federal investigation into corruption.

So what does Romney do when he arrives in London for their Olympics? On Wednesday, Romney was interviewed by NBC, and in an easy warm-up question was asked about his wife’s horse, Rafalca, which is competing in the Olympics dressage event, and whether Britain is ready to host the Olympics. Easy questions. But Romney blows both of them.

First, he insults the Brits by saying about the preparations for the Olympics “There are a few things that were disconcerting. The stories about the private security firm not having enough people, the supposed strike of the immigration and customs officials – that obviously is not something which is encouraging.”

Prime minster David Cameron, whom Romney was scheduled to meet on Thursday, shot back:

We are holding an Olympic Games in one of the busiest, most active, bustling cities anywhere in the world. Of course it’s easier if you hold an Olympic Games in the middle of nowhere.

Zing!

And the mayor of London also strikes back in a speech at the Olympic torch ceremony:

There are some people who are coming from around the world who don’t yet know about all the preparations we’ve done to get London ready in the last seven years. I hear there’s a guy called Mitt Romney who wants to know whether we’re ready. Are we ready? Are we ready? Yes, we are!

Note that Cameron and the Mayor are both conservatives. Imagine if it was someone who didn’t like him.

Oh, and about that question about his wife’s horse? Romney replied:

I have to tell you. This is Ann’s sport. I’m not even sure which day the sport goes on. She will get the chance to see it, I will not be watching the event. I hope her horse does well.

As conservative Andrew Sullivan put it:

WTF? If your spouse’s horse were in an Olympic contest, would you not even watch? This is either a fib, designed to insulate him from whatever minimal fallout there is from owning a dressage horse; or it’s true and he’s just unlike other human beings. I mean, Obama makes sure he sees his daughters’ high school sports games. But Romney won’t even watch his wife’s horse at the Olympics?

One British newspaper tweeted “Can this get any worse for Romney?” Indeed it could. Another British newspaper even made a list of all the “boobs, blunders, clangers” that Romney has already dropped in just the first two days of his trip.

The worst gaffe? Romney commented to the press about his meeting with the head of the MI6, the international arm of the British secret service. But the MI6 schedule is supposed to be secret and it is a serious breach of protocol for Romney to mention it. Oops. So much for burnishing his foreign policy credentials.

Time magazine sums it up this way:

Romney’s blunders have undercut the entire purpose of the trip, which was to prove he could adequately represent U.S. interests with international leaders despite his scant foreign policy experience. He hasn’t met that standard so far. Even Drudge has turned against him.

UPDATE: Carl Lewis, one of our greatest Olympic champions of all time, said of Romney’s visit to England: “Some Americans shouldn’t leave the country.”

And even Karl Rove, who is spending millions of dollars to get Romney elected, is shaking his head at Romney blowing what should have been a perfect photo-op.

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Tightwad Obama

Republicans have repeated the lie that Obama is a big spender so often, that even some democrats believe it. But the fact is that federal spending under Obama has increased at the lowest rate since Eisenhower wound down the Korean war. Adjusted for inflation, federal spending under Obama has gone down. Even not adjusted for inflation, in Obama’s first budget (for fiscal year 2010), spending in raw numbers went down 1.8%. And in his budget for 2013 spending is scheduled to fall 1.3%. How does this compare to other presidents?

It goes back even further. Indeed, the poster boy for cutting government spending is Herbert Hoover, but even Hoover increased spending by 12.3% a year.

So how have Republicans convinced people that Obama is a big spender? Part of it is by repeating it so often that people start to believe it. As Mitt Romney recently put it “I will lead us out of this debt and spending inferno.” The other part is from blaming the 2009 budget on Obama. Forbes magazine explains:

So, how have the Republicans managed to persuade Americans to buy into the whole “Obama as big spender” narrative?

It might have something to do with the first year of the Obama presidency where the federal budget increased a whopping 17.9% — going from $2.98 trillion to $3.52 trillion. I’ll bet you think that this is the result of the Obama sponsored stimulus plan that is so frequently vilified by the conservatives… but you would be wrong.

The first year of any incoming president term is saddled — for better or for worse — with the budget set by the president whom immediately precedes the new occupant of the White House. Indeed, not only was the 2009 budget the property of George W. Bush — and passed by the 2008 Congress — it was in effect four months before Barack Obama took the oath of office.

Even if you attribute the stimulus spending in 2009 to Obama, along with spending for the children’s health care program and other bills passed in 2009, spending under Obama still increased only 1.4% a year.

Making this even more ironic, the Heritage Foundation fights back by blaming the entire 2009 budget on Obama, and then hypocritically use as an example of big spending by Obama the Affordable Care Act (ObamaCare), which was not only their idea in the first place, but which the CBO says will reduce the deficit. Also, they continue to condemn any efforts to rein in our out-of-control military spending. And where were they when Cheney was claiming that deficits don’t matter, and Dubya was spending like a drunken sailor with a pocket full of credit cards?

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Gun Control Thought Control

While I believe in the second amendment right to bear arms, even I am amazed that we can’t seem to have a reasonable conversation in this country about guns. Isn’t there anything we can do to reduce the insane amount of gun violence we have in this country, without infringing on people’s right to own guns? After all, we also have the right to free speech, but that doesn’t mean you have the right to slander or libel people, or yell “fire” in a crowded theater. Why is even talking about guns off limits?


© Joel Pett

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Deliverance

DC Douglas makes fun of Romney’s latest attack on Obama:

As usual the Romney campaign edited Obama’s words (splicing out “roads and bridges”) to make it sound like Obama was dissing entrepreneurs and claiming that they didn’t build their own businesses (when he was actually saying that they didn’t build the roads and bridges they depend on). Like, how incredibly stupid would Obama have to be to say something like that?

In addition, Jack Gilchrist, the star of their attack ad who claims that he didn’t have any help from the government to build his business actually has taken quite a bit of money from the government. Not only that, but afterward Gilchrist went on Fox News and agreed with Obama that he had plenty of help from the government.

Oh, and the Obama campaign released a video showing Romney agreeing with Obama that businesses depend on the government — you know, things like education, roads, bridges, and other minor stuff like the Internet.

But for the best take on this whole thing, watch our favorite curmudgeon Lewis Black on the Daily Show:

UPDATE: PolitiFact rates Romney’s attack on Obama as False, as do FactCheck.org and the Washington Post Fact Checker.

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Changing the Climate of the Debate about Climate

Just a quick note about a really good article in Rolling Stone about the math of climate change. Don’t let the word “math” in the title scare you — this is a really easy to understand explanation of what is happening. And what we need to do about it — before it is too late.

I like their suggestion, which is similar to how pressure was applied to South Africa to end Apartheid. It just could work. Go read the article now.

Ironically, a freaking music magazine has turned into one of the best sources of clear information about politics and the important issues of the day.

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Revenge of the Internet

As someone who has been working with the Internet since close to the beginning, I almost blew a gasket yesterday when I read an article in the Wall Street Journal by Gordon Crovitz claiming that “Contrary to legend, it wasn’t the federal government” who invented the Internet. The article was meant as a slap against Obama, who in a speech said “The Internet didn’t get invented on its own. Government research created the Internet so that all companies could make money off the Internet.”

It isn’t just that the premise of the article is wrong. It is so full of misinformation, ignorance, and baldfaced lies, it doesn’t make any sense at all. The article even gets simple facts wrong, like the location of the headquarters of Xerox. Or it claims that the Internet was born when Xerox PARC developed the Ethernet protocol to link different computer networks. Idiots! Ethernet is a computer network, not a way to link networks. Or that Apple took this technology because Xerox “had no idea what they had”. Indeed, Apple did borrow technology from Xerox PARC, but that technology was the graphical user interface, not anything related to networking or the Internet.

Luckily, the response from the tech community was swift. For example, Crovitz quotes Michael Hiltzik’s book about Xerox PARC, but Hiltzik shot back:

And while I’m gratified in a sense that he cites my book about Xerox PARC, “Dealers of Lightning,” to support his case, it’s my duty to point out that he’s wrong. My book bolsters, not contradicts, the argument that the Internet had its roots in the ARPANet, a government project.

Hiltzik flatly says that without the government, the Internet “could not have come into existence”:

Private enterprise had no interest in something so visionary and complex, with questionable commercial opportunities. Indeed, the private corporation that then owned monopoly control over America’s communications network, AT&T, fought tooth and nail against the ARPANet. Luckily for us, a far-sighted government agency prevailed.

Other tech media was even more damning. According to an article in Salon:

The accepted wisdom is correct. The government created the Internet. But because the Wall Street Journal is devoted to printing plausible-sounding lies designed to appeal to its anti-government readership, they printed a column by Gordon Crovitz this week claiming that the government did not invent the Internet, because governments can’t invent anything useful, ever, and it was the wonderful private sector that did all the work.

An article in Slate agrees:

Crovitz’s entire yarn is almost hysterically false. He gets basic history wrong, he gets the Internet’s defining technologies wrong, and, most importantly, he misses the important interplay between public and private funds that has been necessary for all great modern technological advances.

Slate also points out that Crovitz is lying:

Other times, Crovitz strays into what seems like intentional intellectual dishonesty. He mentions offhandedly that “Vinton Cerf developed the TCP/IP protocol,” but he skips over both the gravity of this development and the government’s role in it. TCP/IP is the Internet’s defining language, the only reason that any two computers, anywhere, can send a message to one another. In this way, TCP/IP is the Internet. What’s more, Crovitz neglects to mention that when Cerf created TCP/IP, he did so with Robert Kahn, who was an employee of the Defense Department, and that both of them were working under funding from the government.

Even the normally staid Scientific American says “Crovitz’s story is based on a profound misunderstanding of not only history, but technology.”

But as we now know, facts don’t seem to matter any more. Fox News is repeating the lie made by their sister publication (Murdoch’s News Corp owns both the Wall Street Journal and Fox News). I’m sure the lie that the private sector invented the Internet will be repeated ad nauseam by conservative outlets, just like they repeated the lie that Al Gore said he invented the Internet, until people believed he said it.

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Boxed In


© Tom Tomorrow

I guess I need to add one more category of people who like Mitt Romney — cartoonists. He’s like Dubya on steroids for them.

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