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aig-bldg-sign

James Barron and Russ Buettner write in a human interest piece in today’s New York Times that “many [A. I. G.] workers felt demonized and betrayed. ‘It is as bad if not worse than McCarthyism,’ [an anonymous A. I. G. exec] said. Everyone has sacrificed the employees of A.I.G.’s financial products division, he said, ‘for their own political agenda.'”

Bless Barron and Buettner for trying to put a human face on this mess.  But the execs who cry “I didn’t have anything to do with those credit problems” (James Haas) still don’t understand why their fellow citizens want to lynch them. Let me attempt to put a face on populist outrage.

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Nancy Pelosi

Nancy Pelosi

 What kind of kool-aid is Nancy Pelosi drinking? CNN reports that Pelosi has said she thinks the Bush tax cuts should be repealed immediately, and that Congress should press forward with an investigation over whether Bush et al. pressured their people at the Justice Department to make illegal hiring decisions based on politics and ideology. President Obama — of course — wants to take a middle road, let the tax cuts expire on their own, and is against any investigation of the Bush administration.

In the first place, we know that the imperative to hire RTAs (right thinking Americans) at the Justice Dept. came from the highest levels of the Bush government. <cough, Dick Cheney, cough> It’s not a matter for investigation. In the second place, there are a lot more important crimes to investigate, like the illegal wiretapping program, the infiltration of protest groups by government spies, no bid contracts to war profiteers, and the lies (told with malicious intent and knowledge of wrong doing) that led us to wage war in Iraq. Finally, raising taxes on the obscenely wealthy isn’t nearly as important as stripping out the ridiculous and worthless tax breaks to businesses included in the Obama plan. Paul Krugman puts the case as succinctly as possible here and here.

You may have thought the kool-aid I referred to in the title of this post is the kool-aid of liberal revenge. Oh no! This country swung so far to the right at the end of the 20th century that to get back to the middle we’re going to go pretty far left. Militarism, free market fundamentalism, and the cult of the individual (with its attendant cult of personality) reached a fever pitch under Bush, and the residual effects of that “conservative” kool-aid are obviously still infecting Obama and the Congressional Democrats. Disaffected whites and greedy globalizers united to turn this country into a banana republic — and not the good kind where you can find urban professional clothing at reasonable prices. No, they wanted a country where the rich are a law to themselves, the Constitution has been replaced by the Articles of Confederation, and the Southern Gentleman planter (complete with an economy run on the brown backs of a institutionalized underclass) replaces the middle class citizen.

I think there may be one bright spot in the disturbing political timidity shown so far by both the Congressional leadership and Obama. If Obama choses to be the uniter we didn’t get eight years ago, counseling peace and reconciliation, the Congressional Dems might be given the opportunity to play the bad cops and put the nastiest Bush aparatchiks into jail. And if that plays well (as it might if the recession gets really bad) hopefully Congress will remember that it does not have to be the political punching bag it has become in recent years. It might grow a pair and become what it was intended to be — the primary branch of government; the voice of the people; the genius of democracy. Only when Congress asserts its constitutional rights will we get the government Lincoln promised us: of the people, for the people, and by the people.

I can hear the hater chorus already saying that Congress under Gingrich asserted itself, and look where that got us. To you I say this: Gingrich was (like Cheney) a member of Congress but not of it. He asserted the power of Congress because Clinton as president was too weak for his taste. He was really paving the way for Bush’s “unitary executive”, a.k.a. king. A representative legislature is the soul of liberal democracy. Let the new Congress take up the mantle of freedom, and prove their mettle. In the process they just might save the Union.

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From the CNN news desk:

“As a public official, I expect criticism and I expect to be held accountable for how I govern,” Palin said in a statement released by her office Friday. “But the personal, salacious nature of recent reporting, and often the refusal of the media to correct obvious mistakes, unfortunately discredits too many in journalism today, making it difficult for many Americans to believe what they see in the media” (emphasis mine). Yeah! Salacious! When did she pick that one up? Surely not studying for the SATs. I’m glad she’s gone to the trouble to hire a vocabulary coach. Sadly, she’s about twenty years too late.

Mama Grizzly also said she got up on her hind legs when Tina Fey made a crack on her daughter. I say amen. Tina Fey almost single-handedly saved the republic by exposing Palin’s idiocy — and in the process the idiocy of American conservatives.

Speaking of which, check out Sam’s comment on this CNN blog post: “Why do we need Congress anyway? When the Constitution was written, people needed others to represent them in making policy decisions. Now we have the technology to vote and represent ourselves directly.”

OMG. I know that some secretly bad stuff lurks in the hearts of men, but I didn’t think anyone would have the bad judgment to expose himself in public as a monarchist. That’s right people. If you enjoy your liberty, you better stand up with Harry Reid and the Congress, and say we want government of the people, for the people, and by the people. Congress — a legislature — is the only way to have such a government. If Sam’s plan were implemented, and we all voted individually for every piece of legislation that was proposed (by whom?) — as if government were like American Idol — first there would be deadlock, then there would be a breakdown of government, then the executive would assert him/herself to become a king.

I blame the miserable state of American education for comments like this. No one who has studied history, government, or politics would say such a perniciously stupid thing.

Obama Transition

Nancy Pelosi says we should bailout GM and Chrystler. Coming on the heels of the financial bailout, this will rack up more trillions of Federal debt, and it will set a bad precedent, as I argued in an earlier post. But more to the point, as Paul Farrell has forcefully argued at Marketwatch.com today, it is an inexcusable extension of Reaganomics.

[Naomi] Klein further exposed this insanity in a recent Rolling Stone article, “The New Trough: The Wall Street bailout looks a lot like Iraq, a ‘free-fraud zone’ where private contractors cash in on the mess they helped create.” Paulson’s privatization, outsourcing and management of the $700 billion bailout has the exact same Reaganomics ideological, strategic and deceptive footprints that President George W. Bush and former Defense Secretary Donald Rumsfeld used to privatize, outsource and mismanage the costly Iraq War blunder. Yes, Paulson is America’s new Rumsfeld!

And they keep going at it! Where is Krugman’s vaunted conscience? This needs to be shouted from the rooftops until someone in government grows the testicular fortitude to do the right thing: Fiscal stimulus is an investment in public capital — not private capital.

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