Bubble Boy Gets Ready for the White House

Bubble We could call it the Bubble Presidency – as the president-elect tries to stifle dissent and distract the media from his plethora of broken promises, outright lies, fake news, and conflicts of interest.  One way to strengthen the bubble is to prevent protests which might call into question the appointments, and by extension the policies of the next administration.  The clock starts now, as the “massive omnibus blocking” of protest permits during Inauguration Season comes to the fore.  In the instance of the Women’s March and the ANSWER protest we see a familiar pattern:

“In the past, inaugural committees have let the park service know what land they won’t be using, and then permits have been issued, Litterst said. The park service is awaiting word from Trump’s inaugural team about its plans. Verheyden-Hilliard said activists are concerned that the inaugural committee will run out the clock on dissidents and she will take legal action in a bid to prevent that.} [ABC3]

Running out the clock is nothing new to the Trumpsters.  The clock ran on with the tax returns – now 2054 days since their release was promised.  The clock ran out on a plan to divulge how a blind trust might be established to reduce conflicts of interest.  The clock is running on plans to replace the ACA. The clock is running on promises to “drain the swamp”  and a plethora of other false inferences and hints.

In the midst of it all is a president-elect who lies with impunity, makes hypocrisy an art form, and elevates statement reversals to the pinnacle of officious palaver.  A few examples in the table below.

January 16, 2016 Trump charged that opponent Senator Ted Cruz was “owned” by Goldman Sachs (Tweet: Daily Wire) As of December 9, 2016 Goldman Sachs related associates of Trump were holding positions as: National Economic Council Director; Secretary of the Department of the Treasury; Senior White House Adviser; Lead Transition Team Adviser.
Trump billed himself as the advocate of Main Street America (“Make America Great Again”) His selections of Wilbur Ross and Steven Mnuchin to head Commerce and Treasury mean that Wall Street is more likely to intersect with the White House than Main Street. [NYKR]
Trump, the rally signs said, “Digs Coal” Republicans are calling the legislation to restore the Miner’s Health Plan a “bailout,” and bipartisan legislation is stalled in Congress.  Trump has had nothing to say that’s been reported on this issue. [Politico]
Trump called for an increase in American manufacturing, said he wants to “buy American and hire American” [CNS] The GOP House voted to cut the “buy American” rules from federal projects (H.R. 2028) Again, the president-elect has made no public comment on this disparity.
Trump claimed to have an “open mind” about human related climate change [VF] Trump appoints climate change denier Scott Pruitt to head the EPA.

 

All is well in the Bubble – in which Trump supporters believe the economy got worse under the Obama Administration (it didn’t); that crime is at its highest rate in 45 years (it’s at the lowest rate in the last 51 years); and, that poverty is an African American problem (while in terms of percentages of a minority population this is defensible, the fact remains that as of 2013 some 18.9 million white Americans were poor, 8 million more than African Americans, 5 million more than Hispanic Americans [Root]).

Facts don’t permeate the outer membrane of the Bubble.  There’s enough fake news and phony reporting out there to restore the outer layer of protection and to keep it reinforced.  However, eventually clocks and calendars do run out, and there’s no more excusing current blunders and problems on past administrations – not that the GOP won’t try.

Restoring a Fact Based Government will depend on the efforts of independent reporters and media, independent thinkers, and independent analysts.   Dissent may have consequences, perhaps not the ones Mrs. Conway has in mind?

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Filed under House of Representatives, Politics, Republicans

Graphic of the Day : Waiting for Tax Returns

Clock Where are Tax Returns

Seems an appropriate question to keep asking since the Orange Foolious badgered the President of the United States for his birth certificate for 8 years, and wasn’t satisfied with the long form when presented.  And, no, it doesn’t seem proper to “move on” since we haven’t seen any documentation proving OF has sold stock, or actually created any sort of blind trust that would pass muster.

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GOP Air Balls: ACA Repeal would increase Nevada uninsured by 95%

Trump Favorite Picture This ought to be just a little chilling:

If Republicans go through with their plan to dismantle the Affordable Care Act using a similar model as their failed 2015 Obamacare repeal, the number of uninsured would double, a new report by the Urban Institute report warns. (pdf)  Taking into account the two or so year delay GOP lawmakers say they will include in the repeal bill, the non-partisan think tank estimates that in 2019 the number of uninsured nonelderly people would rise from about 29 million to nearly 59 million.  [TPM]

And the numbers represent what? Answer:

Eighty-two percent of the people becoming uninsured would be in working families, 38 percent would be ages 18 to 34, and 56 percent would be non-Hispanic whites. Eighty percent of adults becoming uninsured would not have college degrees. [UrbanInst. pdf]

Percentages have a way of sounding bland, so some clicking on the Plastic Brain results in approximately 33,040,000 of those people who would lose their health insurance by 2019  being non-Hispanic white people.  47,200,000 would be those without a college education, and thus presumably not in a position to secure the kind of employment providing the resources to find individual health plans.

If the 2015 bill is used as the framework or model, then the Urban Institute projects that there will be 762,000 uninsured individuals in Nevada only 18% of whom would be eligible for assistance; causing a 95% increase in the number of uninsured in Nevada.   Those Nevada politicians who have been denouncing the Affordable Care Act (read Rep. Mark Amodei R-NV2) may want to pause before “taking credit” for creating a 95% increase in the number of Nevadans without health insurance.

It’s important to recall that the Big Lie about the Affordable Care Act is that it is “socialized medicine.”  In reality it’s an Insurance Law. It doesn’t create a nationalized health care system – it merely increases the number of people who have “access” to health care by providing more people with the capability of purchasing health insurance policies.

Senate Democrats have already signaled that should the “Straight Out Of The Gate Repeal and Replace” come from the majority Republicans the GOP can expect no assistance from the Democratic side of the chamber. [TPM]

And, then there’s the politics of the repeal.  If the GOP decides to use the Reconciliation Process (needing only 51 votes for repeal) then Senator Dean Heller (R-NV) raises a question:  “What we are trying to figure out is what the restrictions on reconciliation,” Sen. Dean Heller (R-NV) told TPM. “Does reconciliation allow for a replacement? And it may or may not.” [TPM]

If the process doesn’t allow for “replacement” then the Republicans have chucked the insurance for those with pre-existing medical conditions, insurance coverage for mental health, insurance coverage maternity care, protections from junk insurance policies with maximum limits, and other popular features of the ACA.  They may also be chucking hospitals under the bus.

One private equity spokesperson noted last November, “… hospitals, especially those in rural areas, could be tremendously hard hit if the replacement rolls back the progress made under the ACA to insure patients and incentivize them to get care before their illnesses require emergency room visits or hospitalization.”

Thus, with the lack of any specificity from Republicans about the nature of the “replacement” we could posit some serious problems for the members of the Nevada Rural Hospital Partners – in Winnemucca, Fallon, Battle Mountain, Boulder City, Carson Valley, Ely, Winnemucca, Incline Village, Hawthorne, etc.   A 2016 report for the American Hospital Association provides some general conclusions from which we can contemplate the effect on Nevada’s rural health providers:

”The loss of coverage would have a net impact on hospitals of $165.8 billion  with the restoration of Medicaid DSH reductions; The ACA Medicare reductions are maintained and hospitals will suffer additional losses of $289.5 billion from reductions in their inflation updates; Full restoration of Medicare and Medicaid Disproportionate Share Hospital  (DSH) payment reductions embedded in ACA would amount to $102.9 billion.”  [AHA pdf] 

The technical term for these losses might be “ouch?”   There is a point at which rhetoric meets the road.  It’s all well and good to bellow “Repeal and Replace?” Or, “Get Rid of Socialized Medicine.”  It’s another thing entirely to puzzle out the impact of repeal on all the stakeholders in this issue – the customers and patients, the health care providers, the hospitals and clinics, the insurance companies, and the investors who have an increasing stake in privatized health care in this country.

There are some elements of the Affordable Care Act which could be improved.  However, the Burn the Barn Down political pandering on full display among Republicans isn’t leading to any current and serious discussions of how to make these improvements viable.  And, this is chilling for policy holders, insurance companies, health care providers, hospitals and clinics, and the investors therein.

Perhaps the Pottery Barn rule applies to Republicans: If you break it you own it.

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Filed under Amodei, Health Care, health insurance, Heller, Nevada politics, Politics, public health, Republicans, Rural Nevada

UNR won’t play Trump’s Game

Trump Favorite Picture The Orange Foolious campaigned on a well constructed platform of xenophobia, hate-mongering, and anti-immigration rhetoric – including attacking DACA.  UNR’s president is having none of it:

“University of Nevada, Reno President Marc Johnson said he is supporting students who illegally immigrated to the United States as children and are now enrolled in college.

He is one of more than 500 college and university presidents that as of Tuesday had signed a statement calling for continuation of the Deferred Action for Childhood Arrivals programs, a 2012 Obama administration policy has allowed undocumented students to temporarily stay in school without the fear of deportation.”  [Full article: Reno Gazette Journal]

This will probably not play well with the White Supremacy Crowd.  oh well

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Filed under Immigration, Nevada politics, Politics, Republicans

The Taiwan Call: There’s a message in here somewhere

trump tie scotch tape It’s amateur hour in Washington, D.C.  Not just for the Trumpster’s transition team but for the Beltway Media too?  45 years of foreign policy precedent just got reversed, and the punditocracy doesn’t seem to understand that the Orange Foolious isn’t thinking in terms of national issues. Personal ones perhaps, but national – not so much.

The Reagan administration understood; the GHW Bush administration understood; the GW Bush Administration understood – but his Republican version hasn’t grasp the finer points of international diplomacy, perhaps not even some of the more blatant ones to date.

There is really NO reason for having three different answers to the same question (Why did you take the call?) in today’s world.

Personal issues, perhaps:

“Weeks before President-elect Donald Trump’s controversial phone call with Taiwan’s president, Tsai Ing-wen, a businesswoman claiming to be associated with his conglomerate made inquiries about a major investment in building luxury hotels as part of the island’s new airport development. Weeks before President-elect Donald Trump’s controversial phone call with Taiwan’s president, Tsai Ing-wen, a businesswoman claiming to be associated with his conglomerate made inquiries about a major investment in building luxury hotels as part of the island’s new airport development.” [Guardian]

And, we note the carefully phrased disclaimer from Trumpster Aides:

“A representative for Trump Hotels said there had been no authorized visits to Taiwan on behalf of its brand for development purposes, nor are there any active conversations.”  [WSJ]

Humm, no “authorized visits” and no “active conversations.”  This is interesting verbiage because from the same WSJ article we find:

“Reached Saturday by The Wall Street Journal, Ms. Chen, who is also known as Charlyne Chen, said she’s not a Trump employee, but has worked as a promoter and salesperson of real estate properties in Las Vegas and has a letter stating that she is a “sales ambassador” for Mr. Trump’s company.

She said the meeting with Taoyuan’s mayor to discuss the Taoyuan Aerotropolis project was arranged by former Taiwan Vice President Annette Lu, whom Ms. Chen said is a friend who had hoped to bring the Trump brand to Taoyuan, where she had previously served as magistrate. She said the meeting took place in September, “way before” Mr. Trump’s election, and talks about any project are at a “very, very early stage and there has been zero details.”  [WSJ]

Thus we are now in the realm of – What’s an “authorized visit?” And, what’s an “active conversation?”   It seems there is another lady in the mix:

Anne-Marie Donoghue, who identifies herself on her Facebook page as a Trump Hotels Asia sales director, posted a photo from a visit to Taiwan this fall, saying that she was in Taipei and enjoying the trip. “Work trip but it has been so fun!!!” [WSJ]

It’s not “official” but there’s a “sales ambassador” involved?  It’s not “active” but there have been two individuals involved in “work” on behalf of the Trumpster’s brand in Taiwan?  One of which was having “so much fun!!!”

Deniability is a lovely thing but it doesn’t work when back door dealings are posted on social media and published in the business press.

First it was Argentina, now it’s Taiwan… the message is that the Orange Foolious is still “selling his brand,” and quite possibly selling out American interests.

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Filed under Foreign Policy, Nevada politics, Politics, Republicans

Trump’s Conflicted Interests

Trump Favorite Picture There is little more chilling today than this piece of information from Mother Jones concerning The Trumpster’s conflicts of interest:

That concern exists with Trump, but he presents a unique problem when it comes to conflicts of interest: He and his companies have borrowed hundreds of millions of dollars. These are loans that potentially afford his lenders leverage over Trump. This creates the possibility that Trump may find himself in the position of choosing between US interests and his lenders’ interests. There’s no better example of this than the $364 million Trump owes the struggling Deutsche Bank, which is staggering under fierce pressure from US financial regulators who want the bank to pay for its misdeeds during the run-up to the 2008 mortgage crisis. (Trump is in a real estate partnership that borrowed $950 million from a group of banks including a subsidiary of Deutsche Bank and the state-owned Bank of China.) (emphasis added)

The entire article is well worth the time it takes to read it.

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Filed under Economy, Politics

Capitalism Won’t Be Saved By Republicans

For the sake of this argument let’s assume that while capitalism may not be the most egalitarian system of resource management and allocation, it’s the best one we have to date.  It’s a bit like the definition of democracy – it isn’t perfect, but no one’s come up with anything better.  So, with this in mind we can propose that capitalism is worth saving.  But, saving from what?  And here I climb back on the hobby horse – we need to save free market capitalism from Financialism.

What is Financialism?  If you’ve just tuned in, I’ve been operating with the Armistead definition:

“Financialism is an economic system where the primary activity consists of creating and manipulating financial instruments.  Financial instruments…are in their original form firmly linked to economic reality.  However, when financialism sets in, financial instruments become progressively further removed from their role in supporting commerce in the real world and develop a life of their own.”  [Armistead]

When this “life of its own” comes in to play there are some serious problems for the underlying economy.  Michael Konczal summarizes the issue as succinctly as anyone:

“If you want to know what happened to economic equality in this country, one word will explain a lot of it: financialization. That term refers to an increase in the size, scope, and power of the financial sector—the people and firms that manage money and underwrite stocks, bonds, derivatives, and other securities—relative to the rest of the economy.

The financialization revolution over the past thirty-five years has moved us toward greater inequality in three distinct ways. The first involves moving a larger share of the total national wealth into the hands of the financial sector. The second involves concentrating on activities that are of questionable value, or even detrimental to the economy as a whole. And finally, finance has increased inequality by convincing corporate executives and asset managers that corporations must be judged not by the quality of their products and workforce but by one thing only: immediate income paid to shareholders.”

That second paragraph is a summation of what we’ve been looking at for the last 20 years.   If we were discussing capitalism we’d be talking about economic growth predicated on development in manufacturing, housing, infrastructure, energy, agriculture, primary industries, transportation, etc.  However, we’ve not been talking about capitalism, especially in the media. We’ve been lathered up and shaved by financialism.

We barely know what capitalism is anymore.  What’s the first thing that comes to mind when someone says, “business news?”  If you said, “stock market report” that would reflect what the evening news gives you. Usually the Dow Jones Industrial Average comes first, and then ‘what drives it’ comes in commentary purporting to be analysis.  Consider the following reaction to inquiries about the strength of the economy in 2012:

“The stock market in the past has been a leading indicator, but that leading quality has weakened in recent years. Stock prices are driven by profits and profit growth. During the Great Recession, corporations have been able to maintain profitability by slashing employment to reduce costs. They have streamlined their operations and have squeezed more productivity out of their remaining workers. Thus, higher stock prices don’t necessarily mean a stronger economy, especially in terms of employment growth. That said, I do think the economy is on an upward path, with job growth of about 2 million expected for the national economy in 2012.” [SDUT]

And here we have an illustration of the third point Konczal was making:  Corporations are judged not by the quality of their products, the character of their work forces, the direction of their research and development – but by the immediate income paid to shareholders.

Couple this with the Shareholder Theory of Value, which Jack Welch once referred to as the “dumbest idea in the world,” and the financialist  incentive is to maximize productivity, prioritize immediate results, and ignore the stakeholders for the benefit of the shareholders.  Now, view the Epi Pen issue from the perspective of the shareholders – the object was to increase immediate shareholder value, but:

“While individual consumers may not have had a voice or recourse, the market did. Mylan may have improved its margins and ultimately driven higher returns and shareholder value, but within a week the price increase cost the company $3 billion in market cap and a stock tank of over 12% in 5 days.” [Fortune]

Ethics do matter, especially to stakeholders.  If there is a silver lining in this cloud it is that the stakeholders (individual consumers, school districts, emergency responders, local fire departments…) can place significant pressure on shareholders.  Breach the bounds of acceptable human behavior and the amorphous market will take a bit out of the corporate hide; illustrating former CEO Welch’s point precisely.

Now, let’s enter the political phase.  Republicans would love to dismantle the financial regulation structure which has curtailed some of the excesses of Financialism which precipitated the last Great Recession.  Out with Sarbanes-Oxley, Out with Dodd Frank, out with “excessive regulation.”   This is a recipe for disaster.  Regulation restrains, and restraint is what is needed to prevent capitalism from degenerating into financialism.

Again, a summation from Konczal:

“…the most important change will be intellectual: we must come to understand our economy not as simply a vehicle for capital owners, but rather as the creation of all of us, a common endeavor that creates space for innovation, risk taking, and a stronger workforce. This change will be difficult, as we will have to alter how we approach the economy as a whole. Our wealth and companies can’t just be strip-mined for a small sliver of capital holders; we’ll need to bring the corporation back to the public realm. But without it, we will remain trapped inside an economy that only works for a select few.”

Income inequality on steroids? More Bubbles? More volatility? And, more economic problems associated with those issues.  It will be up to Democrats to resist the financialization of the American system of capitalism because the Republicans are either trapped in its web or ignorant of its consequences.

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Filed under Economy, financial regulation