Category Archives: Nevada politics

Roundup, including Nevada as a test of the GOP Autopsy

Heck photo There’s an interesting piece in Talking Points Memo today about the Nevada senate race, Representative Joe Heck, included, and questioning Heck’s capacity to attract Hispanic voters in the state.  Perhaps someone should ask the GOP candidate if he supports Donald Trump’s bid for the presidency? The answer should tell us if Heck listened to the “autopsy” or is part of the corpse of the Republican party?

Loon How can we miss you if you won’t go away?  The Malheur Refuge Loons, the ones wearing camo, and pretending to be “patriots,” are still in court – including one Larry “The Loon” Klayman who wants very much to insert himself and his stack of conspiracy theories into the “movement” supporting Cliven Bundy in court.    Ammon Bundy intends to argue he can’t be prosecuted because the Federal government really doesn’t own the Malheur Refuge, no matter that there are similar cases with decisions  on record which dismissed this argument as having no merit.  Meanwhile, a Nevadan who participated in the Loon-acy has entered a guilty plea to charges of conspiracy.

Trump white power We’re Shocked. Shocked I say… to discover that there’s another white nationalist on the list of Trump delegates to the Republican convention.  In her own words: “I’m all for closing the borders. I’m all for not allowing Muslims in this country. I’m all for keeping illegals out and get as many of them who are here out as soon as possible. … Why do I want my taxpayer money taking care of criminals and murderers who aren’t supposed to be here?” We can add her to the folks already on the list who have child porn and weapons charges on their CV’s.  Meanwhile, back on April 28th Pew Research reported Republican “favorability” ratings edging lower.

Leave a comment

Filed under conservatism, Nevada politics, Politics, presidential race, public lands, Republicans

I Guess I’m The Establishment

Clinton Logo

At the risk of bringing out the woodwork crowd, let’s open the door anyway. I’m a Clinton Supporter, and have been for some time.  Not that my support is exactly a necessity for anyone’s campaign – I supported Biden in 2008.  Kerry in 2004, and Bradley in 2000.  No one is now speaking of Presidents Biden, Kerry, or Bradley.  However much my endorsement may be the Kiss of Ultimate Obscurity, it does come from a recovering Republican whose former party went berserk in 1968 and over the edge in 1980.

I am a Democrat because I believe in capitalism.  As anyone who’s visited this blog more than a handful of times can attest, I do believe that capitalism works, and that it works better when financialism is restrained.  Wall Street is not an existential enemy.  For all the flaws in the system there has to be some way to distribute capital from sources of surplus to sectors of need, and no one has figured out a better way to do that than capitalism to date.  In short, a mixed economy provides the best way for businesses large and small to obtain the capital they need to sustain themselves and grow.  A mixed economy is, in my definition, capitalism regulated by rational restraints on the tendency to monopoly and financialism.

Therefore, it would be out of character for me to worry about Secretary Clinton’s speeches to Wall Street gatherings; I’m certainly not a Socialist by any stretch of the definition.

I am a Democrat because I believe there is strength in diversity.  We’ve become the greatest nation on this planet because, not in spite of, the cultural diversity of this country.  This is the nation that gave the Jewish genius Albert Einstein a safe haven in 1933, and we were better for it.  Sergey Brin came from Russia, and founded Google – pretty good for an immigrant. Jerry Yang came from Taiwan, to found Yahoo! I’m certain we’re better for attracting Carlos Santana and enjoying his music, and I’ll always think of Albert Pujols in “cardinal” red.  There’s Puebla Foods entrepreneur Felix Sanchez de la Vega Guzman whose NJ based company is now worth $19 million.  Interested in drones? Then you probably already know about Jordi Munoz who co-founded 3D Robotics.  I have to admit that I have mixed feelings about Garrett Morgan, the African-American inventor of a modern traffic light – I’m not sure I like him when stopped for a long pause, but he’s probably saved my life innumerable times.

In short, I’m not in need of a revolution of any sort.  I certainly don’t feel the need to make American great again – what’s not great about a country that attracts the best and brightest from all over the world?  Nor do I feel the need to upend the socio-economic system, remember I’m not a Socialist.  We can, and should, do a better job of diminishing the income inequality gap in this country.  However, that doesn’t require a “re-distribution” of any sort.  We need to adopt economic policies which encourage entrepreneurship and the expansion of the American middle class.

I am a Democrat because I believe John Donne was right. No man is an island. All that “rugged individualism” palaver is just so much gibberish seeking to justify selfishness, or “I got mine, now you try to get yours…sucker.”  Perhaps someone with money to burn can hire a private security company – but I need the local police.  And, even the family which can afford the security company still needs someone to insure that the clothing on their children’s’ backs isn’t highly flammable or toxic.

When the woman in the family is earning only about 3/4th of what a man in the family can make, then the entire family suffers for it, and so do the merchants who would otherwise see more retail sales at their grocery stores. How much productivity do we lose each day a youngster has to endure crowded classrooms and underfunded education systems?  How much more attractive are our cities and towns when they have libraries, parks, and an investment in the arts?

I am a Democrat because I believe in democracy.  Notice please that’s not libertarianism of any sort. My definition of the little d – democracy holds that where there are no holds barred there’s the least real freedom.  Without rules we’d be back to ‘might makes right’ and reverting to the savagery of ages past, like bronze, iron, and stone.

Again, let me affirm that I believe we have one of the best political systems on Mother Earth, if we truly cherish it and make it possible for more people to vote in our local, state, and national elections.  Getting registered to vote in this nation should be far easier than the effort required to buy a gun.  We need to renew our Voting Rights Act, to revisit our campaign funding schemes, and to require that the FEC  truly have the capability to ferret out and punish untoward practices.

I tire very quickly when individuals launch into conspiracy theories and assorted assertions of fraud and misadventure.  At the beginning of this piece I said that I’d backed several candidates none of whom were elected to the office aspired to; I could have named many more from state and local elections.  With the exception of the 200o election, which I believe to have been messed up by election rigging in key states, I do not believe that if a specific candidate loses a specific election it must be because of some nefarious plot to defy Democracy and Vox Populi.  The glazed over look in my eyes is probably there because I stopped believing in conspiracy theories long ago.

If this renders me “establishment” so be it. I do not expect any other person in this great free land to pass my political purity test and I have no interest in sitting for anyone else’s.

There’s a difference between partisanship and zealotry. I am a partisan.  Perhaps in the eyes of some I am worse yet – a pragmatist. I don’t believe in intransigent positions for the sake of intransigency and purity – if I did I’d still be a Republican.  I believe that compromise is a good word, and a good political outcome.  So, here I am, and if that’s “Establishment” it’s a badge I’ll gladly assume.

Comments Off on I Guess I’m The Establishment

Filed under Nevada politics, Politics

The SNAP-ping Turtles Attack: Food Stamp Fraud Myths and Legends

Food Stamps

Among the most depressing of the many Republican attacks on people who are the least able to defend themselves are the ones snapping away at the SNAP program, aka Food Stamps.  It’s even more depressing that the attacks are based on myths and urban legends.

The attacks are continuous.  As of April 16, 2016 approximately 41,000 lost access to food assistance as a result of the Walker Administration’s work rules, although his department of Health Services admits it doesn’t track people who find work on their own. [WEAU]  Another 1,000 will lose access to food assistance in West Virginia. [Dpost]  Add yet another 5,000 in Georgia who’ve lost access because of work rule changes. [USAPP] Louisiana hacked off the access for 30,000 in late 2015. [AJA] And, then, of course, there’s the viral display of the lady who took it upon herself to embarrass a fellow human being for using assistance to feed his children.

The tantrum, if true, illustrates the extent to which the myths and urban legends about the food assistance programs have become part of the Republican narrative about food stamps and the people who use them.

One of the more persistent myths is that there is an abundance of food stamp fraud, and the fraud is the result of misuse of the assistance by the recipients.  

First, the food assistance program is actually one of the most efficient and honest programs in government.  And, most of the fraud is on the part of retailers, NOT the customers.

“SNAP fraud has actually been cut by three-quarters over the past 15 years, and the program’s error rate is at an all-time low of less than 3 percent. The introduction of EBT (Electronic Benefit Transfer) cards has dramatically reduced consumer fraud. According to the USDA, the small amount of fraud that continues is usually on the part of retailers, not consumers.” [HC.org]

Even during the last Recession, SNAP problems were miniscule: “SNAP has one of the most rigorous quality control systems of any public benefit program, and despite the recent growth in caseloads, the share of total SNAP payments that represent overpayments, underpayments, or payments to ineligible households reached a record low in fiscal year 2011.” [CPBB]

The USDA, which administers the program has taken notice of the allegations of “waste, fraud, and abuse,” continually leveled at the assistance, and presented a report in 2013:

“The report indicates that the vast majority of trafficking – the illegal sale of SNAP benefits for cash or other ineligible items – occurs in smaller-sized retailers that typically stock fewer healthy foods. Over the last five fiscal years, the number of retailers authorized to participate in SNAP has grown by over 40 percent; small- and medium-sized retailers account for the vast majority of that growth. The rate of trafficking in larger grocery stores and supermarkets—where 82 percent of all benefits were redeemed—remained low at less than 0.5 percent.”  (emphasis added)

More specifically, most of the fraudulent use can be attributed to these small retailers:

“While the overall trafficking rate has remained relatively steady at approximately one cent on the dollar, the report attributes the change in the rate to 1.3 percent primarily to the growth in small- and medium-sized retailers authorized to accept SNAP that may not provide sufficient healthful offerings to recipients. These retailers accounted for 85 percent of all trafficking redemptions. This finding echoes a Government Accountability Office (GAO) report that suggested minimal stocking requirements in SNAP may contribute to corrupt retailers entering the program.” [emphasis added]

However, the lady in the supermarket screaming at the customer, is probably thinking  it’s the food assistance recipient who commits most of the fraud and not the retailer.  She’s likely not concerned that the USDA has initiated rules to sanction 529 retailers, and permanently disqualifying 826 outlets for trafficking in benefits, or falsifying their applications.  Or, that in 2012 the USDA reviewed more than 15,000 stores and permanently disqualified nearly 1,400 for various program violations. She’s also not likely concerned that the USDA has expanded the definitions of fraud to include newer schemes. [USDA]

snapping turtle

Let’s conjecture that the screaming-mimi is associating food assistance with lazy do-nothings who are eating from her hard earned sacred tax dollars. Again, she’s wrong.

Using Nevada (pdf) as an example for the moment, the median income of SNAP recipients in the state was $20,479 per year, or about $1700 per month, and 49% of the households had at least one person working in the previous 12 months; 29% had two or more workers, and only 21.8% had no one working in the previous year.  Why might the person not be working? Try acknowledging that more than 1/2 of SNAP beneficiaries nationally are either children or the elderly. [StoH]  And, no – they are not undocumented individuals: “Undocumented immigrants are not (and never have been) eligible for SNAP benefits. Documented immigrants can only receive SNAP benefits if they have resided within the United States for at least five years (with some exceptions for refugees, children, and individuals receiving asylum).” [StoH]

On a national basis, children account for 44% of food assistance, the elderly and the disabled account for another 20%.  That leaves 36% who are non-elderly, and not disabled, of whom 22% have children to support and feed, and 14% are childless.  [CBPP]

SNAP recipients Those interested in the SNAP statistics for every Congressional District in the nation can find the pdf files here.

Those interested in living in the fact based universe will also find that far from munching on the taxpayer’s dime, every $1 dollar in food assistance generates $1.80 in economic returns to the community. [USDA]

snapping turtle However, we can publicize every FAQ, every article, every report, in the land and there will still be screamers at the Wal-Mart who are convinced that low-life no-gooders mooching on the dole are taking their earnings and wallowing in sin and sloth.  The right wing echo chamber has done a good job of vilifying children, the elderly, the disabled, and the down on their luck to find an excuse to cut spending for at risk citizens. 

snapping turtle

The snapping turtles have also done a good job of associating African Americans with food assistance programs.

“The 2013 data shows, white people are nearly three times less likely than African-Americans to live in poverty; yet, white people claim more food stamps.  According to the data, not only do white people benefit from food stamps, they also benefit from not having politicians and cops target and malign them as lazy, unproductive welfare queens who take advantage of a social safety net. As the chart indicates, racist ideas about welfare have come to overshadow statistical facts that reveal that the face of food stamps is in fact white.” [AnHQ]

There is support for this conclusion  in Nevada statistics.  In Congressional District One 58% of food stamp recipients are white, in Congressional District Two 80.3% are white, in Congressional District Three 66.3% are white, and in Congressional District Four 52.9% are white.  According to the Census Bureau Nevada District 1 has a population of 693,623 of whom 380,587 are white; District 2 has 697,426 residents of whom 580,111 are white; District 3 has a population of 734,973 of whom 499,767 are white; and District 4 has a population of 713,077 of whom 470,799 are white. As much as the popular right wing mythology may want to reinforce the narrative of the Welfare Queen it just doesn’t fit with the statistical reality.

snapping turtle  When statistics don’t fit … try ideological mythology. Food Stamps make you dependent on Government, and dependency is evil incarnate because it is a disincentive to work.  This, flat out, makes no sense at all.  For example, I live in an area with a public water system. Does hooking up to the water system mean that I’m lazy and have no incentive to walk to the spring for the daily bucket? Or, that I should have to dig my own well, and install my own septic tank?  Perhaps this is plausible if I live far enough from my neighbors to put in a septic system, but I don’t so the result would be “my septic tank next to your well.”  Not a pleasant nor hygienic prospect.  Do public roads make me a lazy dependent? Does having a police department make me less independent – should I have to hire my own rent-a-cop?  Maybe in some radical libertarian  landscape no one depends on anyone else, but this is only a fairy tale of dystopian proportions.  Not a land in which any rational soul would want to reside.

snapping turtle

There’s another element not often discussed in polite circles – good old fashioned selfishness.  The trick is to make selfishness acceptable. Perhaps some of the snapping turtles harbor an unhealthy notion that someone out there somewhere is taking money out of their shells, someone who is undeserving of assistance.  I’d be willing to bet that a right wing snapping turtle would never agree that food assistance should be denied to an octogenarian, or to a disabled person, or to a small child, or to a young mother trying to keep food on the table while going to school to complete her education. So, the “undeserving” must be meanly labeled.  They’re Lazy, they’re druggies, they’re people who “have too many children.”  (I’m particularly appalled at the argument which goes: “They” have too many children,” while the next contention is that funding for family planning must be eliminated.)  The line “I saw people at the food bank who are driving better cars than mine,” illustrates the issue.

This example is a visceral reaction – not a questioning skepticism.  Is the vehicle the only asset of any significant value in the entire household?  Does “better” mean newer? If so, then what was traded in to buy it? The comment better illustrates a definition of poverty that would have only the totally destitute ‘deserving’ of assistance, not someone with a functioning vehicle, an air-conditioner, a television set, a refrigerator – as if these consumer items weren’t a necessity in modern American life. Define poverty harshly enough and all manner of selfishness can be justified.

snapping turtle

There’s one myth justifying selfishness we can dismiss. The one that says we should drug test SNAP recipients to see if they’re worthy.  Seven states spent more than one million dollars on drug testing welfare recipients only to discover that there wasn’t a reason to do it in the first place.  Missouri spent $336,297 testing 38,970 recipients to find 48 positive tests. (0.123%) Oklahoma spent $385,872 on tests for 3,342 people and got 297 positives. (11%) Utah’s results were less rational, 9,552 people were tested and 29 were positive. (3.03%) Kansas screened 2,783 persons, with 11 positive results, a 3.95% result costing $40,000. Mississippi tested 3,656 persons and got 2 positive drug tests. Tennessee tested 16,017 people and got 37 positives.  Arizona tested 142,424 persons and got a grand total of 3 positive results. [TP]  Not that it will put much of a chink in the armor of the snapping turtles, but the numbers certainly don’t justify the expense or the rationale for selfishness underlying the testing.

snapping turtle forbidden

I’d like to see the day when (1) Congressman Sludgepump launches his canards about SNAP recipients being lazy moochers, and a reporter asks if he knows the demographics of the recipients in his District, or  when (2) State legislator Gloomcryer decries the possibility of drug use by food stamp beneficiaries and he’s challenged to cite statistics to support his contentions, or when (3) we finally become outraged at the outrageous duplicity and mendacity of the Snapping Turtles. 

Comments Off on The SNAP-ping Turtles Attack: Food Stamp Fraud Myths and Legends

Filed under conservatism, Nevada economy, Nevada politics, public health, Republicans

Heck: The Bankers Good Little Soldier

Heck photo

The ad wars begin, with one from the Democratic side of the aisle noting the record of one Joe Heck, currently the Republican representative from Nevada District 3:

“The ad highlights legislation Heck sponsored as a state senator to repeal excise taxes on Nevada banks, criticizes him for accepting more than $300,000 in campaign contributions from the securities and investment industry, and portrays him as in “lockstep with Washington Republicans.”

It also notes that Heck, who now represents Nevada’s 3rd Congressional District, once called the mortgage crisis in the state “a blip on the radar” on a 2008 questionnaire.”  [LVSun]

The amount of money candidates receive from the financial industry doesn’t  bother me as much as the voting records of the candidates who receive them.  And, Representative Heck has been a very good little soldier for the financial sector interests.

Marching back to July 26, 2012 we find Representative Heck voting in favor of the interestingly titled HR 4078 “Red Tape Reduction and Small Business Job Creation Act.”  The title was commonplace, everything in those days had “small business” and “job creation” attached to the title, perhaps to obscure the fact that the Congress had done exactly diddly to create jobs or help really small businesses.  The effect would not have been small, or particularly creative.

HR 4078 would have prohibited any federal government agency from promulgating or taking “significant regulatory action,” unless the employment rate dropped below 6%, defining  “significant regulatory action” as any action that is likely to result in a rule or guidance with a fiscal effect of $50 million or more as determined by the Office of Management and Budget, or to adversely affect one of the following, including, but not limited to (Sec. 105) [PVS]  Now why would this bill illustrate Representative Heck’s allegiance to the banking sector?

Answer: Because the Dodd-Frank Act regulating the financial sector was enacted on July 21, 2010 – that would be the Wall Street Reform and Consumer Protection Act – and the agencies were in the rule making process when HR 4078 was considered in the House.  Now, what sector of the economy was going to see a $50 million dollar effect?  Here’s a clue: It’s not family owned bodegas and gas stations.  The banking industry did NOT want to see any regulation, any restraint, any inconvenience to their consumer gouging practices and HR 4078 was the result.  (And, the law if enacted would have prevented any more attempts to contain climate change – a bonus in GOP eyes.)

Move forward to October 23, 2013, and HR 2374 the “Retail Investor Protection Act.” There’s nothing in this bit of legislation that protects “retail investors.”  In fact, section 2Prohibits the Secretary of the Department of Labor from establishing a regulation that defines the circumstances under which an individual is considered a fiduciary until 60 days after the Securities and Exchange Commission establishes standards of conduct for brokers and dealers.”  Does this sound familiar? It should. It’s part and parcel of the fight to allow financial advisors to push products which improve their bottom line even if the advice isn’t in the best interests of their clients – like retirement funds.  The bankers have been fighting this right down to at least May 6, 2016.  However, the rule – now in place — has some benefits for “retail investors” as Morningstar summarizes:

“This change clearly is a victory for investors. Roughly half of retail U.S. mutual fund assets will be protected by the new, higher standards. They will not prevent bad advice, of course, nor trades from lower- to higher-cost funds. But they do command that all advice, whether successful or not, be offered in good faith, and that the rationale for all trades, whether into cheaper or pricier funds, be recorded. Such precautions will inevitably lead to better overall outcomes.”

Yes, those better overall outcomes and higher standards of responsibility for mutual funds were precisely what the bankers wanted to avoid, and exactly what Representative Joe Heck voted against on behalf of the bankers in HR 2374.

Catherine Cortez Masto It doesn’t take too much financial expertise to see which Nevada senatorial seat candidate is taking marching orders from the financial sector.  On one hand we have Joe Heck (R-NV3) who can be counted upon to find fault with the CFPB, the Dodd Frank Act, and efforts to make financial advisors account for their advice; and, on the other we have a former state Attorney General who actually Did something about that not-so-little blip that was the housing market crash/debacle in Nevada:

“2009: Cortez Masto Investigated And Found Broad Problems With The Bank Of America’s Interactions With Imperiled Borrowers. “In a complaint filed Tuesday in United States District Court in Reno, Catherine Cortez Masto, the Nevada attorney general, asked a judge for permission to end Nevada’s participation in the settlement agreement. This would allow her to sue the bank over what the complaint says were dubious practices uncovered by her office in an investigation that began in 2009. […] The breadth of the new Nevada complaint indicates that Bank of America’s problems extend throughout its mortgage operations, including origination, loan servicing and securitization. Nevada officials also found broad problems in the bank’s interactions with imperiled borrowers.” [New York Times, 8/30/11]”  [CCM]

And, there’s more. [here] What Representative Joe Heck was calling a “blip” was in reality the state of a state which led the national foreclosure rate stats for 62 straight months, and a scene in which some 58% of Nevada homeowners in 2011 were “underwater.”  Some blip.  Gee, even Representative Heck was pleased as of February 2012 with the settlement achieved in part by Cortez Masto,“Rep. Joe Heck, R-Nev., said he is ‘happy to see that an agreement was reached. At a time when Nevada families are struggling the most to make ends meet, I have high hopes that this settlement will provide them much needed relief.’ [Las Vegas Review-Journal, 2/9/12]”

There really doesn’t appear to be much question at this point which senatorial candidate is most disposed to protecting the interests of retail investors (or any other kind for that matter), and consumers of financial products (most all of us), and homeowners… we have a choice between the man who wanted to scale back the efforts of the Dodd Frank Act and CFPB and the woman who took on the Big Banks and fraudulent lenders.

Comments Off on Heck: The Bankers Good Little Soldier

Filed under Economy, financial regulation, Heck, Nevada politics

Amodei Quacks Like A FLAG-waving Duck

Amodei 3

Representative Mark Amodei (R-NV2) doesn’t like being categorized as “anti-public land,” or more precisely lumped in with the Bundy Boys.  However, his sponsorship of legislation and other activities have him on the Anti-Public Land list:

“Amodei landed on the list for sponsoring legislation that would give the state control of 7.2 million of the approximately 58 million acres of federally controlled land in Nevada, opposition to the creation of the Basin and Range National Monument, membership in Federal Lands Action Group and a statement about the Malheur occupation.

The statement, attributed to Amodei and two other members of the action group, said the lawmakers didn’t condone the Oregon action but added, “we do understand their frustration with increasingly heavy handed federal agencies that continue to violate the rights of hardworking American farmers and ranchers.” [RGJ]

Duck looks The poor little Republican has been cast amongst the Bundys.  How did he end up bunched up with them?  First, he’s a “FLAG” member.

“Rep. Amodei is a FLAG member and introduced H.R. 1484, the Honor the Nevada Enabling Act of 1864—which would seize Nevada public land for state control. In 2015, Rep. Amodei also introduced H.R. 488, which would cripple the Antiquities Act by blocking the extension or creation of national monuments in Nevada, unless authorized by Congress. Rep. Amodei has also cosponsored four other bills aimed at curtailing the Antiquities Act and seizing public lands. In response to the occupation of the Malheur National Wildlife Refuge, Rep. Amodei signed on to a joint statement that condemned federal officials for law-breaking, rather than condemning the actions of the armed militants.” [CAP]

So, what is FLAG, and how does it relate to the Anti-Public Lands crowd?  The organization is the brain child of two Utah Representatives, Stewart and Bishop, who announced its creation on April 28, 2015.  And, the purpose?

Today, Representatives Chris Stewart (R-Utah) and Rob Bishop (R-Utah) launched the Federal Land Action Group, a congressional team that will develop a legislative framework for transferring public lands to local ownership and control. […] This group will explore legal and historical background in order to determine the best congressional action needed to return these lands back to the rightful owners. We have assembled a strong team of lawmakers, and I look forward to formulating a plan that reminds the federal government it should leave the job of land management to those who know best.” [Stewart]

Who were among the first members of the FLAG group? “Other members of the Group include Representatives Mark Amodei (R-Nev.), Diane Black (R-Tenn.), Jeff Duncan (R-S.C.), Cresent Hardy (R-Nev.), and Cynthia Lummis (R-WY).” [Stewart]

We should assume the group means what it says.  It wants to transfer public land to local ownership and control.   Towards this end the FLAG group held its first “forum” in June 2015, and among the speakers was a representative of the “Independent Institute.”  Board members of this organization include a private equity manager, a person from Deloitte & Touche USA, a member of the Howley Management Group, the Botto Law Group, a managing director of Palliser Bay Investment Management, Reditus Revenue Solutions, Audubon Cellars and Winery, Berkeley Research Group LLC, and the former chair of Garvey International.  [II.org]  This isn’t a list that inspires one to ask if they are primarily interested in public land for the sake of conservation.

Prof. Elwood L. Miller (UNR) was on the initial panel, adding a touch of accounting expertise to the argument that the federal government is too bureaucratic and caught up in procedural questions to be a good steward of public lands.  Attorney Glade Hall added the usual federal control isn’t constitutional argument. “It is a patent absurdity to assert that such full powers of governance cover 87 percent of the land surface of a state of the Union and at the same time assert that such state has been admitted to the Union on an equal footing with the original states in every respect whatever,” Hall said.” [STGU] A sentiment echoed by the head of the Natural Resources Group, whose book on the “theft” of the environmental issue is available from the Heritage Foundation.

In short, there was nothing to remind anyone of a fact-finding operation in this inaugural panel sponsored by FLAG.  It was of, by, and for individuals who want to ultimately privatize federal lands.

It’s also interesting that the panel members offered these opinions based on personal experience, or “talking to people,” but nothing in the presentations was offered to demonstrably prove that the federal government has no authority (beyond the usual crackpot interpretations spouted by the Bundy-ites and allies) or is actually and provably incompetent to manage public lands.  The guiding assumption – however poorly demonstrated – was that the local agencies could do a better job. Period.

If anyone is still unsure of the ideology driving FLAG, please note that the Heritage Foundation and the Mercatus group aren’t the only players supporting the efforts.  There’s also the John Birch Society (They’re still around) touting the confab on Facebook.  Additionally, there’s the ever-present American Legislative Exchange Council (ALEC) imprimatur on the project.

One segment of ALEC testimony from a February 2016 FLAG meeting can serve as an illustration of their argument:

“Bureaucratic inflexibility and regulatory redundancy make it almost impossible for the federal government to handle the lands in its charge for optimal environmental health. Any change in strategy on how to manage the lands, such as harvesting trees on forest lands to reduce wildfire fuel loads and prevent pest infestation, can take years to adopt and implement. By the time the federal government is able to act, it is often too late.”

Examples? The argument is made that three factors are responsible for the severity of wildland fires – poor logging practices, overgrazing, and over aggressive fire control. At this juncture, we could well ask how, without regulatory control, can better logging practices be promoted throughout the region? Or, if the Bundy Bunch isn’t convinced by the Federal authorities to pay their grazing fees and not trespass on BLM lands, then how is a state with less in the way of resources supposed to take on the task? 

However, the most intriguing element of the ALEC position is this: Further, they have operated with budget shortfalls for over a decade calling into question whether they even have adequate funds to get the job done.”  At this juncture it’s appropriate to ask – and who is touting cutting the federal and state budgets?  Who, if not ALEC?  Thus, the federal government can’t do a better job because the funding has been cut, and because the funding has been cut it can’t do the job?  Circular Reasoning at its finest, looped in with the obvious cuts and shaving from state budgets.   The ultimate argument would be that neither the federal government nor the state governments can “do the job” and therefore the lands should be transferred to private hands.  Nothing would please the Koch Brothers more?

The second way one gets attached to the Bundy-ites is to get mealy and smushy about their activities.  As in, “we do understand their frustration with increasingly heavy handed federal agencies that continue to violate the rights of hardworking American farmers and ranchers.” [RGJ]  It’s past time to get specific.  Exactly what constitutes “heavy handed federal agencies?”  Are they agencies which are tasked to collect grazing fees?  How long is an agency expected to wait for a person to decide to pay those fees? 

Exactly what constitutes a “violation of rights of hardworking people?”  Exactly what rights have been violated?  How is it a violation of my rights to have to pay the same grazing fees, or have to move cattle from overgrazed areas, just like every other rancher in a given area under Federal management?  Freedom, rights, and independence are easy words to toss around, but without actual evidence of real violations of RIGHTS then the argument is hollow.

Bundy rally And, one lands on the anti-public lands roster by sponsoring legislation like Representative Amodei did in April 2015:

“Most recently, Congressman Mark Amodei (R-NV) introduced a “large-scale” public lands bill, which would allow the state of Nevada to seize and sell off public lands. Representative Rob Bishop (R-UT), chair of the House Natural Resources Committee, also requested $50 million in the federal budget in order to facilitate immediate transfer of public lands to state control.”  [TP]

Looks like a duck, walks like a duck, quacks like a duck, then there’s no reason to list it as anything other than a duck.

Comments Off on Amodei Quacks Like A FLAG-waving Duck

Filed under agriculture, Amodei, ecology, koch brothers, National Parks, Nevada news, Nevada politics, Politics, privatization, public lands, Rural Nevada

Amodei, Heck, Hardy, Sell Out Seniors

Amodei 3 There are three members of the House of Representatives from Nevada who, as of April 28, 2016 at 3:23 pm roll call vote #176, don’t get to talk about protecting retired persons, and their interests.  One of these members is Mark Amodei (R-NV2) who decided to vote “yes” on a House temper tantrum about Department of Labor rules on fiduciary duty.

Heck photo

Representative Joe Heck (R-NV3) is the second.  Congressman Heck decided that investment advisers should be allowed to put their own interests ahead of the interests of their retirement account clients.  Perhaps he’s touting the GOP line that making the investment advisers put clients’ interests ahead of their own profits would mean higher costs for investment advice.   The GOP says they want to “protect access to affordable retirement advice.”  If you are inclined to believe this I have some investment advice for you….free of charge.

Hardy 2

And, the third one who doesn’t get to talk about protecting retirees? Nevada 4th District Mr. Malaprop, Cresent Leo Hardy, Republican from Mesquite.   He seems to like the “old standard,” and this raises the question why?  Let’s take a look at the “old standard:”

“Before the new standard, advisers were only required to give “suitable” advice, which left the door open for them to steer clients into products that made the advisers more money but weren’t the best option. That practice was costing Americans an estimated $17 billion a year in conflicted advice, according to the White House. Some people say their finances, particularly their chances of retiring comfortably, have been destroyed by bad advice and that they would have simply been better off without it.” [TP]

Yes, we have it, Representative Hardy evidently believes that it is better for Americans to waste $17 billion per year on conflicted investment advice than to hold advisers to a higher standard of fiduciary responsibility.

Titus

One, that would be ONE member of the Nevada congressional delegation voted to hold financial advisers to a higher standard than “just what will best line the pockets of their firms.”  Representative Dina Titus (D-NV1) was the lone member among the delegation to vote against the GOP sell out to the financial and banking industry.

Thus, the next time one of the three Republicans blather on about how they want to protect senior citizens and retirees – We can smile and say “But what about HJ Res 88 on April 28, 2016 at 3:23 pm.”

Comments Off on Amodei, Heck, Hardy, Sell Out Seniors

Filed under Amodei, financial regulation, Heck, Nevada Congressional Representatives, Nevada politics, profiteering, public employees, Titus

Wall Street May Not Be The Enemy: It’s the friends we need to watch

“Wall Street” is an extremely elastic catch phrase, useful for politicians of all stripes.  For example, we have Senator Dean Heller (R-NV) reminding us at every possible moment that he “voted against the bail out.” And, we have politicians from the other side of the aisle excoriating the traders for all the ills of modern America.  Both are off the mark.

Wall Street sign

First, beware the thinly veneered populism of Senator Heller.  Yes, he did vote against the bailout – an extremely safe vote at the time – but, NO he hasn’t stopped being the Bankers’ Boy he’s always been.  Let’s remember that while he was offering himself as the Little Guy’s Candidate he was voting on June 30, 2010 to recommit the Dodd-Frank Act to instruct conferees to expand the exemption for commercial businesses using financial derivatives to hedge their risks from the margin requirements in the bill.  Then, on June 30, 2010, he voted against the conference report of the Dodd-Frank Act.  Heller wasn’t finished.

In 2011 he and then Senator Jim DeMint (R-SC) introduced S. 712 – a bill to repeal the Dodd-Frank Act.

“What S. 712 does is to (1) repeal measures which require banks to have a plan for orderly liquidation (another word for bankruptcy), (2) repeal requirements that banks keep records of transactions which would need to be transparent in case an “orderly liquidation” is in order, (3) repeal the establishment of an oversight committee to determine when a bank is becoming “too big to fail,” and is endangering the financial system — an early warning system if you will.  The new requirements governing (4) Swaps would also be repealed, along with the (5) Consumer Protection bureau.” [DB 2011]

Few could have been more obviously promoting the interests of Wall Street traders than Heller and DeMint. [DB 2012]  Few could have been more readily apparent in their enthusiasm to protect the financialists from the provisions of the Dodd-Frank Act including the Volcker Rule.

Volcker Rule

A word about the Volcker Rule:

“The Volcker Rule included in the Dodd-Frank Act prohibits banks from proprietary trading and restricts investment in hedge funds and private equity by commercial banks and their affiliates. Further, the Act directed the Federal Reserve to impose enhanced prudential requirements on systemically identified non-bank institutions engaged in such activities. Congress did exempt certain permitted activities of banks, their affiliates, and non-bank institutions identified as systemically important, such as market making, hedging, securitization, and underwriting. The Rule also capped bank ownership in hedge funds and private equity funds at three percent. Institutions were given a seven year timeframe to become compliant with the final regulations.” [SIFMA]

Yes, Senator Heller et. al., if the Dodd-Frank Act is repealed then the financialists on Wall Street may go back to gleefully trading all manner of junk in all kinds of packaging with no limits on bank ownership of hedge and private equity funds.  Let’s remind ourselves at this point that capitalism works.  It’s financialism that’s the problem.  Under a capitalist form of finance resources (investments) are moved from areas (funds) with a surplus to areas (businesses) with a scarcity of funds.  Under a financialist system capital (money) is traded for complex financial instruments (paper contracts) the value of which is open to question.  Not to put too fine a point to it, but the “instruments” seems to have whatever value the buyer and seller agree to whether the deal makes any sense or not.  The Dodd-Frank Act doesn’t forbid “financialism” but it does put the brakes on.

Notice, it puts the brakes on, but doesn’t eliminate the old CDOs.  Nor does it prevent the CDO with a new name: The Bespoke Tranche Opportunity.  It works like this:

“The new “bespoke” version of the idea flips that business dynamic around. An investor tells a bank what specific mixture of derivatives bets it wants to make, and the bank builds a customized product with just one tranche that meets the investor’s needs. Like a bespoke suit, the products are tailored to fit precisely, and only one copy is ever produced. The new products are a symptom of the larger phenomenon of banks taking complex risks in pursuit of higher investment returns, Americans for Financial Reform’s Marcus Stanley said in an email, and BTOs “could be automatically exempt” from some Dodd-Frank rules.” [TP]

Zero Hedge summed this up: “This is the synthetic CDO equivalent of a Build-A-Bear Workshop.” We’re told not to worry our pretty little heads about this because, gee whiz, CDOs got a bad reputation during the Big Recession of 2007-2008, when they were just “hedging credit exposure.”  Yes, and ARMs got a bad reputation when they were just putting people in houses… Spare me.

And, we’d think that after the CDO debacle of 2007-2008, some one might have learned something somehow, but instead we get the Bespoke Tranche Opportunity and a big bubble in really really junky bonds.   That would be really really really junky bonds:

“Junk bonds are living up to their name right now. As we have noted in the past, the lowest-rated junk bonds may have inflated a $1 trillion bubble at the bottom of the debt market. The thing is, it never should have gotten that way.” [BusInsider]

Indeed, back in the bad old days no one could issue CCC bonds.  Now, we have Central Banks supporting Zombie Companies, low yield Treasuries making investors look to more “speculative” debt, and more demand for high yields meant that purveyors of Junk found a market for their garbage. [BusInsider] And, of course, someone out there is hedging all this mess.

Lemmings Here we meet the second problem with financial regulation in this great country.  Not only would the Bankers’ Boys like Senator Heller like to go back to the days of Deregulation, but the Financialists are hell bent on Yield! High Yield!  Even if this means supporting Zombie Companies which should probably just die already; even if this means allowing the sale of Bespoke Tranche Opportunities; and, even if this means selling bonds no one would touch only a few years ago.  The quarterly earnings report demands higher yields (As in: What Have You Done For Me In 90 Days Or Less) and investors jump like lemmings off the cliff.

We’ll probably keep doing this until someone figures out that in these schemes the chances are pretty good that “getting rich fast” more often means going broke even faster.  Thus the financialists package Bespoke Opportunities and C (for Crappy) Bonds.

Said it before, and will say it again:’  What needs to be done is —

  • Continuing to restrict the activity of bankers who want to securitize mortgages, under the terms of existing banking laws and regulations.
  • Continued implementation of the Dodd-Frank Act.

To which we should add, “restrict the creation and sale of artificial “investment” paper products which add nothing to the real economy of this country, and instead soaks up investment funds, and creates Bubbles rather than growth.

 

Read more atSIFMA, “Volcker Rule Resource Center, Overview.” Desert Beacon, “Deregulation Debacle,” 2012.  Desert Beacon, “Full Tilt Boogie,” 2011.  Think Progress, “High Risk Investments,” 2015.  Zero Hedge, “The Bubble is Complete,” 2015.  Bustle, “Is the ‘Big Short’ Right?, 2016.  Bloomberg News, “Goldman Sachs Hawks CDOs,” 2015.  Huffington Post, “Big Short, Big Wake Up Call,” 2016.  Market Mogul, “BTO, Deja Vu” 2016.  Business Insider, “Trillion Dollar Bubble,” 2016.  Business Insider, “Bubble Ready to Burst,” 2016.  Seeking Alpha, “OK, I get it, the junk bond miracle rally is doomed,” 2016.  Wolfstreet, “CCC rated junk bonds blow past Lehman moment,” 2016.

Comments Off on Wall Street May Not Be The Enemy: It’s the friends we need to watch

Filed under Economy, financial regulation, Nevada politics, Politics