Blog Title: Desert Beacon

Heller, Roast Beef and Challah: The Cantor Connection

Trust me, please, that at the end of this post there will be a connection between Rep. Dean Heller (R-NV2) and the author of one of the more intriguing takes on how the Republican Party can reform, or re-form, itself. Sometimes there are statements that illuminate the core of Republican hypocrisy like a harsh shaft of sunlight, and this is one of them: “One, we have to stop defending the type of spending that we’ve always criticized the other side for engaging in. No. 2, we need to stop defending unethical conduct on either side of the aisle, and that includes our own. And third, we’ve got to go about trying to regain the credibility as adherents to the core principles that this country was based on and our party’s based on,” he said.” [Politico] (Emphasis added) The speaker is House Minority Whip Rep. Eric Cantor (R-VA) describing what the GOP needs to do to polish its image.

“And that includes our own?” Surely, he's not including himself in this statement, otherwise how might he explain the following:

During a January 2003 fund raising event on behalf of Cantor, Jack Abramoff “unveiled the Eric Cantor Sandwich.” (Cantor wanted it to be roast beef on challah) [Dem.Org] As of June 2003 Cantor had still not reported paying any of the expenses for the event, although statutes require reporting within 60 days. Cantor sought to explain away the issue by saying he had not received an invoice from Abramoff. [TP]

Also in 2003, Representative Cantor co-signed a letter to Interior Secretary Gale Norton along with House Speaker Dennis Hastert, Majority Leader Tom DeLay, and Majority Whip Roy Blunt opposing the Jena Band plan for the Choctaws to open a casino at an off-reservation site. The proposed casino would have been in competition with the Coushattas, who were Abramoff clients. [Dem.Org] [VilVoice]

In April 2005, Cantor co-hosted a fundraiser with Jack Abramoff on behalf of Rep. David Vitter at Abramoff's “Signatures” restaurant in Washington, D.C. Vitter was later forced to admit to the Federal Elections Commission that he had not paid for the fund raising event's expenses.

When Abramoff pleaded guilty to three criminal charges on January 3, 2006, Cantor announced that he was 'returning' $10,000 in political donations received from Abramoff. [DU] Indianz reports that Cantor received approximately $30,000 via Abramoff's services. Records indicate Cantor received $2,000 from Abramoff on March 3, 2003 and $2,000 from Pamela Abramoff on February 18, 2003. [OS]

Cantor, who was first elected to Congress in 2000, has received 44% of his total campaign support from political action committees, and during his career has self financed about 1%. [OS]

One indication that Cantor may have not completely distanced himself from the Abramoff scandals is that on August 2, 2008 the McCain Campaign asked the Virginia Congressman for personal documents as part of the vice-presidential candidate vetting process. [NYDN] He was passed over by the campaign in favor of Alaska Governor Sarah Palin. The documents might have demonstrated ties Senator McCain could have had to expend time and energy explaining.

During the 2006 campaign season Cantor was substantially assisted by Sheldon Adelson, to the tune of $12,200 in contributions from Adelson and members of his family. [OS] The Adelsons were only slightly less generous in 2008, contributing about $11,500 in total to Cantor's campaign coffers. [OS] Among other major contributors to Cantor's 2008 campaign funds were Verizon Corporation, Wachovia Group, Altria Group, Comcast Corp., Genworth Financial, and Ernst & Young. [OS] Two of these, Wachovia and Genworth Financial, indicate Cantor's connections to the current financial mess being experienced by U.S. credit markets.

On April 27, 2008 Wachovia agreed to pay about $144 million to end an investigation by the U.S. Office of the Comptroller of the Currency that accused the bank of allowing telemarketers to use its accounts to pilfer millions of dollars. Wachovia had no comment about any wrong doing, but was found to have engaged in unsafe practices, failed to conduct due diligence, failed to monitor accounts used by telemarketers, and failed to follow normal procedures that would have uncovered thefts. [IHT] By September 29, 2008 Wachovia had been sold to Citigroup for $2.16 billion. “To consummate the deal, the FDIC promised to limit Citigroup's losses on a $312 billion portfolio of Wachovia's most troubled loans. [...] In exchange, the government would get a $12 billion stake in Citigroup, making it one of the largest shareholders in what would be the nations' largest bank.” [WaPo]

On November 30, 2008, CNN reported that loan defaults on commercial mortgages were starting “to hit insurance companies and may be contributing to the stock market's woes.” Genworth's, solution was to apply to the federal government to purchase thrifts so that they could quality for some of the federal TARP funds. In fact, Genworth had already announced its purchase of a thrift in Maple Grove, Minnesota, for the purpose of turning itself into a savings and loan holding company that would quality for “infusions from the government.” [WSJ] On November 16, Genworth announced it was in negotiations with Interbank Fsb, which was also eligible for TARP funds. [Blmbrg] All of which forms an interesting transformation from a corporation that formerly offered insurance and financial management services. This connection makes it all the more engaging when we remember that Cantor was one of the first members of the House to blame House Speaker Nancy Pelosi for the failure of the first bail out vote. [FDL]

Cantor railed that there should be limits on executive compensation included in the bail out, however we should probably consider how one of his other major donors, McGuireWoods LLP, viewed the legislation. According to McW LLP's attorney, the legislation didn't clarify or differentiate between voluntary and involuntary termination of CEOs; “These rules have been very carefully drafted," he said. "There is no guidance, literally. . . . This rule is not entirely clear and I think it was purposely drafted this way." Stirling Newberry summarizes best: “How convenient, given that McGuireWoods LLP represents companies receiving bailout money, that the new Republican Minority Whip has been receiving large donations from his firm for years. How interesting that on his blog he promises limits, but in the bill, there are none. A bill he didn't just vote for twice, but went to the wall for, risking a partisan meltdown over to get it through.” [FDL] Interesting indeed.

While the sources of Cantor's campaign funds are intriguing, the recipients of his largess from his ERIC PAC are also interesting, – Representative Dean Heller (R-NV2) who received $10,000 from Cantor's leadership PAC during the 2008 campaign season, in addition to the $10,000 Heller received during the 2006 campaign circuit. [OS] Defeated Congressman Jon Porter (R-NV3) took $10,000 from Cantor in 2006, and $10,000 in 2008.

Considering his previous associations with Abramoff and companions, his conflicted sources of income for his ERIC PAC, and his acceptance of substantial funding from radical right wing contributors of the Adelson variety – it's not at all clear why anyone should believe that Cantor's prescription for the GOP is sincere, nor is it apparent that Representative Heller is enhanced by his association with Representative Cantor.

Down Day

The vagaries of household renovations have implications even in the Nevada Brush Country. So please be patient -- something will get posted sometime today, this afternoon, tonight?

Overnight Express: News Roundup

The Nevada Economic Forum released its projections today showing the state will have $5.65 billion in revenue for the next two years, which is $1.2 billion less than government spending expected in the current biennial budget. [LVRJ] The troubles in California are well publicized, but there are other states joining the ranks of “budget challenged” as well. The Michigan Legislature opens its session with a shortfall estimated between $400 million to $900 million. [DFP] South Carolina is facing a $90 million shortage that will force the state to make cuts. [SCG] All told, some 41 states have projected shortfalls in fiscal 2009/2010. [CPBB]

Why is it that some of the first services cut fall into the mental health category? The Kansas state Department of Social and Rehabilitation Services announced today that it was immediately freezing access to a program that serves the disabled, and mental health advocates were told to expect a 7.3% cut in grants to assist patients. [LJW] Oregon's Governor has submitted a budget that would cut substance abuse, and mental health services. [RG] Georgia is looking at total privatization of state psychiatric hospitals. [AJC] Massachusetts has cut approximately $33.5 million from its Department of Mental Health programs. [AttleboroSC] Mental health services have been slashed by $25 million in Hawaii. [HonoAdv] In Nevada, the Silver Springs Mental Health Clinic may be scheduled for closure if funds aren't found by July 2009. [NA]

More of that Stupid economy: “JPMorgan to cut 9,200 Washington Mutual jobs” [Reuters] “Government expands tax probe to HSBC, Credit Suisse: report” [Reuters] “Layoffs coming to Insite Vision: Alameda based company to cut 15 jobs (35% of its workforce)” [SFBT] “Layoffs at Cemex come in time for holidays” [TampaTrib] “Ash Grove Cement Co. (ID) will lay off 45 of their 68 full time employees” [LN8 Pocatello] “Ford resists pressure to cut CEO compensation” [WSJ] “UAW wants limits on carmakers' executive pay” [Reuters] “10 CEOs to go for 2009: Rick Wagoner of GM” [24/7]

Rumors of the impending fall of the Conservative Party government in Canada appear to be well founded. The Conservatives face a coalition of Liberals, New Democrats, and others prepared to assume power if the economic proposals (declared to be a confidence vote) are defeated in their Parliament. [NYT] The “Tories to consider all options to stop opposition” [Edmonton Sun] “Crisis on Parliament Hill: What happens next?” [NatPost]

We may know the five members of Congress mentioned by Mitchell Wade, who has been providing information to federal investigators. The nominees are: Senator Daniel Inouye (D-HI), Rep. Alan Mollohan (D-WV), Rep. Jerry Lewis (R-CA), Rep. Virgil Goode (R-VA), and Rep. Katherine Harris (R-FL) [Sunlight Fnd] Harris and Goode lost their seats in recent elections. Goode's first recount hearing is scheduled for Tuesday. [NBC29] Mitchell Wade who founded MZM will be sentenced before December 25^th, and could receive a four year sentence for pressuring his employees to make campaign contributions to Goode. [MDN] With Inouye's name made public in connection with Wade's MZM scandal, questions could be raised in the Democratic Caucus about his assumption of the Appropriations Committee chair?

The Southern Poverty Law Center won a jury verdict against the Imperial Klans of America; the $2.5 million award will likely cripple the hate group that has 16 chapters in eight states. The award comes on behalf of Jordan Gruver who was brutally beaten at a county fair in rural Kentucky in July 2006. [SPLC] Anti-Latino hate crimes are increasing for the fourth year, up 40% since 2003. [IR] The Leadership Conference on Civil Rights issued a statement condemning the escalation of attacks on communities of color, exemplified by the murder of Marcelo Lucero. [LCCR] The HRC has commended the selection of Eric Holder as Attorney General for being an “unswerving proponent of fully inclusive federal hate crimes legislation.” [Edge] “Attorney General inherits a damaged department” [McClatchy]

International headlines: “Israel blocks aid ship bound for Gaza” [GuardianUK] “Unpaid Zimbabwe soldiers fight police” [IndependentUK] “Northern Cyprus Prime Minister: Cyprus wounds must finally be healed” [Der Spiegel] “Congo rebel leader threatens war” [AJE] “US warned India twice about sea attack on Mumbai” [Times of India] “Venice sees worst flooding in 20 years: Reports say 40% of the city's historic buildings have been affected as city mayor tells residents to stay home” [Guardian UK]

Want to take a quick test of your Current Events Knowledge? Try the “Take the Quiz” page at the Pew Research website. (Warning: the question about the Dow Jones Industrial Average is dated.)

Ensign still pushing McCain porkie about corporate taxes

Senator John Ensign (R-NV) was on CNN today offering up what has become a standard Republican talking point: “The U.S. has the second highest corporate tax rate in the world.” True to his recitation of Tax Foundation, Heritage Foundation, and Chamber of Commerce rhetorical history, Ensign stated this proposition as an absolute fact during his commentary implying that the U.S. economy would rebound if we continue to cut taxes on corporations. Not. So. Fast.

First, let's be clear about what is being measured: “The United States has the second highest corporate tax rate of the 30 countries in the Organization of Economic Cooperation and Development (OECD). But because the United States has so many generous special tax preferences for businesses, it collects the fourth lowest corporate tax revenues as a share of GDP among all OECD countries.” [OF.org] (emphasis added)

Secondly, we need to take into consideration this explanation from Smart Money: “You may have heard: U.S. corporations face one of the highest income tax rates in the world, though the mention of "rate" is often enough excised, so that what comes through is the assertion that corporations pay too much in taxes. This is simply untrue if your basis for comparison is the developed world. The truth is that while the 35% corporate income tax rate is high indeed, the creativity and global reach of U.S. corporations make them among the most lightly levied. Between 2000 and 2005, U.S. corporate taxes amounted to 2.2% of the GDP. The average for the 30 mostly rich member countries of the Organization for Economic Cooperation and Development was 3.4%.” (emphasis added) In fact, Smart Money cites Treasury Department officials reporting that various tax breaks depress the effective rate to about 27%.

A not-so-gentle reminder to Nevada's junior Senator: Saying something repeatedly does not make it true. However, it does indicate that the GOP has nothing new to offer except the same old "cut taxes" refrain.

Bits and Pieces: News Roundup

In the interest of giving credit where it's due: Rep. Shelley Berkley (D-NV1) led the Nevada Congressional delegation in the most recently released League of Conservation Voters report on the 2^nd session of the 110^th Congress with a 92% rating for 2008. Her 2007 rating is listed at 75%, and she has a laudable lifetime rating of 85%. One might reasonably assume that incoming Representative Dina Titus (D-NV3) will have a better rating than the 54% earned by outgoing Rep. Jon Porter (R-NV3).

It's official: the U.S. economy has been in a recession since December 2007 – so sayeth the official National Bureau of Economic Research. [TP] Not that the White House is at all inclined to use the term, “The White House commented on the news that a second downturn has officially begun on President George W. Bush's watch without ever actually using the word "recession," a term the president and his aides have repeatedly avoided. Instead, spokesman Tony Fratto remarked upon the fact that NBER "determines the start and end dates of business cycles." [BusWk]

The recession should come as no surprise: “Global manufacturing gauges collapse in November: US ISM index falls to 36.2%, lowest in 27 years.” “The employment index declined to 34.2% in November, reaching the lowest level since 1991, from 34.6% in October. On Friday, the government will report on nonfarm payrolls for November; analysts are looking for a loss of 350,000 jobs, which would be the largest drop in almost three decades. The order backlogs index fell to 27%, the lowest level since ISM began tracking the data in January 1993, from 29.5%.” [MrktWtch]

Making matters worse for the housing situation: “Investor sues to block mortgage modifications: a lawsuit against Bank of America claims states and banks will short bondholders $8.4 billion and damage the market by cutting home payments.” [BusWk] The suit was brought by William Frey, a private investor in mortgage backed securities, who claims that “while loan adjustments may help to keep struggling borrowers in their homes today, [...] those alterations run the risk of permanently damaging the secondary market for housing finance.” And, if Frey is successful we can reasonably predict that the construction sector will continue to produce more headlines like “October construction spending drops 1.2 percent” [IHT]

And then there's the business with the cars: “November car sales slide shows auto crisis worsening” [Reuters] “Ford reviews plan to shed luxury Volvo brand” [DFP] “Column: Long term idea for Detroit 3: Think globally for way to survive” [DFP] “Each player in Big Three is devising it own plan” [NYT]

The top foreign policy officials have been appointed to the Obama Cabinet, [NYT] but what about the middle and upper tiers of the agencies? Spencer Ackerman lists “Five Foreign Policy Positions to Watch” in the Washington Independent. Ackerman's list includes Ambassador to Iraq, Assistant Secretary of Defense for Special Operations, Low intensity Conflict and Interdependent Capabilities, Assistant Attorney General Office of Legal Counsel, Undersecretary of Defense for Policy, and Director for the Middle East on the National Security Council. Someone is going to have to sort out the case of the 17 Uighurs being held at Guantanamo who are hapless victims of the Bush Administration's detention policy which says they are no longer considered enemy combatants, but the Administration won't release them because “only the President and the Department of Homeland Security have the authority to do so.” [WashInd]

Minnesota Recount: Matt Taibbi posts his commentary in “The Last Recount: In Al Franken's race in Minnesota, blue and red tangle for the final time in the Bush Era.” [Rolling Stone] More at: “Recount Roundup: The Final Stretch?” [MNIndp] What do some of the challenged ballots look like? See “The Ballot Challenge” at the MST site. (log in required) About 88% of the ballots have been recounted. Coleman is leading by 282 votes. [MST]

Georgia on anyone's mind? “Chambliss and Martin face Senate runoff in Georgia” [LAT] “Chambliss, Martin Stump today” [AJC] Palin is back on the trail for Chambliss, but the clothes thing just won't go away; Bruce McCall puts a humorous spin on the GOP's Shopper In Chief. [WashIndp] Alaskans don't seem to be so taken with their Governor's new calling, “Palin a GOP star but little liked by center” [AchDN]

That old Culture of Corruption: “As new trial looms, questions raised about prosecution of former procurement chief” [GovExec] “Dirty Don ditched by Republicans: corrupt Congressman removed from power” [Alaska Report] Young removed from GOP steering committee, and could soon be removed as ranking member of the House Natural Resources Committee.

To our health? “Medicare's private insurers await impending cutbacks” [The Hill] “FDA details its food safety program” [NYT] “Some US doctors may give up on vaccines due to cost” [AP] “Health needs of autistic children often unmet” [Forbes] “On world AIDS day, doctor says more pediatric AIDS drugs needed” [VOA]

Recommended Reading: “NBC and McCaffrey's coordinated responses to the NYT story” Glenn Greenwald, [Salon] “Race, Youth, even 'burbs go against Republicans: Albert R. Hunt” [Bloomberg]

Dirty Dean gets 23% rating from League of Conservation Voters

The League of Conservation Voters has mailed out its Report Card for the 110^th Congress's second session, and we find “Dirty Dean” Heller (R-NV) with a lowly 23% rating, a very slight improvement over his 2007 rating of 15%, and his overall 110^th Congress rating of 18%. {LCV, pg 33} Rep. Heller voted “no” on all but two pieces of legislation that sought to promote alternative energy sources and improve ecological awareness.

Heller voted “no” on H.R. 5351, the Clean Energy Tax Credit I bill; H.R. 6049, the Renewable Energy and Job Creation Act of 2008, and the Clean Energy Tax Credit II bill. Opponents of the Clean Energy Tax Credits illogically charged that closing loopholes in taxation statutes constituted a “tax increase.” Given this line of reasoning we might expect Rep. Heller to vote against closing tax loopholes for tax evaders who put their funds in off-shore banks?

Rep. Heller also voted for a back-door attempt to drill in ecologically sensitive areas off the Continental Shelf and in the Arctic National Wildlife Refuge, supporting the Ryan Amendment, (Budget Reauthorization) which was defeated 185-229 on May 14, 2008. Nor was Rep. Heller interested in establishing “Green Building Standards,” voting in favor of the Capito Amendment to H.R. 2534 that would have made the standards voluntary and allowed the Bush Administration to choose any industry backed standard it chose for voluntary compliance.

Congressman Heller also opposed H.R. 6052, the Saving Energy Through Public Transportation Act of 2008. The measure sought to enhance the affordability and convenience of public transportation by providing grants to local transportation authorities to expand and improve their services. In short, Rep. Heller seems not to be in favor of increasing national support of local transit plans, in spite of increased demand for such services and the fact that increased ridership eases our “addiction to foreign oil,” and therefore helps keep fuel prices lower. Mr. Heller wasn't any more interested in the National Landscape Conservation System. He voted against it. As he did against S.Con. Res. 70 when it came to the House floor on June 5^th. The resolution reversed Bush Administration cuts to many “important environmental and conservation programs.” {LCV pg.22}

Representative Heller also opposed “No Child Left Inside,” H.R. 3036, which created a grant program for states to develop environmental literacy programs and support teacher training in environmental education, and extended the National Environment Education Act.

Congressman Heller may seek to assert that he has “supported” environmental legislation by voting in favor of the Public Lands Protection bill, and the Farm Bill's subsidy reform provisions, and against an amendment gutting the renewable energy legislation, but these are three out of thirteen measures – yielding his 23% rating. All in all, Representative Heller's voting record suggests his support for the status quo; “old” energy sources, maintaining the primacy of fossil fuel industries, and opposing any legislation that might alleviate our addiction to oil.

Sunday Punch: When Dealing With Republicans - Trust but Verify?

As much as I'd like to sit out here in northern Nevada's remote bastions of artemisia tridentata and believe that “change” will prevail in the nation's capital, there are some sorry signs that all that 'cooperation' promised by Republicans is nothing more than lip service with copious finger crossing behind their backs. There are signals that the same obstructionist leadership of the GOP who tied up legislation and set Senate filibuster records are setting out to establish a public relations base for operating no differently than they did during the 110^th Congress.

Sign Number One: No matter how many Republicans president-elect Obama appoints to important positions in his administration, there won't be “enough,” or they “won't be the right ones.” Consider the following report from Politico: “Leader Boehner obviously hopes and expects that the president-elect will keep his promise to include Republicans in his Cabinet,” said Michael Steel, a spokesman for House Minority Leader John Boehner. “Obama has pledged to govern in a bipartisan way, and we have pledged to work with him when he does." “Choosing one or two token Republicans in lesser Cabinet positions won't pass the smell test,” said Dan Bartlett, who served as communications director and counselor to the current President Bush. “Keeping Secretary Gates would be a huge signal and important governing move.” (emphasis added) Perhaps we need a translation at this point? Boehner appears to be saying that IF president-elect Obama appoints “enough” of the “right kind” of Republicans THEN (and only then?) the House GOP leadership will work with him.

In short, nothing will do for the Republican leadership but the appointment of Republicans at State, Treasury, Defense, or as Attorney General? Are we to interpret this to mean that if Republicans aren't appointed to these position, then the Republicans are free to denounce the president-elect as “breaking his promise,” and therefore more GOP obstructionism is justified?

Let us assume for a moment that Bush Administration Defense Secretary Robert Gates is chosen to continue his tenure during the Obama Administration – but, wait – is Gates “Republican enough?” Gates is not technically a member of the Republican Party. [FPP] Here's a potential justification for the hard rock obstructionists to cry, “Yes, one of the top four came from the Bush Administration, but he's not really a Republican.” If, or when, this line of argument is set forth, Minority Leader Boehner has a ready excuse for non-cooperation: President Obama didn't appoint a “real “ Republican to a major post, therefore he's broken his promise and we don't have to cooperate with him in any meaningful way. A stance such as this isn't a promise of bi-partisan cooperation; it's a form of extortion. Further, if this is extortion, then Bartlett's comments are little more than a “pay or else” demand.

Sign Number Two: The Republicans are back to their old tricks in the Senate. Senator Chris Dodd (D-CT) was adamant that given the shift in the TARP program at the Treasury Department the confirmation of a special inspector general to oversee the program was an action that should be taken sooner rather than later. The Senate Banking Committee held its confirmation hearing on November 20, and members were generally pleased with nominee Neil M. Barofsky's responses. [WaPo] Did any member of the Senate Republican leadership publicly state his or her opposition to his confirmation? The answer, of course, is 'no,' which only serves to highlight a tactic from the 110^th Congress: The Anonymous Republican Hold. It's November 30^th, ten days since the hearing, and still no confirmation, and no announcement of who's placed the hold on Mr. Barofsky's confirmation vote.

This “new spirit of cooperation” looks very much like some past examples of pure partisanship or tests of ideological purity. On Friday, December 23, 2005 there was no vote on the Intelligence Authorization Bill because of an anonymous Republican hold. [WaPo] The Senate Campaign Disclosure Bill was tied up in an anonymous Republican hold by a Senator, who turned out to be none other than Senator John Ensign (R-NV). [OEN] The Open Government Act was blocked in 2007 by an anonymous Republican hold. [FAS] On March 20, 2008 some anonymous Republican even placed a hold on two of President Bush's nominees for positions in the Justice Department; the nominee to be associate Attorney General, and the assistant Attorney General in charge of the Civil Division. [TP] When anonymous holds are found, can even more filibusters be far behind?

Sign Number Three: The Republicans use 'third party' shields for criticizing the object of their disaffection. For the moment the shield appears to be the Republican National Committee. The RNC was pleased to announce this week that president-elect Obama's appointments so far were “tax-raising, partisan Washington insiders, hardly the agents of change he promised.” Rahm Emanuel is a “partisan insider,” David Axelrod is a “partisan bomb thrower,” Tom Daschle is a “lobbyist,” Eric Holder, Jr. is a “political loyalist.” [NYT] Obviously, we have the old tried and true Republican dilemma at work here. If an appointee happens to have experience, then he or she is a Washington Insider. If, (Heaven Forbid) a Democratic President should appoint Democrats to his management team, then they must be bomb throwing wild eyed tax raising liberal partisans. There is no way to win with Republicans, and they don't intend for their target to do so. The GOP mantra, which never really got much traction on the campaign trail, that Senator Obama was a Promise Breaker, is resurrected for use in this classic third party shield attack. There's nothing new here, especially the GOP's continued commitment to the Permanent Campaign Doctrine. [Wdau]

The notion that the Republican leadership in Washington would behave in a collegial manner suited to enacting compromise legislation, and assuming the role of loyal opposition, has made for some “make-nice” moments from members of the party, and a few pundits; but, at the least these are three very clear signals that this is not their ultimate intention. These signals illuminate elements most closely associated with unadulterated gamesmanship, and any commentary to the contrary should be subjected to Reagan's Test: Trust But Verify.

And, that's today's Sunday Punch.

Saturday Under the Radar: Mining Sacred Mountains and Mismanaging Sacred Trusts

Thar's Gold! U.S. District Judge Larry Hicks will hear arguments this coming week in Reno, NV concerning the Tenabo Mountain mine project to be operated by Barrick Gold Corporation. The Western Shoshone and the Great Basin Resource Watch are seeking a temporary restraining order [Forbes] against the Cortez Project in Crescent Valley. The mountain is sacred to the Western Shoshone, and a focal point of the Newe Creation stories and worship. [WSDP] Great Basin Resource Watch asked: “Would you put an open pit mine in the Sistine Chapel?” [GBRW] The tribe and allied environmental groups argue that: “In approving the project, the BLM failed to adequately protect public and public land resources, including the religious, cultural, and environmental resources and uses at and around the project site as required by FLPMA [Federal Land Policy and Management Act], the RFRA [Religious Freedom Restoration Act], the Trust Responsibility owed to Native Americas and the implementing regulations of these statues," the lawsuit asserted, adding that the BLM "also failed to fully evaluated the project's impacts as required by NEPA [National Environmental Policy Act] and FLPMA." [MineWeb]

Bush Administration moves ahead – on oil and gas leases on public lands. The Administration will proceed with the proposed sales on about 500 square miles of public land in eastern Utah, a move opposed by environmental advocates and the National Park Service. The lease sales are due to take place in December. The incoming Obama Administration will have to decide whether to “honor the contracts, seek to undo the leases, or pay millions in taxpayer dollars to buy them back.” [WaPo]

There they go again! The appointment of Neil Barofsky to be the Treasury Department's special inspector general for the bail-out programs has been blocked by a Republican Senator. [TPMM] According to Senate Banking Committee chair Senator Chris Dodd (D-CT), “The nomination was cleared by members of the Senate Banking Committee, the leadership of the Senate Committee on Homeland Security and Governmental Affairs, and all Democratic Senators. However, the nomination was blocked on the floor by at least one Republican member.” [...] “Unfortunately, the confirmation has been delayed by at least one Senator. That delay is regrettable and not in the best interest of American taxpayers. It is my sincere hope that those who are blocking this nomination will reconsider their actions and confirm Mr. Barofsky at the earliest opportunity.” [Dodd]

Mr. Barofsky, a Bush nominee, was the subject of concern from a few Republican Senators, as indicated by a Chronicle article back on November 13^th: “Some Republican lawmakers have said they are also concerned that Democrats may avoid acting on the nomination so that Barack Obama can choose his own special inspector general after he becomes president. But people familiar with the matter said Barofsky, the leading candidate for the position, would be palatable to the incoming administration because he supported Obama.” [HouChron/WaPo] However, it's not Democrats who are blocking confirmation. Senator Dodd has stated that the confirmation was not opposed by any Senate Democrats. [TheDeal] We can also likely assume that it's not Senator Charles Grassley (R-IA) doing the blocking in light of his previous statements about the need to get a supervisor in place promptly. That leaves the list of possible confirmation blockers on the Republican side of the aisle, filled from the ranks of those who either because Mr. Barofsky supported the presidential candidacy of Senator Obama, or because of some petty turf war between Senate committees, have decided to block a confirmation vote. Meanwhile the TARP program, and Secretary Paulson's erratic handling of it, remains without adult supervision.

Coffee and the Papers: Post Tryptophan Edition

• Just what we need? The Nevada State Tax Commission refunds to Nevada casinos and Southern California Edison? [LV Sun] And, why does “soon to be indicted” Lt. Governor Brian Krolicki believe that his scheme for securitizing Nevada Tobacco Settlement funds, and as a consequence, shutting off assistance for 22,000 elderly Nevadans so that they can remain in their homes, is a good idea? Hey, don't worry – if you lose your home you can always get Medicare and live in a nursing home? Krolicki is still busy explaining why he did such a good job with the Nevada College Savings Plan that he's being prosecuted for it.
  

• According to Krolicki all the money was accounted for, no money was missing, and all the money was spent on the program – all undisputed. What Lt. Governor Krolicki's contending is that the Legislative Counsel Bureau's audit was biased and unfair because they chastised him for “not going through the budget.” However, it wasn't just “The Budget” then Treasurer Krolicki bypassed; he managed to bypass the program's board of trustees, and to spend far more funds than authorized by the State Legislature. Points not addressed in Lt. Governor's Mea Not Culpa. Krolicki's final comment: “Bottom-line - All funds related to this program were accounted for and balanced to the penny, and the Legislative Auditors basically didn't like how the program paid its bills." [LV Sun] Presumably, that would include the fact that the 9^th finding in the audit showed that the composite hourly rate for program legal fees was set by statute at $225 per hour and Krolicki spent some $428.64? Or, the 12^th finding that stated Krolicki spent more than the statutorily authorized $185,000 allowed each year for marketing? [DB]

• Securitizing the TSF might be an option if some local southern Nevada physicians weren't dipping and diving into Medicare funding, and now crying they were “railroaded” by the Justice Department's investigation of what certainly sounds like a kickback scheme if there ever was one. [LV Sun] Of course, some senior citizens would have to agree to move out of their homes and into (yet more expensive) nursing facilities to make the scheme whole. “John L. Smith: While state government slashes, Nevada's education crashes” [LVRJ] Could be worse – we're “only” 47^th in the nation in per pupil expenditures and student-teacher ratios.

• You know an administrator is in trouble when the word “embattled” creeps into the descriptors, as in “Bob Loux, embattled director of the Nuclear Projects Office,” who says there was noting unethical about raising his own salary. [NV Appeal] Loux seems intent on deflating one right wing balloon – that the Federal government would pay Nevada to accept nuclear waste material. The “logic” appears to go this way (1) there might be an amendment to pay Nevada for accepting the dump; and (2) if the amendment came to the floor of the House and Senate it would pass; therefore (3) Nevada would get money for hosting the dump. [NV Appeal] Reality seems to dictate another series: (1) there is no amendment and there isn't likely to be one; (2) it would have a snow cone's chance in Hades of passage even if it did make the floor; ergo (3) there is NO money to bribe Nevadans into accepting a nuclear dump site.

• Another investigation in the southland involves the Ponzi operation of developer Hans Seibt's HSLV Development and its bilking of retired investors. [LV Sun]

• And the corruption keeps coming out from the shadows: Mitchell Wade hints that there are more “Cunningham-like corruption cases” in the pipeline. [TP] Wade “has assisted the government in investigating five other members of Congress, numerous government employees and several private contractors, according to a memorandum filed by his attorney on Wednesday.” [WaPo] One individual mentioned in connection with “other investigations” is Rep. Virgil Goode, who has now officially asked for a recount after losing by 745 votes to Democrat Tom Perriello in Virginia's 5^th Congressional District. [WCAV] Another possible target of the investigations is none other than the rather infamous Katherine Harris (R-Florida Recount 2000).

• While all eyes are focused on the situation in Mumbai [BBC] life is also unsettled in Thailand [BBC], and poll riots have erupted in Jos, Nigeria [BBC] Events in the Congo demonstrate that the region is still profoundly unsettled. A UN envoy is making a repeated bid to get peace talks underway, [AFP] the UN is trying to relocate refugee camps away from the front lines [BBC] while rebels in east Congo capture two border posts and a town, causing more people to flee the fighting. [NYT]

• Layoff Watch: “Triangle homebuilders piling up liens, layoffs” [BizJNC] “Chrysler plans limited layoffs” [ModBee]

• Department of Duh: “Citigroup CEO says bank 'went wrong' in real estate.” [Reuters]

Happy Thanksgiving!

Happy Thanksgiving Day!

Our thoughts and prayers to the people of Mumbai as they continue to cope with the terrorist attacks in their city. The Times of India provides extensive coverage. The BBC is also posting up to date information.

Coffee and the Papers: Present Imperfect

It's official. The Nevada Secretary of State has certified that President-elect Barack Obama received 533,736 votes to 412,827 cast for Senator John McCain. About 2/3rds of the 970,019 Nevadans who voted used either early voting or absentee ballots. [SJMN]

As usual – Anjeanette Damon may have it pegged: Now why, if Lt. Gov. Brain Krolicki has known for at least a month that the grand jury was about to begin its deliberations on whether he violated state statutes, did he “announce” his intention to run against Senator Harry Reid one week before the publication of the grand jury hearing? Textbook PR – before the indictment, try to divert attention to the motives of the prosecution. Steve Sebelius responds to Krolicki's table pounding succinctly.

Here we go again. Rather than consider raising any revenue, the State of Nevada will respond to budget problems by taking funding from the most vulnerable? Mental health services, services for the blind, and child care assistance. [INP] Nevada already has 42% of the population reporting “poor mental health in the prior 30 days” in studies by the Kaiser Foundation, putting us in the No.1 rank in the country; a highly dubious honor. The state ranks 43^rd in the nation in available public psychiatric beds per 100,000 population, and we spend much less than the national average on mental health funding for hospital services. [UNLV]

Grover's Crystal Ball: According to anti-government guru Grover Norquist, our economy is tanking because the Democrats took control of Congress in 2006 and business leaders are reacting to tax increases not yet enacted. Other guests on the CNBC program laughed. [TP]

Labor Pains: Union members might be disappointed that President-elect Obama did not introduce a Secretary of Labor as a member of the “economic team,” [Politico] but, almost any appointment would be better than current anti-labor Labor Secretary Elaine Chao, whose department was the subject of a scathing report by the GAO concerning “erroneous and unreliable figures minimizing the actual expense” incurred in privatizing various departmental operations. [WaPo] Patience friends and neighbors – the Obama transition team is already way ahead of the transfer of power schedule from previous administrations. Speaking of which, Craig Shirley is still pushing the old, and long debunked, story about the Clintons making off with the silverware.

Shaping: Smintheus comments on how advocacy sank the possible (and unthinkable) appointment of John Brennan as CIA director. Too many blogs, and too many civil and human rights advocates pointed out the problems with appointing a man who had defended Bush rendition and “enhanced” interrogation methods. Brennan pulled his nomination. Digby calls it spooking the spook.

Expect the old playbook: Republicans will revert to the screams of “Socialized Medicine” to block any attempt by the Obama Administration to secure health care reform in the U.S. [Perr] Conservatives fear any health care program will create a situation similar to Social Security, which has been a proverbial third rail for those who want to privatize all government services. There's more on this topic at Think Progress, and note that USNWR is already worried that Tom Daschle might “kill conservatism.”

The Stupid Economy: “Consumers cut spending, durable goods orders fall” [Reuters] “US yearly economic growth rate hits new lows” [Reuters] “Google cutting contractor workforce” [CNET] “ArcelorMittal warns of large layoffs at U.S. steel plants” [CNN] “Cirrus announces temporary layoffs” [GFH] “The Media Myth: Detroit's $70 per hour worker” [MMA] “Global wages decline; U.S. income gap worst of developed countries” [AFL-CIO]

Golden Chutes and Gross Ups: Executive Compensation and Crocodile Tears

Combining the effects of global warming with the crocodile tears from the management of major international banking concerns could make beautiful downtown Laughlin, NV oceanfront property? Three former officials of UBS announced they are foregoing $27 million in compensation. Going a bit further, UBS announced that as of 2009 only 1/3 of bonuses would be paid and the remainder held in escrow, to be reduced if the firm has “poor results.” [NYT] This formula doesn't seem to be too popular with American companies.

AIG, the insurance behemoth that has become the poster child for executive excess, announced that the newly installed CEO will get a $1 per year salary. Five top executives will not be receiving 2008 bonuses or salary raises through 2009, and approximately 50 more members of management will not be getting long term performance awards or raises. [WaPo] Since AIG's been the recipient of about $152 billion in government support, and is now 80% owned by the taxpayers – it's really hard to see how any incumbents in corner offices would be getting any kind of “performance award” in the first place.

Goldman Sachs top executives voluntarily gave up bonuses this year. However, Bank of America informed the Senate Banking Committee that it would cut its bonus pool for senior management by 50%, and the shot-gun married couple, Wachovia and Wells Fargo, said 10 top executives would get a combined $98 million in severance pay. [BosGlb]

Congress has gotten an earful from irate taxpayers about executive compensation that apparently rewards failure, and bailout rules limit salaries to $500,000 with a tax penalty for exceeding the cap. Golden Parachutes are limited, and bonus/incentive payments that prove to have been based on inaccurate information would have to be returned. The Swiss, at least, managed to get the bulging bonuses held in escrow. Members of Congress might wish to be aware of some of the dodges used by U.S. corporations to avoid full compliance with salary and bonus limitations. One attempt to curb the excesses in 1993 capped tax deductibility for executive pay at $1 million (anything over that had to be based on performance) – corporations evaded the limit by offering stock options and payments in restricted stock. [BosGlb] This is the point at which we might want to note that should AIG return to profitability the $1 CEO is eligible for a “special bonus for performance.”

Then there's the matter of re-pricing the stock options with some companies thinking that they can reward the Executive Suites by re-pricing the options at bargain basement prices while other shareholders continue to “hang underwater.” RiskMetrics Group, which advises many institutional investors about compensation released its recommendations including cutting back on severance packages, avoiding perks like the use of corporate jets (Are the Detroit CEOs listening?), personal security systems, and car allowances.

One item not mentioned in the description of RiskMetrics' compensation guidelines is the “forgiveable loan” which is in essence a form of bonus written out as a loan but never really intended to be repaid. Watching out for these evasions will require more diligent oversight than has been evident from the Bush Administration, or from the various (and often hand-picked) boards of Directors. Between irate taxpayers and outraged institutional investors the denizens of the upper floors may find themselves compensated for the performance of their companies and not the gloss from their super-star status. If everyone involved is diligently paying attention.

Vets Have Yet Another Fight On Their Hands - With The Pentagon and the Labor Department

Next time some northern Nevada Republican politician gabs on about how “The Democrats will cut defense spending and don't support our military,” ask if he or she knows of Marine Cpl. James Dixon or Army Sgt. Lori Meshell. Both served in Iraq, both were injured in combat, and both were further victimized by the Bush Administration's Defense Department which so narrowed the definition of a “combat injury” that neither veteran was eligible for full combat related disability benefits. [LAT] Worse still, these are just the two veterans we know about.

The issue brings Undersecretary of Defense for personnel and readiness David S. C. Chu, back in the spotlight. Chu sent a March memo redefining which injuries should be considered “combat related.” “The definition is important because Section 1646 of the 2008 Defense Authorization Act said service members with combat-related disabilities no longer must pay back any disability retirement severance they receive from the Defense Department before they become eligible for disability compensation from the Department of Veterans Affairs, as has been the case under longstanding policy. The policy affects service members who receive a disability rating of 20 percent or less from the Defense Department, and thus receive a severance payment rather than lifetime disability retirement pay.” [MTforum]

Chu offered up a “money saving” new definition for this crucial element. Under the previous interpretation, “combat related” is defined as any injury or illness incurred in a combat zone or performing tasks related to combat, such as training for deployment or hazardous assignments like jumping out of airplanes.” Chu chose to narrow the definition. “Chu’s memo, the definition of “combat related” for the purposes of the new severance pay waiver is limited only to those injured in a combat zone in the line of duty or as a direct result of armed conflict.” [Mtforum] (emphasis added) The Pentagon ruled in Dixon's case that getting hit by an IED didn't count as “in a combat zone in the line of duty...” Meshell's injuries sustained diving out of the way during a mortar attack didn't quality either.

The Undersecretary denied that his ruling had anything to do with “cost savings,” he was merely following Congressional intent. The testimony given by DAV representative Kerry Baker to the House Committee on Veterans' Affairs offers a very different perspective. Baker tersely observed that “the Department of Defense knowingly violated the law and ignored the intent of Congress when it implemented Section 1646 of the NDAA.” Meanwhile back in the Bush Cabinet, the Department of Labor was engaged in narrowing interpretations meant to help service members and their families.

The Labor Department even found its own way to create problems for military families. The Bush Administration issued new policy guidelines concerning when civilian employers are required to allow leave so that a severely wounded family member on active duty, in the National Guard, or in the Reserves can be taken care of. The requirement extends the leave to 26 weeks. However, family members of active duty personnel are excluded from “the other half of the rule that allows up to 12 weeks of unpaid leave from a civilian employer to handle family needs in conjunction with a service member's deployment. That part of the rule covers only family members of Guard/Reserve personnel and retirees who are called back to service.” [MOAA] The Labor Department inexplicably ruled that the statutory language precluded allowances for active duty family members in the deployment portion of the law.

Tell me again how Republicans take care of the military?

Reference: “Disability Severance Pay” DFAS June 2008; “Section 1646” PebForum May 2007; “Testimony – Kerry Baker, Associate National Legislative Directory DAV, November 19, 2008 House Committee on Veterans' Affairs; “Injured veterans engaged in new combat: in a little noticed regulation change, the Pentagon's definition of combat related disabilities is narrowed, costing some wounded veterans thousands of dollars in lost benefits.” Los Angeles Times, November 25, 2008.

NV Lt. Gov. May Be Indicted: College Savings Program Audit Key?

Another one bites the dust? B/B to the Gleaner who recounts the Nevada Appeal story that Nevada Attorney General Catherine Cortez Masto's office has informed Lt. Governor Brian “Empty File Cabinets” Krolicki of his impending indictment for “misappropriation or falsification of government accounts by a public officer.” According to Lt. Gov. Krolicki, this is all a partisan witch-hunt. According to auditors, during Krolicki's tenure as State Treasurer funds for the Nevada College Savings Program were paid in excess of legislative authorizations, and the treasurer's office “hadn't set up accounting or internal control procedures.” “The $6 million included more than $3.4 million paid by program managers to a plan adviser. Another $1.5 million was paid for marketing and advertising and nearly $1 million for legal services by a Sacramento law firm, at a rate of about $429 an hour, auditors said.” Steve Sebelius posted his version of a Krolicki Indictment in March 2007, (B/B Gleaner) including the Las Vegas Sun report that when prior attempts to gather information about Krolicki's operations in office were conducted the results were disappointing: “My (Treasurer Kate Marshall) attempts to gather all pertinent documents and materials to resolve irregularities in the revenues and expenditures of the Nevada College Savings Plan have been hampered by the lack of historical information and documents in the treasurer's office," Marshall wrote. Marshall said holdover staff members told her they were directed "by the previous administration to destroy documents as part of the transition and without any regard to the record retention laws. "While many of them either chose not to destroy the documents and/or to purchase their own 'flash' drives to save data in the event documents were erased, this information is clearly disturbing," Marshall wrote.” (Desert Beacon Krolicki Time Line) Additional articles: “Nevada official says attorney general trying to indict him” [RGJ] Link to the original audit from Inside Nevada Politics.

The May 14, 2007 audit from the Legislative Counsel Bureau staff found that while participant's funds were adequately handled in the Nevada College Savings Program, the state's funds were not. The audit report concluded: (1) “Of the $11.2 million in funding available to the State since the Program started, more than $6 million was not deposited in the State Treasury.” (2) “On April 2, 2003, Program officials in the State Treasurer's office notified the program manager via e-mail that they were not to transmit any future fees to the State.” (3) “We determined that more than $6 million was paid for Program expenses from funds held outside the State Treasury.” (4) “During the 5 ½ year period the Program has been in operation, the Legislature approved total expenditures of $1.6 million. However, more than $7 million of Program expenses have been incurred during that time.” (5) “At the Board of Trustees meeting on November 17, 2006, the Board approved a contract amendment with its Program Manager which ended the practice of paying Program expenses outside the state system.” (6) “The financial transactions of the Nevada College Savings Program have not been accounted for in the Trust Fund established by the Legislature when the Program was created.” (7) “The State Treasurer's Office has not prepared financial statements for the Trust Fund since the Program began.” (8) “A law firm has been paid nearly $985,000 for legal services since the inception of the Program. Since the contracts for these services were with the State Treasurer's Office, the Board of Trustees has not signed or approved any of these contracts.” (9) “The composite hourly rate paid for legal services during the term of the contract ended June 30, 2002 was $428.64. This is significantly higher than the $225 specified in the contract.” (10) “The billings provided by the law firm were not submitted to the State Treasurer's Office on a timely basis.” (11) “The State Treasurer's Office made payments to the Plan Advisor of about $500,000 which were not properly supported or did not adhere to the terms of the contract.” (12) “The State Treasurer's Office made payments to a marketing firm in excess of the $185,000 maximum allowed each year under the contract.” (13) “Program officials in the State Treasurer's Office did not provide adequate oversight of contractors to ensure key Program information was provided to the Board. This included audited financial statements for each of the four plans that make up the Trust.” (14) “The State Treasurer's Office has not established accounting or internal control procedures to help guide staff in carrying out their responsibilities for the Nevada College Savings Program.”

These 14 findings from the LCB audit of the Nevada College Savings Program alone seem sufficient to indict the former State Treasurer for “misappropriation” of state funds, and one might argue successfully that his consistent failure to provide the Board of Trustees with coherent, unified, financial statements regarding the status of Program funds constitutes a form of falsification. If, in fact, the LCB audit forms the core of the possible indictment, then Lt. Gov. Krolicki's claim that “all Democratic partisan roads lead to Harry Reid” [INP] would require that Reid control the LCB auditors. While Nevada's senior Senator's reach may be long – it's very doubtful it extends to LCB director Lorne J. Malkiewich's legislative auditors.

Lt. Governor Krolicki's attorney observed: “"If he is a ham sandwich, he's indicted," Robinson said, referring to the old saying that a good prosecutor could convince a grand jury to indict a ham sandwich.” [INP] Given the LCB Audit findings, it appears that a more likely culinary version of Lt. Governor Krolicki would be toast.

Coffee and the Papers

Nevada Headlines: “Work cut out for next OSHA chief: even with optimism that comes with new president, many battles to be fought” [LV Sun] Does anyone find it surprising that the OSHA chief who had a “laid back” demeanor during last June's hearings concerning the fatalities at Las Vegas construction sites has gone to work for a law firm which represents companies under OSHA investigations?

Nevada's no longer a bargain in terms of college expenses - “Tuition hike tallied, proposal would make cost of UNLV above average in West” [LVRJ] The Western Shoshone Tribe is suing the BLM over mining on the sacred Mount Tenabo. [LVRJ] [RGJ] “Doctors question state Medicaid cuts” [RGJ]

Working can be hazardous to your health? “American Coal Company sues federal mine safety and health administration for unlawful regulation – company alleges that inspector's use of quotas, failures to notify, violates both federal law and MSHA rules” [MrktWtch] “Reforms written in miner's blood” [CharlGz] “Bush's midnight rules include weaker family leave, longer hours for truckers” [PWW] “EPA, with White House nudge, eases rule on lead emissions: critics say the change, which leaves out dozens of factories from regular emission checks, undermines efforts to guard children's health” [LAT]

It's Still The Economy: Highly Recommended Reading - “A Risk Worth Taking: Many ethical subprime lenders still manage to make plenty of money” (Daniel Gross) [Newsweek] Gross's article is a good antidote to the disingenuous GOP talking point about subprime problems being a “lower class” issue coupled to the woes of Fannie and Freddie. Meanwhile, poor management in pin-stripes gets another bailout at taxpayer expense: “U.S. approves plan to help Citigroup cope with losses” [NYT] Thus much for saving some of the bailout package for the next administration? Reading “Another crisis, another guarantee” [NYT] could make a person believe that business schools are no longer incorporating “Risk Management” in their curricula. You're doing a heckuva job Hank!

Bush Wars: “Iraqi foes of security deal seek to shield assets” [NYT] “Analysis on the spot: SOFA from inside Parliament” [NYT] “Women killed in Baghdad blast” [AJN] “Iraq's Nouri Maliki may gain power with U.S. security agreement” [LAT] “Top UN team assesses Afghanistan” [BBC] “Pakistan dissolving military spy agency's political wing” [IHT] “Banned firms got new U.S. contracts in Iraq” [USAT] “Costly program with a shady past: BioPort's anthrax vaccination program” [BaltExam]

Is Anyone Paying Attention to what's happening in the Gaza Strip? “Israel allows limited aid into Gaza” UN says Gaza is dangerously short of supplies because of the Israeli blockade. [AJN] “Foreign press in Israel fight Gaza news ban” [IHT]

The Sunday Punch: Republicans man the Maginot Line

Performing philosophical autopsies on the Nevada Republican Party appears to be the topic of the week, with both LV Sun political writers Jon Ralston and J. Patrick Coolican weighing in on the subject. A fund-raising letter from GOP chair Sue Lowden ignited this topic, proposing that the Republicans lost because they strayed from their “conservative principles.” Coolican's analysis, that in 2008 the GOP simply failed to address contemporary issues from a principled perspective, makes some sense. However, since slicing and dicing are in vogue – here are some other suggested slashes:

First, the argument between ideological conservatives and the pragmatists in the Republican Party is a generic political issue that any party must address, or face the consequences. Just as Democrats who clung tenaciously to the Great Society were shackled by a Depression-Era mindset and thus lost relevance by 1980, Republicans who bought into the “Drown Government in the Bathtub” tenets of the Free Marketeers were chained to the logical consequences of deregulation and boosterism culminating in the debacle of 2008. Coolican suggests that the Republicans apply their core beliefs to current issues in an effort to return to relevancy. “But what policy ideas should Republicans look to now? They certainly can’t abandon free-market principles. To do so would be the equivalent of Democrats selling out Social Security. (In 2005, when President Bush tried to privatize it, Democrats blocked him.) No, Republicans must find new ways to apply free-market principles to emerging problems, or reexamine ways those principles can be applied to old problems.” [LV Sun]

This would be a good proposal if those core beliefs were, in themselves, a route to relevancy. The problem with Coolican's analogy is that Social Security is a specific government program and “free-market principles” constitutes a rather more vague philosophical position that runs the gamut from government support of corporate enterprise such as national flood insurance and tax credits to a more generalized belief that companies must live and die on their own balance sheets.

In short, before Republicans can debate the merits of applying so-call free market principles to modern issues, members of the GOP have to decide exactly what “free market” they are talking about. In Phil Gramm or Grover Norquist's free market the government stands by (attending to national defense – or national defense contractors, and foreign policy matters) while the buying, selling, and distribution of goods and services are directed by The Market. This rarefied realm assumes that The Market (whatever that might be) will sort the wheat from the chaff and the good will be rewarded with Earthly riches. However, to listen to some of the representatives of financial and manufacturing components of this Market right now is to hear a very different version of what constitutes a “free market.”

Once the preserve of a hands-off approach to financial monitoring, even hedge funds managers have been willing to call for increased government supervision of financial transactions. Corporate leadership representing the energy giants have made their pilgrimages to Capitol Hill pleading for the continuation of tax breaks for oil and gas exploration and development; their counterparts in the auto industry begged for bridge loans to sustain their operations into the 2010 production year. The federal government, via the Federal Reserve and Treasury Department, has backstopped loans and engineered mergers in efforts to reformulate what passes for financial markets. Most of this “mixed economy” activity has been framed in terms of “preserving capitalism.”

Secondly, should the Republicans finally determine how they are going to define their “free market,” they must still determine how to approach the problems of governance. The exalted GOP saint, Ronald Reagan, sowed the first seed of Republican destruction: Government is the Problem. Even if the Republicans adopt a newly framed philosophy to allow for the adaptation of free market principles to contemporary public issues, they must at some point decide that the government which will be charged with implementing their proposals must be competent to do so. This shift requires, in turn, that they retreat from the catch-all “privatization is the answer to all problems” to a recognition that whatever policy is to be activated it must be supported by an adequately funded and competent bureaucracy.

If privatization is all that is called for, then all that's required in government is a compliant bureaucracy. However, compliance without control is simply cronyism. Unmitigated cronyism equates to corruption. Thus we witnessed the destruction of New Orleans and the pathetic performance of FEMA. We witnessed the excesses of Enron, World Com, and Health South. We witnessed the criminal activities of lobbyists like Jack Abramoff. We witnessed the procurement scandals resulting from Iraqi reconstruction contracts. Republicans were slow to denounce some of these scandals, and slower still to recognize that some were the logical extrapolation of their governing philosophy. The result was evident at the polls in 2006 and 2008. Simply put, you cannot govern if you hate government.

Third, not that the GOP is likely to be listening to a liberal blogger – but, the Republicans need to stop building their version of the Maginot Line. The mantra “Democrats will raise your taxes,” might have been true in 1968, but it's profoundly irrelevant in 2008. President-elect Barack Obama cut that leg off the stool by offering up a tax cut for middle class Americans. All the Republicans had by way of response was prophecy: Ok, he might not be talking about tax increases now...but we just know that somewhere down the road Democrats will raise your taxes. “Soft on Crime” was effective in 1988, when it seemed that every candidate for any federal elective position was running to be county sheriff, but it sounds perfectly stale today. Too many other pieces of the GOP narrative have been debunked for some time now.

“Democrats will cut back on military spending,” emanated from attacks on the Clinton Administration. However, the largest cuts in military spending took place under Bush I. The failure of the Bush II Administration to adequately fund matériel for troops in Iraq punctured this balloon. Bush White House opposition to increased veterans' benefits and increases in pay for members of our Armed Forces completely deflated it. This, and their reliance on "God, Guns, and Gays" as tactical wedge issues meant that the generals in the GOP were literally fighting the last war – they didn't run against Senator Obama, they were running against McGovern, Dukakis, and Gore. They lost in the disconnect.

And, that's today's Sunday Punch.

Ensign, Adelson hit rock bottom: Accuse Kidnap Victim's Father of Being Soft on Child Predators

Living proof that the Republican Party is mired in Campaigns Past, and that Senator John Ensign (R-NV) chair of the NRSC and Sheldon Adelson (CEO-GOP Money Machine) aren't exactly covering themselves with “glory” during the run-off race for the Georgia Senate Seat. TPM Election Central posts two commercials from the Chambliss Campaign, paid for by the NRSC and Freedom's Watch, declaring that Democratic Candidate Jim Martin is “Soft on Crime;” and, against “cracking down on people who abuse and prey on children."

The kicker is that Martin's daughter was abducted when she was 8 years old – fortunately escaping her captor and returning home safely. TPM Election Central asked the NRSC for comment; not surprisingly Ensign's outfit had nothing to say.

Candidate Martin does have a response, and frankly one with more class than either Adelson or Ensign deserves.

Document Dumps and Information Diving

• Jim Gibbons, Nevada's Governor, and perhaps the only human being on this Earth who can perform CPR on an upright female victim, [LV Sun] “...did not have e-mail with that woman.” [LV Sun] Uh, text messaging “yes” (with several), but according to the Governor's staff he did not have e-mail. The Governor claims that his e-mails aren't really public records, and if they are public records they're probably privileged, and we're supposed to take his word on that. Therefore, the continuing Nevada Soap Opera - “Days of His Lies” - twists and churns through the judicial system, [RGJ] as we learn more about his Textual Misconduct.

• Nevada, unfortunately, will be one of the states eligible for the unemployment benefits extension recently enacted by Congress. The unemployment rate in the Silver State climbed to 7.6% in October, the highest point since May 1985. [NV Appeal] The Las Vegas MSA had 7.5% unemployment, Reno-Sparks 7.2%, Carson City 7.4%, and the Elko micro area 4.1%. This time last year Nevada's unemployment rate was 5.1%. [DETR] Nationwide, since October 2007 jobless rates increased in 47 states and the District of Columbia. [BLS]

• Economic policy junkies should be pleased to find that the Federal Reserve has compiled a web page with links to information about recent Federal Reserve actions, including remarks on the effects of the current financial crisis on small business. The Fed also has a “dynamic” map on credit conditions throughout the country. The map shows rates of credit card and mortgage delinquencies by county. Highly recommended.

• The Congressional Budget Office has released its analysis of the housing sector in a publication that offers an optimistic scenario (in which housing starts return to normal by the end of 2009), a cyclical downturn scenario (in which improvement doesn't show up until early 2011, and a pessimistic scenario (in which the improvements don't emerge until the second half of 2012.

• The GAO Reports “Highway Safety Improvement Program: Further Efforts Needed to Address Data Limitations and Better Align Funding with States' Top Safety Priorities.” [Summary]

• The Sunlight Foundation has posted its analysis of the executive actions needed to close the revolving door between Congressional and Lobby Shop offices.

• Common Cause posted its Lessons Learned observations of the 2008 elections, citing improvements in the process but noting that long lines/delays, machine malfunctions, registration issues, and caging attempts still plague the U.S. election system.

• While President Bush was extolling the virutes of “free trade,” [BBC] the Foreign Policy In Focus think tank was pleased to note that the 2008 elections brought more Fair Traders to Washington.

• There's still time to vote in the SourceWatch “Falsies” Contest! Not, “those kinds of falsies,” the award is for “those responsible for polluting our information environment.” Some of the nominees are: the Pentagon Pundit Program, Would You Like Spies With That?, Short of the Mark, Front Groups Go Postal, China Goes For Gold, The Center for Consumer Fiefdom, Coal is Green, Self Deportation, and Chevron v. Goliath. Enjoy! And while you're at it – click on over to Reno and its Discontent's Survey Form.

Coffee and the Papers: Senate Judiciary Committee on vote suppression; other items

Nevada headlines: “Foreclosure kills huge project near mountain – Homes have yet to be built on land by Kyle Canyon purchased for $510 million” [LV Sun] “Why should Nevada care about the automakers?” [LV Sun] “Legislature, governor mum on budget cut discussions” [LV Sun] “State Budget: Gibbons, leaders near deal – Governor, Legislators discuss cuts” [LVRJ] “Clark County: talk turns to layoffs, pay cuts – government, union leaders discuss crisis” [LVRJ] “More Reno area hungry people need help this year” [RGJ] “Housing sales up 47%, but...” [RGJ]

Economic news: “The Citi Conundrum – Too big to fail, the bank has few options” [Portfolio] More at Naked Capitalism. “Citigroup tries to stop the drop in its share price” [NYT] “Goldman slashes GDP forecast” [Calculated Risk] “The ill-considered problem of a GM Bankruptcy” [Naked Capitalism] “Detroit's bid for aid fails – for now” [NYT] “Justice Department probing Golden West Financial” [Forbes]

Agriculture: “Fields of grain and losses” [NYT] “Farmers caught in ethanol shakeout” [BW] “Industrial Animal Agriculture is eating our future” [MrktWtch]

MessO'Potamia: “Iraqi throng protests agreement on U.S. forces” [CNN] “In Baghdad, debating post U.S. outlook” [NYT] “US may begin using warrants in Iraq” [UPI] “Security firms told they lose immunity in Iraq: official” [AFP] “Iraqis want walls torn down” [AJ-E]

Afghanistan/Pakistan: “U.S. strike reportedly killed five in Pakistan” [NYT] “Pakistan army practices shooting drone aircraft” [IHT] “Pakistan protest to U.S. ambassador” [BBC] “Pakistan says NATO Afghan supply lines will stay open” [VOA]

And Justice For All: “NYPD, Justice Department battle over eavesdropping warrants” [Newsday] “Leahy backs Holder” [WaPo] “Justice Department sues Alabama for failure to protect voting rights of overseas citizens” [USDOJ] Voting Rights Report from the Senate Committee on the Judiciary, “The Committee reports favorably on resolutions authorizing the President of the Senate to certify the facts of the failure of Karl Rove and Joshua Bolten to appear and testify before the Committee on the Judiciary and to produce documents as required by Committee subpoena and recommends that the resolutions do pass.” [KCS- pdf]

Bush BLM Issues West Wide Energy Corridors Report

Remember when Nevada Rep. Dean Heller (R-NMA) kept repeating this past year that "He wanted the lights to go on when the switch was flipped?" Heller's mentors in the Bush Administration have just issued a plan in direct opposition to the notion of a sustainable energy policy, with the BLM issuing its plan for the West Wide Energy Corridors project. The following critique sets forth the specific problems with this move as seen from the Wilderness Society's perspective:

"The agencies’ West-Wide Energy Corridors Final Programmatic Environmental Impact Statement outlines a plan for more than 6,000 miles of corridors, encompassing nearly 3 million acres in 11 states, on public lands slated to accommodate high-capacity electric transmission lines and oil and natural gas pipelines.

The final energy corridor plan contains some important improvements for public lands protections— imposing protective management conditions, moving certain objectionable corridors and clarifying that pipelines cannot be sited without environmental review—but crucial commitments to a clean energy future are not made. Iconic places such as New Mexico ’s Sevilleta National Wildlife Refuge, Utah ’s Grand Staircase-Escalante National Monument and Arches National Park , and other protected areas throughout the West stand to be directly impaired by massive oil and natural gas pipelines and electric transmission lines that will slice through them or skirt their borders.

The agencies were required to identify energy corridors on public lands under the 2005 Energy Policy Act. Testimony at a Congressional oversight hearing and comments on the draft plan by hundreds of attendees at public meetings, as well as thousands of written comments, provided a blueprint for smart, environmentally sensitive energy corridors that would support renewable energy. Instead, the agency designated a corridor network which fails to provide adequate protections for public lands and locks in transmission to polluting coal-fired power plants.

“ New Mexico and other Western states are working hard to bring clean, renewable energy online, but the proposed corridors fail to access our best wind and solar resources,” said Joanna Prukop, secretary for the New Mexico Energy, Minerals and Natural Resources Department. “We specifically identified needed corridors to support New Mexico ’s renewable resources. They ignored us.”

Most of the corridors will average 3,500-feet in width (ranging up to five miles) and can accommodate up to nine 500-kV electric transmission lines, 35 massive liquid petroleum pipelines and 29 natural gas pipelines. The agencies are also moving forward with plans to designate energy corridors in the other 38 states and Alaska .

The proposed plan establishes one energy corridor that would cut through Utah ’s Grand Staircase-Escalante National Monument and is only a stone’s throw from the spectacular Paria Canyon-Vermillion Cliffs Wilderness Area. Another massive corridor would come within a few yards of Arches National Park ’s boundary,