konane's Blog

"Georgia congressman warns of Obama dictatorship

Was able to chase down what was on local news last night.

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"Georgia congressman warns of Obama dictatorship
By BEN EVANS – 13 hours ago

Source ap.google.com

"WASHINGTON (AP) — A Republican congressman from Georgia said Monday he fears that President-elect Obama will establish a Gestapo-like security force to impose a Marxist or fascist dictatorship.

"It may sound a bit crazy and off base, but the thing is, he's the one who proposed this national security force," Rep. Paul Broun said of Obama in an interview Monday with The Associated Press. "I'm just trying to bring attention to the fact that we may — may not, I hope not — but we may have a problem with that type of philosophy of radical socialism or Marxism."

Broun cited a July speech by Obama that has circulated on the Internet in which the then-Democratic presidential candidate called for a civilian force to take some of the national security burden off the military.

"That's exactly what Hitler did in Nazi Germany and it's exactly what the Soviet Union did," Broun said. "When he's proposing to have a national security force that's answering to him, that is as strong as the U.S. military, he's showing me signs of being Marxist."

Obama's comments about a national security force came during a speech in Colorado about building a new civil service corps. Among other things, he called for expanding the nation's foreign service and doubling the size of the Peace Corps "to renew our diplomacy."

"We cannot continue to rely only on our military in order to achieve the national security objectives that we've set," Obama said in July. "We've got to have a civilian national security force that's just as powerful, just as strong, just as well-funded."

Broun said he also believes Obama likely will move to ban gun ownership if he does build a national police force.

Obama has said he respects the Second Amendment right to bear arms and favors "common sense" gun laws. Gun rights advocates interpret that as meaning he'll at least enact curbs on ownership of assault weapons and concealed weapons. As an Illinois state lawmaker, Obama supported a ban on semiautomatic weapons and tighter restrictions on firearms generally.

"We can't be lulled into complacency," Broun said. "You have to remember that Adolf Hitler was elected in a democratic Germany. I'm not comparing him to Adolf Hitler. What I'm saying is there is the potential."

Obama's transition office did not respond immediately to Broun's remarks. "

http://ap.google.com/article/ALeqM5iRxZox4GFoIweckPDP1oRhKBlHOwD94CCDU00

Entry #976

"Fed Defies Transparency Aim in Refusal to Disclose

"Fed Defies Transparency Aim in Refusal to Disclose (Update1)

By Mark Pittman, Bob Ivry and Alison Fitzgerald

"Nov. 10 (Bloomberg) -- The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.

Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn't require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return.

`The collateral is not being adequately disclosed, and that's a big problem,'' said Dan Fuss, vice chairman of Boston- based Loomis Sayles & Co., where he co-manages $17 billion in bonds. ``In a liquid market, this wouldn't matter, but we're not. The market is very nervous and very thin.''

Bloomberg News has requested details of the Fed lending under the U.S. Freedom of Information Act and filed a federal lawsuit Nov. 7 seeking to force disclosure.

The Fed made the loans under terms of 11 programs, eight of them created in the past 15 months, in the midst of the biggest financial crisis since the Great Depression.

``It's your money; it's not the Fed's money,'' said billionaire Ted Forstmann, senior partner of Forstmann Little & Co. in New York. ``Of course there should be transparency.''

Federal Reserve spokeswoman Michelle Smith declined to comment on the loans or the Bloomberg lawsuit. Treasury spokeswoman Michele Davis didn't respond to a phone call and an e-mail seeking comment.  "

http://www.bloomberg.com/apps/news?pid=20601087&sid=aatlky_cH.tY&refer=worldwide

Entry #975

"What price popularity?

"What price popularity?

Posted by Paul at 10:16 PM

Source Powerlineblog.com 

 

"Other than the racial angle, the thing that has Barack Obama's supporters most excited is the prospect that, thanks to ascension, America will once more be liked and respected around the world. Those aroused by this prospect can be divided into two categories. The first are the folks who believe, with the naivety only a certain type of liberal can possess, that a gesture (the election of Obama) can transform, lastingly and without cost, the way the world views us. These people are fools.

The second category are those who believe that Obama will take substantive positions that please foreigners and that, in particular, he will back measures that limit U.S. sovereignty. These people are on to something.

In the November 17 issue of the National Review (not available online to my knowledge), John Fonte of the Hudson Institute identifies four "transnational power grabs" that Obama is likely to push for They are: the Law of the Sea Treaty, the Rights of the Child Treaty, the Convention for the Elimination of All Forms of Discrimination against Women (CEDAW), and the International Criminal Court. Agreement by the U.S. to these arrangements would make us more popular with foreigners, but only at a cost to our national security, our right of self-governance, and our rights under the Constitution.

As Fonte explains, the Law of the Sea Treaty could result in maritime disputes involving U.S. defense forces being arbitrated by an international panel composed of 21 judges, some of whom would be chosen by the likes of China, Russia, and Cuba. The Rights of the Child Treaty would require uniform penal codes for minors in all 50 states. It would abolish the death penalty and life imprisonment for everyone under the age of 18. And it would limit parental rights, for example by granting children the legal right to correspond with anyone, anywhere, without interference from their parents.

According to Fonte, CEDAW would likely result in the imposition of gender-based preferences in multiple spheres, including elective offices. He says the U.N. committee that monitors compliance with CEDAW has called on the Republic of Georgia to return to its Communist-era policy of gender quotas in public offices. Britain has be told to adopt the "comparable worth" standard of "equal pay" under which bureaucrats set pay rates. Fonte also warns that CEDAW would provide a method for "overturning a vast array of federal and state laws that [feminists] do not have the votes to defeat through democratic means."

The ICC, according to Obama foreign-policy advisor Sarah Sewall, "represents an acid test for America's commitment to international and universal concepts of justice and human rights." The problem is that under the ICC American soldiers could be charged with war crimes and tried by a court comprised of judges whose interests and values are foreign to our own. Thus, the ICC is indeed an acid test. . .of our commitment to national sovereignty and self-governance.

Fonte points to a Harris poll taken for the Bradley Foundation in which by a margin of 63 percent to 16 percent, Americans said they see the U.S. Constitution, not international law, as the highest legal authority for Americans. 83 percent think of themselves as U.S. citizens, rather than citizens of the world.

To Obama, these views may signify a bitter population clinging to archaic concepts. But they also signify a challenge. To achieve what I take to be his transnationalist agenda, and to ensure our popularity among foreigners, Obama will have to risk some of his popularity among Americans. "

http://www.powerlineblog.com/archives/2008/11/022036.php

Entry #973

"CLOWARD-PIVEN STRATEGY" of Orchestrated Crisis

From one of the very best researched sites on the web, Discoverthenetworks.org.

 

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 "CLOWARD-PIVEN STRATEGY

  • Strategy for forcing political change through orchestrated crisis



First proposed in 1966 and named after Columbia University sociologists Richard Andrew Cloward and Frances Fox Piven, the “Cloward-Piven Strategy” seeks to hasten the fall of capitalism by overloading the government bureaucracy with a flood of impossible demands, thus pushing society into crisis and economic collapse.

Inspired by the August 1965 riots in the black district of Watts in Los Angeles (which erupted after police had used batons to subdue a black man suspected of drunk driving), Cloward and Piven published an article titled "The Weight of the Poor: A Strategy to End Poverty" in the May 2, 1966 issue of The Nation. Following its publication, The Nation sold an unprecedented 30,000 reprints. Activists were abuzz over the so-called "crisis strategy" or "Cloward-Piven Strategy," as it came to be called. Many were eager to put it into effect.

In their 1966 article, Cloward and Piven charged that the ruling classes used welfare to weaken the poor; that by providing a social safety net, the rich doused the fires of rebellion. Poor people can advance only when "the rest of society is afraid of them," Cloward told The New York Times on September 27, 1970. Rather than placating the poor with government hand-outs, wrote Cloward and Piven, activists should work to sabotage and destroy the welfare system; the collapse of the welfare state would ignite a political and financial crisis that would rock the nation; poor people would rise in revolt; only then would "the rest of society" accept their demands.

The key to sparking this rebellion would be to expose the inadequacy of the welfare state. Cloward-Piven's early promoters cited radical organizer Saul Alinsky as their inspiration. "Make the enemy live up to their (sic) own book of rules," Alinsky wrote in his 1972 book Rules for Radicals. When pressed to honor every word of every law and statute, every Judaeo-Christian moral tenet, and every implicit promise of the liberal social contract, human agencies inevitably fall short. The system's failure to "live up" to its rule book can then be used to discredit it altogether, and to replace the capitalist "rule book" with a socialist one.

The authors noted that the number of Americans subsisting on welfare -- about 8 million, at the time -- probably represented less than half the number who were technically eligible for full benefits. They proposed a "massive drive to recruit the poor onto the welfare rolls."  Cloward and Piven calculated that persuading even a fraction of potential welfare recipients to demand their entitlements would bankrupt the system. The result, they predicted, would be "a profound financial and political crisis" that would unleash "powerful forces … for major economic reform at the national level."

Their article called for "cadres of aggressive organizers" to use "demonstrations to create a climate of militancy." Intimidated by threats of black violence, politicians would appeal to the federal government for help. Carefully orchestrated media campaigns, carried out by friendly, leftwing journalists, would float the idea of "a federal program of income redistribution," in the form of a guaranteed living income for all -- working and non-working people alike. Local officials would clutch at this idea like drowning men to a lifeline. They would apply pressure on Washington to implement it. With every major city erupting into chaos, Washington would have to act. This was an example of what are commonly called Trojan Horse movements -- mass movements whose outward purpose seems to be providing material help to the downtrodden, but whose real objective is to draft poor people into service as revolutionary foot soldiers; to mobilize poor people en masse to overwhelm government agencies with a flood of demands beyond the capacity of those agencies to meet. The flood of demands was calculated to break the budget, jam the bureaucratic gears into gridlock, and bring the system crashing down. Fear, turmoil, violence and economic collapse would accompany such a breakdown -- providing perfect conditions for fostering radical change. That was the theory.

Cloward and Piven recruited a militant black organizer named George Wiley to lead their new movement. In the summer of 1967, Wiley founded the National Welfare Rights Organization (NWRO). His tactics closely followed the recommendations set out in Cloward and Piven's article. His followers invaded welfare offices across the United States -- often violently -- bullying social workers and loudly demanding every penny to which the law "entitled" them. By 1969, NWRO claimed a dues-paying membership of 22,500 families, with 523 chapters across the nation.

Regarding Wiley's tactics, The New York Times commented on September 27, 1970, "There have been sit-ins in legislative chambers, including a United States Senate committee hearing, mass demonstrations of several thousand welfare recipients, school boycotts, picket lines, mounted police, tear gas, arrests - and, on occasion, rock-throwing, smashed glass doors, overturned desks, scattered papers and ripped-out phones."These methods proved effective. "The flooding succeeded beyond Wiley's wildest dreams," writes Sol Stern in the City Journal.  "From 1965 to 1974, the number of single-parent households on welfare soared from 4.3 million to 10.8 million, despite mostly flush economic times. By the early 1970s, one person was on the welfare rolls in New York City for every two working in the city's private economy."As a direct result of its massive welfare spending, New York City was forced to declare bankruptcy in 1975. The entire state of New York nearly went down with it. The Cloward-Piven strategy had proved its effectiveness.

The Cloward-Piven strategy depended on surprise. Once society recovered from the initial shock, the backlash began. New York's welfare crisis horrified America, giving rise to a reform movement which culminated in "the end of welfare as we know it" -- the 1996 Personal Responsibility and Work Opportunity Reconciliation Act, which imposed time limits on federal welfare, along with strict eligibility and work requirements. Both Cloward and Piven attended the White House signing of the bill as guests of President Clinton.

Most Americans to this day have never heard of Cloward and Piven. But New York City Mayor Rudolph Giuliani attempted to expose them in the late 1990s. As his drive for welfare reform gained momentum, Giuliani accused the militant scholars by name, citing their 1966 manifesto as evidence that they had engaged in deliberate economic sabotage. "This wasn't an accident," Giuliani charged in a 1997 speech. "It wasn't an atmospheric thing, it wasn't supernatural. This is the result of policies and programs designed to have the maximum number of people get on welfare."

Cloward and Piven never again revealed their intentions as candidly as they had in their 1966 article. Even so, their activism in subsequent years continued to rely on the tactic of overloading the system. When the public caught on to their welfare scheme, Cloward and Piven simply moved on, applying pressure to other sectors of the bureaucracy, wherever they detected weakness.

In 1982, partisans of the Cloward-Piven strategy founded a new "voting rights movement," which purported to take up the unfinished work of the Voting Rights Act of 1965. Like ACORN, the organization that spear-headed this campaign, the new "voting rights" movement was led by veterans of George Wiley's welfare rights crusade. Its flagship organizations were Project Vote and Human SERVE, both founded in 1982. Project Vote is an ACORN front group, launched by former NWRO organizer and ACORN co-founder Zach Polett. Human SERVE was founded by Richard A. Cloward and Frances Fox Piven, along with a former NWRO organizer named Hulbert James.

All three of these organizations -- ACORN, Project Vote and Human SERVE -- set to work lobbying energetically for the so-called Motor-Voter law, which Bill Clinton ultimately signed in 1993. The Motor-Voter bill is largely responsible for swamping the voter rolls with "dead  wood" -- invalid registrations signed in the name of deceased, ineligible or non-existent people -- thus opening the door to the unprecedented  levels of voter fraud and "voter disenfranchisement" claims that followed in subsequent elections.

The new "voting rights" coalition combines mass voter registration drives -- typically featuring high levels of fraud -- with systematic intimidation of election officials in the form of frivolous lawsuits, unfounded charges of "racism" and "disenfranchisement," and "direct action" (street protests, violent or otherwise). Just as they swamped America's welfare offices in the 1960s, Cloward-Piven devotees now seek to overwhelm the nation's understaffed and poorly policed electoral system. Their tactics set the stage for the Florida recount crisis of 2000, and have introduced a level of fear, tension and foreboding to U.S. elections heretofore encountered mainly in Third World countries. 

Both the Living Wage and Voting Rights movements depend heavily on financial support from George Soros's Open Society Institute and his "Shadow Party," through whose support the Cloward-Piven strategy continues to provide a blueprint for some of the Left's most ambitious campaigns. "

 



http://www.discoverthenetworks.org/groupProfile.asp?grpid=6967
Entry #971

"Dems Target Private Retirement Accounts


"Dems Target Private Retirement Accounts
Democratic leaders in the U.S. House discuss confiscating 401(k)s, IRAs

By Karen McMahan
November 04, 2008

"RALEIGH — Democrats in the U.S. House have been conducting hearings on proposals to confiscate workers’ personal retirement accounts — including 401(k)s and IRAs — and convert them to accounts managed by the Social Security Administration.

Triggered by the financial crisis the past two months, the hearings reportedly were meant to stem losses incurred by many workers and retirees whose 401(k) and IRA balances have been shrinking rapidly.

The testimony of Teresa Ghilarducci, professor of economic policy analysis at the New School for Social Research in New York, in hearings Oct. 7 drew the most attention and criticism. Testifying for the House Committee on Education and Labor, Ghilarducci proposed that the government eliminate tax breaks for 401(k) and similar retirement accounts, such as IRAs, and confiscate workers’ retirement plan accounts and convert them to universal Guaranteed Retirement Accounts (GRAs) managed by the Social Security Administration.

Rep. George Miller, D-Calif., chairman of the House Committee on Education and Labor, in prepared remarks for the hearing on “The Impact of the Financial Crisis on Workers’ Retirement Security,” blamed Wall Street for the financial crisis and said his committee will “strengthen and protect Americans’ 401(k)s, pensions, and other retirement plans” and the “Democratic Congress will continue to conduct this much-needed oversight on behalf of the American people.”

Currently, 401(k) plans allow Americans to invest pretax money and their employers match up to a defined percentage, which not only increases workers’ retirement savings but also reduces their annual income tax. The balances are fully inheritable, subject to income tax, meaning workers pass on their wealth to their heirs, unlike Social Security. Even when they leave an employer and go to one that doesn’t offer a 401(k) or pension, workers can transfer their balances to a qualified IRA.

Mandating Equality

Ghilarducci’s plan first appeared in a paper for the Economic Policy Institute: Agenda for Shared Prosperity on Nov. 20, 2007, in which she said GRAs will rescue the flawed American retirement income system (www.sharedprosperity.org/bp204/bp204.pdf).

The current retirement system, Ghilarducci said, “exacerbates income and wealth inequalities” because tax breaks for voluntary retirement accounts are “skewed to the wealthy because it is easier for them to save, and because they receive bigger tax breaks when they do.”

Lauding GRAs as a way to effectively increase retirement savings, Ghilarducci wrote that savings incentives are unequal for rich and poor families because tax deferrals “provide a much larger ‘carrot’ to wealthy families than to middle-class families — and none whatsoever for families too poor to owe taxes.”

GRAs would guarantee a fixed 3 percent annual rate of return, although later in her article Ghilarducci explained that participants would not “earn a 3% real return in perpetuity.” In place of tax breaks workers now receive for contributions and thus a lower tax rate, workers would receive $600 annually from the government, inflation-adjusted. For low-income workers whose annual contributions are less than $600, the government would deposit whatever amount it would take to equal the minimum $600 for all participants.

In a radio interview with Kirby Wilbur in Seattle on Oct. 27, 2008, Ghilarducci explained that her proposal doesn’t eliminate the tax breaks, rather, “I’m just rearranging the tax breaks that are available now for 401(k)s and spreading — spreading the wealth.”

All workers would have 5 percent of their annual pay deducted from their paychecks and deposited to the GRA. They would still be paying Social Security and Medicare taxes, as would the employers. The GRA contribution would be shared equally by the worker and the employee. Employers no longer would be able to write off their contributions. Any capital gains would be taxable year-on-year.

Analysts point to another disturbing part of the plan. With a GRA, workers could bequeath only half of their account balances to their heirs, unlike full balances from existing 401(k) and IRA accounts. For workers who die after retiring, they could bequeath just their own contributions plus the interest but minus any benefits received and minus the employer contributions.

Another justification for Ghilarducci’s plan is to eliminate investment risk. In her testimony, Ghilarducci said, “humans often lack the foresight, discipline, and investing skills required to sustain a savings plan.” She cited the 2004 HSBC global survey on the Future of Retirement, in which she claimed that “a third of Americans wanted the government to force them to save more for retirement.”

What the survey actually reported was that 33 percent of Americans wanted the government to “enforce additional private savings,” a vastly different meaning than mandatory government-run savings. Of the four potential sources of retirement support, which were government, employer, family, and self, the majority of Americans said “self” was the most important contributor, followed by “government.” When broken out by family income, low-income U.S. households said the “government” was the most important retirement support, whereas high-income families ranked “government” last and “self” first (www.hsbc.com/retirement).

On Oct. 22, The Wall Street Journal reported that the Argentinean government had seized all private pension and retirement accounts to fund government programs and to address a ballooning deficit. Fearing an economic collapse, foreign investors quickly pulled out, forcing the Argentinean stock market to shut down several times. More than 10 years ago, nationalization of private savings sent Argentina’s economy into a long-term downward spiral.

Income and Wealth Redistribution

The majority of witness testimony during recent hearings before the House Committee on Education and Labor showed that congressional Democrats intend to address income and wealth inequality through redistribution.

On July 31, 2008, Robert Greenstein, executive director of the Center on Budget and Policy Priorities, testified before the subcommittee on workforce protections that “from the standpoint of equal treatment of people with different incomes, there is a fundamental flaw” in tax code incentives because they are “provided in the form of deductions, exemptions, and exclusions rather than in the form of refundable tax credits.”

Even people who don’t pay taxes should get money from the government, paid for by higher-income Americans, he said. “There is no obvious reason why lower-income taxpayers or people who do not file income taxes should get smaller incentives (or no tax incentives at all),” Greenstein said.

“Moving to refundable tax credits for promoting socially worthwhile activities would be an important step toward enhancing progressivity in the tax code in a way that would improve economic efficiency and performance at the same time,” Greenstein said, and “reducing barriers to labor organizing, preserving the real value of the minimum wage, and the other workforce security concerns . . . would contribute to an economy with less glaring and sharply widening inequality.”

When asked whether committee members seriously were considering Ghilarducci’s proposal for GSAs, Aaron Albright, press secretary for the Committee on Education and Labor, said Miller and other members were listening to all ideas.

Miller’s biggest priority has been on legislation aimed at greater transparency in 401(k)s and other retirement plan administration, specifically regarding fees, Albright said, and he sent a link to a Fox News interview of Miller on Oct. 24, 2008, to show that the congressman had not made a decision.

After repeated questions asked by Neil Cavuto of Fox News, Miller said he would not be in favor of “killing the 401(k)” or of “killing the tax advantages for 401(k)s.”

Arguing against liberal prescriptions, William Beach, director of the Center for Data Analysis at the Heritage Foundation, testified on Oct. 24 that the “roots of the current crisis are firmly planted in public policy mistakes” by the Federal Reserve and Congress. He cautioned Congress against raising taxes, increasing burdensome regulations, or withdrawing from international product or capital markets. “Congress can ill afford to repeat the awesome errors of its predecessor in the early days of the Great Depression,” Beach said.

Instead, Beach said, Congress could best address the financial crisis by making the tax reductions of 2001 and 2003 permanent, stopping dependence on demand-side stimulus, lowering the corporate profits tax, and reducing or eliminating taxes on capital gains and dividends.

Testifying before the same committee in early October, Jerry Bramlett, president and CEO of BenefitStreet, Inc., an independent 401(k) plan administrator, said one of the best ways to ensure retirement security would be to have the U.S. Department of Labor develop educational materials for workers so they could make better investment decisions, not exchange equity investments in retirement accounts for Treasury bills, as proposed in the GSAs.

Should Sen. Barack Obama win the presidency, congressional Democrats might have stronger support for their “spreading the wealth” agenda. On Oct. 27, the American Thinker posted a video of an interview with Obama on public radio station WBEZ-FM from 2001.

In the interview, Obama said, “The Supreme Court never ventured into the issues of redistribution of wealth, and of more basic issues such as political and economic justice in society.” The Constitution says only what “the states can’t do to you. Says what the Federal government can’t do to you,” and Obama added that the Warren Court wasn’t that radical.

Although in 2001 Obama said he was not “optimistic about bringing major redistributive change through the courts,” as president, he would likely have the opportunity to appoint one or more Supreme Court justices.

“The real tragedy of the civil rights movement was, um, because the civil rights movement became so court focused that I think there was a tendency to lose track of the political and community organizing and activities on the ground that are able to put together the actual coalition of powers through which you bring about redistributive change,” Obama said.

Karen McMahan is a contributing editor of Carolina Journal."

http://www.carolinajournal.com/articles/display_story.html?id=5081

Entry #970

"Treasury submits to Shariah

"GAFFNEY: Treasury submits to Shariah

Tuesday, November 4, 2008 

Source The Washington Times

COMMENTARY:

"The U.S. Treasury Department is submitting to Shariah - the seditious religio-political-legal code authoritative Islam seeks to impose worldwide under a global theocracy.

As reported in this space last week, Deputy Secretary of the Treasury Robert Kimmitt set the stage with his recent visit to Saudi Arabia and other oil-rich Persian Gulf states. His stated purpose was to promote the recycling of petrodollars in the form of foreign investment here.

Evidently, the price demanded by his hosts is that the U.S. government get with the Islamist financial program. While in Riyadh, Mr. Kimmitt announced: "The U.S. government is currently studying the salient features of Islamic banking to ascertain how far it could be useful in fighting the ongoing world economic crisis."

"Islamic banking" is a euphemism for a practice better known as "Shariah-Compliant Finance (SFC)." And it turns out that this week the Treasury will be taking officials from various federal agencies literally to school on SFC.

The department is hosting a half-day course entitled "Islamic Finance 101" on Thursday at its headquarters building. Treasury's self-described "seminar for the policy community" is co-sponsored with the leading academic promoters of Shariah and SCF in the United States: Harvard University Law School's Project on Islamic Finance. At the very least, the U.S. government evidently hopes to emulate Harvard's success in securing immense amounts of Wahhabi money in exchange for conforming to the Islamists' agenda. Like Harvard, Treasury seems utterly disinterested in what Shariah actually is, and portends.

Unfortunately, such submission - the literal meaning of "Islam" - is not likely to remain confined long to the Treasury or its sister agencies. Thanks to the extraordinary authority conferred on Treasury since September, backed by the $700 billion Troubled Asset Relief Program (TARP), the department is now in a position to impose its embrace of Shariah on the U.S. financial sector. The nationalization of Fannie Mae and Freddie Mac, Treasury's purchase of - at last count - 17 banks and the ability to provide, or withhold, funds from its new slush-fund can translate into unprecedented coercive power.

Concerns in this regard are only heightened by the prominent role Assistant Treasury Secretary Neel Kashkari will be playing in "Islamic Finance 101." Mr. Kashkari, the official charged with administering the TARP fund, will provide welcoming remarks to participants. Presumably, in the process, he will convey the enthusiasm about Shariah-Compliant Finance that appears to be the current party line at Treasury.

As this enthusiasm for SCF ramps up in Washington officialdom, it is worth recalling a lesson from "across the pond." Earlier this year, the head of the Church of England, Archbishop of Canterbury Rowan Williams, provoked a brief but intense firestorm of controversy with his declaration that it was "unavoidable" that Shariah would be practiced in Britain. Largely unremarked was the reason he gave for such an ominous forecast: The U.K. had already accommodated itself to Shariah-Compliant Finance.

This statement provides an important insight for the incumbent U.S. administration and whomever succeeds it: Shariah-Compliant Finance serves as a leading edge of the spear for those seeking to insinuate Shariah into Western societies.

Regrettably, SCF is not the only instrument of the stealth jihad by which Shariah-promoting Islamists are seeking to achieve "parallel societies" here and elsewhere in the West. The British experience is instructive on this score, too. Her Majesty's government has allowed the establishment of at least five Shariah courts to hear (initially) family law cases. Polygamists in the U.K. can get welfare for each of their wives (as long as all the marriages beyond the first were performed overseas).

Thus far, we in this country may not have reached the point where evidence of this sort of creeping Shariah is so manifest. But Treasury's accommodation to SCF demonstrates that we are on the same trajectory - the one ordained and demanded by the promoters of Shariah, one to which we serially accommodate ourselves at our extreme peril.

After all, the object of Shariah is the supplanting of our government and Constitution, through violent means if possible and, until then, through stealthy ones. Islamists, having secured footholds via their parallel societies, inevitably use those to extend their influence over Muslims who have no more interest in living under authoritative Islam's Shariah than the rest of us do. Inexorably, it becomes the turn of non-Muslims to accommodate themselves to ever more intrusive demands from the Islamists. It is known as submission, or dhimmitude.

Soon - possibly as early as this Wednesday - the Treasury Department and the other federal agencies will be taking orders from representatives of Barack Obama or John McCain. It may be that the outgoing administration's determination to advance the Islamist agenda via "Islamic Finance 101," and what flows from it, may be the first, far-reaching policy decision inherited by the new president-elect. If he does not want to have his transition saddled with an implicit endorsement of submission to Shariah, the winner of the White House sweepstakes would be well-advised to pull the plug on Thursday's indoctrination program and the insidious industry it is meant to foist on the "policy community," our capital markets and our country. "

Frank J. Gaffney, Jr. is president of the Center for Security Policy and a columnist for The Washington Times. "
http://www.washingtontimes.com/news/2008/nov/04/treasury-submits-to-shariah/

Entry #969

A short trip in the way-back machine

I mentioned documents proven forged in Rather-gate in TigerAngel's blog entry here.   

"Supreme Court to Obama: Prove It"
https://www.lotterypost.com/blogcomments.asp?i=25429

Have sifted through archives showing events and major players who exposed a smear campaign based on obvious forgeries and why they were forged.   

Proportional spacing is the first clue, spotted by Atlanta attorney Harry MacDougald whose screen name was "Buckhead."

Quotes are directly lifted, links provided for verification.

Some embedded links are no longer valid.

____________

"Hurricane Dan: Get serious

September 12, 2004 Posted by Scott at 8:22 AM

Source Powerlineblog.com

"Los Angeles Times reporter Peter Wallsten meticulously reconstructs the events of this past Thursday following the CBS 60 Minutes broadcast Wednesday evening that have led to the exposure of the "new" documents featured in the Air National Guard story as forgeries: "No disputing it: Blogs are major players." Wallsten prominently credits our role in the development of the story:

Early Thursday morning, Minneapolis lawyer Scott Johnson was in his basement home office, preparing to link some morning news reports to the site he co-authors, when a reader sent an e-mail about Buckhead.

Intrigued, Johnson, whose online ID is "The Big Trunk," put a link on his site, PowerLine Blog.com, to Buckhead's post.

Then the floodgates opened.

"Thanks to all the readers who have written regarding this post," Johnson wrote in an early update. "Several have pointed out that the Executive line of IBM typewriters did have proportionally spaced fonts, although no reader has found the font used in the memos to be a familiar one or thought that the IBM Executive was likely to have been used by the National Guard in the early 1970s.

"Reader Monty Walls has also cited the IBM Selectric Composer," he continued. "However, reader Eric Courtney adds this wrinkle: The 'Memo To File' of August 18, 1973, also used specialized typesetting characters not used on typewriters. These include the superscript 'th' in 187th, and consistent ' (right single quote) all parentheses in original used instead of a typewriter's generic {minute} (apostrophe). These are the sorts of things that typesetters did manually until the advent of smart correction in things like Microsoft Word."

Soon Charles Johnson, a Los Angeles musician-turned-conservative-blogger who hosts the site LittleGreenFootballs.com, posted the results of his own investigation. He wrote that he had opened Microsoft Word, set the font to Times New Roman and used the program's default settings to retype a purported Killian memo from August 1973.

"My Microsoft Word version, typed in 2004, is an exact match for the documents trumpeted by CBS News as 'authentic,' " Johnson wrote, posting images of his creation and the CBS document. (The Times New Roman font itself predates computers; it was designed in 1932.)

Within 90 minutes of that post, the Power Line site was linked to perhaps the best-known conservative site of all ? the Drudge Report, made famous when Matt Drudge took a lead role in the first reports on the relationship between then-President Clinton and Monica Lewinsky.

"That was a quantum jump in awareness," said Scott Johnson. "It was wildly circulating in the blogosphere until Drudge linked us. Then it was instantly known to a million people, and it was all of a sudden a legitimate story."

Suddenly, the story line shifted from the question Democrats had been trying to ask ? whether Bush received special treatment in the Guard ? to whether a network long detested by conservatives had been duped in its quest to air a report critical of the president in the midst of the reelection campaign.

Wallsten's article does not raise any question that we might have erred in doubting the authenticity of the documents or offer any support for their authenticity. Rather, it gives voice to desperate Democratic operatives imputing right-wing lunacy or conspiratorial machinations to those raising the issues:

"It was amazing Thursday to watch the documents story go from FreeRepublic.com, a bastion of right-wing lunacy, to Drudge to the mainstream media in less than 12 hours," said Jim Jordan, a strategist for independent Democratic groups opposed to Bush. [Ed. note: C'mon Peter, he's Kerry's former campaign manager.]

"That's not to say the documents didn't deserve examination. But apparently the entire thing was cooked up by a couple of amateurs on Free Republic. The speed with which it moved was breathtaking."

Wallsten then notes that "Rather opened his evening news broadcast Friday with a defense of his report, producing an analyst who vouched for the memos." Wallsten omits to mention that the analyst was a purported handwriting expert who could not authenticate the documents. Wallsten quotes a professor articulating the dark fears of the MSM:

Media experts said the role of the bloggers illustrated a significant development in the relationship between mainstream news and the still-nascent phenomenon of blogging.

This was the first time, some said, that the Web logs were engaging in their own form of investigative journalism ? and readers, they warned, should be cautious.

"The mainstream press is having to follow them," said Jeffrey Seglin, a professor at Emerson College in Boston. [Ed. note: C'mon, Peter, Seglin is a columnist for the New York Times Syndiicate, whose owner is the same company that owns the Boston Globe -- which has avidly promoted the 60 Minutes story. (Thanks to Hobbs Online.)] "The fear I have is: How do you know who's doing the Web logs?

"And what happens when this stuff gets into the mainstream, and it eventually turns out that the '60 Minutes' documents were perfectly legitimate, but because there's been so much reporting about what's being reported, it has already taken on a life of its own?"

Put to one side the fact that we have been doing our own brand of investigative journalism since we started this site over Memorial Day weekend in 2002 (and for the previous ten years in newspapers and magazines). In our case, Professor Seglin might "know who's doing the Web logs" by clicking on the "About Us" logos over on our left margin, or giving us a call, as Peter Wallsten did. The same applies to Charles Johnson of Little Green Footballs.

Seglin appears not to be familiar with the Internet or the development of the evidence throughout the blogosphere relating to the 60 Minutes documents. We acted as a clearinghouse for information, freely quoting correspondents and linking to sources. We named names and identified sources. We included evidence that might tell against the points we raised; when a correspondent wrote to point out that the White House had itself released copies of the 60 Minutes documents, we posted that. It turned out that the documents released by the White House had been provided to it by 60 Minutes.

We awaited some word from CBS that would allow us to verify the authenticity of the documents. When Dan Rather offered his pathetic apologia Friday night, we noted his report and discussed its almost unbelievable weakness in the face of the issues raised.

Contrast the behavior of the blogosphere with that of CBS. While we have disclosed sources and responded to all inquiries from reporters like Wallsten, CBS has taken its plays from the old Watergate playbook. Stonewalling and misdirection are the order of the day. To the extent that CBS has cited sources, they have not supported the authenticity of the documents. All in all, CBS has behaved like a criminal caught redhanded in a fraud of monumental proportions.

Wallsten concludes the story by quoting a Free Republic commenter who facetiously asks, in the spirit of the Democratic operatives, "How do we know Buckhead is not really Karl Rove?" But the story Wallsten tells raises a serious question that belies Wallsten's conclusion and that Wallsten declines to entertain.

It is time to draw the obvious inferences from CBS's behavior and from the circumstances of the case. The 60 Minutes documents purportedly derive from the "personal file" of a long-deceased superior officer of President Bush. The family of the deceased officer denies that they are the source of the documents or that the officer would have written them.

CBS refuses to identify the source of the documents or otherwise to disclose how they came into its possession. The reporter who vouches for the authenticity of the documents is himself no expert, but a long-time antagonist of conservatives in general and the Bushes in particular, with close ties to Texas Democrats. The documents discredit President Bush consistent with a key Democratic theme in the midst of a presidential campaign.

Substantial evidence of the fraudulent nature of the documents is produced. The reporter demands that we take his word for the authenticity of the documents. CBS fails to identify a single document analyst who supports the authenticity of the documents. CBS fails to produce a single authentic document with an appearance like the documents in issue.

CBS refuses to disclose the copies of the documents for independent examination by a neutral third party. Evidence of the fraudulent nature of the documents continues to mount. See, for example, this morning's Washington Times story, "Bush Guard papers 'forged,'" and this morning's New York Times story, "An ex-officer now believes Guard memo isn't genuine."

Drawing the reasonable inferences implicit in these circumstances, the serious question that must be asked at this point is what happens when a media monolith acts as a front for Democratic operatives peddling forgeries calculated to smear a Republican president and presidential candidate?

UPDATE: Click here for a brilliant recap (and more) by Hugh Hewitt.

UPDATE 2: Just One Minute and Ace of Spades offer further thoughts on the possible source of the documents (not a Democratic operative). See also Ace's screaming update. (Courtesy of Instapundit.)

http://www.powerlineblog.com/archives/2004/09/007746.php

_______

"Meet Buckhead

September 17, 2004 Posted by Scott at 6:25 PM

Source Powerlineblog.com 

"Peter Wallsten follows up his September 12 reconstruction of the genesis of Hurricane Dan with an article on his discovery of Buckhead's identity, Atlanta attorney Harry MacDougald: "Blogger who faulted CBS documents is conservative activist." Liz MacDougald wrote us Thursday morning to make sure we knew that the email we had been sent by a reader whom we named actually reflected points Buckhead had raised in Free Republic post no. 47 and we revised our initial post consistent with the information provided by Mrs. (I assume) MacDougald.

Courtesy of Hugh Hewitt. And please check out Ernest Miller's "Incompetent or Unethical? The story of CBS News' response to Killian memos" over at Corante -- with thanks for redirecting traffic from my originally mistaken link.

UPDATE: Don't miss Charles Johnson's expert commentary: "LA Times slimes Buckhead, bloggers."  "

http://www.powerlineblog.com/archives/2004/09/007809.php

______________

Assume all posts below enclosed in quotes taken directly from archives.


"Documents Suggest Special Treatment for Bush in Guard [post 47]

 
 

"Howlin, every single one of these memos to file is in a proportionally spaced font, probably Palatino or Times New Roman.

In 1972 people used typewriters for this sort of thing, and typewriters used monospaced fonts.

The use of proportionally spaced fonts did not come into common use for office memos until the introduction of laser printers, word processing software, and personal computers. They were not widespread until the mid to late 90's. Before then, you needed typesetting equipment, and that wasn't used for personal memos to file. Even the Wang systems that were dominant in the mid 80's used monospaced fonts.

I am saying these documents are forgeries, run through a copier for 15 generations to make them look old.

This should be pursued aggressively."

47 posted on Wednesday, September 08, 2004 11:59:43 PM by Buckhead

http://www.freerepublic.com/focus/f-news/1210662/posts#49

 
"I think you are mistaken. There is ample research on this point at the thread referenced just above. The Selectric used monospaced fonts, but could vary between 10 and 12 cpi, which was referred to as "pitch." To get proportionally spaced fonts you had to get an IBM Selectric Composer, and it was a very expensive machine for typesetting to get documents camera ready. You had to type each line twice and fiddle with knobs and so forth. One mistake and your were <snip> and had to start over. There is no frigging way the TANG used a Selectric Composer for personal memos to file. Plus, these memos have superscript, which was not available in that form at that time, and the signatures don't match. It goes on and on. "
64 posted on Thursday, September 09, 2004 12:02:49 PM by Buckhead
 
"Well, thanks, but it's premature. It's not 100% conclusive because the IBM Executive and IBM Selectric Composer would do proportional fonts. The Composer was almost certainly not used in this case - it was for typesetting for camera ready and was a monumental pain in the rear to use. The Executive is possible, but still not very likely, but that doesn't resolve the other circumstances indicating forgery. As this gets sifted through the day we will eventually come to find out the truth. There's thousands of people working on it now. It's pretty cool how its unfolded. "

70 posted on Thursday, September 09, 2004 2:29:20 PM by Buckhead 
 

"The guy interviewed by ndcjournal.com and the effect of overlaying a brand new MS Word version with the CBS version kind of ice it IMHO.

They are <snip>.

As for my part, this tsunami would, without any doubt whatsoever, have happened w/o me, so it ain't no big thang.

I will have a cold one tonight, though. "

76 posted on Thursday, September 09, 2004 5:10:36 PM by Buckhead

 
 
To: Buckhead
Buckhead,

Little Green Footballs has picked up on your theory and has taken it further. Take a look.

(note valid link at time of posting) 

http://littlegreenfootballs.com/weblog/?entry=12524_Bush_Guard_Documents-_Forgeries

133 posted on Friday, September 10, 2004 8:51:03 AM by Barney Gumble (http://purveyors-of-truth.blogspot.com/)
 
To: Buckhead

"....Well, the story seems to have legs, big time.
Your original post was cited at Powerlinblog.com, and it was there in the context of an early (if not the first) Internet discovery of the possible forgery of Rather's documents. I think I can renew my congratulations for your fast eye and keyboard...
and my thanks as well.

140 posted on Friday, September 10, 2004 10:01:21 AM by TheGeezer

Entry #968

"Sarah Palin Was Right

I really like Powerlineblog.com and their opinions based on their knowledge of law and the Constitution  .... all three are practicing attorneys.

Two of their blog entries quoted as written.   

___________________

"Sarah Palin Was Right

Posted by John at 4:51 PM

In today's New York Times, Glenn Reynolds takes on the tricky issue of the proper role of the Vice President. Sarah Palin's comments on the Veep's constitutional role in the Vice Presidential debate have been denounced by some, but Reynolds says she was right to emphasize the Vice President's role as part of the legislative branch. As we noted here, (artlcle in full below) it was Joe Biden, not Palin, who mangled the Vice President's constitutional status.

So far, that's not controversial. But Glenn goes further: he argues that the Vice President is properly viewed only as part of the legislative branch, and that it is unconstitutional for the President to delegate executive duties to the Vice President, as has happened routinely in recent administrations.

Glenn's argument is that the old-timers had it right. The Vice Presidency, properly viewed, is as insignificant an office--unless and until the President dies or is removed from office--as it was considered through most of our history. He adds policy arguments to the effect that entangling the Vice President in executive policy can be problematic. Possibly so. But I think the modern approach to the office is here to stay.

We should consider ourselves lucky if it's only Vice Presidents who exercise arguably-unconstitutional executive powers. At least they are elected officials. A far more disturbing phenomenon was Bill Clinton's delegating executive authority to his wife. That didn't work out so well, which doesn't necessarily mean we've seen the last of the idea. "

http://www.powerlineblog.com/archives/2008/10/021896.php

________



"Biden Mangles the Constitution

October 3, 2008 Posted by John at 8:15 AM

This isn't what's conventionally described as a gaffe, and it won't swing any votes, but last night Joe Biden garbled the Constitutional role of the Vice President. I wanted to read the transcript before commenting; here was Gwen Ifill's question:

Governor, you mentioned a moment ago the constitution might give the vice president more power than it has in the past. Do you believe as Vice President Cheney does, that the Executive Branch does not hold complete sway over the office of the vice presidency, that it it is also a member of the Legislative Branch?

Here is Biden's answer, in full:

Vice President Cheney has been the most dangerous vice president we've had probably in American history. The idea he doesn't realize that Article I of the Constitution defines the role of the vice president of the United States, that's the Executive Branch. He works in the Executive Branch. He should understand that. Everyone should understand that.

And the primary role of the vice president of the United States of America is to support the president of the United States of America, give that president his or her best judgment when sought, and as vice president, to preside over the Senate, only in a time when in fact there's a tie vote. The Constitution is explicit.

The only authority the vice president has from the legislative standpoint is the vote, only when there is a tie vote. He has no authority relative to the Congress. The idea he's part of the Legislative Branch is a bizarre notion invented by Cheney to aggrandize the power of a unitary executive and look where it has gotten us. It has been very dangerous.

For a man of Biden's experience, this is a surprising series of misstatements. First of all, he gets wrong one of the most basic facts about the Constitution: Article 1 establishes the legislative branch, not, as Biden said, the executive branch. This is not exactly an obscure fact; my 17-year-old daughter pointed it out at the time.

Second, it simply isn't true that the Constitution treats the Vice President only as a member of the executive branch. The Vice President is mentioned in Article II as part of the executive branch, but he is also given legislative powers by Section 3 of Article 1, which establishes the Senate:

The Vice President of the United States shall be President of the Senate, but shall have no Vote, unless they be equally divided.

Vice President Cheney's "bizarre notion" is in keeping with the plain text of the Constitution.

Finally, Biden misstated the Vice President's role in the Senate. It isn't true that he "preside[s] over the Senate, only in a time when in fact there's a tie vote." The Constitution contemplates that the Vice President will be the full-time President of the Senate, replaced by a President pro tempore "in the absence of the Vice President." It's true that the Vice President only gets to vote in case of a tie; but, of course, that's the only time it matters.

If Joe Biden were a high school student taking a test on the Constitution in a government course, he would get a C or a D. Some would say his mistakes were minor, and, as I said, they certainly won't swing any votes. But it is distinctly odd that a man who has been in the Senate for more than three decades doesn't understand the Constitutional role of the Vice President with respect to that body.  "

http://www.powerlineblog.com/archives/2008/10/021676.php

Entry #967

Supreme Court docket, Case Nos.:(08-4340) Berg vs Obama

Bringing forward TigerAngel's blog entry, for however the Supreme Court rules below are links provided thusfar. 

"Supreme Court to Obama: Prove It

https://www.lotterypost.com/blogcomments.asp?i=25429

____________

PDF of document filed before Supreme Court

http://www.obamacrimes.us/documents/050_US%20Supreme%20Court%20Writ%20of%20Certiorari%20.pdf

_____________

Shows on the Supreme Court docket, Case Nos.:(08-4340)

"Oct 30 2008 Petition for a writ of certiorari before judgment filed. (Response due December 1, 2008)"

http://origin.www.supremecourtus.gov/docket/08-570.htm

http://origin.www.supremecourtus.gov/docket/08a391.htm

Entry #966

"Republican Election Board Workers Thrown Out In Philly...

 
A Repeat of 2004 Philly Voter Chaos, Fraud Posted by: Amanda Carpenter at 7:46 AM EXCLUSIVE, DEVELOPING--
Source Townhall.com via DrudgeReport.com

"GOP Election Board members have been tossed out of polling stations in at least half a dozen polling stations in Philadelphia because of their party status.

A Pennsylvania judge previously ruled that court-appointed poll watchers could be NOT removed from their boards by an on-site election judge, but that is exactly what is happening.

It is the duty of election board workers to monitor and guard the integrity of the voting process.

Denying access to the minority (in this case Republican) poll watchers and inspectors is a violation of Pennsylvania state law. Those who violate the law can be punished with a misdemeanor and subjected to a fine of $1,000 and sent to prison between one month and two years.

Those on site as describing it as "pandemonium" and there may be video coming of the chaos.

Some of the precincts where Republicans have been removed are: the 44th Ward, 12th and 13th divisions; 6th Ward, 12th division; 32nd Ward, Division 28.

“Election board officials guard the legitimacy of the election process and the idea that Republicans are being intimidated and banned for partisan purposes does not allow for an honest and open election process,” said McCain-Palin spokesman Ben Porritt in a statement to Townhall.

The City of Brotherly Love was roiled in controversy during the 2004 election because of rigged voting machines that showed nearly 2,000 votes for Democratic presidential candidate John Kerry before the polls had opened. A man also used a gun to intimidate poll workers at Ward 30, division 11 in 2004."

http://townhall.com/blog/g/cf47766b-5a6d-44ab-95e7-ce60631bcadc
Entry #964

"unprecedented increases in electricity prices.

From Powerlineblog.com, live links

________________

"The Arrogance of Barack Obama

Source Powerlineblog.com

November 3, 2008 Posted by John at 11:25 AM

"Maybe the American people just didn't have quite enough time to get to know Barack Obama. It seems inconceivable to me that a candidate as arrogant as Obama could be ahead in the polls if the voters had fully absorbed how out of touch he can be. A case in point is this MTV interview, where Obama says that the tax increase he proposes on people who earn $250,000 or more is "chump change, that's nothing." But wait! If it's "chump change," how is it going to fund the hundreds of billions in new spending that Obama wants?

Likewise with Obama's casual declaration that he intends to bankrupt the coal industry, which currently supplies around one-half of all electricity produced in the United States. Today Mike Carey, President of the Ohio Coal Association, issued this statement:

Regardless of the timing or method of the release of these remarks, the message from the Democratic candidate for President could not be clearer: the Obama-Biden ticket spells disaster for America's coal industry and the tens of thousands of Americans who work in it.

These undisputed, audio-taped remarks, which include comments from Senator Obama like 'I haven't been some coal booster' and 'if they want to build [coal plants], they can, but it will bankrupt them' are extraordinarily misguided.

It's evident that this campaign has been pandering in states like Ohio,Virginia, West Virginia,Indiana and Pennsylvania to attempt to generate votes from coal supporters, while keeping his true agenda hidden from the state's voters.

Senator Obama has revealed himself to be nothing more than a short-sighted, inexperienced politician willing to say anything to get a vote. But today, the nation's coal industry and those who support it have a better understanding of his true mission, to 'bankrupt' our industry, put tens of thousands out of work and cause unprecedented increases in electricity prices.

In addition to providing an affordable, reliable source of low-cost electricity, domestic coal holds the key to our nation's long-term energy security - a goal that cannot be overlooked during this time of international instability and economic uncertainty.

Few policy areas are more important to our economic future than energy issues. As voters head to the polls tomorrow, it is essential they remember that access to reliable, affordable, domestic energy supplies is essential to economic growth and stability.

Where will the "little people" get electricity if Obama's environmental policies destroy the coal industry? That, apparently, is of no concern to "The One." It would have been nice if this news had come out more than a couple of days before the election.  "

Entry #963

Obama's '$4 Billion for Exxon' Myth

"Obama's '$4 Billion for Exxon' Myth
Why haven't the 'fact-checkers' done a better job?
 
By ALAN REYNOLDS
WSJ.com 
"In the final days of the campaign, Barack Obama continues to land the same sucker punch on taxes he used in the debates -- and John McCain continues to take it on the chin.
 
In the last debate, Sen. Obama said, "We both want to cut taxes, the difference is who we want to cut taxes for. . . . The centerpiece of [McCain's] economic proposal is to provide $200 billion in additional tax breaks to some of the wealthiest corporations in America. Exxon Mobil, and other oil companies, for example, would get an additional $4 billion in tax breaks."
 
That $200 billion figure is false. Yet FactCheck.org and most reporters never bothered to ask Mr. Obama where he came up with it. FactCheck.org did discover that Mr. Obama's claim about "$4 billion in tax breaks for energy companies" came from a two-page memo from the Center for American Progress Action Fund -- a political lobby headed by John Podesta, former chief of staff to Bill Clinton, with tax issues handled by two lawyers, Robert Gordon and James Kvaal, former policy directors for the John Kerry and John Edwards campaigns. Those lawyers confused average tax rates (after credits and deductions) with the 35% statutory rate on the next dollar of earnings, so that cutting the latter rate from 35% to 25% would supposedly cut big oil's $13.4 billion tax bill by 28.5%, or $3.8 billion. That is not economics; it is not even competent bookkeeping.
 
The Committee for a Responsible Federal Budget, by contrast, correctly notes that, "Senator McCain has called for the repeal and reform of a number of tax preferences for oil companies," which would raise the oil companies' taxes by $5 billion in 2013.
 
When fact checkers do look into campaign claims on taxes, they invariably cite estimates from the Urban Institute and Brookings Institution's Tax Policy Center (TPC). The TPC estimates that the McCain corporate tax cuts would lose $734.7 billion of revenue over 10 years (2009-2018). Mr. McCain would also allow immediate expensing through 2013 for equipment normally written-off over three to five years, but no deduction for interest expense if the investment was made with borrowed money. Once equipment has been written-off in 2009 or 2010 it can't be written-off in later years, so the estimated revenue loss over 10 years is only $45 billion, or $4.5 billion per year. Altogether, that adds up to $78 billion a year in corporate tax cuts, not $200 billion.
 
Yet the $78 billion TPC estimate is also nonsense because it's entirely static. The estimate assumes raising or lowering corporate tax rates has no effect on corporate decisions about where to locate production, income or costs, and no effect on the economy's performance. If that made sense, the corporate tax rate could be doubled to 70% and the only effect (according to TPC estimates) would be to double corporate tax receipts. Such a static analysis is obviously worthless, yet it is nonetheless crucial to the TPC's estimates of the revenue supposedly lost from the McCain plan and its alleged distributional effects.
 
Mr. McCain proposes to cut the corporate tax rate to 30% in 2010-11, 28% in 2012-13, 26% in 2014, and 25% thereafter. The timing could be better. Why not cut the corporate tax rate to 28%-30% right away? Could anyone doubt that would help struggling businesses to minimize cutbacks and layoffs? Could anyone doubt it would invigorate the stock market?
 
Phasing in tax-rate reductions -- as in 1981 and 2001 -- has become a bad habit among Republicans. The trouble is that knowing tax rates will be lower in the future provides incentives to delay earning and reporting income until after they fall. In the American Economic Review, December 2006, University of Michigan economists Christopher House and Matthew Shapiro found "the phased-in tax cuts called for in the 2001 tax bill worked to depress employment as firms and workers waited for the lower tax rates to materialize."
 
In the U.S today, the combined federal and state tax on corporate profits averages 40%, which is increasingly out of line with the rest of the world. The average corporate tax rate dropped to 25.9% in 2008 from 37.7% in 1996 among 97 countries surveyed by KPMG, and to 23.2% from 38% in the European Union. Corporate tax revenues typically increased as a share of GDP after tax rates were reduced. Countries with corporate tax rates from 12.5% to 25%, such as Ireland, Switzerland, Austria and Denmark, routinely collect more corporate tax revenue as a share of GDP than the anemic 2.1% figure the Congressional Budget Office projects for the U.S.
 
In a new Tax & Budget Bulletin at Cato.org, Jack Mintz of the University of Calgary estimates that a federal-state corporate tax rate higher than 28% loses money for the government. Kimberly Clausing of Reed College estimated revenues would be maximized with a 33% federal and state tax. Kevin Hassett and Alex Brill of the American Enterprise Institute found "the revenue maximizing point has dropped over time, and is about 26%." In all of these studies, cutting the federal tax to 28%-30% sooner rather than later is very likely to raise revenue.
 
Regardless who wins the election, an accelerated version of Mr. McCain's original plan -- to cut the corporate tax rate to 28%-30% and expense investments in business equipment -- is by far the most potent "stimulus plan" anyone has yet proposed. And far from costing $200 billion a year, as Mr. Obama claims, it wouldn't cost a dime."
 
Mr. Reynolds is a senior fellow with the Cato Institute. This commentary was adapted from a paper for Hillsdale College's Free Market Forum "

http://online.wsj.com/article/SB122549399683189495.html?mod=rss_opinion_main
Entry #962