Anti-democratic Scalia

At Democracy Now, Amy Goodman discussed McCutcheon v. Federal Election Commission, which has been referred to as "the next Citizens United."

Republican leaders and wealthy GOP donor Shaun McCutcheon wants the Supreme Court to throw out aggregate limits on individual contributions in a single two-year cycle, saying they violate free speech. "If these advocate limitations go down, 500 people will control American democracy. It would be 'government for the 500 people,' not for anybody else — and that’s the risk," says Burt Neuborne, law professor and founding legal director of the Brennan Center for Justice at New York University Law School. . . "AMY GOODMAN: During the oral arguments, Justice Ruth Bader Ginsburg said, quote, "By having these limits you are promoting democratic participation, then the little people will count some, and you won’t have the super-affluent as the speakers that will control the elections." Justice Antonin Scalia responded somewhat sarcastically by saying, quote, "I assume that a law that only—only prohibits the speech of 2 percent of the country is okay." That was Scalia. BURT NEUBORNE: And that’s the—that’s the gulf that divides the court on these cases. Justice Ginsburg thinks that we should use campaign finance reform to advance equality, so that everybody has a roughly equal political influence. Scalia says, "Look, if you’re rich, you’re entitled to have as much influence as you can buy." And that’s now been the collision, and the Scalia side has won five-to-four consistently in recent years."

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Flags

There are many people out there who want to believe that the American flag is being honored no matter how it is displayed at government sanctioned Fourth of July celebrations. I'm not one of them. IMG_2797 My problem is that only a couple hundred feet from this above huge flag hoisted on by use of firetruck ladders, one sees many smaller American flags waving side by side with the corporate flags of businesses who essentially own Congress and who often call the shots contrary to the wishes of the People of the United States. American Flagf If I had my way, corporate influence would be eradicated and thus invisible at Fourth of July festivities. If it means giving up air shows and big fireworks displays, so be it. The number one priority for the People of the United States should be to take back their country. It needs to be actually run by the People. Kicking the corporations out of Fourth of July celebrations would be a powerful first step.

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Unequal access to secret information shows us who is doing real journalism

Chris Hayes nails it on MSNBC. The U.S. government and its many cronies in the mass media love to disburse secret information when it bolsters the position of the government. They take the opposite position when information embarrasses the U.S. government.

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Love his conclusion: The conduct of the vast and growing surveillance web is "on all of us what the government does in our name."

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Matt Taibbi puts the spotlight on the rating agencies

The financial meltdown could never have happened if the ratings agencies hadn't rated crap loans as excellent. It would have brought the entire corrupt system to a halt. Matt Taibbi is whipping these culprits with some stunning evidence that has recently come to light.

Thanks to a mountain of evidence gathered for a pair of major lawsuits, documents that for the most part have never been seen by the general public, we now know that the nation's two top ratings companies, Moody's and S&P, have for many years been shameless tools for the banks, willing to give just about anything a high rating in exchange for cash. In incriminating e-mail after incriminating e-mail, executives and analysts from these companies are caught admitting their entire business model is crooked. "Lord help our fucking scam . . . this has to be the stupidest place I have worked at," writes one Standard & Poor's executive. "As you know, I had difficulties explaining 'HOW' we got to those numbers since there is no science behind it," confesses a high-ranking S&P analyst. "If we are just going to make it up in order to rate deals, then quants [quantitative analysts] are of precious little value," complains another senior S&P man. "Let's hope we are all wealthy and retired by the time this house of card[s] falters," ruminates one more.
Here's Taibbi's conclusion:
What's amazing about this is that even without a mass of ugly documentary evidence proving their incompetence and corruption, these firms ought to be out of business. Even if they just accidentally sucked this badly, that should be enough to persuade the markets to look to a different model, different companies, different ratings methodologies. But we know now that it was no accident. What happened to the ratings agencies during the financial crisis, and what is likely still happening within their walls, is a phenomenon as old as business itself. Given a choice between money and integrity, they took the money. Which wouldn't be quite so bad if they weren't in the integrity business.
This is an engaging and detailed article that will leave you frustrated that it's business as usual for the ratings agencies. Excellent reporting and phenomenal writing by Taibbi.

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Taxing social welfare groups

Propublica gives important background for understanding the alleged improper actions of the IRS:

In the furious fallout from the revelation that the IRS flagged applications from conservative nonprofits for extra review because of their political activity, some points about the big picture -- and big donors -- have fallen through the cracks. Consider this our Top 6 list of need-to-know facts on social welfare nonprofits, also known as dark money groups because they don’t have to disclose their donors. The groups poured more than $256 million into the 2012 federal elections. A century ago, Congress created a tax exemption for social welfare nonprofits. The statute defining the groups says they are supposed to be “operated exclusively for the promotion of social welfare.” But in 1959, the regulators interpreted the “exclusively” part of the statute to mean groups had to be “primarily” engaged in enhancing social welfare. This later opened the door to political spending.
Here are the six points elaborated by Propublica:
1. Social welfare nonprofits are supposed to have social welfare, and not politics, as their “primary” purpose. 2. Donors to social welfare nonprofits are anonymous for a reason. 3. The Supreme Court’s Citizens United decision meant that corporations could pay for political ads, anonymously, using social welfare nonprofits. 4. Social welfare nonprofits do not actually have to apply to the IRS for recognition as tax-exempt organizations. 5. Most of the money spent on elections by social welfare nonprofits supports Republicans. 6. Some social welfare groups promised in their applications, under penalty of perjury, that they wouldn’t get involved in elections. Then they did just that.

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