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FOCUS: The Republican Sabotage of the Vote Recounts in Michigan and Wisconsin Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=27607"><span class="small">Greg Palast, Reader Supported News</span></a>   
Monday, 19 December 2016 11:36

Palast writes: "The US media doesn't want to cover the vote theft - because, hey, the count is over - and we should get over it. I am not over it. I am standing my ground."

Photo of Michigan ballot with bubble. (image: Palast Investigative Fund, 2016)
Photo of Michigan ballot with bubble. (image: Palast Investigative Fund, 2016)


The Republican Sabotage of the Vote Recounts in Michigan and Wisconsin

By Greg Palast, Reader Supported News

19 December 16

 

Before the Electoral College votes, they should know this.

ichigan officials declared in late November that Trump won the state's count by 10,704 votes. But hold on – a record 75,355 ballots were not counted.

The uncounted ballots came mostly from Detroit and Flint, majority-Black cities that vote Democratic.

According to the machines that read their ballots, these voters waited in line, sometimes for hours, yet did not choose a president. Really?

This week, I drove through a snowstorm to Lansing to hear the official explanation from Ruth Johnson, the Republican secretary of state. I was directed to official flack-catcher Fred Woodhams who told me, "You know, I think when you look at the unfavorability ratings that were reported for both major-party candidates, it's probably not that surprising."

Sleuthing about in Detroit, I found another explanation: bubbles.

Bubbles?

Michigan votes on paper ballots. If you don't fill the bubble completely, the machine records that you didn't vote for president.

Susan, a systems analyst who took part in the hand recount initiated by Jill Stein, told me, "I saw a lot of red ink. I saw a lot of checkmarks. We saw a lot of ballots that weren't originally counted, because those don't scan into the machine." (I can only use her first name because she's terrified of retribution from Trump followers in the white suburb where she lives.)

Other ballots were not counted because the machines thought the voter chose two presidential candidates.

How come more ballots were uncounted in Detroit and Flint than in the white 'burbs and rural counties? Are the machines themselves racist?

No, but they are old, and in some cases, busted. An astonishing 87 machines broke down in Detroit, responsible for counting tens of thousands of ballots. Many more were simply faulty and uncalibrated.

I met with Carlos Garcia, University of Michigan multimedia specialist, who, on Election Day, joined a crowd waiting over two hours for the busted machine to be fixed.

Some voters left; others filled out ballots that were chucked, uncounted, into the bottom of machine. When the machine was fixed, Carlos explained, "Any new scanned ballots were falling in on top of the old ones." It would not be possible to recount those dumped ballots.

This is not an unheard of phenomenon: I know two voters who lost their vote in another state (California) because they didn't fill in the bubble – my parents! Meet mom and dad in my film, The Best Democracy Money Can Buy:

How did Detroit end up with the crap machines?

Detroit is bankrupt, so every expenditure must be approved by "emergency" overlords appointed by the Republican governor. The GOP operatives refused the city's pre-election pleas to fix and replace the busted machines.

"We had the rollout [of new machines] in our budget," Detroit City Clerk Janice Winfrey said. "No money was appropriated by the state."

Same in Flint. GOP state officials cut the budget for water service there, resulting in the contamination of the city's water supply with lead. The budget cuts also poisoned the presidential race.

The Human Eye Count

There is, however, an extraordinary machine that can read the ballots, whether the bubbles are filled or checked, whether in black ink or red, to determine the voters' intent: the human eye.

That's why Dr. Jill Stein, the Green Party candidate, paid millions of dollars for a human eyeball count of the uncounted votes. While labeled a "recount," its real purpose is to count the 75,355 votes never counted in the first place.

Count those ballots, mostly in Detroit and Flint, and Trump's victory could vanish.

Adding to the pile of uncounted ballots are the large numbers of invalidated straight-ticket votes in Detroit. In Michigan, you can choose to make one mark that casts your vote for every Democrat (or Republican) for every office. Voters know that they can vote the Democratic ballot but write in a protest name – popular were "Bernie Sanders" and "Mickey Mouse" – but their ballot, they knew, would count for Clinton.

However, the Detroit machines simply invalidated the ballots with protest write-ins because the old Opti-Scans wrongly tallied these as "over-votes" (i.e., voting for two candidates). The human eye would catch this mistake.

But Michigan Attorney General Bill Schuette stymied Stein's human eye count. The Republican pol issued an order saying that no one could look at the ballots cast in precincts where the number of votes and voters did not match – exactly the places where you'd want to look for the missing votes. He also ordered a ban on counting ballots from precincts where the seals on the machines had been broken – in other words, where there is evidence of tampering. Again, those are the machines that most need investigating. The result: The recount crews were denied access to more than half of all Detroit precincts (59 percent).

I met with Stein, who told me she was stunned by this overt sabotage of the recount. "It's shocking to think that the discounting of these votes may be making the critical difference in the outcome of the election," she said.

This story was repeated in Wisconsin, which uses the same Opti-Scan system as Michigan. There, the uncounted votes, sometimes called "spoiled" or "invalidated" ballots, were concentrated in Black-majority Milwaukee. Stein put up over $3 million of donated funds for the human eye review in Wisconsin, but GOP state officials authorized Milwaukee County to recount simply by running the ballots through the same blind machines. Not surprisingly, this instant replay produced the same questionable result.

Adding Un-Votes to the Uncounted

Stein was also disturbed by the number of voters who never got to cast ballots. "Whether it's because of the chaos [because] some polling centers are closed, and then some are moved, and there's all kinds of mix-ups," she said. "So, a lot of people are filling out provisional ballots, or they were being tossed off the voter rolls by Interstate Crosscheck."

Interstate Crosscheck is a list that was created by Donald Trump supporter and Kansas Secretary of State Kris Kobach to hunt down and imprison voters who illegally voted or registered in two states in one election.

An eye-popping 449,092 Michiganders are on the Crosscheck suspect list. The list, which my team uncovered in an investigation for Rolling Stone, cost at least 50,000 of the state's voters their registrations. Disproportionately, the purged voters were Blacks, Latinos and that other solid Democratic demographic, Muslim Americans. (Dearborn, Michigan, has the highest concentration of Arab Americans in the US.)

The Michigan Secretary of State's spokesman Woodhams told me the purpose of the mass purge was, "to clean our voter lists and ensure that there's no vulnerability for fraud. We've been very aggressive in closing vulnerabilities and loopholes to fraud."

While Woodhams did not know of a single conviction for double-voting in Michigan, the "aggression" in purging the lists was clear. I showed him part of the Michigan purge list that he thought was confidential. The "double voters" are found by simply matching first and last names. Michael Bernard Brown is supposed to be the same voter as Michael Anthony Brown. Michael Timothy Brown is supposed to be the same voter as Michael Johnnie Brown.

Woodhams assured me the GOP used the Trump-Kobach list with care, more or less. He said, "I'm sure that there are some false positives. But we go through it thoroughly, and we're not just canceling people."

As to the racial profiling inherent in the list? Did he agree with our experts that by tagging thousands of voters named Jose Garcia and Michael Brown there would be a bias in his purge list?

The GOP spokesman replied, "I've known a lot of white Browns."

Jill Stein didn't buy it. Responding to both Michigan's and Trump's claim that voter rolls are loaded with fraudulent double voters, Stein said, "It's the opposite of what he is saying: not people who are voting fraudulently and illegally, but actually legitimate voters who have had their right to vote taken away from them by Kris Kobach and by Donald Trump."

Crosscheck likely cost tens of thousands their vote in Pennsylvania as well. "It is a Jim Crow system, and it all needs to be fixed," Stein concluded. "It's not rocket science. This is just plain, basic democracy."

A note in the snow

Last week, I flew to Detroit with my team at the request of a major west coast publication. When I landed, they got cold feet; assignment cancelled. Without funding to continue, I should have headed home. But I was getting tips of nasty doings with the ballots in Motown. I could get the evidence that Trump’s victory was as real as his tan.

So I tucked my long-johns under my suit, put on my fedora, and headed out to meet the witnesses, see the evidence and film an investigative report on the Theft of Michigan. With almost no sleep (and no pay), my producer David Ambrose and I put together an investigative film—and donated it, no charge, to Democracy Now! and several other outlets.

As to the airfares, hotels, cars, camera batteries, sound equipment, local assistants and the rest, the bills have piled high as the snow and uncounted ballots. So, here I was, literally out in the cold, hoping you'd see the value of top-flight investigative reporting.

So, buddy, can you spare a dime? Or $100 or so? For that, I’ll send you my new film, the one that, back in September, told you exactly how Trump would steal it. Or a signed copy of the book that goes with it: The Best Democracy Money Can Buy, a tale of billionaires and ballot bandits.

I want to thank all of you who donated to get me to Washington DC to testify at the ad hoc Congressional hearing and to speak with the Justice Department about the suppression of minority votes.

(On Monday, I was joined at the Washington Press Club by the nation’s top voting rights attorney, Barbara Arnwine; civil rights legend Ruby Sales; Muslim activist Sameera Khan. They announced plans to take legal and political action against Crosscheck, the Trumpistas’ latest Jim Crow tactic, the one our team uncovered for Rolling Stone. Khan joined me at Justice to present them 50,000 signatures (we unloaded reams of paper on them) gathered by 18 Million Rising, the Asian American advocacy group, to light a fire under Justice.

On Tuesday, I joined the presidents of the NAACP chapters of Michigan and Wisconsin and other front-line voting rights leaders, to plan next steps for this week, for this year, for this decade.

My presentation to Justice, to Congressmen and rights advocates, to the press, was so much more powerful because I arrived in DC with the goods, the evidence, the film, the facts from Michigan, from the scene of the electoral crime.

So, in the end, my assignment wasn’t cancelled: I went to work for YOU. Because I have faith that my readers agree that this work is important, that I’m not on some fool’s errand.

The US media doesn’t want to cover the vote theft—because, hey, the count is over—and we should get over it. I am not over it. I am standing my ground. Let me know if you think I’ve made the right decision. Feed the team. I have nothing to offer you in return except some signed discs and books (or the Combo)— and the facts. – Greg Palast



Greg Palast has been called the "most important investigative reporter of our time - up there with Woodward and Bernstein" (The Guardian). Palast has broken front-page stories for BBC Television Newsnight, The Guardian, The Nation Magazine, Rolling Stone, and Harper's Magazine. He is the author of the New York Times bestsellers Billionaires & Ballot Bandits, Armed Madhouse, The Best Democracy Money Can Buy, and the highly acclaimed Vultures' Picnic, named Book of the Year 2012 on BBC Newsnight Review. His books have been translated into two dozen languages. His brand new film of his documentary reports for BBC Newsnight and Democracy Now! is called Vultures and Vote Rustlers.

Reader Supported News is the Publication of Origin for this work. Permission to republish is freely granted with credit and a link back to Reader Supported News.

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A Personal Appeal to the Republican Members of the Electoral College Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=35918"><span class="small">Michael Moore, Michael Moore's Facebook Page</span></a>   
Monday, 19 December 2016 09:38

Moore writes: "Republican electors, you have a chance tomorrow to fix this, to make it right, for yourselves as Republicans and for the country. Please find the courage to seize this historic moment where you put country over party."

Michael Moore. (photo: Where to Invade Next)
Michael Moore. (photo: Where to Invade Next)


A Personal Appeal to the Republican Members of the Electoral College

By Michael Moore, Michael Moore's Facebook Page

19 December 16

 

ear Republican Electors:

Ok, if you've read this far, knowing that it's me, Michael Moore, writing to you -- well, thank you for having an open mind and the willingness to listen to someone you don't agree with.

I am writing you not as a card-carrying Democrat (I'm not) who voted for Hillary (I did), but simply because I am an American who, like you, deeply loves this country and its people.

Tomorrow is the day you are supposed to gather with your fellow electors and choose the next President of the United States. I am not going to ask you to vote for the person who got the most votes (although I will not be upset should you chose to side with the majority of your fellow Americans and do so!).

No, I'm simply asking you to vote your conscience and PLEASE do not put our nation in danger by choosing Donald J. Trump.

I know you HAVE to be full of worry and consternation over the way Russia hacked into our election in order to help Trump. Shouldn't we all wait until the investigation ordered by the president is finished before the Electoral College votes? If Trump did know or was involved in this unprecedented assault on our electoral process, wouldn't that be enough for you to exercise your constitutional power to stop a man like this from taking office?

Or just the fact that he has refused to attend nearly all the daily national security briefings -- doesn't this give you some pause? Do we want a Commander-in-Chief who is too busy or too disinterested to protect us on a daily basis?

Or how about the fact that Donald Trump bragged and admitted during the campaign that his people were in touch with the Russians? How much more do you need before you get a sick feeling about all of this?

I think you know something is wrong with this man. He just doesn't seem "right." One crazy comment or action after another. He may not be well. Don't you have a responsibility to protect us from someone who might be mentally unstable?

I want you to know what the law says about what you can do tomorrow. Please check out these links: https://www.washingtonpost.com/…/0f431828-b0f7-11e6-8616-52… and http://avalon.law.yale.edu/18th_century/fed68.asp

You have more power than you realize -- and you have an American conscience I hope you will follow. Please consider there four points:

1. Although it may ultimately have to be decided by the courts, right now you have the duty to do what you feel is right. One reason the founders set up the Electoral College was to make sure there was one final protection should someone who is a danger to the country slip through. We've established the national security danger that is Donald Trump and the possibility he had knowledge of the Russians hacking our election while it was taking place. If I were an elector for Hillary and learned she MIGHT have received helped from the Russians or the North Koreans or the Saudis, how do you think I'd be voting tomorrow? I assure you, it would not be for Hillary. You need to do the same thing.

2. But some states have made it "illegal" for you to vote any other way than for Trump. If you don't vote for him, your state will fine you $1,000. So here's my offer to you: I obviously can't and won't give you money to vote tomorrow, but if you do vote your conscience and you are punished for it, I will personally step up pay your fine which is my legal right to do.

3. If you are still worried about the legality of you voting your conscience and would like free legal advice and help, Harvard law professor Lawrence Lessig has offered to be your lawyer. Contact him at: http://www.electorstrust.org/

4. Trump, as I'm sure deep down in your heart you know, is never going to last the four years. He doesn't care about the law or following the rules and this will eventually trip him up. You know how dangerous it is when any politician, Democrat or Republican, who's a super narcissist is elected to office, they start making decisions that personally benefit themselves -- and before you know it, they're being hauled off to jail. Why not vote tomorrow for someone who's going to finish her/his term? Why risk the volatile presence of Donald Trump in the White House -- and help to guarantee another generation of Dems in the Oval Office?!

Republican electors, you have a chance tomorrow to fix this, to make it right, for yourselves as Republicans and for the country. Please find the courage to seize this historic moment where you put country over party. Set an example to our young people that conscience supersedes politics, and that morality -- yes, answering the quite legitimate question, "what would Jesus do?" -- is still the most important consideration. You are bound to God and not to Vladimir Putin. Your loyalty is to your fellow Americans, the vast majority of whom didn't vote for Donald J. Trump. But you won the Electoral College and so you get to decide. You can vote for the actual winner as decided by the American people, or you can pick another Republican who isn't Trump.

Why not choose a president who won't try to please Moscow, someone who believes the threat of terrorism is real and demands to be briefed on it daily? Why not let history record your moment of true courage and patriotism? Only 38 of you have to stand up and say, "I love my country and I cannot in good conscience vote for a man who, whether he means to or not, may put our nation in jeopardy. I love my country more than I love this job as an elector."

Thank you for listening to my plea. I promise to return the favor someday. A lot more listening to each other, regardless of our political positions, could go a long way to truly making America great again.

Most sincerely,
Michael Moore

P.S. Tonight, in front of most State Capitols, thousands of Americans will be participating in candlelight vigils hoping you will vote your conscience. www.vigilsforamerica.com Stop by and chat with them if you get the chance.


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The Vampire Squid Occupies Trump's White House Print
Sunday, 18 December 2016 14:35

Taibbi writes: "One surprise election result and a mountain of jubilant #draintheswamp hashtags later, Donald Trump has filled his White House with, you guessed it, Goldman veterans."

Trump at an August campaign rally in Fort Lauderdale, Florida. (photo: Joe Raedle/Getty Images)
Trump at an August campaign rally in Fort Lauderdale, Florida. (photo: Joe Raedle/Getty Images)


The Vampire Squid Occupies Trump's White House

By Matt Taibbi, Rolling Stone

18 December 16

 

After running against Goldman as a candidate, Donald Trump licks the boots of the world's largest investment bank

ack on February 19th, during a primary-season speech in Myrtle Beach, South Carolina, Donald Trump directed a two-pronged rhetorical offensive against opponents in both parties. He started with Ted Cruz.

Cruz's campaign, Trump pointed out, had taken loans from the infamous investment bank Goldman Sachs. And he'd failed to properly disclose one of these loans.

"I know the guys at Goldman Sachs. They have total, total control over [Cruz]," Trump said. "Just like they have total control over Hillary Clinton."

Trump demonized the bank enough that it almost seemed like genuine animosity existed between candidate and squid. When Goldman announced in September that it was banning employees from donating to Trump's campaign, it seemed official.

In October, Trump was even more specific in pointing the finger at Goldman. Referencing speeches Clinton gave to Goldman, Trump said that "Hillary Clinton meets in secret with international banks to plot the destruction of U.S. sovereignty in order to enrich these global financial powers, her special interest friends and her donors."

Trump's tales sounded like classic Rothschild/Bilderberg conspiracy lore. They would have been absurd, were it not for the fact that so much of the innuendo around Goldman Sachs often turns out to be true.

The bank has an extraordinary history of placing its executives in high-ranking governmental and quasi-governmental positions, from treasury secretaries to senators to the heads of the World and European Central Banks. Goldman has been implicated in the trafficking of toxic mortgages, a sprawling state corruption case in Malaysia, the manipulation of world commodity prices and a heinous episode involving Greece in which the bank helped to mask the country's ballooning debt while simultaneously working with JPMorgan Chase to create an index for betting against Greece's economy.

Nonetheless, Trump's insinuations about a Goldman-Hillary secret conspiracy were so pointed that CEO Lloyd Blankfein was forced to respond.

"If there's some secret international cabal, I've been left out of the party again," he quipped.

In his final pitch to voters in the days before the election, Trump used the image of Blankfein in a TV ad to argue that insiders had ruined the lives of ordinary Americans to enrich themselves. Here is the narration you heard when Blankfein's face came on screen:

"It's a global power structure that is responsible for the economic decisions that have robbed our working class, stripped our country of its wealth and put that money into the pockets of a handful of large corporations and political entities."

One surprise election result and a mountain of jubilant #draintheswamp hashtags later, Donald Trump has filled his White House with, you guessed it, Goldman veterans.

His chief strategist, the unabashed white-supremacist loon Steve Bannon, is a former Goldman banker, as is adviser Anthony Scaramucci. Steve Mnuchin marks the fourth Goldman-pedigreed treasury secretary in the last four presidencies, after Bob Rubin, Lawrence Summers and Hank Paulson.

But the real shocker is the recent appointment of Goldman Chief Operating Officer Gary Cohn to the post of director of the National Economic Council. Bannon and Mnuchin were former, past Goldmanites. Cohn, meanwhile, is undoubtedly at least the number-two figure at the world's most despised bank, if not the outright co-head with Blankfein. He has been at the center of many of its most infamous episodes, including the Greek affair.

So much for draining the swamp.

The new party line, emanating both from Washington and from Alt-Right yahoos on the Internet, is that people like Gary Cohn are no longer the swindling scum-lords Trump said they were a few months ago, but simply smart businessmen.

As Trump put it, "Gary Cohn is going to put his talents as a highly successful businessman to work for the American people."

This mantra is often used to explain Goldman's legend. Its advocates say they may be cold-blooded, but they're just dern good at what they do.

The bank has worked very hard to nurture exactly that image, particularly when there are darker explanations for the bank's success that they would rather leave unexplored. A great example involves Cohn, Trump's new "top economic adviser."

Way back in November of 2007, a tidal wave was beginning to devour Wall Street. The subprime mortgage market was collapsing, and the bulk of America's investment banks were foundering.

Indeed, within a year, three of the country's storied top five investment banks – Bear Stearns, Merrill Lynch and Lehman Brothers – would be wiped out by the crisis, thanks mainly to their overinvestment in subprime.

One bank stood out as an exception: Goldman Sachs.

The legend on the street was that Goldman was somehow not only going to survive the crash, but prosper and make big profits. How did Goldman do so well during a financial hurricane? The New York Times had an answer: its leaders were smart – and humble!

"Goldman's secret sauce, say executives, analysts and historians," the paper wrote, "is high-octane business acumen, tempered with paranoia and institutionally encouraged — though not always observed — humility."

Where did writers Jenny Anderson and Landon Thomas Jr. get the idea that Goldman's smarts saved them during the mortgage crisis? From Goldman, of course.

We know this because of an investigation conducted into the bank's a-little-too-miraculous performance that year by the Senate Permanent Subcommittee on Investigations.

Chaired by Michigan Sen. Carl Levin, the PSI scrupulously detailed the efforts by Goldman to get out from under the mortgage crash by dumping its disastrous mortgage investments on its own clients as it simultaneously bet against them.

This maneuver, colloquially described since as the "Big Short" episode, was perhaps the most lurid example of Wall Street iniquity during the crash years. And Trump's new economic adviser, Cohn, played a central role.

In the run-up to the "Big Short" story – in the years leading up to 2007 – Goldman had joined other banks in helping cause the financial crisis. They'd done so by creating masses of toxic mortgage instruments and selling them to unsuspecting investors, who were (often falsely) told the loans met underwriting standards. Goldman, like JPMorgan Chase, Bank of America and Citigroup, would later pay billions to settle claims by its infuriated customers, which included state and federal housing authorities.

At the tail end of 2006, Goldman execs saw that a) the subprime mortgage market was in serious trouble, and b) the bank itself was dangerously overinvested in it. So they made a frenzied, often deceptive effort to induce their clients to eat what should naturally have been their own losses.

On December 14th, 2006, mortgage chief Daniel Sparks proposed: "Distribute as much as possible on bonds created from new loan securitizations and clean previous positions."

Translation: Let's create new mortgage-backed products to dump on others, and use them to "clean" our toxic portfolio.

In one mortgage-based deal called Hudson 1 securities, Goldman helped sell its toxic holdings by saying the bank's interests were "aligned" with those of potential clients, because it would own a tiny, $6 million slice of the deal.

The bank left out the fact that it had a $2 billion bet against the same deal.

In the same deal, Goldman told clients that the mortgage products in Hudson had been "sourced from the Street," i.e., that this stuff did not come from Goldman's own inventory. When Senate investigators later pressed Goldman executives on this question, they hilariously claimed this wasn't a lie, because Goldman was part of "the Street."

"They were like, 'We are the Street,'" one investigator told me, laughing.

Through deals like this, Goldman within months went from having a $6 billion bet on mortgages to having a $10 billion bet against them – a "big short."

All of these moves were made with the assent of the Firmwide Risk Committee, which included Goldman CFO David Viniar, Blankfein and Cohn.

They would go on to fleece other clients. In the summer, an Australian hedge fund called Basis Capital was induced to buy $100 million of a mortgage-based Goldman deal called "Timberwolf." They told the Aussies to expect a return of "over 60 percent."

Meanwhile, in private, Goldman execs were saying things like, "Boy, that timberwof [sic] was one shitty deal."

The sales rep who got Basis to buy was so elated that the subject line of his email read "Utopia." He told other execs he'd found the ultimate sucker. "I found white elephant, flying pig and unicorn all at once," he crowed.

Basis Capital later claimed it lost $56 million in six weeks. It filed for bankruptcy within months of the Timberwolf deal.

Getting back to the Times story about how Goldman's smarts and humility saved them during the crash: One of the documents the Senate investigators discovered was an email from Goldman press flack Lucas van Praag to a group of senior Goldman executives that included Blankfein, Cohn and Viniar.

Van Praag wanted to warn the leadership that there was a Times piece coming that would examine why Goldman managed to prosper at a time when everyone else was being wiped out. Van Praag did not, of course, tell The Times that Goldman had survived by making sure that its clientele bought up what Blankfein called the "cats and dogs" of its toxic inventory.

What van Praag instead said was more Trumpian: that Goldman just had a winning culture.

"We spent a lot of time on culture as a differentiator," van Praag told his bosses, when describing his interactions with apparently gullible reporter Jenny Anderson. "She was receptive."

In response to van Praag's email, Blankfein wrote, "Of course we didn't dodge the mortgage mess. We lost money, then made more than we lost because of shorts."

This is the same Lloyd Blankfein who testified years later in the Senate: "We were not consistently or significantly net-short the market in residential mortgage-related products in 2007 and 2008."

He added, "We didn't have a massive short against the housing market, and we certainly did not bet against our clients."

When Sen. Levin heard Blankfein say he didn't have a "massive short" during 2007, he was furious. "Heck, yes, I was offended," he told Rolling Stone. "Goldman's CEO claimed the firm 'didn't have a massive short,' when the opposite was true."

We know the "opposite was true" because of the extensive email record these arrogant yutzes left behind. One of the smoking guns involved Cohn. On July 25, 2007, Viniar sent Cohn an email pointing out the huge losses and writedowns that other banks were experiencing.

"Tells you what might be happening to people who don't have the big short," Viniar told Cohn.


In the heat of the meltdown, there was some gallows humor between Cohn and Blankfein. At one point the two men seemed to be trying to figure out where they were with their mortgage strategy, and what to do going forward. "We are marking both sides," Cohn says. "There is a net short."

"Bet all the dads at camp are talking about the same stuff," Blankfein joked.

Goldman's higher-ups ended up having a great year. While the whole financial world was collapsing due in large part to behaviors like that of his own bank, Blankfein made $68.5 million, a record for a Wall Street executive. Cohn made $67.5 million. The two were the McGwire and Sosa of the profiting-off-others'-misery era. The bank, meanwhile, would lay off 3,200 lower-level employees within a year.

Goldman probably should have gone out of business in 2007-2008. Two little-discussed acts of government welfare in September of 2008 helped save the company.

First, there was the infamous emergency granting of Commercial Bank Holding Company status to Goldman. Have you ever seen a Goldman branch or a Goldman ATM? Probably not, because it isn't a commercial bank. But on September 21st, 2008, the government gave it permission to call itself one.

This move, so desperately needed that it was executed on a Sunday night, allowed Goldman access to mountains of life-saving cash from the Federal Reserve.

The other key move was a decision by the SEC to ban short-selling of financial stocks. This nakedly anticapitalist maneuver allowed Goldman to fend off attacks by speculators who correctly sensed the company was in deep trouble.

Apart from the SEC order, major shareholders like pension funds in New York and California also agreed to stop lending shares of Goldman and Morgan Stanley to short-sellers, essentially protecting these two banks in particular from the forces of the market. Notably, they were the two top-five investment banks that survived 2008.

Blankfein was initially opposed – "I'm for markets," he reportedly said – but as things worsened, he agreed with Morgan Stanley chief John Mack that they needed their government Daddy to save them.

"You're right. We have to do something about this," he said. He later called the decision "tricky."

Yet even with the SEC ban on short-selling, Goldman's stock price continued to plunge, from $207.78 in February 2008 to $47.41 in November. Cohn claims not to have been worried. "It wasn't scary at all," he said.

Vanity Fair found a colleague who scoffed at Cohn's assessment. "Complete and utter nonsense," the person said. For all their brains and humility, these geniuses needed the government to halt the free market on their behalf to survive.

Goldman deserves its villainous reputation. The bank symbolizes all the worst aspects of the modern "financialized" economy. The crash era was the ultimate example.

Banks like Goldman mostly didn't create anything of value during this time. Mostly what they did was engineer new ways to create credit that led to millions of people buying homes they couldn't afford, creating the mother of all financial bubbles.

When it all went bust, as it necessarily had to, they scrambled by hook or crook to dump the damage on other people. Clients ate their losses and they ran weeping to the taxpayer for rescue – Goldman got $12.9 billion alone just from the AIG bailout, which of course was engineered by former Goldman chief Hank Paulson. In the middle of all of this, people like Blankfein and Cohn paid themselves record amounts of compensation. They are scum, and it's absolutely fitting that so many of them will end up serving the Trump administration.

Donald Trump made a lot of political hay out of the iniquity of people like Cohn during his campaign. But his recent appointments are absolute proof that his "populist" message was a crock all along – not that we couldn't have guessed anyway.


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The Marijuana Industry Needs to Stand Up to Jeff Sessions Print
Sunday, 18 December 2016 14:31

Halperin writes: "Initially, President-elect Donald Trump's surprise win didn't seem to pose an immediate threat to the legal pot industry; Trump isn't popular in the cannabis world, but he's not seen as a committed prohibitionist either. That outlook changed after Trump picked Sen. Jeff Sessions, an Alabama Republican, as his nominee for attorney general."

US Senator Jeff Sessions of Alabama. (photo: Jewel Samad/AFP/Getty Images)
US Senator Jeff Sessions of Alabama. (photo: Jewel Samad/AFP/Getty Images)


The Marijuana Industry Needs to Stand Up to Jeff Sessions

By Alex Halperin, Slate

18 December 16

 

It’s finally large enough to wage a political fight. Instead it’s choosing cowardice.

n Election Day, California voted to become the world’s largest legal marijuana market, and seven more states also voted yes on recreational or medical pot. Initially, President-elect Donald Trump’s surprise win didn’t seem to pose an immediate threat to the legal pot industry; Trump isn’t popular in the cannabis world, but he’s not seen as a committed prohibitionist either. At a post-election industry conference in Vegas, the largest controversy involved a nearly naked model covered in cold cuts.

That outlook changed after Trump picked Sen. Jeff Sessions, an Alabama Republican, as his nominee for attorney general. While many conservatives have relaxed their views on both marijuana and criminal penalties for drug offenses, Sessions evidently has not. “We need grown-ups in charge in Washington saying marijuana is not the kind of thing that ought to be legalized,” he said at a hearing in April. “It is in fact a very real danger.”

To liberals, the Sessions nomination is, as the New York Times editorialized, “an insult to justice.” Sessions had been rejected for a federal judgeship in 1986 due to concerns that he’s a racist. His nomination in 2016 to the far more powerful position of attorney general raised an immediate outcry from, among others, those concerned with treatment of undocumented immigrants, the rights of LGBTQ and Muslim Americans, and supporters of criminal justice reform and police accountability.

The legal marijuana industry, which is anticipated to top $6 billion in sales this year, also has reason to fear Sessions, but its response has been much more muted. The National Cannabis Industry Association, the industry’s largest lobby, released a statement saying that it looked forward to working with Attorney General Sessions. They think it’s safer to weather his tenure at the Justice Department than to fight it.

After the nomination, the pro-pot activist Tom Angell told BuzzFeed, “From a political lens, I think reversing course on [marijuana] and trying to shut down broadly popular state laws, that’s going to be a huge distraction from all the other things they care a lot more about,” Angell said. “It’s a fight that they don’t want to pick.” Put another way: Marijuana proponents believe that President Trump and Attorney General Sessions will be too busy tracking Muslims and deporting noncitizens to go after state-legal pot, which also happens to be more popular than not among Republicans. The industry expects the more vulnerable populations to function as its human shields.

The position seems even more cowardly and hypocritical when you consider that as long as marijuana is federally illegal, the industry profits from laws that are selectively enforced. By not standing up to Sessions—who has recently criticized President Obama for commuting the sentences of too many drug offenders—the industry is effectively endorsing the position that marijuana should still destroy Americans’ lives, whether by incarceration or through the hardships of having a criminal record.

Cannabis executives would rather see almost anyone other than Jeff Sessions as attorney general. In off-the-record conversations I’ve had with executives, they say they are torn about whether to fight the nomination—the pro-legalization group Drug Policy Alliance has vocally opposed him—but as a whole, the community has adopted the National Cannabis Industry Association’s view. Aside from its moral cowardice, this head-in-the-sand strategy could prove catastrophically stupid.

The industry is content to sit the Sessions fight out because it arguably is in a strong position. A majority of states have legalized medical marijuana in some form, and now almost 70 million Americans live in fully legal states. To attack legal marijuana, the Sessions Justice Department would have to defy state governments that have worked to regulate weed and now benefit from the taxes it generates.

Plus, pot is popular. A majority of Americans now support full legalization, up from about 25 percent 20 years ago. In Florida last month, medical marijuana won more than 70 percent of the vote; Trump garnered less than 49 percent.

Even so, the industry is uniquely vulnerable. California voters legalized medical use in 1996, but the modern industry’s legal foundation is a short 2013 document by then–Deputy U.S. Attorney General James M. Cole. The industry interpreted the “Cole Memo” as saying the federal government won’t interfere with state-legal businesses as long as they respected several important guidelines, such as keeping legal pot away from kids and organized crime.

That is essentially what has happened. Running a legal marijuana company is a complex endeavor, and plenty of them fail, but since 2013, state-legal owners have been relatively confident that the Drug Enforcement Administration won’t bang down the door and present them with federal drug trafficking charges. If it begins to look like that will change, the industry could collapse from a mass exodus of managers and workers.

There is nothing to stop the Sessions Justice Department from interpreting the Cole Memo differently or just scrapping it. So, by accepting Sessions as attorney general, the marijuana industry, no matter how popular it is, or how big it grows, is at the mercy of Sessions—a man who recently said that “good people don’t smoke marijuana”—and Donald Trump.

The industry deserves much of the credit for how smooth the transition to legal weed has been, but it’s still one stoned school bus driver away from a PR disaster. While Trump has been fairly consistent in his support for medical use, the industry could also be an easy scapegoat to blame for, say, low test scores. Or maybe President Trump will decide to award cannabis concessions to his loyalists on very favorable terms. Those aren’t scenarios where you want to be scrambling for friends in Congress.   

There is instead a powerful argument for action when the industry has political capital and so much about the coming administration is unknowable. On Capitol Hill, Sessions’ approval is considered a foregone conclusion, but the conventional wisdom hasn’t had a good year. For the nomination to fail, it’s likely that a handful of Republicans would have to dissent. There are now 58 senators representing states that have legalized in some form, including quite a few with at least one Republican senator. In places like Colorado, the industry is an important part of the economy and a substantial source of jobs. In other states that have legalized, but don’t yet have developed markets, it could deliver jobs and tax revenue. There are a lot of themes for marijuana proponents to leverage.

Even if the industry can’t topple Sessions, it would benefit from senators asking tough questions during the confirmation hearing. If Sessions were to say that the Justice Department will respect state marijuana laws, the industry would then be positioned to push for its other legislative priorities. If the industry doesn’t use this opportunity to extract concessions or clarity, why would Sessions make them after he has won?

This week, the DEA, which is part of the Justice Department, clarified that marijuana extracts containing cannabidiol, a nonpsychoactive chemical found in marijuana that’s associated with many of its medical benefits, are illegal. The move suggests that the DEA doesn’t consider legalization a settled matter. The Cannabis Business Association called the development “irrational and irresponsible.”

But senators could be more receptive. At the moment, Democrats tend to be more favorable to legalization than Republicans, but that could change. Industries with important similarities to marijuana, such as alcohol, tobacco, and agriculture, all lean Republican in their campaign contributions. Big Pot is hungry for legitimacy and doesn’t much care which party bestows it.

Finally, opposing Jeff Sessions would be good for the industry’s image, at least in the blue and purple states it currently cares about. Cannabis executives love pontificating on the evils of the war on drugs; but while they might be on the right side of history, everywhere the industry arrives it faces criticism for greed and opportunism, compounded by distrust of its product and the people who sell it.

Big Weed wants to be everywhere booze is: Super Bowl commercials, ladies nights out, family BBQs. The fastest way to make that happen is with public support. By taking on Sessions when it has the opportunity, it could rebrand itself as an industry that stands for more than its own profits, even if it doesn’t.


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Europeans Debate Nuclear Self-Defense After Trump Win Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=26591"><span class="small">Der Spiegel</span></a>   
Sunday, 18 December 2016 14:29

Excerpt: "For decades, American nuclear weapons have served as a guarantor of European security. But what happens if Donald Trump casts doubt on that atomic shield? A debate has already opened in Berlin and Brussels over alternatives to the U.S. deterrent."

A British nuclear submarine near Scotland (photo: DPA/BRITISH MINISTRY OF DEFENCE)
A British nuclear submarine near Scotland (photo: DPA/British Ministry of Defence)


Europeans Debate Nuclear Self-Defense After Trump Win

By Der Spiegel

18 December 16

 

For decades, American nuclear weapons have served as a guarantor of European security. But what happens if Donald Trump casts doubt on that atomic shield? A debate has already opened in Berlin and Brussels over alternatives to the U.S. deterrent.

he issue is so secret that it isn't even listed on any daily agenda at NATO headquarters. When military officials and diplomats speak about it in Brussels, they meet privately and in very small groups -- sometimes only with two or three people at a time. There is a reason why signs are displayed in the headquarters reading, "no classified conversation."

And this issue is extremely sensitive. The alliance wants to avoid a public discussion at any cost. Such a debate, one diplomat warns, could trigger an "avalanche." The foundations of the trans-Atlantic security architecture would be endangered if this "Pandora's box" were to be opened.

Great Uncertainty

The discussion surrounds nuclear deterrent. For decades, the final line of defense for Europe against possible Russian aggression has been provided by the American nuclear arsenal. But since Donald Trump's election as the 45th president of the United States, officials in Berlin and Brussels are no longer certain that Washington will continue to hold a protective hand over Europe.

It isn't yet clear what foreign policy course the new administration will take -- that is, if it takes one at all. It could be that Trump will run US foreign policy under the same principle with which he operates his corporate empire: a maximum level of unpredictability.

With his disparaging statements during the campaign about NATO being "obsolete," Trump has already created doubts about the Americans' loyalty to the alliance. Consequently, Europe has begun preparing for a future in which it is likely to have to pick up a much greater share of the costs for its security.

But what happens if the president-elect has an even more fundamental shift in mind for American security policy? What if he questions the nuclear shield that provided security to Europe during the Cold War?

For more than 60 years, Germany entrusted its security to NATO and its leading power, the United States. Without a credible deterrent, the European NATO member states would be vulnerable to possible threats from Russia. It would be the end of the trans-Atlantic alliance.

Could the French or British Step In?

In European capitals, officials have been contemplating the possibility of a European nuclear deterrent since Trump's election. The hurdles -- military, political and international law -- are massive and there are no concrete intentions or plans. Still, French diplomats in Brussels have already been discussing the issue with their counterparts from other member states: Could the French and the British, who both possess nuclear arsenals, step in to provide protection for other countries like Germany?

"It's good that this is finally being discussed," says Jan Techau, director of the Holbrooke Forum at the American Academy in Berlin. "The question of Europe's future nuclear defense is the elephant in the room in the European security debate. If the United States' nuclear security guarantee disappears, then it will be important to clarify who will protect us in the future. And how do we prevent ourselves from becoming blackmailable over the nuclear issue in the future?"

An essay in the November issue of Foreign Affairs argues that if Trump seriously questions the American guarantees, Berlin will have to consider establishing a European nuclear deterrent on the basis of the French and British capabilities. Germany's respected Frankfurter Allgemeine Zeitung newspaper, meanwhile, even contemplated the "unthinkable" in an editorial: a German bomb.

'The Last Thing Germany Needs Now'

Politicians in Berlin want to prevent a debate at all costs. "A public debate over what happens if Trump were to change the American nuclear doctrine is the very last thing that Germany needs right now," says Wolfgang Ischinger, head of the Munich Security Conference. "It would be a catastrophic mistake if Berlin of all places were to start that kind of discussion. Might Germany perhaps actually want a nuclear weapon, despite all promises to the contrary? That would provide fodder for any anti-German campaign."

The debate however, is no longer relegated the relatively safe circles of think tanks and foreign policy publications. In an interview that gained attention internationally in mid-November, Roderich Kiesewetter, the chairman for the conservative Christian Democrats on the Foreign Policy Committee in German parliament proposed a French-British nuclear shield in the event Trump calls into question American protection for Europe. "The US nuclear shield and nuclear security guarantees are imperative for Europe," he told Reuters. "If the United States no longer wants to provide this guarantee, Europe still needs nuclear protection for deterrent purposes."

Last weekend, Angela Merkel's chief of staff, Peter Altmaier, said in an interview that providing a nuclear shield for Europe was in America's "security policy interest." Besides, he said, "two EU member states possess nuclear weapons."

Unpopular and Politically Explosive

Kiesewetter argues that Europe must prepare for all eventualities. "There can be no limits placed on our security debate," he says. The CDU security policy expert is a former colonel in the German armed forces and also did stints at both NATO headquarters in Brussels and at the alliance's military headquarters in Mons, Belgium. After Trump's election, he spoke not only to French and British diplomats, but also explored views within the German government.

He says he spoke with Christoph Heusgen, Merkel's security adviser, and with Defense Ministry Policy Director Gésa von Geyr. Kiesewetter says the issue is not one that either the Chancellery or the Defense Ministry is taking up. At the same time, he says, he also didn't get the impression that his ideas had been dismissed as fantasy either.

It's understandable that the German government wants to quickly end the debate. The issue is politically explosive and would also be highly unpopular. In polls, more than 90 percent of Germans have opposed the idea of Germany possessing its own nuclear bomb. The American nuclear shield has so far offered Germans the luxury of standing on the right side of the moral debate even as Washington guarantees their security.

'The Wrong Message'

Officials in Brussels also aren't thrilled by the statements coming out of Berlin. "The fact that these considerations have been made public is deeply concerning," a diplomat representing one NATO member state says. "It would send the wrong message to America but also the grotesquely wrong message to Russia," says Ischinger. He warns that the message cannot be sent to Washington that Europe is in the process of exploring alternatives to the American protective shield.

But military officers and diplomats are addressing the issue inside NATO headquarters. One diplomat says that these ideas have been circulating "informally and off-the-record" inside NATO headquarters for a few months now. "The statements made by Mr. Kiesewetter reflect the concerns that exist everywhere in Europe over what Trump's inauguration will mean for US engagement and its strategy on nuclear deterrent."

On the nuclear question, Trump has attracted attention primarily for off-the-cuff remarks he made during the campaign. "If we have nuclear weapons, why can't we use them?" he allegedly said during a foreign policy briefing in the summer.

During the campaign, he also toyed with the idea of eliminating the US nuclear shield that provides protection to Japan and South Korea. Essentially, he bluntly suggested that the two Asian nations ought to develop their own nuclear weapons. Europeans have worried ever since that a similar threat could be directed at them.

Such comments come at a time when Moscow is more focused on its role as a nuclear power than it ever has been since the end of the Cold War. Like the United States, Russia is currently in the process of modernizing its nuclear arsenal. For a few years now, veiled threats about Moscow's nuclear arsenal have become part of the standard repertoire in President Vladimir Putin's rhetoric.

The British and French Deterrents

Europe would face very high hurdles if it sought to create its own nuclear shield. Why would Britain, currently in the process of leaving the European Union, even agree to it? And why would the French give the Germans any say when it comes to their Force de Frappe deterrent? Both have allegedly declined to consider the notion in initial probes in Brussels. But there's yet a bigger issue. Even if they were to cooperate, would the nuclear arsenal held by European nuclear powers even be sufficient to guarantee a nuclear deterrent?

Likely, yes. Taken together, Britain and France may only have 10 percent as many nuclear weapons as the Americans, but their second-strike capability is strong enough to effectively deter potential attackers.

The nuclear shield the United States has created for NATO member states is comprised of two components: The strategic element consists of hundreds of intercontinental ballistic missiles, a massive bomber fleet and around a dozen Ohio-class submarines. Each submarine has over 20 Trident II (D5) missiles with multiple warheads at its disposal.

The tactical element specially designed for a European theater of war is comprised of a little more than 180 B61-3 and -4 aircraft-carried missiles that are stationed at six air bases in five different NATO member states. Up to 20 nuclear bombs are stored in the village of Büchel, Germany, deployable on German Tornado fighter jets.

Together, France and Britain have around 450 nuclear warheads. France uses four strategic ballistic missile submarines, with each capable of carrying 16 missiles with four to six multiple warheads. The country also has around 50 nuclear strike-capable Mirage 2000N and Rafale fighter jets that are each equipped with nuclear-armed cruise missiles.

Britain has four strategic Vanguard-class missile submarines that also hold Trident II (D5) missiles that can carry up to 160 nuclear warheads. Technologically, however, the British are dependent on the Americans.

'Sufficient for Defending Germany'

"Viewed entirely from a military perspective, the nuclear weapons held by France and Britain would likely be sufficient for defending Germany," says the American Academy's Techau. The fact that they don't have the same number of nuclear weapons as Russia doesn't really matter. "The second-strike capability, which is decisive for deterrence, exists."

Politically, though, things get more complicated. France has always viewed its nuclear capability as a national asset and has never placed its weapons under a NATO mandate. It coordinates with Brussels, but would decide independently of the alliance on any potential deployment of its nuclear weapons.

Even during the Cold War, several political efforts were made to establish German-French nuclear cooperation, but nothing ever came of them.

Chancellor Konrad Adenauer and Defense Minister Franz Josef Strauss had hoped to work together with Paris. But Charles de Gaulle immediately halted the secret project as soon as he was elected in 1958.

Later, two years after he got voted out of office, former German Chancellor Helmut Schmidt of the center-left Social Democrats (SPD) also proposed a deal. He suggested that France expand its nuclear deterrent to include Germany. In exchange, West Germany would offer its "capital and financial strength" in order to help finance the French nuclear weapons program.

France Shunned Germany

Helmut Kohl, who was chancellor at the time, dismissed the idea as an "intellectual gimmick." A secret protocol dating from December 1985 -- and only made public at the beginning of this year -- showed why Kohl's distrust had been justified. In it, French President François Mitterrand admits to Kohl that France would be unwilling to "provide Germany with nuclear protection." He said France's nuclear potential could only serve to protect "a small territory" -- in other words, France. If Paris were to extend its protection, the French leader said, it would expose his country to a "lethal threat." In other words, Mitterrand did not want to risk dying to defend Germany.

Even if France were to change its position, it would be tricky under international law for Germany to participate militarily in a European nuclear shield. Whether or not Germany's participation in NATO's nuclear shield is permitted under international law has already been the subject of considerable debate. An actual German bomb would violate the terms of both the Nuclear Non-Proliferation Treaty (NPT) and the Two Plus Four Agreement, the treaty which resulted in Germany's reunification.

By becoming a signatory to the NPT in 1975, the Germans committed "not to receive the transfer from any transferor of nuclear weapons or other nuclear explosive devices or of control over such weapons or explosive devices directly, or indirectly." During negotiations over German reunification in 1990, then-Chancellor Kohl also affirmed Germany's "renunciation" of the manufacture, possession and control of nuclear weapons. The provision became an integral part of the Two Plus Four Agreement.

A European Nuclear Power?

But the Germans always left a few loopholes open. In diplomatic notes attached to German NPT ratification documents, the government in Bonn stated at the time it had signed it "convinced that no stipulation in the treaty can be construed to hinder the further development European unification, especially the creation of a European Union with appropriate capabilities." Wolfgang Mischnick, parliamentary floor leader of the Free Democratic Party, which shared power with Kohl's Christian Democrats at the time of reunification, publicly clarified what that meant during a session of the Bundestag on February 20, 1974: "It is still possible to develop a European nuclear power," he said.

Forty years later the issue is actually now being raised for the first time. With it also comes the question of the degree to which Europeans actually trust each other. The real test will come if the United States decides to withdraw its nuclear support from Europe. Then Europeans would be forced to ask whether Paris and London were prepared to guarantee security for Germany and other Europeans. And also: Would Germans place their trust in a nuclear shield provided by their European partners?

For France, which always found Europe's reliance on NATO to be suspect, a European nuclear shield could also present an opportunity. A nuclear arsenal under French leadership, but large parts of which were financed by the Germans, would place the economically weakened country in a dominant position in terms of European security.


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