The Eleventh Commandment

“Don’t get found out” is the Eleventh commandment. In private life, men and women all too often get themselves into difficulties by breaking it. The breach will cause embarrassment, occasionally family break-up and perhaps a prison sentence but the glare of media publicity is unlikely. However, when people in public life break the Eleventh and are caught out, the heavens open as the media descends, eager to reveal people’s weaknesses.

Four years ago, Virginia governor Bob McDonnell was selected to give the Republican response to President Obama’s 2010 State of the Union address. Just eighteen months back, McDonnell’s rapid rise accelerated when he was tipped for the Vice-Presidential spot on the 2016 national election ticket. However, he now faces federal corruption charges, along with his wife, Maureen. A few weeks ago, the wheels fell off the McDonnell bandwagon as evidence emerged of a murky relationship with a wealthy Virginia businessman. Allegedly, it’s the old story of a politician crossing the line when wealthy donors help in an election and offer the politician a dream life style financed by suspect funds. The American media headlined the story for days.

Of course, McDonnell is not the only politician currently in the firing line. Chris Christie is caught up in a scandal concerning the lane closures on the George Washington Bridge. Criminal investigations continue against Christie aides and David Wildstein, a former aide and friend, has alleged that Christie knew of the plot before the event. Christie, of course denies this and Wildstein, who will probably be charged with a crime, may be just trying to save his skin. Whatever, the front runner in the race for the Republican presidential nomination in 2016 has fallen and the media is enjoying the schaudenfreude.

As prosecutions of politicians make such juicy news, I researched the post-WW2 record of federal legislators, senior members of the judiciary and senior federal administrators who broke the Eleventh and were convicted of crimes involving corruption. Considering the number of careers entailed over this period, there have been comparatively few prosecutions and, save for a few instances, there is little or no connection between those convicted and the President they served. The current and previous presidents’ records are interesting.

The Obama administration record is not unblemished. So far six men are in the frame including Jesse Jackson Jr., (D-IL) who pleaded guilty to wire and mail fraud. Louisiana Federal Judge Thomas Porteous (D), a Clinton appointee, was impeached, convicted and removed from office on charges of bribery and lying to Congress.

Obama’s predecessor, George W. Bush, faced a White House scandal which went all the way to Vice President Dick Cheney’s office. Lewis ‘Scooter’ Libby, Cheney’s Chief of Staff, was convicted of perjury and obstruction of justice in the Valerie Plame affair. Libby was sentenced to 30 months in prison and fined $250,000. His sentence was commuted by President Bush.

During the same presidency, master-lobbyist Jack Abramoff’s was convicted of attempting to influence Congressional action concerning U.S. immigration and minimum wage laws. Several Congressmen were convicted in the scandal, including Bob Ney (R-OH) for conspiracy and making false statements, as a result of his receiving trips from Abramoff in exchange for legislative favors.

The Abramoff scandal has not resulted in a reduction of lobbying influence. Lobbying remains a sore in Washington. It remains the major business of the city, not legislating.

Since the 1970s, three presidents have had to face the full glare of the media as a result of falling foul of the Eleventh. Nixon resigned over the Watergate affair to escape a Senate trial after the House had impeached him. Clinton faced the ordeal of a Senate trial after he was impeached for lying. The lie related to conduct in his private life, whereas Nixon covered up and lied blatantly about the dirty tricks practised by his people. Interestingly, several of Clinton’s Republican prosecutors admitted to affairs in their private lives during the Senate trial.

Ronald Reagan, who still rates highly as one of the most effective presidents, was very lucky to escape impeachment. He broke Acts of Congress in the scandal known as Irangate and lied about it. Just read the Tower Report and Reagan’s subsequent apology:

“A few months ago, I told the American people I did not trade arms for hostages. My heart and my best intentions tell me that’s true………..but the facts and evidence tell me it is not. There are reasons why it happened but no excuses. It was a mistake.”

There was no political will to impeach this very popular president.

Looking at the three “impeachments”, I conclude that the process is more political than legal. But what stands out in my memory is the almost total paralysis of the US government as the scandals were played out in the media and Congressional hearings. For the time being, those who revel in the excitement of seeing political mucky-mucks brought to justice, will have to rely on the prosecutors picking the lower branches of the scandal tree. Currently, there is nothing alleged against President Obama and his colleagues to suggest any of them have fallen foul of the Eleventh Commandment.

But in America, one never knows, until the fourth estate goes public.

Chutzpah!

The nearest English translation of the Yiddish word, “Chutzpah”, is unmitigated gall. The translation does not do justice to the Yiddish expression. It is usually accompanied by histrionics suggesting disgust, dismay and derogatory views of the action taken by the person at whom the word is thrust. There is an old joke. A teenager murders both his parents and throws himself on the mercy of the court, pleading that he is an orphan. Now that’s chutzpah!

This morning, I use the word to describe the actions of the Republican leadership of the House of Representatives. Just a few weeks ago, Congress approved the increased US government S1.1 trillion budget for 2014. Let me make it clear: the Republicans in both the House and Senate supported the measure.

My blog of January 19^th set out the important changes to the tax structure. I wrote: “It ought to follow that the US government spending limit will be raised without condition because the Republicans have agreed new spending initiatives.”

According to most polls, the blame for the government closure last year was fixed on the Republican Party, or to be more accurate, its right wing. Therefore, it ought to be reasonable to conclude that the US debt limit, which must be approved by Congress, would be raised to meet the expenditures that Congress has voted for.

Let me elaborate. This is not a situation where the White House has power. The Constitution gives power to the legislative branch: “To lay and collect taxes,…to pay the debts…of the United States and to borrow money on the credit of the United States.” All the administration can do is use its power to persuade Congress and the public at large that the debt ceiling should be raised, so that the government can borrow sufficient funds to pay its debts as they fall due. The decision to do so rests with Congress.

What the government currently faces is a cash flow problem. Anyone who has run a business or a home knows that you need ready cash or borrowing facilities to pay bills when they arise. If you don’t pay, there are consequences, including removal of supply of goods and services, not to mention litigation. In the case of a government, failure to pay debts will damage its credit rating and make future borrowing more expensive, as well as bring its reputation into disrepute.

It is not easy to regulate a government’s cash flow. Its revenue arises from borrowing and taxation. Tax money comes in at irregular times and in sums which it cannot predict with absolute accuracy. As the work force and business profits rise and fall, the tax revenue changes. Therefore, it is possible for the government to have sufficient funds one day, followed by a default position the next day, and back in the black the following day, unless it has borrowing facilities to rely on.

In the case of the US, the Treasury has warned that it could start to face payment problems at the end of February. House Majority Leader Eric Cantor (R-VA 7) has scheduled time this week for “possible consideration of the legislation related to the debt limit.” Some House Republicans have said that “possible conditions are under discussion,” including the elimination of military pension cuts, which I would remind you, were agreed by the Republicans in December last year, i.e. just six weeks ago. So, the Republicans might agree to allow the government to pay its debts if the government agrees to increase its spending on military pensions! I thought the Republicans were opposed to increases in government spending.

There are only seven legislative days left before the government might have to default or close down. Surely, the taxpayers haven’t voted for this kind of grandstanding. Congress has already approved the expenditure which the administration has to make next month. It really has to stop politicising the debt ceiling issue and do the job it is meant to do.

If Congress fails to legislate on the debt ceiling, causing the government to shut down again, I trust the voters remember this next November. In the meantime, I hope I have persuaded you that the actions of the House Republicans come within the definition of chutzpah!

The State of the Union Revisited

Biden and Boehner. 

I stayed up in the small hours of Wednesday morning to watch President Obama deliver his State of the Union message. It is a splendid occasion. The Chamber of DC’s House of Representatives and its members play host to the Senate, the Supreme Court Justices, the army, navy, air force and marines Chiefs of Staff, members of the cabinet (bar one) and senior members of the administration. In the gallery the First Lady and Mrs Biden are with many invited guests, some of whom get a mention from the President.

The event may not have the pomp and circumstance of the British Opening of Parliament ceremony but what it lacks in colourful show it makes up in American hoopla. The facial expressions of Vice President Biden and Speaker Boehner were amusing, a sort of Tweedle Dum and Tweedle Dee as good news for one meant bad news for the other.

The President’s entrance is like that of a prize fighter as the entire chamber stands and provides a standing ovation. This year, Mr Obama took a good five minutes to get to the podium. That’s a long time to stand, clapping. One year, I must count the number of times during the speech that legislators and others rise to applaud something said. Of course, roughly half the chamber stays seated and doesn’t applaud at all. It looks really odd. The speech always contains references to the military, always complimentary, at which moment all the Joint Chiefs stand, clap and smile. Occasionally the judiciary gets a mention but the justices never rise. Presumably there’s a legal precedent requiring them to stay seated.

The speech itself could be equated to a diplomatic declaration of war. The President threatened to veto any legislation which would undermine negotiations with Iran! I assume that implies the talks are going well? Syria hardly got a mention. So, genocide is okay? As for the economy, the President laid his cards on the table. Executive orders will be the dish of the day if Congress can’t get it together. Mr Obama mentioned specifically raising the minimum wage and Myra, i.e. “my Retirement Account”, an initiative where savings will be treated like IRAs for tax and “guaranteed” by having the funds invested in US government bonds. CEOs will be pressured to end discrimination against the long-term unemployed. And so it went on, with the President announcing measures that had already been tabled, for example limits on carbon pollution from power plants.

I confess that I am an Obama fan when it comes to speeches. He is a great orator and sometimes becomes folksy. That would woo anyone. However, the style of the speech cannot cover the lack of substance. The President knows this year is his last hurrah, the final chance to change for the better lives of ordinary Americans. Too soon, he will find the nation embroiled in November’s mid-terms and his presidency descend into two years of lame-duck, if his ratings aren’t there already. One wonders if the Framers of the Constitution would like the kind of politics coming from Washington?