Freedom Line Blog

With the unwashed masses “occupying” Wall Street and other financial centers throughout the country, Community-Organizer-in-Chief Barack Obama is trying to convince the protesters of crony capitalism that their grievance is really his.  From today’s Wall Street Journal:

Asked about the demonstrations that have spread to cities across the U.S., Mr. Obama empathized with protesters’ frustrations without embracing the movement: “The American people understand that not everybody has been following the rules; that Wall Street is an example of that.”

Haven’t been following the rules? How’s this for a list of people not following the rules:

• Treasury Secretary Timothy Geithner fails to pay federal income taxes while working at the taxpayer-supported International Monetary Fund

• Health and Human Services Secretary Kathleen Sebelius grants over 1,000 ObamaCare waivers – many of them to unions

• Energy Secretary Steven Chu rubber stamps another taxpayer subsidy to Solyndra after the company defaulted on a $535 million loan (the company couldn’t get sufficient venture capital funding but did grease the skids to get taxpayer money thanks to an Obama fundraiser – who was also an investor – pulling strings)

• Attorney General Eric Holder lies to Congress about allowing a criminally stupid ‘gun-walking’ program at ATF to continue that sends 2,000 guns to Mexican drug cartels, killing a Border Patrol Agent

• Education Secretary Arne Duncan violates the No Child Left Behind law by unilaterally issuing waivers that require recipients to accept White House dictated regulations that cannot get through Congress – an unheard of abuse of the waiver process

I could go on, but I think the point is made.  The American people are viscerally aware of a politically connected elite waging war on the rule of law.  But it’s the Tea Party, not those squatting outside America’s nodes of commerce, that has identified the biggest threat to prosperity.  It’s time to occupy the White House and the Cabinet with people who not only respect the law, but also know how to grow the economy in a real, free market fashion.

Today marks the release of Moneyball, a movie based on a book based on the true story of how the Oakland Athletics baseball team overcame a chintzy payroll to compete with high-dollar teams.  The book revolutionized the way many people think about baseball (and management in general) because of the A’s innovative use of player’s statistical data.

Today also saw top executives from Solyndra stonewalling Congress over how the company went from $535 million in federal subsidies to bankruptcy in less than three years.

Nine years after Moneyball was published – and eight years after Major League Baseball started testing for steroids – the A’s success tapered off in relation to falling production of steroid using players like Jason Giambi, Miguel Tejada, and others.  (National Review’s Neil Minkoff has the details here.)

So, despite the A’s perceived use of a superior technology, it looks more and more like they benefited from their proximity to the steroid capital of baseball: the San Francisco Bay Area (remember the Giants’ Barry Bonds?)

Something similar happened with Solyndra.  When the company’s solar technology was new it looked like the magic bullet for the “green economy,” so much so that investors and the Obama Administration threw caution to the wind, funded a fantasy, and put taxpayers on the hook for half a billion dollars.

The A’s only lost games and perhaps some credibility after their more-than-meets-the-eye initial success.  American taxpayers are losing their collective shirt with bad bets on Keynesian stimulus and market-distorting subsidies.  A’s fans might want to get new management.  Americans should demand it.

The ATF’s “Project Gunrunner” and “Operation Fast and Furious” scandals continue show a cover-up by high-ranking officials in Eric Holder’s Department of Justice.  The most recent revelation was the emergence of tapes secretly recorded by an Arizona gun dealer who grew suspicious of ATF’s ability to intercept guns deliberately sold to Mexican drug cartels.

Howard made the tapes in March 2011 after a meeting he and his attorneys held with federal officials. In that meeting, Assistant U.S. Attorney Emory Hurley continued to insist the guns Lone Wolf sold were stopped and seized before reaching Mexico.

But ATF officials are quoted in a Washington Post article and the Spanish language daily La Opinion saying just the opposite — blaming Lone Wolf for “selling guns to the cartels” with no mention that Howard was operating under the federal government’s direction, encouragement and approval.

In related news, the Mexican government is seething because ATF brass and supervisors at Justice chose not to inform relevant officials of the gun-walking program.  After learning of the operation from news reports following Border Agent Brian Terry’s murder, the Mexican Attorney General said, “In no way would we have allowed [the selling of guns to drug cartels], because it is an attack on the safety of Mexicans.”

And an affront to American integrity as well.

The web of possible criminality in the ATF “gun-walking” case i still stretching with a Fox News story confirming the existence a second and third ATF gun at the murder scene of Border Patrol Agent Brian Terry.

Congressional investigators have been looking for evidence of the third weapon for months.  Now, it looks like it disappeared at the behest of the FBI for fear that an informant working for it and ATF would be exposed.

This revelation follows on the news that ATF and the FBI coordinated efforts on other dubious programs that allowed guns to reach known criminals.

There seems to be no end to the incompetent corruption at Eric Holder’s Justice Department.  Can the same indefinite tenure be true of the Attorney General?

There’s been quite a bit of media buzz surrounding the recently announced bankruptcy of Solyndra, the California solar panel company that couldn’t turn a profit even after a $535 million loan from the federal government.

But what started out as Exhibit A in the case against subsidizing green jobs into existence has morphed into the latest scandal engulfing the Obama Administration.  At issue is a suspicious connection between a Solyndra investor’s work as a bundler for the Obama campaign and the sweetheart loan given to the company.

On Wednesday, the FBI raided Solyndra’s Fremont, California headquarters, and Republicans are promising increased scrutiny.  It would be bad enough if there is a pay-to-play scandal, but it’s even worse financially since the failure of Solyndra is both corrupt and incompetent.

David Codrea, the blogger who originally broke the “Gunrunner” scandal at ATF, reports that another guns-to-criminals scheme is sprouting up in Indiana.

There, a gun seller defended himself recently against an FBI demand for information about guns sold to American crime gangs with all-too-familiar response: I was just following ATF’s guidelines.

That’s right, according to Codrea’s extensive documentation there is now another instance of ATF deliberately violating gun control laws to let weapons fall into criminal hands in the hopes of catching bigger criminal fish.  And how’s this for oversight: when the FBI was told the Indiana gun dealer was working with ATF, the FBI promised to remove the seller from any further investigation.

Add the American Midwest to the list of ATF scandals including Phoenix, AZ, (Project Gunrunner, Operation Fast & Furious) and Tampa, FL (Operation Castaway).

Last week the Acting ATF director was reassigned and the Arizona U.S. Attorney abruptly resigned.  With a third front opening up, how much longer can U.S. Attorney General Eric Holder – the man charged with oversight of ATF – keep his job?

H/T: Michelle Malkin

George Soros, the leftwing hedge fund billionaire and part-time Hungarian Bond villain, announced last week he’s opting out of the regulatory straitjacket he demanded of his industry.  Taking advantage of a little-known loophole in the Dodd-Frank financial “reform” law, Soros is evading the kind of “transparency” he championed for others.

Per Michelle Malkin:

Under Title IV of Dodd-Frank, hedge funds were required to abide by new registration and reporting requirements in an attempt to better police systemic risk (not that the feckless Securities and Exchange Commission has ever been able to fulfill that mission). To evade the regulations, Soros and other firms have used a recently passed rule allowing so-called family offices to shield themselves from both registration and disclosure rules that would have subjected Soros Inc. to a new “Financial Stability Oversight Council.”

But what would Soros want to hide?  More Malkin:

Soros and his family shelled out $250,000 for Obama’s inauguration, $60,000 in direct campaign contributions and untold millions more to liberal activist groups pushing the White House agenda.

…

Over the past year, Soros provided coveted support for Obama and the Democrats’ Byzantine financial “reforms” under the sweeping Dodd-Frank law. He preached to financial publications around the world about the need for increased regulatory controls over his industry. And in November 2008, while paying obligatory lip service to concerns about going too far, he submitted a statement to the House Committee on Oversight and Government Reform that recommended: “The entire regulatory framework needs to be reconsidered, and hedge funds need to be regulated within that framework.”

That is, unless you’ve got creative lawyers and a disingenuous president’s ear.

In 2009 and 2010, the news out of Washington was dominated by stories of Congress rushing through legislation without reading it, voting in the middle of the night, and generally disregarding the adjective in the term “representative government.” Perhaps more than the specifics of policies like the stimulus package, Obamacare, and cap and trade, it was this disdain for honest dealing that set the public firmly in opposition to the Pelosi-Reid Congress and precipitated the blowout midterm elections of 2010.

As with most pathologies in American politics, what’s bad in Washington is usually even worse in Sacramento. The Sacramento Bee reports today:

Numerous bills to crack down on California lawmakers have been shelved quietly by the Legislature in recent weeks.

Casualties included proposals to bar middle-of-the-night legislative sessions, to restrict lawmakers from receiving pay for serving on state boards within four years of leaving office, and to require annual disclosure by public officials of their pay, benefits, travel and other compensation.

Legislators opted not to dock per-diem pay for absences or to create a “do not call” list for campaign robocalls.

What’s consistently fascinating about California politics is that, for all the dysfunction of state government, the Golden State doesn’t have a criminal political culture akin to Illinois or New Jersey, states where the capstone of a successful electoral career is often a stint in federal prison. And why would it? With six-figure legislative salaries and virtually guaranteed appointments to one of the (literally innumerable) state boards and commissions that act as legislative rest homes, one need not break the law to plunder the taxpayers.

As with most of its deficiencies, California would do well to replicate the example of Texas, a state that has shown that a massive population and a sophisticated economy do not necessitate governmental incompetence. Texas has a part-time legislature that only convenes once every two years. The stated goal of this policy: to protect the liberties of the people of Texas. Considering that Texas has created more jobs in the last five years than every other state combined, that seems to be a decent formula.

The upshot: California can take Texas’s principles or Texas can take California’s jobs. Reforming the way the Golden State’s feckless legislature does business would be a good start towards the former end.

For some reason, the French are trying to maintain a death grip on leading the International Monetary Fund, newly headless after Director Dominique Strauss-Kahn resigned over an alleged sexual assault scandal.  Though Deputy Director John Lipsky, an American, is now serving as the interim head of the IMF, a move is already underway to install France’s Finance Minister Christine Lagarde as quickly as possible.

But not so fast, say a panel of French judges.  They are weighing whether to investigate Lagarde for allegedly intervening in a lawsuit against the government on behalf of a political donor to her party.  The announcement is clouding her candidacy.

First, the French had to endure the hypocrisy of the Socialist Strauss-Kahn staying in a $3,000 a night hotel suite.  (So far, the alleged attack is a lesser blemish in French circles with a majority believing Strauss-Kahn was set up.)  Now, his potential replacement is under fire for crony capitalism.

Is French disdain for America so great that the most obvious replacement is deemed unacceptable for the long-term because he happens to be from the United States?

Ever since its inception, it’s been clear that the waiver program being run by the Obama Administration’s Department of Health and Human Services represents that age-old liberal trend: suffering for thee, but not for me. The waivers allow certain institutions to bypass the onerous requirements put in place by Obamacare. But since they are dispensed according to the whims of the Obama HHS, the recipients tend to be interests favored by the White House — a process that makes a mockery of the rule of law.

A piece in today’s Daily Caller reports yet another suspicious trend:

Of the 204 new Obamacare waivers President Barack Obama’s administration approved in April, 38 are for fancy eateries, hip nightclubs and decadent hotels in House Minority Leader Nancy Pelosi’s Northern California district.

…

Pelosi’s district secured almost 20 percent of the latest issuance of waivers nationwide, and the companies that won them didn’t have much in common with companies throughout the rest of the country that have received Obamacare waivers.

Other common waiver recipients were labor union chapters, large corporations, financial firms and local governments. But Pelosi’s district’s waivers are the first major examples of luxurious, gourmet restaurants and hotels getting a year-long pass from Obamacare.

All hail the Democrats, party of the working man — assuming he works in a San Francisco bistro.

Along with lying about the size of the budget deficit and imposing a steep rise in the car tax, California Governor Gray Davis did something else to guarantee his historic recall: impose a pay-to-play “donation” schedule on groups wanting to do state business.  Want a permit from the Coastal Commission?  How about a government contract to manage welfare cases?

For Davis & Co. there was only one question: How much did you contribute to my campaign?

Former Federal Elections Commissioner Hans von Spakovsky obtained a draft executive order that would implement the substance of the Disclose Act, a bill promising to chill corporate political speech before it was defeated in Congress last year.

According to von Spakovsky, the proposed executive order claims to “increase transparency and accountability,”

Yet this proposed Executive Order would require government contractors to disclose:

(a) All contributions or expenditures to or on behalf of federal candidates, parties or party committees made by the bidding entity, its directors or officers, or any affiliates or subsidiaries within its control.

(b) Any contributions made to third party entities with the intention or reasonable expectation that parties would use those contributions to make independent expenditures or electioneering communications.

In layman’s terms, that means the federal government wants to know which political groups you’ve been giving money to before it will consider awarding a government contract.

In an editorial today, the Wall Street Journal (subscription required) notes that the order exempts federal employee labor unions and the recipients of federal grants, both dues paying members of the Democratic Party.

At the moment, the Right is deploring the president’s last-ditch effort to silence dissenting political views after losses in the courts, Congress, and the FEC.  (Especially since Obama’s executive order specifically targets only those entities most likely to disagree with him.)

However, the Left should be leery of this latest version of gangster government.   There’s only a hair’s breadth of difference between punishing “bad” political expenditures, and demanding “good” ones.  As the deposed Gray Davis showed in California, a government nosy enough to punish its enemies, is a government powerful enough to tax its friends.

The Daily Caller reports that House Government Oversight Chairman Darrell Issa (R-CA) is being ignored by the Bureau of Alcohol, Tobacco and Firearms (ATF) in his demand for documents pertaining to two ATF initiatives: Operation Gunrunner, and Project Fast & Furious.

No, I’m not making this up.  Here’s the thinking behind Operation Gunrunner:

…ATF allowed American guns to be smuggled into Mexico and sold to Mexican drug cartels. The goal of the program was to track the illegal weapons and drug markets after they were used in crimes and abandoned using ballistics information and serial numbers for the guns.

Operation Gunrunner is gaining particular notoriety on Capitol Hill because of the connection between tracked guns and American deaths.  William LaJeunesse of Fox News reported in March that a Gunrunner firearm was linked to the killing of Border Patrol Agent Brian Terry.

At the time, Senator Chuck Grassley (R-IA) complained of “getting the runaround” from the Department of Justice on its partnership with ATF on Gunrunner.  The Department of Homeland Security has also been tied to the scandal.

No wonder.  Whoever thought it would be a neat idea to intentionally sell weapons to drug lords and follow the mayhem should at least be hauled in for a congressional hearing.

Unfortunately, Senator Patrick Leahy (D-VT) won’t allow Grassley to post the latter’s extensive documentation of the operation and cover-up, nor will he commence an investigation.

Enter Darrell Issa.  In his fight for more transparency from the Obama Administration, Issa may have found an out-of-control operation linked directly to deaths stemming from Mexico’s undeclared civil war.

If the revelations about Operation Gunrunner continue their trajectory, it may not be long before commentators see Iran-Contra in a new light.  At least then the federal government was trying to free hostages while supporting anti-Marxist guerillas.

At the rate Senator Claire McCaskill’s (D-MO) is having to write checks to cover her growing tax fraud scandal, it may be time for her supporters to organize a fundraiser or two for the rainy days ahead.

Only days after announcing she owed $287,000 in back property taxes for a private plane she owns with her husband, McCaskill now says she really owes $320,000.

It’s amazing to see such a quick escalation.

Less than a week ago McCaskill went from one contested $1,200 political flight to refunding the U.S. Treasury for $88,000 in suspect trips.  Now the hit on her bank account is over $400,000 with seemingly no end in sight.

Forget all the media salivating for the 2012 presidential campaign.  The Missouri Republican Party is launching its first attack on Democratic Senator Claire McCaskill’s liberal use of taxpayer money.

Over the weekend, the Missouri GOP printed a full-page ad in the Springfield, MO News Leader demanding that McCaskill explain why she paid the U.S. Treasury $88,000 for flights on one of her husband’s private jets.  McCaskill continues to claim that only one of the flights was for a purely political reason (and thus ineligible for taxpayer reimbursement), yet her check covers 89 trips.

Since McCaskill’s seat is seen as a great pickup opportunity for Republicans, don’t expect the Missouri GOP to let the self-styled accountability watchdog off the leash easy.

Ladies and gentlemen, welcome to the 2012 campaign cycle!

In a wide-ranging piece, The Daily Caller explains the continuing mainstream media bias against Andrew Breitbart and anyone else who dares to shine a light on government corruption.  Breitbart’s castigation during the Shirley Sherrod episode spurred him to research liberal claims he only spotlighted Sherrod’s discriminatory comments to an NAACP crowd as a quick gimmick.  After four and a half months of interviews, Breitbart is in the early days of a multi-stage release on the depth and breadth of the Pigford settlement scandal that so far has cost taxpayers over $2 billion.

Since President Barack Obama has a direct link to the newest $1.15 billion funding the Pigford II settlement round, don’t be surprised if the White House comes under continuing pressure to defend itself for its legislation-for-votes deal-making.

The saga of the systemic corruption of public finances in the City of Bell, CA, is not over.  Earlier this week Los Angeles police officers arrested eight current and former Bell officials on charges of misappropriating upwards of $5.5 million in public funds.

It’s often said that if private business owners kept their books like the government does, there would be lots of CEOs in prison.  With the Bell scandal showing that fraud is criminal no matter who does it, the people who’ve grown rich at the public’s expense should start looking over their shoulders.

The cops – and the pitchforks – are coming.

It isn’t often that we in America get reminded about the importance of reasonably enforcing tax laws.  Thanks to the Greek experiment in systematic tax evasion that undergirded that country’s financial collapse, we can all rest assured that a sustained culture of lying leads to the death of civil society.

The Greek state was not just corrupt but also corrupting. Once you saw how it worked you could understand a phenomenon which otherwise made no sense at all: the difficulty Greek people have saying a kind word about one another. Individual Greeks are delightful: funny, warm, smart, and good company. I left two dozen interviews saying to myself, “What great people!” They do not share the sentiment about one another: the hardest thing to do in Greece is to get one Greek to compliment another behind his back. No success of any kind is regarded without suspicion. Everyone is pretty sure everyone is cheating on his taxes, or bribing politicians, or taking bribes, or lying about the value of his real estate. And this total absence of faith in one another is self-reinforcing. The epidemic of lying and cheating and stealing makes any sort of civic life impossible; the collapse of civic life only encourages more lying, cheating, and stealing. Lacking faith in one another, they fall back on themselves and their families.

To read more about the fantastical confluence of events that bankrupted Greece, read Michael Lewis’s Vanity Fair article here.

In a year or two, we may look back on the City of Bell public employee compensation scandal as the modern day equivalent of Upton Sinclair’s The Jungle.  Both stories showed the general public how bad a particular industry behaved, and prompted serious, far-reaching reforms.

The chief villain in the Bell fiasco (so far) is its former city manager Robert Rizzo.  At the time of his resignation, Rizzo was making close to $800,000 a year, and due to earn hundreds of thousands of dollars a year from his public employee pension.  Now that he’s retired, the pension is kicking in – and so are taxpayers in cities that share Bell’s pension pool.

That means that Hesperia, CA, is on the hook for $80,000 of Rizzo’s estimated $600,000 a year pension (not to work!), even though it fired Rizzo after his four year stint ended in 1992.  Taxpayers in Rancho Cucamonga will be paying $160,000 of the bill, with Bell and other cities who never even hired Rizzo chipping in the rest.

And remember, the estimated $600,000 is owed to Rizzo – by law – every year for the rest of his life.  After being fired by at least two of the cities that hired him.  Insane.  Public employee pension reform may not be a “sexy” issue on the campaign stump, but it is certainly a topic that is sure to get people’s attention during this era of runaway government spending.

The Bell scandal may be the the last, best chance to reign in the power of the public employee unions before they ruin the American economy.

The Tea Party movement is going viral.  As reported earlier, the City of Bell, CA is now Exhibit A in corrupt government.  Thousands of the majority Hispanic population in Bell protested outside city hall after it was revealed that the city council raised local property taxes 50% beyond the legal limit.

Here’s a spot-on analysis of how the Tea Party movement’s call for limited – and constitutional – government is starting to bubble up in a growing number of communities.

When people wonder why the Tea Party and other grassroots political movements start, this is a great example.  Government at any level that grows haughty, insular, and corrupt generates a reaction towards accountability and more modest models of governance.  I’m certain that the protesters in Bell don’t see themselves as part of the Tea Party movement, but the two have more similarities than differences.  They’re angry at the local model of big government arrogance and at having their pockets picked — especially considering the relatively low average household income in this Southern California community, at just under $30,000.

H/T: Hot Air Blog

Though it’s undeniably true, it isn’t customary for a member of Congress on trial for ethics violations defends his actions by saying everyone else did it too.

So hats off for former House Ways and Means Committee Chairman Charlie Rangel (D-NY).  In authorizing his attorneys to file a 32-page rebuttal to ethics charges that names members of both parties who’ve escaped prosecution for doing similar activities, Rangel is explicitly inviting prosecutors to consider going after other members of Congress.

But before they do that, one of the members Rangel didn’t name is facing her own ethics trial.  Congresswoman Maxine Waters (D-CA) is vowing to fight charges that she improperly steered $12 million worth of financial bailout money to a bank where her husband was a board member.

Even if convicted, Waters probably won’t face a prison term like Rangel.  However, if Rangel continues to name names, he may get company in prison.  I wonder if they’ll let him name his wing after himself…