Tag: crony capitalism
Rick Perry

How Rick Perry’s Sleazy Ukraine Gas Deal Led To Trump’s Impeachment

Reprinted with permission from ProPublica

Rick Perry came to Washington looking for a deal, and less than two months into his tenure as energy secretary, he found a hot prospect. It was April 19, 2017, and Perry, the former Texas governor, failed presidential candidate and contestant on “Dancing With the Stars," was sitting in his office on Independence Avenue with two influential Ukrainians. “He said, 'Look, I'm a new guy, I'm a deal-maker, I'm a Texan,'" recalls one of them, Yuriy Vitrenko, then Ukraine's chief energy negotiator. “We're ready to do deals," he remembers Perry saying.

Read NowShow less
Trumping Judicial Review

Trumping Judicial Review

Reprinted with permission fromThe Washington Spectator.

On March 9, 1937, American radio listeners were treated to some of the most concentrated hogwash in the nation’s political history. It was the first “fireside chat” of Franklin Roosevelt’s second term, and the president was steaming over setbacks to his New Deal policies. He claimed that the Supreme Court—by striking down the Railroad Retirement Act of 1934, the Agricultural Adjustment Act of 1936, and other laws—was defying a popular mandate for a “program of protection” against another Great Depression.

Roosevelt didn’t rebut the justices’ reasoning. Instead, he proposed an end run by adding to the Court new members who would presumably be more amenable to his goals—one for each sitting justice at least 70 years of age, of whom there were six at the time. The problem with the Court was simply that its members were too old and crusty to understand and respond to the economic problems of the day.

“By bringing into the judicial system a steady and continuing stream of new and younger blood, I hope, first, to make the administration of all federal justice speedier and, therefore, less costly,” Roosevelt said. Second, he sought “to bring to the decision of social and economic problems younger men who have had personal experience and contact with modern facts and circumstances under which average men have to live and work.” Roosevelt couldn’t remove justices from the Court, but if his plan succeeded, he could expand its membership to as many as 15 and thereby “save our national Constitution from hardening of the judicial arteries.”

Although his pitch was transparent nonsense, and his court-packing legislation failed in the Senate, Roosevelt prevailed, in a way. Just three weeks after his address, and two months after announcing his reform legislation, Roosevelt watched the Court uphold a Washington State minimum-wage law. Justice Owen Roberts, a swing voter who had consistently joined four conservatives opposing New Deal–type laws, suddenly switched sides. It appears that Roosevelt, through his browbeating and his massive 1936 electoral victory, asserted enough political pressure over the Court to win its acquiescence.

Today it is worth keeping in mind historical incidents such as this. A federal district court has rebuffed President Donald Trump’s executive order constraining immigration and entry of refugees from seven predominantly Muslim countries, and an appeals court declined to reinstate it. Trump vowed to take the case to the Supreme Court, then promised a subsequent executive order that will take the court’s opinion into account: “The new order is going to be very much tailored to what I consider to be a very bad decision,” he said.

The courts have not ruled on the merits and legality of the executive order, so this churlish nod to judicial deference appears to be another feint. What is clear is that judges are not just going to play along with Trump’s agenda. How many rebukes can he take? How long before he devises his own plan to get his way? Given Trump’s character and history, and given the hard-right boundary-pushing of this White House, there is good reason to expect that the administration will press, subvert, and ignore the Court as it deems necessary, daring the House to draw up articles of impeachment in order to maintain checks and balances in Washington.

Throughout his career in politics and business, Trump has shown that nothing short of coercive power will contain him. Traditions, truths, behavioral norms, and moral warrants are irrelevant; all that matters is whether adversaries can bring force to bear. He asks for neither permission nor forgiveness.

Thus has Trump repeatedly avoided his civic duty to pay taxes and bullied his way out of contracts. Where law is on his side, he will always self-aggrandize, even if conventional notions of the right or good demand otherwise. Where the law is against him, he has relied on his money and lawyers to escape prosecution. If he cannot do that, he at least avoids accepting responsibility for wrongs committed and harms done. For instance, early in his career, when the federal government sued his real estate firm for discriminating against black renters, Trump settled without admitting guilt. And, as a series of reports in TheWashington Post by David Fahrenthold document, Trump abused his charitable foundation for purposes of self-dealing and relied on dodgy tax schemes to get away with it.

During his presidential campaign, Trump was endlessly chastised for ignoring all the usual political norms. He has not released his tax returns, defending the choice exclusively on the grounds that he isn’t required to do so. Similarly, he refuses to resolve his conflicts of interest, instead doing the least the law requires while throwing a few small bones to a public anxious about corruption. He repeatedly lied about the incidence of crime and terrorism, and has continued to do so in office. When questioned on these and other fabrications, he and his adjuncts inflate them. They are never chastened. His Department of Homeland Security initially continued to carry out his executive orders on immigration and refugees even after federal courts had stayed them, demonstrating the administration’s hostility even to judicial constraint.

The point here is not to recap but to recognize something that seems intrinsic to Trump’s character: he is incapable of restraint. He does what he wants and challenges others to hold him accountable. This is a dangerous disposition in a president.

As a private citizen, Trump had to respect the law to some degree, lest its coercive power get in his way. As president, he is still enjoined to respect the law, but it is now his job to carry out that law. This means that the credible threat of legal coercion is much reduced. He can do as he wishes and refuse to execute the law against himself. He may not succeed, but only if it is politically impossible.

Surely this can’t be, though. The president, we are inclined to believe, is not above the law. Indeed, the Constitution tells us as much. But this is just a fine phrase. The president is only beholden to law if he believes he is or if someone can force him to be. For in our system the courts can only speak; they cannot act. The courts, including the Supreme Court, may tell the president he is wrong on the law, but the material force of the federal government is invested in the executive. The White House can carry on as it pleases, limited only by the will of the voters exercised every four years or by Congress, through the impeachment power.

No less a luminary than President Abraham Lincoln showed as much. In 1862 he rejected the Supreme Court’s ruling in Dred Scott v. Sanford, which held that Congress had no power to regulate slavery in U.S. states and territories. Yet Congress voted that year to prohibit slavery in all existing and future territories, and Lincoln signed the law.

In doing so, Lincoln arguably followed a bit of wisdom offered by another American of high standing, Thomas Jefferson. In 1810 Jefferson wrote, “A strict observance of the written laws is doubtless one of the highest duties of a good citizen, but it is not the highest. The laws of necessity, of self preservation, of saving the country when in danger are of higher obligation.” This is a stunning argument for unconstrained executive authority in times of crisis. It is not hard to envision Trump, who is convinced that the United States is in mortal peril from immigrants and terrorists, acting on a similar sense of righteousness.

What is more, when Lincoln rebuffed the Supreme Court, he may have been acting on his constitutional authority. We are used to thinking of the Court as the final arbiter of what the law is and what the Constitution allows. But a vigorous strain of legal thought, mostly confined to conservative intellectuals, holds that this “judicial supremacy” is a myth—that the Constitution nowhere grants the Court power to review and nullify laws. On this reading, the Court appropriated such power in the case of Marbury v. Madison (1803), and nearly everyone has spent the past two hundred years deluding themselves.

The legal thinking behind this view is complex and certainly open to debate. Indeed, it is a minority position primarily associated with unyielding originalists, often aligned with the Federalist Society. What is more, originalism cuts both ways here. For instance, the Georgetown Law Professor Randy Barnett has defended judicial supremacy, which he also calls “judicial equality,” through close reading of the framers. He contends that the “Judicial Power” in the Constitution, as the framers understood it, encompasses authority to review and void unconstitutional laws. (Why an originalist account should be necessary or itself supreme—originalism and analogs being absent from the Constitution—remains mysterious.)

Whatever the arguments pro and con, the Trump administration is an ideal vehicle for the conservative case against judicial review. Trump is surrounded by extreme political and policy entrepreneurs who have already shown themselves willing to upset even the least controversial expectations. Top adviser Steve Bannon has made no secret of his intent to transform government at every level. Trump’s refusal to release his tax returns and place his assets in a blind trust break decades of precedent.

Since the first day of his campaign, he has dispensed with half a century of carefully cultivated GOP dog-whistling in favor of explicit racism. With respect to judicial review specifically, policy chief Stephen Miller has proclaimed the administration’s disdain. During a recent appearance on Face the Nation, he accurately noted that the president enjoys “very substantial” power over national-security policy. But he asserted new legal doctrine in claiming that any such policy “will not be questioned.” He also said, “We have a judiciary that has taken far too much power and become in many cases a supreme branch of government.”

An administration unconstrained by foresight, facts, procedure, and morality, consumed by ideological zeal, is well placed to challenge judicial review. It is, after all, just a tradition, according to the sorts of constitutional interpreters likely to be embraced in this Oval Office. And even if the courts do not acquiesce to such monumental revisionism, the administration is the entity tasked with enforcing court decisions, which means that precious little can stop it.

The courts can still give the administration much of what it wants without inviting challenges to their powers of review. The Supreme Court conceded to Roosevelt while preserving its authority. And many speculate that the justices played along with the 2012 case against the Affordable Care Act because they knew that, if they struck down the law’s central provisions, the Obama administration would find a way around them. Had Obama succeeded in circumventing the court, he would have revealed the essential powerlessness of a judiciary dependent on the executive’s will.

But do you expect the Trump administration to play that card only once? Are men such as Trump and Bannon, demonstrably ruthless in their pursuit of financial and political gain, to be trusted with such powers of intimidation? At the moment, we can only wonder, but what we know of them counsels severe doubt.

We should consider both of these real possibilities: that the administration will question the authority of the judiciary to determine the legality of its actions and that the administration, when rebuked, will refuse to comply with court orders. In either circumstance, judges themselves present no obstacle to a defiant executive. Only Congress, exercising its power to impeach, and the voters, can slow the administration down.

For opponents of judicial review, this is precisely as it should be. For anyone who values the courts as effective sources of checks and balances, this is a troubling moment.

Simon Waxman is a freelance writer and editor. His work appears in The Washington Post, New Republic, The Boston Globe, Los Angeles Review of Books, and elsewhere.

IMAGE: A pedestrian walks in front of the U.S. Supreme Court building in Washington, U.S. May 19, 2016. REUTERS/Carlos Barria

Trump Claimed He Made $21 Million On NYC Contracts — He Actually Made A Lot Less

Trump Claimed He Made $21 Million On NYC Contracts — He Actually Made A Lot Less

Reprinted with permission fromProPublica.

When he was running for president last May, Donald Trump released 104 pages of details about his finances, including a claim that he earned nearly $21 million through contracts with New York City to run two skating rinks in Central Park and a Bronx golf course.

Much of what Trump asserts remains unverified since he has thus far declined to release his tax returns. But ProPublica obtained the financial records and receipts Trump submitted to New York City for the two leases and they show that he cleared a lot less from those deals, earning no more than half of what he claimed. (Check out the documents.)

Of course, the skating rinks and golf course are but a tiny corner of the Trump financial empire. Still, the records add to the suspicion — originally advanced by Fortune, Forbes and other news organizations — that Trump’s official disclosures exaggerate his accomplishments as a businessman by reporting gross receipts rather than actual profits.

Trump submitted the listing of his financial holdings to the U.S. Office of Government Ethics, a requirement for presidential candidates. He reported income from the New York City leases of $20.8 million but did not disclose the expenses he incurred while running those operations.

The Office of Government Ethics reviews financial disclosures for compliance. It doesn’t audit the filings, leaving it up to candidates to decide whether to report gross revenue or net income from their business dealings. Either is allowed on the form, as long it’s clear.

In the disclosure Trump filed, the numbers for the New York leases are listed under “Income Amount.’’ Former government ethics attorneys say that while most previous nominees understood this to require reporting income net of expenses, the requirements are vague enough to allow either interpretation.

“It’s sufficiently ambiguous that, while Trump may meet their reporting requirements, it’s really misleading,” said Virginia Canter, who served as associate counsel for ethics in the Clinton and Obama administrations and ethics adviser for the International Monetary Fund.

Wealthy political candidates and Cabinet picks have reported income with expenses subtracted, repeating the numbers reported on their income tax returns. For example, former Commerce Secretary Penny Pritzker, a Chicago billionaire with sizable real-estate assets, reported on her financial disclosure form that she earned at least $164 million, a figure described as taxable income. Even then, Pritzker had to file an amended form after she understated her income.

The Trump Organization did not respond to requests for comment. The White House did not respond to a request for comment about the president’s income but said in a statement that Trump is “exempt from conflicts” under federal law. (While it is true that the president and vice president are exempt from any criminal penalties resulting from conflicts of interest, that does not preclude the existence of such conflicts.)

New York City documents released to ProPublica in response to a public-records request show that in previous years, Trump spent at least $4.5 million annually on employee salaries, subcontractors, insurance, taxes, and benefits at the skating rinks. Separately, he paid at least $2 million a year to the city in rent in 2015 and 2016.

Trump has yet to report his expenses for 2015 and 2016. But if past experience is a guide, it would appear that he spends about $6.5 million annually on the two rinks.

The financial disclosure form Trump filed covers the period from January 2015 to May 2016. In those months, he disclosed an income of $12.9 million for the two rinks, roughly the same amount as our estimate of his expenses for that period.

We estimated that his expenses for those months were above $12 million, given that most of the skating business takes place in the winter months.

This left Trump with a profit, by our estimate, of several hundred thousand dollars. That’s in line with Trump’s predictions to New York City, which is that he expected to make a profit, after taxes, of less than $500,000 annually.

We found a similar pattern when we looked at the golf course.

There, the Trump Organization projected expenses of more than $4 million a year in 2015 and 2016, including spending on salaries, the pro shop, marketing, and maintenance of the greens.

According to city records, the golf course’s total receipts for 2015 and first five months of 2016 were $8.1 million. That’s roughly what Trump reported as income ($7.9 million) on the federal disclosure forms for that period.

Projecting conservatively, we estimated that Trump spent at least $5 million on expenses in those months — $4 million for the previous year and at least $1 million from January to May, leaving him, at most, a profit of $3 million.

Trump took over operations of Wollman Rink and the smaller Central Park ice rink in 1986 after they had fallen into disrepair. He signed another contract with the Department of Parks and Recreation in November 2001 to manage the rinks for another 10 years and later extended it to last until 2021.

In extending its contract with Trump, city officials described the Trump Organization as an “exemplary concessionaire” and noted that, with the low profit margins at the ice skating rinks, it had “no other viable options” to manage it. The rink has a decidedly Trumpian quality; nearly everything at the rink is emblazoned with the Trump name, from the rental skates and water to the Zamboni.

In 2012, the Trump Organization also signed a 20-year contract to operate the 192-acre golf course in the Bronx. The course is on the site of a former garbage dump redeveloped by the city at a cost of more than $200 million. Trump agreed to fund various improvements and start sharing revenues with the city in 2020; a weekend game of golf costs $172, triple that of other municipal golf courses.

“Generally speaking, golf is a shrinking sport but the city made a promise to the community and that’s what they wanted,” said Adrian Benepe, who was the city’s parks commissioner under former Mayor Michael Bloomberg from 2002 to 2012 and who negotiated the Bronx golf course contract. “We kind of felt lucky, given the sport’s declining popularity and that this site was a long-festering wound, an exposed garbage dump.”

Despite pledging to distance himself from his business empire, Trump is still listed as the ultimate owner of the two New York City contracts. To transfer ownership of the contracts, the Trump Organization has to get the written approval of New York City Parks Commissioner Mitchell J. Silver.

Any changes in management and operation of the rinks need approval from the commissioner. “Failure to comply with this provision shall cause the immediate termination of this License,” the contracts read.

The Trump Organization has yet to make those changes, city officials said. In response to questions from ProPublica about the management changeover, the Parks and Recreation Department said it is trying to get more information.

In January, Trump said that he would distance himself from his business empire by creating a trust that would oversee his companies. But the trust, run by his eldest son, Donald Trump Jr., and a longtime employee, ultimately benefits the president, D.C. licensing documents obtained by ProPublica show.

Al Shaw contributed reporting.

IMAGE: Andy Ihnatko / Flickr

Bernie Sanders Exposes Glaring Falsehoods In Trump’s ‘Unifying’ Address

Bernie Sanders Exposes Glaring Falsehoods In Trump’s ‘Unifying’ Address

Reprinted with permission fromAlterNet.

Former Kentucky Governor Steve Beshear issued a formal Democratic response to Trump’s address to Congress Tuesday. But the most blistering reply may have belonged to Vermont Senator Bernie Sanders (D-VT), who took to Facebook shortly thereafter. “I wanted to say a few words about what [Trump] didn’t say, because when you analyze the speech sometimes what is more important is what somebody does not say as opposed to what they actually say,” he began.

Below are 12 glaring omissions, contradictions, and lies Sanders spotted in Trump’s address:

1. Social Security and Medicare

“At at a time when all over half of older Americans have no retirement savings, I did not hear President Trump say one word not one word about Social Security or Medicare,” Sanders pointed out.

“During the campaign, as we all remember, President Trump promised over and over and over again that he would not cut Social Security, Medicare, or Medicaid,” he explained. “But in his first address [to Congress], he didn’t even mention Social Security or Medicare once, not a single time.”

While Treasury Secretary Steven Mnuchin insisted the programs would not be touched in an interview this past weekend, President Trump’s budget director, Mick Mulvaney, has defended such cuts.

“I urge President Trump, keep your promises tell the American people tweet to the American people that you will not cut Social Security Medicare and Medicaid,” Sanders said.

2. Income and Wealth Inequality

Trump’s speech to Congress briefly touched on poverty in America. However, Sanders “did not hear President Trump mention the words ‘income and wealth inequality’ or the fact that we now have the widest gap between the very rich and everyone else since the 1920’s.”

3. Campaign Finance

“I did not hear President Trump mention the fact that as a result of the disastrous Citizens United Supreme Court decision, a five-to-four decision. We now have a corrupt campaign finance system that is allowing billionaires to buy elections and undermine American democracy,” Sanders was eager to point out.

To the first-time politician who has repeatedly boasted about funding his own campaign, Sanders asked, “How could you give a speech to the nation and not talk about that enormously important issue?”

4. Voter Suppression

In his speech, President Trump used the phrase “guided by the well-being of American citizens.”

“[But] not only did President Trump not mention the issue of voter suppression, what Republican governors are doing all over this country to make it harder for people to participate in our democracy, but the truth of the matter is his administration is now working, working overtime, with Republican governors to make it harder for young people, low-income people, senior citizens, and people of color to vote,” Sanders explained. “That is an outrage.”

5. Climate Change

“Perhaps most astoundingly, and a time when the scientific community is virtually unanimous in telling us that climate change is real, that it is caused by human activity, that it is already causing devastating problems in our country and all over the world, I did not hear President Trump say one word, not one word, about the need to combat climate change, the greatest environmental threat facing our planet,” Sanders hammered.

Not only did Trump not mention climate change, “he pledged to increase our dependency on fossil fuels,” Sanders added.

6. Criminal Justice

“At a time when we have more people in jail than any other country on Earth, disproportionately African-American, Latino, Native American, I did not hear President Trump say one word about how he was going to fix a broken criminal justice system,” Sanders pointed out.

“Yes, we must support the hard work of men and women in the police departments, in the sheriff’s departments all over this country, but we must also end the disgrace of having more people in jail than any other country on Earth,” he added.

7. Higher Education

“At a time when we need the best-educated workforce in the world to compete in a highly competitive global economy, I did not hear President Trump say one word, not one word, about the need to lower the cost of college and to do what countries all over the world are doing, and that is to make public colleges and universities tuition free,” Sanders said.

8. “Drain the Swamp”

“During his campaign, President Trump told us that he was going to take on Wall Street and ‘drain the swamp’,” Sanders reminded viewers. “Well, the swamp, big time, is now in his administration, which has more millionaires and billionaires than any presidential administration in history.”

“Amazingly enough, for somebody who was going to ‘drain the swap’, who’s going to take on Wall Street, his chief economic advisor, Gary Cohn, is the former president of Goldman Sachs, one of the major financial institutions that take billions of dollars in fines for their illegal activity,” Sanders added.

9. Glass-Steagall Act

“I did not hear President Trump say one word about another campaign promise that he made to the American people, and that was to reinstate the Glass-Steagall Act,”

In his speech, President Trump proposed a $1 trillion investment in American infrastructure, “but the specifics of the financing plan that he has provided us with so far are absolutely wrong,” Sanders concluded. “We cannot rebuild our infrastructure by providing billions of dollars in tax breaks to Wall Street and large corporations.”

10. Clean Water Rules

“Donald Trump said tonight that we need to ‘promote clean air and clean water’… I had a difficult time not laughing out loud when he said that,” Sanders admitted, since “On this very, very day, he signed an executive order rolling back President Obama’s clean water rules and has appointed the most anti-environmental EPA administrator in our nation’s history.”

11. Military Spending

“President Trump said [Tuesday night] that he wants to substantially increase funding for the Pentagon,” Sanders recalled. “What he didn’t say tonight is that he will come up with that $84 billion dollars in increased funding for the Pentagon by slashing programs that benefit the working people of this country, that benefit the elderly, that benefit the children, the sick and the poor.”

12. Prescription Drug Costs

“As he did during his campaign, Donald Trump claimed that he would bring down the cost of prescription drugs,” Sanders told viewers. “A few weeks ago, he even said that the pharmaceutical industry was ‘getting away with murder’, but if Donald Trump really wanted to take on the pharmaceutical industry, he would have told his Republican friends in the House and the Senate to pass legislation, which I [re]introduced today with 20 senators allowing Americans to import safe low-cost medicine from Canada.”

Alexandra Rosenmann is an AlterNet associate editor. Follow her @alexpreditor.

IMAGE: U.S. Democratic presidential candidate Bernie Sanders delivers a speech on “Democratic Socialism in America,” to students at Georgetown University’s Gaston Hall in Washington. November 19, 2015. REUTERS/Carlos Barria