Just over a week ago in an article I published here in Big Government: “New California Budget Crisis May Torpedo November Tax Increase Initiative.” The article illuminated how State Controller John Chaing had shocked California’s spendthrift politicians by announcing the State would be out of cash beginning March 8th and would miss up to $5.4 billion in vendor payments through May 1st. The timing of the Chaing announcement was disastrous for state politicians; because it destroyed any hope that Governor Jerry Brown’s $6 billion tax increase initiative on the ballot in November would pass.

Now it appears that Brown successfully lobbied for California to get $6 billion in cash and siphon off a total of $18 billion from the $25 billion mortgage settlement with the five largest U.S. banks, who were accused of fraud in the handling of foreclosures and loan modifications. But as Franklin Center Fellow, Steven Greenhut asks in a deliciously sarcastic article: “Why should a taxpayer in Houston or Wichita bail out irresponsible California homeowners, banks and the state’s public employees’ retirement fund?” Greenhut highlights that the mortgage settlement money is really just another accounting entry, because the real source of cash to fund the “Left Coast” is “implicitly via Federal Reserve/Government coffers.”

Most Americans still snarl about crony capitalism when they think of multinational banks taking $1 trillion slurp of taxpayer’s hard earned cash and then paying themselves record bonuses, while hiking fees and cutting off borrowers. But with the United States President and Congress solemnly telling Americans healthy banks were key to our future, most Americans gritted their teeth and came together to bail-out of banks, insurance companies, and other financial firms.

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President Obama is hoping to capitalize on his controversial decision to appoint Richard Cordray as director of the Consumer Financial Protection Bureau. Less than 12 hours after making the announcement, Obama’s campaign sent a fundraising email seeking up to $2,500 from supporters.

The purported “recess” appointment enraged conservatives because the Senate isn’t even in recess. Senators never passed a resolution to adjourn, meaning it is officially still in session.

That didn’t dissuade Obama, however. Now the president is seeking to use the publicity to raise money for his re-election campaign.

“We can’t afford to continue allowing Wall Street to write its own rules. But today’s action by the President is already coming under partisan attack, which we expect to intensify in the days to come,” wrote James Kvaal, national policy director at Obama for America, in Wednesday night’s email.

The fundraising pitch was disguised as a petition to supporters. Only when recipients click on the link to “stand with President Obama and Richard Cordray” and sign the petition are they taken to a fundraising page with a form to donate up to $2,500 to Obama.

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(Reuters) – President Barack Obama plans to use a recess appointment to install Richard Cordray as head of the country’s new consumer financial protection watchdog, sidestepping Republican congressional opposition to his pick.

“Today in Ohio, President Obama will announce the recess appointment of consumer watchdog Richard Cordray,” White House communications director Dan Pfeiffer announced in a tweet.

The Consumer Financial Protection Bureau was created by the 2010 Dodd-Frank financial oversight law to police the market for consumer products such as credit cards and mortgages.

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Judicial Watch, the public interest group that investigates and prosecutes government corruption, today released its 2011 list of Washington’s “Most Wanted Corrupt Politicians.” The members of the Obama Administration on the list, in alphabetical order, include:

• Attorney General Eric Holder
• President Barack Obama

Dishonorable Mentions for 2011 include:

• Secretary of Homeland Security Janet Napolitano
• Secretary of Health and Human Services Kathleen Sebelius

Attorney General Eric Holder: Attorney General Eric Holder now operates the most politicized and ideological Department of Justice (DOJ) in recent history. And revelations from the Operation Fast and Furious scandal suggest that programs approved by the Holder DOJ may have resulted in the needless deaths of many, including a federal law enforcement officer.

Fast and Furious was a DOJ/Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) “gun-running” operation in which guns were sold to Mexican drug cartels and others, apparently in hopes that the guns would end up at crime scenes. This reckless insanity seems to have resulted in, among other crimes, the murder of Border Patrol Agent Brian Terry, who was killed in a shootout with Mexican criminals in December 2010. Fast and Furious guns were found at the scene of his death.

The Fast and Furious operation by itself should have resulted in Holder’s resignation, but it is the cover-up that has prompted serious calls for Holder’s ouster. (more…)

The #OccupyWallStreet movement has an agenda and has made it available for all to see.  Among their demands is that government eviscerate existing contracts by “eliminating all debt, everywhere.”  Imagine there was a government agency with the power to make decisions like that.  With a sleight of hand, one person could vitiate contracts and overturn years of business decisions, destroying marketplaces through government intervention.  You don’t have to imagine very long.  If President Obama and his progressive supporters get their way, the Director of the newly created regulatory agency called the Consumer Financial Protection Bureau (CFPB) will have similar powers.

Created by the flawed Dodd-Frank financial reform legislation, the CFPB Director will be the most powerful regulator in government with little checks and balances from Congress.  President Obama said last week that if confirmed, the Director of the Bureau would be able to overturn any private market action it deems abusive.  Obama specifically cited the increase in debit card fees as an example of an area where the CFPB could take action to overturn the fee.

Let that sink in for a moment. A legitimate, legal business in America raises its prices by $5 and some bureaucrat would veto it, or worse, punish the business for raising its prices – in order to “make less profit,” as the president said.  This is the world Obama and the Democrats seek, a world in which an elite few are empowered to override the marketplace based on their own whims or, in this case, to mollify their voters.

No one likes bank fees, but in a market economy, you could take your money from one bank and move it to another. Avoiding this and keeping you happy is what keeps your bank in line. That’s how the market works, but that’s not good enough in Obama-world. On this fantasy island, the government singlehandedly keeps the electoral mobs happy through the utilization of a financial death squad. It’s government by organized mob.

This case becomes even more ridiculous when you consider the fact that the reason the banks are adding new fees is to cover the cost of a new federal price fixing law that took billions from banks and allocated it to giant retailers like Wal-Mart. And even more absurdly, the pricing fixing law that caused the fee increase is the very same law that created the agency that Obama wants to use to overturn the fee increase.

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Hopefully, it is not an ominous sign of things to come.

Last week, the Senate confirmed former Kentucky insurance regulator S. Roy Woodall for the one voting position on the federal Financial Stability Oversight Council (FSOC) reserved for someone with insurance expertise. The term is for six years.  The FSOC is in charge of monitoring the financial system to guard against the failure of the largest bank holding companies and non-bank financial institutions.

For the past year, Republicans in the House and Senate have worked together to prevent the approval of numerous president appointments both through regular order and through the use of recess appointment authority.  By keeping the House from adjourning when vacation and breaks come, the president has been unable to exercise his power thus sparing the nation from another round of liberal appointments that can do great damage to the country.

Because the confirmation process is often one of compromise and deal making, some worry about the possibility of a deal involving Richard Cordray and the Consumer Financial Protection Bureau (CFPB).

Especially in light of the fact that the Senate Banking Committee has called a vote on the Cordray confirmation itself this Thursday, October 6.   Sources in the nation’s Capitol have told Big Government that liberal Sen. Sherrod Brown (D-OH) is pressuring Sen. Rob Portman (R-OH) to break the logjam, as Cordray is from Ohio.

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From the Associated Press:

A federal appeals court in Virginia dismissed two lawsuits Thursday that had challenged the constitutionality of President Barack Obama’s health care overhaul.

The three-judge panel of the 4th U.S. Circuit Court of Appeals ruled in both lawsuits—one filed by Virginia Attorney General Kenneth Cuccinelli, the other by Liberty University—that the plaintiffs did not have standing to sue. The court did not delve into the constitutional issues.

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With a finite – and as far as most Democrats are concerned, insufficient – supply of taxpayer funds out there, its always interesting to see the choices that politicians with the power to spend the money make.

Take Kentucky Attorney General Jack Conway, for example. Yes, that Jack Conway, of ‘Aqua Budda’ fame. Conway has been on the warpath against for-profit colleges, spending hundreds of thousands of dollars of taxpayer funds to mount an investigation against seven academic institutions in the state.

Conway’s investigation recently got a big break. The smoking gun?  Owensboro-based Daymar College seems to have overcharged students for textbooks. That’s right; apparently Daymar encouraged students to purchase textbooks in the college bookstore even though they were available more cheaply through other retailers.

For anyone who has been to college this quarter-century, the textbook charges are laughable. Every school, from community colleges all the way up to the ritziest private universities, tries to snooker students into buying their textbooks at the bookstore then they could easily get them for less on Amazon.com.

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The always interesting Business Insider has this report:

The Department of Homeland Security’s ICE has launched a major crackdown on websites enabling copyright infringement or selling counterfeits of trademarked goods. In just the past few days ICE has seized at least 12 domains, TorrentFreak reports.

All of these domains now display the image shown here.

Okay, so each of the domains seized is probably breaking the law. Knowingly violating someone’s copyright is rightfully against the law. I don’t know anything about these sites, but, for now, I’ll assume they were selling knock-off goods as the real thing and not as some kind of faux Louis Vuitton. Still, this part of the article bothers me:

The owner of an affected site told TorrentFreak that his domain was taken over without any prior complaints or notification from the court.

So, the sites were seized before the site’s owner heard any charges or had the chance to submit any counter evidence in court. The owners of the sites had their property seized without being allowed to defend themselves. I successfully avoided law school, so I don’t know the exact legal term, but this strikes me as an overstep in their enforcement authority.

But, the article begs an even bigger question: What the hell do fake Guccis have to do with homeland security?

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A Schwarzenegger hangover saved California Democrats from a wipeout as the Tea Party wave washed harmlessly up the High Sierra’s eastern slope.  Democrats won eight of nine statewide offices, with the race for attorney general looking more Republican as the late ballots get tallied.  Democrats also racked up their largest State Assembly majority since the Watergate blowout year of 1974 (52 seats of 80).  And, the passage of union-sponsored Prop. 25 allows Democrats to enact a budget with a simple majority vote.  But for visual confirmation of this election’s connection to the failed “Republican” governor, one need only look at governor-elect Jerry Brown’s ad showing Arnold Schwarzenegger side-by-side with Meg Whitman uttering the same platitudinous inanities we’ve come to expect from self-funded dilettantes who neither have the time to vote nor the inclination to first seek a lesser office so as to gain political experience.

It isn’t hard to see where things went awry in California: just look back to the heady years of the historic 2003 recall of Gray Davis.  Davis was swept out of office due a massive deficit brought on by his rapid expansion of state government during the dot com economy combined with his mishandling of the state’s electricity crisis.  Candidate Schwarzenegger won on a platform of “blowing up the boxes” of bureaucracy while “cutting up” the state’s “credit cards” – Schwarzenegger did neither.  Instead, he gave California seven years of uneven leadership, veering from the right to the left while calling his erratic leadership “post-partisanship.” Schwarzenegger pushed through the largest state tax increase in U.S. history, expanded government spending, debt and regulatory hurdles while shrinking the sphere of liberty – curious actions for a self-avowed fan of the late Milton Friedman.  Schwarzenegger’s voter approval rating hit 22 percent this summer, matching Gray Davis’ recall-eve rating – something Davis, if he wishes to indulge in schadenfreude, might see as poetic symmetry.

While the Democrats had a great election night in the Golden State, there are some signs of hope for the majority of Californians who don’t take their ideological cues from San Francisco.

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From Legal News Line:

A new study focusing on what one organization feels is an abuse of power was released Wednesday, naming the 10 worst state attorneys general in recent history.

Hans Bader, Counsel for Special Projects at the Competitive Enterprise Institute, wrote the report, which names Connecticut Attorney General Richard Blumenthal as the worst.

“The nation’s worst state attorney general is Richard Blumenthal, a tireless crusader for growing the power of his own office and spreading largesse to his cronies,” Bader wrote.

Bader focused largely on Blumenthal’s role in litigation against tobacco companies, starting with the 1998 Tobacco Master Settlement Agreement.

“Wealthy trial lawyers across the nation received $14 billion nationally in attorneys’ fees under a $246 billion-plus settlement paid for primarily by smokers — the alleged victims of the very fraud that begat the settlement,” Bader said.

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A few months ago, Attorney General Eric Holder took an important step in ensuring that all men are treated equally under our legal system. In a memorandum to federal prosecutors, he noted that those who commit similar crimes in different jurisdictions “should, to the extent possible, be treated similarly.” He also cautioned against unwarranted disparities in charging decisions, plea agreements and sentencing recommendations.

But while putting these words on paper to guide federal prosecutors is important, the Department of Justice ultimately is to be judged on whether it follows in deeds. Unfortunately, right now the Obama administration is missing a golden opportunity in Iowa to show it supports parity for all.

Sholom Rubashkin was the manager of a highly successful kosher meatpacking plant in Postville, Iowa.  He recently was sentenced to 27 years in prison for banking offenses. It was a startlingly long sentence for a first-time, non-violent offender; especially for a man who never intended any loss to the bank from which he borrowed funds to run the meat business. By contrast, Mark Turkcan, the president of a St. Louis bank who knowingly defrauded his company out of nearly $35 million, was sentenced last year to just 366 days in jail.

The details of how prosecutors have handled Rubashkin’s case have raised many eyebrows; and dozens of former Justice Department officials have spoken out on Rubashkin’s behalf. But Holder and his team thus far have refused to investigate the case. How, then, can we take seriously their calls to end disparities of justice?

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US Attorney General Eric Holder knew about Faisal Shahzad’s extremist background and resume. Holder knew about Faisal’s links to the Pakistani Taliban but refused to admit that Islamic radicals were behind the Times Square bomb plot yesterday during his testimony to the House Judiciary Committee.

This is irresponsible and puts American lives at risk. Eric Holder is incapable of understanding the threats facing this nation. Eric Holder must step down.

Times Square car terrorist Faisal Shahzad worked with an accomplice in Pakistan who provided an “independent stream” of evidence that the Pakistani Taliban were behind the botched plot. This information was provided after the accomplice’s arrest in Pakistan last week.

US Attorney General Eric Holder acknowledged that the Times Square bomber was linked to the Taliban. Despite this information, the US Attorney General refused to use the term “radical Islam” when discussing the motives behind the Times Square bomber yesterday during a House Judiciary Committee hearing.

The US Attorney General has information that the Taliban was behind the Times Square attack. Terrorist Faisal Shahzad had substantial connections to the Taliban, reached out to the Taliban, was influenced by Yemeni terror leader Anwar al Awlaki, made at least a dozen return trips to Pakistan since arriving in the United States in 1999, and he bought a one way ticketwith cash to Pakistan. Terrorist Faisal Shahzad was blogging on terror websites about jihad since 2006.

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California Attorney General Jerry Brown seems to be getting a lot of reminders from his gubernatorial challengers Steve Poizner and Meg Whitman about his failed governorship of the state from 1975-1983 when Californian’s endured high unemployment, home foreclosures, large scale labor strikes and fuel shortages at the gas station. Recognizing the failed policies of then Governor Brown, California voters revolted and passed Proposition 13 which is a landmark initiative that limited politician’s ability to arbitrarily raise taxes on California residents.

Over a week ago, Attorney General Jerry Brown got yet another reminder, this time coming from the U.S. House of Representatives Committee on Oversight and Government Reform. The report “Follow the Money: ACORN, SEIU and their Political Allies” focuses public attention on AG Brown’s failed investigation of ACORN. While some of Brown’s gubernatorial challengers talk of the need for a California Governor to have a spine of steel, AG Brown has instead crumpled like an aluminum can cowardly hiding behind state bureaucrats and a wall of state agencies.

On October 1, 2009, Jerry Brown publicly announced that an investigation had been opened concerning undercover videos that were obtained by citizen journalists James O’Keefe and Hannah Giles who videotaped ACORN employees at two California offices. ACORN employees were filmed providing advice regarding tax evasion, prostitution and human smuggling of underage girls. Gov. Arnold Schwarzenegger was informed by AG Brown in a letter that he had “opened an investigation of both ACORN and the circumstances under which ACORN employees were videotaped.” Since that announcement, AG Brown has found himself at the center of a controversy surrounding the mismanagement of the investigation as well as a potential scandal due to a double standard involving one of his own state employees secretly recording conversations with reporters.

Shortly after ACORN had been alerted to the immanent investigation as a result of AG Brown’s public announcement, ACORN employees at the San Diego, CA office were caught engaging in a massive document dump on October 9, 2009. Those records were retrieved from an unsecured shared public dumpster where they had been thrown revealing sensitive personal, financial and banking information for both clients and employees in addition to revelations about the political inner workings of ACORN’s relationship with major U.S. banks and labor unions.

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During his campaign for Attorney General of Virginia, Ken Cuccinelli committed himself to acting with an aggressive conservative agenda. He promised voters that he would the office to aggressively fight governmental overregulation and interference wherever he could find it.

In other words, he pledged to use the office of Attorney General for good, rather than evil. After just over one month in office, he’s off to one hell of a start.

Last week, AG Cuccinelli boldly petitioned the EPA to convene a proceeding to reexamine their “Endangerment Finding” which claims that human activity has increased atmospheric greenhouse gases to a point that people’s lives are at risk. As such, they claim, the federal government must impose new caps on emissions and other climate protection policies in the energy sector.

Cuccinelli believes, rightly, that regulations based on the findings of the EPA in this sketchy case would be both legally questionable and detrimental to Virginia’s economy. (Much of the research that the EPA has based these findings upon has come from the questionable climate-gate materials). Accordingly, the AG also has petitioned a federal appeals court to review the EPA’s findings.

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When ACORN was caught stacking voter rolls with fake names leading up to the 2008 election, we stood up and took notice. Maybe an aberration, maybe part of a plan to undermine our system of elections. On Election Day, Black Panthers were inside a Pennsylvania polling station intimidating voters. They ultimately got off and the prosecutor who went after them was “reassigned”. Still, maybe it is simply coincidence. What if a high-profile state Attorney General argued that voters have no right to vote in secret?

I’m not talking about Card Check, I’m talking about the voting all of us do in every election. Consider the following words argued in Champaign County Court in Illinois by the Illinois Attorney General’s office headed by Lisa Madigan:

While plaintiff attempts to suggest to the Court that there is a fundamental right to a secret ballot, no such right exists. (bottom of Page 11 of pleading)

The Attorney General’s office argues that the United States Constitution, nor any fundamental right, protect a voter from being able to vote in secret. In effect, this means that it is only out of mere courtesy that the government doesn’t simply sit in the voting booth with you making sure you are making “fully informed decisions”.

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Part one of a series

In researching the ever-intensifying Massachusetts Senate race between Democrat Martha Coakley and her Republican challenger Scott Brown, it only takes a few keystrokes to unearth her ongoing history of questionable judgment and puzzling prosecutorial decisions.  Even though the election has been effectively nationalized, with some polls showing the underdog Brown within two points or so of the colorless Coakley, she remains largely unknown outside New England.

So as a public service to the voters of the Bay State, during the run-up to the special election on Jan. 19, Big Journalism will be offering some of the Martha’s Greatest Hits, so that they can fully make up their minds whether she would make a suitable successor to the late Edward Moore Kennedy – who, as you recall, began his illustrious career by being expelled from Harvard for cheating, went on to drown Mary Jo Kopechne at Chappaquiddick, and then turned to a life of drinking and debauchery, including the infamous “waitress sandwich” with soon-to-be-retired Connecticut Senator Christopher Dodd, before attempting to inflict “universal health care” on the country shortly before his death last year.

You can read all about Ted here in this classic profile of the last and worst of the Kennedy brothers by the late Michael Kelly.  Be sure to read the whole thing, just to get a flavor of the kind of candidate Massachusetts voters seem to like.

Homework done?  Good.  Because Martha Coakley, the current Attorney General of the Commonwealth of Massachusetts, and thus its top law enforcement officer, is shaping up as a worthy heir to the Lion of the Senate.(more…)

Earlier this month President Obama fired Greg Craig, his main counsel on matters concerning the Guantanamo Bay Facility. And this week Obama sheds another one of his GITMO team with the resignation of Deputy Assistant Secretary for Defense for Detainee Policy, Phillip Carter.

It appears that Obama’s GITMO team is being systematically eliminated. One has to ask, why? The only real answer has to be that Obama is setting up some plausible deniability by firing or forcing the resignation of officials involved with GITMO policy. Once enough of these people are gone, Obama can look wide-eyed to the public and claim that he was badly served by his GITMO advisers and, therefore, it isn’t his fault.

Unfortunately for Obama the failure is not with the staff but with the chief himself, Obama.

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Lawmakers in New York and Illinois were quick to recognize that Khalid Sheikh Mohammed’s trial offered a new opportunity to secure billions of additional taxpayer funds.

Both states are reeling from the combined effect of economic slowdown and years of profligate spending on government, grown far beyond what the tax base will support.   Thanks to President Obama’s decision to transfer terrorists from GITMO to U.S. soil, both states, and the city of New York, are going to be paid almost $3 billion dollars to secure, transport, administer, house, and contend with the requirements associated with having these terrorists in the United States.

Khalid Sheikh Mohammed (KSM), the four other terrorists and all Americans associated with the trial, will require rigorous, differentiated security measures: twenty-four hour a day surveillance, transportation, housing and judicial security.  Certainly, New York will be required to raise its threat level to better prepare and respond to the new threat of  sympathetic  jihadists using the trial, as a showpiece of their own, to make a violent, retaliatory public statement.

Federal security and law enforcement agencies, such as DHS, FBI and US Marshals  will be working round the clock to provide the appropriate security, but will be unable to do all of the work required. New York, state and city, law enforcement officers will be required to share the burden, and will expect compensation from the federal government to provide this level of support.  Heavily-unionized, public employees in both states, are about to receive the most coveted of all Labor Union prizes, unlimited overtime that extends for years.

Bringing KSM to trial will be hugely expensive and will essentially represent a federalization of much of the New York state and city law enforcement and public services for the 5+ years that the trial process is likely to run.

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It recently came to light that individuals employed by ACORN have been apparent accomplices with regard to the conduct of alleged criminal activities.  Surprisingly, it was the investigative ingenuity of ordinary citizens who brought this information to the attention of the public.  As a Member of Congress, these revelations are of interest to me in that ACORN is the beneficiary of substantial federal funding.  As the former Attorney General of my state of California, this story is of great concern to me for an entirely different reason.  Ironically, it is those who revealed the alleged illegal acts, rather than the perpetrators of those acts, who find themselves under threat of criminal prosecution.  To anyone with a modicum of common sense, this would seem to turn justice on its head.

How could this happen?  Certain states, such as Maryland, have statutes prohibiting the recording of conversations without the consent of the other party.  Unfortunately for the young investigative entrepreneurs, their disclosure of alleged illegal activities carried out by the ACORN employees took place in these so-called “two party consent states” which prohibit the recording of confidential communications without the permission of all parties.

There have been comments released by the State’s Attorneys Office for Baltimore that:

If it is determined that the audio portion now being heard on YouTube was illegally obtained, it is also illegal under Maryland Law to willfully use or willfully disclose the content of said audio.  The penalty for the unlawful interception, disclosure or use of it is a felony punishable up to 5 years.

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