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18th Century Perspective On Government Inability To Pay

Harlan Giles Unger’s The Last Founding Father: James Monroe and a Nation’s Call to Greatness contains an anecdote about James Monroe’s time as a Virginia delegate to the Confederation Congress that seems somehow apropos:

Monroe, on the other hand, arrived in Annapolis all but penniless—as yet unpaid for his government services in Virginia.

There is not one shilling in the Treasury,” [future Chief Justice John] Marshall wrote to Monroe late in February, after Monroe had pleaded to his friend for help, “and the keeper of it could not borrow one on the faith of the government. The extreme inclemency of the season has rendered it impossible for the Sheriffs to make tax collections and I have my fears that you will not receive [your pay] till some time in April.” To add to Monroe’s financial woes Marshall reported that a Richmond merchant had demanded payment on merchandise Monroe had purchased and that his landlady “begins to be a little clamorous” for overdue rent.”

This I think captures what happens if the Treasury isn’t allowed to engage in new formal borrowing better than the vague term “default.” The government of Virginia owed James Monroe money. But tax collections had fallen short of the government’s obligations. The reasonable approach would be for Virginia to borrow some money in order to meet its obligations, and then pay what was owed at a later date when the revenue situation was more promising. But nobody would lend Virginia money, so instead you got what amounted to a forced loan from Monroe to Virginia. That’s what’ll happen on Aug. 2, the government will start “borrowing” money from state governments, federal employees, government contractors, and others who are owed payment in the form of simply not paying them.

It is worth dwelling on the fact that the founders of the country were acutely aware of what it was like to inhabit a country with a lot of wealth (in their case, land) but a depressed trade due to a dysfunctional financial system due to a lack of state capacity to make and meet credible financial commitments. The constitutional system was intended to remedy precisely this problem. But now it’s failing, and failing rather badly.

Politics

After Enthusiastically Using Filibuster, GOP Begs Democrats Not To Filibuster Cut, Cap, And Balance Plan

Sen. Jim DeMint (R-SC)

Since 2009, Senate Republicans have forced virtually every bill to pass the 60-vote cloture threshold before it could come to the floor for actual debate. This unprecedented obstruction forced Senate Democrats to find 60 supporting votes — as opposed to a simple majority of 51 — to pass health care reform, financial regulatory reform, the repeal of Don’t Ask, Don’t Tell, the economic stimulus package, and nearly every other bill they considered, and killed critical legislation like a climate change bill, immigration reform, and the DREAM Act. In addition, Republicans have successfully filibustered an unheard-of number of judicial and cabinet-level nominees, hindering the efficacy of both branches.

But after they failed to get 60 votes for their Cut, Cap, and Balance plan last week, a group of Senate Republicans is urging Majority Leader Harry Reid (D-NV) to bring it to the floor for debate, thus allowing it to pass with only 51 votes. The senators sent Reid a letter today, obtained by Slate’s Dave Weigel:

We urge Senate Majority Leader Reid to reconsider the tabled bill and let the Senate debate it fully, in full view of the American people — so that it may garner the four or five votes that it needs to pass — and to agree that it should pass without invoking the 60 vote cloture threshold in recognition of the urgency of the matter.

Rep. Jim Jordan (R-OH) made the same argument on Fox News this afternoon, saying the bill was only tabled, not defeated, and Reid should bring it to the floor for debate.

The Republican approach ignores numerous obstacles for the bill. If Reid brought it to the floor, it would need to gain five more votes to pass the Senate with just a simple majority. Even if it passed, President Obama has promised to veto it. And even if Obama signed it into law, it would still need approval from two-thirds of both houses of Congress to send the actual Balanced Budget Amendment to the states for ratification. The House passed the bill, but would need roughly 57 more votes to approve the amendment, while the Senate would need to find 21 more votes.

Republicans, including House Speaker John Boehner (R-OH), continue to cling to the notion that their radical Balanced Budget Amendment — which would force draconian spending cuts and exacerbate the pain of future recessions — is a serious plan in the search for a debt deal. Even less serious than the actual plan, however, is asking Democrats not to use the very rules that have allowed Republicans to grind the Senate to a halt for the last three years.

NEWS FLASH

Law Schools End Military Recruiting Ban After DADT Repeal Certification | The only two American law schools with an outright ban on military recruiting on campus, Vermont Law School and William Mitchell College of Law, both announced they will once again allow recruiters now that President Obama put the final stages of Don’t Ask, Don’t Tell repeal in motion. Because federal law forbids universities from receiving federal funds if they do not allow military recruiters on campus, Vermont and William Mitchell were the only two law schools that actually excluded recruiters, although many law schools made symbolic acts of protest against the military’s discriminatory hiring practices. While she was dean of Harvard Law School, for example, Justice Elena Kagan never once excluded military recruiters from campus, although Harvard did briefly require those recruiters to arrange their visits through a different contact person than the one that coordinated visits from other employers.

Climate Progress

Climate Hawk Tim DeChristopher Faces Jail For Disrupting Bush Assault On Planet

In March, Tim DeChristopher was convicted on two felony counts for disrupting an oil lease auction at the end of the Bush administration. Today, “barring any further delays, he will face a sentence of up to 10 years behind bars — even though Obama Interior Secretary Ken Salazar cancelled the bids before DeChristopher was even charged.”

President Obama’s Department of Justice has relentlessly pursued putting DeChristopher into prison. In contrast, no charges have been brought up against BP or Massey Energy for their deadly catastrophes in April 2010, which collectively killed 40 Americans, in addition to the environmental damage done. Nor have any charges been brought against the financial companies which caused a global economic meltdown through their unlimited greed. Public Citizen responds:

While the actions of major corporations like Massey Energy and BP have led to vast environmental damages, safety hazards and even deaths, these companies never seem to get the punishment they deserve. When compared to the leniency afforded corporate polluters, his potential sentence seems unreasonably severe.

Noting that DeChristopher acted because of the global warming pollution the oil lease sale would unleash, Bill McKibben warns that the federal government’s prosecutorial zeal is creating a martyr:

The last year was the warmest in human history. Just last week new studies showed that with that heat came the most extreme weather ever measured, a spate of floods and droughts biblical in scope and power. DeChristopher is proving prophetic, and sticking prophets in jail does not rob them of their power.

McKibben is organizing weeks of climate civil disobedience aimed at the president, beginning Aug. 20.

NEWS FLASH

NAACP Passes Resolution Calling For End To Drug War | The NAACP passed a “historic resolution” today at its convention in Los Angeles calling for an end to the war on drugs. “These flawed drug policies that have been mostly enforced in African American communities must be stopped and replaced with evidenced-based practices that address the root causes of drug use and abuse in America,” President and CEO Ben Jealous said in a press release. Instead of sending drug offenders to prison, the NAACP is calling for a public health-oriented approach. The move comes after a high-level international panel in June called the drug war a “failure” and urged world governments to adopt a similar approach.

Florida Looks For The Lowest Bidder As It Privatizes 30 State Prisons

Florida is seeking bids from private companies to take over management of 30 state prisons in an 18-country area in South Florida. The “fastest privatization venture ever undertaken by the state of Florida” is an effort by Gov. Rick Scott (R) to save the state money by outsourcing prison oversight to the lowest bidder:

In an effort to cut costs, Gov. Rick Scott and the Legislature set a Jan. 1, 2012, deadline to privatize 30 state prisons, road camps and work release centers. [...]

The state will hire only one company to run all those prisons, which sets up a high-stakes competitive battle between the nation’s two biggest private prison operators: Corrections Corp. of America, based in Nashville, and the GEO Group of Boca Raton. Both companies already operate prisons in Florida. [...]

The bidding process is moving ahead despite a lawsuit filed by the Florida Police Benevolent Association, the bargaining agent for unionized correctional officers.

PBA Executive Director Matt Puckett said he had not thoroughly analyzed the bid documents and could not comment on them in detail. But the union leader said many PBA members in South Florida are “devastated” at the prospects of having to find new jobs or move upstate to keep their prison jobs.

As ThinkProgress previously reported, Scott has long advocated privatizing prisons which “could open a lucrative door to politically connected vendors who stand to profit.” GEO Group already manages two of the state’s seven private prisons and is a “prime financier of the Republican Party” that gave more than $400,000 to GOP in the 2010 election cycle alone and gave the maximum $25,000 to Scott’s inaugural fund.

The Corrections Corporation of America, the nation’s largest corrections company, also has close connections to GOP statehouses across the country. The company has spent $373,000 in political contributions in Florida since 2003, over 60 percent of which have gone to Republicans.

And the private prison industry isn’t just lobbying to take over state prisons; it’s also “working to make money through harsh policies and longer sentences.” According to a report by the Justice Policy Institute (JPI), private prisons spend millions on lobbying to put more people in jail, which translates to more profits for them. Last year, Corrections Corporation of America and GEO Group made over $2.9 billion in revenue.

Goodwin Liu Nominated To California Supreme Court

California Gov. Jerry Brown just nominated Berkeley Law Professor and former Ninth Circuit nominee Goodwin Liu to a seat on the California Supreme Court. Liu, a former law clerk to Justice Ruth Bader Ginsburg and one of the nation’s leading constitutional scholars, was the subject of a blistering smear campaign by conservatives determined to prevent Obama’s youngest and one of his most talented nominees from becoming a judge:

Yet if you spent just a few minutes listening to Liu’s opponents, you would think he was the second coming of Mao Tse-tung. Sen. Chuck Grassley (R-IA) literally accused Liu of wanting to make America more like “communist-run China.” Other senators fixated on a pair of law review articles Liu wrote as proof that Liu would use a position on the federal bench to create all kinds of new welfare programs and somehow seize control of America’s schools. [...]

[T]he suggestion that Liu would somehow create massive new welfare programs by judicial fiat stems from an article where he actually called for the opposite. That article explicitly calls for “legislative supremacy” in defining the scope of welfare rights, and it explains that it would have been utterly inappropriate for the courts to second-guess Congress’s decision to roll back welfare rights in its 1996 welfare reform law.

Liu’s article also explains that the Constitution provides certain protections that ensure fair and equal access to welfare—but this view is shared by conservative Justice Antonin Scalia. Scalia joined the Supreme Court’s decision in Saenz v. Roe, which struck down a California law on constitutional grounds because it denied some California residents a portion of their welfare benefits. In other words, if Liu’s stance on constitutional welfare rights disqualifies him from the federal bench, it also disqualifies Scalia.

Brown’s nomination of Liu will almost certainly receive the same drummed-up outrage from the right that his nomination to the federal bench triggered, but conservatives will likely be unable to obstruct Liu from taking a seat on the state supreme court. Under the California Constitution, Liu’s nomination must be confirmed by a Commission on Judicial Appointments that includes the Chief Justice, the Attorney General and a sitting court of appeals judge. Given Liu’s sterling legal credentials, this commission will have a tough time finding objectionable in Liu’s record.

It’s worth noting, however, that Liu’s appointment is only temporary unless it is confirmed by the electorate in the next general election. So there is a very real risk that wealthy right-wing interest groups will try to buy Liu’s seat on the state Supreme Court with attack ads and other campaign funding just like they dumped money into similar efforts in Wisconsin and Iowa.

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South Carolina GOP Official ‘Likes’ Cop-Killing On Facebook

South Carolina Republican Kershaw County co-chairman Jeff Mattox is being asked to step down after he endorsed a Facebook article titled “When Should You Shoot A Cop.” The article was posted on the Facebook page of the Kershaw County Patriots, a Tea Party group “specializing in maniacal anti-government paranoia” of which Mattox is a proud member:

A South Carolina Republican county co-chair is embroiled in a controversy over “liking” a Facebook article that advocated shooting law enforcement officers.

Jeff Mattox, who is also a tea party activist with the Kershaw County Patriots, gave digital plaudits to an article entitled “When Should You Shoot A Cop” posted on the Patriot’s Facebook page.

“That’s what it means to have an unalienable right. If you have the unalienable right to speak your mind (a la the First Amendment), then you have the right to KILL “government” agents who try to shut you up. If you have the unalienable right to be armed, then you have the right to KILL ”government” agents who try to disarm you,” argued a poster at copblock.org


The article concludes, “The next time you hear of a police officer being killed ‘in the line of duty,’ take a moment to consider the very real possibility that maybe in that case, the ‘law enforcer’ was the bad guy and the ‘cop killer’ was the good guy.”

Kershaw County Republican chair Chris Oviatt told Politico he had asked Mattox to step down from the party.

As a result of the inflammatory Facebook article, which compares American law enforcement officers and agencies to Communist and Nazi regimes, Kershaw county police officers are on higher alert and reportedly wearing body armor. Sheriff Jim Matthews called the posting “irresponsible” and “hateful.” He also expressed concern that the Patriots might be linked to the Sovereign Citizen movement, which the FBI describes as “anti-government extremists who…believe they don’t have to answer to any government authority.”

Mattox defended himself by saying, “Police sometimes do overstep their bounds, but advocating shooting a cop? No. It’s just kind of a conversation.” However, Mattox himself has posted a YouTube video called “End of Liberty,” which lambasts “out of control cops.”

Justiceline: July 26, 2011

Welcome to Justiceline, ThinkProgress Justice’s morning round-up of the latest legal news and developments. Remember to follow us on Twitter at @TPJustice.

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