Lawson for Congress

President Obama’s budget proposal released today has attracted much attention for its stunning price tag: $3.8 trillion, with a projected one-year deficit of $1.6 trillion.

While there are some who downplay the importance of deficits (Dick Cheney comes to mind, as does Marshall Auerback), discerning Americans know that folks singing the praises of stimulatory deficit spending are actually repeating the discredited refrain of the (in)famous financier Jay Cooke. Mr. Cooke authored a pamphlet entitled How Our National Debt May Be a National Blessing before he helped unleash a credit bubble that bankrupted himself and his country in the Panic of 1873.

Somewhat lost in the partisan response to President Obama’s budget, however, is the realization that cutting discretionary spending is not enough. Now more than ever, it should be obvious that we must come home from Iraq, and not sacrifice more people and treasure in Afghanistan. In short, this proposed budget contains 1.6 trillion reasons to bring our troops home.

It has been said that “War is the health of the State.” With respect to war, we have been veritable gluttons over the past few decades. We’ve fought a War on Poverty, War on Cancer, War on Drugs, and War on Terror. What do we have to show for our efforts?

More poverty, more cancer, more drugs, and more terror.

So where is the health? When you drive into any small town in North Carolina, the nicest building is typically the city hall, courthouse, or prison. The police and sheriff cars are usually sweet looking, brand new hot rods with low-profile light bars, and often at events you see public safety personnel rolling around on pricey Segway scooters.

Yet factories are boarded up, commercial building are vacant and falling into disrepair, and our state’s unemployment insurance fund is bankrupt and borrowing from the federal government.

We can no longer afford to police the world, or fund welfare across the world through foreign aid. It’s time to dismantle the welfare and warfare state, eliminate the income tax that punishes work and productivity, and start creating jobs and rebuilding our economy.

Ever want to buy your very own Congressman? A legislative tool to get the job done, especially dirty jobs that violate the trust of the American people? How much do you think it would cost?

It turns out surprisingly little.

Meet Rep. Mel Watt of North Carolina’s 12th District. Commercial banks have been his largest career donor, giving a total of $319,822 over the past ten years. That’s just a little over $30,000 per year.

What do banking lobbyists get in return?

Rep. Watt chairs the House Financial Services monetary policy subcommittee. Last Friday, Rep. Ron Paul reported that our Federal Reserve Transparency Act (HR 1207) was “gutted” in Rep. Watt’s subcommittee. Rep. Watt’s changes restricted inquiry around transactions with foreign central banks, monetary policy deliberations, transactions made under the direction of the Federal Open Market Committee and communications between the Board, the reserve banks and staff.

Not a bad return on investment for the Fed and its lobbyists.

In defense of Rep. Watt, however, it’s not totally his fault. His district is the most obviously gerrymandered in North Carolina, following I-85 like a snake from Charlotte to Winston Salem. It is overwhelmingly Democratic, and his re-election has never been seriously challenged. Why should he represent the people when he is electorally invincible?

An invincible incumbent is the most useful tool, and a bargain to boot.

While we may not be able to hold Rep. Watt accountable, we can fight back. His attempt to eviscerate HR1207 must be approved by the full Financial Services committee. It is essential that we contact each member of the Financial Services committee TODAY and let them know Rep. Watt’s proposed changes are unacceptable. Please review the list of committee members, and focus on your representative, or those from your state.

I’ve attached my letter below to help you get started. Join me at DownsizeDC.org to use their Educate the Powerful system — it’s the easiest way to get your message to Congress.

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Dear Representative Miller,

I am writing you in your capacity as a member of the House Committee on Financial Services.

You may be aware that Rep. Mel Watt’s subcommittee on monetary policy introduced changes to the Federal Reserve Transparency Act (HR 1207) that restrict inquiry around transactions with foreign central banks, monetary policy deliberations, transactions made under the direction of the Federal Open Market Committee and communications between the Board, the reserve banks and staff.

These changes have the practical effect of killing the bill, and eliminating the transparency that our economy and financial markets require for stability and sustainable growth.

It is clear that Rep. Watt is serving the banking lobbyists who have funded his campaigns over the past decade. It is also clear that he does not fear for his re-election, given his willingness to put the bankers’ narrow interests above those of the American people.

Your district is not quite as safe. There are many people across party lines who will work to defeat you if you support Rep. Watt’s changes.

HR 1207 has over 300 cosponsors in its original form. I trust you will use your influence to remove Rep. Watt’s changes, and bring HR 1207 to a vote on the House floor in its original form.

Sincerely,

William (B.J.) Lawson

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P.S — In a recent video message, Ron Paul indicated that it is especially important that constituents contact the 13 Democrats on the Financial Services committee who already co-sponsored HR 1207, with a VERY polite reminder that you STILL want them to support the ORIGINAL bill, and to resist Mr. Watt’s amendments.

For your convenience, here is that list . . .
Rep. John Adler, NJ (202) 225-4765
Rep. Travis Childers, MS (202) 225-4306
Rep. Steve Driehaus, OH (202) 225-2216
Rep. Alan Grayson, FL (202) 225-2176
Rep. Rubén Hinojosa, TX (202) 225-2531
Rep. Suzanne Kosmas, FL (877) 956-7627
Rep. Dan Maffei, NY (202) 225-3701
Rep. Brad Miller, NC (202) 225-3032
Rep. Walt Minnick, ID (202) 225-6611
Rep. Ed Perlmutter, CO (202)-225-2645
Rep. David Scott, GA (202) 225-2939
Rep. Brad Sherman, CA (202) 225-5911
Rep. Jackie Speier, CA (202) 225-3531

Orwell would be proud of last week’s Federal Reserve Accountability Act (S 1803). Thanks to our success advancing the Federal Reserve Transparency Act (HR 1207, and its companion legislation S 604), the banking lobby felt compelled to offer S 1803 as its own “alternative”.

Needless to say, the Federal Reserve Accountability Act will help the Fed avoid accountability. It severely limits audit scopes, and sets unreasonable timeframes that will delay or postpone indefinitely certain audits. At some level, it’s tragic comedy — imagine authorizing an audit to be performed one year after a program is terminated. Of course, what happens if the program is never terminated?

The good news is that we’re making progress.

The banking lobby feels threatened enough by HR 1207/S 604 to convince Senators Jeff Merkley (D-OR) and Bob Corker (R-TN) to attempt this maneuver, and other Senators are being forced to take awkward positions against S 604 and true transparency.

For example, North Carolina Senator Kay Hagan announced in a constituent email last week that she does not support S 604. Her objection? Apparently transparency is dangerous:

The immediate and broad disclosure that S. 604 would require could disrupt the financial markets, and jeopardize our country’s international finance relationships. Ultimately, it would be taxpayers who would bear the brunt of any losses resulting from policies caused by untimely disclosure of sensitive information.

It is sad and ironic that a freshman Senator elected on the coattails of “change” has decided to serve the banking lobby instead of the millions of Americans who have been crushed by the Federal Reserve’s economic malpractice.It is time to stand up for real change, and march against increasingly imperial Senators lining up against S 604.

Please send your version of the following letter to Senator Hagan, or join me at DownsizeDC to contact your Senator if he or she has not yet cosponsored S 604.

Dear Senator Hagan,

I’m afraid your rationale for opposing the Federal Reserve Sunshine Act (S 604) is backwards. You stated:

The immediate and broad disclosure that S. 604 would require could disrupt the financial markets, and jeopardize our country’s international finance relationships. Ultimately, it would be taxpayers who would bear the brunt of any losses resulting from policies caused by untimely disclosure of sensitive information.

In fact, financial markets require honesty and transparency for efficient capital allocation, and systemic stability. The lack of transparency in our financial markets, which are increasingly dominated by the Federal Reserve, is causing ongoing disruption in our markets, and jeopardizing our international financial relationships.

In short, our financial system is still in critical condition. Lying and obfuscation are the disease. Honesty and transparency are the cure.

Senator Hagan, you were elected last November to bring change to Washington. Our banking lobby doesn’t need your help — they’re doing an excellent job privatizing profits while socializing losses. Please stand up for the millions of Americans who are suffering with the worst job losses of any postwar recession, and take this first step to restoring transparency and stability.

Sincerely,

William (B.J.) Lawson
Apex, North Carolina

After much consideration with family and friends, I have decided not to run against David Price again in 2010.

I remain grateful to the support of over 4,500 donors across the country, giving on average over $100 and helping us wage a surprisingly vigorous campaign against our twenty-two year incumbent. I remain grateful to over 200 grassroots volunteers who helped us staff every polling place from early voting until election day, and our out-of-state volunteers who called thousands of voters.

Our campaign would have been nothing without you, and thanks to your contributions we were noted for running a strong campaign in a district where gerrymandering gives Republicans a base of 26%.

I’m a big fan of return on investment, however, and while I was curious and passionate enough to run once, 37% is a long way from winning. Ultimately, I can’t justify spending my time and your money in North Carolina’s 4th District* at this time.

Instead, my attention will be focused on principled challengers like Dr. Rand Paul (KY-Senate), Peter Schiff (CT-Senate), Dr. Mike Vasovski (SC-03), and my friend Adam Kokesh (NM-03). I hope you will join me in supporting them, and other candidates we discover who have the courage to fight our slide into corporate fascism disguised as Keynesian neoliberalism**.

Additionally, we in North Carolina need to elect more principled Republicans to state legislature in 2010 so our next redistricting can empower voters to choose their politicians, instead of vice versa. We must also eliminate our state’s tyrannical involuntary municipal annexation laws, and stop our Californicating state budget… but who’s counting?

While our governments’ insanity is overwhelming, ultimately, there is strength in numbers. If you haven’t already, please join DownsizeDC.org so we can apply continued, transpartisan pressure to vulnerable legislators (well, at least those who haven’t been gerrymandered into eternity). I also look forward to staying in touch with you through the Campaign for Liberty and Republican Liberty Caucus.

Finally, please don’t get too focused on politicking that you forget to prepare yourself and your family for the challenges ahead. While we strive for change through the ballot box, recent reports suggest that our nation is sliding dangerously close to economic and social limits:

• The FDIC has failed to close down several large insolvent banks, thus leading to informed speculation that it is bankrupt.
• Alabama’s most populous county anticipates calling the National Guard for law enforcement as a result of its pending bankruptcy.
• The Army National Guard is advertising for Internment/Resettlement Specialists to assist with supervision and management of confinement and detention operations. Probably not related :-).
• Healthcare “reform” driven by established special interests further reduces doctor and patient freedoms and, as a special bonus, features a government mandate to encourage “death with dignity“.
• Just last week, Congress passed the Food Safety Enhancement Act of 2009, which grants the FDA the authority to regulate how crops are raised and harvested, to quarantine a geographic area, to make warrantless searches of business records, and to establish a national food tracing system. Great news for Monsanto, bad news for your local foodshed.
• Goldman Sachs revealed yesterday that its trading operations achieved a new record of 46 days (out of a possible 65) of greater than $100 million in profit. Yes, that’s trading profits of $100 million per day on 46 separate days. It appears they’re really good at trading, despite only being in business thanks to the U.S. taxpayer — or perhaps your growing distrust of our capital markets is justified.
• I’m not even going to comment on the continued sequelae of our endless bailouts and corporate welfare in the real, wealth-producing economy. As eminent economist and humanitarian Dick Cheney said, “deficits don’t matter” — and we’re about to find out.

If you’re looking for a thoughtful community of people working to increase self-sufficiency in this hostile environment, keep an eye on Chris Martenson’s excellent Web site.

In liberty,
BJ

* There is another Republican candidate who has declared his intent to contest Price in NC-04. While he was kind enough to seek my endorsement, we fundamentally disagree on the value of the Federal Reserve and its communist, debt-based money. Plank 5 of the Communist Manifesto details how we have been turned us into Wall Street’s debt slaves, and until we correctly diagnose our underlying economic illness, the mad scientists in Washington and on Wall Street are simply making things worse. His defense of this unsustainable system is understandable, as he is a currency trader previously employed by Societe Generale — the French bank that profited handsomely from your (and my) bailing out AIG. Caveat emptor.

** This comment should not be construed as respect for, or endorsement of, equally dangerous neoconservatism. Un-American partisan ideologies on both sides (of the same coin) have been consolidating power, sacrificing our sovereignty, reducing individual liberties, and advancing corporate fascism at an accelerating pace.

I hope you are enjoying a beautiful and bountiful summer. We’ve just finished up the political organizing season with an interesting NC GOP convention, and we’ve been taking some family time to get our personal house (well, gardens really) in order while preparing for what’s next.

There’s more to come on both of those fronts, but I wanted to drop a quick note on recent events with some good news. Just this week the Obama Administration presented its plans for (re)regulating the financial system, and Treasury Secretary Geithner was defending the proposal on Capitol Hill yesterday.

As you might imagine, educated observers are not impressed. Perhaps the greatest oxymoron is giving the Federal Reserve additional authority as a “systemic risk regulator,” despite its demonstrated incompetence in preventing, predicting, or even recognizing systemic risk of its own creation over the past two decades, culminating in our current crisis.

Despite the Fed’s performance as grounds for skepticism, I still run into people who are comfortable placing more trust and authority in our central bank. Apparently its placing $15 trillion of public funds at risk in one year (yes, that’s around our total GDP) isn’t reason enough to seek more fundamental reform. How can that be?

Helpful hint: when you find folks who articulately defend the status quo, and don’t think transparency and accountability need apply with money and banking, ask for their resumes. Chances are they have spent more time benefiting personally from the system than understanding and experiencing its undesirable side effects.

The good news, however, is that our fight for Federal Reserve accountability is bearing fruit. H.R. 1207, the Federal Reserve Transparency Act introduced by Rep. Ron Paul, now has 234 cosponsors — that’s a majority, with broad bipartisan support.

Given our recent success, it’s no surprise that the Federal Reserve is hiring veteran lobbyist Linda Robertson to represent its interests on Capitol Hill — the ultimate irony is that Ms. Robertson is best known for heading Enron’s lobbying office before its 2002 collapse. Clearly, hiring Enron’s former lobbyist means we’re making progress!

On another encouraging note, I hope you’ve been able to follow the revolution unfolding in Iran. Despite media restrictions, courageous Iranian citizens are documenting their growing uprising against tyranny via cellphones, video cameras, and intermittent Internet connections.

While it’s dangerous to draw conclusions from real-time blogs, cell phone videos, and Twitter, there are some encouraging signs. For example, we continue to see graphic videos of beatings and shootings by the private militia loyal to the current regime as they seek power through fear and intimidation. As the crowds have swelled, however, some of these Basij militia are now covering their faces to avoid retaliation by protesters.

As our Independence Day approaches, I do hope our Supreme Court is watching the videos of home/dorm invasions, beatings, and killings by the Basij militia. As noted by Jews for the Preservation of Firearm Ownership, the purpose of our Second Amendment has never been clearer.

I need your help making an important phone call. Today is a national day of action in support of HR 1207, the Federal Reserve Transparency Act. This essential legislation, introduced by Texas Republican Ron Paul, will open up the Federal Reserve to a full and complete audit by the GAO.

It’s bad enough that taxpayers have pledged over $12 trillion to prop up a financial system best described as corporate socialism. It’s even worse that the primary entity responsible for our economic crisis dismissively ignores Freedom of Information Act requests for transparency and use of taxpayer funds.

HR 1207 already has over 90 cosponsors, with broad bipartisan support. Unfortunately, this support does not extend to our Representative David Price. Would you please join me in calling David Price’s office at 202-225-1784 to request that he cosponsor HR 1207?

If you’re outside of North Carolina’s 4th District, visit the Campaign for Liberty’s Web site to find out if you need to contact your representative:

http://www.campaignforliberty.com/campaigns/supporthr1207.php

Thanks!

Just a quick note to let you know I’m going to be on Fox Business around 2:20pm this afternoon to discuss my work reinvigorating our local currency, the PLENTY.

As all true free market advocates know, we can’t have a free market when money and credit are under monopoly control. Our region of North Carolina had the benefit of forward-thinking activists who launched a community currency in 2001, and I’ve been working with a talented group of folks to reinvigorate and relaunch the currency since last fall.

Why might a community embrace a local currency? A local currency circulates within a community, encourages self-sufficiency, and spurs economic growth the old-fashioned way –  encouraging and rewarding people for helping other people. It is also a stepping stone to a desperately-needed education about the nature of money itself — as people use a local currency, they start asking basic questions about money and its relationship to a healthy economy.

We’re still a few weeks away from our relaunch as a fully-reserved community currency in partnership with Pittsboro’s Capital Bank, but an article in the USA Today on Monday triggered a wave of media attention highlighting our work to grow our economy by asserting our most basic economic freedom. If you’d like to follow our progress, and learn more about local currencies in general, please visit our Web site at www.theplenty.org.

It’s ironic that my former opponent is still in Washington trying to “help” by TARPing, TALFing, and PIPPing us to death. If you’re tired of being TARPed, TALFed, and PIPPed, why don’t you try doing business in a local currency for a change?

Whom do you trust?

It’s an open question that I’ve been pondering for the past several weeks. The markets have been asking this question, as well — despite billions of additional borrowed money to bail out Citibank and protect AIG’s trading partners, we keep sliding to new lows as debt deflation continues.

Our Treasury Secretary, Turbo Tax Tim Geithner, sat in front of the Ways and Means Committee yesterday to assure our representatives that his actions, and Obama’s budget proposal, are absolutely necessary to restore our economy. His favorite quote when confronted by pointed questions or painful anecdotes from our current crisis was, “That’s exactly why we need to…” [bail out AIG/increase the TARP/create the TALF/embrace a budget that forecasts a $1.75 trillion deficit].

Oh, really?

Keep in mind that just last week Geithner gave a massive gift, at our expense, to Citibank.  He exchanged the Treasury’s preferred stock for common stock valued at $3.25 per share.

Yesterday, that Citibank common stock closed at $1.22. We, as taxpayers, have given Citibank far more than its market capitalization, yet watch a minority stake dwindle towards worthlessness.

Why should we believe any words that come out of Geithner’s mouth? Does anyone believe he has the interest of American citizens in mind?

Here’s my take — it’s up to all of us to move quickly through the stages of grief. Many still labor in stubborn denial. Anger doesn’t help. Rationalization — particularly prevalent among Obama supporters desperately looking for “change” — also interferes with preparing for what’s next.

It’s time to accept that we are approaching an economic dislocation that has been decades in the making. It is the mathematically-inevitable consequence of an system that tends towards instability — it’s not a bug, it’s a feature. It’s the system working as designed.

Once we can accept that our politicians and bureaucrats intent on consolidating power, and corporate interests committed to the status quo, will neither admit nor address the root causes of this crisis, we can prepare ourselves and our communities for what comes next.

What comes next requires a government that rejects oligarchy, embraces individual liberty and responsibility, and empowers us to rebuild our communities by restoring trust.

I’ve mentioned Chris Martenson’s Crash Course before, and I want to publicize the fantastic educational (and refreshingly apolitical) forum Chris has grown over the past several years to discuss our current challenges and rationally prepare for the future. I’m also excited to report that a good friend from Virginia Beach is helping Chris host a Crash Course Seminar in Lowesville, Virginia on April 24th.

It will be an excellent opportunity for people ready to embrace and create change to think, plan, and connect. I hope you’ll consider attending — especially if you prefer being part of the solution instead of waiting for Turbo Tim to figure out that he’s actually making things worse.

When we substitute influence peddling for the Rule of Law, the value of Washington lobbyists becomes evident. As today’s Wall Street Journal notes, the return on investment is huge:

General Motors Corp. spent $3.3 million on lobbying in the fourth quarter of 2008, a period that coincides with the government committing $13.4 billion to the ailing auto maker under the Treasury’s Troubled Asset Relief Program. In all of 2008, GM spent $13.1 million on lobbying, down from $14.3 million in 2007. GM’s reported lobbying expenses for 2008 were only slightly less than combined spending by Ford Motor Co. and Chrysler LLC.

“Lobbying is the transparent and effective way that GM has its voice heard on critical policy issues…that companies should not be required to forfeit if they receive federal funding,” said GM spokesman Greg A. Martin, who added that no funds lent from the Treasury would be used for lobbying.

The last sentence is especially insightful. Clearly, they must have keep their lobbying cash in a separate bucket from the truckloads of funds delivered from the federal government. How else would they keep score, and learn that their return on lobbying investment was 1,000-to-1 in 2008? The article also reports the combined Bank of America/Merrill Lynch lobbying return was over 5,000-to-1: $45 billion received, versus $8.8 million spent.

Read more…