Gary Cohn of Goldman Sachs in the White House: A Hidden Agenda?

Rex Tillerson, the U.S. Secretary of State fired by U.S. President Donald Trump and former CEO of Exxon, an international oil company based in the U.S., did not allow his difference with the president of tariffs on steel and aluminum to be a deal breaker. In this respect, the ex-CEO was not doing his company’s bidding. That is to say, he was not primarily in public service to serve the private interests of a multinational corporation. Unfortunately, this cannot be said of Gary Cohn, the ex-president of Goldman Sachs who quit as Trump’s chief economic advisor just after the tariffs were announced. Tariffs in general and especially to protect goods in another sector are not in the interests of a major American banks with substantial international business. If the former president of Goldman Sachs had taken the post in government to further Goldman’s interests, the question is whether public service is mere window-dressing at the highest levels of government—plutocracy being the real name of the game.

In a statement at the time of his resignation, Cohn wrote, “It has been an honour to serve my country and enact pro-growth economic policies to benefit the American people. In particular the passage of historic tax reform.”[1] That reform lowered the corporate tax rate and thus was a financial benefit to Goldman Sachs. Cohn left this point out and instead cited the benefit to the American people, which might thus have been a mere subterfuge designed to hide the possibility that the ex-president of Goldman Sachs was actually doing his firm’s bidding.

That Cohn was instrumental in getting the corporate tax rate reduced and that he resigned at least in part because President Trump acted aversely to Goldman Sachs’ interests in enacting tariffs—even just as a negotiating tactic in the trade negotiations then going on—suggests that Cohn had taken the governmental post to safeguard and promote the financial interests of Goldman Sachs. Perhaps President Trump had been obliged to fill the position with such a person in exchange for having accepted campaign contributions from the firm or even the financial industry more generally. It would then be no accident that the Secretary of the Treasury was also a Goldman alum.

The larger question regards whether the public interest can be served in a political economy in which large companies have substantial political leverage over aspiring candidates for office via campaign contributions. At the time of Tillerson’s firing, President Trump remarked that he was finally able to have a cabinet of his own—of his choosing. This statement implies that he had been obliged initially to hand over several cabinet positions to people not of his own choosing. Had Exxon purchased the de facto first chance to fill the Secretary of State position, and Goldman Sachs the U.S. Treasury and chief economic advisor positions? With public statements insisting on having served the American people, which would hardly be need to be said were it true, it should come as no surprise that the American people have been kept in the dark concerning the influence of “dark” money on “public” offices at the expense of the public good.

For more on this topic, see Institutional Conflicts of Interest

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1. Kate Kelly, Maggie Haberman, and Peter Baker, “Gary Cohn to Resign as Trump’s Top Economic Advisor,” The New York  Times, March 6, 2018.

On the Presumptuousness of Power: Does Wall Street Own Congress?

At the end of April, 2009, U.S. Senator Richard Durbin blamed the powerful banking lobby for the defeat of legislation that would have allowed bankruptcy judges to modify some troubled mortgages.  Even as mortgage servers were claiming to be overwhelmed with requests from distressed borrowers for readjustments to the adjustable-rate mortgages (ARM), the banks and mortgage companies felt the need to stop the US Senate from enabling judges to relieve the backlog. Durban later said in an interview, “And the banks — hard to believe in a time when we’re facing a banking crisis that many of the banks created — are still the most powerful lobby on Capitol Hill. And they frankly own the place,” he said on WJJG 1530 AM radio's  “Mornings with Ray Hanania.” On October 30, 2009,  James K. Galbraith spoke on the Bill Moyers Journal on the bank lobby changing the financial system regulation reforms now being discussed in Congress.  That that lobby feels itself to be in a position to advise the Congress on a matter in which the banks were part of the problem is something that blows Galbraith away.   They should realize among themselves, or at the very least BE TOLD that their involvement is not helpful or appropriate.   Galbraith pointed out that we have a pretty good idea of what needs to be done governmentally to stave off another financial crisis—such as separating the commerical banking and investment trading (on the bank’s equity even!) functions and reducing the scale of the banks too big to fail.  However, there are a hundred reasons why the governing class will not follow through. 

For one, we can look back to Durbin’s comment that the banking lobby owns Congress.   The conflict of interest in the owner of Congress keeping Congress from legislating on the industry is a suffiicent basis for worry; that the lobby presumes itself to be in a position to advise or pressure on banking regulatory reform and that the lobby still has the muscle to see that it is still invited to the table strikes me as emetic.  It shows the arrogance of the corporate world and the corruption of the governing class.   The housing bubble and sub-prime mortgages were in the interest of both, and yet reform strangely is not.   I would add that any voter who goes on, business as usual, in voting for an incombant is contributing to the perpetuation of the  squalid system that we are now enjoying.

Imagine, just for a moment, that a friend or neighbor insults you.  You invite some other friends over to figure out how to deal with that friend or neighbor.  You are shocked when he or she walks in your front doorway (no need to hide) and sits down in your living room with the others.  Not only that, he or she presumes to advise the group, adding pressure or outright threats that the group had better come up with something that is good for him or her. Here’s what I’m getting at: focus for a moment on the attitude of the friend or neighbor.  In our normal interpersonal relations, we would rationally conclude that the person is delusional and excessively self-absorbed.  We tend to let positions or organizations keep us from viewing their people as other (flawed) human beings.   Arrogance built on presumption concerning a matter on which the person has screwed up and others are hurt  is or ought to be a huge red flag for the rest of us (and our representatives!).   I find this attitude to be far more difficult to understand and accept than the fact that industry lobbies have an inordinate amount of power in Washington. 

I find myself thinking about the nature of presumption that can manifest as an illness where it is beyond the pale. That the person involved probably doesn’t even see this suggests to me that a rather dysfunctional lot has congregated in the upper rafters of American banking.   What kind of a person pushes for his or her advantage in the efforts by others to clean up one’s mess?   That they are allowed in the room is alone a sad testament; that our representatives are actually succumbing to them is sordid indeed.   Of course, it is in the interest of big business that the political power be concentrated among the governing class in Washington.   We are mere bystanders as the dance unfolds. 

See related: Essays on the Financial Crisis

Sources:

http://www.politico.com/news/stories/0409/21962.html
http://www.huffingtonpost.com/2009/04/29/dick-durbin-banks-frankly_n_193010.html
http://www.huffingtonpost.com/2009/04/29/dick-durbin-banks-frankly_n_193010.html  (“own the place” quote)
http://www.pbs.org/moyers/journal/10302009/profile.html

Debating Federalism

It could be maintained that federalism gets in the way of solving problems that are simply too important to go unsolved.  In short, the argument is that federalism impedes progress on important issues. State to state differences should not be tolerated, he argues, where important needs are involved. “Resources and die-hard beliefs in the role of local government vary too much from state to state” for us to trust State government to deal satisfactorily with grave problems.   I suspect this view is widely held today.

In response, I would argue that the choice of a governance system should only partly be determined by the ease by which particular problems are solved.  In designing the U.S. Government to include a separation of power between the three branches, the delegates in the constitutional convention of 1787 were looking to thwart the solution of problems by the Union’s general government.  In addition to fearing tyranny from a consolidation of power into a few hands, they believed that the functions of that government should be limited because the state legislators are closer to the people, and thus better as republics.  Rather than being problematic,  differences between the States (generically), or republics (more specifically), are natural.  Given the scale involved in many of the States alone, how could a Union of many such republics be anything but inherently diverse?  To ignore the differences and impose one solution on all is artificial and likely to build up pressure for eventual dissolution.  Such pressure can unwittedly be built out of ignorance.   So “ease in solving problems” may actually be antithetical to the criteria we want for designing our system of governance spanning a continent. I would argue, moreover, that it is short-sighted to re-orient a system of governnance to the whims of what is best for handling particular problems of the day.  To subject long-term viability to the vissitudes of the day is to subject one’s posterity to ruin.

One could also point out that federalism is a historical means to forming the Union and is therefore antiquated (as the Union is now formed).  Some of the delegates to the constitutional convention would argue that they had to put up with the continued existence of the States simply due to the politics (i.e., the intractability of the delegates defending their respective States).   Certainly Hamilton would have preferred to do away with the States—replacing them with administrative districts of the federal government.  I believe that a significant number of Americans today share Hamilton’s view.  If this sentiment is dominant among the citizens, we should give serious thought to a constitutional convention for the purpose of replacing federalism with consolidation, officially through an amendment.  Even though I believe that this option is not compatible with having a republic at the Union level, if a super-majority wants to change our system of governance, it should be changed (assuming a “constitutional moment” of reflection and debate on the proposal).

I do not believe that federalism was merely used as a political means of achieving agreement on the creation of a general government.  As I have written in another post, the diversity spanning an empire-scale polity can be accommodated by federalism.  Some large States are sufficiently large in themselves that they have diversity that could justify a federal system.  Consider, for example, California and Illinois.  Each of these republics is sufficiently diverse in its provinces that federalism could accommodate the different cultures and bring legislation that is more fitting and less compromised for all concerned.   That new States have been added to the Union since its founding—some of the last of which being quite different culturally from the others (e.g., HI and AK)—means that there could be even more diversity within the Union today than when it was founded (assuming that transportation and communications technology has not totally overridden the diversity inherent in the territorial scale of empire).  Paradoxically, the need for federalism could be more pressing today.  I have already argued that republic principles may be stretched too thin at the empire scale.  This, plus the matter of accommodating diversity within the empire, strongly points to the utility of restoring federalism. 

Finally, someone could say something like,  ”I believe in the power of each State, but I have NO confidence in the people” running the State governments.”  This point may resonate with the extant condition of state government today in the United States. That is, the eclipse of the State governments has almost certainly had an impact on the quality of the representatives the State level.  Do the best and brightest really want to work in a legislature that has been reduced to considering by and large local government issues?  What sort of person would agree to campaign for a rather impotent position?   The situation now is markedly different than in the revolutionary period, when the preference of the best and brightest of the politicians was to serve their respective countries.   Even as late as 1860, General Lee felt obliged to fight for his native Virginia—turning down Lincoln’s request that he fight for the U.S. Government.   So presumably were a balance of power restored such that State governments would have real power over the issues that really concern us, we might find the quality of our State reps improve.  We might have better candidates to choose from, and we might take more interest in their campaigns.  So I would argue that the enervated conditon of State government today should not be taken as indicative of how such government would look were it restored to a balance of power with the U.S. Government. For example, were the National Governor's Association given a formal role in determining American foreign policy, we might see better candidates running for governor.

In closing, I want to note that being in a large Union that is inherently diverse does require a certain amount of tolerance for regional differences.  “Not trusting” a State’s people who have a different understanding of government or who feel a different way on a problem is not consistent with having a Union.  That is to say, we won’t last as a Union if a dominant faction in one region imposes its ideology on States in other regions spanning the continent.  A certain humility is necessary.  Of course,  a Union has certain bed-rock common principles (in our case, representative democracy, for example) that delimit certain behavior and laws (e.g., holding other races in slavery).   The problem is the slippery slope wherein one uses “common principles” to impose one’s own ideology and the natural diversity spanning a continental Union is not accommodated.   The people of a republic will naturally want out if their way of life is imposed upon without justification.   In short, being in a Union requires having a sufficient tolerance that can admit that not every State is going to solve your important problems in the way you want.   I suspect that this Union has lost too much of this tolerance (contributing to divisive partisanship at the federal level).   One size fits all over a polity spanning across a continent (and beyond!) is likely to involve bitter partisanship because people view the approach as all or none.   To be sure, there may not be sufficient tolerance anymore among Americans to allow for a viable system of federalism.  Moreover, federalism itself is not perfect, so debate on it could lead to a decision by the popular sovereign to make the United States officially consolidated.  In my view, however, such a debate is urgently needed, for otherwise the American people will continue to live a consolidated lie under the rubric of federalism on parchment.

For more on this topic, see: Two Federal Empires and American and European Federalism

Consolidation in Russia: Federalism and Democracy at Risk

United Russia, the party led by Prime Minister Putin, decided in August, 2010 not to submit the name of the governor of Kaliningrad, Georgy V. Boos, for reappointment. The decision appeared to put pressure on governors to do more to ensure the satisfaction of those they govern, or to at least keep a lid on dissent. Governors had been popularly elected in Russia until a 2004 decree by Mr. Putin, then Russia’s president, that gave the president responsibility for appointing them. In that decree, the president is to select governors from a list of candidates drawn up by the governing party. Critics have said that the practice has made governors beholden to the Kremlin and insensitive to the popular sentiments. This can be problematic on two grounds.

In an empire-scale polity the size of Russia, which is inherently diverse,  insensitivity to popular sentiments can create pressure that could cause the federation to eventually explode. Being geographically separted from the rest of Russia and comparable to a small country, Kaliningrad is undoubtedly in a position to have expectations arise from its people concerning some extend of self-governance. As Russia treats its constituent republics like a republic’s provinces, the people in the republics are likely to take offense and demand more in terms of self-governance more in line with that of the EU’s states.

Secondly, the appointment power evinces a democracy deficit. The inability to elect governors was one of the central grievances when 10,000 people protested in Kaliningrad in January, 2010 to call for Mr. Boos’s ouster. Konstantin Doroshok, the head of the Kaliningrad branch of the opposition group, Spravedlivost, said of United Russia’s decision to deny the governor a second terms, “On the other hand, it is important to understand that the people have not been given the most important thing: the real opportunity to independently elect governors.” To the extent that the protest was over the constitutional change rather than Georgy Boos in particular, United Russia may have taken the wind out the Baltic sails without having to directly address the raison d’etre of the complaint. Even so, the pressure for more self-governance is likely to intensify in Russia’s republics. In excessively consolidating, Russia may go the way of the USSR.

Source: Michael Schwirtz, "Moscow Acts on Governor's Lack of Support," The New York Times, August 16, 2010.

Federalism 101: Does Power Naturally Consolidate?

Consolidated power seems, at least in theory, to be contrary to American political culture.   The financial consolidation even after the financial bailouts of 2008, can be deemed dangerous economically and even politically, given the unlimited campaign contributions made possible by the Citizens United case in 2010. Such consolidation complements the political consolidation at the federal level in the U.S.  Is the consolidation, which has occurred since 1865, and especially from FDR's New Deal onward, natural or contrived? That is to say, will the E.U., when it is over 200 years old, suffer the same plight? If so, federalism itself, which I submit must include a balance of power, given the checks and balances feature, between the federal level and that of the states, may be a temporary system inherently. 

For Europeans to reflect on these questions, it is first necessary to avoid the typical category mistake, which compares a state in the E.U. with the entire U.S., obviating the rather obvious point that states should be compared with states, and empire-level unions with other such unions. 

Will the E.U. consolidate political power as has occurred in the U.S.? Lest it be assumed that the popularity of state-identification issuing out in "states' rights" checks on federal power will suffice as an enduring fortress, the same identifications were common in the early U.S. So the question is whether the consolidation of power can be expected (i.e., whether it is natural), and, if so, whether safeguards in the E.U.'s basic, or constitutional, law are sufficient. Unfortunately, parchment tends to pale against pressing political pressures of the day. 

Not even democracy can be relied on, for majoritarian preferences may be for more federal-level power without any thought of the implications for the federal system. Even a constitutional court, such as the European Court of Justice and the U.S. Supreme Court, cannot be relied on, for turning back an onslaught of power that has already been transferred to the federal level can be deemed impractical. Imagine, for example, the U.S. Supreme Court ruling in 2018 that Social Security, which was enacted in the 1930s, must be turned over to the state governments without any federal-level funding or legislation. That court had not even ruled that the federal requirement to have health insurance was should be a matter for the states.

One problem of consolidating power for federalism is that the states cannot serve as a check on tyranny (or over-reaches) at the federal level if that level holds much more power. Another problem is that federal legislation in an empire-scale union tends to follow a "one size fits all" approach that ignores the ways the states differ. A healthy federal system allows for both overarching legislation for the good of the whole union and legislation that takes into account the distinctiveness of each state. 

The lack of balance in the American federal system begs the question of whether governmental power naturally consolidates over time. I suspect it does, for historical examples of decentralized power enduring as such are sparse. The question is then whether the Europeans can create countervailing safeguards without counting on "nationalistic" sentiment of the day. 

For more on this topic, see: Two Federal Empires and American and European Federalism

Political Black Holes: On the Power Behind the Throne

Our galaxy, the Milky Way, has a black hole. If this is news to you, there is no need to go hide under a rock. It turns out our black hole is not the biggest by far, and it doesn't spew out a lot of excess energy that falls into it. Even so, it is ours, and we can be glad that we have one of our very own even if it isn't the biggest one on the block. In case you are interested in seeing it’s baleful look in a picture, I’ve got bad news for you; it is invisible. No light can bounce off it.  You are probably wondering how the scientists found it.  Well, they knew that black holes are in the center of galaxies, so the crafty lab coats used light to find our center because there is too much gas there for much there to be visible to us.  The scientists noticed that the speed of stars speeds up around a certain point and posited the existence of a highly-dense black hole.

Using the phenomenon of black holes as an analogy, political "scientists" might investigate whether power, whethere in business, government or society, tends by its very nature to consolidate. In the Micheal Moore documentary on capitalism, two members of congress point to the immense power of an anti-democratic corporate banking elite that was able to turn around the House vote on the bank bailout (TARP) using the democratic leadership as runners. If so, such power was invisible to the public. Likewise a black hole is of course invisible. In the case of the banking elite, we couldn't point our fingers at who exactly gave the marching orders that turned around the no-questions-asked government loans to the banks too big to fail.  Nor do we, or will we, know who told the U.S. Senators: hands off meddling in foreclosures.  Indeed, we shall have no idea whether a power behind the throne told Congress not to even debate the alternative of giving the TARP money directly to home borrowers in trouble.  That this was not seriously debated for foreclosures involving mortgages that banks and mortgage companies should not have given in the first place hints of the existence of a massive albeit hidden political black hole. Finally, such a black hole may have been behind the administration's decision not to push for banks too big to fail to be carved up while extant rather than simply "orderly liquidated" once they have fallen under their own weight.

Neither the American people nor the American media companies go far enough in investigating even the existence of invisible black holes in the American political universe, let alone what damage they do from the standpoint of the public or common good.  Micheal Moore suggests that Citibank and Goldman don’t fear popular election much because they expect the 1 person, 1 vote thing won’t turn on them because most people think they could be in the elite too. The financial elite is 1% of the vote; 1% of the population holds 90% of the wealth, so if the other 99% happen to wake up and notice, they might take back the reins. The big business would be worried, but, alas, Wall Street is not shaking in its golden boots. As to why, I would add to Moore’s explanation by pointing to the extent to which Americans are manipulated without even knowing it.  Lest it be missed, the giant media companies are corporate too.

Is it an accident, for example, that so many stories on Afganistan pop up when it is in the interest of the defence contractors? Are they simply using the people to urge Congress to support a surge?  I would call this “direct manipulation” because we are being summoned to debate what has been put on the table for us.   The other kind is “indirect,” which involves a political black hole keeping an issue or policy-option off our radar screens.  President Obama’s suggestion, for example, that the banks too big to fail be reduced in size (and money) so they would not be so dangerous in failing, quietly went away. In looking for indirect manipulation, the important thing to notice is the absence of  any visible event or change that could explain the removal of a proposal by some new issue being covered by the media. We ought to be examining what political black holes do not want us to talk about because of private interests. For instance, we now know that health insurance companies gave their surrogates "death panel scare stories" to fan out discussion of a public alternative in health insurance.  Scaring a proposal off the radar screen is among the silent weapons used by political black holes.  Again, the source of such weapons is invisible.

So like sheep, the American people is led to debate or focus on something or to forget something else, In the process, we are unwittingly giving up, or failing to grasp, our democratic power, which can be used for the public good. To be sure, there are excesses and drawbacks in democracy and these too should be discussed, but there are hidden dangers to political black holes, and we miss these if we do not even know that such things exist.  That is to say, the democracy we do have may be rather wan in comparison to the gravity of the political black hole at the center of our political society.

Perhaps the question on your mind is:  So how do we get it back?   It might involve nothing short of waking up out of the Matrix.  So many of us don’t realize how much we are being manipulated.  Realizing it, and not tailoring our thoughts and discussions along its lines will wake others.   Once people start waking, we can start to look for candidates who do not, like Obama, take a $1 million from Goldman after promising real change.  We need candidates willing to forego being bought out by the elites who sense that democracy might possibly get the upper hand in an election.  Pay particular attention to the matter of teeth in such candidates’ proposals with respect to big business…and ask at their speeches whether they are taking money from the establish that has a vested interest in the status quo.  Don’t buy the “I’m not influenced by money.”  …which should be treated as a laugh line.   If you find genuine candidates willing to effect systemic change even where it is at the expense of the big corporate players, know that the elite will offer such candidates so much if the elite view the candidates as viable and  not under their control.  Control, by the way, can be more subtle than using a leash.  This is perhaps my major point here…political black holes are invisible and yet their anti-democratic gravity is HUGE…even as it is in a tiny space, or office.

In the Roman Empire, the games in the arena (which means “sand” in Latin) were a devise to distract as well as mollify and entertain the masses.  Today, we have American Idol and the Super Bowl, as well as the World Series.  Besides their entertainment value made possible by the talent involved, these idols are effective in gravitating popular attention…and this can be useful to the extent that the US is a plutocracy (i.e. ruled in the interest of the top 1% of the wealth) and vested powers fear the 1 person, 1 vote power of democracy.  But as Micheal Moore points out, Citibank and Goldman Sachs can rest easier knowing that many of us don’t use the power of the vote to take from the banks because many of us believe we might be among the plutacracy one day. 

I would add that we tend to be easily manipulated into following the media’s current (which, kein Zufall, tends to move around the interests of the major houses so as not to disturb the islands of capital).   We stop wondering about the distant promises to do something about the banks too big to fail because the media has conveniently stopped reminding us.  We forget that an option is to break up the banks too big to fail (which, by the way, have gotten bigger since September, 2008 and are still active at the casino).  We unthinkingly join the media in debating Obama’s banking consumer protection proposal, as though that were primary.  In other words, Goldman Sachs, which was Obama’s largest campaign contributor according to Micheal Moore (over $1 million), is content to have us debate a potentially pain so we will be appeased by Obama’s pledge of “real change” and not ask, demand, or VOTE to apply anti-trust law to financial houses.   In short, we allow ourselves to be dupped and we don’t even know it.  We don’t even realize we are taking our eyes off the eight ball.  Goldman lets Obama have four more years and 1 person, 1 vote is once again not a threat to either Goldman or the change agent that the bank bought.  Don’t expect Obama to rock the boat in bringing any real change that is not in the interests of the most powerful of the corporations.  Obama’s challenge is to show us just enough that looks like real change while not acting outside the interests of his corporate backers.  However, aren’t real change and status quo vested intersts mutually exclusive?  If so, how does Barak Obama get around this?  He gives us just enough to appear…   Meanwhile, the systemic change that is needed on the players at fault in September, 2008, goes by the wayside and we remain vulnerable even though We the People are convinced that a new consumer protection agency will do the trick.  The trick, ladies and gentlemen, is on us–and we don’t even know it.  We don’t know what we don’t know…while we presume we know it.

In 2009, Moammar Gadhafi of Libya gave a speech  at the annual opening of the General Assembly at the UN in New York City.  Substantively, he pointed to the drawbacks in having the UN remain in New York.  He also advocated a permanent seat for the African Union in the Security Council.   Fifty-three states are represented in that Union.  In an interesting twist, he remarked that the US contains fifty countries, so Africa too deserved a permanent seat.  I was utterly surprised that the man who was disorganized and sporatic in his delivery (and whose government would kill hundreds of unarmed protesters in 2011) could grasp the nature of the US in terms commensurate to the AU. He added that the EU should have a seat.   This makes a lot of sense because it is not fair for three of the EU’s states to have seats while all of the 50 United States have one. It occurred to me in listening to his speech that he understood the nature of the US as an empire-scale polity better, actually, than most contemporary Americans do. This is a bad commentary on the condition of civics classes in American high schools.  So I was surprised to find the mainstream media report the speech simply as “disorganized" without reporting any of the substance, as though there had been no serious content whatsoever.   Someone must have wanted to discredit Qaddafi for political or economic reasons.   The summary verdict was so immedate and total that none of Qaddafi’s content was covered.   The media’s treatment had all the footprints of a hidden strategy--that is, of a black hole's pull.  If I am correct, I’m left surprised that the subterfuge itself could be so blatant.  For a journalistic standpoint, the reporting was really bad.   Alternatively, the journalists could have reported what the man had said (as well as on his style and approach) and have left it to the readers to decide whether the content should be dismissed due to the style.   Something else was going on.  I’m just not sure what. I contend that something else typically goes on in terms of what is debated in the public discourse via the media. The invisible source steering and pruning what travels across our public radar screen is none other than a political black hole: a very dense concentration of private power functioning akin to an invisible elephant in a small living room. One person senses a trunk--another a leg--but we as a people miss the very existence of the elephant.  We are too distracted, and this is no accident, as it manifests by the very black hole that we do not suspect exists.

In short, both the content and frequency of topics reported by the media bear traces of the black whole that they are orbiting. As long as the source of the gravity is invisible, the black hole will continue to be quite useful.  Put another way, as long as Americans take the press reports as simply journalism, we will miss what is going on behind the scenes and therefore continue to be subject to being manipulated.  Micheal Moore asks: when will democracy ascend over the power of big business?  It is possible, but not probable.   This, by the way, is the expression that Kant uses in discussing his Kingdom of Ends (treating rational beings as ends and not just as means). Beyond the latent or actual subterranean power of corporate America over our public airwaves and legislative chambers, we ought to reflect on the threat to a republic in there simply being political black holes.

  

See: Nova on Black Holes
 (http://www.pbs.org/wgbh/nova/blackhole/)

The American News Media: A Case of Egoistic Over-Reaching

During the summer of 2010, as commentators at Fox, CNN, and MSNBC were arguing, they referred to their own arguments as “trench warfare” and “hand-to-hand fighting.”  Real soldiers would doubtless dismiss such descriptors as attempts by children to count as adults—as something more.  The soldiers would be correct, of course. Insulting or criticizing another person does not constitute fighting in the sense of warfare. Someone at MSNBC calling someone at Fox a racist does not come close to shooting someone with a rifle or even slugging someone with one’s fist.  The protesters in Libya who were being shot at by their own government in February, 2011, would shake their heads in disbelief in hearing of the "war" among media personalities.

Lest it be objected that this matter is insignificant, the propensity of the media “personalities” to over-reach has, I submit, dominated their depiction of news for years.  For example, they use “crisis” far too often.  To be sure, a crisis really did exist in September, 2008 on the Thursday evening in which Ben Bernanke and Henry Paulson told congressional leaders that unless they showed some intent to act, there would not be a financial system by the following Monday. This is what it means to be in a crisis mode. To call the BP oil in the gulf a crisis more than two months after the explosion (and weeks after the well had been capped) a "crisis" pales in comparision; hence, it is thus a case of the media over-reaching. 

By its very nature, a crisis is short-term.  The protest in Egypt, for example, during the Arab Spring quickly reached a do or die point. Such is crisis mode.  So too, when the planes shot at the protesters in Libya; the resulting turmoil, which can only be sustained as such for a brief period before a decision has to be made one way or the other, instantiated a crisis mode.  For republicans or democrats in Congress to refer to budget talks as though they were at a crisis utterly pales by comparison, even if non-essentials in government might be temporarily shut down. Yet journalists have nonetheless perpetuated the verbal inflation in order to get increased attention, which has its own life besides the obvious bump in ratings that benefit their respective networks. It is the journalist's own ego that is being served just as much as profits. Is there any room for news, especially international beyond Iran, Iraq, Russia, and Israel?

Every presidential address is self-righteously vaunted as critical. The President needs to say X or the sky will fall. No mention is subsequently made of the sky still up there even though the President omitted X.  Silently omitted is the accountability on journalists and pundits when they over-reach.