Goldy

About a week and a half ago I pissed off both righty and lefty readers alike by daring to question popular economic orthodoxy. A worldwide credit crunch was threatening to take the broader economy down the crapper with it, yet the Federal Reserve Open Market Committee unanimously refused to cut interest rates, acknowledging “downside risks to growth,” but restating that their “predominant policy concern remains the risk that inflation will fail to moderate as expected.” To which I replied, “fuck inflation.”

The FOMC was impassive at the prospect of 2 million American families losing their homes, but once the credit crunch threatened to tank Wall Street they leaped into action, first flooding the markets with liquidity, and today slashing interest rates by half a percent.

Stocks soared Friday, propelling the Dow Jones industrials up more than 180 points, after the Federal Reserve, acknowledging that the stock market’s plunge posed a threat to the economy, slashed its discount rate by a half percentage point.

[…] The Fed cut the discount rate to 5.75 percent from 6.25 percent, declaring that “downside risks” to the economy have increased appreciably.

Again, I gloat — not so much because I predicted the necessity of a rate cut (I could’a been lucky,) but because my original post clearly doesn’t paint me out to be the moron so many of my critics obviously wish me to be. Sorry to disappoint.

We can argue the economics all we want (and I’m sure we will,) and I stand by my original assertion that a little inflation can actually be a good thing for the majority of Americans who owe money on mortgages, car loans, student loans, credit cards, etc. But my initial reaction was mostly prompted by the Fed’s decades-long inflation policy, which I described as “obsessively narrow at best, and intergenerational warfare at the worst.” Ten days after restating that its primary concern was inflation, the FOMC dramatically changes course. In that short time have the “downside risks” to the economy really “increased appreciably”…? Or did the volatility on Wall Street finally get the Feds to see beyond their inflationary blinders?

I don’t pretend to be an economist, and I freely admit that every single member of the FOMC has more relevant expertise in the tip of their little finger than I have in my entire body. But science morphs into ideology when we fail to question orthodoxy… and under those conditions even the experts can sometimes make mistakes.

TANGENTIAL ASIDE:
I’m back.

Jack McClellan is one twisted dude. He’s the sicko who posts photos of children on his website, where he chronicles the best public places to stake out little girls, or “LGs.” While McLellan emphatically claims he’s never inappropriately touched a child, his obsessive public fantasizing certainly pushes the limits of the First Amendment, and demands extraordinarily close scrutiny from law enforcement officials.

McClellan is under a restraining order prohibiting him from loitering within 30 feet of minors, and as a father of an LG, news of McClellan’s arrest yesterday outside a UCLA child development center elicited no empathy from me. Yet I couldn’t help but notice the curious way the AP wire story was reported.

As of 9AM PST this morning, a quick Google News search found over 200 published articles on McClellan’s arrest, and in nearly every single one the headline refers to him as a “pedophile” or “admitted pedophile” or “self-described pedophile” as in the Los Angeles Times headline, “Pedophile arrested outside UCLA child development building.”

That is, every single headline except that in the Seattle Times, which had its own unique take on McClellan’s dangerous perversion: “Controversial blogger is arrested near children.”

“Oh no, a controversial blogger?” I thought, reading the headline, “Which of my trusted colleagues turned out to be a disgusting pervert? Hmm… Postman is down in California for a few days, perhaps it’s him?” But no, it turned out to be not a blogger at all, but rather a “self-proclaimed pedophile.”

Over two hundred other papers saw this wire story and described the perp as a pedophile, but to the fearful headline writers at the Seattle Times, McClellan’s most disturbing biographical detail is that he blogs. How many readers clicked on this misleading headline, expecting the juicy details of a well-known blogger brought down by scandal? I sure did. And how many righties turned away disappointed to learn the “blogger” in question wasn’t an evil netroots leader like Markos or Atrios or even a lesser local blogger like me?

To primarily describe McClellan as a “controversial blogger” would be like introducing Seattle Times publisher Frank Blethen as a “dog shooter.” In fact it’s worse, since blogging on its own is a neutral activity, whereas shooting your neighbor’s dog is both a heinous and criminal act.

That the Seattle Times would imply that McClellan’s infamy stems from his blogging rather than his pedophilia says something about the paper’s own fearful approach to new media competition. But it also provides a warning to which the blogging community should take heed: if the old media is willing to spin the arrest of pedophile into a headline about a fallen blogger, just imagine what they’ll do given the whiff of a real netroots scandal. No doubt there are some amongst the broader netroots community with skeletons in their closets or ethical and/or legal lapses in their future. As we gain readers and influence the media and political establishments will surely attempt to use their vast resources to defend their turf. And they won’t stop at misleading headlines.

What?! You mean a group of Oklahoma City billionaires, desperate to bring a major league team to their home city, had no intention of keeping the Sonics in Seattle when they purchased the team? Who’d a thunk?

OKLAHOMA CITY — An Oklahoma City energy tycoon says the group that purchased the Seattle SuperSonics hopes to move the NBA franchise to Oklahoma City, but he acknowledges the team could make more money in the Pacific Northwest.

“But we didn’t buy the team to keep it in Seattle; we hoped to come here,” Aubrey McClendon, chief executive of Chesapeake Energy, told The Journal Record for a story in Monday’s edition. “We know it’s a little more difficult financially here in Oklahoma City, but we think it’s great for the community and if we could break even, we’d be thrilled.”

[…] “We started to look around, and at that time the Sonics were going through some ownership challenges in Seattle,” McClendon told the newspaper. “So Clay, very artfully and skillfully, put himself in the middle of those discussions and to the great amazement and surprise to everyone in Seattle, some rednecks from Oklahoma, which we’ve been called, made off with the team.”

That’s right, Clay Bennett — the guy the easy marks at the Seattle Times editorial board judged to be negotiating in good faith — “artfully and skillfully … made off with the team.” Hoity-toity editorialists comfort themselves by dismissing bloggers like me as unserious, but they do their readers a disservice when they infuse their coverage with the kind of naivete that comes from their solemn dedication to establishmentarian objectivity:

There have been whispers and shouts that SuperSonics owner Clay Bennett is only buying time until he can move the teams to his home state of Oklahoma. This is an unfair claim. Bennett has done nothing to suggest that moving the teams is a foregone conclusion.

No, I guess it was never a foregone conclusion, but with Bennett and the other owners willing to lose money in Oklahoma City — in fact, preferring it over making a modest profit in Seattle — it would take a helluva sweet deal to keep the team in the region. You know, something like a free half-billion dollar arena from which they keep all the revenues. Bennett and his buddies never negotiated in good faith (hell, they never even negotiated,) they always intended to move the team to Oklahoma City, and they laughed at the naive, big city rubes who ever believed otherwise. You don’t get to be a billionaire by taking the first deal slapped on the table, yet that’s exactly what the Sonics asked WA state and local officials to do.

Unless the NBA intercedes for the good of the league, the Sonics are moving to Oklahoma City. All the talk thus far has been little more than a charade to keep hopeful fans in their seats until the Key Arena lease expires in 2010.

Tonight on “The David Goldstein Show”, 7PM to 10PM on Newsradio 710-KIRO:

7PM: The Stranger Hour with Dan Savage
Stranger Editor and nationally syndicated sex columnist Dan Savage joins me for the hour. Rumor has it Dan might be gay, so perhaps we’ll talk about gay issues (you know, antiquing, musical theater, anal sex… stuff like that,) or maybe we’ll do our usual recap of the week’s news and other issues of the day. We’ll see.

8PM: Everything I need to know in life I learned from television
Parents want to give their children every advantage, so no wonder so many put their babies in front of “educational” videos like Baby Einstein and Brainy Baby that promised to give kids a leg up. Now a new study shows that babies who watch these videos actually learn fewer words than their counterparts. Is TV an educational tool, or just an electronic babysitter? Did TV make you and your kids stupid, or better informed. American Academy of Pediatrics spokesperson Dr. Ari Brown joins us to give us her take on the new study, and why the Academy does not recommend television for children under the age of two.

9PM: What’s up South and East of the border?
Julie from Idaho’s Red State Rebels and TJ from Loaded Orygun join me for the hour for a round table round up of regional news and politics.

Tune in tonight (or listen to the live stream) and give me a call: 1-877-710-KIRO (5476).

PROGRAMMING NOTE:
My show will be preempted by Seahawks preseason games tomorrow and next Saturday.

Great piece by Don Duncan in today’s Seattle Times. I don’t say it often, but truly great piece in the Seattle Times.

UPDATE:
And while I’m at it, great piece in today’s Washington Post.

Darcy Burner won the sole endorsement of the Pierce County Young Democrats this week in her primary race against Rodney Tom for the Democratic nomination in WA’s 8th Congressional District.

“Darcy [Burner] is the right candidate for the 8th District,” said Sam Ross, PCYD Chair. “She’s right on the constitution, she’s right on healthcare, she’s right on the Iraq occupation, she’s a leader on technology and economic innovation. On all the issues that Young Democrats believe in, Darcy will stand with us always, and on all the issues that truly matter, Darcy will do what she knows to be right.”

This early endorsement in a high profile primary is important for a number of reasons. First, the Young Democrats have strong chapters at University of Puget Sound and Pacific Lutheran University, and have promised aggressive recruitment, doorbelling and phonebanking drives at local colleges and universities. Second, it demonstrates the strong appeal Darcy has amongst one of the fast growing segments of the Democratic Party: younger voters.

In 2002 the electorate was equally divided between Democrats and Democratic-leaners (43%) and Republicans and Republican-leaners (43%). Today only 35% align themselves with Republicans, and 50% with Democrats. The Republicans are doing particularly badly among independents (the fastest-growing group in the electorate) and younger voters. The proportion of 18-25-year-olds who identify with the Republican Party has declined from 55% in 1991 to 35% in 2006, according to Pew. Tony Fabrizio, a Republican pollster, notes that the share of Republican voters aged 55 and over has increased from 28% in 1997 to 41% today, whereas the share aged 18-34 has fallen from 25% to 17%.

The Democratic Party is getting younger, which not only bodes well for the future, it bodes well for candidates like Burner who appeal to their values. It’s kinda cliche to say it, but our young people are our nation’s future… as are future leaders like Darcy Burner.

Yeah sure, I’m no economist, so the other day when I said “fuck inflation” in response to the Federal Reserve’s refusal to cut interest rates in the face of a looming credit crunch that threatened to suck the broader economy down the sub-prime toilet, many readers appeared more offended by my economic heresy than my foul language.

Well… fuck you:

Fed seeks to calm markets with a flood of cash

WASHINGTON — The Federal Reserve, trying to calm turmoil on Wall Street, announced today that it will pump as much money as needed into the U.S. financial system to help overcome the ill effects of a spreading credit crunch.

The Fed, in a short statement, said it will provide “reserves as necessary” to help the markets safely make their way. The central bank did not provide details but said it would do all it can to “facilitate the orderly functioning of financial markets.”

The Fed pushed $35 billion in temporary reserves into the system today morning, on top of a similar move the day before.

Hey… flooding the the financial system with cash… isn’t that supposed to be inflationary? You know, just like cutting interest rates?

I’m not suggesting an interest rate cut necessarily would have preempted or softened the market meltdown we’ve seen over the past couple days, but it certainly does appear that the Fed’s OCD-like focus on inflation blinded it to the severity of what has now become a worldwide credit crunch. And of course, rather than just assuring market liquidity — you know, propping up corporatist interests — cutting interest rates might have helped some threatened homeowners avoid foreclosure by making refinancing more affordable.

I’m just sayin’…

Oh man… I can’t wait to see this ad run all over South Carolina.

The Democratic Congressional Campaign Committee is preparing to launch radio ads in the districts of 12 vulnerable Republican incumbents, and lookie who’s on the list: Rep. Dave Reichert. “This August we’re going district by district to urge Republicans to stop obstructing progress and work with us to end the war in Iraq,” says DCCC chair Chris Van Hollen. TPM Cafe’s Election Central has the details and the audio.

The ad will run locally during drive time on KING, KIRO, KIXI, KMTT, KOMO, KPTK, KTTH and KVI. And considering the coming lane closures on I-5 North, folks will have plenty of time to listen.

There’s a reason why President Bush is coming out here to raise money for Reichert, the first congressman to receive that “honor” this cycle. Reichert is desperate. And you can’t get much more desperate than inviting Bush to come out and campaign for you.

Creating the opportunity for a potentially precedent setting decision, the Washington State Supreme Court has agreed to hear an appeal of a lawsuit challenging the constitutional “scope” of Tim Eyman’s Initiative 960. Oral arguments are scheduled for September 6 at 1:30PM, and a decision would presumably come before ballots go to press for the November election.

Futurewise and SEIU 775 had filed suit in King County Superior Court arguing that I-960 should be blocked from the ballot because it is outside the constitutional scope of the initiative process, and Eyman publicly gloated when the judge refused to act on their request. Hmm. I wonder if Tim’s gloating now?

Courts are reluctant to hear challenges to initiatives prior to the ballot, but the fact that the Supremes have agreed to hear the appeal — and on such an expedited basis — indicates that a number of justices believe the case raises points of law that at least merit consideration. Such scope challenges are not without precedent, the most recent being 2003’s Goldstein v. Gregoire, in which a Thurston County Superior Court judge selectively (and unconstitutionally) barred me from submitting petitions for I-831, my initiative to officially proclaim Tim Eyman a horse’s ass. At the time, my attorney cogently argued:

Many initiatives are presented to the people that are arguably unconstitutional or beyond the scope of the legislative power. For example, Tim Eyman’s Sound Transit Initiative would prevent Sound Transit from spending money on a “Link Light Rail” system. This proposed initiative is clearly beyond the scope of legislative power under Ruano v. Spellman and other cases holding that initiatives cannot seek to prohibit administrative actions. The Attorney General has done nothing to prevent Mr. Eyman from going forward with his initiative. Proposed Initiative 824 is a statement. The Attorney General has taken the position in the present case that statements are not legislative, yet nothing has been done to prevent Initiative 824 from going forward.

Allowing the Attorney General discretion to select initiatives for challenge based on their palatability would violate the First Amendment. If pre-ballot review is to be applied to some initiatives, it should be applied to all initiatives that are arguably unconstitutional or beyond the scope of legislative power.

I still feel that I-831, written in the form of a valid resolution, was barred improperly. But if Goldstein v. Gregoire is ultimately cited in a ruling that blocks I-960 from the ballot, those will have been lumps well worth taking.

Sounds reasonable to me, but then, Kemper Freeman Jr. will run all those ads equating rail with communism, so this can’t possibly pass at the polls, right?

What’s the difference between a true netroots Democrat and an establishment Democrat? The willingness to criticize members of one’s own party when it really counts.

In her latest web ad WA-08 netroots “rock star” Darcy Burner not only sticks it to her Republican opponent Dave Reichert for handing warrantless wiretapping powers to President Bush, Dick Cheney and Alberto Gonzales… she also takes on the 41 Democratic House members who voted with him.

“When Republicans like Dave Reichert give George Bush everything he wants, that’s bad enough. But too many people in my own party aren’t listening either. The warrantless wiretapping bill won’t make us safer, but it will strip us of the rights so many of our families have fought to preserve, including mine.”

This race is about bringing new leadership to the House, not just padding the Democratic majority. No doubt Burner would like DCCC support and the money that comes with it, but anybody who thinks she’s taking her cues from the other Washington, just isn’t listening.

I’ll be filling in for Dave Ross tomorrow morning from 9AM to Noon on News/Talk 710-KIRO. Darcy Burner will be my guest during the 10AM hour.

UPDATE:
Daily Kos founder Markos Moulitsas Zúniga will also be briefly calling in to talk about Yearly Kos, and the importance of supporting netroots candidates (you know… like Darcy.)

In the face of a housing market going down the crapper, and a looming credit crunch threatening to take the markets and the broader economy with it, the Federal Reserve Open Market Committee voted unanimously today to keep interest rates unchanged, and continue to focus on inflation:

“Although the downside risks to growth have increased somewhat, the FOMC’s predominant policy concern remains the risk that inflation will fail to moderate as expected,”

I’m no economist, but really… fuck inflation.

A little inflation can actually be a good thing, especially to people who owe money on things like mortgages, cars, credit cards, school loans, etc… you know, most Americans. And a little inflation would actually be a very good thing for the US Treasury, issuer of nearly $9,000,000,000,000 in public debt (almost $30,000 of debt for every man, woman and child in the U.S.)

In fact, the people who benefit most from the Fed’s decades long focus on maintaining record low inflation are the people who hold most of the debt. Wealthy and older Americans. (And I suppose, the Chinese government.) The Fed’s inflation policy is obsessively narrow at best, and intergenerational warfare at the worst.

So fuck inflation. A few quarters of 4% to 6% inflation isn’t going to kill anybody. And if a temporary cut in interest rates revives the housing market a bit and keeps a few hundred thousand families out of foreclosure, it would be well worth it.

Apparently, anything made by McDonald’s tastes better:

Even carrots, milk and apple juice tasted better to the kids when they were wrapped in the familiar packaging of the Golden Arches.

The study had youngsters sample identical McDonald’s foods in name-brand and unmarked wrappers. The unmarked foods always lost the taste test. […] Study author Dr. Tom Robinson said the kids’ perception of taste was “physically altered by the branding.”

Hmm. I guess that must explain this…

Would you like fries with that? (from CollegeHumor)