The fake Republican civil war: Conservative Freak Herman Cain calls for third party

GOP civil war: Herman Cain calls for third party - In the wake of Mitt Romney's loss, Republicans find themselves at civil war

It’s been less than 24 hours since the polls closed and already the first shots in an emerging civil war within the conservative movement are being fired. Right-leaning pundits have been taking turns beating up on Mitt Romney and blaming him for the loss last night. Donald Trump just tweeted, “Congrats to @KarlRove on blowing $400 million this cycle. Every race @CrossroadsGPS ran ads in, the Republicans lost. What a waste of money.” And GOP leaders are already taking to the barricades on either side of the divide, which basically comes down to this question: Were Romney and the GOP too conservative or not conservative enough?

Steve Schmidt, a top Republican strategist who ran John McCain’s 2008 campaign, invoked the term on MSNBC this morning. “When I talk about a civil war in the Republican Party, what I mean is, it’s time for Republican elected leaders to stand up and to repudiate this nonsense [of the extreme right wing], and to repudiate it directly,” he said.

But on the other side of the fight, Herman Cain, the former presidential candidate who still has a robust following via his popular talk radio program and speaking tours, today suggested the most clear step to open civil war: secession. Appearing on Bryan Fischer’s radio program this afternoon, Cain called for a large faction of Republican Party leaders to desert the party and form a third, more conservative party.

“I never thought that I would say this, and this is the first time publicly that I’ve said it: We need a third party to save this country. Not Ron Paul and the Ron Paulites. No. We need a legitimate third party to challenge the current system that we have, because I don’t believe that the Republican Party … has the ability to rebrand itself,” Cain said.

Fischer, a social conservative leader, noted that he predicted this summer that if Mitt Romney loses, evangelical conservatives would start a third party. “If Barack Obama wins this election the Republican Party as we know it is finished, it is dead, it is toast,” Fischer said in September at the Values Voter Summit in Washington.

Rush Limabugh, two months ago, echoed the sentiment. ”If Obama wins, let me tell you what it’s the end of: the Republican Party. There’s gonna be a third party that’s gonna be oriented toward conservatism,” he said.

“It is more viable today than it has ever been,” Cain told Fischer today of a third party.

After the GOP’s crushing 2008 loss, there was lots of talk about a new third party. When the Tea Party emerged, this talk almost became a reality. Instead, the conservative activists opted for a hostile takeover of the GOP. It’s still very unlikely that Cain or anyone else could start a viable third party, but his comments underscore the cleavage within the conservative movement in the wake of the defeat last night.

The Limbaughs and Hermanator Cains already run the Republican party. Romney ran largely to the extreme right to get these conservative freaks to the polls. McCain did the same thing. Before 2008, McCain was what passed for a moderate, he ran to the radical Right, picked a psycho conservative running mate and lost. When he lost we heard the same hand wringing we're hearing now. Conservatism will always stand for social-Darwinism - where in all government programs are socialism and it is better to let the disabled, the elderly and working poor suffer or die than have any programs that fill in the gap that our economic system cannot seem to handle, or wants to handle on its own.

Mitt Romney Is A Capitalist The Way A Bank Robber Is A Champion Of The Free Market

Mitt Romney Is A Capitalist The Way A Bank Robber Is A Champion Of The Free Market

A splendid accidental benefit of this year’s Republican presidential primary is that one of the most abusive dark corners of American capitalism, so-called private equity, is coming in for belated scrutiny and scorn. Delectably, the disclosures and criticisms are coming from leading Republicans, in a blatant undermining of cherished Republican ideology. Even before Democrats lay a glove on Romney, he will be assaulted by an investigative documentary that is more Michael Moore than Adam Smith. In politics, it doesn’t get much better than this.

“Private equity” was rebranded in the 1990s. It used to be called, more honestly, leveraged buyouts. While the job-killing aspect of many of the deals done by Mitt Romney’s Bain Capital and kindred financial engineers has come in for withering criticism, that is only one part of the mischief.

The phrase “private equity” conjures up images of venture capitalists pooling their funds and backing promising new ventures or contributing new equity and new management to companies in need of restructuring. But that is not how the game really works most of the time. Typically, private-equity companies borrow a ton of money, sometimes in collusion with incumbent management and sometimes in opposition to it, and take a company private. That is, the company’s shares are no longer publicly traded.

This maneuver has several advantages to the new owners. First, despite the picture of investors putting in equity, most of the money is usually borrowed. That produces a huge tax break, since the interest is tax-deductible. Second, the new owners can pay themselves large management fees as well as “special dividends.” Typically, they take out far more than they put in, by incurring debts carried on the books of the operating company.

For instance, when Bain masterminded a private-equity deal for HCA, one of America’s largest for-profit hospital chains (which has gone from private to public twice and which paid a multibillion-dollar fine for defrauding Medicare), Bain paid itself a management fee of $58 million, even though it had only put up 6.3 percent of the buyout fund.

Another big plus: The main regulatory principle protecting investors and by extension, the system as a whole, is disclosure. Under the securities laws administered by the Securities and Exchange Commission, management must disclose information deemed “material” to the interests of the investing public, including salaries, earnings, losses, assets, liabilities, and risks. But these laws flow from the fact that a corporation’s shares are publicly traded. A company owner by a private-equity outfit like Bain can operate completely in the shadows.

Then, there are three possible ways to cash in.  If the company turns out to be a success, like Staples (one of Bain’s big winners), the private-equity owners can take their legitimate share of the reward. But that turns out to be the exception. If the company, newly loaded up with debt, starts to falter, it can be broken up, with massive layoffs and cuts in health and pension benefits, and resold, usually at a profit for the private-equity owners.

Or the company can simply declare bankruptcy under Chapter 11 and shed its debts. Normally, shareholders think twice about incurring risks that could result in  bankruptcy, because one of the consequences is that the stock becomes worthless. But private-equity owners typically have already made their bundle on management fees and special dividend payouts, so even if the operating company goes bankrupt, they are still in the money.

And all of this is legal.

Oddly, as one abuse after another was exposed following the financial collapse, the predations of private equity have sailed merrily on. There is a terrific 2009 book on the subject, which I reviewed for the Prospect, Josh Kosman’s The Buyout of America. Read Kosman, and you will learn chapter and verse about how Bain, Carlyle, Blackstone, Texas Pacific Group, and the others plunder operating companies with taxpayer subsidies thanks to the borrowed money.

Among the tales Kosman tells: Thomas H. Lee Partners buys Warner Music, the world's fourth-biggest music company, and loads up the company with debt to finance the buyout and to pay itself $1.2 billion in dividends. One-third of the workforce is fired. CD&R, The Carlyle Group, and Merrill Lynch buy Hertz, the nation's largest auto-rental company, putting up just $2.3 billion in cash out of a $15 billion deal. The private-equity owners quickly recoup more than half of their down payment by loading up the company with even more debt. Funds for rental operations are cut by 39 percent, and Hertz's market share falls. In another example, Bain Capital, the company that made Mitt Romney rich, invests just $18.5 million in KB Toys, extracts $85 million in dividends, then takes the company into bankruptcy, stiffing employees, investors, and creditors.

In their tactical attack on Mitt Romney, the other Republicans have painted themselves into a corner. They owe it to the public to explain just what is improper about what private-equity operators do, what should be illegal, and what should be subject to disclosure.

Many Americans, bless them, have some naive ideas about how modern capitalism works in the USA. Many, if not most think if you work hard you earn money. You might get promotions and rises based on merit. You get ahead mostly by playing fair and being a decent human being. That is pretty much the way things operate for most Americans. Romney, Bain, Carlye group, and Blackstone operate by different rules. They make money as parasites on the value or capital created by others. That is not capitalism or even Americanism, it is moral corruption of the worse kind. No nation in history that has fallen so deep into this kind of depraved behavior has survived unscathed. We are well on our way to be a nation not of and for the people, but of and for the upper 1%. They used to call that tyranny.

CNN Facilitates Romney's Deceptive Highly Edited Video Attack Ad Against Obama and

Romney To Release Misleadingly Edited Obama Video As An Ad

Elizabeth Warren, a Democratic nominee for Senate in Massachusetts, has said that the Libor scandal calls the integrity of the entire financial system into question. Her opponent the morally bereft Scott Brown doesn't care because without a corrupt system where are his contributions going to come from.