Mitt Romney, Like The Republican Party is Out to Destroy Capitalism

Mitt Romney, Like The Republican Party is Out to Destroy Capitalism

Mitt Romney touts his business acumen and job-creation record as a key qualification for being the next U.S. president.

What’s clear from a review of the public record during his management of the private-equity firm Bain Capital from 1985 to 1999 is that Romney was fabulously successful in generating high returns for its investors. He did so, in large part, through heavy use of tax-deductible debt, usually to finance outsized dividends for the firm’s partners and investors. When some of the investments went bad, workers and creditors felt most of the pain. Romney privatized the gains and socialized the losses.

What’s less clear is how his skills are relevant to the job of overseeing the U.S. economy, strengthening competitiveness and looking out for the welfare of the general public, especially the middle class.

Thanks to leverage, 10 of roughly 67 major deals by Bain Capital during Romney’s watch produced about 70 percent of the firm’s profits. Four of those 10 deals, as well as others, later wound up in bankruptcy. It’s worth examining some of them to understand Romney’s investment style at Bain Capital.

In 1986, in one of its earliest deals, Bain Capital acquired Accuride Corp., a manufacturer of aluminum truck wheels. The purchase was 97.5 percent financed by debt, a high level of leverage under any circumstances. It was especially burdensome for a company that was exposed to aluminum-price volatility and cyclical automotive production.

Casino Capitalism

Forty-to-one leverage is casino capitalism that hugely magnifies gains and losses. Bain Capital wisely chose to flip the company fast: After 18 months, it sold Accuride, converting its $2.6 million sliver of equity into a $61 million capital gain. That deal, which yielded a 1,123 percent annualized return, was critical to Bain Capital’s early success and led the firm to keep maximizing the use of leverage.

In 1992, Bain Capital bought American Pad & Paper by financing 87 percent of the purchase price. In the next three years, Ampad borrowed to make acquisitions, repay existing debt and pay Bain Capital and its investors $60 million in dividends.

As a result, the company’s debt swelled from $11 million in 1993 to $444 million by 1995. The $14 million in annual interest expense on this debt dwarfed the company’s $4.7 million operating cash flow. The proceeds of an initial public offering in July 1996 were used to pay Bain Capital $48 million for part of its stake and to reduce the company’s debt to $270 million.

From 1993 to 1999, Bain Capital charged Ampad about $18 million in various fees. By 1999, the company’s debt was back up to $400 million. Unable to pay the interest costs and drained of cash paid to Bain Capital in fees and dividends, Ampad filed for bankruptcy the following year. Senior secured lenders got less than 50 cents on the dollar, unsecured lenders received two- tenths of a cent on the dollar, and several hundred jobs were lost. Bain Capital had reaped capital gains of $107 million on its $5.1 million investment.

It always seems that some essential ingredients are missing from how conservative Republican views capitalism versus moral patriotic Americans. Romney and conservatives are out to exploit the system, to plunder, to sneak around ethical concerns, to undermine competitive markets - to create loads of money for themselves by any means necessary. Normal patriotic capitalists see the free market as a place to compete - to offer goods and services at competitive prices. To engage in meaningful dignified employment. To enjoy our families and lives.To buy the basics like food, shelter and clothing to provide the basic comforts. Republican believe in making America into a kind of corporate collective - a weird mirror image of Marxism - with the corporate lite at the top, and the powerless workers below.


Romney's 'Free Stuff' Speech Is a New Low

Why Conservative Republicans Are Criminalizing Pregnant Women

Why Conservative Republicans Are Criminalizing Pregnant Women

Rennie Gibbs is accused of murder, but the crime she is alleged to have committed does not sound like an ordinary killing. Yet she faces life in prison in Mississippi over the death of her unborn child.

Gibbs became pregnant aged 15, but lost the baby in December 2006 in a stillbirth when she was 36 weeks into the pregnancy. When prosecutors discovered that she had a cocaine habit – though there is no evidence that drug abuse had anything to do with the baby's death – they charged her with the "depraved-heart murder" of her child, which carries a mandatory life sentence.



Gibbs is the first woman in Mississippi to be charged with murder relating to the loss of her unborn baby. But her case is by no means isolated. Across the US more and more prosecutions are being brought that seek to turn pregnant women into criminals.



"Women are being stripped of their constitutional personhood and subjected to truly cruel laws," said Lynn Paltrow of the campaignNational Advocates for Pregnant Women (NAPW). "It's turning pregnant women into a different class of person and removing them of their rights."



Bei Bei Shuai, 34, has spent the past three months in a prison cell in Indianapolis charged with murdering her baby. On 23 December she tried to commit suicide by taking rat poison after her boyfriend abandoned her.



Shuai was rushed to hospital and survived, but she was 33 weeks pregnant and her baby, to whom she gave birth a week after the suicide attempt and whom she called Angel, died after four days. In March Shuai was charged with murder and attempted foeticide and she has been in custody since without the offer of bail.



In Alabama at least 40 cases have been brought under the state's "chemical endangerment" law. Introduced in 2006, the statute was designed to protect children whose parents were cooking methamphetamine in the home and thus putting their children at risk from inhaling the fumes.



Amanda Kimbrough is one of the women who have been ensnared as a result of the law being applied in a wholly different way. During her pregnancy her fetus was diagnosed with possible Down's syndrome and doctors suggested she consider a termination, which Kimbrough declined as she is not in favour of abortion.



The baby was delivered by caesarean section prematurely in April 2008 and died 19 minutes after birth.



Six months later Kimbrough was arrested at home and charged with "chemical endangerment" of her unborn child on the grounds that she had taken drugs during the pregnancy – a claim she has denied.



"That shocked me, it really did," Kimbrough said. "I had lost a child, that was enough."



She now awaits an appeal ruling from the higher courts in Alabama, which if she loses will see her begin a 10-year sentence behind bars. "I'm just living one day at a time, looking after my three other kids," she said. "They say I'm a criminal, how do I answer that? I'm a good mother."



Women's rights campaigners see the creeping criminalization of pregnant women as a new front in the culture wars over abortion, in which conservative prosecutors are chipping away at hard-won freedoms by stretching protection laws to include foetuses, in some cases from the day of conception. In Gibbs' case defence lawyers have argued before Mississippi's highest court that her prosecution makes no sense. Under Mississippi law it is a crime for any person except the mother to try to cause an abortion.



"If it's not a crime for a mother to intentionally end her pregnancy, how can it be a crime for her to do it unintentionally, whether by taking drugs or smoking or whatever it is," Robert McDuff, a civil rights lawyer asked the state supreme court.



McDuff told the Guardian that he hoped the Gibbs prosecution was an isolated example. "I hope it's not a trend that's going to catch on. To charge a woman with murder because of something she did during pregnancy is really unprecedented and quite extreme."



He pointed out that anti-abortion groups were trying to amend the Mississippi constitution by setting up a state referendum, or ballot initiative, that would widen the definition of a person under the state's bill of rights to include a fetus from the day of conception.



Some 70 organisations across America have come together to file testimonies, known as amicus briefs, in support of Gibbs that protest against her treatment on several levels. One says that to treat "as a murderer a girl who has experienced a stillbirth serves only to increase her suffering".



Another, from a group of psychologists, laments the misunderstanding of addiction that lies behind the indictment. Gibbs did not take cocaine because she had a "depraved heart" or to "harm the fetus but to satisfy an acute psychological and physical need for that particular substance", says the brief.



Perhaps the most persuasive argument put forward in the amicus briefs is that if such prosecutions were designed to protect the unborn child, then they would be utterly counter-productive: "Prosecuting women and girls for continuing [a pregnancy] to term despite a drug addiction encourages them to terminate wanted pregnancies to avoid criminal penalties. The state could not have intended this result when it adopted the homicide statute."



Paltrow sees what is happening to Gibbs as a small taste of what would be unleashed were the constitutional right to an abortion ever overturned. "In Mississippi the use of the murder statute is creating a whole new legal standard that makes women accountable for the outcome of their pregnancies and threatens them with life imprisonment for murder."


From protection to punishment

At least 38 of the 50 states across America have introduced fetal homicide laws that were intended to protect pregnant women and their unborn children from violent attacks by third parties – usually abusive male partners – but are increasingly being turned by renegade prosecutors against the women themselves.



South Carolina was one of the first states to introduce such a foetal homicide law. National Advocates for Pregnant Women has found only one case of a South Carolina man who assaulted a pregnant woman having been charged under its terms, and his conviction was eventually overturned. Yet the group estimates there have been up to 300 women arrested for their actions during pregnancy.

Ironically and predictability - yesterday,being the 4th of July I spent some time reading some conservative Republicans yammer on about freedom. Conservatives, much like communists and fascists are repeating a tiresome reenactment of fanatical political philosophy. Their restrictions on individual freedom, their draconian authoritarianism against anyone who breaks their loony ideas about "values" is to be imprisoned or at the very least kept from fully participating in society. Another example. Conservative Republicans could not get their legislation passed so they're shoving their agenda down everyone's throat by making their legislation a "rule", In Letter, Texas Department of Health Accused by Ten Democratic Legislators of Subverting Democratic Process

Why does Mitch McConnell(R-KY) Hate Americans : I’m ‘Not Convinced’ Congress Should Prohibit Insurers From Discriminating Against The Sick

Sleaze Bags of the Week - Conservative Republican Super PACs Buying Democracy Like Its French Champagne

I love screwing over seniors and the disabled. My plan would gut that Marxist program called Medicare

Sleaze Bags of the Week - Conservative Republican Super PACs Buying Democracy Like Its French Champagne

If you’re visiting a candidate this summer and looking for a thoughtful Super PAC donors have money to spare, but it's democracy they're burning to the ground.house gift, might we suggest a nice Super PAC? Thanks to the Supreme Court and Citizens United, they’re all the rage among the mega-wealthy. All it takes is a little paperwork and a wad of cash and presto, you can have, as The Washington Post describes it, a “highly customized, highly personalized” political action committee.

It’s easy -- Super PACs come in all amounts and party affiliations. You don’t have to spend millions, although a gift that size certainly won’t be turned aside.  Cable TV tycoon Marc Nathanson got a Super PAC for his friend, longtime Democratic Congressman Howard Berman from California, and all it cost was $100,000. Down in North Carolina, Republican congressional candidate George Holding received a handsome Super PAC that includes $100,000 each from an aunt and uncle and a quarter of a million from a bunch of his cousins. Yes, nothing says family like a great big, homemade batch of campaign contributions.

You can start a Super PAC on your own or contribute to one that already exists. Super PACs are available for every kind of race – presidential, congressional or statewide. But there are other ways you can help buy an election. Look at the Wisconsin recall campaign of Republican Governor Scott Walker. At least fourteen billionaires rushed to the support of the corporate right’s favorite union basher. He outraised his Democratic opponent, Milwaukee Mayor Tom Barrett, by nearly eight to one. Most of his money came from out of state. More than sixty million dollars were spent, $45 million of it for Walker alone.

Here are just a few of the satisfied buyers:

Wisconsin billionaire Diane Hendricks contributed more than half a million dollars on Scott Walker’s behalf. Her late husband built ABC Supply, America’s largest wholesale distributor of roofing, windows and siding.  Fearful the United States might become “a socialistic ideological nation,” she’s an ardent foe of unions and, in her words, “taxing job creators.” True to her aversion to taxes, she paid none in 2010, despite being worth, according to Forbes magazine, about $2.8 billion dollars.  

Before he launched his crusade against the collective bargaining rights of working people, Governor Walker had a conversation with Diane Hendricks, in which she asked, “Any chance we’ll ever get to be a completely red state and work on these unions… and become a right to work [state]? What can we do to help you?”

Walker replied, “We`re going to start in a couple weeks with our budget adjustment bill. The first step is, we`re going to deal with collective bargaining for all public employee unions, because you use divide and conquer.”

And so he did.

Walker also hauled in checks for nearly half a million from the Texas oligarch Bob Perry. He made his fortune in the home building business and is best known nationally for contributing four and a half million to the Swift Boat campaign that smeared the Vietnam War record of Democratic presidential candidate John Kerry back in 2004.

In Texas, Bob Perry is known for his cozy relationship with the state’s Supreme Court.  He once gave money to every one of its nine elected judges.  And guess what?  Those same nine judges later overturned an $800,000 judgment against his building company for faulty construction.  Bob the Builder, who’s naturally eager for help in the cause of tort reform -- that is, making it hard for everyday people to sue corporations like his for malfeasance -- has so far given four million to the pro-Romney Super PAC, Restore Our Future, and millions to Karl Rove’s American Crossroads Super PAC.

Then there’s casino king Sheldon Adelson, who gave Scott Walker’s cause $250,000. That’s a drop in the old champagne bucket compared to the $21 million Adelson’s family gave to the Super PAC that kept Newt Gingrich in the race long after the formaldehyde had been ordered.  According to The Wall Street Journal, Adelson did not long mourn Gingrich’s passing, and has now given at least $10 million to the Restore Our Future Super PAC supporting Romney. By all accounts, what he expects in return is that his candidate hold unions at bay and swear that Israel can do no wrong.

Next up on Scott Walker’s list of beneficent plutocrats: Rich DeVos, owner of the Orlando Magic basketball team and co-founder of the home products giant Amway, which, thanks to Republican leaders in Congress, once shared in a $19 million tax break after a million-dollar DeVos contribution to the Republican Party.  He’s a long-time member of the secretive Council for National Policy, a who’s who of right-wing luminaries.

Let’s not forget cowboy billionaire and born again Christian, Foster Friess, Rick Santorum’s moneyman, who told us about the good ol’ days when womenwould “use Bayer aspirin for contraceptives. The gals put it between their knees and it wasn't that costly.”And Louis Moore Bacon, the billionaire founder of the hedge fund Moore Capital – which in 2010 was fined $25 million for attempted commodities manipulation. A big backer of Romney, he, too came to Walker’s aid in Wisconsin.

So did Dallas oil and gas wildcatter Trevor Rees-Jones, who’s given millions to Karl Rove’s American Crossroads, in anticipation of another administration as friendly to taxpayer subsidies for big oil as the Rove-Bush White House. Last year, Rees-Jones’ company, Chief Oil, and a partner sold to Chevron nearly a quarter million acres in northeast America’s Marcellus Shale – the epicenter of the raging controversy over fracking. Estimated price: one billion dollars.

We could go on and name more, but you get the picture. These are the people who are helping to fund what the journalist Joe Hagan describes as a “tsunami of slime.” Even as they and their chosen candidates are afforded respectability in the value-free world of plutocracy, they can hide the fingerprints they leave on the bleeding corpse of democracy in part because each Super PAC comes with that extra special something every politician craves: plausible deniability. When one of their ads says something nasty and deceitful about an opponent – when it slanders and lies – the pol can shrug and say: “Not my doing. It’s the Super Pac that’s slinging the mud, not me.”

And that’s how the wealthy one percent does its dirty business. They are, by the way, as we were reminded by CNN’s Charles Riley in his report, “Can 46 Rich Dudes Buy an Election?” almost all men, mostly white, “and so far, the vast majority of their contributions have been made to conservative groups.”  They want to own this election.  So if there are any of you left out there with millions to burn, better buy your candidate now, while supplies last.

by Bill Moyers. Reprinted for educational purposes.

Since that column was written Sheldon Adelson has said he plans to give -not $10 million to Romney, but a $100 million. Democracy has always been tainted by money. It has simply become worse then ever, a nightmare of perverted democracy. Conservatives Republicans have no conscience or moral qualms about it because winning is everything, If they have to win down and dirty, they will. Conservative Republicans have given lip service to morals for decades, but they never actually live up to their moralizing.

TV Media Ignore Romney's Clean Energy Contradictions. Admittedly it will take a little more than money to become president. Romney is going to lie about everything all the time.

Romney's Big Lie on the Economy Now Bigger than Ever 

Republicans Do Not Care About The Deficit. They Care About Cutting The Safety Net for Seniors and Children

Republicans Do Not Care About The Deficit. They Care About Cutting The Safety Net for Seniors and Children

OK, so why does everyone think the deficit is out of control and a threat to the existence of the republic? Good question. It's probably way too late to pull us out of the rabbit hole we've collectively dived into, but anyone reporting on this really owes it to their readers to explain the basic political dynamics at work. So why do Republicans and Democrats both think the deficit is a problem?

    Answer for Republicans: They don't think the deficit is a problem. If they did, they'd favor tax increases, Pentagon cuts, and Medicare cuts, since even the most dimwitted among them knows that cutting domestic discretionary spending won't make a dent in the deficit. But they favor none of these things.

    Rather, they think federal spending on liberal social programs is a problem, and yammering about the deficit is a good way to force cuts to these programs. And there's nothing wrong with this. It's good politics. Why waste a crisis, after all? But anyone reporting on this issue really needs to be honest about what's going on. Republicans want to cut social spending. The deficit is just a handy cudgel to make this happen.

    Answer for Democrats: I'm actually a little stumped here. I think most Democrats understand that the short-term deficit really isn't a problem, and they also understand (I hope) that allowing the Bush tax cuts to expire and letting the economy recover will get us very close to eliminating the primary deficit (i.e., the deficit minus interest payments). If we do that, then publicly held debt as a percent of GDP stabilizes and the deficit problem becomes pretty manageable. The chart on the right from CBPP shows this graphically.

    In the longer term, Medicare growth is a problem — which is just another way of saying that healthcare spending in general is a problem. This needs to be addressed, but it needs to be addressed for its own sake, not just because it affects the federal deficit.

    So why have Democrats joined the deficit chorus? I'm not sure, really. I'd guess it's mainly just fear that they've been outflanked on the issue, and if they want to stay in office they have to yammer about it. But that's just a guess.

In any case, Republicans are wrong: we don't have a spending problem, we have an aging problem. As America ages, Social Security and Medicare are going to cost more, and unless you want to start killing off old people Soylent Green style there's no way to avoid this even if we do get a handle on rising healthcare costs. This in turn means we're going to need more revenue to care for the elderly. As Jon Cohn says today, "It's ridiculous to have a conversation about balancing the budget that won't even contemplate higher taxes."

A perpetually growing deficit will eventually drive up interest rates and slow economic growth, so it's something we should take seriously. But slashing social programs is exactly the opposite of taking it seriously. We need to let the Bush tax cuts expire, get out of Iraq and Afghanistan, keep working hard on reining in healthcare costs, and accept the fact that we're going to need to fund an aging population whether we like it or not. Do that, and all we'll need is modest discipline in the rest of the budget. The long-term deficit is a problem, but it's not a crisis

Perhaps the biggest piece of evidence that conservative Republicans only care about deficits as a political wedge is that they ran up historic deficits from 2001 to 2008 and did not rise one dollar in revenue to pay the deficit down. Mitt Romney has a deficit "reduction" plan, full of accounting gimmicks it will increase the deficit by at at least $3 trillion dollars while cutting the safety net and buying the newest toys for the military.

The Debt Increase Under Obama Is Largely A Result Of Bush-Era Policies

Trump on Romney: ‘He’d Buy Companies, He’d Close Companies, He’d Get Rid Of Jobs’

The Koch Brothers Anti-American Agenda Exposed and They're Not happy About It

The Koch Brothers Anti-American Agenda Exposed and They're Not happy About It

With my new film Koch Brothers Exposed set for release, the billionaire industrialists Charles and David Koch are doing everything they can do hide their behavior. First they got their lawyer to fire off a menacing letter that all but threatened news organizations that dare to cover the film’s content. Now they’re insisting — get this — that there’s nothing to debate anyway.

That’s right. In response to my offer to a debate or public discussion, the Koch brothers, hiding behind their attorney, wrote, “We are confused about what there is to debate.”

Perhaps the Kochs have not seen what my team and journalists such as Lee Fang, Adele Stan, and Jane Mayer have uncovered. What we’ve found is that Charles and David Koch are using their vast fortune to buy the political and legal process. They are corrupting democracy in ways that are harming the 99% while serving their own economic interests.

One area of excessive influence is energy policy. The Kochs own Koch Industries, one of the top 10 polluters in the nation, which means they have a strong interest in eliminating or preventing environmental regulations. The Kochs have given over $500,000 to members of the U.S. House of Representatives’ Energy and Commerce Committee, which proposes environmental regulations and is supposed to hold polluters accountable. Indeed, as our film reveals, the Kochs are the oil and gas industry’s single biggest donor to that committee. Is it any wonder that Congress won’t pass bills to curb climate change or tackle other environmental problems?

In fact, the Kochs frequently have secret summits where they host wealthy right-wing donors as well as federal policymakers to talk strategy and fundraising. Participants have included U.S. Rep. Eric Cantor, R-Va., and Supreme Court Justices Antonin Scalia and Clarence Thomas. Those two justices recently increased the Kochs’ power by voting in the Citizens United case to allow unlimited corporate money into politics. And just last week, the justices heard a case challenging the constitutionality of the Affordable Care Act — a bill that the Koch-founded and -financed group Americans for Prosperity has been pushing to overturn. Should our system permit such a conflict of interest, enabling the Kochs to wield influence that virtually no other citizen can match?

This influence also extends to the state level. The Kochs have given at least $1 million to the American Legislative Exchange Council (ALEC), a group that writes pro-corporate laws that are often passed nearly verbatim in state legislatures across the country. Among these laws are onerous voter ID restrictions (to reduce the number of votes from the young, the elderly, the poor, and people of color) and various bills that undermine workers, consumers, and the environment.

Moreover, the Kochs have been propping up Wisconsin’s anti-union governor Scott Walker, who recently rammed a bill through his state legislature to gut the rights of public sector unions. AFP ran attack ads and organized a bus tour to stymie the union members opposing Walker’s power grab. Although the Kochs’ lawyer tries to distance his clients from all of that unpleasantness, he cannot take back what David Koch recently told a reporter: “We’re helping [Scott Walker], as we should. We’ve gotten pretty good at this over the years…We’ve spent a lot of money in Wisconsin. We’re going to spend more.”

Why won’t the Kochs debate these things? What are they hiding from? The fact is they have an undue, indeed corrupting, influence on our democracy, and they don’t want anyone to notice. After all, true democracy isn’t just a process where the rabble get to enter a voting booth every couple of years while the rich guys fund the candidates, think tanks, media campaigns, and on-the-ground organizations that set the parameters of public debate. Democracy is supposed to be a vibrant, participatory process where every citizen can have an impact on how the country is governed and narrow interests can’t commandeer the process for themselves.

Surely, that’s something worth debating.

Some days it is as though real life has become an episode of the Twilight Zone. We have proto-fascist like the Koch brothers and their bought and paid for puppet conservative politicians actually trying to end our democratic republic, all the while accusing President Obama, Democrats and anyone to the left of Mussolini of being dangerous.

My 14 Year Old Son Has Brain Cancer - Without Obamacare, We May Have Been Dropped By Our Insurance Company

The GOP’s nuke-dump donor. Another Koch brother type, Harold Simmons has given the most money to Republicans this election. Could his nuclear-waste dump be the reason? It has become as easy to buy a conservative Republican as it is to buy a loaf of cheap white bread. Simmons and the Koch brothers are the kind of people that Scott Brown (R-MS) calls his friends.

RNC chairman reflects on women, caterpillars