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Political Brinksmanship on the “Fiscal Cliff”; Will Congress Make a Deal?

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Congress engages in political brinksmanship on making a deal as the fiscal cliff looms within hours of the New Year

On the eve of the New Year, America braces itself for the possibility that taxes will increase overnight and unemployment insurance will stop for nearly two million Americans and their families.

Will the Stock Markets react negatively today as the country watches and waits for a Congressional deal to prevent going over the “fiscal cliff”?

Even this reporter cannot disagree with Senator Joe Manchin (D-WV) who said, speaking from the Senate floor that “something has gone terribly wrong when the biggest threat to the American economy at is the United States Congress.”

Vice-President Joseph Biden was on the telephone with Senate Minority Leader Mitch McDonnell  in discssions until midnight last night and their respective staffs talked late into the night.

The main issues of the impasse revolve around how to use the possible increase of revenue, generated by higher taxes on those who earn $250,000 or more.  Democrats want to use additional revenue to maintain  or freeze spending for discretionary programs including unemployment, food stamps, student loans etc. But Republicans want to use increased revenue to pay down the U.S. debt and make cuts to discretionary spending now.

Earlier on Saturday evening, Senate Majority Leader Harry Reid announced from the Senate floor that negotiations were at an impasse and that the Democratic and Republicans caucuses remained far apart.  Reid asked that the Senate adjourn and resume business at 11 a.m. today.

Reid said negotiations would continue, but are not currently ongoing within between members of the Senate.

Senate Minority Leader Mitch McConnell’s staff reached out to Vice-President Joe Biden when Reid announced Saturday he was removing the Social Security inflation calculation cuts from the negotiations.

One of the biggest concerns by Democrats about  the failure to make a deal before Jan.1, is the immediate cessation of unemployment benefits currently sustaining about two million unemployed Americans.  Senators Diane Feinstein (D-CA) and Bernie Sanders (I-VT) have expressed grave concerns about the termination of these benefits that are keeping people afloat and expressed their further concerns about a potential blow to consumer confidence, just as the economy has stabilized and continues to grow, up from 1.3 percent in the second quarter, to 3.1 percent GDP growth in the 3rd quarter. 

On Sunday, President Barack Obama made a rare appearance on NBC’s Meet the Press to discuss the Congressional fiscal cliff negotiations.  He continues to insist that all Americans earning up to $250,000 should  get a tax cut and everyone else, should pay more.  Republicans apparently were very unhappy with President Obama’s tone during the Meet the Press interview, who laid blame for Congressional obstruction at House Speaker John Boehner and McConnell for failure to compromise.

Speaker John Boehner has been sidelined to these negotiations for failure to gain support from the Republican caucus for any measure proposed to date.  Congressional watchers believe that Boehner’s speakership would be irreparably damaged if he were to allow a vote on a bill that would be carried by a majority of Democratic votes.

The “fiscal cliff” refers to the 2011 Budget Control Act that included $500 billion in tax increases and across-the-board spending cuts scheduled to take effect after Jan.1, 2013.

Most economic experts believe that the US economy will not take an immediate hit from a failure to pass a deal by January 1st, but could damage consumer confidence in the short-term. Other believe, on both sides of the aisle, that “going over the fiscal cliff” is not a bad tactic, could achieve a better deal for Democrats and will drive swift action to “cut taxes” by Republicans after the new Congress is formed on Jan. 3rd.

Image of the U.S. one dollar bill is courtesy of Freepik

316568_10150308241032334_651712333_8318983_213496096_nTanya L. Domi is the Deputy Editor of the New Civil Rights Movement blog.  She is also an Adjunct Assistant Professor of International and Public Affairs at Columbia University and teaches human rights in East Central Europe and former Yugoslavia.  Prior to teaching at Columbia, Domi was a nationally recognized LGBT civil rights activist who worked for the National Gay and Lesbian Task Force during the campaign to lift the military ban in the early 1990s. Domi has also worked internationally in a dozen countries on issues related to democratic transitional development, including political and media development, human rights and gender issues.  She is chair of the board of directors for GetEQUAL.  Domi is currently writing a book about the emerging LGBT human rights movement in the Western Balkans.

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‘I Have a Bucket of Water’: Dems to Save Johnson’s Job Over GOPer Who Wants ‘World to Burn’

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Mike Johnson can count on at least some Democrats to save his job after a second Republican announced he supports U.S. Rep. Marjorie Taylor Greene‘s efforts to remove the embattled GOP Speaker of the House. Weeks ago Greene filed a motion to “vacate the chair,” which she can call up at any time to force a vote that could lead to Johnson losing his gavel.

“I just told Mike Johnson in conference that I’m cosponsoring the Motion to Vacate,” U.S. Rep. Thomas Massie (R-KY) declared late Tuesday morning. “He should pre-announce his resignation (as Boehner did), so we can pick a new Speaker without ever being without a GOP Speaker.”

“You’re not going to be the speaker much longer,” Massie directly told Speaker Johnson, Politico reports, citing two lawmakers in the room.

Asked by a social media user, “What was the straw that broke the Camel’s Back? FISA? Foreign War Funding? Spending more than Nancy Pelosi? All of the above?” Massie replied: “All of the above. This camel has a pallet of bricks.”

Like many far-right House Republicans, Massie is furious Speaker Johnson plans to put on the floor foreign aid and national security legislation to support Ukraine, Israel, and Taiwan this week, only after Iran’s attack on Israel over the weekend forced his hand.

“Friday, we have one less Republican in the majority as Rep Gallagher leaves instead of finishing his term,” Massie wrote earlier Tuesday morning, referring to exiting U.S. Rep. Mike Gallagher (R-WI). “As a going away gift, Speaker Johnson plans to force the senate to take up Gallagher’s bill to ban tiktok and give Presidential power to ban websites.”

READ MORE: ‘Something’s Fishy Here’: Trump’s Latest $175 Million Bond Filings Questioned by Experts

“But still no border,” Massie lamented, referring to Republicans’ top priority after Donald Trump made clear he will campaign on an anti-immigrant platform and urged Republicans to block bipartisan legislation to fund additional border security.

(President Joe Biden and Senate Democratic Majority Leader Chuck Schumer supported the Senate’s bipartisan bill, which would have provided aid to Ukraine, Israel, Taiwan, humanitarian assistance to Gaza, and a massive increase in border security. It was killed in the Senate after Republican Minority Leader Mitch McConnell pulled his support in response to Trump’s remarks.)

Congresswoman Greene, who was accused by U.S. Rep. Jared Moskowitz last week of not having enough votes to “rename a post office,” much less unseat Speaker Johnson, responded to Massie’s remarks:

“Johnson is the Deep State Speaker of the House funding the Democrat’s agenda in an omnibus, blocking warrant requirements for FISA, this week ramming through billions for Ukraine, and now this after allowing Gallagher to leave his district without representation. Can’t continue.”

She also posted Massie’s signature signing onto her Motion to Vacate.

In a show of support for Johnson, last week Donald Trump held a joint press conference with the embattled Speaker, during which both attacked immigrants and Johnson vowed legislation to ban non-citizens from voting. It is already a federal felony for non-citizens to vote.

CNN’s Manu Raju reports, “after Gallagher resigns — Johnson would almost certainly need Democrats to save his job if the motion to oust him comes up for a vote. Democratic Rep. Jared Moskowitz says he would save Mike Johnson’s job if MTG [Marjorie Taylor Greene] brings motion to oust him.  Others like Democratic Rep. Tom Suozzi also said they would vote to save Johnson  ‘Democrats don’t even let her rename post offices, I’m not gonna let her make a motion to vacate,’ Moskowitz told me.”

Moskowitz responded, saying: “My position hasn’t changed. Massie wants the world to burn, I won’t stand by and watch. I have a bucket of water.”

READ MORE: ‘Scared to Death’: GOP Ex-Congressman Brings Hammer Down on ‘Weak’ Trump
 

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‘Something’s Fishy Here’: Trump’s Latest $175 Million Bond Filings Questioned by Experts

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Attorneys for Donald Trump waited until less than two hours before midnight Monday to file revisions to the ex-president’s $175 million bond for the judgment in his civil fraud case after New York State Attorney General Letitia James questioned the validity of his first bond. Legal experts are now questioning details of the new bond filings. Some suggest a portion of the $175 million might also currently be in use to secure other debts or obligations.

After Trump was found liable for manipulation of his net worth in the civil business fraud case and ordered to pay a $354.9 million penalty plus interest, he was required to post bond to ensure the people of the State of New York would receive $454.2 million if his appeal is unsuccessful.

“The judge said that the former president’s ‘complete lack of contrition’ bordered on pathological,” The New York Times reported two months ago.

Trump’s attorneys later declared it impossible for him to come up with a bond of that amount, and an appeals court drastically reduced the required bond amount to $175 million.

READ MORE: ‘Your Client Is a Criminal Defendant’: Judge Denies Trump Request to Skip Trial for SCOTUS

After 10 PM Monday night, ahead of the midnight deadline, attorneys for Donald Trump in court filings said the $175 million bond is secured, and is tied to a Trump account at Charles Schwab that has over $175 million in cash, CNN reports. The filing states the California company securing the bond, Knight Specialty Insurance Company (KSIC),  has administrative access to it and can pay out the $175 million if needed.

Trump’s attorneys “asked the judge to set aside the attorney general’s challenge to the bond and award him costs and fees.”

Professor of law Andrew Weissmann, a frequent MSNBC legal analyst and former Dept. of Justice official, is raising questions.

“Something’s fishy here,” he wrote late Monday night. “If Trump has $175M free and clear, why not just directly post it and not pay a fee for a surety bond? And the agreement does not give Knight a lien on the account as collateral and seems to afford Trump a two-day window to dissipate the account.”

A screenshot of a portion of the filing, posted by MSNBC’s Lisa Rubin, states, “Schwab, as custodian of the account, has acknowledged KSIC’s right to exercise control over the account within two business days of receiving notice from KSIC of KSIC’s intent to activate the control.”

Attorney and journalist Seth Abramson in a series of posts on social media claimed, “so this is looking very bad for Donald Trump. He says in his Monday night filing that the Schwab account has $175.3 million *in total*, so *if* Axos Bank is depending on that same account for a (semi-)liquid $100M in collateral on another loan, this bond filing is DOA.”

After asking, “Is Trump double-dipping?” Abramson posted more details.

NCRM has not verified those claims.

Attorney Lupe B. Luppen adds, “it took about ten seconds from opening the account security agreement to find a significant drafting error, which makes the signature page look like it belongs to a different agreement (DJT Jr’s attestation identifies the wrong secured party—a Chubb co.).”

READ MORE: ‘Scared to Death’: GOP Ex-Congressman Brings Hammer Down on ‘Weak’ Trump

Late Monday night on MSNBC Weissmann “expressed incredulity,” as Mediaite reported, saying of Trump and his bond: “It is just so remarkable. This is somebody who has been found by two juries to have defamed somebody, who has been found to have sexually assaulted somebody – the company of which has been found criminally liable for a decade-long tax conspiracy, criminally, and has been found to have committed fraud, has to post a bond of $175 million, is on trial starting today for a criminal case involving 34 felonies.”

“And he can’t find a frigging company that is registered in New York? Meaning, that they are licensed to do business here, which it appears they are not, and that has the wherewithal to pay the money because remember, the whole point is that you either have to put up the money now or you have to find a bond company that is sufficiently liquid that the plaintiff can look to that bond company if at the end of the day the judgment is affirmed.”

Attorney General Letitia James earlier had alleged KSIC, the company that secured the bond, was not registered to do so in New York. Experts questioned the language of that filing, claiming it did not require the company that secured the bond to actually pay out $175 million should Trump lose his appeal and be ordered to pay the full amount.

Calling it a “bizarre contract,” earlier this month The Daily Beast reported, “the legal document from Knight Specialty Insurance Company doesn’t actually promise it will pay the money if the former president loses his $464 million bank fraud case on appeal. Instead, it says Trump will pay, negating the whole point of an insurance company guarantee.”

READ MORE: ‘Not a Good Start’: Judge Slams Trump’s ‘Offensive’ Recusal Claims as a ‘Loose End’

 

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‘Your Client Is a Criminal Defendant’: Judge Denies Trump Request to Skip Trial for SCOTUS

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Barely hours after New York State Supreme Court Judge Juan Merchan gave Donald Trump the same set of rules requiring him to appear in court as all other criminal defendants, the ex-president’s attorney requested his client be allowed to skip trial next Thursday to attend the U.S. Supreme Court arguments on his immunity claim.

“If you do not show up there will be an arrest,” Judge Merchan had told Trump Monday at the start of his criminal trial, according to MSNBC’s Jesse Rodriguez. Trump is facing 34 felony charges for falsification of business records related to his alleged attempts to cover up hush money payments in an effort to protect his 2016 presidential campaign.

Judge Merchan had read from the same rules that apply to all defendants, but right at the end of day one of trial Trump attorney Todd Blanche made his request.

MSNBC’s Lisa Rubin reports, “after the potential jurors are gone, the fireworks start after Blanche asks Merchan to allow Trump to attend the SCOTUS argument on presidential immunity next Thursday, 4/25.”

READ MORE: ‘What Will Happen in the Situation Room?’: Trump Appearing to Sleep in Court Fuels Concerns

“The Manhattan DA’s office opposes the request, saying they have accommodated Trump enough,” MSNBC’s Katie Phang adds, citing Rubin’s reporting.

Judge Merchan “acknowledges a Supreme Court argument is a ‘big deal,’ but says that the jury’s time is a big deal too. Blanche says they don’t think they should be here at all, suggesting that the trial never should have been scheduled during campaign season.”

“That comment appeared to trigger Merchan, who asked, voice dripping with incredulity, ‘You don’t think you should be here at all?'” Rubin writes.

“He then softly asks Blanche to move along from that objection, on which he has already ruled. Merchan then got stern, ruling that Trump is not required to be at SCOTUS but is required, by law, to attend his criminal trial here.”

“Your client is a criminal defendant in New York. He is required to be here. He is not required to be in the Supreme Court. I will see him here next week,” Judge Merchan told Blanche, CBS News’ Scott MacFarlane reported.

That was not the only request Trump’s attorneys made to have their client excused from the criminal proceedings.

Lawfare managing editor Tyler McBrien reports, “Blanche says that the campaign has taken pains to schedule events on Wednesdays and asks Merchan if Trump be excused from any hearings that take place on Wednesdays, when the jury is in recess. Merchan says he will take this into consideration.”

READ MORE: ‘Scared to Death’: GOP Ex-Congressman Brings Hammer Down on ‘Weak’ Trump

Blanche also asked Judge Merchan to allow Trump to skip trial to attend his son Barron’s high school graduation. While the judge has yet to rule, Trump told reporters at the end of day one of trial, “it looks like the judge will not let me go to the graduation.”

The judge told Trump, “I cannot rule on those dates at this time.”

But Trump told reporters, “It looks like the judge isn’t going to allow me to escape this scam, it’s a scam trial.”

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