Don’t negotiate with financial terrorists.

April 27, 2023

          It takes a lot to displace a story about a defamation/rape trial involving the presumptive GOP nominee, but Kevin McCarthy’s sham budget is beyond the pale. McCarthy browbeat the GOP caucus in the House to pass a bill that has no chance of making it to the floor of the Senate. It is a bad-faith negotiating tactic threatening the global economy because McCarthy is a prisoner/hostage/victim of the MAGA extremists in the House.

Biden responded to the passage of the bill by saying that raising the debt limit was ‘not negotiable’, although he was “happy to meet” with McCarthy separately to discuss efforts to trim federal spending.

          Discussing the details of the bill grants it more dignity than it deserves, but the provisions of the bill highlight the depravity of MAGA extremists. First, it is important to note that despite some specific proposed cutbacks, the bill leaves most of the budget-cutting to the Appropriations Committee—meaning that McCarthy’s bill is a smokescreen designed to conceal the lack of substance. See NYTimes, What’s in the House G.O.P. Debt Limit Bill.  

          Per the Times,

Eventually, Republicans would need to identify spending cuts totaling $3.6 trillion over a decade, by their own calculations, and this bill does not outline them. Instead, House Republican leaders are punting those decisions to the Appropriations Committee.

          To the extent that the bill does identify specific cuts, most of them are targeted at vulnerable Americans who depend on government help for food, housing, and healthcare. The bill also targets Biden’s legislative achievements in the last session of Congress. The bill would:

• Impose additional work requirements on recipients of food stamps and Medicaid;

• Reverse funding to the IRS to improve customer service and crack down on tax cheats;

• Reverse key climate and green energy provisions of the Inflation Reduction Act; and

• Expand coal mining and fossil fuel production.

          In exchange for spending cuts to be determined by the Appropriations Committee at a later date, the bill would raise the debt limit for eleven months—ensuring another financial crisis in the spring of 2024.

          Biden is right to refuse to negotiate over the debt limit. Congress has the power of the purse; if the US is to avoid defaulting on existing obligations, it is up to Congress to ensure that the US has sufficient liquidity to pay its bills. If McCarthy can’t manage his caucus to deliver that result, he should resign.

          Watching Congress play “chicken” with a global financial crisis is an anxiety-producing development. But if Biden caves to Republican hostage-taking now, he will guarantee that the US experiences annual debt crises. Better to demonstrate to Republicans that managing the debt limit is not a partisan exercise but a constitutional duty.

E. Jean Carroll rape/defamation trial against Trump.

          The leading GOP contender for the 2024 presidential nomination is involved in a civil trial alleging he raped E. Jean Carroll in a Manhattan department store. Carroll testified today, giving dramatic testimony about the encounter. She also answered preemptive questions designed to take the sting out of expected cross-examination. CNN reports the details of her “chilling” testimony here: E. Jean Carroll testifies: ‘Donald Trump raped me and when I wrote about it, he said it didn’t happen’. The opening statements (on Tuesday) were described as going from “compelling to can’t look away.”

          The lawsuit matters because E. Jean Carroll finally has the opportunity to tell her story in a way demanding media attention. The day-to-day details are front-page news, albeit “below the fold” in the newspaper of record. Anyone who consumes news outside the Fox bubble knows that Trump is on trial for lying about raping a woman. That is another measure of accountability for Trump, no matter the outcome.

          But the Fox News website is devoid of any mention of the trial. Indeed, a search of the Fox News website reveals that Fox has reported on the progress of the E. Jean Carroll trial only three times in the last year. (Fox local affiliates in New York are reporting on the trial.) No matter. Even if the jury finds Trump liable for defamation, his cult following will not care. But persuadable Independent will—which is all that matters.

          Trump has chosen not to attend the trial—as is his right. But he is heckling from the sidelines on Truth Social, claiming that the proceeding is a “Witch Hunt.” Federal district Judge Lewis Kaplan was not amused. He warned Trump’s lawyer, Joe Tacopina, that Trump was

getting into an area where your client might be tampering with a potential new source of liability. And, I think you know what I mean.

          What Judge Kaplan means is that Trump may be attempting to influence the jury—which is a felony under federal law punishable by ten years in prison. The judge could declare a mistrial and make a criminal referral to the US Attorney in Manhattan. The judge would impanel a new jury—with Trump covering the legal expenses of E. Jean Carroll for the first trial.

          Of course, there is no guarantee that the jury will find Trump liable for defamation. But the judge has permitted other women to testify about assaults by Trump and has agreed to allow the “Access Hollywood” tape to be played to the jury. At the very least, Trump is being forced to defend himself in court with greater frequency. Sooner or later, his luck will run out—which can only be good for America.

          Speaking of Trump’s luck running out, read on!

Appeals court rules against Trump regarding Mike Pence's testimony.

          Former Vice President Mike Pence agreed to testify before a grand jury investigating Trump’s effort to overturn the 2020 election. Trump asked the DC Circuit Court of Appeals to block Pence from testifying before the grand jury. On Wednesday, a three-judge panel of the DC Circuit Court of Appeals refused Trump’s request, thereby allowing Pence to testify. See The Hill, Federal court rules Trump cannot block Pence from testifying to grand jury investigating Jan. 6. The panel’s ruling remains under seal.

          Trump can appeal to the US Supreme Court, though it is unlikely that the Court would grant review. So, sometime next month, Mike Pence will sit before a grand jury to answer questions about private conversations between Pence and Trump. Given what Trump says in public (see the above story), we can only imagine what he said to Pence in private.

          In the natural order of things, the former Vice President is the last witness that Jack Smith should hear from before making a charging decision. Let’s hope so!

Disney sues DeSantis.

          Disney has sued Ron DeSantis, alleging that the Florida governor has engaged in a campaign of retaliation for its opposition to Florida’s “Don’t Say Gay” bill. The lawsuit is here: Walt Disney Parks and Resorts v. Ron DeSantis. Disney prefaces its lawsuit with the following:

Disney regrets that it has come to this. But having exhausted efforts to seek a resolution, the Company is left with no choice but to file this lawsuit to protect its cast members, guests, and local development partners from a relentless campaign to weaponize government power against Disney in retaliation for expressing a political viewpoint unpopular with certain State officials.

          Disney seeks a variety of declaratory relief, mainly invalidating legislative and regulatory actions by Florida. Disney has also requested attorneys fees, which could be significant given that it has “lawyered up,” hiring Wilmer Hale and O’Melveny & Myers (Dan Petrocelli).

          In bad news for DeSantis, the case has been assigned to federal district Judge Judge Mark E. Walker. According to Mark Joseph Stern, Judge Walker is “a famously progressive Obama appointee who has struck down many of DeSantis’ most notorious assaults on free speech in Florida.”

          DeSantis’s suit against Disney results from an immature grudge that has spiraled out of control for DeSantis. Now that DeSantis is no longer on his home turf (the Florida legislature), things will start going very badly for DeSantis—which can only complicate his already bolloxed campaign.

Montana legislature’s efforts to discriminate against transgender people.

          Montana’s legislature has recently passed bills that restrict transgender rights. The only transgender person in the legislature, Rep. Zooey Zephyr, told their colleagues they would have “blood on their hands” if they passed the bills. Since then, the assembly speaker has refused to recognize Rep. Zephyr.

On Wednesday, the legislature prohibited Rep. Zephyr from appearing on the assembly floor. Rep. Zephyr will be allowed to retain their seat and cast votes remotely. See CNN, Montana House Republicans ban Rep. Zooey Zephyr from House chamber for remainder of legislative session.

          The bills that Rep. Zephyr protested are now headed to the desk of Montana Governor Gianforte for signature. The governor’s son, David Gianforte, who identifies as non-binary and is a member of the LGBTQ community, has lobbied his father to veto the bills. See Montana Free Press, MT Gov. Gianforte lobbied by his son to veto trans bills.

          David wrote an email to his father asking for a meeting. The email said, in part,

There are a lot of important issues passing through the legislature right now. For my own sake I’ve chosen to focus primarily on transgender rights, as that would significantly directly affect a number of my friends … I would like to make the argument that these bills are immoral, unjust, and frankly a violation of human rights.

          The governor met with his son and listened to his views. Although the governor declined to discuss the conversation with his son, the governor issued a statement that said,

          The governor loves his family and values their thoughts, ideas, and perspectives. Our office will not discuss private conversations between the governor and members of his family.

          As the governor of Montana is learning, attacks on the dignity and humanity of LGBTQ people are more difficult when family members are part of that community. Let’s hope that the governor’s son has convinced his father that limiting the rights of transgender people will put the lives of transgender people at risk—exactly as Rep. Zephyr said on the floor of the assembly.

Concluding Thoughts.

          Kevin McCarthy just went through several weeks of humiliating negotiations to produce a bill that is effectively a plea for Joe Biden to negotiate with McCarthy. No one takes the bill seriously, least of all McCarthy, who reportedly told members of his caucus that it didn’t matter what was in the bill because they just ‘needed to pass something.’

          In other words, McCarthy is begging Biden to negotiate. Biden is in a position of strength because he has been unequivocal and unyielding. You can’t negotiate with terrorists. Biden understands that fact.

          Meanwhile, everyone in America will experience the anxiety and worry of an impending debt default as Biden stands firm. But remember, Biden didn’t decide to tie the debt limit to a vague yet complicated package of spending cuts. McCarthy did. So, let’s stand with President Biden as he ensures that America will not experience successive financial crises over the debt limit for the next decade. Keep the longer-term goal in mind as we endure the pain of the debt limit hostage drama.

          Talk to you tomorrow!