Obama: Seize the Moment and Shitcan Your Corrupt and Inept Economic & Military Teams

President elect Barack Obama introduces his new economic team: (From l.) Treasury Secretary Timothy Geithner, Council of Economic Advisers chair Christina Romer, and NEC director Larry Summers. Photo: Martinez Monsivais/AP.

Obama’s Moment is Passing Quickly
By Dave Lindorff / March 20, 2009

The actions of Obama’s Chief Financial Adviser Larry Summers and his Treasury Secretary Tim Geithner in permitting the payment of $165 million in bonuses to AIG executives (Summers, according to the Wall Street Journal, actually pressed Sen. Chris Dodd, D-CT, to secretly remove a bar to the payment of such bonuses from the bailout bill) and the storm of public outrage that has followed public disclosure of those payments, provides President Obama, whose administration is stumbling badly on many fronts, with an opportunity to turn things around and avoid political disaster.

He should promptly demand Geithner’s and Summers’ resignations, and should also fire the CEO of AIG, Edward Liddy (as 80% owner of AIG, the US has the power to do that anytime). It would also be a good idea at the same time to fire the CEOs of all the leading banks that are at this point surviving on government bailouts.

This would allow Obama to correct the fundamental mistake he made during the transition period following the November election in installing a bunch of Clinton-era economic advisors and Bush holdovers to be his economic team.

The US economy is in disastrous shape, and it is going to take new ideas, and people untarnished by the last 30 years of deregulatory excess and unsavory links to Wall Street, to rescue it. Obama has no shortage of good people to turn to: Nobel economist and NY Times columnist Paul Krugman, former World Bank Chief Economist Joseph Stiglitz and economist James Galbraith all spring immediately to mind as people who could offer new and better approaches to addressing both the immediate crisis and the longer-term challenge of restoring the health of the nation’s economy, and of making it work for everyone, instead of just the wealthy few.

Of course, it could be that Obama is really not interested in radically changing the US economy, and its financial system. He has certainly accepted the tarnished coin of the Wall Street establishment during his campaign, and could simply be doing their bidding, but one has to operate on the hope that this is not the case. After all, the Obama campaign also raised an unprecedented amount of cash from ordinary folks, and if money is influence, he owes those little people big time.

In any event, it seems clear that if this president who spoke during his campaign of “hope and change” continues to cater to the bankers and the corporate interests that want to see no major revamping of the economic system and the regulatory apparatus, he is headed for a one-term presidency–and a sad and failed one at that.

The voters who sent Obama to Washington have been willing to extend him the benefit of the doubt, even when he made his almost uniformly lousy cabinet picks. They were willing to grant that he had been handed a disastrous situation by the last administration.

But as each week passes, the disaster becomes less Bush’s and Cheney’s, and more Obama’s.

The same can be said of Obama’s other big crisis: the two endless wars in Iraq and Afghanistan. Again, Obama has largely retained and accepted the advice of the same people who helped run these huge policy disasters during the Bush/Cheney years, and is buying the basic assumptions of those two wars. He is most certainly not ending the Iraq conflict, and is now talking about leaving as many as 50,000 US troops in Iraq for years–as many as were in Vietnam in the fall of 1965. He is reportedly talking about doubling the number of troops in Afghanistan to over 60,000, and about expanding the war into Pakistan, and not just the tribal areas, but Baluchistan province, a heavily populated part of that country. This latter decision, which could lead to an explosion in Pakistan, and the collapse of the central government, could lead to an huge demand for more US troops in the area–perhaps hundreds of thousands more–and even to India’s entry into the conflict.

This is as outrageous and doomed a strategy as is his economic program of trying to salvage the nation’s zombie banks while nickel-and-diming a “stimulus” program for ordinary people.

He should seize the moment, shitcan his corrupt and inept economic team and sack his military advisers, including Defense Secretary Robert Gates and his Centcom commander David Petraeus, and bring in people who will tell him how to get the US out of both conflicts pronto.

If he fires and replaces his economic and military teams, and announces both a quick end to the Iraq and Afghanistan Wars and the immediate break-up of the country’s big failed national banks and financial institutions, he has a chance to become a great president. If he does not, it is as predictable as the rising of the seas that his presidency will be a failure. We are nearing a point where the American public is going to lose patience with the half measures, the continuing pouring of national treasure down the twin sinkholes of the failed financial institutions and the two endless wars in the Middle East, and the tone-deaf behavior of cabinet secretaries and advisors who don’t have a clue about how average Americans are living these days.

This is President Obama’s moment for action. Firing Geithner and Summers would be a good start.

Americans should make an effort to let President Obama know that they want more than token stimulus programs. (Just consider this: official unemployment is now 8.1 percent, but only 4.5% of American workers are able to collect unemployment benefits, and meanwhile, real unemployment is closer to 18 percent. That’s a lot of hurt, and not a lot of help.)

A good idea would be to join a march on the Pentagon set for this Saturday, March 21, (natassembly.org/MarchOnPentagon.html) and a two-day program of demonstrations against Wall Street set for April 3 and 4 in New York City (www.bailoutpeople.org).

[Dave Lindorff is a Philadelphia-based journalist and columnist. His latest book is “The Case for Impeachment” (St. Martin’s Press, 2006). His work is available at www.thiscantbehappening.net.]

Source / Common Dreams

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3 Responses to Obama: Seize the Moment and Shitcan Your Corrupt and Inept Economic & Military Teams

  1. Anonymous says:

    Lindorff “a Philidelphia-based journalist and columnist” needs to do some substantive research before bellowing out drivel like this. He obviously has no understanding of either the economy or the military, and screaming, “throw the bums out!” is more than dumb and irresponsible. If you are going to write, do your homework and have a central thesis. This is just a low-level outrageous rant that serves no one.

  2. Anonymous says:

    I agree with the comment made above – well said!

    And that’s ‘shit-can’, not shitcan………you’d think he could least spell correctly.

  3. I have been disappointed by administration actions so far on the economy and in foreign policy (military commitments and actions), and astouded by the overall lack of progressivism of Obama’s Cabinet appointees. Only Hilda Solis of Labor appears to have any credibility as a progressive in the area of her portfolio.

    Would either of the two Anonymi who’ve commented on this piece care to write about what THEY think is going on?

    One of the most telling “news stories” for me in the last week or so was Obama’s apparent shock and anger when he learned of the AIG bonuses. (Yes, yes, I understand that these weren’t bonuses paid to evil fund managers, but to good ones hired to limit damage; immaterial to my point.) Point being, shock and anger? Are we to infer that he wasn’t familiar with details of the massive AIG bail-out?

    A lot of progressives’ real hope has been, I think, that Barack Obama is an intelligent person, capable of understanding and addressing problems and issues in detail, a “policy wonk”, if you will. (Yes, yes, I know he’s only been in office 2 months and that’s NOT much time to remedy everything people desperately want remedied; immaterial to my point.) Point being, I’m starting to worry that this President is deferring way too much to his appointees, rather than HIM telling THEM what he wants done, and in the kind of unambiguous detail that would prevent abrupt and potentially dangerous detonations of public outrage over obvoius errors and missteps.

    The unState of the Union address again demonstrated Obama’s capabilities. But we have yet, I think, to see his leadership on the critical issues of the day.

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