Saturday, July 19, 2008

Can America Afford a McCain First Term?

One of the common Republican criticisms directed at a potential Obama presidency is that its first two years will be marked by instability, poor management, and inexperience. But if managing an enterprise as large and politically complex as a presidential campaign is any indication of how either of these candidates will perform day one in the White House, it is McCain's campaign, not Obama's that should be worrying American voters.

Since announcing his candidacy last April, McCain has been unable to get control of his organization. The campaign's messaging, strategic planning, grassroots, and fundraising operations all have been mired in disarray. Most of the mess is attributable to the candidate's inability to establish a clear chain of command at the top and to quell infighting among senior staff, a somewhat stunning revelation when considering McCain's stature in the Party and past experiences as a presidential contender. But while the chaotic state of McCain headquarters has become a well worn subject over the past two weeks, with a litany of Republican elected officials and strategists questioning the candidate's chances in November, as well as mainstream media figures such as Bill Kristol and Adam Nagourney writing pieces chronicling the myriad and ongoing staffing problems, few seem focused on the more substantive issue of what all of this means for a McCain first term if he is actually elected.

With only 110 days left in the election, there is no discernible answer as to what a McCain presidency would look like, who would be the key players organizationally, where the primary policy focus would be directed, and how he would avoid the mistakes of management and judgment that have thus far pervaded his campaign. In fact, if the past year of inner circle shakeups is any proxy at all for how a first term might be run under McCain leadership, it is a disquieting reality.

  • First, McCain Campaign Version 1.0 was run literally into the ground by July of 2007 by advisors John Weaver and Terry Nelson, who under McCain's supervision mismanaged his finances so badly that they bankrupted the campaign. Overspending on offices, staff (Weaver hired his fiancée and her brother), polling, and consultants (Weaver increased his fees to $20,000 a month even as the campaign stumbled) forced the campaign to take out private loans, a matter now under FEC investigation, simply to stay afloat.
  • Then came Campaign Version 2.0 in August 2007, which continued on uninterrupted through June 2008 with McCain's hiring of lobbyist Rick Davis and number two Charlie Black. Far from achieving the goal of correcting the earlier mistakes of the Weaver/Nelson era, Davis and Black instead exposed more deeply than ever McCain's organizational ineptitude, including his unwillingness to completely banish or fire past advisors no matter how incompetent, his failure to define clear roles through established hierarchy, and his inability to provide a philosophical framework from which his campaign could launch a coherent attack on Obama. As Nagourney's piece last week pointed out, early missteps by McCain were not met with decisive action, but rather by incorporating a "swirl of competing spheres of influence, clusters of friends, consultants and media advisers who all represented a matrix of clashing ambitions and festering feuds."
  • Finally, Campaign Version 3.0 arrived in early July 2008, when McCain announced a third campaign shakeup that almost inconceivably fell exactly on the 1 year anniversary of his 2007 ousting of John Weaver. This latest "adjustment" appears to have firmly passed control from Rick Davis to Bush-Rove era veteran Steve Schmidt (incidentally in the process making McCain even more vulnerable to claims that his campaign is being cast in the mold of a Bush third term). But if McCain believes that the promotion of Schmidt will finally put to rest the problems of the past, he is likely to be disappointed again. His inner circle remains filled with people who have been demoted without losing their official titles, like Davis, who continues to occupy the title of campaign manager even as Steve Schmidt manages the campaign, a complicating fact that guarantees infighting will persist. Even more concerning is the revelation that McCain himself may still be unsettled with his inner circle even today, a point highlighted by Bill Kristol's article implicating the lingering influence of former McCain senior aide Mike Murphy over McCain. With all of this it seems likely that McCain Campaign Version 4.0 or some hybrid thereof is not far off.


Contrast this against the Obama organization and the differences are stark. They remain focused, organized, and well managed. Notwithstanding some shuffling of his policy team earlier in the year, Obama has made no major changes to his inner circle since announcing his candidacy. Moreover, the chain of command is defined and clear. At the top of the campaign sits David Alexrod and David Plouffe, with the former focused on message and communications and the latter on operations, political, and grassroots. There is no question as to their ability to make decisions on behalf of the candidate. This structural coherence has allowed the campaign to largely avoid the political infighting between staff that so paralyzes McCain's efforts. But perhaps even more impressive has been Obama's steady hand at the helm. He has maneuvered and managed his unlikely campaign through difficult waters in the primaries, defeating the Clintons, and so far effectively defending against the early attacks of McCain leading into the general. He also has adeptly unified the two houses of the campaign effort, the presidential campaign and the DNC, typically a messy business and a logistical nightmare. This organizational leadership augurs well for Obama's ability to execute a seamless convention later this Summer and enter the general with a strong party infrastructure behind him. Even more important is what it says about how he might manage his first few years in the White House if elected. With the Fall approaching and the campaigning reaching its peak, McCain's current political team will no doubt ratchet up the charges of inexperience and youth against Obama. But these cries will likely fall on deaf ears if Obama continues to deliver a consistent message and organize effectively through November. Who knows, though, maybe McCain Campaign Version 4.0 has something better up their sleeves that we haven't yet seen.

Original here

McCain Leaks Details Of Obama's Iraq Trip

Republican presidential candidate John McCain said on Friday that his Democratic opponent, Barack Obama, is likely to be in Iraq over the weekend.


The Obama campaign has tried to cloak the Illinois senator's trip in some measure of secrecy for security reasons. The White House, State Department and Pentagon do not announce senior officials' visits to Iraq in advance.

"I believe that either today or tomorrow -- and I'm not privy to his schedule -- Sen. Obama will be landing in Iraq with some other senators" who make up a congressional delegation, McCain told a campaign fund-raising luncheon.

Josh Marshall points out that there's something very wrong with this:

The Reuters piece hints at it. But if Obama is going to be in Iraq this weekend, this is a major breach on McCain's part. As a knowledgeable insider notes ...


"If it is true that Obama is going to Iraq this weekend, it is a very serious mistake for McCain to have disclosed it publically. Even for run-of-the-mill CODELs the military gives guidance like, "Please strongly discourage Congressional offices from issuing press releases prior to their trips which mention their intent to travel to the AOR and/or the dates of that travel or their scheduled meetings. Such releases are a serious compromise to OPSEC." If Obama is going to Iraq this weekend, I can not begin to imagine how much this is complicating the security planning for the trip."

It's known that Obama is leaving on his foreign trip this weekend and the Journal OpEd page this morning said that Obama could arrive in Iraq "as early as this weekend." And with a slew of reporters in tow, it's not exactly highly classified information. But there is a reason definite information about these sorts of trips aren't released in advance.

Hypothetically, maybe McCain was just guessing. But even so it would still be a serious lapse of judgment on his part.

In fact, McCain was furious when the press reported on his son serving in Iraq -- he feared the coverage would make him a target.

Original here

Johann Hari: We have everything to fear from McCain

When the almost six billion of us outside the US watch the contest for The Most Powerful Man in the World, we tend to focus on the candidates' foreign policies. If I was Iranian, say, I'd be anxious that John McCain keeps joking in public about killing me. As a bravo-bow after singing "bomb bomb bomb, bomb bomb Iran" to the tune of the Beach Boys melody Barbra Ann, he responded to being told exports of cigarettes to Iran are high by guffawing: "That's a way of killing them!"

But there's a way in which the next US president will affect you even more directly than foreign policy. By his economic decisions, the next president will help swing the price of the food you eat and the wages you earn – wherever you live on earth.

So it's a little worrying that John McCain – who still has a reasonable chance of winning – says: "The issue of economics is not something I've understood as well as I should... To be honest, I know a lot less about economics than I do about military and foreign policy issues. I still need to be educated."

This is a man who can't tell his Sunni from his Shia, and who opposed the Northern Ireland peace process as a capitulation to terrorism. And he admits he knows even less about the economy than that. On one occasion, he let his irritation with the subject slip by referring to it as "the credit cunt".

When he is forced to talk about the economy, McCain has always given the same answer: "I rely on the circle I have developed over many years – people like Phil Gramm." He has Herbert Hoovered-up his slivers of economic theory from this man – but who is Gramm? Until he briefly sputtered into the headlines a few days ago, nobody had cared to look.

Phil Gramm is an ornery old ex-Texas senator who seems to have swooped out of the most scathing H L Mencken sketch. He became McCain's "best friend in politics" – and started speaking to him every day – when they linked arms to stop Hillary Clinton's 1993 push to extend healthcare to poor Americans.

He calls for "ruthlessly" slashing government spending – but only focuses on spending on the poor. When he was told paying for healthcare plunged many 80-year-olds into poverty, he said: "Most of us don't have the luxury of living to be 80 years old, so it's hard for me to feel sorry for them."

Later, one of those very 80-year-olds approached him because she was terrified she wouldn't be able to pay her medical bills. Gramm laughed and told her to find herself a rich husband. He chuckled: "People say I don't have a heart. I do. I keep it in a quart jar on my desk."

But most relevant to those of us outside the US is that Gramm – more than any other figure in American politics – made the two great financial scandals of our time possible, and nearly brought the global economy down with him.

How? Gramm says government regulation of the economy is "akin to communism", and must be destroyed. His first great step towards this goal came in the 1990s, when he championed and pushed through the law that exempted Enron from both government regulation and public disclosure, on the grounds these were "unacceptable fetters on the free market". Enron was his biggest campaign contributor, and employing his wife to the tune of a million bucks.

So thanks to Gramm, nobody was watching over Enron any more. As a result, they embarked on a massive programme of fraud and pillage. After taking over the electricity market in California, they deliberately engineered blackouts in entire cities to drive up the price for power. In a surreal move, Gramm blamed "environmental extremists" – the nearest bogeyman to hand – even after it was proven Enron execs had paid the power plants to "get creative" in turning out the lights.

Gramm learned from the Enron scandal – to go further and push harder. He turned his attention (and his fund-raising) to the mortgage companies. Since the 1930s, there had been an unwritten deal in US politics: the government would rescue the banks if they grew sick, but in return the banks had to take the sensible medicine of regulation. Gramm thought this was "crazy": why would banks ever need to be rescued in a free market?

So in 2000, while everybody was riveted by the Gore vs Bush stand-off in Florida, Gramm slipped into a vast 3,000-page bill 268 pages radically deregulating the banking system. A legal textbook later called this "a stunning departure from normal legislative practice"; few lawmakers noticed it was there when they voted. Suddenly, the roles that had been reserved in the US for regulated banks were handed over to a vast network of unregulated financial institutions called the "shadow banking system." They began to offer wildly unsustainable mortgages to the poor at supersonic interest rates. Through accountancy-acrobatics, they then bundled these risky loans into exotic packages of derivative commodities.

All this was only legal because of Gramm's legislative footwork. He swiftly moved on from the Senate to a megabucks job at UBS, one of the banks raking in billions from his changes.

Within a few years, the entire system began to collapse without the support beams of state regulation. Sub-prime mortgages predictably fell apart, with 2 million Americans – mostly black and Hispanic – facing repossession. The state has had to step in with a much heavier hand than before – and even that will not prevent a recession now.

The billionaire Warren Buffet pointed out that Phil Gramm has twice tossed "financial weapons of mass destruction" into the US economy. Yet instead of shunning him, McCain made Gramm the co-chair of his presidential campaign, and hinted he might make him Treasury Secretary. McCain – the supposed scourge of buying influence – was even happy for Gramm to be simultaneously a paid lobbyist for the mortgage industry and helping to write his speeches about the mortgage crisis. The Gramm-grip on McCain's policies shows: incredibly, the wannabe-president responded to the credit crunch caused by deregulation by calling for even more deregulation.

The biggest question in US politics should be: would you buy a mortgage from this man? But it's a sign of how shallow the media coverage is that Gramm's ideological fanaticism passed almost without comment; he only became an issue when he made a silly verbal gaffe, claiming America is only in a "mental recession". (In CEO-Land, this is true: they are walking away with $100m bonuses from their failures.) Only then did McCain distance himself.

So it seems for this putative president, causing two major economic crises is fine – but speaking about them crudely is a step too far. Yessir: if you liked the credit crunch, you'll love McCainomics.

Original here