DoJ Gonzalez: He will be confirmed as part of the new Wall Street dream team

DoJ: Copy of 6-page letter to Senate Judiciary Committee opposing Gonzalez nomination

Summary

Note outlines the implications of Gonzalez as DoJ AG: More pre-1930s recklessness in the markets. Buyer beware.

Discussion

Several former military commanders wrote a letter to the Senate Judiciary Committee. The letter is noteworthy in what it hopes to do. Ref The last three pages of text is biographical information.

The letter largely recounts the well known inconsistencies between the Geneva Convention and Gonazelz' statements in the memo.

The 6 page letter on page 4 suggests a series of questions which are problematic. Namely, all the questions are ones reserved for the confirmation hearing on the assumption that the response will actually mean something.

More telling is the questions simply ask, "Do you believe..." as if the response would change the nomination process.

I remain unpursuaded that any response, however "consistent" with the Geneva Convention, should be taken as a measurement of what Gonzalez is likely to do as DoJ. Rather than focus on the verbal responses, all the committee has to do is review the written memos.

That remains the evidence.

Yet, given the Republican-controlled committee we have little confidence the confirmation process is going to drag into the wee hours; or that any probing questions will necessarily change the vote.

In all likelihood, initial "oh, I'm so shocked" responses will face nothing but a rubber stamp.

No rules to enforce

It is unlikely that the Senate will take the Republican-lead in the House and actually enforce the rules. With respect to the House Republican's decision to hold Tom Delay accountable to the existing clearly promulgated standards, as opposed to the proposed selective waiver of the rules for Texans.

More broadly, we also note prior to the 2004 election many former State Department officials signed a similar letter of "no support" for President Bush. This is to say that in this case, where only 12 former military commanders signed the letter, we remain skeptical the letter will generate any national movement to remove Gonzalez from the nomination list.

President Bush is providing the nomination to a loyal ally from Texas. It is not likely the President, this late in the game, is going to withdraw the nomination as doing so would certainly raise questions about the basis for the initial appointment, and the information that might come to light. One embarrassment over Keric was enough.

It would be unlikely the White House, even if slapped in the proverbial-face with overwhelming evidence, would change course. Bluntly, there is no prospect the White House would want to admit for X-number of years "their man in the White House" [Gonzalez] was there, working, providing "wise counsel" to the President, all the while there was an issue related to vetting.

No. This late in the game, the President plans to win. No amount of Democratic whining is going to change the President's plan to create more excuses to ignore international law, undermine the constitution, and create double standards for government officials.

Momentum

The 2004 election, rightly or wrongly, was a mandate to continue the games with the full expectation that the country, in the end, can be manipulated to endorse and celebrate that which is most abhorrent to our founding principles.

The nation chose on 2004 to continue down the path toward greater fascism. And we see in the Indian Ocean what steps the Administration will take, even taking no action, in order to justify expansion of American interests.

More disasters remain on the horizon. And the Senior Executive Service working within DoJ can rest assured that Gonzalez will provide the necessary top cover to avoid war crimes trials. At this juncture, the damage is isolated to DoD.

Anything else, and you can surely expect the ghost of Vince Foster to resurface. Translation: It's not going to happen; and this problem is going to be buried.

Debt-deflationary escape plan

If you're still not clear what is going on in the country, here's the summary. The country just prior to 9-11 was quickly sliding into a debt-deflationary spiral. 9-11, like the Asian Tsunami, was selectively ignored so that greater government interests could be advanced.

9-11 brought the needed catalyst to change psychology, create an external focus, drive up spending, and militarize the economy. There is a direct relationship between military spending, national output, growth, and inflation.

9-11 brought the country the needed gift to drive down interest rates, fight debt-deflation, and justify increased debt-spending. In turn, the nation, so mobilized then launched on a crusade to execute the plan: Blame someone, find an excuse, and inject money into the economy to avoid a debt-deflationary crisis.

One small problem. The dollar continues to implode, the trade deficit is rising, and the constitution has now been undermined. All the while the local law enforcement took it upon themselves to abuse those most trusting of their authority and abuse the domestic and foreign populations under their charge.

This is fascism. And under Gonzalez it is going to continue. The tenor and tone may change, but the momentum continues.

Roach's Armageddon

The economy continues to slide, the dollar continues to weaken, and the only solution this nation has is to continue appointing officials most abhorrent to the underlying documents and principles. These are symptoms of a greater crisis.

It remains to be seen how long the United States remains a viable entity. The dollar no longer remains the "currency of last resort." Although OPEC petro-dollars are US-denominated, it remains to be seen how long this lasts.

Sure, America enjoys great prosperity, wealth, and a high standard of living. But the present condition may only be transitory as the nation continues to put pressure on the very talent needed to sustain wealth creation.

In the end, the market will decide. In the end, Wall Street will create the new monsters to gobble up the inefficient use of capital. In the end, things will be better off.

But, in the meantime, the market has yet to digest the prospect that more fascism is necessarily the best course of action.

All markets, when left to their own devices, will destroy the capital. It remains to be seen how many attorneys under the 'watchful' eye of this new attorney general will cross the line on ethics and embrace a "new paradigm" which is simply more of the same.

Tread carefully. The nation's sense of values, planning, and principles are getting undermined in order to fuel the Wall Street appetite for more markets, less transparency, and looser regulation.

1930's Hay Days

Gonzalez plans to deliver: Less oversight, poorer enforcement of the existing laws, and greater celebration of the days before the 1930s Acts. Whether he can convince the SEC to go along with this is irrelevant: If DoJ's resources are diverted to the "principles" Gonzalez has already discussed, you can rest assured that the big money is safe, and the "most convenient targets" are the ones the lazy-FBI agents are going to go after.

Buyer beware. We're going back to the 'before the 1930'-days. Gonzalez is doing exactly what the country wants.

Nothing has changed. The market knows there will be less sanctions on fraud, corruption, and spinning.

Welcome to the makings of another bubble. Gonzalez is part of the plan.