Warren, the Export-Import Bank, War, and More

It is worth continuing the criticism of Elizabeth Warren, started in my last post. There is no doubt that she has engaged in some good initiatives like pushing for: transparency on the Trans-Pacific Partnership, calling out the too-big-to-fail banks, speaking out on student loan debt, and so on. However, it is still important to be critical of Elizabeth Warren even as I love her, so dearly so!

Back in the spring of 2014, the conservative media was up and arms, saying that Warren is a hypocrite for supporting the Export-Import Bank, which has been nicknamed the ‘Boeing Bank’ or the ‘corporate welfare bank.’

Now, what did Warren really say? What is the real story? Well, the quotes from Warren comes from an exchange reported on by Bloomberg News. Here’s that story, with bolded emphasis from me:

Every so often, the political spectrum in Washington bends to the point that erstwhile opponents find themselves walking in lockstep.

Last year, one of the House’s most outspoken Democrats, Arizona’s Raul Grijalva, agreed with Tea Party favorite Justin Amash on an amendment that would have restricted the National Security Agency’s spying powers. Tea Party groups and peaceniks both opposed U.S. intervention in Syria.

This week, Democrats such as Colorado’s Jared Polis teamed with Kentucky’s Thomas Massie and fellow libertarians to approve a House amendment that would let U.S. banks accept cash from marijuana businesses in states where pot is legal.

Could the dynamic repeat itself on the question of whether to renew the U.S. Export-Import Bank? Heritage Action of America thinks so.

The Tea Party-aligned group sent a letter today to Sen. Elizabeth Warren, a Massachusetts Democrat known for taking populist stands against corporate America, inviting her to speak about  ending the lender “and the political favoritism it engenders.”

“We, like you, are frustrated with a political economy that benefits well-connected elites at the expense of all Americans,” Heritage Action Chief Executive Officer Michael Needham wrote. “Your presence will send a clear signal that you are going to fight the most pressing example of corporate welfare and cronyism pending before Congress right now.”

Alas, it doesn’t sound like the former Harvard law professor will be lecturing to Heritage audiences any time soon.

“Senator Warren believes that the Export-Import Bank helps create American jobs and spur economic growth, but recognizes that there is room for improvement in the bank’s operations,” Warren spokesman Lacey Rose tells us in an e-mail. “She looks forward to reviewing re-authorization legislation if and when it is introduced.”

This means that she supports the Export-Import Bank. While the Washington Examiner is a conservative publication, a recent article by one of their writers, Timothy B. Carney, makes a good point about her support of this bank:

“Democratic Sen. Elizabeth Warren loves to shoot barbs at Wall Street. She also enjoys forcing taxpayers to absorb Wall Street’s risks while the banks pocket the profits…The Export-Import Bank puts taxpayer money behind the loans Citibank and Goldman Sachs make to foreign companies and foreign governments buying U.S. goods. President Obama is a huge champion of Ex-Im. Wall Street LOVES Ex-Im. Conservative Republicans oppose Ex-Im. Elizabeth Warren apparently sides with Wall Street. At Ex-Im’s annual conference, one Wall Streeter described Ex-Im’s loan guarantees to me as “free money.” Is Elizabeth Warren really fine with free money to Wall Street?

Apparently according to her campaign rhetoric, Warren is not fine with free money to Wall Street, but seemingly she picks and chooses her battles with Wall Street, which is troubling. The letter that Heritage Action, part of the Heritage Foundation, they posted it on their website and it seems to channel conservative populism. After Warren responded, they had a response that seems to attack “crony capitalism” and other top Democrats for supporting the bank (important parts are bolded):

“…Warren’s response is not quite what you would expect from someone who claims to be working “on the side of American families.” Especially when the corporate-welfare machine she is in support of “guarantees ‘free money,’ allowing [banks] to be more aggressive in financing exports because taxpayers serve as the backstop if a deal fails.” Warren is not the first on the so-called populist left to support the Export-Import Bank. Others [sic]  liberal leaders in favor of reauthorization include former Secretary of State Hillary Clinton, Senate Majority Leader Harry Reid, and Senator Chuck Schumer. In response to her decision, Heritage Action has made sure that all of the followers of the self proclaimed “enemy of greedy corporations” see her position when it comes to actually fighting against corporate welfare…The expiration of the Export-Import Bank’s charter is approaching quickly.  What can you do? Share this page with your friends and neighbors an spread the message about ending the Export-Import Bank and the culture of cronyism in Washington.”

They even created an ad criticizing for her support of the bank.

Now, her support of this bank is only one issue of many. Recently, a reporter tried to ask Warren her view on Israel’s invasion of Gaza and she literally ran away:

Later on, she did not even let out peep (and neither did other ‘progressives’ like Bernie Sanders) when $225 million in new funding for Israel’s Iron Dome system was approved by unanimous consent (also see here). Hence, there is no record of a vote. This is not very surprising considering, in the words of Jeff Klein, she was persuaded to sponsor Senate Res. 65, which mandated “a new round of sanctions against Iran and promising to support Israel if it should choose to launch a unilateral war” in May 2013, joining the “unanimous vote in favor of the bill.” Furthermore, Kelin wrote that her vote, she he possible rationalized pragmatically means that her senate seat “is worth the price of a vote for AIPAC.”

That doesn’t seem good. She has been ok with a number of corporate-friendly nominations of the former Obama administration such as Sylvia Mathews Burwell (see here); Sharon Y. Bowen, previously a partner at the corporate law firm, for the commissioner of the CFTC [Commodity Futures Trading Commission] (see here);Stanley Fischer, who worked at the World Bank and the IMF, for a seat on the Federal Reserve Board of Governors (see here); Robert A. “Bob” McDonald, former CEO of Proctor & Gamble, for Secretary of Veterans Affairs (see here); Wanda Felton, who formerly worked for investment firms, to be First Vice President of the Export-Import Bank of the United States (see here); Catherine Ann Novelli, who was formerly a partner for Mayer, Brown, Rowe & Maw LLP, to be the United States Alternate Governor of the International Bank for Reconstruction and Development (see here); Richard Stengel, who wrote for Time magazine, to be an Under Secretary of State (see here); Max Baucus, who voted for the Iraq war, to be ambassador to China (see here); and Mel Watt, to be the director of the Federal Housing Finance Agency (see here). Warren just happened to not vote for Janet Yellen, who has a pro-business record supporting business-friendly measures like Quantitative Easing and supports continuing to fork over tax dollars to the big banks, for chairman of the Federal Reserve. If that’s not enough, Warren also voted for a bill which imposed sanctions on Russia, or any person that is complicit in violence or corruption in Ukraine, and guaranteed economic assistance to Ukraine. For more, read the bill itself. Then there was Warren’s vote for Jeh Johnson (for Secretary of the DHS) who was “an unapologetic supporter and enabler of President Obama’s policy of drone warfare.” The positions of Warren don’t get any better. While she, along with Tom Coburn, have a “bipartisan proposal…to increase transparency around settlements reached by federal enforcement agencies,” there is nothing I can find of her rejecting the recent settlement and calling for prosecutions of those responsible.

The biggest news I found was a national security speech she made in February 2014. In that speech, as reprinted in the Huffington Post, part of which I’ll quote below (I bolded a number of important parts):

…It’s been thirteen years since the events of September 11, 2001…For thirteen years, we have lived through the repercussions of that terrible day. Now, the first chapter in our nation’s post-9/11 history is coming to an end. We are out of Iraq and the drawdown in Afghanistan is underway. We are ending two wars, but this does not mean that we will withdraw from the world beyond our shores, or pretend that there are no threats to our safety and security. As we start a new chapter, we still live in an unstable and unpredictable world: a world with terrorists plotting to cause catastrophic destruction, a world with dictators and tyrants, a world with threats in cyberspace and from new technologies. We know that we must remain vigilant and engaged abroad, taking steps to defend our allies and to protect our people. But as these two wars come to an end, we also have an opportunity to think about what we can learn from the last decade of conflict. There are many questions worth asking about how to make sure our actions advance our national interests…Today, I want to focus on a related question about how we advance our national interests – a question that is discussed less often than many of the others, but one that I think deserves our attention. How should we think about civilian casualties and their effect on our strategic decisions?…

Civilian casualties are an inevitable and unavoidable consequence of war, and modern conflict has made it more difficult to know who is innocent. We can’t always distinguish between civilians and combatants..Seriously addressing the issue of civilian casualties is essential to upholding our values at home and advancing our interests overseas. Our military is the most professional and honorable fighting force in the world, and I know first-hand how creative and tough our armed forces are...We take pride in the way that our servicemembers conduct themselves, but some people assume that when the shooting starts, military law, domestic law, and international law are left behind. The reality is the opposite. Law is an integral part of American warfare. Our soldiers learn basic legal principles as part of their training.

Military lawyers are embedded into our fighting units, working alongside commanders to evaluate the legality of even the most sensitive decisions. We follow the law because our national values – and our national interests – demand it…the laws of war require us to consider not just expediency, but also humanity…General Stanley McChrystal, the former commander of our armed forces in Afghanistan, described this lesson a few years ago…McChrystal describes this dynamic with insurgents, but the same dynamic is at work with the collateral deaths of innocent civilians – and the same dynamic can apply during all kinds of military operations – Special Forces missions, counterterrorism operations, and efforts to train security forces. Over the past decade, in Iraq and in Afghanistan, military commanders increasingly tried to address this problem… The military increased its efforts to educate and train our soldiers and Marines on civilian protection. And leaders in the military started tracking the number of civilian casualties, so they could learn from the statistics and identify ways to lower civilian casualty rates…

As the conflicts in Iraq and Afghanistan progressed, our military leaders increasingly took seriously the costs of civilian casualties in military engagements, and they learned how important it is to prevent civilian casualties. But now it is time for the next question: when our country considers military interventions abroad – and especially when leaders publicly debate the costs and benefits of using force – do we factor in this same lesson? Do we fully consider the costs of civilian casualties?…Many policymakers in Washington seem hesitant to…acknowledge the reality that military commanders deal with every day, the reality that civilian casualties affect U.S. interests abroad. And when we debate the costs and benefits of intervention – when we discuss potential military action around the world – the talk about collateral damage and civilian casualties too often seems quiet. The failure to make civilian casualties a full and robust part of our national conversation over the use of force is dangerous…Our decision-making suffers – and our ability to effectively advance our interests suffers – when we do not grapple fully and honestly with all of the costs and benefits, all the risks, all the intended and unintended consequences of military action.

When our country considers military intervention, we must be hard-headed and clear-eyed…Unintended consequences can have a profound impact. Whatever our righteous intentions, the world does not hold us blameless when civilians die…We must begin by establishing training programs that directly address civilian casualties. The military has begun to put together educational and training materials based on experiences in Afghanistan and Iraq…Next, we need to improve our efforts to track civilian casualties during any military engagement…While secrecy – particularly as it relates to operational plans – is necessary in some cases, tracking casualties and making those data publicly available will help us make the best decisions here at home and demonstrate to the world that America takes civilian casualties seriously…Our enemies will do all that they can to shake our confidence and the confidence of the Afghan people. In turn, we must continue to demonstrate our resolve to the enemy. We will do so through our relentless pursuit of the Taliban and others who mean Afghanistan harm, through our compassion for the Afghan people, and through the example we provide to our Afghan partners…Our military leaders recognize that our moral values need not conflict with our strategy. As we reflect on the wars in Iraq and Afghanistan and as we prepare for the future use of military force, we must remember this as well.

We are a great country, a country rooted in the values of liberty and justice, compassion and community. We cannot turn a blind eye to the rest of the world – pretending that dangerous dictators pose no threat to us or that atrocities committed outside our borders don’t matter. But when we consider whether using force is in our national interest, we also should not – we cannot – turn a blind eye to the impact of unintended civilian casualties. The decision to use military force is one of the most important any country can make. If we openly consider all the costs and benefits, all the intended and unintended consequences, we will make better decisions – decisions that will live up to our nation’s core values, advance our national interests, and preserve our role as a moral leader in the world.”

Despite this, I commend her on considering the “intended and unintended consequences of military action” (esp. with civilian casualties) with the latter constituting a word she strangely does not use, but is used by many critiquing the American foreign policy: blowback.

There is one more aspect I’ll cover in this article, and that is Warren’s bill titled Bank on Students Loan Fairness Act introduced in 2013, with a companion bill in the House of Representatives introduced by Rep. John F. Tierney. Ellen Brown, in a June 2013 article for CounterPunch writes about the bill, noting that:

“…Students are considered risky investments because they don’t own valuable assets against which the debt can be collected. But this argument overlooks the fact that these young trainees are assets themselves. They represent an investment in “human capital” that can pay for itself many times over, if properly supported and developed.  This was demonstrated in the 1940s with the G.I. Bill, which provided free technical training and educational support for nearly 16 million returning servicemen, along with government-subsidized loans and unemployment benefits…Investing in our young people has worked before and can work again; and if Congress orders the Fed to fund this investment in our collective futures by “quantitative easing,” it need cost the taxpayers nothing at all. The Japanese have finally seen the light and are using their QE tool as economic stimulus rather than just to keep their banks afloat. We need to do the same.”

I find it worrisome that Warren’s bill is based around the idea of Quantitative Easing, however her major argument was correct of course.

Even with all of this said, we all still LOVE Elizabeth Warren.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s