The Pope vs. the Koch Bros

Pope GOPClimate change has been a hot topic on both the left and the right, with ongoing controversy at the Smithsonian and the release of the Pope’s encyclical on the environment.

On June 15, environmental activists gathered at the Smithsonian Castle for the institution’s Board of Regents meeting, and marched to the National Museum of Natural History to protest climate-denier-oil-baron David Koch being on the museum’s advisory board. The campaign to oust Koch from the board is being led by The Natural History Museum, a mobile museum bus that seeks “to include and highlight the socio-political influences that shape nature.”

The campaign is part of a larger effort aimed at natural history museums by scientists and climate activists, to demand that scientific institutions cut ties with climate-science denying fossil fuel funders.

On June 18, Pope Francis released his climate change encyclical, Laudato Si, putting the heat on religious conservative politicians here in the U.S. At the Road to Majority conference hosted by the Faith and Freedom Coalition in DC, this reporter asked Sen. Ron Johnson and Governor John Kasich whether they agreed with the Pope that climate change is a moral imperative requiring action. Their answers were surprising.

Watch them in the video segment below. Featuring interviews with Sen. Ron Johnson, Rep. Steve King, Gov. Jeb Bush, Gov. John Kasich, Director of The Natural History Museum Beka Economopoulos, and climate expert Joe Romm. Subscribe to The Undercurrent on YouTube for more independent, on-the-ground political reporting from Lauren Windsor.

Did John Kasich Just Call the Pope a Heretic?

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Ohio Governor, presidential aspirant, and Roman Catholic John Kasich took a swipe at the pope last Friday at a conference hosted by the Faith and Freedom Coalition.

Asked if he agreed with Pope Francis that climate change is a moral issue requiring action, Kasich told me that he agreed that protecting the environment is good. However, he disagreed with the pope’s economic conclusions, characterizing them as anti-free-enterprise. But the pope’s remarks in his climate change encyclical, Laudato Si, weren’t so much anti-free-enterprise as they were anti-consumerism and anti-profiteering.

It appears that Kasich interpreted the encyclical as pantheistic, because he made a strange implication:

I read a great book on St. Francis Assisi, who the pope kind of models himself after. The environment was given to us by the Lord, and it needs to be taken care of, and it shouldn’t be worshiped; that’s called pantheism.

Who is worshiping the environment here? Pope Francis? Is Kasich implying that the pope is a pagan, a heretic?

Countering the pope’s economic conclusions, the governor defended free enterprise as a solution for global poverty, perhaps suggesting that he worships the markets instead. Kasich did profess a desire to develop renewable energy, but that belies the fact that last year, he signed H.B. 310 into law, becoming the first governor to freeze his state’s renewable-energy standards. Many in Ohio believe the freeze will lead to a full repeal.

According to Mark Shanahan, an energy-policy adviser to Ohio’s previous governor, Ted Strickland, “On renewable energy, Kasich has good rhetoric, but his actions have seriously damaged renewable energy in Ohio.”

Gov. Kasich followed up on the renewables freeze by signing legislation that dealt a crippling blow to wind farms. Because it was a budget bill, the governor had the power to line-item veto the wind-farm provision, but he chose not to use it. If Kasich supports developing renewables, he has a funny way of showing it.

When I asked him what legislative action he would take with regard to climate change, Kasich said, “Let’s not get carried away.”

“Kasich saying he’s for renewable energy is like Kasich saying he’s for the letter Z,” said State Rep. Kent Smith (D-OH 8). “He’s OK if it exists; he just doesn’t want it used that much.”

Watch the exchange with Kasich in the video below, and subscribe to The Undercurrent on YouTube for more independent, on-the-ground reporting.

Jeb Bush: I Embrace Carbon Reduction

The encyclical on climate change released by Pope Francis this week is wreaking havoc for conservatives. At the Road to Majority conference hosted by Ralph Reed’s Faith and Freedom Coalition, climate has been the top question on reporters’ lips.

Sen. Ron Johnson (R-WI) claimed to be an environmentalist; Rep. Steve King lost his temper with the executive director of Catholics United, James Salt; and Jeb Bush said that he embraces the reduction of carbon emissions.

Bush, a devout Catholic, made headlines earlier in the week for saying that he doesn’t take economic policy advice from the clergy. Watch the exchange with Bush below, and subscribe to The Undercurrent on YouTube for more independent, on-the-ground reporting.

Financial Foxes Are Guarding the Wall Street Henhouse

SEC Commissioner Slams SEC, and CFTC Commissioner Denies Role of Excessive Speculation in 2008 Crisis

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“Capital Unbound: The Cato Summit on Financial Regulation in New York City,” Tuesday, June 2, 2015, New York City 

Wall Street regulators recently spoke at a libertarian financial conference alongside economists advocating for abolishing the Federal Reserve, FDIC deposit insurance, and Dodd-Frank financial legislation.

Asked if the Securities and Exchange Commission had ever reduced investor losses in its entire history, SEC Commissioner Michael Piwowar replied, “Excellent question. The answer to that question can be answered in three words: I don’t know.” He also told the crowd that the job of the SEC should be to promote not investor confidence but investor skepticism.

Citing a lack of demonstrable data, Commissioner Giancarlo denied that overspeculation was a factor in the 2008 financial meltdown. He went on to say that it was less important what he thinks and more important what Congress thinks — that Congress could have found that excessive speculation caused the 2008 crisis but did not.

Á la Tony the Tiger, the director of the Cato Institute’s Center for Monetary and Financial Alternatives, George Selgin, said with unabashed glee that bank runs are “great.” This remark came during an extended schtick mocking George Bailey, the protagonist of the Christmas classic It’s a Wonderful Life. Selgin concluded that Bailey’s bank should have been run on because he spent too much time talking to angels rather than managing his investment portfolio.

After the conference, I asked Selgin to explain why bank runs are a good thing, given that most people would find that assertion counterintuitive in the post-2008-crisis era. He said that bank runs are a natural response by consumers and a needed penalty for bankers, and that federal deposit insurance should be eliminated. Without the backstop of the FDIC, consumers would be forced to thoroughly research bank balance sheets — regardless of the financial savvy it would require for the average American to do so.

And Selgin thinks this is actually feasible — according to his worldview, any investor or consumer dumb enough not to have thoroughly researched his investments deserves whatever losses he may incur. The problem with that line of thinking is that even savvy investors get taken for a ride. Remember Bernie Madoff? Collateralized debt obligations? AIG and credit default swaps? If so-called “smart money” investors get scammed in a regulated market, imagine the field day Wall Street would have on the dumb money in a deregulated market.

From the libertarian praise heaped upon these regulators, and from their own statements, it appears that they are big fans of deregulation. These men are charged with creating and enforcing the financial rules of the road, but they are anti-rule. Or, to put it another way, they are financial foxes guarding the Wall Street henhouse.

Bank Runs Are Good?


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Bank runs are a good thing, according to George Selgin, the Director of the Cato Institute’s Center for Monetary and Financial Alternatives. Conventional wisdom holds otherwise — just ask anybody who lived during the Great Depression, or held an account at IndyMac Bank in 2008, or who is living in Greece now.

Selgin also thinks deposit insurance should be eliminated, forcing consumers to thoroughly research bank balance sheets — regardless of the financial savvy it would require for the average American to do so.

Cato is a Koch brothers-funded libertarian think tank that provides much of the intellectual ammunition for GOP deregulatory policy, and it often features like-minded regulators at its events. This summit featured Commodities Futures Trading Commissioner Chris Giancarlo and Securities Exchange Commissioner Michael Piwowar.

Watch the exchange with Selgin below and subscribe to The Undercurrent on YouTube for more independent, on-the-ground reporting…