Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Chinese Tech Stocks CCP Paranoia and Best AI Tech Stocks ETF - 26th Oct 21
Food Prices & Farm Inputs Getting Hard to Stomach - 26th Oct 21
Has Zillow’s Collapse Signaled A Warning For The Capital Markets? - 26th Oct 21
Dave Antrobus Welcomes Caribou to Award-Winning Group Inc & Co - 26th Oct 21
Stock Market New Intermediate uptrend - 26th Oct 21
Investing in Crypto Currencies With Both Eyes WIDE OPEN! - 25th Oct 21
Is Bitcoin a Better Inflation Hedge Than Gold? - 25th Oct 21
S&P 500 Stirs the Gold Pot - 25th Oct 21
Stock Market Against Bond Market Odds - 25th Oct 21
Inflation Consequences for the Stock Market, FED Balance Sheet - 24th Oct 21
To Be or Not to Be: How the Evergrande Crisis Can Affect Gold Price - 24th Oct 21
During a Market Mania, "no prudent professional is perceived to add value" - 24th Oct 21
Stock Market S&P500 Rallies Above $4400 – May Attempt To Advance To $4750~$4800 - 24th Oct 21
Inflation and the Crazy Crypto Markets - 23rd Oct 21
Easy PC Upgrades with Motherboard Combos - Overclockers UK Unboxing - MB, Memory and Ryzen 5600x CPU - 23rd Oct 21
Gold Mining Stocks Q3 2021 - 23rd Oct 21
Gold calmly continues cobbling its Handle, Miners lay in wait - 23rd Oct 21
US Economy Has Been in an Economic Depression Since 2008 - 22nd Oct 21
Extreme Ratios Point to Gold and Silver Price Readjustments - 22nd Oct 21
Bitcoin $100K or Ethereum $10K—which happens first? - 22nd Oct 21
This Isn’t Sci-Fi: How AI Is About To Disrupt This $11 Trillion Industry - 22nd Oct 21
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

How Super PACs Are Choosing Your Next President

ElectionOracle / US Presidential Election 2012 Jan 17, 2012 - 07:53 AM GMT

By: Money_Morning

ElectionOracle

Best Financial Markets Analysis ArticleDavid Zeiler writes: It's no secret that the rich use their money to influence the ballot, but in this year's election cycle they have created a new, more insidious way to do it.

They are called super PACs and they are choosing your next President.


Super PACs (political action committees) have drawn attention in recent months because of their outsized influence on the Iowa caucuses and the New Hampshire primary.

Case in point: One super PAC that supports former Massachusetts governor Mitt Romney called Restore Our Future spent more than $3 million in Iowa attacking former Speaker of the House Newt Gingrich with great effect.

The month-long blitz of negative ads played a major role in knocking Gingrich from first to fourth in the polls. As late as Nov. 30, Gingrich lead in Iowa with 31% to Romney's 17% according to a New York Times/CBS poll.

However, when the caucuses were held on Jan. 3, Gingrich limped to the finish line with just 13% of the vote while Romney took 25%.

But the Romney campaign is not the only one benefiting from super PACs. Every major presidential candidate has a super PAC working on their behalf

These organizations can raise and spend unlimited amounts of money, with the only restriction being that the super PAC cannot "coordinate" with the candidate.

In a super PAC, individual donations of $500,000 to a $1 million or more are not uncommon.

"The sky's the limit,"Columbia Law Schoolcampaign-finance expert Richard Briffault told USA Today. "We are back to the pre-Watergate era of unlimited amounts of money."

Although the law does require disclosure of the donors and how much they give, the use of tax-exempt entities has created loopholes that donors can hide behind.

After a brief period when the Internet made it possible for less well-heeled candidates to mount successful grassroots fundraising campaigns by tapping large numbers of small donors, the super PACs have dramatically increased the ability of the wealthy to sway elections.

"It's just proven to be a vehicle for getting around contribution limits," Michael Malbin, a scholar at the Campaign Finance Institute, told The Washington Post. "It's made for people who've already maxed out."

Created by a 2010 Supreme Court decision, Citizens United vs. Federal Election Commission, super PACs provide what may be the most devious way yet around 40-year-old campaign finance laws designed to prevent unlimited fundraising.

In fact, the country is worse off because of the ill-conceived precaution that the candidates cannot coordinate with the super PACs.

Attacks Without Accountability
For one thing, the new rule does away with candidate accountability.

So no matter how vicious or untrue a super PAC's attacks on an opponent, candidates can legitimately claim "it's not my fault."

Romney did precisely that in the middle of a debate when Gingrich confronted him about Restore Our Future's barrage of attacks.

"As you know, under the law, I can't direct their ads. If there's anything in there that's wrong I hope they take it out," Romney said.

In fact, the rules governing super PACS are so laughable that comedian Stephen Colbert created one as a joke.

But in fact, former staffers and aides operate these super PACs on behalf of the candidates, making obvious coordination with the candidate unnecessary.

Getting caught is not even a concern. Given how easily the rule can be circumvented, it's nearly impossible to police.

And the folks who run the super PACs certainly aren't shy at all about what they're up to.

"We're Newt's super PAC. We take out marching orders through the media for Newt Gingrich," Rick Tyler, a former Gingrich spokesman and advisor to Gingrich super PAC Winning Our Future told Politico. "I do what Newt tells me through the media. And it's all within the confines of the law."

Super PACs Aren't Going Away
The disconnect in name only also means that candidates can publicly criticize the idea of super PACs even while reaping their benefits.

"Campaign finance law has made a mockery of our political campaign season," Romney told MSNBC morning host Joe Scarborough in December. "We really ought to let campaigns raise the money they need and just get rid of these super PACs."

Don't hold your breath.

The number of registered PACs has exploded from 80 in 2010, when they collectively spent $90 million, to more than 250 today.

And even though the Republican groups are getting most of the attention now, expect to hear more from Democrat-oriented super PACs shortly. There's already at least one super PAC backing U.S. President Barack Obama called Priorities USA Action.

"I have no faith that Democrats want campaign finance reform any more than Republicans. They talk of it, but they don't want it," Christopher Shays, a GOP Senate candidate in Connecticut who as a congressman helped pass the 2002 campaign finance law known as McCain-Feingold, told Politico.

Source http://moneymorning.com/2012/01/17/how-super-pacs-are-choosing-your-next-president/

Money Morning/The Money Map Report

©2012 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive



© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in