Tag Archives: corruption

The President As Mob Boss

Before I retired, I spent 21 years teaching Law and Public Policy to students who wanted to know about those topics, and I can confirm that even individuals with an interest in government often had a hard time following the intricacies of the policy process. When we come to the population at large–people who (as Jon Stewart once memorably explained) “have shit to do”–it isn’t surprising that much of what this blog addresses might just as well be written in ancient Aramaic. Policy nerds like yours truly talk about Trump violating the Emoluments Clause, and the average American wonders what that is.

Widespread ignorance of the laws–of America’s so-called “guardrails”–has allowed Trump to violate all manner of constitutional and statutory rules without generating an appropriate amount of concern. But sometimes, visual evidence of the arrogance and self-dealing breaks through. That’s what we are seeing with the destruction of the East Wing of the People’s house and its planned replacement with a gaudy and inappropriate ballroom, funded by people who have business with the government, and whose “contributions” are rather clearly bribes.

As Jennifer Rubin recently wrote in the Contrarian,

If you were watching any of the voter-on-the-street interviews Tuesday, you might have been surprised to hear how many Americans are deeply disturbed, furious even, about Donald Trump’s bulldozing of the White House to make way for a garish $330M donor-paid ballroom. It may not be the most egregious offense of the Trump regime (which has kidnapped people off the streets, sent them to foreign hell holes, and cut off SNAP benefits, among other outrages). It is not even the worst case of corruption, given the estimated $5B or so in wealth Trump and his family have hauled in from (among other sources) foreign buyers of crypto. But the ballroom is the most visible, easily explained, and visually disgusting evidence of Trump’s destruction of our democracy and the public’s ownership of our institutions.

Rubin cited a report from Public Citizen that–as she wrote–“captures the stomach-turning effort to transform the White House into a monument to private greed and public corruption.” Among other things, the report found that 16 out of 24 donors hold government contracts. Overall, those corporate donors benefited from nearly $43 billion in contracts just last year and $279 billion over the past five years.

More significantly, most of those donors—14 out of 24—are either currently facing federal enforcement actions “and/or have had federal enforcement actions suspended by the Trump administration,” including major antitrust actions, labor rights cases and SEC matters. The report also noted that these companies and wealthy individual donors have invested “gargantuan sums in combined lobbying and political contributions, totaling more than $960 million during the last election cycle and $1.6 billion over the last five years.”

In other words, those generous donations to Trump’s bad taste are rather obviously bribes.

You can almost hear the mob boss crooning into the ears of the supplicants: “you want this little enforcement problem to go away? Want another cushy contract? Just pony up for my ballroom and government will look out for you.” Trump is frequently described as “transactional,” a nice word for a mob boss approach that begins with “what’s in it for me?”

Citizens may not have noticed other corruption. Take the Trump family’s crypto scams, for example. Through their World Liberty Financial, they launched Trump-branded “tokens”–coins with no intrinsic value, purchases of which are efforts to gain or retain the good graces of our would-be King (aka bribes). Unlike those and similar transactions, the visual–and visceral–impact of East Wing destruction is hard to ignore. It’s an entirely appropriate metaphor for Trump’s mob boss regime.

As Rubin argues:

Certainly, any 2028 Democratic candidate worth his or her salt would need to advance a mammoth anti-corruption plan to tackle not only this outrage (“Tear it down, rebuild democracy!” would make a lively campaign chant) but to severely regulate crypto, recover unconstitutionally acquired foreign emoluments, restore prosecution of foreign bribery statutes and other white collar crimes, and undergo an exhaustive investigation and prosecution of any bribery that took place in the Trump regime.

As with other autocratic atrocities, the corruption issue is too important to leave solely to the politicians. Shareholders of these companies could demand a full accounting and pursue shareholder suits if appropriate. Consumers can organize public campaigns to expose and embarrass these companies or conduct targeted boycotts (e.g., cancel Amazon Prime, do not patronize Hard Rock Casinos and restaurants). And further No Kings events should keep corruption front and center.

Sometimes, a picture really is worth a thousand words.

Comments

Law Versus Power

There’s a tendency to confuse the rule of law with obedience to the rules of a regime.

Within that confusion lies one of the multiple, dangerous threats posed by our current administration–a threat that became manifestly clear when Trump pardoned the January 6th insurrectionists. Autocrats can devise rules; the rule of law, however, is defined as a durable system characterized by four universal principles: accountability, just law, open government, and accessible and impartial justice.

Those elements are entirely foreign to MAGA and Trump. (Let’s face it–Trump wouldn’t even be able to define those terms…)

The chaos of the Trump administration, and the breadth of its attacks on democratic governance, have operated to distract public attention from its ongoing assault on the rule of law, and its persistent substitution of rules benefitting plutocrats and autocrats for laws benefiting society.

A recent issue of the American Prospect addressed that under-appreciated assault.

A functioning economy depends on a basic principle: cheaters shouldn’t win. But Donald Trump has tossed aside that principle, and that has real consequences. When the rules disappear, the worst actors thrive and everyone else pays the price.

In our new print issue, we examine how the collapse of financial enforcement and consumer protection is opening the floodgates to a golden age of scams. Under Trump, the referees have left the field. Civil penalties go unenforced. White-collar fraudsters are rewarded with pardons. Entire arms of the government designed to prevent theft, abuse, and discrimination are being dismantled.

It’s an intentional choice to let exploitation run wild. If there’s a way to game the system, someone’s doing it—and now they’re doing it with the government’s blessing.

The issue documented a variety of scams that have gained new security against government enforcement. One article reported on the multiple ways in which the gutting of the CFPB–the Consumer Financial Protection Bureau–has facilitated a wide variety of rackets and frauds. Another article delved into the failures of the Department of Education under Trump to protect student loan recipients from predatory lenders.

An article titled “Three Coin Monte” described what the magazine calls “the greatest and most brazen tale of corruption in history”– Trump’s crypto project. That article outlined “how Trump is using his ‘shitcoin’ to monetize the presidency and create new avenues for influence peddling.”

There’s also an explanation of a scam involving merchant cash advances. These are transactions in which tycoons sell what are effectively payday loans to small businesses and ruin their livelihoods. (We are told that one of those “tycoons” was on Trump’s pardon list in 2020; he’s back in jail, for now.)

These investigative articles are just a few examples of what happens when government fails in what has always been considered a foundational task: to prevent some citizens from taking advantage of others, to prevent the strong (or unscrupulous) from harming the weak and/or naive.

Donald Trump’s government has corrupted the very concept of law. The evidence is overwhelming: the gutting of the Department of Justice, the indiscriminate labeling of immigrants as “criminals” as justification for masked ICE agents’ thuggish behaviors, the appalling arrests of elected lawmakers on transparently false premises, orders from the administration to the EPA directing the agency not to enforce environmental rules against fossil fuel companies, the Trump family’s failure to even try to mask its monetization of the Presidency…the list goes on.

When the rule of law is replaced with rules favoring the predatory, when people in positions of authority sneer at the very notion of ethics and ethical behavior, when elected members of Congress fail to exercise their constitutional oversight responsibilities, ordinary citizens lose respect for the very concept of law. Corrupt regimes encourage lawbreaking by people who wouldn’t otherwise be scofflaws. Cynicism explodes. The trust on which societies rely evaporates.

The central goal of Project 2025 was to replace the rule of law with rules allowing selected people to exercise unrestrained and arbitrary power–power to give their sycophants and fellow-travelers free reign to plunder, but–more fundamentally– to facilitate the remaking of America into the Lily-White “Christian” nation of Project 2025’s fantasies.

In Henry VI, Shakespeare wrote “First you kill all the lawyers.” The authors of Project 2025 understood why that’s wrong. First you kill the rule of law.

Comments

The Brazen Corruption…

One thing about life under an autocracy: it spawns a particular kind of black humor. Among the various telling memes and cartoons making the rounds, one especially has captured (at least in my mind) the essence of our current situation. The cartoon shows Nixon and Trump; Nixon is famously saying “I am not a crook.” Trump is saying “I am a crook. So what?”

I think that sums up how far we’ve traveled–and in what direction.

I’m willing to believe that some of our former Presidents have been less than honest. But those who failed to meet social expectations of honor and virtue did work to hide their bad behaviors–to deny dishonesty or venality, to appear to be the sort of leaders Americans had the right to expect. Trump doesn’t bother.

Most of us who find this administration horrifying have focused upon the damage being done to the federal government and  Constitution, and on the out-and-proud racism and misogyny motivating so much of that damage. Only recently has the media turned to what has been the elephant in the room: the immense corruption that Trump makes no effort to hide.

In the Contrarian, Norm Eisen recently addressed the enormity of that corruption.

As a former White House Ethics Czar, I have been stunned by the sheer number of ethics issues afflicting Donald Trump’s first 100 Days. But Trump and his cronies’ ethics violations have been overshadowed by his other frequent and flagrant transgressions. For example, in his first term, there was heavy mainstream media attention from day one of his selling hotel rooms to foreign governments and the like. This time around, not so much–although they have been a steady theme here on The Contrarian and for the Democracy Movement.

This should be a national scandal, which is why I co-authored this major report on Trump’s crypto corruption. It is the single most profound Presidential conflict of the modern era: a POTUS who has almost 40% of his net worth in his crypto ventures, at the same time as he is regulating the digital currency industry–and, for good measure, has substantial foreign government cash pouring into those ventures!

Eisen is not alone in highlighting the unprecedented corruption. Senator Mark Kelly–among others–recently blasted what he called Trump’s “corruption in broad daylight.”

Kelly is one of the sponsors of what is called the “End Crypto Corruption Act,” which would prohibit the president, vice president, senior executive branch officials, members of Congress and their immediate families from issuing, endorsing or sponsoring crypto assets, such as meme coins and stablecoins.

As Kelly put it in a news release, “Trump is cashing in on his presidency and making millions from his own crypto coins — this is corruption in broad daylight. I’m supporting this bill to make it illegal for the President and other government officials to make a profit from crypto assets. It’s time to put a stop to this.”

A number of other lawmakers and media outlets have reported on what can only be called Trump’s open invitation to bribe him. The most egregious example: he has invited the 220 largest holders of his personal $TRUMP “memecoin” to a dinner at which the top 25 will get “exclusive access” to the president.

As the official in charge of crypto policy for the Securities and Exchange Commission during the Biden administration put it, “This is really incredible. They are making the pay-to-play deal explicit.”  The executive director of Citizens for Responsibility and Ethics was even more blunt.

“I’m not sure we ever saw anything as blatant as this meme coin dinner. This is over the top — even for Trump — because while the practice of putting money in his pocket and subsequently gaining access to the presidency is far from new, it is more shameless than it has ever been.”

The entire Trump crime family is participating in the grift. Several media outlets have reported that an Abu Dhabi state-backed investment firm is making a $2 billion investment in the Trump family’s crypto venture, World Liberty Financial– the latest example of a foreign entity making a major investment in a Trump family business. Anyone who thinks that such an “investment” doesn’t give that foreign entity leverage with the administration is smoking something strong.

As the extent of the Trump corruption becomes more widely known, the question will be whether it matters to the MAGA cultists. After all, they are getting exactly what they voted for: an administration promoting White Christian nationalism.

Thus far, there’s no evidence that they care about the honesty or competence of those they’ve elected, or about the America the Founders bequeathed us.

Comments

Patrimonialism

What in the world is “patrimonialism”?

In a recent Atlantic essay, Jonathan Rauch argues that Trump’s approach to governance isn’t classic authoritarianism, autocracy, oligarchy, or monarchy. Instead, Trump is installing what scholars call patrimonialism. (I’m evidently not much of a scholar, because that’s a term I had never previously encountered. Live and learn…)

Rauch began by describing what we’ve all seen:

Since taking office, he has reduced his administration’s effectiveness by appointing to essential agencies people who lack the skills and temperaments to do their jobs. His mass firings have emptied the civil service of many of its most capable employees. He has defied laws that he could just as easily have followed (for instance, refusing to notify Congress 30 days before firing inspectors general). He has disregarded the plain language of statutes, court rulings, and the Constitution, setting up confrontations with the courts that he is likely to lose. Few of his orders have gone through a policy-development process that helps ensure they won’t fail or backfire—thus ensuring that many will.

In foreign affairs, he has antagonized Denmark, Canada, and Panama; renamed the Gulf of Mexico the “Gulf of America”; and unveiled a Gaz-a-Lago plan. For good measure, he named himself chair of the Kennedy Center, as if he didn’t have enough to do.

Rauch cites to scholarship that locates the origin of the term in the writings of Max Weber–he of the Protestant ethic.

Weber explored the issue of legitimacy. What elements of leadership support an individual’s claim to rightful rule? According to Weber, there are two avenues to such legitimacy. One is “bureaucratic proceduralism”– a system in which following the rules and norms of institutions bestows legitimacy,. That, of course, is the system Americans have taken for granted. It’s why Presidents, federal officials, and military inductees swear their oath to the Constitution, not to a person.

The other source of legitimacy is more ancient, more common, and more intuitive—“the default form of rule in the premodern world,” Hanson and Kopstein write. “The state was little more than the extended ‘household’ of the ruler; it did not exist as a separate entity.” Weber called this system “patrimonialism” because rulers claimed to be the symbolic father of the people—the state’s personification and protector. Exactly that idea was implied in Trump’s own chilling declaration: “He who saves his Country does not violate any Law.”

In his day, Weber thought that patrimonialism was on its way to history’s scrap heap. Its personalized style of rule was too inexpert and capricious to manage the complex economies and military machines that, after Bismarck, became the hallmarks of modern statehood. Unfortunately, he was wrong.

As Rauch explains, patrimonialism isn’t a systematic approach to governing; instead, it is “a style of governing,” replacing  rule-based, formal lines of authority with highly personalized ones based on loyalty to an individual. It’s a “system” of rewarding the leader’s friends and punishing his enemies. (Think about how “governance” works in tribes, street gangs, and criminal organizations.)

In government, it’s running the state “as if it were the leader’s personal property or family business.”

The difference between patrimonialism and autocracy is the former’s disdain for bureaucracy, because bureaucratic rules and processes might obstruct the “dear leader’s” desired actions.

People with expertise, experience, and distinguished résumés are likewise suspect because they bring independent standing and authority. So patrimonialism stocks the government with nonentities and hacks, or, when possible, it bypasses bureaucratic procedures altogether. When security officials at USAID tried to protect classified information from Elon Musk’s uncleared DOGE team, they were simply put on leave. Patrimonial governance’s aversion to formalism makes it capricious and even whimsical—such as when the leader announces, out of nowhere, the renaming of international bodies of water or the U.S. occupation of Gaza.

Rauch points out that Trump is patrimonialism “perfect organism.” He’s unable to distinguish between public and private, legal and illegal, national and personal. As John Bolton, Trump’s first-term national security advisor, said “He can’t tell the difference between his own personal interest and the national interest, if he even understands what the national interest is.”

Patrimonialism has two fatal flaws: incompetence and corruption, and Rauch spends much of the essay documenting the evidence of both. It is well worth your time to click through and read in its entirety, especially since most observers–including this one–have been fixated on the incompetence and insanity, and only vaguely aware of the copious corruption. As Rauch reminds us, however, corruption is the real Achilles’ heel, because it’s understandable– not an abstraction like “democracy” or “Constitution” or “rule of law.”

The resistance needs to focus on it.

Comments

Follow The Grift

Not that it should surprise anyone, but the corruption of our Grifter-in-Chief has become too flagrant and apparent to hide. As Trump has decimated the Justice department and fired the various officials whose job it has been to ensure government ethics, his administration is coming to look a lot like that of his idol Putin.

Want examples?

Here’s a recent report from CNN Business:

A businessman who pumped $75 million into the Trump family-backed crypto token finds himself in a fortunate position this week as federal securities regulators are hitting pause on their civil fraud case against him.

On Wednesday, lawyers for the Securities and Exchange Commission and Justin Sun, a 34-year-old Chinese crypto entrepreneur, asked a federal judge to put the agency’s case on hold, citing the interests of both sides and “the public’s interest.”

The pause is a 180 for the SEC, America’s top financial regulator, which two years ago charged Sun and his companies — Tron, BitTorrent and Rainberry — with selling unregistered securities and fraudulently manipulating the price of digital token Tronix. Sun and his companies sought to have the case dismissed.

This particular grift revolves around the issuance of so-called “meme” coins–crypto tokens. Buyers with sufficient means are invited to bribe Trump by purchasing large amounts of them. To the best of my knowledge–and I’ve looked– there is no accounting, no agency or government individual keeping track of those purchases. 

The media, however, has begun to investigate; Rolling Stone recently ran an article titled “HERE’S EVERYTHING WRONG WITH TRUMP’S CRYPTO MEME COINS” with a subhead reading “The Trump family’s new crypto meme coins are an ethical disaster and ripe for corruption — and they could cost his supporters dearly.”

While campaigning, Trump promised to make the United States the “crypto capital of the planet” after crypto bros poured over $130 million to elect a crypto-captive administration and Congress. Trump has tapped pro-crypto acolytes for regulatory posts across the federal government and released pro-crypto executive orders to establish a White House crypto working group and prioritize crypto across government. To top it off, the huckster-in-chief launched his $TRUMP meme coin: one part a vehicle for personal profit, one part a playground taunt over federal ethics rules, and one part a crypto-fascist pledge of allegiance. It’s a move that could not only rip off Trump supporters but also significantly corrode the democratic process.

The article goes on to explain just what a “meme coin” is: 

a crypto token based on little more than an online image, slogan, or passing social trend. The crypto industry argues it is a sort of digital collectible. The fine print on the $TRUMP coin website notes that the coins “are not intended to be, or to be the subject of, an investment opportunity, investment contract, or security of any type.”

These coins have no practical use, unlike other crypto assets, which do have such uses (mostly laundering drug money or tax evasion). Most end up being worthless; a number are sold by “investors” hyping their value just long enough to allow insiders to cash out. Interestingly, the $TRUMP fine print requires its buyers to give up their rights to sue.

As the article notes, the Trump venture “presents a mind-boggling number of potential conflicts of interest” and appears designed to prey upon rather than protect naive Americans.  Or–as emerging evidence like the dismissal of the SEC suit suggests–to provide a perfect mechanism for bribery.

Lawmakers (okay, Democratic lawmakers) are beginning to catch on; one Democratic Senator has promised to introduce a measure that would make this particular grift illegal. As ABC recently reported,

Since launching a little over a month ago, the $TRUMP coin has tanked in value after early investors dumped the cryptocurrency. Members of Congress have noticed as hundreds of thousands of investors have taken hard hits and billions in value have quickly vanished.

California freshman Democrat Rep. Sam Liccardo told ABC News on Thursday he will introduce legislation to prohibit the country’s top officials and their families — from Congress to the White House — from capitalizing on personal meme coins.

I don’t think ABC is quite correct in saying that the coin has no value. That is undoubtedly true for the MAGA cult suckers who purchase it, but it clearly has considerable value for “businessmen” who want government to drop lawsuits and/or investigations, or who seek fat contracts or other preferential treatment. (Reports are that a number of lawsuits are being dropped.)

Trump has learned a lot from his idol Putin about how to keep the oligarchs loyal…..

Comments