From: bing@jazz.concert.net (Carter E. Bing)
Subject: James Baker
Organization: MCNC Center for Communications -- CONCERT Network
Date: Thu, 15 Oct 1992 14:42:25 GMT



In a previous article, tmg@nptn.org (Tom Grundner) says:

>
> FOR IMMEDIATE RELEASE                 
> October 12, 1992                                      
>
>               "HANDLER-IN-CHIEF" JAMES BAKER'S RECORD:
>              TRICKLE-DOWN, DUBIOUS DEALS, AND COVER-UPS
>
>      When George Bush announced mid-debate that James Baker would
> take over economic policy, it was the President's starkest admission
> yet of his failure.  George Bush has no plan.  He has no vision.
> Instead, he offers us his handler-in-chief as a new de facto
> President.  Thanks, but no thanks.
>
>      Now comes word that in his second term, Bush would fire the
> economic team from his first term.  His reelection slogan should be:
> "Vote for me, and I promise to fire my staff."
>
>      George Bush said when the election is over, he's going to get
> Jim Baker to do for domestic policy what he's done for foreign
> policy.  Actually, that makes sense.  Domestic policy has always been
> foreign to Bush.
>
>      Apparently, the Handler-in-Chief will be delivering a major
> policy address to outline his economic goals and plans.  The big
> question is: will James Baker offer George Bush a substantial policy
> role in his administration?
>
>      Despite his assiduous cultivation of his own image -- often at
> the expense of his boss -- James Baker has a decidedly mixed record
> in government.  Baker's past record makes him an ironic choice to try
> and save George Bush, since he has been involved in so many of the
> disastrous policies of the past twelve years.
>
>      Baker and "trickle-down" Reaganomics.
>
>      As Ronald Reagan's first Chief of Staff, he was the political
> mastermind behind efforts to cut taxes for the wealthy and services
> for everyone else.  On Baker's watch as Chief-of-Staff: the
> Gramm-Latta budget and tax cut legislation . . . the deregulation of
> the S&Ls . . . Republican efforts to cut Social Security.  (Indeed,
> as Treasury Secretary, Baker ordered the sale of long-term
> investments held by the Social Security trust fund to tide the
> government over when it was about to run out of money.
> [1985 CQ Alm.])
>
> *    Baker is a trickle-down convert.  In 1988, he said: "What some
>      of us thought might be best termed 'voodoo economics' really
>      turned out to be 'can do' economics."
>      [Speech to the Jack Kemp Tribute Dinner to the Reagan Revolution
>      and Supply-Side Economics, 12/01/88]
>
> *    At the same dinner, he said: "I am proud to have spent the last
>      3 1/2 years . . . defending and advancing supply side economic
>      principles." [ibid.]
>
>      Baker and the S&Ls
>
>      As Treasury Secretary from 1985-1988, Baker presided over the
> most disastrous financial debacle in recent history: the $500 billion
> S&L scandal.
>
> *    Baker ignored warnings from senior regulators about the looming
>      disaster. On June 5, 1985, FDIC Chair FDIC chair William Isaac
>      wrote Baker a letter marked "HIGHLY CONFIDENTIAL" and warning:
>
>        When we got together a few months ago in your office, I
>        told you that one of my principle concerns about the
>        financial system was the condition of the thrift industry
>        and the ability of the [S&L depositor insurance fund] to
>        cope with the problems.  About that time I requested our
>        staff to prepare an analysis of the thrift industry . . .
>        the study concludes that the problems of the thrift
>        industry are  of such proportions that they will soon
>        overwhelm the ability of the FSLIC to deal with them
>        unless something major is done to shore up the FSLIC.
>
> *    Baker testified that no more taxpayer funds would be needed.
>      "We think the regulators are doing a good job," he told the
>      House Banking Committee on June 15, 1988.  Baker added: "We
>      think the problem is being dealt with."  Shortly before the
>      election, he told the National Press Club that Bush opposed a
>      taxpayer bialout.  Shortly after the election, regulators
>      suddenly announced that a huge taxpayer rescue would, in fact,
>      be needed.
>
>      Baker and Iraqgate.
>
>      Last night, Bush said, "I'm going to say to Jim Baker when this
> campaign is over, 'you do in domestic affairs what you've done in
> foreign affairs.'"  Presumably, this is supposed to be reassuring.
>
>      But Baker played a central role in what is emerging as a major
> scandal and cover-up: the secret policy of aid to Saddam Hussein.
> For as recent revelations indicate, James Baker stretched logic and
> common sense in his efforts to appease Saddam.  Baker and other
> senior Bush administration officials vigorously supported and armed
> Saddam Hussein's regime in the years before he invaded Kuwait.  Baker
> repeatedly intervened when other government officials balked at
> supplying Saddam with credits (which were used to buy arms) and other
> aid.  And Judge Marvin Shoob ruled last week in the BNL trial, "It is
> apparent that decisions were made at the top levels of the United
> States Justice Department, State Department, Agriculture Department
> and within the intelligence community to shape this case and that
> information may have been withheld from local prosecutors seeking to
> investigate the case or used to steer the prosecution."
>
>      An "economic czar" Jim Baker would spend a good deal of his time
> dealing with the legal fallout from this exploding scandal.
>
>      Baker has confused public service with self service.
>
>      Baker has had a string of conflicts of interest, where he used
> his public office in a way that benefitted his private business
> interests.  He took care of George Bush's political business, and
> occasionally the nation's business, but he always made sure to take
> care of himself.
>
> *    He loves to fly, and it shows.  Baker used a military jet to
>      make 11 strictly personal trips over a two year period, at a
>      cost to taxpayers of $371,599.  He said he was "shocked" by this
>      figure, and vowed never to do it again; shortly thereafter he
>      took a well-publicized commercial flight. (AP, 4/3/92)
>
> *    Bank stock and third world debt.  Financial disclosure records
>      indicate that Baker owned at least $250,000 of stock in Chemical
>      Bank (but the number has been reported as several million
>      dollars).  During his time as Treasury Secretary, he pushed an
>      ill-fated "Baker Plan" to solve the problem of third world
>      debt.  The plan was notable for protecting one interest -- big
>      U.S. banks, such as Chemical Bank -- while choking South
>      America's economies.  This blatant conflict-of-interest was not
>      publicly revealed until      Baker left the Treasury Department.
>      (New Republic, 3/6/89)
>
> *    Baker and Bush's barge company: Hollywood Marine.  Baker, Bush
>      and Robert Mossbacher are partners in a company called Hollywood
>      Marine, which owns oil barges.  In the early 1980s, Hollywood
>      Marine's fleet was comprised of "single hull" barges; a pending
>      environmental rule would have required a second skin to protect
>      against oil spills.  The Task Force on Regulatory Relief,
>      chaired by Bush, killed the double hull rule, after vigorous
>      lobbying by Hollywood Marine (among others).  (WSJ, 7/20/92.)
>
>                               - 30 -
>
>
>


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       Funkadelic                       bing@concert.net