Organization: University of Illinois at Chicago
Date: Tuesday, 13 Oct 1992 23:13:17 CDT
From: <U56503@uicvm.uic.edu>
Newsgroups: bit.listserv.politics
Subject: ==> Baker: Bush "Handler-In-Chief" Record

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Information in the public interest which does not imply that it
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further information.
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 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.)
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