From: steve@psi.com (Steve Schoffstall)
Newsgroups: alt.politics.clinton
Subject: Re: "HANDLER-IN-CHIEF" JAMES BAKER'S RECORD:
Date: 13 Oct 92 19:05:38 GMT

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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.)
  >
  >                               - 30 -
  >
  >