In 2011, Republicans threatened to destroy the Nation’s credit rating unless their budgetary demands were met. 

President Barack Obama could have ended that threat via the Racketeer Influenced Corrupt Organizations (RICO) Act. Unfortunately for him and the Nation, he didn’t.

Originally, RICO was aimed at the Mafia and other organized crime syndicates.  But in United States v. Turkette, 452 U.S. 576 (1981), the Supreme Court held that RICO applied as well to legitimate enterprises being operated in a criminal manner.

After Turkette,  RICO could also be used against corporations, political protest groups, labor unions and loosely knit-groups of people.

Department of Justice

RICO opens with a series of definitions of “racketeering activity” which can be prosecuted by Justice Department attorneys. Among those crimes: Extortion. 

Extortion is defined as “a criminal offense which occurs when a person unlawfully obtains either money, property or services from a person(s), entity, or institution, through coercion.”

The RICO Act defines “a pattern of racketeering activity” as “at least two acts of racketeering activity, one of which occurred after the effective date of this chapter and the last of which occurred within ten years…after the commission of a prior act of racketeering activity.”

And if President Obama had believed that RICO was not sufficient to deal with Republicans’ extortion attempts, he could have relied on the USA Patriot Act of 2001, passed in the wake of 9/11.

In Section 802, the Act defines domestic terrorism. Among the behavior that is defined as criminal:

“Activities that…appear to be intended…to influence the policy of a government by intimidation or coercion [and]…occur primarily within the territorial jurisdiction of the United States.”

The remedies for punishing such criminal behavior were now legally in place.  President Obama needed only to direct the Justice Department to apply them.

• President Obama could have directed Attorney General Eric Holder to investigate whether actions by Republican Congressman—and their Tea Party cohorts—broke Federal anti-racketeering and/or anti-terrorism laws.
• Holder, in turn, could have ordered the FBI to conduct that investigation.
• If the FBI found sufficient evidence that these laws had been violated, Holder could have convened criminal grand juries to indict those violators.

Criminally investigating and possibly indicting members of Congress would not violate the separation-of-powers principle. Congressmen have in the past been investigated, indicted and convicted for various criminal offenses.

Such indictments and prosecutions—-and especially convictions—would have served notice on current and future members of Congress: The lives and fortunes of American citizens may not be held hostage to gain leverage in a political settlement.

In short: Obama could have replaced the law of fear with the rule of law.

And Obama could have stood up to Republican extortionists in another way: By urging his fellow Americans to rally to him in a moment of supreme national danger.

President John F. Kennedy did just that—successfully—during the most dangerous crisis of his administration.

Addressing the Nation on October 22, 1962, Kennedy shocked his fellow citizens by revealing that the Soviet Union had installed offensive nuclear missiles in Cuba.

John F. Kennedy

Kennedy outlined a series of steps he had taken to end the crisis—most notably, a blockade of Cuba. Then he sought to reassure and inspire his audience:

“The cost of freedom is always high, but Americans have always paid it. And one path we shall never choose, and that is the path of surrender or submission.”

President Obama could have sent that same message to the extortionists of the Republican Party—by explaining to the American people:

• Republicans have adopted the same my-way-or-else “negotiating” stance as Adolf Hitler.
• Like the Nazis, they are determined to gain absolute power—or destroy the Nation they claim to love.
• They raised the debt ceiling seven times during the eight-year Presidency of George W. Bush.
• But now that a Democrat holds the White House, raising the debt ceiling is unacceptable.
• Despite Republican lies, we cannot revitalize the economy by slashing taxes on the wealthy and on cash-hoarding corporations while cutting benefits for millions of average Americans.
• We will need both tax increases and sensible entitlement cuts to regain our economic strength.

And he could have ended his speech with a direct call for action by the American people:

“We stand on the edge of economic disaster. Therefore, I am asking each of you to stand up for America tonight—by demanding the recall of the entire membership of the Republican Party.

“This is the moment when each of us must decide—whether we will survive as a Republic, or allow ruthless political fanatics to destroy what has lasted and thrived for more than 200 years.”

To paraphrase Winston Churchill: President Obama had to choose between timidity and confrontation.

He chose timidity. 

Today, Republicans are once again threatening the Nation with economic destruction unless their extortionate demands are met.

President Joseph Biden now faces that same choice as President Obama: Timidity or confrontation.

If he chooses correctly, he will save the Nation from financial extinction. And he will send a message to future extortionists: The lives and fortunes of American citizens may not be held hostage to gain leverage in a political settlement.

In April, 2011, the United States government almost shut down over Republican demands about subsidized pap smears.

During a late-night White House meeting with President Barack Obama and key Congressional leaders, Republican House Speaker John Boehner made this threat:

His conference would not approve funding for the government if any money were allowed to flow to Planned Parenthood through Title X legislation.

Facing an April 8 deadline, negotiators worked day and night to strike a compromise—and finally reached one.

Three months later—on July 9—Republican extortionists again threatened the Nation with financial ruin and international disgrace unless their demands were met.

Symbol of the Mafia “Black Hand”

President Obama had offered to make historic cuts in the federal government and the social safety net—on which millions of Americans depend for their most basic needs.

But House Speaker John Boehner rejected that offer. He could not agree to the tax increases that Democrats wanted to impose on the wealthiest 1% as part of the bargain.

As the calendar moved ever closer to the fateful date of August 2, Republican leaders continued to insist: Any deal that includes taxes “can’t pass the House.”

One senior Republican said talks would go right up to—and maybe beyond—the brink of default.

“I think we’ll be here in August,” said Republican Representative Pete Sessions, of Texas. “We are not going to leave town until a proper deal gets done.”

John Boehner

President Obama had previously insisted on extending the debt ceiling through 2012. But in mid-July, he simply asked congressional leaders to review three options with their members:

1. The “Grand Bargain” choice—favored by Obama—would cut deficits by about $4 trillion, including spending cuts and new tax revenues.
2. A medium-range plan would aim to reduce the deficit by about $2 trillion.
3. The smallest option would cut between $1 trillion and $1.5 trillion, without increased tax revenue or any Medicare and Medicaid cuts.

And the Republican response?

Said Rep. Darrell Issa, chairman of the House Oversight and Government Reform Committee: “Quite frankly, [Republican] members of Congress are getting tired of what the president won’t do and what the president wants.”

Noted political analyst Chris Matthews summed up the sheer criminality of what happened within the House of Representatives.

Chris Matthews

Speaking on MSNBC’s “Hardball,” on July 28—five days before Congress reached its August 2 deadline to raise the debt-ceiling—Matthews noted:

“The first people to bow to the demands of those threatening to blow up the economy were the Republicans in the House, the leaders. The leaders did what the followers told them to do: meet the demands, hold up the country to get their way.

“Those followers didn’t win the Senate, or the Presidency, just the House.

“But by using the House they were able to hold up the entire United States government. They threatened to blow things up economically and it worked.

“They said they were willing to do that—just to get their way—not by persuasion, not by politics, not by democratic government, but by threatening the destruction of the country’s finances.

“Right. So what’s next? The power grid? Will they next time threaten to close down the country’s electricity and communications systems?”

With the United States teetering on the brink of national bankruptcy, President Obama faced three choices:

1. Prosecute Republican extortionists under the Racketeer Influenced Corrupt Organizations Act;
2. Seek to rally the American people against a criminal threat to the financial security of the Nation;
3. Cave in to Republican demands.

Unfortunately for Obama and the Nation, he chose Number Three.

A graduate of Columbia University and Harvard Law School, Obama was easily one of the most academically gifted Presidents in United States history.

But for all this, he failed—from the onset of his Presidency—to grasp and apply this fundamental lesson taught by Niccolo Machiavelli, the father of modern political science.

Niccolo Machiavelli

In his classic work on politics, The Prince, Machiavelli warns:

“From this arises the question whether it is better to be loved than feared, or feared more than loved. 

“The reply is, that one ought to be both feared and loved, but as it is difficult for the two to go together, it is much safer to be feared than loved…. 

“Men have less scruple in offending one who makes himself loved than one who makes himself feared. For love is held by a chain of obligations which, men being selfish, is broken whenever it serves their purpose.  But fear is maintained by a dread of punishment which never fails.”

Obama failed to heed this advice. And, predictably, his sworn enemies—which is what Republicans considered themselves to be—felt free to demonize and obstruct him at every turn. 

For the postwar Republican party, Adolf Hitler’s my-way-or-else “negotiating” methods would become standard operating procedure.

During the summer of 2011, Republicans refused to raise the debt ceiling unless Democrats agreed to massively cut social programs for the elderly, poor and disabled.

And while Republicans demanded that the disadvantaged tighten their belts, they rejected any raising of taxes on their foremost constituency—the wealthiest 1%.

To raise taxes on the wealthy, they insisted, would be a “jobs-killer.” It would “discourage” corporate CEOs from creating tens of thousands of jobs they supposedly wanted to create.

If Congress failed to raise the borrowing limit of the federal government by August 2, 2011, the date when the U.S. reached the limit of its borrowing abilities, America would begin defaulting on its loans. 

As Warren Buffett, CEO of Berkshire Hathaway, explained the looming economic catastrophe:

“If you don’t send out Social Security checks, I would hate to think about the credit meeting at S&P and Moody’s the next morning.

“If you’re not paying millions and millions and millions of people that range in age from 65 on up, money you promised them, you’re not a AAA,” said Buffett.

A triple-A credit rating is the highest possible rating that can be received.

Republicans knew their argument was a lie. And so did the editors of Time. The difference is, the editors of Time were willing to reveal the truth.

In its June 20, 2011  cover-story on “What U.S. Economic Recovery? Five Destructive Myths,” Rana Foroohar, the magazine’s assistant managing editor in charge of economics and business, delivered this warning:

Profit-seeking corporations can’t be relied on to ”make it all better.” 

American companies “are doing quite well,” but most American workers “are earning a lower hourly wage now than they did during the recession.”

Corporations, in short, are doing extremely well. But they don’t spend their profits on American workers.

“There may be $2 trillion sitting on the balance sheets of American corporations globally, but firms show no signs of wanting to spend it in order to hire workers at home.”

In short: Giving even greater tax breaks to mega-corporations—the standard Republican mantra—has not persuaded them to stop “outsourcing” jobs. Nor has it convinced them to start hiring Americans.

Many American companies prefer opening factories in Brazil, China or India to doing so in the United States—and thus creating jobs for American workers.

While embarrassingly overpaid CEOs squander corporate wealth on themselves, millions of Americans can’t afford medical care or must depend on charity to feed their families.

Yet there is also a disconnect between the truth of this situation and the willingness of Americans to face up to that truth.

The reason, writes Foroohar: 

Republicans have convinced most Americans they can revitalize the economy by slashing “taxes on the wealthy and on cash-hoarding corporations while cutting benefits for millions of Americans.”

And she concludes: To restore prosperity America needs both tax increases and cuts in entitlement programs.

According to Mein Kampf-—”My Struggle”—Hitler’s autobiography and political treatise:

1. Most people are ruled by sentiment, not reason.
2. This sentiment is simple and consistent. It is rooted in notions of love and hatred, right and wrong, truth and falsehood.
3. Propaganda isn’t based on objective truth but must present only that part of the truth that makes its own side look good.
4. People are not intelligent, and quickly forget.
5. Confine propaganda to a few bare essentials and express these in easily-remembered stereotyped images.
6. Persistently repeat these slogans until the very last individual has come to grasp the idea that has been put forward.

Following these principles, Republicans have proved hugely successful at persuading millions that truth is whatever their party claims it to be at any given moment.

“Fascism,” said author Ernest Hemingway, “is a lie told by bullies.” Thus, when Republicans couldn’t attain their goals by lying, they sought to do so by force—or at least the threat of it.

Republicans have repeatedly threatened to shut down the government unless their constantly escalating demands are met.

In November, 1995, Newt Gingrich, then Speaker of the House of Representatives, carried out his threat. Gingrich unwisely admitted that he did so because President Bill Clinton had put him in the back of Air Force One during a recent trip to Israel.

The shutdown proved a disaster for Republicans. Clinton was handily re-elected in 1996 and Gingrich suddenly resigned from Congress in 1998. 

Still, the Republicans continued their policy of my-way-or-else.

In April, 2011, the United States government almost shut down over Republican demands about subsidized pap smears.

During a late-night White House meeting with President Barack Obama and key Congressional leaders, Republican House Speaker John Boehner made this threat:

His conference would not approve funding for the government if any money were allowed to flow to Planned Parenthood through Title X legislation.

Facing an April 8 deadline, negotiators worked day and night to strike a compromise—and finally reached one. 

Three months later—on July 9—Republican extortionists again threatened the Nation with financial ruin and international disgrace unless their demands were met. 

Next up: Republicans: “Stop funding pap smears for women—or we’ll shut down the government.”