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Covert government propaganda is exactly what Sunstein craves.  His mentality is indistinguishable from the Bush mindset that led to these abuses, and he hardly tries to claim otherwise.  Indeed, he favorably cites both the covert Lincoln Park program as well as Paul Bremer’s closing of Iraqi newspapers which published stories the U.S. Government disliked, and justifies them as arguably necessary to combat “false conspiracy theories” in Iraq — the same goal Sunstein has for the U.S.Sunstein’s response to these criticisms is easy to find in what he writes, and is as telling as the proposal itself.  He acknowledges that some “conspiracy theories” previously dismissed as insane and fringe have turned out to be entirely true (his examples:  the CIA really did secretly administer LSD in “mind control” experiments; the DOD really did plot the commission of terrorist acts inside the U.S. with the intent to blame Castro; the Nixon White House really did bug the DNC headquarters).  Given that history, how could it possibly be justified for the U.S. Government to institute covert programs designed to undermine anti-government “conspiracy theories,” discredit government critics, and increase faith and trust in government pronouncements?  Because, says Sunstein, such powers are warranted only when wielded by truly well-intentioned government officials who want to spread The Truth and Do Good — i.e., when used by people like Cass Sunstein and Barack Obama

Throughout, we assume a well-motivated government that aims to eliminate conspiracy theories, or draw their poison, if and only if social welfare is improved by doing so. But it’s precisely because the Government is so often not “well-motivated” that such powers are so dangerous.  Advocating them on the ground that “we will use them well” is every authoritarian’s claim.  More than anything else, this is the toxic mentality that consumes our political culture:  when our side does X, X is Good, because we’re Good and are working for Good outcomes.  That was what led hordes of Bush followers to endorse the same large-government surveillance programs they long claimed to oppose, and what leads so many Obama supporters now to justify actions that they spent the last eight years opposing.

Consider the recent revelation that the Obama administration has been making very large, undisclosed payments to MIT Professor Jonathan Gruber to provide consultation on the President’s health care plan.  With this lucrative arrangement in place, Gruber spent the entire year offering public justifications for Obama’s health care plan, typically without disclosing these payments, and far worse, was repeatedly held out by the White House — falsely — as an “independent” or “objective” authority.  Obama allies in the media constantly cited Gruber’s analysis to support their defenses of the President’s plan, and the White House, in turn, then cited those media reports as proof that their plan would succeed.  This created an infinite “feedback loop” in favor of Obama’s health care plan which — unbeknownst to the public — was all being generated by someone who was receiving hundreds of thousands of dollars in secret from the administration (read this to see exactly how it worked).In other words, this arrangement was quite similar to the Armstrong Williams and Maggie Gallagher scandals which Democrats, in virtual lockstep, condemned.  Paul Krugman, for instance, in 2005 angrily lambasted right-wing pundits and policy analysts who received secret, undisclosed payments, and said they lack “intellectual integrity”; he specifically cited the Armstrong Williams case.  Yet the very same Paul Krugman last week attacked Marcy Wheeler for helping to uncover the Gruber payments by accusing her of being “just like the right-wingers with their endless supply of fake scandals.”  What is one key difference?  Unlike Williams and Gallagher, Jonathan Gruber is a Good, Well-Intentioned Person with Good Views — he favors health care — and so massive, undisclosed payments from the same administration he’s defending are dismissed as a “fake scandal.”

Sunstein himself — as part of his 2008 paper — explicitly advocates that the Government should pay what he calls “credible independent experts” to advocate on the Government’s behalf, a policy he says would be more effective because people don’t trust the Government itself and would only listen to people they believe are “independent.”  In so arguing, Sunstein cites the Armstrong Williams scandal not as something that is wrong in itself, but as a potential risk of this tactic (i.e., that it might leak out), and thus suggests that “government can supply these independent experts with information and perhaps prod them into action from behind the scenes,” but warns that “too close a connection will be self-defeating if it is exposed.”  In other words, Sunstein wants the Government to replicate the Armstrong Williams arrangement as a means of more credibly disseminating propaganda — i.e., pretending that someone is an “independent” expert when they’re actually being “prodded” and even paid “behind the scenes” by the Government — but he wants to be more careful about how the arrangement is described (don’t make the control explicit) so that embarrassment can be avoided if it ends up being exposed.  

In this 2008 paper, then, Sunstein advocated, in essence, exactly what the Obama administration has been doing all year with Gruber:  covertly paying people who can be falsely held up as “independent” analysts in order to more credibly promote the Government line.  Most Democrats agreed this was a deceitful and dangerous act when Bush did it, but with Obama and some of his supporters, undisclosed arrangements of this sort seem to be different.  Why?  Because, as Sunstein puts it:  we have “a well-motivated government” doing this so that “social welfare is improved.”  Thus, just like state secrets, indefinite detention, military commissions and covert, unauthorized wars, what was once deemed so pernicious during the Bush years — coordinated government/media propaganda — is instantaneously transformed into something Good.* * * * *What is most odious and revealing about Sunstein’s worldview is his condescending, self-loving belief that “false conspiracy theories” are largely the province of fringe, ignorant Internet masses and the Muslim world.  That, he claims, is where these conspiracy theories thrive most vibrantly, and he focuses on various 9/11 theories — both domestically and in Muslim countries — as his prime example.

It’s certainly true that one can easily find irrational conspiracy theories in those venues, but some of the most destructive “false conspiracy theories” have emanated from the very entity Sunstein wants to endow with covert propaganda power:  namely, the U.S. Government itself, along with its elite media defenders. Moreover, “crazy conspiracy theorist” has long been the favorite epithet of those same parties to discredit people trying to expose elite wrongdoing and corruption. Who is it who relentlessly spread “false conspiracy theories” of Saddam-engineered anthrax attacks and Iraq-created mushroom clouds and a Ba’athist/Al-Qaeda alliance — the most destructive conspiracy theories of the last generation?  And who is it who demonized as “conspiracy-mongers” people who warned that the U.S. Government was illegally spying on its citizens, systematically torturing people, attempting to establish permanent bases in the Middle East, or engineering massive bailout plans to transfer extreme wealth to the industries which own the Government?  The most chronic and dangerous purveyors of “conspiracy theory” games are the very people Sunstein thinks should be empowered to control our political debates through deceit and government resources:  namely, the Government itself and the Enlightened Elite like him.

It is this history of government deceit and wrongdoing that renders Sunstein’s desire to use covert propaganda to “undermine” anti-government speech so repugnant.  The reason conspiracy theories resonate so much is precisely that people have learned — rationally — to distrust government actions and statements.  Sunstein’s proposed covert propaganda scheme is a perfect illustration of why that is.  In other words, people don’t trust the Government and “conspiracy theories” are so pervasive precisely because government is typically filled with people like Cass Sunstein, who think that systematic deceit and government-sponsored manipulation are justified by their own Goodness and Superior Wisdom.

The point is that there are severe dangers to the Government covertly using its resources to “infiltrate” discussions and to shape political debates using undisclosed and manipulative means.  It’s called “covert propaganda” and it should be opposed regardless of who is in control of it or what its policy aims are. UPDATE II:  Ironically, this is the same administration that recently announced a new regulation dictating that “bloggers who review products must disclose any connection with advertisers, including, in most cases, the receipt of free products and whether or not they were paid in any way by advertisers, as occurs frequently.”  Without such disclosure, the administration reasoned, the public may not be aware of important hidden incentives (h/t pasquin).  Yet the same administration pays an MIT analyst hundreds of thousands of dollars to advocate their most controversial proposed program while they hold him out as “objective,” and selects as their Chief Regulator someone who wants government agents to covertly mold political discussions “anonymously or even with false identities.”

UPDATE III:  Just to get a sense for what an extremist Cass Sunstein is (which itself is ironic, given that his paper calls for ”cognitive infiltration of extremist groups,” as the Abstract puts it), marvel at this paragraph:

So Sunstein isn’t calling right now for proposals (1) and (2) — having Government ”ban conspiracy theorizing” or “impose some kind of tax on those who” do it — but he says “each will have a place under imaginable conditions.”  I’d love to know the “conditions” under which the government-enforced banning of conspiracy theories or the imposition of taxes on those who advocate them will “have a place.”  That would require, at a bare minumum, a repeal of the First Amendment.  Anyone who believes this should, for that reason alone, be barred from any meaningful government position.

It’s a wonder young folks are lining up around the block to pay those 50 to 150 percent increases in their health insurance premiums.

Under Obamacare, insurance companies can no longer turn away people with preexisting conditions.

 The embarrassing degeneration of ObamaCare into a wealth transfer program that feeds off healthy people is a perfect inversion of the insurance concept.

Instead, we’ve got another corrupt, inefficient redistribution system powered by the liquefied assets of chumps.

 Betsy McCaughey, former lieutenant governor of New York, describes the billion dollars flowing into the California health insurance exchange as tax money laundered into Democratic party-building funds:

Amazingly, California legislators passed a law that the exchange could keep secret for a year who received the contracts and indefinitely how much they were paid. California’s open-records laws would otherwise prohibit such secrecy.

Terminate all presumed powers of attorney

(for borrowing against one’s own credit).

I.R.S. (former Puerto Rico Bureau of Taxation).

End street assaults

for failing to exhibit a State-issued confession

End admiralty prosecutions

“commercial crimes” against the corporate State

corporations posing as the state

which confess the signer to be a legal fiction subject of the United States Federal Corporation (“U.S. person”

thereby transferring control to incorporated County registrars and tax assessors.

whereby incorporated “courts” presume the “right” to trespass on families and kidnap children.

Restore the People’s money and wealth from the banking institutions,

end all non-consensual and unlawful taxation

sacred rights of labor and privacy.

to enforce the Peoples’ divine rights of birth.

Reabsorb all de facto actors into lawful de jure capacity.

district court of the United States

Restore the de jure judicial institutions

without provoking alarm, controversy or armed conflict.

Quietly mirror the strategies of 1933

behind the scenes, without public proclamations or provocative actions

Now let’s take a look at Russian fundamentals. Russia’s government debt totals only 13.4% of its GDP. Its budget deficit in relation to GDP is only 0.5%.  If we assume a US GDP of $16.8 trillion (the figure for 2013), the US budget deficit totals 4% of GDP, versus 0.5% for Russia. The Fed is essentially a private corporation owned by regional US private banks, although it passes itself off as a state institution. US publicly held debt is equal to a whopping 74% of GDP in fiscal year 2014. Russia’s is only 13.4%. The declaration of economic war by the US and EU on Russia – via the run on the ruble and the oil derivative attack – was essentially a derivatives racket. Derivatives – in theory – may be multiplied to infinity. Derivative operators attacked both the ruble and oil prices in order to destroy the Russian economy. The problem is, the Russian economy is more soundly financed than America's.

Considering that this swift move was conceived as a checkmate, Moscow’s defensive strategy was not that bad. On the key energy front, the problem remains the West’s – not Russia’s. If the EU does not buy what Gazprom has to offer, it will collapse. Moscow’s key mistake was to allow Russia's domestic industry to be financed by external, dollar-denominated debt. Talk about a monster debt trap  which can be easily manipulated by the West. The first step for Moscow should be to closely supervise its banks. Russian companies should borrow domestically and move to sell their assets abroad. Moscow should also consider implementing a system of currency controls so the basic interest rate can be brought down quickly. And don’t forget that Russia can always deploy a moratorium on debt and interest, affecting over $600 billion. That would shake the entire world's banking system to the core. Talk about an undisguised “message” forcing the US/EU economic warfare to dissolve.

Russia does not need to import any raw materials. Russia can easily reverse-engineer virtually any imported technology if it needs to. Most of all, Russia can generate — from the sale of raw materials – enough credit in US dollars or euros. Russia's sale of its energy wealth — or sophisticated military gear — may decline. However, they will bring in the same amount of rubles — as the ruble has also declined.  Replacing imports with domestic Russian manufacturing makes total sense. There will be an inevitable “adjustment” phase – but that won’t take long. German car manufacturers, for instance, can no longer sell their cars in Russia due to the ruble's decline. This means they will have to relocate their factories to Russia. If they don’t, Asia – from South Korea to China — will blow them out of the market.

The EU's declaration of economic war against Russia makes no sense whatsoever. Russia controls, directly or indirectly, most of the oil and natural gas between Russia and China: roughly 25% of the world's supply. The Middle East is bound to remain a mess. Africa is unstable. The EU is doing everything it can to cut itself off from its most stable supply of hydrocarbons, prompting Moscow to redirect energy to China and the rest of Asia. What a gift for Beijing – as it minimizes the alarm about the US Navy playing with "containment" across the high seas.  Still, an unspoken axiom in Beijing is that the Chinese remain extremely worried about an Empire of Chaos losing more and more control, and dictating the stormy terms of the relationship between the EU and Russia. The bottom line is that Beijing would never allow itself to be in a position where the US could interfere with China's energy imports – as was the case with Japan in July 1941 when the US declared war by imposing an oil embargo, cutting off 92% of Japanese oil imports. Everyone knows a key plank of China’s spectacular surge in industrial power was the requirement for manufacturers to produce in China. If Russia did the same, its economy would be growing at a rate of over 5% per year in no time. It could grow even more if bank credit was tied only to productive investment.

Now imagine Russia and China jointly investing in a new gold, oil and natural resource-backed monetary union as a crucial alternative to the failed debt "democracy" model pushed by the Masters of the Universe on Wall Street, the Western central bank cartel, and neoliberal politicians. They would be showing the Global South that financing prosperity and improved standards of living by saddling future generations with debt was never meant to work in the first place. Until then, a storm will be threatening our very lives – today and tomorrow. The Masters of the Universe/Washington combo won’t give up their strategy to make Russia a pariah state cut off from trade, the transfer of funds, banking and Western credit markets and thus prone to regime change. Further on down the road, if all goes according to plan, their target will be (who else) China. And Beijing knows it. Meanwhile, expect a few bombshells to shake the EU to its foundations. Time may be running out – but for the EU, not Russia. Still, the overall trend won’t be altered; the Empire of Chaos is slowly but surely being squeezed out of Eurasia.

Are we there yet? Pretty close, I’d say. The only way to preserve democracy is by keeping one hand firmly clasped around the windpipe of every rich bastard in the country. If you can’t keep your tycoons in check, you’d might as well throw in the towel and accept a life of indentured servitude now, because that’s where you’re headed anyway. Here’s a short rundown of the changes that took place in the ’70s by economist Lawrence Mishel:

Yup, under Bush, the 1% captured a disproportionate share of the income gains from the Bush boom of 2002-2007. They got 65 cents of every dollar created in that boom, up 20 cents from when Clinton was President. Under Obama, the 1% got 93 cents of every dollar created in that boom. That’s not only more than under Bush, up 28 cents. In the transition from Bush to Obama, inequality got worse, faster, than under the transition from Clinton to Bush. Obama accelerated the growth of inequality.” (Growth of Income Inequality Is Worse Under Obama than Bush, Matt Stoller, Naked Capitalism) 93 cents of every buck has gone to the 1 percenters under Obama. And you wonder why Wall Street loves this guy? It’s because he’s bent over backwards to make them richer, that’s why.

But as bad as Obama may be, the problem didn’t start with him. It goes back decades as the first chart indicates.

Christie’s tenure as New Jersey governor has been particularly emblematic of the extent of Wall Street’s reach into the public sphere. Among other things, he installed a private equity investor as the state’s pension overseer and publicly lied about the manner in which pension fund investment decisions are made. Ironically enough, he’s defended these practices in his own state while criticizing Democrats for utilizing them through his position as chair of the Republican Governor’s Association.

. . . AB1388, signed by then-Gov. Arnold Schwarzenegger in 2009, [gave] banks the green light to lure California school boards into issuing bonds to raise quick money to build schools. Unlike conventional bonds that have to be paid off on a regular basis, the bonds approved in AB1388 relaxed regulatory safeguards and allowed them to be paid back 25 to 40 years in the future. The problem is that from the time the bonds are issued until payment is due, interest accrues and compounds at exorbitant rates, requiring a balloon payment in the millions of dollars. . . . Wall Street exploited the school boards’ lack of business acumen and proposed the bonds as blank checks written against taxpayers’ pocketbooks. One school administrator described a Wall Street meeting to discuss the system as like “swimming with the big sharks.” Wall Street has preyed on these school boards because of the millions of dollars in commissions. Banks, financial advisers and credit rating firms have billed California public entities almost $400 million since 2007. [State Treasurer] Lockyer described this as “part of the ‘new’ Wall Street,” which “has done this kind of thing on the private investor side for years, then the housing market and now its public entities.”

In 2013, California finally passed a law limiting debt service on CABs to four times principal, and limiting their maturity to a maximum of 25 years. But the bill is not retroactive. In several decades, the 400 cities that have been drawn into these shark-infested waters could be facing municipal bankruptcy – for capital “improvements” that will by then be obsolete and need to be replaced.

The state-owned Bank of North Dakota (BND) was making 1% loans to school districts even in December 2014, when global oil prices had dropped by half. That month, the BND granted a $10 million construction loan to McKenzie County Public School No. 1, at an interest rate of 1% payable over 20 years. Over the life of the loan, that works out to $.20 in simple interest or $.22 in compound interest for every $1 borrowed. Compare that to the $15 owed for every dollar borrowed by Anaheim’s Savanna School District or the $10 owed for every dollar borrowed by Santa Ana Unified.

For all his incapacity to formulate thoughts above the language skills of a third grader, Trump has been piling up astonishing proposals that resonate wildly, way beyond the “basket of deplorables” spectrum.

The bottom line is that to recover US manufacturing jobs – as Trump has been forcefully promising – he will have to stare down the whole Wall Street finance oligarchy.So no wonder these oligarchs – responsible for shipping all those US manufacturing jobs to Asia and lavishly profiting from bailouts to the 'Too Big To Fail' racket – hate him with all their golden-plated guts.

Trump’s attention span is notoriously minimalist. If his advisers managed to imprint – tweet? - a few one-liners on his brain, he would be able to explain to US public opinion how the US-China game is really played, something that all relevant parties in both nations know by heart.And the – crucial - missing link in the whole game is Wall Street.This is how it works.

He is against Cold War 2.0 and the pivot to Asia, when he says “wouldn’t it be nice to get along with Russia and China for a change?”He no less than pre-empted WWIII when he said he would be against a US nuclear first-strike.He totally abhors global “free trade” – from NAFTA to TPP and TTIP - because it has “hollowed out the lives of American workers”, as US corporations (under Wall Street’s “incentive”) delocalize and then import back into the US tariff-free.

Trump was even open to nationalizing Wall Street banks after the 2008 financial crisis.

So we’re faced with the ultimate surrealist spectacle of a billionaire denouncing corporate globalization, which has been responsible for stripping the US lower middle classes of countless, decent blue-collar jobs and social benefits – not to mention turning them into hostages of rotting public infrastructure. And all that with absolutely no one among the US establishment condemning the most astonishing wealth transfer to the 0.0001% in history.If in the next two presidential debates Trump points to the crucial missing link in the whole plot – Wall Street - he might as well lock on as a surefire winner.

ANZ last month said it would scrap sales-based bonuses for financial planners while paying compensation in about 9,000 cases where it had provided inappropriate advice. And the banking industry has agreed to binding changes around conduct, including tightened background checks for employees and improved transparency around fees.