Trump pulls nomination of former US attorney in charge of Roger Stone case

President Trump pulled the nomination of a former US attorney who oversaw the prosecution of Roger Stone for a top position in the Treasury Department, according to a report.

The withdrawal of Jessie Liu’s nomination was revealed hours after four federal prosecutors withdrew from the Stone case — when the Justice Department overruled them and said it would seek a more lenient sentence for the longtime Trump ally, Fox News reported late Tuesday.

The prosecutors had been seeking a sentence of up to nine years in prison.

Liu, a former US attorney for Washington, DC, also supervised the case of one-time White House national security adviser Michael Flynn, who was found guilty of lying to the FBI about his contacts with Russian officials while working for the Trump campaign.

She was scheduled to begin her confirmation hearing in the Senate on Thursday.

If confirmed, Liu, 46, would have served as undersecretary for terrorism and financial crimes.

Trump previously had considered nominating her as associate attorney general, the No. 3 slot in the Justice Department, but she withdrew her name last March.

[New York Post]

Monica Crowley, Fox promoter of bigoted conspiracy theories, named to top Treasury post

Monica Crowley, President Donald Trump’s pick for the top communications position at the Treasury Department, is a longtime Fox News contributor who has pilloried journalists as “dishonest, hostile, biased, rude fake news” and has endorsed a series of racist conspiracy theories, including about President Barack Obama’s “real father.”

Trump intends to nominate Crowley to be assistant secretary of the Treasury for public affairs, the White House announced Monday night. The position does not require Senate confirmation. 

Crowley spent decades in right-wing media — joining Fox in 1998 — after serving as an aide to former President Richard Nixon in the early 1990s. At Fox, she was a C-list voice the network’s hosts regularly booked to provide the casual bigotries, hypocrises, talking points, and lies that fuel the Fox propaganda machine. 

Her appointment is an additional sign of the unprecedented merger between Fox and the Trump White House. She is at least the 17th former Fox employee to join the administration and replaces Tony Sayegh, himself a former Fox contributor. 

Crowley was previously tapped for a top communications job in Trump’s National Security Council shortly after his election. But she declined to take the position after CNN and Politico respectively reported that she had plagiarized portions of her 2012 book and her doctoral dissertation.  

A few months later, she told Fox star Sean Hannity that she had been the victim of “a despicable, straight-up political hit job” and falsely claimed the charges had been “debunked.”

Such attacks on journalism are as much a part of the job description for Trump administration communications staffers as they are for right-wing commentators. Crowley has been an eager combatant in this fight, regularly decrying the “corrupt,” “leftist” media while praising Trump for putting the “dishonest, hostile, biased, rude fake news in its place.”

Crowley’s tenure as a conservative commentator is most notable for her adoption of conspiracy theories about Obama’s heritage during his presidency.

She argued that it was “very legitimate” to question Obama’s birth certificate, argued that such issues “have traction” because of the then-president’s “un-American” policies, and speculated that Obama might not be a “natural-born citizen” eligible for the presidency. 

Crowley also promoted the myths that Obama “is not Black African, he is Arab African” and that he might be a Muslim.

Crowley’s promotion of bigoted conspiracy theories about Obama culminated with her enthusiastic promotionof Dreams from My Real Father, a 2012 documentary by conservative filmmaker Joel Gilbert that alleged that Obama is actually the biological son of the communist writer Frank Marshall Davis. 

Gilbert’s film takes one actual fact — Obama wrote in his memoir that he had been friendly with Davis as a teenager in Hawaii, having been introduced by his grandfather — and uses fake sources and wild speculation to extrapolate that Davis is his “real father.” But mostly, the film’s thesis is based on Gilbert’s opinion that Obama looks more like Davis than he does the elder Barack Obama, and it features several juxtaposed images in which Gilbert circles their supposedly similar features.

Crowley praised the film as “just dynamite” during an interview with Gilbert on her radio show, claiming that he had amassed “some very powerful evidence” and urging listeners to watch the documentary and “judge the story for themselves.”

These are the sorts of people you end up hiring when you’re drawing on the Fox green room for your staff.

[Media Matters]

Trump Overrules Own Experts on Sanctions, in Favor to North Korea

President Trump undercut his own Treasury Department on Friday with a sudden announcement that he had rolled back newly imposed North Korea sanctions, appearing to overrule national security experts as a favor to Kim Jong-un, the North Korean leader.

The move, announced on Twitter, was a remarkable display of dissension within the Trump administration. It created confusion at the highest levels of the federal government, just as the president’s aides were seeking to pressure North Korea into returning to negotiations over dismantling its nuclear weapons program.

“It was announced today by the U.S. Treasury that additional large scale Sanctions would be added to those already existing Sanctions on North Korea,” Mr. Trump tweeted. “I have today ordered the withdrawal of those additional Sanctions!”

The Treasury Department announced new sanctions on Friday against Iran and Venezuela, but not North Korea.

However, economic penalties were imposed on Thursday on two Chinese shipping companies suspected of helping North Korea evade international sanctions. Those penalties, announced with news releases and a White House briefing, were the first imposed against North Korea since late last year and came less than a month after a summit meeting between Mr. Trump and Mr. Kim collapsed in Hanoi, Vietnam, without a deal.

It was initially believed that Mr. Trump had confused the day that the North Korea sanctions were announced, and officials said they were caught off guard by the president’s tweet. Asked for clarification, Sarah Huckabee Sanders, the White House press secretary, declined to give specifics.

“President Trump likes Chairman Kim, and he doesn’t think these sanctions will be necessary,” she said.

Hours later, two officials familiar with Mr. Trump’s thinking said the president was actually referring to additional North Korea sanctions that are under consideration but not yet formally issued.

That statement sought to soften the blow that Mr. Trump’s tweet had dealt to his most loyal aides. Steven Mnuchin, the Treasury secretary, personally signed off on the sanctions that were issued on Thursday and hailed the decision in an accompanying statement.

“The United States and our like-minded partners remain committed to achieving the final, fully verified denuclearization of North Korea,” Mr. Mnuchin said in the statement. He described the sanctions as part of an international campaign against North Korea that “is crucial to a successful outcome.”

Sanctions are one of America’s most powerful tools for pressuring rogue nations. Mr. Mnuchin has taken great pride in bolstering Treasury’s sanctions capacity and often says that he spends half of his time working on sanctions matters.

Tony Sayegh, a Treasury Department spokesman, referred questions about Friday’s sanctions confusion to the White House.

John R. Bolton, the president’s national security adviser, had also hailed the earlier action against North Korea in a tweet on Thursday: “Everyone should take notice and review their own activities to ensure they are not involved in North Korea’s sanctions evasion.”

Mr. Trump has been eager to strike a deal for North Korea to surrender its nuclear weapons arsenal and, in turn, hand him a signature foreign policy achievement that has eluded his predecessors. Hawks in the administration, such as Mr. Bolton, have been wary of trusting Mr. Kim despite Mr. Trump’s professed strong personal connection to the North Korean leader.

Last month, Mr. Trump was criticized for defending Mr. Kim over the death of Otto F. Warmbier, an American college student who died in 2017 after being imprisoned in North Korea. Mr. Trump said he believed Mr. Kim’s claim that he was not aware of Mr. Warmbier’s medical condition.

But in recent weeks there have been increasing signs that the thawing relations between the two countries could again turn frosty.

This month, a vice foreign minister of North Korea, Choe Son-hui, accused Secretary of State Mike Pompeo and Mr. Bolton of creating an “atmosphere of hostility and mistrust” despite the chemistry between Mr. Trump and Mr. Kim.

In another sign of hardening on Friday, North Korea withdrew its stafffrom the joint liaison office it has operated with South Korea since September. The office was viewed as a potential first step toward the Koreas establishing diplomatic missions in each other’s capitals. But North Korea has expressed frustration with how South Korea has been handling its role as a mediator with the United States.

The talks between Mr. Trump and Mr. Kim broke down because North Korea wanted the United States to roll back some of its most economically painful sanctions without the North immediately dismantling its nuclear program.

As the linchpin of the global financial system, the United States relies on sanctions as one of its most powerful tools for international diplomacy. Officials at the Treasury and State Departments, including career staff members and political appointees, spend months carefully drafting sanctions based on intensive intelligence gathering and legal research.

The North Korea sanctions were no different, and the White House held a formal briefing on Thursday afternoon to explain the rationale behind the actions.

During the briefing, senior administration officials pushed back on the idea that the sanctions sought to increase pressure on North Korea. Instead, they said, the new measures were meant to maintain the strength of existing sanctions.

But one of the senior administration officials strongly rebutted any suggestion that the administration would ease some sanctions as confidence building, or in return for smaller steps by North Korea.

“It would be a mistake to interpret the policy as being one of a step by step approach, where we release some sanctions in return for piecemeal steps toward denuclearization” said the administration official, who spoke to reporters on the condition of anonymity. “That is not a winning formula and it is not the president’s strategy.”

While it is not unusual for the White House to have comment and even final approval of major sanctions, both Republican and Democratic lawmakers have expressed doubts about Mr. Trump’s ability to execute sanctions policy responsibly.

In 2017, Congress passed legislation imposing sanctions on Russia and limiting the president’s authority to lift them. Under pressure from his own party, Mr. Trump reluctantly signed the bill.

The reversal on the North Korea sanctions drew swift condemnation on Friday from Democrats, who accused the president of being reckless with national security.

“Career experts at the Treasury Department undertake a painstaking process before imposing sanctions,” said Senator Ron Wyden of Oregon, the top Democrat on the Finance Committee. “For Donald Trump to overturn their decision via tweet because he has an inexplicable fondness for one of the world’s most brutal dictators is appalling.”

He added, “Without a well-conceived diplomatic strategy, Trump is simply undermining our national security by making clear that the United States is not a trusted foreign policy partner.”

Some Republicans also pushed back against the president, with Senator Cory Gardner of Colorado saying that North Korea sanctions should be imposed. “Strategic Patience failed,” he tweeted. “Don’t repeat it.”

Mr. Trump’s decision stunned current and former Treasury Department officials, some of whom wondered if the move was planned in advance as a gesture to Mr. Kim. Others feared that America’s vaunted sanctions regime had been compromised.

“For an administration that continues to surprise, this is another first — the president of the United States undercutting his own sanctions agency for imposing sanctions on Chinese actors supporting North Korea,” said John E. Smith, the former director of the Treasury Department’s Office of Foreign Assets Control, who left the department last year. “It’s a win for North Korea and China and a loss for U.S. credibility.”

Sarah Bloom Raskin, who was deputy Treasury secretary under President Barack Obama, said the sudden backtracking on a decision that would normally be made with comment from intelligence agencies and the National Security Council was perplexing.

“Reversing sanctions decisions within hours of making the announcement that you would impose them in the first place is a head-spinner,” she said. “This reversal signals the injection of some peripheral consideration or factor that only the president seems to know about and that may have nothing to do with national security.”

The Trump administration did issue some new sanctions on Friday. The Treasury Department announced sanctions against Iran, targeting a research and development unit that it believes could be used to restart the country’s nuclear weapons program. It also imposed sanctions on Bandes, Venezuela’s national development bank, and its subsidiaries, as part of its effort to topple the government of President Nicolás Maduro.

[The New York Times]

Treasury proposes postal changes after Trump attacks on Amazon

President Donald Trump’s task force scrutinizing U.S. Postal Service operations is proposing an overhaul of the financially distressed agency, including changes to how it prices packages shipped by retailers like Amazon, a frequent target of the president’s attacks.

In a report released on Tuesday, the Treasury-led task force says the Postal Service should price packages “with profitability in mind” and impose higher rates on general e-commerce goods and other non-essential items sent through the mail.

Trump commissioned the report earlier this year after months of attacking Amazon for, in his view, ripping off USPS and treating the agency like its “Delivery Boy.” Amazon CEO Jeff Bezos privately owns The Washington Post, and Trump, who slams the Post’s coverage as unfair, often conflates the newspaper with the e-commerce giant, even calling it the “Amazon Washington Post.”

The report’s recommendations are broad and sweeping. They call for stronger oversight by the Postal Service Board of Governors — which sat empty for much of Trump’s presidency. They also encourage the agency to consider other revenue streams, such as renting out unused real estate to businesses, charging outside shippers for access to people’s mail boxes and issuing hunting and fishing licenses.

But the ideas for package rates are likely to draw the most scrutiny, given the president’s attacks on Amazon. The task force says the Postal Service should distinguish between essential items, such as medication or tax notices, and non-essential items, such as consumer products — and mark up the latter to generate more income.

The administration on Tuesday denied that it’s targeting Amazon, saying the report’s recommendations would hit the coffers of all retailers with a large volume of online sales.

“None of our findings or recommendations are linked to any one customer or competitor of the Postal Service,” said a senior administration official. “We based our analysis on the needs of the entire economy and all its businesses.”

But Trump’s frequent rants about Amazon hover over the findings.

“I am right about Amazon costing the United States Post Office massive amounts of money for being their Delivery Boy,” Trump tweeted in April shortly before the White House announced the task force. “Amazon should pay these costs (plus) and not have them bourne by the American Taxpayer. Many billions of dollars. P.O. leaders don’t have a clue (or do they?)!”

The president told The Daily Caller last month that Amazon is “getting the bargain of the century,” adding, “I think that’s why I’ve asked for a review.”

The task force, led by Treasury Secretary Steven Mnuchin, spent weeks meeting with companies and trade associations in affected industries like retail and package delivery. Officials from the Office of Management and Budget and other federal agencies have also been involved. A report was initially delivered to the White House in August, though its public release was delayed until later in the year.

The senior administration official said the Postal Service and Postal Regulatory Commission can enact some of the changes, including increasing package prices, without intervention from Congress, but said other proposed changes would require lawmakers to act.

For more than a decade, the Postal Service has logged billion-dollar loses, resulting in a total cumulative deficit of nearly $63 billion as of September. But those losses are not driven by Amazon or other big shippers of packages. Instead, much of it can be attributed to the decline of letter mail in the internet era and the mandatory payments that Congress has ordered the Postal Service to make into a retiree benefits fund. The task force recommends restructuring that obligation, but not doing away with it altogether.

The report does not call for privatizing the Postal Service, despite the Trump administration saying in June that it wanted to do so as part of a government reorganization.

Amazon did not immediately comment, but an industry coalition that represents the e-commerce giant warned the report could cause widespread economic damage.

“If it were to be adopted in its entirety I think we would be approaching a worst-case scenario from a consumer and business perspective,” said John McHugh, a congressman-turned-lobbyist who leads the so-called Package Coalition, saying Congress should be involved in changing longstanding Postal Service regulations.

Amazon, like other bulk users of the Postal Service, negotiates a special shipping rate that is not publicly disclosed. Though Amazon would pay below the standard rate, by law, those negotiated arrangements must cover the cost of shipping the packages — meaning the post office cannot lose money on them as Trump claims. Each agreement is evaluated and endorsed by the Postal Regulatory Commission and approved by the Postal Service Board of Governors.

Package delivery has been a rare bright spot on the Postal Service’s earnings statement. Mail carriers are delivering more packages than ever before — as the number of standard letters steadily declines — bringing in $21.5 billion in revenue in the most recent fiscal year.

Amazon has been developing other delivery options in anticipation that the Postal Service cannot accommodate its rapid growth. It runs a service in which contract drivers drop orders at customers’ doors and recently announced it would lease trucks to entrepreneurs to start delivery services. The company has also experimented with aerial drones and, according to media reports, self-driving vehicles, though those are still years away from adoption because of technological and regulatory hurdles.

The investments could help Amazon lessen the sting of a rate hike over the long term or gradually move away from the Postal Service altogether if shipping expenses become too prohibitive. Industry advocates have warned that fewer packages would only mean more pain for the agency’s bottom line.

Trump’s most direct impact on the Postal Service could be appointees to the Board of Governors. The body plays a key role approving so-called negotiated service agreements, giving it a hand in how much Amazon and others must pay for postal services. The board could, in theory, send Postal Service negotiators back to the table if such deals are not judged to be in the agency’s best interest.

The board sat entirely vacant for the first 18 months of Trump’s presidency. He’s so far nominated people for three of the nine board seats, two of whom were approved by Senate-wide vote in late August.

[Politico]

Steve Mnuchin busted for tax favor to brothel owner who gave hefty contributions to Republicans

Following large campaign contributions from a brothel owner to Republicans, the Treasury Department “quietly reversed itself” to provide huge financial benefits, The Washington Post reported Friday.

Lance Gilman, the proprietor of the infamous Mustang Ranch brothel in Storey County, Nevada had worked “behind the scenes” for the county to be listed as an “opportunity zone” — a tax advantage for distressed areas.

For Storey County to qualify, Gov. Brian Sandoval (R-NV) had to withdraw the nomination for the town of Dayton, in neighboring Lyon County. This resulted in Gov. Sandoval withdrawing a nomination for a county with a median household income of $49,007 and instead nominating a county with a medium income of $65,508.

Even another brothel owner is mad about the special treatment Gilman received for Storey County.

Dennis Hof owns four brothels in Lyon County, including the Moonlight Bunny Ranch. He wrote an autobiography called The Art of the Pimp and stars on the HBO series “Cathouse.”

Hof, who is also a Republican candidate for state assembly, blasted the decision.

“Its unconscionable that in this day and age these kinds of things can happen,” Hof said.

“Anything we’ve got we should keep. If they gave Lance [Gilman] something, what did we get for it?” Hof asked. “We don’t just give things away for nothing.”

Gilman, The Post noted, is a “major GOP donor” who made a $5,000 contribution to Sen. Dean Heller (R-NV) while appealing for the rule change.

The Treasury Department, run by Secretary Steve Mnuchin, denied special treatment.

“The State of Nevada raised an issue relating to data supporting opportunity zone nominations,” a Treasury Department spokesman said. “In response to Nevada’s feedback, the [Internal Revenue Service] has clarified its procedures and all future nominations.”

The state of Vermont asked if they could use similar metrics, but was denied.

[Raw Story]

Treasury removes report contradicting Mnuchin on tax cuts

The Treasury Department has taken down a 2012 economic analysis that contradicts what Secretary Mnuchin has said about the effects of corporate tax cuts, the WSJ reports. What happened:

  • Mnuchin said workers benefit the most from corporate income tax cuts.
  • The 2012 analysis from the Office of Tax Analysis revealed that workers pay 18% corporate taxes, whereas owners of capital pay 82%, so cutting them impacts owners more.

A Treasury spokeswoman told the WSJ the paper was “dated” and “does not represent” current thinking at Treasury.

[Axios]