Indeed, why bring in Karl Rove? It seems that liberals and leftists can't discuss evil without hinting at a sinister Republican connection. Democrats say that a vote for Nader is a vote for Bush, some Naderites say that a vote for Kerry is a vote for Bush (or "Bushism"), etc. Presumably, a vote for Bush is a vote for Bush. So, that means any vote for any candidate is a vote for Bush! :-0
That said, the connection between James E. McGreevey and Israel that leftists might take note of is less the Golan Cipel affair than his misuse of New Jersey public employees' pension funds while advocating for privatization of their management -- a two-pronged attack on workers:
The New Jersey governor's love of Israel went far beyond an affair with one Israeli hunk:
"This was the first time ever that a state governor would actively campaign to reverse divestment and to leverage Zionist and rightwing frenzy to announce investing public funds in Israeli bonds. New Jersey Governor, Jim McGreevy, did just that, by announcing to the Zionist rally of many thousands that he was the first governor in New Jersey to invest Public Employees Pension Funds in Israeli bonds" ("Report of the Third North American Conference of the Palestine Solidarity Movement Rutgers University -- New Brunswick, New Jersey, October 10-12, 2003")
Hardly a wise investment, even from a purely capitalistic point of view, setting aside the Israeli occupation: "[B]ased on the findings of a visit by the IMF to Israel in December 2003. . . , [t]he IMF estimates the accumulated GDP loss from the security situation at 6-8% of GDP" ("IMF Sees 2.5% Growth for Israel in 2004; The International Monetary Fund Estimates the Accumulated Loss from the Security Situation at 6-8% of GDP," Globes [online] - Israel's Business Arena, June 06, 2004).
Even while McGreevey was exploiting the New Jersey Public Employees Pension Funds for a political purpose, he was pushing for privatization of pension-fund management at the same time:
* The McGreevey administration's plan to allow private investment firms to manage New Jersey's multibillion-dollar employee pension funds is beginning to emerge as a sensitive issue in several pivotal legislative elections this fall.
New Jersey is one of just two states that allow public employees to manage a major pension portfolio, and after the downturn in the stock market three years ago reduced the value of the retirement fund by almost a third, the state treasurer began lobbying to hire outside investment managers and diversify the fund's holdings.
But the leaders of some state workers' unions say the plan would cost the state millions of dollars to cover the outside fund managers' fees, and warn that investing too heavily in high-risk assets like hedge funds could endanger workers' pensions. With legislative elections just two months away, some Republican candidates are describing the plan as a pay-to-play scheme that would allow Mr. McGreevey and his fellow Democrats to use the lure of lucrative investment contracts to rake in campaign contributions from investment firms.
Today, just hours after a handful of state workers picketed outside the treasurer's office at the State House, Assemblyman Reed Gusciora, a Democrat from Princeton, joined union leaders in blasting the plan.
"I'm surprised that the administration has not learned the lesson from the boondoggle privatization schemes of the Whitman administration, which were more interested in political donations than taxpayer savings," Mr. Gusciora said.
New Jersey's pension funds are now valued at about $60 billion, down from $85 billion in August 2000.
Although the stock market plunge caused heavy losses for most institutional investors, the state treasurer, John E. McCormac, said New Jersey's pension system, which holds only low-risk securities, had performed worse than similar funds in other states.
Despite opposition from some union leaders, the state has hired a consulting firm to analyze the portfolio and advise the state on whether, and how, to diversify its holdings. If, as expected, the consultant recommends that the pension system broaden its portfolio, Mr. McCormac said he would have no choice but to contract with outside financial managers because state investment employees are not permitted to buy and sell hedge or venture capital funds.
But leaders of the union that represents the 60 employees in the Division of Investment, who now manage the pension fund, said the McGreevey administration was painting a misleading picture of the pension fund's performance. Joseph Golowski, a retired state auditor who is now consulting for the union, said the return earned by New Jersey's pension fund had been in the top 10 percent of all retirement systems in the country in recent years. Rae Roeder, the president of Communications Workers of America Local 1033, said the administration's attempt to disband the Division of Investment was politically motivated.
"It's the last remaining pot of gold in the state," she said.
Although the administration does not need legislative approval to change its investment regulations, some lawmakers have called for public hearings to establish an oversight body to monitor the way investment contracts are awarded. State Senator Peter Inverso, a Republican from Mercer County who faces a difficult re-election battle in a district heavily populated with state workers, said he would lobby the administration to drop the plan.
"I am greatly concerned that the pension system and its beneficiaries will fall victim to political contributors who are anxiously lining up for a return on their investment," Mr. Inverso said during a rally last week.
In New Jersey, where a succession of political corruption scandals has bred deep suspicion of elected officials, that apprehension is one of the major obstacles facing the McGreevey administration's proposal.
Orin Kramer, whom Mr. McGreevey appointed to head the State Investment Council, said he believed that the administration could win the confidence of the public only if it set up a system that was open and accountable. "The policy will speak for itself," he said.
In the partisan and highly politicized atmosphere in Trenton, however, Mr. Kramer's credentials have also become a factor in the debate. While Mr. Kramer helped develop public policy in the Carter White House and was chairman of financial regulation commissions during the administrations of Gov. Mario M. Cuomo in New York and Gov. Pete Wilson in California, he is also a major Democratic fund-raiser and was finance chairman of Mr. McGreevey's election campaign in2001. That makes some union officials wary.
"It just makes no sense to open up the system to even the appearance that campaign donations might be influencing decisions," said Mr. Golowski, the union consultant. "The system we have now was set up 50 years ago because of a scandal, and it has been scandal-free for more than 50 years. In New Jersey, that's fantastic." (David Kocieniewski, "Many Wary of Trenton Plan To Privatize Pension Fund," New York Times, September 4, 2003, p. B5)
* Seeking support for a plan that would allow private investment managers to run part of New Jersey's $60 billion pension portfolio, the McGreevey administration released a consultant's report today that urges the state to reduce its risk by diversifying its investments.
New Jersey's employee pension system, the only public retirement fund in the country managed solely by civil servants, lost about a third of its value during the stock market slump of the past three years. Although the losses were comparable to the drop in the market, State Treasurer John E. McCormac has argued that the state can get better returns, and assume lower risks, if it hires professional investment managers to run the fund.
Despite opposition from state employees' unions, Mr. McCormac hired the consulting firm Independent Fiduciary Services to analyze the system. The firm recommended that the fund, which now invests only in stocks and bonds, begin investing in hedge funds and venture capital. State law does not permit public employees to invest in hedge or venture funds, so such a move would require the state to hire private managers.
"This report makes it clear that New Jersey should diversify, seek a safer balance and better control of risk," Mr. McCormac said.
But leaders of the state employees' unions have bitterly opposed the proposal to use private fund managers, saying it would be too costly and open the door to influence peddling.
New Jersey's pension system was established 50 years ago, after a scandal involving elected officials who had steered consulting contracts to politically connected investors, and union leaders say it has delivered a return on the fund's money. Jim P. Marketti, a union leader, said if the state allowed private fund managers to run the system, elected officials would be able to reap huge amounts of campaign donations. But he worried that public employees might see their retirement security placed at risk. (David Kocieniewski, "Change Urged To Diversify Pension Fund In New Jersey," New York Times, September 19, 2003, p. B5)
By now, the State Investment Council of New Jersey has become set on privatization of pension-fund management, but, ironically, it is McGreevey's own greed that has stalled it: "Under pressure from Gov. James E. McGreevey, the panel in charge of New Jersey's $80 billion investment portfolio yesterday canceled a meeting where it planned to consider a ban on hiring private investment managers who contribute to state political campaigns" (Dunstan McNichol, "Investment Rule Hits a Roadblock: McGreevey Thwarts a Ban on Hiring Managers Who Give to Political Parties," The Star-Ledger, July 16, 2004).
<http://montages.blogspot.com/2004/08/james-e-mcgreevey-and-political-closet.html>
This is a line of attack that leftists interested in a campaign to divest from Israel, a rank-and-file campaign to promote union democracy, and a campaign to create a political party of the working class and our allies might investigate further: "There are approximately 9,500 pension funds, 3,500 banks, 1,500 labor unions, and 500 insurance companies in the United States that invest in Israel Bonds. School districts, municipalities, and other large institutions also purchase them. One of the largest sources of institutional investment capital in Israel is from U.S. pension funds through the purchase of Israeli government bonds" ("Israel Bonds: A Bad Investment," <a href="http://www.globalexchange.org/countries/palestine/bonds.html">2003</a>).
Yoshie