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Are Foreign Interests Funding Political Ads in the U.S.? Who Knows!

October 14, 2010 - by Donny Shaw

In my article yesterday refuting the claims Republicans are making in their attack ads alleging that conservative Democrats have liberal voting records, several people in the comments asked if I was going to address similar falsehoods in Democratic ads. I responded that of course I would if someone could show me an example of a Democratic attack ad that uses data to bolster lies. The suggestion was that I look at Obama’s claim that the Chamber of Commerce is funding ads against Democrats with contributions from foreign entities. So let me address that.

Here’s what we know about the Chamber:

  • They do take foreign money. They acknowledge receiving dues from at least 115 foreign affiliates in 108 countries. According to a Chamber spokesperson, this money goes into the “general fund and then to the international division.” Politically-active groups on the left also take money form foreign entities.
  • Under the Supreme Court’s Citizens United decision, the Chamber does not need to disclose who is funding its political ads, and they’re not.

Here’s what we don’t know:

  • What kind of internal accounting the Chamber is using to keep its foreign money separate from its political action committee that is running. If it is all in fact going into the same general fund before being split off to the international division and the political action committee, the foreign money is not kept away from political activities because money is fungible.

When Obama says, referring to the Chamber, that “one of the largest groups paying for these ads regularly takes in money from foreign corporations,” he is speaking truthfully, but suggesting something (i.e. that the foreign money funds the ads) that can’t be known for sure.

Obama has been a vocal critic of the Citizens United decision and an advocate of the DISCLOSE Act, which sought to prohibit foreign influence in elections and bring transparency to political ad funding in light of the floodgates that were opened by the Supreme Court. The bill passed the House in June by a vote of 219-206, but it failed in the Senate twice when every single Republican voted to maintain a filibuster of bringing it up for debate.

Since the bill never made it through the Senate, the current situation is that we just don’t know for sure if there is foreign money going into political ads. The lack of transparency of both the Chamber’s internal accounting and their political donors makes it possible that foreign money goes to political ads, but it does not make it necessarily so. Anyone alleging to know for sure is stretching the facts. In fairness, Obama has started to stress more that, “you don’t know” where the money is coming from. That’s what this is really about. It’s the fact that, outside of the Chamber and similar groups, none of us know for sure that foreign interests aren’t directly influencing U.S. elections to serve their own purposes, which could be contrary to our own well-being. That is the real problem here, and making it partisan and suggesting that somehow you do know that it’s happening only distracts from the real issue.

Pictured above is Minnesota’s Republican Governor Tim Pawlenty at a U.S. Chamber of Commerce event in Shanghai.

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Comments

  • Filtered Comment [ show ]

  • DeborahJBrown 10/15/2010 7:44am

    @UniqName – What difference does it really make who brings it to our attention that it is possible that foreign money is influencing our elections or even why this is being brought to our attention? What’s more significant is that this is why transparency in government is important. Why bury your head in the sand and refuse to seek truth? What’s more important – knowing the truth about if foreign money is influencing our elections or just taking every opportunity to announce hatred for a politician? Seriously, what matters more? It’s not like Obama is a king who will rule forever… but if foreign money is influencing our elections that could be dangerous.

  • Comm_reply
    UniqName 10/15/2010 9:16am
    Link Reply
    + -3

    I’m all for transparency in government. Transparency of those who are accountable to the people directly. But transparency of accounting books for private citizens and organizations engaged in political speech, which the Supreme Court has ruled money and donations constitute political speech, must be weighed against potential for chilling of that speech.

    Also, to apply “transparency” to only one political ideology and not another is not transparency at all. It is merely a tactic to demonize the opposition. It is the height of hypocrisy for an institution engaged in exactly the same practices, and following exactly to the same laws as another, to call for opening their financial records when they themselves will not. There are valid, legal reasons for ACoC to keep their books closed, which one must assume are exactly the same reasons Center for American Progress chooses to keep theirs closed.

  • Comm_reply
    JSComputerTech 10/15/2010 2:03pm

    I’m fairly certain, I can’t find the article right now, that over 90% of the democrats funds have a name attached. While 75% of Republican funds are secret.

    >>>>>>CAP doesn’t “electioneer or run candidate campaign ads”<<<<<<<<<
    http://mediamatters.org/research/201010130030

  • Comm_reply
    UniqName 10/15/2010 4:55pm
    Link Reply
    + -2

    SEUI receives funds from foreign sources including to some of its PACs (http://biggovernment.com/kolson/2010/10/11/seiu-solicited-contributions-from-foreign-nationals/) which do

  • Naame 10/15/2010 8:19am

    If Congress wasn’t broken, the Disclose Act would be passed via unanimous consent. This Act is great for both sides of the fence which should be obeying the law.

    The fact of the matter is that The People are the best form of checks and balances this country has at its disposal. Keeping information from us like this only weakens those checks and balances which can be devastating to everyone in the long run.

    For the Republicans out there, think about how much you would wish your party supported this Act if some day the Democrats start being funded heavily by foreign entities…or worse…perhaps some are already being funded by them? Don’t you wish you could at least be able to find out?

  • UniqName 10/15/2010 9:18am
    Link Reply
    + -4

    Despite what President Obama continues to affirm, it is still illegal to use money from foreign organizations to fund political activity domestically. Even after the Citizens United case. If they have it, bring out the evidence and let’s have a lawsuit. They won’t because there isn’t any.

  • PBerg 10/15/2010 10:34am

    : The Chamber receives funding from three foreign sources: 1) Foreign-based corporations, 2) Business Councils that operate out of the Chamber’s Washington, DC headquarters to solicit foreign donations, and 3) independently-run AmChams that are based overseas. Most of the Chamber’s foreign sources of funding come from large multi-national corporations which are headquartered abroad, like BP and Siemens. Business Councils in Bahrain and India have raised at least $300,000 in direct contributions to the Chamber’s 501©(6) account. .

  • Comm_reply
    UniqName 10/15/2010 4:54pm
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    + -3

    All of which are in segregated accounts only used for activities within those individual chapters, none of which is used in any of the domestic activities, political or otherwise. Admittedly, one must take AmCham’s word on this, but to this date, there is no credible evidence to suppose otherwise.

  • PBerg 10/15/2010 10:57am

    How would we like to wake up one morning, and find out that Victor Chavez, through his US Corp, CITGO, is funding one Party or one candidate in order to influence Government? I don’t care WHICH party, we MUST look into this and demand that they give the names and who and where the foreign funds are coming from. If there was not something very wrong with this, there would be no problem with COC and Karl Rove releasing names !

  • JSComputerTech 10/15/2010 1:20pm

    You missed four VERY IMPORTANT things!

    1. What is the Chambers record for supporting bills that outsourced jobs?
    2. The Chamber has publicly endorsed outsourcing.
    3. One of the Foreign companies in Bahrain came to DC 3 days after the allegations.
    http://www.uschamber.com/events/bahrain-banks-association-reception
    4. The Chamber was also accused of misappropriating charity money in September
    http://www.nytimes.com/2010/09/11/us/politics/11chamber.html

  • beenblue 10/15/2010 1:45pm

    It is to believed because it is absurd.

  • beenblue 10/15/2010 1:57pm

    Or if you don`t drink and type " It is to BE believed because it is absurd "

  • luminous 10/15/2010 2:20pm

    Its not absurd, and it is a rather easy conclusion to come to as well.

    It is because money is fungible as said in the story above, I will illustrate.

    We have 3 people, one holding a hat, Mao Zedong, and any random American(could be you =p). Now you and Mao are holding $100 dollar bills and you each place your $100 dollar bills in the hat. The guy holding the hat shakes it a bit, twirls it around a bit, says some magical words, and presto pulls out a $100 dollar bill, now is that your $100 dollar bill or is that Mao’s $100 dollar bill who the hell knows.

    Of course if the guy holding the hat pulls out both $100 dollar bills we will know for a fact that one of them is Mao’s. The more investigation of the chamber that is done the larger the amount of foreign dollars we know about becomes, currently we know of about $880,000~ dollars of foreign money that made its way into that account. And with 75% of their donations being secret we may never know the full total.

  • Comm_reply
    beenblue 10/16/2010 5:52pm

    After watching Karl Rove deny any ties to foreign money on Fox News, I realized that to Karl lying is the most sacred of duties.

  • beenblue 10/15/2010 2:41pm

    Here`s the way I see it, and it`s pretty simple the republicans lie, cheat, steal, and run in a pack " Group Think " and nothing is beneath them, on the other hand the democrats can`t agree on what color to paint the wall that`s in their way,and while they discuss it, they loose it. So what do we do ?

  • Comm_reply
    UniqName 10/15/2010 5:01pm
    Link Reply
    + -3

    It’s easy to believe your opponent is wrong without actually considering their arguments when you have already concluded that they are evil.

    You realize you have accused nearly half this country of mal-intent. That doesn’t strike you as a bit of an overgeneralization?

  • Comm_reply
    beenblue 10/15/2010 8:27pm

    There is but one truth. And my judgment has reference to self evident truths deductively. I raised no opponent, nor did I call the self serving in Washington evil. I suppose that I have found you an argument; I am not obliged to find you an understanding, since it was the republican party that gave us an economic melt down and a couple of wars, yea good times. I think I`ll finish here and boost my opinion by watching Fox News Corp.

  • tutku 10/16/2010 10:43am

    I agree you have news for video

    ( http://tutkuvideo.com )

  • nmeagent 10/16/2010 2:46pm
    Link Reply
    + -4

    “Are Foreign Interests Funding Political Ads in the U.S.? Who Knows!”

    Who cares? The last time I checked, individuals vote. Is any amount of campaign funding by some foreign entity going to change this fact? What you should really be worried about are the domestic political candidates buying votes by promising endless entitlement programs and other forms of government looting.

  • Comm_reply
    beenblue 10/16/2010 5:17pm

    Could you be specific as to what you consider endless entitlement programs that you`v deemed government looting, personally I`m against income tax since there is no law that states I have to pay it, but that`s an entitlement to the federal reserve, that the government enforces to pay the interest rate for borrowing monies from the fed.

  • Comm_reply
    Naame 10/18/2010 4:48am
    Link Reply
    + -1

    This is why we should care:

    1. Money influences elections.
    2. Elections influence power.
    3. Power influences us all.
    4. Foreigners don’t live here and shouldn’t be provided with any of that power during elections.
    5. It is illegal and for very good reasons.

    It is idealistically foolish to believe the freedom to vote has left this country completely absent of outside influences, deception, manipulation, widespread misinformation, etc. These days, you have to be a skilled full time journalist to get even close to the whole truth with all of BS that is out there.

    It is bad enough that the wealthiest of corporations have a louder voice than the voting citizens in this country. Now people like yourself are willing to open the gates for foreign powers to take a large slice of that pie too? Do you have any clue how much of our freedoms you are handing over by supporting such a thing?

  • beenblue 10/16/2010 8:44pm

    Okay, lets look at tax`s:Accounts receivable TAX, automobile registration TAX, building permit TAX, capital gains TAX, CDL license TAX, cigarette TAX, corporate income TAX, court fines(indirect TAXES), dog license TAX, estate TAX, Fed. unemployment TAX (FUTA), fishing license TAX, food license TAX, fuel permit TAX, gasoline TAX, hunting license TAX, inheritance TAX & interest expense(tax on the money), inventory TAX, IRS interest charges (tax on top of tax), IRS penalties (tax on top of tax), liquor TAX, local income TAX, luxury TAX, marriage license TAX, medicare TAX, parking meters, property TAX, real estate TAX, septic TAX, service charge TAXES, social security TAX, road usage TAXES (truckers), sales TAX, recreational vehicle TAX, road toll booth TAX, toll bridge TAX, toll tunnel TAX, school TAX, state income TAX, state unemployment TAX, telephone FED. excise TAX, telephone FED. universal service fee TAX, telephone FED. & state local surcharge TAXES,

  • beenblue 10/16/2010 8:47pm

    telephone minimum usage surcharge TAX, telephone recurring & non- recurring charges TAX, telephone state & local TAX, telephone usage charge TAX, utility TAXES, workers comp. TAX, well permit TAX, vehicle license registration TAX, vehicle sales TAX, water craft registration TAX, trailer registration TAX, traffic fines, and last but not the least Federal income TAX which goes directly to pay the interest on the debt to the federal reserve bank. P.S. there is no law that states you HAVE to pay income tax, it is unconstitutional and up held by the Supreme Court, to which the lower courts ignore, and to date can not produce a law that says YOU HAVE TO FILE A INCOME TAX RETURN. When the courts break the law, there is no law, just fear and intimidation, as George Bush said in `04 the constitution is just a piece of paper. Good luck and good night.

  • lala2010 10/17/2010 4:05am
    Link Reply
    + -1

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  • octavian61 10/17/2010 2:20pm

    With all due respect to Mr. Shaw, I would like him to write an article on how the Obama campaign contributions amounted to about 740 million dollars, the most in American history, in a time of recession. From my recollection during the final 2 months or so of the campaign he got millions of dollars. No one has ever question the origins of that amount of money.


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