Andy Kroll writes: Bill Liedtke was racing against time. His deadline was a little more than a day away. He’d prepared everything—suitcase stuffed with cash, jet fueled up, pilot standing by. Everything but the Mexican money.

The date was April 5, 1972. Warm afternoon light bathed the windows at Pennzoil Company headquarters in downtown Houston. Liedtke, a former Texas wildcatter who’d risen to be Pennzoil’s president, and Roy Winchester, the firm’s PR man, waited anxiously for $100,000 due to be hand-delivered by a Mexican businessman named José Díaz de León. When it arrived, Liedtke (pronounced LIT-key) would stuff it into the suitcase with the rest of the cash and checks, bringing the total to $700,000. The Nixon campaign wanted the money before Friday, when a new law kicked in requiring that federal campaigns disclose their donors. Maurice Stans, finance chair of the Committee for the Re-Election of the President, or CREEP, had told fundraisers they needed to beat that deadline. Liedtke said he’d deliver.

Díaz de León finally arrived later that afternoon, emptying a large pouch containing $89,000 in checks and $11,000 in cash onto Liedtke’s desk. The donation was from Robert Allen, president of Gulf Resources and Chemical Company. Allen—fearing his shareholders would discover that he’d given six figures to Nixon—had funneled it through a Mexico City bank to Díaz de León, head of Gulf Resources’ Mexican subsidiary, who carried the loot over the border.

Winchester and another Pennzoil man rushed the suitcase to the Houston airport, where a company jet was waiting on the tarmac. The two men climbed aboard, bound for Washington. They touched down in DC hours later and sped directly to CREEP’s office at 1701 Pennsylvania Avenue NW, across the street from the White House. They arrived at 10 p.m.

It was the last gasp of a two-month fund-raising blitz during which CREEP raked in some $20 million before the new disclosure law took effect. A handful of wealthy donors accounted for nearly half of that haul; insurance tycoon W. Clement Stone alone gave $2.1 million, or $11.4 million in today’s dollars. Hugh Sloan, CREEP’s treasurer, later described an "avalanche" of cash pouring into the group’s coffers—all of it secret.

At least it was secret until some of that Mexican money ended up in the bank account of a one-time CIA operative named Bernard Barker, one of the five men whose bungled burglary at the Democratic National Committee headquarters in the Watergate complex lit the fuse on the biggest political scandal in modern American history.

Over the next two years, prosecutors, congressional investigators, and journalists untangled a conspiracy involving a clandestine sabotage campaign against Democrats, hush-hush cash drops for CREEP surrogates in phone booths, and millions in illegal corporate contributions. As the slow drip of revelations continued, public outrage boiled over. Nixon’s approval rating sunk below 25 percent, worse than Lyndon Johnson’s during the darkest depths of the Vietnam War. Picketers marched on the White House demanding his impeachment. College campuses erupted in protest over the Watergate abuses.

Almost 40 years later, that outrage is back. Mass movements like the tea party and Occupy have channeled popular anger at a political system widely seen as backward and corrupt. In the age of the super-PAC, Americans commonly say there’s too much money in politics, that lobbyists have too much power, and that the system is stacked against the average citizen. "Our government," as one Occupy DC protester put it, "has allowed policy, laws, and justice to be for sale to the highest bidder."

For many political observers, it feels like a return to the pre-Watergate years. Rich bankrollers—W. Clement Stone then, Sheldon Adelson now —cut jaw-dropping checks backing their favorite candidates. Political operatives devise ways to hide tens of millions in campaign donations. And protesters have taken to the streets over what they see as a broken system. "We’re back to the Nixon era," says Norman Ornstein of the conservative American Enterprise Institute, "the era of undisclosed money, of big cash amounts and huge interests that are small in number dominating American politics." This is the story of how we got here.
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Matt Stoller writes: Recently, Barack Obama announced a laudable new policy position on immigration. His administration will no longer deport undocumented immigrants who were brought to this country as children by their parents, as long as they don’t get in trouble with the law. These are people who are essentially Americans without citizenship, and the risk of deportation to a country they don’t really know is a terrifying and unfair. Aside from this serving the cause of justice and human decency, this is a long overdue move to reward a constituency group, happening in an election year. It’s worth understanding how this policy change came about, so that one can get a sense of the incentives that animate the White House policy shop.

Here’s White House advisor David Plouffe on CNN describing the change.

Senior White House adviser David Plouffe insisted Sunday that President Obama’s decision to defer deportation of certain illegal immigrants who came to the country as children was “fully within” the president’s authority and not made with the 2012 election in mind.

“This is not a political move. This builds on a lot of steps that we have already taken,” Plouffe said on the CNN program “State of the Union.”

So it’s not a political move. Ok. I find that hard to believe, since it’s an election year. And indeed, this was published in the New Yorker a few days ago.

The White House is so convinced of the centrality of Hispanics to the current election and its aftermath that Plouffe told me he has been preparing for months for an onslaught of advertisements from a pro-Romney group attacking Obama from the left on immigration, arguing that Obama’s deportation and border-security policies have been too Draconian.

David Plouffe thinks nothing of outright lying on CNN about why the administration changed its policy, in one forum describing it as a useful policy change and denying any political incentives and in another more insider-friendly publication making it clear that it was a reelection gambit. It doesn’t matter whether the politics or the policy were the driving force, it’s a good change. That Plouffe feels that he can so cavalierly lie shows how dishonestly this administration operates.

There are more political lessons to be drawn, other than the fact that this administration is full of liars and that Obama usually only helps non-wealthy constituency groups when he is scrambling for his own electoral survival. The political lesson is that pressure matters, but so does leverage. The overall atmosphere on this particular problem – undocumented immigrants who arrived as kids – came to a boiling point through the actions of an entire activism eco-system. There were nationwide marches for immigration reform a few years ago, and undocumented college students bravely marched openly to bring this issue to light. These kids embarrassed the administration, and it must have shown in the polls in terms of dampening enthusiasm to vote in 2012 among Latinos. But even this was not enough.

It was only fear of the Republicans outflanking Obama to the left that got the administration to move. When the issue came to a head, and Obama feared that he would pay a political price from the Republicans, all of the excuses – the terrible Republican opposition, a divided country, an intractable Congress with a 60 vote threshold – suddenly evaporated. Faced with losing his own hide, Obama governed. [Continue reading…]