Per this morning's post, Alberto Gonzales seems to have resigned. That obviously doesn't mean Chertoff is definitely going to be his replacement. But what wouldn't surprise me is if Bush takes the opportunity to pick a terrorism-related fight with Democrats by appointing some draconian monster to fill the resulting vacancy. Both Justice of DHS have enough to do with national security that the administration can construe the battle over any controversial nominee as an example of liberals being weak on terrorism.

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One wonders what happened that caused Gonzales to offer his resignation over the phone. Sounds like it was a hasty thing. Good riddance!
Chertoff would be even worse because he's smarter, even more devious, and actually knows some law. A complete ideologue as well.
But, if Bush acts fast, he gets to make a recess appointment of the new A.G. (in spite of his agreement with Reid that he wouldn't do a recess appt during this summer break - he can say this is the exception that proves he's just acting in the national interest.)
Since Chertoff has demonstrated that he is completely miscast as Secy of Homeland Security, this gives Bush yet another split-the-Dems game to play out if he chooses Chertoff.
No real good can come of this situation, except Gonzales gets his footnote in Bush's history of really bad appointees.
Will he get the Freedom Medal?
I think that'd require a recess appointment for sure. Even with the bunch of lily-livered pantywaists that make up the Democratic almost-majority.
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