FEC Reports: Clinton Campaign running in the red! Deep Implications

One of the basic things when it comes to political campaigns is the ability to finance them. That said, raising campaign funds is in part what defines a political legitimacy, stating that political campaigns are other persons movements where this requires that others pay for the campaign---self financing a political campaign is if nothing else, a handicapped campaign. And a campaign that is running in the red more often than not---is also a losing one. Today the latest FEC Report published in the NY Times Political Blog seems to suggest that Clinton's campaign may be in the red (again).

Despite a strong month of fund-raising in February in which she brought in $35 million, Senator Hillary Rodham Clinton finished the month essentially in the red, once her campaign’s outstanding debts are factored in, as well as her personal loan, according to filings submitted late last night to the Federal Election Commission.

After spending about $31 million in her efforts to keep up with Senator Barack Obama, Mrs. Clinton finished February with more than $33 million in cash on hand, but $21.5 million of that is earmarked exclusively for the general election, leaving her with $11.7 million for the primary.

Mrs. Clinton, however, loaned her campaign $5 million earlier this year and she listed $8.7 million in debts to various vendors, making clear why she has not yet paid herself back from her loan.

Even though it is not necessary for Mr.s Clinton to pay back the $5M loan to herself simple math indicates that she also owes an additional $3M to other vendors. Comparing the $30M Obama has on hand for the primary demonstrates that the Clinton campaign is running out of fuel and oxygen supply. This is how campaigns suddenly stop.

Where this strategically hurts is with the astute political superdelegates. Making a legitimate argument that she is more electable comes crashing down like Humpty Dumpty as no cash--no legitimacy. It has been assumed that the fabled Clinton fund raising prowess has been one of the factors they are floated in convincing the superdelegates that this political contest race is not over[yet] and that they should wait out the contest. This kind of news coincides with what I was told that soon the "Big" superdelegates are about to fall in behind Obama and start moving towards party unity, this could seal it.

By the way; Barack Obama's campaign brought in $55M during the month of February, a setting all sorts of records where he spent $43M, leaving him with $31.6M, available for the primary and $7.3M set aside for the general. Ironically he is better at paying his debts, listing only $625,000 in outstanding bills. Just to compare McCain raised a paltry $12M in February from the vaunted Republican machine.