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Unfortunately, at this point I'd say it's at least even money that we'll see a repeat of 1968...either at Denver, in November, or both.
Most people have long forgotten the cause of the Chicago riots. We remember that they were "anti-war protesters." That's about it. As a result, we miss the parallel to today.
Going into the convention, anti-war candidate Eugene McCarthy had the lead in delegates. However, due to back-room party brokerage many of the delegates were not seated and the nomination was handed to Hubert Humphrey.
In anger and frustration, youthful McCarthy supporters turned to violence in the streets.
I can easily see the Democrats going into Denver with the realization that Obama's church problem has made him unelectable, even though he's got the lead in delegates. Add to this Hillary's absolute drive to become President, and it's very possible that the party could hand the nomination to her. We'd then be in a perfect parallel to '68, with an inspiration candidate who has the delegate lead being denied the nomination.
Rioting in the streets becomes a real possibility at this point. And, as you noted, one of the most loyal Democratic voting blocks would likely sit out the November election.
A slight digression, and this is a wild-ass guess...but I don't think this "Michigan/Florida" primary thing is over yet. My hunch is that Hillary kept her name on the ballot on both states for good reason, and that she was inwardly pleased when the two states decided not to hold re-votes. I've got no doubt that the lawyers on her team have been working since January on a procedural plan that in Denver will be pulled out like a rabbit from a hat in an attempt to get those votes to count for her. But as I said, I digress.
Of course, an equally disturbing possibility is that Obama gets the nomination, and while Hillary "officially" supports him her team works in the background to weaken him so much that he loses in November. The goal is to position her for 2012.
The woman has blind* ambition, and will not be stopped by the common-sense fact that this ambition may destroy her party.
*I was gonna say "naked ambition," but "naked" isn't a word I like to use in any way referring to Hillary.
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