TGIFriday Reads

Posted: April 29, 2011 | Author: | Filed under: Barack Obama, Federal Budget, Republican politics, Violence against women, Women's Rights | Tags: , , , , , , , , , , | 47 Comments

Good Morning!

Well, it’s getting to be the silly season.  Now we have Republicans who were for oil subsidies before they were against them or against them before they were for them.  Evidently, angry town hall participants can’t figure out why oil companies that keep making record profits while gouging at the pump deserve huge tax breaks. So, Republicans are making up their minds as they go along.  Here’s one such example from the Wonk Room:  Paul Ryan Endorses Ending Oil Subsidies, Even Though He Voted For Them

Rep. Paul Ryan (R-WI) agree.d to end subsidies to oil companies during a town hall in Waterford, Wisconsin, this morning, eliciting great applause from an overflow crowd in a very conservative section of his district. “We also want to get rid of corporate welfare,” Ryan insisted. “So we propose to repeal all that”

…

But Ryan voted twice this year to actually extend subsidies to oil companies, once on a motion to recommit on a shorter-term continuing resolution and again when he supported an amendment to the initial House CR. The Ryan budget, meanwhile, doesn’t specifically target oil subsidies, but only generally promises to end “corporate welfare.”

Earlier this week, House Speaker John Boehner (R-OH) also indirectly endorsed ending subsidies to the oil industry, before walking back his support.

CBS Reporter Lara Logan is offering up more information on her ‘merciless’ assault  during the Egyptian uprising.  Logan was separated from her colleagues for about 25 minutes.

She declined to go into more detail about the assault but said: “What really struck me was how merciless they were. They really enjoyed my pain and suffering. It incited them to more violence.”

After being rescued by a group of civilians and Egyptian soldiers, she was swiftly flown back to the United States. “She was quite traumatized, as you can imagine, for a period of time,” Mr. Fager said. Ms. Logan said she decided almost immediately that she would speak out about sexual violence both on behalf of other journalists and on behalf of “millions of voiceless women who are subjected to attacks like this and worse.”

It appears the Lake Havusu Arizona Newspaper filed to see Barack Obama Senior’s immigration file.  Their EXCLUSIVE–“Dad’s Immigration File Offers More Evidence Of Obama’s Birthplace” is an interesting read.  Sounds like Harvard couldn’t get rid of this particular Obama soon enough.  This really brings an interesting contrast to the President’s Book “Dreams of my Father”.

The documents also show that the CIS investigated the elder Obama as a polygamist, having a wife in Kenya and a “wife and child in Honolulu.” Dahlim’s memo adds that “Polygamy is not an excludable or deportation charge as Subject is a non-immigrant.”

Documents show that Obama, Sr. was denied an extension on his student visa in July, 1964, in part because Harvard University, where Obama, Sr., was a Ph.D. candidate, sought his removal. Obama Sr. eventually left the United States willingly after becoming an illegal alien for remaining in the country past the expiration of his visa.

An INS investigator, M.F. McKeon, wrote “They (Harvard officials) weren’t very impressed with him and asked us to hold up action on his application until they decided what action they could take in order to get rid of him. They were apparently having difficulty with his financial arrangements and couldn’t seem to figure out how many wives he had.”

Documents show that Harvard officials considered Obama, Sr. to be a “slippery character,” and conspired with the INS to have him deported.

After raising nearly every racist dogwhistle in the play book,  Donald Trump Bristles at Claim He’s a Racist.  Gee, why would anyone think that when the guy questions how the President–a legacy who graduated summa sum laude from Harvard–got into Harvard in the first place.

Trump tells TMZ … “That is a terrible statement for a newscaster to make.  I am the last person that such a thing should be said about.”

Bob Schieffer delivered a scathing statement against Trump Wednesday night on the “CBS Evening News,” reacting to Trump’s insinuation that President Barack Obama may not have had the grades to get into Harvard.

Schieffer said, “That’s just code for saying he got into law school because he’s black.  This is an ugly strain of racism that’s running through this whole thing.”

We asked Trump if he was suggesting Obama got into Harvard Law School through affirmative action.  He said, “Affirmative action is out there.  It’s a program that is available. But I have no idea whether it applies in this case.  I’m not suggesting anything.”

Politically-motivated accusation and innuendo is nothing new–as pointed out by Politico–but does Trump’s birther agenda shift the practice to a new low because it rose to the level of a media feeding frenzy?

Lurid conspiracy theories have followed presidents for as long as the office has existed. Yet even Obama’s most recent predecessors benefited from a widespread consensus that some types of personal allegations had no place in public debate unless or until they received some imprimatur of legitimacy — from an official investigation, for instance, or from a detailed report by a major news organization.

“There are no more arbiters of truth,” said former White House press secretary Robert Gibbs. “So whatever you can prove factually, somebody else can find something else and point to it with enough ferocity to get people to believe it. We’ve crossed some Rubicon into the unknown.”

It’s hard to imagine Bill Clinton coming out to the White House briefing room to present evidence showing why people who thought he helped plot the murder of aide Vincent Foster— never mind official rulings of suicide — were wrong. George W. Bush, likewise, was never tempted to take to the Rose Garden to deny allegations from voices on the liberal fringe who believed that he knew about the Sept. 11 attacks ahead of time and chose to let them happen.

Well, at least it’s Friday!  So, what’s on your reading and blogging list this morning?

Barney Frank on Morning Joe

Posted: April 28, 2011 | Author: | Filed under: Democratic Politics, Domestic Policy, Foreign Affairs, Health care reform, Iran, Libya, U.S. Economy, U.S. Military, U.S. Politics | Tags: , | 9 Comments

Barney Frank was on Morning Joe Tuesday. The interview was wide ranging and involved serious discussion of issues. Because of his seniority as the former chairman of the House Finance Committee and current ranking member, he can bring insight to the discussion. When he speaks, I make it a point to listen. He provides framing of subject in a manner that is understandable by the public. Also, we gain insight into what a major leader of the House is thinking.

Key issues discussed were:

  • federal debt is a result of past mistakes by both parties
  • NATO is a mechanism for Europe to outsource their military costs to the US
  • we need a new model of medical care which involves more than Medicare
  • clarifying end of life care considerations
  • the need to re-evaluate the utility of NATO
  • putting a missile shield in Poland to protect them from Iran is not our problem
  • problems of Libya are more germane to countries within spitting distance of Libya while NATO wants us to step up with more
  • Less defense spending could leave more money for health programs.

The  Morning Joe, Barney Frank segment can be viewed here. The first part of the segment is information to set up for the discussion with Barney which starts at 4 minutes. The video is about 17 minutes which enables a good discussion. Joe basically conducts the interview and generally lets Barney make his points.  He typically interrupts the conversation only for agreement or clarity.

Like We Need More Austerity …

Posted: April 28, 2011 | Author: | Filed under: Economy, jobs | Tags: , , , | 19 Comments

Too bad we can't buy some stock in soup kitchens ...

U.S. Economic Growth did exactly what most economists expected during the first quarter of 2011, it slowed substantially. There is some hope that the low rate was due to temporary factors like bad weather and political unrest in the MENA region that’s contributed to higher gas prices.

Of these various economic menaces, the most enduring is probably higher commodity prices, which reduce the amount of pocket money that households and businesses have available to spend on other purchases and, in the case of companies, hires. Gasoline prices have shown little sign of falling in recent weeks, and have nearly neutralized the 2011 payroll tax cuts that were intended as a stimulus.

“Consumers are spending more, but it’s getting soaked up in higher gas prices and higher food prices,” the chief economist at RDQ Economics, John Ryding, said. “That’s not leaving nearly as much left over for discretionary spending.”

Declines in government spending will continue to drag on the economy throughout the year, as strapped state and local governments cut back and the federal government tries to cut down on nonmilitary spending. Last quarter’s steep drop in military spending, which tends to be volatile, will probably reverse itself later in the year, economists said.

It’s pretty easy to tell who is experiencing the worst end of this lackluster recovery.  Hint:  It’s not the wealthiest Americans.  But, if you had any doubts, Wal-Mart reports their shoppers are “running out of money”.  Again, there’s low overall inflation but higher gas and food prices make up a large portion of the family budget for ordinary Americans.

Wal-Mart’s core shoppers are running out of money much faster than a year ago due to rising gasoline prices, and the retail giant is worried, CEO Mike Duke said Wednesday.

“We’re seeing core consumers under a lot of pressure,” Duke said at an event in New York. “There’s no doubt that rising fuel prices are having an impact.”

Wal-Mart shoppers, many of whom live paycheck to paycheck, typically shop in bulk at the beginning of the month when their paychecks come in.

Lately, they’re “running out of money” at a faster clip, he said.

“Purchases are really dropping off by the end of the month even more than last year,” Duke said. “This end-of-month [purchases] cycle is growing to be a concern.

This would explain the results of this Gallup Poll where “More than Half Still Say U.S. is in a Recession”. This amount of consumer depression in an economy driven by 70% household spending cannot bode well for future GDP growth.  Businesses are expanding overseas and will not create any jobs or businesses here unless they see customers.  This, in the Keynesia mold, calls for increased government spending.  What we have been getting is decreases in taxes to people whose investments and job creation efforts are going outside of the country.  It’s not hard to see why most citizens do not think we’re in any kind of recovery other than a technical one.

More than half of Americans (55%) describe the U.S. economy as being in a recession or depression, even as the Federal Open Market Committee (FOMC) reports that “the economic recovery is proceeding at a moderate pace.” Another 16% of Americans say the economy is “slowing down,” and 27% believe it is growing.

Meanwhile, every one within the D.C. beltway continue to eye the dwindling American safety net with greedy eyes.  This has elicited comments from all over but none is perhaps more  jaw-dropping than a pronouncement from Former Dubay Treasury Secretary Paul O’Neill who likened Republicans threatening to block the increase in the debt ceiling to Al Qaeda Terrorists.  It does indeed seem that Republicans would like to bring on a great depression rather than find middle ground on spending and taxing priorities.

“The people who are threatening not to pass the debt ceiling are our version of al Qaeda terrorists. Really,” O’Neill, Treasury secretary in the Republican administration of George W. Bush, said Wednesday in an interview with Bloomberg Television’s InBusiness with Margaret Brennan.

“They’re really putting our whole society at risk by threatening to round up 50 percent of the members of the Congress, who are loony, who would put our credit at risk,” O’Neill said.

It’s as if our elected officials are deliberately sabotaging the country.  The details in the National Income and Spending accounts are given here at the BEA.  You can see that we’re not getting stimulus from either Federal Spending, Business Investments or Exports.  (There’s a pretty much a wash when you look at Net Exports or you subtract Imports from Exports.)

Real exports of goods and services increased 4.9 percent in the first quarter, compared with an increase of 8.6 percent in the fourth. Real imports of goods and services increased 4.4 percent, in contrast to a decrease of 12.6 percent.

Real federal government consumption expenditures and gross investment decreased 7.9 percent in the first quarter, compared with a decrease of 0.3 percent in the fourth. National defense decreased 11.7 percent, compared with a decrease of 2.2 percent. Nondefense increased 0.1 percent, compared with an increase of 3.7 percent. Real state and local government consumption expenditures and gross investment decreased 3.3 percent, compared with a decrease of 2.6 percent.

The change in real private inventories added 0.93 percentage point to the first-quarter change in
real GDP after subtracting 3.42 percentage points from the fourth-quarter change. Private businesses
increased inventories $43.8 billion in the first quarter, following increases of $16.2 billion in the fourth
quarter and $121.4 billion in the third.

None of this is good news when coupled with the still high rates of unemployment.    Despite all these tax cuts, the business sector is clearly not going anywhere.   Here’s a link to some further analysis and nifty graphs from Econbrowser.  This analysis is particularly germane to our conversation.

Inventory rebuilding and a gain in exports made positive contributions, but these were essentially undone by increases in imports and decreases in government spending. Perhaps the most disappointing detail was investment spending by businesses, which had been making solid contributions to growth the previous three quarters, but was essentially flat for Q1. Housing remains stuck at very low levels, but at least it’s no longer a significant factor dragging the level of GDP down.

But until housing and business investment start making a positive contribution, we’re likely to be disappointed by the employment and GDP reports.

It’s pretty obvious that fiscal policy in this country has gone to VooDoo land because we’re still in deep DooDoo. What we have here is fiscal policy malpractice.  Too bad we can’t all join in a massive lawsuit and sue the Congress.  Thanks a lot SCOTUS!!!

Thursday Reads: Birther Madness, Town Hall Uprisings, Tornadoes, and Armadillos

Posted: April 28, 2011 | Author: | Filed under: morning reads, racism, U.S. Economy, U.S. Politics | Tags: , , , , , , , , , , | 62 Comments

Good Morning!!

Just so everyone will know what’s going on–we are trying out having some ads on the blog so that we can raise a little money for ongoing improvements. We hope no one will be too bothered by this. We are working on blocking ads that we don’t think belong on “the little blog that could.” If you see something offensive, you can let one of us know.

Now for today’s news links. As of late last night, the right wing nuts were still in an uproar about Obama’s birth certificate and whatever else they can think of to try to make him seem illegitimate. I don’t get it. There are so many things to criticize about Obama–why focus on these nutty conspiracy theories? I hate to say it, but it has to be racism and/or xenophobia. Check this out from birther start Orly Taitz:

“Look, I applaud this release. I think it’s a step in the right direction,” so-called “birther queen” Orly Taitz told me in one of her many media interviews this morning. “I credit Donald Trump in pushing this issue.”

But she still has her suspicions. Specifically, Taitz thinks that the birth certificate should peg Obama’s race as “Negro” and not “African.”

“In those years … when they wrote race, they were writing ‘Negro’ not ‘African’,” Taitz says. “In those days nobody wrote African as a race, it just wasn’t one of the options. It sounds like it would be written today, in the age of political correctness, and not in 1961 when they wrote white or Asian or ‘Negro’.”

Taitz says she’s not giving up her fight. She also claims Obama isn’t a “natural born citizen” because she uses a standard that requires both parents to be American citizens — a misreading of the Constitution which if enforced would have rendered several other American Presidents ineligible.

These people are utterly shameless. I wouldn’t dare go look at World Net Daily to see what they’re saying. Oh wait…the Washington Post did it for me.

“It raises far more questions than it answers,” said Joseph Farah, editor in chief of WorldNetDaily and birther extraordinaire, almost breathless between media interviews.

Farah, whose online publication has run hundreds of articles over the past couple of years questioning Obama’s citizenship, professed delight at the latest development. So did real estate tycoon Donald Trump, who has found that raising questions about Obama’s legitimacy is political jet fuel for someone pondering a presidential run.

And across the pond they’re laughing at us.

Has there ever been a more absurdly surreal moment, even in US politics, that unchallengeable theatre of the absurd and the surreal? One moment, we were watching a property magnate, with one eye on the presidency, the other on his reality TV show ratings, and puffed up like a bullfrog, rejoicing on an airport tarmac in New Hampshire that America’s President of two years had finally made public his birth certificate.

The next, America’s TV networks interrupted their schedules to cut to the White House, where that self-same President appeared to confirm the momentous fact: not that Barack Obama had indeed been born, but that the happy event indeed took place, as no sane person has ever doubted, on the unimpeachably American soil of Hawaii, one August evening in 1961.

Of late, however, America has seemed to be taking leave of its senses. A quarter of the population, polls showed, and close on half of Republicans, still refused to believe that unassailable fact.

Sometimes it’s just so embarrassing to live in the same country with these bumpkins.

From Think Progress, historian Douglas Brinkley is calling for NBC to drop Trump’s show (I didn’t know he had one) and for corporate sponsors to pull their ads.

Also from Think Progress, another Republican is schooled by his constituents at a town hall meeting.

Rep. Charlie Gibson (R-NY) felt the heat of that movement last week when constituents responded to his fear mongering about undocumented immigrants not paying taxes by asking him, “You mean like GE?!” Yesterday, at yet another town hall meeting captured on YouTube, his constituents angrily and passionately rejected the GOP’s budget plan and demanded that the rich pay their fair share.

Check out the video:

Yelled out at the end: “Tax the rich!” Keep fighting back America!

Minkoff Minx can update us on the storms hitting the Southern states. From the LA Times this morning: Deadly storms, tornadoes kill more than 170 in South

TUSCALOOSA, Ala.— A wave of tornado-spawning storms strafed the South on Wednesday and early Thursday, splintering buildings across hard-hit Alabama and killing at least 178 people in five states.

At least 128 died in Alabama alone, officials said early Thursday. Among the cities hit hard by a tornado was Tuscaloosa, home to the University of Alabama. The mayor said sections of the city were obliterated and its infrastructure decimated.

“What we faced today was massive damage on a scale we have not seen in Tuscaloosa in quite some time,” Mayor Walter Maddox told reporters Wednesday.

The tornado “paralyzed many city operations that directly respond to events like we experienced today,” he said. “Pray for us.”


Did you know you can get leprosy from an Armadillo?

“A preponderance of evidence shows that people get leprosy from these animals,” said Richard W. Truman, director of microbiology at the National Hansen’s Disease Program in Baton Rouge and lead author of a paper detailing the discovery in the New England Journal of Medicine.

Until now, scientists believed that leprosy was passed only from human to human. Every year, about 100 to 150 people in the U.S. are diagnosed with the malady, which is also known as Hansen’s disease. Though many have traveled to countries where the disease is relatively common, as many as a third don’t know where they picked it up.

Most of those cases are in Texas and Louisiana, where leprosy-infected armadillos live too.

The good news is that leprosy can now be treated with a combination of antibiotics.

I know this news post has been on the lightweight side, but it’s the end of the semester and I’m stressed out and don’t want to deal with anything too heavy. Feel free to do that in the comments though. What are you reading and blogging about today?

A First: Fed Chair Presser

Posted: April 27, 2011 | Author: | Filed under: Economy, Federal Budget, Federal Budget and Budget deficit, financial institutions, Global Financial Crisis, jobs, U.S. Economy, unemployment | Tags: , , , , , | 10 Comments

I’m watching Bernanke do a presser.  Wow.   (It’s a live blog … updates and explanations will be provided.)  I can’t believe the press sent political reporters to this.  What an amazing number of really rotten questions!!!

Some key points from the morning’s congressional testimony.

On Unemployment: We do see some grounds for optimism, including a decline to the unemployment rate, declines in the new unemployment insurance claims and improvements in firms’ reported hiring plans. But, even so, it could take quite a while for unemployment to come down to desired levels at current expected growth rates and, in particular, the FOMC projects unemployment still to be in the range of seven and-a-half to eight percent by the end of 2012. Until we see a sustained period of stronger job creation, we cannot consider the recovery to be truly established.

On Inflation: “I want to go back over this whole line of interventions, including today quantitative easing. And there have been a series of criticisms that have been made and negative predictions, and my view is that none of them have come true. And I think it is important for us to — to note that. And — and I know you’ve talked about this. I know you mentioned in your statement some of the points. But we were told, for instance, that it was going to be very inflationary. And I know it is your view as of now, and I think supported by the facts, that inflation is not now a problem, and we do not see inflation, certainly not one caused by any of what’s been done going forward. We were told this was going to be extraordinarily expensive, that it was going to cost a lot of money. I believe the answer is that on many of these things the federal government has made a profit by the — by the intervention.”

On Crude Oil: “The relative price of oil, again, is primarily due to global supply and demand. I think it’s important to note that the United States is consuming less oil today, importing less oil and producing more oil than it did before the crisis. That all the increase in demand from outside the United States, particularly in the emerging markets. And so there’s limited amount of what the Fed can do about oil prices alone. Again though, we want to be very sure that it doesn’t feed into overall inflation. We will make sure that doesn’t happen.”

On the Dollar: If the dollar was no longer reserve currency there would – it would on the margin probably mean that we would have to pay highest interest rates to finance the federal debt, and that would be a negative obviously. On other other hand, we might not suffer some of the capital inflows that contributed to the boom and the bust in the recent crisis. But again, I know there was also a countervailing argument in the Journal this morning as well. And I – I just don’t see at this point that there is a major shift away from the dollar.

On the Consumer: We understand the visibility of gas prices and food prices and we want to be sure that people’s expectations aren’t adversely affected. I think it’s important to note that, according for example, to the Michigan survey of consumers, that long term inflation expectations have been basically flat. I mean, they haven’t moved, notwithstanding ups and downs in gas prices, for example.

On the U.S. Fiscal Situation: While I understand these are difficult decisions and we certainly can’t solve it all in the current fiscal year, I do think we need to look forward and I know the House Budget Committee and others will be setting up a 10 year proposal. It’s very important and would be very constructive for Congress to lay out a plan that would be credible that will help bring us to sustainability over the next few years. In particular, one rule of thumb is cutting enough that the ratio of the debt to GDP stops rising. Because currently it’s rising relatively quickly. If we could stabilize that, I think that would do a lot to increase confidence in our government and in our fiscal policies.

Obviously, Bernanke needs to drill baby drill to get rid of inflation … so simple!!!

or this:

ezrakleinEzra Klein
Bottom line: Congress is embracing austerity. The Fed is going to start tapping the brakes. Sucks to be you, unemployed people. #fedpresser

Background information on the Fed Presser from NYT and David Leonhardt.

On Wednesday at 2:15 p.m., Ben Bernanke will do something that previous Federal Reserve chairmen considered a terrible idea. He will hold a news conference.

Mr. Bernanke spent much of his academic career arguing that the Fed should be less opaque, and, as chairman, he has put his ideas into action. Now it’s time for those of us in the media to hold up our end of bargain. In the spirit of democratic accountability, we should ask hard questions — and we shouldn’t let him get away with the evasions and half-answers that members of Congress too often allow Fed chairmen during their appearances on Capitol Hill.

One question more than any than other is crying out for an answer: Why has Mr. Bernanke decided to accept widespread unemployment for years on end, even though he believes he has the power to reduce it?

Here’s Paul Krugman’s take on the presser:  Bernanke Wimps Out. He’s got the same questions I do about the inflation v. unemployment .  (See my comments in the thread below.)

So Bernanke did get asked why, given low inflation and high unemployment, the Fed isn’t doing more. And his answer was disheartening.

As far as I can tell, his analytical framework isn’t too different from mine. The inflation rate to worry about is some underlying, inertial rate rather than the headline rate; the Fed likes the core personal consumer expenditures deflator; and this rate has actually been running below target, indicating that inflation isn’t a concern …


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