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 …


Fiscal Jabberwocky

Posted: April 24, 2011 | Author: | Filed under: Barack Obama, Economic Develpment, Economy, Federal Budget, Federal Budget and Budget deficit, financial institutions, Global Financial Crisis, John Birch Society in Charge, legislation, Populism, Republican politics, U.S. Economy, U.S. Military, U.S. Politics, voodoo economics, We are so F'd | Tags: , , , , | 29 Comments

"Beware the Jabberwock, my son! The jaws that bite, the claws that catch!"

It’s not often I get to post pictures of mythical beasts for a few days in a row but here I go again. Plus, I’ve gotten another chance to use one of those wonderful Alice in Wonderland book illustrations.  Too bad they’re attached to posts where the perverse wonderland rules.  It seems to be a year for fictional monsters in Op-Eds and real ones in congress.

David Stockman, Budget Director for Ronald Reagan, has joined the ranks of Republican advisers calling shenanigans on the Boehner/Tea Party Republicans AND the dithering Obama Dems.   He must be very financial and professionally secure.  His op-ed in the New York Times draws blood on all sides.  He starts out telling President Obama what is what then moves on to hammering that petulant ninny from Wisconsin, Paul Ryan.  Go read it if only for the creative use of words like that in the heading above.

On the other side, Representative Ryan fails to recognize that we are not in an era of old-time enterprise capitalism in which the gospel of low tax rates and incentives to create wealth might have had relevance. A quasi-bankrupt nation saddled with rampant casino capitalism on Wall Street and a disemboweled, offshored economy on Main Street requires practical and equitable ways to pay its bills.

Ingratiating himself with the neo-cons, Mr. Ryan has put the $700 billion defense and security budget off limits; and caving to pusillanimous Republican politicians, he also exempts $17 trillion of Social Security and Medicare spending over the next decade. What is left, then, is $7 trillion in baseline spending for Medicaid and the social safety net — to which Mr. Ryan applies a meat cleaver, reducing outlays by $1.5 trillion, or 20 percent.

Trapped between the religion of low taxes and the reality of huge deficits, the Ryan plan appears to be an attack on the poor in order to coddle the rich. To the Democrats’ invitation to class war, the Republicans have seemingly sent an R.S.V.P.

Stockman call the entire situation “fiscal jabberwocky”. Good turn of phrase that.  He then moves to skewering the FED and adds Chinese currency pegging into the villain mix.  I guess there’s nothing like a good rant when you can get primetime ink.  This seems to be an interesting foray into harsh policy critique for economists with a republican bent.

Stockman, like Bruce Barlett and even David Frum are yet more Republicans who are pointing out the current GOP leaders are no more serious about budget reform than the Democrats are. The main difference is the GOP has better slogans and marketing, and slides into full blow demagoguery more easily.

But in terms of actual strategies for intelligently addressing the issue? The most glaring truth is the lack of leadership on both sides of the aisle.

The Barry Ritholtz blog post  on Stockman’s op ed does score some points on mentioning the leadership chasm, but, even more telling is the absolute adherence to fairy tales over reality in policy making these days. Is there an economist in the House?  Joe Wiesenthal says that Stockman is suffering from “fatalistic populism”.   Here’s Stockman’s ending barb to prove that point.  It’s also the two sentences that offer up the policy solution.

So the Ryan plan worsens our trillion-dollar structural deficit and the Obama plan amounts to small potatoes, at best. Worse, we are about to descend into class war because the Obama plan picks on the rich when it should be pushing tax increases for all, while the Ryan plan attacks the poor when it should be addressing middle-class entitlements and defense.

I’ve said many times that the Bush tax cuts just need to expire.  I’ve also said that since the Reagan years we’ve basically started chumming our economy by jumping into interventions wherever and whenever.  Afghanistan and Iraq are two such adventures that need to be de-funded and ended.  We also need to reign in the congressional and pentagon weapons fetish which is basically whipped into a frenzy by free spending lobbyists for companies like Halliburton, GE, and Boeing.  I can only image what they all want the drone budget to look like.  MENA appears to be filled with hives these days.

So many of our fiscal problems would go away if we would just put things back to the where they were 10 years ago.  This includes putting  Wall Street back in its box instead of letting it go completely gaga  with nonstandard, unregulated financial innovations. We can’t afford Obama’s muddling policies that seem like voting present while Republicans go wild with his inability to stand any firm ground.  I believe he got elected to undo the Dubya years. Instead, he’s put the Dubya policies on steroids.  So, if most of us–that would be voters–are saying let’s take it all back to the Clinton years, what I’d like to know is who are the real conservatives and who are the real radicals?

Out of Touch, Out of Mind

Posted: April 20, 2011 | Author: | Filed under: Federal Budget, Federal Budget and Budget deficit | Tags: | 18 Comments

The deficit burble in the beltway appears to be happening without the consent or input of the governed. If polls are any indication, the congress and the White House are moving the exact opposite direction of public will. First, it’s been clear for some time that the majority of people think raising taxes on the rich and letting the Bush Tax Cuts for Billionaires go away is the correct prescription. They thought that when Obama joined the Tax Cuts for Billionaires club and their opinions still haven’t changed.

Alarmed by rising national debt, Americans are clear about how they want to attack the federal government’s runaway budget deficits: raise taxes on the wealthy and keep hands off Medicare and Medicaid.

At the same time, the new McClatchy-Marist poll of the nation found that voters don’t want the debt ceiling raised, despite warnings that failing to do so would force the government into default and the economy into a tailspin.

By a 2-1 ratio, voters support raising taxes on yearly incomes above $250,000.

It’s even more clear what voters think about the slashing and hacking of  Medicare, Social Security, and Medicaid.  It’s a big ol’ resounding Hell NO!!

The Post-ABC poll finds that 78 percent oppose cutting spending on Medicare as a way to chip away at the debt. On Medicaid — the government insurance program for the poor — 69 percent disapprove of cuts.

There is also broad opposition to cuts in military spending to reduce the debt, but at somewhat lower levels (56 percent).

In his speech last week, the president renewed his call to raise tax rates on family income over $250,000, and he appears to hold the high ground politically, according to the poll. At this point, 72 percent support raising taxes along those lines, with 54 percent strongly backing this approach. The proposal enjoys the support of majorities of Democrats (91 percent), independents (68 percent) and Republicans (54 percent). Only among people with annual incomes greater than $100,000 does less than a majority “strongly support” such tax increases.

Let me first suggest a few things.  First, remove deductions on second mortgages, boats, and overpriced McMansions.  If it’s not an average family home, it doesn’t need a tax subsidy.  Second, equally tax investment and labor income.  There should be no tax privileges given to rich people that inherit wealth and then spend their days sitting around reaping profits from speculation.   I agree with Katrina Vanden Heuvel of  The Nation that calls this policy “Tinkle Down” economics.  It’s really bad policy and it’s supremely unfair.

Then in December, the Obama-GOP deal extended the Bush tax cuts for the wealthy at a two-year cost of about $70 billion a year. Now Congress is making $40 billion in painful budget cuts this year. Meanwhile, President Obama, Representative Paul Ryan and others are battling over budgets and tax plans for the next decade and beyond. For the most part, what’s been missing from these suffocatingly narrow discussions is an easy source of income: taxing investments like ordinary income.

The folks over at Responsible Wealth believe not only that the Bush tax cuts on upper-income folks should be ended but also that money made from money (i.e., capital gains and dividends) should be taxed like money made from work, not at the preferential 15 percent rate. They have a simple calculator that calculates your tax savings using just three numbers from your tax form (or from your head), and an interactive graph with videos of people talking about their taxes. It’s worth checking out at responsiblewealth.org.

Taxing capital gains and dividends at regular income rates would save $84.2 billion in 2011 alone, twice the amount we’re cutting from this year’s budget.

I guess Congress thinks we’re all dumb Americans who can’t do math.  However, people must be getting tired of the media meme on how brave and courageous Paul Ryan is by suggesting we throw grandma from the train.   Even his own district isn’t buying it. About time.

During a town hall meeting in Milton, a constituent who described himself as a “lifelong conservative” asked Ryan about the effects of growing income inequality in our nation. The constituent noted that huge income disparities contributed to the Great Depression and the Great Recession, and thus wanted to know why the congressman was “fighting to not let the tax breaks for the wealthy expire.”

Ryan argued against “redistribut[ing]” in this manner. After the constituent noted that “there’s nothing wrong with taxing the top because it does not trickle down,” Ryan argued that “we do tax the top.” This response earned a chorus of boos from constituents:

CONSTITUENT: The middle class is disappearing right now. During this time of prosperity, the top 1 percent was taking about 10 percent of the total annual income, but yet today we are fighting to not let the tax breaks for the wealthy expire? And we’re fighting to not raise the Social Security cap from $87,000? I think we’re wrong.

RYAN: A couple things. I don’t disagree with the premise of what you’re saying. The question is what’s the best way to do this. Is it to redistribute… (Crosstalk)

CONSTITUENT: You have to lower spending. But it’s a matter of there’s nothing wrong with taxing the top because it does not trickle down.

RYAN: We do tax the top. (Audience boos). Let’s remember, most of our jobs come from successful small businesses. Two-thirds of our jobs do. You got to remember, businesses pay taxes individually. So when you raise their tax rates to 44.8 percent, which is what the president is proposing, I would just fundamentally disagree. That is going to hurt job creation.

This does not hurt job creation.  It didn’t hurt job creation in the Eisenhower years.  It didn’t hurt job creation in the Clinton Years.  Also, remember Reagan presided over the biggest tax increase in history, do they argue that job creation was rotten by the end of the Reagan years?  This is a ridiculous argument based in that old Laffer Curve and Supply Side, VooDoo economics that they just keep resurrecting.  Even two of Reagan’s advisers–Bruce Bartlett and David Stockman–are out decrying that fairy tale. It’s simply not backed by history, disproved by past economic performance, and insane.

The Democratic Party and the White House should be reading these poll numbers and discussing the facts RIGHT now. They should–at the very least–end the Bush/Obama preferential tax treatment for the rich.  Paul Ryan and his ilk need to be outed for the charlatans they are on every talk show.  I have no idea why this isn’t being done unless there’s a huge beltway conspiracy between the media, the Republicans, and the Democrats to carry on with no regard to voter’s wishes or interests.

Historical Tax Rates on the Richest via Washington Monthly

Republicans Vote to End Medicare, and Other DC Follies

Posted: April 15, 2011 | Author: | Filed under: Barack Obama, Democratic Politics, Domestic Policy, Federal Budget, Federal Budget and Budget deficit, Hillary Clinton, House of Representatives, income inequality, legislation, Media, Medicare, Psychopaths in charge, Surreality, the villagers, U.S. Economy, U.S. Politics, We are so F'd | Tags: , , , | 23 Comments

What a disgrace these House Republicans are! This afternoon, 235 of them voted to destroy Medicare and Medicaid when they voted for Representative Paul Ryan’s budget bill. The bill passed the House with all Democrats and only four Republicans voting against it.

The bill will most likely die in the Senate, but Democrats should make sure those House Republicans’ constituents know what they voted for. Of course Democrats will do no such thing, because, first they are wimps with no idea how to win, and second, their President is already signaling that he will compromise with Ryan in the bargaining over raising the debt ceiling.

Obama said that it is critical for the world economy that Congress vote to increase the $14.3 trillion debt ceiling, but said that he would have to reach an accord with Republicans, who have called for a vote to be conditional on passage of fiscal reform.

“I think it’s absolutely right that it’s not going to happen without some spending cuts,” Obama said during an interview with The Associated Press.

Before the vote on the Ryan bill, there was a vote on an even more draconian bill proposed by far right Republicans. It turned into a bit of a free-for-all on the House floor. From Brian Beutler at TPM:

What was supposed to be a routine vote in the House — to knock down an amendment authored by conservative Republicans — turned into pandemonium on the House floor Friday, as Democrats tried to jam the plan through, and hang it around the GOP’s necks.

The vote was on the Republican Study Committee’s alternative budget — a radical plan that annihilates the social contract in America by putting the GOP budget on steroids. Deeper tax cuts for the wealthy, more severe entitlement rollbacks.

Normally something like that would fail by a large bipartisan margin in either the House or the Senate….But today that formula didn’t hold. In an attempt to highlight deep divides in the Republican caucus. Dems switched their votes — from “no” to “present.”

Panic ensued. In the House, legislation passes by a simple majority of members voting. The Dems took themselves out of the equation, leaving Republicans to decide whether the House should adopt the more-conservative RSC budget instead of the one authored by Budget Committee Chairman Paul Ryan. As Dems flipped to present, Republicans realized that a majority of their members had indeed gone on the record in support of the RSC plan — and if the vote closed, it would pass. That would be a slap in the face to Ryan, and a politically toxic outcome for the Republican party.

So they started flipping their votes from “yes” to “no.”

In the end, the plan went down by a small margin, 119-136. A full 172 Democrats voted “present.”

It’s nice to see a little bit of partisan spirit from the Democrats anyway. Too bad they had to use Obama’s old standby–voting “present,” but still maybe a good sign. It’s pretty clear that many in the House are unhappy with Obama and his kowtowing to Republicans. Maybe they will stand up to Obama next. Where there’s life, there’s hope.

Of the Ryan Budget bill, House Minority Leader Nancy Pelosi said

“This Republican plan ends Medicare as we know it and dramatically reduces benefits for seniors,” Rep. Nancy Pelosi (D-Calif.), the House minority leader, said in a floor speech. She said it would force the average senior citizen to pay twice as much for half the benefits while giving “tens of billions of dollars” in tax breaks to big oil companies.

The GOP plan “reduces Medicaid to our seniors and nursing homes . . . while it gives tax breaks to companies that send jobs overseas,” Pelosi said. “That’s just not fair.”

Pelosi was also very unhappy with President Obama’s “compromise” budget for 2011. Besides being angry about the cuts to programs that help the most vulnerable Americans, Pelosi was extremely unhappy that she and her Democratic House colleagues were completely cut out of the negotiations on the 2011 budget. In fact, Patricia Murphy at The Daily Beast says that many Democrats are “disgusted” with Obama. She writes that

…a number of Democrats are past protesting the president, discussing among themselves ways to recruit a primary challenger in 2012.

“I have been very disappointed in the administration to the point where I’m embarrassed that I endorsed him,” one senior Democratic lawmaker said. “It’s so bad that some of us are thinking, is there some way we can replace him? How do you get rid of this guy?” The member, who would discuss the strategy only on the condition of anonymity, called the discontent with Obama among the caucus “widespread,” adding: “Nobody is saying [they want him out] publicly, but a lot of people wish it could be so. Never say never.”

House Republicans, who got much of what they wanted in their negotiations with the White House, are whining because Obama said some mean things about them in his deficit speech on Tuesday. They were shocked that the president’s speech was “partisan.” Give me a break! Why do we have political parties if they aren’t supposed to be “partisan?”

The three Republican congressmen saw it as a rare ray of sunshine in Washington’s stormy budget battle: an invitation from the White House to hear President Obama lay out his ideas for taming the national debt.

They expected a peace offering, a gesture of goodwill aimed at smoothing a path toward compromise. But soon after taking their seats at George Washington University on Wednesday, they found themselves under fire for plotting “a fundamentally different America” from the one most Americans know and love.

“What came to my mind was: Why did he invite us?” Rep. Dave Camp (R-Mich.) said in an interview Thursday. “It’s just a wasted opportunity.”

The situation was all the more perplexing because Obama has to work with these guys: Camp is chairman of the House Ways and Means Committee, responsible for trade, taxes and urgent legislation to raise the legal limit on government borrowing. Rep. Jeb Hensarling (Tex.) chairs the House Republican Conference. And Rep. Paul Ryan (R-Wis.) is House Budget Committee chairman and the author of the spending blueprint Obama lacerated as “deeply pessimistic” during his 44-minute address.

Give me a break! Why do we have political parties if they aren’t supposed to be “partisan?” I’d like to see a hell of a lot more partisanship on the Democratic side. Of course Republicans are never accused of “partisanship,” but it is simply assumed that they will be rabidly “partisan” and the press eats it up when they are. But don’t worry guys, Obama is just mouthing the appropriate words before he surrenders and gives you most of what you want again.

Whatever Obama thinks he’s doing, it doesn’t seem to be working for the majority of Americans. Today Gallup reported that the president’s job approval rating is only 41%. The biggest drop in support for Obama is among Independents, only 35% of whom approve of his performance.

The latest buzzword in DC is “serious.” Republicans and columnists rave about how “serious” Ryan’s budget bill is. Democrats claim Obama’s plan is the truly “serious” one. But as Dakinikat keeps explaining, neither of these plans is going to do much to pull the country out of the doldrums, because neither has even a nodding acquaintance with economic reality. For anyone to call any of these politicians and pundits “serious” is nothing but a sick joke.

Today was just another pointless day in the lives of the least serious people in the least serious city on earth.

Monday Reads

Posted: April 11, 2011 | Author: | Filed under: 2012 presidential campaign, Civil Liberties, Civil Rights, Federal Budget, Foreign Affairs, Libya, morning reads, Republican presidential politics, SCOTUS, Surreality, Team Obama, The Bonus Class, U.S. Economy, U.S. Politics, unemployment, Voter Ignorance, We are so F'd | Tags: , , , , , , , , , , , , , , | 25 Comments

Good Morning!

Well, today I’m starting with a quote from  Robert Kuttner for The American Prospect about Larry Summers’ appearance at the INET conference.  INET is the acronym for the Institute for New Economic Thinking. It was created with a $100 million grant from George Soros and no, I wasn’t invited and I didn’t attend.  Mark Thoma and Brad De Long did. You can read their blogs if you want other views.

Larry Summers, now back at Harvard, was the after-dinner entertainment, interviewed by the prodigious Martin Wolf of the Financial Times, the world’s most respected financial journalist.

Summers was terrific, acknowledging that the stimulus of February 2009 was too small, that the idea of deflating our way to recovery is insane, that de-regulation had been excessive, and that much of the economics profession missed the developing crisis because its infatuation with self-correcting markets.

If only this man had been Obama’s chief economic adviser!

He’s referring to this:

Also worth mentioning is this op-ed by former Obama economist Christina Romer on why we have abysmal unemployment. If you read and listen to both of them, it’s going to be obvious that Obama must not have listened to either of them.  No wonder they quit so early on.  That leaves Timothy-in-the-well Geithner holding the bag for this miserable recovery, imho.  Evidently, the two of them thought  what most economists were thinking for several years now but it just wasn’t evident from policy.  I guess if I heard this austerity crap was coming down the hopper during this miserable recovery, I’d have bailed before my professional credibility went to the crapper too.  Guess Timothy always has the shadow banking industry to keep him warm.  Meanwhile, Summers continues his apology tour and Romer clarifies the unemployment situation.

Strong evidence suggests that the natural rate of unemployment actually hasn’t risen very much. Instead, the elevated unemployment rate appears to reflect mainly cyclical factors, particularly a lingering shortfall in consumer spending and business investment.

Okay. The important phrase here is “lingering shortfall in consumer spending and business investment”.  That means none of these idiotic tax cuts worked.  It also means the stimulus was woefully small and ill-directed.  It also means that it’s absolutely no time to worry about austerity unless you want yet another recession.  Frankly, I think the Republicans are secretly trying to bring one on and Obama is just not that informed about economics and more concerned about chasing the mythical bi-partisan unicorn to wake the frick up.

Since BB knows that I’m a wannabe astrophysicist (or Egyptologist depending on the day of the week), she sent me another kewl science link about a star torn apart by a blackhole! NEATO!!!

On March 28, 2011, NASA’s Swift satellite caught a flash of high-energy X-rays pouring in from deep space. Swift is designed to do this, and since its launch in 2004 has seen hundreds of such things, usually caused by stars exploding at the ends of their lives.

But this time was hardly “usual”. It didn’t see a star exploding as a supernova, it saw a star literally getting torn apart as it fell too close to a black hole!

The African Union’s been chatting up their “Brother Leader”  Whacko Ghadafo and have announced the possibility of an end to the fighting in Libya. And, raise your hand if you’d like to buy the Crescent City connection because I’m entertaining offers since the Brooklyn bridge sold so well last week.

“We have completed our mission with the brother leader, and the brother leader’s delegation has accepted the road map as presented by us,” Jacob Zuma, the South African president, said.

The AU mission, headed by Mohamed Ould Abdel Aziz, the Mauritanian president, arrived in Tripoli on Sunday.

Besides Zuma and Abdel Aziz, the delegation includes Amadou Toumani Toure, Denis Sassou Nguessou and Yoweri Museveni – respectively the presidents of Mali, the Democratic Republic of Congo and Uganda.

Gaddafi made his first appearance in front of the foreign media in weeks when he joined the AU delegation at his Bab al-Aziziyah compound.

The committee said in a statement that it had decided to go along with a road map adopted in March, which calls for an end to hostilities, “diligent conveying of humanitarian aid” and “dialogue between the Libyan parties”.

Speaking in Tripoli, Ramtane Lamamra, the AU Commissioner for Peace and Security, said the issue of Gaddafi’s departure had come up in the talks but declined to give details.

Why is it I want to sing I wanna zooma zooma zooma zooma zoom every time I read something about South Africa these days?  Well, as long as it’s not one of those horn thingies that ruined the world cup this last time out.

More crap from Crazy Republicans via Think Progress: Cantor Sees Current Medicare and Medicaid Programs As A ‘Safety Net’ For ‘People Who Frankly Don’t Need One’

Today on Fox News Sunday, host Chris Wallace questioned House Majority Leader Eric Cantor’s (R-VA) support for a plan in which Americans “pay more out of pocket.” Defending the proposal, Cantor argued that these programs sometimes provide a “safety net” for “people who frankly don’t need one” and that the shift of the burden from the government to the beneficiary will teach government “to do more with less”:

CANTOR: We are in a situation where we have a safety net in place in this country for people who frankly don’t need one. We have to focus on making sure we have a safety net for those who need it.

WALLACE: The Medicaid people — you’re going to cut that by $750 billion.

CANTOR: The medicaid reductions are off the baseline. so what we’re saying is allow states to have the flexibility to deal with their populations, their indigent populations and the healthcare needs the way they know how to deal with them. Not to impose some mandate from a bureaucrat in washington.

WALLACE: But you are giving them less money to do it.

CANTOR: In terms of the baseline, that is correct…What we’re saying is there is so much imposition of a mandate that doesn’t relate to the actual quality of care. We believe if you put in place the mechanism that allow for personal choice as far as Medicare is concerned, as well as the programs in Medicaid, that we can actually get to a better resolve and do what most Americans are learning how to do, which is to do more with less.

Actually, 99% of Americans are doing less with less.  One percent of Americans are doing more with the corporate and rich people’s welfare that folks like Cantor have handed them on a golden platter for the last ten years.  If you have the stomach for it, the link to the TV interview is over at TP too. Frankly, I’ve been sick enough recently and don’t need to see anything that just makes me sicker.

I don’t know about you, but watching Donald Trump–the man who lost his father’s billions and then ran through government subsidies and finally made some money as a really bad reality TV star–as a potential presidential candidate has been sort’ve a surreal trip. James Polis at Richochet says that Trump is Final Proof that the Political Class Has Failed.  Trump’s potential candidacy is like an extension of his reality show with gobs of opportunism, self-promotion and narcissism. It’s bad hair gone wild.

There are two main theories cooperating to explain the Trump phenomenon:

  1. Donald Trump is today’s best self-promoter and professional opportunist.
  2. The Republican field of presumptive candidates for president is lame.

But neither of these, nor even both together, can adequately explain what’s going on. We can’t even turn for supplemental help to subtheories that emphasize the rise of celebreality culture, the fall of Sarah Palin, or The Continuing Story of Bungling Barry. These variables all appear somewhere in the equation that has produced the Trump phenomenon. But none of them explain it.

Trump is suddenly “winning” as a political figure because the political class has failed. The authority of our political institutions is weak and getting weaker; it’s not that Americans ‘lack trust’ in them, as blue ribbon pundits and sociologists often lament, so much as they lack respect for the people inside them.

My theory is that he’s just a summer replacement, along with Michelle Bachmann, that will set the stage for fall when the blue suited, pompadour-sporting  set take over to bore us to death with talks of tax cuts and subsidies ala President Dementia.  Other Republican Presidential wannabes must be thinking we’ll be tired of self-promoting, idea-less hacks by then and that they’ll look refreshing by comparison in a few months.   Oddly enough, the P woman is keeping a low profile in all of this.  Maybe she’s finally figured out that discretion is the better part of valor for a change or it could be she just has enough money  for an excellent summer vacation and has decided to exercise her options.

Okay, so I’m going to move on to something light (weirdly, spinning light, emanating from the patterned Chinese lantern covering the naked bulb in my dorm room while a John Lennon album plays Power to the People on my old turntable … oops, wrong flashback) from New Scientist. Thought mushrooms were just for old hippies and Native American Shaman?  Think again.  Here’s the headline:  Earliest evidence for magic mushroom use in Europe.

EUROPEANS may have used magic mushrooms to liven up religious rituals 6000 years ago. So suggests a cave mural in Spain, which may depict fungi with hallucinogenic properties – the oldest evidence of their use in Europe.

The Selva Pascuala mural, in a cave near the town of Villar del Humo, is dominated by a bull. But it is a row of 13 small mushroom-like objects that interests Brian Akers at Pasco-Hernando Community College in New Port Richey, Florida, and Gaston Guzman at the Ecological Institute of Xalapa in Mexico. They believe that the objects are the fungi Psilocybe hispanica, a local species with hallucinogenic properties.

Like the objects depicted in the mural, P. hispanica has a bell-shaped cap topped with a dome, and lacks an annulus – a ring around the stalk. “Its stalks also vary from straight to sinuous, as they do in the mural,” says Akers (Economic Botany, DOI: 10.1007/s12231-011-9152-5).

This isn’t the oldest prehistoric painting thought to depict magic mushrooms, though. An Algerian mural that may show the species Psilocybe mairei is 7000 to 9000 years old.

What a long strange ride it’s been ever since.

More on Obama-style Justice for Guantanamo detainees as the Supremes decline to clarify their rights.

The Obama administration has fought all attempts by lawyers for detainees to have the Supreme Court review those rulings. And while the news was overshadowed by the administration’s concession that alleged Sept. 11 mastermind Khalid Sheik Mohammed and his co-defendants will be tried by a military commission rather than federal jury — a separate issue — the court last week turned away three detainee challenges arising from Boumediene.

One group active in representing the detainees, the Center for Constitutional Rights, decried what it called the court’s refusal “to defend its Boumediene decision and other precedents from the open defiance of the D.C. Circuit.”

The government told justices that there is no reason for them to believe anything other than “lower courts have properly performed the task that this court assigned them in Boumediene v. Bush.”

“Open defiance” may go a bit far in describing the D.C. Circuit’s rulings, but there is no doubt that the court’s action in Boumediene — and its inaction since — has left few happy.

While detainee advocates complain about the court’s timidity, D.C. Senior Circuit Judge A. Raymond Randolph has received wide attention for a speech he gave last year in which he compared the justices to characters in “The Great Gatsby,” who have created a mess they expect others to clean up.

You don’t need me to start in on the Supremes this morning since BB did such a great job last night.  Please go read her thread on just exactly how bankrupt our government has become.  Believe me, it’s not an article on the deficit either.

Here’s an important information on the Koch Brothers, grand wizards of the kleptocracy.  Alternet says they’re worse than you thought and they’re the astroturf beneathe the Tea Party’s wings.

Then look at a recent position pushed by Americans for Prosperity, the Tea Party-allied astroturf group founded and funded by David Koch (and whose sibling organization, the Americans for Prosperity Foundation, he chairs):

Similarly, Americans for Prosperity supports the House continuing resolution that cuts spending by $61 billion. Those cuts would reduce the budget for the CFTC by one-third. Make no mistake: Gutting the CFTC or limiting its authority would be a boon to Wall Street businesses that use complex financial instruments. But while the result is more profits for oil companies, it means everyone else pays more at the pump.

Okay, now have a look at the Kochs’ recent direct contributions to political candidates:

The Kochs donated directly to 62 of the 87 members of the House GOP freshman class…and to 12 of the new members of the U.S. Senate.

Don’t look now. It’s Atlas Shrugged, the Movie.  Bad fiction just refuses to die when it gives erections to obsessive white men. I’m just waiting for next year’s Razzies. It’s the tale of a businessman obsessed. No, not the movie …the making of the movie …

It has taken businessman John Aglialoro nearly 20 years to realize his ambition of making a movie out of “Atlas Shrugged,” the 1957 novel by Ayn Rand that has sold more than 7 million copies and has as passionate a following among many political conservatives and libertarians as “Twilight” has among teen girls.

But the version of the book coming to theaters Friday is decidedly independent, low-cost and even makeshift. Shot for a modest $10 million by a first-time director with a cast of little-known actors, “Atlas Shrugged: Part I,” the first in an expected trilogy, will play on about 300 screens in 80 markets. It’s being marketed with the help of conservative media and “tea party” organizing groups and put into theaters by a small, Salt Lake City-based booking service.

I think I’ll pass.  I prefer those nice little British films.  I’m anxiously awaiting the redo of Upstairs, Downstairs.  I never could make it through that silly John Galt speech even when I was young and my mind was an open book.  Now, where are those lights on the ceiling when you need them?

What’s on your blogging and reading list today?

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