Saturday Reads: Obama’s War on Old People, Solyndra-gate, and Violent Protest in Cairo

Good Morning!!

Things are getting so bad for President Obama that I almost feel sorry for him. The reactions to his speech last night are still coming in, and they aren’t all that great. Sure Krugman tried to sound a little enthusiastic, but he ended up damning Obama’s jobs plan with faint praise.

O.K., about the Obama plan: It calls for about $200 billion in new spending — much of it on things we need in any case, like school repair, transportation networks, and avoiding teacher layoffs — and $240 billion in tax cuts. That may sound like a lot, but it actually isn’t. The lingering effects of the housing bust and the overhang of household debt from the bubble years are creating a roughly $1 trillion per year hole in the U.S. economy, and this plan — which wouldn’t deliver all its benefits in the first year — would fill only part of that hole. And it’s unclear, in particular, how effective the tax cuts would be at boosting spending.

Still, the plan would be a lot better than nothing, and some of its measures, which are specifically aimed at providing incentives for hiring, might produce relatively a large employment bang for the buck. As I said, it’s much bolder and better than I expected. President Obama’s hair may not be on fire, but it’s definitely smoking; clearly and gratifyingly, he does grasp how desperate the jobs situation is.

But his plan isn’t likely to become law, thanks to Republican opposition.

Robert Reich applauded the President’s “passion,” but not the plan itself. Reich’s reaction to the Jobs plan:

$450 billion sounds like a lot – and is more than I expected — but some of this merely extends current spending (unemployment benefits) and tax cuts (in Social Security taxes), so it doesn’t add to aggregate demand.

The net new boost to the economy is closer to $300 billion. That doesn’t approach even half the gap between what the economy is now producing and what it could produce at or near full employment.

And much that $300 billion is in the form of temporary tax cuts to individuals and companies. Some of these make sense — enlarging the Social Security tax cut, extending it to employers, and giving small businesses a tax holiday for new hires.

But temporary tax cuts haven’t proven to be particularly effective in stimulating new spending in times of economic stress. People tend to use them to pay off debts or increase savings. Companies use them to reduce costs, but they won’t make additional hires unless they expect additional sales – which won’t occur unless consumers increase their spending.

That leaves some $140 billion for infrastructure – improving outworn school buildings, roads, bridges, ports, and so on. And $35 billion to help cash-starved states avoid more layoffs teachers. Both good and important but still small relative to the overall need.

Just exactly what Dakinikat has been telling us forever. And when The New York Times talked to employers about the plan, most said the tax cuts and credits would be welcome but would not stimulate new hiring until there is consumer demand for their goods and services. Again, exactly what we’ve been hearing from Dakinikat all along.

The saddest article I have seen about Obama’s jobs speech is Dana Millbank’s column from yesterday: The irrelevancy of the Obama presidency. According to Millbank, Congressional Republicans treated the speech as “a big, fat joke.”

“You should pass this jobs plan right away!” Obama exhorted. Sens. Bob Corker (R-Tenn.) and Lindsey Graham (R-S.C.) chuckled.

“Warren Buffett pays a lower tax rate than his secretary — an outrage he has asked us to fix,” Obama went on. Widespread laughter broke out on the GOP side of the aisle.

“This isn’t political grandstanding,” Obama said. Rep. Paul Ryan (R-Wis.) guffawed.

“This isn’t class warfare,” Obama said. More hysterics on the right.

“We’ve identified over 500 [regulatory] reforms, which will save billions of dollars,” the president claimed. House Majority Leader Eric Cantor (R-Va.) and Whip Kevin McCarthy (R-Calif.) giggled.

And according to Millbank, Democrats weren’t all that thrilled either.

In fact, the empty seats were on the Democratic side. Democrats lumbered to their feet to give the president several standing ovations, but they struggled at times to demonstrate enthusiasm. When Obama proposed payroll tax cuts for small businesses, three Democrats stood to applaud. Summer jobs for disadvantaged youth brought six Democrats to their feet, and a tax credit for hiring the long-term unemployed produced 11 standees….Rep. Jesse Jackson (D-Ill.) stared at the ceiling. Rep. Peter Welch (D-Vt.) scanned the gallery. Rep. Jim Moran (D-Va.) was seen reading a newspaper.

Before the speech, Joe Biden actually discussed golf with John Boehner! I really think this President is done. I suppose a miracle could happen and something could stop the train wreck, but I can’t imagine what it would be.

Maybe Obama should read Joe Conason’s article about how Rick Perry tried to privatize Medicaid in Texas and ended up “wasting millions and enriching lobbyists and hedge funds. Oh wait — maybe not. I think that’s probably what Obama wants to do with Social Security and Medicare.

Another problem facing Obama is the Solyndra Energy bankruptcy and investigation. As I wrote a few days ago, Solyndra is a solar energy company which received $535 million in federal loans from Obama’s stimulus plan. Many observers, including the CBO, questioned whether the loan was too risky, but the White House may have intervened to make sure it happened. One of Obama’s biggest donors, George Kaiser owns more than 30% of Solyndra. For some time, Republicans in the House have been asking for an investigation of the circumstances surrounding the loan, especially since the company went bankrupt last week. Now, in a new development the FBI raided Solyndra’s headquarters and today visited the homes of its corporate officers.

From Bloomberg:

An FBI raid on Solyndra Inc., a solar-panel maker that failed after receiving a $535 million loan guarantee from the U.S. Energy Department, may signal the escalation of a probe into the Obama administration’s clean- energy program.

Agents for Energy Department Inspector General Gregory Friedman, who has called the department’s clean-energy loan program lacking in “transparency and accountability,” joined in the search yesterday at the Fremont, California, headquarters of Solyndra, which filed for bankruptcy protection on Sept. 6.

Republicans critical of the program stepped up their attacks following the raid, and two House Democrats questioned the integrity of the company, indicating a potential political crisis for the president. A foundation headed by an Obama campaign contributor was a principal investor in Solyndra….

Friedman, a watchdog within the Energy Department, said in a March report that a lack of adequate documentation for loans “leaves the department open to criticism that it may have exposed the taxpayers to unacceptable risks associated with these borrowers.”

From the Wall Street Journal

The Federal Bureau of Investigation continued its probe into solar-panel maker Solyndra LLC on Friday by visiting the homes of President and Chief Executive Brian Harrison, as well as former executives and co-founders Chris Gronet and J. Kelly Truman, according to two people familiar with the situation.

Solyndra, which filed for bankruptcy earlier this week, is the target of an investigation into whether executives knowingly misled the Department of Energy to secure a $527 million loan guarantee, The Wall Street Journal reported. On Thursday, the FBI seized documents and computers from Solyndra’s headquarters in Fremont, Calif.

Harrison’s home wasn’t searched on Friday, but he was questioned, according to one person with knowledge of the matter. Harrison, who joined the company in 2010, after the loan was awarded, didn’t respond to a request for comment.

Gronet, Solyndra’s former CEO, didn’t respond to requests for comment. Truman, a former senior vice president at Solyndra, is currently president and chief executive of energy storage developer Deeya Energy. A person answering the phone at Deeya said, “He is not taking phone calls.”

I guess it’s a good thing for Obama that we suddenly heard about a terror threat yesterday, huh?

In other, completely unrelated news, a protest by thousands of people in Cairo “turned violent” yesterday.

A demonstration that brought tens of thousands to this city’s central Tahrir Square turned violent on Friday, when thousands of people — led by a heavy contingent of soccer fans — tore down a protective wall around the Israeli Embassy, while others defaced the headquarters of the Egyptian Interior Ministry.

About 200 people were injured in clashes with the police at the Israeli Embassy and 31 were injured near the Interior Ministry, the Ministry of Health said late Friday night. Protesters apparently had scaled the walls of the Israeli Embassy to tear down its flag.

Mustafa el Sayed, 28, said he had been among about 20 protesters who broke into the embassy. He showed a reporter video from a cellphone, of protesters rummaging through papers and ransacking an office, and he said they had briefly beaten up an Israeli employee they found inside, before Egyptian soldiers stopped them. He said the soldiers removed the protesters from the building, but let them go free.

By 11:30 p.m., about 50 trucks had arrived with Egyptian riot police officers, who filled the surrounding streets with tear gas. Witnesses said that protesters had set a kiosk on fire in front of a security building near the embassy, and that the police had fired rubber bullets to disperse the crowd from both buildings. In addition, a fire broke out in the basement of the Interior Ministry, but it appeared to have been started from the inside and not by the protesters surrounding the building. The fire was in a room believed to store criminal records.


Friday Reads

Well, it’s Friday!

I’m still trying to figure out which reality it is today.  I’m not sure if this is some strategic move to head off all the FHA/VA lawsuits or a threat to sink Dodd-Frank, but BOA is talking about 40,000 jobs cuts.  Wrap your brain around that number one day after the best speech ever on with details indicating jobs isn’t the goal of the American Jobs Act.  They’re saying it’s because they can’t get all that fee income from debit and credit cards, but I think it’s just step one in hostage negotiations.

Bank of America Corp officials have discussed slashing roughly 40,000 jobs during the first wave of a restructuring, the Wall Street Journal said, citing people familiar with the plans.

The number of job cuts are not final and could change. The restructuring aims to reduce the bank’s workforce over a period of years, the Journal said.

The newspaper said BofA executives met Thursday in Charlotte and will gather again Friday to make final decisions on the reductions, putting the finishing touches on five months of work.

We have a “credible but unconfirmed” national security threat.  No, it’s not about them stealing your social security so Wall Street investment bankers can gamble it away, or removing your right to make decisions on your on health, or even the fact that there’s hundreds of thousands of unaccounted semi automatic weapons floating around the country.  But, hey, be very afraid and be prepared for continual cavity searching at airports, porn scans, illegal wiretaps, and those extraordinary renditions to continue while you’re standing in line hoping to get your unemployment benefits.

Officials said they were taking the threat seriously, while evidently trying to temper the news by saying such threats are commonplace during key events.

“It’s accurate that there is specific, credible but unconfirmed threat information,” said Matthew Chandler, spokesman for the Department of Homeland Security. “As we always do before important dates like the anniversary of 9/11, we will undoubtedly get more reporting in the coming days. Sometimes this reporting is credible and warrants intense focus, other times it lacks credibility and is highly unlikely to be reflective of real plots under way.

“Regardless, we take all threat reporting seriously, and we have taken, and will continue to take, all steps necessary to mitigate any threats that arise. We continue to ask the American people to remain vigilant as we head into the weekend,” Chandler said in a prepared statement.

A Department of Homeland Security official, speaking on background, said, “We will continue to respond appropriately to protect the American people from an evolving threat picture in the coming days and beyond. This may include an increased law enforcement presence at airports and other transit hubs, land and sea ports of entry, federal buildings, and other high-profile and critical infrastructure locations.”

The information originated from the tribal border area of Pakistan and Afghanistan, a federal official told CNN producer Mike Ahlers.

The super Cat food Commission is already showing signs of dysfunction.  Senator Kyl has threatened to quit if any one dare mention cuts in the defense budget.

Kyl revealed Thursday that he told congressional leaders to find someone else to fill the supercommittee seat he had been offered if the panel intended to further trim the Pentagon budget beyond the $350 billion over 10 years that was included in the August debt deal.

He told a standing-room-only lunch audience that he immediately told GOP leaders, “I’m off the committee” if further military cuts would be on the table.

“We’re not going there,” Kyl said sternly, recalling his message to his fellow GOP leaders. “Defense has given enough already.”

The comments cleared up whether the Pentagon and defense industry have a strong ally on the high-level panel.

If the supercommittee fails to cut $1.2 trillion by Thanksgiving, automatic triggers would be enacted to reach that figure, including around $600 billion in additional defense cuts over 10 years.

Fed Chairmen Ben Bernanke gave a speech in Minneapolis at its Economic Club and even managed to crack a joke.  Once again, a real economist says it’s households that are hurting and not business.

One striking aspect of the recovery is the unusual weakness in household spending. After contracting very sharply during the recession, consumer spending expanded moderately through 2010, only to decelerate in the first half of 2011. The temporary factors I mentioned earlier — the rise in commodity prices, which has hurt households’ purchasing power, and the disruption in manufacturing following the Japanese disaster, which reduced auto availability and hence sales — are partial explanations for this deceleration. But households are struggling with other important headwinds as well, including the persistently high level of unemployment, slow gains in wages for those who remain employed, falling house prices, and debt burdens that remain high for many, notwithstanding that households, in the aggregate, have been saving more and borrowing less. Even taking into account the many financial pressures they face, households seem exceptionally cautious. Indeed, readings on consumer confidence have fallen substantially in recent months as people have become more pessimistic about both economic conditions and their own financial prospects.

Compared with the household sector, the business sector generally presents a more upbeat picture. Manufacturing production has risen nearly 15 percent since its trough, driven importantly by growth in exports. Indeed, the U.S. trade deficit has narrowed substantially relative to where it was before the crisis, reflecting in part the improved competitiveness of U.S. goods and services. Business investment in equipment and software has also continued to expand. Corporate balance sheets are healthy, and although corporate bond markets have tightened somewhat of late, companies with access to the bond markets have generally had little difficulty obtaining credit on favorable terms. But problems are evident in the business sector as well: Business investment in nonresidential structures, such as office buildings, factories, and shopping malls, has remained at a low level, held back by elevated vacancy rates at existing properties and difficulties, in some cases, in obtaining construction loans. Also, some business surveys, including those conducted by the Federal Reserve System, point to weaker conditions recently, with businesses reporting slower growth in production, new orders, and employment.

Oh, the joke is one that only an economist would get. I got it and I didn’t think it was all that funny, but whatever.

Asked after his speech to the Economic Club of Minnesota about disagreements over what the Federal Reserve should do next, Chairman Bernanke joked: “When two people always agree, one is redundant.”

Rather than cover the Villagers and their comments on the speech last night, I thought I’d give a shout out to a few of our friends’ blogs.

Here’s a good one from Lambert at Corrente:   Words you won’t hear from President Fuck You tonight.

Carved in stone. These words:

No country, however rich, can afford the waste of its human resources. Demoralization caused by vast unemployment is our greatest extravagance. Morally, it is the greatest menace to our social order.

Carved in stone. Or, given the reality of Obama’s rump Democrats, scratched in sand, or written on the wind

Here’s the American Job Acts Summarized by David Dayen at FDL:.

Here is a summary of the American Jobs Act that the White House is putting out. I don’t have a ton of time to analyze it right now, but much of it will be familiar, albeit with a few new wrinkles. There’s $35 billion for state fiscal aid, which is somewhat robust and good bang for the buck in terms of saving jobs. All in all there’s $105 billion in infrastructure/public works (that includes a replenishing of the Neighborhood Stabilization Fund, which helps address the foreclosure crisis). And there’s an attempt to restart the TANF Emegency Fund with $5 billion or so. That’s on top of the $170 billion for the payroll tax cut and extending unemployment insurance. So all in all, back of the envelope says about $315 billion.

Okay, enough of all that, I’m going to grab my surrealistic pillow and go back to bed.  What’s on your reading and blogging list today?


Thursday Reads: The GOP Debate, Obama’s Narcissism, and Generations

Good Morning!! Last night we live-blogged the Republican debate, and it was borrrrrinnngggg! The less said about that debate last night the better. I can’t begin to pick the best or worst of that bunch. They were all horrible. For the media the big story in the debate was the conflict between Rick Perry and Mitt Romney. From CBS News:

The sparks flew early at Wednesday night’s Republican presidential debate, with onetime frontrunner Mitt Romney and the man who has overtaken him in the polls, Texas governor Rick Perry, trading barbs over their respective records on job creation.

Romney was asked about the fact that Massachusetts was ranked 47th in job creation during his time in office. After making the case that he had improved a bad situation, Romney took a subtle shot at Perry, who has been in politics since 1984, saying, “Look, if I had spent my whole life in government, I wouldn’t be running for president right now. My experience, having started enterprises, having helped other enterprises grow and thrive, is what gives me the experience to put together a plan to help restructure the basis of America’s economic foundation so we can create jobs again, good jobs, and compete with anyone in the world.”

Pressed on his reference to spending a “whole life in government,” Romney, who touts his experience in the private sector, added: “It’s a fine profession, and if someone were looking to say how can we restructure government, and which agency should report to which other agency, well, maybe that’s the best background. If you’re thinking about what it takes to reshape and update America’s economy, and to allow us to compete with China and other nations around the world, understanding how the economy works fundamentally is a credential I think is critical.”

Perry countered by saying that while Romney had a good record creating jobs “all around the world” in the private sector, “when he moved that experience to government, he had one of the lowest job creation rates in the country.”

“So the fact is, while he had a good private sector record, his public sector record did not match that,” the Texas governor continued. “As a matter of fact, we created more jobs in the last three months in Texas than he created in four years in Massachusetts.”

Whatever.

I don’t expect the President’s jobs speech tonight to be much more interesting, but we will be live-blogging it anyway. I do expect that after the Obama has nothing new to offer in his speech tonight that he will have “crossed the Rubicon,” so to speak. He will have passed the point of no return. He’ll be done, finished, caput. I’ll say again what I’ve been saying for awhile now: this president needs to follow in the footsteps of that  other failed president, Lyndon B. Johnson. Realize it’s all over and withdraw from the race so someone else can try to beat whichever nutjob the Republicans nominate.

If Obama refuses to withdraw, I think the media should hold debates where the President debates candidate Obama from 2008. They could play clips of his campaign promises and then ask him to explain why he adopted the Bush policies instead. Now that might be an entertaining debate.

For a long time now, we’ve been seeing former Obot bloggers expressing their disappointment in the man they forced down America’s throat. Lately the disappointment and even disgust has been coming from more mainstream sources. It’s quite amazing really. Yesterday Richard Cohen, the aging WaPo columnist told the Villagers that Obama has lost the Hamptons.

Over the Labor Day weekend, I went to a number of events in the Hamptons. At all of them, Obama was discussed. At none of them — that’s none — was he defended. That was remarkable. After all, sitting around various lunch and dinner tables were mostly Democrats. Not only that, some of them had been vociferous Obama supporters, giving time and money to his election effort. They were all disillusioned.

Let me call the roll. I am talking about are writers and editors, lawyers and shrinks, Wall Street tycoons and freelance photographers, hedge funders and academics, run-of-the-mill Democrats and Democratic activists. They were all politically sophisticated, and just a year ago some of them were still vociferous Obama supporters. No more.

Frankly, I was surprised. The Hamptons are a redoubt of New York liberalism. It is to campaign money what the Outer Banks are to fishermen. I expected more than a few people to defend the president. No one did. Everyone — and I do mean everyone — expressed disappointment in him as a leader. In that area, they thought he was a bust. Some articulated detailed critiques — the nature of his stimulus program, for instance. They argued that more money should have gone into long-term infrastructure programs. Most, though, skipped the details and just registered dismay: Where had their “change” agent gone?

Today, Al Gore attacked Obama as anti-science and anti-environment.

Instead of relying on science, President Obama appears to have bowed to pressure from polluters who did not want to bear the cost of implementing new restrictions on their harmful pollution—even though economists have shown that the US economy would benefit from the job creating investments associated with implementing the new technology. The result of the White House’s action will be increased medical bills for seniors with lung disease, more children developing asthma, and the continued degradation of our air quality.

BTW, why hasn’t Gore been protesting outside the White House? Why hasn’t he been arrested? Wouldn’t that have a powerful effect? But I digress.

I want to highlight another elite critique–although this critic apparently saw through Obama early on. Yesterday, HuffPo published an outstanding post by Professor of International Affairs Michael Brenner, from the University of Pittsburgh: The Great Betrayal.

Barack Obama’s betrayal will resonate in history long after he has become just another name on the over-priced celebrity speaker circuit. It is a betrayal of far more than the youthful idealists and loyal progressives who put him in the White House. Obama has unmoored the Democratic Party from its foundations — philosophical and electoral. No longer is it an expression of the persons, programs and ideas that crystallized with the New Deal and which dominated the country’s politics for sixty years. Its future is that of ad hoc assemblage of hustlers and special interests whose sole claim to govern will be that it is not the amalgamated Tea/Republican Party. Obama, by this Oedipus-like act of patricide, has also betrayed the country that voted for an enlightened leader with a social conscience — a country in desperate need of the opposite to the fate he has laid on us.

Brenner argues that Obama’s extreme narcissism reflects our contemporary culture and that we’ll see more like him in the future {shudder}.

A narcissist has no convictions other than a total dedication to his own gratification. That gives him the freedom to maneuver without inhibition or conscience with the revered self as the only reference point. All expressions of ideals, of opinions, of intentions are implicitly so qualified. A complementary narcissistic trait is an ease with blurring the line between virtual reality and actual reality. Narcissists believe everything they say — at the moment they say it. Their declarations are sterile acts that have no pride of parentage nor can they expect honor from offspring. Witness Obama’s momentarily rousing support of a labor movement that he has scorned for thirty months. This is the same President who has launched an all-out campaign against public school teachers whose unions serve as the whipping-boy for all that ails American education. Narcissists take as given that they never dissemble or lie — because to do so is to acknowledge that reality has an intolerably constraining claim on them.

Of course, this last is a feature of contemporary American political culture in general. Facts are taken to be infinitely malleable, the very notion of truth is denied, speaking honestly is viewed as a lifestyle choice, and communication is more a matter of self affirmation than an attempt to convey knowledge, emotion or intention to somebody else. We have externalized navel gazing to a remarkable degree. One consequence is that public discourse is not anchored by common standards of honesty. It is a maelstrom of opinion, emotive outbursts, mythology and primal screams. Accountability, therefore, ceases to exist. There is accountability only where there are benchmarks of veracity, a reasonably rigorous monitoring of what is said and done, and a dedication on the part of some at least to ensuring that these requirements for a viable democracy are met. The abject failure of the media to perform these functions to any reasonable degree is a hallmark of our times. The think tank and academic worlds are little better.

This amorphous environment is narcissist friendly terrain. It is permissive of twists and turns, leaves no record of what was done yesterday or the day before — much less a year ago, and focuses only on the evanescent existential moment. Case in point is the remarkably uncritical coverage that Obama has received from the supposedly responsible media — especially those who claim to be upholders of the ideas and policies and interests that he has betrayed.

Wow! Can that guy ever write! As I said Brenner apparently saw Obama pretty clearly from the beginning. Here is an excerpt from a paper he wrote in October, 2008 Who is Barack Obama? In this piece, Brenner comments on Obama’s strange disdain for the political and cultural movements of the 1960s and 1970s.

Obama is not a philosophical progressive or a populist. Little if anything in the roiled public life of America seems to anger him or even irk him. At a time of multiple crises – constitutional, economic, and in the nation’s foreign dealings – he keeps his emotional distance. It is hard to imagine him getting worked up about any of the developments in American society or attacks on the body politic that so deeply dismay many others

In all respects, Obama is very much a man of his times. Weak or absent convictions, dispassion even about grievous wrongs, incapacity for moral outrage, quiet acceptance of the precept to put self first – if not quite the measure of all things, a natural egoism – all the hallmarks of contemporary American society. A man who amasses $10 million at a relatively young age after a late start and married to a woman with no inherited wealth whatsoever is a man who looks after himself. He has none of the idealism that exemplified his mother’s life, and for which she paid a steep price in comfort and security. Obama’s disparagement of the 1960s social movements that shaped his mother is revealing. It confirms the absence of serious interest in his own lineage. It hints at an introspection, such as it is, that has the instrumental needs of the present as its magnetic pole. It exemplifies a strongly ahistorical approach to the current world he occupies. Obama’s public remarks that the whole 1960s experience was a ‘psycho-drama’ is astonishing. He is what he is, where he is, as a direct result of the 1960s. The same holds for his wife and children. Indeed, he simply would not be were it not for the ideals and attitudes that became full-blown in the 1960s.

Perhaps at the root of Obama’s narcissism there is a sense of disgust about where he came from and who is is? Or maybe he disdains the movements of the ’60s and ’70s–the Civil Rights movement, the Women’s movement, the anti-war movement, the gay rights movement–because he has no convictions of his own and can’t understand why anyone would have convictions worth fighting for? I don’t know. I admit I simply do not understand the man. I just know he’s toxic for America and he was toxic for the Democratic Party, which, thanks to him, is now truly dead.

Interestingly, I came across another post at HuffPo today that address the issue of generational conflict: Generation X Simply Doesn’t Get it, by Joshua Grant. The post seems to have been written in reaction to the August unemployment numbers. Joshua longs for the days when America really was a great country that everyone could be proud of. His generation, Gen Y, has never experienced it, he says.

We, Generation Y, are a people who have lived through the need for “ADHD medicines,” “anti-depressants,” dysfunctional and broken families, a dot-com bust, financial collapse, failed government institutions, world hunger, terrorism, and international conflicts. Simply put, there has been little to celebrate in life since we’ve been around.

Some people think we are self-absorbed, concerned only with our interest, but can you blame us? The only glimmers of hope have been what personal achievements we have accomplished, of which we hang onto to for dear life. After all, in a country that is supposed to be so “great,” something doesn’t add up, and we want to know why? It’s not that we are conceited or don’t want to be a part of something better, but why get in the middle of a national mess that looks like a downward spiral?

Joshua is so young that lacks any historical perspective. He blames the problems he sees on Generation X. Poor Gen X! They grew up under Reagan and never experienced an America that produced prosperity for anyone but the rich. I’m not sure Joshua even knows about difficult passages that members of other still living generations experienced–like the Great Depression, World War II, Vietnam, racial discrimination and segregation. He wants to know why things are so terrible in this country right now. And if Gen X-ers aren’t going to do anything about it, he wants them to get out of the way so his generation can. To his parents’ generation, he writes:

Let me thank you on behalf of my generation, Y, for all that you have done, and now I ask that you step aside, open your books, and let us, with all the right questions, begin to solve the problems you can’t seem to figure out. It all starts with Why/Y.

If you won’t ask, we will.

I don’t want to be too hard on Joshua, because he’s obviously very young. But what on earth is his generation waiting for? Why aren’t they in the streets protesting already? Why aren’t they out there demanding jobs and a guarantee they’ll get social security in their old age instead of complaining about being stripped of hope? Why aren’t they protesting the wars, torture, and domestic spying? Why are they waiting around for someone else to do it?

In the comments on Joshua’s article, everyone hammers the baby boomers and says it’s all our fault. At least we tried to fight the powers that be. Our generation didn’t sit around waiting for our parents to change things. We fought for change and we had a powerful effect on the culture even though we couldn’t stop the growing corruption and corporatization of the government. What are these kids waiting for? I admit I just don’t get it.

Well, this post has turned into a bit of a rant, so I guess I’ll wrap it up. What are you reading and blogging about today?


Labor Day Reads

Good Morning and Happy Labor Day!
New Orleans didn’t get quit the rain that was expected from TS Lee because of a high over Texas that sent some dry air at us.  However, Lee’s still around and it looks like it’s going to bring lots more rain as it makes its way to the NE so others may not be so lucky.

I read a great article by Robert Reich yesterday on the NYT about the plight of the middle class in the US which is one of my favorite topics to follow. I just can’t help but notice some of the astounding statistics that show how much wealth is being confiscated upwards.

THE 5 percent of Americans with the highest incomes now account for 37 percent of all consumer purchases, according to the latest research from Moody’s Analytics. That should come as no surprise. Our society has become more and more unequal.

When so much income goes to the top, the middle class doesn’t have enough purchasing power to keep the economy going without sinking ever more deeply into debt — which, as we’ve seen, ends badly. An economy so dependent on the spending of a few is also prone to great booms and busts. The rich splurge and speculate when their savings are doing well. But when the values of their assets tumble, they pull back. That can lead to wild gyrations. Sound familiar?

The economy won’t really bounce back until America’s surge toward inequality is reversed. Even if by some miracle President Obama gets support for a second big stimulus while Ben S. Bernanke’s Fed keeps interest rates near zero, neither will do the trick without a middle class capable of spending. Pump-priming works only when a well contains enough water.

Look back over the last hundred years and you’ll see the pattern. During periods when the very rich took home a much smaller proportion of total income — as in the Great Prosperity between 1947 and 1977 — the nation as a whole grew faster and median wages surged. We created a virtuous cycle in which an ever growing middle class had the ability to consume more goods and services, which created more and better jobs, thereby stoking demand. The rising tide did in fact lift all boats.

During periods when the very rich took home a larger proportion — as between 1918 and 1933, and in the Great Regression from 1981 to the present day — growth slowed, median wages stagnated and we suffered giant downturns. It’s no mere coincidence that over the last century the top earners’ share of the nation’s total income peaked in 1928 and 2007 — the two years just preceding the biggest downturns.

So, as BostonBoomer wrote last night, the President’s speech on jobs and labor is not expected to be a barn burner.  Salon’s Matt Stoller asks “What can Democrats do about Obama? The discussion around here has one answer, fall on your sword and let a real Democrat lead the way.

71 percent of Americans disapprove of how Obama is doing his job. Even among reliably Democratic groups — union households, women and young people — he’s now unpopular.

No one, not even the president’s defenders, expect his coming jobs speech to mean anything. When the president spoke during a recent market swoon, the market dropped another 100 points. Democrats may soon have to confront an uncomfortable truth, and ask whether Obama is a suitable choice at the top of the ticket in 2012. They may then have to ask themselves if there’s any way they can push him off the top of the ticket.

That these questions have not yet been asked in any serious way shows how weak the Democratic Party is as a political organization. Yet this political weakness is not inevitable, it can be changed through courage and collective action by a few party insiders smart and principled enough to understand the value of a public debate, and by activists who are courageous enough to face the real legacy of the Obama years.

Obama has ruined the Democratic Party. The 2010 wipeout was an electoral catastrophe so bad you’d have to go back to 1894 to find comparable losses. From 2008 to 2010, according to Gallup, the fastest growing demographic party label was former Democrat. Obama took over the party in 2008 with 36 percent of Americans considering themselves Democrats. Within just two years, that number had dropped to 31 percent, which tied a 22-year low.

Oh, the other hand, Republicans can say just about anything and the press will not call them out on their absolute insanity in search of some imaginary chalice of  fair-mindedness.  John Holbo has some interesting thoughts on that. He has a response to an earlier Kevin Drum question wondering if Democrats could get away with as much craziness and used Hillary Clinton as an example.

Kevin points out that if Hilary Clinton wrote a book about how much she wanted to repeal the Second Amendment and ban hate speech everyone would freak out that she was a radical. So what gives?

But the question answers itself: it’s really true that Perry doesn’t mean what he says. Mostly. As Kevin says, these are just the words he has to say to prove to the base he’s one of them.

By contrast, Hilary Clinton would only write that book about wanting to repeal the Second Amendment, etc., if – against all likelihood – she really wanted to repeal the Second Amendment. Because, since she isn’t a conservative, she’s not going to get a Get Out of Crazy Jail Free card. So there is no profit to her in writing such a book. Turning the point around: given that liberals don’t systematically employ a rhetoric of believing things they don’t, but conservatives do, it makes a great deal of sense to give conservatives an endless supply of Get Out of Crazy Jail Free cards. And round we go.

Really it’s more complicated. If people say crazy stuff long enough, they start to believe what they say, and other people do, too. The Overton Window gets dragged all over the place. (Michelle Bachmann really does seem to mean what she says. So she’s unviable, in the eyes of Republican establishmentarians. Even though she isn’t really saying anything absolutely crazier than Perry is saying at this point, and he’s looking pretty ok.) Having the license to say crazy stuff, without getting called on it, prevents serious debate and allows people to conceal any crazy stuff that really do believe, by hiding it in plain sight, as it were. It’s really true, I suspect, that when most conservatives say that they don’t buy this global warming junk science, what they really mean to do is, simply, signal ‘I’m in favor of capitalism’. If you are a conservative, talking to conservatives, and you say you think the scientists might be right, your audience is going to hear you refusing to send an ‘I’m in favor of capitalsim’ signal. Needless to say, this means conservatives can’t have reasonable discussions of global warming unless they are free from worries about what they are signalling, as opposed to saying. Which they never are, at least if they are politicians.

That only holds water when you consider polls that show a lot of the republican base actually believe insane things like the world is less than 10,000 years old.   Just look at this Pew poll taken on Darwin’s 200th Birthday.  Americans–and fundies in particular–look absolutely ignorant.  Here’s a great take on that from LGF scoffing at Erick Erickson’s assertion that not all of his fundie buddies are all that literal.  Sorry, Eric, they are.

Even pinning down the creationists’ beliefs more finely, the Gallup survey shows that approximately 44% or so of all Americans believe “God created human beings pretty much in the present form at one time within the past 10,000 years or so.”

Those are surveys that sample from all people living in the US. Since both Pew and Gallup show that only a small number accept the science (evolution over long periods of time), somewhere between 14% and 26%, it seems that those who believe in an old earth creationism process are roughly the same share (or slightly less) than the young earth creationists.

The bottom line is this, Erick: around half of all your fellow creationists are Young Earth Creationists. They even probably have a majority in your religion (American “conservative” Christianity.)

And yes, they are delusional, caught up in magical thinking.

You can read the original Ericson dribble here at the Washington Examiner where he tries to tell us that Michelle Bachmann’s brand of christianity is just misunderstood by the media.  There are many christians who believe the bible is metaphor, but your fundie friends–and Michelle Bachmann in particular–are not in their number.  I remember the first time I met an older woman that thought that there was a literal Garden of Eden some where on earth and that we actually were sons and daughters of Adam and Eve.  I was just speechless.  It’s a bit like watching a child talk excitedly about Santa Claus when you know the entire story. You don’t want to crush them, but sheesh, at some point you have to grow and realize that nothing is that simple and that magical thinking does no one any good.

Speaking of Michelle Bachmann, it seems she agrees with Quitterella on the elimination of corporate taxes.  Oh, great, not only does she want to eliminate the EPA so they can do whatever they want to our air, water, and environment, now the two Republican women don’t want them even contributing to the roads they over use or anything else.

Republican presidential candidate Rep. Michele Bachmann (R-Minn.) said she was “open to” former Alaska Gov. Sarah Palin’s call to eliminate corporate income taxes.

“I’m open to having that debate,” said Bachmann on CBS’s Face the Nation on Sunday.

But she cautioned that “if we went that route, then we’d have to have a fundamental restructuring of the tax code.” “What we would have to do then is rejigger other elements to define revenue and what revenues would be needed to the economy.”

In the short term, however the Tea Party favorite said President Obama could lower corporate taxes to aid American businesses. “I do believe that the president at minimum should lower the corporate tax rate to 20% so that businesses can see that they will have a more competitive rate,” she proposed.

Bachmann has made tax reform and rolling back regulations the centerpiece of her plan to boost job growth and jump start the economy.

Bachmann said if elected president, the first thing she would do would be to “bring about repatriation of income from American corporations that have earned money overseas … we have over $1.2 trillion in earnings that we could bring immediately to kick-start the economy which would be a true stimulus.”

Wow, for a tax attorney she sure doesn’t know what she’s talking about.  Businesses are overseas these days because that’s there’s a growing customer base there.  They’re taking advantage of the cheap labor and the fact they don’t have to transport the stuff over there.  US corporations just beg a tax loophole out of congress if they want their taxes cut.  The effective rate they pay is so low they don’t really care any way about the actual rate.

Speaking of manufacturing, here’s a report that might keep you up all night.  Gun manufacturers lose thousands of guns every year. 

More than 16,000 guns were “lost” from gun manufacturers’ inventories over the last two years, according to a report by a gun control advocacy group.

The report, released by the Brady Center to Prevent Gun Violence, pulled data from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and found that 16,485 guns left the inventories of nearly 4,500 licensed gun manufacturers throughout the country without a record of them ever being sold.

In 2004 Congress passed the Tiahrt amendment – named for its sponsor then-Rep. Todd Tiahrt (R-Kansas) – which prohibited the ATF from requiring gun manufacturers to track their inventory. The Brady Campaign has long advocated for a repeal of the Tiahrt amendment.

“It is shocking that gun makers are so oblivious to public safety that they lose track of thousands of guns every year,” said Dennis Henigan, the acting president of the Brady Center. “ Given the lethality of its product, the gun industry has a special duty to act responsibly.  Instead, it has a scandalous record of carelessness.”

The report states that the unaccounted for guns are often used in crimes because a trace of the weapon is not as likely to lead law enforcement officials back to the criminal.

Well, that’ll get things started on this Labor Day 0f 2011.  Have a good one and be safe if you’re under the threat of all that severe weather out there!!!


Friday Morning Reads

Well, it looks like I’m in a tropical storm warning right now. I’m just hoping the electricity stays on as TD 13 becomes TS Lee when it drifts around and comes on shore some time on Saturday.  I’m also hoping Hurricane Katia stays a fish storm but that’s looking less likely at the moment.  Lot’s of us may get flooded yet again.  I’m just hoping we can go get NJ Governor Chris Christie to go beat up Eric Cantor in the interim.  Poor Vermont looks like it needs a lot of help right now!  We’re expected to get rain that may fall at 2-3 inches an hour.  I’m not sure if our pumps can handle that; especially the crappy ones the Corps bought from Jeb Bush that have been problematic since they were installed.

So, it’s nice to see that the FED has decided that Goldman Sachs is now under its jurisdiction and is ordering it to review its foreclosure practices of a former subsidiary.  So many heads should roll over the subprime mortgage market mess and so few have to date.  The Fed’s a pretty aggressive regulator when it feels some institution is in its charter.  It’s good to see the charter is extending beyond commercial banks and thrifts now that the cheap lending has been extended to other financial institutions too.  They take the truth-in-lending laws very seriously.

The Federal Reserve ordered Goldman Sachs Group Inc to hire a consultant to review practices of a former mortgage subsidiary on Thursday and said it plans to assess a monetary penalty for wrongful foreclosures.

The Fed’s crackdown sent Goldman shares down 3.5 percent on Thursday, even as the bank announced that it had completed the sale of Litton Loan Servicing LP, the mortgage-servicing business at the heart of its foreclosure problems.

Litton’s regulatory troubles stem largely from the practice of “robosigning,” in which bank employees signed foreclosure documents without reviewing case files as required by law.

Many large banks, including Bank of America Corp, JPMorgan Chase & Co, Wells Fargo & Co and Citigroup Inc, have been targets of probes by state and federal regulators over the same issue, in the clean-up after a world financial crisis triggered in large part by bad mortgages in the United States and bonds backed by those loans.

The Fed cited “a pattern of misconduct and negligence” at Litton in announcing its enforcement action against Goldman.

The Economist has been having a reader debate on the necessity of Fiscal stimulus for the US.  The Hell, Yes! vote appears to have it.  The comments are about as interesting as the two economists debating the motion.

The American economy has remained extremely weak since officially leaving recession in mid-2009. The unemployment rate has barely fallen. Recent figures suggest GDP grew at less than a 1% annualised rate through the first half of the year and the odds of a return to recession have risen. The headwinds facing the economy are considerable: the private sector is still trying to reduce the burden of debt it is carrying from the pre-crisis boom years. House prices are still in the doldrums and mortgage credit is hard to get. State and local governments, which are required to balance their budgets, have been forced to cut spending, workers and hours to cope with falling tax collections. Many argue that in such a situation, the federal government is the only entity left that can provide a boost to overall demand and keep the economy from slipping back into recession or prolonged stagnation. At present, however, federal fiscal policy is scheduled to do the opposite: at the end of this year, a temporary payroll tax cut and enhanced jobless benefits expire.

George Stephanopoulos writes about  James Carville who told him that the White House was “out of bounds” when it asked for time to speak to Congress at nearly the same time NBC broadcasts a Republican Presidential Candidate Debate.

“I do think this is a really big debate and I think the White House was out of bounds…in trying to schedule a speech during a debate,” Carville said on “GMA.”

This will be Gov. Rick Perry’s first debate, and as Carville said this morning the stakes are high.

“Given a choice between watching a debate and the speech I would have watched the debate and I’m not even a Republican or even close to being a Republican,” he said, adding it will be a “barn burner.”

The administration agreed to move the speech to Thursday- possibly competing with the kick off of the NFL season instead. The White House has been touting this jobs plan telling ABC News that he will propose tax relief, infrastructure investment and assistance for the long term unemployed.

Obama has received advice from both sides with some arguing for an ambitious proposal and others recommending finding middle ground.

Carville, an ABC News consultant, told me it doesn’t matter what Obama proposes, it won’t get through Congress.

The President’s speech is supposed to help him with terrible polls, including one from Rasmussen that shows him currently behind Rick Perry.

For the first time this year, Texas Governor Rick Perry leads President Obama in a national Election 2012 survey. Other Republican candidates trail the president by single digits.

A new Rasmussen Reports national telephone survey shows Perry picking up 44% of the vote while the president earns support from 41%. Given the margin of sampling error (+/- 3 percentage points) and the fact that the election is more than a year away, the race between the two men is effectively a toss-up. Just over a week ago, the president held a three-point advantage over Perry. (To see question wording, click here.)

Perry leads by nine among men but trails by five among women. Among voters under 30, the president leads while Perry has the edge among those over 30. The president leads Perry by 16 percentage points among union members while Perry leads among those who do not belong to a union.

I’d vote for a dead dog before I’d vote for Rick Perry, just in case you’re wondering where I stand.  A Quinnipiac University poll also shows the President’s approval on handling of unemployment and the economy is still bleak.

President Barack Obama’s overall job approval rating has sunk to an all-time low, as American voters disapprove 52 – 42 percent, compared to 47 – 46 percent approval in July, and among whites and men his approval has dropped into the 30s, according to a Quinnipiac University poll released today. Congressional leaders rate even lower in the public eye.
Voters nationwide are more pessimistic about the economy, saying 49 – 11 percent that it is getting worse rather than improving, a precipitous drop from a July 14 survey by the independent Quinnipiac (KWIN-uh-pe-ack) University, in which voters said 32 – 23 percent the economy was worsening and January 18, when voters said 36 – 20 percent it was improving.
The economy is in a recession, 76 percent of voters say, and is not beginning to recover, voters say 68 – 28 percent.
Voters trust Obama more than congressional Republicans to handle the economy 44 – 41 percent, but they say 46 – 42 percent that Republican presidential candidate Mitt Romney would do a better job than Obama. They are split 43 – 41 percent on whether Obama or GOP candidate Rick Perry would be better on the economy.

This should be an interesting political season.  My guess is that it’s going to get very ugly.

There’s some good news from NPR about the Obama Justice Department.  It seems they have made a priority of keeping abortion providers and women seeking abortions safe from violence and protestor harassment.

The Obama Justice Department has been taking a more aggressive approach against people who block access to abortion clinics, using a 1994 law to bring cases in greater numbers than its predecessor.

The numbers are most stark when it comes to civil lawsuits, which seek to create buffer zones around clinic entrances for people who have blocked access in the past. Under the Freedom of Access to Clinic Entrances Act, or FACE Act, the Justice Department’s civil rights division has filed eight civil cases since the start of the Obama administration. That’s a big increase over the George W. Bush years, when one case was filed in eight years.

“There’s been a substantial difference between this administration and the one immediately prior,” says Ellen Gertzog, director of security for Planned Parenthood. “From where we sit, there’s currently much greater willingness to carefully assess incidents when they occur and to proceed with legal action when appropriate.”

Over the past two years, the Justice Department and FBI have been meeting with abortion-rights groups and medical providers all over the country to explain their work and talk about a federal task force designed to prevent violence against doctors and women seeking abortions.

The National Abortion Federation, which tracks violent incidents, says major violence is down since the 2009 murder of abortion doctor George Tiller. The man who killed Tiller has been convicted, and a federal grand jury is investigating the conduct of his alleged accomplices.

But Sharon Levin, a vice president at the National Abortion Federation, says there are still some signs of trouble, including two incidents this summer involving Molotov cocktails and the arrest of a man who told police he wanted to shoot two abortion doctors in Wisconsin.

So I admit to being totally fascinated by Stonehenge. I wanted to share this Tomb find in the place where the famous stones were most likely quarried.

The tomb for the original builders of Stonehenge could have been unearthed by an excavation at a site in Wales.

The Carn Menyn site in the Preseli Hills is where the bluestones used to construct the first stone phase of the henge were quarried in 2300BC.

Organic material from the site will be radiocarbon dated, but it is thought any remains have already been removed.

Archaeologists believe this could prove a conclusive link between the site and Stonehenge.

The remains of a ceremonial monument were found with a bank that appears to have a pair of standing stones embedded in it.

The bluestones at the earliest phase of Stonehenge – also set in pairs – give a direct architectural link from the iconic site to this newly discovered henge-like monument in Wales.

Site in Wales of Neolithic tomb The central site had already been disturbed so archaeologists chose to excavate around the edges

The tomb, which is a passage cairn – a style typical of Neolithic burial monument – was placed over this henge.

How cool is that?

So, that’s my contribution for the day.  Hopefully, I’ll be on line through the weekend but if you don’t see me, you’ll know what happened!

What’s on your reading and blogging list today?