Dear Progressives: You’ve been had …
Posted: August 15, 2009 Filed under: Health care reform, Surreality, Voter Ignorance | Tags: Bill Clinton, Howard Dean, Netroots Nation, Valarie Jarret Comments Off on Dear Progressives: You’ve been had …
Not at NetRoots but close
I’ve been busy getting the youngest back to University and entertaining a friend as well as trying to get my own stuff together for semester’s start so I didn’t go to Netroots and I haven’t followed it very closely. Just got back in from a day of driving way too many places to see two headlines that juxtapose nicely. First, is at HuffPo and the headline is “Valarie Jarret Heckled and Hissed at Netroots Nation”. The other is from Politico and that headline is “Party leaders prepare liberals to accept a health care reform deal”. Do you think we need to play connect the dots? Sure you do!!!
So, we’ve known for some time that this is the health care reform plan that really isn’t about health care or reform. Now, we’re being asked to bend over, open wide and … well, you catch my drift. I’m not about to take one for Howard Dean or the Gipper, Gypper, POTUS, whatever. I’ll admit to being a fully recovered Deaniac. That’s my story and I’m sticking to it. Here’s Politico’s story.
After the toughest week yet for health reform, leading Democrats are warning that the party likely will have to accept major compromises to get a bill passed this year – perhaps even dropping a proposal to create a government-run plan that is almost an article of faith among some liberals.
With August dominated by angry faces and raised voices at town hall meetings, influential Democrats began laying the groundwork for the fall, particularly with the party’s liberal base, saying they may need to accept a less-than-perfect bill to achieve health reform this year.
“Trying to hold the president’s feet to the fire is fine, but first we have to win the big argument,” former President Bill Clinton said Thursday at the Netroots Nation convention, a gathering of liberal activists and bloggers who will prove most difficult to convince. “I am pleading with you. It is OK with me if you want to keep everybody honest. . . . But try to keep this thing in the lane of getting something done. We need to pass a bill and move this thing forward.”
“I want us to be mindful we may need to take less than a full loaf,” he said after recounting the political troubles that followed his failed reform effort in 1994.
It won’t be an easy sell. Even former national party chairman Howard Dean this week threatened Democrats who don’t support the public insurance plan with the prospect of primary challenges – the first rumblings of what could devolve into a Democratic civil war over health care.
So, how’s that sitting with the Netroots folks? They may have been polite to the Big Dawg and the Big Scream, but Valarie Jarett didn’t fare too well. It was a hootin’ and hollerin’ time up there in Pittsburgh! Why, you’d have thought it was just another town hall meeting with a bunch of Beck and O’Reilly acolytes! Do you suppose there were some sino-peruvian-lesbian plants up there or has some one finally awakened to the smell of bad milk in their cafe latte? Again, this was reported by HuffPo.
On Saturday morning, one of the president’s closest advisers, Valerie Jarrett addressed the Netroots Nation conference in Pittsburgh. And while attendees were largely supportive throughout the question and answer session, the reception was warm at best. The defining moment, in fact, came when Jarrett was hissed and heckled.
Roughly midway through the session, Jarrett was pressed to explain why the President was “continuing so many of [Bush’s] policies many of which he criticized as candidate Obama.” Knowing the mood and makeup of the audience – largely progressive activists from across the country – she acknowledged off the bat that it was “a fair question.” But from there, things grew a bit rough.
Jarrett defended the work Obama has done outlawing torture, and releasing Office of Legal Counsel memos detailing how such interrogation practices came to be. At that point, a protester in the audience screamed out a question about why the White House was trying to keep additional photographs of detainee abuse from becoming public.
“I heard somebody shout out about the pictures,” Jarrett replied. “Everybody knows what’s in those pictures. And this is where it gets very delicate and I know it is a touchy subject for this audience. But what he is trying to balance as president, is keeping us safe, not giving ammunition to people who already have ample ammunition from what they’ve seen before to be adverse to us.”
More shouts and protests followed. “I can’t hear you,” Jarrett said. “You know what you’ve got to do? You’ve got to figure out a way to get your question on here [pointing to the computer on stage that was receiving emails from questioners]. We are not going to have shout outs from the audience.”
Wow! Are the folks at Netroots part of the mob now? Have some of them finally realized that if they don’t cooperate with the current meme there’s a place for them under that big ol’ bus the rest of us were thrown under during the primary last year? Are they really willing to sell out every single item on the liberal/progressive agenda for enhanced status quo? Are these possibly those chickens we kept hearing about? Are they finally coming home to roost? And, do you think it’s too late to get some REAL health care reform out while we’re at it?
Listen, Netroots, POTUS said he wouldn’t sign anything that didn’t include a public option. Are you going to join us to hold him accountable for those words or are you going to cave into this pressure to win one for the Gipper or is that the Gypper?

Drink up and make room for Netroots Nation Under the Bus!!!!
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Shoot the message and the messenger
Posted: August 14, 2009 Filed under: Health care reform, Hillary Clinton: Her Campaign for All of Us, president teleprompter jesus, Surreality, The Media SUCKS, Voter Ignorance | Tags: Big phRMA, healt care town hall meetings 1 Comment
For some one who was supposed to be the nation’s hip professor with that smooth oration style holding us all rapt and breathless, President Barack Obama sure has turned into to the teacher who has lost control of the classroom. I can’t recall any president–other than LBJ on Vietnam–that has rolled out a major policy and lost the conversation so quickly. It’s not that great of a leap to see remnants of “Hey, Hey LBJ, how many babies did you kill today?” in the faces of seniors who have some how been convinced that discussing living wills puts them in danger of being set out on the ice floes by their government. How did this administration lose control of this conversation so rapidly?
I would speculate that the major players in the debate did not want a repeat of the “HillaryCare” episode so they may have concentrated a bit too much on not repeating a similar process. There were no blue ribbon panels meeting all over the country and no attempts to set up a health care czar. Instead there was this via Bloomberg: “Six Lobbyists Per Lawmaker Work on Health Overhaul” and this from Jane at FDL : Memo Confirms Deal Between phRMA and White House. With this White House–as with Richard Nixon’s–it’s always about following the money. Before the bill even hit the Congress and the people, it was morphed into something that is said to be setting up windfall profits for the people who profit grandly already from the ill among us. Given that, now we’re supposed to buy it as a foot in the door to the real thing. Excuse me for my lack of trust. I’m just not buying that passing this thing will lead to anything but corporate windfall profits and a win in the Obama column.
That’s six lobbyists for each of the 535 members of the House and Senate, according to Senate records, and three times the number of people registered to lobby on defense. More than 1,500 organizations have health-care lobbyists, and about three more are signing up each day. Every one of the 10 biggest lobbying firms by revenue is involved in an effort that could affect 17 percent of the U.S. economy.
These groups spent $263.4 million on lobbying during the first six months of 2009, according to the Center for Responsive Politics, a Washington-based research group, more than any other industry. They spent $241.4 million during the same period of 2008. Drugmakers alone spent $134.5 million, 64 percent more than the next biggest spenders, oil and gas companies.
“Whenever you have a big piece of legislation like this, it’s like ringing the dinner bell for K Street,” said Bill Allison, a senior fellow at the Sunlight Foundation, a Washington-based watchdog group …
We now have a botched roll out, a messy misunderstood plan, and rooms filled with shrieking constituents of all shapes, sizes, and flavors. Is any one buying this as a national conversation?
We need a New Brain Trust
Posted: August 13, 2009 Filed under: Global Financial Crisis, president teleprompter jesus, Surreality, Team Obama, The Great Recession, U.S. Economy | Tags: Angela Merkel, Christine Lagarde, Eurozone, French Economy, German economy, Nicolas Sarkozy Comments Off on We need a New Brain TrustWhile the U.S. economy sputters, France and Germany appear to have exited their recessions and returned to modest growth during the spring. There’s been a distinctly different approach to macroeconomic policy taken by Chancellor Angela Merkel and President Nicolas Sarkozy and their respective finance ministers that deserve elucidation.
The French and German economies both grew by 0.3% between April and June, bringing to an end year-long recessions in Europe’s largest economies.
Stronger exports and consumer spending, as well as government stimulus packages, contributed to the growth.
Germany is a manufacturer and exporter. Yes, that’s right. Germany has trade unions, good vacation packages,
excellent schools, universal health care, lots of solar power and tough environmental regulations and they still have a manufacturing economy and they export. Their form of government is basically a type of democratic socialism. All the things we are taught to view with suspicion. Still, Germany manages to manufacture things and export to China the country to whom the U.S. has practically sold their collective soul so we can massively import junk on a rapidly decreasing credit line.
The latest figures showed German exports had grown at their fastest pace for nearly three years at 7%, with particularly strong growth in demand from rapidly-growing economies such as China.
The country’s Federal Statistics Office said that household and government expenditure had also boosted growth.
It added that imports had declined “far more sharply than exports, which had a positive effect on GDP growth”.
“These [GDP] figures should encourage us,” said Germany’s Economy Minister Karl-Theodor zu Guttenberg. “They show that the strongest decline in economic performance likely lies behind us.”
It’s the same story with France. Household consumption and export markets are improving. I don’t know if you’ve ever listened to Finance Minister Christine Lagarde but she’s undoubtedly one of the best in the world. Compare her to our Secretary of Treasury Timothy Geithner and you’ll see who comes up quite short. First, she’s a noted anti trust lawyer as compared to a noted monopoly enabler.
Ms Lagarde said that consumer spending and strong exports had helped to pull France out of recession.
“What we see is that consumption is holding up,” she said.
Official figures showed that household consumption rose by 0.4% in the second quarter.
She said government incentive schemes for trading in old cars, together with falling prices, were helping consumers.
Foreign trade contributed 0.9% to the GDP figure – a “very strong impact”, said Ms Lagarde.
We are daily fed this propaganda that other countries come up short when compared to the United States and our economic machine. We are told that countries with high union participation, with universal health care, with high standards for the work environment and tough regulations for business and standards for the environment come up short when compared to the U.S. These countries both undertook solid fiscal stimulus. Here is some information on the French package passed in February. The Obama stimulus package passed during February also.
France’s economic stimulus package encompasses a three-pronged plan: €11 billion ($14.5 billion) each to go to direct state investment and to inject capital into private-sector enterprises, plus €4 billion ($5.24 billion) for state-run companies to be applied toward improvements for the national postal service, energy supplies and the rail network. Of that amount, some €1.3 billion ($1.7 billion) is to go into refurbishment of higher educational institutions, prisons, monuments and court.
Here’s some information on the German package also passed in February.
Germany has approved a 50bn euro ($63bn, £44bn) stimulus plan aimed at boosting Europe’s largest economy.
The plan was approved by the upper house of parliament, which represents Germany’s 16 state governments.
It includes infrastructure investments, tax relief, reductions in health care contributions and money for families with children.
The package follows an earlier 23 bn-euro plan that was criticised for being too cautious.
The Markets sell the Governator Short
Posted: August 8, 2009 Filed under: Economic Develpment, Equity Markets, Global Financial Crisis, Surreality, The Bonus Class, The Great Recession, U.S. Economy Comments Off on The Markets sell the Governator Short
I was looking for just the right twist of irony sprinkled over my reality today. Bloomberg.com served it to me shaken, not stirred, with a delightful, tangy twist. Do you remember our discussions of those not so obscure derivatives called Credit Default Swaps? They’re basically the Wall Street version of a side bet. Some sucker agrees to provide a form of “insurance” that makes some entity is a better risk and some one else bets against them thinking nothing will make that entity worthwhile?
In most instances, the bet is against the holder of the entity’s bond. The holder, at some point, invested in the bond because they thought it a good investment. The investor may who holds the bond may want a little extra assurance so they enter into a swap agreement. If the bond defaults, they get a payment. However, in a lot of instances, the swap may be ‘synthetic’. That means some folks don’t actually hold the bonds or intend to buy or sell the bonds. They want to place a bet on which way the risk premium will move and pocket the difference. (That’s the extra cost associated with the bond if the market deems the bond to be risky or junk.) Okay, hopefully, that’s enough to get you situated but if you want to learn a little more here’s some information on Naked CDS from The Atlantic.
Okay, so now I want to move towards the punch line, if you will. There’s still a huge market for these things. Remember, it’s actually much bigger than the equities markets despite recent events. Here’s the fun headline from Bloomberg: Russia Beats California as Default Swaps Favor BRICs . Gosh, don’t you just hate it when you really have to explain a joke? So, BRIC is short for Brazil, Russia, India and China. So, that mean’s that the bonds of those countries are considered less likely to default than those of California. Grok on that a minute with some special consideration to Russia who defaulted not all that long ago.
Too Much Optimistic = Damned Lies!
Posted: July 14, 2009 Filed under: Surreality, U.S. Economy, Uncategorized | Tags: Christine Romer, Economic Predictions, Jeanne Cummiings, Martin Wolf, Mort Zuckerman, Rosy Scenarios Comments Off on Too Much Optimistic = Damned Lies!
Are we beginning to see the omnipresent reification of the Obama hope/change theme recognized for what it is? All of the memes on superior judgment have been an abstract campaign mantra with no basis in reality. Who but a few among us have recognized this? Are we seeing the first signs of a satori from the all too real realm of the economy and Americans who are losing everything because they have no job? All I can say is it is about damned time and I’m praying that it isn’t too late to get fooled again.
Today’s Pit Boss (Jeanne Cummings) at Politico brings the perspective to inside the beltway where grasping reality has always been a Herculean task. The blog piece is called “Some economists warn Barack Obama’s economic predictions too optimistic.” This economist just calls their prediction lies, lies and more damn lies.
This time, however, the new forecasts — if they are anything like what many outside economists expect — could send a jolt through Capitol Hill, where even the administration’s current debt projections already are prompting deep concerns on political and substantive grounds.
Higher deficit figures also would arrive at a critical moment in the health care debate, as lawmakers are already struggling to find a way to pay for the president’s nearly $1 trillion reform package.
Alternately, if Obama clings to current optimistic forecasts for long-term growth, he risks accusations that he is basing his fiscal plans on fictitious assumptions — precisely the sort of charge he once leveled against the Bush administration.
White House officials rebuff such suggestions, saying the midyear correction is precisely intended to keep their economic program reality based.
But a series of POLITICO interviews in recent days with independent economists of varied political stripes found widespread disdain for Obama’s first round of assumptions, with some experts invoking such phrases as “rosy” and “fantasy.”
Obama’s current forecasts envision 3.2 percent growth next year, 4 percent growth in 2011, 4.6 percent growth in 2012 and 4.2 percent growth in 2013.
Let me continue with the translation of “experts invoking such phrases as “rosy” and “fantasy” and just call them lies, lies, and more damned lies! Clear enough? Following my theme yesterday, I offer what we economists call the stylized facts to offset the varnished untruths wafting through Big Brother’s media screed.

















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