Thursday Reads: GOP Wars on Democracy, Social Safety Net; Russia and Syria; MacDonald Follow-Up; and Ancient Cheese making

dog_reading

Good Morning!!

Now that Rick Snyder has succeeded in turning Michigan into a right-to-work-for-less state, he and his Republican House have passed a supposedly “new and improved” emergency manager law. The Detroit Free Press reports:

The House passed the Local Financial Stability and Choice act in a 63-46 vote late Wednesday, with Rep. Kevin Cotter, R-Mt. Pleasant, as the only Republican to join Democrats in voting against it.

Immediate effect for the new bill was rejected 63-45, meaning it would take effect around the end of March if passed by the Senate, likely to happen Thursday, and signed by Gov. Rick Snyder, as expected.

The legislation introduced by Rep. Al Pscholka, R-Stevensville, is similar to a draft Treasurer Andy Dillon and Gov. Rick Snyder had released. The administration said it’s designed to address shortcomings in Public Act 4 by giving local officials in financially troubled cities and school district more input in decisions.

Incoming House Minority Leader Tim Greimel, D-Auburn Hills, said it is a “mirror image” of what voters just rejected and “another slap in the face to democracy perpetrated by this House.”

It appears that both Wisconsin and Michigan are now totally owned by the Koch Brothers. Think Progress reports on How Michigan Voters Can Repeal The GOP’s Anti-Union Powergrab, but this is starting to feel like whack a mole. Republicans seem determined to kill democracy one state at a time.

The New York Times Fed Ties Rates to Joblessness, With Target of 6.5%

The Federal Reserve made it plain on Wednesday that job creation had become its primary focus, announcing that it planned to continue suppressing interest rates so long as the unemployment rate remained above 6.5 percent.

It was the first time the nation’s central bank had publicized such a specific economic objective, underscoring the depth of its concern about the persistence of what the Fed chairman, Ben S. Bernanke, called “a waste of human and economic potential.”

To help reduce unemployment, the Fed said it would also continue monthly purchases of $85 billion in Treasury securities and mortgage-backed securities until job market conditions improved, extending a policy announced in September.

But the Fed released new economic projections showing that most of its senior officials did not expect to reach the goal of 6.5 percent unemployment until the end of 2015, raising questions of why it was not moving to expand its economic stimulus campaign.

Ben Bernanke indicated there isn’t much more the Fed can do at this point. Perhaps its time for GOP lawmakers to quit trying to destroy the economy?

I couldn’t believe this story about cops gone wild in New Hampshire. Raise your hand if you knew it was illegal to buy “too many” iPhones.

Police in Nashua, New Hampshire say they were forced to use a Taser on a 44-year-old Chinese woman who does not speak English after she was told to leave an Apple Store because she was trying to buy too many iPhones.

Through a translator, Xiaojie Li told WMUR that she had bought two iPhones from the Pheasant Lane Mall Apple Store on Friday and returned on Tuesday to buy more to send to her family in China.

“The manager of the Apple Store came and told her something, but she didn’t understand,” Li’s daughter explained.

Soon after that, shoppers captured cell phone video of police — who were providing security at the store’s request — using a stun gun on Li as she laid on the mall floor screaming.

The Apple store employees had to call the police because a customer was spending too much money in their store? That’s just one more reason I’ll never buy an Apple product.

Senator Bob Corker has introduced a bill that would cut Social Security, Medicare, and Medicaid by nearly $1 Trillion in reture for raising the debt ceiling.

Corker said the Dollar For Dollar Act would include $937 billion in savings from Medicare, Medicaid and Social Security, with an equivalent, dollar-for-dollar hike to the debt ceiling.

Corker offered some details about his bill during a speech on the Senate floor Wednesday. Corker said his bill would raise the age of Medicare eligibility to 67 and would include the Medicare Total Health package that would increase private-sector competition for covering the elderly. Corker also said there would be a form of means-testing, making wealthy Medicare recipients pay more of their healthcare needs.

Corker said he’d also “slowly” raise the age of eligibility for Social Security benefits, but did not specify an age.

“We should address [Social Security] now because it’s causing the government to spend more than it takes in,” Corker said. “It will be bankrupt by 2017 if we do nothing.”

Izzat so. Social Security will be “bankrupt” five years from now? Prove it, Corker. What an asshole. And this is the guy the corporate media has been presenting as a GOP moderate who is willing to work with Obama.

According to the Washington Post, Russia is admitting that: Assad is losing control and rebels might win in Syria

MOSCOW — Syria’s most powerful ally, Russia, said for the first time Thursday that President Bashar Assad is losing control of his country and the rebels might win the civil war, dramatically shifting the diplomatic landscape at a time of enormous momentum for the opposition.

While Deputy Foreign Minister Mikhail Bogdanov gave no immediate signal that Russia would change its stance and agree to impose international sanctions on Assad’s regime, his remarks will likely be seen as a betrayal in Damascus and could persuade many Syrians to shift their loyalties and abandon support for the government.

Russia’s assessment could also further strengthen the hand of the rebels, who have made some significant gains in their offensive, capturing two major military bases and mounting a serious challenge to Assad’s seat of power, Damascus.

“We must look at the facts: There is a trend for the government to progressively lose control over an increasing part of the territory,” Bogdanov, the Foreign Ministry’s pointman on Syria, said during hearings at a Kremlin advisory body, the Public Chamber. “An opposition victory can’t be excluded.”

Here’s an interesting follow-up to Gene Weingarten’s excellent story about the Jeffrey MacDonald case, which I wrote about recently. Weingarten did a live chat at the WaPo on Tuesday in which he was a little more revealing of his own opinions. I learned that he had the same incredulous reaction when he heard the words supposedly chanted a by “hippie intruder” to MacDonald’s home, “Acid is groovy…kill the pigs.”

This is an odd thing to say about a 6,400-word story, but I found myself without the space to tell it as completely as I’d have liked. The introduction to this chat is mostly for those of you who have read the story and are still not persuaded, beyond a reasonable doubt, that MacDonald killed his family and that “A Wilderness of Error” is a deeply flawed and manipulative book. All the rest: Feel free to plow ahead into the questions.

I remember the killings. I was an 18-year-old hippie at the time, roughly the same age as Helena Stoeckley. I didn’t do as many drugs as she did, but I did plenty, including mescaline, LSD, and heroin. When I read in the newspaper that Jeffrey MacDonald – still presumed an innocent victim – told police that his attackers had been vicious hippie intruders who chanted “acid is groovy – kill the pigs,” I knew he had done it. As did every hippie in every city who read that statement with any degree of analytical thought. No self-respecting killer hippie would ever have uttered, let alone chanted, that uncool, anachronistic thing as late as 1970. That was exactly what some ramrod-straight 26-year-old Ivy League frat-boy doctor who was contemptuous of the counterculture would have thought a hippie would say.

Not to mention that hippies, um, didn’t kill people, at least not while stoned in drug-induced trances. The Manson gang were not hippies. They were weirdo murderers. They went around murdering people, not just Sharon Tate and her friends. They did not come out of the dark, descend on a house, do their savage thing, and then disappear back into the world never to be heard of again. That’s not how it works with murderous gangs who would kill sleeping children. Oh, and hippies also don’t arrive at a house intent on mass murder without remembering to bring along any weapons, relying on whatever knives and pieces of wood they might happen to find inside the house. The Manson people brought a shotgun.

But, okay. Forget all that. That’s just me bloviating. Maybe the MacDonald killers were different from all other killers. Maybe they were really disorganized, absentminded murderous hippies who talked funny and only killed just this once. Oh, and who came to hassle the doctor for drugs because they were drug addicts, and who killed his family, but never opened a closet to discover a big stash of syringes and drugs, including amphetamines. Or maybe they saw that stuff but didn’t steal it because murder may be one thing, but stealing is just plain wrong.

After that, he goes through the evidence and responds to readers’ questions. Check it out if you’re interested.

A fragment of a sieve that researchers say were used as cheese strainers.

A fragment of a sieve that researchers say were used as cheese strainers.

Finally, the Wall Street Journal had a fascinating science story yesterday: Europe’s First Cattle Farmers Quickly Added Cheese to Menu.

Researchers on Wednesday said they found the earliest known chemical evidence of cheese-making, based on the analysis of milk-fat residues in pottery dating back about 7,200 years. The discovery suggests Europe’s early farmers added a cheese course to their diet almost as soon as they learned to domesticate cattle and started regularly milking cows.

Scientists led by geochemist Richard Evershed at the U.K.’s University of Bristol tested ancient, perforated clay pots excavated at sites along the Vistula River in Poland, and found they had likely been used by prehistoric cheese mongers as strainers to separate curds and whey—a critical step in making cheese.

The pots have long puzzled archeologists, but their new analysis, reported in Nature, revealed unique carbon isotopes of milk in the traces of fatty acids that had soaked into the ceramic sieves.

“It is a no-brainer,” said Dr. Evershed. “They have to be cheese strainers.”

No one knows exactly when or where cheese-making began, but experts said the traces of milk fat on these unglazed clay strainers are the clearest evidence yet of the origins of this basic biotechnology, which launched a dairy trade that today produces more than 11 billion pounds of cheese every year and as many as 5,000 different named varieties world-wide, from Appenzeller to Zamorano.

As a cheese lover, I was very interested to learn about this.

That’s all I have for you today. What are you reading and blogging about?


Saturday Reads: Austerity, Medicare, and Punishing the Baby Boomers

fiscal cliff fix

Good Morning!!

Following on Dakinikat’s post last night, The Austerity Plot, here are some more links about Jonathan Chait’s very very bad recommendation that Obama should cave on raising the Medicare enrollment age.

David Dayen’s reaction was immediate and shrill: Jon Chait’s Miserable Endorsement of Raising the Medicare Eligibility Age.

Let’s look at Chait’s reasoning. I would probably start with the fact that he’s not 64 or 65. My parents are, and until my dad reached Medicare in November, they were paying $2,500 a month on the private market for health insurance. So I’ll be happy to provide him with their phone number so he can tell them how it’s “tolerable” for them to spend two years more than they expected doing that.

But soft! Here are his actual reasons. One, Democrats have to accept concessions (that’s always a good strategic place from which to begin a negotiation!), and the scolds seem to like raising the eligibility age. So let’s give ‘em what they want. This is a bizarrely content-free assertion. The phrase “If Alan Simpson and Erskine Bowles wanted you to jump off the Brooklyn Bridge, would you do it?” springs to mind. Second, he thinks that Republicans will somehow forget that this only raises $100 billion, at most, over 10 years, and will then drop any demands to hit a particular number in the negotiations….

The one thing we know will be a side effect of increasing the Medicare eligibility age is that insurance premiums will skyrocket. It will make Medicare more expensive because they lose relatively healthy 65 and 66 year-olds from their risk pool, and it will make private insurance more expensive because they add relatively sick 65 and 66 year-olds to their risk pool. Insurers hate the idea for just this reason. As a result, everyone’s premiums will rise, and cost-shifting will ensue from the government to its citizens.

The original Shrill One, was even more shrill than usual.

…why on earth would Obama be selling Medicare away to raise top tax rates when he gets a big rate rise on January 1 just by doing nothing? And no, vague promises about closing loopholes won’t do it: a rate rise is the real deal, no questions, and should not be traded away for who knows what.

So this looks crazy to me; it looks like a deal that makes no sense either substantively or in terms of the actual bargaining strength of the parties. And if it does happen, the disillusionment on the Democratic side would be huge. All that effort to reelect Obama, and the first thing he does is give away two years of Medicare? How’s that going to play in future attempts to get out the vote?

As Dakinikat wrote, Beltway Bob immediately accepted Chait’s assessment of the likely “deal,” even though he explained very clearly last night as host of the Rachel Maddow Show that doing this would be insane and counterproductive.

Ed Kilgore defended Chait:

I do think it’s kind of important that progressives allow each other a bit of liberty in discussions about big fiscal issues: after all, even the Right-Wing Noise Machine is in a bit of disarray on the subject at the moment. I know some people think resisting anything that affects Social Security or Medicare benefits is the ultimate Red Line that cannot be crossed. Personally, my own fear is that in defending that Red Line, congressional Democrats will wind up making concessions on Medicaid and other low-income programs that in my opinion are more morally compelling than keeping Medicare precisely the way it is today.

Maybe my fears are misguided, or maybe I just don’t share the obsession of some liberals in keeping Medicare pristine as a potential model for a universal single-payer health care system somewhere in the distant future, even if that means today’s poor folks have to suffer as a lower priority.

Apparently, Kilgore doesn’t understand that millions of poverty stricken elders are on Medicare and that millions of middle class Americans rely on Medicaid for nursing home care in addition to Medicare. It’s not an either/or thing.

Atrios gave Chait the Wanker of the Day Award, and yesterday evening, Chait issued an “acceptance speech” that doubled down on his recommendations for Medicare cuts in a post that I personally found offensive–but then I’m one of those loser 65-year-olds, so what do I know?

I, along with millions of other losers, committed the horrendous crime of being born after WWII ended and thus became part of the despised population bomb called the “baby boom.” Never mind that we didn’t ask to be born when we were and that public officials have known about our huge numbers ever since 1960 at least, the problem is all our fault. Supposedly, Ronald Reagan fixed the problem by having us pay more into the system so that Social Security and Medicare would be there when we got old, but now that is all forgotten because the superrich need more money to sock away in foreign tax havens.

WH_CARTOON_071029

Kenneth Baer and Jeffrey Liebman wrote about it in a NYT op-ed yesterday:

For decades we have known that the retirement of the baby boomers would be a monumental event for the economy. But now that it’s happening, many fiscal policy makers are acting as if the boomers are eternal teenagers and are turning a blind eye to how the boomers’ aging changes how we should approach economic policy. And this affects two of the central issues of the negotiations: how much the government should spend and how we can cut unemployment.

Consider the debate over spending. The Congressional Budget Office projects that if current policies continue, total federal spending will rise to 24 percent of gross domestic product in 2022. Republicans and Washington deficit hawks argue that this means spending is out of control, since over the past 40 years government spending has averaged 21 percent.

Their proposed solution is a cap on government spending as a percentage of the economy. Mitt Romney wanted to cap spending at 20 percent of G.D.P. Senator Bob Corker, Republican of Tennessee, has proposed a cap of 20.6 percent with Senator Claire McCaskill, a Democrat from Missouri. Just this week, Gov. Bobby Jindal of Louisiana, a 2016 Republican presidential aspirant, suggested an 18 percent cap.

These plans ignore the simple fact that you cannot repeal the aging of the boomers. The main reason expenditures are rising this decade is that spending on Social Security, Medicare and Medicaid is increasing by a whopping 3.7 percent of G.D.P. as the baby boomers age and retire. This demographic fact also has been driving increases in disability insurance payments as more knees give way and backs give out.

In addition, policy-makers need to be looking at unemployment differently, according to Baer and Liebman, but are they capable of doing that? Not likely. Read more about it at the link.

rich xmas

In other “news,” on Thursday, Fox News’ Monica Crowley (did you know she has a Ph.D.?!) claimed that Americans committed “national suicide” by re-electing Obama, because now the rich will have to pay more taxes.

“From a conservative perspective, November 6 was a national suicide,” Crowley asserted. “There is a very thin, fine, red line between us and total destruction of the American idea. That thin, red line was the Republican Party. If this party also commits suicide, this will be catastrophic.”
Raw Story (http://s.tt/1wd0V)

Charlie Crist has officially become a Democrat.

Former Republican Governor Charlie Crist announced his official switch from independent to the Democratic Party with a beaming Twitter post Friday night after a Christmas event at the White House.

Posing in a photo with an unidentified woman holding the official Florida voter registration papers, Crist tweeted he was “proud and honored to join the Democratic Party in the home of President @BarackObama!”

I wonder if he’s going to get a job in the administration? Or will he run for governor against Rick Scott?

Finally, Susie Madrak has a must-read post at Crooks and Liars: Obama Cheaps Out On Sandy Recovery to Prop Up Austerity Sham. It’s a quick read, so please go read it at the link.

That’s all I have for today. Now it’s your turn. What’s on your reading list?


Thursday Reads

Einstein reading

Good Morning!

The New York Times has added more fodder for the Republicans’ Benghazi attacks. James Risen Mark Mazzetti and Michael S. Schmidt report that: U.S.-Approved Arms for Libya Rebels Fell Into Jihadis’ Hands.

The Obama administration secretly gave its blessing to arms shipments to Libyan rebels from Qatar last year, but American officials later grew alarmed as evidence grew that Qatar was turning some of the weapons over to Islamic militants, according to United States officials and foreign diplomats.

Of course there’s no evidence that this had anything to do with the Benghazi attacks, but I’m sure that won’t stop Senators McNasty, Huckleberry Closetcase, and their new pal Senator Kelley Ayotte from pretending otherwise.

No evidence has emerged linking the weapons provided by the Qataris during the uprising against Col. Muammar el-Qaddafi to the attack that killed four Americans at the United States diplomatic compound in Benghazi, Libya, in September.

But in the months before, the Obama administration clearly was worried about the consequences of its hidden hand in helping arm Libyan militants, concerns that have not previously been reported. The weapons and money from Qatar strengthened militant groups in Libya, allowing them to become a destabilizing force since the fall of the Qaddafi government.

Also at the NYT, Jared Bernstein once again explains why politicians (and the media) in the Village need to stop obsessing on taxes and start focusing in increasing employment and, along with it, consumer demand.

WITH the budget-and-tax showdown dominating headlines, most Americans probably missed an even more ominous story: according to a report by the Congressional Budget Office, America’s underlying growth rate — that is, the best the economy could do, under optimal conditions, without driving up inflation — has slowed from just under 4 percent a year in 2000 to just under 2 percent today.

Why does this matter? For one thing, the combination of a lower underlying growth rate, which you could think of as the economy’s speed limit, and a less equitable distribution of that growth was a reason middle-income households did so badly and poverty went up in the 2000s.

During the 1990s, in contrast, stronger demand for goods and services led to much faster job growth and the last real gains experienced by middle- and lower-income households. Faster growth in those years also spun off a lot more government revenues, which interacted with slightly higher tax rates to take the budget from deficit to surplus.

Read the whole thing and fantasize what we could be doing if we had smarter leadership in DC.

Back in Republican la-la land, Joel Kotkin at Forbes claims that blue states are committing suicide by supporting raising tax rates on the rich.

With their enthusiastic backing of President Obama and the Democratic Party on Election Day, the bluest parts of America may have embraced a program utterly at odds with their economic self-interest. The almost uniform support of blue states’ congressional representatives for the administration’s campaign for tax “fairness” represents a kind of bizarre economic suicide pact.

Any move to raise taxes on the rich — defined as households making over $250,000 annually — strikes directly at the economies of these states, which depend heavily on the earnings of high-income professionals, entrepreneurs and technical workers. In fact, when you examine which states, and metropolitan areas, have the highest concentrations of such people, it turns out they are overwhelmingly located in the bluest states and regions.

Really? Then how come we did so much better under the Clinton tax rates in the ’90s? After all, that’s all that is happening–except that the first $250,000 of these poor rich people’s money will still be taxed at the Bush rates. But that’s not how Kotkin sees it.

The people whose wallets will be drained in the new war on “the rich” are high-earning, but hardly plutocratic professionals like engineers, doctors, lawyers, small business owners and the like. Once seen as the bastion of the middle class, and exemplars of upward mobility, these people are emerging as the modern day “kulaks,” the affluent peasants ruthlessly targeted by Stalin in the early 1930s.

OMB!! “Wallets…drained!” “Stalin!” Let’s all freak out!

The ironic geography of the Democratic drive can be seen most clearly by examining the distribution of the classes now targeted by the coming purge. The top 10 states with the largest percentage of “rich” households under the Obama formula include true blue bastions Washington, D.C., which has the highest concentration of big earners, Connecticut, New Jersey, Maryland, Massachusetts, New York, California and Hawaii. The only historic “swing state” in the top six is Virginia, due largely to the presence of the affluent suburbs of the capital. These same states, according to the Tax Foundation, would benefit the most from an extension of the much-lambasted Bush tax cuts.

Hey Joel, maybe it’s not all about taxes, even though that’s all that seems to matter to you. Maybe some blue state folks think the whole economy would benefit if more people got back to work, earned some money and spent it–as suggested by Jared Bernstein in yesterday’s NYT (see above).

As Zandar notes, Kotkin then goes on to show how Republicans can use the home mortgage deduction and other methods to punish the blue state richies for voting for Obama.

– Keep the tax rate on capital gains the same.

– Raise income taxes on the top income bracket for 2013, those making $398,350 and up (single filers, married joint filers, or head of household).

– Means-test, or eliminate entirely, the mortgage interest deduction (which benefits taxpayers in areas with the highest real estate values and mortgages – i.e., Hawaii, D.C., New York, California and Connecticut).

– Means-test or eliminate entirely the federal deduction of state and local taxes, which is disproportionately utilized by those in high-tax blue states: “In 2005, taxpayers in California and New York together made up 20 percent of those claiming the deduction and accounted for 30 percent of its value. Itemizers in New York, New Jersey, Connecticut, and California claimed on average over $12,000 per household.”

Talk about a sore loser! Kotkin must be really bitter about Romney’s failure to get those blue state dopes to vote for him.

Meanwhile all those Romney voters in the red states are dreaming about seceding from the union. But if they did, asks The Nation, “Who’d Pay for Their Massive Government Handouts?”

In the wake of Obama’s victory, citizens in several states submitted petitions to secede from the United States. It is something of an irony that the very states seeking secession from “big government”—like Louisiana and Alabama—have been among the top beneficiaries of that selfsame government. Put bluntly, the government would be far smaller without them, and they would seriously struggle far more without it. Indeed, were they to become independent, most would be failed states in need of a bailout. Only this time their benefactor would be not the federal government but the International Monetary Fund, of which the United States is the principal donor. Louisiana and Alabama would go the way of Greece and Spain.

Oh, the irony of it all! And here’s another irony for Republicans to chew on. From TPM: Why Insurers Are Wary Of Raising The Medicare Age

House Republican leaders want to avoid the fiscal cliff with a proposal that would gradually raise the Medicare eligibility age to 67. Democrats are broadly reluctant to cut benefits, but President Obama was willing to accept the policy last year in failed deficit reduction talks with House Speaker John Boehner, and top Democrats have left the door open to including that measure in a grand budget bargain.

It may seem counter-intuitive: why would an industry threatened by government insurance not want it to shrink?

The reason: hiking the Medicare eligibility age would throw seniors aged 65 and 66 off Medicare and into the private market, forcing insurers, who will soon be required to cover all consumers regardless of health status, to care for a sicker, more expensive crop of patients.

“The risk pool issue is important,” the insurance industry source said. “[I]f you add more older and sicker people to the pool, that’s definitely going to have any impact on premiums.”

The policy would save the federal government $113 billion over a decade, according to the Congressional Budget Office. But it achieves that by raising the cost of private insurance: the Kaiser Family Foundation projected that a Medicare age of 67 would raise costs for under-65 patients by an average of $141 in 2014. (In practice it would be phased in.)

Duh!

And even more Republican stupidity: Right wing nutcases are all bent out of shape because their favorite crazy propaganda movie didn’t get any Oscar nominations.

Gerald Molan, the director of the extremely anti-Obama movie, 2016: Obama’s America , is mad that his and Dinesh D’Souza’s film [“2016”] wasn’t on the shortlist of documentaries nominated for an Academy Award.

“The action confirms my opinion that the bias against anything from a conservative point of view is dead on arrival in Hollywood circles,” he complained to the Hollywood Reporter.

It couldn’t possibly have anything to do with the fact that the movie is based on a pack of lies and right wing conspiracy theories, could it?

To cleanse your palate of right wing and DC craziness, try watching this video from NASA that show views of the Earth from space. Here’s a still shot:

new-view-earth-at-night-usa_62009_600x450

So what are you reading and blogging about today? I’ve been a little out of the loop for the past couple of days, so I look forward to clicking on your links!


Tuesday Reads: Delusional Republicans, Complicit Media, and Lots More

off-to-see-the-wizard

Good Morning!!

Yesterday the House Republicans made a so-called “counteroffer” to President Obama’s initial proposal for avoiding the fiscal cliff that basically consists of the Romney/Ryan plan that voters already rejected. The plan called for cutting Medicare by raising the eligibility age to 67, cutting Social Security by change the COLA, and supposedly “raising revenues” without raising rates on the rich–with specifics to be determined next year.

The White House rejected the offer immediately as basically a joke and will not be making a counteroffer, according to CNN’s Jessica Yellin.

Senior administration officials said the offer House Speaker John Boehner submitted to the White House on Monday wasn’t serious enough to merit a counter-proposal from the administration. So the president’s team plans to wait for the GOP to come around on the idea of raising tax rates or let the nation go over the fiscal cliff.

In a statement Monday White House Communications Director Dan Pfeiffer blasted the Republican plan, arguing it “does not meet the test of balance. In fact, it actually promises to lower rates for the wealthy and sticks the middle class with the bill.”

Like Dorothy in The Wizard of Oz, Republicans have gone over the rainbow and have lost touch with reality. They simply can’t accept that they lost the election, and they just aren’t in “Kansas” anymore.

The talk in DC is that the Republicans have talked about a “doomsday plan,” actually another tantrum in which they metaphorically throw themselves down on the House floor screaming and kicking until they get their way. According to ABC News’ Jonathan Karl:

Republicans are seriously considering a Doomsday Plan if fiscal cliff talks collapse entirely. It’s quite simple: House Republicans would allow a vote on extending the Bush middle class tax cuts (the bill passed in August by the Senate) and offer the President nothing more: no extension of the debt ceiling, nothing on unemployment, nothing on closing loopholes. Congress would recess for the holidays and the president would face a big battle early in the year over the debt ceiling.

Two senior Republican elected officials tell me this doomsday plan is becoming the most likely scenario. A top GOP House leadership aide confirms the plan is under consideration, but says Speaker Boehner has made no decision on whether to pursue it.

Under one variation of this Doomsday Plan, House Republicans would allow a vote on extending only the middle class tax cuts and Republicans, to express disapproval at the failure to extend all tax cuts, would vote “present” on the bill, allowing it to pass entirely on Democratic votes.

It’s a mystery what Republicans think they would gain by doing this, so I guess the childish temper tantrum metaphor continues to fit.

What bothers me even more than the Republicans’ nonsensical refusal to accept reality is that the media has apparently decided to go over the rainbow too and pretend that the childish tantrums make some kind of sense. During the presidential campaign, I got the feeling that corporate “journalists” were beginning to face up to reality when they began actually admitting that Mitt Romney’s was telling bald-faced lies with regularity. But no–they’re returned to the default position of pretending that “both sides do it.” A few days ago, Michael Grunwald wrote a great piece about this at Time’s Swampland blog: Fiscal Cliff Fictions: Let’s All Agree to Pretend the GOP Isn’t Full of It.

It’s really amazing to see political reporters dutifully passing along Republican complaints that President Obama’s opening offer in the fiscal cliff talks is just a recycled version of his old plan, when those same reporters spent the last year dutifully passing along Republican complaints that Obama had no plan. It’s even more amazing to see them pass along Republican outrage that Obama isn’t cutting Medicare enough, in the same matter-of-fact tone they used during the campaign to pass along Republican outrage that Obama was cutting Medicare.

This isn’t just cognitive dissonance. It’s irresponsible reporting. Mainstream media outlets don’t want to look partisan, so they ignore the BS hidden in plain sight, the hypocrisy and dishonesty that defines the modern Republican Party. I’m old enough to remember when Republicans insisted that anyone who said they wanted to cut Medicare was a demagogue, because I’m more than three weeks old.

I’ve written a lot about the GOP’s defiance of reality–its denial of climate science, its simultaneous denunciations of Medicare cuts and government health care, its insistence that debt-exploding tax cuts will somehow reduce the debt—so I often get accused of partisanship. But it’s simply a fact that Republicans controlled Washington during the fiscally irresponsible era when President Clinton’s budget surpluses were transformed into the trillion-dollar deficit that President Bush bequeathed to President Obama. (The deficit is now shrinking.) It’s simply a fact that the fiscal cliff was created in response to GOP threats to force the U.S. government to default on its obligations. The press can’t figure out how to weave those facts into the current narrative without sounding like it’s taking sides, so it simply pretends that yesterday never happened.

Dakinikat has written about this repeatedly, of course, but it’s nice to see it in the corporate media for a change.

Speaking of media madness, I don’t watch CNN much anymore but it seems like any time I click by the channel one of two people is on the air–Wolf Blitzer or Erin Burnett. Do they even have any other reporters working there in the afternoon an evening?

What’s the deal with having Erin Burnett covering serious news stories, even foreign policy stories? Burnett’s background is as co-anchor of a show on CNBC as an adviser to Donald Trump on Celebrity Apprentice! She recently “interviewed” Julian Assange and failed to ask him even one significant question.

Unfortunately, I don’t get Current TV, but apparently Cenk Uygur has been criticizing Burnett relentlessly for the past couple of years. Most recently, he accused her of ‘Guarding The Fortress’ By Abetting Gutting Of Medicare. From Mediaite:

“Erin Burnett is someone that represents the rich, powerful, the establishment, in my opinion,” Cenk said, “and you can see it in her CNN reports all the time.”

Cenk set up a clip from Burnett’s show, in which Rep. [Peter] DeFazio explains how deficit reduction can be achieved without gutting Medicare benefits. “Listen to her be incredibly incredulous about this,” he said, before playing a few snippets from OutFront.

“(President Obama) has said ‘Yes, I support raising the age on Medicare from 65 to 67,” Burnett says. “Simpson-Bowles talked about raising the age. Most people do, and say that’s really going to be the only way to get out of this. You really think we don’t have to make real changes, or is that just, I understand your constituents don’t want you to say anything…”

The implication is that DeFazio is opposing the change on nakedly political grounds, and not the merits of the policy.

“That doesn’t deal with the cost of prescription drugs,” Rep. Defazio replied, “and with overpriced and unnecessary medical care.”

“Fair,” Burnett interjects, as the clip cuts ahead to Burnett saying “Interesting point, but I still find it a little bit hard to believe. when you say we don’t have to make substantive change to a program that’s going to consume all of our federal spending if we keep going the way we’re going, we do need to make substantial changes. It’s going to hurt.”

See what I mean? As Dakinkat has said, CNN is trying to compete with Fox News, though not very successfully. But why are they doing it when their ratings keep falling? And why don’t they hire some real reporters?

Have you heard that former Republican presidential candidate Rick Santorum has begun blogging at right wing conspiracy site World Net Daily? According to Raw Story, Santorum’s first post is about a supposed UN conspiracy involving Harry Reid.

In keeping with the WND tradition of promoting various fringe conspiracies, Santorum’s debut column claimed that Senate Majority Leader Harry Reid (D-NV) has an objective of “ceding our sovereignty to the United Nations.”

Santorum warned that a United Nations Convention on the Rights of Persons with Disabilities treaty adopted in 2006 “has much darker and more troubling implications” than to simply improve the treatment of disabled people in other countries.

The staunchly anti-abortion Republican worried that the treaty would “put the government, acting under U.N. authority, in the position to determine for all children with disabilities what is best for them.”

And taking that thought to its absurd conclusion, Santorum suggested that the U.N. treaty would have meant the death of his daughter, who has a rare genetic disorder.

Sigh…

In more serious news, a very sad story this morning: David Oliver Relin, co-author of the book Three Cups of Tea, has committed suicide. Last year I wrote about a 60 Minutes report on the other co-author Greg Mortenson’s fabricated stories in the book. Relin was very disturbed by the revelations and had become deeply depressed, according to the NYT.

David Oliver Relin, a journalist and adventurer who achieved acclaim as co-author of the best seller “Three Cups of Tea” (2006) and then suffered emotionally and financially as basic facts in the book were called into question, died Nov. 15 in Multnomah County, Ore. He was 49.

His family said Mr. Relin “suffered from depression” and took his own life. The family, speaking through Mr. Relin’s agent, Jin Auh, was unwilling to give further details, but said a police statement would be released this week.

In the 1990s, Mr. Relin established himself as a journalist with an interest in telling “humanitarian” stories about people in need in articles about child soldiers and about his travels in Vietnam.

“He felt his causes passionately,” said Lee Kravitz, the former editor of Parade who hired Mr. Relin at various magazines over the years. “He especially cared about young people. I always assigned him to stories that would inspire people to take action to improve their lives.”

Relin obviously had no idea that his co-author Greg Mortenson was a fabulist.

And another sad story from the Times: Homeless Man Is Grateful for Officer’s Gift of Boots. But He Again Is Barefoot. You probably heard about the police officer who recently took pity on a homeless man whose feet were freezing and bought him a pair of $100 boots. Unfortunately the boots put the man’s life at risk.

After Officer Lawrence DePrimo knelt beside a barefoot man on a bitterly cold November night in Times Square, giving him a pair of boots, a photo of his random act of good will quickly took on a life of its own — becoming a symbol for a million acts of kindness that go unnoticed every day and a reminder that even in this tough, often anonymous city, people can still look out for one another.

Officer DePrimo was celebrated on front pages and morning talk shows, the Police Department came away with a burnished image and millions got a smile from a nice story.

But the unnamed homeless man was living in another, more painful reality.

His name is Jeffrey Hillman, and on Sunday night, he was once again wandering the streets — this time on the Upper West Side — with no shoes.

The $100 pair of boots that Officer DePrimo had bought for him at a Skechers store on Nov. 14 were nowhere to be seen.

“Those shoes are hidden. They are worth a lot of money,” Mr. Hillman said in an interview on Broadway in the 70s. “I could lose my life.”

Meanwhile, years of Republican rule in New York City have led to skyrocketing homelessness in the city. From Alternet: How One GOP Plutocrat Helped Make 20,000 Kids Homeless

There are 20,000 kids sleeping in homeless shelters in New York City, according to the city’s latest estimate, a number that does not include homeless kids who are not sleeping in shelters because their families have been turned away. Up to 65 percent of families who apply for shelter don’t get in , and their options can be grim.

“Some end up sleeping in subway trains,” Patrick Markee, senior policy analyst at Coalition for the Homeless, tells AlterNet. “Some go to hospital emergency rooms or laundromats. Women are going back to their batterers or staying in unsafe apartments.”

Families that make it into shelters are taking longer to leave and move into stable, permanent housing. Asked by reporters why families were staying 30% longer than even last year, Mayor Michael Bloomberg said, “… it is a much more pleasurable experience than they ever had before.”

Man, that’s cold. Bloomberg could probably help all those homeless kids with money out of his own pocket and not even notice it, but instead he has banned gifts of food to the homeless even after Hurricane Sandy!

The edict, issued last March by Mayor Bloomberg, is part of a larger move by the city’s Department of Homeless Services (DHS) that dictates serving sizes and other nutritional requirements. These include limits on calorie contents, minimum fiber amounts and condiment recomendations [sic]….

Mayor Bloomberg’s clampdown on food donations can be seen as a greater restriction on New Yorker’s freedom to eat or drink what they want. He banned the sale of sugary drinks larger than 16 ounces last September, baby formula to new mothers in local hospitals last July, smoking in parks and open spaces in May 2011, implemented a plan in January 2010 to cut the amount of salt in packaged and restaurant food, forced fast food restaurants to post calorie content in October 2007, and forbid restaurants from using trans fats in cooking oils in 2006.

Real human beings are cold and hungry, and Bloomberg is worried about calorie control and nutritional requirements!

Uh-oh. This post has gotten way too long and I’m way to late in putting it up, so I’ll end on this down note. I hope you’ll have some more upbeat stories to share in the comments.


Fiscal Policy Dysfunction and Fallacy

fiscal cliffIt’s hard to take anything Republicans say seriously any more given that their arguments are not data-, fact- or theory-driven.  There’s a lot of discussion by the media that seems to project this idea that our spending is out-of-control that embraces complete untruths spread by Republicans.  Just because something is said consistently by one party doesn’t mean it’s correct or just another point of view.  There needs to be some adults in the media these days that point out that just because the republicans say the sky is green doesn’t make that a theory, a fact, or even a remote possibility.  It just takes a few charts and well-placed questions.  Like why are you worried about “out-of-control spending” when … then show these two graphs.  Data shows just the opposite of Republican talking points.

Much can be said of this fiscal “cliff” hooplah.  Most of it has to do with the degree of economic illiteracy omnipresent in the TV commentariat and the Republican office holder. Spend some time with economists and you’ll see data rejecting Republican ideological claims over and over again.

As Jed Graham points out:

From fiscal 2009 to fiscal 2012, the deficit shrank 3.1 percentage points, from 10.1% to 7.0% of GDP.  That’s just a bit faster than the 3.0 percentage point deficit improvement from 1995 to ’98, but at that point, the economy had everything going for it.

Other occasions when the federal deficit contracted by much more than 1 percentage point a year have coincided with recession. Some examples include 1937, 1960 and 1969.

In short, we do not face a serious problem of growing government deficits.  Rather the problem is one of too fast a reduction in the deficit in light of our slowing economy.

As to the challenge of the fiscal cliff—here we have to recognize, as Josh Bivens and Andrew Fieldhouse explain, that:

the budget impact and the economic impact are not necessarily the same. Some policies that are expensive in budgetary terms have only modest economic impacts (for example, the 2001 and 2003 tax cuts aimed at high-income households are costly but do not have much economic impact). Conversely, other policies with small budgetary costs have big economic impacts (for example, extended unemployment insurance benefits).

In other words, we should indeed allow the temporary tax rate deductions for the wealthy to expire, on both income and capital gains taxes.  These deductions cost us dearly on the budget side without adding much on the economic side.  As shown here and here, the evidence is strong that the only thing produced by lowering taxes on the wealthy is greater income inequality.

Letting existing tax rates rise for individuals making over $200,000 and families making over $250,000 a year, raising the top income tax bracket for both couples and singles that make more than $388,350, and limiting tax deductions will generate close to $1.5 trillion dollars over ten years  …

Yet, poor delusional Republican policy makers continue to run around screaming about the sky falling down.  Poor John Boehner seems simply out of touch with reality.  Cross check this statement with the data I provided above.

Boehner said the reason negotiations are going so poorly is that Obama administration officials – in particular, Treasury Secretary Tim Geithner – aren’t taking Republicans seriously. Boehner said he was shocked at Geithner’s proposal to Republicans last week.

“I was flabbergasted. I looked at him and I said, ‘You can’t be serious.’ I’ve just never seen anything like it,” Boehner said.

Geithner has said his plan included cuts to Medicare and additional stimulus spending, but also an expiration of Bush-era tax cuts to those making over $250,000 a year. Furthermore, the proposal included the closing of some loopholes and new limits on deductions, as well as an increase in the estate tax rate and taxes on capital gains and dividends.

Boehner acknowledged that President Barack Obama won the election on a platform that in part was based on increasing taxes for those making over $250,000. This is a major sticking point in negotiations, and Boehner said the president must compromise with the GOP.

“They won the election, (but) they must have forgotten that Republicans continue to hold the majority in the House. But the president’s idea of a negotiation is, ‘Roll over and do what I ask,'” Boehner said.

While Boehner admitted that going over the fiscal cliff would be detrimental to the economy, he said out-of-control spending is mortgaging the future of the next generation and must be reined in. Accordingly, the speaker said going over that cliff is a distinct possibility.

“I’m determined to solve our debt problem. We have a serious debt problem and it is going to be dealt with,” Boehner said.

non-security-disc-levels

NSD = non security discretionary

So, should any one with even an inkling of knowledge on the economy and finance take anything the Republicans seriously? Well, my answer is no. Not unless you’re only agenda is too see the ultrarich get richer and the economy fall apart as no one else has any money to spend. Boehner’s appearance on Dancing Dave’s Disco Party today was so pathetic that Senator McCaskill nearly threw a pity party for him.

Sen. Claire McCaskill (D-MO) said that she feels “almost sorry” for House Speaker John Boehner during an appearance on NBC’s “Meet the Press” Sunday, explaining that Boehner is in a tough spot because of the far-right wing of the Republican Party.

“I feel almost sorry for John Boehner,” McCaskill said. “There is incredible pressure on him from a base of his party that is unreasonable about this. And he’s gotta decide, is his speakership more important, or is the country more important. And in some ways, he has got to deal with this base of the Republican Party, who Grover Norquist represents.”

Meanwhile, outgoing Treasury Secretary Tim Geithner got to play the mean adult in the media room.

In an interview with CNN’s Candy Crowley on “State of the Union,” Geithner insisted that any compromise on the plan he presented to congressional Republicans on Thursday, which includes $1.6 trillion dollars in tax revenue, cuts to Medicare, and another $50 billion in stimulus spending, must contain an expiration of the Bush tax cuts for income over $250,000.

“There’s not going to be an agreement without rates going up,” Geithner said in the interview, which aired Sunday. “If they are going to force higher rates on virtually all Americans because they’re unwilling to let tax rates go up on 2 percent of Americans, then, I mean that’s the choice they’re going to have to make.”

While he maintains the administration will refuse any deal without the tax hikes, Geithner was optimistic about the negotiations, showing room for compromise as well.

“It’s a very good plan and we think it’s a good basis for these conversations,” he said. “What we did is put forward a very comprehensive, very carefully designed mix of savings and tax rates to help us put us back on a path to stabilizing our debt, fixing our debt and living within our means.”

The fiscal cliff, which begins in January if Congress and the administration fail to come to an agreement over a number of spending issues, includes automatic reductions in defense and non-defense spending, the end of the payroll tax holiday, and the expiration of extended unemployment benefits.

Paul Krugman points out that Boehner is only “serious” about getting at the budget when it hurts regular people.

In particular, the Obama administration’s call for higher revenue through increased taxes on high incomes — which actually goes considerably beyond just letting the Bush tax cuts for the top end expire — gets treated with an unmistakable sneer in much political discussion, as if it were a trivial thing, more about staking out a populist position than it is about getting real on red ink.

On the other hand, the idea of raising the age of Medicare eligibility gets very respectful treatment — now that’s serious.

So I thought I’d look at the dollars and cents — and even I am somewhat shocked. Those tax hikes would raise $1.6 trillion over the next decade; according to the CBO, raising the Medicare age would save $113 billion in federal funds over the next decade.

So, the non-serious proposal would reduce the deficit 14 times as much as the serious proposal.

I guess we have to understand the definition of serious: a proposal is only serious if it punishes the poor and the middle class.

The newest Republican emanation of Snowflake Snookie says it’s not serious.  Why is this woman getting so much media attention? WTF does she bring to the table?

Sen. Kelly Ayotte (R-N.H.) said Sunday she was “disappointed” with President Obama’s proposal to avoid the “fiscal cliff” at the end of the year.

“We want to solve this and I think the Speaker earnestly wants to solve it. I was disappointed by the president’s initial proposal here,” she said on CNN’s “State of the Union.”

On Thursday, Treasury Secretary Timothy Geithner presented lawmakers with the administration’s initial offer, which included $1.6 trillion in tax increases, $50 billion in economic stimulus spending and $400 billion in spending cuts. It would also give the president the power to raise the debt ceiling in the future without congressional approval.

Republican leaders in Congress have rejected the proposal, with Speaker Boehner (R-Ohio) calling it “not serious.”

Ayotte is yet another attorney whose claim to fame is suing Planned Parenthood because the parental notification law passed by New Hampshire was found unconstitutional.  My guess is the right loves her because she’s willing to do the old white dude’s dirty work fighting women’s rights.  She also refused to prosecute mortgage fraud cases in her role as attorney general.   Ayotte is a climate change denier and opposes marriage equality.  She’s a real piece of work in a suited skirt and I really wish the press would stop making her look reasonable because she’s not reasonable on any policy issue.  She’s basically Paul Ryan in a skirt. They’re both ideologues that let dogma rule their thought processes.  I doubt either of them can do calculus let alone handle a real economic or financial model.

I feel like I keep writing a lot of the same things, but here goes.  There’s no “cliff”.  There’s no “budget crisis”.  There’s only the increased risk of falling back into a recession should these things not be resolved at all.  Frankly, I’m glad to see the Obama administration play a little poker for a change.  The Republicans should be allowed to twist themselves into knots as long as possible.  The economy is improving and this situation will not create a jolt at all.  The only thing that might happen is stock market correction at the beginning of the year and the talk of another debt downgrade.  Considering that the world still wants our debt, I’m not even worried about that much any more.

This is really ridiculous.  The Republican Party and the media need to grow up and learn something about how our economy works.  It’s ridiculous to see policy and policy discussions held hostage to this much stupidity.  Nearly every student that comes out of Macroeconomics 101 knows that rich people don’t spend as much of their income as poor and middle class.  These days the rich invest and hide their money all over the world.  Study-after-study shows that increasing the tax rates on the rich won’t hurt the economy. That’s not true of money taken from the poor, working and middle class.  Yet, today we heard this from Boehner:

On Fox News Sunday, John Boehner said it doesn’t matter where new revenue comes from, but he ruled out raising taxing on the rich, which leaves the poor and middle class to foot the bill.

Here is a transcript of the exchange between Chris Wallace and John Boehner on Fox News Sunday,

CHIRS WALLACE: You talked about the fact that the President won and you came out with a concession the day after the election and they point out that the president campaigned on raising tax rates, you know, and it was the big issue, between him and Romney, and, they say, just as he had to cave, after your victory, in the 2010 midterms, now, it is your turn to cave on tax rates.

JOHN BOEHNER: Listen, what is this difference where the money comes from? We put $800 billion worth of revenue, which is what he is asking for, out of eliminating the top two tax rates. But, here’s the problem, Chris, when you go and increase tax rates, you make it more difficult for our economy to grow, after that income, the small business income, it is going to get taxed at a higher rate and as a result we’re gonna see slower economic growth, we can’t cut our way out of this problem, nor can we grow our way out of the problem, we have to have a balanced approach and what the President wants to do will slow or economy at a time when he says he wants the economy to grow and create jobs.

What Boehner was implying here was the Romney/Ryan tax plan. There aren’t enough loopholes to be closed in order to generate the revenue need, and if taxes aren’t going to be raised on the wealthy, who is going to pick up the tab? Some House Republicans are suggesting that we adopt Ryan’s plan of putting a cap on deductions, which would absolutely destroy the incentive for charitable giving.

Why do they keep clinging to the same stuff that’s never worked and that voters rejected in the election?  Are they insane?