Obama Caves on Vetoing Short-Term Debt Limit Increase

So what else is new? After all his tough talk and veto threats, President Obama is now willing to do what Eric Cantor proposed last week–sign a short-term increase in the debt limit. From Politico:

President Barack Obama would support a short-term extension of the debt limit if Democrats and Republicans reach agreement on a broader deficit-cutting deal but need more time to move it through Congress, White House Press Secretary Jay Carney said Wednesday.

The White House later clarified that the extension would only be for a few days. Like the Libya effort was only going to last a couple of weeks?

Obama is now pushing the “gang of six” plan which, as David Dayen points out, consists of a bunch of vague recommendations that would need to be fleshed out after the plan passes. Can you say “pig in a poke?”

Back to Politico:

The president has repeatedly told congressional leaders that he would veto any short-term debt extensions, saying once that the country is not a “banana republic” that can live in constant fear of default.

Carney said the president’s position on that point has not changed.

“We are not wavering on the president’s absolute assertion that he won’t sign a … series of provisions that temporarily or in a limited fashion raise the debt limit,” Carney said, because it is bad for the economy and sends the wrong signal to the world.

Obama would not sign an extension “without an agreement on something big, a firm commitment on something big,” Carney said.

Yeah, right. Let’s face it. The President is a wimp, and the Republicans know it.


Thursday Reads

Good Morning!! The big news is still the deadlocked debt ceiling talks. There will be another meeting of the squabbling children tomorrow afternoon. Frankly, I’m hoping for some serious fireworks.

Meanwhile, Eric Cantor is grabbing points with the Tea Party, but everyone else is laughing at him. Check this out from Joe Klein (yes, he’s an idiot, but the Villagers listen to him):

David Rogers over at Politico, who has been doing this–extremely well–for about as long as I have, has word that the President of the United States monstered down on Representative Eric Cantor in Wednesday’s deficit ceiling squabble. This is so refreshing on so many levels. Cantor has been using this crisis to undermine his leader John Boehner, by playing the Tea Party/Grover Norquist recalcitrance card. The boy badly needed someone to get up in his face and Barack Obama, of all people, apparently did, telling Cantor, in no uncertain terms, that he’d veto any short term deficit ceiling fix or, indeed, any plan that did not include revenue increases. Then Obama walked out, or the meeting ended, depending on whom you talk to.

So what we have now is the Republican party in, yes, disarray–a word used to describe Democrats almost exclusively, back in the day before the crazies took over the GOP store. You have Cantor and the House Teasies opposing any revenue increases, including a tax loophole closing plan that Ronald Reagan and Edmund Burke would have smiled upon. You have Boehner, struck dumb apparently, after his attempt at bipartisan statesmanship with the President was greeted by tossed shoes and catcalls from the Teasies. You have Mitch McConnell, well, I’m speechless about Mitch McConnell…

Here’s this Kentucky dude whose every action, before Tuesday, painted him as one of the most cynical operators we’ve seen on Capitol Hill since Pitchfork Ben Tillman–and now, suddenly, he’s gone all rational on us, chiding his Republican forces (that means you, Eric) about leading the party to the electoral slaughterhouse if they don’t take this debt ceiling business seriously. He has proposed to place the responsibility for raising the debt ceiling solely on the President and let Obama run with that. This is looking more likely today than it did yesterday.

Jonathan Allen at Politico suggests that Cantor is overreaching.

As he has surged to the forefront of debt-limit negotiations and faced round-the-clock scrutiny on cable and radio talk shows, a fundamental question about House Majority Leader Eric Cantor’s high-stakes political maneuvering is being discussed in the halls of power.

Is he building street cred with House Republicans or overplaying his hand?

The answer may be both. Cantor’s allies note that he’s been put in the spotlight by assignment — from Speaker John Boehner and President Barack Obama — not by choice. And they say he has gained political capital within the GOP conference.

Cantor has a lot riding on the outcome of the debt-limit negotiations. He’ll share in the public blame if they fall apart and the economy tanks, and he’ll face recriminations from his conservative base in the House if he cuts too soft a deal with the president.

At The New Republic, Jonathan Chait explains why “The Republican Crazy Is Not An Act.” Please don’t miss it.

John Boehner says working with the White House over the debt ceiling has been like “dealing with Jello,” whatever that means.

“Dealing with them the last couple months has been like dealing with Jell-o,” Boehner said. “Some days it’s firmer than others. Sometimes it’s like they’ve left it out over night.”

Boehner explained that talks broke down over the weekend because, he said, the president backed off entitlement reforms so much from Friday to Saturday, “It was Jell-o; it was damn near liquid.”

“By Saturday, they’d spent the previous day and a half just going backwards” on reforming entitlement programs such as Social Security, Medicare and Medicaid.

“The only thing they’ve been firm on is these damn tax increases,” the Speaker said.

I have no idea what he’s trying to say. Maybe he’s been spending too much time in the tanning salon.

The Villagers will keep on bickering, but real people are suffering out in the real world. There has been another terrible attack in Mumbai.

The blasts that rocked Mumbai killing 18 people and injuring 131 was a “coordinated terror attack” but officials have not singled out a group behind them, India’s home minister said Thursday….Three bomb blasts rocked India’s largest city in congested areas during the evening rush hour Wednesday.

The attackers used ammonium nitrate with a timer mechanism based on forensic evidence collected from the blast sites…

In Minnesota, the state government shut down two weeks ago because of lack of funds, and it is causing bars to shut down because they can’t renew their licenses.

By Wednesday, hundreds of bars, restaurants and liquor stores across Minnesota already had been stopped from buying new inventory due to expired permits the state has not renewed.

MillerCoors, the second largest brewer in the United States, failed to get its license to sell 39 brands in Minnesota renewed before a government shutdown over a budget impasse began with the new fiscal year on July 1.

“Without that brand label registration, their distribution and sales aren’t allowed to continue,” Doug Neville, a state public safety department spokesman, said on Wednesday.

From Bloomberg:

The stalemate, the longest of the nation’s six state government shutdowns since 2002, began July 1 after Democratic Governor Mark Dayton and Republican legislative leaders failed to resolve an impasse about how to address a $5 billion budget deficit. Republicans want spending cuts alone, and Dayton is pushing for taxes to preserve services.

Dayton yesterday traveled to Rochester, which is home of the Mayo Clinic, and Albert Lea, about 10 miles (16 kilometers) from the Iowa border, to meet with people with disabilities and senior citizens to “discuss what is at stake in the state budget,” according to an e-mail from his office.

Meanwhile, legislative Republicans sent out an e-mail with charts showing the impact of the shutdown on areas including schools and parks in those two cities. It didn’t mention a booze drought.

Although businesses can sell alcohol with city liquor licenses, they can’t purchase new product without the state buyer’s card, Neville said in a telephone interview from St. Paul. Cards for 300 of 10,000 businesses have expired since the shutdown began July 1, and that will increase to 424 by the end of the month, Neville said.

Walter Shapiro writes that the whole thing is really Tim Pawlenty’s fault.

In addition to irrational politics and the state’s tradition of moralism, Pawlenty shares in the blame for Minnesota’s budgetary woes. And the GOP presidential candidate knows his financial stewardship is on the line: Late in the evening of June 30—just minutes before the Minnesota government officially shut down because of a budgetary impasse—Pawlenty held a hastily scheduled press conference at the Minneapolis-St. Paul Airport to try to shield himself from political attack over the shut-down. “Both in Washington, D.C., and in St. Paul, the Democrats continue their thirst for more spending and more taxes,” Pawlenty said in a boilerplate critique of his successor. “That’s not the right direction for Minnesota, and it’s not the right direction for our country.”

What the rhetorical onslaught was designed to hide was that, in truth, Pawlenty—like many governors in both parties juggling the books in the midst of the severe downturn—practiced budgetary legerdemain to avoid a statutorily forbidden deficit before he left office in January. Of course, it was hypocritical for Governor Pawlenty to eagerly bank $2.3 billion in federal stimulus money while Politician Pawlenty was denouncing Barack Obama for spending it. But, for all the partisan talking points over Pawlenty’s budgetary record, it strains credulity to believe that conservative GOP voters will blame him because Republicans in the Minnesota legislature held the line against a Democratic governor. In fact, Dayton may have caused more political mischief for Pawlenty with a recent unsuccessful proposal to help end the budgetary wars. Instead of his proposed 2 percent income-tax surcharge on millionaires, Dayton suggested that he could also accept a dollar-a-pack increase in the state cigarette tax. His purported inspiration: Pawlenty’s 2005 acceptance of a 75-cent-a-pack wholesale tax increase under the transparent guise of a Health Impact Fee. Undoubtedly relishing every moment, Dayton declared, “Governor Pawlenty even agreed to a cigarette tax increase. So there’s precedent for that.”

But, beyond the narrow implications for Pawlenty’s political fate, the broader national message from Minnesota is how easy it is for both parties to step off the cliff, heedless of the consequences. Already, there is talk that the government shutdown could last for months.

Will other states follow suit?

Finally, The Freedom From Religion Foundation (FFRF) is suing Texas Governor Rick Perry over a religious rally he is planning to hold in Houston in early August.

Perry proclaimed August 6 as a “Day of Prayer and Fasting for our Nation to seek God’s guidance” and invited governors from across the nation to join his Christian prayer summit at Reliant Stadium.

“Given the trials that beset our nation and world, from the global economic downturn to natural disasters, the lingering danger of terrorism and continued debasement of our culture, I believe it is time to convene the leaders from each of our United States in a day of prayer and fasting, like that described in the book of Joel,” Perry said in June.

The legal complaint asks the federal court to declare unconstitutional Perry’s organization, promotion and participation in the event because it violates the Establishment Clause of the First Amendment.

It says Perry’s active participation in the event violates the U.S. Constitution by “giving the appearance that the government prefers evangelical Christian religious beliefs over other religious beliefs and non-beliefs, including by aligning and partnering with the American Family Association, a virulent, discriminatory and evangelical Christian organization known for its intolerance.”

That should be a fun story to follow.

So… what are you reading and blogging about today?


Late Night: Moody’s Reviewing Downgrade of U.S. Credit Rating; Obama Slaps Down Eric Cantor.

Eric Cantor

Bloomberg:

The U.S., rated Aaa since 1917, was put on review for the first time since 1995 on concern the debt threshold will not be raised in time to prevent a missed payment of interest or principal on outstanding bonds and notes even though the risk remains low, Moody’s said in a statement yesterday. The rating would likely be reduced to the Aa range and there is no assurance that Moody’s would return its top rating even if a default is quickly cured.

President Barack Obama is considering summoning congressional leaders to Camp David this weekend to work on a plan to raise the debt ceiling after yesterday’s negotiations on a deficit-cutting plan of at least $2 trillion stalled, according to two people familiar with the matter. A failure to raise the debt limit that causes a default may lead to slower economic growth and another financial crisis.

“It’s obviously very serious in so many different ways,” said James Caron, head of U.S. interest-rate strategy at Morgan Stanley in New York, one of 20 primary dealers that trade bonds with the Federal Reserve. “Most people still believe there will be some type of an agreement struck to avoid all this stuff, and that’s what the market’s banking on.”

Meanwhile, according to the NYT, Fed Chairman Ben Bernanke

warned on Wednesday of a “huge financial calamity” if President Obama and the Republicans cannot agree on a budget deal that allows the federal debt ceiling to be increased. Moody’s, the ratings agency, threatened a credit downgrade, citing a “rising possibility” that no deal would be reached before the government’s borrowing authority hits its limit on Aug. 2.

The one piece of good news is that President Obama may be finally waking up to the reality that Republicans are totally insane and there is no point in negotiating with them.

the latest bipartisan negotiating session on Wednesday evening ended in heightened tension, if not outright discord. Republicans said Mr. Obama had abruptly walked out in an agitated state; Democrats described the president as having summed up with an impassioned case for action before bringing the meeting to a close and leaving.

Politico has a better description of what happened–basically, Obama told lit into Eric Cantor and brought him up short for once.

When Cantor said the two sides were too far apart to get a deal that could pass the House by the Treasury Department’s Aug. 2 deadline — and that he would consider moving a short-term debt-limit increase alongside smaller spending cuts — Obama began to lecture him.

“Eric, don’t call my bluff,” the president said, warning Cantor that he would take his case “to the American people.” He told Cantor that no other president — not Ronald Reagan, the president said — would sit through such negotiations.

That’s Cantor’s version. Democratic sources said that

“Cantor’s account of tonight’s meeting is completely overblown. For someone who knows how to walk out of a meeting, you’d think he’d know it when he saw it,” a Democratic aide said. “Cantor rudely interrupted the president three times to advocate for short-term debt ceiling increases while the president was wrapping the meeting. This is just more juvenile behavior from him and Boehner needs to rein him in, and let the grown-ups get to work.”

Now here’s the kicker:

“Obama lit him up. Cantor sat in stunned silence,” said an official in the meeting. “It was incredible. If the public saw Obama he would win in a landslide.”

Maybe Obama really does have some balls guts? Maybe it just took a snot-nosed squirrely creep like Cantor to get a rise out of him. It does seem that for once Obama has managed to force the Republicans into a corner by offering cuts in Medicare and Social Security and then threatening not to write checks in August.

Stay tuned. There will be more discussions at the White House tomorrow afternoon. Maybe it’s time for Obama to do the the Chicago way. The heck with bipartisanship–time for some major arm-twisting. Just raise the frickin’ debt ceiling and be done with it.


Tuesday Reads: Cantor’s Conflict, Libertarian Cruelty, bin Laden’s DNA, and a Cold Case Solved

Good Morning!! I’ll take my coffee iced today, because it’s hotter than hell here in the Boston area. And about 110 percent humidity. OK, let’s get to the news.

The Washington Post has a laudatory profile of House Majority Leader Eric Cantor and his refusal to negotiate on raising the Federal debt ceiling–without ever mentioning that Cantor stands to make lots of money if the U.S. defaults on its debts.

Last month, Cantor walked out of talks led by Vice President Biden. Cantor said the reason was Democrats’ insistence on raising taxes as part of a deal to increase the national debt ceiling.

Then, last week, Cantor urged House Speaker John A. Boehner (R-Ohio) to reject a possible “grand bargain” with President Obama, which could have included tax increases. Boehner pulled Republicans out of those talks.

Now, as Cantor joins other leaders at the White House for near-daily summits in the third different grouping of negotiators, his moves have revealed him as a third major player in a legislative drama that had been dominated by Obama and Boehner. Where Boehner has sought to define what Republicans can do with their newfound power, Cantor, the House’s ambitious number-two, wants to underline what Republicans would never do.

So what is Cantor’s negotiating strategy?

On Monday, with a potential default less than a month away, Cantor was asked to identify compromises that Republicans had offered to help negotiations along.

He told reporters that the negotiation itself was a compromise.

“I don’t think the White House understands how difficult it is for fiscal conservatives to say they are going to vote for a debt-ceiling increase,” Cantor said.

Gee, it wasn’t all that hard to increase the debt ceiling again and again under Bush, now was it? But maybe in those days Cantor wasn’t betting against the U.S. in his financial investments. It’s very troubling that the Post didn’t mention Cantor’s humongous conflict of interest.

According to a new Washington Post-Pew poll, increasing numbers of Americans are “very concerned” about a U.S. default, but they are also “concerned” that raising the limit will lead to out-of-control spending.

The twin, divergent, concerns complicate the political calculus for the White House and congressional leaders as they attempt to strike an agreement. Nearly eight in 10 Americans are worried about raising the debt limit, and about three-quarters are concerned about not doing so.

Asked to choose, 42 percent see greater risk in a potential default stemming from not raising the debt limit, a seven-point increase from a Post-Pew poll six weeks ago. Slightly more, 47 percent, express deeper concern about lifting the limit, but the gap has narrowed.

Sixty-six percent of Republicans worry more about raising the debt limit than the U.S. defaulting on its debts. {sigh…}

Hipparchia has a wonderful post at Corrente that is an extended metaphor for libertarian attitudes about health care, specifically in reaction to the writings of a libertarian from the CATO Institute, Michael F. Cannon on the new Oregon health care plan. Here is the relevant quote from Cannon that set her off.

Michael F Cannon, of Cato@Liberty :

The OHIE establishes only that there are some (modest) benefits to expanding Medicaid (to poor people) (after one year). It tells us next to nothing about the costs of producing those benefits, which include not just the transfers from taxpayers but also any behavioral changes on the part of Medicaid enrollees, such as reductions in work effort or asset accumulation induced by this means-tested program. Nor does it tell us anything about the costs and benefits of alternative policies.

Reduction in work effort?? This would be really funny if Cannon weren’t so deadly serious. Providing health care to poor people means that more of them are just going to spend their days hanging out in parks, yakking on their cell phones , I guess. So, Libertarians are in favor of liberty for themselves and wage slavery for anybody else. Good to know.

Please go read the whole thing if you have time. It’s well worth the effort. We live in a world of selfish, greedy narcissistic fops. How can the country survive them?

Joseph Cannon has a short but pithy post on the media’s obsession with Casey Anthony being found not guilty. He then points out that the media has completely ignored the fact that

In 1995, when the Presidency was in the hands of the despised Bill Clinton, government regulators overseeing skullduggery on Wall Street referred 1,837 cases to the Justice Department for prosecution. That number has gone down. Between 2007 and 2010, the Justice Department has received just 72 referrals a year (on average).

Gosh. How can this be? I guess investment bankers are simply more honest than they used to be.

You won’t see this issue discussed on CNN. It’s not newsworthy.

I did not know that. Thank you Joseph Cannon. F&ck you CNN (and HLN and Nancy Grace).

Here’s an interesting story from The Guardian UK: CIA organised fake vaccination drive to get Osama bin Laden’s family DNA

As part of extensive preparations for the raid that killed Bin Laden in May, CIA agents recruited a senior Pakistani doctor to organise the vaccine drive in Abbottabad, even starting the “project” in a poorer part of town to make it look more authentic, according to Pakistani and US officials and local residents.

The doctor, Shakil Afridi, has since been arrested by the Inter-Services Intelligence agency (ISI) for co-operating with American intelligence agents.

Relations between Washington and Islamabad, already severely strained by the Bin Laden operation, have deteriorated considerably since then. The doctor’s arrest has exacerbated these tensions. The US is understood to be concerned for the doctor’s safety, and is thought to have intervened on his behalf.

The vaccination plan was conceived after American intelligence officers tracked an al-Qaida courier, known as Abu Ahmad al-Kuwaiti, to what turned out to be Bin Laden’s Abbottabad compound last summer. The agency monitored the compound by satellite and surveillance from a local CIA safe house in Abbottabad, but wanted confirmation that Bin Laden was there before mounting a risky operation inside another country.

DNA from any of the Bin Laden children in the compound could be compared with a sample from his sister, who died in Boston in 2010, to provide evidence that the family was present.

Jeralyn at Talk Left has finally decided that Obama deserves to get a pink slip. Yes, I know, she should have known better. But please go read anyway.

I’m going to end with a story about a long ago murdered child and how the case has been solved–54 years later. Maria Ridulph disappeared in 1957 when she was 7 years old. Maria and her best friend Kathy were playing on the street one day.

Kathy Chapman, who was 8 at the time, recalled that she and Maria were under a corner streetlight when a young man she knew as “Johnny” offered them a piggyback ride. Chapman, now 61 and living in St. Charles, Ill., told the AP she ran home to get mittens and that when she returned, Maria and the man were gone.

Maria’s disappearance and death had a powerful effect on her small community.

Charles “Chuck” Ridulph always assumed the person who stole his little sister from the neighborhood corner where she played and dumped her body in a wooded stretch some 100 miles away was a trucker or passing stranger — surely not anyone from the hometown he remembers as one big, friendly playground.

And, after more than a half century passed since her death, he assumed the culprit also had died or was in prison for some other crime.

On Saturday, he said he was stunned by the news that a one-time neighbor had been charged in the kidnapping and killing that captured national attention, including that of the president and FBI chief. Prosecutors in bucolic Sycamore, a city of 15,000 that’s home to a yearly pumpkin festival, charged a former police officer Friday in the 1957 abduction of 7-year-old Maria Ridulph after an ex-girlfriend’s discovery of an unused train ticket blew a hole in his alibi.

Maria Ridulph

From the Seattle Times:

A judge in Seattle set bail Monday at $3 million for Jack Daniel McCullough, of Seattle, a former police officer who denies he is the man Illinois police have been seeking in the 1957 slaying of a young girl….

McCullough, 71, a former police officer in Milton and Lacey, has been living in North Seattle and working as a night watchman in a senior-housing facility, Four Freedoms.

McCullough, 18 at the time of the girl’s death, had been a suspect early in the investigation. He lived about a block from where the girl disappeared and matched the description of a man seen at the site.

At the time, police did not show Maria’s best friend Kathy a picture of their suspect. But last year, they showed her a picture of the teenaged McCullough (then using the last name Tessier) and she recognized him.

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


Let’s hear it for the “Emily’s List” candidate: Kathy Hochul wins NY-26

Kirsten Gillibrand campaigning for Kathy Hochul at a rally this past Saturday.

With over 60% reporting and Hochul holding onto her lead, lots of people calling it for Hochul:

@fivethirtyeight: Dave Wasserman (@Redistrict) has called it for Hochul. Good as done. #ny26

Another great tweet:

@thepeoplesview: First Republican electoral casualty of Paul Ryan’s Kill-Medicare plan: Kathy Hochul wins in NY-26! Hee!

As I noted in my post earlier tonight, in a move signaling how weak the GOP is, their candidate Jane Corwin obtained a court order blocking a certification of the winner tonight… it looks like we’ll have to wait until Thursday or so, but let the celebrating begin… here’s hoping this is a huge blow to DC and the Austerity crowd.

It was after all Kirsten Gillibrand, and not DC Dems, who saw the opening in NY-26 and campaigned hard for Kathy Hochul…via the Hill:

Sen. Kirsten Gillibrand (D-N.Y.) has emerged as one of the most prominent supporters of New York House candidate Kathy Hochul.

Washington Democrats have been keeping their distance from Hochul, the party’s nominee in the May 24 special election for former Rep. Chris Lee’s (R-N.Y.) seat. Meanwhile, Republicans leaders including Rep. Pete Sessions (Texas) and Speaker John Boehner (Ohio) have lent their backing to the GOP nominee, Jane Corwin.

Gillibrand, a former upstate congresswoman, sent a fundraising pitch on Hochul’s behalf and teamed with the pro-choice group EMILY’s List to urge activists to lend their support.

“Kathy is an extraordinary candidate,” Gillibrand said Tuesday during a Web forum hosted by EMILY’s List. “I know she can win this race.”

This just reminds me of all the attacks on Coakley and Emily’s List during the Scott Brown race… as I said then, “In Defense of the Emily’s List Candidate”:

Emily’s List produced a winning primary candidate (they backed the candidate who won the popular vote in the 2008 primaries too for that matter). It’s the Obama Era of the Democratic party that has created bad electoral conditions for Democratic nominees and made it difficult for liberals to stand on principle. (Even the socialist in the U.S. Senate voted for Obama’s health insurance scam. Way to discredit the right-wing canard that Obama’s terrible policies are synonymous with socialism.)

The one surefire way to avoid becoming the target of local backlash against Obama is to run against Obama’s policies–and in today’s environment where the activist left is split up along deep fault lines (“submit to party unity or else you’re a certain class of politician, voter, or woman”), Democratic nominees do not have the benefit of a ready-made independent fundraising network to take on the Obama machine during a general election yet. Of course they could try to build one, but either way it is an uphill battle and there is no easy path to victory whatever they choose.

This race was somewhat different in that Hochul could run against the GOP’s toxic Ryancare rather than against Obamacare, but when you hear all the spin tonight and the Dem machine taking credit for Hochul’s win, remember that it was Kirsten Gillibrand and Emily’s List who shored up Kathy Hochul, not Washington Dems, who were too afraid to get behind Hochul.

The “Emily’s List” candidate won in the very red district of NY-26!

Congrats to Kathy, and Kirsten for president!

Hochul’s win tonight also makes Eric Cantor’s and Jonah Goldberg’s push for Paul Ryan to run for president (not to mention Charles Krathammer’s “Draft Paul Ryan” noises from a month ago) all the more ridiculous and embarrassing for the GOP.