Posted: July 15, 2011 | Author: bostonboomer | Filed under: Democratic Politics, Medicare, Psychopaths in charge, Republican politics, Social Security, the villagers, U.S. Economy, U.S. Politics, voodoo economics, We are so F'd | Tags: "entitlement reform", Catfood Commission II, Federal debt ceiling, Harry Reid Mitch McConnell, Medicaid, medicare, Social Security |

Since Harry Reid is now on board, it’s looking more and more likely that the so-called “McConnell Plan” is the one the villagers favor in order to get the debt ceiling raised. Naturally, that is the plan that will allow Republicans to blame the President for raising the debt ceiling while continuing to procrastinate on dealing with the deficit. From ABC News:
This proposal has not yet been the subject of a lot of interest by House Republicans, but there are signs it may be gaining “traction,” according to a report today in the Wall Street Journal. “What is emerging as the most likely outcome is a plan based on Messrs. McConnell and Reid’s work, a Democratic official familiar with negotiations said,” the Journal’s Carol E. Lee and Janet Hook report. “It would include roughly $1 trillion in deficit reduction, but would not come with tax increases or Medicare savings, the official said. It could include an extension of unemployment insurance, the official said, which costs $40 billion and would be offset by spending cuts.” http://on.wsj.com/p3l6u3
The problem for us ordinary citizens who have to live with whatever Congress decides, is that McConnell’s plan includes the establishment of a sequel to the Catfood Commission that is scarier than the first one.
The McConnell Plan: Senate Minority Leader Mitch McConnell, R-Ky., would allow the debt ceiling to be raised by the president, with Congress voting disapprovingly three times before the 2012 election. Senate Majority Leader Harry Reid and McConnell are talking about creating a deficit commission that, like the base closing commission, would issue legislation that would be voted on up or down. They’re also discussing attaching spending cuts to the plan.
Greg Sargent quotes {shudder} Larry Kudlow on what the new Catfood Commission would be able to do.
Larry Kudlow, who’s plugged in with Congressional Republicans, scoops a key new detail about the emerging Mitch McConnell proposal to transfer control of the debt ceiling to the president:
McConnell is negotiating now with Sen. Harry Reid for a large-scale package that will allow the debt ceiling to rise unless overturned by a two-thirds vote. If a White House debt-ceiling deal comes through with $1.5 trillion of spending cuts, that will be part of the package. Right now, it’s not completed because enforceable spending caps have not been determined.
The key part of the new McConnell package is a joint committee to review entitlements in a massive deficit-reduction package. Unlike the Bowles-Simpson commission, this committee will be mandated to have a legislative outcome — an actual vote — that will occur early next year. No White House members. Evenly divided between Republicans and Democrats. No outsiders. This will be the first time such a study would have an expedited procedure mandated with no amendments permitted. Also, tax reform could be air-dropped into this committee’s report.
A source with knowledge of the emerging proposal confirms to me that while nothing has been finalized, this is where the discussions are headed.
If I’m reading this right, what this means is that in order to make the McConnell proposal more palatable to conservatives, there would be a mandated bipartisan review of entitlements next year. The source tells me that if a majority of the committee can agree on recommendations for entitlement reform, the proposal would also mandate a Congressional vote on those recommendations.
So efforts to gut Social Security and Medicare will be postponed, but far from dead. And Congress will have to take up or down votes on the Catfood legislation–meaning no amendments permitted. We are so F’d.
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Posted: July 13, 2011 | Author: bostonboomer | Filed under: Republican politics, Surreality, U.S. Economy, U.S. Politics | Tags: arm-twisting, Barack Obama, bipartisanship, Eric Cantor, Federal debt ceiling, Moody's, The Chicago Way, U.S. Credit rating |

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.
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Posted: July 12, 2011 | Author: bostonboomer | Filed under: Central Intelligence Agency, children, Corporate Crime, Crime, Economy, Federal Budget and Budget deficit, Foreign Affairs, income inequality, morning reads, Pakistan, Psychopaths in charge, Republican politics, U.S. Economy, U.S. Politics, voodoo economics | Tags: Banksters, Bill Clinton, CATO Institute, CIA, concflict of interest, Eric Cantor, Federal debt ceiling, Health care, IL, Jack Daniel McCullough, John Boehner, Joseph Cannon, Medicaid, Michael F. Cannon, Osama bin Laden, Pakistan, Seattle, Shakil Afridid, Sycamore |

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?
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Posted: July 11, 2011 | Author: bostonboomer | Filed under: Republican politics, U.S. Economy, U.S. Politics, voodoo economics | Tags: agricultural subsidies, Barack Obama, buget battle, Federal debt ceiling, Maine Caucus, medicare, Olympia Snowe, Social Security, Susan Collins |

One of the last of an endangered species: Rockefeller Republicans
Via Think Progress, Maine Senator Olympia Snowe announced she will not vote for a budget bill that includes cuts to Medicare or Social Security. From the Bangor Daily News:
AUGUSTA, Maine — Don’t look for members of Maine’s congressional delegation to support cuts in Social Security or Medicare as part of the debt limit legislation, but all four say a debt reduction package that includes budget cuts and new revenues is likely.
“There are solvency problems with both programs,” Sen. Olympia Snowe said in an interview on Friday, “They have to be addressed but not as part of the debt reduction talks.”
She said any debt reduction plan worked out by President Barack Obama and congressional leaders will still need the support of members of both parties and both Medicare and Social Security have strong bipartisan support.
“The talks between the President and congressional leaders should have happened in January,” Snowe said. “Everyone knew we would be coming up against the debt limit and that we needed to take action to reduce spending but it kept being put off until it has to be addressed and it has to be addressed.”
Snow and fellow Maine Senator Susan Collins support cutting agricultural subsidies for “wealthy corporate farmers” who grow “corn, wheat, soybeans, and rice. Collins points out that farmers who grow blueberries and potatoes (popular Maine products) don’t get subsidies, why should the richy-rich farmers get them? Collins also mentioned that “a second type of engine for the new joint strike fighter aircraft is unneeded and eliminating would save billions.”
I hope we aren’t going to see President Obama prostrate before Susan Collins again, as he was in the health care fight. And I hope the Maine Caucus sticks to their guns on Social Security and Medicare.
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Posted: July 11, 2011 | Author: bostonboomer | Filed under: income inequality, jobs, Medicare, Psychopaths in charge, Republican politics, Social Security, the villagers, U.S. Economy, U.S. Politics, voodoo economics | Tags: Barack Obama, Federal debt ceiling, jobs, John Boehner, lying liars, medicare, Social Security, taxes |

President Obama at his press conference this morning, responding to a question by Ben Feller of the Associated Press (emphasis added):
Q Thank you very much, Mr. President. Two quick topics. Given that you’re running out of time, can you explain what is your plan for where these talks go if Republicans continue to oppose any tax increases, as they’ve adamantly said that they will? And secondly, on your point about no short-term stopgap measure, if it came down to that and Congress went that route, I know you’re opposed to it but would you veto it?
THE PRESIDENT: I will not sign a 30-day or a 60-day or a 90-day extension. That is just not an acceptable approach. And if we think it’s going to be hard — if we think it’s hard now, imagine how these guys are going to be thinking six months from now in the middle of election season where they’re all up. It’s not going to get easier. It’s going to get harder. So we might as well do it now — pull off the Band-Aid; eat our peas. (Laughter.) Now is the time to do it. If not now, when?
We keep on talking about this stuff and we have these high-minded pronouncements about how we’ve got to get control of the deficit and how we owe it to our children and our grandchildren. Well, let’s step up. Let’s do it. I’m prepared to do it. I’m prepared to take on significant heat from my party to get something done. And I expect the other side should be willing to do the same thing — if they mean what they say that this is important.
That’s pretty insulting. We’re not children after all. I guess the President was aiming his remarks at Congress, but really we serfs are the ones who will have to face the pain of these decisions aren’t we? That’s the real issue here.
President Obama has made some kind of proposal to the Republicans and hasn’t shared the details with us or with his fellow Democrats, as far as I know. All we know for sure is that two programs that we pay for with a separate revenue stream are on the table–Social Security and Medicare. Well, as of today, we know a little more. Sam Stein reports that Obama offered to raise the Medicare eligibility age to 67.
According to five separate sources with knowledge of negotiations — including both Republicans and Democrats — the president offered an increase in the eligibility age for Medicare, from 65 to 67, in exchange for Republican movement on increasing tax revenues.
The proposal, as discussed, would not go into effect immediately, but rather would be implemented down the road (likely in 2013). The age at which people would be eligible for Medicare benefits would be raised incrementally, not in one fell swoop.
Sources offered varied accounts regarding the seriousness with which the president had discussed raising the Medicare eligibility age. As the White House is fond of saying, nothing is agreed to until everything is agreed to. And with Republicans having turned down a “grand” deal on the debt ceiling — which would have included $3 trillion in spending cuts, including entitlement reforms, in exchange for up to $1 trillion in revenues — it is unclear whether the proposal remains alive.
Social Security and Medicare are vital programs that no one should be talking about cutting, especially now when unemployment is at levels not seen in this country since the Great Depression. Furthermore, we pay into these programs with our hard-earned money–they are not “entitlements.” But that’s mostly what we’re hearing about from the President and his Republican buddies–they are just drooling over the prospect of slashing the social safety net.
This isn’t a joking matter, Mr. Obama. Show a little respect for the people who pay your salary. Actually, one group liked the President’s remark about eating our peas, The Peat and Lentil Council.
A spokesman for the pea council said it wasn’t interpreting the remarks in a negative context.
“We take President Obama’s comment on the need to ‘eat our peas’ as a reference to the first lady’s push to get all Americans to eat a more healthy diet as part of the Let’s Move campaign,” Pete Klaiber, the council’s director of marketing.
“We know that if tasty and nutritious meals featuring peas are served more frequently in the White House and in the cafeterias of both Houses of Congress, it will contribute to a balanced diet, if not a balanced budget.”
Klaiber added, “Eating more lentils couldn’t hurt, either.”
If the President is really serious about “sharing the pain,” perhaps he should tell the White House chef to serve split pea soup and lentil loaf at his next dinner party.
Now to House Speaker John Boehner’s remarks.
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