Showing posts with label budget cutting. Show all posts
War On 45
Moammar Gadhafi is making preparations for a departure from Libya with his family for possible exile in Tunisia, U.S. officials have told NBC News, citing intelligence reports…
The officials could provide no further details as to conditions or precise timing for Gadhafi’s departure, NBC said, and the news report emphasized that there was no guarantee that Gadhafi would follow through on any plans to flee…
Five loud explosions shook the center of Tripoli on Thursday afternoon, possibly striking near Gadhafi’s compound. NATO jets flew overhead minutes after the blasts. It wasn’t immediately clear what was hit or if there were civilian casualties. NATO has bombarded military targets all over Libya since March when a no-fly zone was instituted…
The Bush model of war -- go in heavy, attempt to win the war on the backs of American (and allied) soldiers, attempt to establish a monopoly on the use of violence, and then continue that monopoly on the use of violence by acting as the nation's law enforcement/army for five, six, ten years -- doesn't work, or at least does not work at costs the American public is willing to pay.
I see no point agitating for a Full War Model against Iran, for example -- to urge such a thing is futile. I do not believe the American public has the appetite for such an endeavor. (At least-- not unless Iran uses its soon-to-be-built nukes.)
We didn't use to take care of these countries in this fashion. We used to arm and train rebels within those countries (they've all got them), fund them, provide intelligence, spread some bribe money around, and, when necessary, bring in the sort of Word of God that our air and naval forces issue from the air or sea.
Such wars were messy and bloody and often very very dirty, with guerrilla tactics that often looked like "terrorism" being employed by both sides. This is only a problem when the forces on our side employ such tactics, because that's the only time such tactics get condemned in the press.
They are, however, effective, much of the time at least, and with a light American involvement as far as troops on the ground.
Colin Powell's ludicrous statement -- "You break it, you buy it" -- is a formula for nonstop, decades-long nation-building of exactly the same type that George W. Bush campaigned against in 2000, albeit on a much longer and much bloodier scale than we saw in, say, Haiti.
Why do we "buy" it if we break it?
Broken societies reassemble themselves. In fact, they seem to do so more quickly than people expect, even when faced with great devastation.
Fair Blame Game
Put aside for a moment the fact that Obama’s willingness to compromise was entirely theoretical; never did he put such a compromise plan on the table. His FY 2012 budget proposal was anything but a compromise; it included no entitlement reform and projected massive deficits for as far as the eye could see, and therefore received not a single vote in Congress.
What is most ludicrous is the Democrats’ effort to distract attention from the fact that they controlled Congress from January 2007 until January 2011. The first Congress that had any ability to be influenced by the Tea Party movement has been in office for only six months. Do the Democrats seriously expect anyone to believe that S&P’s downgrade of U.S. debt arises out of something that Republican Congressmen have done in the last six months? We expect the Democrats to appeal to ignorance at all times, but this is ridiculous.
Let’s take a walk down memory lane. What did the Democrats do with respect to federal debt during the four years they controlled both Houses of Congress? Here is a summary of the deficits the Democrats racked up during that time:
FY 2008 — $460 billion
FY 2009 — $1,410 billion ($1.4 trillion)
FY 2010 — $1,300 billion ($1.3 trillion)
FY 2011 — $1,600 (estimated) ($1.6 trillion)Of the $14.5 trillion national debt, nearly $4.8 trillion–one-third of the total–was incurred during that four-year period when the Congress was exclusively controlled by the Democrats. Moreover, and equally important, during that time the Democrats did nothing to assure the markets that they have a long-term plan to deal with the country’s burgeoning debt. On the contrary, for more than two years the Congressional Democrats have refused to adopt or even to propose a budget! If you are looking for the reason why rating agencies have lost faith in the ability of our government to get its spending and debt under control, you need look no farther
I'm afraid I think that the lion's share of the blame goes to the GOP, which escalated to this completely unnecessary showdown, and then gave up any hope of a grand bargain because it would have required some revenue increases.(But what about the specifics? I hear you cry. I find this singularly unconvincing as a rebuttal. The GOP was extraordinarily, um, specific about their total aversion to revenue increases, a position that they continued right up to the brink of a crisis, which makes me think that it was not merely a clever negotiating tactic. It is therefore not some sort of horrifying example of Democratic perfidy that the negotiations never went beyond fairly broad generalities. It's an example of what happens when you signal that you aren't going to compromise no matter what)This was not terroristic, psychopathic, or whatever, and the people who used those sorts of epithets have forfeited the moral high ground they claim to occupy. I sympathize with the Tea Party's goals of smaller government. I even kind of understand what they thought they were trying to do. But it was an enormously counterproductive tactical mistake, and though of course I would say this, I believe it was made because everyone who tried to point this out was ignored . . . nay, not just ignored, but derided as a Beltway Insider Commiesymp.In that political environment, hell, I'd downgrade us.I'm sorry, but this was stupid. It hurt the country, and it hurt the party that staged the protest vote even more. All for very little gain
Downgrading On A Curve
S&P removed for the first time the triple-A rating the U.S. has held for 70 years, saying the budget deal recently brokered in Washington didn't do enough to address the gloomy outlook for America's finances. It downgraded long-term U.S. debt to AA+, a score that ranks below more than a dozen governments', including Liechtenstein's, and on par with Belgium's and New Zealand's. S&P also put the new grade on "negative outlook," meaning the U.S. has little chance of regaining the top rating in the near term.
The unprecedented move came after several hours of high-stakes drama. It began in the morning, when word leaked that a downgrade was imminent and stocks tumbled. Around 1:30 p.m., S&P officials notified the Treasury Department that they planned to downgrade U.S. debt and presented the government with their findings. Treasury officials noticed a $2 trillion error in S&P's math that delayed an announcement for several hours. S&P officials decided to move ahead, and after 8 p.m. they made their downgrade official.
S&P said the downgrade "reflects our opinion that the fiscal consolidation plan that Congress and the administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics." It also blamed the weakened "effectiveness, stability, and predictability" of U.S. policy making and political institutions at a time when challenges are mounting.
Fall On Me: The Dow Goes Down
Stocks spiraled downward Thursday as investors buckled under the strain of the global economic slowdown and the failure of policy makers to stabilize financial markets.
The selling began in Europe and continued in the U.S., where stocks plunged from the opening bell. The Dow Jones Industrial Average posted its worst point drop since the financial crisis in December 2008, falling 512.76 points, or 4.31%, to 11383.68. Oil and other commodities were also hammered. Even gold was a safe haven no more as prices fell. Asian markets slid on Friday morning, with Tokyo, Australia, South Korea and Hong Kong markets all falling more than 3% in early trading.
Last Deal Gone Down
Where's The Panic Button?
I just got off the phone with a source on Capitol Hill who has spent the past few days trying to convince Republicans to vote for a debt ceiling hike.
He told me that the biggest obstacle he faces has been "market complacency."
"Frankly, a bit of panic would be very helpful right now," he said.
As he explained it, lots of people in Washington, D.C. expected that this would be a week marked by panic in the markets. Stocks would tank. Bonds would get clobbered. The dollar would do something dramatic. And all of this would help convince reluctant lawmakers that they had to reach a compromise on the debt ceiling.
"We were following the script from 2008. When the market collapsed after TARP failed, that spooked everyone enough to get them to fall in line. We thought the same thing would happen this week," he said.
Declaring Victory? Not Quite Yet
The House postponed a Thursday night vote on Speaker John Boehner's plan to raise the federal borrowing limit after he failed to stem a revolt by conservative GOP members. The delay leaves the credit status of the U.S. government in jeopardy with five days remaining before it begins running out of money to pay all its bills
The development came after a two-hour debate on the bill was abruptly ended earlier in the evening. Mr. Boehner, knowing that a rejection could undermine his speakership, then joined other House GOP leaders in trying to pressure party members to reconsider their opposition.
Those efforts fell short and it wasn't clear if the vote would be rescheduled. But the development appeared to hand the initiative for the moment to Senate Majority Leader Harry Reid (D., Nev.), who is pushing an alternative version of the debt bill.
House Republicans and Senate Democrats planned to meet Friday morning at 10 a.m. to plan strategy. Republicans will figure out whether, and how, they can move forward.
- Rep. Nancy Pelosi – “We’re trying to save life on this planet as we know it today.”
- Rep. Nancy Pelosi – “They want to destroy your rights.”
- Sen. Harry Reid – “The time for ideological extremism should end.”
- Rep. Rangel – “These people don’t care about our country.”
- Comm. Director Dan Pfeiffer – “…could potentially put us towards a depression because House Republicans…are unwilling to compromise.”
- DNC Chair Debbie Wasserman-Schultz – “This is almost like dictatorship.”
- Rep. Garamendi (D-CA) – “They basically want to terminate the American Dream.”
- Rachel Maddow – “shameless, craven, unprincipled, partisan hackery”
Presidential Courage
I saw another version of courage in President Bush. My time in the White House coincided with the worst times of the Iraq War. Each day seemed to bring news of good Americans dying for no appreciable gain, of Baghdad descending into hell, of some congressman or senator who had supported the effort in easier times now calling for America to cut and run.
More than once President Bush told me, "We are not going to lose our nerve and abandon the people of Iraq the way we did the people of Vietnam, from an embassy rooftop." It made for a lonely presidency. Rather than accept defeat, he ordered a surge that almost no one—including some around him—wanted: not the Pentagon, not a weary American public, certainly not Republicans or Democrats in Congress.
The night he gave that speech, Jan. 10, 2007, did not go well. The network gummed up the news feed. The president looked stiff and uncomfortable. Scarcely before he'd finished, the glib and gifted were on television declaring it a flop. The president expected as much. He did what he had to do anyway.
So successful was the surge that today we take it for granted. The progress we see in Iraq, and even the progress President Obama has made in Afghanistan, would not have been possible but for that surge. That surge would not have happened but for President Bush's will
While officials from the Obama Administration raised their rhetoric over the weekend about the possibility of a debt default if the debt ceiling isn't raised, they privately have been telling top executives at major U.S. banks that such an event won’t happen, FOX Business has learned.
In a series of phone calls, administration officials have told bankers that the administration will not allow a default to happen even if the debt cap isn't raised by the August 2 date Treasury Secretary Tim Geithner says the government will run out of money to pay all its bills, including obligations to bond holders. Geithner made the rounds on the Sunday talk shows saying a default is imminent if the debt ceiling isn't raised, and President Obama issued a similar warning during a Friday press conference after budget negotiations with House Republicans broke down.
A Busy Saturday
What has me worried is the idea that the Democrats ACTUALLY DON’T UNDERSTAND THIS IS THE END OF THE ROAD. What if they actually aren’t capable of recognizing when they’ve lost? Or when we’ve run out of other people’s money? None of these people work for a living. Their concept of where money comes from and how wealth is created (and destroyed) is completely divorced from reality because they live in a government bubble. And the very small minority among them that do understand this from previous jobs and experience are okay with Progressive policies aimed at leveling/equalizing/delivering-economic-justice because they just assume that the economy can handle some siphoning. And usually it can. But not at this volume or for this time scale.
At this point, we hear about "erratic" behavior that doesn't ostensibly involve sex. What exactly are the "new questions"? This is a cheap and ridiculous article in my view. A woman who is unhappy with her sexual relationship with Wu has called his office but has not called the police, and now we're supposed to review everything else we know about him in some new context? Is this the way we are to do politics in America now?
Note that the woman who has brought this chaos into Wu's career is shielded by the newspaper's policy not to "use the names of victims of sexual assault without their permission." That's convenient. I think if you are going to have a policy like that, you should not report at all unless the alleged victim has reported a crime to the police. It's not fair.
At least 32 people died when a high-speed train smashed into a stalled train in China's eastern Zhejiang province Saturday, state media said, raising new questions about the safety of the fast-growing rail network.
The accident occurred on a bridge near the city of Wenzhou after the first train lost power due to a lightning strike and a bullet train following behind crashed into it, state television said.
The total power failure rendered useless an electronic safety system designed to warn following trains of stalled trains on the tracks up ahead, and automatically halt them before a collision can occur, the report added.
It showed one or possibly two carriages on the ground under the bridge, with another hanging above it. Several other carriages derailed in the accident near Wenzhou, some 860 miles south of Beijing.
More than 200 people have been taken to hospital, the official Xinhua news agency added.
One train was heading from Beijing to the coastal city of Fuzhou, the other was running from Zhejiang provincial capital Hangzhou, also to Fuzhou.
"The train suddenly shook violently, casting luggage all around," Xinhua quoted survivor Liu Hongtao as saying.
"Passengers cried for help but no crew responded."
Worker's Of America: Your "Free" Health Care Is Going To Cost More Than Originally Expected
A major provision of the healthcare reform law designed to prevent businesses from dropping coverage for their workers could inadvertently leave families without access to subsidized health insurance.
The problem is a huge headache for the Obama administration and congressional Democrats, because it could leave families unable to buy affordable health insurance when the healthcare law requires that everyone be insured starting in 2014.
Some of the administration’s closest allies on healthcare reform warn this situation could dramatically undercut support for the law, which already is unpopular with many voters and contributed to Democrats losing the House in the 2010 midterm elections.
At issue is a so-called “firewall” in the law that denies subsidies to workers whose employers offer quality, affordable coverage.The firewall applies to plans with premiums that cost less than 9.5 percent of a worker’s income. If a worker has to dole out more than that amount to buy coverage, the employer coverage is considered unaffordable and the worker is eligible for subsidies to buy coverage on the new exchanges.
Initially, advocates thought the threshold also applied to family coverage. If premium costs paid to cover a worker’s family cost 20 percent of a worker’s income, for example, the worker and his or her family should be eligible for subsidies.
But in calculating the bill’s cost last year, Congress’s Joint Committee on Taxation (JCT) took the law to mean that employers and their families aren’t eligible for subsidies as long as the individual plan is affordable — regardless of the price of the family plan.
This means the costs to an employee for covering his or her family could be too high to afford for many working families.
“If you’ve got employer-based coverage that’s affordable for the employee only,” Guyer said, “the family is expected to take the employer coverage even if it“s totally unaffordable and no one in the family is eligible for the exchange subsidies.”
Little Depression Blues
Cisco Systems Inc., Lockheed Martin Corp. and troubled bookstore chain Borders Group Inc. are among those that have recently announced hefty cuts, while recent government numbers underscore how companies have shifted toward cutting jobs.
The increase in layoffs is a key reason why the U.S. recorded an average of only 21,500 new jobs over the past two months, far below the level needed to bring down unemployment, which now stands at 9.2%.
The cuts also reflect the shifting outlook of employers, many of whom had expected the economy to gain speed as the year progressed. Instead, growth has faltered. If the pace continues to disappoint, more companies will feel pressure to pull back. "Layoffs have played a big role [in weak job growth] over the last few months," said Mike Montgomery, an economist at IHS Global Insight. "The soft patch is more layoffs and nothing else to pick up the slack."
