January 2013 archive

Last night the House of Representatives voted to make permanent the Bush/Obama tax cuts on all but the top 1% of tax payers and increasing taxes on on 77.1 percent of U.S. households, mostly because of the expiration of a payroll tax cut. With the bill set to be signed by Pres. Barack Obama, Congress and the White House move to the next manufactured crisis that this bill set up, the draconian sequester cuts to defense and non-defense spending and the debt ceiling, also a manufactured “crisis.” The bill did hold off those draconian cuts for two months, just in time for spending to hit the debt ceiling.

Pres. Obama made it clear in his address after the passage of the “Fiscal Cliff” bill, that he would not allow the debt ceiling to be used as a bargaining chip in negotiations over spending.

“I will not have another debate with this Congress over whether or not they should pay the bills that they’ve already racked up through the laws that they passed. We can’t not pay bills that we’ve already incurred.”

“If Congress refuses to give the United States government the ability to pay these bills on time, the consequences for the entire global economy would be catastrophic – far worse than the impact of a fiscal cliff.”

This bill was not the best deal as this article on the behind the scenes Senate dealings by Ryan Grym at Huffington Post tells it:

The White House sent Reid a list of suggested concessions as his staff debated what to send back to McConnell. Reid looked over the concessions the administration wanted to offer, crumpled up the paper and tossed it into his fireplace. The gesture was first reported by Politico and confirmed to HuffPost by sources with knowledge of it, who noted that Reid frequently keeps his fire going and is fond of feeding a variety of proposals to it.

Reid’s staff then called McConnell’s office with a simple message: Our last offer stands. There will be no further concessions. McConnell took to the Senate floor, complaining that he had no “dance partner” in Reid, and called Vice President Joe Biden, a man he assumed would be more willing to give. McConnell was right.

Perhaps the most important concession he wrangled from the administration, which Reid had been unwilling to make, was a two-month extension of the sequester, automatic cuts to defense spending and domestic programs that were supposed to be triggered Jan. 1. Reid wanted much more, worried that the two-month period will simply set up another colossal showdown that will also rope in the debt ceiling and funding for the government. “The deal itself is OK, but sets up Democrats for [a] worse fight and strengthens Republicans’ hand for what they really want: cuts,” said a Democratic source close to Reid. “Biden gave away the store on timeline. Two months and we’re back at this and in worse shape.”

President Barack Obama has vowed not to negotiate over the debt ceiling, but Democrats in the Senate are worried that they’ve now lost their leverage. “Everyone knew taxes would be raised on high earners,” said the Democratic source. “So with that out of the way, what do we bargain with?”

All they had to do was let the tax cuts end and pass new tax bill that included extension of unemployment benefits, ended unconstitutional the debt ceiling nonsense and added some stimulus to really create jobs, since we all know that tax cuts don’t. But no, Pres. Obama had to have this done and kept backing away from his so-called “line in the sand.”

If anyone believes at this point that Obama stand up to the threats of a government shut down by Republicans refusing to raise the debt ceiling without serious concessions on Medicare and Social Security, consider these three reasons to doubt from Jon Walker at FDL Action

1) Failure to stick to previous lines in the sand – In past negotiations Obama has failed to stick to his previous lines in the sand. Obama did not stick to his demand that the Bush tax cuts end for income over $250,000. Similarly despite saying he would not play games with the debt ceiling, Obama seemed to treat it as just another bargain chip when trying to get a deal with John Boehner.

2) Dismissing unilateral action – The Obama administration has dismissed unilateral action to address the debt ceiling. Doing something like invoking the 14th amendment would probably be the easiest way to defuse the fight, but the administration has declared that “not an option.” Even if the Obama team didn’t think it was a legally viable solution by completely removing the threat it has weakened its bargaining position.

3) Allowing the creation of a new super cliff in two months – When WP Joe Biden took over the negotiations from Sen. Harry Reid the major concession he made was to have only a two month delay of the sequestration cuts instead of a one year delay.

Meanwhile the “irrational exuberance” of Wall St’s feral children over the tax deal abounds with the markets closing on a high. Let’s see what happens in two months when we sit on the edge of another cliff.

Late last night the House of Representatives voted to pass the Senate’s “Fiscal Cliff” bill and, by unanimous consent a few meaningless bills that will go nowhere. What they didn’t do, that Speaker John Boehner (R-OH) had promised they would, was pass the $60.4 billion Sandy Relief Bill that passed the Senate last week. The reaction from the regions representatives was scathing, especially from Republicans.

“I’m saying right now, anyone from New York or New Jersey who contributes one penny to Congressional Republicans is out of their minds,” Representative Peter T. King, a Long Island Republican, said during an interview on CNN on Wednesday morning. “Because what they did last night was put a knife in the back of New Yorkers and New Jerseyans. It was an absolute disgrace.”

And Representative Michael G. Grimm, a Republican from Staten Island, said the failure to vote was a “betrayal.” He urged that action be taken as soon as possible.

“It’s not about politics,” he said. “It’s about human lives.” [..]

President Obama issued a statement Wednesday calling for an immediate vote.

“When tragedy strikes, Americans come together to support those in need,” he said. “I urge Republicans in the House of Representatives to do the same, bring this important request to a vote today, and pass it without delay for our fellow Americans.”

Gov. Chris Christie of New Jersey, a Republican, and Gov. Andrew M. Cuomo of New York, a Democrat, released a joint statement condemning the decision not to vote on the storm aid bill this week.

“With all that New York and New Jersey and our millions of residents and small businesses have suffered and endured, this continued inaction and indifference by the House of Representatives is inexcusable,” they said. They added, “This failure to come to the aid of Americans following a severe and devastating natural disaster is unprecedented.” [.]

“Denying emergency aid to Superstorm Sandy victims is a new low for House Republicans,” said Senator Frank R. Lautenberg, a New Jersey Democrat. “When our neighbors in other states are knocked down by emergency events, we put partisan politics aside and extend a helping hand to help them get back up. Helping struggling families recover from disasters has never been a partisan issue in Washington and it never should be. New Jersey and New York families have been hurt badly by Sandy and it is shameful that Washington Republicans are adding to their pain by standing in the way of their recovery.” [..]

“Speaker Boehner’s failure to allow vote on Sandy bill is a disgrace,” Mr. Schumer said in a statement. Senator Kirsten E. Gillibrand, a Democrat from New York, issued a blistering statement on Wednesday morning, calling the inaction “indefensible and shameful.” She called on Mr. Boehner to visit damaged neighborhoods on Staten Island and in the Rockaways, but said, “I doubt he has the dignity nor the guts to do it.”

“Speaker Boehner should call his members back for an up-or-down vote today and allow them to vote their consciences,” she said. “Anything less is an insult to New York.”

Outgoing chair of the House Homeland Security Committee, Rep. Peter King (R-NY), who represents part of the area devastated by Sandy, was the most scathing.

“It pains me to say this. The fact is the dismissive attitude that was shown last night toward New York, New Jersey, and Connecticut typifies a strain in the Republican party”

“I can’t imagine that type of indifference, that type of disregard, that cavalier attitude being shown to any other part of the country. We’re talking about real life and death situations here.”

It was in the low 20º F’s here in NYC this morning with wind chill factors near 0º F. There are still thousands living in homes and apartment buildings that have intermittent to no heat, hot water, or electricity. For many food and medical care is still a crisis. The official death toll from the storm is about 143 for the region. The fact is there are many more deaths that can be attributed to the storm, either from accidents or exacerbation of medical conditions from stress or lack of access to medical care or medications. The fears now is that people will die from hypothermia in their own homes that they fear to leave because of vandalism. Most have lost everything and have struggled to keep what is left and rebuild their live, they are afraid to leave and still willing to risk their lives to keep what is left. Yet, the House leadership has left for vacation refusing to do their jobs.

I don’t often agree with Peter King, as a matter of fact I can’t recall ever agreeing with him, but he spoke for me and everyone living here in the region, especially those still struggling to survive.

When last we checked in on Royal Dutch Shell’s “High Tech” Arctic drilling operation they were pretty hosed, eh?  Their containment unit was crushed like a beer can at half its designed operating depth on a clear sunny day in Puget Sound Washington.

Well the weather is not always so nice as that farther north and later in the season and the drilling rig Shell has been using, the Kulluk, and Aiviq the tug moving it to it’s winter quarters in Seattle from Dutch Harbor (famous from Deadliest Catch), ran into some.

Now what some people would call a ‘big storm’ is not so much by comparison to your typical gale, ask anyone who has lived in Maine or Syracuse (6″?  A dusting.  You don’t even get a snow day.).  This one was big enough though, 40′ seas and 70 mph winds.  Kulluk broke her tow and started drifting.  Then when they finally got a line on her again the engines on Aiviq went out, all of them.  Bad diesel they say.

So they called in the Coast Guard which was luckily enough based quite nearby on Kodiak Island instead of a thousand miles away like they would be during actual drilling and they were able to restart Aiviq and with the help of a couple of Cutters start towing again.

Monday, New Year’s Eve, they gave up on that and intentionally grounded Kulluk on the environmentally sensitive but uninhabited Sitkalidak Island near Kodiak Island with the intention of re-floating it and trying again when the weather moderated.

And it did, to a more typical 30′ swell and 35 mph breeze which the Coast Guard divers looked at and decided was maybe not as moderate as they needed to survive.

There it sits today, Wednesday, rocking gently back and forth on a sandy beach with no sign of leaking its 143,000 gallons of fuel or 12,000 gallons of lubricants and hydraulic fluid OR getting pounded to razor blades on the rocks depending on whether you believe Shell propoganda or not.

As always EdwardTeller @ Firedog Lake is on top of the story with these posts I highly recommend you read-

• Shell Oil’s Arctic Drilling Rig’s Tug in Gulf of Alaska Emergency – Shell Considering Evacuating Kulluk Crew Saturday December 29, 2012 2:04 pm
• Shell Drill Rig Kulluk Breaks Tow Lines – Adrift Again Sunday Night – Updated X 3 Sunday December 30, 2012 10:18 pm
• Kulluk Grounds – Spill Response "Ready to Go!" Monday December 31, 2012 9:37 pm
• Shell Oil Rig Kulluk Being Ground into Razor Blades on Rocky Alaska Beach. Questions Arise. Tuesday January 1, 2013 4:17 pm

But if you prefer corporate media instead of DFH Firebagger bloggers here’s a sample-

• Rig Runs Aground in Alaska, Reviving Fears About Arctic Drilling
  
  By JOHN M. BRODER and HENRY FOUNTAIN, The New York Times
  
  Published: January 1, 2013

• Shell oil rig runs aground in Alaska
  
  By Steven Mufson and Juliet Eilperin, The Washington Post
  
  Jan 01, 2013 08:46 PM EST

• A Rig Accident off Alaska Shows the Dangers of Extreme Energy
  
  By Bryan Walsh, Time Magazine
  
  Jan. 02, 2013

• Shell drilling rig remains difficult to reach for rescue team
  
  Richard Mauer and Lisa Demer, McClatchy
  
  Wednesday, January 2, 2013

• Storm impedes salvage of drilling ship in Alaska
  
  Mary Pemberton, Associated Press
  
  7:17 a.m. EST January 2, 2013

• What Shell’s Kulluk Oil Rig Accident Means for Arctic Drilling
  
  By Jerry Beilinson, Popular Mechanics
  
  January 1, 2013 7:50 PM

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

Wednesday is Ladies’ Day

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Katrina vanden Heuvel: Fixing the economy, a new focus for Congress

The Perils of Pauline melodrama over the “fiscal cliff” will drag on as Washington heads toward another “debt ceiling” faceoff that will climax over the next eight weeks or so.

This farce captivates the media, but no one should be fooled. This is largely a debate about how much damage will be done to the economic recovery and who will bear the pain. There is bipartisan consensus that the tax hikes and spending cuts that Congress and the White House piled up to build the so-called fiscal cliff are too painful and will drive the economy into a recession. So the folderol is about what mix of taxes and spending cuts they can agree on that won’t be as harsh.

Largely missing is any discussion of how to fix the economy, to make it work for working people once more. Just sustaining the faltering recovery won’t get it done. We’re still struggling with mass unemployment, declining wages and worsening inequality. Corporate profits now capture an all-time record percentage of the economy; workers’ wages have hit an all-time low. A little constriction, or a lot, won’t do anything to change that reality.

Liz Ševčenko: Guantánamo Bay’s Other Anniversary: 110 Years of a Legal Black Hole

Even if President Obama finally fulfills his promise to close the detention camp, America’s ambiguous Cuban dominion goes on

As the fourth anniversary of Obama’s pledge to close Guantánamo approaches, the pressure is on: it’s been far too long, and the moment is now. But why is Guantánamo so hard to close?

Because it’s been an integral part of American politics and policy for over a century. To understand what it takes to close Guantánamo, we should look to how we’ve failed – and succeeded – in closing it before.

Gitmo’s “legal black hole” opened in 1903 with a peculiar lease that affirmed Cuba’s total sovereignty over Guantánamo Bay, but gave the US “complete jurisdiction and control”. This inadvertently created a space where neither nation’s laws clearly applied: a purgatory that’s been used to park people whose legal rights posed political threats. Gitmo’s generations of detainees have been inextricable, if often invisible, parts of America’s deepest conflicts: over immigration, public health, human rights, and national security.

Once we realize there is no fiscal cliff and the whole premise is a myth, you think about why it was created. It was created so we can mop up after the 1% which owns all three branches of government including the President. Obama didn’t add a raise in the debt ceiling to the Obama Bush tax cut deal he made in 2010 which created this political mess we are in right now.

Yet the poor and middle class are supposed to “stop whining and complaining” and just mop it up as if it’s one of the menial 60% of low wage jobs created that were part of this “recovery” where 93% of the income it went to the top 1%? I don’t think that’s fair. He needs to ask his Wall St buddies in his Treasury Department to share sacrifice. We have sacrificed enough in the name of the fantasy evil deficits from the land of Mordor causing fantasy default. Think about this when Nancy Pelosi was lying to you about this sellout ultimately helping the middle class last night.

From blatant robbery to money laundering, here are the biggest scandals of 2012 banking history.

#9. Middle-Class Wealth declines by 35 percent

On July 18, 2012, the U.S. Bureau of the Census made it official: The middle-class is getting poorer. The median family — that family exactly at the mid-point of the wealth ladder  — saw its net worth collapse. (Net worth is all assets minus all liabilities.) In 2005, the median family’s wealth was valued at $102,844 (in inflation adjusted dollars.)  By 2010, the latest Census figures showed a drop of 35 percent to $66,740.

And we’re supposed to celebrate this?  

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

January 2 is the second day of the year in the Gregorian calendar. There are 363 days remaining until the end of the year (364 in leap years).

On this day in 1962, the folk group The Weavers are banned by NBC after refusing to sign a loyalty oath.

The Weavers, one of the most significant popular-music groups of the postwar era, saw their career nearly destroyed during the Red Scare of the early 1950s. Even with anti-communist fervor in decline by the early 1960s, the Weavers’ leftist politics were used against them as late as January 2, 1962, when the group’s appearance on The Jack Paar Show was cancelled over their refusal to sign an oath of political loyalty.

The importance of the Weavers to the folk revival of the late 1950s cannot be overstated. Without the group that Pete Seeger founded with Lee Hays in Greenwich Village in 1948, there would likely be no Bob Dylan, not to mention no Kingston Trio or Peter, Paul and Mary. The Weavers helped spark a tremendous resurgence in interest in American folk traditions and folk songs when they burst onto the popular scene with “Goodnight Irene,” a #1 record for 13 weeks in the summer and fall of 1950. The Weavers sold millions of copies of innocent, beautiful and utterly apolitical records like “Midnight Special” and “On Top of Old Smoky” that year.

21:28 EST: There will be 30 minutes of debate before the vote

22:41 EST: Vote on “Fiscal Cliff” bill starts now. 217 needed to pass.

23:02 EST: Bill passes 267- 167.

23:05 EST: Pres. Obama to address the nation from the East Room Briefing Room at 23:15 EST.

That’s what you make by cutting an orange in half and scooping out the edible part so you can put fruit salad in it right?

Oh, you are so old school.

It used to mean something, now the parade isn’t even on TV (though they still drive around some of the floats at halftime).  This year’s competitors are Florida State vs. Northern Illinois.

Go Huskies!  Or maybe not, too much New Year.

Up Date 20:04 EST The House Republican leadership has decided to put the Senate bill on the floor for an up or dowm vote later tonight.

Early this morning the Senate passed the “Fiscal Cliff Bill” by vote of 89 – 8. Voting in opposition for various reasons were Democratic Senators Tom Carper (D-DE), Tom Harkin (D-IA), and Michael Bennet (D-CO) along with Republican Senators Mike Lee (R-UT), Richard Shelby (D-AL), Rand Paul (R-KY), Chuck Grassley (R-IA), and Marco Rubio (R-FL). At the Washington Post‘s Wonk Blog, Suzie Khimm gives us a cheat sheet for the deal which included a one year extension of the farm bill. However, no matter how you look at this bill that raises taxes on incomes over $450,000, taxes for the middle class will go up:

Taxes will rise on the middle class even if this deal passes, because it doesn’t include an extension of the payroll tax holiday. That means that the paychecks for more than 160 million Americans will be 2 percent smaller starting in January, as the payroll tax will jump from 4.2 percent to 6.2 percent. And a huge number of those hit will be middle class or working poor (Two-thirds of those in the bottom 20 percent would be affected by a payroll tax hike.).

The reality is that the payroll tax holiday hurt contribution to Social Security and was a back door to tying it to the debt/deficit argument. What would have been better for the lowest 20% of tax payers was the Earned Income Tax Credit that the payroll tax cut had replaced two years ago.

All of this may now be moot. As of the afternoon, the Republican feral children led by Rep. Eric Cantor (R-VA) are against the bill and want to amend it.

Eric Cantor (R-Va.), the influential House majority leader, emerged from a two-hour meeting with GOP colleagues and said he opposes the Senate bill, which would let income taxes rise sharply on the rich. Rep. Jeff Flake (R-Ariz.) said Cantor “forcefully” expressed his concerns during the closed -door session, during which other GOP members expressed grave doubts about the agreement.

Cantor’s opposition likely dooms the chances for fast House passage of the legislation without changes, which could prolong efforts to avert the automatic tax increases and spending cuts that technically took effect on Tuesday. If there is no agreement by the end of the current Congress at noon on Thursday, negotiations would have to start over in the next Congress. Many economists believe that the fiscal cliff’s full effect would drive the economy back into recession.

The Republicans are scheduled to meet at 5:15 PM EST. Regardless of what goes on in the House, the Senate has adjourned until Jan. 3 when the new session begins and it is highly unlikely that they would return.

This will certainly puts Speaker of the House John Boehner (R-OH) in a bad position since he had supported an “up or down vote” on the bill that was crafted by Vice President Joe Biden and Senate Minority Leader Mitch McConnell (R-SC), since it now appears that he has completely lost control of the House Republican. The biggest objection of to the bill is the lack of spending cuts as Ryan Grym at “Huffington Post” reports, highlighting the probelms for Boehner:

“We’ve got to provide responsible spending balance long-term,” said Rep. Nan Hayworth (R-N.Y.) “This bill does not do that.” Republicans who filed out of the House GOP meeting sounded cautionary notes about the fiscal cliff deal, suggesting it faces serious trouble.

House GOP sources said that Rep. Paul Ryan (R-Wisc.), a leader of the conservative wing and a potential threat to House Speaker John Boehner, is expected to vote against the Senate deal if it comes to the floor, breaking the leadership unity that existed around Boehner’s “Plan B.” And Republicans leaving the meeting said that Majority Leader Eric Cantor (R-Va.), Boehner’s leading rival, spoke against the bill, BuzzFeed’s John Stanton reported.

“Leadership is currently listening to the members so as to figure out the best path forward,” Cantor spokesman Doug Heye said.

Cantor told CNN’s Deirdre Walsh flatly, “I do not support the bill,” and said no decisions have been made on how to proceed.

Rep. Tim Huelskamp (R-Kan.) told the National Review’s Robert Costa that there are “real divisions” between Boehner and Cantor, and that Cantor was vociferous in his opposition, with the upcoming leadership elections hanging over the meeting. He said that conservatives were heartened to see Cantor take on Boehner in front of the entire conference.

The Congressional Budget Office (CBO) is reporting that the Senate’s bill would add $4 trillion to the deficit over a decade.

The House Democrats have their hands tied at this point but if the bill does make it to the floor for debate they do have some action they can take:

If Republicans attempt to offer amendments — as is expected — Democrats will oppose a rule to allow that to happen procedurally.

If the GOP then tries to pass an amended bill, “they will have to do it with their own votes,” said Rep. James Clyburn, (D- S.C.), a member of the leadership. Either scenario would kill the deal.

If the GOP doesn’t offer an up or down vote on the Senate deal, well, that would kill the deal, too.

And then what? “Well, I say that then we wait for the new Congress to come in on Thursday. We’ll have better numbers, more members on our side,” said Clyburn. “Then we offer a new bill that they will like even less. They didn’t like the 450 (thousand dollar in household income) floor on the tax increase? Let’s see how much they like it when we push it back down to 250 (thousand)!”

Former Clinton Labor Secretary and professor at University of California, Robert Reich has voiced the opinion that no deal is a better than a bad deal and advocates going over the cliff.

Up dates to follow.

The Hypnotoad.

"Television is a vast wasteland"

The networks race back to normalcy and I do also.  It takes a week to recover from the holidays.  I hope you all had one as good and safe as I did, see you next year!

This edition covers the 12 hours from 6 pm to 6 am.  Immediate gratification is here.  The previous edition is here.