James Crotty: Obama’s budget is a “less savage” attack on social programs, but still assumes we are “living above our means”

Thanks to the David Dayen at FDL News Desk for the links to articles that there is still a big push from the White House for cutting the deficit in the proposed budget despite the denials. There is a bipartisan group headed by House Minority Whip Steny Hoyer on the Democratic side to sell more deficit reducing austerity

The push is intended to disrupt the consensus among most political leaders that Congress will punt budget consolidation efforts until after November – when the election returns are in, and the January 1, 2013 expiry of the Bush tax cuts and deep across-the-board spending cuts make real action inevitable.

In a speech hosted Monday morning by Third Way, Hoyer revealed that he and other lawmakers are looking for the right moment to introduce a bill that would achieve the sorts of deficit reduction goals that have eluded Congress and the White House thus far. [..]

“There is ongoing work…to put concrete proposals to paper in legislative form, so that as I said there will be an opportunity to offer those proposals,” Hoyer said. “Obviously you want to create a large consensus for that before you offer it so that its defeat is, if defeated, temporary only and not undermining of what the objective is, and that is getting a big, bold, balanced plan adopted.”

The Hill identified some of the other members of this secretive committee but others don’t even want to be identified:

A small, bipartisan group of lawmakers in both the House and Senate are secretly drafting deficit grand bargain legislation that cuts entitlements and raises new revenue. [..]

The core House group of roughly 10 negotiators is derived from a larger Gang of 100 lawmakers led by Reps. Mike Simpson (R-Idaho) and Health Shuler (D-N.C.), who urged the debt supercommittee to strike a grand bargain last year. [..]

The talks are so sensitive that some members involved do not yet want to be identified.

Dayen, as do others, doesn’t believe anything will happen with the budget and these massive cuts until after the election during the lame duck session but that doesn’t mean that the grand plan would pass. He had a major concern that “those defenders of the safety net left in Congress have a plan of their own.”

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.

March 5 is the 64th day of the year (65th in leap years) in the Gregorian calendar. There are 301 days remaining until the end of the year.

On this day in 1770, a mob of angry colonists gathers at the Customs House in Boston and begins tossing snowballs and rocks at the lone British soldier guarding the building. The protesters opposed the occupation of their city by British troops, who were sent to Boston in 1768 to enforce unpopular taxation measures passed by a British parliament without direct American representation.

The Incident

The event began on King Street, today known as State Street, in the early evening of March 5, in front of Private Hugh White, a British sentry, as he stood duty outside the Custom house. A young wigmaker’s apprentice named Edward Gerrish called out to a British officer, Captain Lieutenant John Goldfinch, that Goldfinch had not paid the bill of Gerrish’s master. Goldfinch had in fact settled his account and ignored the insult. Gerrish departed, but returned a couple of hours later with companions. He continued his complaints, and the civilians began throwing rocks at Goldfinch. Gerrish exchanged insults with Private White, who left his post, challenged the boy, and struck him on the side of the head with a musket. As Gerrish cried in pain, one of his companions, Bartholomew Broaders, began to argue with White. This attracted a larger crowd.

As the evening progressed, the crowd grew larger and more boisterous. The mob grew in size and continued harassing Private White. As bells, which usually signified a fire, rang out from the surrounding steeples, the crowd of Bostonians grew larger and more threatening. Over fifty of the Bostonian townsmen gathered and provoked White and Goldfinch into fight. As the crowd began to get larger, the British soldiers realized that the situation was about to explode. Private White left his sentry box and retreated to the Custom House stairs with his back to a locked door. Nearby, from the Main Guard, the Officer of the Day, Captain Thomas Preston, watched this situation escalate and, according to his account, dispatched a non-commissioned officer and seven or eight soldiers of the 29th Regiment of Foot, with fixed bayonets, to relieve White. He and his subordinate, James Basset, followed soon afterward. Among these soldiers were Corporal William Wemms (apparently the non-commissioned officer mentioned in Preston’s report), Hugh Montgomery, John Carroll, James Hartigan, William McCauley, William Warren and Matthew Kilroy. As this relief column moved forward to the now empty sentry box, the crowd pressed around them. When they reached this point they loaded their muskets and joined with Private White at the custom house stairs. As the crowd, estimated at 300 to 400, pressed about them, they formed a semicircular perimeter.

The crowd continued to harass the soldiers and began to throw snow balls and other small objects at the soldiers. Private Hugh Montgomery was struck down onto the ground by a club wielded by Richard Holmes, a local tavernkeeper. When he recovered to his feet, he fired his musket, later admitting to one of his defense attorneys that he had yelled “Damn you, fire!” It is presumed that Captain Preston would not have told the soldiers to fire, as he was standing in front of the guns, between his men and the crowd of protesters. However, the protesters in the crowd were taunting the soldiers by yelling “Fire”. There was a pause of indefinite length; the soldiers then fired into the crowd. Their uneven bursts hit eleven men. Three Americans – ropemaker Samuel Gray, mariner James Caldwell, and a mixed race sailor named Crispus Attucks – died instantly. Seventeen-year-old Samuel Maverick, struck by a ricocheting musket ball at the back of the crowd, died a few hours later, in the early morning of the next day. Thirty-year-old Irish immigrant Patrick Carr died two weeks later. To keep the peace, the next day royal authorities agreed to remove all troops from the centre of town to a fort on Castle Island in Boston Harbor. On March 27 the soldiers, Captain Preston and four men who were in the Customs House and alleged to have fired shots, were indicted for murder.

The Trial of the Soldiers

At the request of Captain Preston and in the interest that the trial be fair, John Adams, a leading Boston Patriot and future President, took the case defending the British soldiers.

In the trial of the soldiers, which opened November 27, 1770, Adams argued that if the soldiers were endangered by the mob, which he called “a motley rabble of saucy boys, negroes, and molattoes, Irish teagues and outlandish jack tarrs,” they had the legal right to fight back, and so were innocent. If they were provoked but not endangered, he argued, they were at most guilty of manslaughter. The jury agreed with Adams and acquitted six of the soldiers. Two of the soldiers were found guilty of manslaughter because there was overwhelming evidence that they fired directly into the crowd, however Adams invoked Benefit of clergy in their favor: by proving to the judge that they could read by having them read aloud from the Bible, he had their punishment, which would have been a death sentence, reduced to branding of the thumb in open court. The jury’s decisions suggest that they believed the soldiers had felt threatened by the crowd. Patrick Carr, the fifth victim, corroborated this with a deathbed testimony delivered to his doctor.

Three years later in 1773, on the third anniversary of the incident, John Adams made this entry in his diary:

The Part I took in Defence of Cptn. Preston and the Soldiers, procured me Anxiety, and Obloquy enough. It was, however, one of the most gallant, generous, manly and disinterested Actions of my whole Life, and one of the best Pieces of Service I ever rendered my Country. Judgment of Death against those Soldiers would have been as foul a Stain upon this Country as the Executions of the Quakers or Witches, anciently. As the Evidence was, the Verdict of the Jury was exactly right.

“This however is no Reason why the Town should not call the Action of that Night a Massacre, nor is it any Argument in favour of the Governor or Minister, who caused them to be sent here. But it is the strongest Proofs of the Danger of Standing Armies.

Barack Obama’s plan to eliminate the Bush tax cuts for the wealthy pits rich against poor, but luckily, the poor aren’t buying it.

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.

March 4 is the 63rd day of the year (64th in leap years) in the Gregorian calendar. There are 302 days remaining until the end of the year.

In this day in 1933, at the height of the Great Depression, Franklin Delano Roosevelt is inaugurated as the 32nd president of the United States. In his famous inaugural address, delivered outside the east wing of the U.S. Capitol, Roosevelt outlined his “New Deal”–an expansion of the federal government as an instrument of employment opportunity and welfare–and told Americans that “the only thing we have to fear is fear itself.” Although it was a rainy day in Washington, and gusts of rain blew over Roosevelt as he spoke, he delivered a speech that radiated optimism and competence, and a broad majority of Americans united behind their new president and his radical economic proposals to lead the nation out of the Great Depression.

The only American president elected to more than two terms, he forged a durable coalition that realigned American politics for decades. FDR defeated incumbent Republican Herbert Hoover in November 1932, at the depths of the Great Depression. FDR’s combination of optimism and activism contributed to reviving the national spirit. Working closely with Winston Churchill and Joseph Stalin in leading the Allies against Germany and Japan in World War II, he died just as victory was in sight.

Starting in his “first hundred days” in office, which began March 4, 1933, Roosevelt launched major legislation and a profusion of executive orders that gave form to the New Deal, a complex, interlocking set of programs designed to produce relief (especially government jobs for the unemployed), recovery (of the economy), and reform (through regulation of Wall Street, banks and transportation). The economy improved rapidly from 1933 to 1937, but then went into a deep recession. The bipartisan Conservative Coalition that formed in 1937 prevented his packing the Supreme Court or passing much new legislation; it abolished many of the relief programs when unemployment practically ended during World War II. Most of the regulations on business were ended about 1975-85, except for the regulation of Wall Street by the Securities and Exchange Commission, which still exists. Along with several smaller programs, major surviving programs include the Federal Deposit Insurance Corporation, which was created in 1933, and Social Security, which Congress passed in 1935.

As World War II loomed after 1938, with the Japanese invasion of China and the aggressions of Nazi Germany, FDR gave strong diplomatic and financial support to China and Britain, while remaining officially neutral. His goal was to make America the “Arsenal of Democracy” which would supply munitions to the Allies. In March 1941, Roosevelt, with Congressional approval, provided Lend-Lease aid to the countries fighting against Nazi Germany with Great Britain. He secured a near-unanimous declaration of war against Japan after the Japanese attack on Pearl Harbor on December 7, 1941, calling it a “date which will live in infamy“. He supervised the mobilization of the US economy to support the Allied war effort. Unemployment dropped to 2%, relief programs largely ended, and the industrial economy grew rapidly to new heights as millions of people moved to new jobs in war centers, and 16 million men (and 300,000 women) were drafted or volunteered for military service.

Roosevelt dominated the American political scene, not only during the twelve years of his presidency, but for decades afterward. He orchestrated the realignment of voters that created the Fifth Party System. FDR’s New Deal Coalition united labor unions, big city machines, white ethnics, African Americans and rural white Southerners. Roosevelt’s diplomatic impact also resonated on the world stage long after his death, with the United Nations and Bretton Woods as examples of his administration’s wide-ranging impact. Roosevelt is consistently rated by scholars as one of the greatest U.S. Presidents.

“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”.

The Sunday Talking Heads:

Up with Chris Hayes: Joining Chris are Rev. Al Sharpton (@thereval), host of MSNBC’s “Politics Nation” and founder of the National Action Network; Rep. Steve Cohen (D-TN) (@repcohen), represents Tennessee’s 9th district in the Memphis area; Michelle Bernard (@michellebernard), founder, president, and CEO of Bernard Center for Women, Politics and Public Policy; Goldie Taylor (@goldietaylor), MSNBC contributor; Michael Castle, former governor and congressional representative (R-DE); and John McWhorter, Columbia University professor of linguistic and American studies and contributing editor at New Republic and TheRoot.com.

The Melissa Harris-Perry Show: The site has not announced Sunday’s guests.

This Week with George Stephanopolis: This weeks’s guests are GOP presidential candidate Newt Gingrich, and Obama campaign senior adviser David Axelrod.

The roundtable guests are ABC’s Christiane Amanpour and George Will, political strategist and ABC News contributor Donna Brazile, political strategist and ABC News political analyst Matthew Dowd, Wall Street Journal columnist Peggy Noonan, former Vermont Governor and founder of Democracy for America Howard Dean, and The Atlantic’s Jeffrey Goldberg debate all the week’s politics.

Face the Nation with Bob Schieffer: Indiana Republican Gov. Mitch Daniels, RNC Chairman Reince Priebus, Presidential candidates Newt Gingrich and Ron Paul.

The Chris Matthews Show: This week’s guests Kathleen Parker, The Washington Post Columnist; Bob Woodward, The Washington Post Associate Editor; Major Garrett, National Journal Congressional Correspondent; and Becky Quick, CNBC Co-Anchor, Squawk Box

Meet the Press with David Gregory: MTP’s guests are GOP presidential candidate Newt Gingrich and DNC Chair Debbie Wasserman Schultz. The roundtable weighs in on the latest developments in Decision 2012: Atlanta Mayor Kasim Reed, GOP strategist Mike Murphy, Time Magazine‘s Mark Halperin, and NBC’s Savannah Guthrie.

State of the Union with Candy Crowley: This Sunday GOP presidential candidate Newt Gingrich is making the rounds, along with fellow candidate, Ron Paul. Other guests include CNN Senior Congressional Correspondent Dana Bash and CNN Senior Political Analyst Ron Brownstein. Also, former U.S. Ambassador to Israel Martin Indyk; former Under Secretary of State Nick Burns; and Rep. C.A. Dutch Ruppersberger (D-Maryland) will discuss President Obama’s speech before AIPAC.

Welcome to the Stars Hollow Health and Fitness weekly diary. It will publish on Saturday afternoon and be open for discussion about health related issues including diet, exercise, health and health care issues, as well as, tips on what you can do when there is a medical emergency. Also an opportunity to share and exchange your favorite healthy recipes.

Questions are encouraged and I will answer to the best of my ability. If I can’t, I will try to steer you in the right direction. Naturally, I cannot give individual medical advice for personal health issues. I can give you information about medical conditions and the current treatments available.

You can now find past Health and Fitness News diaries here and on the right hand side of the Front Page.

   I never thought about adding vegetables to smoothies until I tasted a lunchtime smoothie my sister made that included spinach, pear and walnuts. These are ingredients I like in a salad, and it turns out they still work well together after taking a trip through the blender – especially with fresh ginger added to the mix.

   So this week I explored fruit and vegetable smoothies. I’d picked several pounds of oranges from a friend’s tree, so I used fresh orange juice as the liquid, and for each drink I combined one or two fruits with a vegetable. I didn’t use bananas, which so often go into my smoothies, as I don’t really like them with orange juice, and I didn’t add dairy to many of them. I was thinking the smoothies would make great snacks, but in fact these make satisfying meals. When I was testing and tasting, they were all I needed for breakfast and lunch. They’re packed with vitamins, especially C and A, beta carotene, and antioxidant-rich flavonoids.

Martha Rose Shulman

“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”.

The New York times: Crushing Homs

After a month of merciless bombardment, the forces of President Bashar al-Assad of Syria have taken Homs, the main rebel stronghold. Many of the brave residents have fled the city or been killed, adding to a death toll now estimated at more than 7,500 since the unrest began. [..]

The United States, Europe, the Arab League and Turkey need to make that case to China and Russia every chance they have. And they need to keep tightening their own sanctions. At some point, the Syrian military and business elites will decide that backing the dictator is a losing proposition. The United States and its allies also need to use all of their influence and coaching to help the opposition form a credible, multiethnic government, one that will respect all Syrians.

Robert Resich: Bye Bye American Pie: The Challenge of the Productivity Revolution

Here’s the good news. The economic pie is growing again. Growth in the 4th quarter last year hit 3 percent on an annualized rate. That’s respectable – although still way too slow to get us back on track given how far we plunged.

Here’s the bad news. The share of that growth going to American workers is at a record low.

That’s largely because far fewer Americans are working. Although the nation is now producing more goods and services than it did before the slump began in 2007, we’re doing it with six million fewer people.

Why? Credit technology. Computers, software applications, and the Internet are letting us produce more with fewer people.

I felt a special twinge the other day when I heard that Davy Jones had died of a heart attack at age 66. I thought, “Wow, he was 66? Where has time gone?” I wasn’t alone. The baby boomer generation is aging more rapidly than we care to admit and Davy’s death was a cruel reminder of the passage or our youthful idols.

Davy Jones was the British member a contrived American Rock and Roll group for a 1966 television series that was not so much a parody of the more famous Beatles but a mimic of the group that appealed to a slightly younger fan base. Not quites as popular as the British counterparts but The Monkees had their appeal and their hit songs, “Last Train to Clarksville”, “Daydream Believer” and “I’m a Believer” which became a hit once again when it was redone by Smashing Pumpkins for the movie “Shrek”. Off and on over the years thanks to MTV and the cable network, “Nickelodeon“, “Monkee Mania” was reignited and there were several reunions and tours.

The Monkees were the “cool” group that used to hang around with Frank Zappa, a very young Jack Nicholson, boxer Sonny Liston, famous stripper Carol Doda, Glenn Campbell and members of The Byrds. Many of their songs were written by . Neil Diamond, Gerry Goffin and Carole King, Harry Nilsson, Barry Mann, Cynthia Weil, and many other highly regarded writers. The musicians that accompanies the group were just as well known and accomplished, drummer “Fast” Eddie Hoh, Lowell George, Stephen Stills, Buddy Miles and Neil Young. The Monkees, too, were accomplished musicians and played their own instruments. From a contrived TV group, they proved to the world that they were a bona fide group.

In February 2011, Davy announced another reunion, An Evening with The Monkees: The 45th Anniversary Tour, which would be his last. Davy sadly passed away on February 29 and with him died part of the youth of many of his fans.

The Wheel Turns. Blessed Be

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.

March 3 is the 62nd day of the year (63rd in leap years) in the Gregorian calendar. There are 303 days remaining until the end of the year.

On this day in 1887, Anne Sullivan begins teaching six-year-old Helen Keller, who lost her sight and hearing after a severe illness at the age of 19 months. Under Sullivan’s tutelage, including her pioneering “touch teaching” techniques, the previously uncontrollable Keller flourished, eventually graduating from college and becoming an international lecturer and activist. Sullivan, later dubbed “the miracle worker,” remained Keller’s interpreter and constant companion until the older woman’s death in 1936.

Sullivan, age 20, arrived at Ivy Green, the Keller family estate, in 1887 and began working to socialize her wild, stubborn student and teach her by spelling out words in Keller’s hand. Initially, the finger spelling meant nothing to Keller. However, a breakthrough occurred one day when Sullivan held one of Keller’s hands under water from a pump and spelled out “w-a-t-e-r” in Keller’s palm. Keller went on to learn how to read, write and speak. With Sullivan’s assistance, Keller attended Radcliffe College and graduated with honors in 1904.

Helen Keller became a public speaker and author; her first book, “The Story of My Life” was published in 1902. She was also a fundraiser for the American Foundation for the Blind and an advocate for racial and sexual equality, as well as socialism. From 1920 to 1924, Sullivan and Keller even formed a vaudeville act to educate the public and earn money. Helen Keller died on June 1, 1968, at her home in Westport, Connecticut, at age 87, leaving her mark on the world by helping to alter perceptions about the disabled.

Despite what you hear about the economic growth, that silver lining is lightening. The negative equity in residential housing increased in the last quarter of 2011. In other words, 22.8% of all homes in the US are worth less than than they were when purchased. As per Core Logic that is an increase of 10.7 million homes, an increase of 0.7% from the third quarter.

CoreLogic … today released negative equity data showing that 11.1 million, or 22.8 percent, of all residential properties with a mortgage were in negative equity at the end of the fourth quarter of 2011. This is up from 10.7 million properties, 22.1 percent, in the third quarter of 2011. An additional 2.5 million borrowers had less than five percent equity, referred to as near-negative equity, in the fourth quarter. Together, negative equity and near-negative equity mortgages accounted for 27.8 percent of all residential properties with a mortgage nationwide in the fourth quarter, up from 27.1 in the previous quarter. Nationally, the total mortgage debt outstanding on properties in negative equity increased from $2.7 trillion in the third quarter to $2.8 trillion in the fourth quarter.

“Due to the seasonal declines in home prices and slowing foreclosure pipeline which is depressing home prices, the negative equity share rose in late 2011. The negative equity share is back to the same level as Q3 2009, which is when we began reporting negative equity using this methodology. The high level of negative equity and the inability to pay is the ‘double trigger’ of default, and the reason we have such a significant foreclosure pipeline. While the economic recovery will reduce the propensity of the inability to pay trigger, negative equity will take an extended period of time to improve, and if there is a hiccup in the economic recovery, it could mean a rise in foreclosures.” said Mark Fleming, chief economist with CoreLogic.

h/t Calculated Risk

And there is no relief in site for the vast majority of these homeowners, not even from the Foreclosure Settlement, as the Brookings Institution points out:

First, the borrower must be underwater, meaning owing more in mortgage debt than the house is worth. According to CoreLogic, there are 11.1 million underwater borrowers. Second, loans backed by Fannie Mae or Freddie Mac are not eligible for the principal reduction. According to analysis by the Federal Reserve of data from LPS Applied Analytics and CoreLogic, as of December, 14.1 percent of Freddie Mae loans were underwater and 11.3 percent of Fannie Mae loans were underwater. Taking the midpoint, and assuming there are 26 million Fannie or Freddie loans (about half of the number of existing loans), then there are approximately 3.3 million Fannie and Freddie underwater loans, bringing us to 7.8 million remaining borrowers eligible for the principal reduction. Third, the borrower must be delinquent or facing imminent default to qualify for the principal reduction. According to the Federal Reserve (PDF), approximately 28 percent of underwater borrowers are not current on their payments, bringing us to 2.2 million remaining borrowers. Third, the agreement is with the five largest mortgage servicing banks. According to Inside Mortgage Finance, the five banks service 55 percent of all loans, bringing us to 1.2 million remaining borrowers. Fourth, only owner-occupied homes are eligible. According to CoreLogic, 82 percent of underwater borrowers are owner occupied, bringing us to 1 million remaining borrowers.

There is another complication, in that some of these loans are held on the banks’ balance sheets, and others are part of mortgage-backed securities owned by outside investors. For the latter, the banks are contractually obligated to minimize losses to the investors, meaning it is unlikely they can reduce principal on these loans without facing the ire (and possible lawsuits) from the investors. Department of Housing and Urban Development Secretary Donovan acknowledged this problem by suggesting that the banks will target the principal reductions to the loans that they hold on their balance sheets. According to CoreLogic, about 41 percent of underwater borrowers had home equity loans, which typically are held on banks balance sheets. So even if these borrowers’ first loans do not qualify for a principal reduction, their second loans – which represent the bulk of their negative equity – do. Also according to CoreLogic, about 9 percent of underwater borrowers had no second loan and had their first loan held on banks’ balance sheets. Applying this 50 percent leaves us an estimate of 500,000 loans eligible for the principal reduction.

That’s just half of the homes the settlement was supposed to help. Thanks, Barack

h/t David Dayen at FDL News Desk