Tag: Politics

Vice President Joe Biden started a storm over marriage equality when he announced on Meet the Press that same sex marriage was OK with him. The press immediately wanted to know if President Obama’s position had “evolved.” The Biden interview was taped on Friday, so the White House was fully aware of what he had said. Finally, after three days of media over kill, the passage of Amendment 1 in North Carolina and the drying up of donations from the LGBT community, Pres. Obama announced that he “personally” supported same sex marriage. But hold your horses, people, this was just his personal opinion, not his political policy. Obama is still refusing to issue an executive order that would ban discrimination of gays, lesbians and transgender workers by federal contractors. From Sam Stein at Huffington Post:

The senior administration officials declined to say whether the president would now push for gay marriage to be part of the Democratic Party’s platform at the convention. They also said they were not changing positions on an Executive Order that would ban discrimination on the basis of sexual orientation against federal contractors. The president has said he would not sign that order. [..]

There were, however, reasons why even party officials were insisting, not all that long ago, that the president needed to put this off until after the election. There is concern that support for gay marriage will drive away voters in some conservative-leaning swing states. There is even more concern that Republican operatives can and will use the issue to go after the president.

Letting each state decide on the equality of individuals is not the best idea either. How would individuals have voted in states like Mississippi if they had been given the choice about civil rights? Marriage equality is a federal matter since states are required under the Constitution to recognize marriage contracts from other states. Therefore, they should not be permitted to restrict marriage to heterosexual couples.

Does anyone at this point seriously believe that any of the people who voted for NC’S Amendment 1 will ever vote for Obama, no matter what his stand is on marriage equality? Only time will tell if the campaign donation faucet suddenly opens since it had dried up because of the work place discrimination issue. While it is certainly admirable and, in the case of Obama being a sitting president, momentous, for him to have made an official statement, the President still needs to “walk the walk”, back up his words and sign the anti-discrimnation executive order.  

“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”.

Follow us on Twitter @StarsHollowGzt

Joseph E. Stiglitz: After Austerity

New York – This year’s annual meeting of the International Monetary Fund made clear that Europe and the international community remain rudderless when it comes to economic policy. Financial leaders, from finance ministers to leaders of private financial institutions, reiterated the current mantra: the crisis countries have to get their houses in order, reduce their deficits, bring down their national debts, undertake structural reforms, and promote growth. Confidence, it was repeatedly said, needs to be restored.

It is a little precious to hear such pontifications from those who, at the helm of central banks, finance ministries, and private banks, steered the global financial system to the brink of ruin – and created the ongoing mess. Worse, seldom is it explained how to square the circle. How can confidence be restored as the crisis economies plunge into recession? How can growth be revived when austerity will almost surely mean a further decrease in aggregate demand, sending output and employment even lower?

Paul Krugman: Britain’s Leaders Force Nation Down Wrong Economic Path

When David Cameron became prime minister of Britain and announced his austerity plans – buying completely into both the confidence fairy and the invisible bond vigilantes – many were the hosannas, from both sides of the Atlantic.

Pundits in the United States urged President Obama to “do a Cameron”; Mr. Cameron and George Osborne, the chancellor of the Exchequer, were the toast of Very Serious People everywhere.

Now Britain is officially in double-dip recession, and has achieved the remarkable feat of doing worse this time around than it did in the 1930s.

US stocks continue to dip and oil fell to below the $100 mark as the Europeans are balking at austerity only budgets that have exacerbated the recession. Nobel prize winning economist, Nuriel  Roubini weighed in on the crisis in Spain and Greece.

“Greece is going to be the first country that’s going to restructure and exit,” he said. “Others will leave also.”

“By the end of the year Spain is going to lose market access,” Roubini said in a subsequent CNBC interview. “They’re going to require a bailout. That will keep them out of the markets for a year or two. That’s not going to work out – then maybe two years down the line then you have a restructuring of the debt…And eventually even Spain could exit the euro zone-but it’s not something that’s going to happen in 12 months.”

Roubini also predicted that Spain economic situation was similar to Greece and Portugal and would require a bail out but with caveats:

And yet despite the clear signs of failure in the existing bailout countries, the EU looks set to pursue an unchanged plan in Spain. But the crucial difference between Spain and the bailout countries is size. If things go wrong in Greece, Portugal and Ireland, a second bailout is affordable. But there can only be one roll of the dice for a country as large as Spain.

A bailout package would buy some time for Spain, but time will only help if it is used to generate economic growth. By making private claims on the sovereign junior to the claims of the troika (European Commission, European Central Bank and International Monetary Fund) even a bailout risks reducing the chances of it regaining market access. Moreover, with economic indicators showing Spain sinking further into recession, a turnround in the country’s economic performance would require a significant shift in policy: monetary easing by the ECB, a weaker euro, fiscal stimulus in the core, less front-loaded austerity in the periphery, more international firewalls and debt mutualisation.

“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”.

Follow us on Twitter @StarsHollowGzt

Wednesday is Ladies’ Day

Katrina vanden Heuvel: On Saving Good Journalism

New models will allow investigative journalism to thrive

Last week, we awoke to a headline as sensational as anything the now-defunct News of the World might have printed: “Rupert Murdoch not fit to run a major company.” It was quite the fall for someone whose hope, reportedly, was “to conquer the world.” Murdoch’s protracted tumble from the top has exposed the incestuous relationships between the media, political and financial elite of England, and the corruption that imperils the very institution of British journalism. But here in America, where accountability journalism is also under siege, we would be wise to see the crisis across the pond as a cautionary tale. [..]

If we are to successfully combat the corporatization and gutting of media, we must develop new public funding sources for accountability journalism, and train the next generation of reporters to honestly and boldly seek the truth. This is not a radical proposition; other countries, including those at the top of The Economist’s index of free and democratic states – publicly fund independent journalism. But necessary change will not come until an engaged society demands it.

Bryce Covert: The Great Recession Is Pushing Women Out of the Workforce

Friday’s jobs report seemed to grab headlines for one aspect in particular: the labor force participation rate, i.e., the number of people either working or looking for a job, fell to 63.8 percent, the lowest level since 1981. That means more and more people are dropping out-retiring, turning to something else like grad school or just giving up on the prospect of a job altogether. But there was a debate about how much of a bad sign this is. Is it because the recession has made people lose hope of finding gainful employment? Or is it just because baby boomers are hitting prime retirement age and moving to Miami?

It’s likely a combination of factors. But there seems to be a big difference in what’s driving men and women to leave the labor force.

Greek, French and German voters went to the polls this past weekend and rejected pretty much told the European leaders they were very unhappy with the austerity measures that were being forced on them to bail out European banks. It took until yesterday for the world markets to react to this new reality with the Dow closing below its inflated 13,000 mark. Germany, the chief cheerleader for austerity, is not happy with France and very displeased with the new Greek leadership that blithely told Germany what to do with its austerity measures:

Alexis Tsipras, whose bloc came second in Sunday’s vote, said Greek voters had “clearly nullified the loan agreement”. [..]

The European Commission and Germany say countries must stick to budget cuts.

European Commission President Jose Manuel Barroso said on Tuesday: “What member states have to do is be consistent, implementing the policies that they have agreed.”  [..]

Mr Tsipras made his position clear to reporters in a five-point plan:

 

• Cancelling the bailout terms, notably laws that further cut wages and pensions
• Scrapping laws that abolish workers rights, particularly a law abolishing collective labour agreements due to come into effect on 15 May
• Promoting changes to deepen democracy and social justice
• Investigating Greece’s banking system which received almost 200bn euros of public money
• Setting up an international committee to find out the causes of Greece’s public deficit and putting on hold all debt servicing

It looks increasingly like the Greeks will be abandoning the Euro, it’s just a matter of when:

“Germans are now predominantly of the opinion that they would be better off if Greece left the euro zone,” said Carsten Hefeker, a professor of economics and an expert on the euro at the University of Siegen. “If the country really is continuing on the path they are taking now, it would be hard to justify keeping them in. How do you deal with a country that says we don’t want to keep any of the commitments we have made?” [..]

Perhaps the one card Greece has to play is the danger its exit could pose to other, much larger members like Spain and Italy, with far greater consequences. If Greece were pushed out, Mr. Hefeker said, the bond markets would start betting on the next country to be kicked out. “Then Spain or Italy would be put under pressure, and the danger would be of the whole euro zone collapsing,” he said.

There are few options are open for the European Union, the European Central Bank and the International Monetary Fund which is holding most of Greece’s debt and easing the threat to the banks.

First, the so-called “troika” could release just enough funds to keep the government running until the political situation stabilizes;

The terms of the agreement could be renegotiated with the creditors:

Or, lastly, the “troika” could just refuse to give Greece any money, as the IMF did over 10 years ago when Argentina faced similar economic crisis. This actually turned out well for Argentina over a shorter recovery than is predicted for Greece under the current terms.

Perhaps it is past time for Greece to go it on its own and let the Eu continue the blood letting without them.

“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”.

Follow us on Twitter @StarsHollowGzt

Richard (RJ) Eskow: Sarkozy’s Footsteps: Will the Democrats Be Next?

And another one bites the dust.

French President Nicolas Sarkozy just became the latest politician to lose his job because he wouldn’t let economic experience — or political common sense — sway him from the path of austerity.

Will Sarkozy’s downfall help Democrats learn what he never could? Democrats should consider Sarkozy’s fate a cautionary tale — and a call to action. If they rally around the cause of growth, jobs, and optimism, the nation will benefit and they’ll rewarded at the polls.

But if they keep pushing their own brand of “austerity lite,” they — and we — will have gained nothing from the lessons of Europe. iI won’t matter how much more extreme the Republicans are. Democrats, who hold the White House and the Senate, will still be seen as the party in charge — the one that presided over a terrible economy and, if the “Grand Bargainers” have their way, the one that cut popular government programs.

They’ll also run the risk of paying the same price Nicolas Sarkozy paid.

Dean Baker: Bernie Sanders Advocates a Free Market in AIDS Drugs

Drugs are cheap. Patent monopolies are expensive. These are simple facts that everyone should know but for some reason few do.

The point here is simple; the vast majority of drugs are cheap to produce. Chain drug stores sell hundreds of generic drugs for $5-$7 per prescription. They can do this profitably because few drugs require expensive chemicals or manufacturing processes.

However, many brand drugs sell for hundreds or even thousands of dollars per prescription. This is due to the fact that drug companies have patent monopolies on these drugs. The government will arrest anyone who produces these drugs without the permission of the patent holder. Since drugs can be essential for people’s health and/or life, if they can find a way to pay any price demanded by the drug companies, they will.

Cross posted from Docudharma

Obesity has been on the rise in the United States for years and it has now become America’s costliest disease:

U.S. hospitals are ripping out wall-mounted toilets and replacing them with floor models to better support obese patients. The Federal Transit Administration wants buses to be tested for the impact of heavier riders on steering and braking. Cars are burning nearly a billion gallons of gasoline more a year than if passengers weighed what they did in 1960.

[..] The startling economic costs of obesity, often borne by the non-obese, could become the epidemic’s second-hand smoke. Only when scientists discovered that nonsmokers were developing lung cancer and other diseases from breathing smoke-filled air did policymakers get serious about fighting the habit, in particular by establishing nonsmoking zones. The costs that smoking added to Medicaid also spurred action. Now, as economists put a price tag on sky-high body mass indexes (BMIs), policymakers as well as the private sector are mobilizing to find solutions to the obesity epidemic.

[..] The U.S. health care reform law of 2010 allows employers to charge obese workers 30 percent to 50 percent more for health insurance if they decline to participate in a qualified wellness program. The law also includes carrots and celery sticks, so to speak, to persuade Medicare and Medicaid enrollees to see a primary care physician about losing weight, and funds community demonstration programs for weight loss.

[..] Because obesity raises the risk of a host of medical conditions, from heart disease to chronic pain, the obese are absent from work more often than people of healthy weight.

[..] The medical costs of obesity have long been the focus of health economists. A just-published analysis finds that it raises those costs more than thought.

[..] For years researchers suspected that the higher medical costs of obesity might be offset by the possibility that the obese would die young, and thus never rack up spending for nursing homes, Alzheimer’s care, and other pricey items.

There is a bright side to being obese:

An obese man is 64 percent less likely to be arrested for a crime than a healthy man. Researchers have yet to run the numbers on what that might save.

And it’s not just adults.

Today’s Kids May Be Destined for Adult Heart Disease

Solution lies in instilling healthy habits, not adding medication, experts say

An array of factors has been deemed key to a healthy heart by the American Heart Association, including maintaining a healthy weight, being physically active on a regular basis, eating a healthy diet, not smoking and keeping blood pressure, cholesterol and glucose levels normal.

But half of U.S. kids meet just four or fewer of these health criteria, according to a report, Heart Disease and Stroke Statistics — 2012 Update, which was published in Circulation.

And, among those in high school, 30 percent of girls and 17 percent of boys do not get the recommended 60 minutes a day of physical activity, the report noted.

In addition, a report from the U.S. Centers for Disease Control and Prevention found that one in five children had abnormal cholesterol levels, which prompted the American Academy of Pediatrics to issue new guidelines recommending that all children 9 to 11 years old be screened for high cholesterol levels.

h/t watertiger at Dependable Renegade

“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”.

Follow us on Twitter @StarsHollowGzt

Paul Krugman: Those Revolting Europeans

The French are revolting. The Greeks, too. And it’s about time.

Both countries held elections Sunday that were in effect referendums on the current European economic strategy, and in both countries voters turned two thumbs down. It’s far from clear how soon the votes will lead to changes in actual policy, but time is clearly running out for the strategy of recovery through austerity – and that’s a good thing.

Needless to say, that’s not what you heard from the usual suspects in the run-up to the elections. It was actually kind of funny to see the apostles of orthodoxy trying to portray the cautious, mild-mannered François Hollande as a figure of menace. He is “rather dangerous,” declared The Economist, which observed that he “genuinely believes in the need to create a fairer society.” Quelle horreur!

Harold Meyerson: Europe finds austerity a tight fit

Europe has seen austerity, and it doesn’t work. [..]

The United States has austerity demons of its own, of course. While the private sector has rebounded somewhat from the 2008-09 collapse, creating 4 million jobs since the turnaround began in 2010, state and local governments have shed 611,000 employees – including 196,000 teachers – since President Obama took office, The Post’s Zachary A. Goldfarb reported. The shrinking of government ranks high among the drags on the U.S. recovery. The 2009 stimulus provided funding to states and cities that enabled them to keep many workers on the job, but when that funding began running out in 2010, layoffs, particularly among teachers, redoubled.

The lesson of 2008 was that unregulated finance ends in disaster. The lesson of the years since is that austerity in a time of economic weakness not only perpetuates that disaster but makes it worse. The world, one might think, would have learned this lesson from the 1930s; Germany, at least, should have. Alas, it apparently has to be relearned, painfully, again and again.

While all eyes were on France, the ouster of Nicholas Sarkozy and a rejection of austerity, Iran has been conducting its first elections since the 2009 elections that reinstalled Mahmoud Ahmadinejad as president. This was the second round of voting for seats in the Parliament elections that were held in March. It has dealt a blow to Ahmadinejad and his supporters with a shift to more conservative backers of Ayatollah Ali Khamenei. The rift between Ahmadinejad and the Ayatollah began with dispute over the choice of the national security chief. The voting has left the Ayatollah firmly in charge:

With the bulk of seats decided in Iran’s parliamentary elections, it appeared on Sunday that the supreme leader, Ayatollah Ali Khamenei, has gained the ironclad majority he needed not just to bring the country’s president to heel, but to eliminate the position entirely.

Ayatollah Khamenei has jousted repeatedly with President Mahmoud Ahmadinejad – as well as the two previous presidents – so the supreme leader secured this majority at Mr. Ahmadinejad’s expense.

The ayatollah will seek “to eliminate the post of president,” said Aliakbar Mousavi Khoeini, a former reformist member of the Parliament now living in exile in the United States.

“If they can get that, they will not hold the next presidential election; instead, Parliament will chose a prime minister,” he said. “Then Khamenei will essentially have everything he does approved and pushed through Parliament by his allies.”

Ayatollah Khamenei suggested last October that Iran would be better off governed under a parliamentary system in which the prime minister was chosen from members of the 290-seat Parliament. Under Iran’s byzantine electoral system, most reformist candidates were barred from running in last Friday’s election, essentially creating a contest between the two main hard-liner camps.

With 90 percent of the districts counted, Ayatollah Khamenei’s allies had won about 75 percent of the 200 seats in those districts, according to Press TV, Iran’s state-financed satellite channel, quoting the Interior Ministry.

Khamesian said Ahmadinejad was gradually fading from Iran’s political scene but could still stir up conflict with parliament.

“Ahmadinejad is the losing party. So, he will try to create tensions in the hope of getting concessions,” he said.

The outgoing parliament and Ahmadinejad are at loggerheads over how quickly to slash food and energy subsidies. The president favors dramatic cuts to boost Iran’s ailing economy by reducing the massive drain on the state budget from the subsidies.

The government implemented a first phase of slashing subsidies in December 2010. Gasoline prices quadrupled and bread prices tripled after the cuts came into effect. Prices have also increased in recent months, partly as a result of sanctions over Iran’s nuclear program, as well as news that the government is considering ending subsidies altogether.

Parliamentary speaker Ali Larijani, one of Ahmadinejad’s opponents, said the parliament won’t allow him to quickly end the remaining subsidies because it would cause wild inflation and public dissatisfaction.]

(Reuters) – Iranian President Mahmoud Ahmadinejad, now out of favor with Supreme Leader Ayatollah Ali Khamenei, suffered more setbacks in a run-off parliamentary election seen as a pointer for next year’s presidential race, results showed on Saturday.

The authorities hailed the outcome as a resounding triumph for Iran as it prepares for nuclear negotiations with the West.

Results announced by the Interior Ministry showed the United Principalist Front, closely linked with Khamenei and critical of Ahmadinejad, leading Friday’s vote, but with the hardline Resistance Front of the Islamic Revolution close behind.

The allegiance of the Resistance Front is tricky to fathom. It also backs Khamenei, but some members have served under Ahmadinejad. Some still support the president, others dislike his chief of staff, accused of trying to undermine Iran’s theocratic system.

At the heart of this election were Iran’s nuclear energy program and continued subsidies for food and energy which have been cut, and along with Western sanctions, have resulted in drastic increases in the price of gas and bread:

“The vote is support for the ruling system as it faces the U.S. and its allies over the nuclear program … The vote also means that tensions will increase between Ahmadinejad and his opponents in the incoming parliament,” political analyst Ali Reza Khamesian said.

Khamesian said Ahmadinejad was gradually fading from Iran’s political scene but could still stir up conflict with parliament.

“Ahmadinejad is the losing party. So, he will try to create tensions in the hope of getting concessions,” he said.

The outgoing parliament and Ahmadinejad are at loggerheads over how quickly to slash food and energy subsidies. The president favors dramatic cuts to boost Iran’s ailing economy by reducing the massive drain on the state budget from the subsidies.

The government implemented a first phase of slashing subsidies in December 2010. Gasoline prices quadrupled and bread prices tripled after the cuts came into effect. Prices have also increased in recent months, partly as a result of sanctions over Iran’s nuclear program, as well as news that the government is considering ending subsidies altogether.

Parliamentary speaker Ali Larijani, one of Ahmadinejad’s opponents, said the parliament won’t allow him to quickly end the remaining subsidies because it would cause wild inflation and public dissatisfaction.

It’s difficult to tell how this will effect talks about Iran’s nuclear energy program but it will hopefully cool the the saber rattling rhetoric, letting saner voices prevail. We can hope.

“Europe is watching us, I am sure that when the result was announced, in many European countries there was relief, hope and the notion that finally austerity can no longer be the only option.

“And this is the mission that is now mine — to give the European project a dimension of growth, employment, prosperity, in short, a future. This is what I will say as soon as possible to our European partners and first of all to Germany, in the name of the friendship that links us and in the name of our shared responsibility.”

“We are not just any country on the planet, just any nation in the world, we are France.”

~François Hollande, President-elect of France~

François Hollande is the new President of France defeating Nicholas Sarkozy. With half the votes counted, M. Hollande won a narrow victory with 50.8% to Sarkozy’s 49.2%, as per the French Interior minister. According to exit polls, the vote is closer to 52% for M. Hollande.

Crowds roared at the center-left candidate’s campaign headquarters as the exit poll results came out Sunday evening.

“Many people have been waiting for this moment for many long years. Others, younger, have never known such a time. … I am proud to be capable to bring about hope again,” Hollande said in his victory speech.

Celebratory car horns blared along the Champs-Elysees in Paris.

“It’s a great night, full of joy for so many young people all across the country,” said Thierry Marchal-Beck, president of the Movement of Young Socialists.

Hollande will be the nation’s first left-wing president since Francois Mitterrand left office in 1995.

His victory and the elections in Greece and Germany are sending economic shock waves through Europe:

François Hollande’s election threw down the gauntlet to Angela Merkel, the German Chancellor, who has railroaded the eurozone into agreeing a new “fiskalpakt” treaty enshrining Germany’s austerity doctrine.

The economic doctrine of austerity, to cut the burden of state spending to free up the economy, has ruled supreme with the support all of Europe’s leaders, the European Union and financial markets.

But political leaders were on Sunday night conceding the consensus had been shattered beyond repair.

With Europe’s economies plunging further into recession and as unemployment in the eurozone breaks record levels, voters demands for a new approach had finally become to great to ignore.

The popular backlash to EU imposed austerity to the centrist New Democracy and Socialist parties in Greece threatens the existence of the euro itself.

While in Germany, Chancellor Merkel was sent a message from German voters:

Exit polls by German broadcaster ARD put Mrs Merkel’s Christian Democrats at 30.5 per cent, just one per cent more than the left-wing Social Democrats.

But the Free Democrats, Mrs Merkel’s ailing coalition ally, scored a lowly 8.5 per cent, meaning that the coalition that has ruled the rural state on the Danish border since 2009 faces the prospect of being unseated.

Experts predict that the Social Democrats will try to cobble a coalition together with the Greens, the third biggest party, in order to take control of the state. [..]

While the Free Democrats appears to have avoided the humiliation of being wiped out all together in Schleswig-Holstein the continuing unpopularity of the party could force Mrs Merkel to search for a new coalition partner come next year’s federal elections.

I don’t think this is a surprise to most Europeans. It should be a clear message to the leaders of countries who are considering only austerity measures as a solution to debt.