Tag: Politics

The Economic Bad News Just Keeps Coming

The robust economy of Germany is starting to feel the effects of the economic crisis of its partner nations in the Eurozone and is showing signs of drastic slowing

Growth in the German economy slowed sharply between April and June and was weaker at the start of the year than previously thought, figures show.

The (German) economy grew by just 0.1% in the quarter, according to figures from the national statistics office. Growth in the eurozone as a whole also slowed.

Germany had been driving the economic recovery in the eurozone.

The figures come as German Chancellor Angela Merkel and French President Nicolas Sarkozy begin crunch talks.

The two leaders are discussing ways to solve the eurozone debt crisis that has threatened to engulf Italy and Spain and has sparked turmoil on global stock markets.

Figures also released on Tuesday showed that eurozone economic growth slowed to 0.2% in the second quarter, down from 0.8% in the previous three months.

The slow down has had its effect on markets in Europe and early trading in the US:

The news led European indexes lower. Germany’s DAX fell 2.6 percent, the FTSE in Britain was 1.3 percent lower, and in France the CAC 40 was down 1.9 percent.

In early trading, the Dow Jones industrial average was down 80.68 points, or 0.70 percent, at 11,402.22. The Standard & Poor’s 500-stock index was down 11.02 points, or 0.91 percent, at 1,193.47, and the Nasdaq composite index was down 26.38 points, or 1.03 percent, at 2,528.82.

“German G.D.P. data is the catalyst this morning that got us off to a bad start,” said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vt.

The German chancellor, Angela Merkel, and President Nicolas Sarkozy of France were to meet later Tuesday to discuss measures to contain Europe’s fiscal crisis. A joint news conference was scheduled at noon E.D.T.

Another component of the down turn is the idea of issuing bonds backed by all Eurozone nations to ease the crisis has been poo-pooed by both German Chancellor Angela Merkel and French President Nicholas Sarkozy but they may have no other choice:

The euro bond concept is gaining traction among economists and other outside experts like George Soros, the billionaire investor, as a way of preventing borrowing costs for Italy and Spain from rising so much that the countries become insolvent, an event that could destroy the common currency.

Debt issued and backed by all 17 members of the euro zone, euro bond proponents say, would be regarded as ultrasafe by investors and could rival the market for United States Treasury securities. The weaker euro members would benefit from the good standing of countries like Germany or Finland and pay lower interest rates to borrow than if left to face investors on their own.

“It may well be in order to calm markets right now,” said Jakob von Weizsäcker, an economist for the German state of Thuringia who has proposed a way to structure euro bonds so that countries would be encouraged to reduce their debt.

On the “bright side”, there is Nouriel Roubini:

.Karl Marx was right that globalization, financial intermediation, and income redistribution could lead capitalism to self-destruct

Now a combination of high oil and commodity prices, turmoil in the Middle East, Japan’s earthquake and tsunami, eurozone debt crises, and America’s fiscal problems (and now its rating downgrade) have led to a massive increase in risk aversion. Economically, the United States, the eurozone, the United Kingdom, and Japan are all idling. Even fast-growing emerging markets (China, emerging Asia, and Latin America), and export-oriented economies that rely on these markets (Germany and resource-rich Australia), are experiencing sharp slowdowns.

Until last year, policymakers could always produce a new rabbit from their hat to reflate asset prices and trigger economic recovery. Fiscal stimulus, near-zero interest rates, two rounds of “quantitative easing,” ring-fencing of bad debt, and trillions of dollars in bailouts and liquidity provision for banks and financial institutions-officials tried them all. Now they have run out of rabbits.

Fiscal policy currently is a drag on economic growth in both the eurozone and the United Kingdom. Even in the United States, state and local governments, and now the federal government, are cutting expenditure and reducing transfer payments. Soon enough, they will be raising taxes.

Countdown with Keith Olbermann

If you do not get Current TV you can watch Keith here:

Watch live video from CURRENT TV LIVE Countdown Olbermann on www.justin.tv

Punting the Pundits

“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”.

Warren Buffet: Stop Coddling the Super-Rich

OUR leaders have asked for “shared sacrifice.” But when they did the asking, they spared me. I checked with my mega-rich friends to learn what pain they were expecting. They, too, were left untouched.

While the poor and middle class fight for us in Afghanistan, and while most Americans struggle to make ends meet, we mega-rich continue to get our extraordinary tax breaks. Some of us are investment managers who earn billions from our daily labors but are allowed to classify our income as “carried interest,” thereby getting a bargain 15 percent tax rate. Others own stock index futures for 10 minutes and have 60 percent of their gain taxed at 15 percent, as if they’d been long-term investors.

New York Times Editorial: A Jobs Agenda, Anyone?

In what can only be described as a triumph of bad policy and craven politics, Congress and the Obama administration have spent the year focused on budget cuts, as the economy has faltered and unemployment has worsened. Official unemployment is 9.1 percent, but it would be 16.1 percent, or 25.1 million people, if it included those who can only find part-time jobs and those who have given up looking for work. For the past two and a half years, there have been more than four unemployed workers for every job opening, a record high, by far. In a healthy market, the ratio would be about one to one.

By a large margin, Americans have told pollsters that job creation is more important than budget cuts. Yet Republican leaders are wedded to austerity and appear to think that high unemployment will hurt President Obama politically more than it will hurt them, so they will likely resist efforts to create jobs, no matter how great the need.

Paul Krugman: The Texas Unmiracle

As expected, Rick Perry, the governor of Texas, has announced that he is running for president. And we already know what his campaign will be about: faith in miracles.

Some of these miracles will involve things that you’re liable to read in the Bible. But if he wins the Republican nomination, his campaign will probably center on a more secular theme: the alleged economic miracle in Texas, which, it’s often asserted, sailed through the Great Recession almost unscathed thanks to conservative economic policies. And Mr. Perry will claim that he can restore prosperity to America by applying the same policies at a national level.

So what you need to know is that the Texas miracle is a myth, and more broadly that Texan experience offers no useful lessons on how to restore national full employment.

Matt Miller: Why the center-left is fed up with Obama

Here’s the thing. I know Tea Party Republicans were behind the debt-ceiling standoff that wreaked needless damage on confidence in the United States. I wrote weeks ago of Standard & Poor’s outrageous nerve in threatening a downgrade when America’s ability to pay its debts can’t possibly be in doubt. In short, I know who the real villains are at this volatile moment.

So why am I so mad at Barack Obama?

I know I’m not alone. In conversations with folks across the center-left in recent days, everyone’s basically had it with the president. I’ve had policy frustrations before: Obama’s never aimed high enough on school reform and he’s failed miserably to advance a real jobs agenda, to name just two. I’ve said repeatedly that we need a third party to shake things up. But at the same time a part of me has always cut the president some slack – after all, look at the mess the man walked into! Yet somehow the debt-ceiling fiasco and the downgrade, punctuated by these horrific jobs numbers and stock market gyrations, has made something in me (and, I suspect, millions of others) snap.

Richard (RJ) Eskow: Shiny Happy Corporate People

Mitt Romney got a lot of press for telling a heckler at the Iowa State Fair that “corporations are people.” He did not go on to sing that Patti Smith song, People Have the Power.

But corporate “people” certainly do. Their power was on display this week, both in Washington and among the Republicans campaigning for the nomination.

John Nichols: Bernie Sanders Talks Up Primary Challenge to Obama as ‘a Good Idea for Our Democracy and for the Democratic Party’

Vermont Senator Bernie Sanders continues to argue that a Democratic primary challenge to President Obama would be “good for democracy and for the Democratic Party.”

Sanders will not be a candidate. The Vermont independent, who caucuses with Senate Democrats, is running for re-election in 2012.

But Sanders, who has been sharply critical of Obama’s compromises with the Republican right on economic and fiscal policy, continues to talk up the idea of a primary challenge as a vehicle to pressure the president from the left. He is not alone. Ralph Nader is actively encouraging a primary race. And one-third of Democrats and Democratic-leaning independents tell pollsters that they favor a primary challenge to the president, while just 59 percent oppose such a run.

Ben Adler: A Handful of Rural Right-Wing Extremists Chase Tim Pawlenty Out of the Race

A day after Saturday’s Iowa Straw Poll results came in-Michele Bachmann edged out Ron Paul, with Tim Pawlenty a distant third, just ahead of Rick Santorum and nobody Herman Cain-Pawlenty pulled the plug on his flagging presidential campaign. What does this tell us? That our system of nominating presidential candidates is badly broken, beholden to a small number of extremist party activists in a couple of arbitrarily chosen small, rural states and an unthinking media echo chamber.

The Iowa Straw Poll is not a nominating contest. No convention delegates are assigned there. It is a fundraiser for the Iowa state Republican Party. It is presumed to be significant because, according to campaign reporters like the New York Times’s Jeff Zeleny, it is “a test of organizing strength.” And organizing strength is considered an important capability in Iowa, where the anti-democratic caucus system depresses turnout relative to a normal primary. Since only hardcore activists will participate in the caucuses and they must be cajoled to the polls, the mind-numbing process of identifying and turning out every last supporter in Ottumwa County is a crucial component of campaigns to lead the free world. What this skill has to do with, say, balancing the federal budget is unclear. The mainstream media, meanwhile, reports on this ludicrous state of affairs as if it were an objective fact rather than a product of their own unhealthy obsession with Iowa. (After all, Iowa still only assigns a small number of delegates. If the media treated it like comparably sized Mississippi, the importance of who wins there would vanish.)

Robert Reich: Why the New Healthcare Law Should Have Been Based on Medicare (And What Democrats Should Have Learned By Now)

Remember the health-care debate? Congressional Republicans refused to consider a single-payer system that would automatically pool risks. They wouldn’t even consider giving people the option of buying into it.

The President and the Democrats caved, as they have on almost everything. They came up with a compromise that kept health care in the hands of private insurance companies. The only way to spread the risk in such a system was to require everyone to buy insurance.

Which is exactly what the two appellate judges in Atlanta objected to. The Constitution, in their view, doesn’t allow the federal government to compel citizens to buy something. “Congress may regulate commercial actors,” they wrote. “But what Congress cannot do under the Commerce Clause is mandate that individuals enter into contracts with private insurance companies for the purchase of an expensive product from the time they are born until the time they die.”

Most Americans seem to agree. According to polls, 60 percent of the public opposes the individual mandate. Many on the right believe it a threat to individual liberty. Many on the left object to being required to buy something from a private company.

More Economic Gloom On The Horizon

With states and cities struggling to balance their budgets with lay offs of workers, cuts to benefits and wages, as well as, reduction of aid to schools, hospitals, clinics, and other agencies, states government desperate for revenue are looking to on-line gambling but may run up against the obstacle of the Justice Department:

It’s an idea gaining currency around the country: virtual gambling as part of the antidote to local budget woes. The District of Columbia is the first to legalize it, while Iowa is studying it, and bills are pending in places like California and Massachusetts.

But the states may run into trouble with the Justice Department, which has been cracking down on all forms of Internet gambling. And their efforts have given rise to critics who say legalized online gambling will promote addictive wagering and lead to personal debt troubles.

The states say they will put safeguards in place to deal with the potential social ills. And they say they need the money from online play, which will supplement the taxes they already receive from gambling at horse tracks, poker houses and brick-and-mortar casinos.

“States had looked at this haphazardly and not very energetically until the Great Recession hit, but now they’re desperate for money,” said I. Nelson Rose, a professor at Whittier Law School, where he specializes in gambling issues.

When it comes to taxing gambling, he said, “the thing they have left is the Internet.”

Meanwhile the Obama administration is mulling over whether to take a tougher approach to economic issues:

Mr. Obama’s senior adviser, David Plouffe, and his chief of staff, William M. Daley, want him to maintain a pragmatic strategy of appealing to independent voters by advocating ideas that can pass Congress, even if they may not have much economic impact. These include free trade agreements and improved patent protections for inventors.

But others, including Gene Sperling, Mr. Obama’s chief economic adviser, say public anger over the debt ceiling debate has weakened Republicans and created an opening for bigger ideas like tax incentives for businesses that hire more workers, according to Congressional Democrats who share that view. Democrats are also pushing the White House to help homeowners facing foreclosure.

Even if the ideas cannot pass Congress, they say, the president would gain a campaign issue by pushing for them.

“The president’s team puts a premium on being above the partisan fray, which is usually the right strategy,” said Senator Charles E. Schumer of New York, the No. 3 Democrat in the Senate. “But on this issue, when he knows what the right thing to do is, and when a rather small group on one side is blocking any progress, you have to be willing to call that group out if you want to get anything done.”

While Obama drags his feet staying with his bipartisan tick that has made matters worse, the housing market continues to sink under the weight of 4.6 million homes with delinquent mortgages and real estate owned sitting empty and the jobs market stagnates with the U3 at 9.1% mostly because 193,000 people dropped out of the labor force and weak jobs growth. There were only 117,000 jobs created in July not nearly enough to even keep up with population growth.

Calculated Risk has two great graphs that illustrate the two problems:

Click in images to enlarge

It well past time for Obama and the Democrats to stop whining about the obstructive Congress. So whatsoever the White House puts forth won’t get passed, at least make it a fight you can take to the street to say you at least tried to do something. Pragmatic won’t get it done, it hasn’t for the last three years.

Punting the Pundits: Sunday Preview Edition

Punting the Punditsis 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:

This Week with Christiane Amanpour: Live from Ames, Iowa, Jake Tapper interviews the GOP presidential contenders, Rep. Michelle Bachmann and Former Minnesota Gov. Tim Pawlenty.

The round table will also be from Ames with ABC’s George Will and Matthew Dowd, ABC News Political Director Amy Walter, author and radio host Laura Ingraham, and Radio Iowa News Director Kay Henderson.

Face the Nation with Bob Schieffer: CBS News Chief White House Correspondent Norah O’Donnell sits in for Schieffer live form Ames, Iowa. Her guests will include GOP presidential candidate Michele Bachmann. Plus the Democratic response from DNC Chairwoman Rep. Debbie Wasserman Schultz (D-FL).

The Chris Matthews Show: This week’s guests are Nia-Malika Henderson, The Washington Post National Political Reporter, Howard Fineman, The Huffington Post Senior Political Editor, David Ignatius, The Washington Post Columnist and Jamie Tarabay, National Journal Managing Editor who will discuss Obama’s crisis of leadership and can Rick Perry beat Mitt Romney?

Meet the Press with David Gregory: Gregory will interview Rep. Michelle Bachmann. The round table with Iowa’s Governor Terry Branstad (R), GOP strategist Mike Murphy, the Washington Post’s Eugene Robinson, senior political reporter for Politico, Jonathan Martin, and NBC News Political Director, Chuck Todd, will mostly babble about Iowa, Perry & Obama.

State of the Union with Candy Crowley:

More Iowa, don’t bother.

Fareed Zakaris: GPS: No information available at the time this was published.

John Nichols: Can We Have Health Reform Without an Individual Mandate? Yes, It’s Called ‘Medicare for All’

The essential vote on the 11th Circuit Court of Appeals panel that ruled that the individual-coverage mandate in President Obama’s healthcare reform is unconstitutional did not come from a reactionary Republican appointed by Ronald Reagan or George W. Bush.

Rather, it came from respected jurist whose two appointments to the federal bench-first as a judge for the Northern District of Georgia in 1994 and then to the 11th Circuit in 1997-were made by then-President Bill Clinton. No, Judge Frank Mays Hull is not a raging lefty, but nor is she a right-wing judicial activist. A former law clerk for Judge Elbert Parr Tuttle, who as the chief justice of the US Court of Appeals for the Fifth Circuit from 1960 to 1967 led the court in issuing a series of epic decisions on behalf of civil rights, Judge Hull has a reputation as a moderate defender of the rule of law who has earned reasonable marks for her pragmatic and decidely mainstream interpretations of the Constitution.

Connie Schultz: Are You Angry Enough to End a War?

Keep cool, Daniel Webster once said. Anger is not an argument.

Wise advice, but it sets an impossible standard if we reflect on the loss of 30 Americans in a single incident in Afghanistan. Perhaps only prolonged and widespread anger will bring an end to this relentless loss of American lives.

Last Saturday, in the single deadliest loss for U.S. forces in Afghanistan, 30 American men were killed after a rocket-propelled grenade took down their Chinook helicopter. Twenty-two of the dead were Navy SEALs, many of them from SEAL Team Six, which carried out the raid that killed Osama bin Laden, although the Pentagon said none of the dead participated in that raid. Seven Afghan soldiers and an Afghan interpreter also were killed.

Sounding like John Wayne on a 1950s movie set, Marine Gen. James Mattis, commander of U.S. Central Command, offered his take on the tragedy:

“We grieve for our lost comrades and especially for their families, yet we also remember that the lads were doing what they wanted to be doing and they knew what they were about,” he told the Los Angeles Times. “This loss will only make the rest of us more determined — something that may be difficult for those who aren’t in the military to understand.”

And there it is, the timeworn admonition that only those who serve in the military understand the military mind, and the rest of us should just keep our opinions to ourselves.

Mark Engler: The Verizon Strike as the Next Wisconsin

The picket lines are up. This past weekend 45,000 Verizon workers on the East Coast, represented by the Communications Workers of America (CWA) and the International Brotherhood of Electrical Workers (IBEW), went on strike. The cause of the strike was the company’s attempts to win massive concessions from the unions. Verizon argued that the employees should give up gains they had won over many years of struggle and negotiation in previous contract fights.

As the Wall Street Journal put it, “Verizon Communications Inc. is seeking some of the biggest concessions in years from its unions.” Demands include the weakening of health-care benefits, cuts in pensions, reduced job security, and elimination of paid holidays such as Martin Luther King, Jr. Day. This despite the fact that the company reported billions in profit last year, and that, in the words of New York Times reporter Steven Greenhouse, “Verizon’s top five executives received a total of $258 million in compensation, including stock options, over the last four years.” The unions argue that Verizon has made some $20 billion in profit in the same time period, and Citizens for Tax Justice has pointed out that the company has done so while paying little to nothing in corporate income taxes.

Michelle Chen: Target Comes Under Fire Around the World

The retail giant Target is under fire from all sides, for union-busting at home and labor violations overseas. The reports that have come out in the past several weeks highlight a continuum of cruelty in the global supply chain.

Though WalMart has long served as labor’s arch nemesis, United Food and Commercial Workers (UFCW) has lately zeroed in on Target as a new battlefield-with its hundreds of thousands of employees and recent expansion into the supermarket sector. Although UFCW Local 1500 recently lost a vote to unionize a branch in Valley Stream, New York, their campaign deftly exposed Target’s arsenal of intimidation and smear tactics, which ranged from anti-union websites to leaflets warning that a yes vote might ruin the company and force the store to close.

Punting the Pundits

“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”.

Paul Krugman: United States vs. Europe: Who Is Worse Off?

In recent online commentary for The New York Times, Simon Johnson, the former chief economist for the International Monetary Fund, considered who is in worse shape – America or Europe?

“In the near term, the Europeans have the bigger problem – and this will only be compounded by slower growth in the United States (home to about one-quarter of the world economy),” Mr. Johnson wrote on July 28. “Over the longer haul, it remains to be seen when and how politicians in the United States will take up the real budget issues.”

Basically I agree with his assessment: Europe has more fundamental problems in sheer economic terms, because it adopted a single currency without the necessary institutions to make it workable. The United States has a long-run budget problem, but our current mess is entirely political. Unfortunately, that doesn’t make it any easier to solve.

New York Times Editorial: Magical Unrealism

There was nothing particularly surprising about the shrill skirmishing at the ideological edges of Thursday night’s Republican presidential debate in Iowa. What was shocking were the antics in the center.

In full public view, the party’s mainstream jumped the tracks of reality on issues of spending and taxes, brightly illustrating the ruinous magical thinking that has led to a downgrade of the nation’s credit and invited a double-dip recession. When asked if they would reject a deal to cut the deficit that had 10 times the amount of spending cuts as it had tax increases, the hands of all eight candidates went up. Even a tincture of new revenue, though mixed with huge cuts in government spending, would be too much for the modern Republican Party.

Jacqueline Marcus: Why Did Obama Choose Oil Money Over Struggling Polar Bears Facing Extinction?

At some point, there has to be a line drawn between corporate profits and the sanctity of life.  True, these are extremely hard times for the majority of jobless Americans, and the harder it gets for them financially speaking, the easier it becomes for the oil and coal executives to get their way, which doesn’t take much when they’ve successfully corrupted legislators to such a far-reaching extent that it’s easy to prove there is no distinction between the U.S. government and the oil and coal industries.  They put down the big piles of cash-and they get what they want.  

Operating in a corrupt political system explains why this president cares about one thing and one thing only: getting re-elected and making sure that he gets plenty of corporate money to compete against the Republican candidate who will also receive millions of dollars from the same industrial polluters.  As journalist Travis Smiley and Princeton University Professor Cornel West explained to Amy Goodman on Democracy Now! : “Obama is associated much more with the oligarchs than with poor people.”  If starving children in America don’t sway the heart, will dying polar bears?

This is a president who threw his own people under the bus in order to please the billionaire oligarchs.  For example, the Obama White House refused to be associated with Wisconsin’s union protesters as reported in the New York Times “when West Wing officials discovered that the Democratic National Committee had mobilized Mr. Obama’s national network to support the protests, they angrily reined in the staff at the party headquarters.”

Charles M. Blow: Genuflecting to the Tea Party

I must confess that every time Representative Michele Bachmann uttered the phrase “as president of the United States” during Thursday’s Republican presidential debate I blacked out a little bit, so I’m sure that I missed some things.

But one thing that I didn’t miss was the moment when all the candidates raised their hands, confirming that they felt so strongly about not raising taxes that they would all walk away from a hypothetical deficit-reduction deal that was as extreme as 10 parts spending cuts to one part tax increases.

That moment should tell every voter in America everything about this current crop of Know-Nothings – no person who would take such a stance is fit to be president of the United States or any developed country.

William Rivers Pitt: Next Stop: Train Wreck

And so here we are, at the next stage of this comic opera/disaster movie/smash-and-grab robbery known as the “debt-limit crisis.” Leadership in both the House and Senate have tapped the twelve members who will make up the so-called “Super-Committee,” which will be responsible for coming up with a plan to cobble together $1.2 trillion in spending cuts by Thanksgiving.

It is a motley crew, to be sure.

The Republican side of the equation is comprised of Senators Rob Portman (Ohio), John Kyl, (Arizona), and Patrick Toomey (Pennsylvania), along with Representatives Fred Upton (Michigan), Jeb Hensarling (Texas) and Dave Camp (Pennsylvania). To a man – and note well that Republican leadership selected a racially and sexually homogenized crew for this – they are hard-liners who will likely not budge when it comes to tax revenues. Kyl is a boon companion of GOP Senator Mitch McConnell, Toomey was once president of the far-right group Club for Growth, and Portman used to be budget director for none other than George W. Bush. Each and every one of these men has taken Grover Norquist’s anti-tax pledge, which bodes very ill for any revenue enhancements making it into the deal.

Joe Nocera: Boycott Campaign Donations!

Howard Schultz, the chairman and chief executive of Starbucks, has always been the kind of boss who wears his heart on his sleeve. So it came as no surprise to Starbucks employees when, on Monday, he sent out a long, passionate, companywide e-mail entitled “Leading Through Uncertain Times.”

In it, he wrote about his frustration over “the lack of cooperation and irresponsibility among elected officials as they have put partisan agendas before the people’s agenda” – creating an enormous crisis of confidence in the process. He said that Starbucks had a responsibility “to act in ways that can ease the collective anxiety inside and outside the company.” It needed to continue creating jobs. It had to maintain its generous package of employee benefits. And it was critical, Schultz wrote, for employees “to earn our customers’ trust by being respectful of their own life situations – whatever it may be.”

Mary Bottari: Recall Walker? It’s Up to Feingold

For the first time in the state’s history, Wisconsin recalled two sitting State Senators simultaneously. While it was a difficult and historic achievement in two districts that voted for Scott Walker in 2010, it fell short of the three seats needed to flip the Senate from Republican to Democratic control and put the brakes on Governor Scott Walker’s radical agenda.

While Walker’s collective bargaining bill sparked the recalls, voters were also worried about the state budgetary moves which cut almost a brillion from local schools, while giving out $200 million in tax breaks for big corporations. No jobs plan (other than tax breaks) has been proposed and, contrary to spin from the Governor, joblessness is growing in this state at twice the rate of the federal level.

Countdown with Keith Olbermann

If you do not get Current TV you can watch Keith here:

Watch live video from CURRENT TV LIVE Countdown Olbermann on www.justin.tv

Health Care Law Mandate Ruled Unconstitutional

This afternoon the individual mandate of the Affordable Health Care Act has been found unconstitutional. A three panel court of the 11th Circuit Court of Appeals in Florida upheld a lower court ruling that had held the entire ACA to be unconstitutional. The ruling determined that individuals cannot be forced to purchase expensive private health care insurance from birth to death or face penalties. The court allowed the rest of the law to stand.

   – It is immaterial whether we perceive Congress to be regulating inactivity or a financial decision to forego insurance. Under any framing, the regulated conduct is defined by the absence of both commerce or even the “the production, distribution, and consumption of commodities”-the broad definition of economics in Raich… To connect this conduct to interstate commerce would require a “but-for causal chain” that the Supreme Court has rejected, as it would allow Congress to regulate anything.

   – In sum, the individual mandate is breathtaking in its expansive scope. It regulates those who have not entered the health care market at all. It regulates those who have entered the health care market, but have not entered the insurance market (and have no intention of doing so). It is over inclusive in when it regulates:it conflates those who presently consume health care with those who will not consume health care for many years into the future. The government’s position amounts to an argument that the mere fact of an individual’s existence substantially affects interstate commerce, and therefore Congress may regulate them at every point of their life.

In June, the 6th Circuit in Ohio had ruled that the mandate was constitutional for Congress to mandate Americans buy health care insurance. As David Kurtz at TPM makes a couple of very important points:

  • usually these suits are only ever get heard before a three judge panel but because of the legal significance of this case the entire court may decide to hear the case. Either way this will in all probability be fought out in the Supreme Court.
  • Because of the conflicting rulings between legal authorities, it is more likely than not that the case will get decided by the Supreme Court

Florida et al v. Dept. Of Health & Human Services et al

Punting the Pundits

“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”.

Paul Krugman: The Hijacked Crisis  

Has market turmoil left you feeling afraid? Well, it should. Clearly, the economic crisis that began in 2008 is by no means over.

But there’s another emotion you should feel: anger. For what we’re seeing now is what happens when influential people exploit a crisis rather than try to solve it.

For more than a year and a half – ever since President Obama chose to make deficits, not jobs, the central focus of the 2010 State of the Union address – we’ve had a public conversation that has been dominated by budget concerns, while almost ignoring unemployment. The supposedly urgent need to reduce deficits has so dominated the discourse that on Monday, in the midst of a market panic, Mr. Obama devoted most of his remarks to the deficit rather than to the clear and present danger of renewed recession.

New York Times Editorial: A Scalpel, Not an Ax, for Medicaid

Many states are struggling to balance their budgets by curbing spending on Medicaid, a joint state-federal program that provides health insurance for the poor and disabled. They have little choice because Medicaid is one of their biggest, fastest-growing expenses. The risk is that injudicious cuts could harm their most vulnerable citizens.

A lawsuit, which the Supreme Court is scheduled to hear in the coming term, will determine whether there is any recourse for Medicaid beneficiaries who may have less access to health care because of such cuts. Beneficiaries need the right to sue – and to negotiate legal settlements – so that they can force states to consider whether reducing provider payments will limit access to care.

Joe Conason: Franken Calls for Oversight of Ratings Agencies

With world markets suddenly sagging under the weight of the Standard & Poor’s Aug. 5 downgrade of Treasury bonds, Sen. Al Franken, D-Minn., is disturbed by the monopolistic power of the ratings agencies-and still determined to curb their abuses, as he tried to do last year with an amendment to the Dodd-Frank banking reform bill.

In an exclusive Monday interview for The National Memo, the Minnesota Democrat said that the misconduct of the ratings agencies led directly to the economic catastrophe that S&P’s rating decision has made even worse. Franken wondered aloud why his proposed reforms of the ratings industry should still be subject to “study” rather than action by the Securities and Exchange Commission.

David Sirota: Collateral Damage in the War on Anonymity

From warrantless wiretapping to ever-present surveillance cameras, our world is right now in the midst of a long war on anonymity.

In the media and political arenas, we’ve seen paparazzi culture famously fetishize the outing of anonymous iconoclasts, from Watergate’s Deep Throat (Mark Felt) to a top CIA agent working on weapons of mass destruction (Valerie Plame). Likewise, in our communities, we now know that we are almost always being monitored in highly trafficked parks, malls, airports and stadiums-and as Slate recently reported, we may soon have apps on all of our smartphones that let us identify random faces in a crowd.

Eugene Robinson: Washington Deserves America’s Disapproval

It’s sobering that three-fourths of Americans, according to a new Washington Post poll, have little or no confidence in our elected leaders to solve the nation’s economic problems. At this point, though, it’s hardly surprising.

If anything, we should be shocked and alarmed that 26 percent of our fellow citizens apparently believe the president and Congress are going to make it all better. Are they not paying attention? Or are they delusional?

The manic-depressive swings we’ve seen in the stock market all week just serve to heighten the general anxiety, like the soundtrack of a horror film. Seesaw gains or losses of hundreds of points on the Dow tend to mask the overall trend, which is downward-and also distract attention from the fact that markets in Europe and Asia are heading in the same direction. The world is trillions of dollars poorer than it was just a couple of weeks ago.

Trillions, by the way, are the new billions.

Bill Boyarsky: America Is a Spark Away From Riots of Its Own

As President Barack Obama tried to calm a United States facing the threat of financial disaster, riots raged across the Atlantic in London and other British cities. Could it happen here, as our nation adopts British-style austerity and suffers through worsening unemployment? It certainly could, just as it has in the past.

As a reporter and then a columnist for the Los Angeles Times 20 years ago I covered the genesis, the explosion and the aftermath of the Los Angeles riot of 1992, described by author Lou Cannon as “the nation’s deadliest race riot since the Civil War.”

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