Tag: TMC Politics

Congressional Game of Chicken: McConnell’s Plan: Let Obama Do It

Confused? You aren’t alone. The latest twist in the Rube Goldberg labyrinth of political maneuvering by the GOP to limit Barack Obama to one term has everyone scratching their heads.

Sen. Mitch McConnell’s “contingency plan” to let Obama raise the debt ceiling in a series of steps from now until after the 2012 elections at first glance looks like the greatest deal ever. On closer inspection of the term, may be the deal with the devil and it all depends on who you read, if you can figure out just what it is that’s being offered;

Basically the proposal is this: the deal that allows Republicans to vote no on raising the ceiling, then allows Obama to veto them and each time he must submit imaginary budget cuts which they can refuse to pass.

Got it? Well, neither does anyone else. McConnell seems to think that this will shift the onus of the artificial debt/deficit crisis that the GOP created onto the president. Reactions vary even within the left and the right:

Atrios:

What’s The Big Deal?

I don’t think it matters if they force Obama to come up with spending cut proposals that won’t go anywhere. He can just turn the whole thing into a farce, and do things like proposing to zero out the defense budget in year 10 or other things which obviously won’t happen.

Josh Marshall:

I don’t get why any Dems would see this as an “evil genius” move on McConnell’s part. Unless of course you’re inherently afraid of facing the voters with what you actually think is the best policy for the country (not a hypothetical for many Democrats). My take though is that it’s not evil genius at all. It’s hitting the escape hatch. It looks on the surface like it’s terrible politics for the Democrats but only if you never leave the DC bubble.

Judd Legum:

Senate Minority Leader Mitch McConnell is proposing a new plan that would give the Republicans everything they want – $2.5 trillion in spending cuts – plus 12 new chances to blame Obama for everything.

Steve Benen:

Following up on the last post, the details of Senate Minority Leader Mitch McConnell’s (R-Ky.) contingency plan for the debt ceiling are still coming together. At this point, I’m still not sure what to make of it, except to marvel at its Rube Goldberg complexity.(If Republicans simply took five minutes to pass a clean bill, the way they did seven times in eight years when Bush was in office, it’d save everyone a lot of headaches.)

A couple of things seem clear at this point. The first is that McConnell realized the talks were going nowhere – Democrats would continue to ask Republicans to compromise and the GOP would continue to refuse. That doesn’t only lead to a catastrophic outcome, it also makes Republicans look ridiculous. He needed a safety valve to get out of this – one that wouldn’t need new revenue – and this new plan fits the bill.

The second is that McConnell cares far more about politics and process than policy outcomes. His new scheme is cowardly and kind of pathetic to the extent that it shifts power away from Congress, but it will force a whole lot of votes on the debt, which the Minority Leader hopes will make Democrats feel uncomfortable. If a proposal leads to votes that can be used in attack ads, Mitch McConnell is necessarily pleased. If the proposal allows Republicans to vote against debt ceiling extensions without crashing the economy, he’s even more pleased.

It’s the practical details of the process that I’m still fuzzy on. Greg Sargent reported:

   [A]s McConnell said today, you would need two-thirds of both Houses of Congress to block Obama’s requests for the debt ceiling hikes. If the House and Senate did pass resolutions of disapproval, Obama would presumably veto them – requiring two thirds of both Houses to override the vetoes. […]

   At bottom, McConnell’s proposal is the latest GOP line on the debt ceiling – it’s Obama’s problem, not ours – taken to its logical and legislative conclusion.

Right. When John Boehner said earlier that the entire crisis isn’t his “problem,” the Speaker was probably being literal, or at least aspirational.

The one question I can’t find a solid answer to is what, if anything, would be cut and by how much. The Hill reported the administration would be required to “suggest spending cuts” to accompany three separate requests to raise the debt ceiling, “but would not require such cuts.” Obama could not, under this scenario, recommend new revenue.

If that’s right, then McConnell seems to be blinking awfully hard.

In other words, in this little scenario, President Obama would have to offer proposals for spending cuts, with no corresponding measures to raise revenue. But it also appears that these proposed cuts from the White House need not even be serious – Obama could present plans he doesn’t take especially seriously, with the full expectation that Congress could and probably would reject them.

It would make the process needlessly ugly and stupid, but McConnell’s plan would seem to allow for a debt-ceiling increase with no guarantee of any spending cuts at all. Republicans would get a bunch of chances to grandstand, and rant and rave about Democrats, while putting all of the onus on the White House, but that’s not much. Republicans were going to grandstand, rant, rave, and point fingers anyway.

Digby

The deal is certainly preferable on policy grounds to gutting Social Security, Medicare and Medicaid in a Grand Bargain. But it isn’t clean and it isn’t free. It feels like the death by a thousand cuts instead.

And Redstate where they are apoplectic:

Mitch McConnell is right now talking about making a historic capitulation. So fearful of being blamed for a default, McConnell is proposing a compromise that lets Barack Obama raise the debt ceiling without making any spending cuts at all..

Polling shows Americans are focused on jobs and the economy as priorities and either don’t care or don’t understand the ramifications of this tempest in the DC cesspool. They want the government to focus on creating jobs and, actually, want taxes raised on the wealthy. Truthfully, unless these entrenched egomaniacs don’t start doing what they were elected to do, they should all be on the unemployment lines in January of 2013.

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”.

Robert Sheer: The GOP’s Sick Priorities

How deceptive for politicians to stress “entitlements” when they talk about gutting Social Security and Medicare, two programs long paid for by their beneficiaries. The Republicans make it sound as if they’re doing us a favor, cutting government waste by seeking to strangle America’s two most successful domestic programs. And now Barack Obama seems poised to join their camp in undermining the essential lifeline for most of the nation’s seniors, many of whom lost their retirement savings in the banking meltdown.

These threatened programs are not government handouts to a privileged class, like defense contractors and bailed-out bankers, who do feel eminently entitled to pig out at the federal trough. On the contrary, Social Security and Medicare have been funded by a regressive tax that falls disproportionately on working middle-class income earners, while caps in the system leave the wealthy-most notably the hedge fund hustlers who helped cause today’s economic crisis-largely untaxed.

Jonathan Schell: The Fall of the House of Murdoch

New York – During the four decades since the Watergate affair engulfed US President Richard Nixon, politicians have repeatedly ignored the scandal’s main lesson: the cover-up is worse than the crime. Like Nixon, they have paid a higher price for concealing their misdeeds than they would have for the misdeeds alone.

Now, for once, comes a scandal that breaks that rule: the United Kingdom’s phone-hacking affair, which has shaken British politics to its foundations. Over the past decade, the tabloid newspaper The News of the World, owned by Rupert Murdoch’s News Corporation, targeted 4,000 people’s voicemail. The list includes not only royalty, celebrities, and other VIPs, but also the families of servicemen killed in Afghanistan and Iraq, and those of victims of the July 2005 terrorist attack in London.

New Tork Times Editorial: A Pathway Out of the Debt Crisis

Political gain, not economic sense or sound policy, has always been at the core of Republican strategy on the debt-ceiling talks – a cynical ploy to appear serious about cutting spending while actually holding hostage the nation’s strong credit rating. Now that the real risks to their strategy are becoming apparent, including the possibility of cutting off Social Security checks, the more experienced members of the party are beginning to rethink their plans.

On Tuesday, Senator Mitch McConnell, the Republican leader, proposed a convoluted fallback solution that would at least defuse the crisis his party created a few weeks ago by threatening to force the country into default on its national debts.

snip

All Mr. McConnell wants is the ability to yoke the debt increase to Mr. Obama, and his offer gives him two extra chances to do so. He hopes the maneuver will help his party win back the Senate and the White House, which remains a long shot. But at least he is no longer holding the economy hostage to his goals. It is now time for the House to reach a similar conclusion.

Amy Goodman: Soldier Suicides and the Politics of Presidential Condolences

President Barack Obama just announced a reversal of a long-standing policy that denied presidential condolence letters to the family members of soldiers who commit suicide. Relatives of soldiers killed in action receive letters from the president. Official silence, however, has long stigmatized those who die of self-inflicted wounds. The change marks a long-overdue shift in the recognition of the epidemic of soldier and veteran suicides in this country and the toll of the hidden wounds of war.

The denial of condolence letters was brought to national prominence when Gregg and Jannett Keesling spoke about the suicide of their son, Chancellor Keesling. Chance Keesling joined the Army in 2003. After active duty in Iraq, he moved to the Army Reserves, and was called back for a second deployment in April 2009. The years of war had taken a toll on the 25-year-old. As his father, Gregg, told me: “He was trained for the rebuilding of Iraq. He was a combat engineer. He operated big equipment and loved to run the big equipment. Finally, he was retrained as a tactical gunner sitting on top of a Humvee. Because there was really very little rebuilding going on.”

Jim Hightower: Tracking US Recession with the RPI (Regular People’s Index)

Economists and politicians keep their fingers on the pulse of the Dow Jones Average, following every tick of this narrow measure of Wall Street wealth.

But the truer indicator of America’s economic health is in the Doug Jones Average – how are workaday folks like Doug and Doreen doing? After all, the experts tell us that we’re now entering the third year of a glorious economic recovery from the Great Recession, so surely the bluebirds of happiness are chirping again in Dougland. But, listen: silence.

What killed off the bluebirds is the same greed of moneyed elites that caused the crash. Since the recession ended in July 2009, CEO pay is back in the stratosphere, corporate profits are up by nearly half, corporations are sitting on a record $2 trillion in cash, and the perky Dow Jones Average has soared by a delirious 90 percent, with nearly all of that gain being pocketed by the wealthiest 10 percent of Americans who own more that 80 percent of all stocks and bonds. The sounds you hear up there are the pop-pop-pop of Champagne corks.

Tom Engelhardt: Is the Obama National Security Team a Pilotless Drone?

George W. who?  I mean, the guy is so over.  He turned the big six-five the other day and it was barely a footnote in the news.  And Dick Cheney, tick-tick-tick.  Condoleezza Rice?  She’s already onto her next memoir, and yet it’s as if she’s been wiped from history, too?  As for Donald Rumsfeld, he published his memoir in February and it hit the bestseller lists, but a few months later, where is he?

And can anyone be surprised?  They were wrong about Afghanistan.  They were wrong about Iraq.  They were wrong about Saddam Hussein’s weapons of mass destruction.  They were wrong about what the US military was capable of doing.  The country imploded economically while they were at the helm.  Geopolitically speaking, they headed the car of state for the nearest cliff.  In fact, when it comes to pure wrongness, what weren’t they wrong about?

Americans do seem to have turned the page on Bush and his cronies.  (President Obama called it looking forward, not backward.)  Still, glance over your shoulder and, if you’re being honest, you’ll have to admit that one thing didn’t happen: they didn’t turn the page on us.

Christine Hines: Lawsuit Abuse, Indeed

A product malfunctions causing severe injury to your eight year old son. A corporation lays off your neighbor without reason after thirty years of service and age discrimination is suspected. The scenarios in which you or someone you know and care about may need to go to court are limitless, as are the potential consequences if HR 966 gets passed.

The House Judiciary Committee just approved the “Lawsuit Abuse Reduction Act,” HR 966 AKA “LARA.”

   Unfortunately, for anyone who cares about justice or about wise uses of their taxpayer dollars, HR 966 is yet another example of bills to add to the long list of “Clear Skies” and other let’s-call-this-bill-the-exact-opposite-of-what-it-actually-is-bills.

If the title wasn’t bad enough, the bill by Rep. Lamar Smith and Senator Charles Grassley, who sponsored the Senate version, S. 533, is deceptively cloaked in technical terms. What better way for Congressional lawmakers to slip this past ordinary citizens (the ones who will be at an even greater disadvantage if LARA moves forward as feared).

“Collateral Murder”

One of the many things that PFC. Bradley Manning has been accused of is the release of the “Collateral Murder” video which depicted the indiscriminate murder of innocent civilians and two Reuters journalists by an Apache helicopter crew in a suburb of Baghdad. Now former soldiers who were members of the ground troops are coming forward and speaking out about the video, illegal orders and how the media is unfairly depicting Manning to to cover up war crimes. These brave men are calling Manning a hero if he is indeed the person who released that video.

One of the responses was a criticism of how Manning is being used to propagandized the war by journalists, specifically referencing a personal profile of Manning by Stephen Fishman in the New York magazine. The article written by former Army Specialist Ethan McCord, who served in Bravo Company 2-16, the ground troops involved in the “Collateral Murder” video, is published in its entirety by Glenn Greenwald. Here is just a little of what Spec. McCord wrote:

Serving with my unit 2nd battalion 16th infantry in New Baghdad Iraq, I vividly remember the moment in 2007, when our Battalion Commander walked into the room and announced our new rules of engagement:

“Listen up, new battalion SOP (standing operating procedure) from now on: Anytime your convoy gets hit by an IED, I want 360 degree rotational fire. You kill every [expletive] in the street!”

We weren’t trained extensively to recognize an unlawful order, or how to report one. But many of us could not believe what we had just been told to do. Those of us who knew it was morally wrong struggled to figure out a way to avoid shooting innocent civilians, while also dodging repercussions from the non-commissioned officers who enforced the policy. In such situations, we determined to fire our weapons, but into rooftops or abandoned vehicles, giving the impression that we were following procedure.

snip

The video released by WikiLeaks belongs in the public record. Covering up this incident is a matter deserving of criminal inquiry. Whoever revealed it is an American hero in my book.

snip

Fishman removes politics from a story that has everything to do with politics. The important public issues wrapped up with PFC Manning’s case include: transparency in government; the Obama Administration’s unprecedented pursuit of whistle-blowers; accountability of government and military in shaping and carrying out foreign policy; war crimes revealed in the WikiLeaks documents; the catalyzing role these revelations played in democratic movements across the Middle East; and more.

Demonizing and discrediting those who expose the criminality and corruption is now the weapon of choice by journalists and the media that wish to be subservient to a corrupt government. As Greenwald said in his article:

Who needs White House fear-mongers, propagandists, plumbers and character assassins when so many in the establishment press compete so vigorously to perform those functions instead?

Manning is now being held at Ft. Leavenworth, KS after being subjected to months of conditions that amounted to torture in the brig at Quantico Marine Base. The U.N.’s top official on torture, Juan Mendez, announced last December that his office would formally investigate those conditions and has repeated requested private access to talk to Manning. He has been repeatedly refused permission by the Obama administration. Mendez is publicly accusing the Obama administration of violating U.N. rules. Considering the Obama administrations attack on whistle blowers and the continued refusal to prosecute the crimes they expose, they are very likely afraid of what Manning would say to Mendez.

Countdown with Keith Olbermann

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

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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”.

Eugene Robinson: Something to Squawk About

Washington has many lazy habits, and one of the worst is a reflexive tendency to see equivalence where none exists. Hence the nonsense, being peddled by politicians and commentators who should know better, that “both sides” are equally at fault in the deadlocked talks over the debt ceiling.

This is patently false. The truth is that Democrats have made clear they are open to a compromise deal on budget cuts and revenue increases. Republicans have made clear they are not.

Put another way, Democrats reacted to the “grand bargain” proposed by President Obama and House Speaker John Boehner by squawking, complaining and highlighting elements they didn’t like. This is known throughout the world as the way to begin a process of negotiation.

Republicans, by contrast, answered with a definitive “no” and then covered their ears. Given the looming Aug. 2 deadline for default if the debt ceiling is not raised, the proper term for this approach is blackmail.

John Nichols: If Obama Hikes Medicare Eligibility Age, That Will Be A Twelve Percent Benefit Cut

The word in Washington is that President Obama has, in negotiations with congressional Republicans, offered to raise the Medicare eligibility age from 65 to 67.

A report in the Washington Post quoted “a Democratic official familiar with the discussions,” while other media outlets quoted multiple unnamed sources with knowledge of the talks the president and congressional leaders have been engaged in with regard to raising the debt ceiling. All the reports suggest that Obama would trade the change in the eligibility age for a Republican agreement to accept some new taxes.

Obama essentially acknowledged as much Monday, when he said: “I’m prepared to take significant heat from my party to get something done.”

And rightly so.

Mark Weisbrot: Why the Euro Is Not Worth Saving

The Euro is crashing today to record lows against the Swiss Franc, and interest rates on Italian and Spanish bonds have hit record highs. This latest episode in the Eurozone crisis is a result of fears that the contagion is now hitting Italy. With a two-trillion dollar economy and $2.45 trillion in debt, Italy is too big to fail and the European authorities are worried. Although there is currently little basis for the concern that Italy’s interest rates could rise high enough to put its solvency in jeopardy, financial markets are acting irrationally and elevating both the fear and the prospects of a self-fulfilling prophesy. The fact that the European authorities cannot even agree on how to handle the debt of Greece – an economy less than one-sixth the size of Italy – does not inspire confidence in their capacity to manage a bigger crisis.

The weaker Eurozone economies – Greece, Portugal, Ireland, and Spain – are already facing the prospect of years of economic punishment, including extremely high levels of unemployment (16, 12, 14 and 21 percent, respectively).  Since the point of all this self-inflicted misery is to save the Euro, it is worth asking whether the Euro is worth saving. And it is worth asking this question from the point of view of the majority of Europeans who work for a living, i.e., from a progressive point of view.

James M Cypher: Nearly $2 Trillion Purloined from US Workers in 2009

In 2009, stock owners, bankers, brokers, hedge-fund wizards, highly paid corporate executives, corporations, and mid-ranking managers pocketed-as either income, benefits, or perks such as corporate jets-an estimated $1.91 trillion that 40 years ago would have collectively gone to non-supervisory and production workers in the form of higher wages and benefits. These are the 88 million workers in the private sector who are closely tied to production processes and/or are not responsible for the supervision, planning, or direction of other workers.

From the end of World War II until the early 1970s, the benefits of economic growth were broadly shared by those in all income categories: workers received increases in compensation (wages plus benefits) that essentially matched the rise in their productivity. Neoclassical economist John Bates Clark (1847-1938) first formulated what he termed the “natural law” of income distribution which “assigns to everyone what he has specifically created.” That is, if markets are not “obstructed,” pay levels should be “equal [to] that part of the product of industry which is traceable to labor itself.” As productivity increased, Clark argued, wages would rise at an equal rate.

George Zornick: Will Eric Cantor’s Financial Backers Allow Him to Kill a Debt Ceiling Increase?

House Democrats are circulating a resolution accusing majority leader Eric Cantor of a salacious conflict of interest: he owns shares in a fund that takes a short position on long-dated government bonds, which in layman’s terms means Cantor stands to profit if the government defaults on its debt, and so probably shouldn’t be such a prominent negotiator in the ongoing debt ceiling talks.

It’s a juicy bit of meat, but the attack is actually pretty silly. According the resolution, which was obtained by the Huffington Post, Cantor’s shares in that fund total $3,300, and it’s quite a stretch to imagine that someone who is worth as much as $7.7 million would tank the US economy in order to profit on such a paltry investment. (As Cantor’s spokesman also pointed out, his $263,000 government pension means he would lose more than he would gain if the government defaulted anyhow).

Cantor is a good target for Democrats, as he is now back in the driver’s seat of his party’s debt limit talks after House Speaker John Boehner was unable to win a large-scale deal. However, if one is to examine Cantor’s finances in search of a motive-and the finances that really matter, his campaign account and leadership PAC-a different story emerges. Cantor, much like the GOP as a whole, is so thoroughly beholden to Wall Street firms it’s hard to imagine he won’t agree to a deal by August 2.

Robert Weiner and John Horton,: End Trickle Down Economics to Pay Off Debt

President Obama has given speech after speech calling on Congress to reduce tax breaks for the wealthy to balance the budget. When President Clinton left office, the budget had been balanced for four consecutive years with surpluses projected through 2011. The tax rate for the wealthiest 2 percent of wage earners was 39.6 percent. President George W. Bush, however, chose to pursue the system of so-called “trickle-down” economics through tax breaks for the wealthiest Americans.

The result: surplus turned into deficit. By the end of Bush’s second term, the United States was embroiled in the gravest financial crisis since the Great Depression.

Trickle-down economics has not worked since Herbert Hoover tried it. It is a myth that adding money to the wealthy through tax cuts stimulates jobs and grows the economy. Under Democratic presidents since 1930 who have emphasized people programs and resisted tax breaks for the richest, annual growth in GDP has averaged 5.4 percent, according to Commerce Department and Office of Management and Budget statistics.

Mike Farrell: Extremely Unctuous

Raised in the Catholic Church, I was a pretty confused kid. Father O’Reilly, one of the priests at St. Peter’s, the church our family attended most of the time, spoke with such a pronounced brogue that I couldn’t follow him. But I didn’t understand the Mass either, so I smiled and pretended he made sense, just accepting him on faith along with the rest of it.

But at some point it all began to itch. Ours was the “One True Faith” and everyone else was damned to hell. Really? That was tough to think about, because some non-Catholics we knew seemed like pretty nice folks-well, most of them, anyway. And what about the people in Africa and other places who maybe never even had a chance to know about Jesus and Peter, The Rock Upon Which He Built His Church?

Hell for everybody but us? It clearly made some feel special, but I couldn’t make it sit right.

Countdown with Keith Olbermann

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Obama: Progressives, “Eat Your Peas”

Catfood is made out of peas? Who knew? lambert

This press conference tells us that the austerity crap isn’t some bit of political posturing, it’s a belief. We’re doomed. Atrios

The right wing Republican talking points that were spewed by President Obama at his press conference were so thick that it has left no doubt the president is about to sell out the middle class and poor.

President Obama said Monday that he had “bent over backwards” to forge a compromise with Republicans on a debt limit deal – and that it was time for them to “budge.”

“I am prepared to take on significant heat from my Party to get something done and I expect the other side to be willing to do the same thing,” he said. . . . .

“We have to pull off the Band-aid — to eat our peas,” he said.

I don’t often agree with NYT Columnist Russ Douthat but his analysis of the “madness” cuts to the point:

Barack Obama wants a right-leaning deficit deal.  

The not-so-secret secret is that the White House has given ground on purpose. Just as Republicans want to use the debt ceiling to make the president live with bigger spending cuts than he would otherwise support, Obama’s political team wants to use the leverage provided by those cra-a-a-zy Tea Partiers to make Democrats live with bigger spending cuts than they normally would support. . . .

Why? Because the more conservative-seeming the final deal, the better for the president’s re-election effort. In that environment, Republicans have every incentive to push and keep pushing. Since any deal they cut will be used as an election-year prop in 2012, they need to make sure the president actually earns his budget-cutting bona fides.

The problem is that voters don’t care about the deficit. They care about jobs and the economy. Spending cuts, tax cuts and austerity programs do ot create jobs. Even Ronald Reagan’s budget director, David Stockman, now admits that Reaganomics and the Bush tax cuts are a major cause of the current “debt crisis” and takes Obama and Rep. Paul Ryan to the “woodshed”

“In attacking the Bush tax cuts for the top 2 percent of taxpayers, the president is only incidentally addressing the deficit,” he writes. “Mr. Obama is thus playing the class-war card more aggressively than any Democrat since Franklin D. Roosevelt – surpassing Harry S. Truman or John F. Kennedy when they attacked big business or Lyndon B. Johnson or Jimmy Carter when they posed as champions of the little guy.”

“On the other side,” he continues, “Representative Ryan fails to recognize that we are not in an era of old-time enterprise capitalism in which the gospel of low tax rates and incentives to create wealth might have had relevance.”

Eat your peas, we are doomed.

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: No, We Can’t? Or Won’t?

If you were shocked by Friday’s job report, if you thought we were doing well and were taken aback by the bad news, you haven’t been paying attention. The fact is, the United States economy has been stuck in a rut for a year and a half.

Yet a destructive passivity has overtaken our discourse. Turn on your TV and you’ll see some self-satisfied pundit declaring that nothing much can be done about the economy’s short-run problems (reminder: this “short run” is now in its fourth year), that we should focus on the long run instead.

This gets things exactly wrong. The truth is that creating jobs in a depressed economy is something government could and should be doing. Yes, there are huge political obstacles to action – notably, the fact that the House is controlled by a party that benefits from the economy’s weakness. But political gridlock should not be conflated with economic reality.

Paul Rosenberg:

As things stand today, the US is hurtling toward a budget showdown in less than a month. Either President Obama will once again capitulate to extreme Republican budget-slashing demands, making Democrats seem as much of a threat to Medicare as Republicans, and virtually ensuring a GOP electoral sweep in 2012, or the US will default on its debt for the first time in its history, most likely plunging the world economy back into another five-continent recession, also costing Democrats the 2012 elections. These are the options left for a president and a political class completely divorced both from reality, and its own history of how one of the three greatest US presidents of all time steered the country from the brink of collapse eight decades ago

Entirely forgetting the real history of how Franklin D Roosevelt used activist government to save American capitalism from itself, the entire US political establishment is instead hypnotized by the false history woven around its most over-hyped president of all time: Ronald Reagan. Idolatry of Reagan’s supposed tax-cutting wonders propels the now widespread economic belief that up is down, that cutting government spending is the way out of – rather than into – a severe recession. At the same time, idolatry of Reagan’s supposed political wonders propels GOP extremists to ignore all other considerations.

Joseph E. Stiglitz: The Evils of Unregulated Capitalism

Just a few years ago, a powerful ideology – the belief in free and unfettered markets – brought the world to the brink of ruin. Even in its hey-day, from the early 1980s until 2007, US-style deregulated capitalism brought greater material well-being only to the very richest in the richest country of the world.

Indeed, over the course of this ideology’s 30-year ascendance, most Americans saw their incomes decline or stagnate year after year.

Moreover, output growth in the United States was not economically sustainable. With so much of US national income going to so few, growth could continue only through consumption financed by a mounting pile of debt.

I was among those who hoped that, somehow, the financial crisis would teach Americans (and others) a lesson about the need for greater equality, stronger regulation, and a better balance between the market and government.

Alas, that has not been the case.

Eugen Robinson: A little more revenue could go a long way

Do progressives care about reducing the national debt? Of course they do, no matter what the White House might believe.

“We think that obviously there are some Democrats who don’t feel as strongly about deficit reduction as [President Obama] does,” senior adviser David Plouffe said Wednesday at a breakfast with reporters and columnists. But that’s not obvious at all. It isn’t even true.

There’s no dispute about where we need to go. The question is what path to take.

Clearly, the federal government cannot continue spending at a rate of 25 percent of gross domestic product while taking in revenue that equals less than 15 percent of GDP, as is the case this year. We would reach the point where debt service crowds out health care, education and other priorities dear to progressives’ hearts. Major investments the nation desperately needs to make – for infrastructure and energy research, for example – would be impossible. Decline would be inevitable.

Steven J. D’Amico: Trade Deals are No Deal for US

LONG BEFORE 2008, when Wall Street’s unchecked greed brought the world’s economy to its knees, we in the middle class could feel our future slipping away. We knew that we were working longer and harder – we could see that even with two salaries, most families had less disposable income than families did in the 1960s and ’70s when one income was the norm. We knew that good quality jobs were harder to find and hold. And we knew that a big reason we were falling behind was a flawed trade policy that shipped many of our jobs overseas.

Yet even after losing 682,000 jobs to NAFTA since it took effect in 1994, and 2.4 million to China since it joined the World Trade Organization, Washington continues in its blind faith that somehow these trade deals are good for us. This summer Congress is expected to take up three new trade deals – with Korea, Panama, and Colombia. These trade pacts are bad for American workers, bad for our domestic economy, and bad for democracy.

New York Times: An Aggressive Ruling on Clean Air

The Environmental Protection Agency on Thursday issued a welcome and overdue rule compelling power plants in 27 states and the District of Columbia to reduce smokestack emissions that pollute the air and poison forests, lakes and streams across the eastern United States. The regulation reflects the E.P.A.’s determination to carry out its mandates under the Clean Air Act despite fierce Congressional opposition, and bodes well for progress on a host of other regulatory challenges the agency faces.

The rule, which takes effect in 2012, would cut emissions of sulfur dioxide, a component of acid rain, and nitrogen oxide, a component of smog, by more than half by 2014 compared with 2005 levels. The E.P.A. administrator, Lisa Jackson, said the rule would improve air quality for 240 million Americans in the states where the pollution is produced and in areas downwind.

Caroline Arnold: How Much Blame Do We Share for Our Leaders’ Failures?

Six years ago, in the wake of the botched management of Hurricane Katrina and its aftermath, a friend warned me against blaming Republicans.

I replied flippantly that as an unrepentant progressive, I quite enjoyed blaming Republicans, though I recognized that even the GOP, PNAC, and all their associated think-tanks and trained media rescue-dogs couldn’t have single-handedly created a disaster of that magnitude. I added that if the Republicans had planned Katrina, they probably would have directed it to Ohio. Of course there aren’t any hurricanes in Ohio, but heck, there weren’t any WMDs in Iraq, either.

Another friend who had volunteered in the cleanup of Katrina running a ham radio operation observed that among the agencies and organizations trying to help, the farther up the hierarchy of any institution, public or private, the worse prepared the people were, the more out of touch, the more incompetent, and the more their efforts were downright damaging.

… sounds like The Peter Principle to me. And an interesting corollary would probably be that the higher the hierarchy, the greater the level of incompetence.

Congressional Game of Chicken: GOP Smells Success

I think the GOP is smelling success in their goal of making President Obama a one term president. Even bloggers like the Rude Pundit doubt Obama:

At some point, Obama has to squash McConnell and Boehner like bugs (although he probably won’t)

Now that Boehner has once again walked away from the negotiating table, Senate Minority Leader Mitch McConnell made it clear on Fox News Sunday that his top priority is stopping Obama’s re-election:

Even with the country on the brink of default, the Senate’s highest ranking Republican says his “single most important” goal is to make Barack Obama a one-term president.

“The single most important thing we want to achieve is for President Obama to be a one-term president,” Senate Majority Leader Mitch McConnell told National Journal’s Major Garrett in October.

Fox News’ Bret Baier asked McConnell Sunday if that was still his major objective.

“Well, that is true,” McConnell replied. “That’s my single most important political goal, along with every active Republican in the country.”

“But that is in 2012,” he added. “Our biggest goal for this year is get this country straightened out and we can’t get this country straightened out if we don’t do something about spending, about deficit, about debt and get the economy moving again. So our goal is to have a robust vibrant economy to benefit all Americans.”

McConnell told Baier that a “Grand Bargain,” where Republicans agree to tax hikes in exchange for cutting Social Security and Medicare benefits, was likely off the table.

“I think it is. Everything they told me and the Speaker is to get a big package would require big tax increases in the middle of the economic situation that is extraordinarily difficult with 9.2% unemployment. We think it’s a terrible idea. It’s a job-killer.”

Priorities aside, what all these politicians don’t seem to understand is that austerity is the “job killer”, especially with the the job market and wages sinking like a rock. President Obama’s grand plan of $4 trillion in deficit reductions with cuts to vital social safety nets as the carrot and minuscule revenue increases, is even worse. This is all about maintaining the status quo for the wealthiest who have proven since the Bush tax cuts that they will just keep the money and screw the masses.

John Aravosis sums up this debacle quite succinctly:

Someone’s being played.  First the Republicans walked out of the Biden talks.  Now Boehner is refusing the President’s more than generous offer to cut Social Security and Medicare as part of a larger deal absurdly skewed towards GOP goals.  It’s those pesky tax increases, you see.  It’s just not enough that the President caved on a clean debt ceiling, caved on having an additional stimulus instead of spending cuts, caved on postponing spending cuts until the economy is well again, caved on at least making spending cuts equal to tax increases, and caved on keeping cuts to Social Security and Medicare out of this.

Mind you, it’s not entirely clear what the Republicans have even agreed to here in terms of any tax increases.

So the GOP walks, and Obama will just have to sweeten the deal to “save the hostages.”  Did anyone else see this coming?

Someone is being played alright, the American people.

I have no hope for any rational solution that is going to improve the economy and the job situation for Americans. It makes no difference who is in the White House at this point, or in 2012.  Obama will never stand up to McConnell and Boehner simply because he agrees with them. They are playing Russian Roulette with a loaded gun at the American people’s head.

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: This Week has exclusive interviews with White House Chief of Staff Bill Daley and IMF Managing Director and Chair Christine Lagarde.

The roundtable guests, George Will, Democratic strategist Donna Brazile, Bloomberg’s Al Hunt, and ABC News Senior Political Correspondent Jonathan Karl will discuss the “debt ceiling divide”.

Another roundtable with Vanity Fair columnist and ADWEEK editorial director Michael Wolff, NPR’s Nina Totenberg and CourtTV founder Steve Brill, will debate “the state of the media in this tabloid culture.”

Face the Nation with Bob Schieffer: Mr, Schieffer’s guests are Treasury Secretary Timothy Geithner, Sen. Jeff Sessions (R-AL) and Sen. Bill Nelson (D-FL).

The Chris Matthews Show: This Week’s guests, Bob Woodward The Washington Post Associate Editor, Andrea Mitchell, NBC News Chief Foreign Affairs Correspondent, Jamie Tarabay, National Journal Managing Editor and Clarence Page, Chicago Tribune Columnist, will discuss:

Is the Tea Party’s flirtation with default a big favor to Barack Obama?

Is Michele Bachmann too far right even for the GOP?

Meet the Press with David Gregory: Treasury Secretary Timothy Geithner is making the rounds. Republican presidential contender, former Minnesota governor Tim Pawlenty has his turn with Gregory.

The Washington Post’s Eugene Robinson and NBC’S Chief White House Correspondent and Political Director Chuck Todd join in a discussion of the debt ceiling fight and its impact on Obama’s 2012 reelection.

State of the Union with Candy Crowley: House Majority Whip Kevin McCarthy and Democratic Rep. Chris Van Hollen will have a stand off about the debt ceiling and its impact.

GOP Presidential candidate Rick Santorum will exam his chances of getting the GOP nod.

Ans finally. a look at the future of space exploration for the United States.

Fareed Zakaris: GPS: Fareed Zakaria asks Peter Godwin, author of “The Fear”, about whether the birth of South Sudan will be marred by war.

The New York Times’ Nicholas Kristof talks about whether Sudan will allow South Sudan to flourish.

This could change the conversation on these shows: John Boehner Rejects Obama’s Grand Bargain On Debt Ceiling

New York Times Editorial: The Worst Time to Slow the Economy

It was not surprising to hear the Republican presidential candidates repeat their tiresome claim that excessive government spending and borrowing were behind Friday’s terrible unemployment report. It was depressing to hear President Obama sound as if he agreed with them.

The Labor Department report showed virtually no job growth in June, with the unemployment level edging up to 9.2 percent from 9.1 percent the month before. It seemed to confirm last month’s indication that the economy had stalled. After the report came out, the president went to the Rose Garden and said he hoped that a conclusion to the current debt-ceiling talks would give businesses “certainty” that the government had its debt and deficit under control, allowing them to start hiring again.

Certainty? That sounds like Mitt Romney, or any of the other Republicans who have concocted a phony connection between hiring and government borrowing.

Jane Hamsher: Breaking Point: Obama and the Death of the Democratic Party

According to both the Washington Post and the New York Times, Obama is proposing cuts to Social Security in exchange for GOP support for tax hikes.

Nobody ever says they want to “cut” Social Security or Medicare. They want to “save” it.  Just ask Pete Peterson, he wants to “save” it. Likewise AARP.  They don’t want reduced benefits for senior citizens, they want to “preserve” it for future generations.  If they have an enormous customer base they can market private “add-on” accounts and other retirement products to when Social Security goes bye-bye, I guess that’s just a happy coincidence.

Now if you think that this is something the President is doing because it’s the only way to get Republican cooperation you can stop reading here, because we’re going to disagree.  From the moment he took the White House, the President has wanted to cut Social Security benefits.  David Brooks reported that three administration officials called him to say Obama “is extremely committed to entitlement reform and is plotting politically feasible ways to reduce Social Security as well as health spending” in March of 2009.  You can only live in denial for so long and still lay claim to being tethered to reality.

Amy Goodman: WikiLeaks, Wimbledon and War

Last Saturday was sunny in London, and the crowds were flocking to Wimbledon and to the annual Henley Regatta. Julian Assange, the founder of the whistle-blower website Wikileaks.org, was making his way by train from house arrest in Norfolk, three hours away, to join me and Slovenian philosopher Slavoj Zizek for a public conversation about WikiLeaks, the power of information and the importance of transparency in democracies. The event was hosted by the Frontline Club, an organization started by war correspondents in part to memorialize their many colleagues killed covering war. Frontline Club co-founder Vaughan Smith looked at the rare sunny sky fretfully, saying, “Londoners never come out to an indoor event on a day like this.” Despite years of accurate reporting from Afghanistan to Kosovo, Smith was, in this case, completely wrong.

Close to 1,800 people showed up, evidence of the profound impact WikiLeaks has had, from exposing torture and corruption to toppling governments.

Assange is in England awaiting a July 12 extradition hearing, as he is wanted for questioning in Sweden related to allegations of sexual misconduct. He has not been charged. He has been under house arrest for more than six months, wears an electronic ankle bracelet and is required to check in daily at the Norfolk police station.

Johann Hari: Would You Trust a Management Consultant with the World’s Rainforests?

Our protests stopped David Cameron handing UK forests over to corporations. Now the rainforests are being handed to management consultants

The two most dreaded words in any office are the same – management consultants. Their arrival rumbles through a workplace like the approaching thwump-thwump of the T-Rex in Jurassic Park, rattling our desks and making us all fear we will be picked up and gored at random. We’re right to be afraid – and scornful. According to “Rip Off”, a report on management consultants by David Craig, 170 organizations who used management consultants were studied in the 1990s by the Cranfield School of Management, and only 36 per cent of clients thought they had brought any value. We all know now that management consultants were threaded through the banksters and hedge funders who just crashed the global economy.

But now management consultancy has been taken to a whole new level, according to a startling new report by Greenpeace entitled: “Bad Influence: How McKinsey-inspired plans lead to rainforest destruction.” Management consultants have, in effect, been tasked with setting the future of the world’s rainforests – and facing accusations that they are using our money to draw up plans that will result in their more rapid destruction. Instead of stopping the loggers and miners, the report suggests they are aiding them.

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