Interviewed about the Iranian President’s visit to Rome, Italy’s new defense minister Ignazio La Russa reaffirmed Europe’s commitment to sanctions–and hinted at the need for possibly expanding the sanctions regime to increase pressure. Naturally, Europeans are not eager to see military action against Iran–in the past, several European politicians forcefully decried any reference to a possible military option. It is a novelty then that La Russa, when asked about a possible military strike, said something else:
I don’t believe that today conditions exist [for a military strike]. In the history of mankind, unfortunately one can never rule out military action, it is the continuation of politics and diplomacy, but let’s hope this will never occur.
A European government minister is thus on the record in Europe on the possibility–admittedly remote–of military action. And admittedly, this is not exactly the dominant mood. EU foreign policy chief Javier Solana, after all, is slated to travel to Tehran soon to deliver new incentives to the uncooperative Iranians. Given Europe’s usual tone of forceful condemnation, this modest variation, even in the continent of Kantian perpetual peace, is a welcome change and a reminder that Iran cannot go on fooling all of the people all of the time.
From this remote observer, this so-called stimulus package is designed to accomplish 2012 reelection for Obama and 2010-12 Democrat majorities. Creating jobs is only incidental.
Further, when viewing the amounts and allocation targets, it is clear that traditional Democrat constituents are the dominant funding sources.
Politics in the stimulus? Okay for me but not for thee.
“Those rooting for an effective President and a new governing majority better hope the Senate does just that.” That would not include me. I’m hoping for a failure to pass any “stimulus;” and barring that, I’m hoping this golden turkey of a bill passes both chambers, unamended, on a straight party line vote. This bill puts the lie to the Change baloney, and will make a useful club with which to pound the socialist majority in less than 2 years.
It would really help if people knew how stimulus works. Tell your parents you’re expecting a child and see how fast they start spending money, even though the “stimulus” won’t arrive for months. It doesn’t matter how fast the money gets into circulation, because it’s not the government’s dollars that will repalce our lost wealth. All that matters is that people know it’s coming and so start gearing up to support it. That raises the stock market, and that raises wealth, and that starts people spending who have absolutely nothing to do with when the big digs start. (I’m overstating this a bit: we get no stimulus from projects that will be tied up in court, etc. I’m just saying that the certainty of spending is more important than its timing.)
I don’t mind even mind the pork. Just pass a bill and let people know that money is coming. The rest of the dominoes will take care of themselves.
The Republicans had an opportunity in Oct 2008 to stand against Bailouts and possibly win an election. Too late,too little!
The Senate Republicans will sell out and a compromise bill will emerge, and Republicans will, instead of looking principled, will look like Charlie Brown again.
RCAR – I agree, they had the chance and too many of them, along with McCain, sold their financial bona fides down the river.
This bill has almost no chance of doing what it says, it is primarily doling out money to democrat pressure groups in order to get the vote buying regime in place for 2010. Any GOP rep voting for this would be silly. Los Angelo, you might be right, but I am hoping they learned from the last go round.
And Lawrence, it won’t help, it will squeeze out money from the private sector, increase tax requirements sucking more money out of investment. People won’t spend when they don’t have jobs, and very little here will do a damn thing about that. I know Keynesian economics is having a rebirth; but empirically, it will depress the economy, not stimulate it. There are almost no actual economic studies with any evidence to suggest otherwise.
7
JEM Says:
Our Economy needs a huge injection of Assets,NO MORE DEBT, We need to start talking about those assets,where will they come from? And what will we do with those Assets,besides retiring Debt.
I honestly don’t get how anyone could support the Californication of the entire country. At least CA jacked its spending to completely unsustainable levels during the dot-com bubble, so you could at least pretend that they legitimately thought they’d be able to sustain the spending increases without catastrophic deficits, although of course no one with two brain cells to rub together would have thought that (hence the CA legislature!). But now we’re supposed to think that it’s an equally great idea to jack spending to completely unsustainable levels during a downturn, when there’s not even a pretense that it won’t explode the deficit permanently. When did I wake up in bizarro world?
JEM -
If the private sector were spending, squeezing money out of it would not be necessary. But the private sector is saving, as well it should. So government has to force people to spend by taking their money and spending it for them. That involves inevitable waste, abuse, and fraud. But even wasted money is stimulative if people know it’s coming.
You may be right – this may not help, but if not, it won’t be because the money is arriving too late.
RCAR #8 – I am sorry I don’t follow your point.
Lawrence, the reason the private sector is not spending is because they are watching their dollars unaware of what the future, including the regulatory environment. will bring them. The first TARP discussion killed lending because everyone was waiting to see if their toxic assets would be purchased by whatever government program was coming down the road. If you don’t know what the value of your assets are going to be, you hold. If a white night is going to come down the road and offer you .20 on the dollar that the market says is worth .10, you wait it out. This democratic pork of a bill has little element of stimulative spending associated with it even if you use a generous definition. This is mostly for social spending and will just increase the amount of government money sucking activity. There is no productivity gains here, nothing to incent people to hire people. Business tax policy reform would be nice, if you have to throw some individual tax relief to the few people who still actually pay them. I would like a permanent cap gains reduction, maybe a year long total cap tax holiday if you think it is necessary to get transactions moving, and a readjustment of the business income tax that reduces its rates and reduces the need for tons of tax attorneys.
CUT OUR TAXES!! Dang, this is getting frustrated, but it’s good to see the large news outlets shining a light on what is in this debacle. I hope the publicity of STD research, NEA handouts and the like being reporting on national news will give conservative Democrats the cover they need to vote against this bill. And if the GOP gets weak-knee’d all of a sudden, and votes in a substantial number for this grab bag, I might have to move to… well, I was gonna say Canada, but that isn’t any better. Let’s just say it would doom the GOP for generations.
I’m happy to see the Republicans overwhelmingly opposing Obama’s plan. It reaffirms my view that they still don’t understand that the worm has turned, and will need another sound thrashing or three at the polls before it starts to sink in.
13: So Hartscheiss hallucinates that what turns it on (i.e., thrashings) is good for everyone.
It would seem that the public is with the Democrats and against the Republicans. But I guess you’ll just have to find out for yourselves the year after next, won’t you?
Daddy, why won’t you call home like Mommy wants you to? We miss you. In your honor the other day I freed the gerbils from my Habitrail so they could live free now that Mr Obama is president. Mom almost stepped on one and screamed but that nice Mr.Bund from next door was over very quickly to capture him and put him back in the cage. I asked Mr. Bund if he wanted to play bailout Monopoly,you know the way you taught me, where the People own everything and rent is free if you are losing and don’t have any money. He said that sounded like going around in endless circles and in any event he was busy fashioning a wind turbine out of the propellor from your speed boat and some of your old snow boards. He says that he can sell the electricity he generates back to the Electric company.
Remember how you and I pasted a picture of a CFL over the one on my Monopoly Board?
Mommy is in a real state. She cries a lot and when she isn’t crying she is on the computer IM’ing someone. I think his name is lester. He doesn’t know how to use the Shift key, Mommy said she is trying to teach him. Mommy plays a game with him where she types in all caps and he types in lower case and then they giggle and pass knowing glances over the PC Camera you bought for me when I was away at the Ayers-Mao Summer Camp and I was sad because I missed my goldfish, I mean sea kittens, Raul and Fidel. Its the only time I see her even smile, except when she gives away your stuff to Mr.Bund. I am not sure I like Mr. Bund that much anyway. Remember when we used to play IED and we would put a pillow on the couch and scream Boom whenever someone sat near it? I did that to him and he told me he was going to send me to Guatemala Bay and that some NRA Agents were going to stick bamboo sticks under my fingernails until I confessed to putting peanut butter on his Pete Seeger Live at the Gulag CD. No, I don’t like him at all. I bet you would set him straight if you were here. Please come home soon. Che (your little lefty buddy)
Hey Bunders, I must really have a hold on you!
Wow, the Republicans all voted against the stimulus package. Political manna from heaven! Your side really knows how to warm a Democrat’s heart. Thank you, thank you, thank you!
I’m still waiting for somebody to return the favour and say …
“lipstick won’t help this pig“
I hope Obama will learn the appropriate lesson here, which is that there isn’t much point in trying to appease Republicans in the future. The amount of tax cuts in the package, and his cave-in on the contraception component, were useless sops to the wingnuts. In the future, Obama should ignore the Republicans completely.