Commentary Magazine


Topic: Timothy Geithner

Dems Still in Denial on Entitlements Doom

The political class may lack the will to deal with impending doom of the two largest entitlements in the federal budget, but that doesn’t mean that the clock isn’t ticking until the moment when both Medicare and Social Security will run out of money. The annual reports of the trustees of these two federal programs were released this afternoon, and the verdict is just a bit darker than last year’s report. According to the figures, the Social Security trust fund will be exhausted in 2033, three full years earlier than last year’s estimate. The news about Medicare was no worse than 12 months ago but was already bad enough. It will collapse in 2024.

These alarming pieces of news ought to be greeted with dismay and resolve to deal with the entitlements problem that is leading the country to insolvency. But one end of the political spectrum believes things are just fine:

Representative Nancy Pelosi of California, the Democratic leader, said that “Despite the repeated efforts of Republicans to privatize Social Security and end the Medicare guarantee, these vital initiatives remain strong.” She argued that the trustees’ report “demonstrates that health care reform has strengthened Medicare by extending its solvency.”

This complacence would be shocking if it were not rooted in a basic tenet of liberal ideology. Despite the nonsense she uttered about the strength of the programs, Pelosi and other liberals understand that no government program no matter how financially ruinous will ever truly run out of money so long as the government retains the power to confiscate as much of the income of the public as the federal leviathan needs. The essential difference between the parties about how to deal with this problem is not so much about the existence of the problem but whether the solution should be found in the pockets of the taxpayers.

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The political class may lack the will to deal with impending doom of the two largest entitlements in the federal budget, but that doesn’t mean that the clock isn’t ticking until the moment when both Medicare and Social Security will run out of money. The annual reports of the trustees of these two federal programs were released this afternoon, and the verdict is just a bit darker than last year’s report. According to the figures, the Social Security trust fund will be exhausted in 2033, three full years earlier than last year’s estimate. The news about Medicare was no worse than 12 months ago but was already bad enough. It will collapse in 2024.

These alarming pieces of news ought to be greeted with dismay and resolve to deal with the entitlements problem that is leading the country to insolvency. But one end of the political spectrum believes things are just fine:

Representative Nancy Pelosi of California, the Democratic leader, said that “Despite the repeated efforts of Republicans to privatize Social Security and end the Medicare guarantee, these vital initiatives remain strong.” She argued that the trustees’ report “demonstrates that health care reform has strengthened Medicare by extending its solvency.”

This complacence would be shocking if it were not rooted in a basic tenet of liberal ideology. Despite the nonsense she uttered about the strength of the programs, Pelosi and other liberals understand that no government program no matter how financially ruinous will ever truly run out of money so long as the government retains the power to confiscate as much of the income of the public as the federal leviathan needs. The essential difference between the parties about how to deal with this problem is not so much about the existence of the problem but whether the solution should be found in the pockets of the taxpayers.

Less extreme was the response of Treasury Secretary Timothy Geithner, who acknowledged the danger but reassured himself — and the Democratic base — that the funds are adequate “for years to come.” But that’s just a polite way of saying that the government won’t go bust on his watch, even if it is inevitable that it will implode on someone else’s.

But the more pessimistic assessment of Social Security’s prospects is directly related to the poor record of the administration on the economy because:

The trustees cited slower growth in average earnings of workers, lower earnings from interest on the trust fund’s holdings of federal debt, and the persistence of unemployment during the slow recovery from the recent recession.

Nevertheless, Geithner threw down a challenge to Republicans intent on fundamental reform of the system by saying the administration would oppose any effort to institute changes that would “destroy” the system or save “tax cuts for the wealthy.” But this sort of class warfare sloganeering is a thin façade for a policy of doing nothing to stop the exponential growth of expenditures in order to stir fear among the elderly and play to the liberal base.

Contrary to Pelosi’s policy of denial and Geithner’s determination to kick the can down the road, the trustees’ reports make reform plans like those of Rep. Paul Ryan even more important. Rather than being an issue with which the Democrats can demagogue the GOP, the latest reports about Social Security and Medicare can serve to build a broader constituency for a common sense approach that will discard liberal cant and address the fundamental problem. Though the Democrats believe the voters are too fearful or too stupid to understand the facts, their attempts to obfuscate the clear responsibility of Washington to deal with this crisis may run aground on the sea of red ink that is too large for even the trustees of these funds to ignore.

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Daley Departure Busts “No-Drama” Myth

The resignation of White House chief of staff Bill Daley must be frustrating to President Obama because it–with some help from the well-timed release of Jodi Kantor’s new book on the Obama White House–reveals the extent to which Obama has succeeded not in creating a no-drama administration (an impossible goal in the Washington of 2012 anyway), but rather in creating the impression of one.

The New York Times tries admirably to parrot the administration line, calling Daley’s departure a “distracting shake-up in a White House that has prided itself on a lack of internal drama, with a tightly knit circle of loyal senior advisers playing a steadying role.” But the paper is forced to give away the game later on in the story, revealing the Obama White House for what it is: the Hotel California of presidential administrations:

While the president said he asked Mr. Daley to reconsider his decision, he did not apply the kind of pressure he brought to bear on Treasury Secretary Timothy F. Geithner, who has for several months been eager to return to New York.

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The resignation of White House chief of staff Bill Daley must be frustrating to President Obama because it–with some help from the well-timed release of Jodi Kantor’s new book on the Obama White House–reveals the extent to which Obama has succeeded not in creating a no-drama administration (an impossible goal in the Washington of 2012 anyway), but rather in creating the impression of one.

The New York Times tries admirably to parrot the administration line, calling Daley’s departure a “distracting shake-up in a White House that has prided itself on a lack of internal drama, with a tightly knit circle of loyal senior advisers playing a steadying role.” But the paper is forced to give away the game later on in the story, revealing the Obama White House for what it is: the Hotel California of presidential administrations:

While the president said he asked Mr. Daley to reconsider his decision, he did not apply the kind of pressure he brought to bear on Treasury Secretary Timothy F. Geithner, who has for several months been eager to return to New York.

The Times is right; Geithner has been begging to leave. And far from being chock full of “loyal senior advisers,” the White House is made up of people trying desperately to get out before their term is up (Daley, Geithner) and comically disastrous hires to which Obama has shown a generous amount of loyalty (Eric Holder, former press secretary Bob Gibbs).

Of course, for some reason, we haven’t seen the rash of newspaper stories on how Obama prizes loyalty over talent and competence, the way we did with George W. Bush. Perhaps the Times will be getting around to that any day now.

The other notable part of the Daley story is that he was brought in because he has ties to the business community and a good reputation in Congress. What the Daley departure signals is he is fully aware his boss’s reelection efforts will be consumed by Obama’s relentless attacks on both. He will be running against the “do-nothing Congress” and “Wall Street greed,” demagoguing the country’s political leadership and its private sector leadership. His slogan, then, will essentially be “It’s literally everyone’s fault but mine!” There was no reason for Daley to stick around as the president spent nearly $1 billion attempting to destroy the reputations of Daley’s friends and associates.

So Daley will go back to Chicago with a no-show title of “campaign co-chair” the administration says they will “probably” bestow upon him. But really, there’s no drama here. President Temperament is fully in control.

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That Debt Ceiling Again

Responding to my post from earlier this week, a reader wrote me this:

This current article has raised questions for me. Why is it assumed that failure to raise the debt ceiling must necessarily result in a default? Is it not feasible that when forced to choose between default and cutting something that the correct choice would be made? It seems to me that until that awful decision is faced, meaningful spending cuts will never occur. Your example of [Senator] DeMint’s inconsistency drives home that point. Even conservatives cower from these painful choices. You must admit that the history of Democrats’ honoring their concessions is not a strong one. I know of nowhere other than government where it would be suggested that the way to cut spending is to borrow more, yet that seems to be what you are suggesting in raising the debt ceiling. As long as it is assumed that the ceiling will be endlessly raised, spending will not decrease.

Here, I think, is the answer to his question. Our debt is not a function of immediate spending decisions but of very-long-term spending trends. That means that in order to pay just the interest on the debt, the government has to roll over some existing debt by borrowing. It is simply not possible to cut spending enough immediately to avert this with some additional borrowing. Spending cuts will reduce the debt in the long term, so that we don’t have to raise the limit again; but they cannot reduce it immediately and could only put off the need to borrow more for a very short time. Raising the debt ceiling is about, as I wrote, existing obligations racked up by Obama and the last Congress.

In his letter to Congress yesterday, Treasury Secretary Timothy Geithner put it this way:

Raising the debt limit is necessary to allow the Treasury to meet obligations of the United States that have been established, authorized, and appropriated by the Congress. It is important to emphasize that changing the debt limit does not alter or increase the obligations we have as a nation; it simply permits the Treasury to fund those obligations Congress has already established. In fact, even if Congress were immediately to adopt the deep cuts in discretionary spending of the magnitude suggested by some Members of Congress, such as reverting to Fiscal Year 2008 spending levels, the need to increase the debt limit would be delayed by no more than two weeks. The limit would still need to be raised to make it possible for the government to avoid default and to meet the other obligations established by Congress.

In this case, Geithner is right. And as I argued in my post, I’m in favor of using an increase in the debt ceiling as a way to win concessions on spending. I only wish Senator DeMint and some of those in the GOP leadership were as inclined to tackle entitlements as I am and as people like Representative Paul Ryan are.

The argument for limiting the size of the federal government and reducing spending is extremely strong; refusing to raise the debt ceiling, however, isn’t the way or the place to do it.

Responding to my post from earlier this week, a reader wrote me this:

This current article has raised questions for me. Why is it assumed that failure to raise the debt ceiling must necessarily result in a default? Is it not feasible that when forced to choose between default and cutting something that the correct choice would be made? It seems to me that until that awful decision is faced, meaningful spending cuts will never occur. Your example of [Senator] DeMint’s inconsistency drives home that point. Even conservatives cower from these painful choices. You must admit that the history of Democrats’ honoring their concessions is not a strong one. I know of nowhere other than government where it would be suggested that the way to cut spending is to borrow more, yet that seems to be what you are suggesting in raising the debt ceiling. As long as it is assumed that the ceiling will be endlessly raised, spending will not decrease.

Here, I think, is the answer to his question. Our debt is not a function of immediate spending decisions but of very-long-term spending trends. That means that in order to pay just the interest on the debt, the government has to roll over some existing debt by borrowing. It is simply not possible to cut spending enough immediately to avert this with some additional borrowing. Spending cuts will reduce the debt in the long term, so that we don’t have to raise the limit again; but they cannot reduce it immediately and could only put off the need to borrow more for a very short time. Raising the debt ceiling is about, as I wrote, existing obligations racked up by Obama and the last Congress.

In his letter to Congress yesterday, Treasury Secretary Timothy Geithner put it this way:

Raising the debt limit is necessary to allow the Treasury to meet obligations of the United States that have been established, authorized, and appropriated by the Congress. It is important to emphasize that changing the debt limit does not alter or increase the obligations we have as a nation; it simply permits the Treasury to fund those obligations Congress has already established. In fact, even if Congress were immediately to adopt the deep cuts in discretionary spending of the magnitude suggested by some Members of Congress, such as reverting to Fiscal Year 2008 spending levels, the need to increase the debt limit would be delayed by no more than two weeks. The limit would still need to be raised to make it possible for the government to avoid default and to meet the other obligations established by Congress.

In this case, Geithner is right. And as I argued in my post, I’m in favor of using an increase in the debt ceiling as a way to win concessions on spending. I only wish Senator DeMint and some of those in the GOP leadership were as inclined to tackle entitlements as I am and as people like Representative Paul Ryan are.

The argument for limiting the size of the federal government and reducing spending is extremely strong; refusing to raise the debt ceiling, however, isn’t the way or the place to do it.

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The Administration’s Incoherence on Iran

The comments of our top national security officials on the topic of Iran are becoming alarmingly incoherent. A case in point comes from Admiral Mike Mullen, chairman of the joint chiefs of staff. He cautions that the mullahs are liars:

Asked whether he believed Tehran’s vows that its nuclear program was for peaceful purposes, Mullen said: “I don’t believe it for a second.”

“In fact, the information and intelligence that I’ve seen speak very specifically to the contrary,” he said.

“Iran is still very much on a path to be able to develop nuclear weapons, including weaponizing them, putting them on a missile and being able to use them.”

Yet what does Mullen propose we do? Well, we should talk to them. But we have to be realistic, because the Iranian regime can’t be trusted:

“I still think it’s important we focus on the dialogue, we focus on the engagement, but also do it in a realistic way that looks at whether Iran is actually going to tell the truth, actually engage and actually do anything.”

But didn’t he say that we know they aren’t telling the truth? You can see why Iran’s Arab neighbors are petrified that there is no “plan B” for stopping the Iranian regime. Or, as one of the WikiLeaks cables (highlighted by a frequent reader) explains:

On July 15, Treasury Secretary Timothy Geithner joined Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed al Nahyan (MBZ) and Foreign Minister Sheikh Abdullah bin Zayed al Nahyan (ABZ) for a dinner covering a range of regional issues.  MBZ expressed serious concern over Iran’s regional intentions and pleaded for the U.S. to shorten its decision-making timeline and develop a “plan B.” He encouraged the U.S. to clearly communicate “red lines” to the Iranian Government, on nuclear and regional stability issues, with direct consequences for transgressions. He painted to a nuclear Iran as an existential threat to the UAE and invoked the well being of his grandchildren while urging the U.S. to act quickly. MBZ asked for close coordination between the U.S. and UAE to deal with the Iranian threat.

If Iran has military capabilities far beyond what we imagined (“The cables … reveal for the first time that the United States believes that Iran has obtained advanced missiles from North Korea that could let it strike at Western European capitals and Moscow and help it develop more formidable long-range ballistic missiles”), the Arab states are supportive of military action, and we know the mullahs are professional deceivers, why in the world are we still babbling about engagement? I honestly don’t know. Members of Congress should find out — before a national security failure of unprecedented dimensions occurs. It would be on Obama’s watch — but on the lawmakers’ as well. And it will be a disaster for the savvy and the dull-witted alike.

The comments of our top national security officials on the topic of Iran are becoming alarmingly incoherent. A case in point comes from Admiral Mike Mullen, chairman of the joint chiefs of staff. He cautions that the mullahs are liars:

Asked whether he believed Tehran’s vows that its nuclear program was for peaceful purposes, Mullen said: “I don’t believe it for a second.”

“In fact, the information and intelligence that I’ve seen speak very specifically to the contrary,” he said.

“Iran is still very much on a path to be able to develop nuclear weapons, including weaponizing them, putting them on a missile and being able to use them.”

Yet what does Mullen propose we do? Well, we should talk to them. But we have to be realistic, because the Iranian regime can’t be trusted:

“I still think it’s important we focus on the dialogue, we focus on the engagement, but also do it in a realistic way that looks at whether Iran is actually going to tell the truth, actually engage and actually do anything.”

But didn’t he say that we know they aren’t telling the truth? You can see why Iran’s Arab neighbors are petrified that there is no “plan B” for stopping the Iranian regime. Or, as one of the WikiLeaks cables (highlighted by a frequent reader) explains:

On July 15, Treasury Secretary Timothy Geithner joined Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed al Nahyan (MBZ) and Foreign Minister Sheikh Abdullah bin Zayed al Nahyan (ABZ) for a dinner covering a range of regional issues.  MBZ expressed serious concern over Iran’s regional intentions and pleaded for the U.S. to shorten its decision-making timeline and develop a “plan B.” He encouraged the U.S. to clearly communicate “red lines” to the Iranian Government, on nuclear and regional stability issues, with direct consequences for transgressions. He painted to a nuclear Iran as an existential threat to the UAE and invoked the well being of his grandchildren while urging the U.S. to act quickly. MBZ asked for close coordination between the U.S. and UAE to deal with the Iranian threat.

If Iran has military capabilities far beyond what we imagined (“The cables … reveal for the first time that the United States believes that Iran has obtained advanced missiles from North Korea that could let it strike at Western European capitals and Moscow and help it develop more formidable long-range ballistic missiles”), the Arab states are supportive of military action, and we know the mullahs are professional deceivers, why in the world are we still babbling about engagement? I honestly don’t know. Members of Congress should find out — before a national security failure of unprecedented dimensions occurs. It would be on Obama’s watch — but on the lawmakers’ as well. And it will be a disaster for the savvy and the dull-witted alike.

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The German Example

Chris Caldwell provides one of the most important pieces of economic analysis since the financial meltdown more than two years ago. The focus is on Germany, but it tells us much about Obama and his mindset.

As for Germany, Caldwell explains they told the Obami and the Keynesians to buzz off:

“You won’t find a lot of Keynesians here,” explained one German economic policymaker in Berlin in September. That will not be news to anyone who has spoken to his counterparts in Washington. In their view, Germany is a skulker, a rotten citizen of the global economy, the macroeconomic equivalent of a juvenile delinquent, or worse. It is a smart aleck in the emergency ward that is the global economy. It is a flouter of the prescriptions of the new Doctor New Deal who sits in the White House.

And, wouldn’t you know it, Germany was right:

Germany’s growth in this year’s second quarter was 2.2 percent on a quarter-to-quarter basis. That means it is growing at almost 9 percent a year. Its unemployment rate has fallen to 7.5 percent, below what it was at the start of the global financial crisis—indeed, the lowest in 18 years. The second-biggest Western economy appears to be handling this deep recession much more effectively than the biggest—and emerging from it much earlier.

It seems the Germans’ skepticism of Keynesian alchemy — technically the “multiplier effect” (a dollar spent by the government magically transforms to more than a dollar in economic activity) — was correct. According to the Germans, the famed multiplier is actually a divider:

“Our research says the multiplier is more like .60,” says the German official. If he is correct, then a stimulus plan can actually deaden an economy rather than stimulate it. If he is correct, you might have been as well off to have taken the stimulus money and thrown it away.

Caldwell is straightforward — Germany already does a lot of “stimulating” and embodies many aspects of the social-welfare state. But his argument — and Germany’s — is compelling: anti-Obamanomics is superior to Obamanomics.

So what does this tell us about Obama? For starters, he operates in an intellectual cocoon. Remember, he told us that “all” economists believed in his Keynesian stimulus plan. Well, as he was spinning us, a body of research was building that Keynesianism is, to put it mildly, bunk:

The Harvard economist Alberto Alesina and his colleague Silvia Ardagna published an influential paper last fall in which they surveyed all the major fiscal adjustments in OECD countries between 1970 and 2007 and showed that tax cuts are more likely to increase growth than spending hikes. One of their most controversial findings—which comes from the work of two other Italian economists—is that cutting deficits can be expansionary, particularly if it is done through “large, decisive” government spending cuts, as it was in Ireland and Denmark in the 1980s. More generally, Alesina has argued that “monomaniacal” Keynesians have focused unduly on aggregate demand.

So much for the pose that Obama is a sophisticated intellectual. He is, rather, monomaniacally wedded to liberal dogma.

The German experience also tells us much about the bullying behavior of the Obama team. Domestic critics are brushed off, Israel is browbeaten, and Germany is harangued because they don’t roll over and comply with the misguided vision of the president. Caldwell explains:

Germany has been scolded, even browbeaten, by Obama administration officials, from Treasury Secretary Timothy Geithner on down, for saving too much and spending too little. It has refused to stimulate its economy as the United States has done, on the grounds that the resulting budget deficits would not be sustainable and the policies themselves would not work. Administration officials have not been the only ones to warn the Germans about the path they’re on. On the eve of last summer’s G‑20 summit in Toronto, the economist and New York Times columnist Paul Krugman gave an interview to the German business paper Handelsblatt in which he said that, while Germany might think its deficits are big, they are peanuts “from an American viewpoint.” Germany cannot say it wasn’t warned.

There is a dreary predictability about Obama. Take outmoded liberal dogma. Double down on it. Ignore empirical evidence. Deride and bully opponents. And when the dogma fails, blame those who resisted. Whether we are talking about health care, economic policy, or the Middle East, the pattern is the same. It is not simply that Obama is wrong on the merits on these issues (although surely he is). It is that Obama’s self-image as the “smartest man in the room” prevents him from learning from errors, absorbing the experience of alternative policy choices, and showing grace and magnanimity toward friends and foes. No wonder Obama has become a sour figure, and the public has soured on him.

Chris Caldwell provides one of the most important pieces of economic analysis since the financial meltdown more than two years ago. The focus is on Germany, but it tells us much about Obama and his mindset.

As for Germany, Caldwell explains they told the Obami and the Keynesians to buzz off:

“You won’t find a lot of Keynesians here,” explained one German economic policymaker in Berlin in September. That will not be news to anyone who has spoken to his counterparts in Washington. In their view, Germany is a skulker, a rotten citizen of the global economy, the macroeconomic equivalent of a juvenile delinquent, or worse. It is a smart aleck in the emergency ward that is the global economy. It is a flouter of the prescriptions of the new Doctor New Deal who sits in the White House.

And, wouldn’t you know it, Germany was right:

Germany’s growth in this year’s second quarter was 2.2 percent on a quarter-to-quarter basis. That means it is growing at almost 9 percent a year. Its unemployment rate has fallen to 7.5 percent, below what it was at the start of the global financial crisis—indeed, the lowest in 18 years. The second-biggest Western economy appears to be handling this deep recession much more effectively than the biggest—and emerging from it much earlier.

It seems the Germans’ skepticism of Keynesian alchemy — technically the “multiplier effect” (a dollar spent by the government magically transforms to more than a dollar in economic activity) — was correct. According to the Germans, the famed multiplier is actually a divider:

“Our research says the multiplier is more like .60,” says the German official. If he is correct, then a stimulus plan can actually deaden an economy rather than stimulate it. If he is correct, you might have been as well off to have taken the stimulus money and thrown it away.

Caldwell is straightforward — Germany already does a lot of “stimulating” and embodies many aspects of the social-welfare state. But his argument — and Germany’s — is compelling: anti-Obamanomics is superior to Obamanomics.

So what does this tell us about Obama? For starters, he operates in an intellectual cocoon. Remember, he told us that “all” economists believed in his Keynesian stimulus plan. Well, as he was spinning us, a body of research was building that Keynesianism is, to put it mildly, bunk:

The Harvard economist Alberto Alesina and his colleague Silvia Ardagna published an influential paper last fall in which they surveyed all the major fiscal adjustments in OECD countries between 1970 and 2007 and showed that tax cuts are more likely to increase growth than spending hikes. One of their most controversial findings—which comes from the work of two other Italian economists—is that cutting deficits can be expansionary, particularly if it is done through “large, decisive” government spending cuts, as it was in Ireland and Denmark in the 1980s. More generally, Alesina has argued that “monomaniacal” Keynesians have focused unduly on aggregate demand.

So much for the pose that Obama is a sophisticated intellectual. He is, rather, monomaniacally wedded to liberal dogma.

The German experience also tells us much about the bullying behavior of the Obama team. Domestic critics are brushed off, Israel is browbeaten, and Germany is harangued because they don’t roll over and comply with the misguided vision of the president. Caldwell explains:

Germany has been scolded, even browbeaten, by Obama administration officials, from Treasury Secretary Timothy Geithner on down, for saving too much and spending too little. It has refused to stimulate its economy as the United States has done, on the grounds that the resulting budget deficits would not be sustainable and the policies themselves would not work. Administration officials have not been the only ones to warn the Germans about the path they’re on. On the eve of last summer’s G‑20 summit in Toronto, the economist and New York Times columnist Paul Krugman gave an interview to the German business paper Handelsblatt in which he said that, while Germany might think its deficits are big, they are peanuts “from an American viewpoint.” Germany cannot say it wasn’t warned.

There is a dreary predictability about Obama. Take outmoded liberal dogma. Double down on it. Ignore empirical evidence. Deride and bully opponents. And when the dogma fails, blame those who resisted. Whether we are talking about health care, economic policy, or the Middle East, the pattern is the same. It is not simply that Obama is wrong on the merits on these issues (although surely he is). It is that Obama’s self-image as the “smartest man in the room” prevents him from learning from errors, absorbing the experience of alternative policy choices, and showing grace and magnanimity toward friends and foes. No wonder Obama has become a sour figure, and the public has soured on him.

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Block This Sale

The bad ideas just keep coming. A few bloggers and news outlets picked up this week on the report that a Russian company wants to acquire a 51 percent stake in a U.S. uranium-mining operation. Four congressmen have written to Timothy Geithner asking him to block the sale, pointing out that if it goes through, a Russian corporation will control 20 percent of America’s uranium resources.

The sale should be blocked. The congressmen fear – with reason – that Russia could deliver uranium from the Wyoming mine to Iran, but that’s not the only consideration. Russia acquiring a 51 percent interest in a natural-resources operation creates unnecessary vulnerabilities for the nations involved. Multiple rounds of natural-gas extortion in Europe have made that clear. Russia behaves badly in its natural-resources dealings, using them alternately to build leverage with the wealthy and to strong-arm the struggling.

Russia and China are competing vigorously to acquire control of natural resources in Asia, Africa, and Latin America. Besides its gas and oil investments in the Caribbean, Brazil, Venezuela, Argentina, and Colombia, Russia has signed uranium-development agreements with Brazil, Venezuela and Ecuador. The Russians are also prospecting for oil and gas off Cuba’s West coast in the Gulf of Mexico, an enterprise unaffected by President Obama’s moratorium on U.S. drilling. (See here for an extended treatment of Russia’s oil and gas acquisitions.) Between them, Russia and China are gradually narrowing the resource options of the U.S., the EU, and Japan; if geopolitical shifts drive us to seek new suppliers, we will find, wherever we look, that the Asian giants are already there. We certainly don’t need to collude in their strategy by handing our own resources over to their companies.

In turning markedly against Japan last week over the Kuril Islands issue – which carries major implications for undersea resources – the Putin-Medvedev regime sent a very clear signal about where it is headed. If we invite Russia to control the commercial destiny of a significant amount of our natural resources, we will be buying political problems for the future. Our current ability to stand up to extortion is no excuse for courting it unnecessarily. The Russia factor makes this sale an issue of national security; it is inherently political and should be decided for political reasons. The sale should be blocked.

The bad ideas just keep coming. A few bloggers and news outlets picked up this week on the report that a Russian company wants to acquire a 51 percent stake in a U.S. uranium-mining operation. Four congressmen have written to Timothy Geithner asking him to block the sale, pointing out that if it goes through, a Russian corporation will control 20 percent of America’s uranium resources.

The sale should be blocked. The congressmen fear – with reason – that Russia could deliver uranium from the Wyoming mine to Iran, but that’s not the only consideration. Russia acquiring a 51 percent interest in a natural-resources operation creates unnecessary vulnerabilities for the nations involved. Multiple rounds of natural-gas extortion in Europe have made that clear. Russia behaves badly in its natural-resources dealings, using them alternately to build leverage with the wealthy and to strong-arm the struggling.

Russia and China are competing vigorously to acquire control of natural resources in Asia, Africa, and Latin America. Besides its gas and oil investments in the Caribbean, Brazil, Venezuela, Argentina, and Colombia, Russia has signed uranium-development agreements with Brazil, Venezuela and Ecuador. The Russians are also prospecting for oil and gas off Cuba’s West coast in the Gulf of Mexico, an enterprise unaffected by President Obama’s moratorium on U.S. drilling. (See here for an extended treatment of Russia’s oil and gas acquisitions.) Between them, Russia and China are gradually narrowing the resource options of the U.S., the EU, and Japan; if geopolitical shifts drive us to seek new suppliers, we will find, wherever we look, that the Asian giants are already there. We certainly don’t need to collude in their strategy by handing our own resources over to their companies.

In turning markedly against Japan last week over the Kuril Islands issue – which carries major implications for undersea resources – the Putin-Medvedev regime sent a very clear signal about where it is headed. If we invite Russia to control the commercial destiny of a significant amount of our natural resources, we will be buying political problems for the future. Our current ability to stand up to extortion is no excuse for courting it unnecessarily. The Russia factor makes this sale an issue of national security; it is inherently political and should be decided for political reasons. The sale should be blocked.

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Does the Administration Mean What It Now Says About Human Rights?

Obama and his secretary of state are making some effort to step up — or start, some would say — support for human rights. Obama spoke on the topic at the UN. Albeit too little and too late, the administration is taking action against Iranian human rights abuses:

Citing “mounting evidence” of repression of the Iranian opposition, the Obama administration added more sanctions against Iranian government officials, members of the Revolutionary Guards Corps and others accused by the United States of being responsible for human rights abuses.

The sanctions, announced Wednesday by Secretary of State Hillary Clinton and Treasury Secretary Timothy Geithner, block the assets of, and prohibit U.S. citizens from engaging in any business with, those on the list, which includes the head of the Iranian Revolutionary Guards Corps, the country’s prosecutor general, and the ministers of welfare and intelligence.

There’s less here than meets the eye, however. As the Washington Post editors note, ” The high-profile announcement could give important encouragement to Iran’s opposition. But it’s worth noting that the sanctions themselves were recently mandated by Congress.” Oh. And why haven’t we committed ourselves to full support for the Green movement?

The real proof of the Obama administration’s devotion to democracy promotion will come with clear and decisive action. When do we adopt regime change as our official policy? When do we call it quits and pull the financial plug on the UNHRC? These would demonstrate actual, rather than rhetorical, support for human rights.

The Post editors observe that there’s another opportunity to prove the administration’s bona fides on human rights. Why not take action against the repressive Mubarak government, which is in the process of rigging another election?

[A] resolution authored by Sens. Russell Feingold (D-Wis.) and John McCain (R-Ariz.) has won broad and bipartisan support. The resolution urges Mr. Mubarak’s regime “to take all steps necessary to ensure that upcoming elections are free, fair, transparent and credible, including granting independent international and domestic electoral observers unrestricted access.” …

After the president’s last meeting with Mr. Mubarak this month, a White House summary said Mr. Obama had referred to the need for “credible and transparent elections in Egypt.” The question is whether the administration is willing to take action in support of its words. So far, it has offered no indication that Mr. Mubarak’s failure to accept election observers will result in any consequence for a country that receives $1.5 billion annually in American aid. Nor has the White House offered support for the Senate resolution, in public or in private. It could, at least, do that.

Let’s see what the Obama administration does. Frankly, the president’s words don’t carry all that much credibility these days.

Obama and his secretary of state are making some effort to step up — or start, some would say — support for human rights. Obama spoke on the topic at the UN. Albeit too little and too late, the administration is taking action against Iranian human rights abuses:

Citing “mounting evidence” of repression of the Iranian opposition, the Obama administration added more sanctions against Iranian government officials, members of the Revolutionary Guards Corps and others accused by the United States of being responsible for human rights abuses.

The sanctions, announced Wednesday by Secretary of State Hillary Clinton and Treasury Secretary Timothy Geithner, block the assets of, and prohibit U.S. citizens from engaging in any business with, those on the list, which includes the head of the Iranian Revolutionary Guards Corps, the country’s prosecutor general, and the ministers of welfare and intelligence.

There’s less here than meets the eye, however. As the Washington Post editors note, ” The high-profile announcement could give important encouragement to Iran’s opposition. But it’s worth noting that the sanctions themselves were recently mandated by Congress.” Oh. And why haven’t we committed ourselves to full support for the Green movement?

The real proof of the Obama administration’s devotion to democracy promotion will come with clear and decisive action. When do we adopt regime change as our official policy? When do we call it quits and pull the financial plug on the UNHRC? These would demonstrate actual, rather than rhetorical, support for human rights.

The Post editors observe that there’s another opportunity to prove the administration’s bona fides on human rights. Why not take action against the repressive Mubarak government, which is in the process of rigging another election?

[A] resolution authored by Sens. Russell Feingold (D-Wis.) and John McCain (R-Ariz.) has won broad and bipartisan support. The resolution urges Mr. Mubarak’s regime “to take all steps necessary to ensure that upcoming elections are free, fair, transparent and credible, including granting independent international and domestic electoral observers unrestricted access.” …

After the president’s last meeting with Mr. Mubarak this month, a White House summary said Mr. Obama had referred to the need for “credible and transparent elections in Egypt.” The question is whether the administration is willing to take action in support of its words. So far, it has offered no indication that Mr. Mubarak’s failure to accept election observers will result in any consequence for a country that receives $1.5 billion annually in American aid. Nor has the White House offered support for the Senate resolution, in public or in private. It could, at least, do that.

Let’s see what the Obama administration does. Frankly, the president’s words don’t carry all that much credibility these days.

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Flotsam and Jestsam

Not like it’s out of the blue: “The number of U.S. Voters who view the issue of Taxes as Very Important has jumped 10 points from May to its highest level ever in Rasmussen Reports tracking. Still, Taxes rank fourth on a list of 10 issues regularly tracked by Rasmussen Reports.” Nothing like Democrats’ plan for a mammoth tax hike to raise the tax issue.

The administration is running out of spinners. Not even the New York Times will excuse this: “A prisoner who begs to stay indefinitely at the Guantánamo Bay detention center rather than be sent back to Algeria probably has a strong reason to fear the welcoming reception at home. Abdul Aziz Naji, who has been held at Guantánamo since 2002, told the Obama administration that he would be tortured if he was transferred to Algeria, by either the Algerian government or fundamentalist groups there. Though he offered to remain at the prison, the administration shipped him home last weekend and washed its hands of the man. Almost immediately upon arrival, he disappeared, and his family fears the worst. It is an act of cruelty that seems to defy explanation.”

One hundred days out, things are looking pretty gloomy for the Democrats: “Republicans have been touting their chances of retaking the House and, despite their almost 2-to-1 financial disadvantage, many observers – including White House Press Secretary Robert Gibbs – believe it’s a possibility.”

The Obami would be wise to get the whole story out: “Correspondence obtained by The Sunday Times reveals the Obama administration considered compassionate release more palatable than locking up Abdel Baset al-Megrahi in a Libyan prison. … The document, acquired by a well-placed US source, threatens to undermine US President Barack Obama’s claim last week that all Americans were ‘surprised, disappointed and angry’ to learn of Megrahi’s release.”

You sense the Democrats are going to get blown out of the water in November if Obama is still trying to win over the MoveOn.org crowd.

Jake Tapper goes out in style with a grilling of Timothy Geithner on letting the Bush tax cuts expire. (“Don’t you think it will slow economic growth?”) The show is about to become unwatchable with Christiane Amanpour as host.

On Fox News Sunday, Mara Liasson and Bill Kristol agree that there’s no comparison between the administration and the media on Shirley Sherrod. The media showed itself to be irresponsible; the administration, out of its depth. Kristol: “I mean, the media — I was in the Reagan administration 25 years ago. The media reported things falsely. It’s not — this is not — this is nothing new. You’re — if you are the — a cabinet secretary, you have an obligation to the people working for you to make sure that the charges being leveled against them are true. And you can wait a day and, God, it would be horrible if Glenn Beck attacked the Obama administration for one show. That never happens, you know. I mean, the idea that you panic and fire someone based on one report that hadn’t been on television yet — right?”

A former Justice Department official says Democrats strain the outer limits of voters’ credulity if they claim ignorance of the New Black Panther scandal.

Not like it’s out of the blue: “The number of U.S. Voters who view the issue of Taxes as Very Important has jumped 10 points from May to its highest level ever in Rasmussen Reports tracking. Still, Taxes rank fourth on a list of 10 issues regularly tracked by Rasmussen Reports.” Nothing like Democrats’ plan for a mammoth tax hike to raise the tax issue.

The administration is running out of spinners. Not even the New York Times will excuse this: “A prisoner who begs to stay indefinitely at the Guantánamo Bay detention center rather than be sent back to Algeria probably has a strong reason to fear the welcoming reception at home. Abdul Aziz Naji, who has been held at Guantánamo since 2002, told the Obama administration that he would be tortured if he was transferred to Algeria, by either the Algerian government or fundamentalist groups there. Though he offered to remain at the prison, the administration shipped him home last weekend and washed its hands of the man. Almost immediately upon arrival, he disappeared, and his family fears the worst. It is an act of cruelty that seems to defy explanation.”

One hundred days out, things are looking pretty gloomy for the Democrats: “Republicans have been touting their chances of retaking the House and, despite their almost 2-to-1 financial disadvantage, many observers – including White House Press Secretary Robert Gibbs – believe it’s a possibility.”

The Obami would be wise to get the whole story out: “Correspondence obtained by The Sunday Times reveals the Obama administration considered compassionate release more palatable than locking up Abdel Baset al-Megrahi in a Libyan prison. … The document, acquired by a well-placed US source, threatens to undermine US President Barack Obama’s claim last week that all Americans were ‘surprised, disappointed and angry’ to learn of Megrahi’s release.”

You sense the Democrats are going to get blown out of the water in November if Obama is still trying to win over the MoveOn.org crowd.

Jake Tapper goes out in style with a grilling of Timothy Geithner on letting the Bush tax cuts expire. (“Don’t you think it will slow economic growth?”) The show is about to become unwatchable with Christiane Amanpour as host.

On Fox News Sunday, Mara Liasson and Bill Kristol agree that there’s no comparison between the administration and the media on Shirley Sherrod. The media showed itself to be irresponsible; the administration, out of its depth. Kristol: “I mean, the media — I was in the Reagan administration 25 years ago. The media reported things falsely. It’s not — this is not — this is nothing new. You’re — if you are the — a cabinet secretary, you have an obligation to the people working for you to make sure that the charges being leveled against them are true. And you can wait a day and, God, it would be horrible if Glenn Beck attacked the Obama administration for one show. That never happens, you know. I mean, the idea that you panic and fire someone based on one report that hadn’t been on television yet — right?”

A former Justice Department official says Democrats strain the outer limits of voters’ credulity if they claim ignorance of the New Black Panther scandal.

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Obama Economic Team Tied up in Spin

The Obama administration is lowering expectations and getting tangled up in its own spin. On one hand, the Obama economic team needs to prepare the public for a period of high unemployment:

The economy is growing again, but at a pace unlikely to quickly replace the 8.4 million jobs erased in the recession that began in late 2007. More than 11 million people are drawing unemployment insurance benefits.

“We’ve got a long way to go,” said Lawrence Summers, director of the National Economic Council. “We’ve inherited a terrible situation, the most pressing economic problems since the Great Depression in our country.” [In case you thought the Obama team was ever going to stop blaming George W. Bush, think again.]

Christina Romer, head of the White House Council of Economic Advisers, said consumers still face “a lot of head winds” from the financial crisis. For example, debt and credit difficulties are hampering stronger job growth.

They were echoing the words of Treasury Secretary Timothy Geithner, who said last week the administration was “very worried” about returning to a more normal jobless rate of around 5 percent.

Summers said Obama was preoccupied with creating jobs. “The trend has turned, but to get back to the surface, we’ve got a long way to go,” Summers said.

Preoccupied? Well, that can certainly be said of health-care reform, but what, precisely, has Obama been doing to promote job growth? Certainly raising billions and billions in new taxes in the guise of health-care “reform” and allowing the Bush tax cuts to expire aren’t helping job creation. Nor will cap-and-trade, if the Obama team has its way.

And the job picture is likely to get worse, not better, as more workers return to the job market, as this report explains:

Some economists assert that the unemployment rate, which held steady at 9.7 percent in March, is likely to be driven higher as many more such people are lured into looking for work by hopeful signs of recovery.

The number of people looking for jobs rose by more than 200,000 in March compared with February, according to the Economic Policy Institute — and that’s a good sign, economists say. It means that Americans are seeing more jobs being created, and that they’re optimistic about their prospects.

But the supply of new jobs — 162,000 in March, the biggest monthly increase in three years — will accommodate only a fraction of the unemployed. Some economists say the jobless rate will not recede to pre-recession levels near 5 percent for four more years.

Meanwhile, the buckle-your-seat-belts-it’s-going-to-be-a-bumpy-ride warning runs headlong into the Obama team’s persistent defense of the original stimulus bill, which was supposed to keep unemployment at 8 percent. Christina Romer proclaimed, “I think it has done exactly what we would say it would do.” Uh… not really. Needless to say, Republicans are pouncing on the insistence that everything is going exactly according to plan. “Romer’s comments are likely to raise the ire of Republicans in Congress. On Friday, the office of Senate Minority Leader Mitch McConnell (R-Ky.) released a memo showing that the stimulus has failed to keep unemployment under 8 percent as the administration said it would do.”

In sum, job growth is anemic, and the Obama administration cannot identify  a single effective policy it has advanced to promote job creation. Instead, it has run up a mound of debt and pursued policies that are likely to hamper rather than to facilitate job growth. The administration’s spinners can’t quite decide — brag about their expertly designed stimulus or lower expectations for any relief in the near term from sky-high unemployment? Frankly, the Obama team can spin all it likes; the voters can see for themselves that Obama administration and Democratic Congress have failed in their own stated goal to keep unemployment below 8 percent and promote robust private-sector job growth.

The Obama administration is lowering expectations and getting tangled up in its own spin. On one hand, the Obama economic team needs to prepare the public for a period of high unemployment:

The economy is growing again, but at a pace unlikely to quickly replace the 8.4 million jobs erased in the recession that began in late 2007. More than 11 million people are drawing unemployment insurance benefits.

“We’ve got a long way to go,” said Lawrence Summers, director of the National Economic Council. “We’ve inherited a terrible situation, the most pressing economic problems since the Great Depression in our country.” [In case you thought the Obama team was ever going to stop blaming George W. Bush, think again.]

Christina Romer, head of the White House Council of Economic Advisers, said consumers still face “a lot of head winds” from the financial crisis. For example, debt and credit difficulties are hampering stronger job growth.

They were echoing the words of Treasury Secretary Timothy Geithner, who said last week the administration was “very worried” about returning to a more normal jobless rate of around 5 percent.

Summers said Obama was preoccupied with creating jobs. “The trend has turned, but to get back to the surface, we’ve got a long way to go,” Summers said.

Preoccupied? Well, that can certainly be said of health-care reform, but what, precisely, has Obama been doing to promote job growth? Certainly raising billions and billions in new taxes in the guise of health-care “reform” and allowing the Bush tax cuts to expire aren’t helping job creation. Nor will cap-and-trade, if the Obama team has its way.

And the job picture is likely to get worse, not better, as more workers return to the job market, as this report explains:

Some economists assert that the unemployment rate, which held steady at 9.7 percent in March, is likely to be driven higher as many more such people are lured into looking for work by hopeful signs of recovery.

The number of people looking for jobs rose by more than 200,000 in March compared with February, according to the Economic Policy Institute — and that’s a good sign, economists say. It means that Americans are seeing more jobs being created, and that they’re optimistic about their prospects.

But the supply of new jobs — 162,000 in March, the biggest monthly increase in three years — will accommodate only a fraction of the unemployed. Some economists say the jobless rate will not recede to pre-recession levels near 5 percent for four more years.

Meanwhile, the buckle-your-seat-belts-it’s-going-to-be-a-bumpy-ride warning runs headlong into the Obama team’s persistent defense of the original stimulus bill, which was supposed to keep unemployment at 8 percent. Christina Romer proclaimed, “I think it has done exactly what we would say it would do.” Uh… not really. Needless to say, Republicans are pouncing on the insistence that everything is going exactly according to plan. “Romer’s comments are likely to raise the ire of Republicans in Congress. On Friday, the office of Senate Minority Leader Mitch McConnell (R-Ky.) released a memo showing that the stimulus has failed to keep unemployment under 8 percent as the administration said it would do.”

In sum, job growth is anemic, and the Obama administration cannot identify  a single effective policy it has advanced to promote job creation. Instead, it has run up a mound of debt and pursued policies that are likely to hamper rather than to facilitate job growth. The administration’s spinners can’t quite decide — brag about their expertly designed stimulus or lower expectations for any relief in the near term from sky-high unemployment? Frankly, the Obama team can spin all it likes; the voters can see for themselves that Obama administration and Democratic Congress have failed in their own stated goal to keep unemployment below 8 percent and promote robust private-sector job growth.

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Flotsam and Jetsam

A good question triggered by the assassination of the Hamas terrorist in Dubai and our decision to send an ambassador to Syria: “Will the safe haven Damascus continues to provide terrorists such as Mabhouh, who would erase Israel from the Middle-Eastern map—to say nothing of the foreign fighters trained by al Qaeda and/or armed by Iran who are still entering Iraq across the Syrian border to kill American soldiers—be a subject of discussion for America’s newly appointed ambassador to Syria once he’s presented his credentials?”

If you thought the Ivy League–educated Oval Office occupier Obama’s populism was fake: “If last year’s bailout of the financial industry caused you to start muttering words like investment banker and robber baron in the same sentence, it may cheer you to know that Timothy Geithner, the man responsible for crafting much of that bailout, agrees with you. ‘I am,’ he says, seated in his Washington, D.C., office, an intimidatingly ornate room worthy of a Hogwarts headmaster, ‘incredibly angry at what happened to our country.'”

A lot of people excited about a potential 2012 run by Indiana Governor Mitch Daniels will be excited to hear this: “During an interview at the winter meeting of the National Governors Association here over the weekend, Daniels said he has now been persuaded to keep open the door to a possible candidacy.”

Is Marco Rubio running away with the GOP Senate primary race? The latest Rasmussen poll has him up by 18 points.

Democrats are on the defensive in Illinois: “Illinois’ Republican Party is keeping up a steady drumbeat of pressure on Democratic U.S. Senate nominee Alexi Giannoulias to answer questions about his family’s Broadway Bank. ‘Why is Alexi hiding?’ the party asked in an e-mail to reporters a week after the election and after news conferences Giannoulias had held in Chicago and Springfield. … In at least 10 e-mails sent out since the election, the party says Giannoulias is ducking questions about loans he authorized four years ago as vice-president of his family’s Broadway Bank and about the bank’s current troubled financial state.”

CATO’s Michael Tanner on the latest version of ObamaCare: “Faced with public opinion polls showing that 58 percent of the public are opposed to his health care proposal, President Obama has gone back to the drawing board and brought forth a new health care plan that looks almost exactly like his old health care bill. Actually that’s not quite true. This proposal is more expensive, pushing its cost up close to $1 trillion in the first 10 years, and raising taxes by some $629 billion.”

Some are in a tizzy: “Critics left and right are accusing Rahm Emanuel of disloyalty-by-proxy after a Dana Milbank column in Sunday’s Washington Post defended the White House chief of staff — while trashing reputed Emanuel rivals Valerie Jarrett and Robert Gibbs. ” Actually, he’s been leaking his opposition to the entire anti-terrorism approach for some time, so this should come as no shock.

Thanks to the teachers’ union, the Los Angeles Unified School District has given up trying to fire bad teachers.

Oh good grief: “Last August, former Iowa Republican congressman Jim Leach took office as the chairman of the National Endowment for the Humanities.  What exactly were his qualifications for this post, other than being an Obamaphile Republican and thus a safely ‘bipartisan’ appointment, was and remains a mystery. Since his appointment, unsurprisingly, Leach has appeared to take little interest in the actual work of the NEH—support for research, publication, and education in the humanities—and instead has been gallivanting around the country on a 50-state ‘civility tour,’ giving mostly forgettable speeches … whose goal seems to be to get Americans to stop criticizing Barack Obama in terms that offend Chairman Leach.”

A good question triggered by the assassination of the Hamas terrorist in Dubai and our decision to send an ambassador to Syria: “Will the safe haven Damascus continues to provide terrorists such as Mabhouh, who would erase Israel from the Middle-Eastern map—to say nothing of the foreign fighters trained by al Qaeda and/or armed by Iran who are still entering Iraq across the Syrian border to kill American soldiers—be a subject of discussion for America’s newly appointed ambassador to Syria once he’s presented his credentials?”

If you thought the Ivy League–educated Oval Office occupier Obama’s populism was fake: “If last year’s bailout of the financial industry caused you to start muttering words like investment banker and robber baron in the same sentence, it may cheer you to know that Timothy Geithner, the man responsible for crafting much of that bailout, agrees with you. ‘I am,’ he says, seated in his Washington, D.C., office, an intimidatingly ornate room worthy of a Hogwarts headmaster, ‘incredibly angry at what happened to our country.'”

A lot of people excited about a potential 2012 run by Indiana Governor Mitch Daniels will be excited to hear this: “During an interview at the winter meeting of the National Governors Association here over the weekend, Daniels said he has now been persuaded to keep open the door to a possible candidacy.”

Is Marco Rubio running away with the GOP Senate primary race? The latest Rasmussen poll has him up by 18 points.

Democrats are on the defensive in Illinois: “Illinois’ Republican Party is keeping up a steady drumbeat of pressure on Democratic U.S. Senate nominee Alexi Giannoulias to answer questions about his family’s Broadway Bank. ‘Why is Alexi hiding?’ the party asked in an e-mail to reporters a week after the election and after news conferences Giannoulias had held in Chicago and Springfield. … In at least 10 e-mails sent out since the election, the party says Giannoulias is ducking questions about loans he authorized four years ago as vice-president of his family’s Broadway Bank and about the bank’s current troubled financial state.”

CATO’s Michael Tanner on the latest version of ObamaCare: “Faced with public opinion polls showing that 58 percent of the public are opposed to his health care proposal, President Obama has gone back to the drawing board and brought forth a new health care plan that looks almost exactly like his old health care bill. Actually that’s not quite true. This proposal is more expensive, pushing its cost up close to $1 trillion in the first 10 years, and raising taxes by some $629 billion.”

Some are in a tizzy: “Critics left and right are accusing Rahm Emanuel of disloyalty-by-proxy after a Dana Milbank column in Sunday’s Washington Post defended the White House chief of staff — while trashing reputed Emanuel rivals Valerie Jarrett and Robert Gibbs. ” Actually, he’s been leaking his opposition to the entire anti-terrorism approach for some time, so this should come as no shock.

Thanks to the teachers’ union, the Los Angeles Unified School District has given up trying to fire bad teachers.

Oh good grief: “Last August, former Iowa Republican congressman Jim Leach took office as the chairman of the National Endowment for the Humanities.  What exactly were his qualifications for this post, other than being an Obamaphile Republican and thus a safely ‘bipartisan’ appointment, was and remains a mystery. Since his appointment, unsurprisingly, Leach has appeared to take little interest in the actual work of the NEH—support for research, publication, and education in the humanities—and instead has been gallivanting around the country on a 50-state ‘civility tour,’ giving mostly forgettable speeches … whose goal seems to be to get Americans to stop criticizing Barack Obama in terms that offend Chairman Leach.”

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Flotsam and Jetsam

Sometimes you get the sense that it won’t be the Democrats’ year: “Broadway Bank, the troubled Chicago lender owned by the family of Illinois Treasurer and U.S. Senate candidate Alexi Giannoulias, has entered into a consent order with banking regulators requiring it to raise tens of millions in capital, stop paying dividends to the family without regulatory approval, and hire an outside party to evaluate the bank’s senior management.”

There’s no one to blame when you control both branches of government: “Twenty-nine percent (29%) of U.S. voters now say the country is heading in the right direction, according to the latest Rasmussen Reports national telephone survey. This is the lowest level of voter confidence in the nation’s current course so far this year – and ties the findings for two weeks in December.”

I suspect he’ll be the first major adviser to go: “Treasury Secretary Timothy Geithner came under fierce bipartisan criticism on Wednesday, with some House Republicans calling on him to resign. Democrats and Republicans on the House Committee on Oversight and Government Reform grilled Geithner about his role in the bailout of American International Group (AIG) and whether he was involved in decisions about the lack of public disclosure about complicated derivatives payments. Geithner faced repeated criticisms about his role in the government paying out $62 billion to AIG’s financial counterparties that represented the full value they were owed.” Remember, we had to have the tax cheat as treasury secretary because he was such a genius.

But in the list of awful appointees, Eric Holder is certainly near the top. “Top Senate Republicans want answers from the man they believe decided the FBI should read the suspected Christmas Day bomber his Miranda rights: Attorney General Eric Holder. ‘It appears that the decision not to thoroughly interrogate Abdulmutallab was made by you or other senior officials in the Department of Justice,’ Senate Minority Leader Mitch McConnell (Ky.) wrote in a letter to Holder Wednesday. ‘We remain deeply troubled that this paramount requirement of national security was ignored — or worse yet, not recognized — due to the administration’s preoccupation with reading the Christmas Day bomber his Miranda rights.'” Sens. Kit Bond of Missouri, the ranking member on the Intelligence Committee; Susan Collins of  Maine, the ranking member on Homeland Security; Jeff Sessions, of Alabama, the top Republican on the Judiciary Committee; and John McCain of Arizona, ranking member of the Armed Services Committee, also signed.

Jeffrey Goldberg rips the Beagle Blogger for praising the “bravery” of Daniel Larison’s Israel-bashing. Says Goldberg: “How brave it is to stand athwart the Jews and yell ‘Stop!’ We are a dangerous group of people. Just look at what has happened to other critics who have gone where angels fear to tread and criticized Israel. Take, for example, Stephen Walt and John Mearsheimer, the authors of ‘The Israel Lobby.’  Walt, as many of you know, is in hiding in Holland, under round-the-clock protection of the Dutch police, after the chief rabbi of Wellesley, Mass., issued a fatwa calling for his assassination. Mearsheimer, of course, lost his job at the University of Chicago and was physically assaulted by a group of Hadassah ladies in what became known as the ‘Grapefruit Spoon Attack of 2009.'” Read the whole thing.

PETA wants an animatronic Punxsutawney Phil for Groundhog’s Day. The response from the Punxsutawney club president: “I mean, come on, this is just crazy. … Phil is probably treated better than the average child in Pennsylvania. … He’s got air conditioning in the summer, his pen is heated in winter. … He has everything but a TV in there. What more do you want?” Maybe the TV.

Mayor Bloomberg wakes up and finally opposes the KSM trial in New York. Robert Gibbs is noncommittal. Is this the beginning of a walk-back potentially more dramatic than not closing Guantanamo? Let’s hope.

Seems they’re now in the business of trying to win elections: “Members of a committee of state party chairmen voted unanimously today to oppose a so-called ‘purity test’ for GOP candidates, according to a source in the closed-press meeting.”

Chris Matthews is hooted down by the Left after putting his foot in his mouth once again. (“I forgot he was black tonight for an hour.”) Well, if the MSNBC gig doesn’t work out, he can write speeches for Harry Reid.

Sometimes you get the sense that it won’t be the Democrats’ year: “Broadway Bank, the troubled Chicago lender owned by the family of Illinois Treasurer and U.S. Senate candidate Alexi Giannoulias, has entered into a consent order with banking regulators requiring it to raise tens of millions in capital, stop paying dividends to the family without regulatory approval, and hire an outside party to evaluate the bank’s senior management.”

There’s no one to blame when you control both branches of government: “Twenty-nine percent (29%) of U.S. voters now say the country is heading in the right direction, according to the latest Rasmussen Reports national telephone survey. This is the lowest level of voter confidence in the nation’s current course so far this year – and ties the findings for two weeks in December.”

I suspect he’ll be the first major adviser to go: “Treasury Secretary Timothy Geithner came under fierce bipartisan criticism on Wednesday, with some House Republicans calling on him to resign. Democrats and Republicans on the House Committee on Oversight and Government Reform grilled Geithner about his role in the bailout of American International Group (AIG) and whether he was involved in decisions about the lack of public disclosure about complicated derivatives payments. Geithner faced repeated criticisms about his role in the government paying out $62 billion to AIG’s financial counterparties that represented the full value they were owed.” Remember, we had to have the tax cheat as treasury secretary because he was such a genius.

But in the list of awful appointees, Eric Holder is certainly near the top. “Top Senate Republicans want answers from the man they believe decided the FBI should read the suspected Christmas Day bomber his Miranda rights: Attorney General Eric Holder. ‘It appears that the decision not to thoroughly interrogate Abdulmutallab was made by you or other senior officials in the Department of Justice,’ Senate Minority Leader Mitch McConnell (Ky.) wrote in a letter to Holder Wednesday. ‘We remain deeply troubled that this paramount requirement of national security was ignored — or worse yet, not recognized — due to the administration’s preoccupation with reading the Christmas Day bomber his Miranda rights.'” Sens. Kit Bond of Missouri, the ranking member on the Intelligence Committee; Susan Collins of  Maine, the ranking member on Homeland Security; Jeff Sessions, of Alabama, the top Republican on the Judiciary Committee; and John McCain of Arizona, ranking member of the Armed Services Committee, also signed.

Jeffrey Goldberg rips the Beagle Blogger for praising the “bravery” of Daniel Larison’s Israel-bashing. Says Goldberg: “How brave it is to stand athwart the Jews and yell ‘Stop!’ We are a dangerous group of people. Just look at what has happened to other critics who have gone where angels fear to tread and criticized Israel. Take, for example, Stephen Walt and John Mearsheimer, the authors of ‘The Israel Lobby.’  Walt, as many of you know, is in hiding in Holland, under round-the-clock protection of the Dutch police, after the chief rabbi of Wellesley, Mass., issued a fatwa calling for his assassination. Mearsheimer, of course, lost his job at the University of Chicago and was physically assaulted by a group of Hadassah ladies in what became known as the ‘Grapefruit Spoon Attack of 2009.'” Read the whole thing.

PETA wants an animatronic Punxsutawney Phil for Groundhog’s Day. The response from the Punxsutawney club president: “I mean, come on, this is just crazy. … Phil is probably treated better than the average child in Pennsylvania. … He’s got air conditioning in the summer, his pen is heated in winter. … He has everything but a TV in there. What more do you want?” Maybe the TV.

Mayor Bloomberg wakes up and finally opposes the KSM trial in New York. Robert Gibbs is noncommittal. Is this the beginning of a walk-back potentially more dramatic than not closing Guantanamo? Let’s hope.

Seems they’re now in the business of trying to win elections: “Members of a committee of state party chairmen voted unanimously today to oppose a so-called ‘purity test’ for GOP candidates, according to a source in the closed-press meeting.”

Chris Matthews is hooted down by the Left after putting his foot in his mouth once again. (“I forgot he was black tonight for an hour.”) Well, if the MSNBC gig doesn’t work out, he can write speeches for Harry Reid.

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Wilkins Micawber for Treasury Secretary?

If you would like a graphic example of the fiscal disconnect  characterizing the liberal establishment currently running the country, the front page of today’s New York Times provides it.

The lead story has a two-column head, “Federal Government Faces Balloon in Debt Payments.” The subhead alludes to the very real possibility that interest on the debt in ten years might exceed $700 billion, up from $202 billion this year. The article, well worth reading, makes no bones about the size of the problem we face.

The potential for rapidly escalating interest payouts is just one of the wrenching challenges facing the United States after decades of living beyond its means.

Right beneath the article, however, is a “reefer,” pointing readers to an article elsewhere in the paper, headlined, “Democrats Courting Health Care Votes.” Votes are courted on Capitol Hill by increased spending. Senator Mary Landrieu voted to take up the health-care bill for debate only after Harry Reid inserted an extra $100 million in Medicaid payments for her state, an action promptly dubbed “the Louisiana Purchase.”

Although carefully crafted accounting mendacity allows Obamacare to be characterized “budget neutral,” I doubt there’s a single person on Capitol Hill — or in the Times newsroom — who actually believes that the label fits. It would, after all, be the first new federal entitlement in history not to cost more than predicted (except for the drug benefit enacted a few years ago, which utilizes the power of the free market to bring down prices — not exactly a characteristic of Obamacare).

This is like a couple worrying about their ever-rising credit-card and mortgage payments while heading downtown to a showroom to buy a new car — on credit.

Perhaps if Timothy Geithner leaves as Treasury Secretary, Obama can persuade Wilkins Micawber to come on board. He was never daunted by such contradictions, at least judging by the words that Charles Dickens put in his mouth: “Welcome poverty! . . . Welcome misery, welcome houselessness, welcome hunger, rags, tempest, and beggary! Mutual confidence will sustain us to the end!”

If you would like a graphic example of the fiscal disconnect  characterizing the liberal establishment currently running the country, the front page of today’s New York Times provides it.

The lead story has a two-column head, “Federal Government Faces Balloon in Debt Payments.” The subhead alludes to the very real possibility that interest on the debt in ten years might exceed $700 billion, up from $202 billion this year. The article, well worth reading, makes no bones about the size of the problem we face.

The potential for rapidly escalating interest payouts is just one of the wrenching challenges facing the United States after decades of living beyond its means.

Right beneath the article, however, is a “reefer,” pointing readers to an article elsewhere in the paper, headlined, “Democrats Courting Health Care Votes.” Votes are courted on Capitol Hill by increased spending. Senator Mary Landrieu voted to take up the health-care bill for debate only after Harry Reid inserted an extra $100 million in Medicaid payments for her state, an action promptly dubbed “the Louisiana Purchase.”

Although carefully crafted accounting mendacity allows Obamacare to be characterized “budget neutral,” I doubt there’s a single person on Capitol Hill — or in the Times newsroom — who actually believes that the label fits. It would, after all, be the first new federal entitlement in history not to cost more than predicted (except for the drug benefit enacted a few years ago, which utilizes the power of the free market to bring down prices — not exactly a characteristic of Obamacare).

This is like a couple worrying about their ever-rising credit-card and mortgage payments while heading downtown to a showroom to buy a new car — on credit.

Perhaps if Timothy Geithner leaves as Treasury Secretary, Obama can persuade Wilkins Micawber to come on board. He was never daunted by such contradictions, at least judging by the words that Charles Dickens put in his mouth: “Welcome poverty! . . . Welcome misery, welcome houselessness, welcome hunger, rags, tempest, and beggary! Mutual confidence will sustain us to the end!”

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Huffy, Aren’t They?

Congress is getting mad: “Growing discontent over the economy and frustration with efforts to speed its recovery boiled over Thursday on Capitol Hill in a wave of criticism and outright anger directed at the Obama administration.” The outrage is bipartisan — the Black Caucus, Sen. Chuck Schumer, and lots of Republicans. Treasury Secretary Timothy Geithner is the target du jour:

“Conservatives agree that as point person, you failed. Liberals are growing in that consensus as well,” said Rep. Kevin Brady (R-Tex.). “For the sake of our jobs, will you step down from your post?” Rep. Michael C. Burgess (R-Tex.) took a different tack. “I don’t think that you should be fired,” he told Geithner. “I thought you should have never been hired.” Even Sen. Charles E. Schumer (D-N.Y.), a friend of the administration, suggested that Geithner had been inconsistent in addressing China’s practice of keeping its currency low against the dollar.

Why now? Maybe the poll numbers have spooked those in Congress. Maybe the unemployment numbers have frightened them. But they sense that the White House has no real game plan for economic recovery, the stimulus has been a bust, and the real possibility exists for either a double-dip recession or a long slog with low growth.

Part of this is the doing of the very same lawmakers who are now grousing. No one forced them to spend time on two job-killer bills — cap-and-trade and ObamaCare. Well, other than their own leadership. And they aren’t about to recognize the connection between anemic hiring and the raft of tax hikes, mandates, and fines they have in mind as part of health care.

But the outbursts are noteworthy for one reason: they suggest that those in the Congress know that their own fate is tied to the economy and that the sagging popularity of the president means he’ll be of little help (and maybe great harm) in 2010.

Congress is getting mad: “Growing discontent over the economy and frustration with efforts to speed its recovery boiled over Thursday on Capitol Hill in a wave of criticism and outright anger directed at the Obama administration.” The outrage is bipartisan — the Black Caucus, Sen. Chuck Schumer, and lots of Republicans. Treasury Secretary Timothy Geithner is the target du jour:

“Conservatives agree that as point person, you failed. Liberals are growing in that consensus as well,” said Rep. Kevin Brady (R-Tex.). “For the sake of our jobs, will you step down from your post?” Rep. Michael C. Burgess (R-Tex.) took a different tack. “I don’t think that you should be fired,” he told Geithner. “I thought you should have never been hired.” Even Sen. Charles E. Schumer (D-N.Y.), a friend of the administration, suggested that Geithner had been inconsistent in addressing China’s practice of keeping its currency low against the dollar.

Why now? Maybe the poll numbers have spooked those in Congress. Maybe the unemployment numbers have frightened them. But they sense that the White House has no real game plan for economic recovery, the stimulus has been a bust, and the real possibility exists for either a double-dip recession or a long slog with low growth.

Part of this is the doing of the very same lawmakers who are now grousing. No one forced them to spend time on two job-killer bills — cap-and-trade and ObamaCare. Well, other than their own leadership. And they aren’t about to recognize the connection between anemic hiring and the raft of tax hikes, mandates, and fines they have in mind as part of health care.

But the outbursts are noteworthy for one reason: they suggest that those in the Congress know that their own fate is tied to the economy and that the sagging popularity of the president means he’ll be of little help (and maybe great harm) in 2010.

Read Less




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