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Archive for April 1st, 2009

French Employees Hold Bosses Hostage

Posted in Main Blog (All Posts) on April 1st, 2009 4:43 am by HL

French Employees Hold Bosses Hostage

Caterpillar standoff

Four higher-ups at the Caterpillar construction equipment office in Grenoble, France, were taken hostage on Tuesday by hundreds of employees demanding negotiations after the company announced it would cut 700 jobs. Even more startling is that this latest episode was but one of three similar boss-blockading incidents in France this month.

CNN:

[Union spokeman Nicholas] Benoit said all the workers wanted to do was negotiate with Caterpillar and they were upset that the company did not show up to two earlier scheduled negotiating sessions.

The employees being held in their office were being allowed to get food, Benoit added.

Police arrived at the scene two hours after the incident began but it had not been settled.

Employees at a French 3M factory held a manager hostage for more than 24 hours Wednesday and Thursday of last week over a dispute about terms for laid-off staff.

Earlier this month, the boss of Sony France was held overnight before workers freed him after he agreed to reopen talks on compensation when the factory closed.

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G20 Protests: Police, Demonstrators Clash Outside The Bank Of England

Posted in Main Blog (All Posts) on April 1st, 2009 4:42 am by HL

G20 Protests: Police, Demonstrators Clash Outside The Bank Of England
Skirmishes have broken out between police and protesters outside the Bank of England as the G20 demonstrations in London get into full swing….

Jonathan Richards: The Elephant’s New Clothes
“Here it is, Mr. President!” the GOP leadership proudly announced as it unveiled a budget proposal that contained no — count ’em, zero — numbers….

Markus Ziener: Letter to Europe
Barack Obama may be the anti-Bush. But make no mistake: That doesn’t mean he is a European. This at least has become crystal clear in…

David Horton: GWC
I see the Global Financial Crisis is now popularly known by the initials GFC. A little strange (was the 1929 Wall Street Crash called WSC?)…

NY House Race Too Close To Call, 65-Vote Dem Lead
ALBANY, N.Y. — After a short, tense campaign, the two candidates in a New York congressional special election that focused on President Barack Obama’s popularity…


Conservative media attack health-care reform in budget without addressing admin. response

Posted in Main Blog (All Posts) on April 1st, 2009 4:41 am by HL

Conservative media attack health-care reform in budget without addressing admin. response

Many in the media have claimed or suggested that given the size of the current and projected U.S. federal debt, the Obama administration’s health-care reform proposal is untenable. For instance, Fox News host Sean Hannity said on March 26 that “[President] Obama wants to expand government. We’ve got health care, unbelievable amounts of spending — we’re gonna bankrupt the country.” However, in making such statements, neither Hannity nor other media figures addressed the argument President Obama has repeatedly raised in response to such claims: that health-care reform is essential to the long-term economic health of the country.

For instance, in remarks at a March 25 Democratic National Committee fundraiser, Obama said:

[B]ecause we know that the crushing cost of health care is punishing families and businesses, and bankrupting the federal and state governments, we’re going to invest in reforms that bring down those costs while improving care and guaranteeing Americans their choice of doctors and hospitals. The choice isn’t between health care reform and fiscal discipline; we have to invest in health reform in order to achieve fiscal discipline. … That’s what an efficient health care system can do. That’s how we’re going to control costs of entitlements like Medicare and Medicaid. That’s why this budget is inseparable from this recovery — because it is what lays the foundation for a secure and lasting prosperity; the groundwork for a future that reflects what we know this country can be. [emphasis added]

Similarly, during the question-and-answer session following his March 24 press conference, Obama said: “What we have to do is bend the curve on these deficit projections. And the best way for us to do that is to reduce health care costs. That’s not just my opinion; that’s the opinion of almost every single person who has looked at our long-term fiscal situation.” Indeed, Office of Management and Budget director Peter Orszag, who formerly headed the Congressional Budget Office, said in March 4 testimony before the House Ways and Means Committee about the administration’s 2010 budget that “[t]he principal driver of our Nation’s long-term budget problem is rising health care costs.” Orszag continued:

If costs per enrollee in our two main Federal health care programs, Medicare and Medicaid, grow at the same rate as they have for the past 40 years, those two programs will increase from about 5 percent of GDP today to about 20 percent by 2050. (As the Congressional Budget Office (CBO) and others have noted, there are reasons to expect cost growth to slow in the future relative to the past even in the absence of policy changes. But the point remains that reasonable projections of health care cost growth under current policies shows that they are the central cause of the Nation’s long-term fiscal imbalance.) Many of the other factors that will play a role in determining future fiscal conditions — including the actuarial deficit in Social Security–pale by comparison over the long term with the impact of cost growth in the Federal government health insurance programs. Health care is the key to our Nation’s fiscal future, and health care reform is entitlement reform. [emphasis added]

Orszag also addressed those who argue that investing in health reform is inappropriate given the economic crisis, saying that he “share[s] their concern about the fiscal health of our Nation — and the President does as well.” Orszag continued:

But the bottom line is that that we simply cannot afford to stay on the course that we’ve been on. If we do not begin to address the high costs of health care, our families will continue to be squeezed, our businesses will have trouble competing, and our Nation will remain on an unsustainable fiscal path. If we do not invest in education and clean energy, our prospects for long-term economic growth will be diminished. And if we do not make government more efficient, we will continue to waste the precious resources we do have. [emphasis added]

Examples of media figures claiming that heath reform is not feasible given the federal government’s long-term fiscal outlook, while ignoring the administration’s comments that address that point, include:

  • On the March 26 episode of Fox News’ Hannity, Fox News contributor Karl Rove stated that “Barack Obama wanted the country to turn to the issue of green jobs, education, health care, and instead, people are looking at these huge deficits and the huge power grab and the huge spending, and saying, really, what I’m concerned about is taxes, deficit, and spending. And he’s succeeded in putting the agenda back on to terms that are — that are more convenient and comfortable for conservatives, and he’s done so through a very radical budget.” Later in the show, Sean Hannity stated: “All right. Obama wants to expand government. We’ve got health care, unbelievable amounts of spending — we’re gonna bankrupt the country.”
  • A March 24 Washington Times editorial stated: “A major problem with the Obama budget is that it focuses on a number of costly administration legislative priorities whose timing should be questioned given the state of the economy and the massive level of stimulus spending already implemented this year. These include overhauling health care, implementing a cap-and-trade greenhouse gas emissions program, and shifting federal student loans into the Education Department’s direct-loan program.”
  • In a column published in the March 10 Washington Times, syndicated columnist Tony Blankley wrote: “But vastly more dangerous to the Obama presidency (and the nation) was his decision to go full steam ahead to immediately start to transform health care, fight carbon dioxide energy sources with new taxations that will increase the cost of all energy, goods and services, and increase new expensive education entitlements as part of federalizing American education. It is this decision to not postpone those multiyear, multitrillion-dollar programs until the economy and the financial system is revived that exposes Mr. Obama’s presidency to a possible catastrophic meltdown in its first term.”

Examples of media figures reporting on Obama’s critics calling his health-care plan untenable given the current and projected federal budget deficits, without noting Obama’s reasoning for doing so include:

  • On the March 25 edition of CNN’s Lou Dobbs Tonight, congressional correspondent Dana Bash stated: “CNN is told that some conservative Democrats used their private Obama meeting to question the wisdom of his plans for big spending on health care, education, and energy in difficult economic times. Meanwhile, Republicans are trying to exploit differences among Democrats.”
  • In a March 23 Washington Times article, reporter Tom LoBianco wrote: “As Congress weighs Mr. Obama’s first budget, with $1.5 trillion in deficit spending, Republicans and moderate Democrats have become wary of the White House’s long-term plan, which includes an ambitious overhaul of health care and a plan to raise nearly $2 trillion through a greenhouse gas emission measure.”

From the March 26 edition of Fox News’ Hannity:

HANNITY: Republicans are tearing their hair out about President Obama’s socialist policies, but could there be a silver lining to all of this? Now, Karl Rove says the president’s inability to bring about the change that he promised could send Americans running back to the Republican Party, and he joins us now.

Karl, good to see you. Read your piece in The Wall Street Journal — agree with a lot of it. How does this send America, with all this move toward socialism, all this power grab, all this — all these bad nominees and bad governing — how does it send people back to the Republican Party?

ROVE: Well, Barack Obama, first of all, is governing very much different than Barack Obama campaigned, and so the divide between those two — the sort of moderate centrist who campaigned, and the very radical agenda that is being pursued by the president once he got into office, are causing people to examine what’s going on.

And Barack Obama wanted the country to turn to the issue of green jobs, education, health care, and instead, people are looking at these huge deficits and the huge power grab and the huge spending, and saying, really, what I’m concerned about is taxes, deficit, and spending.

And he’s succeeded in putting the agenda back on to terms that are — that are more convenient and comfortable for conservatives, and he’s done so through a very radical budget.

[…]

HANNITY: All right. Well, Winston Churchill said —

ANN COULTER (right-wing pundit): And he’s making up for what he did.

HANNITY: Yeah, exactly. All right. Obama wants to expand government. We’ve got health care, unbelievable amounts of spending — we’re gonna bankrupt the country.

From the March 25 edition of CNN’s Lou Dobbs Tonight:

DOBBS: Good evening, everybody. President Obama took his budget sales pitch to Capitol Hill. Today, he met with Democrats in the House and Senate, trying to persuade them to go along with his $3.6 trillion spending plan. Already, Democratic leaders are scaling back the president’s domestic programs and his middle-class tax cut. Republicans tonight are calling upon the American people to rise up against the president’s spending plan. Dana Bash has our report from Capitol Hill.

[begin video clip]

BASH: A trip down Pennsylvania Avenue to rally support for his budget, going behind closed doors with fellow Democrats, wary of big spending and soaring deficits.

SEN. KENT CONRAD (D-ND): He asked the caucus what he asked me: Preserve my priorities — education, energy, health care. Reduce the deficit substantially.

BASH: But even as President Obama made his case, Democrat-led House and Senate committees were writing their own budgets and scaling back some of the president’s plans. Most prominently, the signature tax cut he campaigned on — $400 for most individuals, $800 for couples.

The Senate budget would eliminate funding for that in two years, unless the White House finds a way to pay for it. Congressional Democrats are also slashing $250 billion the White House set aside for more Wall Street bailouts. The Democratic budget chairman called the changes critical to taming the exploding deficit.

CONRAD: In light of the new reality, those are the fundamental differences. We have had to insist that things be paid for, and I make no apology for it.

BASH: CNN is told that some conservative Democrats used their private Obama meeting to question the wisdom of his plans for big spending on health care, education, and energy in difficult economic times. Meanwhile, Republicans are trying to exploit differences among Democrats. Listen to this GOP appeal to conservative Democrats.

REP. PAUL RYAN (R-WI): You hold the cards. You have the votes that can make the difference in this. You can stop this. I’m asking you: Join us to stop this fiscal train wreck.

[end video clip]

BASH: Now, one of the major changes congressional Democrats are making is, Lou, they are taking out the $600 billion-plus that the president set aside to reform health care. That, of course, is one of his top priorities. Now, Democrats say that they still, of course, vow to tackle this issue. But now they’re going to have to find a way to pay for it. And everybody agrees it is going to be a mind-blowing price tag.

DOBBS: Well, the mind-blowing price tag may be coming down if people like Congressman Paul Ryan, as you just reported, opposing directly, publicly, and with some passion, the president’s proposals. We know 16 Democrats in the Senate doing the same thing. This president has a real battle on his hands on Capitol Hill with this budget, doesn’t he?

BASH: He absolutely does. It’s — he’s unlikely to get any of those House Republicans. He doesn’t need them in the House, but with regard to those Senate Democrats, I talked to a lot of them going in and out of the meeting with President Obama today. Many of them did tell me that they feel a little bit more comfortable with the budget that’s going through the Senate now because of those changes. They weren’t major changes, but changes enough for some of them that they feel more comfortable with the fact that Congress is trying to tackle the deficit issue, at least better than — from their perspective — better than the president has.

DOBBS: “Better” is as it implies, a relative term. I mean, these are huge deficits and additions to the national debt — extraordinary. Thank you very much, we appreciate it. Dana Bash.

BASH: Thanks, Lou.

From a March 23 Washington Times article:

One of President Obama’s top economic advisers said massive increases in domestic spending can’t wait – even as federal spending continues to mount, with new plans to spend $1 trillion to buy toxic bank assets and an independent report that the White House undershot the nation’s debt by $2.3 trillion.

But Republican lawmakers have become increasingly skeptical of Democratic spending plans, presenting some of their most dire forecasts Sunday.

Sen. Judd Gregg, New Hampshire Republican and one-time Obama pick to lead the Commerce Department, said the combination of new spending could cause the nation to go bankrupt.

Christina Romer, chairman of the White House Council of Economic Advisers, said Mr. Obama’s domestic budget priorities, including major reforms in health care, education and the environment, must be kept in the budget as Congress takes control of the spending document.

“All three of those [Mr. Obama] said are just too big to wait,” she said on “Fox News Sunday.”

As Congress weighs Mr. Obama’s first budget, with $1.5 trillion in deficit spending, Republicans and moderate Democrats have become wary of the White House’s long-term plan, which includes an ambitious overhaul of health care and a plan to raise nearly $2 trillion through a greenhouse gas emission measure.

“I think maybe the president’s trying to take on too much,” Sen. Charles E. Grassley, Iowa Republican and ranking member of the Senate Finance Committee, said on CBS’ “Face The Nation.”

“You know, he wants to emulate Franklin Roosevelt.”


Angela Merkel: Voice of Reason

Posted in Main Blog (All Posts) on April 1st, 2009 4:40 am by HL

Angela Merkel: Voice of Reason
WASHINGTON — Amid the panic of the hour, with governments creating, borrowing and spending money like drunken sailors, German Chancellor Angela Merkel has emerged as the conscience of the developed world. Perhaps because she was raised in communist East Germany, or maybe because the memory of the 1920s and the evil political consequences thereof is so ingrained in the psyche of her fellow Germans, she is standing like a rock in the tempest, urging people to be prudent. Of all the leaders participating in this week’s G-20 meeting in London, she is the only one who has reminded us of the origins of the current troubles and why the remedy favored by most governments is dangerous. “It happened,” she recently told the Financial Times, “because we were living beyond our means. … After the Asian crisis and after 9/11, governments encouraged risk taking in order to boost growth” by dumping ever-cheaper money into the financial system.


AIG’s Stiffed Business Partners Begin to Speak Out

Posted in Main Blog (All Posts) on April 1st, 2009 4:39 am by HL

AIG’s Stiffed Business Partners Begin to Speak Out
Last week we reported that the House Financial Services committee’s ranking member, Rep. Spencer Bachus (R-AL) is asking chairman Barney Frank and the Treasury department to look into the cases of smaller U.S. banks that are allegedly being stiffed on…

Murtha: If Loving Constituents Is Wrong … I Don’t Wanna Be Right!
Backing down isn’t Rep. John Murtha’s style. The cantankerous House power-broker is under fire for his ties to the PMA lobbying firm, which just shut down amid reports of an FBI probe into its campaign contributions to friendly lawmakers, including…



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Prosecutors: Ponzi Scheming Art Dealer Bilked McEnroe, DeNiro
Bernie Madoff isn’t the only Ponzi schemer on New York’s Upper East Side, at least according to prosecutors. Last Thursday, Lawrence Salander, a prominent art gallery owner, joined Madoff on that illustrious list when he was charged with bilking a…


Win/Win

Posted in Main Blog (All Posts) on April 1st, 2009 4:35 am by HL

Win/Win


No Winner, But Republicans Still Lose

Posted in Main Blog (All Posts) on April 1st, 2009 4:34 am by HL

No Winner, But Republicans Still Lose
“There’s no winner yet in the Upstate New York special election and it might be mid-April before the race is settled,” Politico reports. “But a few things are clearer after Tuesday’s contest, none of it welcome news to the Republican Party.”

“The first election to take place during the Obama administration was a push, with neither side winning big or losing big. But that in itself ranks as a defeat of sorts for the GOP, which invested heavily in the race.”


Pissed Off at the Corporate Banking Industry? Here’s an Easy Way You Can Hurt Them

Posted in Main Blog (All Posts) on April 1st, 2009 4:33 am by HL

Pissed Off at the Corporate Banking Industry? Here’s an Easy Way You Can Hurt Them
We need to force the administration to do to these tumorlike institutions what they just did to GM. Moving our checking accounts will do the trick.

Fainting in This Country Can Carry a $10,000 Price Tag
After passing out, Kirk Nielsen got gouged by exorbitant health care fees.

8 Ways to Join the Local Food Movement
How to turn a lawn into lunch, swap preserves, glean, boost your food security and live the good life.


Geithner’s Plan Will Tax Main Street to Make Wall Street Richer

Posted in Main Blog (All Posts) on April 1st, 2009 4:32 am by HL

Geithner’s Plan Will Tax Main Street to Make Wall Street Richer
The new consensus among the experts who missed the housing bubble (EMHB) is that Treasury Secretary Tim Geithner’s plan to subsidize the purchase of junk mortgages and their derivatives will help alleviate the stress on the banking system. That’s good…

Education and Government Budgets
This column was published in yesterday’s Haaretz. It was prompted by a warning sent around by university presidents to their faculties that Treasury officials have put them on notice: budgets would be cut, and last year’s agreement with the professors…

Remembering and Misremembering King
Clay Risen’s book on the King riots of 1968 has much to commend it, including his clear-eyed portrait of the Reverend Martin Luther King, Jr. in his last, difficult years. As Clay writes, “the public, the media, and the…


Since they couldn?t have Palin, congressional GOP turn to their second choice: Newt Gingrich.

Posted in Main Blog (All Posts) on April 1st, 2009 4:31 am by HL

Since they couldn?t have Palin, congressional GOP turn to their second choice: Newt Gingrich.
Earlier this month, the top congressional GOP fundraising committees — the NRSC and the NRCC — issued a joint press release announcing that Gov. Sarah Palin (R-AK) would deliver the keynote address at their annual fundraising dinner. However, Palin’s staff quickly quashed the excitement, saying that “[e]nthusiasm during a scheduling meeting…was misinterpreted as a […]

ap03040601408.jpg Earlier this month, the top congressional GOP fundraising committees — the NRSC and the NRCC — issued a joint press release announcing that Gov. Sarah Palin (R-AK) would deliver the keynote address at their annual fundraising dinner. However, Palin’s staff quickly quashed the excitement, saying that “[e]nthusiasm during a scheduling meeting…was misinterpreted as a confirmation of attendance.” Embarrassed, Republicans began trashing the governor. “She was a disaster,” said one Republican source. “We had confirmation.” The GOP has now turned to its second choice — former House speaker Newt Gingrich. The Wall Street Journal reports that Gingrich has agreed to “speak in her place.”

Conservatives Falsely Assert That Green Economy Legislation Would Impose $3,100 Tax On Families
Cross-posted from The Wonk Room. Conservatives in Congress are resting their objections to effective green economy legislation on a bogus stat. Conservative leaders like Rep. John Boehner (R-OH) and Sen. Mitch McConnell (R-KY) are attacking the cap-and-trade proposal before Congress by claiming that it would “cost every American family up to $3,100 per year in […]

Cross-posted from The Wonk Room.

cry.jpgConservatives in Congress are resting their objections to effective green economy legislation on a bogus stat. Conservative leaders like Rep. John Boehner (R-OH) and Sen. Mitch McConnell (R-KY) are attacking the cap-and-trade proposal before Congress by claiming that it would “cost every American family up to $3,100 per year in higher energy prices.”

This is a deliberate lie.

They seem to be getting this number from an intentional misinterpretation of a 2007 study performed by a group of researchers at the MIT.

In an interview with PolitiFact, John Reilly, an MIT professor and one of the authors of the study, explained about this $3,100 claim:

It’s just wrong. It’s wrong in so many ways it’s hard to begin.”” […]

“Someone from the House Republicans had called me (March 20) and asked about this,” Reilly said. “I had explained why the estimate they had was probably incorrect and what they should do to correct it, but I think this wrong number was already floating around by that time.”

House Republicans apparently took the total revenues from the hypothetical cap and trade system that MIT analyzed and crudely divided it by the number of households in America, getting approximately $3,100 per family.

What they don’t mention, however, is that not only did John Reilly explicitly tell them that this was an inappropriate way to do this calculation, but that MIT had determined the net welfare effect on a typical family and the burden would be less than 1/40th what they claim, and wouldn’t occur until 2015.

As PolitiFact explains: “The report did include an estimate of the net cost to individuals, called the “welfare” cost. It would be $30.89 per person in 2015, or $79 per family if you use the same average household size the Republicans used of 2.56 people.” In exchange, we’d get a clean & renewable energy economy, decreased reliance on oil, and a safer climate for the world.

The reason Boehner’s methodology is totally inappropriate?

That’s just not how economists calculate the cost of a tax proposal, Reilly said. The tax might push the price of carbon-based fuels up a bit, but other results of a cap-and-trade program, such as increased conservation and more competition from other fuel sources, would put downward pressure on prices. Moreover, consumers would get some of the tax back from the government in some form. [In this case,President Obama wants to use revenues from cap-and-trade to fund a tax cut for 95% of working families]”

When conservatives tell you you’d see your energy bills go up $3,100 every year, it’s not distortion or spin, it’s just a lie.