In The Belly Of The Beast

I found this link over at TigerHawk– it’s a blog entry written by an executive (or soon to be former executive) at AIG. He is (was) a member of the support team, responsible for making sure all of the technical pieces ran smoothly.

Whatever your feelings are of the whole AIG bonus debacle, you should take a few minutes to read through this – it’s worth it.

With Critics Like These…

It turns out that the five questioners chosen randomly by President Obama in the East Room during his White House town hall meeting last Thursday were actually campaign backers. Of course, the Post is quick to point out that the practice is hardly new – Bush engaged in such town hall chicanery – but it does appear to water down Obama’s lofty rhetoric about engaging one’s critics: “I think it’s important to engage your critics…because not only will you occasionally change their mind but, more importantly, sometimes they will change your mind.”

And if you happen to share one mind, all the easier…

Wagoner Out At GM

Perhaps as a harbinger of things to come, GM CEO Rick Wagoner has agreed to step down at GM at the behest of the Obama Administration.

Those of you who still feel the right is hyperventilating conspiracy theories about the administration’s intent to nationalize large swatches of US industry may want to re-read that last sentence…

ShamWow Guy Busted

Vince Shlomi, the pitchman for TV's ShamWow and other useful household gadgets, was arrested last month in Miami's South Beach following a violent confrontation with a prostitute in his hotel room.

I guess she didn't like his nuts...

Saturday Morning Blogroll

What others from around the blogosphere were saying this week...

CENTER LEFT

Crooked Timber: The Totalitarian Temptation and all that...
Brad DeLong: J.M. Keynes comments on the current crisis...
Ezra Klein: Don't trust the regulators...
Firedoglake: Reaction to President Obama's Af-Pak speech...
Huffington Post: Reid: Justice Roberts lied to us...

CENTER RIGHT

Argghhh!: The new White House Afstan/Pakistan policy...
Back Talk: The enigma of US opinion on the death penalty as a deterrent...
Michael Barone: Obama's Cap-and-Trade will meet stiff resistance...
The Elephant Bar: Obama and Geithner worry the Czechs and the EU...
Counterterrorism Blog: Pakistan will be key factor in Af-Pak strategy...

Southpark Explains It All

This clip of Stan becoming privy to the inner workings of the Treasury bailout program makes more sense than any of the explanations I've heard from Geithner to date...



WARNING: Cartoon violence

HT:Calculated Risk

Nice Work If You Can Get It

I’m not one to begrudge anyone from using their talents to make a lot of money, and I certainly don’t buy into the public witch hunt over the AIG bonuses, but I can’t help thinking a bit of a double standard is at play here after reading this story on Rahm Emanuel’s payout after his brief stint with Freddie Mac.

Emanuel served on the board of the failed mortgage giant Freddie Mac for fourteen months after his appointment in 2000 by then-President Bill Clinton. If the facts of the article are valid, the board met no more than six times a year, and Emanuel was not assigned to any of the board’s working committees. For his service, Emanuel received a $20,000 annual fee along with $380,000 in stock and options. Not a bad return on investment.

So while Jake DeSantis and other AIG executives are publicly flogged for accepting bonus payouts, Emanuel skirts by scrutiny. I think Emanuel will prove to be more a liability than asset for President Obama, and the President might want to consider developing an Emanuel exit strategy of his own.

Paying For The Bullet That Kills You

Speaking before reporters yesterday, National Intelligence Director Dennis Blair confirmed that the Administration not only intends to release some of the enemy combatants currently housed in Gitmo by the end of the year, but also that the US will provide assistance to allow them to return to society. That’s a return to society – in the US.

“You just can’t put them on the street,” said Blair. I agree, why not put them on a C130 and fly them back to their countries of origin along with note pinned to their chest thanking them for providing the CIA with intelligence on their brethren’s location and movements.

Or better yet, why not make them community activists?

White Men Can’t Save

The President of Brazil is certainly taking an interesting position in this whole global financial crisis. Instead of following the “Blame Bush” crowd, Luiz Inacio da Silva believes the crisis “was caused by the irrational behavior of white people with blue eyes, who before the crisis appeared to know everything and now demonstrate they know nothing.”

Sort of like the voters in Brazil…

Blue Dog Hunting

It seems MoveOn and Americans United for Change have taken out ads seeking to pressure moderate or so-called “Blue Dog” democrats to…well I guess in this case roll over for the President on his budget initiatives. MoveOn Executive Director Justin Ruben explains, “Our ads ensure the voices of our 5 million members and the millions of other Americans who support this budget can be heard over the army of lobbyists.” To which army of lobbyists do you think he refers – MoveOn and its “5 million members” or the army of lobbyists working for the Obama Administration – the article doesn’t make it too clear.

My suspicion is these dogs are going to start howling once things start to heat up over the spring when the promised economic growth doesn’t quite tie out to Administration forecasts.

Bad Money After Bad…

Assemble a team with zero to no experience in the automotive industry and charge them with restructuring the nation’s flailing auto industry and what do you get? After meeting for just over a month, Obama’s task force on the auto industry is expected to release its findings that Chrysler and GM futures are viable, provided that these companies’ management, labor unions and bond holders all make sacrifices. Oh yes, this and they’re willing to lend an additional $22 billion of taxpayer dollars to ensure this viability.

Why don’t we just lock a room full of monkeys in a room with flip charts and lap tops and let them have at it – we could have saved on salaries, and they’re likely to come back with more salient positions than these guys. Oops, sorry, not allowed to say that…

Volker To Lead Tax-Code Overhaul

President Obama has tapped former Fed Chairman Paul Volker to head a commission charged with reviewing and making recommendations on “simplifying” the nation’s Byzantine tax-code.

Every President I can remember assembles one of these “blue ribbon” panels early in his administration, who then go away for six months and come back with a phonebook size report of policy recommendations, many of which wind up in the President’s circular file. I will be curious to see if this panel’s work follows this same path. The tax-code is in definite need of an overhaul, but I would have preferred it have been overseen by a President less likely to use taxation as a punitive weapon, or as a means to “level the playing field”.

Moe, Larry, The Cheese

I realize this story may wind up being nothing more than a silly rumor, but it’s too tempting to resist. From La-La-Land comes news that MGM and the Farrelly brothers (Dumb and Dumber) are teaming up for a full-length feature update of the classic “Three Stooges” comedy shorts.

Rumored casting for the lead roles includes Jim Carrey as Curly (I would have preferred Michael Moore), Benicio del Toro as Moe and none other than the right’s favorite Stooge Sean Penn as Larry. Please feel free to insert any other del Toro-and-Penn-are-real-life-stooges jokes here…

But admittedly – I think these casting choices are inspired, and would be mildly curious to see the finished product if it ends up with these three in the roles. But I think it should be told as a biopic as opposed to “a fictional treatment that maintains the Stooges' gleeful slap schtick updated for a modern milieu.”

Nyuk-nyuk-nyuk indeed.

Newspaper Bailout Next?

Dear Baby Jesus, please stop the madness. Senator Benjamin Cardin has introduced legislation to allow newspaper companies to restructure as nonprofits, enabling them to become eligible for government tax breaks.

Sen. Cardin’s Newspaper Revitalization Act would allow newspapers to operate as nonprofits for “educational purposes” under the U.S. tax code, giving them a similar status to public broadcasting companies. Under the bill, newspapers would be allowed to report on all areas of interest, including political campaigns, but would be prohibited from making political endorsements.

This arrangement seems to be working splendidly with NPR’s and PBS’ neutrality.

The Tax Cut To Nowhere

The middle-class tax cut, which had been the cornerstone of the Obama campaign's economic plan, now faces an uncertain future in Congress. Outlining his administration’s budget priorities during last night’s press conference, President Obama stressed his effort will be focused on health care reform, energy policy, investment in education and deficit reduction - and it will be up to Congress whether or not the tax "cuts" are made permanent.

The real trick here will be to see how exactly the President intends to reduce the deficit when the other three priorities appear to require massive and permanent “investment”. Washington has proven it can spend; however, it does not have the best track record on cutting back.

And what of those tax “cuts” to 95% of American households - the President sought fit to leave Congress holding that bag. “When it comes to the middle-class tax cut,” the President said, “we know that’s going to be in place for at least the next two years.” But the President continued, “If Congress has better ideas in terms of how to pay for it, then we’re happy to listen.”

“We never expected, when we printed out our budget, that they would simply Xerox it and vote on it,” Obama said. Perhaps, but that’s precisely what they did at his direction; and now, a different sort of printing press is working overtime to pay for it.

Specter A Rock On Card Check

Perhaps feeling heat from a potential election challenge from Republican rival Pat Toomey, Pennsylvania Senator Arlen Specter is apparently making it known that he will vote against cloture on card check legislation, setting back labor union efforts to eliminate workers’ secret ballot vote on unionization. Specter was the only Republican to vote for card check legislation the last time it came up in the Senate.

Grover Norquist told the American Spectator’s blog yesterday that he received a call from Specter’s chief of staff saying that the senator would be voting against cloture on card check. However, Specter left open the possibility of voting for card check in the future on the floor of the Senate later that day:

“If efforts are unsuccessful to give Labor sufficient bargaining power through amendments to the NLRA, then I would be willing to reconsider Employees’ Free Choice legislation when the economy returns to normalcy.”

At least you know where he stands.

Hat tip: The Weekly Standard

Obama Uses Monitor; Teleprompter Heartbroken

The air in the East Room of the White House was abuzz with rumor and innuendo last evening when President Obama was seen reading from a newer, younger and definitely more sleek LCD monitor.

His teleprompter attempted to put up a stoic front despite the obvious snub, but friends say the device is heartbroken and seeking comfort with several IBM Thinkpads in the White House basement.

“They’ve set up the East Room, and Big Boy said he’d feel more comfortable having lots of friends around him,” said the teleprompter. “The LCD screen thing is gonna make life so much easier for him when he’s back in the White House.”

Stand by your man.

The President’s Press Conference

President Obama has scheduled his second prime time news conference since taking office in January, presumably to answer questions concerning the bank bailout plan, AIG bonuses, Iran and reports that he intends to replace Press Secretary Robert Gibbs with his teleprompter.

To make this fun for those of you playing at home, try viewing tonight’s festivities with your favorite bottle of spirits nearby, and take a drink every time you hear the President say, or make reference to the following (or close to it):

- I didn’t create this mess, but I’m going to clean it up
- The last ten years of poor policy decisions have led to this climate of greed
- I inherited over a trillion dollars in debt, but my plan will halve it by 2012
- My stimulus bill has already begun to have a positive impact on the economy
- Responsibility for the AIG bonuses begins and ends with me; but…
- Pahk-eee-stahn

That should be a good enough start. Enjoy.

The CBO Says We Are SOL…

The CBO has released an assessment of President Obama’s proposed 2010 budget requests, and has found that the proposals would likely increase the federal deficit by $2.3trillion more over 10 years than the White House had originally stated.

Additionally, the study projects that Obama’s spending proposals would likely inflate the budget deficit to over 4 percent of GDP, and by the end of his second term (oy!), that figure would rise to over five percent:
More...
But so what, argue the new Keynesians, Republicans have run deficits for years and it was only until Clinton took over in ’93 did we finally balance the books to the plus side. And besides, we’re smack dab in the middle of a crisis requiring swift and bold (read: expensive) action.

Perhaps, but what if the government spending multipliers that form the basis of Obama’s economic models were based on older Keynesian assumptions? This report presented by economists/authors Cogan, Cwik, Taylor and Wieland last month conclude that government spending multipliers in new Keynesian models used universally in academia are much less than older models. How much less? The report says the spending impacts presented by Obama’s Economic Advisor Christina Romer on the President’s stimulus package and budget proposals are six times larger than those implied by government spending multipliers in a typical new Keynesian model. Romer’s numbers also report job impacts that are up to six times larger than the alternative models the authors present.

If the economy is humming along at 4% growth and the budget deficit is under three percent of GDP by this time in 2016, I’ll consider it Monopoly money well-spent. But until that time, I’ll remain a healthy skeptic.

McCain Beats Obama – In NCAA Picks

Heh. I can’t wait to see the reaction from the Conservative Wahoo about Obama's opinion of the ACC. When asked Saturday morning if he thought the ACC was overrated, President Obama remarked, “Apparently so.” Ouch.

Anyway, Senator John McCain easily beat President Obama in the weekend’s NCAA men’s tournament bracket picks. McCain has 14 of his first-round teams heading to the Sweet 16, placing him in the 94th percent tile. Obama did not fare as well. But being there's a recession on and all, so I'll cut him some slack.

Exit Part Of Entrance Into Afghanistan

Speaking on CBS’ “Sixty Minutes” last evening, President Obama previewed his upcoming policy objectives in Afghanistan and Pahk-ee-stan, and added that a US exit strategy might be a key component in his war in Afghanistan.

This particular policy nuance is in contrast to his predecessor, who resisted congressional efforts to tack timetables and exit strategies in Iraq.

Now that he’s calling the shots, it will be interesting to see exactly how this exit strategy evolves as the heat is turned up…

Updated 3/23/09, with comments from Micheal Yon on Afghanistan:
The hints coming out of Washington tend to cause me to believe we will abandon Afghanistan. I’m making no personal comment one way or the other yet, other than Iraq was worth the effort and costs all the way around – so long as we cement that success. Afghanistan seems little more than a tar pit. I want to hear General Petraeus say success is achievable, and to at least set some white lines by what he defines as success. He’s one of the very few people who have both the experience and character that are required to accurately estimate the truth and then deliver the good, bad and the ugly. If General Petraeus puts his word behind it, I’m only one man but I’ll back him. That’s about all there is to say on Afghanistan. HT: NRO

Strange Bedfellows

Later today, Treasury Secretary Timothy Geithner is expected to unveil his agency’s long-awaited plan to remove toxic assets from the financial sector’s balance sheets. Central to the plan’s success is the creation of a public-private sector partnership to absorb the troubled assets to the tune of some $500 billion to $1 trillion. These private sector fellows who are integral to the plan’s success are the same rabble currently being vilified by the President and Congress for its excesses in executive compensation.

More...
The Geithner plan is a three-prong attack designed to stabilize the financial system and restart business and consumer lending. The plan’s components include:

- A partnership of the Treasury and FDIC to stimulate auto, credit card and consumer lending;
- Government purchasing of securities backed by the SBA loans to encourage lending; and,
- A mortgage-loan modification program to reduce foreclosures.

While the plan calls for a “stress test” for troubled major banks and new infusions of capital for those that need it, it does not address (or I didn’t see it) reorganization as a remedy for these institutions – in other words, they’re all too big to fail.

Writing in this morning’s Wall Street Journal, Secretary Geithner believes that his plan will help to unclog the lending channel and provide a market-based price for these toxic assets, which he feels to be undervalued at the moment. And to help ease the sting of Congressional spankings over executive compensation, Geithner hopes to exclude program participants from executive pay rules imposed by Congress.

Considering the anti-capitalist furor that has seemed to grip the American psyche over the last few months, this “partnership” would seem a risky proposition. And while Wall Street would be certainly within its rights to thumb its nose at the administration for its sanctimonious sermons on executive bonuses, it also understands a good deal when it sees it. If this is an opportunity to make money, Wall Street is in – it will find other ways to keep its fat cats happy.

But for any overtures made by the administration toward program participants with regard to exemption from executive pay rules, I submit the fable of the Scorpion and the Frog as a likely outcome of that proposition…

"Job Fair" Is The New "Ballet"

Not that I would ever condone this sort of behavior, but a Rhode Island club has hit upon the perfect alibi for guys in these trying economic times...

Where are you going, honey?

Why, I'm going to a job fair dear.

Did The Canadian System Fail Richardson?

My brother Tom posited an interesting question earlier this week following actress Natasha Richardson’s unfortunate skiing accident in Canada; something to the effect of:

If the health care system in Canada is superior to that of the US, why was Richardson flown to a hospital in New York?

My initial thought was, “well, to die of course”. However, a Canadian doctor’s contention that Quebec’s lack of a medial helicopter may have played a factor in Richardson’s death puts this question into a whole new context. “Our system isn’t set up for traumas and doesn’t match what’s available in other Canadian cities, let alone the states,” said Tarek Razek, director of trauma services for the McGill University Health Centre, which represents six of Montreal’s hospitals.

Food for thought…

Kelloggs Wants Its Peanuts, And Eat Them Too

I finished reading Jonah Goldberg’s Liberal Fascism earlier this week. For me, seven eighths of the book was a fascinating, well-researched read on the roots of modern liberalism. However, it lost me in the last 75 or so pages; but this isn’t a slight on Goldberg’s thesis or writing as much as it is a combination of my ADD and desire to move on to the new Watchmen novel I received as a birthday gift.

One of the interesting parts of Goldberg’s book concerns the relationship of Progressivism and “Big Business”. Many on the left point to the era of the muckrakers as one societal role liberalism played in breaking the collusion existing between corporations and the right. Goldberg asserts that this is a misconception; that “Big Business” actually welcomed government intervention and regulation and worked hand-in-hand with the Wilson and Roosevelt administrations in crafting the very rules that governed them. Why? Simply put, because it crowded out competition. The larger corporations could afford to absorb the economic costs of regulation that the smaller companies could not. And if you’re going to be regulated, why not have a hand in steering it to your advantage? The federal government benefits as well, as fewer companies in a particular industry are easier to manage.

Could this be a continuation on that theme? The CEO of Kelloggs testified before Congress on Thursday calling for new requirements that all food companies have written safety plans, annual federal inspections of facilities that make high-risk foods, as well as other safety measures.

Saturday Morning Blogroll

What others around the blogosphere were saying this week…

THE LEFT

crooksandliars - reactions to President Obama's performance on the Tonight Show...
firedoglake - Treasury attempts to "blame Dodd" for AIG bonuses...
Huffinington Post - Edgar Bronfman on realism and leverage for engaging Iran...
Americablog - John Aravosis on "exploding" mortgages...
FiveThirtyEight - Unintended consequences with bonus tax legislation...

THE RIGHT

Rightwing Nuthouse - a case for the defense of the Administration's handling of the AIG affair...
American Thinker - more global warming alarmist child abuse?...
TigerHawk - Iran responds to President Obama...
Powerline - Are we a banana republic?...
ScrappleFace - Union demands fair wages for Obama's Garden Kids...

Obama Lowers The Bar

President Obama used his appearance on Leno to promote his budget plan, the stimulus, and reaffirm his confidence in his Treasury Secretary Timothy Geithner. The President also sought to reassure Americans that the economy will recover, but tempered his remarks by saying that patience is required. “We will come out on the other side stronger and a more prosperous nation,” the President said. “That I can guarantee you. I can’t tell you how long it will take, what obstacles we’ll face along the way, but I promise you this: there will be brighter days ahead.”

The American public…patience!? Good luck with that. But I can't help feeling that Obama himself contributed in part to these unreasonable expectations through a little rainmaking of his own. Here are the growth forecasts put out by the Obama budget team (in red) followed by a consensus forecast made up of private “blue chip” forecasters (in blue):

2009: -1.2% -1.9%
2010: +3.2% +2.1%
2011: +4.0% +2.9%
2012: +4.6% +2.9%
2013: +4.2% +2.8%

HT on the data: Greg Mankiw

He can’t tell us how long it will take? According to his Administration’s forecasts, prosperity is right around the corner. Obama has banked his budget (and our collective futures) on it.

…Or Like A White Man Dancing

President Barack Obama yukked it up with Jay Leno last evening, but one bon mot in particular from his appearance may be giving Press Secretary Gibbs fits this morning.

As Jake Tapper reports, the gaffe happened toward the end of President Obama’s appearance, as he talked about his infamous bowling prowess and how he’s improved with practice on the White House lanes. Obama said he bowled a 129, to which Leno replied sarcastically, “that’s very good, Mr. President.”

“It’s like a Special Olympics moment,” the President shot back.

Yes Mr. President, it is precisely like a Special Olympics moment – except for the fact that the participants in that event have IQs of 40 and many of them are unable to tie their shoes.

Wasn’t his election supposed to be a breath of fresh air, that his intelligence and elocution would transcend politics and even race? We’re sixty days into this presidency, and President Obama already has enough material for an “Obamansims” calendar.

He's a pretty funny guy.

Baby Boom Or Bust?

First the good news – the United States isn’t on quite the same trajectory to demographic oblivion as its developed Western European counterparts. In 2007, a record 4.3 million babies were born, bringing the US birth rate to just over 2.1, a healthy replacement rate. Many Western European nations are languishing at about 1.8 or lower.

Now the bad news – almost 40% of these babies were born to unmarried women, including almost three of every ten non-Hispanic white babies, seven out of every ten African American babies and five of every ten Hispanic babies. Additionally, the birth rate for teenage girls rose five percent from 2005 to 2007, to 42.5 births per 1,000 for girls aged 15-19.

Normally news of a minor baby boom like this would be met with relief, especially as multi-trillion dollar budget deficits loom on the horizon, not to mention the implending twin tsunamis of social security and Medicare entitlements. Baby booms mean a larger tax base, as millions of able-bodied men and women enter the workforce to replace retiring (and dying) Baby Boomer and Gen-X’ers. But judging by the socioeconomic challenges already facing this new generation, this boom might very well turn out to be a bust.

Just Wondering…

Will Senator Patrick Leahy’s “Truth Commission” seek to get to the bottom of just who in the administration and Congress knew of the AIG bonuses and the corresponding Stimulus loophole and when? I hear a lot of saber rattling from democrats about how they intend to stick it to AIG and Wall Street, but nothing about internal house cleaning designed to find out just how this fiasco was permitted to occur and who enabled it. Yes, I realize a democrat-controlled Congress would never sell out their own, but that’s the point – if this happened a year ago, there most certainly would have immediate calls for congressional hearings designed for maximum political damage.

AIG Is A P-I-G

Here’s video of Chuck Schumer this morning rising to righteous indignation on the floor of the Senate, threatening to pass legislation essentially taxing away any financial gains made by AIG executives through their retention bonuses.



What I find distressing about this clip is Sen. Schumer’s eagerness to use the power of taxation in such a vindictive and punitive matter so as to confiscate the money already paid to the recipients. What is the world coming to when I actually find myself agreeing with Charlie Rangel (D-NY) that the tax code is not “a political weapon”? If only he talked this talk in other areas of taxation as well *cough* wealth redistribution! *cough*.

I have no problem with Congress putting pressure on AIG’s CEO to renegotiate the retention bonus structure – lord knows I won’t be seeing any this year – so misery loves company. But let’s face it – not only did Congress and the administration know of AIG’s intent to pay this bonus months ago, it guaranteed it by codifying it into law.

Admittedly, I don’t know the details of how this bonus program is structured, but there must be some sort of corporate “out” where AIG has the right to alter the program at its discretion (most companies with bonus and other incentive programs do). Why not restructure the program so the money is paid to the recipients as required by law, but held in escrow for a period of three to five years as the company rights itself. If the executives leave the company before this period, they forfeit the money – if they are laid off, they receive the bonus as part of their severance package. I realize this may be a bit naive, but so is passing a law specifically to tax away this income if the recipients don’t voluntarily give it up.

The Inheritance Tax

Have you noticed a new buzzword making its way through Washington these days – inheritance – as in “my administration inherited this financial crisis”, “I inherited this war in Iraq” or “he inherited a difficult situation, including these…retention contracts”. That last remark is attributable to Treasury Secretary Timothy Geithner, referring to AIG CEO Edward Liddy, who accepted the position at the request of the federal government late last year.

The AIG situation is unfortunate and complicated, made even more so by legislative incompetence demonstrated by the likes of Dodd, Frank and Waters. Geithner appears to be in way over his head, and gives the perception (at least to me) that he lacks any sort of coordinated plan to relieve the financial system of this mess. And even if he does, the Gang of Three mentioned above will inevitably find a way to gum it up.

If You Say It Enough Times...

A poll released by CNN/Opinion Research Corporation finds that 45% of the respondents believe an economic depression is likely - this response is up seven percentage points from the same poll question asked back in December 2008.

Hmmm...economic catastrophe...depression...I wonder where the American public would go and get a thought like that in their heads?

Reading The Fine Print

As the administration scrambles to dodge the fallout generated by the revelation that AIG paid out over $165 million in executive bonuses, it may want to first check the language of its much-ballyhooed $787 billion stimulus package. For amid the thousands of pages of DC-style pork, a seemingly harmless loophole was inserted exempting TARP companies from prohibitions on paying bonuses contractually obligated before February 11th of this year.

And just who was responsible for insertion of this moral outrage? Why, that would be Senate Banking Chairman Chris Dodd, darling of the AIG lobby.

Perhaps President Obama may want to reconsider resurrecting that campaign pledge to sunset legislation before signing.

HT: National Review Online

Specter Staying In GOP

The Politico is reporting that a group of democrat movers and shakers including Vice President Joe Biden and "Fast Eddie" Ed Rendell recently attempted to pursuade Pennsylvania Senator Arlen Specter to switch party affiliation from republican to democrat.

"We've tried," said Rendell. "Myself, Sen. [Robert P.] Casey, Vice President Biden have tried to talk him into it, but he's bound and determined to stay a Republican."

Why bother, Ed? He can do more damage on the other side of the aisle.

Not Ready For Prime Time

In an effort to bolster public support for his budget proposal and deficit reduction programs, President Barack Obama will make an appearance on Jay Leno’s Tonight Show on Thursday evening. The president will stop by Leno’s studio during his trip to Los Angeles later this week.

If I was David Letterman, I’d feel a bit slighted. After all, Letterman made no attempt to conceal his contempt for the Republican Party or John McCain this past election cycle.

But beyond the obvious pandering, I don’t really get why the President of the United States would feel the need to appear on a comedy show to discuss matters of economic and national policy. It’s not as though the two are former school chums, and Obama is making good on a long-forgotten fraternity bet. This is the President; and there are other media forums available if he wishes to connect to the American public.

Perhaps this is just a sign of the times – a time where more and more Americans appear to be getting their news from Comedy Central than traditional “mainstream” media sources. Jon Stewart is a more trusted news source than Brian Williams; I don’t know if that is more a compliment to Stewart or an indictment of the pitiful state of network news.

The Troubles

Northern Ireland has been relatively quiet since the 1997 cease-fire agreement, a positive dividend fueled by an extended period of sustained economic growth and relative political stability in the UK. But the Celtic Tiger is now licking its wounds in the wake of its own mortgage crisis, and the numbers of unemployed and disillusioned hooligans on the dole increases daily.

In downplaying the possible resurgence of the IRA, the Lurgan police chief says that only a “very small group” of about 300 people was involved with the Irish Republican Army dissident groups that had claimed responsibility for recent killings of two British soldiers and a police officer. Even if this “very small group” was comprised of one, I’d be concerned.

Massachusetts Miracle Or Mirage?

If you want a glimpse into one possible future of health care under a government-funded system, look no further than the state of Massachusetts. In 2006, then-governor Mitt Romney and the legislature enacted one of the most sweeping health care proposals in the nation, providing near universal coverage to state citizens.

The problem is they purposely deferred to another day the problem of how to control rampant health spending. And now that day of reckoning is fast approaching...

Tough Choices Await Obama Health Plan

The New York Times this morning is reporting that the Obama Administration has signaled that it may be willing to consider taxing some employee health benefits – a position candidate Obama denounced as “the largest middle-class tax increase in history” during the campaign.

But don’t worry, Obama is no hypocrite, nor is he a fool. Presidential advisers have hinted that while the president will not propose the change in tax status himself, he will not oppose it if Congress does so. And if the democrats want to pass universal health legislation, they’re going to have to find the money from somewhere, so my guess is that Nan and Harry will be looked upon to take one for the team while Obama stays above the fray…

Obama: Fundamentals Are Stong

Seeking to reassure the Chinese government that their investments in T-bills are sound, President Obama asserted yesterday that despite current turmoil in the global markets, the US economy and political structure remains stable. At a gathering of reporters shortly after his meeting with Brazilian President Ignacio Lula da Silva, the President said "And so I think that not just the Chinese government, but every investor, can have absolute confidence in the soundness of investments in the United States...and that is not just in U.S.-issued Treasury notes, but also in the private sector and the commerce and the industry that has made this the most dynamic economy in the world."

Compare these sentiments with those expressed by candidate John McCain last September: "You know, there's been tremendous turmoil in our financial markets and Wall Street and it is -- people are frightened by these events. Our economy, I think, still the fundamentals of our economy are strong. But these are very, very difficult time. And I promise you, we will never put America in this position again. We will clean up Wall Street. We will reform government."

I recall many political commentators of the mainstream press at the time being quick to pounce on this statement as a sign of how out of touch McCain had become. Rereading his words this morning, they appear pretty innocuous; but the sentiment nevertheless echoes Obama's.

But where these words were once submitted as record to demonstrate incompetence, they are now held up as the soothing reassurance of a confident leader.

Brotherly Love

Um, ew. Just plain ew. Pittsfield, MA police responding to a domestic dispute learned that the altercation arose when one of the parties attempted to inseminate her wife (yes, you read that correctly) with the semen of her brother.

So many questions, so many answers that I just don't think I'm prepared to hear...

The Sensitive War On Terrorism

The Obama Administration has decided to forgo the Bush-era term “enemy combatant”, replacing it with the less threatening label “ideologically challenged nuisance”. OK, the latter part of that sentence isn’t true, but the former stands. As does apparently the Bush policy of retaining broad leeway in detaining those who would give assistance to the bad guys.

However, the Obama Justice Department is seeking to distinguish itself from the Bush Administration in this regard by stating that it would hold only terrorism suspects who “substantially supported” al-Qaeda and other groups, and not those who “provide unwitting or insignificant support.”

Toe-may-toe, toe-mah-toe; whatever helps your base sleep at night. Just keep them from blowing things up here.

Cuban Missile Crisis Redux?

While the press continues to fawningly compare President Obama to John F. Kennedy, this morning’s story from the Interfax news agency on Venezuela’s and Cuba’s invitation to the Kremlin to house Russian strategic bombers would appear to indicate that Putin is only too happy to play the role of Kruschev...

Saturday Morning Blogroll

I’ve started a new feature here at Postcards called “Saturday Morning Blog Roll”. Essentially, I’m going to list posts and news of interest from some of the most popular liberal and conservative blogs from around the internet. I do this mostly because I’m too lazy to come up with original content; but also because there is some terrific writing and thinking going on out there. To be fair, there is some truly awful stuff floating around as well. I Googled the 10 most popular liberal blogs (as well as conservative) to get started, but will add to this as we go along. Let me know what you think.

Liberal Sites

Americablog.com - There's a controversy brewing over whether the federal government should provide health benefits for gay employees…

Bagnewsnotes - At the fifty day mark of this Administration, I think this photo from yesterday's TIME White House Photo Blog carries a bit of weight...

CrooksandLiars.com - South Carolina Governor compares US black to Zimbabweans...

DailyKos.com - Musings over morning coffee. Nate Sliver answers Scott Rasmussen and Doug Schoen's WSJ piece about Obama's current approval ratings...

Firedoglake.com - The Wrath of Jon...

The Huffington Post - Thomas Frank: Obama takes on market based government...


Conservative Sites

HotAir.com - Boston Globe: Romney's the only adult left standing among the 2012 hopefuls...

Michelle Malkin - Business-as-usual Obama: OK, now "let's end the old way of doing business"...

TigerHawk - Joe Biden calls for "scaling back" in Afghanistan?...

The Volokh Conspiracy - Larry Summers Channels Gordon Gekko: Obama economic adviser Larry Summers is sounding like Gordon Gekko these days, arguing that we need more "greed" to revive the economy...

Right Wing Nut House - How radical is Barack Obama?...

Settled Science?

A group of leading scientists meeting in Copenhagen (they never meet in Newark, do they?) warned that global warming is accelerating beyond the worst predictions and threatening to trigger "irreversible" climate shifts on the planet.

Now I'm going to have to hold my hands in a "tee" and say time out here. Is climate change threatening to be irreversible, or is it already irreversible - this is no small distinction. And depending upon what day it is, the answer will vary, as evidenced here, here and here.

As a favor to this global warming heretic, could you folks on the other side of the argument perhaps get together and agree on this?

Our Banker Is Getting Nervous

Chinese Premier Wen Jiabao is said to be “worried” about his country’s holding of US debt, and wants assurances that his investment is safe (don’t we all!). At a press gathering in Beijing yesterday, Wen said that “we have lent a huge amount of money to the United States…I request the US maintain its good credit, to honor its promises and to guarantee the safety of China’s assets.”

But don’t worry Wen, the economic crisis isn’t as bad as we think.

Raise your hand if you think this obligation will have no effect on US/China relations, or the ability of the US to exert pressure on China vis-à-vis human rights, democratic reforms, North Korea or Taiwan. Anyone…anyone?

In His Own Words...

Candidate Barack Obama, on George W. Bush's use of signing statements:


If the left was so fearful of an imperial presidency under Bush, what are they to make of a guy who so clearly and condescendingly preaches to an audience on the evils of executive power unchecked (he taught Constitutional Law, after all), then reverses himself and adopts the same practice six weeks into office?

HT: Weekly Standard

Which Obama Are We To Believe?

- “We are in the worst financial crisis since the Great Depression" – Candidate Barack Obama, 10/07/08
- “The worse economic crisis since the Great Depression” – Candidate Barack Obama,10/30/08
- Obama called the financial crisis one of "historic proportions" – CNN, 11/24/08
- President Obama: A crisis “unlike any we have seen in our lifetime" – MSNBC, 1/13/09
- President Obama: Inaction will "turn a crisis into a catastrophe,” – NY Newsday, 2/9/09

- President Obama: Economic crisis “not as bad as we think.” – AP, 3/12/08

He may actually come to regret that last one.

Troubled Waters

Why should Barney Frank and Chris Dodd have all the fun? The Wall Street Journal this morning has published a story detailing the apparent conflict of interest of California Congresswoman Maxine Waters and the OneUnited Bank. Rep. Waters is a member of the House Financial Services Committee and a one-time shareholder of OneUnited Bank, a bank which recently received over $12 million in federal TARP money and one with which she still maintains close personal and financial ties.

While the article acknowledges that the relationship is nothing new – the representative has detailed her ties in disclosure forms – it does call into question the appropriateness of such a relationship during a time of financial crisis given the government’s continuing role as financial overlord. Waters’ Financial Services Committee oversees financial issues, and the representative is a (*shudders*) potential future chairperson.

Rep. Waters has been a vocal supporter of the minority-owned OneUnited Bank. Both she and her husband have held financial stakes in the bank – her husband still does, and was up until recently a director.

And while the bank has received numerous raves from community groups for its lending practices under the Community Reinvestment Act; OneUnited, like many of its competitors, has succumbed to the effects of the housing bubble. The bank had invested heavily in Freddie and Fannie, and had seen most of its assets wiped out last October. It was then that Rep. Waters stepped in and secured a meeting with Treasury officials. Shortly after, OneUnited received over $12 million in TARP money. Rep. Waters says she was unaware of the transaction, and added that OneUnited was “just a small” bank.

But a small bank with big friends nonetheless.

In October 2008, federal regulators ordered the bank to stop paying for a Porsche used by one of its executives and its chairman's $6.4 million beachfront home in Pacific Palisades, Calif., a luxury enclave between Malibu and Santa Monica.

What is the difference – propriety-wise – between the CEO of a major failed lending institution receiving a bonus, and the Porsche and $6.4 million beachfront home of “just a small” bank’s executive team being paid for by the shareholders and taxpayers?

And at the risk of poking the racial hornets nest, could someone please tell me what a "major white bank" is?

Separated At Birth? Part IV...

Kids in the Hall comedian Kevin McDonald, and...

Deer in the headlights Treasury Secretary Timothy Geithner?

Death By A Trillion Cuts

Not wanting to let a good crisis go to waste, congressional democrats are considering another stimulus package designed to stimulate the other stimulus package.

At meeting of the ironically-named Democratic Steering and Policy Committee, democrats heard from a variety of economists and policy wonks who convinced them that the surefire way to prosperity is to take the country deeper into debt.

“We have to keep the door open,” said House Speaker Nancy Pelosi, “the word of the day is confidence. Confidence in our markets, confidence in lending, confidence in our financial institutions.”

No Nan. The word of the day is “Weimar Republic”.

Biden's Math

The Weekly Standard highlights Vice President Joe Biden's continuing war with math:

“Well, let me just say -- and to paraphrase Secretary Holbrooke, our Special Envoy, and I agree with his assessment after numerous visits to the region and throughout the country -- 5 percent of the Taliban is incorrigible, not susceptible to anything other than being defeated. Another 25 percent or so are not quite sure, in my view, the intensity of their commitment to the insurgency. And roughly 70 percent are involved because of the money, because of them being -- getting paid.”

What's with Biden's fascination with 70%? This is one area that the Administration can't afford to be wrong 30% of the time...

UN: Stop, Iran. This Time We Mean It.

The United States has called upon the UN to take action (har!) after a Security Council Committee meeting found that Iran had violated current sanctions prohibiting the peaceful, nuclear-energy loving nation from exporting munitions.

The findings were based on an incident which took place on January 19 and 20 of this year, where the USS San Antonio boarded a cargo ship in the Red Sea bound for Syria and found several cartons containing munitions supplies, including three containers that were too heavy to move and still have yet to be searched.

Secretary Clinton is certainly going to have her hands full this year.

Gitmo Votech

Senior officials have identified the Taliban’s new operations officer in Afghanistan as one Abdullah Ghulam Rasoul. What is so remarkable about Rasoul? Well, for one, Rasoul’s CV includes a stint as prisoner No. 008 in the Guantanamo Bay Detention Center.

Yes, yes, I know – Rasoul’s detention in Gitmo has nothing to do with his current role. If anything, his unlawful incarceration there served only to awaken his dormant hatred for the West.

If President Obama follows through with his intention to close Gitmo and disperse its population among host countries, my fear is that these out of work bad guys will look to find employment in one of the few areas of the world that appears to be hiring people of Rasoul’s limited specialties – Afghanistan. And if these bad guys start killing our good guys, the President will have a lot of esplainin’ to do.

Freeman Out At NIC

President Obama’s pick to head the National Intelligence Council (NIC), Charles Freeman, abruptly withdrew his nomination yesterday after increasing criticism from members of Congress and officials within the intelligence community.

In his withdrawal notice, Freeman blames the Israeli Lobby for what he feels is a concerted effort of “dishonor and indecency, and include character assassination, selective misquotation, and the willful distortion of the record.” However, some on the other side of the argument would say that Freeman’s chumminess with the Saudis and the Chinese may have compromised his objectivity in such a sensitive post as the NIC. These relationships, and the recent report that he may also have accepted financing from these states, which is almost certainly frowned upon, or at least should be by the administration, appears to be what finally scuttled his nomination.

Obama And Signing Statements

Continuing a pattern of political doublespeak – trashing the policy of his predecessor while simultaneously signaling that he fully intends to maintain it – President Obama yesterday directed Attorney General Eric Holder to review George W. Bush’s signing statements before any of the President’s senior officials use the documents for guidance. Obama then said that he would employ his own version of the same policy – a policy criticized by his own party as a method of circumventing the law.

In his order, the President wrote that “constitutional signing statements should not be used to suggest that the president will disregard statutory requirements on the basis of policy disagreements.” But Obama adds that he reserves this privilege to address what he calls “constitutional concerns” in such legislation, and pledged that he would use restraint in writing his own signing statements. Ummhmm...

It appears to me that he’s adding judicial review to his job description.

Losing Our Religion

Results of the American Religious Identification Survey (ARIS) were released yesterday, with one of the most notable findings being that a growing percentage of the population feels no affinity for organized religion at all.

The survey, based on 113,000 interviews, also contained these findings:

- Geographies with traditionally strong Catholic pockets (New England, Rust Belt) have seen shifts, due to an influx of immigrants and the exodus (so to speak) of retirees and job seekers to the South;

- Baptists and Mainline Protestants have seen their ranks decline since 1990;

- Percentages of Jewish respondents decreased, while numbers for Muslims increased;

- Americans claiming no religion at all climbed from its 1990 figure to 15%, out-ranking Mainline Protestantism. Over a third of the respondents (34%) living in Vermont qualified themselves as “None” when asked the survey’s leading question – “What is your religious identity?”

The survey also suggests that the respondents who answered “None” are not necessarily atheist; it is simply that they have remained spiritual in some way but have chosen to disaffiliate themselves with an organized religion. When asked for his thoughts, ex-Catholic Dylan Rossi, a philosophy student from Boston says that he’s typical among his friends: “If the religion comes up, everyone at the table will start mocking it.”

That’s funny; that’s just what my friends and I do when the topic of philosophy students comes up.

Chinese Flex Maritime Muscle

The USNS mapping ship Impeccable was engaged by Chinese ships in waters in the South China Sea the other day, prompting protests of harassment by American diplomats.

The AP reports that the Navy ship is not, strictly speaking, a spying vessel. Its purpose is to map the ocean floor using sonar to help guide Navy submarines as well as track those of other nations. OK, let me see if I have everything...Navy vessel…tracking submarines…in the South China Sea, but not a spy ship – check.

The Chinese armada included a Navy spy ship of its own – sorry, ocean floor mapping ship, a Bureau of Maritime Fisheries Patrol Vessel, a State Oceanographic Administration patrol vessel and two trawlers. Navy officials say the Impeccable was forced to use its fire hose in self defense, after a Chinese craft came within 25 feet of it. Strangely, the Chinese responded to this act in kind by stripping down to their underwear.

Savages.

Recovery: What To Look For

An interesting piece from the economics blog, Calculated Risk. In previous recessions, housing has been the factor to lead us out of the downturn. However, indications are that this cycle will be different – Personal Consumption Expenditures (PCE) may be the factor to watch. And as households look to right their balance sheets, the CR doesn’t expect this measure to increase any time soon.

Tyson Defends Obamanomics

In this morning’s Wall Street Journal Opinion section, Berkeley professor Laura D’Andrea Tyson provides an impassioned defense of her boss’ economic plan. Tyson is a member of President Obama’s Economic Recovery Advisory Board.

The meat of her argument – Obama’s economic plan is consistent with his campaign pledges and his progressive vision. President Obama’s tax changes (letting the Bush tax cuts expire) will restore the marginal tax rates to their 1990 levels of 36% and 39.6%, for qualified single and married earners, respectively. Tyson argues that these changes will affect only the top 3% of taxpayers, a group she asserts “enjoyed the largest gains in income and wealth over the last decade.” I’ll concede her point here – but would add that there is more than likely a correlation between this group of taxpayers who enjoyed such benefit and the larger economy, which also enjoyed a fairly robust growth during the same period despite a tech bubble and two wars. If you raise the water level in one harbor, you need to dredge it from another.

Tyson also states that Obama’s proposal limits the deductions for dependents, charitable deductions and other expenses to 28%, and notes that the top rate for such deductions under Ronald Reagan, as if this somehow makes it better. But Tyson fails to mention that the only reason why the deduction was 28% under Reagan was because the top tax bracket was 28%, not 36% and 39.6% as they are today. Tyson chides critics of the president’s proposals for suggesting they might lead to class warfare, and reasons that they are “fair and reasonable” means of achieving universal health care coverage and moderating the growth of health care spending. This rhetoric of using tax policy as a means of achieving “fairness” rather than as a revenue generator is consistent with her boss’ vision.

Will it play to the Street? Wall Street, not Main Street that is – we’ll wait and see. So far, the markets have not reacted too kindly to Obama’s plans for the economy.

Neat Stuff

Cool short feature created by filmmaker Bruce Branit. The short "World Builder" is the story of a man who builds a holographic world for the woman he loves. Enjoy.



World Builder from Bruce Branit on Vimeo.

Sunday Funnies

A commercial for the new Nationalized Citibank:

The New F***ing Citibank - watch more funny videos

WARNING: Strong language, but very funny.

Hat tip: TigerHawk

The Times With Obama

This morning’s New York Times contains an interview conducted with President Obama aboard Air Force One as he traveled from Ohio to Andrews Air Force Base. The President opines on several issues, including his Afghanistan strategy and the economy.

On Afghanistan, the president indicated that he would pursue a policy of reconciliation with more moderate elements of the Taliban, similar to the roadmap implemented in Iraq by General Petraeus. You remember General Petraeus, don’t you? He’s the guy both Obama and his Secretary of State lambasted when he testified before their committee a year ago imploring Congress to give the Surge more time to work. “If you talk to General Petraeus, I think he would argue that part of the success in Iraq involved reaching out to people that we would consider to be Islamic fundamentalists, but who were willing to work with us because they had been completely alienated by the tactics of Al Qaeda in Iraq,” Mr. Obama said. I guess we should take comfort that the President now thinks our effort in Iraq was a success.

On the economy, the President says that he has no problem sleeping at night. Do you recall the public pasting Bush received when he said the same? And while Obama concedes that the economy more than likely will not begin growing again this year, Americans should not “stuff money in their mattresses.” Not yet anyway.

And how does the President respond to republican minority, critical of his deficit spending programs and far reaching policies? He asserts that his actions have been entirely consistent with free-market principles, and added that market intervention and expansion of social welfare programs began under President George W. Bush.

From deficit spending and enemy non-combatants, to rendition and Surges, how is it that a guy who spent the better part of his campaign railing against “eight years of failed policies” under George W. Bush now points to them as the basis of his own administration?

Worse yet, why is he not being called out for it?

The President And The Bobbysoxer

You know it’s getting bad out there when the guy wearing the “Obama 44” jersey begins to question his relationship.

Why is an administration which seemingly has no problem taking control of our health care system so reluctant to do so, even temporarily, with the nation’s ailing banking system?

Can Stem Cells Grow Republicans A Backbone?

President Obama has begun the arduous task of restoring science to its rightful place, and will sign an executive order reversing a previous Bush policy limiting federal funding for embryonic stem cell lines. Stephen Hayes over at the Weekly Standard rightfully calls him out on it. Why did the president wait until now to sign the order, reversing even himself when he said he preferred the legislative process to handle the matter?

I admired President Bush’s stance on this issue, and thought his decision carefully balanced science’s quest for knowledge with an ethical and moral responsibility to a culture of life. Did Bush’s order prevent stem cell research? No; in fact, it accelerated it. Research on adult stems cells continued unabated, culminating in recent breakthroughs and potential near-term therapies. And despite the public relations effort of the media and academia to the contrary, the promise of embryonic stems cells continues to be just that – a promise, never “settled science.”

So what’s the bottom line here? Money. The policy never prohibited access to these embryonic lines, just the use of federal funds in procuring them. Indeed, the article concedes that the inventory of embryonic stems cells continued despite the ban, fueled by private investors and venture capital – as it should. But Obama’s action now fills the slop trough with hundreds if not billions of dollars in free money for his friends in academia.

I’m reminded of Dan Ackroyd’s character Ray Stantz in the movie Ghostbusters (speaking to Dr. Peter Venkman): "Personally, I liked the university. They gave us money and facilities, we didn't have to produce anything! You've never been out of college! You don't know what it's like out there! I've worked in the private sector. They expect – results."

Bloomberg Not A Fan Of Obamanomics

New York City Mayor Michael Bloomberg has signaled that he is not yet caving in to the growing tax-the-wealthy choruses of city council and labor unions. Speaking during his weekly WOR radio address, Mayor Bloomberg said that tax the rich schemes ultimately backfire from their intended purpose. “We can tax the rich,” Bloomberg said, “except that, if you haven’t looked at the stock market lately, they aren’t making any money.” The mayor used his address to make the case that the wealthy are the ones who keep the gears of commerce turning, producing jobs and generating sales tax revenues for the city. “We want the rich people from around the country to move here,” Bloomberg said. “We love rich people.”

Union officials were unmoved. One labor activist accused Bloomberg of being “tone deaf,” while Union Federation of Teachers President Randi Weingarten said the issue was one of “fairness”. “The people who are still doing well should help the people who are not doing well – ultimately, that’s fundamental fairness.”

One person’s fundamental fairness is another’s socialism.

If you look at the linked article, check out the part where it reports that thousands of union workers rallied outside City Hall on Thursday to demand higher taxes on the wealthy to prevent cuts in government services. The drumbeats of class war are getting louder…

Я буду иметь орехи моего помощника в петле для этого!*

*Translation: I'll have my assistant's nuts in a sling for this!

The Ultimate Re-gift

The Powerline reports of the less-than-gracious reception of Britain’s Prime Minister Gordon Brown by the White House earlier this week. First, there was the matter of Obama’s return of Winston Churchill’s head a few weeks back; then, the recent ceremonial exchanging of gifts between the two leaders.

Prime Minister Brown presented Obama the following gifts:

- an ornamental desk pen holder made from the oak timbers of the Victorian HMS President;
- the framed commission of the HMS Resolute, the timbers of which form the basis of Obama’s Oval Office desk; and,
- a first edition set of the seven volume biography of Winston Churchill by Sir Martin Gilbert.

Considering President Obama’s penchant for history - not too shabby. How did Obama choose to return the kindness? He presented the Prime Minister with a box set of 25 classic American films on DVD – a classic example of re-gifting if ever there was one.

I certainly hope Obama remembered that US DVDs don’t necessarily play on European DVD players – that would really be embarrassing.

Update 3/19/09: *sigh* Obama didn't remember...

If I Could Turn Back Time…

The National Review is looking for a summer intern for its New York office. According to the notice, interested candidates should be entering their senior year in college, interested in National Review and its mission, and be serious about starting a career in journalism. The position comes with a modest stipend.

You mean they would actually pay me to work there?!

A Woman Scorned

Fellas, a cautionary tale – if you decide to engage in a little make-up lovin’, make sure she’s truly on board with it.

Authorities in Britain say a woman allegedly bit off her boyfriend’s tongue during a kiss, after complaining she wanted a baby and wasn’t pregnant. I guess he should be glad it was only his tongue...

Kyrgyzstan: No Base For You!

Lawmakers in the nation of Kyrgyzstan voted 80-1 yesterday to rescind an agreement with the US and eleven other nations to allow coalition forces to deploy at the Manas air base. The air base provides a vital transport link for troops and supplies engaged in the Afghan campaign. The Kyrgyz parliament denied reports that the $17.4 million rent paid by the coalition wasn’t enough to fund the purchase of additional vowels for the tiny impoverished country's name, requiring repeated use of the letter “y”.

Additionally, a spokesperson for Kyrgyzstan’s President, Kurmanbek Bakiyev, said that the base closure announcement had nothing to do with a recent Russian pledge of $2.15 billion in aid and loans. Sure it didn’t.

Is Health Care A Right?

As the Obama team huddles to consider health care reform, one of the first posts I wrote as temporary custodian to the Conservative Wahoo dealt with the continuing debate between the opposing forces as to whether health care was a right or a commodity. My own feeling is that we need consensus on this issue before we can address the others. Over at the National Review Online, Stephen Spruiell provides what I think a logical argument against health care as a right:

Health care is not a right, at least not according to the conception of rights upon which this country was founded. Your rights include life, liberty and the pursuit of happiness. You may not be unjustly deprived of these things. Your rights do not include things that I or anyone else must be forced to provide for you, such as a home, a car, a job, or health care.

It might or might not make sense for the government to help people obtain these things, but that's not the same thing as saying that we all have a right to them. It only takes a moment's thought to see why this is so. What is meant by people who say we all have a right to health care? Do they mean that we all have a right to any sort of treatment that modern medicine can provide, regardless of cost or necessity? Or do they mean that we all have a right to some basic level of care? If it's the latter, who decides where we will draw the line?

Take a heavy drinker who develops cirrhosis. He desperately needs a liver transplant in order to survive. But there is a shortage of available livers, and there are many other patients in need. Does he have a right to receive a life-saving transplant, or has he given up his right? Let's say he has, and we deny him a transplant, but there are still not enough livers to save the deserving patients. How do we decide among them without arbitrarily depriving some of their right to health care?

This is the problem we face when we shift from a negative to a positive conception of rights. We encounter shortages, we face tradeoffs, and at some point we have to make arbitrary decisions. When that happens — well, to quote William Munny, "Deserve's got nothing to do with it."

For some time now, the debate over how best to allocate scarce resources has been a settled matter. The market, with its system of price signals, is the most efficient way to direct resources to where they are most urgently needed. We need health-care reform that enables the market for health care to function more efficiently. Removing the distortion in the tax code that favors employer-based health insurance would be a good start.

The last thing we need is public policy based around the idea that health care is a "right" to which we are all entitled. We've seen the results when other countries have adopted such policies: shortages, rationed care, higher taxes and a less innovative health-care sector — in short, a state of affairs that infringes on everyone's right to pursue the best care he or she can obtain.

What do you think?

Gupta Out As Surgeon General

OK, now I’m officially worried. CNN’s medical correspondent Sanjay Gupta has also withdrawn his name from consideration as Obama's Surgeon General. Gupta has also cited “personal reasons”, adding that “this is more about my family and my surgical career.” Didn’t these people consider this impact before agreeing to the job?

But perhaps it is something more with the good doctor. Gupta was a vocal critic of Michael Moore’s film Sicko, a movie which in part extolled the virtues of socialized medicine. This departure would also seem to coincide with Obama’s health care summit, which is seeking input into the president’s plan to overhaul the health care system. Coincidence?

...And Then There Was None...

While there appears to be no shortage of jobs over at Treasury these days, retention is another issue entirely. Treasury Secretary Tim Geithner’s pick as chief deputy, Annette Nazareth, has withdrawn her name from consideration, citing those dreaded “personal reasons.” But please don’t take this the wrong way – it had nothing to do with vetting problems. Got it? Geithner’s choice for undersecretary of international affairs has also withdrawn her name from consideration, the Wall Street Journal is reporting. Do you notice a trend developing here?

What is most troubling to me here is that with over a month into his tenure, Geithner does not have a single top deputy or assistant secretary named to his team. So as the country attempts to weather one of the worst financial and economic storms in history, Geithner is acting as captain, first mate, navigator, chief cook and piss boy. Maybe this in part explains why Wall Street continues to tank – it has lost confidence in the administration’s ability and commitment to dealing with the problem. If Obama isn’t careful, the electorate will follow suit…

Chavez To Nationalize McDonald’s?

Don’t tell Latreasa Goodman that. Actually, the news is that Venezuela’s version of Snidley Whiplash, Hugo Chavez, has taken state control over his country’s food supply, setting production quotas and pricing for food staples.

This in response to rising inflation and dwindling oil revenues. Chavez has leveraged his socialist utopia on a $60 a barrel price of oil. Oil is currently trading at $40 a barrel. Uh oh.

How’s That Afghan Strategy Coming?

While Nan and Barack haggle over leaving 50,000 troops to Iraq, Rep. John Murtha has his own magic number for Afghanistan – 600,000.

Rush To Judgment

The Politico reports that the current demonization of Rush Limbaugh may actually be part of a concerted effort by democrat strategists to use the popular radio host to polarize the electorate against the republican minority in Congress. The plan was supposedly hatched last Fall after Limbaugh’s name tested unpopular with a large segment of younger voters.

The plan unfolded in January, when Limbaugh told his estimated 19 million listeners that he hoped the Obama presidency would fail, and culminated last week in Washington DC where Rush delivered what amounted to a pep talk at the annual Conservative Political Action Committee (CPAC) convention. Democrats immediately pounced on the opportunity - using the occasion to denounce Rush, and paint the conservative commentator as the unofficial spokesman for the GOP.

Republicans may have unwittingly played into the fiasco by first appearing to distance themselves from Rush, only to offer apologetic overtures toward him the next day.

The strategy is classic Carville – discourage dissent by marginalizing your enemies. Will it work? For now – yes. But if conditions continue to deteriorate, the administration will run out of political bad guys upon which to lay blame. And if this happens, people – more people – will begin to listen to Rush a little more closely. Who wins in all this – why, Rush of course.

Everyone appears to be weighing in on the whole “Rush as GOP puppetmaster”, so allow me my two cents. I listen to Rush Limbaugh, in addition to the roster of political talking heads who dominate the Philadelphia talk radio airwaves; including Glenn Beck, Hugh Hewitt, and Michael Medved. When Rush sticks to the issues, he is a compelling figure. When he drifts off into schtick, he is a bore. But at the end of the day, I take him for what he is – an entertainer. And he’s been doing so consistently, and to larger and larger audiences for over twenty years – a record unmatched by any liberal commentator in a similar medium. The fact that all of this attention is being paid to Rush Limbaugh indicates to me that the left considers him to be a threat, worthy of attempts at character assassination.

Does Rush Limbaugh speak for me, conservatism, or the GOP in general? No more than Michael Moore does for liberalism, despite similar effort by the right to link the bloated filmmaker to the Democrat Party .

But republicans do not help themselves with their deer-in-the-headlights reaction every time Limbaugh’s name is mentioned in the media. It’s understandable, given their status at the moment, but detrimental to their long-term rebuilding effort. Limbaugh fancies himself a kingmaker, but he’s no policymaker – something the GOP needs to keep reminding the media and themselves.

The Next Wave?

A worrisome piece from Bloomberg on a seldom talked about casualty of the financial meltdown: the hundreds of public pension funds that invested heavily in mortgage-backed securities.

Better get a bigger bucket, the bailout’s about to become a whole lot more expensive…

The Nuclear Option

Do you recall a few years back when republicans, then in the majority in Congress, had flirted briefly with the idea of a “nuclear option” to eliminate the filibuster for judicial nominations? Do you also recall the howls of protest from democrats that followed, and the righteous bloviating from the nation’s newspaper editors on how the nuclear option would gut long-established rules of Senate procedure (how conservative!), thereby eliminating sacred legislative checks and balances?

Well, it’s back. But this time the democrats are the ones with their fingers on the button.

And where’s the uproar from the Fourth Estate? cue the crickets…

Zombie Banks

A good opinion piece on FT.com by former Treasury Secretary James Baker on recommended steps the feds can take to prevent “zombie” banks, which hampered Japan’s efforts to recover from its real estate bubble in the 1990s.

The problem dogging the financial industry isn’t one of liquidity, it is insolvency. Baker’s solution, simplified – categorize banks into one of three categories: the healthy, the hopeless, and the needy. Leave the healthy alone, close the hopeless and reorganize and recapitalize the needy based on needs testing. Baker’s idea is akin to ripping the band-aid off at once, rather than slowly and potentially more painfully.

This idea is gaining more attention as ad hoc bailout solutions appear to be doing little good. The administration has shown interest in the healthy and the needy banks, but closing the hopeless appears to be off the table. For now.

Look For The Union Label

President Obama is said to be considering issuing executive orders to change the government contracting process in an effort to be more competitive. The policy changes are designed to save money by making federal contracts more accessible to independent and small contractors. The president is expected to announce these and other changes by the end of this week.

I’m hard pressed to see where this new “competitive” process will save money or encourage competition in the long run. For the president also has signaled that he intends to stop outsourcing to private contractors many services that should be performed by government employees. One of reasons why the federal government moved to private contractors in the first place was because of the inefficiency and waste of government employees.

Additionally, “independent” doesn’t necessarily translate to cheaper in Obama’s labor force. One of President Obama’s first acts in office back in January was the repeal of Executive Order 13202, signed by President George W. Bush, which prohibited federal agencies and recipients of federal funding from requiring contractors to sign union-only project labor agreements (PLAs) as a condition of performing work on federal and federally funded construction projects. Forcing small and independent contractors to agree to union wages and benefits will likely drive up project costs, while discriminating against those construction workers who opt not to join a union.

One of the oft-repeated refrains of the left during the Bush years was how the administration hijacked the system to reward their cronies at Halliburton and Big Oil. But I hear no similar caterwauls on how Obama is working the system to treat his organized labor buddies to some good old fashioned stimulus lard.

Arbeit Macht Frei

The new American Recovery and Reinvestment Act (ARRA) logo released today may not exactly inspire the masses of the proletariat as its designers envision. In fact, it appears to me a bit derivative of the O-shaped propaganda used during the campaign.

Judge for yourself:

But if you're really looking to transform the fabric of American society, nothing says "I won suckas" quite like this:

The Shoulders Of Giants

As A-Rod continues his dance of contriteness for his “experimentation” with steroids, it’s good to see stories like this to remind us that there are some pro athletes out there who view their fame and celebrity with responsibility.

John Elway sounds like a class act.

Hat tip: Yeah Right

Elections Matter

This has become the mantra for Bryan over at the Conservative Wahoo since Obama’s election last November. I can see no better application of his admonition than in the story featured in this morning’s New York Times concerning an advocacy group’s intention to file a federal suit challenging provisions of the Defense of Marriage Act, passed by Congress in 1996.

The group Gay and Lesbian Advocates and Defenders is seeking to force the federal government to extend federal benefits such as Social Security survivors’ payments, to spouses in same sex marriages in states where such unions are recognized by the state. The Defense of Marriage Act prohibits the federal government from recognizing same sex marriages, extending this prohibition to federal benefits.

This has less to do with extending such benefits, as the intended plaintiffs concede, and all to do with circumventing the will of the Legislative Branch. Because while Obama knows he doesn’t have the votes to specifically repeal this legislation, he does have the ability and the majority in Congress to appoint federal judges who may use their power of judicial review to “right” perceived social wrongs.

Elections matter.

The Price Of Hope

Greg Mankiw reports on the results of a new CBO analysis of the short- and long-term impacts of the recently enacted stimulus bill, or American Recovery and Reinvestment Act of 2009 (ARRA).

The conclusion of the CBO is, in short, that while ARRA may have a significant short term impact on GDP and employment using the more optimistic growth estimate, it will have little effect on the economy in the long-run:

On the employment side, the CBO estimates that the bill will create 1.2 to 3.3 million jobs by the end of 2010. However, this figure is expected to shrink to 0.3 to 0.7 million jobs by the end of 2012. Of this estimate, I wonder how many are due to the increase of the federal bureaucracy. Also, keep in mind that many of the administration's growth assumptions in its spending bill are based on the higher, more optimistic growth projections. It's good to see former Reagan employee Rosey Scenario now working for the Obama team.

Do you think this is a solid enough ROI on $787 billion? It is your money, after all...

The Dow Limbo...

How low can it go? World markets dropped lower this morning on news that the US Treasury was set to offer an additional $30 billion in loans to AIG, as the insurer is expected to announce later this morning of the biggest quarterly loss in its history of $60 billion.

I wouldn’t be at all surprised if the Dow closes at 6800 or so later this afternoon…

Let The Spin Begin

News this morning about President Obama’s decision to sign the budget despite potentially breaking a campaign pledge about earmarks is fairly unremarkable – he’s broken quite a few already.

But what is remarkable about this story are the comments from Obama’s advisers, Peter Orszag and Rahm Emanuel, further down in the article. “This is last year’s business,” said Orszag. “We just want to move on. Let’s get this bill done, get it into law and move forward.”

Emanuel was a little more direct as to whose feet the administration will be laying this before – “First, this is a $1.7 trillion deficit he inherited. Let's be clear about that. We inherited this deficit and we inherited $4 trillion of new debt," Emanuel said. “That is the facts.”

These comments would appear to signal a concerted PR effort among Obama’s advisers to paint the staggering budget deficits as a legacy of the Bush Administration to counteract republican efforts to draw attention to potentially damaging long-term effects of the deficit on the economy. An interesting strategy if they can pull it off.

But just how exactly does one inherit $4 trillion of new debt?

Analyze This

This story is appearing on every internet news outlet this morning, mostly for the headline appeal. Appearing on yesterday’s “Meet the Press”, Defense Secretary Robert Gates was asked by David Gregory to reflect on the differences between his current boss and his prior one.

“It’s hard to say,” Gates began. “I think President Obama is somewhat more analytical, and he makes sure he hears from everybody in the room on an issue, and if they don't speak up he calls on them.” This in contrast to President Bush, who didn’t go out of his way to elicit input, Gates added.

Obviously, this means President Obama is of superior intellect to George W. Bush, right? Not necessarily. All it means is that Obama’s management style may be more decision-by-consensus rather than a top-down approach, but that’s not what the headlines would lead one to conclude. In his memoir of his years as advisor to President Clinton, George Stephanopoulus wrote that Clinton’s “paralysis by analysis” was one of the more annoying traits of the former president. Stephanopoulos described several instances where President Clinton and his advisors would hole themselves up in the Oval Office for hours debating and crafting policy, only to have that policy directly contradicted the next morning after the president spoke with his wife prior to retiring for the night.

Management by consensus doesn’t mean you’re smarter, it just means you have more people to yell at if your decision goes awry.

Back Off Man, We're Actors

Thank goodness, Hollywood is on the case. The Academy of Motion Picture Arts and Sciences confirmed on Friday that a team of Hollywood actors has been dispatched to Iran on a “completely private initiative for educational and creative exchange, and with no political agenda.”

No political agenda? The fact that these self-serving imbeciles are even there is a political enough agenda.

A Parent Looks At 40

With apologies to Jimmy Buffett…

Some of you who read this blog with any frequency know that I was recently down in the Florida Keys for a little R&R. I’ve been to Florida several times as a child and adult, but don’t ever recall traveling down to the Keys. I was blown away by this area’s natural beauty. Florida in February sure beats Philadelphia in February, that’s for sure.

For part of the trip, I got to see how “old” money passes its time waiting for that Big Mahjong Game in the Sky. I stayed at a swanky, self-contained planned community known as the Ocean Reef Club. I didn’t see one car during my stay; didn’t need to – everyone traveled by golf cart. And not just any golf cart, mind you, but custom carts made to look like Benz’s, Bentley’s and Hummers. Everything you could ever want is pumped in for you – provided you have the means, of course.

Mrs. Goldwater then joined me later in the week for the second leg of the journey. I planned to pick her up in a shiny convertible on our way to cruise the streets of South Beach, her Ricardo Tubbs to my Sonny Crockett. However, in the eight minutes it took me to drive from the car rental place to the arrivals terminal at Miami International, my face and neck were visibly red with sunburn. After a liberal application of sun block (about as liberal as I get), we were finally off to the mean streets of South Beach. But in the twenty years since “Miami Vice” first aired, the means streets of South Beach have become more like the gay streets of South Beach. There was lots of shopping and restaurants, but not a lot of parking space. Oh well, at least the food was good.

The next day, we headed due South toward Key West. Key West is a beautiful town – similar in atmosphere and architecture to Charleston, SC. or even New Orleans. The lower part of Duval Street in Key West is like Bourbon Street without the vomit and urine smells – bar followed by tacky souvenir shop followed by bar. It must have been Spring Break, because every one of the bars was packed.

And I’ve got to admit, the sounds of laughter and fun emanating from these places called to me like a siren’s song. I wanted to slog up to Joe’s Place like Hemingway must have done years before me to embark on a bender to remember (or not). Mrs. Goldwater, on the other hand, wanted no part of it. “Honey,” she said in that sweet matronly tone I’ve heard her take a thousand times with the kids, “you’re 41 years old. We have to drive back to Key Largo in the dark. You pass out after two beers, and even when you were their age, you hated those places. Now, do you have to go pee before we take the guided tour?” And with that, I gathered the shards of my shattered ego and loaded them onto the tour bus with the other octogenarians. Sometimes that woman can be too honest.

Oh sure, overall the trip was great fun, but it could have been Hemingway fun…