Day: December 5, 2008

Please, Take My Call

On Wednesday, the Republican congresswoman got a call from President-elect Barack Obama, didn’t believe it was him, and hung up on him. Twice.

According to Ros-Lehtinen’s flack Alex Cruz, the congresswoman received the call on her cell phone from a Chicago-based number and an aide informed her that Obama wanted to speak to her. When Obama introduced himself, Ros-Lehtinen cut him off and said, “I’m sorry but I think this is a joke from one of the South Florida radio stations known for these pranks.” Then she hung up.

Moments later, Obama tried again, this time through his soon-to-be chief of staff, Rahm Emanuel.

“Ileana, I cannot believe you hung up on the President-Elect,” Emanuel said. And then–yes, you know what’s coming–she hung up on Emanuel saying she “didn’t believe the call was legitimate.”

A short time later, Ros-Lehtinen received an urgent call from Rep. Howard Berman (D-Calif.), the chairman of the Foreign Affairs Committee, who informed her that she indeed hung up on Obama.

So, Obama tried again and this time he was successful.

See the art of Punking can have its side effects…….

A New Health Debate

Sharpening the emerging debate over how to reshape the country’s healthcare system, the major group representing insurers unveiled a proposal Wednesday for covering all Americans in a more centralized insurance market.

The plan offered by America’s Health Insurance Plans, a trade group representing companies that together insure more than 200 million people, comes a decade and half after the industry helped kill the last major healthcare reform campaign — pushed early in the Clinton administration.

The proposal for a form of universal insurance coverage reflects the intensifying interest among groups like insurers, businesses and healthcare providers in having an active role in shaping the reform effort.

AHIP would require all Americans to get coverage, a new mandate that Obama rejected during the presidential campaign.

In exchange for such a mandate, insurers would agree to longtime demands from consumer advocates that they no longer reject people with preexisting medical conditions.

The group is urging Congress to set up an advisory organization to identify ways to cut the increase in healthcare costs by 30% over the next five years.

Potentially most controversial, however, is the insurance industry’s call for a new “portable health plan” that would not be subject to the minimum coverage standards set by individual states.

Many states require insurers to cover myriad services such as cancer screenings and obstetric care. Some also guarantee patients the right to an independent medical review if an insurer denies coverage.

These guys are trying to head the health care debate off at the pass and I will bet the the Repubs will be all over this plan, sounds like a plan that Conservs can support, but does little to help people and their healthcare problems.  It will only help the Insurance companies retain their obscene profits with little benefit outlay.

The Beast Of Washington

The Department of Homeland Security was born in the US government‘s greatest reorganization since World War II after the September 11 attacks of 2001 made the threat of terrorism very real.

It now encompasses 22 separate agencies from customs, immigration and border security to disaster relief and the Secret Service.

Homeland Security is the first line of defense against a repeat of 9/11 and stands on the front lines of the emotive controversy over illegal immigration — an area of expertise for Napolitano from her time in charge of border-state Arizona.

With 200,000 employees and an annual budget of more than 50 billion dollars, homeland security is the US government’s third-biggest department after the Pentagon and Veterans Affairs.

The White House’s DHS funding requests this year included 442 million dollars to hire 2,200 new border patrol agents for the southern frontier with Mexico, and 334 million to guard against nuclear terrorism.

But the department’s opaque spending has been criticized in a series of reports by the non-partisan investigative arm of Congress, the Government Accountability Office.

Maybe Obama and his team can sure up and lighten the load on DHS.  How about a name change to Civil Defense or something not as fascist sounding as “Homeland”.  It conjures up visions of guys dressed in black with tommy guns asking for your papers….wait!….that is wjat is happening…my bad….

The Truth Is Out There

From CNN Money:

“Overall economic activity weakened across all Federal Reserve districts,” the Fed said Wednesday in the December edition of its Beige Book, a report on current economic conditions.

While the weakness was widespread, the St. Louis district, which encompasses Littlerock, Ark., Louisville, Ky. and Memphis, Tenn., showed slight improvements in commercial real estate and labor.

Among the main drivers were a deterioration in vehicle sales, weak consumer spending, further contraction of lending and a noticeable decline in manufacturing activity.

The report said retailers are preparing for a “relatively slow holiday sales season,” as consumers shy away from big-ticket purchases amid the weak economy.

Falling home prices took a toll on real estate markets in most districts. But weak home sales remained at stable levels, according to the report.

Credit conditions remain tight, with several districts reporting increases in loan delinquencies and defaults, “especially in the real estate sector,” the report said.

Commercial real estate weakened broadly, worsening from declines reported in October’s Beige Book. Half of the 12 districts indicated that commercial real estate projects were being postponed or canceled, citing tight credit conditions.

Labor market conditions remained weak, with nearly half of the districts reporting current and future layoffs.

JUst thought you would like to know the truth….just in case your on air person is still painting a rosy pic of the economy.

To Break A Union

Many critics of the auto industry argue that bankruptcy is the best choice for the Big Three. A bankruptcy judge has broad powers to let the automakers shed their debts and other obligations, as well as get out of labor contracts that they can no longer afford.

Other industries, including steel and airlines, have used bankruptcies to emerge financially healthy.

There are also questions about whether the automakers could get the financing they need to operate under bankruptcy court. Many lenders that have loaned to bankrupt companies in the past have exited the field in the wake of the credit crunch. And experts question whether the crucial source of funds needed to emerge from bankruptcy would be available to the automakers

Let us be realistic…..the debate on whether to save Detroit or not, is more about breaking the UAW than it is anything else.  The Repubs and their talking heads have for years blamed everything  that has gone wrong on the union and that  thinking has not changed, even after the massive concessions that were given in the last couple of contracts that have been signed.

For decades the Repubs have tried to break all unions as best as they could, look at Reagan and his destruction opf PATCO.  That is why they are firmly behind the bankruptcy thing, it would neutralize the unions and make it easier to br4eak it completely.

The Conserv talking heads refuse to call it what it is–class warfare.  Just look at the bailout of Wall St., did those guys get put thruough the grinder like the auto companies?  I will give you a moment for thought.  The answer is NO!  In case you missed it.

This , if it is successful will give the Repubs the tools for the breaking of ALL unions.  And that will truly be class warfare….corporations will profit, workers will struggle.

What To Spend The Money On

President-elect Obama’s announced intention to create 2.5 million jobs through a recovery package focuses on infrastructure investment, aid to states, and tax cuts targeted at working families. Though the Obama team has not discussed the cost of such a package, it clearly has to be both large enough and long enough to offset the deepening problems noted above. At this point, a two-year plan costing more than $300 billion is necessary. How much more depends on the length and the depth of the ongoing downturn. Some economists and policy makers have suggested the need for investments of up to $700 billion.1

In the interest of getting the biggest bang for the buck in terms of job growth, the package should focus less on tax cuts, which tend to have smaller multiplier effects and more on direct spending. We recommend the following:

  • Aid to states. In an economic downturn, state and local governments are forced to cut services, increase taxes, or both. Such changes would make the recession both deeper and longer. A survey of state governments indicates that shortfalls will reach $72 billion in 2009,2 and the outlook for 2010 is no brighter.
  • Infrastructure spending. Rebuilding our national roads, bridges, schools, and water systems should be a high priority. By focusing on repair and “ready-to-go” projects, we can create new jobs now while investing in the economy’s future. Several areas of investment have already been identified as ready-to-go:
    • Ongoing transit projects: 246 projects totaling more than $3.6 billion could be implemented within 90 days of federal funding (American Public Transportation Association).
    • New transit projects: Approximately 400 projects totaling $248 billion are proposed, with 58 of those—totaling $25.2 billion—far along in the planning process. Most of the 58 projects have already completed the environmental review process and could be started within 4 months to a year (Reconnecting America).
    • Highway: 3,000 projects totaling $18 billion are ready and waiting for financing (American Association of State and Highway Transit Officials).
    • Bicycle/pedestrian projects: $325 million in ready-to-go projects have been identified (America Bikes).
    • Fleet Greening: $3.9 billion could be spent quickly for clean vehicles and retrofitting existing vehicles with green technology (Transportation for America).
    • Wastewater treatment projects: $4 billion in ready-to-go projects have been identified (National Association of Clean Water Agencies).
    • School repair and maintenance: $10 billion could be spent this summer (Economic Policy Institute).
  • Assistance to those hardest hit by the recession. Congress has already worked to extend unemployment benefits to many people who have lost their jobs. Expansion of food benefits would also help stimulate the economy by providing additional purchasing power to those most likely to spend it quickly.

Down payment on long-term reforms. Moving the economy to a low-carbon platform will require extensive investments in energy efficiency and alternative fuel production. Investing today will both create jobs and secure our nation’s energy future.

If there is to be a new stimulus package then let it do more than prop up Wall Street and the CEO’s ridiculous salaries.

Redistribution?

If you guys remember the past, and it seems so damn long ago, a lot of crap was slung at Obama and his promises, that they were socialism and redistribution of wealth and other such moronic accusations.  I am sure that you like me are still receiving the damn emails.

But wait!  Take a few moments to think back to the past 8 years, yes I am talking about the Bush years.

(Pause for reflection)

Do you recall the Bush tax cuts from his early days in office?  If you are of the middle class and work for a living, did you reap any benefits from those tax cuts?  Most likely not, but I could be mistaken.  The tax cuts that I am speaking of, that were passed and signed by Mr. Bush basically took money from the working class and the middle class and gave it to the wealthy.  Now, no matter how you want to cut that bit of info, it was a redistribution of wealth.

Was that not what Obama was being accused of by Repub pundits?

Sorry I was momentarily taken off topic–my apologies.

Redistribution?  I deep subject with meanings that only the ruffled economist can understand, but if the redistribution, an equal redistribution, is what you seek then there is no better vehicle than the Land Value Tax (LVT).

copyright:  CHUQ/Info Ink