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Author Archives: Craig

Unemployment Rises to 9.2%

08 Friday Jul 2011

Posted by Craig in Unemployment

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9.2%, austerity, belt tightening, New York Times, unemployment

From this morning’s New York Times:

“The United States economy added a meager 18,000 jobs in June, up from a gain of a revised 25,000 jobs in May, the Department of Labor said on Friday. The unemployment rate rose to 9.2 percent in June from 9.1 percent in May, the department said.

[…]

The report said that 14.1 million people were out of work in June, among them 6.3 million who have been jobless for six months or longer. In May, the total number of unemployed people was reported as 13.9 million, with the long-term unemployed at 6.2 million.

[…]

The Labor Department said that following gains that averaged 215,000 jobs per month from February through April, employment has been “essentially flat” for the past two months.”

By strange coincidence, right about the time that cutting spending, belt-tightening, and austerity became the order of the day. Couldn’t be any correlation between the two, could there? But never mind, it’ll have no influence whatsoever on the 2012 election. Fluffy said so.

Plouffe: “People Won’t Vote Based on the Unemployment Rate”

08 Friday Jul 2011

Posted by Craig in Politics

≈ 2 Comments

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2012, Bugs Bunny, David Plouffe, maroon, unemployment rate

It’s been a mystery to me why President Obama turned his focus away from job creation to all deficit reduction all the time. Mystery no more:

“President Obama’s senior political adviser David Plouffe said Wednesday that people won’t vote in 2012 based on the unemployment rate.

…“The average American does not view the economy through the prism of GDP or unemployment rates or even monthly jobs numbers,” Plouffe said, according to Bloomberg. “People won’t vote based on the unemployment rate, they’re going to vote based on: ‘How do I feel about my own situation? Do I believe the president makes decisions based on me and my family?’ ”

I asked my own senior adviser, Mr. B. Bunny for his reaction to Plouffe’s comments:

I concur, Bugs.

Obama Has Been Consistent on Social Security—He Wants to Cut It

08 Friday Jul 2011

Posted by Craig in Deficit, Obama, Politics, Social Security

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1997, Alan Simpson, cuts, debt ceiling talks, Debt Commission, Erskine bowles, Jay Carney, milk cow 300 million tits, Newt Gingrich, preserve, President Obama, privatization, Social Security, strengthen

After the news broke yesterday about President Obama putting Social Security cuts on the table in the debt ceiling talks, the White House immediately went into CYA mode:

“White House spokesman Jay Carney commented on the reports concerning Social Security cuts Thursday morning.

“There is no news here,” Carney said. “The President has always said that while social security is not a major driver of the deficit, we do need to strengthen the program and the President said in the State of the Union Address that he wanted to work with both parties to do so in a balanced way that preserves the promise of the program and doesn’t slash benefits.”

Carney is right about one thing, there is no news here. The president has been consistent in his plans to “strengthen” and “preserve” Social Security. Like appointing Alan Simpson and Erskine Bowles co-chairs of the so-called Debt Commission, which turned much of its focus to cutting strengthening Social Security by raising the retirement age (a benefit cut) and re-figuring the COLA (another cut). Never mind that SS has nothing to do with either the debt or the deficit. Simpson has made no secret of his contempt for Social Security and its recipients:

“I’ve made some plenty smart cracks about people on Social Security who milk it to the last degree. You know ’em too…We’ve reached a point now where it’s like a milk cow with 310 million tits!”

And it was Erskine Bowles who, while serving as Bill Clinton’s Chief of Staff in 1997, was in the process of negotiating a deal with then-Speaker Newt Gingrich which included the partial privatization of Social Security before the Monica Lewinsky scandal broke and blew (so to speak) that out of the water.

Nothing new to see here. Move along.

What Else is New? Republicans Threaten, Sir Robin Backs Down

06 Wednesday Jul 2011

Posted by Craig in Congress, Constitution, Democrats, Libya, Politics, Republicans

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authorization, basically fiddling, debt ceiling kabuki, Harry Reid, Libya, Republicans, resolution, Ron Johnson, Sense of the Senate

Republicans threaten to say mean things about Sir Robin Harry, so he backs down. As usual.

“Senate Majority Leader Harry Reid (D-Nev.) canceled a vote on legislation authorizing U.S. military action in Libya after facing pressure from GOP lawmakers, who warned they would vote the measure down in order to focus on budget matters.

[…]

Several Republicans complained about the Libya vote, noting Senate Democrats cited the debt crisis as the reason for canceling this week’s scheduled Independence Day holiday. Sen. Jeff Sessions (R-Ala.), for example, said he did not think it was worthwhile for the Senate to cancel its break if it did not deal with the nation’s financial crisis.

The discontent came to a head on Tuesday morning when Republican senators, led by Bob Corker (Tenn.) and Roger Wicker (Miss.), took to the floor to express their opposition to a vote on the measure.

[…]

“The Senate is basically fiddling while America goes bankrupt,” said Sen. Ron Johnson (R-Wis.).”

Good call. Ron. Whether or not a president can take us to war kinetic military action with out the consent of Congress is “basically fiddling” We don’t need no stinkin’ Constitution, we’ve got debt ceiling kabuki to focus on.

But there is time for meaningless, non-binding, “Sense of the Senate” resolutions, although I don’t see how you can put the words “sense” and “Senate” in the same sentence. Seems like a bit of an oxymoron to me.

Shared Sacrifice, 2011 Style

06 Wednesday Jul 2011

Posted by Craig in budget, Medicaid, Medicare, Obama

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$300 million, budget deficit negotiations, corporate jet owners, cuts, elderly, health care, Medicaid, Medicare, Obama administration, poverty, tax break

In light of this:

“Before Medicare was implemented—as a social-welfare program designed not just to deliver care but to poverty—one in five Americans lived below the poverty line. After the program was implemented, and after related “War on Poverty” initiatives were developed, that number was cut almost in half. Poverty among seniors dropped by two thirds.

Why? Before Medicare, millions of elderly Americans could not afford to buy healthcare. They did not have access even to basic care. When they needed treatment for the inevitable ailments that are associated with aging, they and their families spent down what meager savings that retained and a stumble into poverty soon followed.

Medicare broke the vicious cycle for the elderly, as Medicaid did for disabled Americans and their families. “For more than four decades, Medicare has kept millions of our senior citizens from living out their days in poverty,” explains one of the program’s steadiest champions, Congresswoman Tammy Baldwin, D-Wisconsin.

Medicare continues to serve the purpose for which it was created. Indeed, so much good continues to come of this program—and of Medicaid—that it is difficult to imagine why anyone would seek to dismantle the program.”

What the hell is up with this?

“Obama administration officials are offering to cut tens of billions of dollars from Medicare and Medicaid in negotiations to reduce the federal budget deficit, but the depth of the cuts depends on whether Republicans are willing to accept any increases in tax revenues.

Administration officials and Republican negotiators say the money can be taken from health care providers like hospitals and nursing homes without directly imposing new costs on needy beneficiaries or radically restructuring either program.”

Yeah, right. Now tell me the one about Goldilocks and the bears.

“Before the talks led by Vice President Joseph R. Biden Jr. broke off 12 days ago, negotiators said, they had reached substantial agreement on many cuts in the growth of Medicare, which provides care to people 65 and older, and Medicaid, which covers lower-income people. Those proposals are still on the table when Congress reconvenes this week, aides said, and are serious options that Democrats could accept in exchange for Republican concessions that raise revenues.”

So in exchange for tens of billions of cuts to Medicare and Medicaid Republicans might “concede” on the much over-hyped tax break for corporate jet owners, which amounts to a whopping $300 million a year.

Shared sacrifice, 2011 style.

The Real Victims of Austerity

06 Wednesday Jul 2011

Posted by Craig in Politics, Unemployment

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budget, Florida, Medicare fraud, Rick Scott, state employees, unemployment

Those who can least afford it:

“Millions of Floridians head back to work Tuesday after a restful three-day Fourth of July weekend. But Toni Gugliotta won’t be among them. She’ll be applying for $275 a week in unemployment benefits instead. The Pinellas County woman is among 1,300 state employees put out of work by the new budget approved by the Legislature and signed into law by Gov. Rick Scott on May 26.

Scott kept his promise to reduce the size of the state government bureaucracy. But he did so at the expense of real people with mortgages, healthcare bills, college tuition payments and credit card payments. Many of them earned less than $30,000 a year after years of state employment.

To them, the Scott mantra “Let’s get to work” rings hollow. They now join the hordes of Floridians looking for work in a state with an unemployment rate that, while declining, remains in double digits at 10.6 percent.

The state agencies that took the biggest hits are the Department of Juvenile Justice and the Department of Children and Families, which together account for most of the layoffs.”

Nice job, Florida. Elect another Medicare fraud artist as governor.

Army’s $2.7 Billion Computing System Doesn’t Work

06 Wednesday Jul 2011

Posted by Craig in Afghanistan, budget, Iraq, Pentagon

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$2.7 billion, Army, computing system, DCGS-A, Department of Defense, Obama, wasteful programs

By all means, let’s keep increasing the Defense budget, especially when it’s spent so wisely and effectively:

“The Army’s $2.7 billion computing system designed to share real-time intelligence with troops fighting in Afghanistan and Iraq has hurt, rather than helped, efforts to fight insurgents because it doesn’t work properly, several analysts who have used the system say.

The analysts’ comments mirror concerns raised by the top military intelligence officer in Afghanistan and members of Congress over the past two years in an unsuccessful bid to get the Army to consider alternatives to its portion of the military’s Distributed Common Ground System, according to documents obtained by POLITICO.

…[A]nalysts say DCGS-A was unable to perform simple analytical tasks. The system’s search tool made finding the reports difficult, and the software used to map the information was not compatible with the search software.

“You couldn’t share the data,” said one former Army intelligence officer who worked in Afghanistan and Iraq.

There were also problems with the hardware, with the system being prone to crashes and frequently going off-line, he and another former Army intelligence officer now working as a contractor in Afghanistan said.

“The laptops are turned on, but it doesn’t work,” the second former officer said. “There’s a lot of bugs in the workflow.”

What happened to this?

“President Barack Obama asked Congress to approve a record $708 billion in defense spending for fiscal 2011, but vowed to continue his drive to eliminate unnecessary, wasteful weapons programs.”

…”Even though the Department of Defense is exempt from the budget freeze, it’s not exempt from budget common sense,” Obama told reporters at the White House.”

The Deficit Reduction Dog and Pony Show, Cont’d

05 Tuesday Jul 2011

Posted by Craig in Deficit, economy, Obama, Politics, Taxes

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Bush tax cuts, corporate jets, deficit, dog and pony show, hedge fund managers, president, press conference

Further proof that the deficit reduction talk in DC is just a dog and pony show:

“In a Wednesday news conference, the president especially pounded a depreciation provision for corporate jets, mentioning it six times.

“I think it’s only fair to ask an oil company or a corporate jet owner that has done so well to give up that tax break that no other business enjoys,” Obama said. “I don’t think that’s real radical. I think the majority of Americans agree with that.”

But as it turns out, ending the jet tax break would only save around $3 billion over a decade, while rolling back tax expenditures for oil-and-gas would bring in roughly $21 billion and a proposal aimed at hedge fund managers would collect some $15 billion over that same time span.

According to estimates from last year, ending the Bush tax cuts for income over $250,000 for couples would have brought an extra $700 billion into the Treasury.”

If they were serous about reducing the deficit they would, as Willie Sutton once said, go where the money is. But where the money is is also where the large campaign contributions is, so that ends that.

R.I.P. Social Security

05 Tuesday Jul 2011

Posted by Craig in Congress, Democrats, Obama, Social Security

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Clyburn, Doggett, extension, FDR, holiday, Larson, Obama, payroll tax, Social Security

FDR didn’t foresee what would become of his party:

“We put those payroll contributions there so as to give the contributors a legal, moral, and political right to collect their pensions and their unemployment benefits. With those taxes in there, no damn politician can ever scrap my social security program.'”

Which is what’s happening now. Social Security is being de-funded:

“Despite warnings it will undermine Social Security, House Democratic leaders are lining up behind a White House proposal to extend a payroll-tax cut beyond this year.

Reps. James Clyburn (D-S.C.) and John Larson (D-Conn.) both announced Friday that they’ll throw their weight behind the extended payroll-tax holiday, which President Obama and some leading Senate Democrats are prescribing as an economic stimulant.

[…]

A number of liberal Democrats had fought the initial tax cut, noting that the payroll tax is the sole funding stream for Social Security, which is already paying out more than it’s taking in. Behind Rep. Lloyd Doggett (D-Texas), the lawmakers are now continuing that campaign in the face of a proposed extension.

Earlier this month, Doggett, Ted Deutch (Fla.) and Mark Critz (Pa.) urged their Democratic colleagues to oppose any additional payroll-tax breaks. The lawmakers warned that such measures threaten Social Security’s ability to pay future benefits and defy the initial design of the program.”

But there’s no sense in just eliminating part of the funding mechanism for Social Security. If you’re gonna do it, might as well do it right:

“The existing tax holiday applies only to workers, but Obama has also floated the idea of extending it to employers as well.”

“Grand Delusion” in Afghanistan

04 Monday Jul 2011

Posted by Craig in Afghanistan

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Afghanistan, grand delusion, Inter-Continental Hotel, Kabul, Obama, Pakistan, phillyburbs.com, receding, Taliban, troop drawdown, war

From phillyBurbs.com:

“President Obama has announced the long-awaited drawdown of U.S. troops from Afghanistan will begin next month. The president told a national TV audience last week that 10,000 troops will be brought home by the end of the year, and that by next summer, 33,000 personnel will have been withdrawn.

Obama told the nation: “The tide of war is receding.”

Apparently, Afghan insurgents haven’t gotten the message.

No less than the luxury Inter-Continental Hotel in Kabul, the capital of Afghanistan, came under siege by militants this week, and by the time the siege ended a day later, 20 people were dead. Among the slain were nine suicide attackers and 11 civilians.

This latest slaughter didn’t take place in some rural area of the country where security has never been demonstrated. These killings occurred in the capital city, supposedly a safe haven. The truth is, there’s no such thing as a safe haven in this landlocked piece of treacherous real estate, even after nearly 10 years of U.S. involvement.

It is here that the Afghan army and police are expected to gradually assume responsibility for securing people and property as the U.S. reduces its military presence over the next three years.

That’s a grand delusion.

This was hardly what the United States bargained for when this adventure began a decade ago. The war was launched in response to the attacks of Sept. 11. The objectives then were to get Osama bin Laden, destroy his al-Qaida terrorist network and replace the hated Taliban with a democratic form of government. Bin Laden just recently was neutralized … in neighboring Pakistan. Al-Qaida apparently has shifted its base of operations elsewhere, probably Yemen. The Taliban, meanwhile, remain a formidable force in a country that historically has defied stable, central government. Great Britain and the former Soviet Union learned only too well the folly of military involvement here. It’s curious how the United States government ever concluded that it could effect a different outcome.

We believe withdrawal of U.S. forces from Afghanistan is the correct strategy going forward. It should be accelerated beyond what the president has outlined, because even after the withdrawals over the next year, some 70,000 U.S. troops will remain. The bleeding must be stopped and quickly, because it is bleeding without a purpose. Nothing short of a miracle — not more casualties, not more billions — will produce a lasting, positive outcome in Afghanistan.

The evidence suggests no other conclusion.”

Amen.

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