white-house-

menafn.com…

(MENAFN – Kuwait News Agency (KUNA)) President Barack Obama spoke with German Chancellor Angela Merkel late Saturday for consultations over the global economic crisis, the White House said late …

Original post:
Obama, Merkel consult on global economic crisis

Find our Weekly Commercial Real Estate, Private Equity and Fund Newsletters at www.WeeklyBrief.net

{ 0 comments }

menafn.com…

(MENAFN – Saudi Press Agency) The deal struck earlier this month to cut deficits and avert a U.S. debt default has helped brighten the countrys fiscal outlook, the White House said on …

See the article here:
US- congressional budget report shows fiscal improvement

Find our Weekly Commercial Real Estate, Private Equity and Fund Newsletters at www.WeeklyBrief.net

{ 0 comments }

White House announces plan to save small businesses

August 25, 2011

(MENAFN – Saudi Press Agency) The White House on Tuesday announced a plan to save job-creating small businesses $10 billion dollars over five years through streamlined regulations and reductions in …

Read the full article →

Jerry Jasinowski: Simpson-Bowles Revisited

July 15, 2011

President Kennedy used to tell the story of the Chinese leader who said, “Look, there go my people. I must find out where they are going so I can lead them.” It is easy enough to lament the lack of leadership in the present crisis, but leaders can lead only when they have followers. President Obama made a good speech last week calling for a compromise solution to reduce the deficit, including reductions in Social Security and Medicare spending. Speaker of the House John Boehner responded in a thoughtful and balanced way. For a moment there, they seemed like President Reagan and former Speaker of the House Thomas “Tip” O’Neill putting aside their differences to do what was best for the country. But Obama and Speaker Boehner quickly discovered they were out there all alone. President Obama’s constituency remains opposed to any significant reduction in entitlement programs, and Boehner’s is equally opposed to tax increases. As the drop dead date for default draws closer, a solution is slipping further away. The suggestion by Senate Majority Leader Mitch McConnell to simply allow President Obama to raise the debt limit was dead on arrival. Obama’s big mistake was not embracing the recommendations of the Simpson-Bowles report last December. Had he got behind his own commission then, he might have been able to build up some momentum for dramatic action now. But the moment for dramatic reform like the President’s $4 trillion budget reduction scheme has passed. Positions have hardened. The best we can hope for now is a much more modest plan to get us past the present crisis and – yes — kick the real issue down the road a bit further. But not much further. We should pursue the approach used to close military bases back in 1988. It was a volatile issue. All senators and congressmen defended their military bases. A bipartisan commission recommended closure of a significant number of military bases that it deemed unnecessary, and Congress was forbidden to dicker with the choices. Congress could have voted the plan down with a two-thirds vote, but was unable to do that. The bases were closed, saving billions. Similarly, the President and congressional leaders should cherry pick some significant spending cuts from the Biden efforts, including defense and some entitlement programs, and enact them along with an increase in the debt limit. To address the longer term, more controversial spending and tax issues, this legislation should also include a new Simpson Bowles Commission, comprised much like the previous one, charged to develop a similar package of recommendations, but giving them some teeth. Like the base closing plan, Congress would need a two-thirds vote to overturn the commission’s recommendations. The three-to-one ratio of spending cuts to revenue increases reflected in current budget negotiations should be the guiding principle. Of course, partisans of left and right will howl, but that is all right. Howling makes them feel better and is good for the lungs. We have to do something, and given the impasse we have right now, this is a sensible two-step plan to get the country back to fiscal health. Jerry Jasinowski, an economist and author, served as President of the National Association of Manufacturers for 14 years and later The Manufacturing Institute.

Read the full article →

Obama Announces Plans To Cut Government Waste

June 13, 2011

WASHINGTON — President Barack Obama is announcing new steps on Monday to reduce government waste, arguing that inefficiency, fraud and abuse are especially troubling during tough economic times. Obama was to sign an executive order creating the Campaign to Cut Government Waste. According to a draft of the order obtained by The Associated Press, Obama will call for a new oversight board to work with federal agencies to cut back on waste and improve their performance. The order also requires cabinet secretaries to hold regular meetings with Vice President Joe Biden to report progress. Monday’s announcement comes as the White House grapples for ways to both boost sluggish economic growth and quell public anger over the mounting deficit. “As we work to tackle the budget deficit, we need to step up our game,” Obama says in a video message released on Monday. “No amount of waste is acceptable — not when it’s your money; not at a time when so many families are already cutting back.” Biden and other administration officials were to discuss plans to cut back on waste In prepared remarks for Monday’s event, budget director Jacob Lew said wasting taxpayer dollars through inefficiency “is particularly offensive at a time of such fiscal challenges.” One of the campaign’s first steps will be targeting waste and duplication among federal websites. The administration will halt the creation of new websites, as well as shut down or consolidate one-fourth of the 2,000 government websites in the next few months.

Read the full article →

Top Obama Economic Adviser To Resign

June 7, 2011

WASHINGTON — Austan Goolsbee, a longtime adviser to President Barack Obama, will resign his post as the chairman of the Council of Economic Advisers this summer to return to teaching at the University of Chicago Graduate School of Business, the White House announced Monday. Obama called him “one of America’s great economic thinkers.” Goolsbee has been the face of the White House on economic news, and is a regular every first Friday of the month explaining the administration’s take on the latest jobless numbers. He brought a mix of levity and a teacher’s sensibility to the job, using the White House blog, Facebook or YouTube to illustrate tax cuts, trade, or the auto industry resurgence on a dry-erase board with a dry wit and a gravel voice. He has been at Obama’s side for years. He advised Obama during his 2004 Senate race and was senior economic policy adviser during the 2008 presidential campaign and has served on the three-member economic council since the start of the administration. “Since I first ran for the U.S. Senate, Austan has been a close friend and one of my most trusted advisers,” Obama said. “Over the past several years, he has helped steer our country out of the worst economic crisis since the Great Depression, and although there is still much work ahead, his insights and counsel have helped lead us toward an economy that is growing and creating millions of jobs.” Goolsbee took over last September as council chairman, replacing Christina Romer, who left to return to a teaching position at the University of California, Berkley. He had taught at the University of Chicago for 14 years. His university biography once described him as “insanely committed to his work,” noting that Goolsbee was seen in the classroom, wearing a tuxedo, on the day of his wedding.

Read the full article →

To Keep His Job, Obama Needs More Jobs

June 4, 2011

WASHINGTON — President Barack Obama cannot escape one giant vulnerability as he bids to keep his job: Millions of voters still don’t have one. Suddenly, the snapshot of the American economy is depressing again. Job creation is down. So is consumer confidence. And homes sales, auto sales, construction spending, manufacturing expansion. The brutal month of May was a reminder of the economy’s fragility and the risks for an incumbent president. Nothing that Obama oversees, not even a success as dramatic as finding and killing Osama bin Laden, will matter as much as his handling of the economy. It is the dominant driver of voter behavior. People hold their president accountable if they can’t find work in the richest country in the world. The weakening recovery is testing the entire foundation of Obama’s optimistic economic message, that the nation is getting stronger all the time. As much as the White House says it never dwells on any single jobs report, and Obama never even mentioned the troubling one released Friday, the stakes get higher by the month. A finally forming field of Republican presidential competitors is maneuvering into the space for the public’s attention with this message: Obama has failed. Election Day 2012 is 17 months away, and Obama’s campaign knows incremental job growth won’t do. The unemployment rate is 9.1 percent. If it stays anywhere near there, Obama will face re-election with a higher jobless rate than any other post-war president. In his favor, Obama still has the loudest voice to sell his message that the longer term trends, including job growth every month, are good. Nearly halfway through a year dominated by foreign events mostly outside his control, he plans to build his next few months around economic events. So what comes next will be a summer when both sides select the economic facts that best suit their case. It will play against a backdrop of trying to cut a massive deficit while letting the nation borrow more so it doesn’t default. As Obama pushes his economic agenda, his re-election chances bank on more than job growth. They also depend on how well he can remind people that he inherited a recession and that compared with the early days of 2009, the country is in a better place. “This economy took a big hit,” Obama said Friday in Ohio, a pivotal 2012 state. “You know, it’s just like if you had a bad illness, if you got hit by a truck, it’s going to take a while for you to mend. And that’s what’s happened to our economy. It’s taking a while to mend.” Is progress enough to convince people that he deserves a second term? If so, he can’t afford many setbacks like the new jobs report. Employers in May added just 54,000 jobs, the fewest in eight months. Almost 14 million people are jobless. Analysts suggested the economy could improve this year, but the recovery could be weak for months. “There are always going to be bumps on the road to recovery,” Obama said. The Republicans hoping to unseat him pounced. _Former Massachusetts Gov. Mitt Romney: “President Obama has failed to pull us out of this economic downturn. _Former Minnesota Gov. Tim Pawlenty: “Obama’s failure to address the tough challenges” is clear. _Former House Speaker Newt Gingrich: “The administration’s policies are failing.” Obama’s political tendency is to take the longer view. An Associated Press-GfK poll less than a month ago, for example, showed rising public optimism about the economy and his stewardship. The election won’t be just a referendum on Obama and the unemployment rate. It also will offer a choice between his economic ideas and his opponent’s. Still, just as change worked for him last time, it can be used against him in 2012. Even 8 percent unemployment, a goal once promoted by the administration, is hard to see now. Presidents Jimmy Carter, Reagan and George H.W. Bush all faced unemployment rates higher than 7.5 percent in the final months of their re-election campaigns. Reagan won, and an important factor for him was that the jobless rate was declining at the time. Carter and Bush lost. Obama, for now, has no reason to engage the politicians trying to win his job. He instead presents himself as the workers’ champion who risked his own capital and their money in a successful bid to help Chrysler and General Motors survive and return to profitability. “I’ll tell you what. I’m going to keep betting on you,” Obama told workers at a Chrysler plant in Toledo, Ohio. And hope they’ll do the same for him. __ EDITOR’S NOTE – White House Correspondent Ben Feller has covered the Bush and Obama presidencies for The Associated Press.

Read the full article →

Obama Distances Himself From New Economic Sputters

June 4, 2011

WASHINGTON — Distancing himself from new economic sputters, President Barack Obama on Saturday declared that recent “headwinds” were the result of high gasoline prices, Japan’s disastrous earthquake and jitters over a European fiscal crisis. He cited the U.S. auto industry’s resurgence as an inspiration for a broader recovery. “We’re a people who don’t give up, who do big things, who shape our own destiny,” the president said in his weekly radio and Internet address . The message was taped Friday during Obama’s visit to a Chrysler plant in Toledo, Ohio. And the address was hardly different than the remarks he offered to about 350 Chrysler workers. The White House has spent practically every day this week drawing attention to the industry comeback and taking credit for Obama’s unpopular decision to bail out Chrysler and General Motors and guide them through bankruptcy in 2009. Like Friday’s comments to Chrysler workers, Obama’s address Saturday did not mention the bleak unemployment numbers announced Friday for the month of May. The Bureau of Labor Statistics said the economy last month created only a net 54,000 jobs and unemployment inched up to 9.1 percent. “We’re facing some tough headwinds,” Obama said. “Lately, it’s high gas prices, the earthquake in Japan and unease about the European fiscal situation. That will happen from time to time.” The Bush and Obama administrations pumped $80 billion in taxpayer money into Chrysler and GM, with Obama guiding the companies into bankruptcy. The companies are now reporting profits, Chrysler has paid back all but $1.3 billion of its federal infusion, and the White House declared this week that the overall loss to taxpayers will be $14 billion, far less than initially expected. Delivering the Republican address , Sen. Lamar Alexander of Tennessee cast the Obama administration as too friendly to labor unions and said industries are more likely to flourish in environments where unions don’t hold as much sway. He noted that foreign auto companies like Nissan and Volkswagen have chosen to set up plants in his home state, a state with right-to-work laws that don’t require employees to join unions or pay union dues. He cited the case of Boeing, which was accused last month by the National Labor Relations Board of retaliating against union workers in Washington state who went on strike in 2008 by locating a new assembly line for its 787 aircraft in South Carolina, a state with right-to-work laws. The NLRB is seeking a court order that would force Boeing to return all 787 assembly work to Washington. “Our goal should be to make it easier and cheaper to create private-sector jobs in this country,” Alexander said. “Giving workers the right to join or not to join a union helps to create a competitive environment in which more manufacturers like Nissan and Boeing can make here what they sell here.” WATCH:

Read the full article →

Obama On Auto Bailout: Yes We Did, And It Worked

June 3, 2011

WASHINGTON — Saddled with a slowdown in hiring, President Barack Obama is drawing attention to the auto industry’s rebound, visiting a Chrysler plant in politically important Ohio as he seeks to highlight a rare bright spot in the sluggish economic recovery. Obama was traveling to Toledo on Friday, making the latest in a string of domestic trips to promote his economic agenda and defend the much maligned government bailouts to Chrysler and General Motors. The president planned to speak to plant workers and local business owners about the significance of the industry’s turnaround. The trip comes on the same day that the Bureau of Labor Statistics announced a significant drop in hiring for May – only 54,000 new jobs – and an uptick in unemployment to 9.1 percent. As the Republican presidential field begins to take shape, the White House is keenly aware that Obama’s handling of the economy generates some of his highest public disapproval ratings. “We have said from the beginning that the road out of the dark place we were in when this president took office in terms of the economic recession, the depths of the recession we were in, was not going to be smooth every step of the way,” White House spokesman Jay Carney said. Austan Goolsbee, chairman of the Council of Economic Advisers, said in a statement, “There are always bumps on the road to recovery, but the overall trajectory of the economy has improved dramatically over the past two years.” The Bush and Obama administrations spent $80 billion to bail out General Motors and Chrysler and help guide them through bankruptcy. The Obama administration says it will recoup more than 80 percent of that and Obama intends to defend the bailouts as money well spent. A report by the president’s National Economic Council this week said the taxpayers’ loss from the bailout will be about $14 billion. The Treasury Department initially had expected losses closer to 60 percent. Chrysler last week announced it would be paying off its remaining loans to the U.S. and Canadian governments ahead of schedule. And late Thursday, Treasury announced a deal to sell its remaining stake in Chrysler for $560 million to Italian automaker Fiat. That still means that of the $12.5 billion that the Treasury Department used to bail out Chrysler, about $1.3 billion will not be recouped, Treasury said. GM received $49.5 billion in the U.S. bailout, and the federal government has recovered about half of that by selling a portion of its ownership stake in the company. It intends to sell its remaining 26.5 percent share of the company at a later time. GM, Chrysler and Ford had been reporting significant increases in sales, but the industry this week reported a falloff in May. The industry resurgence is one of the few positive notes in an economy that had been growing moderately but has now hit a listless patch. Unemployment had been dropping from a high of 10.1 percent in October of 2009. But it now has experienced back to back increases since it hit 8.9 percent in March. The auto industry is also a major employer in presidential battleground states like Michigan, Ohio, Indiana and Missouri, all of them important for Obama’s re-election prospects. The industry recovery also gives Obama the opportunity to distinguish himself from Republicans who had criticized the government’s intervention. Among them was Republican presidential candidate Mitt Romney, who had called for Chrysler and GM to go through bankruptcy without government assistance. Romney on Friday defended his position. “The right process for an enterprise in trouble is not to be given money by the taxpayers in a bailout,” he told CBS’s “The Early Show.”

Read the full article →

House Votes Against Raising Debt Ceiling

June 1, 2011

WASHINGTON — House Republicans dealt defeat to their own proposal for a $2.4 trillion increase in the nation’s debt limit Tuesday, a political gambit designed to reinforce a demand for spending cuts to accompany any increase in government borrowing. The vote was lopsided, with just 97 in favor of the measure and 318 against. House Democrats accused the GOP of political demagoguery, while the Obama administration maneuvered to avoid taking sides – or giving offense to majority Republicans. The debate was brief, occasionally impassioned and set a standard of sorts for public theater, particularly at a time when private negotiations continue among the administration and key lawmakers on the deficit cuts Republicans have demanded. The bill “will and must fail,” said Rep. Dave Camp, R-Mich., the House Ways and Means Committee chairman who noted he had helped write the very measure he was criticizing. “I consider defeating an unconditional increase to be a success, because it sends a clear and critical message that the Congress has finally recognized we must immediately begin to rein in America’s affection for deficit spending,” he said. But Rep. Sander Levin, D-Mich., accused Republicans of a “ploy so egregious that (they) have had to spend the last week pleading with Wall Street not to take it seriously and risk our economic recovery.” He and other Democrats added that Republicans were attempting to draw attention away from their controversial plan to turn Medicare into a program in which seniors purchase private insurance coverage. The proceedings occurred roughly two months before the date Treasury Secretary Tim Geithner has said the debt limit must be raised. If no action is taken by Aug. 2, he has warned, the government could default on its obligations and risk turmoil that might plunge the nation into another recession or even an economic depression. Republicans, who are scheduled to meet with Obama at the White House on Wednesday, signaled in advance that the debt limit vote did not portend a final refusal to grant an increase. The roll call vote was held late in the day, and there was little, if any discernible impact on Wall Street, where major exchanges showed gains for the day. At the same time, it satisfied what GOP officials said was a desire among the rank and file to vote against unpopular legislation the leadership has said eventually must pass in some form. Republicans said they were offering legislation Obama and more than 100 Democratic lawmakers had sought. But Rep. Steny Hoyer of Maryland, the second-ranking Democrat, accused the GOP of staging a “demagogic vote” at a time lawmakers should work together to avoid a financial default. All 97 votes in favor of the measure were cast by Democrats, totaling less than a majority and far under the two-thirds support needed for passage. For its part, the administration appeared eager to avoid criticizing Republicans. “It’s fine, it’s fine,” presidential press secretary Jay Carney said when asked about the Republican decision to tie spending cuts with more borrowing. “We believe they should not be linked because there is no alternative that’s acceptable to raising the debt ceiling. But we’re committed to reducing the deficit,” Carney said. The government has already reached the limit of its borrowing authority, $14.3 trillion, and the Treasury is using a series of extraordinary maneuvers to meet financial obligations. By no longer would making investments in two big pension funds for federal workers and beginning to withdraw current investments, for example, the Treasury created $214 billion in additional borrowing headroom. At the same time, the Obama administration and congressional leaders are at work trying to produce a deficit-reduction agreement in excess of $1 trillion to meet Republican demands for spending cuts. Political maneuvering on legislation to raise the debt limit has become common in recent years, as federal deficits have soared and presidents of both political parties have been forced to seek authority to borrow additional trillions of dollars. Because such legislation is unpopular with voters, presidents generally look to lawmakers from their own political party to provide the votes needed for passage. In the current case, though, Republicans control the House, and without at least some support from them, Obama’s request for a debt-limit increase would fail. However, House Speaker John Boehner, R-Ohio, announced months ago that he would demand spending cuts as a condition for passage. “It’s true that allowing America to default would be irresponsible,” he said on May 9 in a speech to the Economic Club of New York. “But it would be more irresponsible to raise the debt limit without simultaneously taking dramatic steps to reduce spending and to reform the budget process.” He added that any spending cuts should be larger than the increase in borrowing authority, a statement meant to lay down a marker for the deficit-reduction talks led by Vice President Joe Biden. Few details have emerged from those negotiations, although Biden said recently the negotiators had made progress. He expressed confidence they would be able to agree on specific cuts in excess of $1 trillion over the next decade, and then look to procedural mechanisms known as “triggers” to force further automatic deficit cuts adding up to another $3 trillion or so. House Majority Leader Eric Cantor, a participant in the talks, said afterward, “I am confident that we can achieve over a trillion dollars in savings at this point, and hopefully more.” Earlier, Sen. Jon Kyl, R-Ariz., had said the discussions centered on deficit cuts totaling in the range of $150 billion to $200 billion over a decade, but that was from a relatively small category of programs. Among the areas eyed for spending cuts is the federal pension program, where the White House has signaled it is receptive to a Republican proposal for employees to make greater contributions. ___ Associated Press writers Andrew Taylor and Martin Crutsinger contributed to this report.

Read the full article →

Report Warns Against Slashing Intelligence Budget

May 24, 2011

WASHINGTON — With America’s top terror target eliminated, the nation’s intelligence agencies fear they will look like a fat target for budget cuts. Their chief argument: Gutting intelligence budgets led to the shortfalls that allowed Osama bin Laden to carry out attacks in the first place. Lawmakers say they are well aware that the terror war is not over but warn that cuts are coming. Congress approved an intelligence budget of $80.1 billion in 2010, but lawmakers are keeping that roughly the same, slightly north of $80 billion for the next two years – and south of the White House’s request, according to two U.S. officials who spoke on condition of anonymity to discuss classified budget figures. Those who lived through the purge of what is known as human intelligence – on-the-ground spies, informants and go-betweens – after the fall of the Soviet Union fear a rerun of the 1990s. Then, the spy world saw across-the-board cuts, agency by agency, on the theory that their main reason for being had ceased to be. “There was very little effort to look across the community and say if one organization is cutting analysts deeply in one area, let’s make sure another organization isn’t doing the same,” said former Pentagon intelligence official Joan Dempsey. The last time the budget masters took a buzz saw through the intelligence agencies, the White House was blindsided by al-Qaida’s strike on U.S. embassies in Kenya and Tanzania in 1998, Dempsey said. She’s among a wide spectrum of intelligence professionals warning against a repeat of such cuts, in a report released Tuesday by the Intelligence and National Security Alliance. “After the victory against the Soviet Union, we cut deeply across our capabilities in Africa, because people said we were in Africa because of the Soviet Union,” Dempsey said. That left the intelligence community practically blind during “an entire decade of unrest, and turmoil, in which U.S. troops had to intervene” in fragile states like Somalia, and al-Qaida built in strength, she said. The former chairman of the House intelligence committee, Rep. Peter Hoekstra, R-Mich., agrees. He remembers meeting resource-starved CIA officers in his first trips in 2001. “They told me they had no capability,” Hoekstra said, in a continent where the human intelligence needed to penetrate tribal and gang-supported unrest far outweighed the usefulness of the satellite and signals intelligence that was so popular at the time. “We let human intelligence die on the vine.” After al-Qaida attacked the U.S. on Sept. 11, 2001, “we tried to hire quickly to make up for the damage,” he said, “and sent a lot of people on dangerous assignments with not enough mentoring.” But Hoekstra also warned against cuts to satellite and signals intelligence investment, citing the lead time needed to develop and launch satellites to replace an aging fleet. New satellite systems are attractive to cut in the short term, because a single system often runs into the billions. But when the older satellites start failing, leaving gaps, the rush to replace them quickly can cost even more, he said. “I had about $2 for every dollar (former CIA Director George) Tenet had when al-Qaida struck on Sept. 11,” said retired Gen. Michael Hayden, who led the CIA from 2006 to 2009. Hayden oversaw one of the largest periods of expansion the intelligence agencies have ever seen. “So the record shows it paid off, but everyone recognizes it would be hard to sustain,” Hayden said. James Clapper, director of national intelligence, told Congress in February that he’d be making cuts across the community, signaling that the post-Sept. 11 rate of growth had come to an end. Several DNI officials were part of a task force that helped write the industry report released Tuesday. Clapper was careful not to identify what areas he has been thinking of cutting, Dempsey said, for fear the power of his suggestion might drive congressional committees to beat him to it. The intelligence budget has risen steadily since the Sept. 11 attacks, according to two U.S. officials, who spoke on condition of anonymity because the precise figures are classified. Clapper published the 2010 figure, at $80.1 billion, up from $75 billion the year before. The current version of the 2011 intelligence authorization act does cut some of the personnel requests made by the CIA, but adds millions of dollars and thousands of civilian positions, including “critical counter-terrorism positions at the CIA and a significant increase to the National Counterterrorism Center,” said a House intelligence committee member, Rep. Jim Langevin, D-R.I. Key programs like the CIA unit that hunted down bin Laden have been funded, but the lawmakers have started weeding out what they’ve decided are unnecessary duplications, said Rep. Dutch Ruppersberger, D-Md., the intelligence committee’s minority chairman: “There is duplication of programs. There are some programs we can’t afford, or that might have to be delayed for a few years.” Hayden said the cuts to the military make it all the more important to guard against cuts to intelligence, after Defense Secretary Robert Gates warned that a budget-reduced U.S. military may no longer be able to fight a two-front war. “If forces are going to be drawn down, then how you use those forces will be much more limited,” Hayden said. “So strategic intelligence is all the more important.”

Read the full article →

Emanuel Announces 1,000 New Chicago Jobs From GE Capital

May 23, 2011

In a first piece of good economic news for Chicago’s new mayor, Rahm Emanuel announced Monday that the financial services arm of General Electric would be adding 1,000 jobs in the city, nearly doubling its Chicago-based workforce. “Pound for pound, Chicago provides a lot of value for us and is a great place to be,” said Daniel Henson, president and CEO of GE Capital, Americas , to the Chicago Tribune . Mayor Emanuel has known the CEO of General Electric, Jeffrey Immelt, for some time, dating back to his days in the White House and as Congressman from Chicago’s North Side. “I called him and asked, ‘While you’re in town, do you want to grab a drink?’” Emanuel said , according to the Chicago Sun-Times . “Now, obviously having that experience and having both his email and his phone number was an advantage.” But he went on to say that GE wouldn’t have made the investment as a favor. “If this didn’t make economic sense to GE and their bottom line, they wouldn’t have done it,” Emanuel said. Both he and executives at GE said that Emanuel’s fiscal plan for the city — which includes addressing a massive $500-plus-million deficit — would take Chicago in the right direction and create a pro-business environment. According to an Associated Press report, the first 500 of the new jobs will come in within the next year , in commercial, regulatory and technical positions. The other half of the jobs will be added over the several years following. In addition to the 1,000 employees already in Chicago, GE Capital has another three thousand elsewhere in the state, WBEZ reports.

Read the full article →

White House: No Alternative To Raising Debt Ceiling

May 18, 2011

WASHINGTON — The White House said on Wednesday that there is no “Plan B” if Congress does not vote to increase the debt limit by August. The debt limit, which is currently set at $14.29 trillion, was reached on Monday, but Treasury Secretary Timothy Geithner told Congress the government can continue to pay its debts until about Aug. 2 by using “extraordinary measures.” If Congress does not raise the debt ceiling by then, there is no plan in place for dealing with the resulting defaults, a senior administration official said in a briefing with reporters. “There is no alternative to raising the debt limit. It has to be raised,” the official, who spoke to the reporters on background, said. “There’s really no way around it.” The White House is pushing back against a few Republicans — including Sen. Pat Toomey (R-Penn.) and Rep. Paul Ryan (R-Wisc.) — who hinted this week the government could default on its debts for a short time in pursuit of a broader deal to cut the deficit. Republicans have overall agreed that the debt ceiling needs to be raised but have said they will not vote to raise the ceiling unless it is paired with major spending cuts and long-term debt reduction. But some fear that talks to reach that deal, which are being facilitated by Vice President Joe Biden, will last beyond the Aug. 2 deadline for increasing the debt limit. A few Republicans have said extending talks beyond that deadline could be done without serious harm to the markets as long as a deal was eventually reached to raise the debt ceiling. Toomey, speaking on Wednesday at the conservative American Enterprise Institute, pointed to a weekend interview in the Wall Street Journal with investor Stanley Druckenmiller, who said he would accept late payments on U.S. debts if it meant overall progress on the long-term deficit. Sen. Jon Kyl (R-Ariz.), who is representing Senate Republicans in the White House debt limit talks, also referenced the editorial when speaking with reporters on Tuesday. Ryan made a similar remark Tuesday, telling CNBC the investors he speaks to would be willing to accept late payments “for a day or two or three or four.” The White House firmly rejected such an idea in the Wednesday briefing, saying even short-term default would harm the government’s credit and its reputation in the markets. “That’s not a plan; that’s default,” the official said. As lawmakers continue to push for a deal on the debt, the Treasury will continue to function by taking steps to “buy head room” within the current deficit, said a senior administration official. Earlier this month, the Treasury stopped providing State and Local Government Series Treasury securities, which help state and local governments to manage their debt. After reaching the debt limit Monday, the Treasury began using additional measures to avoid default. Geithner declared a “debt issuance suspension period” on Monday to borrow from the Civil Service Retirement and Disability Fund. The fund will be made whole after the debt limit increase is enacted, according to law. The Treasury will continue some business as usual, including maintaining its auction schedule to issue new bonds. The administration rejected the idea of selling off assets to buy time for the debt ceiling deal, arguing it would amount to a “fire sale” where assets would likely be sold for less than their true value. “The idea of dumping gold on the market would be extremely damaging,” a senior official said, while another official added that most assets do not have enough value to buy the government much time. Despite rhetoric over raising the debt ceiling by some lawmakers, Geithner is confident the debt limit will eventually be increased, an official said. “They always seem extremely challenging, but they seem to get there,” an official said.

Read the full article →

Republicans Ratchet Up Attacks On Labor Board, White House Over Boeing

May 10, 2011

WASHINGTON — Gov. Nikki Haley (R-S.C.) joined a coalition of business interests and Republican lawmakers Tuesday in bashing the National Labor Relations Board for filing a controversial complaint against the Boeing Company last month. At a press conference in the U.S. Chamber of Commerce offices, Haley called the complaint “an unbelievable attack on not just right-to-work states but every state that’s attempting to put their people to work.” In the complaint that attracted Republicans’ ire, the labor board’s acting general counsel said Boeing broke the law in 2009, when it made plans to create a new production line for its 787 Dreamliner. The aerospace company chose to locate its line in South Carolina, rather than in Washington state, where it had an existing workforce of unionized employees. The NLBR’s acting general counsel said Boeing’s move was retaliation against its Washington employees with the International Association of Machinists and Aerospace Workers, who had gone on strike in the past. Unions have hailed the filing as a victory for workers, while business groups have called it a case of federal meddling in corporate decision-making. The complaint has thrown the future of the South Carolina factory into limbo. Although the NLRB has downplayed the significance of the complaint, Republican senators have nonetheless decried it as an attack on free enterprise and right-to-work states like South Carolina. Right-to-work laws prohibit agreements between unions and companies that make union membership a requirement of employment. Generally favored by Republicans and corporate interests, such laws are currently on the books in 22 states, particularly ones in the South. Dan Yager, general counsel of the HR Policy Association, argued at the press conference that Boeing is being “penalized” for negotiating with the machinists union. Even though he expects Boeing to win the case, Yager claimed the filing will have a chilling effect on companies trying to move into right-to-work states. “If you’re an employer who wants to stay out of court… sort of what the general counsel says is the law,” he said. With litigation that could last well over a year, the Boeing complaint is quickly becoming a significant campaign issue leading up to the 2012 elections: Republicans are looking to paint Barack Obama administration as anti-business and in the pocket of labor unions. That was certainly the theme of the Chamber event, where a host of Republican lawmakers took to the podium to knock not only the NLRB, but the White House as well. Last week, several Republicans vowed to block President Obama’s nominees to the labor board. Sen. Lindsey Graham (R-S.C.), who had tough words for the labor board last week, escalated his rhetoric Tuesday morning. He called the complaint “chilling” and “absurd.” “This is legal slander,” Graham added. “There has never been a case like this. … This is politics run amok.” Last week Graham and Sen. Lamar Alexander (R-Tenn.) said they planned on introducing a bill written expressly to nullify the April 20 Boeing complaint. On Tuesday, the lawmakers said the bill is still being tweaked, but will probably be introduced this week. Sen. Jim DeMint (R-S.C.) leveled his criticism directly at NLRB acting general counsel Lafe Solomon, who filed the complaint. “It is absurd in this country that represents free enterprise that one unaccountable, unelected, unconfirmed acting general counsel can threaten thousands of jobs and billions of dollars in investments. This is something you’d expect in a third world country,” he said. “It is thuggery at its best.” “The pandering to unions has gotten so far out of proportion, it’s difficult to accept,” DeMint added, in reference to the White House. In a statement yesterday, Solomon defended the move . “There is nothing remarkable or unprecedented about the complaint issued against the Boeing Company,” he wrote. “It was issued only after a thorough investigation in the field.” In a recent interview with the New York Times , Solomon said he filed the complaint against Boeing because of strong evidence it had tried to move the production line out of retaliation. In company documents and news interviews, Boeing executives had explicitly cited the strikes as a reason for expanding into South Carolina. Sen. Rand Paul (R-Ky.) wondered aloud whether the Boeing complaint indicated the White House had an “enemies list.” “Mr. President… is this decision based on the fact that South Carolina appears to be Republican state?” Paul asked. “That South Carolina is a right-to-work state? I find this appalling, and I respectfully ask the president to rescind this assault on businesses.” Asked whether she agreed with Paul, if she believed the White House may have an enemies list, Gov. Haley said, “Right now no one knows what the White House is doing.”

Read the full article →

House GOP Issues Subpoena Threat Over Obama Draft Executive Order

May 10, 2011

Republican Reps. Darrell Issa and Sam Graves are signaling their intent to subpoena a top Obama administration official to testify about a controversial White House proposal that conservatives allege is an attempt to intimidate administration critics.

Read the full article →

Bill To Help Long-Term Jobless Overshadowed By Bill That Could Cut Benefits

May 9, 2011

WASHINGTON — After some encouraging signs that Republicans might cooperate with them, the two House Democrats trying to give the long-term jobless extra weeks of unemployment benefits are dismayed the GOP has instead moved a bill that could take benefits away. Reps. Barbara Lee (D-Calif.) and Bobby Scott (D-Va.) want to give the long-term unemployed another 14 weeks of unemployment insurance. In a remarkable April meeting , House Speaker John Boehner (R-Ohio) encouraged them to work with Rep. Dave Camp (R-Mich.), chairman of the Ways and Means Committee, which oversees unemployment insurance. Instead, Camp is pursuing a bill that would give states the option to spend federal unemployment dollars on paying down debt instead of paying for extended unemployment benefits. “Instead of acting on our bill to extend aid to unemployed workers who have exhausted their benefits, Ways and Means Committee Chairman Camp wants to gut unemployment benefits and deny millions of jobless workers the means to help make ends meet,” Lee and Scott said in a statement. “As we face an unemployment rate of 9 percent nationwide, an unemployment rate for teenagers three times as high as the national average, and an economy where there are 4.4 unemployed workers for every available job opening, it is simply wrong to propose a bill that would further penalize unemployed workers across the country.” Camp’s office declined to comment. Ways and Means will vote on Camp’s bill on Wednesday. Federal extensions of jobless aid have given the unemployed access to 99 weeks of benefits in the states with the worst jobs markets. The Lee-Scott bill would give another 14 weeks of benefits to anyone who’s been unemployed longer than six months, so it would benefit Nebraskans who’d exhausted the 60 weeks of benefits they are allotted and Californians who’d run through their 99 weeks alike. But the bill would cost roughly $16 billion, which makes it a non-starter for Republicans. Lee and Camp at one point broke with Democratic doctrine and said they’d be willing to offset the cost with budget cuts, but they have not followed through with any proposed cuts. The White House has estimated that 4 million people will run out of jobless aid without finding work this year.

Read the full article →

John Boehner: ‘Trillions’ In Spending Cuts Loom On Debt Ceiling Vote

May 9, 2011

NEW YORK — The top Republican in Congress wants trillions of dollars in spending cuts as part of must-pass legislation allowing the federal government to continue borrowing to keep it operating and meeting obligations to investors. It’s a new, ambitious marker in a battle over the budget that’s expected to consume Congress for much of the summer. House Speaker John Boehner also said that any legislation to raise the so-called debt limit beyond its current $14.3 trillion cap should be accompanied by spending cuts larger than the amount of the permitted increase in the debt. The Ohio Republican made the comments in a speech Monday night to the Economic Club of New York. Boehner’s comments come as investors and business groups have been seeking assurances that the GOP-controlled House will join with President Barack Obama and the Democratic-led Senate to enact the must-pass debt limit measure, which is needed to prevent a market-roiling, first-ever U.S. default on its obligations. Treasury Secretary Timothy Geithner says a failure to increase the federal government’s ability to borrow would have disastrous effects on the economy. “It’s true that allowing America to default would be irresponsible,” Boehner said. “But it would be more irresponsible to raise the debt limit without simultaneously taking dramatic steps to reduce spending and to reform the budget process.” The government is headed toward a $1.6 trillion deficit this year requiring it to borrow more than $125 billion a month. It’s unclear how much of a debt limit increase is coming, but it would take a record increase in the $2 trillion range to avoid a second vote before next year’s elections. The most recent increase in the debt limit of $1.9 trillion was passed by a Democratic-controlled Congress early last year. The debt measure’s path through Congress promises to be extraordinarily difficult since the arrival of 87 House GOP freshmen – many elected with tea party backing last year – for whom the debt vote is politically treacherous. At the same time, Democrats controlling the Senate and the White House support revenue increases that are a non-starter with Republicans. Boehner’s remarks are notable since it’s virtually impossible to produce spending cuts of that size without addressing major benefit programs like Medicare, food stamps and Medicaid. And they came less than a week after Majority Leader Eric Cantor, R-Va., and other top Republicans seemed to acknowledge that political reality would probably rule out such cuts before the 2012 presidential and congressional elections. A GOP budget blueprint that passed the House last month calls for transforming Medicare from a program in which the government directly pays medical bills into a voucher-like system in which future beneficiaries – those presently 54 years old or younger – would receive subsidies for purchases of private insurance plans. Dozens of protesters gathered outside the hotel where the event was being held. “We’re not talking about billions here. We should be talking about cuts in trillions,” Boehner said. “These should be actual cuts, real reforms to these programs and not broad deficit targets that punt the tough questions to the future.” In fact, one of the options being considered by Republicans is to impose a hard cap on government spending that would be backed up with across-the-board spending cuts if the targets aren’t met. The idea is firmly opposed by the White House, which prefers a mechanism that would incorporate automatic revenue increases as well. “Tax hikes should be off the table,” Boehner said. Boehner called for “honest conversations” about the future of Medicare. He added that a failure to act could provoke a debt crisis that could require tougher cuts than anything now being contemplated. “If we don’t act boldly now, the markets will act for us very soon,” Boehner said. “We cannot let this moment pass,” he added. Separately, Senate Budget Committee Chairman Kent Conrad, D-N.D., said it may require a short-term increase in the debt limit to buy additional time for lawmakers to grapple with what is likely to be a very complicated and politically divisive budget debate. In New York, Boehner was asked whether he might consider a short-term debt measure. He did not directly respond. Democrats admit freely that the must-pass debt limit legislation is going to have to have to be accompanied with cuts to spending, and Vice President Joe Biden on Tuesday is hosting a second meeting of a group of lawmakers on deficit reduction. The group is supposed to come up with bipartisan recommendations on deficit curbs to add to the debt limit measure. Geithner has told lawmakers that while the government will officially reach the official debt ceiling in mid-May he can take advantage of bookkeeping maneuvers to stave off a first-ever default until Aug. 2. Sen. Chuck Schumer, a New York Democrat with strong ties to Wall Street, told reporters Monday that it would be a mistake to wait that long to approve the legislation since the markets could easily be roiled when the legislative process takes inevitable twists and turns. Schumer says it would a mistake for Boehner to cut it too close to the Aug. 2 deadline. “A default would be even more catastrophic than a shutdown. The consequences are much more far-reaching and disastrous for the economy,” he said. Boehner negotiated for weeks with the White House earlier this on legislation passed last month funding agency budgets through the Sept. 30 of the budget year. But that agreement was reached on the cusp of a partial government shutdown – a luxury lawmakers probably won’t have in the case of the debt-limit measure. “If America were to default, even for 24 hours, that would have an unprecedented and a catastrophic impact on global financial markets and on American markets,” said Roger Altman, a former top Treasury Department official under President Bill Clinton. “You either default or you don’t. There’s no saying, ‘I’m sorry. I didn’t mean it.’ And that makes it totally different … from a government shutdown.” ___ Andrew Taylor reported from Washington.

Read the full article →

Joe Biden, Congressional Group Begin Budget Talks

May 5, 2011

WASHINGTON — Bowing to political reality, Vice President Joe Biden on Thursday acknowledged the need to pair significant spending cuts with legislation raising the government’s borrowing limit so it can pay its bills. “They’re not technically connected, but the face of the matter is they’re practically and politically connected,” Biden said at the start of budget meetings with top lawmakers at Blair House, the guest house across Pennsylvania Avenue from the White House. As he spoke, the vice president glanced at House Majority Leader Eric Cantor, R-Va. Members of both parties say the government must address out-of-control deficits in order for Congress to go along with the unpleasant task of increasing the debt ceiling beyond the current $14.3 trillion limit. The government borrows more than 40 cents of every dollar it spends. The White House and Republicans who run the House say a deal expected this summer probably won’t produce sweeping changes to taxes and benefit programs such as Medicare and Social Security. But Cantor came to the talks with $715 billion in proposed savings from other programs, including cuts to farm subsidies and food stamps, according to an aide. The federal deficit could reach $1.6 trillion this year, so both sides are setting modest expectations. But they said the meeting offered a chance to identify even small cuts that can build toward a broader agreement. Treasury Secretary Timothy Geithner took some pressure off the talks when he told Congress this week that the government could continue to meet its obligations through Aug. 2. The government is borrowing an average of $125 billion a month. House Republicans have passed a detailed budget blueprint that aims to cut spending by more than $5 trillion over the next decade. Biden sought to flesh out a plan that President Barack Obama outlined last month that would reduce deficits by $4 trillion over 12 years. “We staked out our position in a very definite way. They haven’t,” Cantor said Wednesday. “So we need to understand where they’re coming from.” Obama’s proposal calls for about $1 trillion in higher tax revenues, a nonstarter with House Republicans. At the same time, a GOP plan to slash Medicaid and turn Medicare into a program in which future beneficiaries receive subsidies to purchase private health insurance is dead with the White House and Democrats. In addition to Cantor, the White House invited the second-ranking Senate Republican leader, Arizona’s Jon Kyl; the chairman of the Senate Appropriations Committee, Hawaii Democrat Daniel Inouye; the chairman of the Senate Finance Committee, Montana Democrat Max Baucus; and senior House Democrats Jim Clyburn of South Carolina and Chris Van Hollen of Maryland. One proposal that some Republicans hope to add to the debt ceiling bill would cap spending at about one-fifth of the size of the economy, backed by automatic cuts if Congress failed to enact legislation that keeps spending under the limit. That idea from Sens. Bob Corker, R-Tenn., and Claire McCaskill, D-Mo., is opposed by the White House. It says the plan would force drastic, across-the-board cuts to Social Security, Medicare and Medicaid while doing nothing to fix tax laws full of special breaks. “Arbitrary spending caps are nothing but a backdoor means of imposing immediate and deep cuts in Medicare and Social Security,” said Kenneth Baer, spokesman for the White House budget office. Cantor wouldn’t dismiss the idea, but he said Republicans want something concrete immediately. “All that is fine, but the history of Congress has been that anytime you put enforcement mechanisms in place like that, ultimately they’re waived,” he said. “We’re about trying to effect real cuts, real reforms this year.”

Read the full article →

Treasury: Debt Limit Needs To Be Raised By $2 Trillion

May 4, 2011

WASHINGTON (Richard Cowan and Rachelle Younglai) – The Treasury has told lawmakers a roughly $2 trillion rise in the legal limit on federal debt would be needed to ensure the government can keep borrowing through the 2012 presidential election, sources with knowledge of the discussions said. Obama administration officials have repeatedly said that it is up to Congress to decide by how much the $14.3 trillion debt limit should be raised. But when lawmakers asked how much of an increase would be needed to meet the government’s obligations into early 2013, Treasury officials floated the $2 trillion working figure, Senate and administration sources told Reuters. Former Treasury officials have said it is routine for Congress to ask the Treasury Department for guidance. Republican leaders have asked the White House to provide the size of any proposed increase before the two sides sit down on Thursday to discuss the debt limit face-to-face. “We have not specified an amount or a time frame. We think that should be left up to Congress,” Mary Miller, Treasury’s assistant secretary for financial markets, told reporters on Wednesday. She also said it would be better to raise the debt ceiling enough so that the government does not bump up against it so frequently. “Obviously, a longer period of time between these activities would be beneficial in terms of the work that goes into preparing for a debt limit increase. But again, you know that’s not the Treasury’s call,” she said. A Reuters analysis of Treasury’s borrowing needs forecast Congress would have to raise the debt ceiling by more than $2 trillion to get through next year’s election without having to revisit the issue. According to the Treasury, the government borrows on average about $125 billion per month. (Reporting by Richard Cowan, Rachelle Younglai, David Lawder; Editing by Andrea Ricci) Copyright 2011 Thomson Reuters. Click for Restrictions .

Read the full article →

Video: Smith Says Twitter Sped Obama’s Bin Laden Announcement

May 3, 2011

May 3 (Bloomberg) — Andrew Smith, a lecturer at Stanford University and author of “The Dragonfly Effect: Quick, Effective and Powerful Ways to Use Social Media to Drive Social Change,” talks about the impact of social media on the White House’s announcement of Osama bin Laden’s death. He spoke yesterday with Emily Chang on Bloomberg Television’s “Bloomberg West.” (Source: Bloomberg)

Read the full article →

Congress Receives Extension To Handle Debt Limit

May 2, 2011

WASHINGTON — Treasury Secretary Timothy Geithner is giving Congress a little more breathing room to negotiate a deal that would raise the nation’s borrowing limit. In a new letter to congressional leaders, Geithner said Monday that he can delay an unprecedented default on the debt until Aug. 2, using a series of bookkeeping maneuvers to keep the government running. That’s nearly a month longer than the July 8 deadline Geithner had previously cited. The U.S. government will hit its $14.3 trillion borrowing limit on May 16. After that time Geithner can take such steps as removing investments from government employee and retiree pension funds to keep from going over the limit. Republicans have said they will not vote to raise the debt limit until it reaches an agreement with the White House on further spending cuts. The debt subject to limit stood at $14.24 trillion as of last Friday, $58.1 billion below the current limit. With Congress back from a two-week recession, negotiations are expected to begin in earnest this week on the debt limit. Geithner said he will begin making moves on Friday to delay a default. At that time, the government will stop selling Treasury securities used by state and local governments to support their own sales of tax-exempt bonds. Treasury has suspended such sales six times over the past two decades, all in conjunction with previous debt fights. The last suspension was in 2007. The Treasury Department also announced Monday that it plans to sell $156 billion in debt during the current April-June quarter. It will be able to achieve those sales with the amount of room that still exists under the debt limit and the extra room made through Geithner’s maneuvers.

Read the full article →

Chrysler Back In The Black Two Years After Bailout

May 2, 2011

Two years after it was escorted through bankruptcy reorganization by the White House and with the help of loans from U.S. and Canadian taxpayers, Chrysler has posted its first quarterly profit.

Read the full article →

Did Obama Plan His Budget Speech Months In Advance?

April 19, 2011

WASHINGTON — President Barack Obama’s much discussed speech last week on how to remedy the country’s fiscal future was part of a far broader, more strategically detailed political strategy than has been previously reported. Several high-ranking administration officials have confirmed that the White House laid out plans for the address as far back as the last calendar year, with the president’s economic team and other senior staff members “meeting regularly since February to put the policy together and work on the speech.” In presenting a fiscal roadmap, the administration aimed to demonstrate Obama’s fundamental seriousness towards what is widely perceived to be a looming deficit crisis. But the speech also illuminated both the lack of communication between the White House and Capitol Hill and a growing conviction among insiders that the president must move the deficit debate off center stage in order to tackle other domestic priorities. The address, delivered at George Washington University last Wednesday, outlined an expansive approach towards leveling the federal government’s balance sheet. Obama expressed a need for simplifying the tax code and raising the rates on the highest earners. He called for a “debt fail-safe” trigger, mandating Congress to pass across-the-board spending reductions if the nation’s debt does not decline. He advocated stronger cuts in the Pentagon’s budget and less waste in Medicare. His remarks, in all, were positively received by Democrats and derided as partisan waste by Republicans. Yet build-up to the speech illustrated more than reactions to it. Capitol Hill officials, including the White House’s top allies, say they were left completely in the dark. No one, it appears, knew Obama would deliver an address until his top aide, David Plouffe, announced plans on the Sunday shows. Key aides were briefed on its content only days (if not hours) before the president took the stage. “Members and staffs had no idea what they were going to say until about four hours before the speech—three days after the speech was announced,” said a senior Senate Democratic aide. “It was pretty ham-handed in its roll out and members weren’t pleased.” The abundance of secrecy left the impression that White House officials came up with the idea for Obama’s speech at the eleventh hour in an effort to divert attention away from the debate raging in Congress. “They were scrambling to change the subject from the budget debacle and this was what they latched on to,” said the aide. Having failed to effectively brief members of Congress on the details of his plan, few lawmakers could therefore amplify the president’s message. Administration officials, for their part, steadfastly refute the idea that they simply “winged” it. According to one Obama aide, the president and his team decided in December that he would have to “lay out a comprehensive plan” for deficit reduction “after the FY2011 funding debate had completed.” Another White House official described the planning as even more specific, asserting, “Its been on the schedule for the Wednesday after the [continuing resolution avoiding a government shut down] was resolved for months now.” Because a vote on the continuing resolution was delayed on several occasions, the date of the speech remained, consistently, in flux. According to these individuals, the President’s staff had been considering university locations near or in Washington, D.C. for venue well before the speech was announced, with an eye toward delivering subsequent deficit-focused addresses outside the nation’s capital the following week. Michelle Sherrard, a spokesman for George Washington University, did not have a specific date for when the administration first contacted the university. She noted only that “The White House and GW regularly communicate about the possibility of hosting upcoming events on campus.” One administration aide defended congressional outreach, adding, “Throughout this process the President’s team has been in touch with leaders on the Hill, including both the Gang of Six [Senators meeting on their own deficit proposal] and Congressman [Paul] Ryan, and other stakeholders like the deficit commission chairs.” “In touch,” however, remains an inherently subjective phrase. As late as the Tuesday night before the speech was delivered, one extremely close White House ally professed to not having a clue about what would be said. “I don’t think they have briefed anyone and I am not sure the speech is done!” In fact, the speech wasn’t done. According to an administration aide, “the president worked until late in the night Tuesday, and put final touches on the speech on Wednesday morning.” Why did it take so long to finalize the details on a speech planned months in advance? For one, various areas of policy disagreement within the White House remained unresolved. In particular, officials familiar with the discussions say, Obama’s economic advisers warned against calling for a final balance of three dollars in spending reductions for every dollar generated in additional tax revenue, arguing the ratio was too explicit. Medicare reform sparked another element of disagreement. In his speech, the president proposed strengthening the Independent Payment Advisory Board, a group tasked with finding excessive and unnecessary spending within the system. Several aides wanted him to further outline specific ways to empower Medicare to negotiate over drug prices and medical procedures. In the end, Obama kept the speech broad, leaving Democrats officials on the Hill largely pleased. Several members of Congress also expressed agitation with the timing. Obama’s speech came after Rep. Paul Ryan (R-Wisc.) unveiled his own budget plan , giving his own remarks the veneer of a presidential response rather than executive leadership. Moreover, by calling for additional talks on deficit reform, the president miffed lawmakers either working on or invested in the Gang of Six talks currently ongoing. “The fact that the president has come out with his vision should be a positive reinforcement, another indication that this is important work that needs to be done,” Press Secretary Jay Carney said on Monday in response to complaints Obama stepped into Gang of Six territory. “And the fact that the President built his vision by borrowing in many ways from the recommendations of the bipartisan commission on which a number of members of that Senate group sat… gives a good sign, a good indication, of the fact that there is a building consensus around the way to approach this problem. So he thinks it’s very complementary to the process.” But many Democrats don’t want “complementary.” The Gang of Six already gives progressives angina, with the Democratic members of the group — including Sens. Dick Durbin (D-Ill.) and Mark Warner (D-Va.) — openly supporting elements of Social Security reform and even extending the Bush tax cuts. Should the president end up complementing or even embracing their approach, the worry goes, no progressive counterpoint to Ryan’s proposal will emerge. Instead, the distance between the Gang of Six and the Republican alternative will become the “compromise.” The White House has been noticeably tight-lipped about its thoughts on Gang of Six conversations, perhaps because scarce information exists as to what, exactly, the lawmakers are discussing. But signs of mounting concern permeate both on and off the Hill. When Vice President Joe Biden hosts a deficit reduction meeting with members of Congress at the Blair House on May 5, no Democratic lawmakers from the Gang of Six will be present. Instead, Senate Majority Leader Harry Reid (D-Nev.) is sending Finance Committee Chairman Max Baucus (D-Mont.) and Appropriations Committee Chairman Dan Inouye (D-Hawaii). Gang of Six member and Budget Committee Chair Kent Conrad (D-N.D.), one Democratic Senate aide relayed, was more than “irked” by his absence from the talks. Other Democrats voiced relief over the Gang of Six absence, speculating that both Reid and Sen. Chuck Schumer (D-N.Y.) were growing wary about the bipartisan group’s role. Gang of Six criticism is more intense off the Hill, with several of the nation’s most powerful union groups laying down crisp lines in the sand over elements they consider non-negotiable, such as ending tax cuts for the richest Americans. “Any plan to reduce the deficit that does not include ending the Bush tax cuts — a clear contributor to the deficit — is not a serious plan,” said Michelle Nawar, Director for Legislation at the Service Employees. “Every middle class family should be offended if Congress calls on them to bear the burden for reducing a deficit they did not cause while continuing to handout more tax giveaways to millionaires and corporations. We’ll see what the Gang of Six proposes, but how could any Democrat support a plan that cuts needed services for seniors and children while continuing these expensive tax giveaways?” Nawar’s question presumably extends to Obama, who has punted once on letting the Bush tax rates for the wealthy expire (they will now lapse at the end of 2012). A far more immediate and pressing concern, however, is whether the administration’s attempt to jump ahead of the deficit debate will yield the type of political fruits the White House envisions. The president’s advisers — chiefly, former Senior Communications Aide David Axelrod –- have long seen benefits to deficit hawk-ery in private polling. But the payoff this time around has been limited: An ABC News/Washington Post poll released on Tuesday showed that 57 percent of Americans disapproved of the way Obama is handling the economy. “I think they were concerned about how to give the president credibility on this issue and how to win over some independents,” one top party strategist said of Obama’s speech on Wednesday. “The irony is it won’t give him any. He could have offered $10 billion more in cuts for the CR and it would never be good enough for the GOP.” Jen Bendery contributed to this report.

Read the full article →

Video: White House’s Lew on Debt Limit: Political Capital With Al Hunt

April 16, 2011

April 15 (Bloomberg) — White House Budget Director Jacob Lew talks with Bloomberg’s Julianna Goldman about last week’s budget agreement between members of Congress and the outlook for the vote on raising the debt ceiling. Bloomberg’s Hans Nichols and Julie Davis discuss President Obama’s speech on reducing the deficit. Zeb Eckert reports on Japan’s nuclear crisis. Commentators Margaret Carlson and Kate O’Beirne talk about Mitt Romney’s moves toward a presidential bid, and House Budget Committee Chairman Paul Ryan’s budget plan. (Source: Bloomberg)

Read the full article →

Obama Administration Considers Altering U.S. Military’s Global Role

April 14, 2011

By Colin Clark Editor, AOL Defense WASHINGTON — The Obama administration, with very little fanfare, has launched what national security experts say is the most significant reconsideration of the United States’ military role in the world since at least the end of the Cold War. The announcement was made yesterday in President Obama’s deficit speech, in which he appeared to call for cutting as much as another $400 billion in spending from the Department of Defense. “Over the last two years, [Defense] Secretary [Robert] Gates has courageously taken on wasteful spending, saving $400 billion in current and future spending. I believe we can do that again. We need to not only eliminate waste and improve efficiency and effectiveness, but conduct a fundamental review of America’s missions, capabilities, and our role in a changing world,” Obama said. The Pentagon “will identify alternatives for the president’s consideration,” Gates’ press secretary Geoff Morrell said late yesterday afternoon. The “roles and missions analysis” — military shorthand for the review — should be finished by the beginning of Fiscal Year 2013, about 10 months from now. One of Gates’ closest advisers, Andrew Krepinevich, called the president’s remarks “an almost earth-shattering speech” during an address at a conference sponsored by the Institute for Foreign Policy Analysis on the future of the Marine Corps. Krepinevich, who is head of the Center for Strategic and Budgetary Assessment and also serves on the Defense Policy Board, told AOL Defense he believes this is the most significant strategic period since the turbulent period after World War II. Krepinevich said the cuts come at a very difficult time. The threat level the U.S. faces is likely to increase for the next decade and, more ominously, the threats are shifting in form. If the U.S. is forced to cut defense spending in this environment, it may well be left with the wrong mix of weapons, strategy and personnel to handle the changing world, Krepinevich said. But he was cautious in his analysis of the Gates’ announcement of a roles and missions study, which traditionally focuses on smaller changes. The White House has not, as far as he knows, decided to launch a strategic review. But Krepinevich said he thinks the White House and Pentagon must first focus on strategy because the stakes are so high and there are so many fundamental military and social changes underway across the globe. Jacquelyn Davis, a defense expert at the Institute for Foreign Policy Analysis (IFPA), told AOL Defense that she believes Libya may spell the “death” of the NATO alliance — a statement that shows just how fundamental the stakes are. Another speaker at the IFPA conference, national security author Bob Kaplan, called the current period the “most unstable era in a long time.” But it looks as though the president isn’t really asking for an additional $400 billion in defense cuts. A White House fact sheet issued after the Wednesday speech says the cuts will come from “security spending,” which defense budget expert Todd Harrison, who works with Krepinevich at CSBA, noted would include the departments governing veterans, energy, homeland security and defense. “It looks like we won’t know every much until the [roles and missions] review is done,” how much might be cut from the Pentagon budget, Harrison said. Any savings would be spread over 12 years, out to 2023. Harrison said the pledge of cuts is “kind of vague, but the takeaway is that it’s a larger cut than we expected.” Launching in Spring 2011, AOL Defense will provide news, insight and tools about the defense sector. Follow Colin on Twitter at @colinclarkaol . Follow defense news on Twitter at @aoldefense .

Read the full article →

Obama: Deficit Reduction Push ‘Can’t Exempt Anyone’

April 14, 2011

WASHINGTON — President Barack Obama says the nation’s effort to curb ballooning deficits “can’t exempt anyone.” Obama spoke Thursday as he met with the co-chairmen of his deficit reduction commission, a day after laying out his blueprint for erasing some $4 trillion in red ink over 12 years. The commission was led by former Republican Sen. Alan Simpson and Erskine Bowles, former White House chief of staff to Bill Clinton. It produced a plan for a similar amount of deficit reduction over 10 years. Obama tells reporters the country needs to ask everyone to participate in the effort to get its fiscal house in order.

Read the full article →

Elizabeth Warren May Head Consumer Agency After All

April 13, 2011

White House officials seeking someone to run the Consumer Financial Protection Bureau have so far failed to find a nominee, with several candidates rebuffing the administration’s overtures, according to people familiar with the process. One concern of some: That accepting would undercut Elizabeth Warren, the Harvard law professor and consumer advocate who is currently a special adviser to the president charged with setting up the bureau. She remains a hugely popular figure among many Democrats and anathema to many Republicans.

Read the full article →

Obama Jumping Into Debt Debate

April 13, 2011

WASHINGTON — President Barack Obama, jumping into a debt-reduction debate that will help define the rest of his term, will outline his ideas Wednesday for curbing the costs of Medicare and Medicaid and taking other steps to turn around the nation’s spending habits. Ahead of his effort, House Republicans warned they would not consider any plan that includes tax increases. Obama will give congressional leaders of both parties a preview of his speech, scheduled for delivery at 1:30 p.m. EDT Wednesday, during a private meeting at the White House on Wednesday morning. The White House has refused to discuss details of the speech, but Obama is expected to call for a “balanced” approach of shared burdens that takes on entitlement programs, defense spending and taxes. The president’s move also is intended to serve as a counter to a major Republican proposal from Rep. Paul Ryan of Wisconsin. Ryan’s plan would seek to cut more than $5 trillion in spending over the next decade, built around a drastic reshaping of Medicare and other federal safety-net entitlement programs, and would lower the tax rate for the nation’s top payers. “The point is that balance is essential,” Obama spokesman Jay Carney said. “What is not acceptable in the president’s view – and we believe in the American people’s view – is a plan that achieves serious deficit reduction only by asking for sacrifice from the middle class, seniors, the disabled and the poor, and while providing substantial tax cuts to the very well off.” In a divided Washington, where a budget standoff between Obama and House Republicans nearly led to a government shutdown last week, the broader debt debate now begins in earnest. It is expected to shape both the course of legislation and a presidential campaign that already has Obama seeking a second term. Obama has renewed his call to end the Bush-era tax cuts for households earning more than $250,000 a year or individuals earning above $200,000. The White House has insisted that every aspect of the government must be considered as part of a serious discussion on debt, including revenues, which tends to be Washington-speak for taxes. “If the president begins the discussion by saying we must increase taxes on the American people – as his budget does – my response will be clear: Tax increases are unacceptable and a nonstarter,” House Speaker John Boehner, R-Ohio, said. “We don’t have deficits because Americans are taxed too little. We have deficits because Washington spends too much.” The top Senate Republican, Mitch McConnell of Kentucky, said Tuesday: “Hopefully the president will put forward a plan that doesn’t just pay lip service to the commitments we’ve made to seniors and the poor, but which acknowledges the unique problems that this generation and a rising generation of Americans face.” The ballooning year-by-year deficit has pushed the national debt above a staggering $14 trillion. The administration is clamoring for Congress to raise the government’s borrowing authority above $14.3 trillion to avoid a government default on its debt, but Republicans want spending cuts in return. That showdown helps sets the context for Obama’s speech. Obama is expected to meet at the White House with Boehner, McConnell, House Majority Leader Eric Cantor, R-Va., and Sen. Jon Kyl, R-Ariz., and top Democrats, too: Senate Majority Leader Harry Reid of Nevada, Sen. Dick Durbin of Illinois, House Minority Leader Nancy Pelosi of California and House Minority Whip Steny Hoyer of Maryland.

Read the full article →

DC Mayor Residents To Fight Budget Deal

April 12, 2011

WASHINGTON — A day after getting arrested with other city leaders, the District of Columbia’s mayor called on residents of the nation’s capital to join him in protesting likely new restrictions on the city from Congress, drawing analogies to this year’s popular uprisings in Egypt and Libya. D.C. Mayor Vincent Gray said Tuesday that residents should work through religious groups and neighborhood and civic associations to push back against consequences for Washington in the federal budget Congress is expected to pass later this week. D.C. has its own city government, but Congress ultimately oversees the city’s affairs including its budget and laws. As a result, Gray and other city leaders said that Washington became a pawn in last week’s budget negotiations. It appears that a deal members of Congress reached Friday to avert a federal government shutdown included provisions that ban the district from spending its own, city-collected tax money to pay for abortions for poor women. The deal would also re-establish a school voucher program that has divided city leaders. Gray said he hoped that his arrest Monday with 40 others, including six members of the District of Columbia Council, would energize other residents. On Monday, the mayor and others sat down and blocked traffic on Washington’s busy Constitution Avenue near the Capitol before being arrested and held until the early hours of Tuesday. “I don’t think there’s any doubt that we got people’s attention,” Gray said in an interview in his office later Tuesday, still wearing a tag from police on his wrist. “But the reality is, too, that a single event is not going to make a lasting difference. I think the greatest value of this was to be able to be a catalyst or to be a spark for further involvement.” Gray said he didn’t have any guarantees that activism by citizens would work, but he added that change comes about when people get frustrated enough to take action, making analogies to the civil rights movement, the movement to give women the right to vote and recent events in Egypt and Libya. Gray acknowledged he has no direct influence over the federal budget process, but he said the city’s 600,000 residents could be a powerful force. There was also some suggestion Tuesday that members of Congress and even the White House took notice of the protest. White House spokesman Jay Carney said during a briefing with reporters that the president does not support the provisions in the budget that Gray has been critical of but that, “in a negotiation, you have to make tough choices.” House Democratic Whip Steny Hoyer of Maryland said at a news conference that it was unfortunate that the city had been used as a bargaining chip, but that the budget was a compromise. There was some good news for the city Tuesday as more details about the final budget trickled out. City leaders had worried Congress would re-impose a ban on the city using its own money to pay for a needle exchange program, considered vital to curbing the spread of HIV in the city. It became clear Tuesday that the needle exchange had been spared in the budget wrangling. Meanwhile, the city’s representative in Congress, Eleanor Holmes Norton, said she planned to ask later Tuesday during a House meeting that the restrictions on the city spending for abortions also be taken out of the deal. For his part, Gray called on others to become “a part of the movement.” “”This cannot be isolated events, it can’t be a series of events,” he said. “It’s got to be an effort that says, `We’re in this for the long haul, and this is how we are going to get there.’” ___ Associated Press writers Julie Pace and Jim Abrams contributed to this report.

Read the full article →

More Money Slashed From High-Speed Rail

April 11, 2011

WASHINGTON — As part of the final budget deal formally agreed to on Friday night, the Obama administration signed off on a big cut to a closely held transportation policy priority. Multiple Hill sources from both parties confirm that the final continuing resolution (CR) to fund the government through the end of September will include a $1.5 billion cut in funds for the planned national high-speed rail system. Jennifer Hing, communications director for the House Appropriations Committee, said that the reduction could actually grow larger as lawmakers negotiate the final language. “The final agreement will reflect” the $1.5 billion of high-speed rail funds slashed from the temporary CR, Hing wrote in an email to HuffPost, “but that is not to say that it couldn’t be more.” In signing off on cuts, the Obama administration is taking a major hit to one of the president’s favorite transportation priorities. In the process, he is also giving fodder to critics who have accused the White House’s push for high-speed rail as pie-in-the-sky policy that would fall far short of transforming the nation’s antiquated infrastructure. Already there have been several Republican governors who have refused to accept federal money to build high-speed rail projects in their states. Florida Gov. Rick Scott turned down $2 billion alone, citing concerns that the state’s portion of the funds would go well beyond projections. That money was, in turn, sent to the Department of Transportation to be awarded to other interested states. Now it appears a good chunk of it will go towards deficit reduction. The White House was able to secure $8 billion in high-speed rail money in the 2009 stimulus package. The current level of funding was $2.5 billion-a-year. The cuts secured under the budget deal reached on Friday night brings the annual rail dollars down to $1 billion, though administration officials stressed that none of the lost funds would come from existing projects that have received grants. The president had budgeted $1 billion himself in his 2012 budget proposal but as recently as mid-February 2011, Transportation Sec. Ray LaHood was encouraging Congress to authorize $53 billion over the next six years.

Read the full article →

Federal Budget Deal Reached, Government Shutdown Averted At Least Temporarily

April 9, 2011

Perilously close to a midnight deadline, the White House and congressional leaders have reached agreement to cut billions of dollars in spending to avoid the first government shutdown in 15 years. House Speaker John Boehner informed the GOP rank and file of the accord, reached in grueling negotiations over several weeks, an official said. “We have an agreement,” concurred a spokesman for Senate Majority Leader Harry Reid, Jon Summers. Because drafting and then passing the broader legislation could take days, congressional leaders raced to approve a stopgap measure to prevent the onset of the first shutdown in 15 years, due to begin at midnight. Officials said it would keep the government in funds through the middle of next week. Boehner told reporters just before 11 p.m. EDT that the House would continue working. Republicans said the deal called for $39 billion in spending cuts, a measure that one official said Boehner told his rank and file marked the “largest real-dollar spending cut in American history.” Over a decade, the agreement would cut more than $500 billion from the federal budget, Boehner added, according to a participant in the meeting. The agreement marked an extraordinary reach across party lines and the first test of a new era of divided government that includes Obama in the White House, control of the Senate by fellow Democrats and a tea party-flavored Republican majority in the House.

Read the full article →

On The National Mall, Worries Over Lost Business

April 7, 2011

WASHINGTON — As many speculate the economic implications of a government shutdown, here in the capital, jitters are felt by one economy in particular–the one that trades in hot dogs, snow cones, and CIA t-shirts down on the National Mall. Washington’s vendors, it turns out, are feeling pretty “non-essential” amidst all the politicking. “If they shut down, there’s no business,” said Abdul Bangura, who shuttles a van loaded with ice cream up and down the Mall each day. “Nobody’s gonna come down here.” A federal shutdown would include much of the National Park Service, which runs the Mall and its monuments, as well as the Smithsonian’s museum network, which draws 3.8 million tourists to the area in April alone, according to the Washington Post . If the White House and Congressional leaders can’t hammer out an agreement, the vendors and other small businesses that cluster around the Mall stand to be hit with a double whammy. No tourists and no federal workers, the two demographics they rely on most. “Ninety-nine percent of my customers work here,” said Tony, pointing to the Environmental Protection Agency offices across the street from his hot dog stand. Tony’s been manning a cart in this spot for a decade and knows many of the EPA employees personally. He explained moving his cart to another part of town isn’t an option; it would violate D.C. vending rules. Tony doesn’t normally follow politics on the Hill, but the standoff has certainly caught his attention. “It will affect my life,” he said. In the event of a shutdown, he said he would simply stay home rather than waste money on gas. Downtown tour companies stand to take a hit, too. Over at the Bike and Roll kiosk, a bicycle rental company, manager Jeff Holliday said higher-ups had convened to discuss what they might do differently in the event of a shutdown. He said he’d gotten a call from a tourist who said she’d already changed her vacation plans because of the shutdown possibility. Rather than head to D.C., she was visiting– gasp –Colonial Williamsburg. Holliday estimated that 75 percent of Bike and Roll’s rentals go to tourists, many of whom may not be there next week. “But we’ll figure it out,” he added optimistically. Dave Cohen, general manager at Historic Tours of America , said his company’s Washington vessels, the Old Town Trolley and the D.C. Duck boats, would continue their amphibious tours of downtown Washington. But he’s wondering if the tourists will still come if they can’t hop on and off and see the monuments and museums along the Mall like normal. “I don’t think it’s sunk in around the country yet,” Cohen said, explaining they hadn’t received any cancellations. “Naturally, we’re concerned. I’m just hoping it doesn’t happen.” Suong Xuan Le, 71, has been hawking hot dogs and egg rolls around town ten hours a day for 34 years, spending last seven of them across from the National Museum of American History. A prolonged shutdown, he said, could devastate his business. “My customers, they’re tourist people,” he said. “If the White House and Congress don’t have an agreement, that’s terrible.” Rob Milford, here on business, said his local high school in Fairhope, Ala., had raised roughly $80,000 to send its marching band to the Cherry Blossom Festival, a costly expedition that’s now uncertain . “For those of us from outside of Washington, it’s a tremendous disappointment that Congress can’t make a decision. They had every opportunity,” said Milford, poking around the Mall vendor trucks in search of an “Obama: One and Done” t-shirt. Down near the monuments, it isn’t just vendors worried about a drop in wages. A group of five contractors working a construction job at the Department of Commerce said they don’t know if they’ll have any work next week. A landscaper whose company has a contract with the EPA said he thinks he’ll still have a job in the event of a shutdown, but only because he’s salaried; his colleagues classified as “laborers” will probably be out of a gig. And Chris Armstrong, a busker who’s been playing his trumpet at 14th and Constitution for seven years, said he expects an empty bucket at his feet next week if the museums are shuttered. “And it’s just politics,” he said. The overriding feeling on the Mall is one of uncertainty – and that extends to the very workers who keep it running. One National Park Service maintenance employee, clad in the agency’s trademark forest green and a pair of protective knee pads, said all the workers in his shop are “worried,” not knowing what their status is and whether they can expect a paycheck come next week. “These are America’s treasures,” he said, gesturing to the Washington Monument while on a hot dog break. “We’re here to keep these treasures going.” As for the possibility of a shutdown, “I just don’t get it,” he said.

Read the full article →

Senate Dems Reject EPA Ban

April 6, 2011

WASHINGTON — Senate Democrats have defeated a Republican effort to ban the Environmental Protection Agency from controlling the gases blamed for global warming. In a 50-50 vote, the Senate rejected a measure by Minority Leader Mitch McConnell and Sen. James Inhofe of Oklahoma. It would have repealed a 2009 finding by federal scientists that climate change caused by greenhouse gases endangers human health and prevented the agency from using existing law to regulate them. The amendment – to a small business bill – needed 60 votes to pass. The Republican-controlled House is expected to pass an identical bill later Wednesday. The White House has threatened to veto it. Senate Democrats proposed less aggressive prohibitions on the EPA. The most votes any of the three alternatives received was 12.

Read the full article →

Two Top Contenders Emerge To Head Consumer Protection Agency

April 6, 2011

April 6, 2011 1:39:49 AM WASHINGTON (Reuters) – The White House is considering Federal Reserve Governor Sarah Raskin and former Michigan Gov. Jennifer Granholm to head a new agency charged with protecting consumers of financial products, a source aware of the process said Tuesday. Raskin, who was recently named by President Barack Obama to a seat on the Fed’s board, is viewed as readily able to win the needed Senate confirmation to the office, which was created by legislation that overhauled U.S. financial regulation. Raskin, a former state regulator and former staffer on the Senate Banking Committee, is also seen by the White House as a candidate that would be acceptable to the financial services industry, the source added. Granholm, who was the first female governor of Michigan, had been mentioned last year as a potential candidate for a seat on the Supreme Court. The source did not say whether other candidates in addition to Raskin and Granholm were under consideration. Obama is under pressure from both ends of the political spectrum to name a head to the Consumer Financial Protection Bureau, which is set to open in July. The agency would be charged with reining in abuses in the financial industry, including shoddy mortgage practices and excessive credit card fees. It also would play a role regulating the so-called shadow financial industry, including pay day lenders. Harvard Professor Elizabeth Warren, an outspoken consumer advocate who had championed the new agency, had been seen as a likely candidate last year. However, she would face a difficult if not insurmountable uphill struggle to confirmation because many Republicans view her as too antagonistic toward the financial industry. Warren, who has been serving as an adviser to Obama and the U.S. Treasury, has been helping to set up the agency for its formal launch. She has been actively reaching out to the industry in an effort to foster a good working relationship. (Writing by Tim Ahmann; editing by Carol Bishopric) Copyright 2011 Thomson Reuters. Click for Restrictions .

Read the full article →

House GOP Readies Stopgap Budget Bill If Needed To Avoid Government Shutdown

April 5, 2011

WASHINGTON — Republican officials say GOP lawmakers are ready with another short-term spending bill if needed to avoid a government shutdown threatened for Friday. These officials say a bill to finance the government for one week will be brought to the House floor if currently deadlocked talks on a longer-term measure fail to yield a compromise. They add the stopgap bill would include about $12 billion in cuts in domestic programs, and include enough money to finance the Defense Department through the end of the budget year on Sept. 30. The current talks are hung up on Republican demands for deeper spending cuts than either the Obama administration or Senate Democrats want. President Barack Obama has invited top lawmakers to the White House for a meeting Tuesday on the issue.

Read the full article →

House Republicans Maneuver For Budget Cuts As Shutdown Looms

April 4, 2011

WASHINGTON — Congressional Republicans maneuvered on two fronts Monday in the federal spending showdown, demanding Democrats agree to more than $33 billion in swift cuts to avoid a government shutdown, even as they readied a separate plan to slash deficits by a staggering $4 trillion over a decade. With little progress evident on the first track, President Barack Obama invited key lawmakers to the White House in search of a deal to avoid a partial shutdown Friday at midnight. “Time is of the essence,” said White House press secretary Jay Carney, announcing plans for the Tuesday meeting. House Speaker John Boehner of Ohio said he would attend on behalf of Republicans. But he also emphasized in a statement that the $33 billion total often cited “is not enough and many of the cuts that the White House and Senate Democrats are talking about are full of smoke and mirrors.” Boehner has said repeatedly he does not want a shutdown. Yet a new public opinion poll underscored the political dilemma confronting the leader of a conservative majority swept into power with the support of tea party supporters. In a survey by the Pew Research Center for the People & the Press, 68 percent of tea party adherents said lawmakers should stick to their principles in the budget negotiations, even if it means the government shuts down. Yet in the population as a whole, only 36 percent supported that view, according to the survey, and only 38 percent of independents, who comprise a key swing vote in any election. In remarks on the Senate floor, Majority Leader Harry Reid emphasized a similar point. Tea party Republicans, the Nevada Democrat said, “stomp their feet and call ‘compromise’ a dirty word and insist on a budget that will hurt America rather than help it.” He said a deeper-cutting House-passed bill “slashes programs for the sake of slashing programs. It chops zeroes off the budget for nothing more than bragging rights.” The House passed the legislation more than a month ago calling for $61 billion in cuts from current levels. In addition, that measure includes dozens of proposals not directly related to spending, including curbs on the Environmental Protection Agency and other federal regulatory agencies and a denial of funding to Planned Parenthood. Unlike the House, the Senate has yet to pass a spending bill to close out the current budget year, now more than half over, and Democrats are divided on how deeply to cut. In several weeks of maneuvering, Congress has agreed on a pair of stopgap bills that cut $10 billion, and Obama has signed them. While much of the leadership’s attention was focused on the Friday deadline, Republicans also looked ahead to Tuesday’s planned launch of the most far-reaching series of deficit-reduction measures in years. Rep. Paul Ryan, R-Wis., chairman of the House Budget Committee, has said the blueprint would cut in excess of $4 trillion from the budget, far more than the $2.2 trillion that Obama claimed in his own blueprint and on a par with recommendations of a bipartisan deficit commission last winter. Other officials said that under Ryan’s proposal, the annual deficit would fall below $1 trillion at the end of the coming fiscal year but would not be erased by the end of the decade. The deficit is currently projected at $1.6 trillion for the current fiscal year, and the administration estimates that under Obama’s budget, it would drop to $1.1 trillion next year and $774 billion in 2021. Republican officials said about $1 trillion in savings under their emerging plan would come from changes to Medicaid, the federal-state program that provides health care for the poor. Spending on hundreds of domestic programs – the accounts at the heart of the talks to avoid a government shutdown – would be returned to levels in effect in 2008, at a savings of hundreds of billions of dollars. One of the most significant changes would occur in Medicare, which provides health care for seniors, but would not affect current beneficiaries or workers age 55 and older. Once eligible, they would receive Medicare coverage from private insurance companies that operate plans approved by the federal government. No details were available on what level of service would be assured, or how much financial support the government would provide. At the same time, officials said Ryan intended to propose restoring at least some of the $129 billion in subsidies that Democrats cut a year ago from a private alternative to traditional Medicare that is already in existence. The Obama administration and other critics maintained that payments to private insurers exceeded the government’s cost for the traditional Medicare program. The officials who described the recommendations did so on condition of anonymity, saying they were not authorized to pre-empt a formal announcement. Republicans intend to move quickly to advance their new blueprint. They hope to have the Budget Committee approve it Wednesday and push it through the House next week. The plan is expected to serve as a rallying point for Republicans who took power in January, but it is also likely to give Democrats a ready target to attack. Democratic Leader Nancy Pelosi has drawn attention in recent days to public opinion surveys reporting widespread skepticism about fundamental changes in Medicare.

Read the full article →

Obama Urges Lawmakers To Reach Budget Agreement To Avert Government Shutdown

April 2, 2011

WASHINGTON — The White House says President Barack Obama urged the leaders of the House and Senate on Saturday to agree on a budget in time to avoid a government shutdown next weekend. Negotiators are discussing spending cuts in the $33 billion range but haven’t agreed on where to make them. Talks were continuing through the weekend. Funding for the government expires at midnight Friday. Obama says a government shutdown would hurt the economy just as it’s beginning to create jobs. After keeping a low profile and delegating the negotiating to the vice president, his budget director and other White House aides, Obama has begun to step up his involvement and press for a deal as the deadline nears. He said Friday that compromise was within reach.

Read the full article →

Video: Austan Goolsbee Says March U.S. Jobs Report Is `Solid’

April 1, 2011

April 1 (Bloomberg) — Austan Goolsbee, chairman of the White House Council of Economic Advisers, discusses U.S. jobs data and fiscal policy. The U.S. economy added 216,000 jobs in March, more than forecast, and the unemployment rate declined to a two-year low of 8.8 percent, the Labor Department said today. Goolsbee speaks with Betty Liu on Bloomberg Television’s “In the Loop.” JPMorgan Funds’ David Kelly also speaks. (Source: Bloomberg)

Read the full article →

Eric Cantor: No Stopgap Spending Bill Beyond April 8

March 29, 2011

WASHINGTON — The No. 2 Republican in the House said Tuesday that the chamber won’t pass another short-term federal funding bill to avert a government shutdown if talks between the GOP and the White House fail to produce a 2011 spending agreement by an April 8 deadline. Majority Leader Rep. Eric Cantor of Virginia said “time is up” and that it’s up to Democrats controlling the White House and the Senate to offer significant spending cuts as part of legislation to fund the government for the rest of the budget year. “We’re going to need to see a deal struck where our members can go home and tell their constituents that we’re doing what we said we would do,” Cantor said. Cantor’s remarks to reporters suggest that Republicans could advance a stopgap bill if an agreement is struck between Democrats and the White House that would need time to draft into legislation and pass through House and Senate. Talks have mostly broken down, however, and the combatants are instead casting blame in a daily back-and-forth public relations battle. Democrats say that GOP leaders, fearing a tea-party rebellion, have pulled back from a near-agreement on an overall figure for spending cuts that would slash President Barack Obama’s budget requests for the current year by $70 billion or more. Republicans say Democrats have yet to offer sizable enough cuts and that some of the many conservative policy additions added in floor debate last month must be included in a final agreement. Current stopgap funding runs out April 8 and failure to act would precipitate a partial shutdown of every government agency, though essential workers such as military troops, FBI agents, homeland security workers and many others would remain on the job. Cantor’s comments signal that such a shutdown is increasingly likely next Friday unless the pace of negotiations accelerates sharply.

Read the full article →

Nell Merlino: What the White House Report on Women Didn’t Say

March 21, 2011

A few weeks ago, the White House released a report on the status of American women: ” Women in America: Indicators of Social and Economic Well-Being .” This was a big deal: it’s the first comprehensive federal report on women since 1963. Yes, you read that right: The last time the federal government produced a report on women was during the Kennedy administration, with Eleanor Roosevelt in charge. Clearly, they’ve had a lot of time to do research. The report illustrates how women’s lives are changing in five different arenas — people, families and income; education; employment; health; and crime and violence. Most of it isn’t especially surprising: Women are marrying later and having fewer children. Women live longer than men but generally face health problems like arthritis, asthma, depression, and obesity. Younger women are more likely than younger men to have a college or a master’s degree. Stuff we already know. But as the founder and president of Count Me In for Women’s Economic Independence, a not-for-profit provider of resources for women growing micro-businesses into million dollar enterprises, I was most interested in the employment area. And for better or for worse, none of it was especially shocking, either. For example, although the number of women and men in the labor force has nearly equalized in recent years, women still earn about 75 percent of what men earn. A big reason is because females don’t go into science and technology-related fields, which typically lead to higher paying occupations (women tend to gravitate toward lower paying jobs, like teaching). But here’s what did surprise me: Nowhere in the 85-page document was there any mention of women-owned businesses. Not a peep. We heard a lot about women and education; we learned how old college-educated women are when they marry (the median age is 30, fyi). But there was not one word about the ten-and-a-half million women who are in business for themselves. Granted, President Kennedy’s report didn’t mention women business owners. But that’s because we didn’t even count them in the US Census until the 1970′s, when women won the right to business credit in their own name. I’m not quite sure why women business-owners were left out of the Obama administration’s report. How can you expect to create jobs if you’re not speaking to the people who create them? It’s not like women-owned businesses don’t account for much in this economy. According to an October, 2009 study from the Center for Women’s Business Research — a bi-partisan federal government council created to serve as an independent source of advice and counsel to the President, Congress, and the U.S. Small Business Administration on economic issues of importance to women business owners — women-owned businesses contribute nearly three trillion dollars to the US economy, and create or maintain 23 million jobs [ pdf ]. Or look at it this way: If women-owned businesses were their own country, they would have the 5th largest GDP in the world, ahead of France, Britain, Italy. As it happens, as I write this the president is in Brazil, which some speculate will soon have the 5th largest GDP. Never mind the trouble in Libya, Yemen and Japan; Obama obviously thought it was critical enough to the US economy to figure out how to increase trade and exports with Brazil. Well, what about increasing the capacity of women-owned businesses and elevating their exports? There’s more. A December 2009 report by The Guardian Life Small Business Research Institute found that women-owned small businesses will generate more than half of the 9.72 million new small — business jobs expected to be created — and roughly one-third of the 15.3 million total new jobs anticipated — by the Bureau of Labor Statistics by 2018. It’s too bad the White House didn’t feel the need to mention this, because it’s precisely the sort of thing women need to hear. Women — no, people — get inspired by one another. Women entrepreneurs achieve the most success when they operate in a cohort, challenging and pushing each other forward. Tina Rosenberg’s Join The Club: How Peer Pressure Can Transform the World demonstrates how peer pressure can be an agent of positive change and can modify behavior. What’s more, female entrepreneurs are sadly lacking in role models. I know this White House is committed to creating jobs. And women business owners of America are doing their share by employing 16 percent of the workforce and climbing. I just hope we don’t have to wait another 45 years to be visible to 1600 Pennsylvania Ave.

Read the full article →

Obama Executes Above-The-Fray Strategy On High-Profile Issues

March 12, 2011

WASHINGTON — Call it an above-the-fray strategy. On hot issues that Democrats and Republicans have found cause to fret about – from spending reductions to state labor disputes – President Barack Obama is keeping a low profile. Democrats such as Sen. Joe Manchin of West Virginia want him more publicly engaged in budget negotiations in Congress; some lawmakers want him to denounce Republican proposed program cuts. Rep. Keith Ellison, D-Wis., and others in the party want him to go to Wisconsin to stand in solidarity with public unions fighting to retain their bargaining rights. Some lawmakers in both parties want him to take a greater lead against Libya’s Moammar Gadhafi. But the White House sees no upside in outspokenness. “There is a very strong gravitational pull in this town to try to drag the president to every single political skirmish and news story,” said White House communications director Dan Pfeiffer. Pfeiffer said Obama has enough issues on his agenda and said the White House doesn’t believe the public wants the president weighing in on an array of subjects. “They want him leading the country; they don’t want him serving as a cable commentator for the issue of the day,” he said. At a news conference Friday, Obama defended the role he has played in seeking a compromise on spending cuts in the current federal budget to avoid a government shutdown. But he made it clear that resolving the impasse rests mainly with congressional leaders. “This is an appropriations task,” he said, putting the issue firmly in Congress’ domain. Manchin said an agreement could only be reached if Obama led the negotiations. “And, right now – that is not happening,” he said. But Obama noted that he has spoken to congressional leaders “about how they should approach this budget problem.” That doesn’t preclude a White House role. White House officials point to the negotiations in December that produced a deal with Senate GOP leader Mitch McConnell of Kentucky on extending Bush-era tax rates as a template for other deals. But unlike the tax deal, when both sides got something they wanted, the debate over spending would require both to give something up while gaining little. While Democrats have attacked the Republican spending cuts as cruel or heartless, Obama has avoided such loaded language. He has drawn a line at education spending, saying he would not support cuts that reduce money for schools or college tuition. “What I’ve done is, every day I talk to my team,” the president said, responding directly to criticism that he has been absent from the debate. “I give them instructions in terms of how they can participate in the negotiations, indicate what’s acceptable, indicate what’s not acceptable.” On the Wisconsin labor dispute, Obama initially appeared to be stepping into that fight when he told a Milwaukee television station that GOP Gov. Scott Walker’s effort to make it harder for public employees to engage in collective bargaining “seems like more of an assault on unions.” Around the same time, his political arm at the Democratic National Committee, Organizing for America, coordinated with unions that were mobilizing demonstrators. But the DNC has played down its role, and Obama has left most of the criticism to his spokesman, Jay Carney. The Wisconsin Legislature this past week passed the collective bargaining restrictions and Walker signed the measure into law Friday. Ellison, together with liberal commentators and some union leaders, demanded that Obama go to the state in support of the teachers and other public sector workers. But White House officials believe the demonstrators have made the best case on their own and point to public opinion surveys that indicated support for bargaining rights. Republicans already were portraying Obama as a tool of labor for his remarks to the Wisconsin television station and for the logistical assistance that his political arm had supplied. White House officials say a higher profile on the issue by the president would have been counterproductive and could have interfered with a naturally occurring protest. “In Wisconsin, it’s been a much more organic movement there,” said David DiMartino, a Democratic political consultant and former Senate staffer. “The White House doesn’t need to get involved.” The bipartisan criticism of Obama on Libya has less to do with low profile rhetoric – the president has been vocal in his demand that Gadhafi step down – than with the direction of the president’s policy. Sens. John Kerry, D-Mass., John McCain, R-Ariz., and Joe Lieberman, a Connecticut independent, have called for the United States to impose a no-fly zone over Libyan airspace. Administration officials have shown little enthusiasm for such a step. They don’t want to act unilaterally and would only consider it if it had widespread international support. As important, they point out enforcing a no-fly zone would require military action, including attacks on Libyan anti-aircraft defenses. Asked at his news conference if he would use any means necessary to force Gadhafi’s removal, Obama recited the steps already taken, including what he called “the largest financial seizure of assets in our history.” As for military action, he said: “Anytime I send United States forces into a potentially hostile situation, there are risks involved and there are consequences. And it is my job as president to make sure that we have considered all those risks. “It’s also important from a political perspective to, as much as possible, maintain the strong international coalition that we have right now.”

Read the full article →

Alan Simpson Rants About ‘Snoopy Snoopy Poop Dogg’

March 7, 2011

Alan Simpson, co-chairman of President Barack Obama’s debt commission, furthered his penchant for colorful commentary Monday when he unleashed a rambling diatribe targeting what he characterized as a generation of disrespectful youth and their confused grandparents. “This is a fakery,” the former Wyoming senator said on Fox News, referring to retirement-age Americans expressing fears about having Social Security funds slashed. “If they care at all about their children or grandchildren, and sometimes I doubt that — I think, you know, grandchildren now don’t write a thank-you for the Christmas presents, they’re walking on their pants with the cap on backwards listening to the enema man and Snoopy Snoopy Poop Dogg, and they don’t like them!” Simpson has been a proponent of considering reforms to entitlement programs such as Medicare, Medicaid and Social Security in the effort to reduce the deficit, suggestions that so far appear to have been ignored in the Obama administration’s budget proposals. In February, Simpson exhibited his flair for the dramatic when he called the White House’s spending cut effort a “sparrow belch in the midst of the typhoon.” The deficit, he later said , was “a stink bomb in the garden party and it’s never going to go away.” The debt commission co-chairman also came under heavy fire last year after it was revealed that he had referred to the nation as “a milk cow with 310 million tits” in an email to the executive director of the Older Women’s League.

Read the full article →

Video: Sperling Says U.S. Jobless Rate `Positive Step Foward’

March 4, 2011

March 4 (Bloomberg) — White House National Economic Policy Director Gene Sperling talks about the February U.S. jobs report released by the Labor Department today. The U.S. jobless rate unexpectedly fell to 8.9 percent in February, the lowest in almost two years, and employers added 192,000 jobs in a sign of growing confidence in the recovery. Sperling speaks with Peter Cook on Bloomberg Television’s “Bottom Line.” (Source: Bloomberg)

Read the full article →

John Dearborn: Obama Aims To Transform America’s "Rust-Belt" Into A "Tech-Belt"

March 2, 2011

Imagine yourself running a non-profit in one of the hardest hit economic areas of the country and feeling like you’re making progress with your mission of advancing economic development through a focus in innovation and entrepreneurship. Then, imagine the White House calling and saying that they were so excited by what they were observing in terms of the state of change in the region that they wanted to come look and learn for themselves. Well that’s exactly what happened here. On February 22, President Obama visited Cleveland with an impressive team of five cabinet members and two senior administration officials for the first in a series of Winning the Future Forum on Small Business gatherings across the country. He met with an invited group of philanthropic and corporate community leaders and high growth and main street entrepreneurs to talk about everything from clean technology to exports. I was lucky enough to be part of that intimate and engaged crowd, both as a representative of JumpStart, a nonprofit working to increase the impact of entrepreneurial ventures and the ecosystems supporting their growth, and as a volunteer note-taker for one of the five breakout sessions. In my roundtable discussion on entrepreneurship, I was very surprised to find that getting money wasn’t the top topic for all participants, as one might guess. For instance, Jodi Marchewitz, an IT entrepreneur whose company iGuiders develops solutions to improve online search and lead generation, commented that her problem was connecting to many more people like Steve Case who had “been there, done that.” Jodi voiced that, more than anything, she was facing issues of scalability and wanted to connect with others across the country who could offer business development opportunities and help with key challenges. Although she had resources regionally, she hoped to find assistance from successful entrepreneurs from other parts of the country, like Silicon Valley. And whether the discussion among entrepreneurs is around connecting to consumers, mentoring or workforce development, clearly there are many obstacles emerging companies face. It’s all about threats to success. And from all indications, the same is true nationally. The global economy is a threat to our way life. Let’s admit it. Challenged on all sides, America is struggling. The United States ranked fifth in venture capital investment (Sweden was first), fifth in corporate research and development spending (Japan led), and fourth in science and technology researchers (again, Sweden was first) according to the Information Technology & Innovation Foundation . And, although China isn’t more technologically advanced than the U.S., its economy has been growing a rate of about ten percent for the last decade, far surpassing that of the U.S. Getting back ahead of the pack isn’t as clear of a proposition as it was during the Cold War. When the Soviet Union launched Sputnik 1, the first Earth-orbiting artificial satellite, in the fall of 1957, Uncle Sam wasn’t going to take second place behind the USSR. Almost immediately, the federal government took action, sinking billions of dollars into R&D, the Department of Defense, science and math education and the creation of NASA to rectify the situation. In fact, the “space race” was conceived, financed, and led almost solely by the national government. If only the solution to getting ahead in today’s competitive global economy could be as top down and direct. In his State of the Union address and during his recent visit to Cleveland, President Obama asserted that America needed to “out-build, out-innovate and out-educate the rest of the world” to win the future. Doing so certainly would strengthen the American economy and create much-needed jobs. Currently, 14 million Americans are unemployed, and nearly half of those individuals have been out of work for 27 weeks or more . With its Startup America Initiative, the White House is focused on entrepreneurship since two out of every three new jobs are created by small businesses, and a lack of job creation is a leading factor in our nation’s 9 percent unemployment rate . Innovative small businesse — those built on transformative technologies with high-growth potential — are that much more impactful. In fact, all net new jobs have been created by firms under five years old . Young, high growth entrepreneurial companies make higher relative investments in innovation than their larger counterparts and are responsible for 95 percent of transformative inventions . But, while fostering entrepreneurship and accelerating high growth startups are sound tactics, the task is daunting, at best. A new Kauffman Foundation report states that we need to stimulate the creation of 60 new billion-dollar companies to produce 1 percent growth. How can a cash-strapped federal government working with a nation of deficit-ridden states solve such a significant and multifaceted problem in a compressed period of time? One possibility that would not cost taxpayers a dime and that is being debated in the Senate is to direct a greater portion of government agency funds to support small business research and development activities . Agencies with more than $100 million in extramural R&D are required to allocate a percentage of their budgets exclusively for small businesses. The current 2.5 percent set-aside resulted in the availability of approximately $2.5 billion in fiscal year 2009. If that could be increased by even a percent, the impact would be enormous. Roughly another billion dollars seems like a lot of money, but with so much transformative innovation occurring within the startup realm, seed stage money directed towards innovation can be the lifeblood a young company needs to achieve commercialization of their ideas. Ultimately, it should make America more innovative, employ engineers and scientists and create significant numbers of new jobs. But this alone does not solve our country’s problems and while the Administration already has redirected some resources and created programs at the federal level, including directing $2 billion over the next five years to match private sector investments by way of the Small Business Administration (SBA), perhaps one of the most vital things the administration can achieve through its initiative is the uniting of private sector resources. The Startup America Partnership, the private sector’s response to the White House’s “call to action,” is an alliance of the country’s most innovative entrepreneurs, investors, corporations, and foundations devoted to the issue. If successfully mobilized, this public, private and philanthropic partnership (4P) should result in greater access to capital, spur the development of regional accelerators and aid in the development and sharing of best practice, economic development models. In other words, what has already happened in the microcosm of the 21 counties of Northeast Ohio could in part, or in whole, be used as an example for other economically challenged areas across the country. These “4P” efforts are what will generate the type of entrepreneurial activity that can begin to create successful companies, globally competitive innovations and significant jobs in the next decade. And the White House knows this. When President Obama visited Cleveland last month, he made it abundantly clear that he was well-versed in the creative, cooperative work done in Greater Cleveland by JumpStart, NorTech, BioEnterprise, Magnet, GLIDE and others to expand the impact of entrepreneurial ventures and transform our “rust belt” into a “tech-belt.” By bringing the President, five cabinet and two senior administration members to a Midwest city whose venture capital investment growth managed to outpace much of the country in 2010, the White House has shone a spotlight on the potential of entrepreneurship for economic recovery. Merely hosting this forum on small business tells me that the White House is serious about championing a national movement to create jobs. And kicking off these forums in a city working to pull itself up by its bootstraps — led by private and philanthropic sectors — tells me the administration knows this needs to be a bottoms-up movement. President Obama and his administration are doing what they need to do: shining the brightest spotlight possible on entrepreneurship as a solution to our nation’s job crisis. Now it’s up to private and philanthropic entities working across cities, regions, states, and the country to come together and leverage this unique moment in time.

Read the full article →

Economists’ Number 1 Risk: The Budget Deficit

February 28, 2011

WASHINGTON: The massive U.S. budget deficit is the gravest threat facing the economy, topping high unemployment and the risk of inflation or deflation, according to a survey of forecasters released on Monday. The National Association for Business Economics said its 47-member panel of forecasters increased its estimate for the 2011 federal deficit to $1.4 trillion from $1.1 trillion in its previous survey in November. “Panelists continue to characterize excessive federal indebtedness as their single greatest concern,” with state and local government debt the second-biggest worry, the survey said. It was conducted between January 25 and February 9. The panel’s deficit forecast is lower than the Obama administration projection of a record $1.65 trillion this fiscal year, or 10.9 percent of U.S. gross domestic product. Although the White House budget proposes $1.1 trillion in deficit reductions over 10 years, Republicans in the House of Representatives say that is not enough. Republicans are pressuring the administration to reduce spending by $61 billion by September, and the dispute threatens to shut down the government if Democrats and the White House refuse to go along. NABE panelists tweaked their previous stance on the Federal Reserve’s decision to pump more money into the economy by buying government bonds. Most panelists now view the Fed’s decision to buy an additional $600 billion in longer-term Treasury securities as having either somewhat diminished the risk of deflation or having had no impact on inflation whatsoever. November’s survey showed economists worried that the bond purchases could stoke inflation. Panelists forecast core inflation, which excludes volatile food and energy prices, to rise gradually from 0.8 percent in the final quarter of last year to 1.2 percent in 2011. GDP growth for 2011 is expected to advance 3.3 percent year over year, up from the panel’s previous estimate of 2.6 percent, the survey said. “Factors supporting growth going forward include pent-up consumer and business demand, strong growth in foreign economies, especially those in Asia, and accommodative monetary policy,” NABE President Richard Wobbekind said in a statement. “Factors restraining growth include financial headwinds, uncertainty about future federal government economic policies, a tepid housing market and sustained high unemployment,” he said. (Reporting by Rachelle Younglai; Editing by Dan Grebler) Copyright 2010 Thomson Reuters. Click for Restrictions .

Read the full article →

Michele Bachmann: Tax Code ‘A Weapon Of Mass Destruction’

February 20, 2011

Rep. Michele Bachmann (R-Minn.) criticized the country’s current tax code as “a weapon of mass destruction” in a speech she delivered Saturday night to local Republican activists in South Carolina, the Spartanburg Herald-Journal reports . According to the local outlet, the Tea Party favorite called for the system to be abolished. “We need a radically different system,” she stressed to a crowd of nearly 200 guests. In speaking out on the state of the U.S. economy, Bachmann didn’t hold back in taking aim at President Barack Obama’s handling of the issue. “Our Peace Prize-winning president is very busy bowing these days to kings,” she reportedly said . “He is bending down to dictators, and he is brown-nosing the elites that are in Europe, and he’s babying the jihadists who are following Sharia-compliant terrorism.” Sharing her take on how the White House has handled the recent uprisings in Egypt and Iran , Bachmann suggested, “[Obama's] making Jimmy Carter look like a Rambo tough-guy.” The conservative congresswoman’s trip to South Carolina has led some to speculate she may be mulling a bid for the White House in 2012. Despite once denying a presidential campaign could be in her political future, the Republican lawmaker has more recently signaled a run may not be off the table. “I’m hopeful and very optimistic about where we’re going to go in 2012,” Bachmann said at one stop on her trip, according to the Associated Press. Bachmann has not decided if she will run for president in 2012. Her consideration is taking her to other early contest states including Iowa, New Hampshire and Nevada. She drew applause when she defended the tea party activists, saying they are simply people who think taxes and the deficit are too high and support the U.S. Constitution. Bachmann reportedly lauded South Carolina as a “GOP paradise.”

Read the full article →

Why Obama’s Walking Fine Line On GOP Slash-And-Burn Budget Proposals

February 18, 2011

Clearly, the president — as would be expected — opposes the GOP cuts. But the White House is not at this point picking a fight over the House Republican effort to slash non-discretionary funding covering scores of government services. There are several reasons why Obama would pass up the chance to bash cop-firing GOPers…

Read the full article →

WATCH LIVE: Obama Holds White House Press Conference

February 15, 2011

President Obama will hold a press conference at 11:00 AM ET. The president is expected to discuss his budget , which the White House unveiled yesterday. Scroll down for live video and updates from the press conference. UPDATE: The press conference has ended. Click here for more.

Read the full article →

Video: Psaki Says Obama Seeks Bipartisanship on Budget Issues

February 14, 2011

Feb. 14 (Bloomberg) — Jennifer Psaki, deputy communications director at the White House, talks about President Barack Obama’s $3.7 trillion U.S. budget proposal. Obama’s budget would reduce deficits by $1.1 trillion over a decade, setting up a battle with Republicans who have already deemed the plan insufficient to reduce federal debt. She speaks with Julianna Goldman, Carol Massar and Matt Miller on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

Read the full article →

Video: Goolsbee Says U.S. Jobs Report Reflects `Uncertainties’

February 4, 2011

Feb. 4 (Bloomberg) — Austan Goolsbee, chairman of the White House Council of Economic Advisers, talks about data showing U.S. unemployment declined to 9 percent last month from 9.4 percent in December. The number of new jobs rose 36,000, according to the Labor Department. Goolsbee, speaking with Betty Liu on Bloomberg Television’s “In the Loop,” also discusses President Obama’s fiscal policy and protests in Egypt. (Source: Bloomberg)

Read the full article →