February 26, 2008

Obama-McCain Squabble Injected Into Army Readiness Hearing

A controversial anecdote relayed by Democratic presidential candidate Barack Obama in last week's Texas debate wended its way into a Senate Armed Forces hearing on Army readiness today.

Obama claimed that he'd "heard from an Army captain who was the head of a rifle platoon" that was sent to Afghanistan grossly undermanned and underequipped. "They were actually capturing Taliban weapons, because it was easier to get Taliban weapons than it was for them to get properly equipped by our current commander in chief," Obama said during Thursday night's debate.

Lindsey Graham, who lately has been stumping hard for Republican John McCain, relayed the story to Army Secretary Peter Geren and Army Chief of Staff William Casey during the hearing. "Has Sen. Obama talked to you or anyone in the department about this?" the South Carolina Republican asked.

"I have not discussed this with Sen. Obama," Geren replied, before handing the baton to Casey.

"As we looked into this, the best we could tell was this incident occurred back in 2003 and 2004," Casey said. "We talked to the brigade commander, looked at readiness reports. The brigade was manned over 100 percent and stayed 100 percent manned when they were there."

Continue reading "Obama-McCain Squabble Injected Into Army Readiness Hearing"

Posted at 12:26 PM
Posted to: Afghanistan, Barack Obama, Bush Administration, Campaigns, Congress, Democrats, Donald Rumsfeld, Iraq, John McCain, Middle East, Military, President Bush, Republicans, Robert Gates, Senate, WH 2008
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February 20, 2008

If Speeches Were Horses, Clinton Would Be So Dead Right Now

Either the Obama campaign is too hopeful or too darn cynical for its own good.

And either the Clinton campaign is too arrogant or too tone-deaf for its own good.

Beware the punditocracy.

Whereas two weeks ago it was premature to call Ohio and Texas do-or-die states for Hillary Rodham Clinton, that is not the case today. In most other election years, Wisconsin and Hawaii would be two "so what?" states. Not this year, and not on the heels of three straight primary/caucus sweeps for Barack Obama.

Out of the 10 contests Obama's won since the Super Tuesday draw, Wisconsin's tilt toward Obama is the most significant. (NJ's James Barnes has a feature on this today.) Obama is eating into all of Clinton's constituents, including older white men, single white women and lower-income Democrats. Now the question everyone is asking is whether Camp Clinton can slow this train down.

Continue reading "If Speeches Were Horses, Clinton Would Be So Dead Right Now"

Posted at 5:40 PM
Posted to: Barack Obama, Bush Administration, Campaigns, Democrats, Hillary Rodham Clinton, John McCain, President Bush, Republicans, WH 2008
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Can These Guys Run Pakistan?

Pervez Musharraf, who seized power illegally and whose unpopularity now prompts rioting in Pakistan's streets, isn't going anywhere.

Not if he can help it, anyway. In an interview with the Wall Street Journal (subscription), Musharraf stubbornly insisted on his relevance to Pakistani politics and said he would help shepherd in the newly elected government.

But the leaders of the two parties that won big in Monday's parliamentary election -- former Prime Minister Nawaz Sharif of the Pakistan Muslim League-N Party and Asif Ali Zardari of the Pakistan Peoples Party -- called on Musharraf to step down. The two are meeting today to discuss, in all likelihood, forming a broad-based coalition government that does not include Musharraf.

"He used to say that when people expressed no confidence in him that he would leave. Now the people have announced their decision," said Sharif, who was tossed out of office in the military coup led by the former general in 1999.

Continue reading "Can These Guys Run Pakistan?"

Posted at 9:17 AM
Posted to: Afghanistan, Al-Qaida, Asia, Bush Administration, Pakistan, President Bush, Terrorism
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February 15, 2008

FISA Fight Spills Over Into Recess

President Bush and Republican congressional leaders today charged that House Democratic leaders put the nation at risk by failing to move legislation renewing the Foreign Intelligence Surveillance Act.

"By blocking this piece of legislation, our country is more in danger of an attack," Bush said following a meeting at the White House with GOP leaders. "By not giving the professionals the tools they need, it's going to be a lot harder to do the job we need to be able to defend America."

House Majority Leader Steny Hoyer, D-Md., said the president's claims of imminent danger were overblown because Bush would still have authority to allow eavesdropping on suspected terrorists after the law expires at midnight. "A wide range of national security experts has made clear that the president and our intelligence community have all the tools they need to protect our nation," Hoyer said. He called Bush's remarks "wrong, divisive and nothing more than fear-mongering."

Continue reading "FISA Fight Spills Over Into Recess"

Posted at 3:20 PM
Posted to: Bush Administration, Congress, House, President Bush, Senate, Terrorism
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Bush & Rice Head Into Africa

President Bush embarks on a tour of five African countries tonight and, as the New York Times puts it, the trip will "thrust himself into the role of peacemaker" as he tries to help international leaders address recent crises in the region.

He won't be alone: Secretary of State Condoleezza Rice will be in Kenya, one of the administration's greatest areas of concern. In Nairobi on Monday, Rice will meet with former U.N. Secretary-General Kofi Annan, who has been in the country since mid-January to try to mediate a bloody conflict sparked by Kenya's contested presidential election at the end of last year.

Annan said today that a deal between the two rival factions was "very close," but that a final solution about a power-sharing government had not yet been reached.

But Bush, for his part, is sticking to friendlier territory: Benin, Tanzania, Rwanda, Ghana and Liberia. At a speech yesterday at the Smithsonian's African Museum of Art, the president offered a rosy view of the five nations: "Each of these countries is blessed with natural beauty, vibrant culture, and an unmistakable spirit of energy and optimism. Africa in the 21st century is a continent of potential.... It's a place where democracy is advancing, where economies are growing, and leaders are meeting challenges with purpose and determination."

Continue reading "Bush & Rice Head Into Africa"

Posted at 12:15 PM
Posted to: Africa, Bush Administration, Condoleezza Rice, Kenya, President Bush, Sudan
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February 14, 2008

House GOP Walks Out Over Contempt Vote, FISA

UPDATED.

Enraged House Republicans staged a walkout from the floor after Democrats sought a contempt of Congress vote for White House Chief of Staff Joshua Bolten and former counsel Harriet Miers.

"We will not stand for this and we will not stay for this," said Minority Leader John Boehner, speaking from the House floor. "I would ask my House Republican colleagues and those who believe that we should be here protecting the American people to not vote on this bill. Let's just get up and leave."

And with that, a few dozen House GOP lawmakers got up and left. They convened on the Capitol steps to address the cameras.

Continue reading "House GOP Walks Out Over Contempt Vote, FISA"

Posted at 3:53 PM
Posted to: Attorney Scandal, Bush Administration, Congress, Harriet Miers, Homeland Security, House, President Bush, Senate, Terrorism
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Lincoln Chafee Endorses Obama

Looks like the GOP has its very own Joe Lieberman: former Rhode Island Sen. Lincoln Chafee.

Chafee, the only Republican to vote against giving President Bush the authority to invade Iraq, is bypassing former colleague John McCain in favor of Democratic presidential candidate Barack Obama, who wasn't yet in the Senate for the 2002 vote but opposed the war as an Illinois lawmaker.

"I believe Senator Obama is the best candidate to restore American credibility, to restore our confidence to be moral and just, and to bring people together to solve the complex issues such as the economy, the environment and global stability," Chafee said in a conference call with reporters.

Chafee's endorsement comes as McCain stumps for votes in the Ocean State later today.

Chafee, always a popular lawmaker in his state, was swept out of office on an anti-GOP tide in 2006. His successor, Sheldon Whitehouse, campaigned on an argument for Democratic control of the Senate to challenge President Bush's authority. The Republican Party didn't exactly rush to Chafee's defense, and last year Chafee left the GOP to become an independent.

The Providence Journal reports that Chafee excoriates the leaders of both parties, particularly on the Iraq war vote, in a soon-to-be-released memoir.

Posted at 11:46 AM
Posted to: Barack Obama, Bush Administration, Campaigns, Democrats, John McCain, President Bush, Republicans, WH 2008
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February 13, 2008

Bush, Congress Enjoy Feel-Good Moment

A historically unpopular president and an even more unpopular Congress came together today to remind Americans that they might not be so worthless after all.

Lawmakers squeezed around President Bush in the White House this afternoon as he signed into law a $168 billion economic stimulus package that will mean up to $1,200 in tax rebates for working couples plus $300 per child.

"A lot of folks in America probably are saying it's impossible for those of us in Washington to find common ground and reach compromise on important issues. I don't feel that way, and I know the leaders don't feel that way," Bush said, opening the signing ceremony. "As a result, we have come together on a single mission, and that is to put the people's interest first."

Lawmakers who have been highly critical of Bush's economic policies and of the stimulus bill itself, which was forged through intense negotiations and compromise, beamed in the background.

Continue reading "Bush, Congress Enjoy Feel-Good Moment"

Posted at 3:05 PM
Posted to: Bush Administration, Congress, Economy, President Bush, Taxes
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February 12, 2008

WH '08: The Hurry-Up Primary Campaign

In homage to the great sportswriter (and Brookings Institution egghead) Gregg Easterbrook, we're dubbing today's spate of regional votes the Potomac Drainage Basin Primary. (It's no worse than any of the other nicknames we've seen.)

So in case you missed it, there's a primary vote happening today in Virginia, Maryland and right here in the District. Barack Obama's going to sweep those votes, and Hillary Rodham Clinton is going to keep losing contests until March 4's Ohio and Texas primaries, which she might also lose. Wow, those are a long way away. She's a goner.

And... scene.

So goes our cheeky ribbing of the media speculation-a-thon regarding today's primaries, which according to MSM bylaws a) must have a cutesy nickname (Chesapeake or Crab Cake?) and b) must be predictive of the nomination winner and, while we're at it, the winner of the November general election vote.

Continue reading "WH '08: The Hurry-Up Primary Campaign"

Posted at 6:10 PM
Posted to: Barack Obama, Bush Administration, Campaigns, Democrats, Hillary Rodham Clinton, John McCain, Mike Huckabee, Mitt Romney, President Bush, Republicans, Rudy Giuliani, WH 2008
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Bush Speaks Out On Hate Crimes

President Bush issued a forceful indictment of hate crimes during a White House event honoring Black History Month.

"The noose is not a symbol of prairie justice, but of gross injustice. Displaying one is not a harmless prank," Bush said, referring to a "a number of media reports" of noose displays. "And lynching is not a word to be mentioned in jest. As a civil society, we must understand that noose displays and lynching jokes have no place in a civil society. They are wrong and have no place in America today."

Bush's remarks come on the 199th birthday of Abraham Lincoln.

The District has been home to several high-profile racial incidents in recent months. Several contractors were fired after a Jan. 22 incident in which a noose was found in a break room at the site of the new Washington Nationals stadium. D.C. legislators have since introduced a bill making the display of nooses a hate crime.

Continue reading "Bush Speaks Out On Hate Crimes"

Posted at 3:41 PM
Posted to: Bush Administration, President Bush, Race
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Mortgage Crisis Spreads, White House Responds

Treasury Secretary Henry Paulson and HUD Secretary Alphonso Jackson announced a new mortgage rescue plan that would help all kinds of borrowers, not just those who took out subprime loans.

Dubbed Project Lifeline, the program would enlist the six major mortgage lenders in a "targeted outreach to homeowners 90 days or more delinquent" that would "pause" the foreclosure process. Though the Bush administration continues to insist that the economy hasn't fallen into recession, today's announcement was an acknowledgement that better-off Americans are also suffering as a result of the lending crash.

"Project Lifeline has the potential to offer new solutions to responsible and able homeowners who want to keep their homes," Paulson said at a joint press conference with Jackson. Describing the effort to help struggling homeowners as "evolving," Paulson added, "As our economy works through this difficult period, we will look at additional opportunities to try to prevent additional foreclosures."

Continue reading "Mortgage Crisis Spreads, White House Responds"

Posted at 12:38 PM
Posted to: Bush Administration, Economy, President Bush
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February 07, 2008

Storm-Hit States Pick Up The Pieces

Cleanup and recovery efforts continue in Alabama, Arkansas, Kentucky, Mississippi and Tennessee, where a cluster of tornadoes and storms have killed at least 57 people. More than half of the fatalities occurred in hard-hit Tennessee.

President Bush is touring the Volunteer State tomorrow. Federal assistance has been authorized for the five states, and FEMA crews are already on the ground. USA Today reports that Tuesday night was "the nation's deadliest barrage of tornadoes since 76 people were killed in Pennsylvania and Ohio on May 31, 1985."

The Washington Post homes in on the story of an 11-month-old Tennessee baby found alive in the wreckage, yards away from where his mother was found. She did not survive.

The Memphis Commercial Appeal and Arkansas Democrat-Gazette have local reports of the recovery effort.

Posted at 3:30 PM
Posted to: Bush Administration, President Bush
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February 06, 2008

What's The Point Of NATO, Anyway?

The U.S. and Britain have been fighting an uphill battle to win deeper commitments from NATO allies in Afghanistan. With recent independent reports warning that Afghanistan may be tipping back into failed statehood, and a critical upcoming vote in Canada that could determine that country's ongoing security contributions, NATO member nations are facing a kind of do-or-die moment.

The question at hand is: What is NATO's mission in the 21st century?

NATO was formed during the Cold War to fend off the Soviet threat. It was a mutual security pact, in which an attack on one was to be perceived as an attack on all.

After the 9/11 attacks, it became clear that al-Qaida was now the biggest threat facing the West. With little debate, NATO's mission was updated for the 21st century, and forces were sent to Afghanistan.

More than six years later, the success of NATO's fight against the Taliban and al-Qaida is in dispute. The war in Iraq sapped resources from Afghanistan, and more importantly sapped confidence in the United States' and Britain's leadership roles there. Nations have withdrawn forces over the last several years, and now the fighting -- and dying -- falls disproportionately on the U.S., Britain, the Netherlands and Canada.

Member nations privately blame the U.S. and Britain for being so preoccupied with the war in Iraq -- overwhelmingly unpopular among member nations -- that they delivered a seemingly half-hearted effort in Afghanistan. Washington and 10 Downing Street vehemently deny this is the case.

Without positing it directly, Secretary of State Condoleezza Rice is challenging member nations to remember the point of NATO and step up their contributions. "I do think the alliance is facing a real test here. And it is a test of the alliance's strength," she said at a press conference with British Foreign Secretary David Miliband today.

Continue reading "What's The Point Of NATO, Anyway?"

Posted at 5:30 PM
Posted to: Afghanistan, Al-Qaida, Bush Administration, Europe, Germany, Iraq, Middle East, Military, Pakistan, President Bush, Robert Gates, Terrorism, U.K.
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White House Keeping Eye On Storm Aftermath

The White House sought to convey a message to the thousands of victims of deadly storms that hit the South last night: We're on top of it.

Following the fumbled response to Hurricane Katrina in 2005, the Bush administration has been closely watched during subsequent natural disasters. Yesterday, President Bush authorized emergency federal disaster assistance to Missouri, and this morning, he offered thoughts and prayers to the victims.

"I do want the people in these states to know the American people are standing with them," he said, adding that he pledged federal disaster assistance to the affected states.

More than 50 people have died in the violent storms and tornadoes that hit Alabama, Arkansas, Kentucky and Tennessee, according to CNN. States of emergency have been declared throughout those states, and teams from the Federal Emergency Management Agency are on the ground.

Continue reading "White House Keeping Eye On Storm Aftermath"

Posted at 1:15 PM
Posted to: Bush Administration, Homeland Security, Katrina, President Bush
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Big Fat Super Tuesday: It's Still Not Over!

1:58. Obama's declared the "winner winner" in Missouri. He and Clinton are running about even in New Mexico.

In the Republican field, it's near impossible to see how anyone stops McCain. A comeback for the history books, surely. It will be interesting to see how he's received Thursday at the annual Conservative Political Action Conference, which he skipped last year because there was so much hostility toward him. The Gate will be there.

Meanwhile, Romney is meeting with his top advisers tomorrow to discuss his future, the Boston Globe reports. He's been accusing Huckabee of splitting the evangelical vote, but Huckabee's supporters are more likely to go to McCain should their guy bail out. The South was in a pretty anti-Romney mood today, and there's reason to believe this has something to do with religion.

Knowingly or not, Huckabee has used the religion wedge to his advantage. Some would say knowingly, although he hasn't really been called out on it.

We're going to call it a night. Check back tomorrow later today for those lingering New Mexico and Alaska results.

1:26. MSNBC's Chuck Todd did the math, and he projects Obama and Clinton will be about tied in delegate counts. They will have to soldier on in the upcoming contests: Louisiana (2/9), Washington (2/9), Maine (2/10), D.C. (2/12), Maryland (2/12), Virginia (2/12) and probably beyond.

Continue reading "Big Fat Super Tuesday: It's Still Not Over!"

Posted at 1:59 AM
Posted to: Barack Obama, Campaigns, Democrats, George H.W. Bush, Hillary Rodham Clinton, John McCain, Mike Gravel, Mike Huckabee, Mitt Romney, President Bush, Republicans, WH 2008
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February 05, 2008

¡Martes Gigante!

Hillary Rodham Clinton and Barack Obama are dueling for the coveted Latino vote in California, Arizona, Illinois and New Jersey. Though Clinton was viewed as having cornered this demographic, Obama's late-breaking sweep of support following his South Carolina primary victory could net him a significant portion of the Latino vote.

Carin Zissis of the New York-based Americas Society/Council of the Americas breaks down where these voters might go today.

Continue reading "¡Martes Gigante!"

Posted at 4:05 PM
Posted to: Barack Obama, Bush Administration, Campaigns, Democrats, Hillary Rodham Clinton, John McCain, President Bush, Republicans, WH 2008
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White House Courting Comedy Controversy Again

After playing it safe with dead-guy impressionist Rich Little last year, the White House has decided on a, um, more contemporary choice for this year's White House Correspondents Dinner entertainment: late-night talk-show host Craig Ferguson.

Ferguson is a fine choice for the dinner because he's proved to actually be funny, in spite of his introduction to American audiences on "The Drew Carey Show." And the cherry on top? The Scotsman just became an American citizen.

"As soon as I became an American I thought, you know what is going to happen, I am going to get jury duty or the CIA is going to get in touch and get me to assassinate a foreign state or something like that. Something boring," Ferguson told his audience on the show that aired last night. "Anyway, my first job as an American citizen, I can exclusively reveal tonight, is performing at the White House Correspondents Dinner this year. I'm doing it!"

Continue reading "White House Courting Comedy Controversy Again"

Posted at 2:35 PM
Posted to: Bush Administration, Media, President Bush
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Democrats Blast Bush's Budget Request

When President Bush delivered his final, $3 trillion-plus budget to Congress yesterday, congressional Democrats from both chambers wasted no time laying out their opposition to the proposal.

Senate Democrats quickly attacked the FY09 request, with Majority Leader Harry Reid blasting it as "more of the same," taking specific issue with the budget's proposed cuts in Medicare and Medicaid, its failure to address rising college costs and its neglect of energy issues. "Furthermore, this budget is fiscally irresponsible and highly deceptive, hiding the costs of the war in Iraq while increasing our skyrocketing debt," Reid said. Senate Finance Committee Chairman Max Baucus, D-Mont., said many of those proposed cuts will never get through Congress, particularly a proposed $178 billion cut in Medicare.

On the House side, the budget was met with condemnation from Democratic leaders for continuing "failed" policies and praise from Republican leaders for starting the annual conversation in a fiscally sound manner. The annual rhetorical battle over federal priorities sets up a replay of last year's partisan budget showdown, but with an election-year edge heightened by the economic downturn.

Continue reading "Democrats Blast Bush's Budget Request"

Posted at 10:22 AM
Posted to: Bush Administration, Congress, House, President Bush, Senate
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February 04, 2008

Inside Bush's Budget: Pay Raise Disparities

President Bush proposed a 2.9 percent pay increase for civilian workers and a 3.4 percent pay boost for military personnel in fiscal 2009, according to budget documents released today.

The proposed pay raises rebuff calls for military-civilian pay parity from several lawmakers. Last week, a bipartisan group of House lawmakers sent a letter to the president, asking him to incorporate the principle of equal raises for service members and civilians in his budget request.

Continue reading "Inside Bush's Budget: Pay Raise Disparities"

Posted at 3:00 PM
Posted to: Bush Administration, Congress, Military, President Bush
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Suicide Bombing Comes In Time Of Weakness For Olmert

The first suicide bombing that Israel has seen in more than a year killed a 20-year-old woman and injured 11 others, and comes at a particularly delicate time in renewed Mideast peace negotiations.

The attack was claimed by al-Aqsa Martyrs Brigades, the unofficial terrorist wing of the Fatah Party, and took place at a shopping center in the southern town of Dimona. A second bomber was shot and killed by police before he could detonate explosives strapped to his body.

"Monday's terror attack gives us a painful reminder that we must be vigilant and maintain our readiness in all areas," said Israeli Prime Minister Ehud Olmert. "We are waging a war on terror. It is continuing without bounds and we will get to everyone involved in terror activity."

According to BBC News, an al-Aqsa spokesman hinted that the breach along the Gaza-Egypt border made the bombing mission possible. Gaza militants blew up the border two weeks ago amid an Israeli-enforced blockade that made travel to purchase goods and visit family members nearly impossible.

Egyptian security forces finally sealed the last remaining breach on Sunday, but not without violent exchanges with some lagging Palestinians. Officials haven't yet confirmed whether the Dimona bombers entered Israel via Egypt, but the bombing has already led to calls for suspending peace negotiations with Palestinian President Mahmoud Abbas.

Continue reading "Suicide Bombing Comes In Time Of Weakness For Olmert"

Posted at 12:45 PM
Posted to: Bush Administration, Fatah, Hamas, Israel, Middle East, Palestinians, President Bush, Terrorism
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Bush To Send Congress Largest Budget In History

President Bush is expected to send the nation's first-ever $3 trillion budget request to Congress today for the 2009 fiscal year. Bush's proposal will project about $400 billion in budget deficits over the next two years, bolstered in part by the current economic slump and the stimulus package. But AP reports that, once again, the largest spending increases in the FY09 budget are in national security.

Despite the huge projected deficits, Bush's budget includes sizable cuts in domestic spending, particularly for government health care programs, state and local anti-terrorism grants and social service programs, according to the Washington Post. The plan is already drawing ire from Democratic lawmakers, who charge that Bush is directing cuts at programs that benefit the poor and middle-class families while protecting his tax cuts for the wealthy.

Meanwhile, the projected deficits do not even take into account funding for the wars in Iraq and Afghanistan. CongressDaily (subscription) reports this morning that Bush "is expected today to ask Congress for $70 billion to cover" the cost of the wars "for the first few months of FY09 -- a request that, if approved, could ultimately push the total amount of supplemental spending for military and civilian needs over the $1 trillion mark over the life of this administration."

The war-funding request coupled with the $3 trillion budget means the spending battles that ensnared Congress and the White House last year are likely to continue well into 2008.

AP has a breakdown of some elements in Bush's budget, and the New York Times and Wall Street Journal (subscription) have more on the administration's proposed spending increases for military operations.

Posted at 9:13 AM
Posted to: Bush Administration, Congress, Economy, President Bush
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February 01, 2008

Everyone Except Exxon Mobil Frowning Today

Having lost one of his main talking points on the economy -- that the U.S. was enjoying an unprecedented, 52-month run in job growth -- President Bush sought to assure Americans today that the U.S. economy would get through the current "rough patch."

"During this downcycle, we want to help individual Americans," Bush said, speaking from Hallmark Cards, Inc. in Kansas City. "There is concern whether consumers will lose confidence in our economy. One way to address that issue is to have a temporary, robust tax rebate," he continued, referring to the checks that are going out to millions of households this summer.

Today's Labor Department report on January job growth was not the one everyone was expecting. Non-farm payrolls dropped 17,000 jobs, the first time the U.S. has lost jobs since 2003.

Capping a week of other negative indicators on the economy, "the disappointing report could tilt economists' reading of the U.S. labor market towards the belief that it is weakening significantly," the Financial Times reports.

But not everyone is shaking their head with worry today. Exxon Mobil reported $40.6 billion in net income, a historical best for the energy giant. The record profits are a result of the sharp spike in oil prices worldwide. (Rival Chevron also beat analysts' estimates.)

Continue reading "Everyone Except Exxon Mobil Frowning Today"

Posted at 12:57 PM
Posted to: Bush Administration, Congress, Economy, President Bush, Taxes
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January 31, 2008

Deficits Could Force Domestic Spending Freeze

UPDATED.

President Bush is seeking a freeze on nearly all domestic spending along with a plan to squeeze savings out of entitlement programs in his 2009 budget, AP reports.

Federal deficits are approaching the $400 billion mark this year, in part because of ongoing spending in the Iraq and Afghanistan wars, and in part because of a pending economic stimulus package, which is expected to cost around $150 billion and double this year's deficit.

When Bush presents his budget on Monday, he will call for $178 billion in savings from Medicare and $17 billion for Medicaid. Much of the Medicare savings would come from freezing reimbursement rates to health care providers for three years, according to AP.

The overall slowdown of the economy and an onslaught of negative economic indicators mean lower revenues this year, and the White House is expected to deliver a worse revenue prediction than a recent forecast from the nonpartisan Congressional Budget Office.

Bush's budget is not likely to be well received in Congress, this being an election year. As the ripple effects of the housing bust continue to be felt in households, the new deficit estimates put Republicans running for re-election at a real disadvantage.

Meanwhile, Senate Democrats appear ready to slash the price tag on their economic stimulus proposals. A stimulus package is expected on Bush's desk by Feb. 15.

Posted at 4:05 PM
Posted to: Bush Administration, Congress, Economy, Iraq, Middle East, President Bush, Taxes
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January 30, 2008

Mukasey Frustrates Again On Waterboarding

Attorney General Michael Mukasey fended off questions today on waterboarding, CIA destruction of interrogation tapes, the U.S. attorney firings and other high-profile issues in his first appearance before the Senate Judiciary Committee since his contentious confirmation hearings three months ago.

Mukasey said the CIA does not conduct waterboarding now and that the committee would be privately informed should that change. Mukasey repeatedly declined to say if waterboarding -- an interrogation technique that causes suspects to believe they are drowning -- constitutes torture, or to confirm if it was used by the CIA.

"Given waterboarding is not part of the [interrogation] program and may never be added to the program, I don't think it's appropriate for me to comment on its legality," he testified. Mukasey did suggest a standard where the brutality of an interrogator's action would be weighed against the value of information elicited to decide if the act constitutes torture. That position drew rebukes from several committee Democrats.

Continue reading "Mukasey Frustrates Again On Waterboarding"

Posted at 5:48 PM
Posted to: Attorney Scandal, Bush Administration, CIA, Constitution, Michael Mukasey, President Bush, Terrorism
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Fed Watch: There Will Be Cuts

UPDATED.

A Wall Street rally following a 50-basis-points rate cut from the Fed today was not long for this world, as yet another negative economic report sent the Dow back down 37.47 points to close at 12,442.83. The S&P 500 and Nasdaq also pulled back from afternoon bumps.

Earlier in the afternoon, the Fed slashed interest rates to 3 percent, as was widely anticipated. The confirmation sent the Dow Jones industrial average and the S&P 500 ticking back up. But bad news from the bond sector sent those indexes sinking back down.

The brief rally may just have been a sigh of relief that the Fed had delivered as projected. New data released today show economic growth is grinding down, heightening fears of a recession this year.

"Financial markets remain under considerable stress, and credit has tightened further for some businesses and households. Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labor markets," the Federal Open Market Committee said in a statement. "The committee expects inflation to moderate in coming quarters, but it will be necessary to continue to monitor inflation developments carefully."

Chairman Ben Bernanke joined in the near-unanimous decision. Voting against the cut was Richard Fisher, president of the Federal Reserve Bank of Dallas. The Board left the door open to future reductions.

"It's great that they did it now. I wish they had done it earlier," said CNBC's Jim Cramer, who has been screaming -- sometimes literally -- about the Fed's slowness to act on the housing bust and credit crunch.

Continue reading "Fed Watch: There Will Be Cuts"

Posted at 5:04 PM
Posted to: Bush Administration, Congress, Economy, Federal Reserve, House, President Bush, Senate
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January 29, 2008

McCain Edges Romney In Florida; Giuliani Bowing Out

UPDATED.

John McCain edged out rival Mitt Romney to win the Republican primary in Florida, sealing his comeback status as the front-runner in this race.

"Our victory might not have reached landslide proportions, but it is sweet nonetheless," McCain said, as supporters cheered an increasingly familiar refrain, "Mac is back! Mac is back!"

"To everyone who in good times and bad devoted much time and energy and hope to keeping our candidacy competitive: Thank you from the bottom of my heart," McCain said, in reference to his astonishing revival after being left for dead last summer when his campaign operation imploded.

These numbers will be confirmed tomorrow, but McCain bested Romney by about 36 percent to 31 percent. Rudy Giuliani won 15 percent of the registered-Republicans-only vote, followed by Mike Huckabee 2 points behind. The exit polling data show some surprising alliances. Latinos overwhelmingly went to McCain, even though Romney was up with Spanish-language ads in Florida nearly a year ago. McCain also bested Romney among voters middle-aged and older. The two fared about equally among middle-income voters, with Romney gaining an edge in the $100,000-$199,990 bracket. But McCain won over Republicans earning $200,000 or more, 44 percent to 30 percent.

With Super Tuesday just a week away, McCain heads into that 24-state competition the delegate-count winner, with Romney his chief rival and Huckabee the wild card.

Meanwhile, without actually saying he was dropping out, Giuliani all but drew his campaign to a close in his concession speech tonight. He said he was "proud" of his campaign for keeping things positive -- he never really went after anyone except Romney and Ron Paul -- and nodded to his improbable candidacy and improbable strategy.

Continue reading "McCain Edges Romney In Florida; Giuliani Bowing Out"

Posted at 11:17 PM
Posted to: Barack Obama, Bush Administration, Campaigns, Democrats, Hillary Rodham Clinton, John Edwards, John McCain, Mike Huckabee, Mitt Romney, President Bush, Republicans, Rudy Giuliani, WH 2008
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House Passes Stimulus Package

The House approved a $146 billion economic stimulus package today on an overwhelming 385-35 vote. The package now heads to the Senate, where tinkering with the bill is being criticized by lawmakers who reached a deal with President Bush.

"I would hope that the timely aspect of this is recognized by my colleagues in the Senate," House Speaker Nancy Pelosi said. "We have to have a stimulus. There's just no question. Once you understand that, then you have a responsibility to work back to that and find common ground. I would hope that what the Senate does is respectful of the focus that we have on middle-class and lower-income people."

The House measure would send rebate checks worth $600 to individuals and $1,200 for families, plus $300 per child, while