Category : President Barack Obama

Health Debate Turns Hostile at Town Hall Meetings

The bitter divisions over an overhaul of the health care system have exploded at town-hall-style meetings over the last few days as members of Congress have been shouted down, hanged in effigy and taunted by crowds. In several cities, noisy demonstrations have led to fistfights, arrests and hospitalizations.

Democrats have said the protesters are being organized by conservative lobbying groups like FreedomWorks. Republicans respond that the protests are an organic response to the Obama administration’s health care restructuring proposals.

There is no dispute, however, that most of the shouting and mocking is from opponents of those plans. Many of those opponents have been encouraged to attend by conservative commentators and Web sites.

Read it all.

Posted in * Culture-Watch, * Economics, Politics, Health & Medicine, House of Representatives, Office of the President, Politics in General, President Barack Obama, Senate

NPR: Public Baffled By Health Care Arguments

No matter which side of the issue members come down on, they will find that the people who put them in office remain deeply confused about what the still-being-written overhaul might bring.

And most Americans are equally suspicious of ”” and confused by ”” claims being made by both supporters and opponents of President Obama’s most ambitious domestic initiative.

With Congress still struggling to fashion legislation and Obama letting the details take shape on Capitol Hill while he sells its broader parameters during appearances that include town hall meetings, most outside Washington have no idea what the overhaul will look like, what it will cost and how it could affect them personally, says Mark Blumenthal of Pollster.com.

“Much of this story has been a big, inside-Washington debate about cost and bending the cost curve,” he says. “It’s a remote, technical discussion.”

Read it all.

Posted in * Culture-Watch, * Economics, Politics, Health & Medicine, House of Representatives, Office of the President, Politics in General, President Barack Obama, Senate

2 Obama officials: No guarantee taxes won't go up

President Barack Obama’s treasury secretary said Sunday he cannot rule out higher taxes to help tame an exploding budget deficit, and his chief economic adviser would not dismiss raising them on middle-class Americans as part of a health care overhaul.

As the White House sought to balance campaign rhetoric with governing, officials appeared willing to extend unemployment benefits. With former Federal Reserve Chairman Alan Greenspan saying he is “pretty sure we’ve already seen the bottom” of the recession, Obama aides sought to defend the economic stimulus and calm a jittery public.

Treasury Secretary Timothy Geithner and National Economic Council Director Larry Summers both sidestepped questions on Obama’s intentions about taxes. Geithner said the White House was not ready to rule out a tax hike to lower the federal deficit; Summers said Obama’s proposed health care overhaul needs funding from somewhere.

“There is a lot that can happen over time,” Summers said, adding that the administration believes “it is never a good idea to absolutely rule things out, no matter what.”

Read it all.

Posted in * Culture-Watch, * Economics, Politics, Budget, Economy, Health & Medicine, Office of the President, Politics in General, President Barack Obama, Taxes, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The National Deficit, The U.S. Government

Elliott Abrams: Why Israel Is Nervous

Iran is the major security issue facing Israel, which sees itself confronting an extremist regime seeking nuclear weapons and stating openly that Israel should be wiped off the map. Israel believes the military option has to be on the table and credible if diplomacy and sanctions are to have any chance, and many Israelis believe a military strike on Iran may in the end be unavoidable. The Obama administration, on the other hand, talks of outstretched hands; on July 15, even after Iran’s election, Secretary of State Hillary Clinton said “we understand the importance of offering to engage Iran”¦.direct talks provide the best vehicle”¦.We remain ready to engage with Iran.”

To the Israelis this seems unrealistic, even naïve, while to U.S. officials an Israeli attack on Iran is a nightmare that would upset Obama’s outreach to the Muslim world. The remarkable events in Iran have slowed down U.S. engagement, but not the Iranian nuclear program. If the current dissent in Iran leads to regime change, or if new United Nations sanctions force Iran to abandon its nuclear weapons program, this source of U.S.-Israel tension will disappear. But it is more likely that Iran will forge ahead toward building a weapon, and U.S.-Israel tension will grow as Israel watches the clock tick and sees its options narrowed to two: live with an Iranian bomb, or strike Iran soon to delay its program long enough for real political change to come to that country.

Israel believes the only thing worse than bombing Iran is Iran’s having the Bomb, but the evidence suggests this is not the Obama view.

Read it all from the weekend Wall Street Journal.

Posted in * Economics, Politics, * International News & Commentary, America/U.S.A., Defense, National Security, Military, Foreign Relations, Iran, Israel, Middle East, Office of the President, Politics in General, President Barack Obama

The Economist–The next few weeks could determine the fate of Barack Obama’s presidency

IF THE opinion polls are to be believed, Barack Obama is now, six months into his presidency, no more popular than George Bush or Richard Nixon were at the same stage in theirs. His ratings are sagging particularly badly with electorally vital independent voters: two-thirds of them think he wants to spend too much of their money. Two of the most specific pledges he made to the electorate””to reform health care and to produce a cap-and-trade system to curb greenhouse-gas emissions””are in trouble. And an impression is being formed in Washington of a presidency that is far too ready to hand over the direction of domestic policy to Congress; that is drifting either deliberately or lethargically leftwards; and that is more comfortable with lofty visions than details. On the campaign trail Mr Obama showed an impressive ability to change gears. He needs to do so again this summer.

His cause is by no means hopeless. Just as his initial Messianic polling numbers were misleadingly optimistic, his problems should now be put into context. Most obviously, nearly 200 days into office, he has avoided making any horrific mistakes, especially in the fraught business of economic policy. On the hardly insignificant matter of restoring America’s reputation in the world he has delivered a degree of what he promised (though even there the tough times are still ahead of him, as our next leader makes clear). He has had to cope with the worst recession for half a century. He has been curiously ill-served by a press short of useful criticism, with liberal America prepared only to debate what sort of water he walks on best, while conservative radio hosts argue over when exactly he became a communist. And of course, government is darned hard: even when you make the right decision””to close Guantánamo, for instance””it can take years to put into effect.

Read it all.

Posted in * Economics, Politics, Office of the President, Politics in General, President Barack Obama

Democrats Say House May Miss Deadline on Health Care

U.S. House Democratic leaders, struggling to reach an accord with party dissidents on health care, said they’re likely to miss President Barack Obama’s August deadline for legislation overhauling the medical system.

“It doesn’t look like it to me,” House Ways and Means Committee Chairman Charles Rangel said in an interview. “I really hoped that we could have gotten a bill out of here by now,” he said, adding that he has a “heavy political heart.”

Obama, who has made revamping health care the centerpiece of his domestic agenda, had urged the House and Senate to each pass versions of the bill before their monthlong August recess so negotiations on a compromise could begin when they return. He’s seeking to provide health coverage to tens of millions of Americans who lack it and curb the soaring cost of care.

Read it all.

Posted in * Culture-Watch, * Economics, Politics, Health & Medicine, House of Representatives, Office of the President, Politics in General, President Barack Obama, Senate

Peggy Noonan: Common Sense May Sink ObamaCare

The common wisdom the past week has been that whatever challenges health care faces, the president will at least get something because he has a Democratic House and Senate and they’re not going to let their guy die. He’ll get this or that, maybe not a new nationalized system but some things, and he’ll be able to declare some degree of victory.

And this makes sense. But after the news conference, I found myself wondering if he’d get anything.

I think the plan is being slowed and may well be stopped not by ideology, or even by philosophy in a strict sense, but by simple American common sense. I suspect voters, the past few weeks, have been giving themselves an internal Q-and-A that goes something like this:

Will whatever health care bill is produced by Congress increase the deficit? “Of course.” Will it mean tax increases? “Of course.” Will it mean new fees or fines? “Probably.” Can I afford it right now? “No, I’m already getting clobbered.” Will it make the marketplace freer and better? “Probably not.” Is our health-care system in crisis? “Yeah, it has been for years.” Is it the most pressing crisis right now? “No, the economy is.” Will a health-care bill improve the economy? “I doubt it.”

The White House misread the national mood. The problem isn’t that they didn’t “bend the curve,” or didn’t sell it right. The problem is that the national mood has changed since the president was elected. Back then the mood was “change is for the good.” But that altered as the full implications of the financial crash seeped in.

Read it all.

Posted in * Culture-Watch, * Economics, Politics, Economy, Health & Medicine, House of Representatives, Office of the President, Politics in General, President Barack Obama, Senate, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--

Obama Says Economic Stimulus Plan Worked as Intended

President Barack Obama said his $787 billion stimulus bill “has worked as intended” as he pushed back against Republican criticism that his recovery program has failed to rescue the economy.

“It has already extended unemployment insurance and health insurance to those who have lost their jobs in this recession,” Obama, who is traveling today in Ghana, said in his weekly Saturday radio and Web address. “It has delivered $43 billion in tax relief to American working families and business.”

Read it all.

Posted in * Economics, Politics, Economy, Office of the President, Politics in General, President Barack Obama, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The Fiscal Stimulus Package of 2009

In Russia, Obama’s Star Power Does Not Translate

Let other capitals go all weak-kneed when President Obama visits. Moscow has greeted Mr. Obama, who on Tuesday night concluded a two-day Russian-American summit meeting, as if he were just another dignitary passing through.

Crowds did not clamor for a glimpse of him. Headlines offered only glancing or flippant notice of his activities. Television programming was uninterrupted; devotees of the Russian Judge Judy had nothing to fear. Even many students and alumni of the Western-oriented business school where Mr. Obama gave the graduation address on Tuesday seemed merely respectful, but hardly enthralled.

“We don’t really understand why Obama is such a star,” said Kirill Zagorodnov, 25, one of the graduates. “It’s a question of trust, how he behaves, how he positions himself, that typical charisma, which in Russia is often parodied. Russians really are not accustomed to it. It is like he is trying to manipulate the public.”

Read it all.

Posted in * Economics, Politics, * International News & Commentary, America/U.S.A., Europe, Foreign Relations, Office of the President, Politics in General, President Barack Obama, Russia

Charlotte Allen: The painful side effects of Obama's healthcare reform

Now, I’m well aware that having 47 million people who can’t afford medical care is a genuine social problem — although many of those millions are illegal immigrants, people between jobs and young folks who choose to go insurance-bare. I’m also aware that I can’t necessarily have everything I want, whether it’s a dozen pairs of Prada boots or a pacemaker at age 99. I know that Medicare is on the greased rails to a train wreck, and not just because of spiraling costs but because doctors are fleeing the system because they’re sick of below-cost reimbursements and crushing paperwork. There are ways to solve some of these problems: healthcare tax breaks, malpractice reform that would lower the cost of practicing medicine, efforts to make it easier to get cheap, high-deductible catastrophic coverage, steps to encourage fee-for-service arrangements of the kind that most people have with their dentists.

In short, as someone who’s not getting any younger, I’d like to be the one who makes the “difficult decision” as to whether I can afford — and thus really want — that hip replacement in my extreme old age. Sorry, President Obama, but I don’t want “society”– that is, government mucky-mucks — determining that I’ve got to go sit on an ice floe just because I’m old and kind of ugly, no matter how many fancy degrees in medicine or bioethics they might have.

Read it all.

Posted in * Culture-Watch, * Economics, Politics, Health & Medicine, Office of the President, Politics in General, President Barack Obama

David Leonhardt: An Economic Forecast from the Obama Administration With Hope Built In

In concrete terms, the difference between the situation that the Obama advisers predicted and the one that has come to pass is about 2.5 million jobs. It’s as if every worker in the city of Los Angeles received an unexpected layoff notice.

Read it carefully and read it all.

Posted in * Economics, Politics, Economy, Federal Reserve, Housing/Real Estate Market, Labor/Labor Unions/Labor Market, Office of the President, Personal Finance, Politics in General, President Barack Obama, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The Fiscal Stimulus Package of 2009, The U.S. Government, Treasury Secretary Timothy Geithner

An Excellent Bloomberg Television Interview with Harvard's Niall Ferguson

He discusses the Obama administration’s fiscal policy, the U.S. government’s debt and proposed changes to the financial regulatory system.

I happened to catch this yesterday morning. Note especially the concern about the mounting national debt and the mention of the historical parallels with the 1930’s (he sees significant discontinuities there). Watch it all (a little over 10 1/2 minutes).

Posted in * Culture-Watch, * Economics, Politics, Credit Markets, Economy, Federal Reserve, History, Office of the President, Politics in General, President Barack Obama, The National Deficit, The U.S. Government, Treasury Secretary Timothy Geithner

Obama's pastor at Camp David an Iraq war chaplain, author

Until President Obama and his family settle on a local church to attend, their fill-in pastor will be a former All-American offensive lineman who is now a Navy lieutenant who served in Iraq, and a distant relation of Johnny Cash.

Navy Lt. Carey H. Cash, 39, a Memphis, Tenn. native, is pastor of the chapel at the Camp David presidential retreat in Maryland’s Catoctin mountains. A Southern Baptist, Cash began his three-year tour of duty there in January.

The Evergreen Chapel serves the roughly 400 people who live and work on the remote compound, along with the first family when they flee the White House for the peace of the mountain forest.

Read it all.

Posted in * Christian Life / Church Life, * Culture-Watch, * Economics, Politics, Military / Armed Forces, Office of the President, Parish Ministry, Politics in General, President Barack Obama, Religion & Culture

White House Denies Report that Obama Won't Pick D.C. Church

The White House on Monday (June 29) denied a report that President Obama has decided to make the Camp David presidential retreat his church home.

“The President and First Family continue to look for a church home,” a White House spokesman said Monday. “They have enjoyed worshiping at Camp David and several other congregations over the months, and will choose a church at the time that is best for their family.”

Read it all.

Posted in * Christian Life / Church Life, * Culture-Watch, * Economics, Politics, Office of the President, Parish Ministry, Politics in General, President Barack Obama, Religion & Culture

Wall Street Journal: The Albany-Trenton-Sacramento Disease

President Obama has bet the economy on his program to grow the government and finance it with a more progressive tax system. It’s hard to miss the irony that he’s pitching this change in Washington even as the same governance model is imploding in three of the largest American states where it has been dominant for years — California, New Jersey and New York.

A decade ago all three states were among America’s most prosperous. California was the unrivaled technology center of the globe. New York was its financial capital. New Jersey is the third wealthiest state in the nation after Connecticut and Massachusetts. All three are now suffering from devastating budget deficits as the bills for years of tax-and-spend governance come due.

Read it all.

Posted in * Economics, Politics, Budget, Economy, Office of the President, Politics in General, President Barack Obama, State Government, Taxes, The National Deficit, The U.S. Government

David Brooks: Vince Lombardi Politics

The great paradox of the age is that Barack Obama, the most riveting of recent presidents, is leading us into an era of Congressional dominance. And Congressional governance is a haven for special interest pleading and venal logrolling.

When the executive branch is dominant you often get coherent proposals that may not pass. When Congress is dominant, as now, you get politically viable mishmashes that don’t necessarily make sense.

Read it all.

Posted in * Culture-Watch, * Economics, Politics, Health & Medicine, House of Representatives, Law & Legal Issues, Office of the President, Politics in General, President Barack Obama, Senate

Obama says Honduran ouster was 'not legal'

President Barack Obama says the weekend ouster of Honduran leader Manuel Zelaya was a “not legal” coup and that he remains the country’s president.

Obama spoke to reporters in the Oval Office on Monday after meetings with Colombian President Alvaro Uribe. Obama said he wanted to be very clear that President Zelaya is the democratically elected president.

Read it all.

Posted in * Economics, Politics, * International News & Commentary, Central America, Foreign Relations, Honduras, Office of the President, Politics in General, President Barack Obama

Joan Vennochi: The forbidding arithmetic of healthcare reform

The Fuzzy math behind the Massachusetts universal healthcare law is starting to add up – just as Washington studies the law as a possible model for the nation.

Because of a recession-related drop in state revenues and a surge in enrollment by the recently unemployed, the truth is emerging at an inconvenient time. Massachusetts doesn’t have enough money to pay for the coverage envisioned by the law.

In June, state officials announced they are cutting $100 million from Commonwealth Care, which subsidizes premiums for needy residents. The poorest residents, along with the newest – legal immigrants – will take the hit.

This outcome is not surprising, but it is instructive as President Obama pushes for a national healthcare plan.

Posted in * Culture-Watch, * Economics, Politics, Budget, Economy, Health & Medicine, House of Representatives, Law & Legal Issues, Office of the President, Politics in General, President Barack Obama, Senate, State Government, Taxes, The National Deficit, The U.S. Government

Deal on U.S. healthcare overhaul still uncertain

President Barack Obama’s drive to overhaul the U.S. healthcare system may be back on track thanks to Senate efforts to cut the price tag to $1 trillion, but a bipartisan deal on the sweeping proposal still is far from certain.

Obama wants changes that rein in the escalating costs of healthcare in the United States and bring insurance to most of the 46 million Americans who currently lack it.

He also wants a bill that the Democrats who control Congress and the Republican minority can support to give a bipartisan stamp of approval to his top legislative priority.

Read it all.

Posted in * Culture-Watch, * Economics, Politics, Health & Medicine, House of Representatives, Law & Legal Issues, Office of the President, Politics in General, President Barack Obama

David Brooks on Health Care Reform: Something for Nothing

We’ve built an entire health care system (maybe an entire government) on the illusion of something for nothing. Instead of tackling that basic logic, we’ve got a reform process that is trying to evade it.

This would be bad enough in normal times. But the country is already careening toward fiscal ruin. We’ve already passed a nearly $800 billion stimulus package. The public debt is already projected to double over the next 10 years.

Health care reform is important, but it is not worth bankrupting the country over. If this process goes as it has been going ”” with grand rhetoric and superficial cost containment ”” then we will be far better off killing this effort and starting over in a few years. Maybe then there will be leaders willing to look at the options staring them in the face.

Read it all. Thank God for the CBO, I say.

Posted in * Culture-Watch, * Economics, Politics, Health & Medicine, House of Representatives, Office of the President, Politics in General, President Barack Obama, Senate

Obama Plans to Replace Bush’s Bioethics Panel

Dr. Alta Charo, an ethicist at the University of Wisconsin, said that much of the Bush council’s work “seemed more like a public debating society” and that a new commission should focus on helping the government form ethically defensible policy.

A commission of this kind, Dr. Charo said, “lets the president react judiciously to rapid and often startling changes in the scientific landscape.”

Read it all.

Posted in * Culture-Watch, * Economics, Politics, Ethics / Moral Theology, Office of the President, Politics in General, President Barack Obama, President George Bush, Science & Technology, Theology

Remarks by President Barack Obama at a Town Hall Meeting on Fatherhood

We all know the difference that a responsible, committed father like those five gentlemen can make in the life of a child. Fathers are our first teachers and coaches. They’re our mentors and they’re our role models. They set an example of success and they push us to succeed; encourage us when we’re struggling; and they love us even when we disappoint them, and they stand by us when nobody else will.

And when fathers are absent — when they abandon their responsibilities to their children — we know the damage that that does to our families. Some of you know the statistics: Children who grow up without fathers are more likely to drop out of school and wind up in prison. They’re more likely to have substance abuse problems, run away from home, and become teenage parents themselves.

And I say this as someone who grew up without a father in my own life. I had a heroic mom and wonderful grandparents who helped raise me and my sister, and it’s because of them that I’m able to stand here today. But despite all their extraordinary love and attention, that doesn’t mean that I didn’t feel my father’s absence. That’s something that leaves a hole in a child’s heart that a government can’t fill.

Read it all.

Posted in * Culture-Watch, * Economics, Politics, Children, Marriage & Family, Men, Office of the President, Politics in General, President Barack Obama

Wall Street Journal–Twin Threat: Jobless Rate, Deficit

President Barack Obama faces a dilemma as he fights the recession: The public identifies both rising unemployment and soaring budget deficits as its top policy concerns — but fixing one could worsen the other.

Mr. Obama can ill afford to lose public support on the cusp of the biggest political fights of his presidency, over health care, energy and financial reregulation. Three separate polls this week, including one from the Wall Street Journal/NBC News, have raised red flags at the White House that the president, though still personally popular, is losing some ground with the public on his economic policies.

Officials concede there is little the president can do to please everyone, given the economic Catch-22. If he heeds concerns on the deficit and pulls back on economic stimulus, he risks choking off the “green shoots” of what may be a fledgling recovery.

Read it all.

Posted in * Economics, Politics, Economy, Labor/Labor Unions/Labor Market, Office of the President, Politics in General, President Barack Obama, The National Deficit, The U.S. Government

A Key Bill Cohan Interview from Bloomberg TV this morning on Financial reform

Watch it all.

(Some biographical information on Bill Cohan may be found here).

The most important section begins at 4:12 and thereafter. He places the real core blame at the culture of Wall Street currently and the compensation system where the top traders do not have their own skin in the game.

Posted in * Economics, Politics, Economy, Office of the President, Politics in General, President Barack Obama, Stock Market, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The U.S. Government, Treasury Secretary Timothy Geithner

Obama to propose strict new regulation of financial industry

The Obama administration this week will propose the most significant new regulation of the financial industry since the Great Depression, including a new watchdog agency to look out for consumers’ interests.

Under the plan, expected to be released Wednesday, the government would have new powers to seize key companies — such as insurance giant American International Group Inc. — whose failure jeopardizes the financial system. Currently, the government’s authority to seize companies is mostly limited to banks.

Read it all.

Posted in * Culture-Watch, * Economics, Politics, Economy, Law & Legal Issues, Office of the President, Politics in General, President Barack Obama, Stock Market, The Banking System/Sector

David Brooks on Obama and Healthcare

The scrum will be an ugly, all-out scramble for dough. You can probably get expanded coverage out of it. You can hammer the hospitals and get much of the $1.2 trillion to pay for the expansion. But you won’t be able to honestly address the toughest issues and still hold your coalition. You won’t get the kind of structural change that will bring down costs long-term. In the scrum, Congress will embrace the easy stuff and bury the hard stuff.

Which is why you have MedPAC. That’s the Medicare Payment Advisory Commission that you want to turn into a health care Federal Reserve Board ”” an aloof technocratic body of experts that will make tough decisions beyond the reach of politics. You can take every thorny issue, throw it to MedPac and consider it solved.

Conservatives will claim you’re giving enormous power to an unelected bunch of wonks. They’ll say that health care is too complicated to be run by experts from Washington. But you’ll say that you are rising above politics. You’ll have your (partial) health care victory. Not bad for a skinny guy with big ears.

Read it all.

Posted in * Culture-Watch, * Economics, Politics, Health & Medicine, Office of the President, Politics in General, President Barack Obama

Obama Is Pressed to Tax Health Benefits

The White House is caught in a battle within its own party over how to finance a comprehensive overhaul of America’s health-care system, as key Democrats advocate a tax plan that could require President Obama to break his campaign pledge not to raise taxes on the middle class.

Sensitive to voter anxiety about a soaring federal deficit, Obama and congressional leaders have vowed to pay for a sweeping expansion of the health-care system — expected to cost more than $1 trillion over the next decade — without additional borrowing.

Much of the money is likely to come from reining in spending on federal health programs for the elderly and the poor. Obama has proposed trimming more than $600 billion from Medicare and Medicaid by 2019 — including more than $300 billion in cuts unveiled in his Saturday radio and Internet address — which could fulfill the promise to curb the growth of federal health spending.

The rest of the cash will probably come from new taxes.

Read it all.

Posted in * Culture-Watch, * Economics, Politics, Economy, Health & Medicine, Office of the President, Politics in General, President Barack Obama, Taxes

Obama Open to Reining in Medical Suits

The American Medical Association has long battled Democrats who oppose protecting doctors from malpractice lawsuits. But during a private meeting at the White House last month, association officials said, they found one Democrat willing to entertain the idea: President Obama.

In closed-door talks, Mr. Obama has been making the case that reducing malpractice lawsuits ”” a goal of many doctors and Republicans ”” can help drive down health care costs, and should be considered as part of any health care overhaul, according to lawmakers of both parties, as well as A.M.A. officials.

It is a position that could hurt Mr. Obama with the left wing of his party and with trial lawyers who are major donors to Democratic campaigns. But one Democrat close to the president said Mr. Obama, who wants health legislation to have broad support, views addressing medical liability issues as a “credibility builder” ”” in effect, a bargaining chip that might keep doctors and, more important, Republicans, at the negotiating table.

Read it all.

Posted in * Culture-Watch, * Economics, Politics, Health & Medicine, Law & Legal Issues, Office of the President, Politics in General, President Barack Obama

The Economist: The right and wrong ways to deal with the rich world’s fiscal mess

Not since the second world war have so many governments borrowed so much so quickly or, collectively, been so heavily in hock. And today’s debt surge, unlike the wartime one, will not be temporary. Even after the recession ends few rich countries will be running budgets tight enough to stop their debt from rising further. Worse, today’s borrowing binge is taking place just before a slow-motion budget-bust caused by the pension and health-care costs of a greying population. By 2050 a third of the rich world’s population will be over 60. The demographic bill is likely to be ten times bigger than the fiscal cost of the financial crisis.

Will they default, inflate or manage their way out?

This alarming trajectory puts policymakers in an increasingly tricky bind. In the short term government borrowing is an essential antidote to the slump. Without bank bail-outs the financial crash would have been even more of a catastrophe. Without stimulus the global recession would be deeper and longer””and it is a prolonged downturn that does the greatest damage to public finances. But in the long run today’s fiscal laxity is unsustainable. Governments’ thirst for funds will eventually crowd out private investment and reduce economic growth. More alarming, the scale of the coming indebtedness might ultimately induce governments to default or to cut the real cost of their debt through high inflation.

Read it all.

Posted in * Culture-Watch, * Economics, Politics, Economy, Federal Reserve, Globalization, Office of the President, Politics in General, President Barack Obama, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The National Deficit, The U.S. Government, Treasury Secretary Timothy Geithner

Binyamin Netanyahu defies Barack Obama by refusing to halt settlements

Binyamin Netanyahu tonight endorsed the creation of a Palestinian state after weeks of pressure from Washington, but defied President Obama’s demand for a halt to all settlements.

In a high-profile speech that the Palestinian administration of Mahmoud Abbas said “hobbles all efforts to save the peace process”, the Israeli Prime Minister said that the Palestinians must recognise Israel as a “Jewish state” and that any future Palestinian state had to be demilitarised.

“If we have the guarantees on demilitarisation and if the Palestinians recognise Israel as the state of the Jewish people, then we arrive at a solution based on a demilitarised Palestinian state alongside Israel,” Mr Netanyahu said.

Read the whole article.

Posted in * Economics, Politics, * International News & Commentary, Foreign Relations, Israel, Middle East, Office of the President, Politics in General, President Barack Obama, The Palestinian/Israeli Struggle