The Commentariat -- Oct. 9, 2013
Jackie Calmes of the New York Times: " President Obama will nominate Janet L. Yellen as chairwoman of the Federal Reserve on Wednesday, administration officials said Tuesday night...." Congratulations to every determined, annoying, liberal, feminist, egalitarian supporter & to those Democratic Senators who -- inspired by your perseverence -- just said no to the Other Guy. Sometimes the good gal wins.
... CW: Nonetheless, Yellen's nomination is beginning to look like a distraction designed to appease the liberal base so Obama can undercut liberal principles when he negotiates down social safety net programs during a short-term "amnesty" or grace period bestowed up us by the Sabotage Party. Contributor Tommy Bones speculated to this effect in yesterday's thread (before news of the Yellin announcement). I'd say Tommy got that right. ...
... Mark Yellin of BBC News provides a peek into Yellen's personal history.
Thanks to Kate M. for the Time cover.
Alan Fram of the AP: "Amid the tough talk [by Obama & Boehner], though, were indications that both sides might be open to a short-term extension of the $16.7 trillion borrowing limit and a temporary end to the shutdown, giving them more time to resolve their disputes.... Obama used a White House news conference to say he 'absolutely' would negotiate with Republicans on 'every item in the budget' if Congress first sent him short-term measures halting the shutdown and the extending the debt limit. 'There's a crack there,' Boehner said of the clash late Tuesday, though he cautioned against optimism." ...
... CW: Guess I missed that part of the presser. Let's think about how that would work. The House agrees to open the government for business by extending the status quo for a month or so & to raise the debt ceiling an itty-bitty bit --- in exchange for negotiating all the stuff they want. I can't see this as anything but an Obama capitulation & a Boehner win. Also, this would completely undercut Harry Reid's plan (see Brian Beutler's story below) to effectively eliminate the debt ceiling. ...
... Update: it appears Noam Scheiber of the New Republic wrote this post before Obama made his concession (or like me, he missed it), but his theory applies & jibes with mine: "... a short-term debt limit increase will at best simply defer our current drama for another six weeks. More likely, it will substantially increase the odds of disaster." ...
... Update 2: I read the transcript of the Q&A on this, & it's not as cut-&-dried as Fram suggests. Obama put a lot of qualifiers on that "absolutely." ...
... Lori Montgomery & Zachary Goldfarb of the Washington Post: "Short-term borrowing by the Treasury Department became twice as expensive Tuesday as it had been the day before, one of the most significant signs of alarm in the bond markets since the financial crisis of 2008. The stock market, meanwhile, continued the steady slide that began in mid-September, when Boehner (R-Ohio) embraced a right-wing strategy for using the budget battles to try to dismantle Obama's signature health-care initiative. The Standard & Poor's 500-stock index fell 20.67 points to 1,655.45 on Tuesday. The Dow Jones industrial average dropped nearly 160 points to 14,776.53 and has lost nearly 6 percent of its value since hitting a one-year high Sept. 18." ...
... Jackie Calmes & Jonathan Weisman of the New York Times: " President Obama on Tuesday intensified his pressure on Republicans with a hastily scheduled news conference, calling on them to both fund and reopen the government and to raise the nation's borrowing limit as the federal shutdown entered a second week." ...
... CW: President Obama really acquitted himself well. He used a lot of examples that regular people can understand, so if the news media play back any of his analogies, even dummkopfs will get it. ...
... Here's the full transcript, via the Washington Post. ...
... Ed O'Keefe & Paul Kane of the Washington Post: "Obama made the comments as House Republican leaders pressed demands for negotiations with Senate Democrats and Obama over bills to fund the government and raise the debt limit, but declined to lay out what they are seeking in the proposed talks. Speaking to reporters after his weekly meeting with House Republicans, Speaker John A. Boehner (R-Ohio) charged that 'by refusing to negotiate,' Obama and Senate Majority Leader Harry M. Reid (D-Nev.) 'are putting our country on a pretty dangerous path.'" ...
... John Boehner responded to President Obama with a "press conference" of his own: Jonathan Chait: "The most telling thing about Boehner’s remarks is their brevity. The Speaker spoke for about five minutes, responded briefly to one question, and bolted out the door. Obama's disquisition earlier today may have been long (over an hour) and professorial. But he was able to defend his position against questions, engage counterarguments, and marshal facts to support his position. Boehner couldn't do any of those things. So he did the only thing a man in his position could do: repeat a handful of false or crazy talking points and quickly flee the premises." ...
... Robert Costa of National Review: "Though much press has been given to a group of moderates who are feeling the heat from voters over the shutdown and pushing for a 'clean' continuing resolution (CR), Boehner has moved to quiet their concerns. Several Republicans listed in media whip counts over the past few days have recanted, and any building concerns about strategy and direction are staying private, for now." CW: You can read Costa for what the latest House demands are; I think they've changed since then. ...
... Tim Alberta of the National Journal on House Republicans' plans. His reporting seems to agree with Costa's. The House will schedule a screw-federal-employees-if-you-vote-against-it bill & a form-a-supercommittee bill. ...
... Burgess Everett of Politico: "Senior Senate Democrats on Tuesday morning accused House Speaker John Boehner and his Republican majority of executing a 'classic bait-and-switch operation' that led to a government shutdown. Senate Majority Leader Harry Reid has for days now divulged details of a private meeting between him and Boehner in September in which Reid says Boehner promised to pass a bill funding the government at lower spending levels than preferred by Democrats on the condition that it not water down Obamacare. The Senate has sent such a bill over to the House, but Boehner has declined to put it on the floor and said if he did, it wouldn't have the votes to pass." ...
... Brian Beutler explains Harry Reid's debt limit strategy: "in the Senate, Majority Leader Harry Reid will press ahead with an old twist on a clean debt limit bill of his own. Under his plan, which was once Minority Leader Mitch McConnells plan, Congress would hand authority for increasing the debt limit to the president, but retain the power to block new borrowing with supermajority votes in both chambers. Moving quickly, while Boehner and his lieutenants dither, is a can't-lose move for Reid. If the plan fails — that is, if Republicans successfully filibuster the bill with a week before the Treasury Department's deadline -- markets will turn, and the pressure on the GOP to cave will increase. If it passes, Boehner will be isolated."
... Michael Tomasky of the Daily Beast: "Three Debt-Ceiling Lies You'll Hear From the GOP This Week: ... "1. A default wouldn't really be that bad.... 2. Obama is a big hypocrite because he voted against a debt-limit increase while Bush was president.... 3. The Democrats won't compromise, wah wah wah!" Tomasky elaborates on all three. ...
... Even Tom Friedman Is Smarter than John Boehner: "The reason so many mainstream Republican lawmakers want Obama to give something to Cruz & Co. is that they want to get out of this mess, but they're all afraid to stand up to the far-right fringe themselves -- with its bullying network of barking talk-show hosts and moneymen. But Obama shouldn't take them off the hook. Only Republicans can delegitimize the nihilistic madness at the base of their party." ...
... Ben White & Seung Min Kim of Politico: "... the debt limit deniers are back in force. You can spin all the scary tales of default you want and they won't believe you. They say if the $16.7 trillion borrowing limit is not raised by Oct. 17, as Treasury demands, then the U.S. government will still collect more than enough cash each month to keep paying bondholders. And if Uncle Sam can't pay Social Security recipients or anyone else while it forks over interest payments to the Chinese? 'Tough luck,' these people say. The nation spends too much as it is. Blocking a debt ceiling increase will provide the radical shock therapy the nation desperately needs to start living within its means." ...
... How to Undermine Your Own Extortion Plot. Steve Benen: "Let's say the default deniers are right. They're not, but let's just say they are for the sake of conversation, and the consequences of the United States ignoring its financial obligations would be minor. If that's true, why should President Obama and congressional Democrats pay a steep ransom to let the hostage go? ... We are, at the risk of sounding impolite, talking about a group of ignorant radicals, with an uninterrupted track record of failed predictions, who have the fate of the global economy in their hands. Good luck to us all." ...
... Josh Barro of Business Insider: "Waiting For Michele Bachmann To Stop Being Crazy Is Not A Strategy." ...
... Kevin Mahnken of the New Republic, in praise of former House speakerl Dick Gephardt: "If the Gephardt Rule were in effect today, there could be no risk of default when it comes time to raise the debt ceiling October 17, because its purpose was to obviate the debt-ceiling process entirely. Instituted in 1979, the rule empowered the House Clerk to apply the total amount of debt from the House's budget to a joint resolution that would then be sent to the Senate for approval. It combined the two steps of negotiating a budget and lifting the federal debt limit to pay for it." CW: Just one more reminder that Newt Gingrich's fingerprints are all over this crisis. Thanks again, CNN, for elevating him to stahdumb. ...
... ** AND Paul J. Kaplan, apparently a constituent of Jack Kingston (RTP-Ga.), writes a letter to his Congressman. This is a hoot, even if you're not a baseball fan.
Juliet Eilperin, et al., of the Washington Post: "Major insurers, state health-care officials and Democratic allies repeatedly warned the Obama administration in recent months that the new federal health-insurance exchange had significant problems, according to people familiar with the conversations. Despite those warnings and intense criticism from Republicans, the White House proceeded with an Oct. 1 launch." ...
... CW: There are many things that can & will go wrong with aspects of the ACA. The massive fail of the exchange Website, however, was entirely avoidable. And just plain stupid. I have read a good deal about amateurish coding errors (which should have been caught during testing), but it sounds as if the problem began with the program specs, not with the usual bugs that would occur in a complex system. It appears the designers didn't adjust for the Supreme Court's decision to allow states not to opt in with their own exchanges. With fewer than half the states on board, any dope could see the system would require twice the capacity originally anticipated. ...
... Robert Pear & Amy Goodnough of the New York Times: "While many people have been frustrated in their efforts to obtain coverage through the federal exchange, which is used by more than 30 states, consumers have had more success signing up for health insurance through many of the state-run exchanges, federal and state officials and outside experts say."
See No Evil. Adam Liptak of the New York Times: "The Supreme Court on Tuesday seemed prepared to strike down a part of federal campaign finance law left intact by its decision in Citizens United in 2010: overall limits on direct contributions from individuals to candidates. The justices seemed to divide along familiar ideological lines, and they articulated starkly different understandings of the role of money and free speech in American politics." ...
... Dana Milbank: "There’s a certain irony in the Supreme Court remaining open while much of the federal government is shut, for the high court created much of the dysfunction that cripples Washington today. The court has failed to undo the partisan redistricting that has left the House hopelessly polarized. It has furthered Americans' cynicism toward politics with nakedly political rulings such as Bush v. Gore. And, above all, it has created a campaign-finance system that is directly responsible for the rise of uncompromising leaders on both sides of the Capitol.... Now [the conservatives justices] are prepared to expand on their 2010 decision that caused an explosion of independent spending by allowing the wealthy to give about $3.5 million apiece to candidates and parties in each election cycle. Their rationale: They've already allowed the system to become so flooded with money that more won't hurt." ...
Less than 500 people can fund the whole shooting match. There is a very real risk both that the government will be run of, by and for those 500 people and that the public will perceive that the government is being run of, by and for those 500 people. -- Solicitor Gen. Donald Verrilli, arguing before the Court Tuesday ...
... Charles Pierce provides helpful commentary in a post titled "The Last Floodgate Opens." ...
... This, BTW, appears to be the intro to Charles Pierce's cover on Esquire Weekly. I haven't figured out how to access the whole essay, which is firewalled. But the intro is wordsmithery (a word this smithy thought she made up, but didn't) to behold.
There Are Still Heroes in Washington. Jonathan Easley of the Hill: "Eight Democratic lawmakers were arrested Tuesday while advocating for immigration reform at a sit-in on the National Mall in Washington. Reps. John Lewis (D-Ga.), Charles Rangel (D-N.Y.), Joseph Crowley (D-N.Y.), Luis Gutiérrez (D-Ill.), Keith Ellision (D-Minn.), Jan Schakowsky (D-Ill.), Raúl Grijalva (D-Ariz.) and Al Green (D-Texas) were among the estimated 200 people arrested by U.S. Capitol Police for protesting in the streets."
Living in Washington, D.C., in the midst of the greatest political crisis since Watergate four decades ago (a crisis for which -- unlike this one -- there was a Constitutional solution), Maureen Dowd devotes her column to the importance of changing the Washington Redskins' name to something less offensive.
Congressional Races 2013
Sam Wang of Princeton U.: "If the election were held today, Democrats would pick up around 30 seats, giving them control of the chamber. I do not expect this to happen. Many things will happen in the coming 12 months, and the current crisis might be a distant memory. But at this point I do expect Democrats to pick up seats next year, an exception to the midterm rule." Thanks to Ken. W. -- and his son -- for the link.
Gubernatorial Race
Alexander Burns of Politico: "Democrat Terry McAuliffe has opened up a significant lead over Republican Ken Cuccinelli in the Virginia governor’s race amid broad public disapproval of the federal government shutdown, according to a Politico poll of the 2013 gubernatorial election. McAuliffe, the former national Democratic Party chairman, is now 9 points ahead of Cuccinelli, the current state attorney general, in a race that also includes Libertarian nominee Robert Sarvis. In the survey, McAuliffe drew support from 44 percent of Virginians versus 35 percent for Cuccinelli and 12 percent for Sarvis." ...
... CW: I think contributor James S. is right about this: "The problem with that Terry Mac-Cooch poll is Sarvis's 12 points. Third party candidate always seem to poll better than they score, and I'll bet those 12-pointers are on the kook end of the political rainbow."
News Ledes
New York Times: "This year’s Nobel Prize in Chemistry was awarded to three researchers for computer simulations that enable the closer study of complex reactions like photosynthesis and combustion, and the design of new drugs. Martin Karplus of the University of Strasbourg in France and Harvard University, Michael Levitt of Stanford University, and Arieh Warshel of the University of Southern California share the honor...."
... Update: this AP story is more extensive.
New York Times: "The Libyan government in recent weeks tacitly approved two American commando operations in its country, according to senior American officials, one to capture a senior militant from Al Qaeda and another to seize a militia leader suspected of carrying out the Sept. 11, 2012, attacks on the United States diplomatic mission in Benghazi."
New York Times: "The Obama administration plans to suspend a substantial portion of American military aid to Egypt, several administration officials said Tuesday, after last summer's deadly crackdown on the Muslim Brotherhood and the recent surge in violence there."
CW: Not sure why the Los Angeles Times is just now getting around to publishing an obituary for Herman Wallace, but it is worth a read. The South is still the South; it's medieval culture persists. Who needs living history museums when you can time-travel to Dixie whenever you like?