Progressive Breakfast - 6/8/2010

10:50 AM: "The Emerging Progressive Majority" with Gov. Howard Dean, Carmen Berkley, Simon Rosenberg

1:15 PM: "The New Economy: Demanding Jobs and Justice" with Richard L. Trumka, Bob Herbert, Angela Glover Blackwell and Jared Bernstein

2 PM: "The Next Agenda" with Phil Angelides, Ben Jealous, Leo Gerard, Alan Jenkins, Janet Murguía and Carlos Saavedra

3:10 PM: "Afghanistan: Good War or Wrong Way?" with Juan Cole, Michael O'Hanlon and Karen DeYoung

3:10 PM: "The Big Fix: Progressive Path to Growth Out of Deficits" with Rep. Jan Schakowsky, Roger Hickey, Robert Kuttner, Susan Shaer and Nancy J. Altman

At AFN10, Progressives Demand Bolder Action From Washington

Video highlights from AFN10 Day 1 at OurFuture.org.

NYT: "[The] liberal lament is loudest right now on the issue of the government’s role in creating jobs ... said Roger Hickey ... co-director at the Campaign for America’s Future ... '[The President] is not taking this to the country and saying, We’ve got to prevent the country from falling back into another recession.' The activists will not be happy, then, to learn on Tuesday that just as they are demanding more jobs-related spending, Mr. Obama is calling for additional steps to reduce overall federal spending ... Mr. Obama’s budget director, Peter R. Orszag, in a speech to the liberal-leaning Center for American Progress, will direct each federal agency, domestic and military, to identify under-performing programs equivalent to 5 percent of its department’s appropriations."

Reuters: "Liberal activists said it was time to crank up the pressure on Obama, who they said had been too willing to compromise with Republicans determined to obstruct his agenda ... Borosage said the challenge to Democratic Senator Blanche Lincoln from the left in Tuesday's run-off election in Arkansas was a sign of a rebirth of progressive political activism."

AP: "...activists said they would take on congressional incumbents and they cited Arkansas, where the Progressive Change Campaign Committee has sent $250,000 to Lt. Gov. Bill Halter's bid against Sen. Blanche Lincoln, which will be decided in a runoff [today]. The committee made 55,000 phone calls on Halter's behalf on Monday alone. Activists say they would rather have "good Democrats" — in the words of DailyKos founder Markos Moulitsas — than moderates who don't advance a progressive agenda."

OpenLeft's Adam Bink raises the question, where should progressives draw line with supporting Democrats: "One call circulating around the blogopshere [is that] it's better to have 59 Democrats and Sen. Durbin as Majority Leader than 60 Democrats and Sen. Reid in that position. In other words, that it would be acceptable to let Reid lose. ... at what point does being willing to allow Democrats to be defeated no longer become an option? ... Is it at 55 Democratic Senators? 53? 51? ... The answer isn't clear to me ... I think that question will come up more and more, and will generate discussions and divisions about where to invest resources."

CBS: "'Voters are extremely upset about the direction of the country and the state of the economy,' [pollster] Celinda Lake [said] at the America's Future Now conference ... lone Republicans twice this year were able to block the Senate's attempts to extend unemployment benefits. It is 'truly astounding how out of touch this feels for the American public,' Lake said ... Democrats have only themselves to blame for allowing the right to seize populist anger, said Drew Westen ... Democrats passed a $15 billion jobs bill - 'large enough to cover roughly half the city of Detroit,' Westen said derisively."

AFL-CIO Blog's Mike Hall on misreading Tea Party anger: "Working America Executive Director Karen Nussbaum, says Working America organizers going door to door often find people who identify themselves as Tea Party followers... They don’t necessarily embrace the hard core, right wing philosophy - they are just really mad. She told of an Ohio woman who said she 'listened to Glenn Beck, supported the tea party and hated Obama.' But when the Working America canvasser talked about the role big banks and Wall Street played in the economic collapse and the power corporations wield over the economy, the woman wrote a letter to Sen. George Voinovich (R) supporting Wall Street reform legislation."

NPR: "While trying to keep positive, speaker after speaker showed deep frustration with how things have gone so far."

OurFuture.org's Isaiah Poole on the emerging consensus for independent mobilization: "...there is also the hard-won realization that once again American history is repeating itself, and that in the end, as Barghava said, 'presidents do not create social urgency'—even presidents with Obama's gift for painting a broad progressive vision—but 'independent movements do.'"

FireDogLake's David Dayen concludes yesterday's Great Debate did not answer the question how to mobilize independent of the White House: "Curiously, the conversations seemed to tend toward particular issue silos rather than an overarching vision of progressivism. The tea party movement plugs into all the fears and hopes of their participants, and provides a coherent way to talk about them that focuses on values and principles rather than the preferred policy position. This is not something progressives have yet figured out, to profess a positive vision of what 2030 can look like rather than an issue-by-issue laundry list. Until that vision is heard, I’m not sure a mass movement can take hold."

Ian Welsh argues progressives should inflict "pain" to move Obama: "...the type of pressure Obama responds too isn’t public opinion, it is when you embarrass him and cost him money that he responds. Mind you, gays didn’t get everything [on Don't Ask, Don't Tell], but they got something."

Corrente's Stirling Newberry sees labor as key: "Labor's political positioning problem is the conference's raison d'etre. On one hand labor will not get far by antagonizing Obama. Nor will it recruit new young people by frontally attacking a man who is, or in many cases was, their icon. On the other hand, the undercurrent is a very real anger at the failure of the Administration to directly attack the legacy political economy of the neo-liberal era. It is labor that is putting the heat on Lincoln. It is organized labor that underlines repeatedly their electoral muscle."

Senate Seeks Fresh Compromise On Latest Jobs Bill

Senate Dems float proposal to restore Medicaid funding for states, but re-open hedge fund tax loophole. Politico: "An estimated $24 billion in Medicaid funds — dropped by the House before Memorial Day — would be restored after an outcry from governors and liberals. At the same time, Senate tax writers hope to placate a handful of Democrats on the East and West coasts by softening House reforms that target wealthy investment-fund partners ... But the end result would add to the deficit — a major obstacle to getting the 60 votes needed..."

Maine GOPers not won over yet. CQ: "Olympia J. Snowe, R-Maine, said she still has varied concerns with the legislation, including its deficit spending and an offset that would raise taxes on many small, closely held professional services companies."

Governors deeply concerned about Medicaid funding. NYT: "The only way to compensate for the loss [of additional Medicaid funding, Gov. Ed Rendell] said in an interview, would be to lay off at least 20,000 government workers, including teachers and police officers, at a time when the state is starting to add jobs ... further reductions would be 'both cruel and counterproductive,' [CA Gov. Arnold] Schwarzenegger, a Republican, wrote to members of Congress last week."

More on the hedge fund tax loophole fight from W. Post.

Speaker Pelosi hearing complaints from newly elected House members to restrain public investment. Politico: "Pelosi’s been hearing this type of message from the noisy caucus of moderate Blue Dog Democrats for a year and a half. But this time was different: The malcontents were freshmen, many of whom have enthusiastically backed President Barack Obama’s agenda most of the way but now are choking on its cost." Speaker Pelosi addresses AFN10 at 8:30 AM

"CBC faces tough fight on summer jobs" reports The Hill: "The Senate has given a cool reception to legislation approved by the House... "

NYT's Bob Herbert chastises Washington for lacking bold vision on jobs: "...the Obama administration and Congress have not made the kinds of investments that would put large numbers of Americans back to work and lead to robust economic growth. What is needed are the same things that have been needed all along: a vast program of infrastructure repair and renewal; an enormous national investment in clean energy aimed at transforming the way we develop and use energy in this country; and a transformation of the public schools to guarantee every child a first-rate education in a first-rate facility." Bob Herbert addresses AFN10 today at 1:15 PM ET

Bernanke projects persistent high unemployment. Bloomberg: "Federal Reserve Chairman Ben S. Bernanke said the U.S. recovery probably won’t quickly bring down the unemployment rate, which is likely to stay 'high for a while.' Given the depth of the recession, the recovery is 'moderate paced,'..."

"Weatherization program ramps up after slow start"> reports Stateline: "...As of March 31, the DOE reports that nearly 87,000 homes have been weatherized. That number puts the program on a path to meet the stimulus goal of weatherizing nearly 600,000 homes by March 31, 2012 ... The program also is beginning to show results in terms of putting people to work. On the administration’s list of top job creating programs, the energy efficiency program is credited with creating 10,638 jobs — right behind federal transit and highway planning and construction."

What deficit hysteria? Global investors flock to safety of US. Bloomberg: "The U.S. has supplanted China and Brazil as the most attractive market for investors as confidence in the global economic recovery wanes in the wake of the Greek debt crisis. Investors are putting their money on President Barack Obama’s stewardship of the U.S. economy..."

Uncertainty On Senate Climate Strategy

Sen. Chuck Schumer claims, then retracts, that Kerry-Lieberman would only be voted on as an amendment -- which would likely be defeated. The Hill: "A spokesman for Schumer, however, said later in the day that the matter remains in flux."

Grist's David Roberts still worried: "The whole reason the energy and climate portions of the bill were packaged together in the first place is to force lawmakers to accept the stick (cap) with the carrots (incentives for nukes, etc.). If they're allowed the opportunity to take all the good stuff with none of the bad stuff, of course they'll take it ... looks like Schumer was talking out of turn. Though of course what he said is just what lots of folks have been thinking for a while now. But I guess Dem leadership doesn't want to say it publicly yet."

Separate report from The Hill suggests Sen. Reid does want to move only a narrower energy bill without carbon cap: "Reid is poised to move an energy bill to the Senate floor that would not include a controversial proposal to cap carbon emissions, according to one of his deputies. [Whereas] Pelosi says the 'climate crisis' is her 'flagship issue.' ... [Meanwhile, GOP Sen. Richard] Lugar will hold a press conference this week on his proposed alternative to Kerry’s bill."

Lugar press conference may be a step towards a bipartisan bill. Mother Jones' Kate Sheppard: "There was a range of reactions from environmental groups on the Lugar effort, noting basically that his measure doesn't do enough on climate, but that it should be taken as a positive sign that he wants to engage on the subject. Ever since Lindsey Graham (R-S.C.) walked away from the Kerry-Lieberman effort, the bill has been lacking any Republican support."

Sens. Kerry and Schumer will meet on climate this week reports National Journal.

Politico sees lack of Senate consensus on climate bill: "...it’s unclear whether Democrats have the political will – or the votes – to deal with some of the most controversial proposals like a carbon tax or a cap and trade system ... a sign that Democratic leaders are skeptical that Lieberman and Kerry have the votes for their bill."

Kerry-Lieberman critics call on EPA to formally analyze competing Cantwell-Collins "cap-and-dividend" bill: "The chairman of the Senate Energy and Natural Resources Committee, New Mexico Democrat Jeff Bingaman, and the panel’s ranking Republican, Lisa Murkowski of Alaska, were among five senators who signed a letter, released Monday, that asked the Energy Information Administration (EIA) to analyze so-called cap-and-dividend legislation ... In addition to Bingaman, Murkowski and the two sponsors, the June 3 letter asking for an EIA analysis was signed by Ohio Republican George V. Voinovich — a moderate who has expressed reservations about the Kerry-Lieberman package but has said that he wants to address climate change. His interest could provide a significant boost to the Cantwell-Collins efforts."

EPA chief assails Murkowski attempts to prevent agency from regulating greenhouse gases, before Thursday's expected Senate vote: "Senator Murkowski's resolution would take away EPA's ability to protect the health and welfare of Americans from greenhouse gas pollution. The resolution would ignore and override scientific findings and allow big oil companies, big refineries and others to continue to pollute without any oversight or consequence. It would also gut EPA's authority in the clean cars program, a program that would help reduce our dependence on foreign oil and cut down on air pollution."

WH backing unlimited liability for oil spills. HuffPost: "On Monday evening, the White House confirmed that it favors the most recent piece of legislation that would drop any numerical ceiling to the amount of money an oil company like BP would have to pay for economic damages caused by a spill ... The strongest possibility is that it will ultimately be included as part of broader energy legislation -- a risky proposition considering the uncertainty surrounding that bill's passage."

Coast Guard to cut back on use of toxic dispersants in Gulf. McClatchy: "Concerns are mounting over the chemical dispersants BP's using to fight the oil spill in the Gulf of Mexico now that over 1 million gallons of the chemical have been pumped in Gulf waters ... a federal study says using the dispersants are less harmful to the environment than allowing the oil to reach shorelines ... retired Coast Guard Adm. Thad Allen said Monday that officials are now worried about the toxicity of the chemicals — Corexit 9500 and Corexit EC9527A — and will begin cutting back on their use. 'I believe they're worthwhile. But I think there's enough concern as we approach the million-gallon mark ...regarding the unknown implications of that amount of dispersants,' Allen said."

"BP well may be spewing 100,000 barrels a day reports McClatchy: "'In the data I've seen, there's nothing inconsistent with BP's worst case scenario,' Ira Leifer ... a member of the government's Flow Rate Technical Group, told McClatchy ..."

ProPublica uncovers docs showing BP was warned about neglect: "A series of internal investigations over the past decade warned senior BP managers that the company repeatedly disregarded safety and environmental rules and risked a serious accident if it did not change its ways. The confidential inquiries, which have not previously been made public, focused on a rash of problems at BP's Alaska oil-drilling unit that undermined the company’s publicly proclaimed commitment to safe operations."

Jockeying Ahead Of Wall St. Reform House-Senate Conference

Stronger Volcker Rule in exchange for weaker derivatives reform may be on tap. Politico: "Wall Street executives have been counting on the administration, which is playing a central role in final negotiations, to help them kill Lincoln’s derivatives language. But they do not expect much support from the White House on battling back a strong Volcker rule, which President Barack Obama has supported."

Economist Joe Stiglitz defends tough derivatives reform in Politico oped: "it is imperative that Section 716 of the Senate bill be retained. It protects both taxpayers and investors by imposing a fiduciary duty on swap dealers; combating fraud; and reducing the scope for manipulation and insider trading. It also closes the key loophole on foreign exchange swaps ... The 'discouragement' of over-the-counter products needs to be more than words..."

Some contend that Lincoln's defeat today would also mean doom for her derivatives proposal. CQ: "...Democrats still disagree strongly among themselves over major issues, including the regulation of over-the-counter derivatives ... If Lincoln should lose Tuesday’s primary runoff against Arkansas Lt. Gov. Bill Halter, Democratic conferees may be more likely to drop her derivatives language."

After financial crisis commission subpoenas Goldman Sachs, NYT edit board asks "What Is Goldman Hiding?": "According to the panel’s chairman, Phil Angelides, Goldman has either not responded to requests — stretching back to January — for documents and interviews or has submitted data that are so voluminous or disorganized as to be useless ... The commission’s final product is due on Dec. 15. If Goldman’s lawyers think they can play out the clock, Congress had better disabuse them of that notion right now..." Phil Angelides addresses AFN10 at 2 PM ET

Breakfast Sides

President holds health care "tele-town hall" with seniors at 11:30 AM ET.