Each morning, Bill Scher and Terrance Heath serve up what progressives need to affect change on the kitchen-table issues families face: jobs, health care, green energy, financial reform, affordable education and retirement security.
Will Obama Go Big On Climate Tonight?
Can Obama tonight light a fire under the Senate to pass a climate bill? Politico: "While advocates of a cap-and-trade plan are thrilled by the prospect that Obama will enter the fray, it’s very much a fray — with Democrats divided, Republicans wary and everyone watching the days tick away to November’s elections ... A Senate source close to the climate bill effort said Obama’s prime-time pitch needs to go beyond a simple explanation of the need for energy legislation ... Obama needs to start appealing for the votes from many of the same lawmakers who have played a role in killing previous climate bills along both regional and partisan lines. 'This can’t be a speech just for beyond the Beltway,' said the aide. 'He needs to call for a cap on carbon dioxide. It needs to be economywide. It needs an investment in clean-energy technologies. He needs to conceptually describe the Kerry-Lieberman bill.'"
Address preceded by email from President Obama urging support for comprehensive climate protection and clean energy jobs bill. It's Getting Hot In Here: "Obama is starting to talk the right way again, and he needs a signal that people support him in this. Please help by signing the White House Clean Energy petition here ... expect [that] the president will use the level of support the petition receives to gauge just how hard he ought to push for a climate bill this year."
Marc Ambinder says it's unclear how far Obama will go on climate tonight: "...the White House is remaining mum ... One clue: Is the DNC's Organizing for America readying an energy push? Yesterday's email from the President to his list may have been a trial balloon, for 'we're certainly going to direct people's energy to it who are interested in the issue as appropriate,' says a party official, which is not exactly a ringing endorsement..."
Coal Tattoo notes that most coal-state Senators backed the President and the EPA on last week's climate vote: "...only two Democratic Senators from states with any significant coal production voted in favor of the resolution pushed by Sen. Lisa Murkowski, R-Alaksa. They were West Virginia’s Jay Rockefeller and Indiana’s Evan Bayh."
House members challenge BP on cost-cutting in advance of Thursday congressional testimony from CEO Tony Hayward. Bloomberg: "The letter from [House energy] committee chairman Waxman and subcommittee head Stupak listed a series of 'shortcuts to speed finishing' the work, quoted a BP engineer calling it a 'nightmare well' and asked Hayward to respond in his testimony. The 14-page letter lays out the mistakes BP made in a way that is both understandable and damning..."
Deepwater Horizon ship was registered in the Marshall Islands, leaving US with little responsibility for safety oversight. LAT: "Since World War II, thousands of ships and rigs from the U.S. and other industrialized countries have been registered in less-developed nations like the Marshall Islands. Some members of Congress are expressing concern about the Marshall Islands and other countries that outsource their inspection responsibilities to private companies. Coast Guard officials confirm that more rigorous inspection procedures apply to the relatively small number of rigs registered in the U.S. A foreign vessel will be reviewed by the Coast Guard, but the inspection is relatively cursory, relying on inspection reports prepared by outside firms that have been paid directly by the owners of the vessel."
Obama fills out oil spill commission, including NRDC head reports CBS.
The escrow account Obama is demanding from BP sounds like a good idea, unless it's too small. Daily Kos' Jed Lewison: "The big risk with the account is that if it is too small (either at the outset or because the spill continues longer than people expect and it doesn't grow), it could end up effectively being a bailout to BP by limiting their exposure to liability."
Boost For Derivatives Reform
Volcker, Fed presidents give boost to Lincoln derivatives firewall. Politico: "The Fed presidents in Dallas and Kansas City sent letters of support Monday to Sen. Blanche Lincoln ... 'Such [derivatives] activities should be placed in a separate entity that does not have access to government backstops,' they wrote ... Paul Volcker told the Financial Times that he was warming up to the Lincoln derivatives language he once opposed [saying] it is now 'a relevant question' whether keeping swaps desks within bank holding company would do damage."
WH continues to oppose Lincoln, but other Fed presidents may speak out reports HuffPost: "'It shows the access of the major Wall Street banks in the Treasury Department in spades,' one Senate aide said on the condition of anonymity. Assistant Treasury Secretary for Financial Institutions Michael S. Barr is said to be leading Treasury's efforts. Senate aides say that more letters of support from other regional Fed presidents are on the way."
"Aides said lawmakers are likely to put off resolving the [derivatives] conflict until late in the House-Senate conference process." reports W. Post.
Rep. Barney Frank pushes to weaken credit agency provision at today's conference committee session. CQ: "One of the biggest targets was a controversial provision in the Senate’s bill designed to prevent companies from shopping for the 'best' credit rating agency ... Frank suggested tossing the amendment in favor of a requirement that the Securities and Exchange Commission conduct a study on conflicts of interest ... 'The House language is very concerning,' [Sen. Al Franken spokeswoman Jess] McIntosh said..."
Big banks manipulating community banks to defeat limits on debit card fees. Politico: "...even big bank executives know they’re about as popular as a root canal these days, and the last thing they need is to look like they’re fighting a plan that could translate into savings for consumers. Their solution? Leave the lobbying on the issue to the equivalent of mom and pop operations — community banks, credit unions and even some state treasurers."
Preliminary House ethics investigation into 5 GOPers and 3 Dems regarding improper influence on financial reform bill. The Hill: "The letter [from the House ethics cmte] seeks wide-ranging fundraising and campaign contribution data from lobbyists about their dealings with the eight legislators dating back to the beginning of last year ... It is difficult to find a common thread among the eight members the OCE is investigating. The subjects of the probe range from the left, such as Watt, to the conservative, including Republican Study Committee (RSC) Chairman Price and Hensarling, a former RSC chairman." More from NYT.
Jobs Realists V. Deficit Hysterics
Grousing from Congress that $50B in state & local aid won't pass because of weak WH effort. W. Post: "According to Democratic aides and key lawmakers, the White House has done little to allay such [deficit] concerns. The administration has sent mixed messages on spending, they said, ... [and] has been largely absent from the congressional debate ... Senate leaders this week were considering scaling back the jobs bill to win over moderates such as Nelson and Sen. Olympia J. Snowe (R-Maine) in time for a critical vote later this week. Meanwhile, House Democrats were talking about slashing another Obama priority -- money to preserve public teaching jobs -- from $23 billion to $10 billion and covering the cost with unexpended funds from last year's stimulus package."
Dean Baker puts a number on the economic damage deficit hysterics in the Senate would do: "Senator Nelson Proposes to Reduce GDP by $120 Billion, Eliminate 800,000 Jobs."
Sen. Reid moves to advance latest jobs bill Wed., but 60 votes not yet in hand. CQ: "[Sens. Reid and Baucus] proposed restoring $24 billion in Medicaid assistance to states that the House had dropped, and they softened a proposed tax hike on the 'carried interest' earned by private equity managers to lessen the impact on the venture capital industry ... Some Democratic senators say the bill costs too much; others are still not satisfied with the carried-interest provision ... Republican Olympia J. Snowe of Maine ... remains unhappy with the bill and its revenue-raising offsets."
NYT edit board reminds that jobless aid has been cut off for some while Senate haggles over hedge fund tax loophole: "Some senators, including Democrats, have balked at an unrelated provision that would begin to close a tax loophole enjoyed by some of the richest Americans. You heard right. Desperately needed unemployment benefits have been held hostage to a tax break for the rich, and the Senate’s Democratic leadership has had to delay and finagle to get its own caucus in line."
Rep. James Clyburn sets low expectations for approving $50B in state and local aid. CQ: "Asked if House Democrats are concerned about increased federal spending and a budget deficit of some $1.4 trillion, Clyburn said, 'Absolutely. They are. No question about that.'"
NYT's Bob Herbert rips deficit hysterics preventing sufficient actions on jobs and state aid: "State and local governments are obliged by law in nearly all cases to balance their budgets, but their revenues have fallen off a cliff because of the long economic downturn. Thus, they are slashing away at important government services, laying off workers and raising fees and taxes. For the federal government to stand by like a disinterested onlooker as this carnage plays out would be crazy ... The concerns about the effect that this aid might have on long-term federal deficits are misplaced, because the effect would be barely noticeable — if at all."
The AFL-CIO comes urges Senators to support sending aid to cash-strapped states, and extending COBRA subsidies to unemployed workers. James Parks:: "In a letter to the Senate last week, Bill Samuel, AFL-CIO Government Affairs director, urged senators to move quickly on the bill. He told senators the AFL-CIO supports an amendment offered by Sen. Max Baucus (D-Mont.), which provides relief for cash-strapped states, financing for local infrastructure projects and extension of federal unemployment benefits. We also are backing a proposed amendment by Sens. Bob Casey (D-Pa.) and Sherrod Brown (D-Ohio) to the appropriations bill for the wars in Iraq and Afghanistan that would extend the COBRA subsidy for laid-off workers."
House deficit hysterics may not support $30B fund for small biz lending this week. The Hill: "Freshman Rep. Gerry Connolly (D-Va.) backed more help for small businesses but wouldn’t commit to voting for the bill because House leaders had yet to find a way to offset the fund’s cost ... A Congressional Budget Office report in May said the bill would cost $3.4 billion over five years."
Conservatives think the answer to the jobs crisis is to pay public workers less. W. Post: "This week, as part of a GOP amendment to a Democratic [jobs] bill ... Senate Republicans are including a proposal that would freeze pay levels for the 2 million people who work for the government. ... 'We're paying too many people too much money,' said Rep. Jason Chaffetz ... Democrats argue that the GOP proposal for federal pay is largely symbolic. The national budget deficit last year was more than $1 trillion; the pay freezes would save less than $3 billion ... Randy Ervin, legislative director for the National Federation of Federal Employees, said that if such legislation passed, it would 'greatly undermine the ability of federal agencies to recruit and retain a qualified workforce.'"
Where are the deficit deals from the deficit hawks? They haven't put much on the table yet. W. Post's Ezra Klein:: "The reality of a recession that requires more spending now paired with a deficit that will require substantial cutbacks later makes the basic contours of a deal obvious: Trade short-term stimulus for long-term deficit reduction. This is, in fact, a particularly good time for deficit hawks to make this deal. ... But few seem very interested in making these deals."
ataxingmatter mocks the fiscal hypocrisy from Sen. Kyl as he attempts to protect multimillionaire heirs from paying estate taxes: "...at the same time that they whine about the deficit, cry crocodile tears over the cuts they so regretably find themselves forced to make in Social Security, they can contemplate another giveaway entitlement package for the ultra wealthy--one that will cost $15 billion a year."
Rortybomb reminds deficit hysterics that 2010 is not 1982: "I wonder if part of the motivating factor for beltway insiders and talking heads, if not academia, is that they vaguely remember the Federal Reserve 'getting tough' in the early 1980s, introducing pain, and then the problems went away. And nowadays ... Paul Volcker is back in the headlines, and it’s like it’s 1982 all over again ... [However,] our short-term interest rates are 0%, 10 year treasuries are at 3.25%, and 30-year fixed around 4.75%, and we haven’t had huge strikes in forever, this doesn’t look like 1982."
Breakfast Sides
Conservatives criticize new health care rules designed to prevent extreme rate hikes and benefit cuts. Politico: "But critics of the reform law said Monday that the administration’s new rules clamp down too hard — and would effectively eliminate the old plans many Americans have and like. 'Change is coming for a lot of people, whether they want it or not,' said Sen. Chuck Grassley ... Health and Human Services Secretary Kathleen Sebelius said Monday that the rules could help stop insurance plans or employers from substantially raising rates or cutting benefits ... Republicans on the House Energy and Commerce Committee say the regulation is likely to make it difficult for people to remain on their current policies."
Michael Tomasky previews his essay in the next issue of Democracy, urging progressives to guard against despair: "...I basically take on this idea that Obama compares terribly unhappily to FDR and LBJ. Which is true enough - when your idea of 'history' is reduced to those moments of great liberal triumph. Actual history is slower and messier. FDR and LBJ had their moments of backtracking too. Point: progressive change always takes time and faces ferocious opposition."
