March 11-12, 2009

Mar 11 13:59 Democrats' Strategy is Working
Mar 11 17:33 Blogger Conference Call Notes

Mar 12 02:05 The Early Verdict Is In
Mar 12 09:11 Oil Companies Move Rather Than Deal With Obama's Tax Policies
Mar 12 10:10 FINALLY!!! Someone That Gets It
Mar 12 11:23 The Press vs. The Politicians
Mar 12 14:46 Two Months Too Late & Too Many Taxes

Prior Months: Jan Feb

Prior Years: 2006 2007 2008



Democrats' Strategy is Working


The Democrats' strategy of focusing the debate on who the leader of the Republican Party is working, at least in the media. Sadly, the media has taken this question seriously. To their credit, the House Republican leadership team of John Boehner, Eric Cantor and Mike Pence haven't taken the bait :
Speaking with reporters this morning, House Republican leaders criticized President Obama's budget and blasted what they say is a lack of focus on the economy.

"It's as if the administration thinks it's a part-time job to address this economy," said House Minority Whip Eric Cantor. "We're at the White House last week for two hours talking about health care while the Dow drops 200 points." Going forward, Cantor said, "our focus will be about jobs; jobs are the path to putting this country back on track."

The GOP leaders, including John Boehner, Mike Pence and Cathy McMorris Rodgers, also called on Obama to veto the omnibus appropriations bill that the Senate is expected to pass today.

Also present was freshman Rep. Cynthia Lummis (R-Wyo.), who argued against what she said is "the largest budget proposal in history." Pence chimed in on the budget as well, saying it "spends too much, taxes too much and borrows too much, and the American people know it."
The team of Boehner, Cantor and Pence haven't been distracted by the White House's shiny ball like the media got distracted. They're continually talking about how too many of President Obama's policies create inflation. They've talked about how President Obama and Tim Geithner still haven't cobbled together a plan to fix the banking system.

In short, the Obama administration has played political games while Rome, aka the economy and the banking system, have burned.

The other thing that the Democrats' strategy is designed to distract attention away from is the fact that the Obama administration is having difficulties filling out cabinet posts, especially in the Treasury Department.

This is just another bit of proof that the Obama administration is in over its heads. Thus far, Tim Geithner hasn't put a plan together for TARP II, which has caused hundreds of billions of capital to flee the stock market. Thus far, the they've alienated our most trusted allies , Israel and Great Britain. In addition, their policies have destabilized Iraq and Afghanistan and strengthened Iran, the Taliban and Hezbollah.

At minimum, that these things haven't gotten more coverage is aggravating. It shows how easily duped the media often is. The Obama administration is relying on the media following shiny objects instead of focusing on important things. That's why their strategy is working. That's also why we need alternative media watching the erstwhile reporters. We simply can't trust the paid media to maintain focus on what's important.

It's a blogger's responsibility to point the spotlight at the Democrats' tactics because we're the only people who (a) either understand the White House's tactics or (b) won't pretend to be distracted by the shiny object.



Posted Wednesday, March 11, 2009 2:02 PM

Comment 1 by Bogus Doug at 11-Mar-09 11:37 PM
You're confusing strategy with tactics. Otherwise, nice observations.


Blogger Conference Call Notes


I just finished participating in a blogger conference call hosted by House Republican Chairman Mike Pence and Cathy McMorris Rodgers, the vice chair of the House Republican Conference on the topic of the economy. Although the notice for the conference call said we'd be talking about President Obama's plan, more time was spent talking about a bicameral Rpublican budget that would soon be rolled out.

Chairman Pence gave a brief update on what congressional Republicans were doing to start the call, followed by Rep. Cathy McMorris-Rodgers. The thing that was evident from the outset was that House and Senate Republicans were united in the belief that "President Obama's budget taxes too much, spends too much and borrows too much."

Chairman Pence said that Republicans, both from the House and Senate, would be talking about the Republican's alternative budget over the next 2-3 weeks, followed by the unveiling of the alternative budget. When one of the bloggers said that they were worried that the Republicans' alternative budget plan wouldn't be bold enough, Chairman Pence assured us that this alternative budget would be sufficiently bold, that it would create jobs and that it would have significantly different policies that would help us get on the fast path to prosperity.

John Hawkins asked an interesting question, which he has posted here :
The CBO estimated, before the stimulus bill, that the economy would recover in the 2nd half of 2009. So, do you think it's fair to say that if the economy recovers in the 2nd half of 2009, it's just doing what it would have without the stimulus and if it takes longer, the stimulus and the other government interference caused it.
Here's Chairman Pence's response:
I believe in the resilience of the American economy and I believe that this pattern of borrowing, spending, and bailout delay our way back into prosperity. If the economy recovers in the timeframe you discussed, it'll be despite the government interference, not because of it.
It's becoming clear that they've done their homework, especially with regards to a great mantra that will sink in quickly. It's equally clear that the alternative budget won't be a 'tinkering around the edges' budget. This alternative budget will be fairly bold, especially considering the fact that Paul Ryan is the senior Republican on the committee. If there's anything that Rep. Ryan isn't, it's bashful.

Regular readers of this blog know that I've been a Mike Pence fan for quite some time. Today's conference call hasn't changed my opinion on that. What's becoming clear, though, is that Cathy McMorris-Rodgers is an impressive spokesperson for the GOP Conference.



Posted Wednesday, March 11, 2009 5:38 PM

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The Early Verdict Is In


Color me shocked...shocked, I tell you. According to this WSJ article , Wall Street executives have given President Obama and Treasury Secretary Timothy Geithner failing grades thus far:
U.S. President Barack Obama and Treasury Secretary Timothy Geithner received failing grades for their efforts to revive the economy from participants in the latest Wall Street Journal forecasting survey.

The economists' assessment stands in stark contrast with Mr. Obama's popularity with the public, with a recent Wall Street Journal/NBC poll giving him a 60% approval rating. A majority of the 49 economists polled said they were dissatisfied with the administration's economic policies.

On average, they gave the president a grade of 59 out of 100, and although there was a broad range of marks, 42% of respondents rated Mr. Obama below 60. Mr. Geithner received an average grade of 51. Federal Reserve Chairman Ben Bernanke scored better, with an average 71.
Meanwhile, King is asking if Mr. Geithner shouldn't be doing something other than appearing on the Charlie Rose Show. You'll excuse King for forgetting that this administration isn't about getting things done. FYI King- It isn't about getting things done or solving problems. It's about maintaining a steady stream of meaningless yapping. Apparently, solutions are above this administration's pay grade.

What this administration lacks in solutions, it makes up for in creating problems:
However, economists' main criticism of the Obama team centered on delays in enacting key parts of plans to rescue banks. "They overpromised and underdelivered," said Stephen Stanley of RBS Greenwich Capital. "Secretary Geithner scheduled a big speech and came out with just a vague blueprint. The uncertainty is hanging over everyone's head."

Mr. Geithner unveiled the Obama administration's plans Feb. 10, but he offered few details, and stocks sank on the news. The Dow Jones Industrial Average is down almost 20% since the announcement, as multiple issues have weighed on investors' confidence. The Treasury secretary has since appeared before Congress and offered more specifics but has said action on key parts of the plan still is weeks away.
Before President Obama's inauguration, I told friends that this would be the first time that President Obama wouldn't be judged on his speaking skills but on his accomplishments. President Obama still gives great speeches, mostly because of his TelePromptr. Despite all of the well-delivered speeches he's delivered, his approval ratings continue to sink.

That's especially true with economists. It isn't understatement to say that they aren't impressed with his policies or Mr. Geithner's proposals.

One thing that Main Street has in common with Wall Street is that neither Street trusts the Obama administration thus far. That isn't etched in stone...yet. Main Street hasn't started trusting the Obama administration yet because he's broken a number of important campaign promises, especially his earmarks promise and his promise to be a postpartisan politician.

Despite what Sen. Schumer says, the average American cares about those porky little amendments because they think of them as either a re-election tool or a corruption vehicle. Or both.

Wall Street doesn't trust the Obama administration because he's spent too much time yapping about global warming, cap-and-trade, health care reform education and Rush Limbaugh. Wall Street sees President Obama as distracted. I suspect that they see him as Bill Clinton's opposite. After all, Bill Clinton "focused like a laser beam on the economy." At times, President Obama seems disinterested in the economy, especially about the banking system.

That disinterest isn't earning Wall Street's trust. President Obama can't let that slide much longer without risking a backlash in 2010.



Posted Thursday, March 12, 2009 2:08 AM

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Oil Companies Move Rather Than Deal With Obama's Tax Policies


According to this article , President Obama's tax policies are literally causing oil companies to move to tax-friendly Switzerland:
The tidy towns and mountain vistas of Switzerland are an unlikely setting for an oil boom. Yet a wave of energy companies has in the last few months announced plans to move to Switzerland, mainly for its appeal as a low-tax corporate domicile that looks relatively likely to stay out of reach of Barack Obama's tax-seeking administration.

In a country with scant crude oil production of its own, the virtual energy boom has changed the canton or state of Zug, about 30 minutes' drive from Zurich, beyond all recognition. Its economy was based on farming until it slashed tax rates to attract commerce after World War Two.
This is entirely predictable. Democrats have always hinted that tax policies don't change companies' behaviors. That's nonsense. This article is proof that tax policies, especially extremist tax policies like President Obama's, dramatically change corporate behavior.
Over the past six months companies including offshore drilling contractors Noble Corp and Transocean, energy-focused engineering group Foster Wheeler and oilfield services company Weatherfield International have all announced plans to shift domicile to Switzerland.

"Switzerland has a stable and developed tax regime and a network of tax treaties with most countries where we operate," Transocean Chief Executive Bob Long said in a statement in October, when it announced its move. "As a result, the redomestication will improve our ability to maintain a competitive worldwide effective corporate tax rate."
President Obama's extremist tax policies are driving companies out of America. This isn't unlike what happened when a Democratic congress tried raising taxes on luxury items such as yachts. Democrats figured that it would increase tax revenues by soaking the rich for luxury items. Instead, it drove yacht sales away from the United States. Rather than soaking the rich, the evil rich people simply bought their yachts from tax friendly countries in the Caribbean.

'The rich' will always have these types of options. They'll change their habits just like TCF is doing :
A subsidiary of Wayzata-based TCF Financial Corp., TCF National Bank intends to open a branch in Sioux Falls next month. The bank's headquarters will move there April 1, said spokesman Jason Korstange. The change will have no impact on TCF's operations or employment levels in Minnesota, he said.

"We've been thinking about it for some time," Korstange said. "We're moving our headquarters there so we can save money."
It's time that Democrats admitted that tax policies have consequences.

This isn't the only way in which President Obama's tax policies will hurt our economy. I'm reminded by this post about yesterday's blogger conference call that Mike Pence said this about cap-and-trade:
Congressman Pence noted a study from MIT estimating that the cap and trade program will increase energy costs to such a great extent that the average household will, in effect, be charged a tax of over $3000 a year.
It isn't just that the tax increase will be seen in a person's heating bill. It's that companies that see their heating bills rise will pass those increases along to consumers in much the same way that rising gas prices caused a spike in grocery prices.

It's time that President Obama stopped pursuing transformative policies if they'll cripple America's economy. We don't need transformation if that transformation leads to higher prices and less money in families' wallets.



Posted Thursday, March 12, 2009 9:16 AM

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FINALLY!!! Someone That Gets It


Congratulations to the Hill Magazine for this article . In writing this article, they're the first national media organization that gets beyond the 'shiny object argument' of whether Rush Limbaugh leads the Republican Party or if Michael Steele leads it. Here's the title of their article:
Rush may not lead GOP, but Cantor and Ryan may
I'd like to be the first to congratulation Michael O'Brien for being the first reporter to burst the Beltway Ecochamber's noise machine. Here's what Mr. O'Brien wrote:
After a week of intense media coverage and debate over who leads the Republican Party, two House lawmakers have worked to stand out more as public voices for the GOP.

House Minority Whip Eric Cantor (R-Va.) and House Budget Committee Ranking Member Paul Ryan (R-Wis.), via spates of media appearances and accolades by party elders, have begun to distinguish themselves as the next generation of Republican leaders.

"Well, we've got a new generation of leaders now in the same fight," House Republican Leader John Boehner (R-Ohio) said at CPAC last weekend. "People like Eric Cantor, Mike Pence, Thad McCotter, Paul Ryan."

Both Ryan and Cantor made waves during the interregnum between the 110th and 111th Congresses, with Cantor replacing Rep. Roy Blunt (R-Mo.) as minority whip, and Ryan mulling a challenge to Boehner, only to quickly rule it out after news broke.

Since then, both have taken roles as young, public faces for the party.

In the past week, Ryan, for instance, made appearances on "Fox News Sunday" and CNBC, while penning an op-ed for The Wall Street Journal outlining Republican budget priorities. He also won headlines for partnering with Sen. Russ Feingold (D-Wis.) to write legislation proposing a more constitutional line-item veto.
When I read this, I rejoiced. Democrats seem to distract the Beltway media with what I'm calling 'shiny object distractions'. Just like a parent can get a child's attention by showing them a shiny object, Democrats have figured out that they can distract the Beltway media's attention with phony arguments like the Rush argument.

Variations of this are questions of whether Rush Limbaugh or Newt Gingrich is the ideological leader of the GOP or whether the GOP has a national leader. Frankly, I don't care about any of these questions. I won't care about whether the GOP has a national leader until February, 2012. Right now, I'm focusing on the talent found in the House GOP leadership.

We aren't electing a president in 2010; we're electing a (more conservative) congress. Until that election is in the rearview mirror, the other stuff is just foolishness.

Now the Democrats are targeting Rep. Cantor. They'll pay a price for that, too. They're attempting to make Rep. Cantor the latest conservative boogeyman, just like they've done with Newt, Rush and Tom DeLay. While that might provide them with a temporary distraction, it'll hurt them overall.

When Congressional Republicans assemble to unveil their alternative to President Obama's budget, Rep. Cantor and Rep. Ryan will have greater name recognition and additional visibility. When they make the TV talk show rounds, they'll be pushing an appealing alternative to President Obama's budget. (President Obama's budget is best described as a budget that only a spendaholic could love.)

I've written before that Paul Ryan is always the smartest man in the room when it comes to budgetary issues. Thinking about it, I'd say he's this generation's John Kasich. All Kasich did as Budget Committee chairman was put together budgets that balanced 5 straight years.
And as Steele works to get his footing at the RNC, Cantor and Ryan have secured the backing of other GOP all-stars.

"I think there are some very talented people out there on the Republican side," Vice President Dick Cheney said in January shortly before leaving office. "I think of people like Jon Kyl, who is the Whip in the Senate; or John Thune from South Dakota; or over on the House side, people like Eric Cantor, for example, from Virginia; Adam Putnam; Paul Ryan, from Wisconsin."

Former House Speaker Newt Gingrich (R-Ga.), meanwhile, said this week that Cantor would one day be speaker.
I can easily picture Eric Cantor as Speaker. I'm positive that House Minority Whip won't be his last leadership position. Perhaps that's what President Obama and Rahm Emanuel are figuring out:
Cantor was reportedly at the president's table; White House chief of staff Rahm Emanuel was near Ryan, and warned the Republican with a laugh, "Don't be a jerk."
Rahm Emanuel has all the charm of a seasick crocodile. If anyone needs admonishment for being a jerk, Mr. Emanuel should with the man in the mirror. Emanuel is nothing more than a one-note hyperpartisan. He's good at creating distractions to take focus away from the Democrats' weaknesses.

Thankfully, the leadership of Eric Cantor, Paul Ryan and Mike Pence always brings the media's attention back to what's important rather than let them be distracted by the latest shiny object.



Posted Thursday, March 12, 2009 10:15 AM

Comment 1 by Mr. D at 12-Mar-09 11:01 AM
Those are the guys. Ryan is very sharp and young - not yet 40. As much as I'd like to see him stay in the House and keep building it, he'd probably be well advised to take on Jim Doyle for the governor's race in the next cycle. He could clean up things and be positioned for bigger things later on.


The Press vs. The Politicians


If ever there was a matchup that the public wished would end in a tie for third place, a press vs. politicians matchup would inspire dreary thoughts. That said, I agree with Mary Lahammer's latest post on the reporters' accessability flap. Here's what Mary wrote:
Here's the latest in the effort to change media access in the House. Minority Leader Marty Seifert said he's hearing "this is a big deal from my members." So today on the floor he has a motion saying:
to ensure that the fundamental constitutional right of freedom of the press and freedom of expression are not restricted, and that the long-standing tradition of the Minnesota House of Representatives with regard to press access to committee meetings and floor session of the House is not abridged.
Majority Leader Tony Sertich answered some pointed questions on press restrictions last night on Almanac: At the Capitol and then Seifert expressed some similar concerns about partisan "trackers" with cameras trying to capture members doing embarrassing things. I noted that maybe publicly elected officials, in public meetings, in public buildings just shouldn't do embarrassing things.
I agree with Marty Seifert 99 percent but I'm siding with Mary this time. It simply takes a little more discipline on the politicians behalf. To be fair to Marty, though, he's trying to uphold the principles of the First Amendment. Tony Sertich isn't.

That said, a strong case can be made that people wandering the halls looking for 'gotcha moment videos' aren't enhancing the media's image either. While I agree it's their right, I'd argue that 'gotcha moment journalism' isn't the type of thing that trustworthy news organizations typically engage in.

I'd argue that reporting should be about providing news consumers with important information. If it doesn't meet that simple threshold, then restraint should be exercised.

This flap erupted earlier this week when the DFL tried limiting what reporters could or couldn't do during committee hearings and floor sessions. At that time, media organizations from across the political spectrum protested loudly and persistently. The DFL's heavyhanded tactics went a few miles too far.

What's most infuriating is that the DFL's attempt to limit reporters' ability to report the news is unconstitutional. It's impossible to reconcile the legislature's attempt to limit reporters' abilities to report with the First Amendment's freedom of the press provisions.

One thing that I'm learning through this, though, is that reporters like Esme Murphy, Mary Lahammer and Pat Kessler are strongly pro-blogger. Yeseterday, I talked with a member of the Capitol media about a different subject. After concluding that conversation, I asked what this member of the Capitol media thought about the House DFL's attempt to limit reporters' movements.

This person said that the media shouldn't limit themselves, that bloggers do things that TV reporters do and that print journalists don't do. In essence, this journalist said that there's plenty of information and angles to go around. I wholeheartedly agree with that perspective.

It doesn't take rocket science to figure out that some stories are tailored for visual media while others are tailormade for print media while still others are best told using multimedia. TVs and newspapers can't devote the time or space to long analysis pieces. That's a situation that's a perfect fit for blogs. Candidate debates are great for all three types of media.

This prominent member of the Capitol media said that bloggers have played a significant role in reporting news. That meant that we're just as much a journalist as anyone in this person's eyes. I agree with that.

Now it's time that the DFL majorities in the House and Senate figured that out and stopped trying to limit reporters movements. After all, legislators work for MInnesotans, not vice versa.

UPDATE: Mary Lahammer just posted this update:
Sertich noted our show on the floor today after a dramatic speech from Seifert where he talked about reporters in "exile" and it getting "out of control." Sertich said "I thought I was the theater major." Rep. Gottwalt said he understood Sertich was an actor, but the press deals in fact. Other Republican members were concerned about being "told to shut up" and said DFLers "got caught"..."trying to chill information." The motion passed without a single "no" vote. A victory for the First Amendment.
It is indeed a victory for the First Amendment. Unfortunately, it's a fight that shouldn't have been necessitated in the first place.



Posted Thursday, March 12, 2009 11:43 AM

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Two Months Too Late & Too Many Taxes


If MPR's reporting about the DFL's budget is accurate, which I believe it is, then I'll summarize it this way: It's two month too late and it's got too many taxes in it. Here's what MPR is reporting:
Senate DFLers have scheduled a news conference this afternoon to reveal their proposal to close the state's projected $4.6 billion budget deficit.

They're considering nearly $1 billion in cuts to public education from early childhood through 12th grade, according to targets created by Senate fiscal staff and distributed to DFL senators.

The targets also call for $193 million in cuts to higher education, $627 million in cuts to health and human services, and $210 million in cuts to tax aids and credits. The plan also includes $1.1 billion in K-12 shifts, and calls for $2 billion in unspecified "new revenue."

Senate Majority Leader Larry Pogemiller said his caucus is committed to deep reductions in spending because of the state's budget problem.

"Our duty is to balance the state budget, and to do it in a responsible way, and to be responsible and transparent with the public. You have to do a balanced budget over the long term," said Pogemiller. "We have a $6.4 billion structural imbalance. We just have to make an adjustment there. We just have to."

Sen. Leroy Stumpf, DFL-Plummer, confirmed that his caucus is talking about $952 million in cuts to E-12 education, but he said as much as $650 million of those cuts could be backfilled with federal stimulus money.
Now that the Senate DFL leadership has hinted at what their budget priorities are, we can finally have a comparison and a discussion between their budget and Gov. Pawlenty's budget.

Before we get into that debate, though, it's important to ask a few questions. Here's something worth thinking about: The deficit forecast and stimulus numbers weren't released that long ago but the DFL already is outlining their alternative budget. It wasn't that long ago that the DFL was whining about how they couldn't put a budget together , especially considering how Gov. Pawlenty had his people working endlessly on his budget for 7 1/2 months:
Kelliher notes that the governor had all of the state's commissioners and finance experts working on the budget for months. The Legislature does not have those resources.

"He's had 7+ months. It's unrealistic to expect us to respond in just a few days," she said.
It's only a week since the final deficit forecast was announced. It hasn't been that long since the stimulus bill was signed and the dollars confirmed. Suddenly the outlines of a DFL budget appear? How can that happen, especially considering how the DFL theoretically didn't have the staff to complete such a daunting task?

Could it perhaps be that the DFL had an almost finalized plan before the legislative session started? Perhaps they've put something together after taking criticism for not submitting an alternative? Let's remember that the SC Times' editorial criticized the DFL's inaction :
This legislative session convened Jan. 6. After eight weeks, only four bills have made it to Gov. Tim Pawlenty's desk. Granted, the state has known for months that agreeing on a biennial budget plan would be the dominate issue. And even tradition might dictate that only the governor's plan is unveiled ahead of this spring forecast.

But any tradition that allows the Legislature to convene for two months and make no effective progress not just on the budget, but on other legislative matters needs to be revised.

Again, given we're counting the public's nickels, how many could have been saved by not convening until this week? And, really, what business of the people would not have been done?
The DFL was getting hit by the Right Blogosphere and traditional media outlets alike. I suspect that that's the most likely reason they put something together this quickly.

Based on the sketchy outlines of the DFL's plans, there doesn't seem to be anything in it that will position Minnesota for a sustained period of prosperity. That said, I didn't expect there to be.



Posted Thursday, March 12, 2009 2:46 PM

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