NDN Blog

Leader: Nukes for Kooks

- North Korea attempted to put a satellite into space on Sunday-- an act that has been universally understood as a test of a new, long-range missile. Despite a braggy report from Pyongyang that a satellite was in orbit, broadcasting music singing the praises of President Kim Jong-Il, and his father Kim Il-Sung, the NY Times reports that the test was a failure, with the missile's payload splashing into the Pacific Ocean.  Still, the test was a marked improvement over the DPRK's previous failed missile test in 1998. 

- Speaking in Prague yesterday, President Barack Obama condemned the launch, and insisted that the UN Security Council do the same.  In an emergency session, the UNSC couldn't agree on language for a condemnation, and will meet again to discuss it further.  Meanwhile, President Obama has proposed a new global effort at arms control, with the goal of ridding the world of nuclear weapons.  

Politics

- As Barack and Michelle's excellent adventure continues into Turkey, President Obama addressed the Muslim-majority country and spoke in favor of Turkey's accession to the EU. A new poll finds that most Americans support his outreach to the Muslim world. 

- The WaPo profiles our pal Alec Ross, and looks at the new role he'll play at the State Department, as senior advisor on innovation to Secretary of State Hillary Clinton.

- Some absentee and military ballots have yet to be counted, but the special election to fill the House seat from New York's 20th district is currently... tied.  77,225 to 77,225.  How cool is that?

Economy

- The CBO revised upward their estimate of how much the government's rescue of financial institutions would cost US taxpayers.  The new estimate is $356 billion-- almost double what it was previously.

- Treasury Secretary Tim Geithner suggested that he would force the ouster of top executives at banks that require "exceptional aid" from the government.  Expect Wall Street to find that a little worrying.

- American consumers are now learning to save, not spend,  and the WSJ reports that this habit could outlast the recession.  Perhaps not such a bad thing...

International

- An earthquake in central Italy has killed at least 92 people, and some mountain towns have been destroyed. 

- Anti-American vitriol doesn't carry quite the same weight in Venezuela that it used to, apparently.  Hugo Chavez has said it's time to "hit the reset button" on US-Venezuelan relations, and bring things back to a "rational" level.

- President Obama has a long way to go in Pakistan, if he is to convince the people and the leadership that fighting Al Qaeda and the Taliban is, in fact, a mutual interest.  

New From NDN

- Simon wrote Friday about President Obama's speech from Strasbourg, and how it marks what may be the beginning of Obama's new role as a world leader.  

- Andres wrote on Friday about the weapons trade that goes along with drug trade in fueling the unrest south of our border.  Responsibility cuts two ways here, he says. 

One More Thing

- Last, David Axelrod responds to Dick Cheney's assertion that Barack Obama's policies have made America less safe: 

Leader: G-20 Thumbs Up

- The leaders of the G-20 nations exceeded many expectations yesterday as they arrived at an agreement to commit over $1 trillion to stem the global economic slide, with a much of that to be distributed through the IMF. The attendant nations also agreed to avoid protectionism that would push this recession to greater heights. Among many others, Jeff Sachs was impressed with the summit, and with its results.

- Still, there was no clear resolution on how to deal with the toxic assets at the root of the crisis, nor is there a global commitment to fiscal stimulus, as the US government was advocating, nor a global financial regulatory system, as France and Germany wanted.  

- In his debut as a statesman, President Barack Obama dazzled critics, projecting an image of an America very different from the domineering hegemon represented by George W. Bush.  Obama personally mediated a disagreement between France and China, working with them to find mutually agreeable language for a resolution.  

Politics

- The House and the Senate each passed a version of a $3.5 trillion budget. The House bill tracks closer to Obama's blueprint; the Senate bill, which calls for $221 billion in cuts from Obama's appropriations requests in the next five years, is a rather status quo document, reports Politico. 

- Crooked Rod was hit with charges on 16 counts of felonious corruption. He was in Disneyland when the indictment was unsealed.  Rumors persist that he has been in Disneyland since about 2002.

Economy

- You should read Simon Johnson's excellent piece in the Atlantic, The Quiet Coup. He unpacks the ways our financial oligarchy led us to this collapse. 

- Guess whose economy hasn't suffered much in the economic downturn? New Orleans, of all places, as they're still coasting on government dollars paying for rebuilding. Glad the Big Easy finally seems to have caught a break.

- The Washington Post has a slightly damning profile of Tim Geithner, looking back at his time as chairman of the New York Fed.  It's ever more clear that our Treasury Secretary had the chance to put the brakes on this financial crisis early, and failed.

- The unemployment rate rose again in March, to 8.5%, as another 663,000 jobs disappeared.

International

- President Obama will be at the NATO summit in Strasbourg tomorrow, and spoke in the city today to a huge crowd, calling for renewed partnership between the US and Europe.   

- Avigdor Lieberman, the far-right-wing foreign minister of Israel, has faced hours of questioning over the past few days for suspicions of bribery and money laundering. 

New From NDN

- Michael Moynihan published a new essay yesterday, Carbonomics, in which he explores the relationship between gas prices and fuel economy.

- On the blog yesterday, Jake rounded up Wednesday's event, Preview to the G-20.  

One More Thing

- It appears Michelle Obama is more popular than her husband. It's time for Barack to turn up the fabulousness.  

- Yeah, okay, it's an hour long, but seriously, you should watch President Obama speaking in Strasbourg today. The notes he hits ring pure and true:

Leader: Of Summits and BRICs

- Speaking at the G-20 summit, President Obama indicated a new role for the US in the world economy, saying that "voracious" demand in the US can no longer be the primary engine of world growth. That said, Obama clarified that the US is still ready to be a leader in the world-- one that leads with strong allies, rather than leading by dominance.

- The head of the IMF offered a stern warning to G-20 leaders yesterday, insisting that they more aggressively purge toxic assets from the global financial system. Said Dominique Strauss-Khan: "You never recover before the cleaning up of the banking sector has been done. The US... is rightly insisting on stimulus and the EU rightly insisting on regulation. They are not yet moving quickly enough in doing the cleaning up of the financial system."

- The American press seems to have missed it, but President Obama met with President Hu Jintao
of China yesterday.  The meeting, which some described as the "G-2," was
their first. The leaders agreed to greater cooperation and dialogue.
For this crucial relationship, let's hope they mean it.

- President Obama also met with Russian President Dmitry Medvedev, and the two agreed to a new round of negotiations toward a strategic arms limitation agreement.   They seem to be on track to pursue a more pragmatic path than their predecessors.

Politics

- NDN fellows Morley Winograd and Mike Hais have an article in today's Politico, writing about the way my Millennial Generation is changing politics in this new era. 

- It looks like we'll be waiting a week at least before we know the outcome of the special election for the 20th congressional district in New York.  Democrat Scott Murphy is up 50 votes, with 6,000 absentee ballots left to count.

- The case against former Senator Ted Stevens has been thrown out by the Justice Department. Oops.

International

- The NY Times reports that China has committed to becoming the world's leader in the manufacturing of electric cars.  By leapfrogging American, European, and Japanese car companies, all of whom still focus on gas-powered vehicles, the Chinese industry will be well-positioned to be a leader in electric cars.

- Robert Kagan, writing in the WaPo, says the gulf between the US and Europe isn't likely to be bridged by Obama, given Europe's total disinterest in acting as a world power. 

New From NDN

- Rob penned a new essay yesterday about cap and trade.  Climate legislation is in better shape today than it ever has been before, but it still may be "dead policy walking." A carbon tax system is the last remaining possibility.

- Michael Moynihan put out an essay on the Waxman-Markey energy legislation. He agrees that the time is ripe for new legislation toward stopping climate change.

One More Thing

- There were lots of April Fools Day hoaxes yesterday, but none that created the panic that Car and Driver did when they reported that the government had commanded Dodge and Chrysler to pull out of the NASCAR series after this year. Harg harg harg.

- Stephen Colbert puts Glenn Beck in a bag, and then hits the bag with a stick:

Leader: Obama Legitimately Freaked Out

- President Barack Obama was killing time watching YouTube yesterday, when he came across video of himself speaking about the economy, and realized "just how bad things are" for the first time.  "I don't normally listen to the speeches," said Obama, biting at his cuticles, "I just read them." He added that he was "legitimately freaked out,"and apologized to the American people for having to listen to "that terrifying crap" on "every damn channel, all the damn time." 

- Press Secretary Robert Gibbs brushed it off as a bit of stage fright in advance of Obama's appearance at the G-20 summit yesterday, but given the President's usual cool, nobody's buying Gibbs's hash. Flying off the reservation, Obama sought out members of the press to tell them he really, sincerely hoped things would get better, but "If you're looking for a good investment, now would be a good time to go long on duct tape and shotguns."

Politics

- In opposition to President Obama and his fellow New Democrats in Congress, a group of GOP House members are banding together in a new group they'll call the "Old Republicans." Said one leader, who remains anonymous, "We're getting back to the basics here-- this caucus is going to be about old-school, racist, unreconstructed xenophobic dogma. It's time for this party to reinvent itself, and we're taking the bull by the horns."

- A new poll gives President Obama a 66% job-approval rating.  Nearly nine in ten Americans, however, approve of the way donuts are doing in their job.  Should Obama worry about a 2012 primary challenge from donuts? Time will tell. 

Economy

- In a bout of life-affirming, if mortifying honesty, Treasury Secretary Tim Geithner conceded yesterday that he "doesn't have a bloody clue" what's wrong with the economy, or how to fix it. Later, President Obama assured the public that Geithner still has his absolute confidence.

- The big Detroit auto manufacturers, scrambling to restructure their business after Obama's recent ultimatum, have launched a new marketing campaign advertising alternative uses for their vehicles. The Hummer is being sold to banks as a means to obstruct the front doors of foreclosed homes, while the Pontiac Vibe may see new life as an in-garage aquarium.

International

- This morning's World Cup qualifying match between North Korea and South Korea was interrupted when the DPRK government test launched a new missile, as they have been threatening to do recently. Despite previous assurances they had no intent to do so, a U.S. carrier strike group shot down the Taepodong-2 over Seoul. The missile exploded into the shape of Kim Jong-Il's benevolently smiling face, and thousands of tiny baskets parachuted down filled with a variety of prizes and goodies, including DVDs of some of Dear Leader's favorite films. North-South reconciliation appears imminent.

New From NDN

- If you've already RSVP'd to our event today, you might be holding the hottest ticket in town. On his way to London, President Luiz Inácio Lula da Silva of Brazil happens to be laid over in Washington for a few hours, and will be joining Dr. Moisés Naím, Rep. Adam Smith, and Dr. Rob Shapiro for a discussion of the G-20 conference that begins tomorrow. RSVP now, before it's too late!

One More Thing

- Joking about her husband's ubiquity in the press, Michelle Obama said yesterday "Barack will do anything to get in front of a camera." She then winked suggestively, making the press corps slightly uncomfortable, and kind of confused, but mostly impressed.

- Last, here's a fun video about politics:

Leader: Good Car Bad Car

- We got the details from President Obama yesterday about his plan for GM and Chrysler. After forcing out GM chief Rick Wagoner, Obama warned that bankruptcy may be inevitable for the auto manufacturers.  If it comes to that, Obama foresees splitting them into "good" car  companies and "bad" car companies-- and purging the bad. He won't let the American auto industry disappear, but he may go to considerable lengths to restructure the companies.

- As just about everyone has noticed, this prospect would constitute nearly unprecedented government involvement in industry. On the WSJ op-ed page, Paul Ingrassia thinks Wagoner had to go.  William Holstein on the NYT op-ed page thinks Obama failed to see the good Wagoner had done for GM, and was wrong to dispatch him

Politics

- The WaPo released a new poll today-- two thirds of Americans still approve of the way Barack Obama is handling his job, and 42% believe the country is moving in the right direction-- three times the number who thought so in December.  

- President Obama was back on the Hill yesterday, marketing his budget plan all over the place. He acknowledged that he might have been a little over-optimistic in the amount of funding he would have for domestic projects.

- Two months ago, Judd Gregg was crowing about the end of partisanship as he prepared to become Obama's Commerce Secretary.  Now he's Dr. No in the Party of No.

- That said, Jonathan Chait writes in TNR about how Congressional Democrats have become a serious thorn in Obama's side, and they threaten to derail his entire agenda.

International

- President Obama is on his way to London right now, and the G-20 summit will begin on Thursday (Come to our G-20 event tomorrow!). This summit may demonstrate just how discredited the U.S. is as a world leader.  Even if everyone likes Obama, just about everyone on Earth blames America for the current economic slide, which will make it awfully hard for Obama to take a leadership role.  Still, Chinese and Russian murmurs about switching to a global currency aren't likely to gain much traction.

- Nicholas Schmidle wrote an Idiot's Guide to Pakistan for Foreign Policy. Not sure what this says about me, but I found it pretty useful.

New From NDN

- Morley Winograd and Mike Hais published a new essay yesterday, looking back ten years, at the chance Detroit had to save itself. They also take a look at parallels between GM and the GOP.

- Zuraya penned her Weekly Immigration Update yesterday.  Check it out, or risk being uninformed about the immigration debate. 

One More Thing

- Last, here's President Obama getting on his plane this morning.  If you think this video is boring, you should send me better ones!

Leader: Cars not Wagons

- The Obama Administration uncovered its plan to keep GM and Chrysler afloat, but the billions in bailout cash will not come without hefty concessions from the two auto manufacturers. From GM, the government has demanded that CEO Rick Wagoner step down, and given the company 60 days to restructure. Chrysler has 30 days to reach an agreement to partner with Fiat; if they're successful, Chrysler will be up for another $6 billion loan.

- If the companies fail to restructure to the Administration's satisfaction, bankruptcy is an entirely possible outcome. The NY Times calls this a level of government involvement in business not seen since the Great Depression. 

Politics

- Homeland Security Secretary Janet Napolitano has delayed proposed immigration raids, asking that the raids be given closer scrutiny before being carried out.  This could signal a shift in policy, away from workplace raids as immigration enforcement. 

- President Obama will be back on the Hill today, continuing to push for the policies in his budget blueprint, before he is whisked off to Europe tomorrow. 

- Politico takes a look at Austan Goolsbee, "world-class jaw- boner," and resident populist in the White House. 

Economy

- The next stage in the foreclosure crisis is a strange one.  After underwater homeowners walk away from their property, the banks also walk away from the property, because the cost of the ordeal outweighs the value of the house. The former homeowners, then, are still responsible for keeping up the property, even if it will eventually be taken back from them. 

- Paul Krugman writes that one of the biggest costs of the financial crisis is the blow it has dealt to America's reputation as economic leader of the world.

- Tim Geithner showed us his hand, finally: Treasury still has $134 billion in TARP money. 

International

- With so many areas of intractable disagreement between the U.S. and Europe, at this week's G-20 summit, the Obama Administration will focus on fortifying the I.M.F., one topic where everyone agrees, at least in principle.  

- The WaPo reports that momentum is growing to change U.S. policy toward Cuba, particularly in the Democratic Party. We at NDN applaud these efforts, which mirror the policies we have advocated for years. 

New From NDN

- Simon published a few short essays to our blog over the weekend, responding to his trip to Chile for the Progressive Governance Conference.  Yesterday, he analyzed, America's changed role in the world, and looked at ways President Obama can restore our nation's role as a leader.   

One More Thing

- Sarah Palin had to pick a Democrat to fill a state Senate seat, so she picked someone who became a Democrat three weeks ago.  Oh, good job.

- Eric Cantor has been taken down by none other than Britney Spears.  Eric, you're not the first man to be laid low by Britney.

- Last, the world-class jaw-boner himself, channeling populist rage:

As Simon prepared for his speech at the Progressive Governance Conference today, we were talking about global population shifts-- in age, region, and size of the population. Here's a look at global population projected out over the next 40 years:

Our increasinly populous planet presents myriad new governing challenges. How can we live in a way that doesn't crowd out the 7, 8, 9 billion other inhabitants? Here's a slightly more reassuring chart of the annual growth rates for world population, showing that we are, in fact, slowing down:

The sudden drop in the late 50s represents the millions of deaths and slowed birth rate in China due to Mao's Great Leap Forward-- chilling and astounding. Here's a third graph showing the actual number of additional people on earth each year.  I'm proud to have been a part of that peak in the 1980s:

And how many of the world's fifteen most populous states can you name? I bet you don't think of #13.

Leader: A New Planistan for Afghanistan

- After a two-month review process, President Barack Obama will announce a new strategy for the Afghanistan War today, changing course in what he will call "a directionless and under-resourced conflict inherited from the Bush administration".  The plan will further bolster troop levels in Afghanistan, and set measurable goals and benchmarks-- a strategy similar to the one used in Iraq beginning two years ago. Four thousand troops will be on their way soon to train Afghan security forces, on top of the 17,000 extra combat troops already ordered there. Additionally, the Administration will raise foreign aid to Afghanistan and Pakistan by billions of dollars per year.

- This announcment comes as Taliban leaders in Afghanistan and northern Pakistan have agreed to set aside their differences and join forces against the U.S. troops.  Taliban insurgents predict that 2009 "will be a bloody year."

- Politico reports that Richard Holbrooke, Obama's envoy to Afghanistan and Pakistan, has his fingerprints all over the new strategy-- but has exercised restraint that few thought possible. 

Politics

- President Obama will announce a new plan to bail out auto manufacturers GM and Chrysler in the coming days.  He says the companies will have to make "pretty drastic changes" if they want to survive.

- Rep. Steny Hoyer has become the point man and nexus point between three House chairman in rewriting the health reform bill. 

- Tim Geithner is on the offensive in what will be a long battle to press his plan to reform the financial industry. 

- The New Hampshire House (one of the largest legislative bodies in the western world) voted to legalize gay marriage  yesterday.  The bill will face an uphill battle in the state senate, and if it passes there, Gov. John Lynch will likely veto.

Economy

- The Dow is up 21% since its recent bottom, the biggest gain since... 1938.  How long could this possibly last?

- Tim Geithner will not tell you how much TARP money is left.   So much for transparency and accountability.

- Should Freddie Mac report to the government that the government is causing it to lose money?  What if the government doesn't think it should?  This is confusing.

International

- U.S. military sources have confirmed that a convoy of arms in Sudan headed for Gaza were destroyed by Israeli warplanes. Israeli officials have not confirmed this account. The strike suggests that Israel is willing to strike well beyond its borders to protect its sovereignty. 

- The Washington Times reports that Hezbollah is smuggling contraband and people into the U.S. using the same networks  that Mexican drug gangs use. This is, clearly, a serious threat to U.S. national security.  Keep an eye on this story.

New From NDN

- NDN hosted a terrific event yesterday, a Preview to the Summit of the Americas, featuring Sen. Bob Menendez, which is why this blog was quieter than usual. If you couldn't make it to the Capitol, I hope you got to tune in via livecast. Andres does a quick roundup of the event here-- check back soon for video!

- Simon sends his hello and first impressions from Chile, where he will be speaking today at the Progressive Governance Conference- the lineup is quite impressive!

One More Thing

- Last, President Obama breaks the hearts of potheads, dope fiends, and herbalists around the country:

Leader: Of The Free World

- President Barack Obama gave his second prime-time press conference last night, and used the occasion to defend and promote his $3.6 trillion budget blueprint.  His domestic economic proposals-- health care, education, energy, and a reduction in the deficit -- were at the top of his agenda, as he made the case that these long-term investments were crucial to American economic growth. He said he was willing to compromise in the short term on his middle-class tax cut and the cap on carbon emissions. 

- The NY Times writes that this was Professor Obama, the placid, didactic lecturer we met early in the campaign (and at the last presser). The reprise of this persona was likely meant to reassure the American people that we have a steady hand at the helm-- a belief that may have been shaken in the wake of Obama's dreadful first-round picks for the NCAA basketball tournament. 

- This speech came as the Senate is already well on its way to slicing and dicing Obama's budget.  Budget Committee Chair Sen. Kent Conrad is leading the charge, and he has the planned expansion in health care coverage in his sights. 

Politics

- The Obama Administration is taking flak from civil liberties advocates, who charge that this Administration is employing some of the same arguments in defense of secrecy that the Bush Administration used.

- The Employee Free Choice Act was dealt a pretty serious blow yesterday when Sen. Arlen Specter sided with his own party, leaving Democrats with, at most, 59 votes. Is anybody else getting sick of it taking 60 votes for anything to pass the Senate?

- Our friend Andrei Cherny announced yesterday that he's running for Arizona State Treasurer.  Good luck, Andrei!

- Rep. Eric Cantor has run into a brick wall. Or a rough patch.  Call it what you will.

Economy

- Treasury Secretary Tim Geithner and Fed Chairman Ben Bernanke answered questions before the House Banking Committee yesterday, and proposed, among other things, that the government have the ability to take over any kind of financial institution that was in danger of upsetting the whole economy. The government can already do this with banks, but the new provision would let them take over insurance companies like, say, A.I.G., as well.

- From the department of outrage and disappointment: An executive VP at A.I.G. quit yesterday, and he published his letter of resignation in the NY Times.  Satisfying read.

International

- Secretary of State Hillary Clinton arrives in Mexico today amid a growing feud. With an economic crisis, a drug war, and trade spats all spreading over the border, Secretary Clinton will have a lot to deal with. Meanwhile DHS Secretary Janet Napolitano outlined a new plan to fight the drug war before it infects the U.S. in earnest.  

- The Israeli Labour Party of Ehud Barak will help the right-leaning Likud Party of Benjamin Netanyahu form a government, leaving the center-left Kadima party in the opposition. 

New From NDN

- Morley Winograd and Mike Hais have a new essay on partisanship and bipartisanship.  Americans, they write, are looking to Democrats to lead.

- Michael Moynihan wrote yesterday on the bank bailout plan.  

One More Thing

- A week after Barack Obama catapulted him to fame by mentioning his name on Leno, Simon Cowell and the rest of the American Idol crew have their own moment in the sun, talking about the President:

Leader: Bully for You, Tim Geithner

- As I mentioned yesterday, the Obama Administration rolled out their plan to fix the financial system about 24 hours ago, and reactions to the plan have dominated the airwaves (and blogwaves, and traditional print mediawaves) since then. Mr. Dow Jones himself was perhaps the most vocal supporter of the plan, as the index rose 6.8%-- nearly 500 points-- yesterday. Shares of Citigroup rose 20%, and Bank of America rose 25%. Solid.

- The plan, of course, might not work at all. There's a real chance that the banks could decide not to sell their troubled assets, if they think the prices are too low. Contrariwise, the private investors might take the government cash and pay too much for the assets, sticking the taxpayers with a hefty loss. Pricing the assets is the tricky part here, and while leaving it to the market is probably a better choice than letting the government try to choose a price, it's no perfect option.

- The Times' Opinionator rounds up all the bloggery about the bank rescue plan. Paul Krugman has remained the bogeyman, while Brad DeLong has been the most prominent voice in support of the plan. Larry Summers got in on the action, too, yesterday, criticizing Krugman.

Politics

- Brian Moran, a candidate for Virginia governor, is the first candidate of the '09 election cycle to have his own social network. Do you have a social network?

- After revealing yesterday that she had successfully battled breast cancer over the past year, Rep. Debbie Wasserman-Schultz introduced legislation in support of a CDC campaign to promote awareness and early detection of breast cancer by young women.

Economy

- According to New York AG Andrew Cuomo, $50 billion of the $165 billion in bonuses paid out by A.I.G. will be returned. Nine of the 10 biggest recipients will hand back their cash.

- The President has named a few more officials to join Tim Geithner in the vast, lonely halls of the U.S. Treasury. About time, too-- the guy could use the help.

International

- The Tata Nano might not be what you think it is. It's a compact car, to be sold for little more than $2,000, and is designed for the middle class Indian consumer. Best of all, it gets 55 miles to the gallon.

- The Sudanese government has been bombing rebels, and hitting an awful lot of civilians in the process. The Obama administration has stepped up its criticism of the Sudanese government.

New From NDN

- Zuraya rounds up the past week in immigration news. Reform, she says, in on track.

- We've just announced an event to take place April 1st. A preview of the G-20 summit, our own Dr. Rob Shapiro will be joined by Dr. Moisés Naím, E-i-C of Foreign Policy magazine.

One More Thing

- The GOP really wishes Dick Cheney would go back to his undisclosed location. Incidentally, so do I.

- Last, it's probably a good thing this guy isn't our commerce secretary: