If your television has a dial, turn that dial to Fox News, where Dr. Rob Shapiro, Chair of NDN's Globalization Initiative will be talking about President Obama's brand new budget at 12:10 pm today.
He'll be squaring off with Rep. John Kasich, who ran the House Budget Commitee when he was in congress. It promises to be an epic duel.
UPDATE: Rob showed Rep. Kasich who was boss. We'll have a video up soon!
- As a part of the budget he will announce today, President Obama is proposing the creation of a "health care piggy bank" that will be a down payment in a push toward universal coverage. The fund will grow to $634 billion over ten years, and will be funded largely by tax increases on the wealthiest two percent of Americans and spending cuts. The NY Times calls this plan a "pronounced move to redistribute wealth."
- The President has "eight principles" that will guide his health reform effort. Ezra Klein, healthcare blogowonk-in-chief, responds to those principles here: they're not shocking, he says, but what really matters comes now, as Congress turns those principles into a plan.
- Every major stakeholder in the current healthcare system will find a lot to dislike in the plan, especially Medicare insurers, according to the WSJ. Under Obama's plan, they'll have to competitively bid to offer plans, which the Administration hopes will lower per-patient expenses.
Politics: Jindal Bites It
- Governor Bobby Jindal's grand launch onto the national stage ended with him landing face-first in the mud. He has been broadly and harshly panned on the right and left for a speech that was substance-free, and a delivery that was mawkish and saccharine. (For which he has been compared to Kenneth on 30 Rock. Zing.)
- Despite his performance, Marc Ambinder says the lame speech doesn't hurt Jindal's chances for a presidential bid. GOP cheerleader Bill Kristol, responding mainly to Obama's speech on Tuesday, concedes that the Republicans are in serious trouble. Jindal is just one manifestation of that, as I wrote in a post yesterday.
Economy: GM Slide
- Hot news this morning, GM is in worse shape than even many gloomsayers predicted, as the auto manufacturer posted a $9.6 billion loss in the fourth quarter. After asking the government for $30 billion to restructure last week, it's hard to know what's next for GM.
International: Iraq Withdrawal & Mexican Drug War
- The Obama Administration's plan to draw down troop levels in Iraq will not begin in earnest until after the Iraqi elections in December, and will then go on apace until August 2010. At that point, as many as 50,000 troops would remain in Iraq in an advisory and training capacity.
One More Thing
- Perhaps going on the advice of Sen. Ted Kennedy, the Obamas have decided to get Portuguese Water Dog. Despite Michelle's opposition, I stand with the Obama girls that Frank is a great name for their dog.
- There's an elk in Eagle, Colorado with a bar stool stuck on its head. Don't worry, elk, we've all been there.
- Last, they finally caught that dang raccoon that had taken up residence on the White House grounds. Apparently, it was lured out with salmon. Sadly, several members of the press corps, also attracted by the fishy smell, were caught in the trap with the raccoons:
Via Ben Smith, this clip of conservative pundit David Brooks laying into Bobby Jindal's speech last night is pretty astounding-- he calls the speech "stale," "insane," and "a disaster for the Republican Party:"
But he's right, of course. The people of Louisiana (who have perhaps benefitted more than the people of any other state from government spending in recent years) should be very concerned that their governor is liable to turn down funds from the stimulus package, or turn off the flow of other money coming from Washington.
These hackneyed old ideas about government spending being the problem are not only wrong-- in an economic climate like this, they're dangerous. Here's Rep. Mike Pence of Indiana making the same argument Jindal made, asking congress to "freeze federal spending."
If this were only one crazy congressman, I wouldn't be concerned, but these are the standard talking points of the right-- Jindal was saying essentially the same things last night. It's alarming that the Republican Party is so obviously out of ideas that they've fallen back on suggesting we shut down the government to combat a recession.
UPDATE: Paul Krugman explains pretty well why this argument is so crazy. It's because there are, you know, things the government needs to do. And then, at the end:
And leaving aside the chutzpah of casting the failure of his own party’s governance as proof that government can’t work, does he really think that the response to natural disasters like Katrina is best undertaken by uncoordinated private action? Hey, why bother having an army? Let’s just rely on self-defense by armed citizens.
The intellectual incoherence is stunning. Basically, the political philosophy of the GOP right now seems to consist of snickering at stuff that they think sounds funny. The party of ideas has become the party of Beavis and Butthead.
- President Obama addressed Congress last night, but his serious yet confident speech sounded like it was directed more at the American people themselves. He did not equivocate about the dire situation in which our economy is now snarled, but he vowed that, with his plan, "We will rebuild, we will recover, and the United States of America will emerge stronger than before."
- Obama's program featured not just his three-legged economic recovery plan, but emphasis on moving toward energy independence, improving our education system, and especially reforming health care-- which he set as a priority for 2009. The tone of the speech has received broad praise, for remaining serious, but offering more optimism than other, recent speeches. In the Washington Times, Simon called the speech "A critical moment in Mr. Obama's evolution from candidate to president."
- Louisiana Governor Bobby Jindal's response to Obama's speech was broadly panned. He took aim at the recovery and reinvestment plan particularly, seeming to reject the idea of federal spending altogether-- strange considering the speech was coming from the Governor's mansion of the state that may have benefitted most from federal spending in recent years.
Economy
- Martin Wolf of the FT compares the upcoming G20 summit to the 1933 London Summit that ended in failure. He writes the speech that President Obama needs to give, to bring the other major markets of the world into a pact to save the world economy.
- A group of insanely wealthy Americans, evidently displeased that UBS is planning to follow orders from the U.S. justice department and disclose the names of people who used their services to avoid paying taxes, are filing a suit against UBS to keep the bank's big mouth shut.
- Arianna Huffington identifies credit cards as the "next domino" in the credit crisis. As people depend more and more on their cards to make ends meet, and as more and more people lose their jobs, and as more and more of the debt is held by risky borrowers.... Yikes.
International
- The Pakistani Supreme Court has barred Nawaz Sharif, the leader of the major opposition party, from elected office, on account of past criminal activity. Yet more political instability in Pakistan may be on the way. Meanwhile, in the Swat Valley, the Pakistani Taliban extended the cease fire, strengthening the status quo in a way that could lead to the valley becoming a permanent safe haven for terror.
- George Clooney, twice named People magazine's sexiest man alive, announced yesterday that President Obama planned to choose a special envoy to the Darfur conflict in western Sudan. Darfur activists have applauded the move.
One More Thing
- Sen. David Vitter is up for reelection in 2010, and it promises to be a battle, as he will try to overcome revelations that he was involved in the D.C. Madam prostitution ring. The irony speaks for itself, then, that a porn star-- the 2007 Golden G-String winner, no less-- will be competing for his seat.
- Somebody left Keith Olbermann's mic on last night, and caught this brilliant mutter as Gov. Jindal walked out to give his counter-address:
- A trio of new polls find that President Obama is still broadly popular, but has a lot of work to do reassuring Americans about their economy. A majority of Americans support spending to create jobs, and keep people in their homes, while a minority support bailing out banks and auto manufacturers. Simon is the lead quote in the USA Today article:
"Look, the American people are pleased with the direction Barack Obama is taking, but there are still parts of the economic recovery plan that people are not sure about. He has to make it very clear that his focus is on the struggle of everyday people, and not on those with means."
- The NY Times/CBS poll gives Obama a 63% approval rating, the USA Today poll puts the number at 62%, and the Washington Post/ABC poll has 68%. Republicans get much lower approval ratings across the board.
Politics
- As a substitute for the State of the Union address, President Obama will speak before Congress tonight, and will, of course, focus on the economy. He will be looking to reassure Americans about the swiftly growing deficit, while laying out future objectives that may include fixing our health care system, moving toward energy independence, and rebuilding our education system. Time has the five things you should look for in the speech tonight.
- Speaking of healthcare, the WaPo reports that health care reform-- both lowering costs and expanding coverage-- will be Obama's top fiscal priority for the remainder of this year.
- Eve Fairbanks of TNR is mystified: Why are Republicans recycling all of John McCain's failed campaign tactics?
- Former Washington governor Gary Locke is now the likely choice to head the commerce department. The Seattle Times says he has a "squeaky clean" image, which sounds like what we need.
Economy
- AIG is looking for a third government bailout, as it braces for a report of a $60 billion loss in the fourth quarter-- what would be the biggest loss in corporate history. This comes on top of news that the government is in talks with Citigroup that could lead to a 40% government ownership stake in the bank.
- The WaPo reports that the Obama Administration is clearing the path toward bank nationalization.
International
- Embattled Japanese Prime Minister Taro Aso will be the first foreign head of state to visit with President Obama, signaling a renewed emphasis on the importance of this bilateral relationship. Will it help Aso's political fortunes in Japan? Maybe, maybe not, but that doesn't seem to be Obama's objective either way.
- The North Korean government says it is planning to launch a satellite into space, a likely reference to an impending missile test. The missile may be an advanced version of the Taepodong-2, a missile with the capability of hitting Alaska, and possibly the west coast of the US.
One More Thing
- Is it the economy? Is it the rise of DVR technology? Is it the availability of television on your cell phone? What ever it is, Americans are watching more TV than ever, an average of 151 hours per month, per person-- that's five hours every day. Holy crap.
- Twitter feels like it's hitting a tipping point. Politico ran a story about DC's top ten twitterers, and everyone's in a tizzy:
- The government is in talks with mega-bank Citigroup-- talks that could result in American taxpayers taking as much as a 40% stake in the bank. Bank execs are hoping the figure will be closer to 25%, though talks could fall apart altogether. One objection to the this potentiality is that the move would dilute the value of the stock currently in the hands of shareholders.
- The NY Times reports that over the next few weeks, the Obama Administration will be doing stress tests on twenty of the nation's biggest banks, to gauge how concerned they should be about the potential collapse of our financial system.
Politics
- President Obama wants to work on solving issues with the long-term solvency of the Social Security program, but is catching flak from the left, where congressional leaders would rather spend political capital on other issues.
- Republican Governors are divided over how to best respond to economic pressures. Some want to work with the Obama Administration, others don't even want his dirty, dirty money. Among Obama's allies? Arnold "The Governator" Schwartzenegger, who takes a decidedly pragmatic approach to governing.
- John Heilemann has a great piece in New York magazine, looking at the new public faces of the Republican Party in Bobby Jindal and Michael Steele. They certainly don't look like most of the Republican Party. Do they really harbor change?
- Pork is back on Capitol Hill, where less than half the number of lawmakers who pledged to forgo earmarks for pet projects last year have signed up to do the same this year.
Economy
- Mary Schapiro, the new head of the SEC is making bold moves to reverse the errors of her predecessors, and strengthen regulations and enforcement that failed to catch major acts of fraud.
International
- Mexico's drug war is hitting a tipping point in American media. The WSJ has a great article reporting on the unbridled power of the Mexican cartels. Time writes on the rise of vigilante justice as an answer to the state's failure to provide security. Three former Latin American heads of state authored an op-ed, also in the WSJ, calling the U.S.' war on drugs a failure, and calling for more effective policy.
- A brand new report from the Senate Foreign Relations committee, authored primarily by Sen. Richard Lugar and his staff, calls for normalization of relations with Cuba. The title says it all: "Changing Cuba Policy-- In the United States National Interest."
- The NY Times reports that U.S. special forces in northern Pakistan have been training the Pakistani military to fight the Taliban and Al Qaeda. Given that Pakistan ceded the Swat Valley to Taliban militants just last week, their military probably needs all the help it can get.
One More Thing
- Socks, the former first kitty, has left us. RIP, socks.
- Jonathan Jarvis put together this visualization of the credit crisis. This is maybe the best, most straightforward explanation of why our economy has fallen apart that I've seen. Ten minutes, but worth a watch:
-Every day, California comes closer to dropping off the continent into the Pacific Ocean. The state legislature very nearly expedited that process, but recovered at the last moment, and our most populous state will remain with us-- for now, anyway. State lawmakers ended a three-month deadlock on the budget, eliminating a $42 billion shortfall with tax increases, big spending cuts, and lots of borrowing. Whether the legislature can keep the compromise together will be a whole new challenge.
- In other California news, the legislature is moving toward initiating an open primary system for the state, beginning in 2010. This system would allow all voters to choose a candidate from any party, and the top two vote-getters would move on to the general election-- regardless of party. To pass the constitutional amendment, the measure needs a majority of California voters to be in favor. This is no sure thing.
Politics
- The Hill makes the stunning observation that nationalizing American banks poses certain political difficulties for President Obama. Apparently, it would make him seem like a bit of a lefty.
- Senator Pat Leahy makes the case for a Truth Commission in the pages of Time. Some say we should just move past the Bush years, Leahy thinks we need to get to the bottom of what happened, so that it never happens again.
- Gas prices have been down for a while, which means people are buying more gas, which means gas prices are going up again. Such is the paradox of free markets.
Economy
- The sky is falling! And the sky fell to its lowest point in six years yesterday.
- Searching for parallels to the current recession, Paul Krugman looks back at the Panic of 1873. He's just as pessimistic as the Fed officials he quotes.
International
- Benjamin Netanyahu has gained the mandate to form Israel's government, and become the next Prime Minister. The leader of the hawkish Likud party will likely have to bring centrist and even left-wing partners into his coalition.
- Secretary of State Hillary Clinton appears to be on a full-on listening tour in Asia. After her awesome stop at TRL Jakarta, she's been hitting a veritable salad bar of different speaking gigs, making it clear that America wants to listen.
One More Thing
- Last, I have no comment except that this is slightly ridiculous and completely amazing:
- Speaking in foreclosure hotbed Phoenix, Arizona yesterday, President Obama unveiled his grand plan to stem foreclosures and help struggling homeowners refinance their mortgages. The plan could cost as much as $275 billion, with $75 billion to subsidize loan modifications that would directly help keep people in their homes, and another $200 billion in financial backing to Fannie Mae and Freddie Mac to increase the amount of available credit, and allow homeowners to refinance.
- The plan goes further than many analysts expected, and has drawn praise both from consumer advocate groups and the financial industry. Simon Johnson at The Baseline Scenario calls the plan "impressively comprehensive," but wonders if it goes far enough. He suspects Obama was limited by his reluctance to ask Congress for more money.
Politics
- The Environmental Protection Agency has begun work to regulate carbon dioxide emissions for the first time. The EPA is acting on a Supreme Court order to determine whether CO2 is a "pollutant that endangers public health and welfare"-- an order that was ignored throughout the Bush years.
- Kansas Governor Kathleen Sebelius is emerging as the leading contender to head the department of Health and Human Services.
- Attorney General Eric Holder laid the smack-down yesterday in a speech marking Black History Month for Justice Department employees. He called the U.S. a "nation of cowards," when it came to addressing race relations, and said the country needs to seriously address its racial issues and "have frank conversations about the racial matters that continue to divide us."
- Returning to a storyline that I used to enjoy but now am terribly bored of: Does Norm Coleman have a chance of retaining his Senate seat? Survey says: not really.
Economy
- In the dramatic conclusion of an investigation that has been ongoing for nearly a year, Swiss mega-bank UBS has agreed to disclose the names of some of its American investors, violating the secrecy that has been the cornerstone of Swiss banking for centuries. UBS admitted to helping some 19,000 Americans defraud the United States by avoiding taxes-- as much as $300 million every year. UBS will probably only disclose the names of a few hundred clients.
- Fed Chairman Ben Bernanke called for "extraordinary measures" beyond the ARRA package to help our economy recover, in a speech at the National Press Club yesterday. Five minutes later, the Fed released a new set of economic estimates for the fall-- far bleaker than the previous report.
International
- Scott Kraft of the LA Times reports from New Mexico on the drug war raging just south of our border. Locals are afraid of the war spilling over the border-- last time that happened, Pancho Villa led a raid that left 18 Americans dead and ignited an international incident. CNN compares the rising tide of violence to a "civil war."
- Obama will make his first foreign trip as president today, visiting America's biggest trading partner and primary oil provider-- that's right: Canada. Obama will be looking to soothe fears about protectionist impulses.
One More Thing
- Last, somehow, Secretary of State Hillary Clinton ended up booked on what appears to be TRL Jakarta. It's.... awesome:
- President Obama will speak on Phoenix today to unveil his plan to address the home mortgage crisis. The plan will focus primarily on those who took out loans they could not afford, and are facing certain foreclosure in the near term. Additionally, the government will allow people with mortgages through Fannie Mae or Freddie Mac to refinance, and will work to keep mortgage rates low for all borrowers. The plan will cost about $75 billion, and should keep 9 million Americans from losing their homes.
- The WaPo leads with a gloomy piece today about the global slide in markets. From East Asia to Western Europe, economies are suffering badly. Martin Wolf looks at the lessons of the Japanese "lost decade" and concludes that we can't yet rule out a "lost decade" for the entire world economy.
Politics
- The chattering classes have spent a few weeks declaring failure and defeat for Obama's efforts at bipartisanship. A growing chorus of über-pundits, however, takes the opposite view. Mike Tomasky has an excellent post praising Obama's strategy, and Rick Hertzberg has an excellent essay as well-- "Even if it fails as a tactic for compromise," he writes, bipartisanship "can succeed as a tonal strategy."
- Did you know President Obama issued economic sanctions to warring parties in the Côte d'Ivoire? Neither did anyone else. Despite unprecedented transparency and intense scrutiny, a number of presidential actions have slipped entirely under the radar.
- What began as a sad, sorry affair has turned comedic. Senator Roland Burris offered his fifth version of events leading up to his appointment by "Crooked" Rod Blagojevich, now admitting that he tried to raise cash for Blago, but failed. Sounds like he'll be a cracker jack senatorial candidate in 2010... if he lasts that long.
Economy
The WSJ reports that GM is seeking an additional $16.6 billion on top of the cash they've already requested. Chrysler, too, wants billions more. The NY Times has slightly different numbers, but the message is the same: these companies are on the brink, and need serious, immediate help lest they be forced to file for Chapter 11 bankruptcy protection.
- GM is cutting some of its oldest lines of autos, and apparently some people are upset about this. Goodbye, Saturn.
International
- President Obama authorized the deployment of an additional 17,000 troops to Afghanistan, beginning in May, bringing the total to 36,000 Americans among 55,000 NATO troops. This marks the beginning of a strategic shift away from the conflict in Iraq, toward Afghanistan and Pakistan.
- Hundreds of people in Mexico blocked key crossings into the United States, in protest of the Mexican government's use of the military to fight the drug war. Protestors allege abuse of civilians, while the government countered that the protests had been organized by drug gangs.
One More Thing
- Shaq couldn't meet Obama, so he sent his size 23 sneaker instead. Before unwrapping the package, Obama took one whiff, and thought his Chief of Staff was sending him a message.
- Last, is all this bad news getting you down? Okay, let's pause at the end here for a Stephen Colbert vs. Conan O'Brian invisible string dance-off.
- GM and Chrysler have been finalizing their plans to restructure, and will submit their plans to the Obama Administration today. Chrysler is in the process of trying to be taken over by Fiat, and GM is attempting to sell off its Hummer and Saab divisions. No luck so far for either company.
- While the Administration backed away from naming a Car Czar, opting instead for a panel to be overseen by Secretary Geithner and Larry Summers, Ron Bloom, a former investment banker will be a key advisor to the Presidential task force. Reactions to the decision have been mixed.
Politics
- The world's fifth biggest economy is collapsing in a heap. The California State Legislature failed to come up with a budget after three days of negotiations, and now Governor Schwartenegger is poised to lay off 10,000 workers and cut 275 government programs.
- Eric Cantor, apparently fashioning himself as a leading voice in opposition to the Obama administration, offers up a fabulously incoherent knock on the $50 billion plan to stem home foreclosures expected soon. Apparently, Cantor believes that "If we put the bill for $50 billion plus on top of all the bills that families have right now, you may very well be set to encourage more foreclosures." Wait, what?
- Have I mentioned that we're hosting an event here at NDN today? No, I haven't. But Jose Antonio Vargas of the Washington Post has. If you're in the neighborhood, why not RSVP and come by to hear all about New Tools for a New Era? If you're not, tune into our brand new livestream page at noon, to catch the action as it happens.
- House Majority Leader Steny Hoyer wants Speaker Nancy Pelosi to be a real woman and stand up to a Senate that seemed slightly hijacked by three centrist Republican Senators. The WaPo reports that liberals everywhere would also like to see a sterner line set by President Obama.
International
- 12,000 Pakistani troops have been held off by 3,000 Taliban fighters in the Swat Valley of Pakistan, and the government has effectively conceded the area to the Taliban, accepting the rule of Islamic law in the region and calling a truce. The valley is just 100 miles from the capital city Islamabad.
- Japanese Prime Minister Taro Aso will be the first foreign head of state to visit the White House. Secretary Clinton's visit to Tokyo is going swimmingly, thus far.
One More Thing
- Did you hear about the chief executive who, even as his organization was laying people off and facing insolvency, took home nearly $1 million including ample bonuses? No, he's not a banker, he's the Postmaster General.
- Can we finally have a serious discussion about Howard Fineman's hair, please? Sometimes it's like this city doesn't even care.
- Last, the Japanese Finance Minister will resign after this fiasco, in which he addresses a G7 meeting appearing well-soused. He was apparently just strung out on cough syrup:
Some Rights Reserved 2008 - Present, NDN. 
Leader: Health Care Piggy Bank
Leader: Speechification
Leader: Poll Dancing
Leader: Big Gov in the Big Citi?
Leader: California Dreamin'
Leader: Keeping People in Their Homes!
Leader: Foreclosure and the World Economy
Leader: Car Wars
