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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?


To: Jim Willie CB who wrote (20285)6/12/2003 10:46:04 AM
From: stockman_scott  Read Replies (1) | Respond to of 89467
 
Tax cuts mean service cuts

______________________________

By THOMAS L. FRIEDMAN
SYNDICATED COLUMNIST
Thursday, June 12, 2003

Democrats have been groping for a way to counter George W. Bush's maniacal tax cuts, which are designed to shrink government and shift as many things as possible to the market.

May I make a suggestion? When you shrink government, what you do, over time, is shrink the services provided by federal, state and local governments to the vast U.S. middle class. I would suggest that, henceforth, Democrats simply ask voters to substitute the word "services" for the word "taxes" every time they hear President Bush speak.

That is, when the president says he wants yet another round of reckless "tax cuts," which will shift huge burdens to our children, Democrats should simply refer to them as "service cuts," because that is the only way these tax cuts will be paid for -- by cuts in services. Indeed, the Democrats' bumper sticker in 2004 should be: "Read my lips, no new services. Thank you, President Bush."

Say it with me now: "Read my lips, no new services -- or old ones."

Whenever Bush says "It's not the government's money, it's your money," Democrats should point out that what he is really saying is "It's not the government's services, it's your services" -- and thanks to the Bush tax cuts, soon you'll be paying for many of them yourself.

As former Nixon-era Commerce Secretary Peter Peterson just observed in The New York Times, when Bush took office, the 10-year budget projection showed a $5.6 trillion surplus -- something that would easily prefinance the cost of Social Security. The first Bush tax cut, coupled with continued spending growth and post-Sept. 11 costs, brought the projected surplus down to $1 trillion.

"Unfazed by this turnaround," Peterson noted, "the Bush administration proposed a second tax-cut package in 2003 in the face of huge new fiscal demands, including a war in Iraq and an urgent 'homeland security' agenda."

Result: Now the 10-year fiscal projection is for a $4 trillion deficit.

This in turn will shrink the federal government's ability to help already strapped states. Since most states have to run balanced budgets, that will mean less health care and kindergarten for children and the poor, higher state college tuition, smaller school budgets and fewer state service workers. And Lord knows how we'll finance Social Security.

Everyone wants taxes to be cut, but no one wants services to be cut, which is why Democrats have to reframe the debate and show Bush for what he really is: a man who is not putting money into your pocket, but who is removing government services and safety nets from your life.

Ditto on foreign policy. As we and our government continue to spend and invest more than we save, we will become even more dependent on the world to finance the gap. Foreigners will have to buy even more of our T-bills and other assets. And do you know on whom we'll be most dependent for that? China and Japan. Yes, that China -- the one the Bush team says is our biggest geopolitical rival.

"In the 1990s, Japan's and China's excess savings were financing our private sector investment, because the government was in surplus," says Robert Hormats, vice chairman of Goldman Sachs International. "Now, with these looming deficits, China and Japan are being asked to finance our government's actual operations."

That makes us very dependent on their willingness to continue sending us hundreds of billions of dollars of their savings. Should China and Japan not want to play along, your services very likely will be cut even sooner (unless you believe in "voodoo economics"). Which is why Democrats should rename this tax bill the China-Japan Economic Dependency Act.

I don't think Democrats can win the presidency with a single issue. You win the presidency by connecting with the American people's gut insecurities and aspirations. You win with a concept. The concept I'd argue for is "neoliberalism." More Americans today are natural neolibs than neocons. Neoliberals believe in a muscular foreign policy and a credible defense budget, but also a prudent fiscal policy that balances taxes, deficit reduction and government services.

To name something is to own it. And the Democrats, for too long, have allowed the Bush team to name its radical reduction in services, and the huge dependence it is creating on foreign capital, as an innocuous "tax cut." Balderdash. This new tax cut is a dangerous foray into wretched excess and it will ultimately make our government, ourselves and our children less secure.
___________________________________________

Thomas L. Friedman is foreign affairs columnist for The New York Times. Copyright 2003 New York Times News Service.

seattlepi.nwsource.com



To: Jim Willie CB who wrote (20285)6/12/2003 2:14:10 PM
From: stockman_scott  Respond to of 89467
 
Consumers CEO warns of gas deficit

__________________________________________________

Bills could double, he tells House panel

June 11, 2003
BY DEE-ANN DURBIN
ASSOCIATED PRESS

freep.com

WASHINGTON -- The president of Michigan's largest utility urged members of Congress to lift restrictions on natural gas exploration, saying Tuesday the country's natural gas needs will double by 2020.

"The current natural gas crunches expose millions of families to a roller-coaster ride of prices," Carl English, Consumers Energy Co.'s president and chief executive, told the House Energy and Commerce Committee.

English predicted a "firestorm of protest" this winter, when residents' natural gas bills could double. Consumers Energy provides electricity and natural gas to 6 million Michigan residents. Businesses, which consume 40 percent of all natural gas produced, also face major cost increases, he said.

"Businesses cannot remain competitive with natural gas prices that are two to three times higher than a few years ago."

U.S. Rep. John Dingell of Michigan, the highest-ranking Democrat on the committee, agreed that volatile natural gas prices are a serious problem. In 2001, Dingell said, prices swung from $9 to $3 per 1,000 cubic feet. Natural gas now is $5 to $6 per 1,000 cubic feet, about twice last year's rates.

"The nation's economic recovery could be jeopardized by continuing high gas prices," Dingell said. But Dingell also said the government needs to promote conservation and the use of renewable fuels rather than simply opening more lands to exploration. Other Democratic committee members agreed.

English testified on behalf of the American Gas Association, which represents companies that supply natural gas to 53 million homes and businesses.

He said demand for clean-burning natural gas is at an all-time high. In Michigan alone, there has been a 20-percent increase in the amount of electricity generated from natural gas in the last three years, English said.

But he predicted severe shortages unless the government eases access to places where exploration is restricted, including the Rocky Mountains, shorelines on the East and West coasts and the Gulf of Mexico.



To: Jim Willie CB who wrote (20285)6/13/2003 9:42:30 AM
From: stockman_scott  Read Replies (4) | Respond to of 89467
 
The Dog Ate My WMDs
________________________________________

By William Rivers Pitt
t r u t h o u t | Perspective
Friday 13 June 2003
truthout.org

After several years teaching high school, I've heard all the excuses. I didn't get my homework done because my computer crashed, because my project partner didn't do their part, because I feel sick, because I left it on the bus, because I had a dance recital, because I was abducted by aliens and viciously probed. Houdini doesn't have as many tricks. No one on earth is more inventive than a high school sophomore backed into a corner and faced with a zero on an assignment.

No one, perhaps, except Bush administration officials forced now to account for their astounding claims made since September 2002 regarding Iraq's alleged weapons program.

After roughly 280 days worth of fearful descriptions of the formidable Iraqi arsenal, coming on the heels of seven years of UNSCOM weapons inspections, four years of surveillance, months of UNMOVIC weapons inspections, the investiture of an entire nation by American and British forces, after which said forces searched "everywhere" per the words of the Marine commander over there and "found nothing," after interrogating dozens of the scientists and officers who have nothing to hide anymore because Hussein is gone, after finding out that the dreaded 'mobile labs' were weather balloon platforms sold to Iraq by the British, George W. Bush and his people suddenly have a few things to answer for.

You may recall this instance where a bombastic claim was made by Bush. During his constitutionally-mandated State of the Union address on January 28, 2003, Mr. Bush said, "Our intelligence officials estimate that Saddam Hussein had the materials to produce as much as 500 tons of sarin, mustard and VX nerve agent." Nearly five months later, those 500 tons are nowhere to be found. A few seconds with a calculator can help us understand exactly what this means.

500 tons of gas equals one million pounds. After UNSCOM, after UNMOVIC, after the war, after the US Army inspectors, after all the satellite surveillance, it is difficult in the extreme to imagine how one million pounds of anything could refuse to be located. Bear in mind, also, that this one million pounds is but a part of the Iraqi weapons arsenal described by Bush and his administration.

Maybe the dog ate it. Or maybe it was never there to begin with, having been destroyed years ago by the first UN inspectors and by the Iraqis themselves. Maybe we went to war on a big lie, one that killed over 3,500 Iraqi civilians to date, one that killed some 170 American soldiers, one that has been costing us one American soldier's life per day thus far.

If you listen to the Republicans on Capitol Hill, however, this is all just about "politics." An in-depth investigation into how exactly we came to go to war on the WMD word of the Bush administration has been quashed by the Republican majority in the House of Representatives. Closed-door hearings by the Intelligence Committee are planned next week, but an open investigation has been shunted aside by Bush allies who control the gavel and the agenda. If there is nothing to hide, as the administration insists, if nothing was done wrong, one must wonder why they fear to have these questions asked in public.

The questions are being asked anyway. Thirty five Representatives have signed House Resolution 260, which demands with specificity that the administration back up it's oft-repeated claims about the Iraqi weapons arsenal with evidence and fact. The guts of the Resolution are as follows:

Resolved, That the President is requested to transmit to the House of Representatives not later than 4 days after the date of the adoption of this resolution documents or other materials in the President's possession that provides specific evidence for the following claims relating to Iraq's weapons of mass destruction:

(1) On August 26, 2002, the Vice President in a speech stated: `Simply stated, there is no doubt that Saddam Hussein now has weapons of mass destruction . . . What he wants is time, and more time to husband his resources to invest in his ongoing chemical and biological weapons program, and to gain possession of nuclear weapons.'

(2) On September 12, 2002, in a speech to the United Nations General Assembly, the President stated: `Right now, Iraq is expanding and improving facilities that were used for the production of biological weapons.Iraq has made several attempts to buy high-strength aluminum tubes used to enrich uranium for a nuclear weapon.'

(3) On October 7, 2002, in a speech in Cincinnati, Ohio, the President stated: `It possesses and produces chemical and biological weapons. It is seeking nuclear weapons.And surveillance photos reveal that the regime is rebuilding facilities that it had used to produce chemical and biological weapons.'

(4) On January 7, 2003, the Secretary of Defense at a press briefing stated: `There is no doubt in my mind but that they currently have chemical and biological weapons.'

(5) On January 9, 2003, in his daily press briefing, the White House spokesperson stated: 'We know for a fact that there are weapons there Iraq.'

(6) On March 16, 2003, in an appearance on NBC's `Meet The Press', the Vice President stated: `We believe he has, in fact, reconstituted nuclear weapons. I think Mr. El Baradei frankly is wrong.'

(7) On March 17, 2003, in an Address to the Nation, the President stated: `Intelligence gathered by this and other governments leaves no doubt that the Iraq regime continues to possess and conceal some of the most lethal weapons ever devised.'

(8) On March 21, 2003, in his daily press briefing the White House spokesperson stated: `Well, there is no question that we have evidence and information that Iraq has weapons of mass destruction, biological and chemical particularly.all this will be made clear in the course of the operation, for whatever duration it takes.'

(9) On March 24, 2003, in an appearance on CBS's `Face the Nation', the Secretary of Defense stated: `We have seen intelligence over many months that they have chemical and biological weapons, and that they have dispersed them and that they're weaponized and that, in one case at least, the command and control arrangements have been established.'

(10) On March 30, 2003, in an appearance on ABC's `This Week', the Secretary of Defense stated: `We know where they are, they are in the area around Tikrit and Baghdad.'

On June 10, 2003, Representative Henry Waxman transmitted a letter to Condoleezza Rice demanding answers to a specific area of concern in this whole mess. His letter goes on to repeat, in scathing detail, the multifaceted claims made by the Bush administration regarding an Iraqi nuclear weapons program, and deconstructs those claims with a fine scalpel. "What I want to know is the answer to a simple question: Why did the President use forged evidence in the State of the Union address?" the letter concludes. "This is a question that bears directly on the credibility of the United States, and it should be answered in a prompt and forthright manner, with full disclosure of all the relevant facts."

It is this aspect, the nuclear claims, that has led the Bush administration to do what many observers expected them to do for a while now: They have blamed it all on the CIA. A report in the June 12, 2003 edition of the Washington Post cites an unnamed Bush administration official who claims that the CIA knew the evidence of Iraqi nuclear plans had been forged, but that CIA failed to give this information to Bush. The Post story states, "A senior intelligence official said the CIA's action was the result of 'extremely sloppy' handling of a central piece of evidence in the administration's case against then-Iraqi President Saddam Hussein."

Ergo, it wasn't the dog who ate the WMDs. It was the CIA. Unfortunately for Bush and his people, this blame game will not hold water.

Early in October of 2002, Bush went before the American people and delivered yet another vat of nightmarish descriptions of what Saddam Hussein could do to America and the world with his vast array of weaponry. One week before this speech, however, the CIA had publicly stated that Hussein and Iraq were less of a threat than they had been for the last ten years.

Columnist Robert Scheer reported on October 9, 2002, that, "In its report, the CIA concludes that years of U.N. inspections combined with U.S. and British bombing of selected targets have left Iraq far weaker militarily than in the 1980s, when it was supported in its war against Iran by the United States. The CIA report also concedes that the agency has no evidence that Iraq possesses nuclear weapons."

Certainly, if citizen Scheer was able to read and understand the CIA report on Iraq's nuclear capabilities, the President of the United States could easily do so as well.

The scandal which laid Bill Clinton low centered around his lying under oath about sex. The scandal which took down Richard Nixon was certainly more profound, as he was accused of misusing the CIA and FBI to spy on political opponents while paying off people to lie about his actions. Lying under oath and misusing the intelligence community are both serious transgressions, to be sure. The matter of Iraq's weapons program, however, leaves both of these in deep shade.

George W. Bush and his people used the fear and terror that still roils within the American people in the aftermath of September 11 to fob off an unnerving fiction about a faraway nation, and then used that fiction to justify a war that killed thousands and thousands of people.

Latter-day justifications about 'liberating' the Iraqi people or demonstrating the strength of America to the world do not obscure this fact. They lied us into a war that, beyond the death toll, served as the greatest Al Qaeda recruiting drive in the history of the world. They lied about a war that cost billions of dollars which could have been better used to bolster America's amazingly substandard anti-terror defenses. They are attempting, in the aftermath, to misuse the CIA by blaming them for all of it.

Blaming the CIA will not solve this problem, for the CIA is well able to defend itself. Quashing investigations in the House will not stem the questions that come now at a fast and furious clip.

They lied. Period. Trust a teacher on this. We can spot liars who have not done their homework a mile away.

---------

William Rivers Pitt william.pitt@mail.truthout.org is a New York Times best-selling author of two books - "War On Iraq" available now from Context Books, and "The Greatest Sedition is Silence," now available from Pluto Press at www.SilenceIsSedition.com. Scott Lowery contributed research to this report.



To: Jim Willie CB who wrote (20285)6/13/2003 9:56:17 AM
From: stockman_scott  Read Replies (2) | Respond to of 89467
 
Fed Gives the Economy a D Grade
______________________________________

By Mike Gondolff
CNN
Wednesday 11 June 2003
truthout.org

'Beige book' report has little good to say about the economy, raising hopes of a rate cut.

NEW YORK (CNN/Money) - The Federal Reserve gave the U.S. economy's performance in April and May a barely-passing grade Wednesday, in a report likely to solidify market expectations that an interest-rate cut is on the way.

In the Fed's periodic "beige book" report, named for the color of its cover, the twelve Fed districts reported economic activity that ranged from mediocre to so-so, defying expectations that the end of the U.S.-led war with Iraq would boost the economy.

"The unwinding of war-related concerns appears to have provided some lift to business and consumer confidence, but most reports suggested that the effect has not been dramatic," the report said.

Consumer spending was "lackluster," with retail sales still lower than they were a year ago. Manufacturing activity, which has been suffering even longer than the rest of the economy, was mixed, with some districts reporting a drop in orders and some reporting optimism.

Even the healthier service sector, which makes up about 85 percent of the total economy, was "sluggish."

And, perhaps most importantly, labor-market weakness continued, driving wages down. What's worse, companies had to pay more for employee benefits, pinching their profits.

One bright spot, as usual, was residential real estate, as super-low mortgage rates continued to spur demand for houses.

Fed policy makers are scheduled to meet on June 24 and 25 to discuss the economy and whether or not to cut their target for a key overnight lending rate, and the beige book report will guide their thinking.

"This report leaves the door open for a rate cut," said Gary Thayer, chief economist at A.G. Edwards in St. Louis. "There's still uncertainty out there, and as a way to sort of offset the uncertainty, the Fed will do more than it may need to do."

Most economists predict the economy will be stronger in the second half of the year. But many of them also think the Fed will cut rates again in June, to take out additional insurance against the prospect, however remote, of deflation, an unstoppable drop in prices that hurts corporate profits and economic growth.

The beige book report said prices were about as stagnant as the economy in April and May, "with no widespread inflationary or deflationary pressures." Prices for some services, including insurance and tuition, rose, however. Natural gas prices also rose, something Fed Chairman Alan Greenspan has warned could hinder the economy later this year.