By way of Follow Me Here, the chief economist at Morgan Stanley warns private audiences that, in his opinion, the US is headed for economic “Armageddon.” “In a nutshell, Roach’s argument is that America’s record trade deficit means the dollar will keep falling. To keep foreigners buying T-bills and prevent a resulting rise in inflation, Federal Reserve Chairman Alan Greenspan will be forced to raise interest rates further and faster than he wants. The result: U.S. consumers, who are in debt up to their eyeballs, will get pounded.”
Category: Politics (2002-2004)
Follow the Money.
A recent study by PoliticalMoneyLine confirms what we all know: corporations love them some GOP. “While many corporate PACs in the 1970s and 1980s sought to split campaign contributions between candidates of both parties, the new study found that more than a quarter of the large corporate PACs gave at least $3 to Republican candidates for every $1 to Democrats.“
University Blues.
Feeling oh-so-oppressed as usual, student conservatives at Berkeley decry the 7-1 Dem-to-GOP ratio among Humanities and Social Science profs nationwide. Tsk, tsk…they say it like it’s such a bad thing. Well, if you’d prefer that we lefties work elsewhere than academia — say, in government — y’all know how to vote next time.
Hope it’s a Capital One.
Faced with the grim morning-after receipts of Dubya’s feckless splurging and deficit-exploding tax cuts, the Senate is forced raise the debt limit by $800 billion (again) to stop the government from going into default. “Though an increase in the debt ceiling was never in doubt, Republican leaders in both houses of Congress postponed action on it last month, until after the elections, to deprive Democrats of a chance to accuse them of fiscal irresponsibility.”
Spoiling the Spoils.
Even in success, it seems, the Right can’t be relied upon to play by the rules. As the House GOP moves to shield Tom DeLay from the Rostenkowski rule they passed eleven years ago (mandating that an indicted leader step down), Senate Republicans look to the “nuclear option” for ending filibusters of judicial nominees, which would allow said filibusters to be ended with a simple 51-vote majority. Finally, in a dubious display of bipartisanship, the Bushies aim to peel off one more Senate vote by offering Democratic Senator Ben Nelson the Agriculture post.
First, We take the DNC.
“Ah you loved me as a loser, but now you’re worried that I just might win. You know the way to stop me, but you don’t have the discipline.” The DLC and other Democratic centrists push Tom Vilsack, Jeanne Shaheen, and a handful of other milquetoast contenders to be the next DNC head (and to thwart the Dean alternative.) Look, it’s obvious the Republican-lite status quo wasn’t working. It’s time to drop the protective camouflage and articulate a progressive narrative that highlights the grotesquely pro-corporate nature of the GOP. With that in mind, let’s sidestep the party flaks, and go ahead and pick Howard. At this point, it’s not like we have anything to lose.
The Mythical Maverick.
Content to play the iconoclast again now that election 2004 is over, John McCain calls out the Bush administration on global warming. Too little, too late, Mr. Senator…given the water you carried for the Bushies this last cycle, your free-fall on the Murphometer at this point looks permanent.
A Reid in the Wind.
The Dems in the Senate have officially chosen Harry Reid of Nevada to be the new Minority Leader (and Chuck Schumer to run the DSCC.) “‘He has absolutely no fear,’ said Jimmy Ryan, a former Reid aide who now lobbies for Citigroup. ‘He knows when to call a vote, and when to let your members know it’s time to walk the plank…He’s probably the best reader of human beings I’ve ever met.'” Well, let’s hope so.
Powell’s Used.
Stick a fork in him, and say goodbye to what semblance of multilateralism has existed in the Dubya era. To Rummy’s relish (and to no one’s surprise) Colin Powell’s ignominious tenure at State is through. Seemingly well-intentioned but weak and sidelined most of the time, Powell’s tour at State will probably be best remembered for his losing battles with the Neocons and his embarrassing and misleading performance before the United Nations in 2003.
Following Powell out the door are Education Secretary Rod Paige, Agriculture Secretary Ann Veneman, and Energy Secretary Spencer Abraham. Margaret Spellings, Dubya’s domestic policy advisor, is taking Paige’s gig…I dread to think who else will sign on for Dubya II. Ken Lay at Energy? John Danforth has been mentioned as a possible Powell replacement, but, heck, why not pull Helms out of mothballs? Update: Looks like it’s Condi…and more of the same.
Faith-based Currency.
The dollar tanking? No problemo for this administration, who see a weak dollar as key to offsetting our ballooning trade deficits. “The unsettling worry, however, is what could happen if foreigners suddenly lost interest in holding dollar-denominated investments. The outward rush from U.S. stock and bond markets could send stock prices crashing and interest rates soaring.” Well, at least my college loan debt isn’t in Euros.