The Keystone XL pipeline, awaiting a thumbs up or down on a presidential permit, would increase the import of heavy oil from Canada's oil sands to the U.S. by as much as 510,000 barrels a day, if it gets built.

Proponents tout it as a boon to national security that would reduce America's dependence on oil from unfriendly regimes. Opponents say it would magnify an environmental nightmare at great cost and provide only the illusion of national benefit.

What's been left out of the ferocious debate over the pipeline, however, is the prospect that if president Obama allows a permit for the Keystone XL to be granted, he would be handing a big victory and great financial opportunity to Charles and David Koch, his bitterest political enemies and among the most powerful opponents of his clean economy agenda.

Labels: Barack Obama, Democratic sellouts, FUBAR, futility, R.I.P. America

In the deadliest day for American forces in the nearly decade-long war in Afghanistan, insurgents shot down a Chinook transport helicopter on Saturday, killing 31 Americans and 7 Afghan commandos on board, American and Afghan officials said. American officials said later Saturday that 22 of the dead were members of a Navy SEAL unit, along with other American servicemembers and the Afghan unit. The helicopter was hit by a rocket-propelled grenade in the Tangi Valley of Wardak Province to the west of Kabul, one coalition official said, though others said the exact weapon remained in question.

The Taliban claimed responsibility for the attack, which punctuated a surge of violence across the country, even as American and NATO forces begin a modest drawdown of troops. It occurred after a night raid, a tool that has been praised by American commanders as one of the most effective in the recent military offensive, though the raids have been heavily criticized by Afghan officials and civilians.

The Associated Press has learned that more than 20 Navy SEALs from the unit that killed Osama bin Laden were among the 31 U.S. soldiers lost in a helicopter crash in Afghanistan.

The operators from SEAL Team Six were flown by a crew of the 160th Special Operations Aviation Regiment. That's according to one current and one former U.S. official. Both spoke on condition of anonymity because families are still being notified of the loss of their loved ones. One source says the team was thought to include 22 SEALs, three Air Force air controllers, seven Afghan Army troops, a dog and his handler, and a civilian interpreter, plus the helicopter crew.

Labels: Afghanistan, futility, the so-called war on terror

With just two months until the November elections, the White House is seriously weighing a package of business tax breaks - potentially worth hundreds of billions of dollars - to spur hiring and combat Republican charges that Democratic tax policies hurt small businesses, according to people with knowledge of the deliberations.

Among the options under consideration are a temporary payroll-tax holiday and a permanent extension of the now-expired research-and-development tax credit, which rewards companies that conduct research into new technologies within the United States.

Administration officials have struggled to develop new economic policies and an effective message to blunt expected Republican gains in Congress and defuse complaints from Democrats that President Obama is fumbling the issue most important to voters. Following Obama's vacation and focus on foreign policy in recent weeks, White House advisers have arranged a series of economic events for the president next week, including two trips to swing states and a news conference.

"We'll continue to do everything we can, understanding that recovery will require persistent effort. There are no silver bullets," senior Obama adviser David Axelrod said in an interview Thursday. "At the same time, we have to make clear our ideas and theirs, and the fact that the Washington Republicans, having helped create this recession, have attempted to block our every effort to deal with it."

Anyone wondering where all the economy's jobs are might want to look into piggy banks of the world's biggest companies.

Cash is gushing into companies' coffers as they report what's shaping up to be the third-consecutive quarter of sharp earnings increases. But instead of spending on the typical things, such as expanding and hiring people, companies are mostly pocketing the money and stuffing it under their corporate mattresses.

Non-financial companies in the Standard & Poor's 500 have a record $837 billion in cash, S&P says. That's enough to pay 2.4 million people $70,000-a-year salaries for five years. For context, 2.2 million to 2.8 million jobs were saved or created by the $862 billion stimulus that President Obama signed into law in February 2009, according to a report released in April from the Council of Economic Advisers.

Rather than investing in their future, companies are piling up cash and collecting practically zero interest on the money, hoping there will be a better time to invest later.

Labels: America's Future, Barack Obama, corporatism, Democratic sellouts, futility

A six-year archive of classified military documents made public on Sunday offers an unvarnished, ground-level picture of the war in Afghanistan that is in many respects more grim than the official portrayal.

The secret documents, released on the Internet by an organization called WikiLeaks, are a daily diary of an American-led force often starved for resources and attention as it struggled against an insurgency that grew larger, better coordinated and more deadly each year.

The New York Times, the British newspaper The Guardian and the German magazine Der Spiegel were given access to the voluminous records several weeks ago on the condition that they not report on the material before Sunday.

The documents — some 92,000 reports spanning parts of two administrations from January 2004 through December 2009 — illustrate in mosaic detail why, after the United States has spent almost $300 billion on the war in Afghanistan, the Taliban are stronger than at any time since 2001.

As the new American commander in Afghanistan, Gen. David H. Petraeus, tries to reverse the lagging war effort, the documents sketch a war hamstrung by an Afghan government, police force and army of questionable loyalty and competence, and by a Pakistani military that appears at best uncooperative and at worst to work from the shadows as an unspoken ally of the very insurgent forces the American-led coalition is trying to defeat.

The material comes to light as Congress and the public grow increasingly skeptical of the deepening involvement in Afghanistan and its chances for success as next year’s deadline to begin withdrawing troops looms.

The archive is a vivid reminder that the Afghan conflict until recently was a second-class war, with money, troops and attention lavished on Iraq while soldiers and Marines lamented that the Afghans they were training were not being paid.

Labels: Afghanistan, futility, Those who do not remember the past are doomed to repeat it

Is there a new, bipartisan consensus forming on Capitol Hill about whether (and how) to scale back Social Security benefits? A surprising number of signs point to "yes" -- and that has many progressives looking ahead a few months to what they believe could become a serious fight.

Several of the most powerful members of the House -- Republicans and Democrats -- have recently voiced real support for the idea of raising the retirement age for people middle-aged and younger as part of a larger plan to reduce long-term deficits, inching closer to what not too long ago was the third rail of American politics.

The strongest backer of this plan is House Minority Leader John Boehner, who recently told a Pennsylvania newspaper, "I think raising the retirement age going out 20 years so you're not affecting anyone close to retirement, and eventually getting the retirement age to 70 is a step that needs to be taken."

There's no big surprise there. The Republican minority in the House doesn't have a lot of power, but if Boehner had his druthers, he might well take things quite a bit further. He's the one, after all, who won't take Social Security privatization off the table if Republicans retake the House.

It's the Democrats who have progressives feeling queasy.

House Majority Leader Steny Hoyer explicitly put the idea on the table as well in a speech last month. "We should consider a higher retirement age or one pegged to lifespan," Hoyer said.

He echoed House Majority Whip James Clyburn, who put it this way: "With minor changes to the program such as raising the salary cap and raising the retirement age by one month every year, the program could become solvent for the next 75 years." One month a year may not sound like much, but if you're 30 years away from retirement, that adds up to almost three years.

In the House, though, Nancy Pelosi is the linchpin, and she's not nearly as enthusiastic as her colleagues. But, notwithstanding the enthusiasm gap, she also left the possibility of raising the retirement age on the table. When asked about it by TPMDC at her press conference last week, she criticized the plan, but mainly to say she disagrees with putting Social Security on the chopping block ahead of other measures. "Why they would start talking about a place that could be harmful to our seniors -- 70 is a relative age," Pelosi said. "Around here, there's not a lot of outdoor work or heavy lifting. But for some people it is, and 70 means something different to them. So in any event let's talk about growth, lets talk about how we can reduce spending, lets put everything, those initiatives: promoting growth, tightening the belt, looking at entitlements. But let's not start on the backs of our seniors."

There's one catch, though. Last week, Democrats included a rider to the supplemental war spending bill that will likely force the House to vote on a forthcoming fiscal reform plan, if the Senate passes it first. That package is being put together by President Obama's deficit and debt commission, and will be ready to go after the midterms. Pelosi had already pledged to give the package a vote, so perhaps nothing has really changed. But in a way, she also tied her own hands: if the Senate passes a broad tax-and-entitlement reform package at the end of this Congress and her own caucus is willing, she'll be hard-pressed to stop the Social Security reforms she thinks should come last.

Here is a fact: There. Are. No. Jobs. I'm in Silicon Valley where the official unemployment rate dipped in May to 11.2%. This dip was, of course, because of so many people just giving up trying to get a job, certainly not because of some wave of hiring. The underemployed figure, known as "U-6," is 21.7% in California, 16.7% nationally.

You have to know someone to get a humiliating job standing on a corner waving a sign. And if you are over 40, things are even worse than that. Don't give me any conservative Rush Limbaugh-Ayn Rand dehumanizing nonsense about parasitic lazy people who won't look—there are no jobs.

I know so many people here who are over 40, were laid off in the 2000-era dot com crash, still haven't found a regular job and aren't going to. They have had occasional "contract" positions—which means no benefits, no security, a 15% "self-employment" tax and no unemployment check when the job ends. And now, 10 years later they're a lot over 40 and are not going to find a job because so many employers here won't hire people over 40.

And now there are so many more who lost their jobs in the mass layoffs of 2008-2009 and can't find a job. So many of them are also over 40. In fact, many were laid off in obvious purges of over-40 workers, offered a small severance that they could only receive if they promised to take no age-discrimination action against the employer. (I don't say "company" because some of these worked at nonprofits.)

Most of these people will not find another job, but are too young for Medicare and Social Security.

One Person's Story

I ran into a friend this weekend who I hadn't seen for a couple of years. He had been a computer engineer who had been making 6 figures in the dot-com years. Laid off in the 2000 crash, he moved in with his parents back in the Midwest and worked in a bakery. He came back out here when things picked up a bit and worked in one "contract" job after another. (Contracting is just a scam to get around employment laws—but the government doesn't enforce the rules.) But now he just can't find anything. He managed to get unemployment but now that is running out. He has no health insurance. He can't afford a place to live; he "house sits" for people or visits friends, and doesn't know what he is going to do even two days from now.

What is he going to do? Can you tell me? He has gotten a few interviews, and when they are computer-related is always told he is way overqualified, doesn't seem energetic, probably won't be willing to work 20 hours a day, doesn't look like he is up to date on things that are happening with computers, etc. (How many ways can you say "too old?") He's about 45. If things pick up he will get another job. But people just a few years older will not.

I'm 56, and trying to find work OUT of the Los Angeles area. I'd like to move to Kentucky, where my fiancee is.

Nothing.

Nada.

Not so much as a call back, and I've got 30 years of experience in copy editing, publication design, advertising design and speaking/presentation training. I've been doing web design since '94, when we had to optimize everything for dial-up modems.

I'm "too old".

I -was- told plainly by one recruiter that his employer client wouldn't consider me because health insurance for me would be too expensive, Fred. It seems experience and talent are no longer valued.

I live in Missouri and lost my 13 year job with a municipality 16 months ago because of a political turnover. Previous to this position, I was with another municipality for 18 years. Management in both positions, first as Finance, then in Human Resources. I am 56, with a Master's Degree and 31 years of municipal management experience. And - I can't get a job, to save my soul - or my house! I am either under-qualified or over-qualified or just plain don't even warrant a response at all!

If I get a response to an application or resume at all, it is that they received many applications from highly qualified people and I am not being considered. A recent submission was to a City almost the same size and budget as my previous position, doing exactly what I had been doing, and I wasn't highly qualified enough to even get an interview. Give me a break!

I lost my computer programming job in February this year.

It was nothing more than simply not having the new skill set the company required and feeling that with my workload the company would look askance at doing any on the job training. So I'm out of work and most likely out of luck.

I've had one interview since then with a local company who stated that they wanted someone who could do the work immediately without further training and who would be around for the long term. This from a company that was looking for a programmer after laying off people due to the bad economy.

I have been unemployed since 2008. I have fought to keep my home and pay the bills. I look for jobs 10 hours daily. I have filled out applications that ask if you’re under 40 or over 40. I didn’t know that was a legal question to ask. I am over 40 and I believe that is one of the reasons I do not have a job offer. I have had few interviews with one call back to say I did not get the job and another said I had the job but when I called back to inquire about my application; He said they filled the position from within the company. I cannot believe this! Where am I to go? If I cannot pay the mortgage, no home, cannot pay the phone bill, no phone, cannot pay the internet, no internet. I am at an all time low. I have always worked; you do not know how this makes me feel that I cannot support my family. How would you feel if you had to face your family with no job? I am trying but that is not good enough!

I have been unemployed since Feb. 2009. It is now July 2010. I live in Highland Co., Ohio. It now has the 2nd highest unemployment rate in the state. When DHL in Clinton Co. went out of business, half of the people in Highland Co were also thrown out of work. So how can you find a job with that many people out of work. When one job opened up at a factory , 3000 people applied to it!!!! How to you compete with that many people hunting for work. All I want is to keep a roof over my head and buy groceries. There are no JOBS in my area. The stimulus that was for creating jobs has only helped those that do road work. Great for them, but what about me? I got laid off from a BANK. How ironic that is.

After working for eight and a half years at IBM, Nancy Ikeda, 55, lost her job 13 months ago. She had lived in Binghamton, N.Y., since her daughters were in high school, but after spending most of the year looking in vain for another job, Ikeda decided she couldn’t stay any longer.

[snip]

Unskilled workers undoubtedly have the hardest time finding jobs today: many of the manufacturing jobs that fueled the engine of prosperity in the decades following World War II no longer exist in the U.S.: they have moved to Asia and Latin America. Unions have grown weaker and so are no longer able to protect workers as they once did. The corporate focus on the bottom line mandates efficiency at the expense of workers: whenever possible, expensive manpower is replaced by machinery, and even white-collar work is moved overseas, where wages are lower. In the past decade alone, 5.6 million manufacturing jobs have been lost to automation, Goodman reports.

But Ikeda has an M.B.A. “You’d think I’d be employable,” she says.

You’d think—but Ikeda belongs to the cohort of women 45 to 64 years old, and they have been hit particularly hard in this recession.

Members of Congress are not eligible for a pension until they reach the age of 50, but only if they've completed 20 years of service. Members are eligible at any age after completing 25 years of service or after they reach the age of 62. Please also note that Members of Congress have to serve at least 5 years to even receive a pension.

The amount of a congressperson's pension depends on the years of service and the average of the highest 3 years of his or her salary. By law, the starting amount of a Member's retirement annuity may not exceed 80% of his or her final salary.

According to the Congressional Research Service, 413 retired Members of Congress were receiving federal pensions based fully or in part on their congressional service as of Oct. 1, 2006. Of this number, 290 had retired under CSRS and were receiving an average annual pension of $60,972. A total of 123 Members had retired with service under both CSRS and FERS or with service under FERS only. Their average annual pension was $35,952 in 2006.

Under the Former Presidents Act, each former president is paid a lifetime, taxable pension that is equal to the annual rate of basic pay for the head of an executive federal department -- $193,400 in 2009 – the same annual salary paid to secretaries of the Cabinet agencies.

Each former president and vice president may also take advantage of funds allocated by Congress to help facilitate their transition to private life. These funds are used to provide suitable office space, staff compensation, communications services, and printing and postage associated with the transition.

Labels: Democratic sellouts, futility, greed, hopelessness, social Darwinism, Social Security

The women wore veils. The men donned green Hamas headbands with swirling Arabic script. They gathered by the thousands in a sunny, working-class plaza in Istanbul, bellowing: "Damn Israel!"

The Saturday demonstration seemed incongruous with the image Turkey has long had in the West as a secular friend of Israel and the United States.

But in recent days, public anger has flared over Israel's bloody seizure of a Turkish-flagged aid ship headed to the Gaza Strip, which is under an Israeli blockade. The incident occurred as Turkey has been strengthening ties with Muslim governments in the region -- becoming more vocally pro-Palestinian and trying to head off new U.N. sanctions on Iran.

That has prompted worried speculation at home and abroad: Is Turkey turning away from the West?

Labels: Christofascist Zombie Brigade, futility, insanity, Israel

Obama's self-interpretation is so persuasive that it has largely preempted other interpretations. Telling his story in relation to his missing father, the son explains how in finding his identity he grew from anger and cynicism to deep social commitment. The lack of deep attachments in his life, however, is a different issue. To speculate, it may have more to do with his relationship with his mother. When Barry Obama was 10, his mother sent him from Indonesia back to live with her parents in Hawaii. She returned there after her second marriage ended, but when she went back to Indonesia a few years later, her teenage son chose to stay in Hawaii. This loving but physically distant relationship seems to have left Obama self-reliant to an unusual degree.

For a politician, emotional self-sufficiency is both asset and liability. On the positive side, it supports Obama's rationalism, his level-headedness in crisis, and his dispassionate decision making. On the negative, it can read as cold, aloof, or arrogant. It's healthy that Obama doesn't need the roar of the crowd for validation. It's a problem that the crowd seems to need more from him than he is able to provide.

President Obama will call for a three-year freeze in spending on many domestic programs, and for increases no greater than inflation after that, an initiative intended to signal his seriousness about cutting the budget deficit, administration officials said Monday.

The officials said the proposal would be a major component both of Mr. Obama’s State of the Union address on Wednesday and of the budget he will send to Congress on Monday for the fiscal year that begins in October.

The freeze would cover the agencies and programs for which Congress allocates specific budgets each year, including air traffic control, farm subsidies, education, nutrition and national parks.

But it would exempt security-related budgets for the Pentagon, foreign aid, the Veterans Administration and homeland security, as well as the entitlement programs that make up the biggest and fastest-growing part of the federal budget: Medicare, Medicaid and Social Security.

The payoff in budget savings would be small relative to the deficit: The estimated $250 billion in savings over 10 years would be less than 3 percent of the roughly $9 trillion in additional deficits the government is expected to accumulate over that time.

The initiative holds political risks as well as potential benefits. Because Mr. Obama plans to exempt military spending while leaving many popular domestic programs vulnerable, his move is certain to further anger liberals in his party and senior Democrats in Congress, who are already upset by the possible collapse of health care legislation and the troop buildup in Afghanistan, among other things.

Fiscally conservative Democrats in the House and Senate have urged Mr. Obama to support a freeze, and it would suggest to voters, Wall Street and other nations that the president is willing to make tough decisions at a time when the deficit and the national debt, in the view of many economists, have reached levels that undermine the nation’s long-term prosperity. Perceptions that government spending is out of control have contributed to Mr. Obama’s loss of support among independent voters, and concern about the government’s fiscal health could put upward pressure on the interest rates the United States has to pay to borrow money from investors and nations, especially China, that have been financing Washington’s budget deficit.

Republicans were quick to mock the freeze proposal. “Given Washington Democrats’ unprecedented spending binge, this is like announcing you’re going on a diet after winning a pie-eating contest,” said Michael Steel, a spokesman for the House Republican leader, Representative John A. Boehner of Ohio.

A spending freeze will make it even harder to get jobs back because government is the last spender around. Consumers have pulled back, investors won’t do much until they know consumers are out there, and exports are minuscule.

Jobs may be coming back a bit in the next months but the country has lost so many (not to mention all those who have entered the workforce over the last two years and still can’t land a job) that it will be many years before the middle class can relax. Furthermore, this recession isn’t like other recessions in recent memory. It has more to do with problems deep in the structure of the American economy than with the ups and downs of the business cycle.

Like Clinton’s, Obama’s package of middle-class benefits is small potatoes. They’re worthwhile but they pale relative to the size and scale of the challenge America’s middle class is now facing. Obama can no longer afford to come up with lists of nice things to do. At the least, he’s got to do two very big and important things: 1) Enact a second stimulus. It should mainly focus on bailing out state and local governments that are now cutting services and raising taxes, and squeezing the middle class. This would be the best way to reinvigorate the economy quickly. 2) Help distressed homeowners by allowing them to include their mortgage debt in personal bankruptcy -- which will give them far more bargaining leverage with mortgage lenders. (Wall Street hates this.)

Yet instead of moving in this direction, Obama is moving in the opposite one. His three-year freeze on a large portion of discretionary spending will make it impossible for him to do much of anything for the middle class that’s important.

Labels: Barack Obama, budget, futility, nickel psychology, spending