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Politics

Asia Times: Bush to attack Iran by August.

Asia Times is reporting that “a retired US career diplomat and former assistant secretary of state still active in the foreign affairs community” are alleging that the Bush administration “plans to launch an air strike against Iran within the next two months” :

The source, a retired US career diplomat and former assistant secretary of state still active in the foreign affairs community, speaking anonymously, said last week that the US plans an air strike against the Iranian Revolutionary Guards Corps (IRGC). The air strike would target the headquarters of the IRGC’s elite Quds force. With an estimated strength of up to 90,000 fighters, the Quds’ stated mission is to spread Iran’s revolution of 1979 throughout the region.

Last week, the White House denied a story in the Jerusalem Post that claimed that President Bush “intends to attack Iran before the end of his term.”

Update

Raw Story is reporting that aides to Sens. Diane Feinstein (D-CA) and Richard Lugar (R-IN) are denying any knowledge of a Bush administration plan to strike Iran by August:

That story was inaccurate. Senator Feinstein has not received any briefing – classified or unclassified – from the Administration involving any plans to strike Iran,” Philip J. Lavelle, the California Democrat’s press secretary, wrote in an e-mail to RAW STORY Wednesday. “In addition, she has not submitted an op-ed to the NYT, or any other paper, on this subject in recent days. She has been a strong advocate for diplomacy with Iran, and will continue to be one.” Lugar spokesman Andy Fisher was more succinct: “No briefing. No oped. No conversations. No story.”

Economy

Countrywide CEO’s ‘Disgusting’ Reply To Struggling Homeowners

mozilo.jpg
Angelo Mozilo

The Los Angeles Times dug up a story that we at the Wonk Room think is worth highlighting for our readers about Countrywide Financial CEO, Angelo Mozilo. Making the classic email blunder, Mozilo accidentally hit reply instead of forward in response to a message sent by a Countrywide customer seeking adjustment in the terms of his mortgage. Mozilo replied to the customer by saying:

This is unbelievable [...] Most of these letters now have the same wording. Obviously they are being counseled by some other person or by the Internet. Disgusting.

Dan Bailey, the homeowner who sent the email to Mozilo, didn’t take this response sitting down. Bailey posted Mozilo’s reply, which was reportedly intended as a forwarded to a Countrywide colleague rather than an email to Bailey, on the site that provided Bailey with the email template. He then had this to say:

To have received the e-mail that I did, stating by one of your employees, that what I did was ‘disgusting’ and ‘unbelievable’ has been just about the final straw. I am trying to do the right thing, I am trying with every ounce of what I have left in me not to blow my brains out over losing the home I have been in for 16 years. The only hope I had left was that perhaps the countrywide company did want to help the people it is servicing [...] then I receive that response to my letter. Just great. Now I know, that it is all a nice fat laughing matter to those who are supposed to help.

Mozilo, who collected $132 million in earnings last year amidst a tumbling mortgage market, thousands of monthly foreclosures and record low home prices, apparently sees websites like loansafe.org, whose mission is to offer “free foreclosure help that is based on a support community” as a personal annoyance, rather than a tool to help struggling homeowners. It’s not like Mozilo is offering any alternative, however — the Wonk Room’s examination of Countrywide’s site reveals a glaring lack of advice, or even a system, for borrowers looking to adjust the terms of their loans. It’s too bad that President Bush’s belief is that lenders should work voluntarily with homeowners, because with attitudes like Mozilo’s, it’ll be a while before we see relief to this crisis.

If Mozilo has such a visceral reaction to emails like Bailey’s, then we’d love to see how he’d react to something that is actually “unbelievable” or “disgusting” — like hearing his home was being seized by the bank.

Yglesias

Lanny Davis, Unhinged

[Isaac]

If there is a silver lining to this endless primary battle, it has been the public decomposition of Clinton apparatchik Lanny Davis. Davis, you may remember, was a big Bill Clinton defender during impeachment; he now spends his time blogging and spinning for Senator Clinton’s campaign. If you missed his classic CNN breakdown, it’s here.

Now, via Andrew, I see that Lanny has published what even for him must count as a pathetic attack on Obama. Portentously titled “Four Things the Obama Camp Couldn’t Resist Doing to Anger Clinton Supporters,” the post is even more unhinged than we have come to expect. Here’s #1:

Couldn’t resist waiting one day after Sen. Clinton won West Virginia by 41 points to announce John Edwards endorsement.

Eh? This decision was somehow nefarious? Moving on:

Couldn’t resist waiting to win majority of all delegates to announce Jim Johnson as VP search committee head — the first candidate in my memory ever to do so while his chief opponent is still fighting for nomination — and winning in last primary in crucial border state by 36 points (Kentucky). What’s the rush? Obama wouldn’t confirm or deny the that Mr. Johnson has been appointed to head the VP search effort. That makes many Clinton supporters feel uneasy about Senator Obama.

I’m not even sure what Davis’ point is here, but it does at least put on display the more-in-sorrow-than-in-anger style that he likes to alternate with his generally angry disposition. Finally:

Couldn’t resist listing Bill Richardson as under consideration for Veep – the one Red Flag name that infuriates even moderate Clinton supporters the most — not because he chose to endorse Sen. Obama, but the way he did it, i.e., his inability to avoid making negative comments about Sen. Clinton while doing so — another person who sometimes can’t resist the temptation of not being gracious when he should be, a great disappointment to many of his former close friends from the Clinton camp and which will not be forgotten.

Sic. Anyway, farewell Lanny: We hardly knew ye.

Politics

Memo to McCain: You Can’t Put The Toothpaste Back In The Tube On Hagee

mccain_hageeweb3.jpgOur guest blogger is Chris Korzen, executive director of Catholics United and co-author of A Nation for All: How the Catholic Vision of the Common Good Can Save America from the Politics of Division.

After learning of Rev. John Hagee’s sermon proposing that the Holocaust was the fault of Jews themselves, Sen. John McCain (R-AZ) finally rejected the Texas megachurch preacher’s endorsement last week.

For once in this sordid affair, McCain has done the right thing. But his move comes only after nearly three months of failed attempts to explain his decision to seek the ill-advised endorsement in the first place. The senator should have bailed out in February, after Hagee’s anti-Catholic views first drew national attention. Instead, he stubbornly refused to reject the pastor’s support, saying only: “In no way did I intend for his endorsement to suggest that I in turn agree with all of Pastor Hagee’s views.”

John McCain earned the country’s respect in his 2000 “Straight-talk” presidential campaign. Offering a new brand of politics, he memorably denounced “agents of intolerance” and said that the politics of division and slander were not his values. But eight years later, things have changed. McCain seems to have decided that in order to win the Republican nomination, he has to embrace what he once denounced.

Hagee’s comments linking Hitler and the Catholic Church are patently offensive. His support for a war with Iran and his comparison of those who support a two-state solution in Israel to Nazis make a mockery of Christian calls for a just and lasting peace in the Middle East. And then there’s the mind-boggling suggestion that God sent Hurricane Katrina to punish New Orleans for its residents’ supposed moral indiscretions.

Why did it take all this plus anti-Semitism to force McCain to renounce the endorsement? Hagee’s outrageous views about the Catholic Church alone should have been enough. Read more

Health

Individual Insurance Comes With A High Price

McCainPeter Suderman, at American Spectator’s blog, has proven again that conservatives don’t understand health care. In reference to a recent Center for American Progress Action Fund report showing that Sen. John McCain’s (R-AZ) health plan will dramatically increase administrative costs in our health care system, Suderman states, “What’s going to happen is that, under McCain’s plan, more people will make the switch to the individual market, which has cheaper plans but higher administrative costs.”

“According to the numbers CAP cites in its own study, individual market plans are far less expensive than those purchased through the group/employer market,” he adds. Suderman concludes:

So the real message here is that John McCain wants to promote health insurance plans that cost less money.

Suderman is missing the point. The plans McCain wants to promote cost less because they’re worth less. As insurance guru and Georgetown University professor Karen Pollitz has said:

It’s true that the advertised prices for many individual policies in many states are eye-poppingly low. The policies often cover very little: $5,000 deductibles, four doctor visits a year, no drugs.

Studies show that plans on the individual market have lower premium costs because they offer much weaker protections than those in the group market:

Individual market policies offer weaker financial protections, despite their costs having risen by more than one third from 2001 to 2004. [Health Affairs, 2008]

Basic benefits are frequently excluded from individual plans, such as maternity, prescription drugs, and mental health — with any pre-existing conditions more often than not being permanently excluded from coverage. [Commonwealth Fund, 02/05]

In 2007, median out-of-pocket medical expenses for those with individual health insurance policies were $2,264 as compared to $973 for people with employer-based plans. [Consumer Reports, 01/08]

There are other reasons that individual market plans are cheaper. For example, the plans cherry pick the healthiest people to enroll, something that they will continue to try to do under the McCain approach.

The bottom line is that John McCain thinks that health care costs are too high because people get too much health care. That’s why, under his plan, individuals are left to fend for themselves to get the coverage they need. McCain is so driven to achieve this change that he is willing to waste roughly $20 billion more annually in paperwork to expand the individual market.

Climate Progress

Boxer bill update: Probably no U.S. CO2 emissions cut until after 2025.

arch.jpgI made a mistake about the Boxer substitute for the Lieberman-Warner bill. Every year, it allows into the market enough offsets to cover 30% of the total quantity of emissions allowances. I had said it was 15% (here), which was a loophole the size of the Gateway Arch. How big a loophole is 30% offsets? Wait and see.

I had said the three offsets — domestic, international, and international forestry — could make up 15% of allowances because the WRI summary (here) says that “The combination of all three of these mechanisms is limited to 15 percent of total emissions allowances” and because when I read the actual bill (here, page 23), that’s what it seemed to say. But in fact we read it wrong. My apologies! What does this all mean?

It means we have now doubled the number of offsets, which wouldinvolve substantial issuance of credits that do not represent real emissions reductions,” according to a recent analysis by Stanford.

Now when I redo the math, it seems the most likely outcome of this bill is that U.S. energy-related CO2 emissions in 2025 would we about the same as they are now, and possibly higher. If that’s the best we can do for a piece of legislation that’s deader than a dead parrot — it is a dead parrot whose body has been given to a veterinary anatomy class for dissection and had its heart removed — why bother?

REDOING THE MATH

Read more

Politics

Taxpayers pay for Bush to attend McCain fundraiser.

Tonight, Sen. John McCain (R-AZ) will hold a private fundraiser in Phoenix with President Bush, an event McCain has desperately tried to hide from the public. CNN’s Ed Henry reports that the White House has scheduled another event during the trip to Arizona, resulting in American taxpayers paying for Bush to raise money for McCain:

BLITZER: Ed, who pays when the President goes to a fundraiser like this for John McCain? The McCain campaign or the American taxpayer?

HENRY: They both pay, Wolf. The bottom line is the President is trying to mix in a little official business today. He’s going to speak at cable company…short remarks. That justifies for the White House charging the taxpayers for some of this trip, and the McCain camp picks up the rest, Wolf.

Watch it:

Politics

McCain Backtracks On ‘Apology Requirement’ For Telecom Amnesty, Supports Retroactive Immunity

mccainimmunity.JPGLast week, as Wired Magazine reported, Chuck Fish, a lawyer for Sen. John McCain’s (R-AZ) campaign, suggested that the senator would support immunity for telecoms that aided the Bush administration’s warrantless wiretapping program only if the companies offered “heartfelt repentance” for illegally spying on Americans:

As president, presumptive Republican nominee John McCain would not support immunity for the telecoms that aided the Bush administration’s warrantless spying program, unless there were revealing Congressional hearings and heartfelt repentance from those telephone and internet companies, a campaign surrogate said Wednesday.

McCain’s campaign is now backtracking from the apology requirement. In a response to the Wired interview, the McCain campaign said McCain has “shown a commitment to winning the battle against Islamic fundamentalists,” arguing that the lawyer “incorrectly represented” McCain’s position:

John McCain believes that as part of this battle, companies who assist the government in good faith should not be punished, but he also believes that Congress must put forth clear guidelines for requesting the participation of private companies, provide proper Congressional oversight of any such participation and protect all Americans privacy. After careful and deliberate consideration, fact-finding, and exploration of options, John McCain has continued to support renewal of the Foreign Intelligence and Surveillance Act. The granting of retroactive immunity supports the continuing efforts of participating companies yet should be done with explicit statements that this is not a blessing for future activities.

McCain has already voted for telecom immunity. In February he said it was “disgraceful” that Congress had not approved a bill expanding the Bush administration’s surveillance powers and granting immunity.

Making the same mistake as Vice President Cheney, the McCain campaign’s statement incorrectly suggests that the Foreign Intelligence Surveillance Act is set to expire. As Wired points out, “The Protect America Act, passed last August after much fear mongering, did expire in February, but the orders under that authority remain in effect for a year after they were approved by a judge.”

Update

McJoan notes: “How exactly does rewarding [telecoms] for breaking the law help us ‘win the battle against Islamic fundamentalists’? Can we win it retroactively? Because, if we didn’t win that battle back when the telcos were spying on us illegally, how does granting them retroactive amnesty exactly help now?”

Yglesias

Accounting For Race

[Kay]

There is a WaPo article today about a study released on a 1994 adoption law that was designed to increase adoption of black children. The problem is that the law didn’t really work; adoption of black children increased, but only marginally. The law forbids discussing race during the adoption process, and social parents can’t specifically address the issues of white parents raising a black child.

The law had not significantly changed the situation, the new report found. In 2006, black children represented 15 percent of the nation’s children yet made up 32 percent of the half a million in foster care. Black children still waited longer for adoption than white children, and the adoption rate for black children barely rose from 17 percent of those awaiting adoption in 1996 to 20 percent in 2003.

It seems to me that the main problem with the law is that it’s the same kind of erroneous thinking that’s been applied to affirmative action for years. The thinking seems to be that people don’t want to take race into account so in the end it is non-white people that end up losing out.

Economy

Bush’s Weak Dollar Responsible For Half Of Oil’s Price Increase

Today, the Center for American Progress released a report by Senior Fellow Scott Lilly explaining how the weak US dollar effects the things on the minds of middle class Americans — rising gasoline, food, heating and electricity prices. The US dollar, whose value has dropped by 37 percent against the euro, 31 percent against the Canadian dollar and 17 percent against the British pound since 2000, has plummeted most dramatically in the last 18 months.

euro1.JPG
CAP’s report shows that, although a variety of factors influence the price of oil, including growing global demand and the so-called “security premium,” over half of the increased price American consumers are paying for oil is attributable to the weak dollar.

– As the dollar falls against the euro and other major currencies, oil-exporting states have been demanding more dollars per barrels of oil to protect their ability to meet expenses paid in euros and other currencies. commodity.JPG

– Global institutional investors have tried to protect themselves against further declines in the dollar by moving money into commodity future that are denominated in dollars so that their investments remain stable when the dollar falls. The increased demand for these commodities artificially pushes up prices.

But why is the dollar so devalued? CAP’s report traces the bulk of the dollar’s decline to seven recent cuts in the Federal Funds Rate over the past nine months by the Federal Reserve. The lower the interest paid on a currency, the less likely foreign investors will will be to invest in instruments denominated in that currency, and the more likely U.S. investors will want to search for better returns overseas.

exxon.JPGWhat’s most interesting is that under a devalued currency, oil companies stand to gain significantly in comparison to other businesses. Denominated in dollars, energy companies increase in value proportionately to the dollar’s decline. Exxon Mobil, for example, one of the nation’s largest oil companies, has seen its share price increase in precise parallel to the appreciation in the price of a barrel of crude oil. The government’s monetary policy, along with the weak dollar, not only create winners and losers in terms of consumers and businesses, but also benefit certain businesses far more than others.

Read the full report.

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