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Yglesias

No US Companies Will Get Iraqi Oil Contracts

Vivienne Walt’s report for Time magazine on the handing-out of Iraqi oil contracts strikes me as unduly snarky:

Those who claim that the U.S. invaded Iraq in 2003 to get control of the country’s giant oil reserves will be left scratching their heads by the results of last weekend’s auction of Iraqi oil contracts: Not a single U.S. company secured a deal in the auction of contracts that will shape the Iraqi oil industry for the next couple of decades. Two of the most lucrative of the multi-billion-dollar oil contracts went to two countries which bitterly opposed the U.S. invasion — Russia and China — while even Total Oil of France, which led the charge to deny international approval for the war at the U.N. Security Council in 2003, won a bigger stake than the Americans in the most recent auction. “[The distribution of oil contracts] certainly answers the theory that the war was for the benefit of big U.S. oil interests,” says Alex Munton, Middle East oil analyst for the energy consultancy Wood Mackenzie, whose clients include major U.S. companies. “That has not been demonstrated by what has happened this week.”

I think you would have to have a pretty crude understanding of politics to think that the sole motive for invading Iraq was a desire to see contracts assigned to companies headquartered in the United States.

That said, if you do think a desire to see contracts assigned to oil companies headquartered in the United States was a major Bush administration war aim, all this demonstrates is that the war failed to achieve its aims. After all, I don’t think anyone seriously disputes that one thing the Bush administration was hoping to achieve was to intimidate Iran into complying with American demands. The war has not, in fact, had that effect. But that’s because the war was a bad, poorly implemented idea, conceived of and conducted by immoral and unintelligent people. The fact that the war has failed to achieve most of its aims has no bearing on the issue of whether or not those were, in fact, the aims.

You always need to recall that the original Bush/Cheney/Rumsfeld vision for the war was something very different. US troops go in, overthrow Saddam, quickly install an Ahmed Chalabi or Ayad Allawi type at the head of a new regime, and then a peaceful, stable, pro-American, unitary Iraq emerges like magic. The bulk of American troops pack up and go gome quickly. Maybe 20 or 30 thousand stick around safely on bases, ready to project power around the region. In that Iraq would contracts have gone to Chinese and Russian companies? Probably not. But the larger point would be that having the country of Iraq under American control in that sense would be about a lot more than a contract or two.

Climate Progress

Energy and Global Warming News for December 18

NASA and Google team up to track GHG emissions by satellite; Is ocean acidification the ‘evil twin’ of human-caused climate change; Flat-earther Inhofe gets blown off by Denmark delegates

NASA, Google offer more precise emissions tracking

The question is a potential deal-killer: If nations ever agree to slash greenhouse gas emissions, how will the world know if they live up to their pledges?

The answer is in space, experts say “” both outer space and cyberspace.

NASA, the wonder agency of the 1960s, and Google, the go-to company of the early 21st century, are trying to give the world the ability to monitor both the carbon dioxide pollution and the levels of forest destruction that contribute to global warming.

For NASA, this is both an opportunity and an embarrassment. NASA had a science satellite, Orbiting Carbon Observatory, that as a side benefit would be able to see where carbon dioxide was being spewed. But a February launch of the $280 million satellite failed, sending the satellite into the cold Antarctic waters.

Acid oceans: the ‘evil twin’ of climate change

Read more

Climate Progress

NWF’s Jeremy Symons on the Copenhagen Accord

Dec. 19-I am encouraged by five things from the Accord agreed to here in Copenhagen: The China breakthrough, President Obama’s leadership, new initiatives to protect tropical forests and provide humanitarian aid, and a way forward to a better, more complete deal in 2010. The discouraging part is that the Accord is incomplete and did not convert this rare gathering of world leaders into an ambitious plan for action. Here’s more on why the dramatic rescue of the Copenhagen Accord over the last day was important:

That’s Jeremy Symons, Senior VP for Conservation and Education at the National Wildlife Federation, America’s largest conservation organization, writing at Politico’s Arena.  Here’s the rest of his analysis:

Read more

Politics

Obama Establishes Copenhagen Accord, But We’re Not Done Yet

Obama in CopenhagenShortly before leaving Copenhagen yesterday, President Obama announced that he had succeeded in finalizing the text of an interim political agreement, the Copenhagen Accord, with the cooperation of a surprising array of parties from the developing world, including leaders from Brazil, South Africa, India, and China. This is a first step toward finishing a new internationally ratifiable agreement on climate change, which leaders hope will happen as soon as possible in 2010.

Most significantly, the accord — which has been recognized but not fully accepted by all nations — will launch a new Copenhagen Green Climate Fund next year, providing international financing to reduce deforestation and global warming impacts in vulnerable nations. The accord also marks the first time that the major polluters in the developing world, like India and China, have formally recognized they must commit to reducing global warming emissions.

Although this marks the first progress in the right direction on the international stage after eight long years of inaction under President Bush, much more must be done to stem the harm climate change has already done and to reduce the risk of catastrophic impacts in the future with a “fair, ambitious and legally binding deal,” starting with passage of strong climate legislation by the U.S. Congress. International environmental and human rights organizations agree that we’re “not done yet“:

Millions around the world look to the future and see hope, justice, and opportunity. It is up to each of us to make our voices heard and to get the real deal that the world needs. The world’s leaders still have a chance to get it right. They must realize that we expect, and will not accept, anything less. They’re not done yet. Neither are we.

Read the Wonk Room’s full coverage from Copenhagen here.

Update

Yvo de Boer, Executive Secretary of the UN Climate Change Secretariat, said, “If this makes it through the meeting in a couple of hours’ time then I see it as a modest success. We could have achieved more.”


Update

,Sarah Palin tweets: “Copenhgen=arrogance of man2think we can change nature’s ways.MUST b good stewards of God’s earth,but arrogant&naive2say man overpwers nature”

Yglesias

1,500 Years of Right-Wing Punditry

One always hopes that things will change, but as Chris Wickham observes in his excellent book The Inheritance of Rome: Illuminating the Dark Ages, 400-100, right-wing punditry has been hitting some themes for well over a millennium:

Salvian of Marseilles wrote a long hell-fire sermon called On the Governance of God in the 440s which ascribed Roman failures against the (obviously inferior) “barbarians” to their own sins: notably, unjust and excessive tacation, public entertainment, and sexual license.

Some things never change.

Yglesias

The Way Forward

File-Tom_Harkin_official_portrait

At the leadership press conference earlier today, Senator Tom Harkin acknowledged the disappointment of supporters of the public option and other key progressive priorities, and promised that “this is the beginning of health reform, not the end of health reform.”

It’s a reminder that even though this past week on the internet has been full of disputes between progressive friends of this bill and its progressive foes, that’s only a very transient divide. The real divide is between the Joe Liebermans and Ben Nelsons and Al Froms of the world who are 100 percent happy with how this turned out and the Matt Yglesiases and Marcy Wheelers and Tom Harkins who are not. And the crucial question going forward is whether it will be possible to further improve this legislation.

I think it’s very possible, but only if the people who are disappointed by the shortcomings of this bill take appropriate action. First and foremost, that means working as hard as possible to produce as good an outcome as possible in the 2010 midterm elections. Recall that before 2006, SCHIP expansion couldn’t pass the Senate. And before 2008, SCHIP expansion could pass the Senate but couldn’t get signed into law by the President. Elections have consequences. Starting in January 2011 we might have new progressive senators representing Ohio, New Hampshire, and Missouri or we might have new conservative senators representing Nevada, Delaware, and Connecticut. This is a very big deal. Has Ned Lamont been able to beat Joe Lieberman back in 2006, this might have had a happier ending this year. Elections have consequences.

Beyond that, everyone needs to contact their member of congress, their senators, and any senators or members of congress they’ve volunteered for or donated to. I think people don’t believe me when I say this, but letters from constituents matter a lot on the Hill. They matter to Democrats and they matter to Republicans. So get in touch. Tell people that you support further expansion of public programs, that you support tighter regulation on insurance companies, that you support more generous subsidies, that you support higher taxes on the wealthy, and all the rest.

But don’t stop there. Tell them you want to see the filibuster curbed or abolished. Show you’re informed and mention Jeff Merkley. Tell any Democratic Senators who may support you that you want the caucus to adopt discipline-enhancing rules about committee and subcommittee chairmanships.

I’m sure there are other action-items people can think of. But I wanted to make clear that my point about Weber this morning wasn’t just that people should meekly accept compromises. It’s that you accept compromises and then keep on working to build more political power. You do it by contacting members. You do it by urging friends and colleagues to contact members. You do it by donating to and volunteering for good candidates. You do it by turning out and voting for the better candidate in the race even when that candidate is disappointing. You do it by urging viable candidates to mount risky primary challenges against incumbents who don’t reflect the real possibilities of their constituency. You do it by staying engaged, and working hard.

I think this is an excellent bill, all things considered, but whether you agree with that or not the most important thing is what does the progressive community do going forward to enact even better bills in the future.

Health

New Senate Bill Achieves Greater Deficit Reduction, On Track To Pass By Christmas

The Congressional Budget Office’s analysis of the merged Senate health care bill, incorporating the manager’s amendment, concludes that the legislation would cost $871 billion over 10 years, reduce the deficit by $132 billion over 10 years and by $1.3 trillion over 20 years. The bill would extend insurance to 31 million individuals, covering approximately 94% by 2019.

Here is how the new merged bill compares to the earlier version:


Senate Bill New Managers Amendment Difference
Costs Reduce deficits: $130B/10yrs
Cost: $848B/10yrs
Spends on subsidies: $447B/10yrs
On Medicaid/CHIP: $374B/10yrs
On Small Employer Credit: $27B/10yrs
Reduce deficits: $132B/10yrs
Cost: $871B/10yrs
Spends on subsidies: $436B/10yrs
On Medicaid/CHIP: $395B/10yrs
On Small Employer Credit: $40B/10yrs
Reduce deficits: +$2B/10yrs
Cost: +$23B/10yrs
Spends on subsidies: -$11B/10yrs
On Medicaid/CHIP: +$21B/10yrs
On Small Employer Credit: +$13B/10yrs
Insured Uninsured reduced by: 31M
Uninsured in 2019: 24M
In Exchanges: 25M | Public Plan: 3-4M
In Medicaid: 15M
Uninsured reduced by: 31M
Uninsured in 2019: 23M
In Exchanges: 26M
In Medicaid: 15M
Uninsured reduced by: No Change
Uninsured in 2019: -1M
In Exchanges: +1M
In Medicaid: No Change
Revenue Mandate penalty: $8B/10yrs
Free rider penalty: $28B/10yrs
New taxes: $238B/10yrs
Excise tax: $149B/10yrs
Payroll tax: $54B/10yrs
Mandate penalty: $15B/10yrs
Free rider penalty: $28B/10yrs
New taxes: $264B/10yrs
Excise tax: $149B/10yrs
Payroll tax: $87B/10yrs
Mandate penalty: +$7B/10yrs
Free rider penalty: No Change
New taxes: +$26B/10yrs
Excise tax: No Change
Payroll tax: +$33B/10yrs
Medicare
and
Medicaid
Total savings: $491B/10yrs
Medicare Advantage: $118B/10yrs
Medicare Commission (IMAB): $23B/2015–2019
Total savings: $483B/10yrs
Medicare Advantage: $118B/10yrs
Medicare Commission (IMAB): $28B/2015–2019
Total savings: -$8B/10yrs
Medicare Advantage: No Change
Medicare Commission (IMAB): +$5B/2015–2019

Some of the changes include:

- Holding Insurers Accountable: Insurers in large group market have to maintain a medical loss ration of 85%. Insurers in the small group market have to maintain a medical loss ration of 80%. Insurance companies who jack up their rates will be barred from competing in the exchange.

- Regulations For Children: Starting immediately children cannot be denied health coverage due to pre-existing conditions.

- Nonprofit Insurers Excluded From Tax: Nonprofit insurers are excluded from the tax on the insurance industry.

- Employers Can Offer Vouchers: Individuals and families under 400% of the federal poverty line who receive employer-sponsored coverage and spend 8-9.8% of their income on premiums, could “convert their tax-free employer health subsidies into vouchers that they can use to choose a health insurance plan in the new health insurance exchanges.

- Changes To Medicare Commission: The Medicare Commission will now examine the effect programs have on National Health Expenditures and will be prohibited from increasing premiums. The committee will make non binding recommendations if the Medicare spending rate is below or on target.

- New Choice Of Coverage From Nonprofits: Individuals could enroll in a national health insurance plan managed by the Office of Personnel Management, the same entity that oversees health plans for Members of Congress.

- Investment In Community Health Centers/Rural Areas: A substantial investment in Community Health Centers and more funding for rural health care providers and training programs for physician and other types of health care providers.

- Expands Small Business Tax Credit: The credits begin a year earlier – in 2010 and small businesses are eligible for up to six years. The wage thresholds for small business tax credits is also increased.

- Satisfying Gun Owners: Does not require individuals to disclose whether they own a gun. Gun ownership cannot be factored into premiums or coverage decisions.

- New Taxes: Increases the payroll tax on high income earners from 0.5% to 0.9%; the tax begins in 2013. A 10% tax is imposed on indoor tanning services and the ‘botox tax’ is removed.

Majority Leader Reid will file three cloture motions tonight and the Senate could pass the final legislation on Thursday, December 24th at 7pm. The Senate is expected to vote for cloture on the manager’s amendment Monday at 1am. The second cloture vote on the substitute is scheduled for Tuesday morning and the final cloture vote on the underlining bill could occur Wednesday afternoon.

Note: my colleague Emma Sandoe of DC Progressive contributed greatly to this post.

Yglesias

What’s Not the Matter With American Manufacturing

Noam Scheiber has an interesting piece out about the declining interest of American business goals in manufacturing and the industrial sector. His followup here is also worth reading.

That said, whenever I read something on this subject—or when I was in Germany, whenever I heard a German industrialist being condescending—I do feel compelled to point out that the “decline” of American manufacturing is very frequently overstated. You often hear it said that American “doesn’t make things anymore” but it’s just not true. Industrial production is way lower than it was before the current recession started, but the secular trend is clearly upwards:

FRED Graph

What’s declined is not manufacturing, but manufacturing jobs:

mfgjobsbls

In other words, our manufacturing has gotten much, much, much more efficient. Relatively low-value or unproductive factory work has gone overseas to take advantage of cheap labor and efficient transportation. What remains is an extremely productive industrial sector that’s making more stuff than ever.

That doesn’t make communities devastated by the loss of manufacturing jobs any less devastated, or change the fact that recent decades have seen wages for working class men stagnate or even decline.

Climate Progress

The Copenhagen Accord Is Significant Progress, But We’re Not Done Yet

Our guest blogger is Andrew Light, a specialist in international climate policy and a Senior Fellow with Center for American Progress.

COP15

Shortly before leaving Copenhagen yesterday, President Obama announced that he had succeeded in finalizing the text of an interim political agreement, the Copenhagen Accord, with the cooperation of a surprising array of parties from the developing world, including leaders from Brazil, South Africa, India, and China. This is a first step toward finishing a new internationally ratifiable agreement on climate change.

United Nations Executive Secretary Ban Ki-moon and other parties have committed themselves to taking the next step and turning this document into a binding legal agreement by the next UN climate summit in Mexico City in 2010.

The Danish government outlined the proposal for a two-step process last month; today’s developments mark significant success toward achieving this goal, though further work needs to be done. Accepting this two-step process effectively allowed the United States to put interim targets on the table for emissions reductions for the first time, put money on the table for quick start financing for two years, and more importantly reassert America’s leadership on this issue. As the conference closed today, many parties pledged their commitment to the Copenhagen Accord and promised further emissions reductions. More will follow next year. This proposal will be taken up for full endorsement when initial negotiations start for the Mexico City meeting in 2010. I commend the US negotiators and Secretary Clinton for a job well done under extremely difficult circumstances.

Despite the work that now needs to be done, this interim agreement takes a bold move towards fundamentally changing how the world looks at ending carbon pollution. The United States’ union with the four aforementioned countries is premised on a new guiding assumption for climate negotiations: that the world is divided between the major emitters of carbon pollution and everyone else; not simply developed and developing countries. Though there will be differences among the expectations of emissions reductions among this group, all will be expected to carry their fair share of this challenge in the Copenhagen Accord — putting to rest fears in the United States that decreasing carbon pollution would be at the expense of economic competitiveness.

President Obama was clear that the science of global warming will guide the ambitions of the Copenhagen Accord as it moves toward its next step. This is good news. For the first time, an international agreement on climate change includes provisions to consider holding temperature increases to 1.5 degrees Celsius, lower than the present standard of 2 degrees Celsius.

Now the US Congress must meet this challenge and finish the job it began last summer of achieving energy independence, creating millions of clean energy jobs, and carving out the basis for international leadership on climate change.

Update

Andrew Light has further analysis and what the United States and the world needs to do next at Climate Progress.

Yglesias

A Good Bill

I don’t want to endlessly rehash the intramural argument about whether this bill is worth passing or not, since at the end of the day I’m looking forward to working with all the netroots activists of the world on more and better legislation in the future. But to repeat—despite flaws, I think this is an excellent piece of legislation. Among other things, it represents a return, after fifteen years, of the idea that congress should be trying to pass major legislation that tackles major national problems. And even beyond that, it restores an even longer-lost tradition of congress trying to pass major legislation on specifically progressive priorities.

But before moving on from this argument, I would urge people to read Vicky Kennedy’s op-ed and also Henry Aaron’s op-ed.

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