Tag: TMC Politics

NDAA Detention Provision Ruled Unconstitutional

Cross posted from The Stars Hollow Gazette

In New York City, U.S. District Judge Katherine Forrest ruled that the indefinite detention provision of the National Defense Authorization Act (NDAA) is unconstitutional in violation of the First and Fifth Amendments. The NDAA was signed into law by President Obama in late December after a veto threat over language that was eventually changed at his request.

In a 68-page ruling blocking this statute, U.S. District Judge Katherine Forrest agreed that the statute failed to “pass constitutional muster” because its broad language could be used to quash political dissent.

    “There is a strong public interest in protecting rights guaranteed by the First Amendment,” Forrest wrote. “There is also a strong public interest in ensuring that due process rights guaranteed by the Fifth Amendment are protected by ensuring that ordinary citizens are able to understand the scope of conduct that could subject them to indefinite military detention.”

This puts a whole new spin on today’s debate in the House floor Thursday of an amendment to the NDAA proposed by Representatives Adam Smith (D-Wash.) and Justin Amash (R-Mich.), that would undo the detention provisions and bar military detention for any terror suspects captured on U.S. soil. The ruling was made in response to a law suit brought by former New York Times war correspondent and Pulitzer Prize winner, Chris Hedges and others who argued that the law would have a “chilling effect” on their work:

Hedges was joined in the suit by linguist, author and dissident Noam Chomsky, Pentagon whistle-blower Daniel Ellsberg and other high-profile activists, scholars and politicians.

Hedges argued in his testimony that his work as a journalist would bring him into contact with terrorist organizations that would, given the scope of the law, qualify him for indefinite detention. The plaintiffs argued that the threat of detention alone would be an unconstitutional encroachment on their First Amendment rights to free expression and association, as well as a violation of the Fifth Amendment right to due process.

As Glen Greenwald points out in his Salon article, the court rejected the argument by the government that the NDAA did nothing more than the 2001 AUMF already did and thus did not really expand the Government’s power of indefinite detention:

The court cited three reasons why the NDAA clearly expands the Government’s detention power over the 2001 AUMF (all of which I previously cited when denouncing this bill).

First, “by its terms, the AUMF is tied directly and only to those involved in the events of 9/11,” whereas the NDAA “has a non-specific definition of ‘covered person’ that reaches beyond those involved in the 9/11 attacks by its very terms.”

Second, “the individuals or groups at issue in the AUMF are also more specific than those at issue in § 1021″ of the NDAA; that’s because the AUMF covered those “directly involved in the 9/11 attacks while those in § 1021 [of the NDAA] are specific groups and ‘associated forces’.” Moreover, “the Government has not provided a concrete, cognizable set of organizations or individuals that constitute ‘associated forces,’ lending further indefiniteness to § 1021.”

Third, the AUMF is much more specific about how one is guilty of “supporting” the covered Terrorist groups, while the NDAA is incredibly broad and un-specific in that regard, thus leading the court to believe that even legitimate activities could subject a person to indefinite detention.

The court also decisively rejected the argument that President Obama’s signing statement – expressing limits on how he intends to exercise the NDAA’s detention powers – solves any of these problems. That’s because, said the court, the signing statement “does not state that § 1021 of the NDAA will not be applied to otherwise-protected First Amendment speech nor does it give concrete definitions to the vague terms used in the statute.”

(emphasis mine)

A word of caution, we shouldn’t celebrate victory just yet. This is a preliminary injunction issued by one judge and the government will surely appeal it the Circuit Court.

The debate in the House on the amendment to the NDAA introduced by House Armed Services ranking member Adam Smith (D-Wash.) and Rep. Justin Amash (R-Mich.) that would undo the detention provisions and bar military detention for any terror suspects captured on U.S. soil, will go on this afternoon. The amendment has strong bipartisan support in the House. We still need to take action and write our Representatives to vote for this amendment.

Demand Progress: End Indefinite Detention!

Why the $2 Billion Chase Loss Matters to Everyone

Cross posted from The Stars Hollow Gazette

Felix Salmon, finance blogger at Reuters and Matt Taibbi, of ‘vampire squid” fame from “Rolling Stone“, were guests on “View Point with Eliot Spitzer“, discussing the implications JPMorgan’s $2 billion trading loss and why it should matter to anyone with a banking account at Chase, or any other to big to fail bank.

Taibbi and Salmon agree JPMorgan’s risk-taking has broad implications. “JPMorgan Chase takes deposits in from every single mom and pop, and small business and large business, in the world, and the President of the United States,” Salmon says. “They’re a utility bank and it is their job and their duty … to take those deposits and lend them out into the economy. And what do they do instead? They take $360 billion and put it in a hedge fund in London.”

Jamie Dimon’s failure

by Felix Salmon

Drew’s Chief Investment Office quadrupled in size between 2006 and 2011, reaching $356 billion in total, and it’s easy to see how that happened. On the one hand, it was incredibly profitable, with the London team alone, which oversaw some $200 billion, making $5 billion of profit in 2010, more than 25% of JP Morgan’s net income for the year. At the same time JP Morgan accumulated enormous new deposits in the wake of the financial crisis, both by acquiring banks and by attracting big new clients wanting the safety of a too-big-to-fail bank. Historically, JP Morgan has served big corporations by lending them money, but nowadays, as the cash balances on corporate balance sheets get ever more enormous, the main thing these companies want from JP Morgan is a simple checking account – one where they can be sure that their money is safe.

With lots of deposits coming in, and little corporate demand for loans, it was easy for all that money to find its way to the Chief Investment Office, which could take any amount of liabilities (deposits are liabilities, for a bank) and turn them into assets generating billions of dollars in profits.

Never mind the weak tea Volker rule, what is needed is a new, revised Glass-Steagal, the break up the TBTF and protection for investors and the economy.

Why Are Bank CEO’s Seated on the New York Federal Reserve?

Cross posted from The Stars Hollow Gazette

Why is the CEO of JP Morgan Chase, or for that matter any bank CEO, sitting on the board of the body that is supposed to regulate their banks? This is a serious conflict of interest in the face of the 2008 bank crisis and, now, the $2 billion loss by Chase. $2 billion, a pittance you say. Well consider that loss triggered a drop in Chase’s market value by another $20 billion

As Matt Taibbi points this is a cause for public concern:

[..] J.P. Morgan Chase is a federally-insured depository institution that has been and will continue to be the recipient of massive amounts of public assistance. If the bank fails, someone will reach into your pocket to pay for the cleanup. So when they gamble like drunken sailors, it’s everyone’s problem. [..]

{T}he incident underscored the basic problem. If J.P. Morgan Chase wants to act like a crazed cowboy hedge fund and make wild exacta bets on the derivatives market, they should be welcome to do so. But they shouldn’t get to do it with cheap cash from the Fed’s discount window, and they shouldn’t get to do it with money from the federally-insured bank accounts of teachers, firemen and other such real people. It’s a simple concept: you either get to be a bank, or you get to be a casino. But you can’t be both. If we don’t have rules to enforce that concept, we ought to get some.

Dimon being on the board of the New York Federal Reserve is absurd:

The chief executive of JP Morgan Chase — the largest bank in the land, and the exemplar of a ‘too big to fail’ institution — is allowed to sit at the table with the people tasked with deciding when and how much of other people’s money gets earmarked for his rescue. This is not the fox guarding the hen house; this is the fox guarding the hen house while selling synthetic derivatives whose value increases with every hen he gobbles up, and who burns down the hen house so he can collect on his fire insurance policy, and then gets the government to build him a new hen house at taxpayer expense. And then, after that, he still gets to guard the new hen house.

Elizabeth Warren, a Massachusetts Democrat running for U.S. Senate, called for Dimon’s removal:

JP Morgan Chase CEO Jamie Dimon should resign from the NY Federal Reserve Bank Board

Last week, JP Morgan Chase announced a $2 billion trading loss in two months.

Sunday on Meet the Press, JP Morgan CEO Jamie Dimon said, “We know we were sloppy, we know we were stupid, we know there was bad judgment.”

After the biggest financial crisis in generations, Americans are frustrated that Wall Street has still not been held accountable and does not appear to consider itself responsible. Wall Street banks continue to have fundamental problems, and tough oversight and accountability are urgently needed.

Dimon is not only the CEO of JP Morgan, he is also a member of the Board of Directors of the New York Federal Reserve Bank, where he advises the Federal Reserve on the oversight of the financial industry.

Dimon should resign from his post at the New York Fed to send a signal to the American people that Wall Street bankers get it and to show that they understand the need for responsibility and accountability.

Sign Ms. Warren’s petition for Dimon to resign

 

LGBT: The Times They Are A Changin’

Cross posted from The Stars Hollow Gazette

Yes, they are. And the change has finally struck right wing panderer Chris Matthews who finally called out Tony Perkins of the “Family Research Council” for “spreading hateful lies and junk research about the LGBT community.” On this May 10 segment of Hardball, Matthews, with the help of Rep. Barney Frank, challenged Perkins’ anti-gay misinformation, held him accountable for past statements, and demonstrated how out-of-the-mainstream his extreme positions really are:

Thank you, Mr. Matthews, for showing the rest of the media how a bigot should be treated. This is how a responsible journalist responds to hate speech.

h/t Gaius Publius at AMERICAblog

The President Supports Same Sex Marriage But . . .

Cross posted from The Stars Hollow Gazette

Vice President Joe Biden started a storm over marriage equality when he announced on Meet the Press that same sex marriage was OK with him. The press immediately wanted to know if President Obama’s position had “evolved.” The Biden interview was taped on Friday, so the White House was fully aware of what he had said. Finally, after three days of media over kill, the passage of Amendment 1 in North Carolina and the drying up of donations from the LGBT community, Pres. Obama announced that he “personally” supported same sex marriage. But hold your horses, people, this was just his personal opinion, not his political policy. Obama is still refusing to issue an executive order that would ban discrimination of gays, lesbians and transgender workers by federal contractors. From Sam Stein at Huffington Post:

The senior administration officials declined to say whether the president would now push for gay marriage to be part of the Democratic Party’s platform at the convention. They also said they were not changing positions on an Executive Order that would ban discrimination on the basis of sexual orientation against federal contractors. The president has said he would not sign that order. [..]

There were, however, reasons why even party officials were insisting, not all that long ago, that the president needed to put this off until after the election. There is concern that support for gay marriage will drive away voters in some conservative-leaning swing states. There is even more concern that Republican operatives can and will use the issue to go after the president.

Letting each state decide on the equality of individuals is not the best idea either. How would individuals have voted in states like Mississippi if they had been given the choice about civil rights? Marriage equality is a federal matter since states are required under the Constitution to recognize marriage contracts from other states. Therefore, they should not be permitted to restrict marriage to heterosexual couples.

Does anyone at this point seriously believe that any of the people who voted for NC’S Amendment 1 will ever vote for Obama, no matter what his stand is on marriage equality? Only time will tell if the campaign donation faucet suddenly opens since it had dried up because of the work place discrimination issue. While it is certainly admirable and, in the case of Obama being a sitting president, momentous, for him to have made an official statement, the President still needs to “walk the walk”, back up his words and sign the anti-discrimnation executive order.  

Roubini: Eurozone Is a “Slow Motion Train Wreck.”

Cross posted from The Stars Hollow Gazette

US stocks continue to dip and oil fell to below the $100 mark as the Europeans are balking at austerity only budgets that have exacerbated the recession. Nobel prize winning economist, Nuriel  Roubini weighed in on the crisis in Spain and Greece.

“Greece is going to be the first country that’s going to restructure and exit,” he said. “Others will leave also.”

“By the end of the year Spain is going to lose market access,” Roubini said in a subsequent CNBC interview. “They’re going to require a bailout. That will keep them out of the markets for a year or two. That’s not going to work out – then maybe two years down the line then you have a restructuring of the debt…And eventually even Spain could exit the euro zone-but it’s not something that’s going to happen in 12 months.”

Roubini also predicted that Spain economic situation was similar to Greece and Portugal and would require a bail out but with caveats:

And yet despite the clear signs of failure in the existing bailout countries, the EU looks set to pursue an unchanged plan in Spain. But the crucial difference between Spain and the bailout countries is size. If things go wrong in Greece, Portugal and Ireland, a second bailout is affordable. But there can only be one roll of the dice for a country as large as Spain.

A bailout package would buy some time for Spain, but time will only help if it is used to generate economic growth. By making private claims on the sovereign junior to the claims of the troika (European Commission, European Central Bank and International Monetary Fund) even a bailout risks reducing the chances of it regaining market access. Moreover, with economic indicators showing Spain sinking further into recession, a turnround in the country’s economic performance would require a significant shift in policy: monetary easing by the ECB, a weaker euro, fiscal stimulus in the core, less front-loaded austerity in the periphery, more international firewalls and debt mutualisation.

The Democratic Gutting of the Social Safety Net

Cross posted from The Stars Hollow Gazette

It will be a Democratic Congress and President that will destroy the social safety. Ryan Grimm at Huffington Post reports that House Minority Leader Nancy Pelosi supports the Simpson-Bowles plan:

During a recent press conference, and again during an interview with Charlie Rose, the California Congresswoman said that she would support what’s known as the Simpson-Bowles plan, a budget proposal that was created by the co-chairs of a fiscal commission set up by President Obama (dubbed the “Catfood Commission” by progressives). The plan was rejected by members of the commission, failing to win the necessary votes to move to a vote in Congress. Yet the co-chairs — former Republican Sen. Alan Simpson of Wyoming and Morgan Stanley director Erskin Bowles, a Democrat — have worked recently to revive it, and the political class speaks of it as if it passed and is an official recommendation of the commission.

At the end of March, a version of the Simpson-Bowles plan was given a vote on the House floor. It was annihilated, 382-38, with Pelosi and most Democrats voting against it.

But Pelosi, the day after the vote, said that she could still support the plan if it stuck more closely to the original version put out by Simpson and Bowles. “I felt fully ready to vote for that myself, thought it was not even a controversial thing … When we had our briefing with our caucus members, people felt pretty ready to vote for it. Until we saw it in print,” she said. “It was more a caricature of Simpson Bowles, and that’s why it didn’t pass. If it were actually Simpson-Bowles, I would have voted for it.”

Yet when the Simpson-Bowles plan had been originally unveiled, Pelosi called it “simply unacceptable.”

In early April, Pelosi was asked about her initial opposition. “My problem with it was what it did as far as Social Security is concerned. Apart from that we said, there’s a lot to work with,” she told Charlie Rose. “It was a good framework in terms of revenue and in terms of cuts, in terms of defense spending and the rest. It was very bold.”

The Simpson-Bowles plan is a mix of tax increases and spending cuts that trims four trillion dollars off the deficit in ten years. Its cuts to social spending and entitlement programs made it “simply unacceptable” to the Democrats’ liberal base almost as soon as it was announced. Pelosi’s rhetorical retreat from that hard-line position has progressives worried they’ll have nobody left to defend the social safety net, even Medicare and Social Security.

Progressives need to be really worried, as Gaius Publius at AMERICAblog tells us the “push is on” to “compromise” on Social Security:

All you need to know? Pete Peterson lives for one reason only – to kill off Social Security. Every crazed billionaire has a project. This is his. (No exaggeration; check the link. It’s an excellent William Greider piece.)

From the “Summit” invite (but click fast; pages that name these names disappear fast at the “Summit” website). The underscoring below is mine:

   

Media Advisory

   PETERSON FOUNDATION TO CONVENE 3RD ANNUAL FISCAL SUMMIT IN WASHINGTON ON MAY 15

  Participants to include President Bill Clinton, Speaker of the House John Boehner, Secretary of the Treasury Timothy Geithner, Senator Rob Portman, Congressman Paul Ryan, Congressman Chris Van Hollen, and National Commission on Fiscal Responsibility and Reform Co-Chair Alan Simpson

   NEW YORK (May 08, 2012) – Against the backdrop of the upcoming elections, and with a series of key fiscal deadlines approaching at the end of the year, the Peter G. Peterson Foundation’s 2012 Fiscal Summit: America’s Case for Action will feature the nation’s leading experts and elected officials in discussions about the fiscal, economic, and political crossroads facing the country. …

   This year’s summit will explore opportunities for compromise and establish the urgent need for action on these challenges, as well as highlight the voices of engaged citizens from across the country. The 2012 Fiscal Summit will work to generate the momentum necessary to motivate lawmakers to take action essential to preserving the American Dream.

Two videos that Gaius featured are significant because as he points out President Barack Obama is on the same page Bill Clinton, Paul Ryan and Pete Peterson.

5-25-2011 Leaked cell phone footage of Bill Clinton cozying up to Paul Ryan. The day after the stunning upset in the special congressional election in upstate New York, Rep. Paul Ryan is a man under fire.

Barack Obama’s speech on April 5, 2006 at the launch of The Brookings Institute’s Hamilton Project where Obama says that “most of us are strong free traders” and praises the goals of the Hamilton Project.

This is the “real grand bargain”

The real Grand Bargain isn’t between the Dems and Republicans. It’s between both of them and you. They’re offering to sell out your children’s Social Security, in exchange for letting you keep your own.

Send Nancy a message. Sign the petition and tell her: Draw a line in the sand on cuts to Social Security, Medicare and Medicaid benefits

Ahmadinejad Dealt Blow in Iranian Elections

Cross posted from The Stars Hollow Gazette

While all eyes were on France, the ouster of Nicholas Sarkozy and a rejection of austerity, Iran has been conducting its first elections since the 2009 elections that reinstalled Mahmoud Ahmadinejad as president. This was the second round of voting for seats in the Parliament elections that were held in March. It has dealt a blow to Ahmadinejad and his supporters with a shift to more conservative backers of Ayatollah Ali Khamenei. The rift between Ahmadinejad and the Ayatollah began with dispute over the choice of the national security chief. The voting has left the Ayatollah firmly in charge:

With the bulk of seats decided in Iran’s parliamentary elections, it appeared on Sunday that the supreme leader, Ayatollah Ali Khamenei, has gained the ironclad majority he needed not just to bring the country’s president to heel, but to eliminate the position entirely.

Ayatollah Khamenei has jousted repeatedly with President Mahmoud Ahmadinejad – as well as the two previous presidents – so the supreme leader secured this majority at Mr. Ahmadinejad’s expense.

The ayatollah will seek “to eliminate the post of president,” said Aliakbar Mousavi Khoeini, a former reformist member of the Parliament now living in exile in the United States.

“If they can get that, they will not hold the next presidential election; instead, Parliament will chose a prime minister,” he said. “Then Khamenei will essentially have everything he does approved and pushed through Parliament by his allies.”

Ayatollah Khamenei suggested last October that Iran would be better off governed under a parliamentary system in which the prime minister was chosen from members of the 290-seat Parliament. Under Iran’s byzantine electoral system, most reformist candidates were barred from running in last Friday’s election, essentially creating a contest between the two main hard-liner camps.

With 90 percent of the districts counted, Ayatollah Khamenei’s allies had won about 75 percent of the 200 seats in those districts, according to Press TV, Iran’s state-financed satellite channel, quoting the Interior Ministry.

Khamesian said Ahmadinejad was gradually fading from Iran’s political scene but could still stir up conflict with parliament.

“Ahmadinejad is the losing party. So, he will try to create tensions in the hope of getting concessions,” he said.

The outgoing parliament and Ahmadinejad are at loggerheads over how quickly to slash food and energy subsidies. The president favors dramatic cuts to boost Iran’s ailing economy by reducing the massive drain on the state budget from the subsidies.

The government implemented a first phase of slashing subsidies in December 2010. Gasoline prices quadrupled and bread prices tripled after the cuts came into effect. Prices have also increased in recent months, partly as a result of sanctions over Iran’s nuclear program, as well as news that the government is considering ending subsidies altogether.

Parliamentary speaker Ali Larijani, one of Ahmadinejad’s opponents, said the parliament won’t allow him to quickly end the remaining subsidies because it would cause wild inflation and public dissatisfaction.

(Reuters) – Iranian President Mahmoud Ahmadinejad, now out of favor with Supreme Leader Ayatollah Ali Khamenei, suffered more setbacks in a run-off parliamentary election seen as a pointer for next year’s presidential race, results showed on Saturday.

The authorities hailed the outcome as a resounding triumph for Iran as it prepares for nuclear negotiations with the West.

Results announced by the Interior Ministry showed the United Principalist Front, closely linked with Khamenei and critical of Ahmadinejad, leading Friday’s vote, but with the hardline Resistance Front of the Islamic Revolution close behind.

The allegiance of the Resistance Front is tricky to fathom. It also backs Khamenei, but some members have served under Ahmadinejad. Some still support the president, others dislike his chief of staff, accused of trying to undermine Iran’s theocratic system.

At the heart of this election were Iran’s nuclear energy program and continued subsidies for food and energy which have been cut, and along with Western sanctions, have resulted in drastic increases in the price of gas and bread:

“The vote is support for the ruling system as it faces the U.S. and its allies over the nuclear program … The vote also means that tensions will increase between Ahmadinejad and his opponents in the incoming parliament,” political analyst Ali Reza Khamesian said.

Khamesian said Ahmadinejad was gradually fading from Iran’s political scene but could still stir up conflict with parliament.

“Ahmadinejad is the losing party. So, he will try to create tensions in the hope of getting concessions,” he said.

The outgoing parliament and Ahmadinejad are at loggerheads over how quickly to slash food and energy subsidies. The president favors dramatic cuts to boost Iran’s ailing economy by reducing the massive drain on the state budget from the subsidies.

The government implemented a first phase of slashing subsidies in December 2010. Gasoline prices quadrupled and bread prices tripled after the cuts came into effect. Prices have also increased in recent months, partly as a result of sanctions over Iran’s nuclear program, as well as news that the government is considering ending subsidies altogether.

Parliamentary speaker Ali Larijani, one of Ahmadinejad’s opponents, said the parliament won’t allow him to quickly end the remaining subsidies because it would cause wild inflation and public dissatisfaction.

It’s difficult to tell how this will effect talks about Iran’s nuclear energy program but it will hopefully cool the the saber rattling rhetoric, letting saner voices prevail. We can hope.

V.P. Biden Supports Gay Marriage, WH Walks It Back

Cross posted from The Stars Hollow Gazette

This morning on “Meet the Press“, Vice President Joe Biden had heads literally spinning when he gave his unequivocal endorsement for same sex marriage. Within minutes in the White House press room heads exploded and the walk back began.

GREGORY: Have your views evolved?

BIDEN: The good news is that as more and more Americans come to understand what this is all about is a simple proposition. Who do you love? Who do you love and will you be loyal to the person you love? And that’s what people are finding out what all marriages at their root are about. Whether they are marriages of lesbians or gay men or heterosexuals. […]

GREGORY: You’re comfortable with same-sex marriage now?

BIDEN: Look, I am Vice President of the United States of America. The president sets the policy. I am absolutely comfortable with the fact that men marrying men, women marrying women and heterosexual men marrying women are entitled to the same exact rights. All the civil rights, all the civil liberties. And quite frankly I don’t see much of a distinction beyond that. […] I think Will & Grace probably did more to educate the American public than almost anything anybody has done so far. People fear that is different and now they’re beginning to understand.

h/t Think Progress

Not quite, David. President Obama has yet to say he endorses same sex marriage. Civil Unions, yes; Marriage, no.

What Pam Spaulding said:

Biden’s comments are interesting in that they represent the President’s exact view – that gay and lesbian couples deserve the same civil rights, save the whole bit about the word “marriage.” Talk about threading the political needle.

What John Aravosis said:

Wrong.  Biden talked about the marriages of gays and lesbians being the same as heterosexual marriages.  And Axelrod’s attempt to back away from what the White House apparently sees as the radioactive nature of our civil rights is patently offensive.

François Hollande Est le Président de France

Cross posted from The Stars Hollow Gazette

“Europe is watching us, I am sure that when the result was announced, in many European countries there was relief, hope and the notion that finally austerity can no longer be the only option.

“And this is the mission that is now mine — to give the European project a dimension of growth, employment, prosperity, in short, a future. This is what I will say as soon as possible to our European partners and first of all to Germany, in the name of the friendship that links us and in the name of our shared responsibility.”

“We are not just any country on the planet, just any nation in the world, we are France.”

~François Hollande, President-elect of France~

François Hollande is the new President of France defeating Nicholas Sarkozy. With half the votes counted, M. Hollande won a narrow victory with 50.8% to Sarkozy’s 49.2%, as per the French Interior minister. According to exit polls, the vote is closer to 52% for M. Hollande.

Crowds roared at the center-left candidate’s campaign headquarters as the exit poll results came out Sunday evening.

“Many people have been waiting for this moment for many long years. Others, younger, have never known such a time. … I am proud to be capable to bring about hope again,” Hollande said in his victory speech.

Celebratory car horns blared along the Champs-Elysees in Paris.

“It’s a great night, full of joy for so many young people all across the country,” said Thierry Marchal-Beck, president of the Movement of Young Socialists.

Hollande will be the nation’s first left-wing president since Francois Mitterrand left office in 1995.

His victory and the elections in Greece and Germany are sending economic shock waves through Europe:

François Hollande’s election threw down the gauntlet to Angela Merkel, the German Chancellor, who has railroaded the eurozone into agreeing a new “fiskalpakt” treaty enshrining Germany’s austerity doctrine.

The economic doctrine of austerity, to cut the burden of state spending to free up the economy, has ruled supreme with the support all of Europe’s leaders, the European Union and financial markets.

But political leaders were on Sunday night conceding the consensus had been shattered beyond repair.

With Europe’s economies plunging further into recession and as unemployment in the eurozone breaks record levels, voters demands for a new approach had finally become to great to ignore.

The popular backlash to EU imposed austerity to the centrist New Democracy and Socialist parties in Greece threatens the existence of the euro itself.

While in Germany, Chancellor Merkel was sent a message from German voters:

Exit polls by German broadcaster ARD put Mrs Merkel’s Christian Democrats at 30.5 per cent, just one per cent more than the left-wing Social Democrats.

But the Free Democrats, Mrs Merkel’s ailing coalition ally, scored a lowly 8.5 per cent, meaning that the coalition that has ruled the rural state on the Danish border since 2009 faces the prospect of being unseated.

Experts predict that the Social Democrats will try to cobble a coalition together with the Greens, the third biggest party, in order to take control of the state. [..]

While the Free Democrats appears to have avoided the humiliation of being wiped out all together in Schleswig-Holstein the continuing unpopularity of the party could force Mrs Merkel to search for a new coalition partner come next year’s federal elections.

I don’t think this is a surprise to most Europeans. It should be a clear message to the leaders of countries who are considering only austerity measures as a solution to debt.

The French Presidential Election 2012: A Pause Before the Vote

Cross posted from The Stars Hollow Gazette

The French Presidential election will take place this Sunday, May 6. Meanwhile, the campaigning has ended Friday evening with the Socialist challenger, François Hollande, still predicted to defeat current President Nicholas Sarkozy:

The last Ipsos poll for French television and Le Monde puts Hollande on 52.5% with Sarkozy closing the gap but still behind on 47.5%. The poll was taken before the dramatic decision by centrist François Bayrou to throw his weight behind Hollande in the second round.

The vast majority of voters appear to have made up their minds, with 92% saying they know who they will vote for, and 82% saying they will definitely turn out.

Many are seeing this as not just a referendum about Sarkoszy’s “hyperactive” style but the start of a revolt against austerity which many now believe has slowed the recovery from the recession. Wolfgang Münchau wrote in the Financial Times that Hollande is start of progressive insurrection:

Nicolas Sarkozy does not look like a president, talk like a president, or act like a president. But there is a better reason why he deserves to be ejected. He won the 2007 campaign with a promise of ambitious economic reforms. He was one of the few European politicians with a mandate for big changes. He flunked it for a reason that already became apparent during the 2007 campaign: he was hyperactive. Reforms are for boring politicians. [..]

The main reason why I look forward to a Hollande presidency is for its impact on Europe. At present, all the large, and many of the small, eurozone countries are governed by centre-right governments. Angela Merkel is their undisputed queen. Mr Hollande is not going to be a comfortable partner. On some issues, such as the fiscal pact, he will challenge her outright.

I would welcome a Hollande presidency on the grounds that it would introduce a much needed shift in the toxic narrative about the eurozone crisis and its resolution. According to this narrative, the crisis was caused by fiscal irresponsibility. Its prescription is austerity and economic reforms. The tool to achieve the former is the fiscal pact, which Mr Hollande has said he will not sign unless it is complemented by policies to boost economic growth.

I wish that Mr Hollande would go further because austerity will snare countries in a low-growth trap. No set of structural policies will change this. I understand the political reason why he does not want to go further. He does not want his presidency to start with an existential fight with Germany – and the dreaded prospect of another panic attack by global investors.

While, as Paul Krugman as noted, the prospect of a Hollande presidency has generated some “hysteria” in the financial world:

Today’s FT is all Hollande, all the time. Some of it is sensible; some of it is like, well, this piece by Josef Joffe, which declares that Hollande’s likely victory is “a bleak prospect for all but new Keynesians and old socialists.” [..]

Joffe is, however, useful as a guide to the German view, which is basically that we got ourselves competitive and restored growth, so why can’t everyone else. Somehow he never mentions that Germany’s recovery in the 2000s was driven by a huge move into trade surplus; is everyone supposed to do the same thing, all at once? What’s the Germany for “fallacy of composition”?

The voting ends at 8 PM Paris time and the results will be reported here Sunday afternoon around 2 PM EDT.

Obesity: America’s Costliest Disease

Obesity has been on the rise in the United States for years and it has now become America’s costliest disease:

U.S. hospitals are ripping out wall-mounted toilets and replacing them with floor models to better support obese patients. The Federal Transit Administration wants buses to be tested for the impact of heavier riders on steering and braking. Cars are burning nearly a billion gallons of gasoline more a year than if passengers weighed what they did in 1960.

[..] The startling economic costs of obesity, often borne by the non-obese, could become the epidemic’s second-hand smoke. Only when scientists discovered that nonsmokers were developing lung cancer and other diseases from breathing smoke-filled air did policymakers get serious about fighting the habit, in particular by establishing nonsmoking zones. The costs that smoking added to Medicaid also spurred action. Now, as economists put a price tag on sky-high body mass indexes (BMIs), policymakers as well as the private sector are mobilizing to find solutions to the obesity epidemic.

[..] The U.S. health care reform law of 2010 allows employers to charge obese workers 30 percent to 50 percent more for health insurance if they decline to participate in a qualified wellness program. The law also includes carrots and celery sticks, so to speak, to persuade Medicare and Medicaid enrollees to see a primary care physician about losing weight, and funds community demonstration programs for weight loss.

[..] Because obesity raises the risk of a host of medical conditions, from heart disease to chronic pain, the obese are absent from work more often than people of healthy weight.

[..] The medical costs of obesity have long been the focus of health economists. A just-published analysis finds that it raises those costs more than thought.

[..] For years researchers suspected that the higher medical costs of obesity might be offset by the possibility that the obese would die young, and thus never rack up spending for nursing homes, Alzheimer’s care, and other pricey items.

There is a bright side to being obese:

An obese man is 64 percent less likely to be arrested for a crime than a healthy man. Researchers have yet to run the numbers on what that might save.

And it’s not just adults.

Today’s Kids May Be Destined for Adult Heart Disease

Solution lies in instilling healthy habits, not adding medication, experts say

An array of factors has been deemed key to a healthy heart by the American Heart Association, including maintaining a healthy weight, being physically active on a regular basis, eating a healthy diet, not smoking and keeping blood pressure, cholesterol and glucose levels normal.

But half of U.S. kids meet just four or fewer of these health criteria, according to a report, Heart Disease and Stroke Statistics — 2012 Update, which was published in Circulation.

And, among those in high school, 30 percent of girls and 17 percent of boys do not get the recommended 60 minutes a day of physical activity, the report noted.

In addition, a report from the U.S. Centers for Disease Control and Prevention found that one in five children had abnormal cholesterol levels, which prompted the American Academy of Pediatrics to issue new guidelines recommending that all children 9 to 11 years old be screened for high cholesterol levels.

“I love starting my day with a breakfast burrito.”

Photobucket

Reena Rose Sibayan/The Jersey Journal

h/t watertiger at Dependable Renegade

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