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Foolish Naivete: Sen. Coburn 'Believes' Obama


Written By : Warner Todd Huston

Republican Senator Tom Coburn has just completed his transformation into a laughing stock. In an interview with the Washington Post’s Ezra Klein, Coburn claimed that he fully believes that President Obama will become an “entitlement reformer” in his second term.

At the end of Klein’s first part of the interview he asks Coburn if Republicans will do any better to “compromise” with Obama if Obama wins a second term. Here is Coburn’s absurd reply:

We’ve had conversations where he’s told me he’ll go much further than anyone believes he’ll go to solve the entitlement problem if he can get the compromise. And I believe him. I believe he would.

This is the single dumbest thing I’ve ever seen a Republican say. The naivete and stupidity of this naïf is the most gobsmackingly stupid I’ve ever seen.

Obama a “reformer”? If Coburn really does believe this he reveals a startling lack of good sense. Obama has made an entire career out of gladhanding his opponents and in private one-on-one talks telling them exactly what they want to hear. He is soothing, assuring, even tempered. And he always, always lies through his teeth.

Even when he was in the Illinois Senate he did this. He’d seems so reasonable and good natured in his interactions. He always seemed to be willing to compromise. And in every vote he’d vote the hard-line, left-wing way.

Obama is not a compromiser but he is a hard-line leftist, a big government guy. The thought that he’ll do anything to reform entitlements, the supporting pillar of the Democrat Party, is absurd. If anything he’ll look to keep the status quo, but he is more likely to want to enlarge such programs.

Further, President Obama has shown not a single sign that he’s interested in any actual reform of practically anything much less entitlements. He’s a government hog, not a reformer.

Lastly, you must realize that once re-elected, Obama will have even less reason to compromise with Republicans. He’ll be wholly unbounded by the need to cater to voters and will use his second term for “legacy” issues, items that he wants to push forward at all costs – costs that won’t include worrying about voters.

That Coburn “believes” in Obama calls the Senator’s intelligence, maybe even his sanity, seriously into question.

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Article source: http://rightwingnews.com/democrats/foolish-naivete-sen-coburn-believes-obama-will-become-entitlement-reformer-in-2nd-term/

Morning Joe blog-3 | Acupuncture Online School

The outcome of this pivotal primary will probably set the tone of the race for weeks to come, But Newt Gingrich and Mitt Romney chose to waste their time — as their super PACs spent vast amounts on smear campaigns — with awful ads and avoiding real voter concerns. Floridians cited the home market, Things, And housing home as their main concerns, Issues that resonate a fair distance. and, Regarding exploring solutions, Gingrich drilled Romney for vetoing funding for kosher meals while he was governor of ma, A see-thorugh ploy to woo Florida substantial Jewish community. Meanwhile anywhere, Romney stopped by a retirement community to engage in some good ol fashioned implying that obama is a threat to Medicare and Social Security programs. Scarborough the tactic / Country is going bankrupt and Romney is hoping scare seniors, He explained. Is an extremely shameful demagoguery I seen on the campaign trail this year. or Romney followed up his stump speech if we do surprise: Music and humming “America the attractive, Read on this entry.
Must view Op-Eds for tues, Economy is shown 31, 2012By early morning hours Joe Staff – Tue january 31, 2012 8:12 AM ESTREPUBLICANS HAVE ONLY them TO BLAMEBY RICHARD COHENWASHINGTON POST
It is entirely right type of that last week GOP debates fell between Stars and Pickers in the 10 most-Watched cable programs. They are sheer activities having little to do with us and our problems. The Republican Party has veered so far from reality that Gingrich is lambasting Romney as an average.. Romney, Who has all but collapsed his rib cage to conform to traditional dogma, Must be bewildered. Others have prudently stayed out from the race. The Republican store that has now risen up to smite the bratty Gingrich has only itself to blame. For too long it has been mute facing a belligerent anti-Intellectualism, Pretending that experience and knowledge do not matter and that Washington is a condition and not a mere city. The recommendation of Gingrich by Cain was not a bulletin. Definitely a feeble blip on a scope. People want to know why does Mitt Romney close his campaign in Florida by singing the attractive instead of telling us what he going to do for America the attractive? Voters aren’t stupid; They demand substance. And if you don make it for them, They going to make you pay once time had passed.
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Morning head lines: Sunday, The month of jan 31By Drew Katchen – Tue january 31, 2012 5:56 AM ESTHere’s a glance at the stories we’re following right now. All three are idaho bands, But Black Dice pointed in the ’90s in Providence, Rhode area. Several of folks ate at the buffet before it closed up shop for the night and the booze came out. But after I won the primary the actual moderate woman he anointed, There he was in Florida looking supremely bored and a little put out that he was having to view another politician speech,
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Scarborough: GOP restaurant just wants to win; Conservatives yearn to win the countryBy Morning Joe Staff – wednesday Jan 30, 2012 10:41 AM ESTA new NBC News/Marist poll shows Mitt Romney gaining a good lead in Florida, But Joe Scarborough discusses why he thinks Romney is still having trouble convincing conservatives he’s the candidate they must be supporting.
Dude Scarborough: Conservatives much at all as i am, Mitt not closing the deal by fighting Newt. Mitt not closing the deal by reciting the words to the attractive. Mitt not going to get my vote in the primary if Mitt doesn start fighting for something conservatives feel betrayed by the Republican organization are we going to rush into the arms of Mitt Romney when we afraid we may get four more years of big government conservatism? Because the Republican corporation, They don mind that because they need to win. We really need to win the country. Class=”Grape vine-l w-Content_MiniToolbox,PermalinkLeave a little
Must examine Op-Eds for sunday, The month of jan 30, 2012By working day Joe Staff – wednesday Jan 30, 2012 10:07 AM EST TAX AND actual facts IN NUMBERSBY ROBERT J. SAMUELSONWASHINGTON contribution
Other things that are they are, The major-Rich have now become politics props.. Appropriate, The legislature should pass the Tax.. First off, Don imaginary, As barack the federal government does, That challenging the ultra-Rich would solve the deficit difficult.. Really, Raise tax rates on Warren Buffett among others to upper-Standard-Class qualities. But notice that the anti-Wealthy populist rhetoric is mostly politics expediency. It distracts from start issues the country faces creating jobs and closing long-Term budget loss. The anti–Rich backlash keeps growing; A Pew poll finds 66 percent of Americans see fights between rich and poor, Up from 47 proportion in 2009. Well previously that posting, Our dear friend Lauren Skowronski posted an image of Allen with Billionz and Drill (if it is not the title of an album or a buddy film waiting to happen, I’m not sure what is.)The Miami Herald was in that respect; They wrote to fix it. Trent Allen PoliticoExecutive manufacturer Alex Korson perches on a booth PermalinkLeave a comment
Morning days news: Wednesday, Thinking about receiving 30By Drew Katchen – friday Jan 30, 2012 5:51 AM ESTHere’s a think about the stories we’re following right now. What are you reading today?In louisiana, Romney’s business enterprise seems to trump Gingrich’s crowdsNewt Gingrich’s long marchNBC/Marist poll: Romney up 15 over Gingrich in FloridaAnother poll shows Romney holds big lead over Gingrich in FloridaAnd a new PPP poll shows Romney’s leadSantorum resumes push as girl, 3, ImprovesOccupy Oakland arrests top 400 after unstable dayFamily found guilty in honor killing trial’The Help’ earns top honor at SAG Awards10 die in horrific I-75 crashMarshall’s machine day carries AFC in Pro Bowl
Barack obama and Secretary Duncan address college affordabilityBy Traci G. Shelter – Fri january 27, 2012 2:01 PM ESTBefore a lively crowd today at the University of Michigan, Barack obama laid out his plans to keep college affordable for all students. The type of “move-Like ambiance” Saw somewhere around 4,000 people come out to hear the leader talk, In NBC’s Shawna Thomas, Who had previously been in Ann Arbor for the speech. The President discussed the need for colleges to recognize the significance of keeping tuition costs low, Mentioning a “Great a good a degree” As purpose he and First Lady Michelle Obama achieved their successes. Inside the given proposal, Colleges that act responsibly in lowering the cost of tuition and help more students of all economic backgrounds graduate will receive more federal support,You can’t just assume you can jack up tuition from year to year, President barak said, Referring to colleges that continue to raise costs every year as a response to states that consistently cut degree funding. 30, And tues, January. Or it may be, truly, Majority of Galileo lies there. Around 1737, As his body was being transferred from where it had been secretly kept (ecclesiastical authorities for years would not permit its interment in a consecrated church) to the monument in Santa Croce, A grouping of admirers removed one of Galileo vertebrae, One his teeth, And three of his hands and finger. The vertebra especially, The fifth lumbar vertebra is today preserved at a school of medicine in Padua. One of the fingers is actually on display in a glass orb at a science museum in Florence that was renovated and in 2010 rechristened the Museo Galileo. The rest of the body parts a thumb, The index finger of the perfect hand, And an upper left premolar were missing for over a hundred years. Perhaps the response should be that other men of science have at least now been able to try him.

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New Report Confirms Biggest Threat to Medicare & Social Security

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Article source: http://www.speaker.gov/press-release/new-report-confirms-biggest-threat-medicare-social-security-status-quo

Meet Pete Peterson, Architect of Social Security and Medicare Cuts

Click for a larger idea of Peterson’s worldJust after the disastrous midterms in 2010, I wrote a lengthy post about who Pete Peterson was, and why he is exactly the wrong guy to be having a “bipartisan summit” on so-called “entitlement reform.” Here’s a snippet from back then:

The Peter G. Peterson foundation claims to be bipartisan, yet their former CEO is out pimping a book, a new advocacy group and a position. Peter G. Peterson served as Secretary of Commerceunder Richard Nixon. He claims to be very, very, very concerned about our deficit, yet not one word is uttered in this report about Wall Street’s contribution to the deficit, the collapse of our economy, or any responsibility on the part of the financial industry to help reduce the deficit they helped create.

Ryan Grim at the Huffington Post has updated that information with some more current relevant facts and data:

According to a review of tax documents from 2007 through 2011, Peterson has personally contributed at least $458 million to the Peter G. Peterson Foundation to cast Social Security, Medicare, Medicaid and government spending as in a state of crisis, in desperate need of dramatic cuts. Peterson’s millions have done next to nothing to change public opinion: In survey after survey, Americans reject the idea of cutting Social Security and Medicare. A recent national tour organized by AmericaSpeaks and largely funded by the Peter G. Peterson Foundation was met by audiences who rebuffed his proposals.

But Peterson has been able to drive a major shift in elite consensus about government spending, with talk of “grand bargains” that would slash entitlements, cut corporate tax rates and end personal tax breaks, such as the mortgage deduction, that benefit the middle class.

Peterson’s deficit hawkery drives the narrative away from fairness right into the arms of willing Republicans. So this week, he held a “summit” of Washington elites to pearl-clutch over the deficit and debt in order to bolster their case. We can thank Bill Clinton for contributing to that narrative, too, since he was one of the featured speakers. The entire interview is at the end of this post.

Thanks to Peter Peterson, we have a country full of people who actually believe the national debt is the single biggest issue this country faces, and because he’s put a “bipartisan” face on the dialogue, he gives the appearance that Democrats and Republicans alike should abandon Social Security and Medicare because they are, in his opinion, the primary drivers of the deficit. Worse yet, he’s pimping those ideas to kids in order to drive a wedge between generations in the hope of succeeding at eroding these fundamental safety nets.

Another effort to persuade America’s youth about the shakiness of the entitlement programs is a joint venture between the Peterson Foundation and mtvU, the campus-based network created by MTV Networks, called Indebted. Peterson has already shelled out nearly $2 million to fund this effort to convince college students that Social Security won’t be there for them, so therefore it should be slashed now — a self-fulfilling policy prescription if ever there was one.

The educational website for Indebted, which borrows its look of revolutionary activism from contemporary stencil-based art made famous by graffiti artists Banksy and Shepard Fairey, explains that the inevitable and unavoidable debt burden to be shouldered by college kids through student loans, credits cards and a poor job market make it all the more important to cut entitlements now.

I like Seth Michaels’ answer to that over at Working America:

Peterson—a billionaire—never has to worry about dignity in retirement, about choosing between food and medicine, about having to work even when your health won’t allow it. Nor do members of Congress with their taxpayer-funded pensions, or well-paid TV hosts, lobbyists and think-tank presidents. They also feel the pressure of paying into the system much less than the majority of working people, since they only pay Social Security tax on the first $110,100 of their income.

So here’s a modest proposal for Peterson and the networks that advance his message. You can raise the retirement age to whatever you want—as long as, at age 65, every think-tanker, pundit and politician who pushes the fake crisis gets to swap places with a 65-year-old nurse, truck driver, hotel housekeeper or drill-press operator. Sound good?

Better yet, any lawmaker who thinks it’s a good idea to raise the Social Security retirement age and erode Medicare should agree to relinquish their federal pension and health insurance retroactive to the day they take office. If they can’t do that, then they recuse themselves from any vote concerning Medicare or Social Security. Seems like a fair deal to me.

Article source: http://crooksandliars.com/karoli/meet-pete-peterson-architect-social-securit

Didn't Boehner learn anything in 2011?

He’s the biggest sensation in the U.K. since Susan Boyle. He trounced the competition in winning the big prize on “Britain’s Got Talent.” And he accepted his $500,000 pound award – on all fours!

Meet Pudsey, the border collie, bichon frise and Chinese crested cross mix – aka “mutt” – who wowed the judges and took Britain by storm with an amazing display of walking on his hind legs, jumping through hoops and even dancing the Charleston.

That’s the difference between a dog and House Republicans. You can teach a dog tricks. Apparently, you can’t teach a House Republican anything. They just can’t seem to learn.

We discovered this with Paul Ryan’s budget, for example. Last year, all but four House Republicans voted for the Ryan plan to end Medicare and Medicaid as they now exist and slash programs for the poor, while expanding tax cuts for the rich. His plan never got off the ground, but it still turned out to be a political disaster.

Newt Gingrich dismissed it as “right-wing social engineering.” And, once back home in their districts, Republicans were so clobbered by outraged constituents anxious about losing Medicare and Medicaid that they returned to Washington and practically disowned the Ryan plan. You’d think they’d have learned their lesson. But oh, no. This year Republicans turned around and adopted almost the very same plan, only worse. And Mitt Romney immediately praised the Ryan budget as a “bold step toward putting our nation back on the track to fiscal sanity.” He even called it “marvelous.”

And now, led by Speaker John Boehner, Republicans are displaying the same ignorance – and arrogance – on the debt ceiling. Who can forget last year’s debacle? Even though raising the debt ceiling so the United States can pay its bills was never before a partisan issue – Ronald Reagan did it 18 times; George W. Bush, seven times – House Republicans refused to allow another increase without corresponding spending cuts to domestic programs.

Join WND’s Joseph Farah in holding GOP members of Congress accountable. Demand that the federal government stop borrowing – No More Red Ink!

For Republicans, this proved to be another public-relations disaster. Experts predicted economic collapse. Credit agencies warned the United States would lose its top rating. The markets tanked. Crisis was only avoided when both sides agreed to the creation of a super committee. But that failed, too, when Republicans on the committee refused to accept any increase in revenues. At which point, as agreed, the “sequester” kicked in, requiring $1.2 trillion in cuts split evenly between defense and domestic programs. But now Republicans are trying to break that deal, too, by sparing the Pentagon and taking all cuts out of Head Start, food stamps and health care.

Once again, following such abject failure, you’d think Republicans would have learned something. But, oh no. Speaker Boehner is now throwing the same temper tantrum. This week, he told the Peter G. Peterson Foundation’s 2012 Fiscal Summit: “When the time comes, I will again insist on my simple principle of cuts and reforms greater than the debt limit increase.” In other words, Boehner is re-opening the debt brawl of last summer by threatening to shut down the government and hold the full faith and credit of the United States hostage to drastic new domestic (only) spending cuts – and, of course, another extension of the Bush tax cuts.

No matter how he tries to wrap it in fiscally responsible rhetoric, Boehner’s suddenly rigid stand on the deficit is nothing but pure politics. If not, why did the current four Republican leaders – John Boehner, Eric Cantor, Mitch McConnell and Jon Kyl – combine to vote for increases in the debt ceiling, with no strings attached, 19 times under President George W. Bush? Did they suddenly get religion when Barack Obama was elected? And, if it’s so sacrosanct, why does the Ryan budget itself include an increase of $5 trillion in the debt ceiling with no necessary corresponding cuts?

Clearly, Boehner’s just playing a political game with the debt ceiling. But it’s a dangerous game whose failure would have a devastating effect on the U.S. economy. Every government agency, every business, every family would face a much higher cost of borrowing. Thousands of businesses would fail, and unemployment would rise dramatically.

It’s irresponsible for Boehner to re-ignite last summer’s budget brawl. And political suicide. According to Gallup, after last year’s pitiful performance, Congress’ approval rating sank to a low of 10 percent. This year, Boehner seems determined to get it down to zero.

Article source: http://mobile.wnd.com/2012/05/didnt-boehner-learn-anything-in-2011/

Top 5 pants-on-fire claims about Medicare | Constitution Daily

Let’s just say they don’t call it “Mediscare” for nothing.

A screen grab from a DCCC commercial about Medicare featuring an elderly man mowing the lawn.

Consider this: According to a report released in May, for the first time Americans 45 and older compose a majority (51 percent, that is) of the voting-age population. When you factor in actual election turnout, nearly one out of two voters is 50 or older.

What this means is that Medicare has become a high-stakes issue in discussions about budget cutting, health care reform, and Election 2012. And while the target audience for campaign ads and other political rhetoric has become more mature, the content of said campaigning and rhetoric is anything but. Lest you miss out on the manipulative, truth-stretching, fear-mongering fun, take a look at this sampling of recent misleading claims about Medicare, culled from the rich archives of resources like Politifact and FactCheck.

5. Eliminating fraud is the only answer

The claim: Supporters of the health care reform law have argued that a majority of cost cutting could be resolved by simply rooting out fraud.

The fact-check: Although targeting fraud is a worthy goal, it’s no magic bullet. As explained by FactCheck: “The Congressional Budget Office estimated that 73 percent of the total $455 billion in Medicare savings over 10 years would come from two provisions: reductions in the scheduled increases in Medicare payments to hospitals and other providers, and a change in payments to Medicare Advantage plans to bring them in line with traditional fee-for-service Medicare.”

4. Medicare is going bankrupt

The claim: In a “Face the Nation” interview this April, Rep. Paul Ryan (R-WI) stated: “The problem is Medicare goes bankrupt in nine years unless we do something to save it. It won’t be there for future generations like my generation.” Similar claims were made in an ad in 2009.

The fact-check: Again, as explained by FactCheck: “The trust fund that primarily supports one part (Part A) of Medicare is projected to be exhausted come 2020, according to the Congressional Budget Office. The Social Security and Medicare Boards of Trustees said it might not actually happen until 2029. That still doesn’t mean the system will be ‘bankrupt,’ though.” In addition, funding for Medicare Parts B and D comes from a separate trust fund.

3. Republicans want to kill Medicare

The claim: A petition on the Web site of the Democratic Senatorial Campaign Committee begins: “The radical GOP has not given up on its drive to kill Medicare. Now, Senate Minority Leader Mitch McConnell is trying to tie the debt ceiling vote to ending Medicare.” Similarly, a TV spot claimed that “Republicans voted to end Medicare” (also: it may be the first time a pink feather boa was used in a political ad).

The fact-check: Fact-checking groups agree that the language used by the DSCC and in similar Democratic ads–that the Republicans plan to “kill Medicare”–is too strong. It would be more accurate to say that the GOP plan would end Medicare as we know it, or, even more precise, that their plan would dramatically change the structure of the program and would pass on more expenses to future Medicare recipients. (For a simple explanation of those changes, see this article.) The jury is out on whether McConnell (R-KY) is tying the debt ceiling vote to Medicare–in a “Meet the Press” interview, he declined to explain how the Ryan plan fits into negotiations about the debt.

2. Democrats want to kill Medicare

The claim: A TV ad by the National Republican Campaign Committee premiered last week, stating that “the media” has said the Democrats’ plan would “decimate Medicare.”

The fact-check: The ad took the phrase “decimate Medicare” from an editorial in Investor’s Business Daily, which said the Democrats “would decimate Medicare by default” because, according to the editorial, the party had no plan. In addition to the fact that the ad’s quote is taken out of context (as many “media” quotes are in political ads), as the Washington Post Fact Checker explained, “It is disingenuous for Republicans to claim that either a) there is no Democratic plan or b) the Democrats want to steer Medicare on a course toward bankruptcy.”

And finally, how could we not include…

1. Death panels!

The claim: In 2009, Sarah Palin wrote that seniors and the disabled “will have to stand in front of Obama’s ‘death panel’ so his bureaucrats can decide, based on a subjective judgment of their ‘level of productivity in society,’ whether they are worthy of health care.” This issue came up as recently as the GOP New Hampshire debate, when Rick Santorum stated this:

What President Obama — let me finish, please — what President Obama has done is he put in, in the Obamacare bill, the Independent Payment Advisory Board. Ladies and gentlemen, seniors, Medicare is going to be cut, starting in 2014, by the federal government, and it’s going to be rationing of care from the top down.

The fact-check: The law specifically says the board “shall not include any recommendation to ration health care.” Rather, the advisory board was, as explained by FactCheck, “created to identify and recommend ways to slow the growth of Medicare spending–which both parties agree needs to be done.”

Grain of truth

Sadly, both ends of the political spectrum are guilty of making shamelessly scurrilous statements about Medicare in attempts to score political points. And although the word scurrilous is really fun to say five times fast, it doesn’t translate into good governance. As one USA Today op-ed pointed out:

[S]ooner or later the destructive, self-serving tit for tat has to stop. Washington’s rising tab for health care is its single biggest fiscal problem. . . . Both [parties] need assurances from each other that they won’t be politically punished for unpopular actions needed to keep health care costs from driving the nation into a Greece-like debt crisis.

Want to sort through the clutter of claims about Medicare? Explore the actual text of the health care reform law here, or check out a user-friendly tutorial explaining reform and Medicare here.

Article source: http://blog.constitutioncenter.org/2011/06/top-5-pants-on-fire-claims-about-medicare/

Jesse Kelly Backed in New Ad by Citizens

The political arm of Citizens United will spend six figures to back Republican Jesse Kelly, becoming the latest outside group to wade into the special election to replace former Rep. Gabrielle Giffords (D-Ariz.).

The $100,000 television ad boosting Kelly and opposing Democrat Ron Barber will run in southern Arizona from May 16-25, the first week of early voting ahead of the June 12 special election.

The ad paints Kelly as a protector of Medicare and Barber, because of his support for President Obama’s healthcare reform, as a threat to Medicare’s future.

“ObamaCare hikes taxes, kills jobs, increases the deficit. Ron Barber won’t vote to repeal ObamaCare. But Jesse Kelly will,” says the narrator in the ad.


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Proposed Bill to Permanently Repeal SGR Formula & The Threat To

May 16, 2012

On May 9, 2012, a bipartisan bill was introduced to the U.S. House of Representatives that would permanently repeal the Sustainable Growth Rate (SGR) formula. The SGR formula was adopted by Congress in 1997 with the intention of preventing Medicare spending on physicians from exceeding the overall growth of the economy. Every year by March 1, the SGR is calculated and presented to the Medicare Payment Advisory Commission (MedPAC) for evaluation of cuts that need to be made to the Medicare Physician Fee Schedule. In turn, every year physicians push back against Congress, demanding that the drastic cuts be postponed. This back-and-forth proposal and push back escalated this year to the drastic threat of a 27% reduction in physician reimbursements. Fortunately, the “doc fix” went into effect in the eleventh hour, relieving physicians of this reduction – at least for this year. However, unless further legislation passes between now and then, the proposed reimbursement cut for January 1, 2013 looms above 30%.

The May 9th “Medicare Physician Payment Innovation Act,” proposed by U.S. Reps. Allyson Schwartz (D-PA) and Joe Heck, D.O. (R-NV), would permanently repeal the SGR formula and end the annual battle against drastic cuts. In lieu of the SGR formula, the bill proposes alternate reimbursement models that provide more predictable updates to the yearly reimbursement schedule.

The proposed bipartisan bill has garnered support from leaders in the medical community, including David L. Bronson, MD, FACP, President of the American College of Physicians: “We enthusiastically support this legislation. It not only addresses the continued threat of the SGR formula, it also addresses moving us beyond the fee-for-service payment model toward new models that better align payment with value.”

The full press release from the office of U.S. Representative Allyson Y. Schwartz can be viewed here.

Article source: http://www.healthcarebiller.com/2012/05/17/proposed-bill-to-permanently-repeal-sgr-formula-the-threat-to-medicare-physician-payments/

The TanMan, Weeper of the House John Boehner, threatens to take

For another, it’s Boehner’s only option in 2012. The Democrats, for once, have nothing but fiscal leverage. They’ve got the expiration of the Bush tax cuts, which all Republicans would hate and many Democrats would welcome. They’ve got the aforementioned spending trigger, which Republicans really have begun to fear for its cuts to defense spending. They can do nothing — or, more likely, offer Republicans a deal they can’t accept — and the resulting paralysis will swing fiscal policy far, far, far to the left. Threatening to default on the national debt is Boehner’s only piece of counter-leverage.

So of course Boehner will try and use the debt ceiling as leverage again. And again. And again. It’s pretty clear that, at this point, there’s no going back to the time when debt-ceiling increases came smoothly. If I were the market, I’d take the fact that the leader of one of the two parties has publicly said that he “welcomes” debt-ceiling showdowns as evidence that the United States is almost certain to default on its debt — if only temporarily — within the next decade or so.

The question is what, aside from complain, Democrats and the business community will do to stop him. Somehow, the debt ceiling needs to be taken off the table once and for all… (Bill Clinton, for instance, argued that Obama should invoke the Fourteenth Amendment — which says “the validity of the public debt of the United States … shall not be questioned” — to raise the debt ceiling unilaterally).

Ezra Klein continues in a later post, Boehner’s debt ceiling crisis would be so much worse than you think:

There’s some chance that House Speaker John Boehner’s threat to provoke another debt-ceiling crisis doesn’t much matter. If it does matter, it’s only because fiscal policy has already gone very, very wrong.

As Treasury Secretary Timothy Geithner said Tuesday, “we’re likely to hit the debt limit sometime before the end of the year, but Congress has given the executive branch a set of tools that buy them some time. And those tools will probably take us into the early part of 2013, thus separating somewhat the timing of the expiry of the tax cuts and the sequester with the ultimate need for Congress to act on the debt limit.”

In other words, the Bush tax cuts expire on Dec. 31. The automatic spending cuts begin on Dec. 31. The debt ceiling likely won’t come due till February, or perhaps even March. So the scenario in which we reach a debt ceiling showdown is a scenario in which the two parties have already failed to come to an agreement on spending and taxes.

That is to say, it’s a scenario in which we’ve already reached the fiscal cliff and fallen over the edge. It’s a scenario in which the Bush tax cuts have probably expired, and the spending cuts have probably begun. It’s a scenario in which the markets are already in some amount of turmoil, and the forecasters are already sharply warning that Congress is dragging the country into a double-dip recession. It’s a scenario in which the two parties are already under tremendous pressure, in which Washington has been in some sort of semi-crisis for months, and in which all the possible deals have already been tried and failed. (It’s also a scenario, incidentally, in which our projected deficits are much lower, because our expected tax revenues are so much higher.)

* * *

That’s not a scenario that looks like August 2011, when the debt ceiling was the only thing on the docket. It’s an economic crisis that looks more like September 2008, when Lehman was collapsing. And in that world, it’s so hard to predict the resulting financial chaos, public outrage, interest group pressure, and political terror that it’s almost impossible to say anything about how the crisis would be resolved, or who might benefit.

Article source: http://www.blogforarizona.com/blog/2012/05/the-tanman-weeper-of-the-house-john-boehner-threatens-to-take-america-hostage-again.html

Why is Paul Krugman Misrepresenting the Demise of a Wall Street

Paul Krugman’s partisanship has become so shameless that we are giving him the inaugural Eric Schneiderman Decoy Award for his post “Things Fall Apart“. The Schneiderman Decoy Award goes for exceptional achievement in turning one’s good name over to particularly rancid Obama Administration initiatives.

Krugman’s post didn’t merely contain some cringe-making fawning over Obama; it was egregiously incorrect on the development that prompted the post, that of the death of Americans Elect, a shadowy group that had was out to sponsor a Presidential candidate. It’s hard to believe that Krugman does not know the orientation and aims of this failed effort.

Tom Ferguson, a political scientist who is widely considered the top expert on money in American politics, called out Americans Elect in March as a group out promote a right-wing, anti-entitlement message as “centrist” (for the record, polls regularly show majority votes in favor of preserving Social Security and Medicare). He also deemed their effort to be dead on arrival:

Last year a group, Americans Elect, surfaced with a plan that strikingly resembled one of the schemes of 2008. The idea was for an independent presidential campaign with some characteristically twenty-first century features, notably a primary to be conducted over the internet probably late in the spring, 2012…

Americans Elect’s very expensive efforts to get on the ballot in all 50 states, though, sported some very traditional features. Though it staked out a rhetorical claim to the political center, it declined to reveal who was financing it. The few moneybags it acknowledged were hardly from the political center. Peter Ackerman, for example, who acknowledges helping to finance the start up, was formerly Director of Capital Markets at Drexel Burnham Lambert, the firm Michael Milken made famous. Together with a long record of involvement in various Republican foreign policy ventures, he has championed Social Security “reform” with organizations such as the Cato Institute. Though Americans Elect has somewhat broadened its board, Ackerman’s son Elliot is the outfit’s Chief Operating Officer. And in public the organization has focused overwhelmingly on one issue: the deficit, and the need to cut government spending.

That Bloomberg would be by far the group’s strongest candidate is no secret…With Bloomberg continuing to discourage speculation about an independent bid, talk recently turned to other candidates who might mount a campaign championing deficit reduction. David Walker, the former U.S. Comptroller General and past CEO of the Peter G. Peterson Foundation, the high aerie of deficit Superhawks, has been prominently mentioned. A recent press account had Walker holding a meeting to discuss Americans Elect with various tycoons and media moguls, including a News Corporation executive and Tina Brown.

A presidential campaign by Walker or anyone besides Bloomberg is basically a Mission Impossible.

Krugman instead, loudly, treats the centrist claims of the now-defunct Americans Elect as accurate:

And the center not only did not hold, it couldn’t seem to get any attention whatsoever. Americans Elect, a lavishly funded “centrist” group that was supposed to provide an alternative to traditional political parties, has been a ridiculous flop. Basically, about seven people were actually excited about the venture — all of them political pundits. Actual voters couldn’t care less…

So why Americans Elect? Because there exists in America a small class of professional centrists, whose stock in trade is denouncing the extremists in both parties and calling for a middle ground….

Americans Elect was created to appeal to this class of professional centrists — which meant that it was doomed to go nowhere.

And why does Krugman want us to believe this “centrist” organization was doomed? Not because it was a vehicle for deficit hawkery that would get traction only if Bloomberg took up its mission, but because all sensible real centrists will of course vote for Obama:

What went wrong? Well, there actually is a large constituency in America for a political leader who is willing to take responsible positions — to call for more investment in the nation’s education and infrastructure, to propose bringing down the long-run deficit through a combination of spending cuts and tax increases. And there is in fact a political leader ready and willing (maybe too willing) to play that role; his name is Barack Obama.

There is another sneaky bit in this. Notice Krugman’s endorsement of deficit reduction (at least in part) by spending cuts, rather than via increasing growth? And also keep in mind that when the private sector delevers, unless the country runs a trade surplus, the government sector has to run a deficit to accommodate the desire of households and businesses to save. Krugman hopefully knows better than this. So why is he now starting to talk what sounds like austerity lite?

The Dems are tying to put together a Grand Bargain once again. There is apparently a push to get a deal done before the election but the folks I consider credible don’t see that happening. There is a possibility that we hit the deficit ceiling pre-election, which each party is likely to use to scapegoat the other, but odds favor the Administration coming out the loser. So in addition to the usual Obama hagiography, Krugman is also seeding the idea that a deficit cutting deal would be a good move. It will be interesting to see what contortions Krugman goes through to rationalize unwarranted cuts in Social Security and the beginning of the dismantling of Medicare. Remember, had Obamacare addressed our real Medicare problem, that of escalating health care costs, we would not need to be talking about “reforming” it.

Krugman has taken some brave stands in the past, but this sort of shameless distortion of facts to make a case for Obama diminishes him, and won’t resonate with anyone other than Democrat loyalists. The sooner Krugman recognizes this fact and starts taking up more worthy causes, the better.

Article source: http://www.nakedcapitalism.com/2012/05/why-is-paul-krugman-misrepresenting-the-demise-of-a-wall-street-funded-right-wing-entitlement-bashing-front-group.html