Washington Post — Secret Program Fuels CIA-Congress Dispute
House members looking to back up Speaker Nancy Pelosi’s claim that the CIA routinely misleads Congress, but not back it up so much that there has to be an investigation, are plunging ahead with publicizing a secret plan for intelligence gathering that was never put into action. The goal is to show that even if there aren’t the sins of commission alleged by the speaker, there was at least a sin of omission. CIA Director Leon Panetta informed Democrats of the plan three weeks ago, but it’s taken that long for Democrats to realize how indignant they really were.
Writers Paul Kane and Ben Pershing explain how Republicans who knew about the plan were unconcerned and didn’t think it needed to be explained to Congress while Democrats are using the omission as another reason for a truth commission.
Whatever it was, the Speaker must sorely wish that her members would quit trying to help her.
“The former top Bush administration official rejected that view, saying that CIA officials kept nothing from Congress that should have been communicated.
President Obama has rejected calls from Democrats, led by Pelosi, to create a “truth commission” to investigate allegations of misconduct by Bush administration officials. The White House says such a body would foment a partisan battle.
Republicans have also opposed a commission but have supported an investigation by a special House panel to examine Pelosi’s claims in May that CIA officials misled her about interrogations. They have accused the speaker of demeaning the nation’s spies.”
New York Times — Democrats Are at Odds on Financing Health Care
One trillion dollars is an awful lot of money, and as writer David Herszenhorn points out the members of Congress have no idea where to get it. The latest piece added to the puzzle is a 2 percent tax on incomes of $250,000 and over, plus a reduction in the charitable deduction rates. And while it’s true that adding an extra increase on top of the rate hike already in the works for major earners will prove very controversial, the real issue is that there is still no substantial agreement on what the plan will include and how much it will really cost.
As Examiner colleague Susan Ferrechio points out today there is no agreement on whether to have a government-run plan or some form of a co-operative or a government plan that would only be triggered by high prices. Will the plan cover abortions? Will the plan cover illegal immigrants? Some would, most wouldn’t. The Congressional Budget Office will be releasing the cost estimates on another round of coverage proposals, which will probably be closer to $2 trillion than $1 trillion.
What’s useful about Herszenhorn’s piece, though, is that there will be little stomach for raising the taxes necessary to pay for a big plan, adding steam to senators looking for a less-expensive compromise.
Fear of the House plan and House taxes may reignite the support for a compromise plan being worked up by Sen. Max Baucus or just kill the idea of health care legislation altogether.
“Lawmakers taking part in the Senate negotiations said Republicans and several moderate Democrats would oppose an income tax surcharge on the wealthy.
Senator Charles E. Grassley of Iowa, the senior Republican on the Finance Committee, called the surtax “non-negotiable.” And Senator Olympia J. Snowe, Republican of Maine, who is also on the Finance Committee, said it was among the “less viable” options under consideration.
Mr. Baucus said lawmakers had redoubled efforts to find additional savings to help pay for the bill. ‘Senators don’t like to raise revenues,’ he said, using the favored euphemism for tax increases.”
New York Times — Kurds Defy Baghdad, Laying Claim to Land and Oil
Perhaps Vice President Biden will get his way after all. With the U.S. pulled back into desert bases as a kind of trial withdrawal from Iraq, the Kurds are making separatist noises.
Writer Sam Dagher actually quotes Biden denouncing the move by the Kurds in northern Iraq to seize control of their natural resources and sovereignty with a new constitution, but doesn’t point out that breaking Iraq into parts was the cornerstone of Biden’s foreign policy agenda when he was running for president.
“Prime Minister Nuri Kamal al-Maliki is already not on speaking terms with the Kurdish region’s president, Massoud Barzani. Iraqi political leaders have vociferously denounced the constitution as a step toward splintering Iraq.
“This lays the foundation for a separate state — it is not a constitution for a region,” said Osama al-Nujaifi, a Sunni Arab member of the national Parliament. “It is a declaration of hostile intent and confrontation. Of course it will lead to escalation.”
Kurdish officials defended their efforts to adopt a new constitution that defines the Kurdistan region as comprising their three provinces and also tries to add all of hotly contested and oil-rich Kirkuk Province, as well as other disputed areas in Nineveh and Diyala Provinces. Iraq’s federal Constitution allows the Kurds the right to their own constitution, referring any conflicts to Iraq’s highest court.”
Wall Street Journal – Official Warns of Threat To Fed’s Independence
President Obama wants the Federal Reserve to be the super regulator of the American economy, like a ‘roid-ripped FDIC that can oversee or take over any institution that could cause major fallout in failure.
And while Fed Chairman Ben Bernanke is going along with the plan as part of his bid for another term, writer Sudeep Reddy points out that the idea freaks out some careerists at the central bank. Aside from confusing the role of the entity charged with protecting the value of the dollar, the plan would give Congress new control over the apolitical Fed.
The bankers want the new authority, but no Congressional oversight in order to preserve their primary role. Congress is not interested in expanding powers to take over companies etc. without legislative oversight.
“Rep. Melvin Watt (D., N.C.), the subcommittee chairman, said lawmakers need “a clear handle on the extent to which the administration’s proposals could compromise or interfere with what the Fed already is charged to do.”
Fed officials maintain the new authority would simply alter the central bank’s approach to regulation but not greatly expand its power. They say Congress can oversee the Fed’s regulatory responsibilities while leaving it independent in monetary policy.
More than half the House has signed onto legislation that would allow the Government Accountability Office, the investigative arm of Congress, to audit all central bank operations. [Fed Vice Chairman Donald Kohn] said “GAO audits, or the threat of a GAO audit, could be used to try to influence monetary policy decisions.”
Washington Post — AIG Seeks Clearance For More Bonuses
The AIG furor that swept the nation in March seems so long ago now, but another round of payouts at the failed, quasi-nationalized, insurance company provides a piquant reminder of the first tremor that shook public confidence in Obamism and revealed that no one had any idea what all was in the stimulus bill.
Brady Dennis and David Cho explain that the company doesn’t need any approval from the new White House pay czar for the paltry $2.4 million in bonuses to be shared among 40 employees. Bt believing the president when he said he was the only thing between them “and the pitchforks” the surviving executives at AIG are looking for approval.
But it doesn’t really matter, because we now learn that AIG will be living off the taxpayers and our $180 billion for a long time.
“Separately this week, a Citigroup analyst warned that AIG might be worthless to shareholders if or when it ever pays back the billions it owes the U.S. government.
‘Our valuation includes a 70 percent chance that the equity at AIG is zero,’ Joshua Shanker of Citigroup wrote in a note to investors. He cites the continuing risks posed by the company’s exotic derivative contracts, called credit-default swaps, and its sale of assets at low prices. AIG’s stock plummeted by more than 25 percent yesterday.”
