Friday, June 18, 2010

Quote from Mort Zuckerman: World Sees Obama as Incompetent and Amateur

Original text By Mortimer B. Zuckerman
Posted June 18, 2010
The fact is that President Obama came into office as the heir to a great foreign policy legacy enjoyed by every recent U.S. president. Why? Because the United States stands on top of the power ladder, not necessarily as the dominant power, but certainly as the leading one. As such we are the sole nation capable of exercising global leadership on a whole range of international issues from security, trade, and climate to counter-terrorism. We also benefit from the fact that most countries distrust the United States far less than they distrust one another, so we uniquely have the power to build coalitions. As a result, most of the world still looks to Washington for help in their region and protection against potential regional threats.





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Yet, the Iraq war lingers; Afghanistan continues to be immersed in an endless cycle of tribalism, corruption, and Islamist resurgence; Guantánamo remains open; Iran sees how North Korea toys with Obama and continues its programs to develop nuclear weapons and missiles; Cuba spurns America's offers of a greater opening; and the Palestinians and Israelis find that it is U.S. policy positions that defer serious negotiations, the direct opposite of what the Obama administration hoped for.The reviews of Obama's performance have been disappointing. He has seemed uncomfortable in the role of leading other nations, and often seems to suggest there is nothing special about America's role in the world. The global community was puzzled over the pictures of Obama bowing to some of the world's leaders and surprised by his gratuitous criticisms of and apologies for America's foreign policy under the previous administration of George W. Bush. One Middle East authority, Fouad Ajami, pointed out that Obama seems unaware that it is bad form and even a great moral lapse to speak ill of one's own tribe while in the lands of others.



Even in Britain, for decades our closest ally, the talk in the press—supported by polls—is about the end of the "special relationship" with America. French President Nicolas Sarkozy openly criticized Obama for months, including a direct attack on his policies at the United Nations. Sarkozy cited the need to recognize the real world, not the virtual world, a clear reference to Obama's speech on nuclear weapons. When the French president is seen as tougher than the American president, you have to know that something is awry. Vladimir Putin of Russia has publicly scorned a number of Obama's visions. Relations with the Chinese leadership got off to a bad start with the president's poorly-organized visit to China, where his hosts treated him disdainfully and prevented him from speaking to a national television audience of the Chinese people. The Chinese behavior was unprecedented when compared to visits by other U.S. presidents.



Obama's policy on Afghanistan—supporting a surge in troops, but setting a date next year when they will begin to withdraw—not only gave a mixed signal, but provided an incentive for the Taliban just to wait us out. The withdrawal part of the policy was meant to satisfy a domestic constituency, but succeeded in upsetting all of our allies in the region. Further anxiety was provoked by Obama's severe public criticism of Afghan President Hamid Karzai and his coterie of family and friends for their lackluster leadership, followed by a reversal of sorts regarding the same leaders.



Obama clearly wishes to do good and means well. But he is one of those people who believe that the world was born with the word and exists by means of persuasion, such that there is no person or country that you cannot, by means of logical and moral argument, bring around to your side. He speaks as a teacher, as someone imparting values and generalities appropriate for a Sunday morning sermon, not as a tough-minded leader. He urges that things "must be done" and "should be done" and that "it is time" to do them. As the former president of the Council on Foreign Relations, Les Gelb, put it, there is "the impression that Obama might confuse speeches with policy." Another journalist put it differently when he described Obama as an "NPR [National Public Radio] president who gives wonderful speeches." In other words, he talks the talk but doesn't know how to walk the walk.The Obama presidency has so far been characterized by a well-intentioned but excessive belief in the power of rhetoric with too little appreciation of reality and loyalty.



In his Cairo speech about America and the Muslim world, Obama managed to sway Arab public opinion but was unable to budge any Arab leader. Even the king of Saudi Arabia, a country that depends on America for its survival, reacted with disappointment and dismay. Obama's meeting with the king was widely described as a disaster. This is but one example of an absence of the personal chemistry that characterized the relationships that Presidents Clinton and Bush had with world leaders. This is a serious matter because foreign policy entails an understanding of the personal and political circumstances of the leaders as well as the cultural and historical factors of the countries we deal with.



Les Gelb wrote of Obama, "He is so self-confident that he believes he can make decisions on the most complicated of issues after only hours of discussion." Strategic decisions go well beyond being smart, which Obama certainly is. They must be based on experience that discerns what works, what doesn't—and why. This requires experienced staffing, which Obama and his top appointees simply do not seem to have. Or as one Middle East commentator put it, "There are always two chess games going on. One is on the top of the table, the other is below the table. The latter is the one that counts, but the Americans don't know how to play that game."



Recent U.S. attempts to introduce more meaningful sanctions against Iran produced a U.N. resolution that is way less than the "crippling" sanctions the administration promised. The United States even failed to achieve the political benefit of a unanimous Security Council vote. Turkey, the Muslim anchor of NATO for almost 60 years, and Brazil, our largest ally in Latin America, voted against our resolution. Could it be that these long-standing U.S. allies, who gave cover to Mahmoud Ahmadinejad and Iran's nuclear ambitions, have decided that there is no cost in lining up with America's most serious enemies and no gain in lining up with this administration?



The end result is that a critical mass of influential people in world affairs who once held high hopes for the president have begun to wonder whether they misjudged the man. They are no longer dazzled by his rock star personality and there is a sense that there is something amateurish and even incompetent about how Obama is managing U.S. power. For example, Obama has asserted that America is not at war with the Muslim world. The problem is that parts of the Muslim world are at war with America and the West. Obama feels, fairly enough, that America must be contrite in its dealings with the Muslim world. But he has failed to address the religious intolerance, failing economies, tribalism, and gender apartheid that together contribute to jihadist extremism. This was startling and clear when he chose not to publicly support the Iranians who went to the streets in opposition to their oppressive government, based on a judgment that our support might be counterproductive. Yet, he reaches out instead to the likes of Bashar Assad of Syria, Iran's agent in the Arab world, sending our ambassador back to Syria even as it continues to rearm Hezbollah in Lebanon and expands its role in the Iran-Hezbollah-Hamas alliance.



The underlying issue is that the Arab world has different estimates on how to deal with an aggressive, expansionist Iran. The Arabs believe you do not deal with Iran with the open hand of a handshake but with the clenched fist of power. Arab leaders fear an Iran proceeding full steam with its nuclear weapons program on top of its programs to develop intermediate-range ballistic missiles. All the while centrifuges keep spinning in Iran, and Arab leaders ask whether Iran will be emboldened by what they interpret as American weakness and faltering willpower. They did not see Obama or his administration as understanding the region, where naiveté is interpreted as a weakness of character, as amateurism, and as proof of the absence of the tough stuff of which leaders are made. (That's why many Arab leaders were appalled at the decision to have a civilian trial of Khalid Sheikh Mohammed in New York. After 9/11, many of them had engaged in secret counterterrorism activities under the umbrella of an American promise that these activities would never be made public; now they feared that this would be the exact consequence of an open trial.)



America right now appears to be unreliable to traditional friends, compliant to rivals, and weak to enemies. One renowned Asian leader stated recently at a private dinner in the United States, "We in Asia are convinced that Obama is not strong enough to confront his opponents, but we fear that he is not strong enough to support his friends."



The United States for 60 years has met its responsibilities as the leader and the defender of the democracies of the free world. We have policed the sea lanes, protected the air and space domains, countered terrorism, responded to genocide, and been the bulwark against rogue states engaging in aggression. The world now senses, in the context of the erosion of America's economic power and the pressures of our budget deficits, that we will compress our commitments. But the world needs the vision, idealism, and strong leadership that America brings to international affairs. This can be done and must be done. But we are the only ones who can do it.

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Speaking Of That

Friday, May 28, 2010

Dow down 7.9% in May; Worst Since 1940

May 28 (Bloomberg) -- REPORTING: U.S. stocks slid, capping the worst May for the Dow Jones Industrial Average since 1940, while the euro slumped and Treasuries rose as a downgrade of Spain’s debt rating and escalating tensions on the Korean peninsula triggered a flight from riskier assets.





Today the Dow tumbled 122.36 points, that's 1.2 percent, to 10,136.63 at 4 p.m. in New York and lost 7.9 percent this month. The Standard & Poor’s 500 Index sank 1.2 percent to 1,089.41, led by financial shares on the Spanish downgrade and energy companies after U.S. President Barack Obama extended a moratorium on new deep-water drilling. Oil erased gains after rallying as much as 1.6 percent to more than $75 a barrel. Ten-year Treasury yields decreased 7 basis points to 3.3 percent. The euro slipped 0.7 percent to $1.2273.





Equities and commodities extended losses after Fitch Ratings stripped Spain of the AAA rating it’s held since 2003, saying the nation’s economic growth will slow as it attempts to cut its debts. Earlier losses followed disappointing U.S. economic data and a North Korean general’s warning of “all-out war” if any accidental clashes with South Korea break out.





“Spain’s downgrade just adds to more uncertainty,” said Quincy Krosby, chief market strategist for Newark, New Jersey- based Prudential Financial Inc., which oversees about $667 billion. “There are too many geopolitical events. We have a three-day weekend in the U.S., and traders will definitely want to lighten their books.”



‘All-Out War’

Losses in U.S. stocks widened earlier after North Korean Major General Pak Rim Su disputed the results of the international investigation that found his nation sank a South Korean warship. “Any accidental clash that may break out in the waters of the West Sea of Korea or in areas along the Demilitarized Zone will lead to all-out war,” he said, according to North Korea’s official news organization.



About 9.2 billion shares changed hands on all U.S. exchanges, 4 percent below the average for the year as trading slowed before the Memorial Day holiday.



“With volumes being as they are today ahead of the holiday weekend, there is not much in the way of conviction among traders,” said Mark Turner, head of U.S. sales trading at Instinet LLC, which handles about 4 percent of U.S. equity trading volume. “So any headline has the potential to move the market. And the situation in North Korea has especially been in our crosshairs.”



China’s Assurance

The retreat in the S&P 500 today came after the benchmark index rallied 3.3 percent yesterday as China assured investors it was committed to maintaining European investments even as a sovereign debt crisis rattles confidence in the region.



Benchmark indexes pared declines late in the day after Goldman Sachs Group Inc. strategist David Kostin raised his estimates for S&P 500 earnings to $78 a share for this year and $93 a share for 2011, up from $76 and $90, to reflect “strong” first quarter earnings and better-than-estimated profit margins.



The S&P 500 trimmed its advance for the week to 0.2 percent, while the MSCI World Index of shares in 24 developed nations rose 0.6 percent over the past five days. The U.S. gauge sank 8.2 percent in May and the global gauge lost 9.9 percent, the worst month since February 2009 for both and the biggest slide in May for the S&P 500 since 1962.



The Stoxx Europe 600 Index erased gains, dropping 0.3 percent today after rallying as much as 0.7 percent. The MSCI Asia Pacific Index climbed 1.5 percent.



Golf Balls, Scraps

BP Plc slid 5 percent in London after Europe’s second- largest oil company said procedures to plug a leaking well in the Gulf of Mexico may last another day or two. BP added rubber golf balls and scraps to the mud it was pumping into its leaking Gulf of Mexico oil well in an effort to stop the spill.

Baker Hughes Inc., Halliburton Co., Transocean Ltd. and Schlumberger Ltd. slumped at least 4.9 percent to help lead declines in U.S. energy shares.



Obama is suspending exploration in two areas off Alaska, canceling pending lease sales in the Gulf of Mexico and proposed sales off Virginia’s coast, extending by six months a moratorium on deepwater drilling permits and suspending operations at all 33 exploratory wells being drilled in the Gulf.



The gain in Treasuries extended the drop in 10-year yields this month to 36 basis points, the biggest monthly loss since December 2008, as government data showed consumer spending in the U.S. unexpectedly stalled, fueling speculation the economic recovery will be slow.

Lowest Since 2009



The benchmark note yield touched 3.06 percent on May 25, the lowest level since April 29, 2009. Its 17 basis point gain yesterday was the most since June.

A gauge of U.S. corporate credit risk climbed the most in 15 months in May as Europe’s sovereign debt crisis sparked concern that economic growth may slow, making it harder for companies to refinance.



The Markit CDX North America Investment Grade Index Series 14, which investors use to hedge against losses on corporate debt or to speculate on creditworthiness, increased 1.34 basis points today and 25.2 basis points this month to a mid-price of 117.17 basis points as of 4:19 p.m. in New York, according to Markit Group Ltd. The index, which typically falls as investor confidence improves and rises as it deteriorates, climbed the most since February 2009, according to CMA DataVision.





Credit markets faltered in May as corporate bond sales fell to the least in a decade amid speculation Greece and other nations in Europe won’t be able to meet their debt payments and as the dispute between North Korea and South Korea raised the risk of a broader conflict.



Crude oil for July delivery fell 58 cents, or 0.8 percent, to settle at $73.97 a barrel on the New York Mercantile Exchange. Oil’s 14 percent decline in May was the biggest monthly decrease since December 2008, when prices touched $32.40 a barrel.



Copper for July delivery lost 1.7 percent to $3.1045 a pound in New York. Gold futures rose in New York, capping a second straight monthly gain, on demand for an alternative to holding the euro. Gold for August delivery climbed 60 cents to $1,215 an ounce in New York.



To contact the reporters on this story: Rita Nazareth in New York at rnazareth@bloomberg.net; Elizabeth Stanton in New York at estanton@bloomberg.net.

Last Updated: May 28, 2010 16:48 EDT

Tuesday, May 25, 2010

Obama's Redistribution of wealth Victorious!

Edited from an Article written by: By Dennis Cauchon, of USA TODAY



The paychecks from private business shrank to their smallest share of personal income in U.S. history during the first quarter of this year, a USA TODAY analysis of government data finds.



Then, at the same time, government-provided benefits — from Social Security, unemployment insurance, food stamps and other programs — rose to a record high during the first three months of 2010. Presenting an unprecedented situation for the economy of the United States.



It's true that the records reflect a long-term trend accelerated by the recession and the federal stimulus program to counteract the downturn. The result is a major shift in the source of personal income from private wages to government programs.



The fact is, this trend is not sustainable, says University of Michigan economist Donald Grimes. Reason: The federal government depends on private wages to generate income taxes to pay for its ever-more-expensive programs. Government-generated income is taxed at lower rates or not at all, he says. "This is really important," Grimes says during the interview.



Let's face it, the recession has erased 8 million private jobs. Even before the downturn, private wages were eroding because of the substitution of health and pension benefits for taxable salaries. This new report is troubling.



Here are the facts: The Bureau of Economic Analysis reports that individuals received income from all sources — wages, investments, food stamps, etc. — at a $12.2 trillion annual rate in the first quarter.



Key shifts in income this year:



• Looking at Private wages. A record-low 41.9% of the nation's personal income came from private wages and salaries in the first quarter, down from 44.6% when the recession began in December 2007.



• Considering Government benefits. Individuals got 17.9% of their income from government programs in the first quarter, up from 14.2% when the recession started. Programs for the elderly, the poor and the unemployed all grew in cost and importance. An additional 9.8% of personal income was paid as wages to government employees.



Obviously the shift in income shows that the federal government's stimulus efforts have been effective, says Paul Van de Water, an economist at the liberal Center on Budget and Policy Priorities.



"It's the system working as it should," Van de Water says. Government is stimulating growth and helping people in need, he says. As the economy recovers, private wages will rebound, he says.



On the other hand, Economist Veronique de Rugy of the free-market Mercatus Center at George Mason University says the riots in Greece over cutting benefits to close a huge budget deficit are a warning about unsustainable income programs. While the government may be able to print money, it does not produce anything.



Economist David Henderson of the conservative Hoover Institution says a shift from private wages to government benefits saps the economy of dynamism. "People are paid for being rather than for producing," he says. In the meantime, government continues to grow and the private sector shrinks.

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Speaking Of That

Sunday, May 23, 2010

The gathering revolt against government spending

This just in from Michael Barone. Perhaps the country will wake up soon!



This month three members of Congress have been beaten in their bids for re-election -- a Republican senator from Utah, a Democratic congressman from West Virginia and a Republican-turned-Democrat senator from Pennsylvania. Their records and their curricula vitae are different. But they all have one thing in common: They are members of an Appropriations Committee.





Like most appropriators, they have based much of their careers on bringing money to their states and districts. There is an old saying on Capitol Hill that there are three parties -- Democrats, Republicans and appropriators. One reason that it has been hard to hold down government spending is that appropriators of both parties have an institutional and political interest in spending.



Their defeats are an indication that spending is not popular this year. So is the decision, shocking to many Democrats, of House Appropriations Committee Chairman David Obey to retire after a career of 41 years. Obey maintains that the vigorous campaign of a young Republican in his district didn't prompt his decision. But his retirement is evidence that, suddenly this year, pork is not kosher.



It has long been a maxim of political scientists that American voters are ideologically conservative and operationally liberal. That is another way of saying that they tend to oppose government spending in the abstract but tend to favor spending on particular programs. It's another explanation of why the culture of appropriators continued to thrive after the Republican takeover of Congress in 1994 and during the eight years of George W. Bush's presidency.



In the past rebellions against fiscal policy have concentrated on taxes rather than spending. In the 1970s, when inflation was pushing voters into higher tax brackets, tax revolts broke out in California and spread east. Ronald Reagan's tax cuts were popular, but spending cuts did not follow. Bill Clinton's tax increases led to the Republican takeover and to tax cuts at both the federal and state levels but spending boomed under George W. Bush.



The rebellion against the fiscal policies of the Obama Democrats, in contrast, is concentrated on spending. The Tea Party movement began with Rick Santelli's rant in February 2009, long before the scheduled expiration of the Bush tax cuts in January 2011.



What we are seeing is a spontaneous rush of previously inactive citizens into political activity, a movement symbolized but not limited to the Tea Party movement, in response to the vast increases in federal spending that began with the Troubled Asset Relief Program legislation in fall 2008 and accelerated with the Obama Democrats' stimulus package, budget and health care bills.



The Tea Party folk are focusing on something real. Federal spending is rising from about 21 percent to about 25 percent of gross domestic product -- a huge increase in historic terms -- and the national debt is on a trajectory to double as a percentage of GDP within a decade. That is a bigger increase than anything since World War II.



Now the political scientists' maxim seems out of date. The Democrat who won the Pennsylvania 12th Congressional District special election opposed the Democrats' health care law and cap-and-trade bills. The Tea Party-loving Republican who won the Senate nomination in Kentucky jumped out to a big lead. The defeat of the three appropriators, who among them have served 76 years in Congress (and whose fathers served another 42), is the canary that stopped singing in the coal mine.



Will Republicans come forward with a bold plan to roll back government spending? The natural instinct of politicians is to avoid anything bold. The British Conservatives faced this question before the election this month. When Britain was prosperous they promised no cuts at all. When recession hit, they were skittish about proposing cuts and mostly unspecific when they did.



That may have been why they fell short on May 6 of the absolute majority they expected. Now they're in a coalition with the third-party Liberal Democrats, who proposed more cuts, and the cuts they've announced have been widely popular. Boldness seems to work where skittishness did not.



Unlike the Conservatives, Republicans have no elected party leader. But House Republicans like Eric Cantor, Kevin McCarthy and Peter Roskam are setting up web sites to solicit voters' proposals for spending cuts, while Paul Ryan has set out a long-term road map toward fiscal probity. Worthy first steps. I think voters are demanding a specific plan to roll back Democrats' spending. Republicans need to supply it.



Michael Barone, The Examiner's senior political analyst, can be contacted at mbarone@washingtonexaminer.com. His columns appear Wednesday and Sunday, and his stories and blog posts appear on ExaminerPolitics.com.



Read more at the Washington Examiner: http://www.washingtonexaminer.com/politics/The-gathering-revolt-against-government-spending-94603774.html#ixzz0oofUGSmt

Saturday, May 22, 2010

In case you don't know about the illegal immigration problem in the U.S.



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1.     Illegal aliens in custody after fleeing cops on Ohio Turnpike ...

May 21, 2010 ... The driver, identified as Melvin Hernandez, of Mexico, also faces felony charges of transporting illegal aliens. The Toyota Sienna mini-van ...

www.toledoonthemove.com/news/story.aspx?id=457995 - Cached

2.     Wet Arizona winter fatal for illegal immigrants - Tucson News and ...

Feb 16, 2010 ... If SB 1070 ever becomes law in Arizona, Illegal Immigrants there surely will ... pulled over a van on Richmond's Route 95 for a traffic violation. ... Flie photo. Source: CBP. Los Angeles - Three suspected 'coyotes' have ...

politifi.com/.../Wet-Arizona-winter-fatal-for-illegal-immigrants-193704.html - Cached

3.     Chattanooga Times Free Press | Immigration agents raid Arizona van ...

Apr 16, 2010 ... The shuttle operators are accused of giving illegal immigrants fraudulent receipts to make the ... Friday - May 21, 2010 - 1 Comment - Photo ...

www.timesfreepress.com/.../immigration-agents-raid-arizona-van-shuttle-busine/ - Cached

4.     D.R.Berry Says: Sheila Jackson Lee: Let's Give Health Care to Illegals

Sep 29, 2009 ... VAN SUSTEREN: And if we can identify them -- OK, but I mean, ... My Photo. D.R. Berry: Politically savvy trivia goddess extraordinaire ...

monksdiner.blogspot.com/2009/09/sheila-jackson-lee-lets-give-health.html

5.     Illegal aliens in the Netherlands | Radio Netherlands Worldwide

Oct 26, 2009 ... We investigate what it's really like for illegal aliens living here in the ... Mind your ear drums! (Photo: Dokters van de Wereld) ...

www.rnw.nl/english/radioshow/illegal-aliens-netherlands - Cached - Similar

6.     Protesters block detention van - UPI.com

Apr 27, 2010 ... blocked a federal detention van carrying illegal immigrants who ... Enlarge Photo. Demonstrations protest against Arizona Imigration ...

www.upi.com/Top_News/US/...van/UPI-58091272380892/ - Cached

7.     Poizner pushes to stop services for illegal immigrants at GOP ...

Mar 12, 2010 ... Not only is Whitman a huge, "fan" of Van Jones, she is on the climate change ..... Photo Galleries. Ventura County's Most Wanted May 18 ...

www.vcstar.com/.../after-dodging-press-candidate-whitman-fields-for/ - Cached

8.     KVOA.com | Tucson, Arizona Several suspected illegal immigrants ...

Apr 16, 2010 ... I know a a nurse that worked at the UMC trauma ward. when one of these typical crashes occurred (17 illegals being smuggled in a van with ...

www.kvoa.com/.../several-suspected-illegal-immigrants-injured-in-i-10-crash/ - Cached

9.     Moonbattery: Bureaucrats Issue IDs to Illegal Aliens

May 17, 2010 ... Bureaucrats Issue IDs to Illegal Aliens. Posted by Van Helsing at May 17, ... now endorse or issue photo identification cards to residents. ...

www.moonbattery.com/archives/2010/05/bureaucrats-iss.html - Cached

10. Topic

Agents raided van shuttle operators in Arizona Thursday in a massive investigation into smuggling of illegal immigrants. (AP Photo/Matt York) ...

www.winonadailynews.com/topic/?q...t... - Cached

YouTube - Illegal Aliens kill Arizona rancher

Mar 29, 2010 ... queueVan Flips and 28 Illegal Immigrants Jump Out233732 viewsinlovewithi ... queueMario Quiroz Photo Essay: 200000 Immigrants Ma...231 views ...