I taped a TV segment today on the question of Mr Geithner’s future. Should he stay or should he go? Will he stay or will he go?
What can be in no doubt was that he was given the ultimate poisoned chalice. He inherited financial Armageddon and we still have a bank account. I imagine history will be kinder to him than certain sections of the news media are at present.
Inevitably the Democrats are going to lose seats in November. It is part of a political cycle that seems to now be ingrained in American politics. There will be fall guys. There will be changes of personnel.
And yes, I can see Tim Geithner having had enough of his poisoned chalice and deciding that he actually wants to be one of them. Summers is off to the safety of academia and that has to be an appealing proposition to many on the political front line – or should that be firing line – at the moment.
I am not, by an stretch of the imagination, a fan of the politics of Sarah Palin or Christina O’Donnell, who recently had that infamous victory in Delaware after being endorsed by Palin.
However, I do admire them as women, who are fighting in what is still a male dominated world. One of the most respected American (and Conservative) journalists I’ve ever met said to me the other day that they thought America was more sexist than racist.
At the moment, the media are writing a pile of cr@p about how Palin and O’Donnell are embroiled in a catfight because the latter may be stealing the former’s limelight.
Oh please. Would they be using the same pathetic, vitriolic language to describe two men? No.
Palin is a woman who supports women. I do admire that. The media should be celebrating it, not blowing it apart.
The big debate on the Bush tax cuts rages. On the one hand, you have a recent poll saying that 45% of Americans oppose tax hikes on the rich. On the other, you have a poll just in declaring that 53% of Americans agree with Obama to end tax cuts for the wealthy.
You work hard enough, you’ll find a poll saying that the British are happy the Pope is visiting. Well, maybe not. But I’m not entirely convinced that polls being bandied about help here.
Let’s just look at the facts. The US 2009 poverty rate was confirmed yesterday – 14.3%, 1 in 7 Americans. I think we can all agree that is too high and a tragedy of modern times. Meanwhile, the number of millionaires increased in the US by 8%.
Of course I’m not saying “oh no, people are doing better, punish them”. What I am saying is: the poor are getting poorer, the rich are getting richer and that is a deeply sorry – and shocking – state of affairs to be in.
The US deficit is running at 10% of GDP. And calculations are now showing that if the GOP locked the tax cuts in as they would like, it would add $4 Trillion to the deficit over the next 10 years. Their current proposed spending freeze would save only $300 Billion.
We all have limited resources. The maths isn’t adding up. But if these tax cuts, a form of stimulus, are to remain, then surely the lower middle class need them more than the wealthy, who seem to be doing just fine.
O’Donnell has won the primary in Delaware. It is perhaps for the best that I do not dwell on this woman. She’s so socially conservative she has criticised MTV for allegedly promoting masturbation as an alternative to sex.
Anyway. I read two more statistics yesterday which shocked me to the core, although perhaps on balance, I’m not altogether surprised.
The USA’s poverty rate is expected to have been 15% in 2009, up from 13.2% – the largest one year increase since the government began keeping records. However, things are improving for the wealthiest Americans – the millionaire class held a larger percentage of the country’s wealth than in 2007.
I am lucky to be in America and I do love it here. But some Americans really do confuse me sometimes.
Perhaps sometimes statistics just say it all.
56% of Americans ate snacks 3 or more times daily in 2007 and 2008. That’s up from 11% in 1977-78.
1 in 3 Americans is obese.
America spent $147 Billion on obesity related healthcare last year.
Feisal Abdul Rauf, the Imam behind the NYC “Community Center” that has provoked all the controversy, wrote an Op-Ed in the New York Times yesterday.
Love the Imam or loathe him, it was undeniably a beautifully written piece. To what extent it was ghostwritten or edited we will probably never know, but you can absolutely see why the State Department has brought the Imam on board.
On reading the article, these words struck me in particular: “I know there will be interest in our financing, and so we will clearly identify all of our financial backers”. At last count, I believe the project had $18,000 in the bank – and it is supposed to cost $100 Million.
After all of this controversy, is the Community Center actually going to find the number of backers willing to be identified as donors that it needs?
$100 million is a lot of money. Realistically will the Community Center ever be built at all?
White House Press Secretary Robert Gibbs seems to have got himself into trouble by saying yesterday: “I think by virtually any measure, our economy is in a better place than it was two years ago”.
On many levels, he does have a point. Two years ago we were facing financial Armageddon. On September 18, 2008 Fed Chairman Ben Bernanke met with key US legislators and told them: “… we may not have an economy on Monday.”
The biggest financial crisis the world has known in decades happened on Bush’s watch. Clinton bequeathed Bush a surplus, policies were pursued which squandered it – Dick Cheney did say that deficits don’t matter after all.
America was not alone in its policies. Most developed countries made similar mistakes and were in absolute dire straits two years ago.
How best to proceed? Stimulus or cuts? Democrat or Republican? Of course that’s all up for debate. But although Gibbs’ turn of phrase was perhaps unfortunate, fundamentally he has a point. Give all of us the situation today rather than our darkest days two years ago, where our entire economic structure was at risk. We still have bank accounts and there’s a recovery, however fragile.
Neither political party exactly has an exemplary record here…
Much debate is going on about whether the Bush tax cuts will remain in place or not – is the American economy robust enough to survive their removal without going into double dip territory?
I’m afraid it is inevitable that these tax cuts will have to go to some extent – they come from another era. A time when Dick Cheney commented that in relation to tax cuts, deficits didn’t matter.
Well, deficits do matter – the size of the US’s federal deficit, running at 10% of GDP, has led to talk that its Triple A rating is under threat.
Latest projections show that holding onto the Bush tax cuts will add $2 trillion to the federal deficit over the next 10 years. They are a form of stimulus that America cannot afford.
We are living in a time of limited resources, where we all are having to cut back. Which is why a Presidential deficit reduction commission is studying the UK’s Cameron-Osborne formula of a combination of 4 pounds of spending cuts for every 1 pound of tax increases…
We are all going to have to become accustomed to this new reality.
The idea was floated yesterday that the US is in danger of losing its “Triple A” rating.
I don’t think it is… yet. However I do believe, especially after November, that it is inevitable the US is going to go the way of Europe and focus on deficit reduction rather than stimulus. It is absolutely correct that the US starts taking action on its untamed deficit, currently running at 10% of GDP.
There is nothing like the threat of losing the Triple A rating to focus those in power’s minds – look at the UK. The UK government, with its new deficit reduction plan, is hanging on to its Triple A rating, but is acutely aware that it has to follow through with its spending cuts if it is to retain it. All eyes will be on the new review due in October.
I truly believe the US will have to follow the UK’s lead – Obama will have to cut spending without compromising his core values (in the UK’s case, this has been done with the ringfenced spending for the NHS and foreign aid with other departments getting savage 25-40% cuts). It can be done. It has to be done to restore confidence in the American economy.
Governor Christie of New Jersey’s office has managed to lose his state $400 million in education funding because they filled in a form wrong. It was all part of Obama’s laudable “Race To The Top”, a competition to reward states with exemplary educational ideas and practice, in the hopes that other states will adopt similar practices.
Christie, in textbook political (and very typically male) fashion, has gone on the offensive and blamed Washington, not himself.
Oh please. If you are applying for $400 million and you’re in competition with other people, surely the onus is on you to make sure your application is correct? For $400 million believe you me, I’d be doubly, triply, checking the numbers. All the other States seemed to manage OK. Christie has complained that the application was 1000 pages long.
For $400 million I would hope it was 1000 pages long. $400,000 a page seems to me positively cheap.
Men. Just occasionally when you are in the wrong, admit you are wrong. An “I’m sorry” is not weak: it demands so much more of strength of character to say.