Category Archives: Politics

Publicopoly Exposed

On February 25, 2011, Florida State Representative Chris Dorworth (R-Lake Mary) introduced HB 1021. The bill sought to curtail the political power of unions by prohibiting public employers from deducting any amount from an employee’s pay for use by an employee organization (i.e., union dues) or for any political activity (i.e., the portion of union dues used for lobbying or for supporting candidates for office).

Furthermore, HB 1021 stated that, should a union seek to use any portion of dues independently collected from members for political activity, the union must obtain annual written authorization from each member.

In effect, this bill defunds public-sector unions—like AFSCME, SEIU, the American Federation of Teachers and the National Education Association—by making the collection of member dues an onerous, costly task. With public-sector unions denatured, they would no longer be able to stand in the way of radical free marketeers who plan to profit from the privatization of public services.

Given the similarities between HB 1021 and a rash of like-minded bills in states across the country, including Wisconsin, on March 30 a public records request was sent to Dorworth’s office seeking copies of all documents pertaining to the writing of HB 1021, including copies of any pieces of model legislation the American Legislative Exchange Council (ALEC) may have provided.

Within an hour of submitting this request, Florida House Speaker Dean Cannon’s (R-Winter Park) Communications Director Katherine Betta responded: “We received a note from Representative Dorworth’s office regarding your request for records relating to the American Legislative Exchange Council and HB 1021. Please note that Mr. Dorworth’s legislative offices did not receive any materials from ALEC relating to this bill or any ‘model legislation’ from other states.”

But two weeks later Dorworth’s office delivered 87 pages of documents, mostly bill drafts and emails, detailing the evolution of what was to become HB 1021. Buried at the bottom of the stack was an 11-page bundle of neatly typed material, labeled “Paycheck Protection,” which consisted of three pieces of model legislation, with the words “Copyright, ALEC” at the end of each.

Dorworth legislative assistant Carolyn Johnson claims that, although Dorworth is an ALEC member, neither she nor her boss have any idea how the ALEC model legislation found its way into Dorworth’s office. Dorworth could not be reached for comment.

via Publicopoly Exposed — In These Times.

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McGuireWoods Lobbying for ‘Smart Card’ Maker Dynamics Inc.

Former Rep. L.F. Payne (D-Va.) of McGuireWoods Consulting is advocating for a smart payment card maker on debit card fees, according to a lobbying registration form submitted to Congress less than a week after changes to debit card transactions went into effect Oct. 1.

Payne, the president of McGuireWoods, is representing Cheswick, Pa.-based Dynamics Inc. with two other lobbyists from the firm. The trio is lobbying for the company on security issues, payment card technology and credit card fee legislation, in addition to the implementation of new debit card fees.

The Federal Reserve in June approved rules that lower the fees merchants pay for a customer’s debit card usage. Bank of America Corp. and other banks plan to add or already have added monthly charges for debit card users to help offset money lost by the rules, angering cardholders.

Dynamics, founded in 2007, announced this month that it has reached agreements to produce more than 1 million smart payment cards through 2012. The company’s products include cards that handle two accounts, provide password protection for payment card numbers and allow cardholders to use points or credit for purchases.

McGuireWoods Consulting is the only firm that has registered to lobby for Dynamics, congressional records show.

Neither Payne nor a Dynamics spokesman immediately responded to requests for comment.

via McGuireWoods Lobbying for ‘Smart Card’ Maker Dynamics Inc. – The BLT: The Blog of Legal Times.

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Is politics from below ‘class warfare’?

The exciting presence and perseverance of protestors on Wall Street (and the spread of the #OccupyWallStreet protests to cities throughout America) is a welcome respite from years of passivity, and not only in relation to the scandalous legal and illegal abuses of comprador capitalists.

In addition, it is a reaction to the prolongations of predatory wars in Iraq and Afghanistan, to a rising anti-democratic Islamophobic tide, to a shameless reliance on incarceration for harmless activities, to a presidency that seems less willing to confront hedge fund managers than jobless masses, and to a Congress that incredibly represents billionaires while scorning the people that put them in office.

But will this exhilarating presence be sustained in a manner that brings credible hope of restored and renewed democracy that is dedicated to social well-being at home and responsible law-oriented leadership abroad that is no longer drone-driven?

“Obama’s electoral victory in 2008 was the last hope of the young in America.”

There is little doubt that this move to the streets of America expresses a deep disillusionment with ordinary politics based on elections and governing institutions. Obama’s electoral victory in 2008 was the last hope of the young in America who poured unprecedented enthusiasm into his campaign that promised so much and delivered so little. Perhaps worse than Obama’s failure to deliver, was his refusal to fight for what he claimed to believe, or even to bring into his entourage of advisors a few voices of empathy and mildly progressive outlook.

From his initial appointment of Rahm Emmanuel onwards, it should have been clear that the Obama presidency was intent on playing the same old Washington games waged by special interests. More recently, these interests were further deformed by a Republican Party lurching to the right, by a surging Tea Party intent on pushing the government policy and role to the outer extremes of cruel and irresponsible public policy, by a pathetic Democratic Party that is trying to survive mainly by mimicking Republicans, and by a domineering media that has become largely captive to corporate America.

If such a portrayal of ordinary politics is more or less correct it is a wonder that a more radical sense from the left of America’s future took so long to materialise, if indeed it has. At least #OccupyWall Street is displaying the distress of young urban Americans and sending some warning signals to the bastions of the established power that acute displeasure is rising, and may become threatening to what is, as well as engaging with what might be.

Far right radicals

Of course, radicalism is not absent from the American political scene. Ever since the end of the Cold War, the forces of the right have been riding higher in the United States.

Such an impression is strengthened by the loss of composure by the Democratic party that struggles to show that it is almost as capitalist, pro-military, anti-tax, anti-immigrant, and patriotic as its reactionary critics. Its traditional principles of a compassionate state serving the interests of the citizenry have been put in cold storage. Democrats are scared to seem weak, and even more scared to seem to be socialists.

“One serious cost of the collapse of the Soviet Union was to discredit efforts by government to care for the health, education and wellbeing of less advantaged people in the country.”

One serious cost of the collapse of the Soviet Union was to discredit efforts by the government to care for the health, education, and well-being of less advantaged people in the country. Thus the Wall Street protests, if indeed they do have a radical agenda, which is not yet clear, will be to fill this vacuum on the left that has been so disabling during the last twenty years when capitalism had no ideological rival.
One amusing legacy of Cold War anti-Marxism is for the reactionary legions in the country to complain that the protesters are intent on launching ‘class warfare.’ It is one of those post-liberal epithets that gets promiscuously tossed around by ascendant right wing ideologues so as to demonise even those who are reckless enough to propose a modest tax increase on the super-rich in America.

Even Barack Obama who has done his best to please Wall Street 99 per cent of the time, is being charged with waging ‘class warfare’. Liberals are so timid ever since the Berlin Wall fell, and with it fell the possibility of compassionate society, whether capitalist or socialist, the label intimidates. Since then every effort has been made to protect the interests of the exploiting social forces that exult and prosper while marginalised minorities weep and bleed.

As has been pointed out by trenchant critics of what is going on, yes, there is class warfare being practiced, not by its victims, but by the very folks that decry class warfare.

The rich have been extraordinarily successful during the last decade or so in redistributing income upward, from the poor to the rich and ultra rich, including from the increasingly worried middle classes to those plump elites sitting comfortably on top of the economic pyramid.

Combined with pro-corporate and pro-bank deregulation, tax holidays, labour-busting tactics, anti-immigrant-fervor, this assault on the citizenry of the country is an inversion of class warfare as delimited in the Marxist tradition.

The ‘new’ class warfare

The new class warfare is waged on behalf of those with great wealth who have solidified their control over the reins of government with the purpose of disenfranchising the citizenry, breaking the social contract of the New Deal, and relying on law enforcement to keep those who object under suspicion. This is a task facilitated by the repressive legislation made plausible by the 9/11 attacks and the curtailment of individual freedoms associated with the rigours of ‘homeland security’.

“The new class warfare is waged on behalf of those with great wealth who have solidified their control over the reins of government.”

Disavowing American party and institutional politics and situating hope with the arousal of progressive forces in civil society is different from concluding that the Wall Street protests are more than a tantalising flash in the pan at this stage.

Even with this cautionary commentary, it is obvious that these events own a large acknowledged debt to Tahrir Square (as well as to a surprising initial push from the Canadian anti-consumerist magazine, Adbusters) – especially the ethos of a nonviolent leaderless, programme-less spontaneous rising that learns day-by-day what it is about, who it is, and what is possible.

Of course, the immediate stakes for the protesters seem much lower than in Egypt or elsewhere in the Arab world, as there is little present risk of death or physical injury at the hands of the police on American streets. Additionally, however disappointing and abusive the political and economic realities have become, they are not cruelly and corruptly autocratic.

For this reason, the ghouls of Wall Street do not provide quite as potent a unifying target as was the grim personage of Hosni Mubarak, a cruel autocrat in power for more than three decades, and so it may be harder to transform these protests into a sustainable movement.

But in other ways the stakes and risks on Wall Street are higher than they might seem. As long as America is beholden to militarists and right-wing billionaires its shadow negatively affects many ongoing struggles throughout the world.

This America turns away from the needed global cooperation to address climate change, world poverty, severe human rights abuses, nuclear disarmament, and such concrete issues as self-determination for the Palestinian people and peace for Afghanistan, Iraq, and many other outposts of misery.

This America opposes carbon taxes, and refuses to support the establishment of a Global Peoples Parliament or a UN Emergency Peace Force that might encourage global democracy and make the protection of vulnerable people a task for the United Nations rather than a geopolitical maneuver.

The world needs an America that rediscovers its own dream of liberty and justice, and awakens from a long and debilitating nightmare that has silenced its ‘better angels’.

In the end, we all must hope and engage. The beginnings of hope are rooted in the correctness of analysis, and so we can be thankful that this initiative places its focus on the shortcomings of a merely procedural democracy, the deforming impact of financial and corporate practices, and does not look to the reform or even the control of the state as the cure for what ails.

The implicit not so subtle point is that the centre of power over the destinies of the American people has shifted its locus from Washington to New York, and beyond! Underneath the rhetoric is the search for substantive democracy that upholds rights, demands justice and freedom, and allows people to participate in the control of their destinies

via Is politics from below ‘class warfare’? – Opinion – Al Jazeera English.

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Elizabeth Warren raises $3 million in challenge to Scott Brown

Massachusetts U.S. Senate candidate Elizabeth Warren announced Monday that her campaign has raised $3.15 million in her bid to challenge U.S. Senator Scott Brown.

Ms. Warren announced in an e-mail to her supporters that she has raised $3.15 million since entering the race in September. The Massachusetts Democrat announced that her fundraising haul was largely raked in through small-dollar donations. The Warren campaign said 96 percent of her contributions from donors giving less than $100.

Ms. Warren, who helped set up the new Consumer Financial Protection Bureau and is a favorite candidate among progressives, announced the impressive third-quarter results as polls continue to show support for her candidacy on the rise. An October 2 University of Mass-Lowell/Boston Herald poll found Mr. Brown leading Ms. Warren 41 to 38. A Western New England University poll conducted from September 29 through October 5 found Mr. Brown leading 47 to 42 among registered voters.

Writing in an email to supporters on Monday, Ms. Warren reiterated her campaign pledge to focus on the middle class. “With the big banks and special interests lining up against us, we know it’s going to take a strong, grass-roots campaign to win,” Ms. Warren wrote in the email. “That’s why your support is more important than ever. I need you to help us build the strongest grassroots campaign we can by encouraging your friends and family to join us, too.”

“These are pretty amazing numbers for our first official finance report, raised in a very short period of time, so you can understand why I want to say thanks a million — and more! — for this remarkable support,” Ms. Warren added.

Mr. Brown, who continues to enjoy a solid base of support, has said he remains focused on his job in the U.S. Senate, downplaying speculation that Ms. Warren could unseat him.

via Elizabeth Warren raises $3 million in challenge to Scott Brown | The State Column.

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Murdochs should be kicked off News Corp board | World | News | London Free Press

Rupert Murdoch and his sons James and Lachlan should be kicked off the News Corp board along with 10 other directors when shareholders vote at this year’s annual general meeting, a corporate governance watchdog said on Monday.

The phone hacking scandal at News Corp’s UK weekly tabloid paper News of the World has rocked the entire company since it erupted in July. ISS said the scandal has “laid bare a striking lack of stewardship and failure of independence.”

The board had been unable to set a “strong tone-at-the-top“ about unethical business practices, ISS said. ISS is a proxy firm that advises some of the largest institutional investors in the United States on shareholder votes.

The statement was particularly critical of the board’s decision to approve a 180 percent increase in Chief Executive Rupert Murdoch’s cash bonus to $12.5 million in the fiscal year to June 2011 soon after the phone hacking fallout began.

Rupert Murdoch controls the company through a 40 percent stake in the company’s voting stock.

Including the Murdochs, ISS recommended shareholders vote against reelecting 13 of the 15 directors at its annual general meeting on Oct. 21. It suggested votes against executives on the board including Chief Operating Officer Chase Carey, Chief Financial Officer David Devoe and former general counsel Arthur Siskind as well as independent directors including former British Airways CEO Rod Eddington and former assistant attorney-general Viet Dinh.

The only two directors ISS backed were veteran lawyer Joel Klein and venture capitalist Jim Breyer “as neither has yet served on the board for more than a few months. Breyer is set to join the board on Oct. 21, after fellow venture capitalist Tom Perkins announced he was stepping down last month.

News Corp said it “strongly disagrees“ with ISS analysis.

“The company takes the issues surrounding News of the World seriously and is working hard to resolve them. However, ISS’ disproportionate focus on these issues is misguided and a disservice to our stockholders,“ said a company spokeswoman.

“Moreover, ISS failed to consider that the company’s compensation practices reflect its robust performance in fiscal year 2011.“

via ISS: Murdochs should be kicked off News Corp board | World | News | London Free Press.

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Politics getting in way of dole plan for poor, says Pimentel | Inquirer News

Politics is getting in the way of the conditional cash transfer (CCT) program, a promising financial scheme aimed at helping the poor, former Senator Aquilino Pimentel Jr. said Monday.

Pimentel, one of the principal authors of the Local Government Code that devolved services to city and municipal governments, assailed the discretion enjoyed by the Department of Social Welfare and Development (DSWD) in disbursing billions of pesos for the program.

“Why is the department heading the program when its task has already been devolved to local government units?” he asked on the sidelines of an event commemorating the 20th anniversary of the Local Government Code.

“All I can see here, to answer my question, is politics. The government should give [the program’s administration] to LGUs (local government units),” the former senator said.

The DSWD is asking for a P39.4-billion budget in 2012 for the CCT program, also known as the Pantawid Pamilyang Pilipino Program, for distribution to three million families, up from the current 2.3 million.

The poverty reduction program encourages mothers in poor communities to send their children to school and to undergo regular vaccinations, and to have checkups at health centers.

Under the program, each household can get between P800 and P1,400 a month in health and education benefits, depending on the number of children (at most three per family).

Aurora Representative Juan Edgardo Angara on Saturday pushed for reciprocal services from millions of poor families benefiting from the program.

Angara said the families could be tapped in national environmental programs starting at the barangay level to help communities cope with the growing threat of climate change.

“There must be reciprocity in the current conditional cash transfer program to erase criticisms that the program is just another form of dole,” he said.

Angara said able family members should lend their services to activities like tree planting and the cleaning of canals, rivers and other waterways within their respective areas.

Under the proposed P1.816-trillion General Appropriations Act for 2012 which was approved recently by the House of Representatives, the Department of Budget and Management has allotted provisions for the so-called “lifeline to the poor.”

Aside from the P39.5 billion for the CCT, P1.2 billion is allotted for the social pensions of 198,370 poor people aged 75 years and over. They are to receive P500 each monthly.

The proposed amount is 38 percent higher than the 2011 total of P871 million, which covers 138,960 beneficiaries.

Also included in the lifeline program for the poor is P2.9 billion for the DSWD’s supplemental feeding program to help provide nutritious meals to 1.6 million children enrolled in day-care centers nationwide

via Politics getting in way of dole plan for poor, says Pimentel | Inquirer News.

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Not To Be Left Out, China Announces Its Own Bank And Stock Market Bail Out | ZeroHedge

To anyone still believing that capital markets around the world express something other than government policy, the latest news out of China may come as a surprise: “Beijing will buy more shares in China’s biggest banks, in an expression of support for the beleaguered stock market and most concrete state action to date to shore up confidence in the slowing economy.” The FT reports further: “Central Huijin, the domestic arm of China’s sovereign wealth fund, will buy the shares to help stabilise the pillars of the country’s financial system, the official Xinhua news agency said on Monday. Coming as the Chinese stock market closed at a 30-month low, the move was the strongest sign that Beijing wants to engineer a restoration of confidence in share prices and the economy. It paid instant dividends with a rally in the final minutes of trading on Monday.” And there you have it: stocks are now nothing more than a means for governments to validate their “success” in something, since they have no more control left over either employment or inflation, or public expression of affection with capitalism as per #OWS. So why not ramp up the DJIA to 36,000? Granted that will happen as all global currencies get terminally davalued against gold, but so what – after all that only thing that matters now is whose stock market is the biggest.

More:

Although Chinese growth has so far held up well, the European debt crisis and the risk of a double-dip recession in the US have cast a shadow over the country’s economy. With inflation running near three-year highs and debt levels swollen by heavy spending, economists doubt that Beijing could launch the kind of stimulus it did when the global financial crisis struck in 2008.

 

Sensing vulnerability, investors have turned against China, driving down commodity prices, betting on the chances of a government default and selling shares in the banks that are the economy’s lifeblood.

 

The government, through Huijin, is already the majority shareholder in all of the country’s major banks. While the announcement gave no details about how much more it intends to buy, it was unabashed in declaring that it aimed to halt the roughly 30 per cent slide in bank stocks in recent months.

 

In a rebuff to traders who have been betting that the renminbi will weaken as the Chinese economy slows, Beijing also allowed the currency to record its biggest one-day gain in years on Monday, letting it rise 0.6 per cent against the dollar.

 

The motivation for that also appeared to be diplomatic, with the US Senate set to vote on Tuesday on legislation that would punish China for keeping its currency undervalued.

And so on.

We could say “we told you so” but so what – at this point only the biggest idiots don’t realize that is the last ditch desperation manoeuvre to preserve social stability by keeping stock markets at a level that will prevent all out panic. Yes, someone will have to pay the piper at the end of the day because not even Keynes could have envisioned this kind of wholesale lunacy, but by then it will be “someone else’s problem.” For now – it is time to buy, buy, buy and, to those who listen to Berlusconi, create some market volatility.

via Not To Be Left Out, China Announces Its Own Bank And Stock Market Bail Out | ZeroHedge.

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Deficit Super Committee Struggles To Make Progress As Clock Ticks

WASHINGTON (AP) — The super committee is struggling.

After weeks of secret meetings, the 12-member deficit-cutting panel established under last summer’s budget and debt deal appears no closer to a breakthrough than when talks began last month.

While the panel members themselves aren’t doing much talking, other lawmakers, aides and lobbyists closely tracking the committee are increasingly skeptical, even pessimistic, that the panel will be able to meet its assigned goal of at least $1.2 trillion in deficit savings over the next 10 years.

The reason? A familiar deadlock over taxes and cuts to major programs like Medicare and the Medicaid health care program for the poor and disabled.

Democrats won’t go for an agreement that doesn’t include lots of new tax revenue; Republicans are just as ardently anti-tax. The impasse over revenues means that Democrats won’t agree to cost curbs on popular entitlement programs like Medicare.

“Fairness has to be a prerequisite for it,” said House Minority Leader Nancy Pelosi, D-Calif. “We have just come through passing a bill that was (all spending) cuts, no revenue.” Pelosi was referring to the August debt limit bill, which set tight “caps” on agency budgets but didn’t contain revenue increases pressed by Democrats.

Democrats are more insistent on revenues now.

“There’s been no movement on revenues and I’m not sure the Democrats will agree to anything without revenues,” added a Democratic lobbyist who required anonymity to speak candidly.

Asked last week whether she is confident that the panel can hit its $1.2 trillion goal, co-chairman Sen. Patty Murray, D-Wash., sidestepped the question.

“I am confident that the public is watching us very closely to see if we can show this country that this democracy can work,” Murray told reporters. “I carry that weight on my shoulders every day and so does every member of this committee.”

The two parties have equal strength on the panel, which has until Thanksgiving to come up with a plan to submit for up-or-down House and Senate votes in December. That means bipartisan compromise is a prerequisite for a successful result.

Thus far, say aides to panel members and other lawmakers, neither side has demonstrated the required flexibility in the super-secret talks.

The $1.2 trillion target evolved after efforts by President Barack Obama and House Speaker John Boehner, R-Ohio, to strike a so-called grand bargain on taxes and spending fell apart in July.

Those discussions and earlier talks led by Vice President Joe Biden identified numerous options for cutting the deficit. They included requiring federal workers to contribute more to their retirement, cutting farm subsidies, auctioning broadcast spectrum and curbing payments to Medicare providers like skilled nursing facilities, rural hospitals and home health care services.

The super committee could scoop up these relatively easy-to-generate savings but still fall short of the $1.2 trillion target. Interest groups like the powerful farm lobby might be willing to accept cuts when everybody else is getting hit, too, but are likely to fight back if they’re among the relative few getting singled out for sacrifice.

“Once you start taking things off the table or you pick a deal that only hits some parts of the budget, then you have some people who get hit who say, `Well, why me? Why not other people?'” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget.

To be sure, the super committee still has time. And panel members, while divided, earnestly want a result. A more optimistic scenario is that in coming days and weeks, members of the panel will become more flexible as the deadline nears – and as pressure builds from financial markets and credit rating agencies like Standard & Poor’s, which in August downgraded U.S. debt from its AAA rating.

At the same time, failure to produce a measure would trigger painful across-the-board cuts to the Pentagon budget and a big slice of domestic programs. The idea behind this so-called sequester was to force the two sides to come together because the alternative is too painful.

“I made it clear to the Republican members of the super committee that I expect there will be an outcome, that there has to be an outcome,” House Speaker John Boehner, R-Ohio, said at a Washington forum on Thursday. “The sequester that was built behind this is ugly, and it was meant to be ugly so that no one would go there. I don’t underestimate how hard it’s going to be to come to an agreement by the so-called super committee, but we have to get to one.”

The across-the-board sequester, however, wouldn’t take effect until the beginning of 2013, which is already fueling speculation that Congress would simply revisit the issue after the elections next year.

via Deficit Super Committee Struggles To Make Progress As Clock Ticks.

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Dexia bailout set as wider bank rescue mulled

BRUSSELS, Oct 9 (Reuters) – Franco-Belgian bank Dexia was set to be broken up and partly nationalised after being slammed by a funding squeeze in the latest warning sign about the health of Europe’s struggling lenders.

The rescue of Dexia, which has global credit risk exposure of $700 billion — more than twice Greece’s GDP — came as the leaders of French and Germany agreed in a joint press conference that European banks needed to be recapitalised, but papered over differences on how that would happen.

Details of the rescue were not revealed while Dexia’s board met in Brussels to approve the plan, but it will call for the bank’s Belgian retail unit and French municipal finance operations to come under government control.

Dexia was forced to seek state help for the second time in three years after a liquidity crunch hobbled the lender and sent its shares down 42 percent over the past week.

French Prime Minister Francois Fillon, his Belgian counterpart Yves Leterme and Luc Frieden, the finance minister of Luxembourg, where Dexia has a large presence, had found a solution for the stricken Franco-Belgian bank, Leterme’s office said early Sunday afternoon.

“The three governments have agreed to put a proposal to the board which fits completely with the goals of the Belgian government, which means to take over Dexia Bank Belgium, secure it and turn it into a very safe bank,” Leterme said after two hours of talks at Egmont Palace in Brussels — also the site of negotiations for a previous Dexia rescue in 2008.

At stake in the talks is how much each government will have to contribute to help wind down Dexia, a thorny subject given that Belgium and France are already struggling to contain large deficits.

The need to recapitalise banks is emerging as another strain for European governments whose budgets are already stretched. Belgium had a debt-to-gross domestic product ratio of 96.2 percent last year, lower only than Greece and Italy among euro zone members and on a par with bailout recipient Ireland.

“I am convinced that it is possible … by tomorrow morning to have an agreement in which Belgium resolves the issue without pushing up the debt level of our country too high,” Leterme told Belgian television before Sunday’s talks.

The burden of bailing out Dexia led ratings agency Moody’s to warn Belgium late on Friday that its Aa1 government bond ratings may fall.

Dexia, which used short-term funding to finance long-term lendings, has found credit drying up as the euro zone debt crisis worsened. This problem has been exacerbated by the bank’s heavy exposure to Greece.

Dexia’s near collapse stoked investors’ anxieties about the strength of European banks and coincided with growing talk about coordinated EU action to recapitalise banks across the continent.

Germany and France have so far been split over how to recapitalise shaky European banks. Paris wants to tap the euro zone’s 440 billion euro ($594 billion) European Financial Stability Facility (EFSF) to recapitalise French banks, while Berlin is insisting the fund should be used as a last resort.

There were fresh reports over the weekend that France’s top banks BNP Paribas and Societe Generale could agree to capital injections as part of a Europe-wide plan to boost lenders’ financial strength, although both banks continue to deny such plans.

Dexia’s overhaul will likely see its French municipal financing arm split from the group and merged with French state bank Caisse des Depots and Banque Postale, the French post office’s banking arm.

The Belgian government will nationalise Dexia’s largely retail banking business in Belgium. Media reports said it would have to pay 4 billion euros to do so.

Healthy units, such as Denizbank in Turkey, will be sold.

A ‘bad bank’ supported by state guarantees will hold 95 billion euros in bonds, including 12 billion euros of sovereign debt of weaker euro zone periphery nations.

Including 7 billion euros of securities linked to U.S. mortgages, France and Belgium may need to provide guarantees to cover up to 200 billion euros of assets, which would be more than 55 percent of Belgian GDP. Belgium, under an agreement reached between the governments on Sunday, will guarantee 60 percent of the bad assets while France will be responsible for most of the rest, sources familiar with the talks said.

The key issues are how to divide up the ‘bad bank’ asset guarantees, how much Belgium should pay to nationalise Dexia’s Belgian banking business and whether others, such as Belgium’s regions, would be involved in its purchase.

Dexia’s shares have been suspended since Thursday afternoon.

via UPDATE 5-Dexia bailout set as wider bank rescue mulled | Reuters.

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The White House Blasts Fox News For Misleading Viewers On Tax Cuts

Today, the White House accused Fox News of misleading their viewers about taxing the rich, and offered a point by point debunking of the Fox talking points.

Here is the Fox News Sunday video where Chris Wallace misinforms his audience about the wealthy and taxes:

Chris Wallace tried to argue that taxes should not be increased on the wealthy by saying, “1 percent of households with the highest incomes pay 38 percent of federal income taxes. The top 10 percent pay 70 percent of federal income taxes. Meanwhile, 46 percent of households pay no federal income tax at all.”

Today on the White House Blog, Communications Director Dan Pfeiffer called out Wallace’s stats, “These statistics are misleading and don’t tell the whole story. They leave out payroll taxes that every worker pays to make sure they will have Social Security and Medicare when they retire, which fall disproportionately on the middle class. And they don’t mention that the share of the nation’s income going to the highest earners grew rapidly in the past two decades – at the same time tax rates fell for the highest earners. In fact, because of growing income inequality, the top 10 percent of American earners now earns 42 percent of the nation’s income, and when correctly calculated, pay about 50 percent of the federal income and payroll tax burden – not much larger than their share of earnings.”

Pheiffer was just getting warmed up. He followed up with a point by point debunking of the Fox News talking points,

Claim: The top 10 percent wealthiest Americans pay 70 percent of federal income taxes.

Fact: This statistic presents a deeply misleading picture of the actual federal tax burden because (1) it fails to include payroll taxes, which every worker pays, and which fall disproportionately on the middle class, and (2) because it doesn’t reflect that high-income Americans earn a disproportionate share of income.

– Payroll taxes account for 34 percent of federal revenues. They only apply to income earned on the job – not income from capital gains on investments, which make up a much greater share of the income of the top 10 percent. And payroll taxes for Social Security are capped at $106,800.

– For both of these reasons, wealthier Americans face a disproportionately lower burden from payroll taxes. According to the independent, non-partisan Congressional Budget Office, the wealthiest 10 percent only pay 25 percent of all payroll taxes.

– Counting both payroll and income taxes, the top 10 percent only pay about 50 percent of that tax burden – not much larger than their share of our nation’s income (around 42 percent).

Claim: The 1 percent of households with the highest incomes pay 38 percent of federal income taxes.

Fact: This statistic again ignores the payroll taxes that every working American pays, and the fact that incomes of the top 1 percent have increased rapidly in recent years.

– As with calculations about the tax burden of the top 10 percent, this claim ignores payroll taxes that every American worker pays, but fall much less on the highest earners.

– In fact, the top 1 percent of all Americans only pay 4.1 percent of the nation’s payroll taxes. Overall, they pay about one-quarter of federal income and payroll taxes.

– While the top 1 percent pays about one-quarter of our federal income and payroll tax, they also earn 19 percent of our nation’s income.

Claim: 46 percent of households pay no federal income tax at all.

Fact: Around 82 percent of Americans pay income or payroll taxes, and those who don’t are mostly elderly people.

Ignoring payroll taxes presents a particularly misleading picture for middle income taxpayers. In fact, according to the independent, non-partisan Tax Policy Center, around 82 percent of Americans pay income or payroll taxes.

Fox News has become the primary propagator of the myth that nearly half of Americans don’t pay taxes, and Chris Wallace was trying to make the ridiculous argument that the rich shouldn’t have to pay more, even though they make more money. Fox News has been trying for months to turn the fairness argument on its ear in order to defend the polices of the last decade that caused the tax burden to trickle down and crush 98% of the American people.

The current rate of taxation is unfair to everyone who is not rich. The American people were promised prosperity if the wealthy were given special treatment, but a decade has passed and prosperity has never come around our corner. It is good to see the White House taking on the media mouthpiece of privilege and entitlement. The Obama administration has had good messages on a variety of issues, but sometimes struggled to communicate them in a simple and effective manner.

On the issues of jobs and taxes the administration now has a simple message that it is taking to the American people. They are also excelling at countering the distortions and misinformation coming from the right. As nice as it is to see the White House mixing it up with Fox News, more importantly, they are winning the message war on jobs and taxes.

The Obama message on taxes is the same as it was in December. The difference is that the White House is now presenting taxation as a moral issue, and this approach has connected with the American people.

The battle for 2012 is on, and it looks like the White House is no longer going to let Fox News roam unchecked

via The White House Blasts Fox News For Misleading Viewers On Tax Cuts.

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