GM Gets Its Loan; No Bankruptcy for Now

/21 Comments/in , , /by

When it was announced Sunday that President Obama had decided against appointing an "Auto Czar", instead opting for a panel of Administration financial experts including, but not limited to, Treasury Secretary Timothy Geithner, National Economic Council Director Lawrence Summers and Ron Bloom, it pretty much signaled that the Administration was going to continue to work with GM as an existing, functioning entity instead of forcing them into bankruptcy.

Monday night, that was borne out. From Reuters:

The U.S. government will release $4 billion in additional aid to General Motors Corp (GM.N) on Tuesday as planned, a White House aide said on Monday, ahead of the deadline for the automaker to submit a new survival plan.

The aide said GM’s smaller rival Chrysler LLC’s request for additional aid would be treated as a new request and dealt with separately.

GM is seeking concessions from the United Auto Workers union and creditors under the terms of its $13.4 billion federal bailout. It must submit a restructuring plan to U.S. officials on Tuesday showing how it can cut costs and pay back the loans.

Now that does not mean that the moment is over for GM, far from it. The company still has ongoing crucial negotiations with the auto workers union (UAW) that must be completed, and must formally submit its grand restructuring plan. The plan will not be fully known until officially submitted and made public, which is likely not to occur until the markets close tomorrow, but early details reveal a framework for a radically different General Motors in the future:

G.M. will file what is expected to be the largest restructuring plan of its 100-year history on Tuesday, a step it must take to justify its use of a $13.4 billion loan package from the federal government.

The plan will outline in considerable detail, over as many as 900 pages, how G.M. will further cut its work force, shutter more factories in North America and reduce its lineup of brands to just four, from eight, according to executives knowledgeable about its contents. The remaining core brands will be Chevrolet, Cadillac, GMC and Buick.
…
The plan will also probably include revisions in executive compensation and targets for cutting dealers and brands like Saturn and Pontiac.

Similar discussions are underway with Chrysler, which also has a deadline tomorrow to submit its restructuring plan; details of the plan or government commitment are not yet forthcoming.

President’s Day Down South

/100 Comments/in , , /by

Here it is, another glorious President’s day, and wouldn’t you know it world leaders are exchanging presents. And Venezuelan President Hugo Chavez has sent one President Obama’s way:

President Hugo Chávez handily won a referendum on Sunday that will end presidential term limits, allowing him to run for re-election indefinitely and injecting fresh vibrancy into his socialist-inspired revolution.

The results, coming after voters had rejected a similar effort by Mr. Chávez just 15 months ago, pointed to his resilience after a decade in power, as well as to the fragmentation of his opposition, which as recently as November had won key mayoralties and governorships.

The vote opens the way not only for Mr. Chávez to run for a new six-year term when his current one expires in 2013, but could also bolster his ambitious agenda as an icon of the left and a counterweight to American policies in Latin America.

It also creates a new foreign policy challenge for the Obama administration, strengthening a leader who has made a career of taunting and deriding the United States, even though Mr. Chávez just this weekend seemed to open the door for a different relationship.

Chavez is not going away anytime soon, and with the petro status of Venezuela remaining significant, both as to the US and as a vehicle for Chavez to spread influence in Latin America, Barack Obama needs to fashion a coherent policy for Latin America as a whole and Venezuela in particular. President Obama has shown a refreshing tendency in foreign policy to address glaring problems head on and, unlike the previous Bush Administration, actually use intelligence instead of muscle.

A heavy fist and a thumbed nose was about all the subtlety George Bush showed in his Latin American foreign policy; it is time for that to change. With the decline and fall of Fidel Castro in Cuba, and brother Raul being both slightly more progressive and not long for office himself, coupled with Chavez’s newfound extended lease on power and inability to know what to do the Obama agency of change, it is time for a new direction on both. We don’t need to all be best friends, but we need to quit being intransigent enemies for the sake of nothing more than needing to make each other a villain to play off of. President Obama can stop the stupid; he should.

Is the Obama White House Caving (Again) on Presidential Privileges?

/40 Comments/in , /by

I had this post mostly written as a screed against Greg Craig, who appeared to be caving again on Obama’s stated principles on presidential privileges. But after checking with three data points, I’m not so sure what is going on.

I covered the first data point on Friday: John Conyers’ letter, dated Friday, to Bob Luskin, refusing to give Rove yet another delay until such time as he feels the whim to testify before HJC.

I also cannot agree to your request for a delay to accommodate Mr. Rove’s schedule. As you know, the deposition was originally scheduled for February 2. On January 29 I in good faith acceded to your request for a delay since you were scheduled to be out of town at the time and requested more time to prepare. I also notified your office of the new February 23 date at that time. Thus, absent an actual commitment by Mr. Rove to comply with the subpoena, I am not in a position to agree to yet a further delay. In essence, given Mr. Rove’s public statements that he does not intend to comply with the subpoena, I am puzzled as to why Mr. Rove needs a mutually convenient date to appear.

The letter suggested that as of Friday, Conyers was unwilling to wait until the Appeals Court ruled on the Miers/Bolten (with Rove added) suit–he wanted to get a date with Rove for a week from Monday.

But then there was this report, revealing that Greg Craig is trying to make a deal.

White House lawyers and representatives for former president George W. Bush are engaged in discussions that could clear a path for congressional testimony by onetime Bush aide Karl Rove, three sources familiar with the talks said yesterday. 

[snip]

"The president is very sympathetic to those who want to find out what happened," Craig said in a statement yesterday. "But he is also mindful as president of the United States not to do anything that would undermine or weaken the institution of the presidency. So, for that reason, he is urging both sides of this to settle."

There’s a CBS report on this statement–but the reporter seems to be confused as much by the underlying issues as by Craig’s ambivalence. Both, however, suggest that Craig is granting Rove’s position with entirely too much credibility. Further, it hints that Craig might try to defend the utterly ridiculous absolute immunity claim so as to not "weaken the institution of the presidency." Read more →

Leahy: Congress Will Do Truth Commission with or without POTUS

/65 Comments/in , /by

As you may have seen last night, one of the more challenging questions for Obama came from the HuffPo’s Sam Stein, who asked Obama if he supported a Truth Commission.

Sam’s still busy with this story, today reporting that Leahy says Congress will go forward even without the support of Obama.

Senate Judiciary Chairman Patrick Leahy and White House Chief Counsel Greg Craig discussed on Tuesday the Senator’s proposal to set up a truth and reconciliation commission to investigate potential crimes of the Bush administration.

"I went over some of the parameters of it and they were well aware at the White House of what I’m talking about," Leahy told the Huffington Post. "And we just agreed to talk further."

[snip]

Leahy did add an important ripple to the story in the interview with the Huffington Post: Congress will likely proceed with investigations regardless of whether Obama is on board.

"Oh yeah," Leahy said when asked if he would go forward without Obama’s endorsement. "I think the Senate and the Congress as whole has an oversight responsibility that has to be carried out here anyway. Now it is much easier with the cooperation of the administration. A lot of things with the subpoenas I issued the past few years, we got a lot of information but a lot of it was held back."

[snip]

"What I would much rather see is to see us working together," said Leahy. "We have a common interest, both the Congress and the administration to get this thing worked out … In this instance, this is so important that our common interest is to get the truth out."

And in related news, Russ Feingold has joined the 22 other Members of Congress who have voiced their support for such a Commission.

I applaud Senator Leahy’s leadership in proposing the establishment of a truth and reconciliation commission. Getting all the facts out about what happened over the last eight years is a crucial part of restoring the rule of law. As President Obama and Attorney General Holder have said, nobody is above the law. There needs to be accountability for wrongdoing by the Bush Administration, including the illegal warrantless wiretapping and interrogation programs. We cannot simply sweep these assaults on the rule of law under the rug. [my emphasis]

I’m guessing Russ will not only support this Commission, but he’ll be one of the first reminding AG Read more →

James Jones on the NSC Under Obama

/16 Comments/in /by

A number of you have been talking in threads about this WaPo article describing the NSC’s "expanded" power.

President Obama plans to order a sweeping overhaul of the National Security Council, expanding its membership and increasing its authority to set strategy across a wide spectrum of international and domestic issues.

The result will be a "dramatically different" NSC from that of the Bush administration or any of its predecessors since the forum was established after World War II to advise the president on diplomatic and military matters, according to national security adviser James L. Jones, who described the changes in an interview. "The world that we live in has changed so dramatically in this decade that organizations that were created to meet a certain set of criteria no longer are terribly useful," he said.

[snip]

The new structure, to be outlined in a presidential directive and a detailed implementation document by Jones, will expand the NSC’s reach far beyond the range of traditional foreign policy issues and turn it into a much more elastic body, with Cabinet and departmental seats at the table — historically occupied only by the secretaries of defense and state — determined on an issue-by-issue basis. Jones said the directive will probably be completed this week. 

I actually think this is a good thing–indication that Obama will not view national defense to be exclusively a military thing. How much better off will we be, for example, if Steven Chu is at the table with Bob Gates and James Jones and Hillary Clinton when they’re discussing energy issues and climate change? I’d like to have the Nobel Prize winning scientist participating, thank you, and this reorganization appears designed to do just that. 

Today, Jones described some of these changes in a speech at the Munich Conference on Security Policy (via email). Here are the bits addressing changes to the NSC:

I would like to take just a moment to speak to you about his approach to national security and in fact international security and the role that I see the National Security Council playing. First and foremost the President’s strategic approach will be grounded in the real understanding of the challenges we face in the 21st century. We must simply better understand the environment that we are in. The President, if nothing else, is a pragmatist. Read more →

BREAKING: Obama Continues Bush Policy On State Secrets

/161 Comments/in , , , , , /by

Earlier this morning, Looseheadprop wrote about the case of Binyam Mohamed, the British subject tortured at the hands of the United States at Gitmo, including having his genitals carved selectively with a scalpel. The Mohamed case is of critical significance for a variety of reasons, not the least of which is the fact that there was an oral argument in the Ninth Circuit Court of Appeals in San Francisco this morning that was to provide a crucial test of the new Obama Administration’s willingness to continue the Bush policy of concealing torture, wiretapping and other crimes by the assertion of the state secrets privilege.

From an excellent article by Daphne Eviatar at the Washington Independent at the end of January:

President Obama’s sweeping reversals of torture and state secret policies are about to face an early test.
…
The test of those commitments will come soon in key court cases involving CIA “black sites” and torture that the Bush administration had quashed by claiming they would reveal state secrets and endanger national security. Legal experts say that the Bush Department of Justice used whatʼs known as the “state secrets privilege” – created originally as a narrow evidentiary privilege for sensitive national security information — as a broad shield to protect the government from exposure of its own misconduct.

One such case, dealing with the gruesome realities of the CIAʼs so-called “extraordinary rendition” program, is scheduled for oral argument before a federal appeals court in early February. The position the Obama administration takes in this case may be the first major test of its new policies on transparency in government.

Mohamed v. Jeppesen Dataplan, Inc. involves five victims of CIA rendition, or “torture by proxy,” as itʼs also known. Abducted abroad, the men were flown by the CIA to cooperating countries whose agents interrogated them under torture. Because federal officials are usually immune from lawsuits, the men later sued the private aviation data company, Jeppesen — a subsidiary of Boeing, one of the largest federal defense contractors — that
knowingly provided the flight plans and other assistance necessary for the CIA to carry out its clandestine operations.

Well, the news being reported out of Courtroom One in San Francisco is not good and indicates that the Obama Administration has continued the walk of the oppressive shoes of the Bush/Cheney regime and has formally continued the assertion of state secrets.

The best hope for transparency on Read more →

Wanted: An Ask for Phone Calls

/15 Comments/in /by

I just got this email:

Marcy —

President Obama recorded a video to speak directly to you about his economic recovery plan.

America is facing an urgent and unprecedented challenge. The economic crisis requires bold and immediate action.

Watch President Obama’s video and share it with your friends and family:http://my.barackobama.com/recoveryvideo

And I’ve also gotten friends inviting me in the last week to watch some other Obama videos together–that is, I’ve been invited to House Parties to discuss this. That means people are doing just as Obama (or David Plouffe) asks in their email alerts.

But I still haven’t been invited to call my Senators or Congressman (all of whom, granted, have voted for stimulus, but Debbie Stabenow voted for a stupid Tom Coburn amendment forbidding any stimulus money being used for musems and parks–I do plan on chatting with her about that and if you’re a Michigander, you should too!). Nor have I been invited by Barack Obama to call Sanctimonious Joe’s latest gang–Joe, Haggis, the Bad Nelson, and Susan Collins–to ask why they’re opposed to funds that will help states avoid cutting back necessary services, or why they’re opposed to constructing schools.

Mobilizing the millions of people on Obama’s email list is great. But isn’t it better to mobilize them to do the same thing the wingnuts are mobilizing their people to do–talk to members of Congress? Wouldn’t it be better to use that list to press for a more progressive (and effective) stimulus package?

Joe the Vice President at the Train Station

/57 Comments/in /by

Apparently, they’ve sent Joe Biden out to drum up some excitement for the stimulus package. Sending him to do so at a train station that would be upgraded under the stimulus package? A nice touch. (via email)

Mr. Mayor, thanks for the passport to get in town here. And, Governor, it’s a delight to be with you. And Ben Cardin pointed out — Senator Cardin — the things that Joe Biden knows this, and Joe Biden knows that. Joe Biden knows you’re freezing. (Laughter.) Joe Biden knows that pretty soon you won’t be able to even move your pens. So I figure if I talk long enough you won’t be able to report a thing I say. (Laughter.)

But, ladies and gentleman, I’ll be straight to the point. Thanks for coming here today. And as we stand here today, it’s an understatement to say the economy is in trouble and the need is urgent. Quite simply, we cannot wait. We cannot wait another two weeks, three weeks, four weeks. We cannot wait.

Our economic recovery package that’s now before the Senate will put us back on track to create and save 3 to 4 million jobs. And right here in Maryland, a paper released by the National Economic Council this week shows that the plan would create or save 70,000 jobs, Governor. That’s 70,000 people here in the state who won’t go through the pain and suffering of a job loss.

But this is only going to happen if and when we pass our recovery act. And Ben assures me he’s going to leave the frigid temperature here to go the warm halls of Congress and the Senate and get that done tonight or tomorrow. But quite frankly, folks, it’s only going to work if we make those investments we need, not only in generating employment immediately, but also investing in an economy of the 21st century.

By boosting paychecks through the Make Work Pay tax cuts, we’re going to put money in the pockets of middle-class people immediately. By making a down payment on the smart grid, we’re not only going to invest in moving towards a new energy future, we’re going to invest in clean energy. We’re going to invest in creating jobs that are going to not be able to be exported. Read more →

How to Get the Bush Dead-Enders to Do What You Want

/44 Comments/in , /by

In addition to signing SCHIP yesterday, Obama sent this memo to the current Acting Secretary of Health and Human Services, ordering him to withdraw two Bush-era letters imposing limits on states’ SCHIP programs, particularly with regards to income eligibility standards.

On August 17, 2007, the Centers for Medicare & Medicaid Services (CMS) issued a letter to State health officials limiting the flexibility of States to set income eligibility standards for their SCHIP programs. On May 7, 2008, CMS issued a subsequent letter restating the policy set forth in the August 17, 2007, letter.

The August 17, 2007, letter imposes additional requirements that States must meet in order to cover children under SCHIP plans, including plans that CMS had previously approved. These requirements have limited coverage under several State plans that otherwise would have covered additional, uninsured children. As a result, tens of thousands of children have been denied health care coverage. Unless the August 17, 2007, letter is withdrawn, many more children will be denied coverage.

By this memorandum, I request that you immediately withdraw the August 17, 2007, and May 7, 2008, letters to State health officials and implement SCHIP without the requirements imposed by those letters. 

I raise this not just to point to Obama’s efforts to make sure as many kids can be covered as possible. I do so to point to how Obama would get the Bush dead-enders to implement his policies at a time when Obama’s appointees are not yet in place.

We’ve been discussing Obama’s inaction on several key issues–notably warrantless wiretapping and, yesterday, on torture. While Obama can’t blame inaction in the Binyam Mohammed case on delays on his nominee getting approved, since Hillary is in place, we had a lengthy discussion about what Obama would have to do to implement his policy in a department–like DOJ at the time when the al-Haramain filings were submitted–where he did not yet have his nominee in place.

This memo gives us an idea of what Obama would have to do, I guess: send a damn letter to the Acting Secretary of the department, and order him to do what you want.

Which of course raises the question: if all it takes are one-page memoranda, then where are they on other key policy issues?

Hey Andy? What About Dick’s Breach of Etiquette?

/29 Comments/in , /by

Andy Card is deeply offended that Barack Obama works in shirt sleeves, and not a coat and tie.

"There should be a dress code of respect," Card tells INSIDE EDITION. "I wish that he would wear a suit coat and tie."

[snip]

"The Oval Office symbolizes…the Constitution, the hopes and dreams, and I’m going to say democracy. And when you have a dress code in the Supreme Court and a dress code on the floor of the Senate, floor of the House, I think it’s appropriate to have an expectation that there will be a dress code that respects the office of the President."

I agree with dakine that it is preferable to have a President, in shirt sleeves, working to protect the Constitution, rather than thugs in suit and tie, shredding it.

For myself, if I have a choice of an administration where everyone wears suits and ties and are all buttoned up while they destroy the country and the Constitution (but they look professional while doing so!) or an administration that takes off their coats and gets to work and actually does something to benefit most of the country, I will choose the latter hands down every time.

But I’m also wondering about Card’s misplaced focus on etiquette. Here he is, beating up Obama for his dress code, and ignoring a gross breach of etiquette–one that probably puts our country at some risk, in that it fosters gross insuburdination. As Lawrence O’Donnell explains to David Shuster, former Administration officials simply do not criticize the capabilities of their successors. It is not done.

No former Vice President has ever questioned the ability of the current Administration to protect the United States. This is something for which unprecedented is a mild word.

Yet somehow, Andy Card is able to overlook Cheney’s gross breach of etiquette even while bitching about Obama’s shirt sleeves.

image_print