Days 11-20
- Day 11: Geithner Appointed Treasury Secretary
- Day 12: More troops for Afghanistan?
- Day 13: Iraqi Elections A Good Sign
- Day 14: Secretary of State Clinton off to Asia
- Day 15: Obama`s New Picks for Top Cabinet Posts
- Day 16: U.S. Allies Threaten Action against Buy American Policy
- Day 17: Obama tough on energy,
the stimulus bill and soft on Kids health - Day 18: Obama`s Fight to Save Economy & Plan for Troop Withdrawal in Iraq
- Day 19: Vice President Biden Speaks at Conference in Munich
- Day 20: President Obama Prepares to Address the Nation in TV Address
- President Obama’s Struggle on Stimulus
- Obama’s First TV News Conference
The Stimulus Struggle Continues for President Obama
President Obama spent the day getting ready to bring a divided Congress together on the largest bail out rescue plan in U.S. He has presented a revision on his economic recovery package to help ease loans to consumers and businesses.
There is really no question that the stimulus bill in the Senate will pass. When the estimated $827 billion Senate version comes into law, there is the huge challenge of getting the House and the Senate to find agreement with the two versions of the bill. The House and Senate bills differ by about $7 billion and the Senate bill has more tax cuts while the House bill wants more capital for states, local governments and schools.
Secretary Timothy Geithner is reviewing options to expand the use of a new lending facility at the Federal Reserve. On the agenda are government guarantees to help banks deal with their troubled assets and direct infusion of capital into banks in exchange for securities and tighter accountability rules.
President Obama has a twofold goal: creating and saving jobs and the unfreezing of the credit markets. Obama's top economic adviser Lawrence Summers said today: “There are crucial areas, support for higher education, that are things that are in the House bill that are very, very important to the president.”
The House and Senate are scheduled to go on recess next week however congressional leaders pledge they will not leave until the bill is completed.
Obama’s First TV New Conference
Today President Obama must also be considering his television address for Monday night when he will present his case to the American people at 8 p.m. EST Monday. Also to reach out to the some of the very Americans he is trying to help the President will participate in town hall style meetings in cities that have been hard hit with unemployment and economic woes - Elkhart, Ind., on Monday and Fort Myers, Fla., on Tuesday. The much anticipated televised speech will be watched by millions of people and stock markets around the world.
- Vice President Biden Speaks at Conference in Munich
Munich Conference addresses the participants of the International Conference on Security Policy at the hotel "Bayerischer Hof" in Munich on Saturday, Feb. 7, 2009
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MUNICH -- Vice President Biden delivered a clear message to Iran, saying Saturday the U.S. was willing to talk, but will act to isolate and pressure Tehran if it does not abandon its nuclear ambitions and support for terrorism.
In a sweeping speech to international leaders and security experts here, Biden said the U.S. will strive to act preventively to avoid having to choose between the risks of war and the dangers of inaction.
But he held out the option that the U.S. could take pre-emptive action against Iran if necessary to stop crisis before they start. The U.S., he said, will "continue to develop missile defenses to counter a growing Iranian capability, provided the technology is proven and it is cost effective."
At the same time, he said that if Tehran gives up its nuclear program and stops backing terrorists, there will be meaningful incentives.
"We will draw upon all the elements of our power -- military and diplomatic, intelligence and law enforcement, economic and cultural -- to stop crises from occurring before they are in front of us," Biden told the gathering in his 25 minute address.
Biden's speech laid out for the first time to an international audience the Obama administration's foreign policy tenets, and emphasized diplomacy and cooperation. He also warned allies that they will be expected to share the burdens of fighting extremists and bolstering weaker governments and poor nations.
"America will do more, that's the good news," said Biden. "But the bad news is American will ask for more from our partners."
While President Barack Obama has said the U.S. is ready for direct talks with Iran, Biden's comments made it clear the U.S. is not willing to completely discard the stick, despite early warnings from Tehran.
His comments came a day after Larijani sternly declared that the Obama administration must admit past wrongs before there can be reconciliation.
"The old carrot and stick policy must be discarded," he said, alluding to Western threats and offers of rewards to coax Iran to give up nuclear activities the West views as threatening. "This is a golden opportunity for the United States."
Tehran insists its nuclear aims are peaceful. The former U.S. administration refused one-on-one negotiations with Tehran on the issue unless it made significant nuclear concessions beforehand.
Reaching out to close another rift, Biden said it's time to repair relations between the U.S. and Russia.
He said NATO and Russia should cooperate to defeat the Taliban and Al Qaeda. But he warned that the U.S. will continue to have differences with Moscow, including opposition to its efforts to carve out independent states in Georgia.
Biden's comments come just days after Kyrgyzstan announced it will shut down American access to the Manas air base, which the U.S. uses to resupply troops in Afghanistan. The decision came when Kyrgyzstan's president was visiting Moscow, hours after securing more than $2 billion in loans and aid from Russia.
As part of his effort to spread responsibility, Biden told the leaders that the U.S. needs their help in taking the detainees now held at Guantanamo Bay, Cuba.
He repeated Obama's vow that the U.S. will adhere to its values, not torture, and will close the detention center that has spurred such criticism from European allies.
But he added that allies must work together to combat extremism, and one way other nations can help is to take responsibility for some of the suspected terrorists at Guantanamo.
- President Obama seeks Public Support for Plan
- GOP Slows Passage of Bill
- Iraq Troop Withdrawal
President Obama Seeks Public Support
President Obama is reaching out at the community level by planning Town Hall style meetings early next week in areas where unemployment is rising at a fast pace. It is hoped that the President can rally public support for his economic stimulus plan.
Moreover, Obama is set to give his first prime-time news conference on Monday, February 9th. White House Press Secretary Robert Gibbs said: "The president wants to extend the conversation and have it directly with the American people."
GOP Slows Passage of Bill
Even while the debate continues over the merits of the stimulus plan, officials report that key senators and the White House administration reached a tentative agreement late today on the core topic of too much spending. The result was a quasi-agreement for a rescue plan costing $780 billion rather than the $9 billion version.
But support for the stimulus plan is a tough sell for the millions of Americans who are bombarded with information over the complex issues of a stimulus bill when all they really want is a chance at a better future for themselves and for the country. Some Republican senators claimed victory for their success in slowing the stimulus passage. The President said today it is "inexcusable and irresponsible" to delay passage of the recovery plan.
Obama and his administration continue to emphasize the urgency of getting the rescue plan on its feet. Monday’s prime time news conference is expected to be hard-hitting and tough as the President tells the nation again that economic catastrophe is a real possibility without the stimulus plan.
Iraq Troop Withdrawal
The Obama administration is considering three different military strategies for withdrawing troops from Iraq – a major topic in the rhetoric of the race for the White House post. The alternatives are:
- The feasibility of pullout within 16 months as promised in the campaign. The Joint Chiefs of Staff have outlined for the President the logistics and risks of a pullout within that time frame.
- The second option allows for about 23 months for combat forces to orchestrate the withdrawal. The advantage of this option is that it would give more time to gather and ship back to the U.S. an enormous stockpile of equipment. The extra time would also allow for a more thorough and organized pullout.
- The third option of a 19 month long pullout which represents a middle of the road approach between the two other options.
Obama knew it would be tough sledding when he made a campaign promise to withdraw from Iraq within 16 months. It`s a complicated conundrum for the President to consider how fast it is safe to withdraw the 14 combat brigades now there. The issue of troop withdrawal has to make way for the real issues of relieving stress on war-weary troops and their families; the possibility of escalating the war in Afghanistan, and remaining at the ready for random violence in the region.
Recent gains in the reduction of violence in Iraq may be jeopardized if security is not maintained. Political reconciliation may no longer be an option if sectarian violence escalates.
U.S. military commanders in Iraq and here in the U.S. question the possibility of long lasting stabilization in the region without combat assistance from U.S. and allied forces. Northern Iraq poses the most virulent threat as ethnic tensions between Arabs and Kurds could erupt with the insurgency factions that are still there.
- Obama Ordering Energy-Efficient Standards
- Obama Challenges Critics of Stimulus Plan
- New Health Care for Kids
President Obama has signalled that he wants the government to expedite enforcing higher efficiency standards for many household appliances like dishwashers, washers and microwave ovens. These standards improve everyday savings that people will feel the most quickly and directly.
There are already laws in place to govern new efficiency standards in household appliances; this is where the most immediate savings can be realized by home owners. The problem lies in the red tape and bureaucracy that had been the hallmark of the Bush presidency.
In fulfilling his campaign promise to improve energy efficiency Obama’s plans include a consultation with the Energy Department to re-organize some elements of their mandate and institute many of them ahead of schedule. It is Obama’s intention to have final rules in place by mid-August for a range of products that include: residential dishwashers, lamps, ranges and ovens, microwave ovens, commercial air-conditioning equipment, commercial boilers and beverage vending machines.
President Obama had already taken the lead towards allowing California and other states to regulate their own greenhouse gases through more stringent auto emission standards. There are also new federal rules in place requiring automakers to strictly follow the law and start making more fuel-efficient cars as required by existing law.
- Obama Challenges Critics of Stimulus Bill
President Obama once again warned that failure to act on a stimulus package now could tumble the nation into an all out recession that could be irreversible.
Today, the President had harsh words for Republicans saying criticism of his rescue plan for the U.S. economy marks the lack of understanding of just how desperate the circumstances are and that the diversion of theoretical debates is slowing down the most critical decisions in the history of the United States.
President Obama’s calls for Republicans to be part of the solution and not part of the problem have for the most part fallen on deaf ears. Republicans insist the stimulus plan is full of unnecessary Democratic spending and does not do enough to cut taxes.
Obama vehemently disagreed, saying Republicans were promoting a failed theory: "...the notion that tax cuts alone will solve all our problems; that we can meet our enormous tests with half-steps and piecemeal measures; that we can ignore fundamental challenges such as energy independence and the high cost of health care and still expect our economy and our country to thrive."
- Health Care for Uninsured Children
Yesterday Obama signed a bill extending health coverage to 4 million uninsured children. He called it a first step toward fulfilling a campaign pledge to provide insurance for all Americans. The United States does not have universal health care which is common in many countries, including Canada to the north.
"The way I see it, providing coverage to 11 million children through (the children's program) is a down payment on my commitment to cover every single American," Obama said happily at a White House bill-signing ceremony. About reforming the larger issue of health care reform, the President said. "It won't be easy; it won't happen all at once. But this bill that I'm about to sign, that wasn't easy either."
- European Union Sends Warning to U.S. Over Trade
- President Obama to Reconsider Some Trade Measures
President Obama’s Buy American policy has caused a flood of warnings and dire predictions from trading partners all over the world. Europe, the UK and Canada and Australia all expressed strong arguments against the embargo.
Restricting imports during a period of economic crisis is known as protectionism; a government closes trade between borders in order to provide its own workers with jobs and reduce unemployment so that spending is sparked and the economy can revive. This time it involves all goods and services related to iron and steel used in projects funded by the bail-out money of the stimulus package. That’s worth billions to U.S. trade partners.
But during the 1930’s Depression, the U.S invoked protectionism as the rescue strategy and it sent a shock wave around the world of commerce. It plunged the U.S. into an even greater financial collapse and is remembered today as the Great Depression.
John Bruton, the EU Ambassador to Washington referred to the Great Depression when he was quoted as saying “history has shown us” what results when protectionist measures are invoked. The U.K.s Prime Minister Gordon Brown is well known to be an anti-protectionism leader although he has not formally come out with a direct criticism of Obama’s strategy. However Bruton urged the U.S. to dismiss the idea since it is also in contravention of the terms of a decision adopted at the G20 meeting in November 2008.
The EU at large is not as reticent as PM Brown and has sent extremely dire warnings in letters to Congress, Treasury Secretary Tim Geithner and Secretary of State Hillary Clinton. Yesterday the European Union warned that such a protectionist stance by the U.S.at this time would send the global economy spiralling into a depression worse than that of the 1930s.
Canada’s Prime Minister Stephen Harper resisted calls from the NDP to retaliate with a Buy Canadian stance. Harper said: “The greatest ideological threat at this point in history is the threat of protectionism. That's the danger of this bill before the American Congress, and it's the reason why we're opposed to these measures.”
Meanwhile, President Obama has hinted that some of the restrictions may be modified. Obama said: “I agree that we can't send a protectionist message. I want to see what kind of language we can work on this issue. I think it would be a mistake, though, at a time when worldwide trade is declining, for us to start sending a message that somehow we're just looking after ourselves and not concerned with world trade."
In response to harsh criticism of protectionism President Obama conveyed some elements of the bill that could spark retaliation from U.S. allies could be modified so that: “I think we need to make sure that any provisions that are in there are not going to trigger a trade war.” Obama still hopes to have the bill ready for endorsement by mid February.
- Republican Senator Gregg named Head of Commerce Department
- Holder Sworn in as Attorney General
President Obama announced today that Republican Senator Judd Gregg has been named Commerce Secretary. Obama made the announcement saying “...now is not the time for partisanship” as the U.S. tries to shore up its economy and reassure the rest of the world.
"He is a master of reaching across the aisle to get things done. He will be an astounding addition, a trusted voice in my cabinet and an able and competent ambassador ... I can think of no finer steward for our nation's commerce," Obama said, joined by Senator Gregg at a White House announcement.
The President stated that the primary purpose of the Commerce Department is to promote jobs, industry, science and technology. "I believe that Judd Gregg is the right person to guide the department toward these goals," Obama said.
The White House confirmed late Monday that Gregg was going to be picked for the post and that he would accept the job if he's replaced by another Republican in the Senate.
"I want to thank the governor of New Hampshire for his courtesy and courage in being willing to make this possible through the agreement that we have relative to my successor in the Senate," Gregg said.
Gregg would be the third Republican to join Obama's cabinet, following the appointments of Defense Secretary Robert Gates and Transportation Secretary Ray LaHood.
Eric Holder, sworn in Tuesday as the 82nd attorney general, has said he will reform the Justice Department where there will be "no place for political favoritism."
"I am determined to ensure that this shall be a new day for the dedicated career professionals that I am so honored to call my colleagues," Holder told those gathered for the ceremony. He said he was committed to remaking the department "into what it once was and what is always should be."
Vice President Joe Biden administered the oath to Holder as the nation's top law enforcement officer and the first African-American to hold the post.
Biden said the department, under Holder, would return to a past standard of "no politics, no ideology; only a clear assessment of facts and law."
- Secretary of State Clinton to Visit Asian Allies
- Housing Crisis Sparks Stimulus Plan Changes
Secretary of State Hillary Rodham Clinton is planning her first major trip as America's top diplomat.
Clinton will visit with officials in Japan and South Korea, as well as China, on her first overseas mission. Other stops may be in the works but none have been confirmed.
The diplomatic trip reaffirms the Obama administration's commitment to help resolve the issue of nuclear proliferation in North Korea. The President and Secretary of State want to strengthen and maintain ties with Tokyo and Seoul. It is also hoped that talks with officials in Beijing will promote a future of expanded U.S. relations with that country.
On Friday, President Barack Obama spoke with Chinese President Hu Jintao saying he looked forward "to early contacts and exchanges between senior officials of our two countries," according to a White House spokesperson.
Secretary Clinton has a particular interest in Southeast Asia where Peace Corp programs were ceased in the mid-60s and which Clinton would like to see restarted. Indonesia is the world's largest Islamic country where President Obama spent his early childhood. Certainly a visit by Clinton would serve the administration’s commitment to the Muslim world that the U.S. is its ally.
Traditionally, a new Secretary of State would start diplomatic rounds in European or Middle East countries where relationships with the U.S. have been longstanding. However, Vice President Joe Biden heads to Europe this week for a security conference in Germany. Special Envoy George Mitchell has already been dispatched to the Middle East. This leaves Clinton free to develop stronger relationships in countries that were ignored by the Bush administration.
The U.S. housing crisis is so dire as to prompt calls for new provisions in the stimulus bill that directly address the housing crisis. Senators from both sides of the house have signalled their intention to insist on actions that would restart housing sales and protect the consumer from risk of foreclosure.
The Senate floor debate is expected to consider three emergency measures for inclusion in the economy rescue plan:
- Offering government-backed low-rate mortgages
- Expand home buyer credit
- Hold off on foreclosures with a 90 day moratorium
- Stimulus Plan Continues to Dominate The President’s Agenda
- Peaceful Election in Iraq a Good Sign
While the U.S. holds its collective breath waiting for Wednesday’s Senate vote on the stimulus bill, Democrats are hopeful that compromise with their Republican counterparts can get the bill through the Senate with ‘something for everyone’ at least in the minds of both Democrat and Republican moderates.
In the Senate debate, Republicans have a stronger voice that should ensure that some of their demands will be met at the end of the day. While facing Republican opposition in Congress, Obama's stimulus plan is being supported by most Republican governors because it would put billions of dollars in the state fund for education, public works and health care. State treasuries have been largely reduced by the financial crisis and support from Washington is critical for them.
The President hopes to have the plan passed by Congress and on his desk for signing by mid-February.
President Obama said today that the peaceful elections in Iraq are "good news" for the United States and its troops stationed there. Obama expressed hope that a large number of troops may be on home soil with a year.
In a nationally televised interview before the super Bowl President Obama said: "I think that you have a sense now that the Iraqis just had a very significant election with no significant violence that we are in a position to start putting more responsibility on the Iraqis and that's good news not only for the troops on the ground but for the families who are carrying an enormous burden.
The President expressed confidence that a large repatriation of troops from Iraq will be a reality in one year from now saying “Yes” to the question.
- Obama Considers Options for Afghanistan
- Senate to Vote on Stimulus Plan Next Week
President Barack Obama has turned his attention to Afghanistan with an internal review that will look at the strategies available to him in dealing with the continuing conflict. The findings of the analysis will help shape his response to resurgence in Taliban and Al-Qaida connected terrorist activity in that country and along the Pakistan border. White House Press Secretary Robert Gibbs reported last week: "There's not simply a military solution to that problem and Obama believes "that only through long-term and sustainable development can we ever hope to turn around what's going on there."
The President has indicated that he believes in the need for additional troops in order to battle the rise terrorist actions in Taliban and Al-Qaida strong holds. So far however the administration has not increased further the number of troops promised by the former Bush government of 30,000.
In the internal review, The President will be presented with an analysis of the conflict area in which neither side has the strong arm. It is expected that the U.S. will proceed with its plans to focus on achieving incremental gains on the diplomatic front while rooting out terrorist cells with military action.
President Obama clearly resists the idea of a rushed military solution although he has not ruled out putting more troops there. Military leaders need to focus their objectives in Afghanistan before additional numbers and types of military personnel are sent there.
Roberts Gibbs commented: "Fundamental changes are needed in U.S. strategy, force levels and aid effort to reverse years of inadequate and incompetent efforts."
The stimulus package continues to dominate the headlines with the Senate planning to commence its debate on Monday. The cost of the economic stimulus plan continues to rise and now stands at almost $900 billion. The vote is expected on Wednesday.
Today, President Obama told the public in his weekly radio address: "No one bill, no matter how comprehensive, can cure what ails our economy. So, just as we jump-start job creation, we must also ensure that markets are stable, credit is flowing and families can stay in their homes."
"Soon my treasury secretary, Tim Geithner, will announce a new strategy for reviving our financial system that gets credit flowing to businesses and families," the President said. "We'll help lower mortgage costs and extend loans to small businesses so they can create jobs. We'll ensure that CEOs are not draining funds that should be advancing our recovery. And we will insist on unprecedented transparency, rigorous oversight and clear accountability so taxpayers know how their money is being spent and whether it is achieving results."
"Rarely in history has our country faced economic problems as devastating as this crisis. Now is the time for those of us in Washington to live up to our responsibilities."
The GOP signalled their willingness to work with the Obama administration on the package but restated that there is too much spending in the House approved bill and their insistence on changing some of the elements of the plan is likely to have an effect on the final debate in the Senate.
- Geithner’s Appointment Gives Some Hope
- Taking Aim at Wall Street
Tim Geithner’s nomination for Treasury Secretary may not have happened were it not for his tenure at the New York Federal Reserve where he displayed his understanding and savvy on economic crises and how money should be spent.
With tax troubles of his own, it is an irony that Geithner has been confirmed Treasury Secretary. But most people consider his action as a simple and honest mistake that was discovered during the vetting process and Geithner was not trying to hide anything.
At this point the issue is a ‘red herring’ for anyone who has that kind of political appetite. For most people and for President Obama and his administration the new Treasury Secretary will play a key role in bringing about stabilization of the financial markets and in doing so reassure the nation that Washington has got it together to get through ‘the worst of times’.
Treasury Secretary Geithner indicates that said the administration is looking at a “range of options" that would quickly help troubled banks gain stabilization and stop the bleeding of the financial markets. Geithner said that the administration plans to lay out its proposals publicly "relatively soon."
Some of the alternatives to help banks of troubled mortgage assets may provide for additional capital infusions and/or guarantee the value of some bank holdings.
The ‘punishment’ that should take place with the big bonus takers on Wall Street is a delectable debate. Many people in the political landscape have said the only way to really make a point is to hit them where it hurts the most – their wallets. Many anticipate that Geithner has the stamina and moral fortitude to take aim at Wall Street.
