Showing posts with label Fiscal. Show all posts
Showing posts with label Fiscal. Show all posts

Monday, February 24, 2014

The world at war: The mind, journalism, freedoms... The Unsustainable Fiscal ‘Crisis’ of the Military’s Bloated Benefits

Soldiers


The Pentagon is planning cuts to the defense budget that are causing controversy on Capitol Hill, the New York Times reports.


Defense Secretary Chuck Hagel plans to shrink the United States Army to its smallest force since before the World War II buildup and eliminate an entire class of Air Force attack jets in a new spending proposal that officials describe as the first Pentagon budget to aggressively push the military off the war footing adopted after the terror attacks of 2001.


…The proposals are certain to face resistance from interest groups like veterans’ organizations, which oppose efforts to rein in personnel costs; arms manufacturers that want to reverse weapons cuts; and some members of Congress who will seek to block base closings in their districts.



Such proposals always get the defense industry lobbyists on Capitol Hill reeling. The notion that big corporations manufacturing death machines will stop getting paid exorbitant amounts of taxpayer cash for weapons systems that military officials say they don’t even want or need is appalling to them, parasites that they are.


But, according to an NPR report this morning, “the part of the Pentagon’s plan that might get the sharpest reaction is the military’s suggestions for ways to reduce the growth in spending on pay and benefits.”


…Pentagon officials warn that those costs “are eating us alive.” The average annual cost of pay and benefits for each active duty member of the military, for instance, has risen from about $ 54,000 a decade ago to $ 110,000 now, he said. The costs of health insurance and other benefits for retirees are also soaring.



The bloated salaries and benefits for the military, according to Chairman of the Joint Chiefs Gen. Martin Dempsey, “will become a crisis.” One official told NPR that the Pentagon is essentially becoming “a benefits organization that occasionally kills a terrorist.”


In a 2012 piece for Foreign Policy, Rosa Brooks – whose husband is a career Army officer - lamented America’s ”socialist military” and criticized the fact that “the average member of the military is paid better than 75 percent of civilian federal workers with comparable experience.” Members of the military and their families, she wrote, get “America’s most generous” and “arguably unsustainable” benefits programs.


As the spouse of a career Army officer, I’m stunned by the range of available benefits. Health care? Free! Groceries? Military commissaries save military families roughly 30 percent over shopping in civilian stores. Education benefits? Career personnel can expect the military to finance additional higher education, and the post-9/11 GI Bill provides up to 36 months of benefits to veterans, amounting, in effect, to full tuition and fees for four academic years. (The education benefit is also transferable to dependents.)


Housing? Free on base and subsidized off-base (the housing allowance goes up with family size: from each according to his ability, to each according to his need). Pensions? After 20 years of service, military personnel can retire and immediately begin to receive, at the ripe old age of 40 or so, an annual pension equal to half their salary — for the rest of their lives. Anyone who thinks socialism failed in America has never spent time on a military base.



Cutting expensive and unnecessary weapons systems cuts to the heart of the nuts and bolts of rent-seeking politics in Washington. But cutting veterans benefits becomes an emotional issue for people, and thus may be very difficult to get past Congress.


These benefits are inordinate, unfair, and unsustainable. Military service is endlessly praised as the ultimate sacrifice for the country. But when you strip away the propagandistic state doctrine, military service is simply a commitment to kill strangers on the orders of politicians in Washington. I can’t for the life of me figure out why that deserves such disproportionate financial benefits.




Antiwar.com Blog



The world at war: The mind, journalism, freedoms...

The Unsustainable Fiscal ‘Crisis’ of the Military’s Bloated Benefits

Wednesday, November 27, 2013

Hawaii among 13 ‘turkeys’ for fiscal management

Hawaii among 13 ‘turkeys’ for fiscal management
http://isbigbrotherwatchingyou.com/wp-content/uploads/2013/11/5746f__nsa__Screen-shot-2013-11-27-at-7.34.13-AM-300x217.png



BIG BIRD: Hawaii designated as one of 13 “turkey states” for fiscal management.



By Malia Zimmerman | Watchdog.org


HONOLULU — Turkeys may be the best thing on the Thanksgiving table, but they aren’t the smartest bird in the tree.


A new report from Truth in Accounting’s State Data Lab names Hawaii one of 13 “Turkey States” because the state spent more money than it received and racked up more debt for future taxpayers.


But that’s nothing new. Every year since 2008, Hawaii has spent more than it takes in, according to Sheila Weinberg, founder and CEO of Truth in Accounting. (See Hawaii ‘Net Revenue’ 2005-2012).


“State budgeting practices lack truthfulness, timeliness and transparency, allowing elected officials to claim they ‘balance’ the budget, while actually over-spending yearly income,” Weinber said.


“In addition to yearly spending deficits, Hawaii’s pension and retirement health obligations have grown from $ 12.8 billion in 2009 to $ 20.45 billion in 2012.  Future Hawaii taxpayers may inherit a large ‘credit card’ balance, even though they did not enjoy today’s services on the tab.”


Hawaii joins New Jersey, Illinois, New York, Massachusetts, Louisiana, Kentucky, West Virginia, Maryland, Connecticut, Pennsylvania, California and Delaware on the turkey list.


Kalbert Young, director of finance at the Hawaii Depaprtment of Budget and Finance, said it is all how you look at the numbers.


In fiscal year 2012, Hawaii’s general fund revenue was $ 5.6 billion compared to actual expenditures of $ 5.51 billion, with a positive ending balance of 275 million dollars, Young said.


However, the state’s Comprehensive Annual Financial Report, said total revenue was $ 8.25 billion verses the total expenses of $ 8.78 billion, for a negative balance of $ 529.9 million, Young said.


“The biggest difference is going to be inclusion of accrual items that are not present on a pure cash basis, such as what the budget and fiscal execution of the budget is based on,” Young said. “The big one is the accrual of unfunded liabilities, or the Annual Required Payments towards (other post-employment benefits). Also, Statement of Net Assets also includes such typical business items as depreciation and accrued payroll.”


Reach Malia Zimmerman at Malia@hawaiireporter.com



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Saturday, November 9, 2013

CORRECTED (OFFICIAL)-Mexico has scope for further fiscal reform -S&P

CORRECTED (OFFICIAL)-Mexico has scope for further fiscal reform -S&P
http://currenteconomictrendsandnews.com/wp-content/uploads/2013/11/6eb2f__p-89EKCgBk8MZdE.gif




Sat Nov 9, 2013 1:04pm EST



(Corrects paragragph six to show tax reform proposal was a “disappointment” to the market, not to the analyst)


By Alexandra Alper


MEXICO CITY Nov 7 (Reuters) – Mexico has room for further fiscal reform to improve its tax base because a bill passed by Congress last week still leaves it well behind countries with stronger revenues, credit ratings agency Standard & Poor’s said on Thursday.


Mexico’s Congress approved a package of measures last week, including higher taxes for the rich and levies on junk food and stock market gains in a bid to increase the country’s paltry tax take, one of the weakest in the Americas.


Before the tax reform was presented in September, senior officials in President Enrique Pena Nieto’s Institutional Revolutionary Party (PRI) said the aim was to boost revenues by four percent of gross domestic product.


But the bill that was eventually floated was less ambitious. And the reform approved is only expected to up the take by around 2.5 percent of GDP by 2018, the finance ministry said.


The government avoided a political hot potato by not imposing a sales tax on food and medicine, a measure seen by many economists as fundamental to strengthening the tax base.


S&P sovereign credit analyst Lisa Schineller, an expert on Latin America, told Reuters the fact that this was not included in the reform was a “disappointment” to the market.


While such sources of revenue remained untapped, there was “certainly scope” for further reform, she said.


With the new reform, excluding tax revenue from state oil monopoly Pemex – which generates about one third of federal tax income – Mexico’s tax take would be only about 13 percent of GDP, Schineller said.


“That is still a low tax base internationally,” she said.


FURTHER REFORM NOT EXPECTED


Schineller said she did not expect Mexico to propose further reform soon and the Finance Ministry has already played down the possibility of seeking to widen sales tax during Pena Nieto’s administration, which still has five years to run.


S&P, which rates Mexico one notch lower than other major ratings agencies at BBB, downgraded Mexico in 2009 after the previous president failed to widen the country’s tax base.


The ratings agency revised up its outlook for Mexico’s sovereign debt in March to positive from stable.


Schineller repeated that any S&P upgrade would depend on the implementation of the fiscal reform, and a pending bill aimed at boosting oil production.


That bill, proposed by Pena Nieto in August, aims to open up the state-controlled oil sector by allowing private companies to enter into profit-sharing contracts with Pemex.


Lawmakers in the ruling PRI say the reform could still go further than that, opening up the possibility of production-sharing contracts to oil majors.


“To the degree that you leave as many options open in the form of contracts, that is probably more positive,” Schineller said.


Fitch, which rates Mexico BBB-plus, is also of the view that the new reform cannot by itself dramatically improve Mexico’s tax take.


“The gap between Mexico’s revenue base and that of the BBB category is still quite substantial,” Fitch senior ratings analyst Shelly Shetty told Reuters earlier this week.


“And no one single attempt at tax reform is going to materially improve or bridge this gap because the gap is still quite substantial,” Shetty added. (Editing by Dave Graham and David Brunnstrom)






Reuters: Bonds News




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CORRECTED-Mexico has scope for further fiscal reform -S&P

CORRECTED-Mexico has scope for further fiscal reform -S&P
http://currenteconomictrendsandnews.com/wp-content/uploads/2013/11/5155c__p-89EKCgBk8MZdE.gif



Thomson Reuters is the world’s largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.


NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.




Reuters: Bonds News




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Friday, October 25, 2013

US fiscal cliff, a political jockeying: Dr Paul Craig Roberts

US fiscal cliff, a political jockeying: Dr Paul Craig Roberts
http://thedailynewsreport.com/wp-content/uploads/2013/10/17481_PressTVGlobalNews_default.jpg



US fiscal cliff, a political jockeying: Dr Paul Craig Roberts

A former US Assistant Treasurer says the US Fiscal cliff is mainly hoax and that it amounts to a mere one tenth of the growth of the US public Debt per year….
Video Rating: 4 / 5




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Saturday, October 19, 2013

Americans find little to cheer in deal to end fiscal crisis: poll



Americans find little to cheer in deal to end fiscal crisis: poll

Avoiding Fiscal Catastrophe


Saying government spending is out of control is an understatement on the scale of saying that Michael Jordan was a good basketball player or Babe Ruth hit some home runs.


Thanks to unbridled spending, corporate bailouts, and the takeover of the best health-care system in the world, America stands on the verge of a financial cliff that endangers our future, our children’s future, and our grandchildren’s future.


But it doesn’t have to be this way. Here is a series of reforms that can help us avoid fiscal catastrophe:


Enact spending caps. Washington has no enforceable limits on its spending. As long as Congress remains under pressure to spend, members need annual spending caps to help them set annual priorities and make the necessary trade-offs.


Congress should enact a firm cap on the annual increase in total government spending, limited to inflation plus population growth. It should also include triggers and other protections to prevent lawmakers from bypassing this cap.


Rein in entitlements. Social Security, Medicare and Medicaid are driving long-term deficit growth. It is impossible to rein in runaway spending significantly without fundamentally reforming these programs.


Empower states. Washington taxes families, subtracts a hefty administrative cost, and sends the remaining revenues back to state and local governments with specific rules dictating how to spend the money.


Instead of performing many functions poorly, Congress should focus on performing a few functions well. Most highway, education, justice and economic development programs should be devolved to state and local governments, which have the flexibility to tailor local programs to local needs.


Empower the private sector. Anyone who has dealt with the post office or lived in public housing knows how wasteful, inefficient and unresponsive government can be. Government ownership of business also crowds out private companies and encourages protected entities to take unnecessary risks.


After promising profits, government-owned businesses frequently lose billions of dollars, leaving taxpayers to foot the bill. Any government function that can be found in the yellow pages should be a candidate for privatization.


Ban corporate welfare. Even before the financial bailouts, Washington spent more on corporate welfare ($ 90 billion) than on homeland security ($ 70 billion). Americans should not be taxed to subsidize profitable companies. Lawmakers could start by reforming America’s largest corporate welfare program: farm subsidies, which are overwhelmingly distributed to large, profitable agribusinesses rather than struggling family farmers. Other programs, such as the Advanced Innovation Program (formerly the Advanced Technology Program) should be cut.


Eliminate pork and waste. Each year, Washington loses billions of dollars to payment errors and pays billion more to maintain vacant federal properties. Washington also diverts about $ 20 billion annually into pork projects, corrupting the legislative process by assigning taxpayer dollars on the basis of lobbying rather than merit.


Bring federal pay into line with the private sector. Besides doing too many things, best left to the private sector and the states, the federal government pays its employees substantially more than they would earn in the private sector. Total compensation — hourly wages plus benefits — is 30 to 40 percent above that of comparable private-sector workers. Aligning federal compensation with market rates would save taxpayers about $ 47 billion annually.


Without serious planning and foresight, America’s future will be grim. The unrest in Europe in recent years, from Greece to Great Britain, is a warning, a crystal ball through which we can see what might well happen to us should we succumb to the temptations of irresponsible government. 




RealClearPolitics – Articles



Avoiding Fiscal Catastrophe

Avoiding Fiscal Catastrophe


Saying government spending is out of control is an understatement on the scale of saying that Michael Jordan was a good basketball player or Babe Ruth hit some home runs.


Thanks to unbridled spending, corporate bailouts, and the takeover of the best health-care system in the world, America stands on the verge of a financial cliff that endangers our future, our children’s future, and our grandchildren’s future.


But it doesn’t have to be this way. Here is a series of reforms that can help us avoid fiscal catastrophe:


Enact spending caps. Washington has no enforceable limits on its spending. As long as Congress remains under pressure to spend, members need annual spending caps to help them set annual priorities and make the necessary trade-offs.


Congress should enact a firm cap on the annual increase in total government spending, limited to inflation plus population growth. It should also include triggers and other protections to prevent lawmakers from bypassing this cap.


Rein in entitlements. Social Security, Medicare and Medicaid are driving long-term deficit growth. It is impossible to rein in runaway spending significantly without fundamentally reforming these programs.


Empower states. Washington taxes families, subtracts a hefty administrative cost, and sends the remaining revenues back to state and local governments with specific rules dictating how to spend the money.


Instead of performing many functions poorly, Congress should focus on performing a few functions well. Most highway, education, justice and economic development programs should be devolved to state and local governments, which have the flexibility to tailor local programs to local needs.


Empower the private sector. Anyone who has dealt with the post office or lived in public housing knows how wasteful, inefficient and unresponsive government can be. Government ownership of business also crowds out private companies and encourages protected entities to take unnecessary risks.


After promising profits, government-owned businesses frequently lose billions of dollars, leaving taxpayers to foot the bill. Any government function that can be found in the yellow pages should be a candidate for privatization.


Ban corporate welfare. Even before the financial bailouts, Washington spent more on corporate welfare ($ 90 billion) than on homeland security ($ 70 billion). Americans should not be taxed to subsidize profitable companies. Lawmakers could start by reforming America’s largest corporate welfare program: farm subsidies, which are overwhelmingly distributed to large, profitable agribusinesses rather than struggling family farmers. Other programs, such as the Advanced Innovation Program (formerly the Advanced Technology Program) should be cut.


Eliminate pork and waste. Each year, Washington loses billions of dollars to payment errors and pays billion more to maintain vacant federal properties. Washington also diverts about $ 20 billion annually into pork projects, corrupting the legislative process by assigning taxpayer dollars on the basis of lobbying rather than merit.


Bring federal pay into line with the private sector. Besides doing too many things, best left to the private sector and the states, the federal government pays its employees substantially more than they would earn in the private sector. Total compensation — hourly wages plus benefits — is 30 to 40 percent above that of comparable private-sector workers. Aligning federal compensation with market rates would save taxpayers about $ 47 billion annually.


Without serious planning and foresight, America’s future will be grim. The unrest in Europe in recent years, from Greece to Great Britain, is a warning, a crystal ball through which we can see what might well happen to us should we succumb to the temptations of irresponsible government. 




RealClearPolitics – Articles



Avoiding Fiscal Catastrophe

Sunday, October 13, 2013

Lawmakers hope Senate leaders can break fiscal impasse as deadline looms



Lawmakers hope Senate leaders can break fiscal impasse as deadline looms

Friday, October 11, 2013

Obama and Republicans struggle to break fiscal deadlock


Tuesday, September 17, 2013

On Fifth Anniversary Of Fiscal Crisis, The Economy Grows Worse


Honey I Shrunk The Economy SC On fifth anniversary of fiscal crisis, the economy grows worse


Black unemployment spike to 13 percent.


Labor force participation rate plunges to 35-year low.


Hispanic unemployment higher now than in April.


WASHINGTON – On the fifth anniversary of the current fiscal crisis, the nation’s economy is getting worse under Barack Obama, according to an objective mathematical measurement of the nation’s economic indicators released Monday by Congressman Steve Stockman (R-Texas 36.)


The economy continues to fail to recover under Obama as Obama’s Failometer Score grew to a punishing 1,222 last month. This is the third straight month Obama’s Failometer score has grown, and his 1,222 for August is the second-highest score this year.


Obama can set the Failometer to zero simply by outperforming George W. Bush on the economy and fulfilling his 2008 and 2012 campaign promises to help blacks and Hispanics gain economically.


“For the third consecutive month Obama’s economic failures are getting worse,” said Stockman “The percentage of working-age American with jobs has plunged to Jimmy Carter-era depths, we aren’t creating enough jobs to restore the economy and black unemployment is growing again.”


“Hispanic unemployment is higher now than it was in April.  Black unemployment is growing again. He has yet to grow enough monthly jobs to even get back to a pre-recession economy. An objective mathematical measure of Obama’s economic policies shows he’s blazing a new path of failure.”


The Obama Failometer uses a fixed mathematical score to calculate four economic indicators from the Bureau of Labor Statistics.  The figures from the monthly reports are weighted to provide a balanced total score, which ranges from zero to 1,000. A score of 0 represent economic stability and racial equality. The higher the score, the deeper the economic failure.


So far, Obama is worse than Bush.


Since its creation, Obama has failed to generate a Failometer score that can be contained within the chart’s range of zero to 1000.


The Obama Failometer Score was originally displayed on a ten-foot-long billboard displayed in the hallways of the Capitol’s Cannon House Office building.  House officials ordered it torn down in January after Democrats complained.


Here is how the Obama Failometer Score is calculated:


FACTORS MEASURED AGAINST BUSH


Monthly jobs created: The Hamilton Project, a liberal economic policy group, stated last year the economy must create 321,000 jobs a month in order to return the economy to pre-recession employment levels by December 2016, the end of Obama’s term.


As the economy continues to flounder under Obama, that number has grown; but the Obama Failometer will continue to use it, which gives him some statistical relief.


Obama promised to not only restore the economy to where it was under Bush, but grow it.  So far, Obama has failed to even perform as well as Bush.


This Obama Failometer score portion is calculated by subtracting the number of jobs created in the previous month from the 321,000 jobs claimed necessary by the liberal Hamilton Project and dividing by 1,000 to balance it against other factors.


The BLS reports the economy created 169,000 jobs last month, 152,000 fewer than needed to restore the economy.  This portion of the Obama Failometer Score is 152.


Civilian labor force participation rate:  The civilian labor force participation rate, the ratio between those 16 and over in the labor force against the national population of those 16 and over, is an important measure of economic health.  After puttering along during the Bush administration, including through the “Bush years” of the recession, under Obama, it has plunged sharply.


This Obama Failometer score portion is calculated by subtracting the monthly civilian labor force participation rate from the average Bush administration rate and multiplying by 100 to balance it against other factors. According to data from the BLS, under Bush, the average monthly civilian labor force participation rate was around 66.2 percent.


The Bureau of Labor Statistics reports that the monthly civilian labor force participation rate last month fell to 63.2 percent, the worst rate since August 1978 and 3.0 percent worse than Bush’s average of 66.2 percent.  This portion of the Obama Failometer Score is 300.


FACTORS MEASURED AGAINST OBAMA’S OWN RHETORIC


Black unemployment:  No one has suffered more economically under Obama than black Americans. Obama’s election and re-election has meant crippling poverty for the black community.


This Obama Failometer score portion is calculated by taking the monthly unemployment rate for blacks and subtracting the monthly unemployment rate for all Americans, and multiplying it by 100 to balance it against other factors.


The Bureau of Labor Statistics reports the black unemployment rate last month ballooned to 13.0 percent, while the national overall rate was 7.3 percent.  That is a gap of 5.7 percent. This portion of the Obama Failometer Score is 570.


Compare Obama’s performance to Bush’s.  The highest monthly unemployment rate ever for blacks under Bush was 12.1 percent.  Obama’s lowest rate is now 12.6 percent in July.  He has never performed as well as Bush’s worst black unemployment rate.


Bush’s average black unemployment rate was 9.7 percent and an overall national average of 5.2 percent, a 4.5 percent gap that gives Bush a score of 450.


Hispanic unemployment:  Despite winning the Hispanic vote, Obama’s liberal policies have caused widespread damage to the Hispanic community.  Thanks to Obama, they continue to lag behind the national average in many economic factors.


This Obama Failometer score portion is calculated by taking the monthly unemployment rate for Hispanics and subtracting the monthly unemployment rate for all Americans, and multiplying it by 100 to balance it against other factors.


The Bureau of Labor Statistics reports the Hispanic unemployment rate last month grew to a stunning 9.3 percent, while the national overall rate was 7.3 percent.  That is a gap of two percent.  This portion of the Obama Failometer Score is 200.


The Hispanic unemployment rate hit its all-time historic low of 4.7 percent during Bush’s last term.  It is almost twice that rate under Obama.


THEREFORE, THIS MONTH’S OBAMA FAILOMETER SCORE IS 1,222.


Photo credit: terrellaftermath


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Western Journalism



On Fifth Anniversary Of Fiscal Crisis, The Economy Grows Worse

On Fifth Anniversary Of Fiscal Crisis, The Economy Grows Worse


Honey I Shrunk The Economy SC On fifth anniversary of fiscal crisis, the economy grows worse


Black unemployment spike to 13 percent.


Labor force participation rate plunges to 35-year low.


Hispanic unemployment higher now than in April.


WASHINGTON – On the fifth anniversary of the current fiscal crisis, the nation’s economy is getting worse under Barack Obama, according to an objective mathematical measurement of the nation’s economic indicators released Monday by Congressman Steve Stockman (R-Texas 36.)


The economy continues to fail to recover under Obama as Obama’s Failometer Score grew to a punishing 1,222 last month. This is the third straight month Obama’s Failometer score has grown, and his 1,222 for August is the second-highest score this year.


Obama can set the Failometer to zero simply by outperforming George W. Bush on the economy and fulfilling his 2008 and 2012 campaign promises to help blacks and Hispanics gain economically.


“For the third consecutive month Obama’s economic failures are getting worse,” said Stockman “The percentage of working-age American with jobs has plunged to Jimmy Carter-era depths, we aren’t creating enough jobs to restore the economy and black unemployment is growing again.”


“Hispanic unemployment is higher now than it was in April.  Black unemployment is growing again. He has yet to grow enough monthly jobs to even get back to a pre-recession economy. An objective mathematical measure of Obama’s economic policies shows he’s blazing a new path of failure.”


The Obama Failometer uses a fixed mathematical score to calculate four economic indicators from the Bureau of Labor Statistics.  The figures from the monthly reports are weighted to provide a balanced total score, which ranges from zero to 1,000. A score of 0 represent economic stability and racial equality. The higher the score, the deeper the economic failure.


So far, Obama is worse than Bush.


Since its creation, Obama has failed to generate a Failometer score that can be contained within the chart’s range of zero to 1000.


The Obama Failometer Score was originally displayed on a ten-foot-long billboard displayed in the hallways of the Capitol’s Cannon House Office building.  House officials ordered it torn down in January after Democrats complained.


Here is how the Obama Failometer Score is calculated:


FACTORS MEASURED AGAINST BUSH


Monthly jobs created: The Hamilton Project, a liberal economic policy group, stated last year the economy must create 321,000 jobs a month in order to return the economy to pre-recession employment levels by December 2016, the end of Obama’s term.


As the economy continues to flounder under Obama, that number has grown; but the Obama Failometer will continue to use it, which gives him some statistical relief.


Obama promised to not only restore the economy to where it was under Bush, but grow it.  So far, Obama has failed to even perform as well as Bush.


This Obama Failometer score portion is calculated by subtracting the number of jobs created in the previous month from the 321,000 jobs claimed necessary by the liberal Hamilton Project and dividing by 1,000 to balance it against other factors.


The BLS reports the economy created 169,000 jobs last month, 152,000 fewer than needed to restore the economy.  This portion of the Obama Failometer Score is 152.


Civilian labor force participation rate:  The civilian labor force participation rate, the ratio between those 16 and over in the labor force against the national population of those 16 and over, is an important measure of economic health.  After puttering along during the Bush administration, including through the “Bush years” of the recession, under Obama, it has plunged sharply.


This Obama Failometer score portion is calculated by subtracting the monthly civilian labor force participation rate from the average Bush administration rate and multiplying by 100 to balance it against other factors. According to data from the BLS, under Bush, the average monthly civilian labor force participation rate was around 66.2 percent.


The Bureau of Labor Statistics reports that the monthly civilian labor force participation rate last month fell to 63.2 percent, the worst rate since August 1978 and 3.0 percent worse than Bush’s average of 66.2 percent.  This portion of the Obama Failometer Score is 300.


FACTORS MEASURED AGAINST OBAMA’S OWN RHETORIC


Black unemployment:  No one has suffered more economically under Obama than black Americans. Obama’s election and re-election has meant crippling poverty for the black community.


This Obama Failometer score portion is calculated by taking the monthly unemployment rate for blacks and subtracting the monthly unemployment rate for all Americans, and multiplying it by 100 to balance it against other factors.


The Bureau of Labor Statistics reports the black unemployment rate last month ballooned to 13.0 percent, while the national overall rate was 7.3 percent.  That is a gap of 5.7 percent. This portion of the Obama Failometer Score is 570.


Compare Obama’s performance to Bush’s.  The highest monthly unemployment rate ever for blacks under Bush was 12.1 percent.  Obama’s lowest rate is now 12.6 percent in July.  He has never performed as well as Bush’s worst black unemployment rate.


Bush’s average black unemployment rate was 9.7 percent and an overall national average of 5.2 percent, a 4.5 percent gap that gives Bush a score of 450.


Hispanic unemployment:  Despite winning the Hispanic vote, Obama’s liberal policies have caused widespread damage to the Hispanic community.  Thanks to Obama, they continue to lag behind the national average in many economic factors.


This Obama Failometer score portion is calculated by taking the monthly unemployment rate for Hispanics and subtracting the monthly unemployment rate for all Americans, and multiplying it by 100 to balance it against other factors.


The Bureau of Labor Statistics reports the Hispanic unemployment rate last month grew to a stunning 9.3 percent, while the national overall rate was 7.3 percent.  That is a gap of two percent.  This portion of the Obama Failometer Score is 200.


The Hispanic unemployment rate hit its all-time historic low of 4.7 percent during Bush’s last term.  It is almost twice that rate under Obama.


THEREFORE, THIS MONTH’S OBAMA FAILOMETER SCORE IS 1,222.


Photo credit: terrellaftermath


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Western Journalism



On Fifth Anniversary Of Fiscal Crisis, The Economy Grows Worse

On Fifth Anniversary Of Fiscal Crisis, The Economy Grows Worse


Honey I Shrunk The Economy SC On fifth anniversary of fiscal crisis, the economy grows worse


Black unemployment spike to 13 percent.


Labor force participation rate plunges to 35-year low.


Hispanic unemployment higher now than in April.


WASHINGTON – On the fifth anniversary of the current fiscal crisis, the nation’s economy is getting worse under Barack Obama, according to an objective mathematical measurement of the nation’s economic indicators released Monday by Congressman Steve Stockman (R-Texas 36.)


The economy continues to fail to recover under Obama as Obama’s Failometer Score grew to a punishing 1,222 last month. This is the third straight month Obama’s Failometer score has grown, and his 1,222 for August is the second-highest score this year.


Obama can set the Failometer to zero simply by outperforming George W. Bush on the economy and fulfilling his 2008 and 2012 campaign promises to help blacks and Hispanics gain economically.


“For the third consecutive month Obama’s economic failures are getting worse,” said Stockman “The percentage of working-age American with jobs has plunged to Jimmy Carter-era depths, we aren’t creating enough jobs to restore the economy and black unemployment is growing again.”


“Hispanic unemployment is higher now than it was in April.  Black unemployment is growing again. He has yet to grow enough monthly jobs to even get back to a pre-recession economy. An objective mathematical measure of Obama’s economic policies shows he’s blazing a new path of failure.”


The Obama Failometer uses a fixed mathematical score to calculate four economic indicators from the Bureau of Labor Statistics.  The figures from the monthly reports are weighted to provide a balanced total score, which ranges from zero to 1,000. A score of 0 represent economic stability and racial equality. The higher the score, the deeper the economic failure.


So far, Obama is worse than Bush.


Since its creation, Obama has failed to generate a Failometer score that can be contained within the chart’s range of zero to 1000.


The Obama Failometer Score was originally displayed on a ten-foot-long billboard displayed in the hallways of the Capitol’s Cannon House Office building.  House officials ordered it torn down in January after Democrats complained.


Here is how the Obama Failometer Score is calculated:


FACTORS MEASURED AGAINST BUSH


Monthly jobs created: The Hamilton Project, a liberal economic policy group, stated last year the economy must create 321,000 jobs a month in order to return the economy to pre-recession employment levels by December 2016, the end of Obama’s term.


As the economy continues to flounder under Obama, that number has grown; but the Obama Failometer will continue to use it, which gives him some statistical relief.


Obama promised to not only restore the economy to where it was under Bush, but grow it.  So far, Obama has failed to even perform as well as Bush.


This Obama Failometer score portion is calculated by subtracting the number of jobs created in the previous month from the 321,000 jobs claimed necessary by the liberal Hamilton Project and dividing by 1,000 to balance it against other factors.


The BLS reports the economy created 169,000 jobs last month, 152,000 fewer than needed to restore the economy.  This portion of the Obama Failometer Score is 152.


Civilian labor force participation rate:  The civilian labor force participation rate, the ratio between those 16 and over in the labor force against the national population of those 16 and over, is an important measure of economic health.  After puttering along during the Bush administration, including through the “Bush years” of the recession, under Obama, it has plunged sharply.


This Obama Failometer score portion is calculated by subtracting the monthly civilian labor force participation rate from the average Bush administration rate and multiplying by 100 to balance it against other factors. According to data from the BLS, under Bush, the average monthly civilian labor force participation rate was around 66.2 percent.


The Bureau of Labor Statistics reports that the monthly civilian labor force participation rate last month fell to 63.2 percent, the worst rate since August 1978 and 3.0 percent worse than Bush’s average of 66.2 percent.  This portion of the Obama Failometer Score is 300.


FACTORS MEASURED AGAINST OBAMA’S OWN RHETORIC


Black unemployment:  No one has suffered more economically under Obama than black Americans. Obama’s election and re-election has meant crippling poverty for the black community.


This Obama Failometer score portion is calculated by taking the monthly unemployment rate for blacks and subtracting the monthly unemployment rate for all Americans, and multiplying it by 100 to balance it against other factors.


The Bureau of Labor Statistics reports the black unemployment rate last month ballooned to 13.0 percent, while the national overall rate was 7.3 percent.  That is a gap of 5.7 percent. This portion of the Obama Failometer Score is 570.


Compare Obama’s performance to Bush’s.  The highest monthly unemployment rate ever for blacks under Bush was 12.1 percent.  Obama’s lowest rate is now 12.6 percent in July.  He has never performed as well as Bush’s worst black unemployment rate.


Bush’s average black unemployment rate was 9.7 percent and an overall national average of 5.2 percent, a 4.5 percent gap that gives Bush a score of 450.


Hispanic unemployment:  Despite winning the Hispanic vote, Obama’s liberal policies have caused widespread damage to the Hispanic community.  Thanks to Obama, they continue to lag behind the national average in many economic factors.


This Obama Failometer score portion is calculated by taking the monthly unemployment rate for Hispanics and subtracting the monthly unemployment rate for all Americans, and multiplying it by 100 to balance it against other factors.


The Bureau of Labor Statistics reports the Hispanic unemployment rate last month grew to a stunning 9.3 percent, while the national overall rate was 7.3 percent.  That is a gap of two percent.  This portion of the Obama Failometer Score is 200.


The Hispanic unemployment rate hit its all-time historic low of 4.7 percent during Bush’s last term.  It is almost twice that rate under Obama.


THEREFORE, THIS MONTH’S OBAMA FAILOMETER SCORE IS 1,222.


Photo credit: terrellaftermath


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Western Journalism



On Fifth Anniversary Of Fiscal Crisis, The Economy Grows Worse

Friday, September 13, 2013

Dems dredge up Vitter prostitution scandal – BOEHNER SEEKS DEMS" HELP IN FISCAL TALKS – Zients to succeed Sperling – REID"S SYRIA WHIPLASH – Pete King goes his own way in "16 run


By Scott Wong (swong@politico.com or @scottwongDC)


DEMS DREDGE UP VITTER PROSTITUTION SCANDAL – Manu Raju and John Bresnahan have the scoop for POLITICO: “Senate Democrats have had all they can take from David Vitter and his fixation on Obamacare — and they’re dredging up his past prostitution scandal to hit back. Vitter, a Louisiana Republican, has infuriated Democrats this week by commandeering the Senate floor, demanding a vote on his amendment repealing federal contributions to help pay for lawmakers’ health care coverage. But Democratic senators are preparing a legislative response targeting a sordid Vitter episode. If Vitter continues to insist on a vote on his proposal, Democrats could counter with one of their own: Lawmakers will be denied those government contributions if there is ‘probable cause’ they solicited prostitutes.


– “According to draft legislation obtained by POLITICO, Democrats are weighing whether to force a Senate vote on a plan that would effectively resurrect Vitter’s past if the conservative Republican continues to press forward with his Obamacare-bashing proposal. Such a hardball move could bring back uncomfortable memories of the 2007 ‘D.C. Madam’ scandal in which Vitter’s phone number turned up in a Washington-based prostitution ring. Vitter apologized for committing a ‘very serious sin’ but did not elaborate. … It’s unclear which Democratic senator will offer the plan or whether a vote will ever come to pass. It was drafted by staff in response to requests by several Democratic senators. And sources say it was discussed at a Senate Democratic lunch on Thursday.


–“‘Harry Reid is acting like an old-time Vegas mafia thug, and a desperate one at that,’ Vitter said in a statement to POLITICO, referring to the Senate majority leader. ‘This just shows how far Washington insiders will go to protect their special Obamacare exemption.’” http://politi.co/14LKNIn


– THE DEBATE on the underlying Shaheen-Portman energy bill has “devolved into an accidental collision between Obamacare and the Keystone XL pipeline,” write POLITICO’s Darren Goode and Andrew Restuccia. “On one side is Sen. David Vitter (R-La.), who has halted action on a bipartisan energy-efficiency bill while demanding a vote on an unrelated Obamacare measure. On the other is Sen. John Hoeven (R-N.D.), who wants to use the energy bill as a vehicle for a pro-Keystone amendment that he’s crafted to make as much bipartisan noise as possible. They can’t both get what they want — unless Democratic leaders cave in to Vitter’s demands, which they showed no signs of doing. So the energy bill is in limbo.” http://politi.co/1812j8u


MILITANTS ATTACKED the U.S. consulate in Afghanistan, killing two Afghan policemen and injuring dozens of others. All consulate personnel are safe and accounted for. The L.A. Times: http://lat.ms/1bcjLvR


REBUILT AFTER SANDY, N.J. BOARDWALK GOES UP IN FLAMES – Kate Zernike “Nearly a year after Hurricane Sandy devastated the Jersey Shore, a boardwalk that was just rebuilt was ravaged by fire on Thursday, as a blaze that began at an iconic ice cream shop quickly engulfed businesses along a stretch of beach in two towns.  Flames and black plumes of smoke shot high above the Boardwalk in Seaside Park, where the fire began after 2 p.m. Within hours, strong gusts of wind swept the fire north along the adjoining Boardwalk of Seaside Heights, where a roller coaster had sat mangled in the ocean for months and became a symbol of the storm’s damage.  Funtown Pier, nearly destroyed by the hurricane, collapsed in flames. And nearby, the fire appeared to have ruined a historic carousel that had been painstakingly restored after the storm and reopened just months ago. In all, about 20 businesses over a six-block stretch were almost completely destroyed, Gov. Chris Christie of New Jersey said at a news conference. Local officials suggested that number was too low.  … “When he heard the news, the governor said, ‘I said to my staff, ‘I feel like I want to throw up.’” http://nyti.ms/1bd1xKE


** A message from the Reagan Presidential Foundation: Registration has opened for “The Reagan National Defense Forum: Building Peace Through Strength Through 2025.” Speakers include Secretary Chuck Hagel, General Martin Dempsey, Secretary John McHugh, Admiral Jonathan Greenert, SASC Chairman Carl Levin and HASC Chairman “Buck” McKeon.


FEC: BOEHNER DONORS MAY HAVE EXCEEDED LIMITS – Jessica Wehrman writes in the Columbus Dispatch: “The Federal Election Commission is questioning House Speaker John Boehner about $ 64,000 in excess campaign contributions, according to a letter the bipartisan panel sent to Boehner this week. Under federal campaign-finance law, lawmakers can receive donations from individuals of up to $ 2,500 for a primary and $ 2,500 for a general election. Political-action committees can donate twice that amount. The letter references donations mostly made at the end of 2011 and questions contributions from three individuals and six political-action committees. The individual donations came from a Rockport, Maine, retiree; an Arlington, Va., telecom lobbyist; and a former chairman of the Chicago Mercantile Exchange. … The letter also questions whether Boehner failed to refund or redesignate other potentially excessive contributions within the required 60-day limit, listing 10 individual donors whose refunds or redesignations might not have been issued by that deadline. … Cory Fritz, a Boehner spokesman, said the campaign would respond to the letter. ‘We take compliance with FEC rules and regulations seriously, and will take all corrective action necessary,’ Fritz said.” http://bit.ly/1814rwP


NYT, A1, “Boehner Seeking Democrats’ Help on Fiscal Talks,” By Jonathan Weisman: “With Congress momentarily freed from the Syrian crisis, lawmakers plunged back into their bitter fiscal standoff on Thursday as Speaker John A. Boehner appealed to the Obama administration and Democratic leaders to help him resolve divisions in the Republican ranks that could lead to a government shutdown by month’s end. In meetings with Democratic and Republican Congressional leaders on Thursday after a session with Treasury Secretary Jacob J. Lew on Wednesday, Mr. Boehner sought a resumption of negotiations that could keep the government running and yield a deficit-reduction deal that would persuade recalcitrant conservatives to raise the government’s borrowing limit.


– “Much of the federal government will shut down as of Oct. 1 unless Congress approves new spending bills to replace expiring ones, and by mid-October, the Treasury Department will lose the borrowing authority to finance the government and pay its debts. … Mr. Lew and Congressional Democrats held firm that they would no longer negotiate on raising the debt ceiling, which they see as the duty of the party in power in the House. And they made it clear to the speaker that they would never accept Republican demands to repeal, defund or delay Mr. Obama’s signature health care law. White House officials dismissed it as ‘a nonstarter.’” http://nyti.ms/13VDqvj


JEFF ZIENTS will succeed Gene Sperling as the chief White House economic adviser, the NYT’s Jackie Calmes reports. Zients did two stints as the president’s acting budget director. http://nyti.ms/14LRbPI


– Minority Whip John Cornyn of Texas, the No. 2 Senate Republican, says he would oppose Larry Summers if he’s tapped to lead the Fed, the WSJ reports: http://on.wsj.com/1e7IDWs


TRANSITIONS – Ian Sams, press secretary for Sen. Tom Carper (D-Del.), is making the jump to the DNC as regional press secretary. A colleague emails: “He’s a proud Tennessean, graduate of the University Alabama, and diehard Alabama football fan (Roll Tide indeed).” He celebrated last night with friends and colleagues at Vendetta on H Street.


IT’S A GLOOMY FRIDAY THE 13TH THIS MORNING IN D.C. but cooler weather has arrived. Welcome to The Huddle, your play-by-play preview of the day’s congressional news. Send tips, suggestions, comments, complaints and corrections to swong@politico.com. If you don’t already, please follow me on Twitter @scottwongDC.


My new followers include @smahaskey and @PhilGordonPHX


TODAY IN CONGRESS – Both the House and Senate are out today.


AROUND THE HILL – Former Rep. Barney Frank, former House Ways and Means Chairman Bill Thomas and Douglas Holtz-Eakin, former commissioner of the Financial Crisis Inquiry Commission and former CBO director, speak on a panel entitled “After the Fall: Five Years After Lehman’s Collapse, Where Are We Now?,” hosted by the American Action Network, at noon in Rayburn B318.


POLL: GOP SEES UPTICK ON KEY ISSUES – Neil King Jr. reports for the Wall Street Journal: “The Republican Party is gaining a public-opinion edge on several key issues ahead of the 2014 elections, as Americans question President Barack Obama’s leadership on Syria and worry about the country’s overall direction, a new Wall Street Journal/NBC News poll shows. Republicans are now rated higher than Democrats on handling the economy and foreign policy, and the GOP’s lead has strengthened on several other issues, including dealing with the federal deficit and ensuring a strong national defense. On topics such as health care, Democrats have seen their long-standing advantage whittled to lows not seen in years.” http://on.wsj.com/180qQul


Las Vegas Sun, “Obama gave Reid political whiplash on Syria,” By Karoun Demirjian: “As senate majority leader, part of Harry Reid’s unofficial job description is to work the Democratic president’s policies through the Congress. But in the past few days, President Barack Obama’s official stance on striking Syria has changed with enough frequency to give Reid political whiplash on a very public stage. The president and his team really dumped a bad one on him this time,’ said Jim Manley, Reid’s former communications director. ‘When the president asks him to do something he’s going to try to get it done … but he got caught in the whipsaw, the back-and-forth that went on last week.’ Reid was the first of the congressional leaders to make an official speech [on Syria] Monday But within a few hours, Russian officials announced that they had struck a deal with Syria, under which Syrian President Bashar Assad would turn over all of his chemical weapons. Obama had known the Russians were working the deal — but apparently, had kept it quiet. And Reid was forced to backpedal fast. He took the planned Syria vote off the Senate’s calendar Monday night, and by Tuesday, Reid had edited his firm conviction to allow for giving peace a chance.


– “But aides admit it’s been a whirlwind. And unlike other cases in which White House policy has evolved – as it did during recent debates about the fiscal cliff and gun control — Reid’s traditional vote-rustling strategies didn’t present a workable solution in this fight.” http://bit.ly/1eKPiVz


RUBIO RESPONDS TO PUTIN – Sen. Marco Rubio (R-Fla.) writes in National Review: “In this morning’s New York Times, Russian president Vladimir Putin argued that America is not exceptional, and that American leadership does not make the world safer. I could not disagree more strongly. While Russia and the U.S. did work together to defeat the Nazis in World War II as Putin points out, our histories since then tell two very different stories. While strong U.S. leadership rebuilt a free and prosperous Western Europe after the war, the Soviet Union did the opposite, spreading a Communist ideology that imprisoned people behind walls and on islands. The U.S. won the Cold War because of our willingness to lead the free world, and today we remain the world’s sole super power. The question facing our nation now is whether we will continue to lead in the future. I believe we must.” http://bit.ly/15nNHl1


– Speaker John  Boehner told reporters he was “insulted” after reading the much-talked-about op-ed: http://politi.co/18WcbR8


PETE KING GOES HIS OWN WAY IN ’16 RUN – POLITICO’s Katie Glueck in Wolfeboro, N.H.: “ Presidential hopefuls don’t typically open their sales pitch by promoting policies that voters overwhelmingly oppose or by knocking their own party almost as much as the other one. Peter King is not your typical presidential hopeful. The brash Republican congressman from Long Island has been making the rounds in New Hampshire, pressing for military action in Syria — which about one in three Americans support — and warning against growing isolationist sentiment at home, symbolized by the rise of libertarian-leaning Sen. Rand Paul (R-Ky.). At stops around the state last weekend, King charged that President Barack Obama’s approach ‘is weakening the office of the president of the United States’ …And his keen focus on national security when poll after poll indicates the country has turned inward after a dozen years of war isn’t the kind of message likely to fire up the Republican faithful.


– “But for King, that message is the point. His main motivation is unmistakable: pushing back against what he sees as a ‘dangerous’ strain of isolationism that’s gaining strength in the GOP. Trips to early states like New Hampshire make him not just a ‘Republican congressman’ in the media but also a “potential 2016 candidate” — giving him a bigger megaphone to drive his message.” http://politi.co/189Pwyf


OBAMA’S GOP COUSIN MAY PRIMARY ROBERTS – Our own James Hohmann and Manu Raju report: “Barack Obama’s second cousin once removed, is laying the groundwork for a potential Republican primary challenge against Kansas Sen. Pat Roberts next year. Milton Wolf has been gauging support, sources told POLITICO, sending an email to GOP activists the last week of August asking them to get in touch if they want more senators like Ted Cruz, Mike Lee and Rand Paul. Wolf, a 42-year-old practicing radiologist, accused Roberts of raising the debt ceiling, bailing out Wall Street and supporting earmarks. He noted that Roberts said recently that he does not see a way out of using military force in Syria and endorsed former Kansas Democratic Gov. Kathleen Sebelius to be secretary of Health and Human Services. … The president’s great-great-grandfather, Thomas Creekmore McCurry, is Wolf’s great-grandfather. His mother was five years older than Obama’s mother, and he writes on his Website that the two were childhood friends in Wichita.” http://politi.co/1aH0vas


CONGRESS APPROVAL RATING ACTUALLY IMPROVES – Sean Sullivan writes in the Washington Post: “How poor a job is Congress doing in the eyes of the American public? So poor that fewer than one in five Americans approve — and that’s actually GOOD news for Capitol Hill lawmakers. Congress’ approval rating jumped up five points from 14 percent to 19 percent during the last month, according to a Gallup poll released Wednesday. It’s the highest number since October of 2012. (Of course, “highest” is a relative term given how low the numbers have been.) So why the jump? Gallup suggests it could be related to President Obama asking Congress to approve military action against Syria. (That ask is currently on hold.) Americans strongly oppose a strike, and Congress has been very skeptical, too.” http://wapo.st/15VjFHL


THURSDAY’S TRIVIA WINNER – We had another tie: Colleen Shogan and Michael Quigley both correctly answered seconds apart that two former first ladies are buried in Arlington Cemetery: Jacqueline Kennedy Onasis and Helen Herron Taft.


TODAY’S TRIVIA – Colleen Shogan has today’s question: In honor of Yom Kippur, who was the first Jewish member of Congress?  And what district did he represent? The first person to correctly answer gets a mention in the next day’s Huddle. Email me at swong@politico.com.


GET HUDDLE emailed to your Blackberry, iPhone or other mobile device each morning. Just enter your email address where it says “Sign Up.” http://www.politico.com/huddle/


** A message from the Reagan Presidential Foundation and Library: The Reagan National Defense Forum on November 16, 2013 is bringing together leaders and key stakeholders in the defense community – including members of Congress, civilian officials and military leaders from the Defense Department and industry – to address the health of our national defense and to stimulate a discussion that promotes policies that strengthen the United States military into the future.  Registrations is $ 499 per person. For more information and tickets, please visit www.ReaganFoundation.org/Defense.  


The program includes a keynote address by General Dempsey, remarks by Secretary Hagel, and multiple panels including “Counterterrorism in 2025,” “Congress, Industry and the Pentagon” and “The Industrial Base After a Decade of War.”


“My husband would be so pleased to know that his ‘Peace Through Strength’ policies are being discussed again with a focus on today’s new technology and tomorrow’s needs.” – Former First Lady Nancy Reagan




POLITICO – Top 10 – Huddle



Dems dredge up Vitter prostitution scandal – BOEHNER SEEKS DEMS" HELP IN FISCAL TALKS – Zients to succeed Sperling – REID"S SYRIA WHIPLASH – Pete King goes his own way in "16 run