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US Hits Debt Ceiling Dec. 31st; Geithner Sends Letter to Congress

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As the country approaches the ‘”fiscal cliff” on January 1st, the U.S. debt limit also reaches it mandatory limit on New Year’s Eve, compounding the nation’s fiscal house of business

This morning the U.S. Department of Treasury released Secretary Timothy Geithner’s letter sent to Congressional leaders yesterday warning that the U.S. debt limit will reach its mandatory ceiling on December 31st.  In an appendix attached, Geithner’s explains the “extraordinary measures” his office will take to create a $200 billion fund in “headroom” to keep the government under the debt limit, allowing the US to meet its legal obligations for about 60 days.

But Geithner’s letter issues a caveat by insisting these measures may not cover all fiscal bases, given the looming fiscal cliff deadlines:  “However, given the significant uncertainty that now exists with regard to unresolved tax and spending policies for 2013, it is not possible to predict the effective duration of these measures.”

His letter follows in its entirety:

December 26, 2012

The Honorable Harry Reid

Majority Leader

United States Senate

Washington, DC  20510

Dear Mr. Leader:

I am writing to inform you that the statutory debt limit will be reached on December 31, 2012, and to notify you that the Treasury Department will shortly begin taking certain extraordinary measures authorized by law to temporarily postpone the date that the United States would otherwise default on its legal obligations.

These extraordinary measures, which are explained in detail in an appendix​ to this letter, can create approximately $200 billion in headroom under the debt limit.  Under normal circumstances, that amount of headroom would last approximately two months. However, given the significant uncertainty that now exists with regard to unresolved tax and spending policies for 2013, it is not possible to predict the effective duration of these measures.  At this time, the extent to which the upcoming tax filing season will be delayed as a result of these unresolved policy questions is also uncertain. If left unresolved, the expiring tax provisions and automatic spending cuts, as well as the attendant delays in filing of tax returns, would have the effect of adding some additional time to the duration of the extraordinary measures.  Treasury will provide more guidance regarding the expected duration of these measures when the policy outlook becomes clearer.

Sincerely,

Timothy F. Geithner

Identical letter sent to:

The Honorable John A. Boehner, Speaker of the House

The Honorable Nancy Pelosi, House Democratic Leader

The Honorable Mitch McConnell, Senate Republican Leader

cc:  The Honorable Dave Camp, Chairman, House Committee on Ways and Means

The Honorable Sander M. Levin, Ranking Member, House Committee on Ways and Means

The Honorable Max Baucus, Chairman, Senate Committee on Finance

The Honorable Orrin Hatch, Ranking Member, Senate Committee on Finance

All other Members of the 112th Congress

The Senate has reconvened and Majority Leader Harry Reid hopes to send a measure to the House of Representatives that can garner bi-partisan support to avoid the fiscal cliff, not withstanding the possibility that Republican Senator Mitch McConnell could filibuster.  But be prepared to get out your checkbooks fellow taxpayers. Happy New Year America!

316568_10150308241032334_651712333_8318983_213496096_nTanya L. Domi is the Deputy Editor of the New Civil Rights Movement blog.  She is also an Adjunct Assistant Professor of International and Public Affairs at Columbia University and teaches human rights in East Central Europe and former Yugoslavia.  Prior to teaching at Columbia, Domi was a nationally recognized LGBT civil rights activist who worked for the National Gay and Lesbian Task Force during the campaign to lift the military ban in the early 1990s. Domi has also worked internationally in a dozen countries on issues related to democratic transitional development, including political and media development, human rights and gender issues.  She is chair of the board of directors for GetEQUAL.  Domi is currently writing a book about the emerging LGBT human rights movement in the Western Balkans.

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Judge Tosses Kennedy Center’s Lawsuit Against Artist Who Canceled Over Trump’s Name

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A judge on Friday tossed out a lawsuit brought by the Kennedy Center against an artist who withdrew from a performance after the organization’s board voted to add President Donald Trump’s name to the venue, The Washington Post reports.

The artist, jazz musician Chuck Redd, pulled out over what he called “the defiant and illegal name change happening to the Kennedy Center,” according to the Post.

But, as D.C. Superior Court Judge Tanya Jones Bosier found, Kennedy Center officials had not made a legally binding agreement with Redd, and there could be no breach of contract claim as a result.

“There’s no dispute that he did not sign the 2025 agreement,” the judge said.

In a statement, Redd’s attorney, Lisa Banks, said Redd had been sued “because he publicly and rightly objected to adding Donald Trump’s name to the Kennedy Center, a living memorial to former President John F. Kennedy.”

Banks called the lawsuit “political retribution, pure and simple, by the Trump Kennedy Center,” and said that “the Court correctly saw it as such in dismissing the case with prejudice.”

According to the Post, after Redd withdrew, then-Kennedy Center president Richard Grenell said in a letter to Redd, “This is your official notice that we will seek $1 million in damages from you for this political stunt.”

In December, Redd told the Associated Press, “When I saw the name change on the Kennedy Center website and then hours later on the building, I chose to cancel our concert.”

On Thursday, the general counsel for the John F. Kennedy Center for the Performing Arts ordered Trump’s name to “immediately” be removed from the building after a federal judge found adding the president’s name to the Center was unlawful, The New York Times reported.

“The memo gave staff members detailed instructions on the materials that needed to be updated, including social media accounts, email signatures and voice mail messages,” the Times reported. “It specified that outdoor and indoor signage with the barred name must be altered by June 12.”

Late last month, a federal judge ordered that President Donald Trump could not rename the Kennedy Center, nor could he close it for what the Trump administration said were two years of renovations.

“The Kennedy Center’s organic statute makes crystal clear that the Center is to be named for President Kennedy, and it cannot bear any other formal name or public memorial based on the Board’s unilateral say-so,” the judge wrote, CNBC reported. “Congress gave the Kennedy Center its name, and only Congress can change it.”

 

Image via Reuters 

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How ‘Inept’ Trump Is Getting ‘Worse at All of This’: Political Scientist

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“All presidents lose. Trump loses more often, on more things, than most,” says political scientist Jonathan Bernstein in a written conversation with New York Times Opinion editor John Guida.

Bernstein argues that Trump is an “inept” president who “actually gets worse at all of this as he goes along.”

“Trump thinks winning elections is like winning a prize — the United States of America — to do with as he pleases,” he writes. “But what actually happens in elections is that the voters hire you to do a job. It’s a job with some 340 million bosses. And like all jobs, it has constraints and obligations.”

Trump “just doesn’t see that,” says Bernstein, who also notes that “Trump has hardly had a week where his approval exceeded his disapproval.”

What Trump is actually good at is being “a really good reality TV star.”

“He’s very good at grabbing attention,” which “can help a president set the agenda,” Bernstein says. “Political scientists have found that presidents aren’t very good at changing what people think, but they can be good at changing what people think about.”

Trump has been good at creating “a Democratic Party eager to fight — and that may even, in time, undermine the 50 years of successful G.O.P. gains in the courts,” but he has not worked to get his agenda passed in Congress.

“With the power to set the agenda, skilled presidents can get things done: by pressing Congress to vote on something they would rather not vote on or by pressing the bureaucracy to pay attention to their directives,” says Bernstein. “Trump is an inept president, so he mostly squanders the attention he gets — and at least half the time, he winds up drawing attention to things that don’t help him at all.”

Trump has not been successful at getting Congress to pass his most important legislation: the SAVE America Act, or at getting the Senate to kill the filibuster. Recently, even some GOP lawmakers crossed the aisle in a significant rebuke of the president — namely the War Powers Act legislation — and some have balked at Trump’s $1.8 billion anti-weaponization fund.

Meanwhile, “Trump has managed to do a lot of damage that will be truly hard to undo,” says Bernstein. “Legal talent has drained from the Justice Department. The same thing is happening virtually everywhere in the federal Civil Service, especially after work force cuts.”

It will “take time to rebuild,” but it will “be hard for any future president to recover from the foreign policy debacles,” he warns.

 

Image via Reuters 

 

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Why James Carville Says Voters Should Back Graham Platner — Despite His ‘Flaws’

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Democratic political consultant James Carville wants Maine voters to back Graham Platner despite the candidate’s flaws — and partly because of some of them. Platner is currently the likely Democratic nominee in Maine’s U.S. Senate race. If Platner wins the primary, he will face Republican Senator Susan Collins, who was first elected in 1996.

“I understand he’s f—— up,” said Carville on his Politicon podcast. “Yeah, maybe we need a combat veteran right on that Senate floor, who is f—— up.”

Carville berated Senator Collins by calling her “the most pliable member in the history of the United States Senate.”

He warned that he believes the country is “in imminent peril — I mean, imminent peril,” and asked: “Who is most likely to slow this criminal in charge?”

“I think it’s Graham Platner.”

“I ask all of you to understand his flaws, and understand the peril that this nation is in, and maybe he might be the right guy at the right time,” said Carville.

“Graham Platner grew up, I think, pretty privileged,” Carville said, sharing some of the likely Democratic nominee’s backstory. “He went to some kind of fancy fancy boarding school. He graduated, he joined the United States Marine Corps. He was in for eight years. He had three combat deployments. He gets out of the Marine Corps, and he goes to GW.”

Then Platner “joined the Maryland National Guard. Oh, you know what happened? He gets deployed a fourth time.”

“He’s f—— up,” said Carville. “He’s been shot at. He’s a veteran. All right? He’s got a little bit weird. He’s an oysterman. I know what oystermen do. I live in Louisiana. I think that oyster harvesting is the same the world over, it’s hard a—— work.”

Carville acknowledged that he has concerns, but said that maybe senators “need to look at this guy before they start sending young people off to fight wars, and see what the consequence of it is. Maybe he ought to run and say, ‘You don’t know, I’m gonna be on a veterans affairs committee, and I wanna be on a mental health subcommittee, ’cause I know something about… Yeah, I might be five degrees off dead center. So f—— what?’ They need that.”

He said he doesn’t agree with Platner’s economic stances, that they are “to the left of anything I’d say I’m for.”

“But you know what? He recognizes this horrific inequality in this country. And it actually would do some good to have somebody in there.”

Carville called Platner’s tattoo “very troubling.”

He said, “what I have to consider first, is this country is about to lose it. The whole goddamn thing.”

“Okay, we gotta win this,” Carville concluded. “And if we got a person who’s understandably got issues, yeah, good. And maybe people ought to see it, and maybe we ought to just be reminded of what these stupid wars have brought about in the consequence of said stupid wars. It’s [what] stupid Susan Collins been for all her political life.”

 

Image via Reuters 

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