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Entries in economy (141)

Tuesday
May052009

DOD Official: Sailors Should Fight Somali Pirates Themselves

By Michael Ruhl, University of New Mexico - Talk Radio News Service

The most effective way to deal with piracy off of the Somali coast is for the sailors to defend themselves, according to a Defense Department representative testifying to the Senate Armed Services Committee today.

Michele Flournoy, Under Secretary of Defense for Policy, said that of the recent pirate attacks in Somalia the most effective means of fending off the pirates came from actions taken by the crews themselves.

“The single most effective short-term response to piracy will be working with merchant shipping lines to ensure that vessels in the region take appropriate security measures themselves,” Flournoy said. She continued that it is not possible for the U.S. military to prevent or intervene in every pirate attack, but if crews take appropriate measures, “the vast majority of pirate attacks can be thwarted without any need for military intervention.”

There were 122 attempted pirate attacks in 2008, of which only 42 resulted in crewmembers becoming captured. Of the unsuccessful attacks, 78 percent of them were stopped by the crews actions, with the others being stopped by military intervention, according to Flournoy.

Flournoy divided crew countermeasures into two categories: passive and active defense measures. Passive measures are those which don’t necessarily require direct confrontation with the pirates, and can include physical obstructions to boarding points, avoiding high-risk waters, creating fortified “safe rooms” in the ship, posting lookouts at all times, and maintaining contact with maritime security forces. Active defense measures can include using fire hoses and small arms to repel pirates and a military presence on the boat. Both of these defensive measures are important for crews to talk to defend themselves, Flournoy said.

She believes that the complexity of this situation necessitates a multifaceted approach, which is why the aforementioned measures should be combined with greater military patrols and economic development. Additionally, the Defense Department would like to see more states willing to prosecute the pirates. Presently, Kenya is one of the only nations to actually place Somali pirates on trial.

According to Flournoy, since August 2008 36 pirate vessels have been destroyed or confiscated, small arms have been seized, and 146 pirates have been turned over to law enforcement officers.
Thursday
Apr302009

Chrysler Throws In The Towel

By Suzia van Swol, University of New Mexico-Talk Radio News Service
One-time giant Chrysler filed for bankruptcy protection today, but President Obama says he has every confidence it will emerge from this process stronger and more competitive.

After speaking with the President today, U.S. Rep. Marcy Kaptur (D-OH) said that the auto industry is important to the U.S. defense industrial base and the economic power of Northern Ohio. “Most important are the 30,000 jobs saved at Chrysler,” said Kaptur.

Kaptur said that the auto industry was brought down by Wall Street and it deserves to flourish. “The government will stand behind the working capital for Chrysler in the form of working capital and loans,” said Kaptur.

Striking comparison with other bailouts, Kaptur said that if you look at who got the big money, “the AIG gets 70 billion, one company?” She went on to say that TARP should have been opened up for vehicle sales
and for the financing of dealership showroom floors. Instead, there was a total credit strangle hold, which still is impacting this industry, and unemployment started to tick up all across the country.

The federal bankruptcy court will ultimately determine Chrysler’s immediate future, but Jeeps might still get a chance to four-wheel over mountains.
Thursday
Apr302009

“The Most Dangerous Credit Card in the History of the World”

By Michael Ruhl, University of New Mexico – Talk Radio News Service

"The Most Dangerous Credit Card in the World">
House Minority Leader John Boehner (R-Ohio)
Photo by Michael Ruhl
House Minority Leader John Boehner (R-Ohio) called congressional voting cards “the most dangerous credit card in the history of the world”, because then enable Congress and the president to engage in reckless spending. This was not Boehner's first criticism of Obama, but his statement came on the 101st day of the Obama Administration, a time which Boehner has criticized as being pock marked with excessive borrowing, reckless spending and a massive growth in government.

Boehner said that Democrat’s “record on spending and debt is staggering, but our economy is growing weaker, and it’s not going to get any better by growing the size of the government here in Washington.”

Boehner believes that the Democratically controlled Congress has enabled and contributed to the recklessness, and thinks it is up to the Republicans to put a stop to it. Republicans must be “the party of better solutions” if they are going to stand up to the Democrats in Congress, Boehner said, adding that he hopes Democrats will be committed to a bipartisan policy approach..

Citing the elections of 2008, Boehner said “out brand has been tarnished”, but to help the party serve the American people, Republicans must stand up to the Obama Administration when disagreements arise, and to offer alternative solutions.

Leader Boehner applauded President Obama on his strategy towards Afghanistan and Iraq, but showed concern at Obama’s greater national security policy.

“The big question continues to be: what is the Administration’s overarching plan to fight terrorism? Judging from their recent decision to release 30 terrorist detainees with no plan on where to put them, it continues to beg the question,” referring to Obama’s closure of the Guantanamo Bay detention center without knowing where the detainees will be sent.
Thursday
Apr302009

The Cost Of Swine Flu Unknown

By Kayleigh Harvey - Talk Radio News Service

A hearing on the economic outlook turned to swine flu today and raised the question “are we ready to cover the costs?”

Dr. Christina Romer, Chair of the Council for Economic Advisors, came to the House Joint Economic with upbeat news that, “during the first one hundred days if the Obama administration...the Recovery Act has already saved or created about 150,000 jobs,” said Romer. Adding “that most of the benefits of the Recovery Act are yet to come... our
estimates remain that the American Recovery and Reinvestment Act spending will create or save 3.5 million jobs before the end of next year.”

This information was over-shadowed however when Congressman Vic Snyder (D-Ark.) turned the topic to the developing outbreak of swine flu. He asked Dr. Romer, “How should we view the added uncertainty in the economy both here and abroad that may be created the threat of a major health flu pandemic around the world?”

Romer said that swine flu was of “major concern” to the administration. In terms of the economic effects caused by a swine flu pandemic, Romer said effects would depend on “how severe it is,” and that they are working on collating information concerning the swine flu outbreak. At the moment the true cost factor looked “uncertain,” said Romer.

Adding to her point Romer said, “uncertainty is probably the biggest effect at this point. Whether it will make consumers nervous. Whether it will, you know, government will have to take actions, that unfortunately will have economic consequences, that is what we are facing.”

Closing on this topic Romer stressed, that the top priority of the administration was to, “do whatever it takes to ensure that lives are saved.”

The cost of the swine flu pandemic to the American citizen remains unknown until the severity of the outbreak unveiled.
Tuesday
Apr282009

The Budget: A "Transformative Package"

by Christina Lovato, University of New Mexico-Talk Radio News Service

This afternoon, on the eve of President Obama’s 100th day in office, progressive leaders addressed the budget and how it will improve health care, clean energy and education.

The campaign to Rebuild and Renew America Now!, a coalition of 116 national and over 700 state and local progressive, labor and advocacy organizations working together to pass the President’s budget held a press conference this afternoon and said they are confident that Congress will do what is best for the American people, and that is to pass it.

Alan Charney, the Program Director for US Action said that the budget is “transformative.”

“This blueprint totally reverses the failed economic policies of the past and sets us on a road to long term recovery,” said Charney

Tom McMahon, the Acting Executive Director of Americans United for Change criticized the Conservatives and blamed them for leading our nation into one of the most deepest recession in decades.

“Their best and in fact, only prescription for this ailing economy is more and more tax breaks for big corporations that have outsourced American jobs and more tax breaks for multi-millionaires that never manage to trickle down to anyone else and more short change investments in things that will actually grow the economy, like health care and education,” said McMahon.

The coalition members said that a clean energy legislation, health care reform and education are the most pressing issues that they hope the budget will improve.

“Congress now has the choice to stand up for our students and vote for a budget that works or they can continue to play into the pockets of the student lenders,” said Carmen Berkley, the President of the United States Student Association (USSA) and the United States Student Association Foundation (USSAF).

Berkley said that student lenders are ruining credit and dreams of students who are wanting to go to college.

Berkley also said that by eliminating programs that don’t work, like the family federal education loan program, it will put $94 billion more into the Pell grant program for students.

“We know that Congress will make an investment in students this week that works for students and their families,” said Berkley.
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