"Voice Of America" Heard Loud And Clear

By Samira Sadeque

Republican leaders are being vocal on the heels of Tuesday’s election applauding the American people for ensuring that their voices were heard across the country.

Sen. Mitch McConnell (R-Ky.) said if Republicans and Democrats want to “meet in the middle,” Democrats must learn to listen to the American people. 

“[The voters] yesterday made a clear statement about what they’d like to see done,” McConnell said. “We hope that [Democrats] will pivot in a different direction and work with us on things that the President said he is for, and most of my members are for.”

Ohio Republican and, in all likelihood, the next House Speaker John Boehner said in the aftermath of Tuesday’s victory, the time for action is now.

“This is a time for us to roll up our sleeves and go to work on the people’s priorities: creating jobs, cutting spending and reforming the way Congress does its business,” Boehner said. “Its not just what the American people are demanding, it’s what they are expecting from us.”

The top House Republican touted their “Pledge To America” saying it emphasized focus on the priorities of the American people.

“The new majority of Congress will be the voice of the American people and we clearly expressed that last night,” Boehner said.

Faulty Buildings Not Bullets Killing American Soldiers

By Jonathan Bronstein, Talk Radio News

Senator Byron Dorgan

Ryan Masseth, a Staff Sergeant in the United States Army, was killed not by an enemy bullet, but by faulty electrical wiring. He was electrocuted while showering on a United States military installation in Baghdad during January 2008.

Yet, the company who wired the building, Kellogg, Brand and Root, also known as KBR, was aware of this issue some 11 months before Staff Sgt. Masseth’s death. The U.S. government recently reclassified Staff Sgt. Masseth’s death as accidental to gross negligence on the part of KBR.

“KBR’s shoddy electrical work wasted tax payer money,” said Senator Frank Lautenberg (D-N.J.) at the Senate Democratic Policy Committee hearing, who continued to say, “and even worse put our service members at risk, sometimes for their lives. 18 people died as a result of this negligence.”

Senator Byron Dorgan (D-N.D.), Chairman of the Senate Democratic Policy Committee, was critical of the government for giving bonuses to KBR from 2004 to 2008 that totaled some $85 million, even though their work failed often to meet even the most basic standards.

The Army’s standard definition for awarding bonuses requires that the contractor's “performance is of the highest quality that could be achieved under the contract. There are no areas of deficiencies or problems encountered during the evaluation period.”

The 2008 edition of the Defense Contract Management Report found that there were 26,205 incidents of improper wiring, 4,571 incidents of outlet box hazards, and 3,201 hazardous switches and fuses. All of these safety deficiencies pose an unneeded threat to American service people, according to Dorgan.

KBR Master Electrician, Eric Peters, estimated that 50 percent of all buildings were not wired properly, and it often took several visits before KBR’s poorly trained electricians could fix the problem. Each one of these visits was charged to the U.S. government, and therefore to the American taxpayer.

Lautenberg attributed KBR’s ability to obtain these large bonuses to the no-bid contracts given to corporations for the reconstruction of Iraq.

“I knew I could no longer work for a company so completely focused on the bottom line they would disregard the safety of their employees and those we were serving: our soldiers,” said Peters, who left KBR two months after being hired.

Jim Childs, another Master Electrician who worked for KBR, had similar gripes with the company and their complete disregard for safety.

“KBR did not do this work to any electrical code,” said Childs.

KBR even attempted to switch to the more lenient British electrical code, but upon re-inspecting the wiring according to the newly implemented standards he still discovered multiple violations.

Childs cited examples of safe buildings that KBR retrofitted and became dangerous, when he said “what had been a safe, properly wired building became a danger to those inside because the re-wiring performed by KBR was not done properly.”

When Childs attempted to solve the wiring problems with quick and cheap solutions, KBR refused to listen and wanted to re-wire the entire building, at the expense of the tax payer.

Childs travelled to Afghanistan to inspect KBR’s work their, but to his dismay, “I found the exact same code violations.”

This wiring situation, according to Childs, is an epidemic that needlessly endangers the lives of American servicemen and women.

Much like its own employees, the Department of Defense is also losing confidence in KBR’s ability.

Captain David Graff, Commander of Defense Contract Management Agency, said that “Many within the Department of Defense have lost or are losing all remaining confidence in KBR’s ability to successfully and repeatedly perform the required electrical support services mission in Iraq.”

Obama Wants You to Go Back to School

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

President Barack Obama
Photo by Michael Ruhl

Today President Barack Obama announced a new effort to stimulate tomorrow’s economy by reviving higher education through expanding Pell Grants and removing barriers to success. The public face for his new initiative is to be Dr. Jill Biden, wife of Vice-President Joe Biden and Community College Professor.

Obama’s plan, detailed at opportunity.gov, would help the unemployed go back to school to build new skill sets, with the goal of helping them gain future employment through specialized technical training.

“The idea here is to fundamentally change our approach to unemployment in this country, so that it’s no longer just a time to look for a new job, but is also a time to prepare yourself for a better job,” Obama said. “Our unemployment system should be not just a safety net, but a stepping stone to a new future.”

Among the barriers to success that the President wants to break down are state programs in which a worker might lose temporary financial support if they were to enroll in an education program. Obama said that in some places a worker may be unemployed, but may not qualify for federal assistance to get an education because of the salary they had a year ago but no longer make. The President said that he is committed to working with states to change these laws.

The President said that knowledge is the most valuable skill that one can sell. He encouraged all Americans to aim for getting at least 1 year of higher education, whether it is a community college, a four year school, vocational training or an apprenticeship.

“By 2020, America will once again have the highest proportion of college graduates in the world,” Obama said optimistically.

This announcement came on the same day as the release of April’s unemployment statistics, which saw the loss of more than half a million jobs. The unemployment rate for April was 8.9 percent, up from 8.5 percent in March and 8.1 percent in February. April's numbers have already surpassed both the White House's and the Federal Reserve's projections for all of 2009, which were 8.1 percent and 8.8 percent, respectively.

Acknowledging that unemployment is as its highest rate in 25 years, the President urged patience, reminding us that the economic problems didn’t happen overnight, and couldn’t be fixed immediately.

“We’re still in the midst of a recession that was years in the making and will be months or even years in the unmaking,” Obama said. He continued, “We should expect further job losses in the months to come.”

Obama said that the Economic Stimulus Package is yielding real results, manifest in higher consumer spending and home sales, and an increase in construction spending. He praised the Recovery Act, and said, “Because of this plan, cops are still on the beat and teachers are still in the classroom; shovels are breaking ground and cranes dot the sky; and new life has been breathed into private companies.”

Fixing the economy and reforming education are two goals Obama has set for his administration. He said that in the weeks to come he would start working towards more education initiatives.

The Senate Rebuilds Pakistan

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

Senator John Kerry (D-Mass.)
Photo by Michael Ruhl

In the next 5 years, the Pakistani infrastructure will be fortified by almost $10 billion American dollars, if Senators John Kerry (D-Mass.) and Richard Lugar (R-Ind.) have anything to say about it. The aptly titled Kerry-Lugar Bill will provided money for rebuilding the lives of civilians in war torn Pakistan.

Both Kerry and Lugar said that most of the money that has been funneled into Pakistan in the past few years has gone towards security. The aim of this bill is to shift the balance, to place more of an emphasis on infrastructure.

The Senators want to use the money for building schools, improving health care, building bridges, water projects, and other elements of infrastructure. Kerry said that the target projects are “things that would improve life and give people a sense of progress” to civilians.

The money would also be used for ensuring an independent media, expanding human rights and the rule of law, expanding transparency in government, rooting out political corruption and countering the drug trade.

Additionally military funding would be conditioned upon several things, including Pakistani security forces preventing al Qaeda and Taliban forces from operating in Pakistan. The military forces would not be able to interfere in politics or in the judicial process, according to the provisions of the bill.

The legislation bill would give $1.5 billion each year from FY 2009-2013, and would recommend similar amounts of money over the subsequent five years. There would be required benchmarks to measuring how effective the funding is, and the President will have to submit semi-annual reports to Congress about progress made.

Liveblog: House Financial Services hearing on AIG bonuses

By Kayleigh Harvey - Talk Radio News Service

TRNS is liveblogging the House Financial Services Committee Hearing on AIG bonuses. Updates will be added at the bottom of this post.

The Subcommittee hearing will be divided into two panels. The Committee will hear firstly from, Mr. Scott Polakoff, Acting Director for the Office of Thrift Supervision; The Honorable Joel Ario, Insurance Commissioner, Pennsylvania Insurance Department, on behalf of the National Association of Insurance Commissioners; Ms. Orice M. Williams, Director Financial Markets and Community Investment, Government Accountability Office; and Mr. Rodney Clark, Managing Director, Insurance Ratings, Standard & Poor's.
On the second panel, the Committee will hear from Mr. Edward M. Liddy, Chairman and Chief Executive Officer, American International Group.

Prior to the start of the hearing some of the members of Code Pink came with protest signs on their t-shirts. One member stood on the chair until the Subcommittee chair asked for order. Medea Benjamin, founder of Code Pink wore a sign that said: AIG-JAIL" and "Give us our money back."

Chairman of the Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprise, Paul Kanjorski, said in his opening statement: "We need to ask what happened, why it happened, what is happening now, and what we can do going forward to prevent similar situations. To protect the taxpayers, we must also ensure that AIG acts prudently and pays back its borrowed funds promptly."

Ranking Member Spencer Bachus (R-Al), said: "The blame game needs to be secondary."

Congressman Michale Castle (D-DE) said: "The American people need answers and to be able to trust the government now more than ever."

Congressman Michael Capauno (D-Mass.) asked the members of the first panel "where you were when AIG made their decisions."

Congressman Paul Hodes (D-DH) said: "AIG now stand for arrogance, incomptence and greed."

The greater outrage should be 4 bailouts later, no end in sight, over a congress and a president who could have orevented all of this.

Congressman David Scott (D-GA) said: "We have got to put a pause button on these bailouts."

Mr. Scott Polakoff said in his opening statement: "The rapid decline of AIG stems from liquidity problems."

Ms. Williams said in her opening statement "AIG has had mixed success" from federal government assistance. Ms. Williams said that there are no final result on the extent to which federal government assistance has helped AIG at this time.

Sub-committee Chair Paul Kanjorski made a passing remark that he had not anticipated so much attention to this hearing.

Ms. Williams said in response to a question from Congressman Scott Garrett (R-NJ), on how to act on this situation: "This is an issue that we will do what you instruct us to do."

Ms. Williams responded to Ranking Member, Spencer Bachus's (R-AL), question on the current status of AIG: "We looked at where they are and we noted some challenges...results are ongoing."

Congressman Gary Ackerman (D-NY) said: "There's a company called 'I can't believe it's not butter,' at least they have the decency to tell you that it's not butter." He added that it would have been nice if the company had admitted that what people were getting really wasn't insurance, but if that had been the case then people may not have bought it. "We need to make sure that people who think they are buying insurance, are buying insurance," Ackerman added.

The House Financial Services Committee stopped as the House was called to vote. During the recess, protestors from Code Pink began shouting at the Representatives to stay and listen to them. They demanded more money to be spent on education and for AIG to be made to give taxpayers their money back. Two members stood on chairs inside the room. All Representative's left the room to vote.

The hearing resumed with continued questioning of the first panel.

Congressman Brad Sherman (D-CA) said "It is clear that the $170 billion has gone not just pay the bonuses but has gone to take care of the counterparts...it is time that they are put into receivership."

Congressman Michael Capauno (D-Mass.) said "It's everybody's fault...everybody here allowed it to happen...it's done, we are where we are. AIG to me is just one of the many problems."

Mr. Polakoff said: "The question of whether that money ca be paid back...from an insurance perspective the answer is yes."

Mr. Clark said: "We are not certain when AIG is going to become profitable."

Congressman Stephen Lynch (D-Mass.) said: "We have received 0 in information in terms of AIG....we had sx months of silence basically...you folks are supposed to be out there helping us...why did we have to wait for six months, until this week...what's the problem with getting the answer to where the tapayers money is going?"

Mr. Polakoff was not able to form a conclusive answer to this question.

Congressman David Scott (D-GA), said: "Seems to me that somebody was asleep at the switch. This is an issue that borders on fraud and criminality."

The committee concluded its questions from the first panel at 1.22pm. A number of television cameras and photographers entered the room in anticipation for Edward Liddy's entrance. Code Pink held up their protest signs.

Sub-committee Chairman Paul Kanjorski, was extremely stern in calling the Committee room to order. Asking the Code Pink ladies to sit down. In his opening statement Chairman Kanjorski, made it clear that Mr. Liddy does not earn a CEO salary. He wanted to make this clear as he feared that Mr. Liddy and his family had received some very hostile responses as a result of the unfolding AIG scandal.

Member's of the Committee wanted to allow Mr. Liddy 'unlimited' time to give his opening testimony.

Mr. Liddy said: "We way every decision we make with one priority in mind...will we make this money back to pay back to the government."

With regard to the large bonuses paid out by AIG, Liddy said: "It was distasteful to have to make these payments."

"We have heard the American people loudly and clearly these last few days...We have asked those who received bonuses in excess of $100,000 to return at least half of those payments...some have offered to pay back 100 per cent of those payments," Liddy added.

Mr. Liddy said: "Everything we do is done in partnership with the Federal Reserve."

Chairman Paul Kanjorski asked: "Do you realize that the actions you took at AIG...may jeopardize the ability of this Congress to pass legislation to send further large checks to assist the economic depression/recession?"

Mr. Liddy responded: "I am."

Congressman ScottvGarrett (R-NJ), asked Mr. Liddy about the AIG exit strategy.

Mr. Liddy said: "The exit strategy i think is a solid one. It has been in place for a while now."

Proceedings were stopped momentarily during Mr. Liddy's questioning for Police to remove signs from Code Pink protestors. The ladies peacefully surrendered their signs to the Police,

Congressman Barney Frank (D-Mass.) joked that he was glad the Chairman had not also asked them to remove their t-shirts, which were also covered in protest slogans.

Congressman Frank asked that Mr. Liddy submit the names of those who received bonuses without restriction, to the Committee.

Mr. Liddy responded that his request was "legitimate" but was hesitant as he feared for the safety for those who received the bonuses and for the safety of their families.

Congressman Frank said he understood the fear of threats, calling such threats "despicable", but would "keep the request for those names on the table."

Speaking about AIG's debt, Mr. Liddy said: "It's a range of $80 billion, that's what we actually owe...we owe $40 billion from TARP funding...plus $50 billion that the Federal Reserve has invested."

Congressman Gary Ackerman (D-NY), thanked Mr. Liddy for performing his role to the best of ability. He apologized on the majority of decent American's for the threats he had received. He said: "I want to try and help you...pay the $165 million back...it is not worth the aggravation and angst that you have suffered."

Congressman Michael Castle (R-DE), asked Mr. Liddy about his correspondence with Secretary of the Treasury Timothy Geithner.

Mr. Liddy said:"I had a meeting with Secretary Geithner and he informed me that he had only been made aware a week prior to that."

Congressman Gary Ackerman (D-NY), asked whether Mr. Liddy would submit the names of those who received the bonuses to the Attorney General. Mr. Liddy was very evasive in his response."

Mr. Liddy said: "I want to be sure that if I turn over the names, there will not be a list of names, addressees and photos attached to them." He added that he would "follow the advice fo his General Counsel and do the right thing."

Congressman Brad Sherman (D-CA), asked Mr Liddy to submit to the Committee a chart that would show the Committee in the future, bonuses, the cost of the bonuses and who would receive these bonuses.

Congressman Michael Capauno (D-Mass.) asked: "When you were doing these bonuses, did you expect it to touch a nerve witht the american people?"

Mr. Liddy said: "Yes. I did...but not a the level it has."

Congressman Michael Capauno (D-Mass.) then asked Mr. Liddy whether ir not he felt that those who received the bonuses were the only people who were capable of doing their jobs.

Mr. Liddy responded: "No."

Congressman Michael Capauno (D-Mass.) suggested that Mr. Liddy could have fired those individuals and hired some of the capable unemployed people out there for less money.

Mr. Liddy disagreed with this point. He said that they had a special expertise that AIG could not afford to lose. In his response he repeated the phrase "risk assessment" several times when weighing up the pros and cons to paying out the bonuses.

Congresswoman Melissa Bean (D-Ill) asked Mr. Liddy about AIG's current financial situation and whether he felt they would be asking for more financial assistance. Mr. Liddy responded: "I believe we are adequately capitalized...very much a question of what happens with capital markets around the world."

Mr Liddy said: "It is not a failed company, it is a failing company unless we plan to do something about it."

Congressman Stephen Lynch (D-Mass.), said: "You have basically immunized yourself, protected yourself from one of the most stupid decisions from AIG," when referring to a document outlining AIG's bonus policy written in 2008.

Mr. Liddy replied: "I take offense at what you just said." To which Congressman Lynch responded: "Offense was intended." Congressman Lynch became increasingly frustrated with Mr. Liddy's responses to his questions, raising his voice as he spoke.

Mr. Liddy said: "Its a fact of life. AIG owes those counterparts that money".

The hearing went into recess for one hour as the House was called to vote.