Barney Frank Proposes Steep Military Cuts

Rep. Barney Frank (D-Mass.) told progressive activists gathered in Washington Tuesday morning that the only path to a long-term deficit reduction plan is via substantial defense cuts.

“There is no way at all to do a socially responsible deficit reduction plan…without very significant reductions in military spending,” Frank animatedly told participants of the Take Back the American Dream conference.

The current U.S. military budget is $670.9 billion, which is more than any other military in the world. Frank suggested reductions between $225-250 billion per year.

“We overspend because we are overcommitted,” Frank said.

“I am all for America being the strongest nation in the world, but the substantial problem is that we have acted now for 60 years as if we had to be not only the protectors of the world but the guarantor of stability in the world,” Frank added.

Frank argued that the U.S is not only protecting its own country but also heavily subsidizing the defense of the wealthy nations of Europe. According to Frank, the U.S. is spending more now proportionately than during the Cold War.

Frank justified that military spending reductions will lead to more money that can be invested in jobs production.

“They are talking about $1.25 trillion in deficit and we can do twice that in military alone and be a stronger and better and happier nation because of it,” he said.

Opponents of defense cuts, however, say doing so would substantially increase unemployment and further plunge the U.S into economic instability.  

The three-day conference, which concludes tomorrow, is giving progressive activists a chance to share strategies to advance their economic agenda.

Rep. Barney Frank Optimistic Over State Of U.S. Economy

By Meagan Wiseley - University of New Mexico/Talk Radio News Service

Chairman of the House Financial Services Committee Barney Frank (D-Mass.) said Friday that on the economic front, America received good news and bad news today following the Labor Department's announcement of a 10.2% unemployment rate.

“Although 190,000 more American’s lost their jobs...that is substantially less than the pace at which they were losing jobs until fairly recently,” Frank said during remarks at a conference sponsored by NoLimits.org, a progressive on-line organization founded by Frank's sister.

Frank said the American Recovery and Reinvestment Act, or the stimulus bill, had a positive impact in deterring unemployment, explaining that unemployment rates would be higher if the stimulus bill hadn’t passed.

Frank also said that the lack of regulation in the financial sector, which he contributed to Alan Greenspan, the former Chairman of the Federal Reserve, led to the AIG crisis and the following recession. He praised the current Chairman of the Federal Reserve Ben Bernanke for his willingness to collaborate with Congress over new financial regulatory reforms.

Frank remained positive about the economic outlook.

“We are making progress ... things are getting better virtually on every front [and] I am confident that when we are through with financial regulations...the kind of things that got us in trouble in the past won’t get us in trouble in the future,” Frank added.

House Panel Approves Bill Creating Consumer Protection Commission

By Travis Martinez - University of New Mexico/Talk Radio News Service

The House Committee on Energy and Commerce voted 33-19 on Thursday to pass H.R. 3126, otherwise known as the Consumer Financial Protection Agency Act of 2009. The legislation would oversee mortgages and other financial products and would strengthen the Federal Trade Commission's role in the financial industry.

Lawmakers on the House Energy and Commerce Committee voted to make two major changes to the bill. The first amendment, offered by Chairman Henry Waxman (D-Calif.), would first rename the agency, as written in the mark, as a new government commission. The amendment also provided a restructured panel of five members to the commission, with a limit of three commissioners from any particular political party. This would give the commission the same structure as the Federal Trade Commission, or Federal Communications Commission.

Several businesses, either in full or in part, would be exempt from the legislation. This list includes auto dealers, credit, mortgage and title insurers, banks with less than $10 billion in assets, and credit unions with less than $1.5 billion in assets.

Waxman acknowledged the long list of exemptions as a possible problem, but said that he would wait to address any issues he had.

"I am concerned that too many exemptions and exclusions were put into the bill... I will want to examine them closely as we move toward consideration on the floor," said Waxman.

Rep. Joe Barton (R-Texas) offered numerous amendments that were subsequently shot down after discussion with the panel. However, in a show of bipartisanship, Waxman offered to work with Barton on re-wording the offered amendments so that they could be possibly brought to the floor at a later date for full consideration.

Waxman recognized the original bill's sponsor, House Financial Services Committee Chair Rep. Barney Frank (D-Mass.) for his committee’s work on promoting the expanded authority of the FTC over the financial sector.

“I am pleased that he made many essential changes, particularly in regard to the impact of the FTC, which will preserve the FTC’s authority to provide and aggressively enforce against financial fraud,” said Waxman.

Frank: Allow Parental Interment Alongside Fallen Soldiers

By Meagan Wiseley - University of New Mexico/Talk Radio News Service

Rep. Barney Frank (D-Mass.) introduced the Vet Parent Burial in National Cemeteries Act today. The legislation would allow the parents, or single parent, of a deceased veteran to be interred in a national cemetery in a plot owned by that deceased veteran. This amendment came before the House Committee on Veterans’ Affairs Disability Assistance and Memorial Affairs Subcommittee.

Denise Mansfield, the mother of fallen soldier Army Spc. Corey Shea, testified. Her original request for an exemption to this amendment was denied. Sen. John Kerry (D-Mass.) and Frank both attended Shea’s funeral, and have asked for this legislation to be passed.

“The last thing a parent needs while stricken, as he or she may be, with this terrible tragedy is to have to then deal with red tape,” said Frank.

Frank’s amendment to the bill states that “If the Secretary determines there is enough space in open national cemeteries, the parent of a person...who at the time of the parent’s death, does not have a spouse, surviving spouse, or child who has been interred, if deceased, would be eligible to be interred in a national cemetery.”

“The disproportion between what this country owes her and what she’s asking is just as large as can be. She’s lost her son,” Frank added.