Coffee Brown, University of New Mexico, Talk Radio News
Reps. Mike Pence (R-Ind.) and Peter Roskam (R-Ill.) said President Obama’s budget “taxes too much” and presented an outline of their alternative.
The President’s budget would add up to $3,100 per year per family in increased energy costs via the cap and trade policy, which their statement referred to as “cap-and-tax.” Both representatives also said that many small businesses would pay more in direct taxes. Pence acknowledged that that was so only if the business owner files as an individual and is making over $250,000, but that is commonly done in order to avoid the higher corporate rate. In effect, those small business owners whose personal profits exceed a quarter million dollars per year would be forced to choose between the already higher corporate or the now higher personal tax bracket.
Roskam said that many of the small businesses in his area were “in survival mode.” It was unclear whether he was including those whose personal profits would create such a tax dilemma.
Pence was emphatic that the “first principle is no new bailouts.” He repeated three times that the majority of Republicans had opposed bailouts even when their leadership supported the strategy.
The other principles outlined were: no tax hikes, limiting the federal budget from growing faster than family budgets, reforming the financial system, controlling energy costs with increased exploration, as well as developing new energy sources and supporting long-term price stability.
The nuts and bolts of how to do those things will be the topic of several subsequent presentations, Pence finished.

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.

Coffee Brown, University of New Mexico, Talk Radio News
House Majority Leader Steny Hoyer expressed the “outrage that all Americans feel” at AIG executives taking large bonuses on taxpayer money. “These people tried to separate risk from responsibility,” he said, but he was unsure whether there was any legal way to reclaim the money. “The right question is, how can they take these bonuses? Have they no shame? No sense of decency?” The right thing, he continued, would be for them to return the bonuses.
“They thought they would never have to pay the piper. The piper is being paid; not by them, but by the taxpayers,” he finished.
Hoyer also criticized a remark by former Vice President Dick Cheney two days ago that,”I don’t think you can blame the Bush administration for the creation of those (economic) circumstances.” Hoyer provided various quotes from Cheney, House Republican Whip Eric Cantor, Republican Leader John Boehner, and former President George Bush to the effect that Republicans were not responsible for the current financial crisis.
“The last administration started with a January growth of 164,000 jobs. The Obama administration took over in a January that lost 351,000 jobs,” he said. Hoyer contrasted the $5.6 trillion surplus that Bush started with against the $4.5 trillion deficit that Obama inherited. “It’s mind-boggling that the former vice president simply said, ‘well, it’s not our fault.’”

By Michael Ruhl, University of New Mexico – Talk Radio News Service
Today a league of congressmen sent a letter to President Obama asking him to reconsider his military policy in Afghanistan before committing 17,000 new troops in a surge. The letter said, “As the goals of our seven year military involvement remain troublingly unclear, we urge you to reconsider such a military escalation”. This letter came from a bipartisan group of 14 members of Congress.
Congressman Ed Whitfield (R-Ky.) said that he is “perplexed” by the president’s troop increase, considering that his administration has stated it is presently reviewing its strategy in Afghanistan. Congressman Jim McGovern (D-Mass.) said that America is getting deeper into a “war without end” and that we need an exit strategy in Afghanistan.
Both Ron Paul (R-Texas) and Dennis Kucinich (D-Ohio) expressed concern on waging an endless war in such a time of economic peril. Kucinich said what the country needs is a healthcare surge, a home ownership surge, and an employment surge.

By Michael Ruhl, University of New Mexico – Talk Radio News Service
Today in a hearing House Financial Services Committee Chairman Barney Frank (D-Mass.) said that the federal government must help to bring about regulations in financial institutions which presently are operating unrestrained in the free market. Frank emphasized that these moves are not about “diminishing the role of the private sector as a wealth creator,” but is about placing safeguards on newly developed market entities. (01:44)

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By Michael Ruhl, University of New Mexico – Talk Radio News Service
Today Speaker of the House Nancy Pelosi (D-Calif.) addressed the International Association of Fire Fighters (IAFF) Legislative Conference about the importance of collective bargaining. Pelosi awed at “what a difference an election makes” in addressing workers’ rights as well as their right to organize. Union representatives said that the Obama Administration is much friendlier to unions than the Bush Administration was, and is looking forward to the passage of the Employee Free Choice Act. Pelosi hammered home her commitment to that bill, and highlighted how the Economic Recovery Package provided billions of dollars to help prevent job loss in the public safety sector.
Also speaking at the event was Senator Joseph Lieberman (I-Conn.), who showcased his support for the Fire Fighter Fatality Reduction Act. The proposed law would set national requirements at fire stations for staffing, training, and equipment, moves that Lieberman believes will save lives. Additionally, Lieberman said he supports a national credentialing program for fire fighters, to make sure those responding to emergencies are properly trained to meet the national requirements he hopes are created.
Senator Susan Collins (R-Maine) talked to the crowd about the Federal Firefighter Fairness Act, which would create a “rebuttable presumption” that certain diseases contracted by fire fighters are “job related”, and thus subject to compensation programs. Collins said that this would apply to federal fire fighters, because it was “fundamentally unfair” that federal fire fighters would not be able to receive the same health protection as those on the state and local level.
Both Collins and Lieberman spoke in support the right of workers to bargain collectively.
Vice President Joseph Biden is scheduled to speaker later today at the event.

Coffee Brown, University of New Mexico, Talk Radio News
Sen. John D. Rockefeller IV (D-W.Va.), Chair of the Committee on Commerce, Science and Transportation, opened the first of a planned series of hearings into practical responses to climate change with, “Dr. Killen, when does climate change become irreversible?”
Dr. Timothy Killen, National Science Foundation, replied that accommodation was becoming more important than prevention. Killen said that present models are imperfect, they show a range of possibilities for each question, but the possibilities are all about how much our world is changing, not whether it is. The overall pattern of warming and increasingly erratic and extreme weather is certain, with floods and droughts occurring back to back in the same places. One other thing the models have in common, is that the changes are already more severe and rapid than predicted, he said.
This is partly because methane gas wasn’t part of earlier models, Killen said. He confirmed that methane is 30-40 times more potent as a greenhouse gas than carbon dioxide. Methane is sequestered in huge amounts in permafrost. So far, only superficial permafrost is melting and releasing the gas but, if it all melted, “Our world would be unrecognizable,” he said.
Rockefeller said this is the 11th plague on man. “The science is overwhelming… The time for arguing whether carbon emission is a factor which affects the health of the earth, or whether our sea level is rising from global warming, is and must be over.”
Sen. Kay Bailey Hutchison (R-Texas), Ranking Member, asked about research into weather control. Killen indicated that we could begin such studies, with better tools than in the past.
No one among the senators or the panel questioned the reality or significance of climate change, the discussion was about what could be done.
Killen recommended specific areas of further research in order to improve computer modeling of the effects of any changes. He thought science would then yield better answers in “ten or so years.” In the meantime, we should plan for regional climate change, the local details of which were not yet predictable, rising and more acidic oceans, water scarcity, extreme weather, reduced biodiversity, crumbling ecosystems, and substantial impacts on human health.
Sean Dilweg, National Association of Insurance Commissions, recommended both insurers and government create incentives for people to drive less and use clean energy. Insurers are presently looking into other recommendations.
Sen. Mark Warner (D-Va.) suggested “something like EnergyStar on steroids.” A symbol that consumers could look for as a sign that their purchases were part of the solution.,
The Colorado River might carry 20 percent less water by 2050, Katherine Jacobs, Arizona Water Institute, said. There is a great need, she said, for the public and policy makers to be more aware of the science around climate, and to make that science part of important decisions.
Her recommendations also included plans to adapt to now-unavoidable changes, as well as defining the problems around users’ concerns, matching the timing and scale of information to decisions, and establishing credibility of sources in the minds of the public. She submitted several more technical recommendations to the committee as well.
By far the most pro-active panelist was Frank Alix, Powerspan Corporation. His company makes carbon scrubbing and sequestering equipment for coal plants. Still at the prototype stage, their equipment can remove 90 percent of the carbon from coal plant exhaust, pressurize it into liquefied form, and pump it into vast natural underground spaces, where it is expected to remain. Alix estimated that, with full implementation, total carbon emission could be reduced to about 5 percent of what it is now, for about $40 a ton.
Alix said the fastest path to adoption of the scrubbers would be a carbon tax.

By Michael Ruhl, University of New Mexico – Talk Radio News Service
While speaking in the Senate Committee on Energy & Natural Resources, Senate Majority Leader Harry Reid (D-Nev.) emphasized the importance of developing a smart energy network to transmit renewable energy across the nation. (00:48).

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By Michael Ruhl, University of New Mexico – Talk Radio News Service
While testifying before the Senate Committee on Energy & Natural Resources, Senate Majority Leader Harry Reid (D-Nev.) said that renewable energy has been helping to stimulate the economy and create jobs. Reid said that these industries have thrived, but that assistance from the federal government is necessary for the country to reach its full energy potential. (01:40)

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By Michael Ruhl, University of New Mexico – Talk Radio News Service
At a Senate Committee on Energy & Natural Resources, Ranking Senator Lisa Murkowski (R-Alaska) said that America’s current transmission infrastructure for electricity will not meet the country’s future electricity needs. (01:23)

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