Insurgent I.E.D. Team Destroyed in Afghanistan as Use of Weapon Rises

The attack comes at the end and its quite devastating.

The I.E.D was one of those weapons that comes out of no where and can change the whole nature of a war as it did in Iraq. Cheap effective and difficult to combat the weapon wreaked havoc on plenty of US convoys in Iraq and now its being used in Afghanistan.

From the Times:

FORWARD OPERATING BASE ALTIMUR, Afghanistan — The call came just after dinner: a pickup truck carrying Afghan national police officers had hit a buried bomb, and all five officers inside were dead.

When First Lt. James Brown and his team of bomb investigators arrived at the shredded remains of the truck, the grim significance of the attack became clear. One of the dead was a hard-charging commander who, more than any officer in this restive district of Logar Province, had helped fight a shadowy network of local bomb makers.“If he wasn’t trying so hard, if he was taking bribes, taking naps, he’d be alive right now,” Lieutenant Brown said of the commander, Gul Alam.

This is the war in Afghanistan today, where death is measured less by the accuracy of bullets than by the cleverness of bombs. And though the Afghan insurgency’s improvised explosive devices, or I.E.D.’s, are less powerful or complex than those used in Iraq, they are becoming more common and more sophisticated with each week, American military officers say.

This year, bomb attacks on coalition troops in Afghanistan have spiked to an all-time high, with 465 in May alone, more than double the number in the same month two years before. At least 46 American troops have been killed by I.E.D.’s this year, putting 2009 on track to set a record in the eight-year war.

The can be overcome, but it takes a whole lot of endurance and patience to defeat these tactics.The following clips are from Chechnya and show various I.E.D attacks on Russian vehicles. It illustrates the devastating affect of these weapons:

California Debt Near Junk Bond Status

The California disaster which has been years in the making took another turn for the worse today as Moody's credit rating downgraded the state to new junk bond status. Last week the Fitch agency had first lowered the states ratings, and now Moody's. Soon and enough S and creditswill downgrade as well leaving a state with 1/8th of the US economy the fiscal disaster.

SAN FRANCISCO (Reuters) - Moody's cut its rating on Tuesday on about $72 billion of California's debt to near junk status, citing the state's budget crisis, but a top lawmaker said a deal to close a $26.3 billion gap was near.

Moody's Investors Service in a statement said it cut the state's general obligation debt by two notches to Baa1, or three notches above speculative "junk" status and the rating may suffer further downgrades because of a growing risk to the state's ability to make priority payments.

They include payments to investors holding the state's debt.Spokesmen for the state treasurer and state controller quickly countered Moody's, noting priority payments would be honored while Republican Governor Arnold Schwarzenegger and leaders of the state's Democrat-led legislature press on with talks to balance the state's books.

"We've never defaulted. We've never failed to pay bond investors on time and in full. We'll maintain that spotless record," said Tom Dresslar, a spokesman for State Treasurer Bill Lockyer.

Its not like this came out of left field, this crisis has been coming to a boil and all we have gotten is dithering and foolishness from the state government.
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House Outlines Health Bill Today: Updated Tax the Rich and Business

The house has always been the more left in its approach so be it energy or health reform and the package they will outline today is no exception:

It includes:

1. A public insurance plan
2. A health care mandate that all Americans have health insurance including the "invincible".
   
3. Insurance Companies will be prohibited from denying coverage to those with existing health issues.
4. The Income Tax increase Rangel promised on the "rich"
5. Several of the provisions including the public plan only take affect after a couple of years.
   

So far details are limited with many questions left open:

1. What penalty will exist for those who do not buy insurance but can afford it.
2. What will the payment schedule for the public plan be?
3. Will employers face a tax if they lack health plans for workers?
4. Will low income families receive a subsidy to purchase insurance?

These are the tip of the ice berg and the only thing we can say for certain is that the Democrats have killed the idea of taxing employee health benefits for the time being. With Democrats balking at health care its clear this is an attempt to jump start the legislation. Expect a rush job and an ugly bill which no one will bother to read.

Update:

Key elements of the legislation include federal subsidies for poorer individuals and families to help them afford coverage.

Financing would come from a federal surtax on the upper income -- up to 5.4 percent on the income of taxpayers making more than $1 million a year -- as well as hundreds of billions of dollars in cuts in projected Medicare and Medicaid spending.

The new income tax on the wealthy is estimated to raise more than $500 billion over the next decade, and reductions in Medicaid and Medicare would account for nearly as much.

Democrats did not say in advance what the overall legislation would cost.

Numerous issues remain subject to change as the bill makes its way through committee. In particular, moderate to conservative Democrats have been negotiating for several days, asking for changes affecting rural health care as well as other issues.

Employers who do not offer coverage would be required to pay 8 percent of each uninsured worker's salary, with exemptions for smaller firms built into the legislation.

Individuals who refused to buy affordable coverage would be assessed as much as 2.5 percent of their adjusted gross income, up to the cost of an average health insurance plan, according to the legislation.

The legislation would set up a new government-run health insurance program to compete with private coverage. The plan's payments to medical providers such as hospitals and doctors would be keyed to the rates paid by Medicare, which are lower than what private insurers pay.

No number on the cost, pathetic. This is a left wing disaster that will utterly destroy the health care industry and the nations finances. Its Massachusetts health care on a grander more damaging scale.

Second Update:

We have a price tag, no thanks to the house but courtesy of the CBO:

1 TRILLION ! Via HA:

Actually, it’s really a cool trillion over five years. Eyeball the graph Philip Klein posted this afternoon and admire the left’s sleight of hand. They’re using a 10-year timeline to create the illusion that the program costs $100 billion a year or so. In fact, it’ll be more than $200 billion once it gets going, which won’t happen until 2014, and that’s assuming that the cost projections aren’t wildly over-optimistic the way every other projection they’ve made this year has turned out to be. In fact, the trillion-dollar figure doesn’t even account for all expenses; as MKH notes, the CBO has yet to compute “administrative costs” of implementing the program or the effect it’ll have on other areas of federal spending. Still, give The One credit for consistency: Whether it’s borrowing from future generations to pay for the stimulus or hiding the costs of his health-care boondoggle by backloading them, he’ll gladly pay you Tuesday for a hamburger today.

Chart Via American Spectator

Remember rich is a sliding scale downwards as revenues inevitably dry up and costs exceed expectations.

Prices Jump: Led By Energy

What is the cause? Obama and the lefts energy policy which is designed to reduce output while increasing costs, or is it Obama's fiscal madness driving up prices?

A surge in energy prices drove up retail sales and prices paid at the producer level in June, the government reported on Tuesday.

The Commerce Department said that retail sales rose by 0.6 percent as auto and gas sales exceeded expectations. The June figure was the biggest climb in five months. Economists had forecast only a 0.4 percent increase.

While car dealerships enjoyed their best month since January and oil prices drove up receipts at gas stations, sales in other sectors dropped by 0.2 percent. Consumers still appeared reluctant to spend at restaurants and department stores in a sign that a consumer-led recovery remains at a nascent stage at best.

Separately, the Labor Department reported a 1.8 percent increase in the Producer Price Index, a measure of prices paid by retailers to factories and farmers, more than double economists’ forecasts. The index rose 0.2 percent in May.

The jump in the price index is likely to bring back debate of which direction inflation is headed. Weak unemployment and wage data have largely constrained retailers’ pricing power, but surges in energy prices beyond the control of retailers have proved significant.

But most economists say fears of a resurgence of inflation are premature. The June figure was swayed unusually by energy prices.

Part of this was the modest rally in oil prices, and I would imagine summer driving may have led to some increase in gas prices. I suppose pointing out and increase in oil production might create domestic jobs and alleviate some of the cost issues, but according to the president that is an old battle. Wait till cap and tax to really send prices through the roof. By the way check out Palin's superb piece on the issue, its worth the read.

Economist Looks at the California Disaster

California spends more then it should. I know that is stating the obvious but apparently the political machine that lives in Sacramento doesn't recognize this. The collapse of the states finances has led to the of issuing I.O.U's and the downgrading of the states credit. Lets cure some myths about the collapse before we go any further, this is not simply a case of the people of California demanding services without having to pay for them. A better case could be made that various constituencies, primarily unions, refuse to give an inch. These groups provide the votes, manpower, and money that insure easy re-elections for politicians in power. Its a great system if you are part of it, the Unions have their perks protected and the politicians can't lose. Of course when the revenues dry up a choice is supposed to get made, cut or increase revenues. Increasing taxes will not solve Californians problems and the lefts argument that the conditional rules where 2/3rds of the government must agree to raise taxes is a false argument designed to ignore the reality that California represents a fiscal disaster Obama and his allies are trying to emulate on a national level. The failure of constitutional gimmicks and the refusal of the Democrats and Unions to face reality have put the state in limbo and as of now very little reason to be optimistic.

From the Economist:

ALTHOUGH one would hardly know it from the antics of its politicians—or from its newspapers, which all this week were fixating on Michael Jackson’s funeral rites—California is in as serious a condition as an American state can be. Legally unable to declare bankruptcy as a company would, the state has begun paying many of its bills with IOUs instead of cash. One of the three big credit-rating agencies, Fitch, this week downgraded the state’s bonds, already the lowest-rated such bonds in the country, to BBB, within spitting distance of “junk”. Government offices are closed on some days, as state workers take involuntary and unpaid furloughs. Taxpayers are still waiting for refunds. Poor people are afraid of losing their state-funded health insurance. Parents, fearing ever shabbier public schools, have another reason to think about moving out of state.

Meanwhile, the governor, Arnold Schwarzenegger, and the leaders of the legislature have been frantically scoring points off each other in Sacramento, the state capital. As the previous fiscal year drew to a close on June 30th, Darrell Steinberg, the Democratic leader of the Senate, and Karen Bass, the Democratic leader of the Assembly, were proposing some stopgap measures that would have saved a dollop in the new fiscal year and averted the issuing of IOUs. But the Republican governor, claiming to insist on all or nothing, said no. Overnight, the budget gap swelled to a staggering $26.3 billion and now grows by an estimated $25m each day.

The cow tails was a nice touch, but such stupidity is common on a state and local level where small organized groups have there pet issues pushed by politicians. Of course California itself is divided between the coastal areas who push environmental rules and animal rights nonsense on the agricultural areas of the state, essentially imposing their values on farmers and businesses.

So who suffers:

With luck the IOUs, officially called “registered warrants”, will turn out to be more symbolic than apocalyptic, provided that banks accept them and that a budget deal arrives soon. The last time California paid with IOUs, in 1992, Bank of America was dominant in the state and kept order. This time many banks must play along, and several suggested this week that they would accept the IOUs only until July 10th. If that practice becomes widespread, bearers may have to wait until October to get their money. For some suppliers this may mean bankruptcy; for students, uncertainty over their college tuition; for consumers without tax refunds, austerity.

And if all this leads to more downgrades, California’s borrowing costs will increase and the budget gap will further widen. But this does not automatically threaten the owners of California’s “muni” bonds, since the state constitution dictates that schools be paid first, bondholders second and then everybody else.

In California two of the most powerful Unions are the corrections officers and the teachers unions who are bitterly opposed to any cuts. That is all well and good but if the state is collapsing you would think modest cuts now makes more sense then larger cuts later. Every day this goes on the budget gets harder to fix, and if the muni-bonds are downgraded by other agencies besides Fitch it will lead to increase borrowing costs, meaning greater cuts to fix the budget. The elected Democrats and the Unions know this, and for too long deluded themselves into thinking tax increases were the solution and only just recently backed off on the issue. More likely they are still counting on Obama and the Federal government bailing out the state to prevent further cuts to groups that provide donations and political support to the Democratic party. This is a dangerous game as a Federal bailout is unlikely considering the adamant opposition from the public at large for such a move. Of course much of the first stimulus was turned into a state-level bailout anyway as various local governments papered over their deficits with money that was designed to generate growth, the stimulus disaster and the corresponding job losses it it caused have undermined a significant amount of Obama's credibility and make any push by the President to bailout the state highly unlikely. Of course Obama used the stimulus money to bully California, but that is a separate issue. With little hope of a compromise the article sums things up rather well:

The pain thus seems likely to flow to the bottom of the social hierarchy. But all Californians will notice. Their parks may close, their neighbourhoods may become less safe. “The Californian Dream is at least temporarily suspended,” says Mr DeVol.(Chief economist at the Milken Institute, a think-tank in Santa Monica)

It would be derelict not to offer some solutions, so here its goes:

1. Open up the coast to offshore drilling and the use a revenue sharing formula between the state and federal governments with the royalties.
2. Modest cuts along with furloughs and early retirements to ease the payroll burdens.
3. Scrap as many inane regulations about the environment and animal rights that stifle economic growth. Does this mean get rid of all of them, of course not but a certain level of rational thought should be applied.

A small start, but everything on that list could be done and would reduce the human cost to solving the fiscal disaster.

Deficit Hits 1 Trillion for First 9 Months as Tax Revenues Collapse

Great work, 1 trillion and the fiscal year isn't even done yet! Of course trillions in new spending for health care and energy are the solution. After that who cares, just like California the democrats can print money without concern.

July 13 (Bloomberg) -- The U.S. budget deficit topped $1 trillion for the first nine months of the fiscal year and broke a monthly record for June as the recession subtracted from revenue and the government spent to rejuvenate the economy.

The shortfall for the fiscal year that began Oct. 1 totaled $1.1 trillion, the first time that the gap for the period surpassed $1 trillion, Treasury figures showed today in Washington. The excess of spending over revenue for June was $94.3 billion, the first deficit for that month since 1991, according to data compiled by Bloomberg.

Individual and corporate tax receipts are sliding even as the worst recession in five decades shows signs of easing because the jobless rate continues to rise -- reaching a 26-year high in June -- and companies have yet to see a sustained increase in demand. The shortfall is also widening as the government ramps up spending from the $787 billion stimulus program President Barack Obama signed into law in February.

By the way its not just Obama's fiscal lunacy, we are also witnessing a collapse in Tax Revenues:

Tax Receipts

Corporate tax receipts totaled $101.9 billion through June versus $236.5 billion, a decline of 57 percent, the Treasury’s budget statement said today. Individual income tax collections were down 22 percent so far this fiscal year to $685.5 billion compared with $877.8 billion in the year-earlier period.

In other categories, spending by the Social Security Administration rose to $544.7 billion from $491.7 billion for the fiscal year to date; spending by the Department of Health and Human Services, which administers the Medicare and Medicaid health programs, rose to $588.7 billion from $520.4 billion and spending by the Defense Department rose to $472.8 billion from $439.5 billion, Treasury said today.

The Treasury also said that for the fiscal year to date it has spent $147.2 billion on the financial rescue plan called the Troubled Asset Relief Program, and $84.9 billion to purchase mortgage debt from government-sponsored enterprises including Fannie Mae and Freddie Mac, now in government conservatorship.

We can't get away with forever and no amount of speeches or nonsensical arguments from Obama or the democrats will cover these facts on the ground. As for entitlements spending increases, no surprise but the Democrats have pretended it doesn't matter and that the trillion or so for their health care plan will somehow end up being cost neutral. Is it any wonder Giethner is going around trying to re-assure people on the merits of the dollar?

Giethner to Re-Assure Arab States on Dollar

If you have to tell people that is usually a bad sign. With talk of replacing the dollar increasing is it any wonder the Treasury Secretary now has to fly around and place nice:

RIYADH/LONDON (Reuters) - Treasury Secretary Timothy Geithner will seek to reassure Gulf Arab states this week that U.S. dollar assets they hold in large quantities remain a strong investment.

A recent decline in Saudi foreign assets shows the purchase of U.S. treasuries by Washington's Gulf allies, five having currencies pegged to the dollar, at levels seen in the past decades should no longer be taken for granted.

Geithner, offering assurances on the United States' ability to pull out of recession, is combining a visit to Saudi Arabia and the United Arab Emirates, the Arab world's largest and second-largest economies, with a trip to Europe.

With people questioning the solvency of the United States courtesy of Obama's fiscal policies this can end badly, for all of us. Do you think people will laugh in Giethner's face again?

The Disaster of California

They saw it coming and did nothing.(And this was the optimistic forecast)

The California disaster, a clear foreshadow of Obama's affect on America has been one of the greatest disgraces in modern American political history. In a nutshell various special interests within the state have a stranglehold on the Democratic party and have consistently prevented cuts or reform, and who suffers average Californians and small business owners:

NEW YORK (CNNMoney.com) -- As if struggling to stay afloat during a faltering economy isn't difficult enough, hundreds of small business vendors that rely on contracts with California are facing another hurdle: There's a good chance the state won't be paying any of their invoices this month.

After the state legislature failed to agree on budget solutions earlier this month to close a $26 billion gap, California started issuing IOUs for a variety of payments it owes -- including most of its vendor bills, personal income tax refunds, and funding for local governments. "This means that the state is casting off its cash-flow problems onto hundreds of families and small businesses in California," says Jacob Roper, a spokesman for the state controller's office.

So far, California has mailed $354 million worth of IOUs and plans to issue a total of $3 billion by the end of July. Around $140 million of the warrants are expected go to small business owners. While the state controller's office won't say exactly how many small companies will be hit, it's likely to be a big number: The state's department of general services says it holds $2.7 billion worth of annual contracts with at least 14,000 small companies, most of them California firms.

The I.O.U. scam is an outrage and is any wonder events have degenerated to the point that succession from the state is openly discussed. With the credit rating slashed and banks balking at accepting the I.O.U's indefinitely this is not a sustainable position. As for the left they have put themselves in denial of events and claim that raising taxes is the only solution, of course that will only put a nail in the coffin of the state.

Operation Khanjar Strengthens Afghan Control of Helmland Province

The Afghan national flag is raised above Khan Neshin castle in the Rig District Center for the first time July 8. The flag raising signaled the arrival of Afghan governance in the southern reaches of Helmand Province.

Operation Khanjar continues to make progress as the goal of driving out the Taliban is matched by the increased presence of Coalition and Afghan forces as a means to keep the Taliban out. Beginning with a massive helicopter assault, the marines were followed in by a large armored column as they moved to secure all of Helmland province as a means to provide security for next falls election. Of course the Taliban have been stepping up attacks in and around Kabul, whether this is in response to Khanjar or just part of a Summer campaign is not known. For a photo essay click here.

KHAN NESHIN, Afghanistan (July 8, 2009) – The Afghan national flag was raised above Khan Neshin castle in the Rig District Center July 8 for the first time, signaling the arrival of Afghan governance in the southern reaches of Helmand Province.

Khan Neshin and the areas south of the Helmand River have never experienced the sustained presence of coalition forces or Afghan National Security Forces, until now, seven days after the beginning of Operation Khanjar.

“The number one question we get from the people is, ‘when are you leaving?’” said Brig. Gen. Larry Nicholson, commanding general of Marine Expeditionary Brigade-Afghanistan. “The answer is we’re not leaving until the transition for security is made to the provincial government, to include the Afghan forces.”

Afghans from the local populace came to Khan Neshin shortly after the flag was raised, where they heard statements from Helmand Governor Gulab Mangal and newly-appointed Rig District Governor Massoud Jan. Dozens of locals then gathered around a large courtyard within the district center to sign up for voting in the upcoming national elections.

CAMP LEATHERNECK, Afghanistan (July 6, 2009) – Afghan National Police and forces from Marine Expeditionary Brigade-Afghanistan have restored government control in the town of Khan Neshin as part of MEB-Afghanistan’s ongoing Operation Khanjar, designed to provide stable conditions for the Afghan people by disrupting insurgents’ lines of communication and freedom of movement in Helmand province.

Approximately 500 Marines from 2nd Light Armored Reconnaissance Battalion have moved into the Khan Neshin area, located in the Rig District, near the part of the Helmand River known as “The Fishhook.” This is the first time coalition forces have had a sustained presence so far south in the Helmand River valley. Khan Neshin had been a Taliban stronghold for several years before Afghan and coalition forces arrived and began discussions with local leaders several days ago.

Another aspect of this offensive is the extraordinary sacrifice of British soldiers as they push against the Taliban and suffer heavy casualties:

Red Meat For the Left

As the economy worsens from the actions of Obama and the Democrats and as the poll numbers begin to drop the administration needs to shore up support in its base. When a series of corruption scandals hit some time ago we saw the President distract everyone by hinting at at show trials to appease his supporters. Additionally the Democrats in their efforts to protect Pelosi need to paint the CIA as some rouge unit undermining us all. We have two stories floating around, one connecting Cheney to a program that was never put into place the other about prosecutions:

The Central Intelligence Agency withheld information about a secret counterterrorism program from Congress for eight years on direct orders from former Vice President Dick Cheney, the agency’s director, Leon E. Panetta, has told the Senate and House intelligence committees, two people with direct knowledge of the matter said Saturday

The report that Mr. Cheney was behind the decision to conceal the still-unidentified program from Congress deepened the mystery surrounding it, suggesting that the Bush administration had put a high priority on the program and its secrecy.

Mr. Panetta, who ended the program when he first learned of its existence from subordinates on June 23, briefed the two intelligence committees about it in separate closed sessions the next day.Efforts to reach Mr. Cheney through relatives and associates were unsuccessful.

The question of how completely the C.I.A. informed Congress about sensitive programs has been hotly disputed by Democrats and Republicans since May, when Speaker Nancy Pelosi accused the agency of failing to reveal in 2002 that it was waterboarding a terrorism suspect, a claim Mr. Panetta rejected.

Of course this has nothing to do with Pelosi being briefed and her subsequent lies on the subject. But by painting the whole CIA as deceitful it provides the political cover to keep her in office. So what actually happened:

The law requires the president to make sure the intelligence committees “are kept fully and currently informed of the intelligence activities of the United States, including any significant anticipated intelligence activity.” But the language of the statute, the amended National Security Act of 1947, leaves some leeway for judgment, saying such briefings should be done “to the extent consistent with due regard for the protection from unauthorized disclosure of classified information relating to sensitive intelligence sources and methods or other exceptionally sensitive matters.”....

Members of Congress have differed on the significance of the program, whose details remained secret and which even some Democrats have said was properly classified. Most of those interviewed, however, have said that it was an important activity that should have been disclosed to the intelligence committees.

Intelligence and Congressional officials have said the unidentified program did not involve the C.I.A. interrogation program and did not involve domestic intelligence activities. They have said the program was started by the counterterrorism center at the C.I.A. shortly after the attacks of Sept. 11, 2001, but never became fully operational, involving planning and some training that took place off and on from 2001 until this year.

In the tense months after Sept. 11, when Bush administration officials believed new Qaeda attacks could occur at any moment, intelligence officials brainstormed about radical countermeasures. It was in that atmosphere that the unidentified program was devised and deliberately concealed from Congress, officials said.

The program, whatever was never got off the initial training stage and its termination by Panneta when he took office was met with a shrug at the CIA since he was killing an effectively dead program I am sure wild speculation will scream across the internet, but lets sum this up. Following 9/11 the admin thought about some program that it never actually put into use and never bothered to inform Congress since it barely left the drawing board. Wow, worse then Watergate! After Cheney destroyed the Obama admin during their competing debates its clear this admin needed extra ammo destroy him, hence this latest's non-scandal. The other meat thrown to the left was this stupidity which I thought we had finally left behind:

WASHINGTON – Contrary to White House wishes, Attorney General Eric Holder may push forward with a criminal investigation into the Bush administration's harsh interrogation practices used on suspected terrorists.

Holder is considering whether to appoint a prosecutor and will make a final decision within the next few weeks, a Justice Department official told The Associated Press. The official spoke on the condition of anonymity because he was not authorized to speak on a pending matter.

A move to appoint a criminal prosecutor is certain to stir partisan bickering that could create a distraction to President Barack Obama's efforts to push ambitious health care and energy reform.

Obama has repeatedly expressed reluctance to having a probe into alleged Bush-era abuses and resisted an effort by congressional Democrats to establish a "truth commission," saying the nation should be "looking forward and not backwards."

Justice Department spokesman Matt Miller said Holder planned to "follow the facts and the law."

Contrary to Obama, yeah right. This is about keeping the base happy. Obama's continuation of so many Bush policies from the wars to Gitmo need to papered over. The easiest way is to use the government to destroy opponents and give the left wing fever swamp something to chew on. As Obama's economic policies further destroy the wealth and credit of this country expect even more attacks against hie political enemies, real or imagined.

Rangel: Tax the Rich!

No surprise, tax the rich until the revenues don't come in and then we all pay. Rangel has been offering up health care nonsense for a couple weeks now and has been adamantly opposes to taxing employee benefits to protect the health care plans of the Unions and has essentially declaring the idea dead on a arrival.

WASHINGTON (AP) -- Key House Democrats decided Friday to raise taxes on the wealthy to help pay for health care legislation, capping an up-and-down week for President Barack Obama's top domestic priority. At the same time, Democratic leaders tried to quell concerns among moderate and conservative lawmakers about other elements of the bill.

''We're closer to that significant reform than at any time in recent history. That doesn't make it easy. It's hard,'' Obama said while traveling overseas.

Democrats on the tax-writing Ways and Means Committee agreed to a new surtax that would start with households making $350,000 a year and begin in 2011, said the committee's chairman, Rep. Charles Rangel, D-N.Y.

It would raise some $540 billion over 10 years, about half the cost of Obama's ambitious plan to reshape the nation's health care system and provide care to the 50 million uninsured. However, lawmakers could not provide an exact price tag of the overall bill.

The proposal faces an uncertain reception in the Senate and from moderate and conservative Democrats in the House, who rebelled Thursday over various aspects -- including costs -- of the plan.

No price tag, how about a trillion. Anyway taxing the rich won't provide the needed revenues, but it will provide needed political cover sparing the President from taxing employee benefits. Of course this dooms any chance of bi-partisan reform and they it means they will be raising taxes in a recession, something Obama explicitly denies he would do. By the way, how many small businesses are considered wealthy? Between an employer mandate for health coverage with an additional tax if your business doesn't provide a plan, these guys are going to get slammed further worsening the economy and leading to further job losses. Well the GOP has al ready attacked the proposal and the Senate Democrats will likely question the move:

Republicans, who have pummeled the Democrats over the $787 billion economic stimulus, pounced at word of the proposed tax increase, which they said would primarily hurt small-business owners.

“In the middle of a serious recession, with unemployment nearing double digits, the last thing we need is a tax increase on small businesses, which will cost the American economy even more jobs,” said Michael Steel, a spokesman for the House Republican leader, Representative John A. Boehner of Ohio.

The Senate health committee had hoped to approve its version of the health care legislation this week, but now expects to do that early next week. And Mr. Rangel and other House leaders had first said they would announce their plan to pay for the legislation on Thursday, only to be slowed by an array of disagreements.

By the way he tucked this nugget into the bill:

Mr. Rangel’s committee is also planning to insert language that would raise the surtax in 2013 if expected cost savings in the health care system do not materialize.

There will be limited cost savings and certain cost increases as the Massachusetts model has clearly shown.. The president and the Democrats has been lying about the amount of money electronic records and preventive care can reduce costs so this all but guarantees further tax increases.

Democrats Balk at Health Care Reform

This is good news, and the longer the legislation is delayed the more likely the worst elements can be kept out of it. As with the stimulus, the mad dash to pass legislation by Democrats is a disaster. There is nothing wrong with passing some type of legislation in regards to health care, but the crisis mentality is dangerous for all of us. Now we have some Democrats calling for the brakes to be hit.

WASHINGTON (AP) -- The drive to remake the nation's health care system suffered yet another setback in Congress on Thursday when a pivotal group of House Democrats demanded changes in legislation the leadership was drafting on a fast track.

The emerging bill ''lacks a number of elements essential to preserving what works and fixing what is broken,'' 40 members of the Blue Dog Coalition of moderate to conservative Democrats wrote party leaders. To win their support, they said, any legislation would need to be much more aggressive in reining in health care costs as well as in addressing a disparity in Medicare payments they said adversely affects rural providers.

A group of the moderates met into early evening with House Speaker Nancy Pelosi and Majority Leader Steny Hoyer and arranged to sit down with committee chairmen on Friday to go over proposed changes. Officials said the public release of the bill, originally set for Friday, would occur no earlier than Monday.

It was the second setback in three days for President Barack Obama's top domestic priority, although it was unclear whether it would amount to anything more than a brief delay for a bill of enormous complexity and controversy.

There was upheaval earlier in the week in the Senate, where the Democratic leadership is intent on scuttling a proposed tax on health care benefits that has long been key to attempts at a bipartisan compromise. At the same time, Senate Majority Leader Harry Reid and others went out of their way during the day to emphasize eagerness for Republican support.

Of course if they scrap the tax on employee benefits they will follow the Rangel method and increase income taxes.

From the Times:

Paying for the roughly $1 trillion, 10-year cost of the health care legislation is arguably the biggest hurdle confronting lawmakers and the White House as they pursue President Obama’s top policy goal of extending health coverage to all Americans and curtailing the steep rise in the cost of medical care.

Senate negotiators had been eyeing a tax on some employer-provided health benefits but shifted course this week after the Senate majority leader, Harry Reid of Nevada, and other top Democrats voiced opposition. The House speaker, Nancy Pelosi of California, said Thursday that the House bill would not tax those benefits.

Instead, the House Ways and Means Committee was said to be nearing agreement on an income tax surcharge of 2 percent or more on Americans with the highest incomes — those earning more than $250,000. The surtax would rise for those earning $500,000 and rise again for those earning more than $1 million.

At the same time, aides said that the House was moving away from other ideas, including a proposed sales tax on sodas and other sugary drinks and a new payroll tax of 0.3 percent to be paid by employees and employers.

The White House has not expressed a position on the surtax, but lawmakers said they had heard no objections so far.

No doubt the President has said nothing, one of the greatest weakness's of this Presidency is Obama's seeming indifference to legislation and the bill writing process. This is no surprise considering he voted present as often as possible and spent his 2 years in the Senate running for the Presidency. Of course the President's declining polls is playing a role in this new resistance as his approval rating is now at 51%:

The Stimulus Disaster Continued

The original stimulus plan was a tragedy and the sloppy manner it was passed was not about economic growth. The only thing it accomplished was to satisfy the wish list of the incumbent Democrats while Obama wasted his political capital on an 800 billion dollar shibboleth written by Pelosi and Reid. Containing provisions such as modifying unemployment benefits it never focused on creating growth, but pork and liberal fantasies. The original grant formulas were themselves questionable as well off districts had an easier time qualifying for money over needier districts, in addition there was the whole AIG Bonus nonsense where Line by Line Obama was shocked to find the bonus protections written in the legislation, (For the Record I have no problem with bonuses but am simply trying to illustrate the Democrats behavior over the Stimulus). As Obama's job loss disaster continues, and understand these job losses are directly related to Obama's plans to burden business, from health care to energy we can only expect an even more frenetic push by Obama and his allies to accomplish their goals. The latest evidence on the questionable nature of this package is how rural areas are tending to get the bulk of the "shovel ready" transportation money.

The stimulus law provided $26.6 billion for highways, bridges and other transportation projects, but left the decision on how to spend most of it to the states, which have a long history of giving short shrift to major metropolitan areas when it comes to dividing federal transportation money. Now that all 50 states have beat a June 30 deadline by winning approval for projects that will use more than half of that transportation money, worth $16.4 billion, it is clear that the stimulus program will continue that pattern of spending disproportionately on rural areas.

“If we’re trying to recover the nation’s economy, we should be focusing where the economy is, which is in these large areas,” said Robert Puentes, a senior fellow at the Brookings Institution’s Metropolitan Policy Program, which advocates more targeted spending. “But states take this peanut-butter approach, taking the dollars and spreading them around very thinly, rather than taking the dollars and concentrating them where the most complex transportation problems are.”

The 100 largest metropolitan areas also contribute three-quarters of the nation’s economic activity, and one consequence of that is monumental traffic jams. A study of congestion in urban areas released Wednesday by the Texas Transportation Institute found that traffic jams in 2007 cost urban Americans 2.8 billion gallons of wasted gas and 4.2 billion hours of lost time.

The Times analysis shows that a little more than half of the stimulus money will be spent on “pavement improvement” projects, mostly repaving rutted and potholed roads. Nearly one-tenth of it will be spent to fix or replace bridges. More than a quarter of the money will be spent to widen roads or build new roads or bridges.

Now Rural areas should get a batch of stimulus money and I can understand people who live in these areas pointing out how important produce and agriculture are to this country. The point is that if you are going to grant money it needs to be done in an equitable and intelligent manner. Not the slap dash approach favored by the Democrats. This behavior is more then incompetence , the Democrats want to pass legislation without people reading it nor anyone understanding it. After wards it can be interpreted and steered in any direction the influence peddlers desire. As people begin to wise up is it any wonder we are begin seeing polling such as this:

The Democrats have about one more year before the the midterms heat up making the passage of any massive legislation highly unlikely as incumbents begin to focus on getting re-elected. A weakened Democrat party, and it has done a remarkable job in frittering away the good will it gained over the years will only maintain nominal control of the Congress based on the sheer weight of its current majorities.

Health Care Savings in Question

The presidents cost saving deals have been questionable since day one if not outright nonsense. We had the whopper about saving two trillion dollars, then the alleged savings from the pharmaceutical industry, and today savings from the hospitals:

WASHINGTON — The deals, trumpeted loudly by the White House, would each help pay for a sweeping overhaul of the health care system.

First, it was a broad consortium of health industry groups — doctors, hospitals, drug makers and insurers, all promising to slow the growth of medical spending by 1.5 percent. Then, it was the big drug makers, promising savings of $80 billion over 10 years, by lowering the cost of medicine for the elderly.

On Wednesday, it will be major hospital associations, pledging to save more than $150 billion over a decade. And a deal with doctors is said to be on tap next.

In each case, the Obama administration hailed the agreements as historic. But what has been little discussed is what the industry groups will be getting in return for their cooperation, whether or not the promised savings ever materialize.

The hospitals are counting on mandated coverage to pay the bills as millions of newly insured patients start to pay the bills, in addition a deal in in the works with doctors but they are pushing for a 250 billion boost in Medicare spending, which by itself would blow up much of Obama's nonsense about health care saving. :

But Rick Pollack, executive vice president of the American Hospital Association, credited Mr. Baucus and his staff with reaching the agreement.

“Hospitals have been long committed to expanding coverage for the millions of Americans that don’t have health insurance,” Mr. Pollack said. “We see this as a historic opportunity to achieve that objective.”

In the case of hospitals, Mr. Pollack said negotiators had worked hard to come to terms not just on the financial issues but also on broad and complex policy matters intended to improve the health care system.

He said hospitals had agreed to about $150 billion in savings after securing assurances that lower reimbursements would come after an insurance expansion that would guarantee that more patients pay their bills.

“We do believe in that regard in particular there are safeguards that are part of this proposal,” Mr. Pollack said.

In addition there is clearly massive political pressure to prevent a tax on employee benefits as well as pressure on Baucus to include the public plan:

Democrats are trying to keep the cost of the legislation to about $1 trillion over 10 years. In a sign of a deepening rift among Senate Democrats, the majority leader, Harry Reid of Nevada, on Tuesday urged Mr. Baucus to drop a plan that would pay for the bill partly by taxing some employer-provided health benefits.

Aides said Mr. Reid, speaking for other Senate Democratic leaders, was concerned that Mr. Baucus had not included any provision for a government-run insurance program to compete with private insurers, which is favored by Mr. Obama and many other Democrats. At a meeting later in the day, aides said, Mr. Baucus pushed back against Mr. Reid, saying his own proposal offered the only clear path to Senate approval.

Months into this battle its clear we have industry, centrist democrats, and some in the GOP working in collusion to pass health care legislation and the left pushing its own plans. Obama has played somewhere in the center-left, pushing government intervention but very happy to appear working with industry. By the way even they scrap the employee benefit tax it can only mean they are going to push Rangel's income tax increase. With the public skeptical of tax increases this will end up the most politcaly contentious issue of them all.

Did North Korea Launch a Cyber Attack?

Its possible, but the sheer audacity of the attack is stunning if true. A more interesting question is who gave them the capability to carry out cyber-warfare. Is North Korea a proxy to probe our defenses or simply a way to test. Perhaps they came up with it on their own. Of course its possible the story is false as well.

SEOUL, South Korea (AP) -- South Korean intelligence officials believe North Korea or pro-Pyongyang forces in South Korea committed cyber attacks that paralyzed major South Korean and U.S. Web sites, a lawmaker's aide said Wednesday.

In the U.S., the Treasury Department, Secret Service, Federal Trade Commission and Transportation Department Web sites were all down at varying points over the U.S. Independence Day holiday weekend and into this week, according to American officials inside and outside the government.

Others familiar with the U.S. outage, which is called a denial of service attack, said that the fact that the government Web sites were still being affected three days after it began signaled an unusually lengthy and sophisticated attack. The officials spoke on condition of anonymity because they were not authorized to speak on the matter.

The sites of 11 South Korean organizations including the presidential Blue House and the Defense Ministry went down or had access problems since late Tuesday, according to the state-run Korea Information Security Agency. Agency spokeswoman Ahn Jeong-eun said 11 U.S. sites suffered similar problems.

On Wednesday, the National Intelligence Service told a group of South Korean lawmakers it believes that North Korea or North Korean sympathizers in the South ''were behind'' the attacks, according to an aide to one of the lawmakers briefed on the information.

The aide spoke on condition of anonymity citing the sensitivity of the information. He refused to allow the name of the lawmaker he works for to be published.The National Intelligence Service -- South Korea's main spy agency -- said it couldn't immediately confirm the report.

By the way this little nugget is in the story:

Yonhap said that prosecutors have found some of the cyber attacks on the South Korean sites were accessed from overseas. Yonhap, citing an unnamed prosecution official, said the cyber attack used a method common to Chinese hackers.

It was the Chinese who allegedly gave us the ghost net, so their computer hacking skills are quite good.

Rangel and a Surtax\Income Tax Increase

Rangel and Waxmen had been dancing around paying the trillion dollar bill being floated about and with Rangel adamantly opposed to taxing employee benefits its appears he and the democrats in Congress are aiming for an increase of the upper bracket for income taxes with the money allegedly for health care but more likely for the general fund.

July 7 (Bloomberg) -- House Ways and Means Committee members are likely to propose a surtax on high-income Americans to help pay for an overhaul of the health-care system, according to people familiar with the plan.

The tax would be similar to, yet much smaller than, a surtax proposed in 2007 by Ways and Means Committee Chairman Charles Rangel, a person familiar with the committee’s talks said. That plan would have added at least a 4 percent levy on incomes exceeding $200,000, and was projected to reap as much as $832 billion over 10 years.

Two people familiar with closed-door talks by committee Democrats said a House bill probably will include a surtax on incomes exceeding $250,000, as Congress seeks ways to pay for changes to a health-care system that accounts for almost 18 percent of the U.S. economy. By targeting wealthier Americans, a surtax may hold more appeal for House Democrats than a Senate proposal to tax some employer-provided health benefits.

“The surtax is obviously more attractive to Democrats in the House because it’s more progressive, which they find attractive in and of itself,” said Paul Van de Water, a senior fellow at the Washington-based Center on Budget and Policy Priorities, a research group focused on policies affecting low- and moderate-income families.

Supporters on the Ways and Means Committee include Representative Lloyd Doggett, a Texas Democrat who backs including a surtax among revenue-raising measures in a health- care package, Doggett spokeswoman Sarah Dohl said.

Of course out its starts with 250,000, only wealthy by ignorant standards, but the rest of us will end up paying this tax as it is rolled down in the face of decreasing revenues. As of now it will be tax the rich and class hatred, of course Obama swore not to raise taxes in a recession, but this is Obama so the promise doesn't mean that much.

Health Care Co-Operatives as an Alternate to the Public Plan

Health care co-operatives have been one of the ideas floated as an alternate to the public plan for some time now. Finding favor in Baucus's finance committee they have been considered something of a foil to a full blown socialist program, hence the opposition from left wing democrats.

On Capitol Hill, those innovations have made Group Health a prototype for a political compromise that could unclog health care negotiations in the Senate and lead to a bipartisan deal. After a month of brainstorming, including briefings from Group Health executives, the Senate Finance Committee seems poised to propose private-sector insurance cooperatives — instead of a new government health plan — as its primary mechanism for stoking competition and slowing the growth of medical costs.

But state officials say Group Health’s impact on holding down costs has been mixed. And its successes may have less to do with its governance — by a board that is elected by patients — than with its ownership of a vast network of clinics and specialty care centers.

Above all, Group Health’s physicians are paid a salary and can earn bonuses of up to 20 percent for high-quality performance. Unlike most doctors, who are paid by the visit or procedure, they have little incentive to churn patients through and order unnecessary tests and operations.

At Group Health, doctors are rewarded for consulting by telephone and secure e-mail, which allows for longer appointments. Patients are assigned a team of primary care practitioners who are responsible for their well-being. Medical practices, and insurance coverage decisions, are driven by the company’s own research into which drugs and procedures are most effective.

As Congress and the White House debate a national health care overhaul, many in Washington agree that one reason health premiums have grown at four times the rate of inflation this decade is a dearth of competition. In 40 of 42 states studied by the American Medical Association last year, the two largest health insurers claimed at least half of all enrollment.

The question is how best to invigorate the system. Republicans and some moderate Democrats are concerned that competition from a government-run insurance plan would eventually drive private companies out of business and leave government as the sole insurer.

If the bill now being finalized by the Finance Committee includes cooperatives, it could set up a confrontation with the Health, Education, Labor and Pensions Committee, which has written legislation to create a government plan along the lines of Medicare.

Of course these co-operatives can be quite profitable, the key being the doctors become salaried professionals who receive bonuses for higher quality care. Of course the devil is in the details on how much the bonuses should be. Pushed by Democrat Kent Conrad, they would limit government's role and more importantly reduce the expenditures required. That in turn would alleviate the political problems of increasing taxes that the democrats have been stumbling over.

Operation Khanjar Continues to Make Progress

Operation Khanjar, which began with the largest Marine helicopter assault in history has been making steady progress in wresting control of Helmland from the various non-state actors (Drug Dealers, Talivab, Warlords). Similar to the surge strategy in Iraq in that the military doesn't just defaet the Taliban, they hold onto the area and build up support.

CAMP LEATHERNECK, Afghanistan (July 6, 2009) – Afghan National Police and forces from Marine Expeditionary Brigade-Afghanistan have restored government control in the town of Khan Neshin as part of MEB-Afghanistan’s ongoing Operation Khanjar, designed to provide stable conditions for the Afghan people by disrupting insurgents’ lines of communication and freedom of movement in Helmand province.

Approximately 500 Marines from 2nd Light Armored Reconnaissance Battalion have moved into the Khan Neshin area, located in the Rig District, near the part of the Helmand River known as “The Fishhook.” This is the first time coalition forces have had a sustained presence so far south in the Helmand River valley. Khan Neshin had been a Taliban stronghold for several years before Afghan and coalition forces arrived and began discussions with local leaders several days ago.

The mission to secure Khan Neshin was part of a larger operation undertaken by International Security Assistance Force and Afghan forces to stabilize towns along the Helmand River Valley in order to connect local citizens with their legitimate government while establishing secure conditions for national elections scheduled for August.

Still no word on the captive US soldier and it appears the Taliban are attempting to make life tough in other parts of Afghanistan as US soldiers have been under significant attacks in the past couple days.

California Credit Rating Slashed

It will get worse before it gets better.

SAN FRANCISCO (Reuters) - California suffered a new setback in its financial crisis on Monday when Fitch Ratings cut its rating on the state's general obligation debt to just two notches above junk status.

Fitch cut its rating on California's long-term bonds to "BBB," two notches above speculative grade, citing the state's budget and cash crisis. The state last week started issuing "IOU" promissory notes to pay for some bills in order to conserve cash.

The credit rating agency also kept the debt of the most populous U.S. state on watch for additional downgrades. California ranks as the lowest-rated state general obligation credit by Fitch, followed by Louisiana, at "A+."

Tom Dresslar, a spokesman for State Treasurer Bill Lockyer, said the other two main credit rating agencies, Standard & Poor's and Moody's Investors Service, could soon follow Fitch's example. "I'm sure their patience is not deep," he said.

Lower ratings threaten to raise California's borrowing costs during a severe cash crunch in Sacramento, the state capital, one of Fitch's top concerns."The folks who are going to end up paying the price are not investors, not the governor, not the legislature, but the taxpayers," Dresslar said.

Standard & Poor's has California's general obligation bonds rated "A" with CreditWatch with negative implications. Moody's has warned of a possible "multi-notch" downgrade in its "A2," sixth-highest investment grade credit rating of California's general obligation debt.

In a statement, Fitch said it cut its "A-" rating "based on the state's continued inability to achieve timely agreement on budgetary and cash flow solutions to its severe fiscal crisis."

I.O.U's, what were they thinking? Will this help bring down the whole muni-bond market?

Mugabe Calls US Official "Idiot"

What am evil man, killed tens if not hundreds of thousands of people and turned the breadbasket of Africa into a night mare state. All the while living an indolent life of plenty while the people suffer.

HARARE, Zimbabwe (AP) -- President Robert Mugabe described the U.S. assistant secretary of state for African affairs as ''an idiot'' after an acrimonious meeting between the two at an African summit in Libya, Zimbabwe's state media reported Monday.

The state Herald newspaper carried the remarks after a briefing Mugabe gave to Zimbabwean reporters at the end of last week's summit of the continentwide African Union.

U.S. Embassy officials in Zimbabwe and Ethiopia, where Assistant Secretary of State Johnnie Carson is visiting, would not comment on the remarks.

According to the Herald paper, Mugabe said nothing came out of those talks.''You wouldn't speak to an idiot of that nature. I was very angry with him, and he thinks he could dictate to us what to do,'' Mugabe was quoted as saying.

He said regional leaders supported the formation of a power-sharing government in February and then ''you have the likes of little fellows like Carson saying 'do this, do that'.''''Who is he? I hope he is not speaking for Obama. I told him he was a shame, a great shame being an African American,'' Mugabe was quoted as saying.

Last we heard from Mugabe he was meeting with fellow tyrant Bashir of the Sudan. Anyway the man is a monster, no other way to describe it. I guess the trillion dollar note he created didn't ease his problems.

Zeleya and O.A.S Rebuffed by Honduras

Zeleya's coup from above was thwarted by the Honduran government leading to dramatic developments oversees. First the dictator Chavez called in all his markers to alienate the government while our government dithered between attacking the new Government and maintaining a cautious tone. Yesterday at least 2 people died in clashes orchestrated by Zeleya and his allies outside of Honduras as the ex-president in a bizarre move tried to play chicken with the government and flew his plane over the airport. Outside of getting people killed and further worsening of the situation one is hard pressed to see what the O.A.S or Zeleya gained from this.

140 Dead in China Clashes

There were reports of heavy fighting and clashes yesterday, but its clear the scale of the violence has been enormous and only the remoteness of the area kept the story form being completely told.

URUMQI, China (Reuters) - At least 140 people have been killed in rioting in the capital of China's northwestern region of Xinjiang, with the government blaming exiled Muslim separatists for the area's worst case of ethnic unrest in years.

Hundreds of rioters have been arrested, the official Xinhua news agency reported, after rock-throwing Uighurs took to the streets of the regional capital on Sunday, some burning and smashing vehicles and confronting ranks of anti-riot police.

The unrest underscores the volatile ethnic tensions that have accompanied China's growing economic and political stake in its western frontiers.

From the Times:

The rioting broke out Sunday afternoon in a large market area of Urumqi, the capital of the vast, restive desert region of Xinjiang, and lasted for several hours before riot police officers and paramilitary or military troops locked down the Uighur quarter of the city, according to witnesses and photographs of the riot.

At least 1,000 rioters took to the streets, throwing stones at the police and setting vehicles on fire. Plumes of smoke billowed into the sky, while police officers used fire hoses and batons to beat back rioters and detain Uighurs who appeared to be leading the protest, witnesses said.

The casualty numbers appeared to be murky and shifting on Monday. A one-line report by Xinhua, the state news agency, giving the estimate of 129 dead and 816 injured attributed the numbers to the regional police department, but did not quote officials by name and did not have any details. Earlier, Xinhua had reported that three civilians and one police officer had been killed.

One regional official reached by telephone put the death toll at 105 and said at least 800 people had been injured. One American who watched the rioting at its height said he did not see people being killed or corpses in the streets, though he said he did see Uighurs shoving or kicking a few Han Chinese. Images of the rioting on state television showed some bloody people lying in the streets and cars burning.

The region is clearly troubled and its no surprise that some Uighur ended up in Afghanistan.

Zelaya on Flight to Honduras: Trip Aborted, Heads for El Salvador

Zeleya Brought it on Himself

7:00 PM
UPDATE: Zeleya Backs off and Heads for El Salvador:

TEGUCIGALPA, Honduras — The ousted Honduran president, Manuel Zelaya, swept over Honduras Sunday evening as crowds of his supporters clashed with soldiers and riot police at the airport.But after his plane swooped in low over the airport and cheers erupted from the crowds below, it veered away and headed to El Salvador.

“The runway’s blocked,” he said in an interview from sky that was broadcast over loudspeakers at the airport. “There’s no way I can land.”

At least one person was killed in clashes between the Ex-Presidents supporters and the military, a clash which was avoidable except for the grandstanding of Zeleya who flew safely away abandoning his supporters.



6:00 PM
If he lands it could be a serious clash or perhaps Civil War. maybe he will be arrested or perhaps he will take power. we will know in a couple hours. For now the Honduran government has closed the airport.

TEGUCIGALPA, Honduras (AP) -- Honduras' exiled president flew toward home in a Venezuelan jet in a high-stakes attempt to return to power on Sunday, even as the interim government ordered the military to turn away the plane.

''I am the commander of the armed forces, elected by the people, and I ask the armed forces to comply with the order to open the airport so that there is no problem in landing and embracing with my people,'' Zelaya said while en route. ''Today I feel like I have sufficient spiritual strength, blessed with the blood of Christ, to be able to arrive there and raise the crucifix.''

Interim President Roberto Micheletti refused to withdraw his order to prevent the plane from landing, and said he would not negotiate with anyone until ''things return to normal.''

''We will be here until the country calms down,'' Micheletti told a news conference. ''We are the authentic representatives of the people.''

Thousands of protesters descended on the airport in the Honduran capital in anticipation of the showdown, vastly outnumbering about 250 officers. The officers fell back to form a line at a ramp leading to the facility, and some protesters pressed against their riot shields as others waved Honduran flags and posters of Zelaya, chanting ''Honduras! Honduras!''

There was no immediate violence. Police helicopters hovered overhead, and commercial flights were canceled.

The fact that he is on Venezuelan jet should illuminate how much this thug is allied with Chavez. Anyway he is not alone:

At least three other planes left the Washington area separately, carrying Latin American presidents, the secretary-general of the Organization of American States and journalists. They were trailing Zelaya to see what happens in the skies over Honduras before deciding where to land.

Flying with Zelaya were close advisers and staff, two journalists from the Venezuela-based network Telesur, and U.N. General Assembly President Miguel D'Escoto Brockmann, a leftist Nicaraguan priest and former foreign minister who personally condemned Zelaya's ouster as a coup d'etat.

The Telesur crew enabled Zelaya to speak in a live interview from the air. ''No one can obligate me to turn around,'' Zelaya declared.But with their safety not guaranteed, Ecuadorean President Rafael Correa pleaded with the Honduran military forces to avoid bloodshed. ''If there is violence the whole world must clearly know who is responsible,'' he said.

If Zelaya's plane is allowed to land, the others will land as well, Correa said. If not, Correa, the presidents of Paraguay and Argentina and Jose Miguel Insulza, the secretary-general of the Organization of American States, planned to land in El Salvador.

Honduras' new government has vowed to arrest Zelaya for 18 alleged criminal acts including treason and failing to implement more than 80 laws approved by Congress since taking office in 2006.

Despite a Supreme Court ruling, Zelaya had also pressed ahead with a referendum on whether to hold an assembly to consider changing the constitution, and critics feared he would press to extend his rule. But instead of prosecuting him or trying to defeat his referendum idea at the ballot box, other Honduran leaders sent masked soldiers to fly Zelaya out of the country at gunpoint.

I hope they turn him back or arrest him on the spot.

North Korean Missiles Can Hit Key Targets in South Korea

Great:

SEOUL, South Korea (AP) -- The ballistic missiles that North Korea test-fired this weekend were likely capable of striking key government and military facilities in South Korea, a defense official said Sunday, amid growing concerns over Pyongyang's firepower.

North Korean state media did not mention the launches but boasted that the country's military could impose ''merciless punishment'' on those who provoke it.

Pyongyang launched seven missiles into waters off its east coast Saturday in a show of force that defied U.N. resolutions and drew international condemnation.

The missiles appear to have traveled about 250 miles (400 kilometers), meaning they could have reached almost any point in South Korea, an official at the South Korean Defense Ministry said on condition of anonymity, citing department policy.

India Now Questioning the Dollar: Push For Replacement Gains Steam

Not good, and the way things are going the call to reduce if not eliminate the dollar as a cash reserve can have devastating results for the United States. China and others have questioned their use of the dollar in the face of the massive spending and fiscal lunacy of Obama and people questioning the countries solvency, to now have a country that has been quite friendly with the United States also push to replace the dollar is a troubling sign:

July 4 (Bloomberg) -- Suresh Tendulkar, an economic adviser to Indian Prime Minister Manmohan Singh, said he is urging the government to diversify its $264.6 billion foreign-exchange reserves and hold fewer dollars.

“The major part of Indian reserves is in dollars -- that is something that’s a problem for us,” Tendulkar, chairman of the Prime Minister’s Economic Advisory Council, said in an interview yesterday in Aix-en-Provence, France, where he was attending an economic conference.

Singh is preparing to join leaders from the Group of Eight industrialized nations -- the U.S., Japan, Germany, Britain, France, Italy, Canada and Russia -- at a summit in Italy next week which is due to tackle the global economy. China and Brazil will also send representatives to the summit.

As the talks have neared, China and Russia have stepped up calls for a rethink of how global currency reserves are composed and managed, underlining a power shift to emerging markets from the developed nations that spawned the financial crisis.

The solution being floated right now is combine a slew of currencies into some type of supranational currency so as to diversify the financial holdings. The implications for the United States are clear and all of these proposals are aimed at weakening our nation. Of course we have the trump card that despite Obama's spending people understand our government sort of respects private property (Unless you are a Chrysler Bondholder) keeping the US dollar a haven in the world.