High Stakes for Obama: No Deal Means First Modern President to Default

Photo Credit: APFor President Barack Obama, the outcome of this week’s fiscal fights with Republicans could have broad consequences for his stalled second-term agenda.

A favorable deal for the White House might give Obama an opening to marginalize the tea party Republicans who have tried to win concessions from him in order to reopen the government and raise the nation’s debt ceiling. But if no agreement is reached by Thursday’s debt limit deadline, Obama will become the first modern president to preside over a government default, a dubious distinction with potentially calamitous economic consequences that could consume the White House for the foreseeable future.

Another, perhaps more likely, option: Obama ends up signing short term bills that keep Washington in the never-ending cycle of deadline-driven budget battles. For Obama, that would mean fiscal issues would keep consuming the oxygen in the nation’s capital at a time when he is already watching his window for passing significant domestic legislation close.

“It’s a ticking clock,” Julian Zelizer, a political historian at Princeton University, said of presidential second terms. “He’s already into the red zone in terms of getting things done.”

On Monday, Obama and Senate leaders indicated they were optimistic that an agreement might be at hand to prevent a national financial default and reopen the government after a two-week partial shutdown. Officials in both parties were discussing a proposal to raise the debt ceiling through the spring, as well as a shorter deal to fund the government for several weeks.

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US Army Defines Christian Ministry as ‘Domestic Hate Group’

Photo Credit: Fox News Several dozen U.S. Army active duty and reserve troops were told last week that the American Family Association, a well-respected Christian ministry, should be classified as a domestic hate group because the group advocates for traditional family values.

The briefing was held at Camp Shelby in Mississippi and listed the AFA alongside domestic hate groups like the Ku Klux Klan, Neo-Nazis, the Black Panthers and the Nation of Islam.

A soldier who attended the briefing contacted me and sent me a photograph of a slide show presentation that listed AFA as a domestic hate group. Under the AFA headline is a photograph of Westboro Baptist Church preacher Fred Phelps holding a sign reading “No special law for f***.”

American Family Association has absolutely no affiliation with the controversial church group known for picketing the funerals of American servicemembers.

“I had to show Americans what our soldiers are now being taught,” said the soldier who asked not to be identified. “I couldn’t just let this one pass.”

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Catholic Priest Threatened with Arrest If Voluntarily Conducts Mass On Navy Base During Shutdown

Photo Credit: WNDIn what has been described as “an astonishing attack on religious freedom,” Catholics at a Navy base were banned from attending worship services because of the partial shutdown of the federal government.

In response, the Thomas More Law Center announced it has filed a lawsuit over the orders at Kings Bay Naval Submarine Base in Georgia.

The legal team said a Catholic priest who serves the community on the military base “has been prohibited from even volunteering to celebrate Holy Mass without pay and was told that if he violated that order, he could be subject to arrest.”

Without explanation, however, Protestant services continued.

“This is an astonishing attack on religious freedom by the federal government and the latest affront toward the military since the beginning of the shutdown,” said a report by the Thomas More Law Center.

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Unions Poised to Win Delay of ObamaCare Tax in Budget Deal

Photo Credit: majunznkLabor unions are poised to score the delay of an ObamaCare tax in the bipartisan budget deal emerging in the Senate.

The bargain under negotiation would make small adjustments to the healthcare law, including delaying the law’s reinsurance fee for one year. The three-year tax is meant to generate revenue that will stabilize premiums on the individual market as sick patients enter the risk pool.

The tax applies to all group health plans, but unions argue it will raise their healthcare costs while providing them no benefit.

The reinsurance tax figured prominently in discussions at a recent AFL-CIO convention, where workers passed a resolution demanding changes to ObamaCare.

The White House recently denied labor’s top priority on ObamaCare, ruling that union health plans are not eligible for the new subsidies because they are already helped by the tax code.

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NSA Collects Millions of E-mail Address Books Globally

Photo Credit: Social BIz SolutionsThe National Security Agency is harvesting hundreds of millions of contact lists from personal e-mail and instant messaging accounts around the world, many of them belonging to Americans, according to senior intelligence officials and top-secret documents provided by former NSA contractor Edward Snowden.

The collection program, which has not been disclosed before, intercepts e-mail address books and “buddy lists” from instant messaging services as they move across global data links. Online services often transmit those contacts when a user logs on, composes a message, or synchronizes a computer or mobile device with information stored on remote servers.

Rather than targeting individual users, the NSA is gathering contact lists in large numbers that amount to a sizable fraction of the world’s e-mail and instant messaging accounts. Analysis of that data enables the agency to search for hidden connections and to map relationships within a much smaller universe of foreign intelligence targets.

During a single day last year, the NSA’s Special Source Operations branch collected 444,743 e-mail address books from Yahoo, 105,068 from Hotmail, 82,857 from Facebook, 33,697 from Gmail and 22,881 from unspecified other providers, according to an internal NSA PowerPoint presentation. Those figures, described as a typical daily intake in the document, correspond to a rate of more than 250 million a year.

Each day, the presentation said, the NSA collects contacts from an estimated 500,000 buddy lists on live-chat services as well as from the inbox displays of Web-based e-mail accounts.

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Feds Reviewed Only One Bid for Obamacare Website Design

Photo Credit: Washington Examiner Federal officials considered only one firm to design the Obamacare health insurance exchange website that has performed abysmally since its Oct. 1 debut.

Rather than open the contracting process to a competitive public solicitation with multiple bidders, officials in the Department of Health and Human Services’ Centers for Medicare and Medicaid accepted a sole bidder, CGI Federal, the U.S. subsidiary of a Canadian company with an uneven record of IT pricing and contract performance.

CMS officials are tight-lipped about why CGI was chosen or how it happened. They also refuse to say if other firms competed with CGI, or if there was ever a public solicitation for building Healthcare.gov, the backbone of Obamacare’s problem-plagued web portal.

Instead, it appears they used what amounts to a federal procurement system loophole to award the work to the Canadian firm.

CGI was one of 16 companies that had been qualified by HHS during President George W. Bush’s second term to deliver, without public competition, a variety of hardware, software and communication products and services.

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Why College Costs Will Soon Plunge

Photo Credit: AP“My goal,” says the candidate, “is a healthier America. That is why I am setting an ambitious target of sending 1 million more Americans to the hospital in the next five years. To make sure they get there, I am announcing a new, low-interest loan program to help them pay for their treatment. This will ensure that hospital costs stay within reach of the typical American family.”

If you heard a speech like that, you probably would start scratching your head. Sure, people with acute medical conditions need hospital care. But most people don’t have to lie for weeks in a hospital bed to get healthy. And lavishing more money on hospital care will simply drive the price up — just as giving everyone a $2,000 vehicle subsidy would jack up prices for cars and trucks.

Yet this is what politicians routinely propose for higher education: Send more people to college, and give them more money to help them get there. Virginia Gov. Bob McDonnell proposed cranking out 100,000 more college degrees in 15 years. Around the same time, President Barack Obama said he wanted the U.S. to have “the highest proportion of college graduates in the world” — which would more than double enrollment. His new higher-ed plan calls for yet more financial aid….

Trend lines like these cannot go on — and they won’t. But not because of politicians’ efforts to rein in college costs. College costs will drop because of market forces politicians will be powerless to stop.

In his new book Average Is Over, George Mason University economist Tyler Cowen explains why: Thanks to the Internet, you no longer have to sit in a lecture hall to get a superb education. And you certainly don’t have to shell out ungodly sums for five-star dormitories, Olympic-level gymnasiums and sushi bars.

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Rick Perry to Appear in Anti-D.C. Ads

Photo Credit: APAn advocacy group tied to Texas Gov. Rick Perry is poised to launch a six-figure national ad campaign criticizing dysfunction in Washington and declaring that “conservative governors” are leading the way with policy solutions, POLITICO has learned.

Americans for Economic Freedom, a conservative 501(c)4 nonprofit, will run TV ads for 10 days on Fox News, MSNBC and CNBC, as well as radio ads on a host of nationally syndicated shows. The television commercials feature Perry talking about the work of Republican state executives outside D.C.

The ads will hit the TV and radio airwaves Tuesday, against a backdrop of historic public disgust with Washington, D.C., as the federal government remains shut down and teetering on the edge of defaulting on its debts.

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Gabrielle Giffords Attends First Gun Show Since Shooting

Photo Credit: AP/Tim RoskeA smiling Gabrielle Giffords toured rows of tables loaded with rifles and handguns in her first visit to a gun show since surviving a 2011 shooting, and pleaded afterward for people to come together to stop gun violence.

The former Arizona congresswoman visited the Saratoga Springs Arms Fair on Sunday with her astronaut husband, Mark Kelly and New York Attorney General Eric Schneiderman to highlight a voluntary agreement that closely monitors gun show sales in New York.

The trio mixed with a gun show crowd that was mostly welcoming — with a few hostile undertones — before calling for people to build on the cooperative effort.

“We must never stop fighting,” Giffords said at a post-tour news conference, her fist in the air. “Fight! Fight! Fight! Be bold! Be courageous!”

Giffords, a face of the national gun control effort, slowly walked hand-in-hand with Kelly through the large room where Winchester rifles, muzzle-loaders, antique knives and other weapons were on display and “Don’t Tread on Me” flags hung from poles.

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Feds Removed Handles From 40 Public Water Pumps Along C&O Canal

Photo Credit: APNational Park Service (NPS) rangers removed the handles from some 40 public water pumps and closed restrooms in the 184.5 mile- C&O Canal National Historical Park, but they haven’t been able to keep hikers and bikers off the popular trail known as a “cyclist’s dream.”

“It’s full every day,” said Gail Hall, who runs Mountain Side Bikes at the trailhead in Cumberland, Md. “They’re bringing in their own water and utilizing the tree-lined areas [of the park] for restrooms. Some towns like Harper’s Ferry even brought in potties to accommodate them. As long as they can pedal, they don’t care.”

Cumberland Times-News reporter Matthew Bieniek, who first reported that the handles on the park’s old-fashioned water pumps had been removed as part of the federal government shutdown, told CNSNews.com that Park Superintendent Kevin Brandt told him that the pumps had been disabled “to discourage people from attempting to use the park.”

But Michael Nardolilli, president of the non-profit C&O Canal Historical National Park Trust, which runs interpretive programs at the park’s historic lockhouses, later said that the pump handles were removed for “public health reasons.”

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