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Sep 23, 2010
via Tales from the Trail

Washington Extra – Two to tango


One of the more surreal experiences at the Reuters Washington Summit this week was hearing Republicans saying they are prepared to work with President Barack Obama over the next two years and then listing their priorities – which started with undoing and repealing almost everything he has done in the past two.

Today, at the Tart Lumber Company in Virginia, John Boehner unveiled the Republicans’ “Pledge to America” – a glossy 45-page booklet meant to set out their agenda for government. “Republicans have heard the American people,” said Boehner, the party’s leader in the House of Representatives.

Sep 22, 2010
via Tales from the Trail

Washington Extra – The finer things in life


If I come back in my next life as an American, I am thinking that a career in the Senate might be a better way to go than in the administration or the military. Whatever you think of their political views, the senators who have visited our offices for the Washington Summit this week have not just been charming and interesting to talk to, they also seem to have time for the finer things in life. Take Senator Lamar Alexander, who not only has the time to watch Tennessee football pretty regularly, but also likes to play classical piano and has a date on center stage with the Jackson Symphony at the end of next month. “I try to keep a balanced life,” he said.

No such luck for hard-pressed administration types, working at a pace that White House Press Secretary Robert Gibbs says “is and has been grueling for a long period of time,” especially if you take two years of campaigning into account. Take Austan Goolsbee, who used to compete in the triathlon, but now has no time to train and jokes he is so out of shape he can’t walk up the stairs without gasping for breath. Or General David Petraeus, who is already at work by 5:30 in the morning, and when he goes to bed around 10 or 11 at night, only manages a couple of pages in whatever book he is reading “before it falls on the floor.”

Sep 21, 2010
via Tales from the Trail

Washington Extra – Painful choices


When it comes to framing economic policy, it looks increasingly as though Republicans are winning the debate. Not only have they made “stimulus” almost a dirty word but there seems to be a growing feeling that deficit-financed spending is not a great way to pull the economy out of a recession. Forget the conclusions of the bipartisan Congressional Budget Office about how the bailouts and stimulus of 2008 and 2009 saved millions of jobs. Forget the global consensus around the need for coordinated stimulus after the financial crisis. The American public is simply not convinced.

The Reuters/Ipsos poll released today found 57 percent of Americans believe that, when economic times are tough, cutting the deficit is a better way to create jobs than deficit-financed stimulus.

Sep 21, 2010
via Tales from the Trail

Washington Extra – Gridlock and the fiscal deficit


The term gridlock may have first entered the vocabulary during the 1980 New York transit strike, reportedly coined by “Gridlock Sam” Schwartz, chief traffic engineer in the city’s transport department.  In those days it was definitely not something to aspire to. It is a different story in 2010.

“Gridlock’s not all bad,” Republican Senator Richard Shelby told the Reuters Washington Summit today, citing the need to “slow things down” politically.  His fellow Senator and Tea Party champion Jim DeMint would probably go even further.

Sep 17, 2010
via Tales from the Trail

Washington Extra — The nemesis of Wall Street?


We didn’t get the chance to compare the folksy style of Elizabeth Warren with the more cerebral style of Treasury Secretary Tim Geithner when her appointment was confirmed by the president on the Rose Garden lawn today.

Warren, a janitor’s daughter whose grandmother drove a wagon in the Oklahoma land rush, has been asked to set up a powerful new consumer protection agency, reporting to both Geithner and President Barack Obama. How she will juggle her relationship with the two men is just one of the many questions facing Warren tonight. We are told she gets on fine with Geithner these days, although their relationship has been a little rocky in the past. Obama, by contrast, is effusive about his “dear friend” and was describing her writings as eloquent, passionate and forceful, even before the financial crisis hit.

Sep 16, 2010
via Tales from the Trail

Washington Extra – Goldilocks Geithner


Not too hot, not too cold, just right.

U.S. Treasury Secretary Timothy Geithner performed a delicate balancing act on the Hill today. On the one hand, Geithner had to tell an increasingly angry Congress that he was serious about trying to persuade China to revalue its currency, the yuan. On the other, he wanted to head off the kind of unilateral action from Congress that could provoke a trade war, and endanger the administration’s efforts to engage Beijing on a whole slew of issues.

Democratic Senator Charles Schumer raged that “China’s currency manipulation is like a boot to the throat of our recovery,” and accused Geithner of being the only person in the room who did not believe China was manipulating its currency.

Sep 15, 2010
via Tales from the Trail

Washington Extra – Whose party?


As a Brit I never like to write too much about the Tea Party, but today I have no choice.

Every week that goes by the movement seems to gain more momentum. On Tuesday, our poll showed Democratic heavyweight Harry Reid clinging to a narrow lead in Nevada against Tea Party insurgent Sharron Angle. That night, Republican establishment favorite Michael Castle was knocked off his perch in the Delaware primary by upstart Christine O’Donnell. Today, our Reuters/Ipsos poll shows one of the Tea Party’s most well-known favorites, Marco Rubio, opening a clear lead in the race for a Senate seat from Florida. With just six weeks to go until the elections, Rubio leads state Governor Charlie Crist, now running as an independent, by 40 percent to 26 percent, with Democrat Kendrick Meek trailing behind.

But who is going to benefit?

Republicans are hoping the surge in enthusiasm for a right-wing agenda will get their supporters to the polls, and right now there is a definite “enthusiasm gap” between Republicans and Democrats in terms of their likelihood to vote.

Sep 13, 2010
via Tales from the Trail

Washington Extra – I see your gauntlet, and raise you a gauntlet


On Friday, President Barack Obama threw down the gauntlet to Republicans on taxes, effectively daring them to vote against a tax cut for the middle classes, just so that they can give an average of $100,000 in tax cuts to millionaires.

Over the weekend, Republican leader of the House John Boehner seemed to shirk the challenge, but on Monday, Senate minority leader Mitch McConnell picked up the gauntlet and threw it right back. McConnell has promised to introduce legislation “today” to ensure that “no one in this country pays higher income taxes next year than they are right now.” There are no Republicans who support a tax hike, he said, effectively daring Democrats to vote for higher taxes when the economy is in the mire.

Sep 10, 2010
via Tales from the Trail

Washington Extra – Drawing the battle lines

Good afternoon,

President Barack Obama’s news conference this morning was a very deliberate drawing of the battle lines ahead of November’s mid-term polls. Obama was back in campaign mode and seemed much more confident about his message again.

The key campaign message for voters and fellow Democrats: Republican policies got America in trouble, and they are still peddling exactly the same policies today.

Sep 9, 2010
via Tales from the Trail

Washington Extra – Shuffling the pack


We hear the White House is not wildly pleased with former budget chief Peter Orszag for abandoning the party line on tax policy this week. Now Democrats in Congress are beginning to distance themselves from President Barack Obama’s push to let taxes rise for the wealthiest Americans. We are unlikely to see this resolved before the mid-terms anyway, and there are still several different ways this could pan out. One possible compromise would be a short extension of the tax cuts for the rich and a longer extension for the middle classes, keeping any crucial decisions as far away from the 2012 campaign season as possible.

More today on the potential for a reshuffle in Obama’s inner circle after the November elections, especially if Rahm Emanuel departs for Chicago. Democratic sources tell us Larry Summers, never that happy in his role, might be among those who leave, but that Treasury Secretary Tim Geithner is likely to stay the course.

    • About Simon

      "Simon is Washington Bureau Chief for Reuters and author of the Reuters Washington Extra newsletter and blog, a daily look at political and economic news from the capital. He has 18 years experience covering politics, economics and financial markets for Reuters for text and television all over the world, including in the United States, Europe, Asia, Latin America and Africa. Before arriving in Washington, he spent seven years as Reuters bureau chief in Pakistan, Afghanistan and then India, and is the editor of Foreign Correspondent: Fifty Years of Reporting South Asia, which was published by Penguin India in 2008 and ..."
      Joined Reuters:
      French, Spanish
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      Foreign Correspondent: Fifty Years of Reporting South Asia
      Penguin, 2008
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