From Volume 7, Issue 35 of EIR Online, Published August 26, 2008

United States News Digest

California Budget Crisis, Day 50

LOS ANGELES, Aug. 20 (EIRNS)—Even right-wing radio shockjocks are turning on Gov. Arnold Schwarzenegger, causing George Shultz's Golem to melt down, as he did on a radio talk show yesterday. As the California budget crisis, which is only an advanced, local manifestation of the disintegration of the world financial system, hit day 50, with no end in sight, Schwarzenegger went on KFI radio to yuck it up with hosts John and Ken, who have generally served as media flaks for the fascist governor.

This time, they turned on him, accusing him of abandoning his promise to "fix" the state's dysfunctional fiscal situation, in order to pursue radical environmental policies. This apparently struck a nerve. After nervously trying some banter to deflect the charge, the Governator blustered, "This is absolutely absurd, what you're saying right now.... You're living in the Stone Age if you think the environmental issue has anything to do with the budget or the declining economy worldwide."

He continued: "Don't lie to the people ... don't pull the wool over their eyes. It's nonsense Republican right-wing talk," said the Republican governor.

When asked if he has any regrets, as the state is no better off today, under his governance, than it was five years ago under his predecessor, Gray Davis, whom he replaced in a special recall election (it is actually in much worst shape, and sinking fast!), Schwarzenegger again demonstrated how removed he is from reality. "I made great decisions. I have no regrets at all. It's just the regret I have is that not everyone is seeing it exactly as I see it."

Do Democrats Want a Cheney Look-Alike for President?

Aug. 19 (EIRNS)—It was hard to tell the difference between Barack Obama and the Bush-Cheney White House, during Obama's speech to the Veterans of Foreign Wars today. After defending his record on Iraq and Afghanistan, Obama vowed that "as Commander in Chief, I will have no greater priority than taking out these terrorists who threaten America, and finishing the job against the Taliban," which, he said, means "more resources and more troops to finish the fight in Afghanistan." On Georgia, he declared that "I have condemned Russian aggression, and today I reiterate my demand that Russia abide by the cease-fire. Russia must know that its actions will have consequences. They will imperil the Civil Nuclear Agreement, and Russia's standing in the international community including the NATO Russia Council, and Russia's desire to participate in organizations like the WTO and the OECD."

His call for killing the Civil Nuclear Agreement (the "123 Agreement") goes further than McCain did in his speech to the VFW yesterday, where he called for barring Russia from the G8 and the WTO, but didn't say anything about the Civil Nuclear Agreement. It also goes further than the White House, which has defended the "123 Agreement" in the face of Congressional, largely Democratic, opposition.

Dem Govs to Obama: Get Concrete on Jobs, Economy

Aug. 18 (EIRNS)—Presumptive Democratic Presidential candidate Barack Obama must get more concrete on the economy and job creation, and forget the speeches about "hope" and "change," 15 Democratic governors told the New York Times, according to an article published Aug. 17. The critics also include state party chairs and Congressmen. Gov. Phil Bredesen of Tennessee told the Times that even though Obama went to Harvard, it should be possible for him to talk to ordinary Americans about bread-and-butter issues.

A July Times/CBS poll showed Obama in a dead heat with putative Republican candidate John McCain, after outspending McCain by 2-1 in July. The 2004 losing Democratic candidate, John Kerry, was in the same "dead heat" position with George Bush at the pre-convention days in 2004.

* Gov. Ted Strickland (D-Ohio) said, "I particularly hope he strengthens his economic message. Even Sen. Obama can speak more clearly and specifically, about the kitchen table, bread and butter issues like high energy costs. It's fine to tell people about hope and change, but you have to have plenty of concrete, pragmatic ideas that bring hope and change to life."

* Tennessee Gov. Bredesen, whom the Obama campaign is sending to campaign in other states because it has written off Tennessee, told the Times: "Instead of giving big speeches at big stadiums, he needs to give straight-up ten-word answers to people at Wal-Mart about how he would improve their lives." Bredesen says Obama has little chance of carrying his state, and adds, "I would really like to see him do things in Tennessee that would help in other working class and blue collar places, like Ohio. Job security and health care are huge here. He needs to come to the aisle of Home Depot and show them that a Harvard graduate which I am as well knows how to help them."

* Gov. Bill Ritter (Colo.) said, "His message is the right one, but he needs to turn up the volume and sharpen it a bit, because these are voters who care a great, great deal about the future of the economy. He has to convince them that he is ready for that huge task."

The Rothschild Factor in the Democratic Party

Aug. 17 (EIRNS)—Last month Lady Lynn (Forester) de Rothschild's American group, Together4Us, hosted a private meeting for John McCain campaign spokesman Carly Fiorina to explain why a couple of dozen top supporters of Hillary Clinton, whom Mrs. Rothschild's group had assembled there, should support McCain for President.

The July 15 meeting, reported the next day in the Wall Street Journal, was part of the intervention of Mrs. Rothschild into the brawl leading up to the Democratic National Convention in Denver. Mrs. Rothschild and her husband, the elderly British banker Lord Evelyn de Rothschild, will attend the convention.

As the Rothschilds are longtime contributors to the Clintons, she has been put forward by her friend Rupert Murdoch in his Fox TV News, his London Times, and his Wall Street Journal, as the preeminent supporter of Hillary Clinton. Rothschild is presented as steering anti-Obama anger towards support of McCain, without reference to overturning an Obama Democratic nomination.

Evelyn de Rothschild has just retired as head of the British branch of the Rothschild banking empire. With her husband's money, and with the political aid of Britain's New Labour insider Peter Mandelson, Mrs. Rothschild created the "Policy Network," the British lobbying group linking Tony Blair's New Labour and the Democratic Leadership Council (DLC), the U.S.-based right-wing group devoted to killing off the Franklin Roosevelt legacy from within the Democratic Party.

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