Newsflash


The moment Republican lawmaker Joe Wilson heckled President Obama

Let me be perfectly clear about one thing from the very start.

I have no idea if Representative Joe Wilson of Southern Carolina is a racist. And in Barack Obama's America, that puts me more or less in a minority of one.

Mr Wilson is the person around whom an ugly debate about race and opposition politics has crystallised in this country from the moment he was photographed - looking a little wild-eyed with passion - shouting the words "You Lie!" at President Obama during his speech to Congress.

It seems to me that only Mr Wilson knows for sure what motivated him.


It might have been a serious principled concern at the expansion of government under Barack Obama and the level of borrowing needed to pay for it - it might equally have been simple anger at the idea of living under a black man in the White House.

In the angry, febrile atmosphere of modern American politics, though, every pundit and politician worth his or her salt (and quite a few who aren't) find no difficulty in interpreting Mr Wilson's motives with absolute conviction.

 Columnist Maureen Dowd wrote of "hearing" the unspoken word "boy" on the end of Mr Wilson's phrase - in American racial politics a belittling epithet that reeks of the cotton-field and the slaver's plantation.

Nothing could have summed up more vividly and chillingly the context in which many liberals see the Wilson outburst.

Here, they argue, was something that went beyond the disrespect of the president's office implied by mere heckling. Here was something that implied to anyone who knows the codes and tones of American politics a contemptuous sense of racial superiority over the commander-in-chief.

Wilson's defence

As far as this debate goes, Mr Wilson has littered his path to public service with hostages to fortune.

 He worked for segregationist politician Strom Thurmond who once boasted that there were not enough troops in the American Army to force white southerners to share theatres and swimming pools with blacks.

And he was part of a political rearguard that tried to stop the state of South Carolina removing the flag of the old confederacy from the top of its capitol building.

Some southern whites see the "Stars and Bars" as an honourable relic of a noble cause - just about all African-Americans see it as an ugly and offensive relic of slavery.

The Wilson family have been swiftly deployed to counter the impression left by that CV.

The congressman's son says "there is not a racist bone in my dad's body" and his wife is now appearing in a political ad on TV talking about how she had rung him after the Obama speech to ask who had interrupted the president.

The point being, of course, that it never occurred to her that it would be him.

Carter factor

Former President Jimmy Carter raised the whole debate to a new level of seriousness by arguing in an interview with NBC TV that an "overwhelming proportion" of the hostility directed at Mr Obama is based simply on the fact that he is a black man.

Mr Carter is no stranger to making remarks that his successors in the White House will find unhelpful - remember his suggestion that it is time for America to start talking to Hamas?

But this in particular is a suggestion from which the White House would run a mile.

During the presidential campaign Mr Obama and his aides worked tirelessly to ensure that his victory was not portrayed as a racially polarising reckoning with the past - a kind of payback for the black community after centuries of oppression and disadvantage.

The last thing the administration wants to do now is create the impression that it views nearly all opposition to its plans as racist - that would be tantamount to arguing that no decent person could possibly disagree with the government's healthcare plans, hardly a winning strategy in a democracy.

Mr Carter's words were presumably directed at the nastier fringe of the people who do not like Mr Obama - like the angry fringe who carry posters of him dressed up as an African witch-doctor or persist in the hopeless belief that they can somehow "prove" he was not born in the US and that therefore, somehow, he cannot really be president.

But on the right, there are plenty of people who insist that those protesters are uncomfortable with Mr Obama purely because they see him as a big-government liberal, not because he is black.

Perceptions and prejudices

Proving anything one way or the other in this sort of debate in America is extraordinarily difficult.

Racism and the responses to it are conveyed in code at least on the public stage here and attaching motives to what people do and say is never easy.

Perceptions depend as much on the prejudices of the accuser as they do on the prejudice of the accused.

But in the end, the point is this.

It does not really matter whether Joe Wilson is really a racist or not.

Whatever his motives, his words are a brutal reminder that the election of Barack Obama did not usher in a new age of post-racial politics in the US if anyone was naive enough to think that it might.

And if history is any judge, you need not worry about Mr Wilson's prospects of re-election, by the way. South Carolina was traditionally a place apart in such matters.

In 1856, a pro-slavery representative from the state called Preston Brooks took a gold-tipped cane and beat the abolitionist Senator Charles Sumner half-to-death while an accomplice held off any would-be rescuers with a firearm.

Mr Brooks of course, was forced to resign his seat, but when fresh elections were held, his constituents simply re-elected him and sent him back to Washington.

 

 

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Obama takes tougher line on oil spill
User Rating: / 1
Thursday, 20 May 2010

Obama takes tougher line on oil spill

Obama administration directed more fire against BP, ordering it to provide daily updates on its efforts to contain the spill

Barack Obama

Barack Obama delivers at the White House in Washington. The Obama administration directed more fire against BP tonight. Photograph: Jonathan Ernst/Reuters

The Obama administration directed more fire against BP last night, ordering it to provide daily updates on its efforts to contain the spill and to stop the use of a toxic chemical dispersant to break up the slick.

The White House said it expected the oil company to post daily updates on its website. "We think that is what the company owes, again, both us and the American people, as we work through our response and as the public has questions about their operations," White House spokesman Robert Gibbs said.

The toughening line on BP comes as the Obama administration has faced heavy criticism for downplaying the scale of the disaster, despite evidence the spill could be caught up in currents that would drag it along the Atlantic coast. Last night it was reported that oil had washed into the marshes at the mouth of the Mississippi, coating the grasses of Louisiana's wetlands, home to rare birds, mammals and a rich variety of marine life.

The Environmental Protection Agency said it was ordering BP to stop the use of two forms of Corexit because of the high toxicity and relative ineffectiveness against the type of crude now polluting the gulf. The two versions of the chemical are banned in the UK because they are damaging to sea life.

More than 600,000 gallons of chemicals have been sprayed on the surface of the gulf, with another 55,000 injected directly into the oil billowing out of the ocean floor.

"Because of its use in unprecedented volumes and because much is unknown about the underwater use of dispersants, [the] EPA wants to ensure BP is using the least toxic product authorised for use," the agency said in a statement.

The heavy reliance on chemical dispersants to break up the spill has raised concern among scientists and environmentalists.

Scientists say the chemicals could be doing more for the oil company's PR than for the overall cleanup of the gulf. The chemicals that break up the oil into small droplets help prevent giant tides of oil washing up on shore.

But they are carcinogenic, mutagenic and highly toxic, and it is unclear how much damage they are causing to marine life in deep water – a risk acknowledged by Jackson.

The ban on Corexit and the demand for BP to release video footage and scientific data could help defuse growing frustration at the failure to contain the spill one month after the Deepwater Horizon went down.

Scientific agencies such as the EPA are now in the line of fire, as is the National Oceanic and Atmospheric Agency (NOAA), which is in charge of oceans.

Much of that pressure revolves around the refusal of BP and the administration to give a reliable estimate for the amount of oil gushing from the ocean floor.

Congress as well as independent scientists have been demanding for days that the government agencies or BP update their estimate for the spill.

BP claimed yesterday that a tube inserted into the broken pipe was collecting some 5,000 gallons of oil a day – but that is the total amount BP initially claimed was leaking from the well. Video footage continues to show oil billowing from the pipe.

The NOAA chief, Jane Lubchenco, has also tried to brush aside demands to produce an estimate for how much oil has now entered the gulf, and where it might be headed.

"At this point, it would not be appropriate to speculate on what that estimate is," she told a conference call with reporters last night.

 
Slowdown Fear Hits Market
User Rating: / 0
Thursday, 20 May 2010

New worries about the health of the global economy flared Thursday, driving U.S. stocks to their first official correction since the bull market began last March, roiling credit markets and causing big swings in currencies.

Large investors, such as hedge funds, pared back riskier investments that tend to do better in a global economic rebound but get hammered harder in a slowdown. Many shed investments in emerging-market or commodity-producing countries like Brazil or Australia. Such investments had been a popular way to bet that the global economies were recovering from the steep recession that grew out of the financial crisis.

Investors, meantime, snapped up U.S. Treasurys and the Japanese yen, assets viewed as relatively safe in times of turmoil.

[MARKETS]

There was no one particular piece of news that drove Thursday's market swoon. Instead, investors said it was an accumulation of worrisome developments, primarily out of Europe, where officials are struggling to convince the market they have the Greece crisis under control. Worries mounted that the troubles may spread beyond Europe to stymie growth elsewhere. And China's effort to tighten monetary policy has made investors increasingly nervous about growth slowing in that country.

Concerns are building that the progress made in pulling the global economy out of recession is slipping away. That contrasts with the sentiment this time last year when central banks and governments seemed to be working effectively together to stabilize the markets and economy.

"Before, there was a sense that things were heading in the right direction," said Scott MacDonald, head of research at brokerage and money-manager Aladdin Capital. "The issue that people are really wrestling with is now we don't know where things are going."

The retreat from riskier investments hit the U.S. stock market from the opening bell and gathered steam until the close of trading. By session's end the Dow Jones Industrial Average lost 376.36 points, or 3.6%, to close at 10068.01. That marked its third consecutive day of losses and leaves the Dow down 10.15% from its 2010 closing high hit on April 26.

With a decline of more than 10% from its high, the Dow's selloff has reached what traders refer to as a "correction" of the rally that began on March 10, 2009. Many analysts said such a pullback was long overdue, especially given the questions about Europe's future.

PM Report: Market Free Fall

8:32

The Dow closes down more than 360 points. Barron's Bob O'Brien and WSJ's Grainne McCarthy joins the News Hub with more. Plus, the financial overhaul heads to the finish line; and a historic look at all the stars that passed through the doors of "Law & Order."

Despite the size of the decline Thursday, there were no signs of the kind of trading problems that accompanied the stock market's "flash crash" back on May 6, in which the Dow dropped more than 700 points in the span of a few minutes and some individual stocks briefly lost all their value.

Still, traders described conditions in the financial markets as unsettled and volatile. The Chicago Board Options Exchange Volatility Index, or VIX, often called the "fear gauge," jumped nearly 30% to its highest level since March 2009.

Another sign of growing nervousness: a rise in the London interbank offered rate, at which banks lend money to each other overnight. It rose on Thursday to 0.48%, its highest level since last July.

In the U.S., corporate bonds, which posted huge gains in 2009 on the back of expectations for an economic recovery, fell for the fifth straight day.

Prices of oil, copper and gasoline dropped. Even gold, often seen as a safe-haven asset, declined. Gold also acts as a hedge against inflation, and its decline indicates that investors may be less worried about growth fuelling a rise in prices.

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Markets
Reuters

Traders in the oil options pit at the New York Mercantile Exchange Thursday. Oil fell below $68 a barrel, the lowest in nearly eight months.

If there's a silver lining, it's that the market's moves—including lower oil prices and lower yields on government bonds, which push down mortgage rates—could end up helping the U.S. economy.

The average rate on a conforming 30-year fixed-rate mortgage dropped to 4.88% on Thursday, according to HSH Associates in Pompton Plains, N.J. That's the lowest rate since early December.

In addition, the uncertainty rippling out from Europe is pushing back expectations for an interest-rate increase from the Federal Reserve.

With the exception of an unexpected big rise in initial jobless claims reported Thursday morning, economic data has been pointing to a continued rebound in the U.S. economy. That, in turn, had boosted expectations that the Fed would raise interest rates by year-end. Now analysts say the Fed may keep interest rates close to zero until well into next year.

"The worse things get in the markets, the more it takes interest-rate hikes off the table," said Eric Stein, a portfolio manager at Eaton Vance.

The deterioration in market sentiment this week comes despite the massive European bailout package unveiled earlier this month. While that plan soothed short-term fears about the Greek debt crisis spreading, it didn't convince investors that longer-term fiscal problems would be addressed. Adding fuel to the fire was Germany's unilateral move earlier this week to ban certain types of bearish bets on stocks and bonds.

For investors, that highlighted a lack of unity among European governments in dealing with the crisis. "That feeds into the financial markets' worst enemy—a lack of confidence," said Aladdin's Mr. MacDonald.

—Mark Gongloff, Alex Frangos, Neil Shah and Ruth Simon contributed to this article.
 

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