Sunday, March 27, 2011
House Republicans Chopping Fiscal 2011 Budget
As part of their election pledge to chopp off $100b of government spending, House Republicans on February 19, 2011 approved a measure, by 235-189 votes (oppossing votes have been cast by all 186 Democrats and three Republican members), aimed at cutting the spending for the remainder of Fiscal 2011 by $61b. Most of the 87 freshman Republicans, helped elected by the Tea Party movement, wanted to cut more, but Republican leaders in concert with the Democratic lawmakers scuttled a measure championed by the conservative Republican Study Committee to ax government by an additional $22 billion. The four-day of gruelling debate was centered around the scope and scale of governance, ideological posturings and possible impact of the extreme measures inserted in some of more than 400 amendments submitted. Initially the Republican leadership was intent on a modest cut of $35 billion, but the move was torpedoed by the rebellious freshmen Republicans few weeks ago. Now the battle line (as blogged by Prabir based on reports as of February 20, 2011) is drawn as the current funding of government will expire March 4, 2011.
Obama's 2012 Budget Blueprint
President Barack Obama on February 14, 2011 sent Congress a $3.73 trillion budget proposal for the Fiscal 2012 that would freeze spending for five years. The budget projects a record deficit of $1.65 trillion for Fiscal 2011, surpassing the existing record of $1.41 trillion for Fiscal 2009, that would represent 10.8 percent of total economy, highest since 1945 when heavy borrowing to fight World War II helped fuel the deficit to 21.5 percent of the economy. Obama's budget also projects the national debt, currently at the level of $14 trillion, to hit $16.7 trillion by Sept 30, 2012. Other salient features of Obama's 2012 Fiscal blueprint includes: * Projected Deficit for Fiscal 2012: $1.1 trillion * Projected Reduction of Deficits over the next decade: $1.1 trillion
Tuesday, March 22, 2011
European Financial Crisis
There is a concerted effort by the 27-member European Union to come up with a comprehensive plan for identifying symptoms of and preventing a future financial crisis that had crippled Europe's economy and required massive bailout for Greece and Ireland. The plan is to be submitted at the bloc's summit during March 24-25, 2011. One of the main features of the evolving plan is to strengthen the $599.94 billion European Financial Stability Facility and create an alternative mechanism to replace EFSF in June 2013.
Saturday, March 19, 2011
Obama Administration's Prescriptions on Government Involvement in Housing
Obama administration issued a report on February 11, 2011 that would sharply reduce the access to affordable mortgages and nudge to shring Fannie Mae and Freddie Mac that currently guarantees nine out of every ten mortgages. The report laid out three distinct options:
Option I: Would eliminate government guarantee for middle-income mortgages
Option II: Would offer guarantees to investors mostly in the time of distress
Option III: Would offer guarantees to a broad range of mortgages but with a caveat: lenders need to buy a guaratee from private insurers.
The report, prepared by the Department of Treasury and Department of Housing and Urban Development, aimed to preserve the access of low-income families to affordable mortgages. The report also asked for debate and discussion on mortgage interest deduction clause of tax code as it might divert investment from other sectors of the economy. Both agencies got flak from conservatives as federal government had to bail them out with the infusion of $135 billion in taxpayers money in the aftermath of 2008 housing crisis.
Option I: Would eliminate government guarantee for middle-income mortgages
Option II: Would offer guarantees to investors mostly in the time of distress
Option III: Would offer guarantees to a broad range of mortgages but with a caveat: lenders need to buy a guaratee from private insurers.
The report, prepared by the Department of Treasury and Department of Housing and Urban Development, aimed to preserve the access of low-income families to affordable mortgages. The report also asked for debate and discussion on mortgage interest deduction clause of tax code as it might divert investment from other sectors of the economy. Both agencies got flak from conservatives as federal government had to bail them out with the infusion of $135 billion in taxpayers money in the aftermath of 2008 housing crisis.
Record Budget Defecit Projected for Fiscal 2011
According to Congressional Budget Office, the budget deficit may reach as high as $1.5 trillion for this fiscal year (Oct 1, 2010-Sep 30, 2011). The CBO report issued January 26, 2011 revealed an ominous state of economic affairs that called for immediate attention from policymakers as well as lawmakers for seriousness of fiscal condition requiring federal government to borrow 40 cents for every dollar it spends. The record budget defecit projected for this fiscal year is due to variety of factors ranging from last December's (December 2010) Bush-era tax cut extention to anemic affairs of economy coming out of the worst recession since the Great Depression. The estimate came in the backdrop of another potential fiscal wreck as the country's debt cap of $14.3 trillion is close to be hit. The latest CBO estimate also said that Social Security Trust fund would pay more that it receive this year and would completely exhausted by 2037.
Saturday, March 12, 2011
Financial Crisis Inquiry Commission Report
The ten-member Financial Crisis Inquiry Commission created by President Barack Obama to investigate into the cause of 2008 financial meltdown and recommend measures to prevent it in future came up short on formulating a unified response. Six Democratic members issued a majority report, 576-page The Financial Crisis Inquiry Report, that blames lack of regulatory oversight and Wall Street irresponsibility for the meltdown. The report was issued on January 25, 2011, and the report was available at bookstores by January 27. On January 26, three Republican members issued a dissenting report that criticized broad economic forces--instead of Wall Street irresponsibility and lack of regulatory oversight as pinpointed by the main report--such as glut in Asian savings that had fueled in easy mortgage-backed securities as primary culprit. A second dissent focused on government policy on loose standard of homeownership as the causing factor.
Tuesday, February 1, 2011
Net Neutrality/Semi-Neutrality, FCC
The Federal Communication Commission on December 21, 2010 approved rules by 3-2 vote that would foster further innovation, but fell short of Net Neutrality-adhered goals. At best, the rules may be called Net Semi-neutrality. The rules would ban outright blocking and "unreasonable discrimination" of websites or applications by fixed-line broadband providers. However, the wireless broadband providers would have some degree of wiggle room as they would be able to block various apps and services, but not the basic websites or apps that compete with their own voice and video products (good news for Skype). Commission's three Democratic members--Chairman Julius Genachowski, Michael Coops and Mignon Clyburn--voted for the rule, while Robert M. McDowell and Meredith Atwell Baker, both Republican, voted against the rules. However, there are questions among legal luminaries whether the rules are valid under Title II of the Communications Act.
The U.S. Court of Appeals by 2-1 ruling on January 14, 2014 rejected the 2010 FCC ruling that banned internet service providers from blocking other websites or services. Responding to a lawsuit filed by Verizon against the 2010 FCC rules, the appeals court, however, said that Congress--not the FCC--had the authority to approve such sweeping rules. FCC's new Chairman, Tom Wheeler, who assumed office on November 4, 2013 didn't say how he wanted to pursue following the January14, 2014, appeals court verdict. Most of the consumer advocates were not happy hearing the ruling as various scenarios were being presented by them to educate the general public how the ruling might impact their capability to access their preferred websites which might now be blocked by the internet service provider. Some of the scenarios are:
* Scenario I: ATand T makes a deal with Amazon Prime, then it's suddenly harder to get Netflix if you are an ATandT customer.
* Scenario II: A carrier such as ATandT can strike a deal with video-streaming service to make it faster or cheaper to watch certain movies. That will benefit ATandT customers who like that particular service, but will make it harder of even impossible to watch a movie offered by a competing service.
* Scenario III: U.S. government sought to shut down WikiLeaks (for a valid reason, according to many) and it asked the banks to voluntarily suspend transactions involving the website. Many critics think that the government may put pressure on the service providers to shut down any website it deems as carrying offensive content against the government (this is really a stretch, according to many).
President Obama Chimes in the Net Neutrality Debate
President Barack Obama on November 10, 2014 stepped in the swirling debate of net neutrality, urging the FCC to make the playground even for all content providers by reclassifying the internet service--both wired and wireless--as utility such as electricity and telephone. Specifically, Obama asked FCC to consider Title II of the Communications Act of 1934. Title II will allow the Federal Communications Commission to write rules to regulate internet services similar to that of electricity and telephone services.
FCC Steps in to Make Broadband Access Fair to All Content Providers
In a step to boost innovation and make the playing field even for content providers, irrespective of their size or financial muscle, Federal Communication Commission led by the Chairman Tom Wheeler approved a historic regulatory measure by 3-2 votes on February 26, 2015 that would bring the Internet under the umbrella of Title II of the Communications Act of 1934. The measure will now be open on Federal Register for comments and feedback. The ISPs such as cable and telephone companies expressed deep skepticism and reservation on the FCC rules approved on February 26, 2015, while the content providers such as Netflix and internet activists cheered the ruling. The FCC rules were formulated after President Barack Obama took a very public and high-profile stand on this issue by a YouTube video release on November 10, 2014, calling for FCC to take steps to push for net neutrality by using the Title II of the Communications Act of 1934. Title II allows the Federal Communications Commission to write rules to regulate internet services similar to that of electricity and telephone services.
Broadband Trade Group Files Lawsuit against FCC
U.S. Telecom, a trade group consisting of country's broadband companies such as AT-and-T Inc. and Verizon Communications Inc., on March 23, 2015 filed a lawsuit against regulations issued by the Federal Communications Commission on February 26, 2015 that would allow the commission to treat broadband services just like regulated services such as electricity and telephone services under Title II of the Communications Act of 1934. The lawsuit was filed in the U.S. Court of Appeals for the District of Columbia Circuit.
FCC Dismantles Net Neutrality Rules
In a setback to the open internet goal, Federal Communication Commission under its Republican head, Ajit Pai, on December 14, 2017 reversed the Obama-era net neutrality rules, giving the ISPs legal leeway to create pricing tiers and slow down content for which creators can not afford to pay as high to get access to the so-called fast lanes.
The U.S. Court of Appeals by 2-1 ruling on January 14, 2014 rejected the 2010 FCC ruling that banned internet service providers from blocking other websites or services. Responding to a lawsuit filed by Verizon against the 2010 FCC rules, the appeals court, however, said that Congress--not the FCC--had the authority to approve such sweeping rules. FCC's new Chairman, Tom Wheeler, who assumed office on November 4, 2013 didn't say how he wanted to pursue following the January14, 2014, appeals court verdict. Most of the consumer advocates were not happy hearing the ruling as various scenarios were being presented by them to educate the general public how the ruling might impact their capability to access their preferred websites which might now be blocked by the internet service provider. Some of the scenarios are:
* Scenario I: ATand T makes a deal with Amazon Prime, then it's suddenly harder to get Netflix if you are an ATandT customer.
* Scenario II: A carrier such as ATandT can strike a deal with video-streaming service to make it faster or cheaper to watch certain movies. That will benefit ATandT customers who like that particular service, but will make it harder of even impossible to watch a movie offered by a competing service.
* Scenario III: U.S. government sought to shut down WikiLeaks (for a valid reason, according to many) and it asked the banks to voluntarily suspend transactions involving the website. Many critics think that the government may put pressure on the service providers to shut down any website it deems as carrying offensive content against the government (this is really a stretch, according to many).
President Obama Chimes in the Net Neutrality Debate
President Barack Obama on November 10, 2014 stepped in the swirling debate of net neutrality, urging the FCC to make the playground even for all content providers by reclassifying the internet service--both wired and wireless--as utility such as electricity and telephone. Specifically, Obama asked FCC to consider Title II of the Communications Act of 1934. Title II will allow the Federal Communications Commission to write rules to regulate internet services similar to that of electricity and telephone services.
FCC Steps in to Make Broadband Access Fair to All Content Providers
In a step to boost innovation and make the playing field even for content providers, irrespective of their size or financial muscle, Federal Communication Commission led by the Chairman Tom Wheeler approved a historic regulatory measure by 3-2 votes on February 26, 2015 that would bring the Internet under the umbrella of Title II of the Communications Act of 1934. The measure will now be open on Federal Register for comments and feedback. The ISPs such as cable and telephone companies expressed deep skepticism and reservation on the FCC rules approved on February 26, 2015, while the content providers such as Netflix and internet activists cheered the ruling. The FCC rules were formulated after President Barack Obama took a very public and high-profile stand on this issue by a YouTube video release on November 10, 2014, calling for FCC to take steps to push for net neutrality by using the Title II of the Communications Act of 1934. Title II allows the Federal Communications Commission to write rules to regulate internet services similar to that of electricity and telephone services.
Broadband Trade Group Files Lawsuit against FCC
U.S. Telecom, a trade group consisting of country's broadband companies such as AT-and-T Inc. and Verizon Communications Inc., on March 23, 2015 filed a lawsuit against regulations issued by the Federal Communications Commission on February 26, 2015 that would allow the commission to treat broadband services just like regulated services such as electricity and telephone services under Title II of the Communications Act of 1934. The lawsuit was filed in the U.S. Court of Appeals for the District of Columbia Circuit.
FCC Dismantles Net Neutrality Rules
In a setback to the open internet goal, Federal Communication Commission under its Republican head, Ajit Pai, on December 14, 2017 reversed the Obama-era net neutrality rules, giving the ISPs legal leeway to create pricing tiers and slow down content for which creators can not afford to pay as high to get access to the so-called fast lanes.
Appeals Court Overturns Net Neutrality
The salient impact of the Biden administration's internet policy is to make the internet "fast, open and fair" through the regulatory cudgel of Net Neutrality. The Biden administration has used the Federal Communications Commission to try to achieve that. However, a second Trump administration is all set to upend the Net Neutrality rules from the day number one. Even before that, the judiciary gave a big win to the incoming Republican majority. On January 2, 2025, Cincinnati-based 6th U.S. Court of Appeals overturned the Net Neutrality that Biden administration was pursuing, opining that the administration had misread the language of the Communications Act of 1934. FCC Chairwoman Jessica Rosenworcel called for Congress to act to continue keeping the internet services "fast, open and fair".
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FCC Issues Rules Banning AI-Generated Robo Calls, N.H. Attorney General Launch Inquiry
Days after an AI-generated voice impersonating President Joe Biden apparently urged the New Hampshire voters to stay away from voting in this primary "malarkey", Federal Communications Commission unanimously voted on February 2, 2024 to make digitally altered robocalls illegal. On February 8, 2024, FCC issued the rule that would make the voice-cloning robocalls illegal. FCC Chairperson Jessica Rosenworcel vowed to go after these AI-generated robocalls-generating "fraudsters".
This week, New Hampshire Attorney-General John Formella, a fellow Republican, announced launching an investigation into the Biden-impersonating robocalls generated and delivered by a Texas firm.
FCC Lowers Prison Call Costs
The Federal Communication Commission on July 18, 2024 issued new rules lowering the costs of prison calls. A long overdue action, it will lower a 15-minute call from $11.35 to 90 cents for large prisons and from $12.10 to $1.35 for small prisons, thus realizing a net saving of $386 million for the nation's 2 million inmates, their families and lawyers. The rules will go into effect next year.
FCC to Restrict Exemptions to "Equal Time" Rule
Trump administration's Federal Communications Commission on January 21, 2026 issued new rule, further narrowing down the exemption to the so-called "equal time" provision as stated by the Section 315 of the Communications Act. The "equal time" rule requires TV programs to offer equal coverage opportunities to people across the political spectrum although there are some "bona fide" exemptions.
In 2006, FCC ruled that "The Tonight Show With Jay Leno" was one such exemption.
In the January 21, 2026, rule, FCC contended that it didn't have any "evidence that the interview portion of any late night or daytime talk show program on air presently would qualify for bona fide news exemptions". The sole Democratic commissioner, Anna M. Gomez, said that FCC's January 21, 2026, rule on "equal time" was tantamount to declaring war to "censor and control speech". FCC's new rule aims at undercutting TV shows such as Jimmy Kimmel Live! and The View, according to many media pundits.
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