Monday, January 30, 2012

Sen Mark Kirk's Condidtion Upgraded to "Fair"

Dr. Fessler provided the following update on Senator Kirk’s condition this morning:

“Senator Kirk’s recovery is continuing. He is alert, talking and responding well to questions. He has been upgraded to fair condition and we are very pleased with his progress,” said Richard Fessler, MD, PhD, neurosurgeon at Northwestern Memorial Hospital and professor of neurological surgery at Northwestern University Feinberg School of Medicine.

Wednesday, January 25, 2012

AG Madigan Sues Standard and Poor's for Its Role in Rating Risky Mortgages as Safe

Chicago — Attorney General Lisa Madigan today filed a lawsuit against Standard & Poor’s for its fraudulent role in assigning its highest ratings to risky mortgage-backed investments in the years leading up to the housing market crash.

Madigan filed her lawsuit today in Cook County Circuit Court, alleging that Standard & Poor’s, or S&P, compromised its independence as a ratings agency by doling out high ratings to unworthy, risky investments as a corporate strategy to increase its revenue and market share. The Attorney General’s lawsuit alleges that S&P ignored the increasing risks posed by mortgage-backed securities, instead giving the investment pools ratings that were favorable to its investment bank client base and S&P’s profits.

“Publically, S&P took every opportunity to proclaim their analyses and ratings as independent, objective and free from its desire for revenue,” Madigan said. “Yet privately, S&P abandoned its principles and instead used every trick possible to give deals high ratings in order to retain clients and generate revenue. The mortgage-backed securities that helped our market soar – and ultimately crash – could not have been purchased by most investors without S&P’s seal of approval.”

The Attorney General’s lawsuit cites numerous internal emails and conversations among S&P employees in the run up to the housing market’s crash that demonstrate the company misrepresented its ratings as objective and independent. In one such exchange, in April 2007, an online conversation via a company-based instant messenger application revealed employees discussing S&P ratings compared to the reality of risk involved, with an employee stating an investment “could be structured by cows and we would rate it.”

Madigan said investors relied on S&P ratings because they were historically rooted in the agency’s purported independence and objectivity. S&P’s internal code of conduct states its goal to “promote investor protection by safeguarding the integrity of the rating process.” But, the Attorney General’s lawsuit cites congressional testimony by a former managing director of S&P who revealed that “profits were running the show,” with ratings being assigned to risky investments to help drive profit margins for their clients.

S&P, a subsidiary of McGraw-Hill Companies, is one of the nation’s largest credit ratings agencies responsible for independently rating risk on behalf of clients and investors. Madigan said in the run up to the financial crisis, S&P consistently misrepresented the risk of mortgage-backed securities, assigning these securities its highest seal of approval – or AAA rating. This misrepresentation spurred investors to purchase securities that were far riskier than their ratings revealed.

Mortgage-backed securities are financial products made up of a pool of mortgages that are bundled together and sold as a security. The assets are backed by residential mortgages, including subprime mortgages. The performance of these investment products have significant, real-world implications for Illinois institutional investors, such as pension funds and 401(k) managers that make decisions about whether, and which, of these securities are appropriate investments. It was the misrepresentation of the true value of these risky mortgage pools that helped the housing market skyrocket and ultimately led to its collapse in 2008.

Today’s lawsuit is part of Attorney General Madigan’s continuing work to hold lenders accountable for their unlawful financial misconduct, and to provide relief and assistance to Illinois families struggling to save their homes. Most recently, in December 2011, Madigan and the U.S. Department of Justice reached a $335 million settlement with Countrywide, a subsidiary of Bank of America, for discriminating against thousands of Illinois borrowers of color during the height of the subprime mortgage lending spree. The settlement will provide restitution to harmed Illinois borrowers and is the largest settlement of a fair lending lawsuit ever obtained by a state attorney general. The Attorney General is litigating a similar lawsuit against Wells Fargo alleging widespread discrimination against African American and Latino borrowers.

Madigan led an earlier lawsuit against Countrywide, which resulted in a nationwide $8.7 billion settlement in 2008 over the company’s predatory lending practices. The Attorney General also reached a $39.5 million settlement with Wells Fargo over the bank’s deceptive marketing of extremely risky loans called Pay Option ARMs, and in 2006, Madigan obtained more than $10 million in restitution for Illinois homeowners as part of a $325 billion multi-state settlement with Ameriquest over the former mortgage giant’s deceptive sales of predatory subprime mortgages.

Assistant Attorneys General Vaishali Rao and Vijay Raghavan are handling the case for Madigan’s Consumer Fraud Bureau.

Update on Sen Kirk's Condition

“Senator Kirk continues to progress as expected and we continue to be hopeful about his long term prognosis. He remains in serious condition and is being monitored closely,” said Richard Fessler, neurosurgeon at Northwestern Memorial Hospital and professor of neurological surgery at Northwestern University Feinberg School of Medicine.

USDA Acts on First Lady's Healthy Eating Campaign by Setting Limits on Calories in School Lunches

FAIRFAX, Va., Jan. 25. 2012 – First Lady Michelle Obama and Agriculture Secretary Tom Vilsack today unveiled new standards for school meals that will result in healthier meals for kids across the nation. The new meal requirements will raise standards for the first time in more than fifteen years and improve the health and nutrition of nearly 32 million kids that participate in school meal programs every school day. The healthier meal requirements are a key component of the Healthy, Hunger-Free Kids Act, which was championed by the First Lady as part of her Let's Move! campaign and signed into law by President Obama.

"As parents, we try to prepare decent meals, limit how much junk food our kids eat, and ensure they have a reasonably balanced diet," said First Lady Michelle Obama. "And when we're putting in all that effort the last thing we want is for our hard work to be undone each day in the school cafeteria. When we send our kids to school, we expect that they won't be eating the kind of fatty, salty, sugary foods that we try to keep them from eating at home. We want the food they get at school to be the same kind of food we would serve at our own kitchen tables."

"Improving the quality of the school meals is a critical step in building a healthy future for our kids," said Vilsack. "When it comes to our children, we must do everything possible to provide them the nutrition they need to be healthy, active and ready to face the future – today we take an important step towards that goal."

The final standards make the same kinds of practical changes that many parents are already encouraging at home, including:

Ensuring students are offered both fruits and vegetables every day of the week;
Substantially increasing offerings of whole grain-rich foods;
Offering only fat-free or low-fat milk varieties;
Limiting calories based on the age of children being served to ensure proper portion size; and
Increasing the focus on reducing the amounts of saturated fat, trans fats and sodium.
A sample lunch menu with a before and after comparison is available to view and download in PDF and JPG formats.

USDA built the new rule around recommendations from a panel of experts convened by the Institute of Medicine —a gold standard for evidence-based health analysis. The standards were also updated with key changes from the 2010 Dietary Guidelines for Americans – the Federal government's benchmark for nutrition – and aimed to foster the kind of healthy changes at school that many parents are already trying to encourage at home, such as making sure that kids are offered both fruits and vegetables each day, more whole grains, and portion sizes and calorie counts designed to maintain a healthy weight.

USDA received an unprecedented 132,000 public comments on its proposed standards (available on the web at www.regulations.gov) – and made modifications to the proposed rule where appropriate. USDA Under Secretary Kevin Concannon said: "We know that robust public input is essential to developing successful standards and the final standards took a number of suggestions from stakeholders, school food service professions and parents to make important operational changes while maintaining nutritional integrity."

The new standards are expected to cost $3.2 billion over the next five years -- less than half of the estimated cost of the proposed rule and are just one of five major components of the Healthy Hunger Free Kids Act, now implemented or under development, that will work together to reform school nutrition. In addition to the updated meal standards, unprecedented improvements to come include:

The ability to take nutrition standards beyond the lunchline for the first time ever, foods and beverages sold in vending machines and other venues on school campuses will also contribute to a healthy diet;
Increased funding for schools – an additional 6 cents a meal is the first real increase in 30 years – tied to strong performance in serving improved meals;
Common-sense pricing standards for schools to ensure that revenues from non-Federal sources keep pace with the Federal commitment to healthy school meals and properly align with costs; and
Training and technical assistance to help schools achieve and monitor compliance.
The final nutrition standards released today also provide more time for schools to implement key changes, which will be largely phased in over a three-year period, starting in School Year 2012-2013. For example, schools will be permitted to focus on changes in the lunches in the first year, with most changes in breakfast phased in during future years.

Federal Reserve's Statement on Why It Plans to Keep Interest Rates Low Through 2014

Information received since the Federal Open Market Committee met in December suggests that the economy has been expanding moderately, notwithstanding some slowing in global growth. While indicators point to some further improvement in overall labor market conditions, the unemployment rate remains elevated. Household spending has continued to advance, but growth in business fixed investment has slowed, and the housing sector remains depressed. Inflation has been subdued in recent months, and longer-term inflation expectations have remained stable.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects economic growth over coming quarters to be modest and consequently anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate. Strains in global financial markets continue to pose significant downside risks to the economic outlook. The Committee also anticipates that over coming quarters, inflation will run at levels at or below those consistent with the Committee’s dual mandate.

To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee expects to maintain a highly accommodative stance for monetary policy. In particular, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.

The Committee also decided to continue its program to extend the average maturity of its holdings of securities as announced in September. The Committee is maintaining its existing policies of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate to promote a stronger economic recovery in a context of price stability.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Dennis P. Lockhart; Sandra Pianalto; Sarah Bloom Raskin; Daniel K. Tarullo; John C. Williams; and Janet L. Yellen. Voting against the action was Jeffrey M. Lacker, who preferred to omit the description of the time period over which economic conditions are likely to warrant exceptionally low levels of the federal funds rate.

President Obama's Statement on the Rescue of Hostages in Somalia


NOTE: Seal Team 6, the same unit that killed Osama bin Laden, successfully rescued two hostages on Monday, including American Jessica Buchanan. Here is the President's statement on that mission:


On Monday, I authorized an operation to rescue Jessica Buchanan, an American citizen who was kidnapped and held against her will for three months in Somalia. Thanks to the extraordinary courage and capabilities of our Special Operations Forces, yesterday Jessica Buchanan was rescued and she is on her way home. As Commander-in-Chief, I could not be prouder of the troops who carried out this mission, and the dedicated professionals who supported their efforts.


Jessica Buchanan was selflessly serving her fellow human beings when she was taken hostage by criminals and pirates who showed no regard for her health and well-being. Last night I spoke with Jessica Buchanan’s father and told him that all Americans have Jessica in our thoughts and prayers, and give thanks that she will soon be reunited with her family. The United States will not tolerate the abduction of our people, and will spare no effort to secure the safety of our citizens and to bring their captors to justice. This is yet another message to the world that the United States of America will stand strongly against any threats to our people.

Rep Gabrielle Giffords (D-AZ) Resigns from Congress to Focus on Recovery

Tuesday, January 24, 2012

Statement by Sen Kirk's Family Following His Stroke

CHICAGO - The office of Senator Mark Kirk (R-Ill.) tonight released the following statement at the request of Senator Kirk's family:

"We are overwhelmed by the outpouring of support we've received over the last couple of days -- from President Obama, Leader McConnell, Senator Durbin, Governor Quinn, Mayor Emanuel, the Illinois delegation and so many others across the state, the nation and beyond. Words cannot describe how much Joe Manchin's friendship and support means to us and especially to Mark. We are truly blessed to have such amazing family and friends."

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Gov Quinn's Statement on the President's State of the Union


CHICAGO – January 24, 2012. Governor Pat Quinn today released a statement regarding President Barack Obama’s fourth State of the Union Address.

“We in Illinois applaud President Obama for the vision he laid out in tonight’s State of the Union. The President put forth a blueprint for a growing economy that gives all Americans equal access to the success through hard work that has always made this nation great. We agree with the President that we can’t wait – we need to keep pushing to restore our economy and the American middle class.

“In Illinois, we are focused on the same issues that the President laid out tonight: creating manufacturing jobs and training our workforce for the 21st century; making education more accessible; modernizing our roads and bridges; and prioritizing housing for our families.

“And as the President said, an America built to last calls for responsibility from each of us and fairness for all. We commend the President on his vision, and look forward to working together as a nation to restore our economy and create opportunities for all Americans.”



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TEXT of President Obama's 2012 State of the Union Address


As Prepared for Delivery –

Mr. Speaker, Mr. Vice President, members of Congress, distinguished guests, and fellow Americans:

Last month, I went to Andrews Air Force Base and welcomed home some of our last troops to serve in Iraq. Together, we offered a final, proud salute to the colors under which more than a million of our fellow citizens fought – and several thousand gave their lives.

We gather tonight knowing that this generation of heroes has made the United States safer and more respected around the world. For the first time in nine years, there are no Americans fighting in Iraq. For the first time in two decades, Osama bin Laden is not a threat to this country. Most of al Qaeda’s top lieutenants have been defeated. The Taliban’s momentum has been broken, and some troops in Afghanistan have begun to come home.

These achievements are a testament to the courage, selflessness, and teamwork of America’s Armed Forces. At a time when too many of our institutions have let us down, they exceed all expectations. They’re not consumed with personal ambition. They don’t obsess over their differences. They focus on the mission at hand. They work together.

Imagine what we could accomplish if we followed their example. Think about the America within our reach: A country that leads the world in educating its people. An America that attracts a new generation of high-tech manufacturing and high-paying jobs. A future where we’re in control of our own energy, and our security and prosperity aren’t so tied to unstable parts of the world. An economy built to last, where hard work pays off, and responsibility is rewarded.

We can do this. I know we can, because we’ve done it before. At the end of World War II, when another generation of heroes returned home from combat, they built the strongest economy and middle class the world has ever known. My grandfather, a veteran of Patton’s Army, got the chance to go to college on the GI Bill. My grandmother, who worked on a bomber assembly line, was part of a workforce that turned out the best products on Earth.

The two of them shared the optimism of a Nation that had triumphed over a depression and fascism. They understood they were part of something larger; that they were contributing to a story of success that every American had a chance to share – the basic American promise that if you worked hard, you could do well enough to raise a family, own a home, send your kids to college, and put a little away for retirement.

The defining issue of our time is how to keep that promise alive. No challenge is more urgent. No debate is more important. We can either settle for a country where a shrinking number of people do really well, while a growing number of Americans barely get by. Or we can restore an economy where everyone gets a fair shot, everyone does their fair share, and everyone plays by the same set of rules. What’s at stake are not Democratic values or Republican values, but American values. We have to reclaim them.

Let’s remember how we got here. Long before the recession, jobs and manufacturing began leaving our shores. Technology made businesses more efficient, but also made some jobs obsolete. Folks at the top saw their incomes rise like never before, but most hardworking Americans struggled with costs that were growing, paychecks that weren’t, and personal debt that kept piling up.

In 2008, the house of cards collapsed. We learned that mortgages had been sold to people who couldn’t afford or understand them. Banks had made huge bets and bonuses with other people’s money. Regulators had looked the other way, or didn’t have the authority to stop the bad behavior.

It was wrong. It was irresponsible. And it plunged our economy into a crisis that put millions out of work, saddled us with more debt, and left innocent, hard-working Americans holding the bag. In the six months before I took office, we lost nearly four million jobs. And we lost another four million before our policies were in full effect.

Those are the facts. But so are these. In the last 22 months, businesses have created more than three million jobs. Last year, they created the most jobs since 2005. American manufacturers are hiring again, creating jobs for the first time since the late 1990s. Together, we’ve agreed to cut the deficit by more than $2 trillion. And we’ve put in place new rules to hold Wall Street accountable, so a crisis like that never happens again.

The state of our Union is getting stronger. And we’ve come too far to turn back now. As long as I’m President, I will work with anyone in this chamber to build on this momentum. But I intend to fight obstruction with action, and I will oppose any effort to return to the very same policies that brought on this economic crisis in the first place.

No, we will not go back to an economy weakened by outsourcing, bad debt, and phony financial profits. Tonight, I want to speak about how we move forward, and lay out a blueprint for an economy that’s built to last – an economy built on American manufacturing, American energy, skills for American workers, and a renewal of American values.

This blueprint begins with American manufacturing.

On the day I took office, our auto industry was on the verge of collapse. Some even said we should let it die. With a million jobs at stake, I refused to let that happen. In exchange for help, we demanded responsibility. We got workers and automakers to settle their differences. We got the industry to retool and restructure. Today, General Motors is back on top as the world’s number one automaker. Chrysler has grown faster in the U.S. than any major car company. Ford is investing billions in U.S. plants and factories. And together, the entire industry added nearly 160,000 jobs.

We bet on American workers. We bet on American ingenuity. And tonight, the American auto industry is back.

What’s happening in Detroit can happen in other industries. It can happen in Cleveland and Pittsburgh and Raleigh. We can’t bring back every job that’s left our shores. But right now, it’s getting more expensive to do business in places like China. Meanwhile, America is more productive. A few weeks ago, the CEO of Master Lock told me that it now makes business sense for him to bring jobs back home. Today, for the first time in fifteen years, Master Lock’s unionized plant in Milwaukee is running at full capacity.

So we have a huge opportunity, at this moment, to bring manufacturing back. But we have to seize it. Tonight, my message to business leaders is simple: Ask yourselves what you can do to bring jobs back to your country, and your country will do everything we can to help you succeed.

We should start with our tax code. Right now, companies get tax breaks for moving jobs and profits overseas. Meanwhile, companies that choose to stay in America get hit with one of the highest tax rates in the world. It makes no sense, and everyone knows it.

So let’s change it. First, if you’re a business that wants to outsource jobs, you shouldn’t get a tax deduction for doing it. That money should be used to cover moving expenses for companies like Master Lock that decide to bring jobs home.

Second, no American company should be able to avoid paying its fair share of taxes by moving jobs and profits overseas. From now on, every multinational company should have to pay a basic minimum tax. And every penny should go towards lowering taxes for companies that choose to stay here and hire here.

Third, if you’re an American manufacturer, you should get a bigger tax cut. If you’re a high-tech manufacturer, we should double the tax deduction you get for making products here. And if you want to relocate in a community that was hit hard when a factory left town, you should get help financing a new plant, equipment, or training for new workers.

My message is simple. It’s time to stop rewarding businesses that ship jobs overseas, and start rewarding companies that create jobs right here in America. Send me these tax reforms, and I’ll sign them right away.

We’re also making it easier for American businesses to sell products all over the world. Two years ago, I set a goal of doubling U.S. exports over five years. With the bipartisan trade agreements I signed into law, we are on track to meet that goal – ahead of schedule. Soon, there will be millions of new customers for American goods in Panama, Colombia, and South Korea. Soon, there will be new cars on the streets of Seoul imported from Detroit, and Toledo, and Chicago.

I will go anywhere in the world to open new markets for American products. And I will not stand by when our competitors don’t play by the rules. We’ve brought trade cases against China at nearly twice the rate as the last administration – and it’s made a difference. Over a thousand Americans are working today because we stopped a surge in Chinese tires. But we need to do more. It’s not right when another country lets our movies, music, and software be pirated. It’s not fair when foreign manufacturers have a leg up on ours only because they’re heavily subsidized.

Tonight, I’m announcing the creation of a Trade Enforcement Unit that will be charged with investigating unfair trade practices in countries like China. There will be more inspections to prevent counterfeit or unsafe goods from crossing our borders. And this Congress should make sure that no foreign company has an advantage over American manufacturing when it comes to accessing finance or new markets like Russia. Our workers are the most productive on Earth, and if the playing field is level, I promise you – America will always win.

I also hear from many business leaders who want to hire in the United States but can’t find workers with the right skills. Growing industries in science and technology have twice as many openings as we have workers who can do the job. Think about that – openings at a time when millions of Americans are looking for work.

That’s inexcusable. And we know how to fix it.

Jackie Bray is a single mom from North Carolina who was laid off from her job as a mechanic. Then Siemens opened a gas turbine factory in Charlotte, and formed a partnership with Central Piedmont Community College. The company helped the college design courses in laser and robotics training. It paid Jackie’s tuition, then hired her to help operate their plant.

I want every American looking for work to have the same opportunity as Jackie did. Join me in a national commitment to train two million Americans with skills that will lead directly to a job. My Administration has already lined up more companies that want to help. Model partnerships between businesses like Siemens and community colleges in places like Charlotte, Orlando, and Louisville are up and running. Now you need to give more community colleges the resources they need to become community career centers – places that teach people skills that local businesses are looking for right now, from data management to high-tech manufacturing.

And I want to cut through the maze of confusing training programs, so that from now on, people like Jackie have one program, one website, and one place to go for all the information and help they need. It’s time to turn our unemployment system into a reemployment system that puts people to work.

These reforms will help people get jobs that are open today. But to prepare for the jobs of tomorrow, our commitment to skills and education has to start earlier.

For less than one percent of what our Nation spends on education each year, we’ve convinced nearly every State in the country to raise their standards for teaching and learning – the first time that’s happened in a generation.

But challenges remain. And we know how to solve them.

At a time when other countries are doubling down on education, tight budgets have forced States to lay off thousands of teachers. We know a good teacher can increase the lifetime income of a classroom by over $250,000. A great teacher can offer an escape from poverty to the child who dreams beyond his circumstance. Every person in this chamber can point to a teacher who changed the trajectory of their lives. Most teachers work tirelessly, with modest pay, sometimes digging into their own pocket for school supplies – just to make a difference.

Teachers matter. So instead of bashing them, or defending the status quo, let’s offer schools a deal. Give them the resources to keep good teachers on the job, and reward the best ones. In return, grant schools flexibility: To teach with creativity and passion; to stop teaching to the test; and to replace teachers who just aren’t helping kids learn.

We also know that when students aren’t allowed to walk away from their education, more of them walk the stage to get their diploma. So tonight, I call on every State to require that all students stay in high school until they graduate or turn eighteen.

When kids do graduate, the most daunting challenge can be the cost of college. At a time when Americans owe more in tuition debt than credit card debt, this Congress needs to stop the interest rates on student loans from doubling in July. Extend the tuition tax credit we started that saves middle-class families thousands of dollars. And give more young people the chance to earn their way through college by doubling the number of work-study jobs in the next five years.

Of course, it’s not enough for us to increase student aid. We can’t just keep subsidizing skyrocketing tuition; we’ll run out of money. States also need to do their part, by making higher education a higher priority in their budgets. And colleges and universities have to do their part by working to keep costs down. Recently, I spoke with a group of college presidents who’ve done just that. Some schools re-design courses to help students finish more quickly. Some use better technology. The point is, it’s possible. So let me put colleges and universities on notice: If you can’t stop tuition from going up, the funding you get from taxpayers will go down. Higher education can’t be a luxury – it’s an economic imperative that every family in America should be able to afford.

Let’s also remember that hundreds of thousands of talented, hardworking students in this country face another challenge: The fact that they aren’t yet American citizens. Many were brought here as small children, are American through and through, yet they live every day with the threat of deportation. Others came more recently, to study business and science and engineering, but as soon as they get their degree, we send them home to invent new products and create new jobs somewhere else.

That doesn’t make sense.

I believe as strongly as ever that we should take on illegal immigration. That’s why my Administration has put more boots on the border than ever before. That’s why there are fewer illegal crossings than when I took office.

The opponents of action are out of excuses. We should be working on comprehensive immigration reform right now. But if election-year politics keeps Congress from acting on a comprehensive plan, let’s at least agree to stop expelling responsible young people who want to staff our labs, start new businesses, and defend this country. Send me a law that gives them the chance to earn their citizenship. I will sign it right away.

You see, an economy built to last is one where we encourage the talent and ingenuity of every person in this country. That means women should earn equal pay for equal work. It means we should support everyone who’s willing to work; and every risk-taker and entrepreneur who aspires to become the next Steve Jobs.

After all, innovation is what America has always been about. Most new jobs are created in start-ups and small businesses. So let’s pass an agenda that helps them succeed. Tear down regulations that prevent aspiring entrepreneurs from getting the financing to grow. Expand tax relief to small businesses that are raising wages and creating good jobs. Both parties agree on these ideas. So put them in a bill, and get it on my desk this year.

Innovation also demands basic research. Today, the discoveries taking place in our federally-financed labs and universities could lead to new treatments that kill cancer cells but leave healthy ones untouched. New lightweight vests for cops and soldiers that can stop any bullet. Don’t gut these investments in our budget. Don’t let other countries win the race for the future. Support the same kind of research and innovation that led to the computer chip and the Internet; to new American jobs and new American industries.

Nowhere is the promise of innovation greater than in American-made energy. Over the last three years, we’ve opened millions of new acres for oil and gas exploration, and tonight, I’m directing my Administration to open more than 75 percent of our potential offshore oil and gas resources. Right now, American oil production is the highest that it’s been in eight years. That’s right – eight years. Not only that – last year, we relied less on foreign oil than in any of the past sixteen years.

But with only 2 percent of the world’s oil reserves, oil isn’t enough. This country needs an all-out, all-of-the-above strategy that develops every available source of American energy – a strategy that’s cleaner, cheaper, and full of new jobs.

We have a supply of natural gas that can last America nearly one hundred years, and my Administration will take every possible action to safely develop this energy. Experts believe this will support more than 600,000 jobs by the end of the decade. And I’m requiring all companies that drill for gas on public lands to disclose the chemicals they use. America will develop this resource without putting the health and safety of our citizens at risk.

The development of natural gas will create jobs and power trucks and factories that are cleaner and cheaper, proving that we don’t have to choose between our environment and our economy. And by the way, it was public research dollars, over the course of thirty years, that helped develop the technologies to extract all this natural gas out of shale rock – reminding us that Government support is critical in helping businesses get new energy ideas off the ground.



What’s true for natural gas is true for clean energy. In three years, our partnership with the private sector has already positioned America to be the world’s leading manufacturer of high-tech batteries. Because of federal investments, renewable energy use has nearly doubled. And thousands of Americans have jobs because of it.



When Bryan Ritterby was laid off from his job making furniture, he said he worried that at 55, no one would give him a second chance. But he found work at Energetx, a wind turbine manufacturer in Michigan. Before the recession, the factory only made luxury yachts. Today, it’s hiring workers like Bryan, who said, “I’m proud to be working in the industry of the future.”



Our experience with shale gas shows us that the payoffs on these public investments don’t always come right away. Some technologies don’t pan out; some companies fail. But I will not walk away from the promise of clean energy. I will not walk away from workers like Bryan. I will not cede the wind or solar or battery industry to China or Germany because we refuse to make the same commitment here. We have subsidized oil companies for a century. That’s long enough. It’s time to end the taxpayer giveaways to an industry that’s rarely been more profitable, and double-down on a clean energy industry that’s never been more promising. Pass clean energy tax credits and create these jobs.



We can also spur energy innovation with new incentives. The differences in this chamber may be too deep right now to pass a comprehensive plan to fight climate change. But there’s no reason why Congress shouldn’t at least set a clean energy standard that creates a market for innovation. So far, you haven’t acted. Well tonight, I will. I’m directing my Administration to allow the development of clean energy on enough public land to power three million homes. And I’m proud to announce that the Department of Defense, the world’s largest consumer of energy, will make one of the largest commitments to clean energy in history – with the Navy purchasing enough capacity to power a quarter of a million homes a year.



Of course, the easiest way to save money is to waste less energy. So here’s another proposal: Help manufacturers eliminate energy waste in their factories and give businesses incentives to upgrade their buildings. Their energy bills will be $100 billion lower over the next decade, and America will have less pollution, more manufacturing, and more jobs for construction workers who need them. Send me a bill that creates these jobs.



Building this new energy future should be just one part of a broader agenda to repair America’s infrastructure. So much of America needs to be rebuilt. We’ve got crumbling roads and bridges. A power grid that wastes too much energy. An incomplete high-speed broadband network that prevents a small business owner in rural America from selling her products all over the world.



During the Great Depression, America built the Hoover Dam and the Golden Gate Bridge. After World War II, we connected our States with a system of highways. Democratic and Republican administrations invested in great projects that benefited everybody, from the workers who built them to the businesses that still use them today.



In the next few weeks, I will sign an Executive Order clearing away the red tape that slows down too many construction projects. But you need to fund these projects. Take the money we’re no longer spending at war, use half of it to pay down our debt, and use the rest to do some nation-building right here at home.



There’s never been a better time to build, especially since the construction industry was one of the hardest-hit when the housing bubble burst. Of course, construction workers weren’t the only ones hurt. So were millions of innocent Americans who’ve seen their home values decline. And while Government can’t fix the problem on its own, responsible homeowners shouldn’t have to sit and wait for the housing market to hit bottom to get some relief.



That’s why I’m sending this Congress a plan that gives every responsible homeowner the chance to save about $3,000 a year on their mortgage, by refinancing at historically low interest rates. No more red tape. No more runaround from the banks. A small fee on the largest financial institutions will ensure that it won’t add to the deficit, and will give banks that were rescued by taxpayers a chance to repay a deficit of trust.



Let’s never forget: Millions of Americans who work hard and play by the rules every day deserve a Government and a financial system that do the same. It’s time to apply the same rules from top to bottom: No bailouts, no handouts, and no copouts. An America built to last insists on responsibility from everybody.



We’ve all paid the price for lenders who sold mortgages to people who couldn’t afford them, and buyers who knew they couldn’t afford them. That’s why we need smart regulations to prevent irresponsible behavior. Rules to prevent financial fraud, or toxic dumping, or faulty medical devices, don’t destroy the free market. They make the free market work better.



There is no question that some regulations are outdated, unnecessary, or too costly. In fact, I’ve approved fewer regulations in the first three years of my presidency than my Republican predecessor did in his. I’ve ordered every federal agency to eliminate rules that don’t make sense. We’ve already announced over 500 reforms, and just a fraction of them will save business and citizens more than $10 billion over the next five years. We got rid of one rule from 40 years ago that could have forced some dairy farmers to spend $10,000 a year proving that they could contain a spill – because milk was somehow classified as an oil. With a rule like that, I guess it was worth crying over spilled milk.



I’m confident a farmer can contain a milk spill without a federal agency looking over his shoulder. But I will not back down from making sure an oil company can contain the kind of oil spill we saw in the Gulf two years ago. I will not back down from protecting our kids from mercury pollution, or making sure that our food is safe and our water is clean. I will not go back to the days when health insurance companies had unchecked power to cancel your policy, deny you coverage, or charge women differently from men.



And I will not go back to the days when Wall Street was allowed to play by its own set of rules. The new rules we passed restore what should be any financial system’s core purpose: Getting funding to entrepreneurs with the best ideas, and getting loans to responsible families who want to buy a home, start a business, or send a kid to college.



So if you’re a big bank or financial institution, you are no longer allowed to make risky bets with your customers’ deposits. You’re required to write out a “living will” that details exactly how you’ll pay the bills if you fail – because the rest of us aren’t bailing you out ever again. And if you’re a mortgage lender or a payday lender or a credit card company, the days of signing people up for products they can’t afford with confusing forms and deceptive practices are over. Today, American consumers finally have a watchdog in Richard Cordray with one job: To look out for them.



We will also establish a Financial Crimes Unit of highly trained investigators to crack down on large-scale fraud and protect people’s investments. Some financial firms violate major anti-fraud laws because there’s no real penalty for being a repeat offender. That’s bad for consumers, and it’s bad for the vast majority of bankers and financial service professionals who do the right thing. So pass legislation that makes the penalties for fraud count.



And tonight, I am asking my Attorney General to create a special unit of federal prosecutors and leading state attorneys general to expand our investigations into the abusive lending and packaging of risky mortgages that led to the housing crisis. This new unit will hold accountable those who broke the law, speed assistance to homeowners, and help turn the page on an era of recklessness that hurt so many Americans.



A return to the American values of fair play and shared responsibility will help us protect our people and our economy. But it should also guide us as we look to pay down our debt and invest in our future.



Right now, our most immediate priority is stopping a tax hike on 160 million working Americans while the recovery is still fragile. People cannot afford losing $40 out of each paycheck this year. There are plenty of ways to get this done. So let’s agree right here, right now: No side issues. No drama. Pass the payroll tax cut without delay.



When it comes to the deficit, we’ve already agreed to more than $2 trillion in cuts and savings. But we need to do more, and that means making choices. Right now, we’re poised to spend nearly $1 trillion more on what was supposed to be a temporary tax break for the wealthiest 2 percent of Americans. Right now, because of loopholes and shelters in the tax code, a quarter of all millionaires pay lower tax rates than millions of middle-class households. Right now, Warren Buffett pays a lower tax rate than his secretary.



Do we want to keep these tax cuts for the wealthiest Americans? Or do we want to keep our investments in everything else – like education and medical research; a strong military and care for our veterans? Because if we’re serious about paying down our debt, we can’t do both.



The American people know what the right choice is. So do I. As I told the Speaker this summer, I’m prepared to make more reforms that rein in the long term costs of Medicare and Medicaid, and strengthen Social Security, so long as those programs remain a guarantee of security for seniors.



But in return, we need to change our tax code so that people like me, and an awful lot of Members of Congress, pay our fair share of taxes. Tax reform should follow the Buffett rule: If you make more than $1 million a year, you should not pay less than 30 percent in taxes. And my Republican friend Tom Coburn is right: Washington should stop subsidizing millionaires. In fact, if you’re earning a million dollars a year, you shouldn’t get special tax subsidies or deductions. On the other hand, if you make under $250,000 a year, like 98 percent of American families, your taxes shouldn’t go up. You’re the ones struggling with rising costs and stagnant wages. You’re the ones who need relief.



Now, you can call this class warfare all you want. But asking a billionaire to pay at least as much as his secretary in taxes? Most Americans would call that common sense.



We don’t begrudge financial success in this country. We admire it. When Americans talk about folks like me paying my fair share of taxes, it’s not because they envy the rich. It’s because they understand that when I get tax breaks I don’t need and the country can’t afford, it either adds to the deficit, or somebody else has to make up the difference – like a senior on a fixed income; or a student trying to get through school; or a family trying to make ends meet. That’s not right. Americans know it’s not right. They know that this generation’s success is only possible because past generations felt a responsibility to each other, and to their country’s future, and they know our way of life will only endure if we feel that same sense of shared responsibility. That’s how we’ll reduce our deficit. That’s an America built to last.



I recognize that people watching tonight have differing views about taxes and debt; energy and health care. But no matter what party they belong to, I bet most Americans are thinking the same thing right now: Nothing will get done this year, or next year, or maybe even the year after that, because Washington is broken.



Can you blame them for feeling a little cynical?



The greatest blow to confidence in our economy last year didn’t come from events beyond our control. It came from a debate in Washington over whether the United States would pay its bills or not. Who benefited from that fiasco?



I’ve talked tonight about the deficit of trust between Main Street and Wall Street. But the divide between this city and the rest of the country is at least as bad – and it seems to get worse every year.



Some of this has to do with the corrosive influence of money in politics. So together, let’s take some steps to fix that. Send me a bill that bans insider trading by Members of Congress, and I will sign it tomorrow. Let’s limit any elected official from owning stocks in industries they impact. Let’s make sure people who bundle campaign contributions for Congress can’t lobby Congress, and vice versa – an idea that has bipartisan support, at least outside of Washington.



Some of what’s broken has to do with the way Congress does its business these days. A simple majority is no longer enough to get anything – even routine business – passed through the Senate. Neither party has been blameless in these tactics. Now both parties should put an end to it. For starters, I ask the Senate to pass a rule that all judicial and public service nominations receive a simple up or down vote within 90 days.



The executive branch also needs to change. Too often, it’s inefficient, outdated and remote. That’s why I’ve asked this Congress to grant me the authority to consolidate the federal bureaucracy so that our Government is leaner, quicker, and more responsive to the needs of the American people.



Finally, none of these reforms can happen unless we also lower the temperature in this town. We need to end the notion that the two parties must be locked in a perpetual campaign of mutual destruction; that politics is about clinging to rigid ideologies instead of building consensus around common sense ideas.



I’m a Democrat. But I believe what Republican Abraham Lincoln believed: That Government should do for people only what they cannot do better by themselves, and no more. That’s why my education reform offers more competition, and more control for schools and States. That’s why we’re getting rid of regulations that don’t work. That’s why our health care law relies on a reformed private market, not a Government program.



On the other hand, even my Republican friends who complain the most about Government spending have supported federally-financed roads, and clean energy projects, and federal offices for the folks back home.



The point is, we should all want a smarter, more effective Government. And while we may not be able to bridge our biggest philosophical differences this year, we can make real progress. With or without this Congress, I will keep taking actions that help the economy grow. But I can do a whole lot more with your help. Because when we act together, there is nothing the United States of America can’t achieve.



That is the lesson we’ve learned from our actions abroad over the last few years.



Ending the Iraq war has allowed us to strike decisive blows against our enemies. From Pakistan to Yemen, the al Qaeda operatives who remain are scrambling, knowing that they can’t escape the reach of the United States of America.



From this position of strength, we’ve begun to wind down the war in Afghanistan. Ten thousand of our troops have come home. Twenty-three thousand more will leave by the end of this summer. This transition to Afghan lead will continue, and we will build an enduring partnership with Afghanistan, so that it is never again a source of attacks against America.



As the tide of war recedes, a wave of change has washed across the Middle East and North Africa, from Tunis to Cairo; from Sana’a to Tripoli. A year ago, Qadhafi was one of the world’s longest-serving dictators – a murderer with American blood on his hands. Today, he is gone. And in Syria, I have no doubt that the Assad regime will soon discover that the forces of change can’t be reversed, and that human dignity can’t be denied.



How this incredible transformation will end remains uncertain. But we have a huge stake in the outcome. And while it is ultimately up to the people of the region to decide their fate, we will advocate for those values that have served our own country so well. We will stand against violence and intimidation. We will stand for the rights and dignity of all human beings – men and women; Christians, Muslims, and Jews. We will support policies that lead to strong and stable democracies and open markets, because tyranny is no match for liberty.



And we will safeguard America’s own security against those who threaten our citizens, our friends, and our interests. Look at Iran. Through the power of our diplomacy, a world that was once divided about how to deal with Iran’s nuclear program now stands as one. The regime is more isolated than ever before; its leaders are faced with crippling sanctions, and as long as they shirk their responsibilities, this pressure will not relent. Let there be no doubt: America is determined to prevent Iran from getting a nuclear weapon, and I will take no options off the table to achieve that goal. But a peaceful resolution of this issue is still possible, and far better, and if Iran changes course and meets its obligations, it can rejoin the community of nations.



The renewal of American leadership can be felt across the globe. Our oldest alliances in Europe and Asia are stronger than ever. Our ties to the Americas are deeper. Our iron-clad commitment to Israel’s security has meant the closest military cooperation between our two countries in history. We’ve made it clear that America is a Pacific power, and a new beginning in Burma has lit a new hope. From the coalitions we’ve built to secure nuclear materials, to the missions we’ve led against hunger and disease; from the blows we’ve dealt to our enemies; to the enduring power of our moral example, America is back.



Anyone who tells you otherwise, anyone who tells you that America is in decline or that our influence has waned, doesn’t know what they’re talking about. That’s not the message we get from leaders around the world, all of whom are eager to work with us. That’s not how people feel from Tokyo to Berlin; from Cape Town to Rio; where opinions of America are higher than they’ve been in years. Yes, the world is changing; no, we can’t control every event. But America remains the one indispensable nation in world affairs – and as long as I’m President, I intend to keep it that way.



That’s why, working with our military leaders, I have proposed a new defense strategy that ensures we maintain the finest military in the world, while saving nearly half a trillion dollars in our budget. To stay one step ahead of our adversaries, I have already sent this Congress legislation that will secure our country from the growing danger of cyber-threats.



Above all, our freedom endures because of the men and women in uniform who defend it. As they come home, we must serve them as well as they served us. That includes giving them the care and benefits they have earned – which is why we’ve increased annual VA spending every year I’ve been President. And it means enlisting our veterans in the work of rebuilding our Nation.



With the bipartisan support of this Congress, we are providing new tax credits to companies that hire vets. Michelle and Jill Biden have worked with American businesses to secure a pledge of 135,000 jobs for veterans and their families. And tonight, I’m proposing a Veterans Job Corps that will help our communities hire veterans as cops and firefighters, so that America is as strong as those who defend her.



Which brings me back to where I began. Those of us who’ve been sent here to serve can learn from the service of our troops. When you put on that uniform, it doesn’t matter if you’re black or white; Asian or Latino; conservative or liberal; rich or poor; gay or straight. When you’re marching into battle, you look out for the person next to you, or the mission fails. When you’re in the thick of the fight, you rise or fall as one unit, serving one Nation, leaving no one behind.



One of my proudest possessions is the flag that the SEAL Team took with them on the mission to get bin Laden. On it are each of their names. Some may be Democrats. Some may be Republicans. But that doesn’t matter. Just like it didn’t matter that day in the Situation Room, when I sat next to Bob Gates – a man who was George Bush’s defense secretary; and Hillary Clinton, a woman who ran against me for president.



All that mattered that day was the mission. No one thought about politics. No one thought about themselves. One of the young men involved in the raid later told me

Friday, January 6, 2012

Presidential Candidates File [ or don't ] for Illinois' March 20 Presidential Primary

Today, Jan 6, is the deadline for filing your delegate slate for the March 20, Presidential Primary in Illinois.

INTERESTINGLY... THREE groups filed slates for the Obama delegates, so the state Democratic Party will have to inform the Board of Elections, which slate is the one intended to represent the party and the President.

As per the Republican candidates, from what we now know.... Romney's delegate slate was filed in full earlier in the week, meaning he could pick up as many at 54 delegates.

Some campaigns are not filing a delegate slate - including the Perry campaign. Although, Gov Perry's name WILL appear on the ballot. So what that means is, even if Perry were to win the state's vote count, it would be to no real effect in terms of winning delegates that would be applied to his getting the nomination. It's a beauty contest for Perry.

Santorum folks had yet to apply as of this writing, but may be in the Board of Elections in Springfield as this is being posted, as the deadline is just 18 mins away. The expectation was that Santorum's campaign was making an effort to also post a full delegate count.

Ron Paul's campaign also filed a full slate, so he's in the hunt.

Again -- 54 GOP delegates are at stake. Each campaign has to get 600 signatures per congressional district, in which they hope to elect delegates.

Unlike Virginia, where he failed to get on the ballot, former House Speaker Newt Gingrich is expected to file a full slate -- but this is unconfirmed at this point.

Former Louisiana Gov Buddy Roemer -- a former Democrat -- has also filed, but we understand it's a partial slate of delegates, having not collected the required signatures in all the congressional districts... which is btw, a hard thing to do given that certain areas, like Bobby Rush's first congressional district, may not have 600 Republicans in the entire district ! Perhaps, I exaggerate !

December Jobs Report Shows non-Farm Payroll created 200,000 New Jobs

The economy create 200,000 jobs in December and lowered the unemployment rate from 8.7% to 8.5%. One can slice and dice this a lot. December is a particularly odd month for employment due to the Christmas season and temporary hiring. But it is fair to say the economy is better off today than it was 3 years ago.

What is open for discussion, is whether the economy is improving despite the federal govt, or because of it. And -- whether we might have lowered unemployment much faster had the first focus been on the economy instead of passing the healthcare bill. But no doubt the President will be crowing about this improvement in job creation. Today's employment report now makes Feb and March the more important to see if this a trend.

Moody's Lower's Illinois' Credit Rating Again, but Then RAISES Its Outlook from Negative to "Stable"

FROM MOODY'S DOWNGRADE OF ILLINOIS'CREDIT RATING FROM A-1 to A-2, ON GENERAL OBLIGATION BONDS. NOTE ALSO THEY DROPPED THE RATING on $2.48 Billion worth of bonds for Chicago's Metropolitan Pier and Exposition Authority. That's fallen from A-2 down to A-3.

And YET ! The raise their outlook on Illinois from Negative, to Stable !


Opinion
Moody's Investors Service has lowered the State of Illinois' general obligation bond rating to A2 from A1 and revised the state's outlook to stable from negative. The A2 rating has also been assigned to $800 million general obligation January 2012 Series A and Taxable Series B bonds that the state has scheduled to price on January 11. Proceeds will finance school, transportation and other capital projects. We have also downgraded to A2 from A1 the rated portion of the state's $2.47 billion of outstanding Build Illinois sales tax revenue bonds, and to A3 from A2 $2.48 billion of Metropolitan Pier and Exposition Authority and $73 million of Civic Center Program bonds.


SUMMARY RATING RATIONALE

The downgrade of the state's long-term debt follows a legislative session in which the state took no steps to implement lasting solutions to its severe pension under-funding or to its chronic bill payment delays. Failure to address these challenges undermines near- to intermediate-term prospects for fiscal recovery. It remains to be seen whether the state has the political willingness to impose durable policies leading to fiscal strength, though in the recent past it has reached consensus on difficult decisions, such as temporary income tax increases enacted last year that stabilized state finances and reduced the state's need for non-recurring budgetary measures. Illinois retains the sovereign revenue and spending powers common to all U.S. state governments. These powers, along with Illinois' legal provisions giving G.O. debt service priority over other state spending, support the move to a stable outlook.


STRENGTHS

- Sovereign powers over revenue and spending

- Statutory provisions giving priority to debt-service over other state expenditures

CHALLENGES

- Severe pension funding shortfall
- Chronic use of payment deferrals to manage operating fund cash

- Weak management practices reflected in pension under-funding and payment delays


Outlook

The state's stable outlook reflects its sovereign powers over revenue and spending, as well as statutory provisions establishing priority of payment for G.O. debt service. Although the likelihood of effective, proactive movement on major challenges appears minimal at present, the state's stable outlook also relies on a demonstrated ability to make politically difficult choices as the need arises.


WHAT COULD MAKE THE RATING GO UP

- Adoption of a credible, comprehensive long-term pension funding plan

- Substantial progress in reducing payment backlog, and legal framework or plan to prevent renewed buildup of late bills


WHAT COULD MAKE THE RATING GO DOWN

- Early phase-out of 2011 tax increases without offsetting binding expenditure actions, increasing the structural gap

- Further deterioration in pension funded status or failure to make legally required contributions

FULL Article
http://www.moodys.com/research/MOODYS-LOWERS-STATE-OF-ILLINOIS-GO-RATING-TO-A2-FROM--PR_234787

Thursday, January 5, 2012

President Obama's Statement on Funding Cuts and New Strategy for US Defense Forces

REMARKS BY THE PRESIDENT

ON THE DEFENSE STRATEGIC REVIEW



The Pentagon



11:00 A.M. EST



THE PRESIDENT: Good morning, everybody. The United States of America is the greatest force for freedom and security that the world has ever known. And in no small measure, that’s because we’ve built the best-trained, best-led, best-equipped military in history -- and as Commander-in-Chief, I’m going to keep it that way.



Indeed, all of us on this stage -- every single one of us -- have a profound responsibility to every soldier, sailor, airman, Marine and Coast Guardsman who puts their life on the line for America. We owe them a strategy with well-defined goals; to only send them into harm’s way when it’s absolutely necessary; to give them the equipment and the support that they need to get the job done; and to care for them and their families when they come home. That is our solemn obligation.



And over the past three years, that’s what we’ve done. We’ve continued to make historic investments in our military -- our troops and their capabilities, our military families and our veterans. And thanks to their extraordinary service, we’ve ended our war in Iraq. We’ve decimated al Qaeda’s leadership. We’ve delivered justice to Osama bin Laden, and we’ve put that terrorist network on the path to defeat. We’ve made important progress in Afghanistan, and we’ve begun to transition so Afghans can assume more responsibility for their own security. We joined allies and partners to protect the Libyan people as they ended the regime of Muammar Qaddafi.



Now we’re turning the page on a decade of war. Three years ago, we had some 180,000 troops in Iraq and Afghanistan. Today, we’ve cut that number in half. And as the transition in Afghanistan continues, more of our troops will continue to come home. More broadly, around the globe we’ve strengthened alliances, forged new partnerships, and served as a force for universal rights and human dignity.



In short, we’ve succeeded in defending our nation, taking the fight to our enemies, reducing the number of Americans in harm’s way, and we’ve restored America’s global leadership. That makes us safer and it makes us stronger. And that’s an achievement that every American -- especially those Americans who are proud to wear the uniform of the United States Armed Forces -- should take great pride in.



This success has brought our nation, once more, to a moment of transition. Even as our troops continue to fight in Afghanistan, the tide of war is receding. Even as our forces prevail in today’s missions, we have the opportunity -- and the responsibility -- to look ahead to the force that we are going to need in the future.



At the same time, we have to renew our economic strength here at home, which is the foundation of our strength around the world. And that includes putting our fiscal house in order. To that end, the Budget Control Act passed by Congress last year -- with the support of Republicans and Democrats alike -- mandates reductions in federal spending, including defense spending. I’ve insisted that we do that responsibly. The security of our nation and the lives of our men and women in uniform depend on it.



That’s why I called for this comprehensive defense review -- to clarify our strategic interests in a fast-changing world, and to guide our defense priorities and spending over the coming decade -- because the size and the structure of our military and defense budgets have to be driven by a strategy, not the other way around. Moreover, we have to remember the lessons of history. We can’t afford to repeat the mistakes that have been made in the past -- after World War II, after Vietnam -- when our military was left ill prepared for the future. As Commander in Chief, I will not let that happen again. Not on my watch.

We need a start -- we need a smart, strategic set of priorities. The new guidance that the Defense Department is releasing today does just that. I want to thank Secretary Panetta and General Dempsey for their extraordinary leadership during this process. I want to thank the service secretaries and chiefs, the combatant commanders and so many defense leaders -- military and civilian, active, Guard and reserve -- for their contributions. Many of us met repeatedly -- asking tough questions, challenging our own assumptions and making hard choices. And we’ve come together today around an approach that will keep our nation safe and our military the finest that the world have ever known.



This review also benefits from the contributions of leaders from across my national security team -- from the departments of State, Homeland Security and Veterans Affairs, as well as the intelligence community. And this is critical, because meeting the challenges of our time cannot be the work of our military alone -- or the United States alone. It requires all elements of our national power, working together in concert with our allies and our partners.



So I’m going to let Leon and Marty go into the details. But I just want to say that this effort reflects the guidance that I personally gave throughout this process. Yes, the tide of war is receding. But the question that this strategy answers is what kind of military will we need long after the wars of the last decade are over. And today, we’re fortunate to be moving forward from a position of strength.



As I made clear in Australia, we will be strengthening our presence in the Asia Pacific, and budget reductions will not come at the expense of that critical region. We’re going to continue investing in our critical partnerships and alliances, including NATO, which has demonstrated time and again -- most recently in Libya -- that it’s a force multiplier. We will stay vigilant, especially in the Middle East.



As we look beyond the wars in Iraq and Afghanistan -- and the end of long-term nation-building with large military footprints -- we’ll be able to ensure our security with smaller conventional ground forces. We’ll continue to get rid of outdated Cold War-era systems so that we can invest in the capabilities that we need for the future, including intelligence, surveillance and reconnaissance, counterterrorism, countering weapons of mass destruction and the ability to operate in environments where adversaries try to deny us access.



So, yes, our military will be leaner, but the world must know the United States is going to maintain our military superiority with armed forces that are agile, flexible and ready for the full range of contingencies and threats.



We’re also going to keep faith with those who serve, by making sure our troops have the equipment and capabilities they need to succeed, and by prioritizing efforts that focus on wounded warriors, mental health and the well-being of our military families. And as our newest veterans rejoin civilian life, we’ll keep working to give our veterans the care, the benefits and job opportunities that they deserve and that they have earned.



Finally, although today is about our defense strategy, I want to close with a word about the defense budget that will flow from this strategy. The details will be announced in the coming weeks. Some will no doubt say that the spending reductions are too big; others will say that they’re too small. It will be easy to take issue with a particular change in a particular program. But I’d encourage all of us to remember what President Eisenhower once said -- that “each proposal must be weighed in the light of a broader consideration: the need to maintain balance in and among national programs.” After a decade of war, and as we rebuild the source of our strength -- at home and abroad -- it’s time to restore that balance.



I think it’s important for all Americans to remember, over the past 10 years, since 9/11, our defense budget grew at an extraordinary pace. Over the next 10 years, the growth in the defense budget will slow, but the fact of the matter is this: It will still grow, because we have global responsibilities that demand our leadership. In fact, the defense budget will still be larger than it was toward the end of the Bush administration. And I firmly believe, and I think the American people understand, that we can keep our military strong and our nation secure with a defense budget that continues to be larger than roughly the next 10 countries combined.



So again, I want to thank Secretary Panetta, Chairman Dempsey, all the defense leaders who are on this stage, and some who are absent, for their leadership and their partnership throughout this process. Our men and women in uniform give their very best to America every single day, and in return they deserve the very best from America. And I thank all of you for the commitment to the goal that we all share: keeping America strong and secure in the 21st century, and keeping our Armed Forces the very best in the world.



And with that, I will turn this discussion over to Leon and to Marty, who can explain more and take your questions.



So thank you very much. I understand this is the first time a President has done this. It’s a pretty nice room. (Laughter.)



Thank you guys.

GOP House Leader Tom Cross Statement on Gov Quinn's signing Pension Abuse Bill into Law Today

GOP House Leader Tom Cross, "Thanks to Governor Quinn's actions today, effective immediately, pension abuse can't run rampant as it has been reported in recent months. As soon as we found out about some of these abuses, we worked quickly with both the House and Senate to pass strong reforms. We will remain vigilant on these issues of abuse as well as tackling the broader systematic funding problems with our pension systems."

Defense Sec Leon Panetta on new Military Strategy & Defense Cuts

Defense Sec Leon Panetta on new Military Strategy & Defense Cuts by Illinois Channel