• Before agreeing to EU demands Greece put their financial strategy to a vote. • The electorate voted “no” in a referendum where the question asked is should the government reduce benefits in order to become fiscally responsible. • However, the Greek government cannot sustain the benefits being paid – and needs a bailout to be solvent. • The EU member nations have said no to any further bailout without spending cuts.

ATHENS, Greece (AP) — Greece faced an uncharted future as its interior ministry predicted Sunday that more than 60 percent of voters in a hastily called referendum had rejected creditors’ demands for more austerity in exchange for rescue loans.

Prime Minister Alexis Tsipras, who was gambling the future of his 5-month-old left-wing government on the vote, insisted that a “no” vote would strengthen his hand to negotiate a better deal with creditors, while a “yes” result would mean capitulating to their harsh demands. (more…)

The government of Greece gets themselves into financial trouble with unsustainable social benefits and promises. Now, when they run out of money, they begin confiscating funds from those who actually saved money. “Recapitalization”, the ultimate spread the wealth program.

2016 will be known as the year when “socialism” confronts “capitalism”.  Bernie Sanders, Elizabeth Warren and Hillary Clinton leading Socialism Team U.S.A.

(Financial Times) Greek banks are preparing contingency plans for a possible “bail-in” of depositors amid fears the country is heading for financial collapse, bankers and businesspeople with knowledge of the measures said on Friday.

The plans, which call for a “haircut” of at least 30 per cent on deposits above €8,000, sketch out an increasingly likely scenario for at least one bank, the sources said.

A Greek bail-in could resemble the rescue plan agreed by Cyprus in 2013, when customers’ funds were seized to shore up the banks, with a haircut imposed on uninsured deposits over €100,000. (more…)

The reoccurring problem with socialism is eventually you run out of other people’s money !!

I’m not quite sure what the exact percentage is currently, but it was previously estimated more than 50% of all Puerto Ricans receive federal government subsidy (welfare) benefits of some form.  It is an unsustainable socio-economic system based on massive federal expenditures to subsidize their residents. 

Puerto Rico now saying “repayment is impossible”.  Here come the cries for bailouts from the Democrats.

(Via New York Times) Puerto Rico’s governor, saying he needs to pull the island out of a “death spiral,” has concluded that the commonwealth cannot pay its roughly $72 billion in debts, an admission that will probably have wide-reaching financial repercussions.

The governor, Alejandro García Padilla, and senior members of his staff said in an interview last week that they would probably seek significant concessions from as many as all of the island’s creditors, which could include deferring some debt payments for as long as five years or extending the timetable for repayment.

“The debt is not payable,” Mr. García Padilla said. “There is no other option. I would love to have an easier option. This is not politics, this is math.” (more…)

In a 5-4 ruling, the justices ruled that the EPA should have taken into account the financial costs to utility companies, states and affected citizens before deciding whether to set limits for the toxic air pollutants it regulated in 2011.  SCOTUS forcing the EPA to consider the wholesale costs to the people benefiting from the power generation.

This case arises from the EPA’s efforts to regulate pollution – and in particular mercury – from power plants. The question before the Court was whether, when determining whether to regulate the emissions from power plants, the EPA should take into account the cost to the plants of complying.

States and industry groups had argued that the EPA must do so, while the EPA argued that it does not have to consider costs until later in the process, when it issues specific pollution standards. Today the Court agreed with the states and industry groups, holding that the EPA’s refusal to consider costs when deciding whether to regulate was unreasonable.

The opinion remands the case to the D.C. Circuit for further proceedings. But from the opinion (embedded below) it seems likely that the agency will have to scrap their plans, try again and finding some mechanism to consider costs, before it can act on this issue.

(more…)

(Via The Hill) The Senate voted Wednesday to approve fast-track authority, securing a big second-term legislative win for President Obama after a months-long struggle.

The 60-38 Senate vote capped weeks of fighting over the trade bill, which pitted Obama against most of his party — including Senate Democratic Leader Harry Reid (Nev.) and House Minority Leader Nancy Pelosi (D-Calif.).

[…] Fast-track, or trade promotion authority (TPA), will allow the White House to send trade deals to Congress for up-or-down votes. The Senate will not be able to filibuster them, and lawmakers will not have the power to amend them.

The expedited process, which lasts until 2018 and can be extended until 2021, greatly increases Obama’s chances of concluding negotiations on the TPP, which is a key goal of the president’s. (more…)

The vote was 218-208. Backing the bill were 190 Republicans and 28 Democrats; 50 Republicans and 158 Democrats voted against it. Eight members did not vote.

Neither Wall Street nor their 24/7/365 lobbying group, the U.S. Chamber of Commerce, care about U.S. jobs.  Their collective stakes are based on business financial statements which can be improved if expenses are reduced and labor costs are outsourced.

Tom Donohue, CoC President, controls the congressional reelection purse strings.  Both John Boehner and Mitch McConnell are beholden to Tom Donohue; that’s why both are working earnestly to deliver something vital to the CoC and President Obama.

Well written article -> (Via Politico) […]  It’s the second time in two weeks that Speaker John Boehner’s (R-Ohio) chamber voted to approve the legislation. The legislation was halted last week by House Democrats, who voted against an aid package for workers in an attempt to scuttle the larger trade agenda. This time, Boehner and McConnell devised a complicated process that could deliver Obama his biggest legislative achievement in years.

The legislative maneuvering, on which Boehner and McConnell consulted with Obama during a conference call this week, could result in Obama approving the trade package before the July 4 recess — and eventually usher in a trade deal that would touch 40 percent of the global economy. The fast-track authority is essential, proponents say, because it would bar Congress from making any changes to the Trans-Pacific Partnership after a deal is reached between the U.S. and other negotiating countries. Lawmakers would get only an up-or-down vote on the pact. (more…)

TAA or “Trade Adjustment Assistance” was a legislative package attached to the “fast track” portion of legislation for President Obama’s Trans-Pacific Trade Agreement Authority.

In essence, TAA was a provision to provide financial assistance for any displaced U.S. workers who were negatively affected by any trade agreement. TAA was attached to the Senate’s bill for “fast track trade authority” which lowers the threshold for Senatorial Consent on any Obama trade deal. TAA was basically attached to, packaged with, TPA to get more support the fast track measure.

However, TAA failed to pass (126-yea, 302-nay):

WASHINGTON […] Only 40 Democrats backed TAA while 144 voted against it. On the GOP side, 158 Republicans voted “no” while 86 Republicans voted “yes.”

The vote against TAA is a humiliating defeat for Obama, who had spent weeks lobbying House Democrats to support his trade agenda in the face of overwhelming opposition from liberal groups and organized labor.

(more…)

The key part of this vote is to remove the possibility for trade defeats in the Senate.  If Fast Track authority is passed/granted then a simple majority of 51 votes will be all that is required to approve President Obama’s trade deal.  

Mitch McConnell has essentially granted President Obama new powers not enumerated in the constitution.  John Boehner is about to do the same thing in the House of Representatives.  Paul Ryan has cemented his cross-over to the dark side of Chamber of Commerce Republicans led by CoC head Tom Donohue…..

(Via Washington Examiner) The House will vote Friday on legislation to give President Obama “fast track” authority to secure trade deals.

Republican leaders announced plans for the vote in a closed-door meeting with their rank and file, who are divided over whether to support the legislation.

The vote is likely to be close. With just two days until the vote, GOP leaders continue to negotiate with members to win their approval for the bill. (more…)

(CNSNews.com) – The Trans-Pacific Partnership that President Barack Obama is negotiating with 11 other nations seeks to eliminate both tariff and nontariff trade barriers with these countries, according to the Congressional Research Service. One of those countries is Vietnam, which the State Department says maintains a Communist regime.
In 2014, the U.S. ran a $24,858,700,000 trade deficit with Vietnam, according to U.S. government trade data published by the Census Bureau. U.S. producers sold $5,724,900,000 in goods to purchasers in Vietnam. At the same time, producers in Vietnam sold $30,583,600,000 in goods to purchasers in the United States.
Documents related to the TPP are currently classified. Members of Congress can only review them in a secured room. But a report published in March by the Congressional Research Service—“The Trans-Pacific Partnership (TPP) Negotiations and Issues for Congress”–describes the basic purpose of the deal the administration is seeking. (read more)