Showing posts with label Chief. Show all posts
Showing posts with label Chief. Show all posts
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Thursday, September 17, 2009

From Finance Chief, a Bill That May Weather the Blows


On the surface, it appears that no one is happy with Sen. Max Baucus (D-Mont.) -- and that may be the best news President Obama has haWithin minutes of the release of the Senate Finance Committee chairman's long-awaited health-care reform bill Wednesday, the attacks started flying. Liberal Democrats and allies, particularly labor unions, fumed. Republicans, after being courted for months, denounced the work as pure partisanship.

But behind the rhetorical fireworks was a sense that the fragile coalition of major industry leaders and interest groups central to refashioning the nation's $2.5 trillion health-care system remains intact. As they scoured the 223-page document, many of the most influential players found elements to dislike, but not necessarily reasons to kill the effort. Most enticing was the prospect of 30 million new customers.

At the White House, after the delays and drama of summer, strategists spoke finally of movement and a possible path toward success on the president's centerpiece domestic policy goal. To keep up the pressure, Obama met with three lawmakers who had warned they would not support the Baucus bill.

Sen. John D. Rockefeller IV (D-W.Va.), who is upset that Baucus did not include a public health insurance option, tempered his criticism after a private meeting with Obama, signaling that he hopes to work out a compromise.

"Nothing is clearer than the president's commitment to providing affordable and effective health care for all Americans, and he and I are united in our efforts to deliver on this promise," he said.

Lawmakers and lobbyists alike cautioned that Obama remains far from a White House signing ceremony and that perhaps the greatest danger at this point is death by a thousand legislative changes.
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The goal now is to keep the legislation moving toward a House and Senate conference committee, in which the administration would have its greatest influence on the outcome.

"He is open to a variety of different approaches if it gets it out of the Finance Committee," Sen. Ron Wyden (D-Ore.) said after talking to Obama. "He also knows he's got a lot of heavy lifting to do to get it out of the Finance Committee."

At the heart of the administration's strategy -- and Wednesday's guarded optimism -- is a collection of deals intended to neutralize the interest groups that helped defeat President Bill Clinton's health-care overhaul 15 years ago. In each instance, the industry has agreed to make financial concessions in return for new customers or other protections that could have lasting effects.

Hospitals, for example, have said they would accept about $155 billion in cuts over the next decade in return for promises that they would be exempt from actions taken by a proposed commission that would pursue additional savings in the Medicare program.

The best evidence that the approach was holding was the calm emanating from organizations that have criticized House health-care bills and a version approved by the Senate health committee.
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Wednesday, September 16, 2009

Finance Chief to Tackle Japan's Economic Woes

TOKYO -- Japan's newly appointed finance minister, Hirohisa Fujii, will focus on fixing the country's economy, even if that means it will take longer to reduce Japan's massive public debt and possibly prompt more new-debt issuance.

In an interview this week, the 77-year-old Mr. Fujii said he would prioritize economic growth over fiscal overhaul. "If you allow me to make the story short, while fiscal rehabilitation is important, it comes after economic growth," he said. "There's no question that unless the economy recovers to some extent ... our country's fiscal state will get even worse."

He also hinted that the Democratic Party of Japan government may come up with new stimulus steps if the economy weakens, even if that would require a further issuance of bonds.

"We certainly must keep in mind the possibility of [the Japanese economy entering] a second round of sharp contraction," said Mr. Fujii, who was named finance minister Wednesday by new Prime Minister Yukio Hatoyama.

While exports to China and India are rebounding, Japanese business investment remains weak, and "wage and employment conditions are considered to be in the worst shape in the postwar era ... which will surely ricochet against consumer spending," he said.

Mr. Hatoyama has insisted that the DPJ's promised economic-support measures will be financed without floating more debt, but Mr. Fujii's remarks suggest the government's focus will be ensuring that the economy doesn't deteriorate further.

Should the economy demand more money, "it is possible" the government will sell more bonds to raise cash, Mr. Fujii said, despite worries about how that could worsen Japan's poor fiscal state. The country's public debt stands at 170% of gross domestic product -- the worst ratio in the industrialized world -- and the Organization for Economic Cooperation and Development expects the figure to hit around 200% next year.

The DPJ government could also support the economy by redirecting trillions of yen it plans to save through scrapping steps it considers ineffective in the previous government's last stimulus package, valued at 15.4 trillion yen, or $169 billion.

Mr. Fujii's immediate task is to work with Naoto Kan, a top DPJ officials who Wednesday was formally named minister in charge of the new National Strategy Bureau. The bureau is expected to set guidelines on key policies such as the national budget. Mr. Kan is expected to determine the priorities and outline of the budget, while Mr. Fujii will finalize details and make ends meet as tax revenue shrinks due to the economic slump.
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