Category: Budget

The Goal is Not Recovery, It’s the Dismantling of the Social Safety State

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That’s what the right wing push for austerity is all about.

Case in point, the chancellor of the Exchequer George Osborne, who is saying that since austerity is further depressing the British economy, it has become necessary extend austerity until at least 2018:

Britons, many already weary of government austerity budgets that some economists say are impeding the country’s recovery, are going to have to wait even longer for relief.

The architect of the austerity program, George Osborne, the chancellor of the Exchequer, told Parliament on Wednesday that the government had missed one of its self-imposed debt-cutting goals and would have to extend the belt-tightening into 2018, a year longer than previously promised.

Although Mr. Osborne maintained that the debt reduction plan was still on track, his presentation drew heckling and laughter from some opposition lawmakers, particularly after he argued that new tax measures would show that “we’re all in this together.”

The next general election in Britain will take place in 2015, well before the end of austerity measures that have included cuts in welfare services and the elimination of tens of thousands of public sector jobs.

On Wednesday, the Office for Budget Responsibility, a nonpartisan body that is monitoring the economy, said it now expected full-year data to show that the economy shrank 0.1 percent this year, instead of growing 0.8 percent, as the office had previously forecast.

It also said the economy would grow 1.2 percent next year as opposed to the 2 percent predicted earlier.

“It’s a hard road but we are getting there,” Mr. Osborne told Parliament. “Britain is on the right track. Turning back now would be a disaster.”

The evidence is clear: Austerity in a depressed economy further depresses the economy, and reduces tax revenues.

Austerity is not about creating growth, nor is it about reducing deficits.  It is merely camouflage for an assault on social insurance.

They’ve Lost the F%$#ing Heritage Foundation

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Yesterday, I mentioned that the Republican budget proposals were fact free, well, it appears that people at the right wing Heritage Foundation agree with me:

The House Republican leadership has offered a substantive counteroffer to President Obama’s frivolous fiscal cliff proposal of last week. At first blush, it appears little more than categorical, pre-emptive capitulation.

To be fair, the details of the Republican proposal are extraordinarily vague. Nor is much clarity or comfort gained from the three-page accompanying letter sent to the President and signed by Speaker John Boehner (R-OH), Majority Leader Eric Cantor (R-VA), House Budget Committee Chairman Paul Ryan (R-WI), and three other senior members of the House Republican leadership.

Much can and likely will come out in the days ahead clarifying what a few figures and labels on a single sheet of paper mean. One can only hope the additional clarity substantially improves the picture. However, it is very difficult to be hopeful.

That’s gonna leave a mark.

Normally, I think that the Heritage foundation is full of crap.

Even amongst the right wing think tanks, it’s hacktacular.

Full disclosure, a friend of mine was fired by the Heritage Foundation because she got cancer, so I am not favorably inclined toward these guys.

H/t Talking Points Memo.

Obama Has Apparently Switched to a High Fiber Cereal

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I’m shocked, shocked to find that gambling is going on here!

Because he has stopped negotiating with himself, and he is simply putting forward his favored solution to Republicans, and demanding proposals from them:

Amid demands from Republicans that President Obama propose detailed new spending cuts to avert the year-end fiscal crisis, his answer boils down to this: you first.

Mr. Obama, scarred by failed negotiations in his first term and emboldened by a clear if close election to a second, has emerged as a different kind of negotiator in the past week or two, sticking to the liberal line and frustrating Republicans on the other side of the bargaining table.

Disciplined and unyielding, he argues for raising taxes on the wealthy while offering nothing new to rein in spending and overhaul entitlement programs beyond what was on the table last year. Until Republicans offer their own new plan, Mr. Obama will not alter his. In effect, he is trying to leverage what he claims as an election mandate to force Republicans to take ownership of the difficult choices ahead.

His approach is born of painful experience. In his first four years in office, Mr. Obama has repeatedly offered what he considered compromises on stimulus spending, health care and deficit reduction to Republicans, who either rejected them as inadequate or pocketed them and insisted on more. Republicans argued that Mr. Obama never made serious efforts at compromise and instead lectured them about what they ought to want rather than listening to what they did want.

So the Republicans have been shocked, that gambling is going on he’s decided to stop conceding at the start of talks.

BTW, the Republicans have now to been forced to make a real in response, only it’s completely number and specifics free. Yes, the propose raising medicare age to 67, which won’t save any money, because the 65-67 year old’s will need insurance subsidies, unspecified loophole closing (gee, they don’t want to be the first ones to propose cutting the mortgage deduction?):

The offer makes no mention of how to handle a looming battle over the federal debt limit, which will soon need to raised above $16.4 trillion. Nor does the offer provide any suggestions for how to carry out the debt-reduction framework and avoid the fiscal cliff. GOP aides said those details are open to negotiation.

“There are multiple ways to get this done,” said one senior GOP aide who briefed reporters on the condition of anonymity. “The details need to be filled in later.”

(emphasis mine)

The Republicans want to make the Democrats propose specific cuts, and then bludgeon them them with that in 2014.

Do not expect the GOP to bargain in good faith, they are hostage takers, and will be for the foreseeable future.

Because No One in Washington Believes In Public Works for the Public Good

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Duncan Black wonders why Obama’s infrastructure plans have so much added complexity in order to accommodate private investors:

I like me some infrastructure spending. I do not know why the government, which can borrow money for free, needs a rube goldberg machine with added middlemen to make it happen.

This one is simple: There is a Washington consensus about public projects these days, it’s that giving some rich dude the opportunity to earn a profit at taxpayer expense, is essential because of capitalism.

What are you a commie pinko or something?

Yes, the free market mousketeers are basically corrupt ratf%$#s.

BTW, that is one seriously fat cat.

Not Enough Bullets

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If I were Al Sharpton, I’d be Screaming at Her

Remember Carly Fiorina?  The former CEO of HP?  The one who first came to prominence by presiding over massive accounting irregularities masquerading as blockbuster sales at Lucent?

Well, when she got fired as CEO, HP employees are reported to have spontaneously burst into song, specifically the song Ding Dong the Witch is Dead.

I’m sure that she cried all the way to the bank, because she got a $40 million dollar golden parachute.

She knows what the problem with the good old USA is, it’s that public employees’ unions have it too good: (at about 3 minutes into the video.

Carly Fiorina, who reportedly stood to receive more than $42 million after being ousted at HP in 2005, says that public workers should receive less benefits because “it is not fair” that unions are “so rich.”

During a Sunday panel segment on NBC, MSNBC host Al Sharpton asserted that Congress must agree to raise taxes on the wealthy before cutting spending.

“This is about fairness,” he explained. “Why do we need to need to deal with the tax on the rich first? Because we must ensure Americans we are dealing with fairness. We keep talking about shared sacrifice, there was not shared wealth and shared prosperity. So, you’re asking people that didn’t enjoy the good times to share in paying for the tab that they never enjoyed.”

Most of the American public might think that a an unbroken record of failure, capped by a $40 million golden parachute might be a bigger problem than the the deferred compensation known as a mortgage.

Seriously, business management seems to be a petri dish for sociopaths.

H/t Chris in Paris at Americablog.

It’s Jobless Thursday!

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And the number of initial claims hit an 19 month high, up 79K to 439K.

The consensus is that it was an artifact of the devastation of Frankenstorm Sandy.

In other, probably more significant news, the Euro Zone is back in recession, and ECB president  Mario Draghi is busy suggesting that it’s better to cut spending than it is to raise taxes, even though tax cuts have less stimulative effects than does government spending.

I swear, there is not a single economic “authority” in the entire Euro Zone who has any morals at all.

They have all somehow bought into the idea that creating pain for most of the members of a society is somehow an independent good.

F%$# That

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Yes, I am quoting Repo Men

John Boehner is say that
tax cuts for the rich should be extended for a year as a start of negociations:

Obama’s proposal is at odds with the position of House Speaker John Boehner, who earlier Friday said all the tax cuts — including those for the rich — should be extended until next year to provide more time to work out a bigger deal on taxes and spending cuts.

 “I’m proposing that we avert the fiscal cliff together in a manner that ensures that 2013 is finally the year that our government comes to grips with the major problems that are facing us,’’ Boehner said.

I will make a point here: John Boehner cannot be trusted, so tax increases on the rich pigs™ need to be passed at the start.

I should be clear here:  I do not mean that the Orange Avenger of Congress® is tremendously dishonest by the standards of the Republican party,* but rather that he is incapable of keeping his promises, because is arguably the most incompetent and most ineffectual House Speaker in at least the past 100 years.

If he promises something, get it in your hand before moving on to the next item.

*Which is kind of like saying that he is the world’s tallest midget.

Reid Just Threw a Brush Back Pitch at Barack Obama

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To which I say good for him:

Nevertheless, getting to a deal won’t be easy — especially if Democrats refuse to entertain cuts on entitlements. Speaking to reporters after the news conference, Reid wouldn’t say whether Democrats would be open to cutting Medicare benefits, but he said that Social Security wouldn’t be touched.

I’m not surprised that he said this.

He picked up seats while defending twice as many seats as Republicans, and the incoming Senators are more liberal than their predecessors, and the only “Democrat” who might have been eager to take point on this, Bob Kerrey, lost his race for Senate.

Fred Hiatt Goes Rogue

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The Washington Post editorial board called out Paul Ryan’s budget proprosal as 6 pounds of sh%$ in a 5 pound bag:

Finally, if you heard a glimmer of responsibility from Mr. Romney lately, think again: Mr. Ryan pulled back on it. Mr. Romney has been saying that middle-class families shouldn’t expect their tax bills to go down very much, if at all, because their lower rates would be offset by, yes, curtailing deductions. Fox News’s Neil Cavuto pressed Mr. Ryan on that score. “Was he trying to brace us for some bitter news?” Mr. Cavuto asked. Mr. Ryan: “No, not at all. . . . Middle income taxpayers get higher take-home pay.”

Mr. Wallace asked what Mr. Romney’s priority would be if his numbers didn’t add up and the reduction in tax rates couldn’t be done without losing revenue. Mr. Ryan didn’t flinch. “Keeping tax rates down,” he replied.

In other words, revenue-neutral would be nice. Lowering tax rates is the Republican priority, deficits be damned.

I am stunned. The Washington Post editorial board is ground zero of “very serious people” inside the Beltway wankertude, and they love people who want to sh%$ on the poor and elderly.

I’m wondering whose cheerios that Ryan pissed in.

H/t Paul Krugman.

$10 Billion

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The program to extend the life of the B-61 nuclear bomb is looking to have a price tag in excess of $10 billion: (Paid subscription required)

In the Energy Department’s National Nuclear Security Administration, (NNSA), officials of nuclear weapons programs try to keep them out of the limelight. But extending the life of the B61 is attracting all kinds of unwanted attention.

The cost of the nuclear bomb has doubled, with estimates now projecting that the weapon designed to defend Europe could cost $10 billion. On top of the weapon’s ballooning price tag, the Air Force is working on a $1.2 billion tail kit program that adds a limited guidance capability to the bomb. And the arms control community is starting to buzz about the implications.
News about the B61’s cost growth and two-year schedule delay is gaining traction on Capitol Hill. The concern among lawmakers could have implications for the program and the NNSA that oversees the U.S. nuclear force.
B61 bombs are the oldest in the U.S. stockpile. They entered the force in the 1970s, and can be used on fighter jets and long-range bombers. The arsenal has five different versions, both strategic and tactical, focused on protecting NATO members.
The latest life-extension program (LEP) aims to extend their life , merging four of those variants, all with different-sized explosive capabilities, into the B61-12. The B61-12 would draw on the design of the smallest nuclear explosive, or yield, weapon. The administration says using one variant will save money, and the B61-12 weapon would add an advanced security system to prevent unauthorized access to the weapons.

Serious, $10 billion to standardize on one bomb variant, and $12.2 billion to give it a tail steering guidance system?

These numbers are f%$#ing nuts!

I am Sick to Death of Right Wing Democrats

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Case in point, the Obama’s OMB chair turned overpaid Wall Street puke ( Vice Chairman of Global Banking at Citigroup) Peter Ortag, who is suggesting that the solution to the problems of the US Post Office is to let the financial industry to steal it from the American people:

Those who believe in the usefulness of government must be vigilant about making sure all its activities are vital ones, since the unnecessary ones undermine public confidence. With this in mind, Congress should now privatize the U.S. Postal Service.

Further evidence for why this should happen came last week, when the Postal Service announced that it would be unable to meet billions of dollars in payments that are coming due in August and September for future retiree health benefits. Privatization is not always the best way to improve efficiency, but the problems facing the Postal Service will be difficult to address if it remains within the government, and there is no longer any sound reason for it not to go private.

This ignores the fact that the US Post Office, one of the functions specifically mentioned in the Constitution, is actually running a primary surplus.
It is having money problems because, in 2006, the Republicans required them to fully fund their pension plan out to 75 years over a 10 year period.

Right now, the Post Office is on track to default on a $5.5 billion pension payment to the US treasury tomorrow:

The U.S. Postal Service affirmed it won’t make a required $5.5 billion payment due tomorrow to the U.S. Treasury for future retirees’ health care, an obligation the agency said must end for it to become financially viable.

The service has said for months it couldn’t afford the payment, which was initially due last September, nor a $5.6 billion payment required by Sept. 30 for this year. Postal legislation passed by the U.S. Senate on April 25 would slow the schedule for those obligations. The House hasn’t acted on a different postal measure aimed at changes to help the service cope with declining mail volume.

“This has no effect on mail processing or delivery, no impact on post offices, and employees will continue to get paid,” Dave Partenheimer, a Postal Service spokesman, said today in a phone interview.

Just in case your wondering, the USPS is on a pace to lose about $12 billion this year, after taking into account paying for the retirement of people who haven’t been born yet.

Their pension is grossly over funded, (A true rarity in the US) and if they did not have to make these payments, then they would be turning something on the order of an $8 billion profit.

But according to Orzag, the real problem is that Post Office is not able to unleash its free market super-powers.

It’s really all about allowing his cow-orkers at Citi to generate the enormous fees that would be the product of any privatization this massive.

Amity Shlaes is a F%$#ing Moron, Part LVMXXVII

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Here latest brain fart is the suggestion that the federal government place levies on the states, and to allow them to collect the taxes, because the Articles of Confederation were such a good idea.

I’m not being metaphorical here.  She literally extolls the virtues of the articles of confederation:

.There will be objections, of course. The first is that states’ collecting the money isn’t our tradition. It is, actually. Under the Articles of Confederation, the states, not individuals, owed payments to the federal government. The modern income tax, where citizens pay the federal government, came into being only a century ago. 

Which is not the same thing as saying that the federal government hasn’t had taxing authority for the past 223 years, though she is implying that the failed and rejected Articles of Incorporation is part of the American tradition of governance.

The Magna Carta, and the Marine Insurance Act of 1746 have more to do with the heritage and traditions of the United States than does the Articles of Confederation.

Just remember that she spent decade as a “senior fellow in economic history at the Council on Foreign Relations,” as well as being an adjunct (temp) prof at NYU’s Stern School of Business, despite making sh%$ up in her so called histories, and despite the fact that she her degree in is in English.

So if a representative from either of the above institutions claims that the sky is blue, find independent verification.

Any organization that hires her has no credibility.

The Next Gen Gripen Looks to Be a World Beater

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Click for full size


This is a lot cheaper

Saab put out a very impressive briefing on the next generation of Gripen at Farnborough, where the headline was much lower direct operating costs:

Third (and most important) is that all air forces are finally realizing that operating costs are more important than acquisition costs. The debate over JSF costs – from the Navair leaks of 2010, through program director VAdm Dave Venlet’s “it makes their knees go weak” quote in April 2011 to Lockheed Martin’s recent assaults on the competence of Pentagon accountants – revolves around operating costs, and that is a fight that Gripen wins.

Saab says that the E/F will cost under $5,000 per flight hour – one-third to one-quarter of its estimates for Eurofighter, Rafale or JSF (Saab uses Australian numbers for the latter, which are lower than some).

These numbers are not just pie in the sky. The Gripen has been in service for over a decade, as has its engine, and it’s half the size of its competitors, and you pay for aircraft like you pay for ground beef, by the pound.  (And yes, the numbers for the JSF are unsupportable)

However, what I found most interesting was the fact that they touted the advantages of non-integrated avionics, (page 33) explaining how you can move more quickly if your tactical avionics are separate from flight critical systems, which also allows greater access by the operating nations who might want to make their own upgrades and weapons.

This is a direct challenge to the tightly integrated, and inaccessible avionics package in the JSF.

PDF after the break. (H/T Eric Palmer for the embed.)

Dutch Parliament Deals Blow to JSF

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The Dutch Parliament has voted to ask the PM and cabinet to cancel the jet order:

The Netherlands should scrap plans to buy F-35 Joint Strike Fighter jets because it cannot afford the project’s ballooning costs as the country attempts to cut spending, a majority of parliament said on Thursday.

One leading party, Labour, will submit a proposal to the 150-seat legislature on the last session before Sept. 12 elections calling for an end to Dutch participation in the Lockheed Martin Corp warplanes project.

Whether the Netherlands, which has already ordered two F-35 test planes, will quit the project depends on the outcome of the elections, and the new government that takes office afterwards.

The Dutch government collapsed over painful austerity measures in April, but the state has to cut costs by billions of euros to meet EU guidelines. About 4.5 billion euros has been set aside for the F-35 jets.

During a debate with Dutch Defence Minister Hans Hillen, lawmakers complained about the project’s escalating costs and said there were no guarantees over Dutch jobs or future costs.

I’m beginning to think that this will end up a lot like the F-111.

The only people who bought that plane were us and the Australians. (The British canceled after escalating costs)

It’s the Bankster’s World, We Just Live in It

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Case in point, Moberly Missouri, where the New York Times scolds them for not paying debts incurred through fraud and the corruption and/or incompetence of banks and regulators:

Residents of Moberly, Mo., got a shock last year when they discovered that their city had guaranteed $39 million in bonds, sold by an independent authority, to help a Chinese company build a plant to make sucralose, an artificial sweetener.

The project fell apart in a matter of months, and residents learned that they had been misled about the company’s track record in China — and that they were now expected to make the bond payments.

But municipal bond market participants say they were shocked, too, by how quickly the city of about 14,000 would walk away from a solemn promise to guarantee the debt payments through 2025, the life of the bonds.

Cities like Moberly that guarantee debts for entities that borrow for projects like parking garages and hockey arenas often “don’t understand that they are responsible for making these payments,” said Matt Fabian, managing director of Municipal Market Advisors, a research and consulting firm. However, he said, “It’s as if your kid runs up a $400 cellphone bill. You can’t get out of paying it by saying you didn’t authorize that.”

Moberly, where the biggest employer is a state prison, had responded eagerly to a pitch by the Missouri Department of Economic Development to host the project, hoping for hundreds of jobs. The company, Mamtek International, was said to have a sucralose plant in Fujian Province producing a sweetener called SweetO, for use in drinks, candy and pharmaceuticals. Most of the authority debt, to go toward building and equipping the plant, was issued under a federal stimulus program allowing private investors to use tax-exempt municipal financing.

But when a bond payment came due last August, with the building still unfinished, Mamtek officials said they didn’t have the money. Construction stopped; the handful of employees in Moberly were laid off. Weeks of confusion followed, with subpoenas from the Securities and Exchange Commission, rumors of a split between the Chinese company and its United States subsidiary, reports that the plant would be liquidated and fears that the bond proceeds were gone forever.

………

Investigators also learned that state development officials had learned — before the bonds were sold — that Mamtek’s sucralose plant in China had never opened, because of environmental concerns. But that information was not relayed to Moberly, according to a report by the Missouri House Interim Committee on Government Oversight and Accountability.

Let’s be clear here:  the good citizens of Moberly were swindled by Mamtek, state development officials, and likely whoever issued the bonds.

There were serious material discrepancies.

This is the very definition of odious debt, and it should be repudiated without penalty.

It Would Be Nice if This Stuck, But It Won’t, the Sequel

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Is Yves Smith at Naked Capitalism noted some time ago, the failure to properly convey notes to trusts technically to the trusts that managed the mortgage backed securities means that there are tens, if not hundreds, of billions in tax liabilities owed:

The Internal Revenue Service has launched a review of the tax-exempt status of a widely-held form of mortgage-backed securities called REMICs.

The IRS confirmed to Reuters that the review comes in response to mounting evidence that banks violated tax requirements by mishandling the transfer of mortgages to REMICs, short for Real Estate Mortgage Conduits.

………

As of the end of 2010, investments in REMICs totaled more than $3 trillion, according to data supplied by the Securities Industry and Financial Markets Association.

In a brief statement in response to questions from Reuters, the agency said: “The IRS is aware of questions in the market regarding REMICs and proper ownership of the underlying mortgages as set out in federal tax law, and is actively reviewing certain aspects of this issue.”

………

The review, however, is a sign that the widespread bank misdeeds in home foreclosure cases are spilling over to threaten the interests of investors in mortgage-backed securities. The banks originated the mortgages and packaged them into securities.

………

For investors, one of the big attractions of REMICs has been that they aren’t “double-taxed.” While individual investors pay taxes on income they receive from REMICs, the securities themselves are exempt from business income tax.

But if the IRS concludes that the REMIC investments failed to comply with strict requirements in the federal tax code, the REMIC would have to pay a 100 percent tax on the income from those investments.

That means that the IRS could confiscate the full amount. Tax law experts said the REMICs also could be subjected to additional penalties for failing to file tax returns on the income.

James Peaslee, a partner at law firm Cleary Gottlieb who is an expert on taxation of securitized investments, said that even if the IRS finds wrongdoing, it might be loath to act because of the wide financial damage the penalties would cause. He notes that the REMIC investors, who he called “innocent parties,” would have to pay rather than the banks that were responsible for any wrongdoing in transferring mortgage ownership.

But Adam Levitin, a Georgetown University Law School professor and expert on taxation, said that if the IRS fails to act, “it would be a backdoor bailout of the financial system.”

Well, we know nothing is going to happen, because Obama and Geithner have made it clear that the banksters never pay, the taxpayers do.

Of course they are going to go for the backdoor bailout, particularly because this would reflect back on the banks:

If the IRS did impose penalties, the REMICs could turn around and sue the banks for causing the problems and not living up to the terms of the agreements establishing each REMIC, thus transferring the costs to the banks. If the IRS finds wrongdoing but fails to act, the IRS would forego “potentially enormous tax revenue that would be passed on to the federal government,” Levitin said. “Given the federal budget deficit that’s not something to sniff at,” he added.

Yeah, let’s run the numbers.  $3 trillion, let’s assume 5 years of 5% returns, and no compounding.

Well, with the 100% tax rate, regulatory forbearance will cost the taxpayers $750 billion for the taxpayer before even considering penalties and interest.

The scary thing is that by the standards of the bankster bailouts, this is just pocket change.

The USA Is Going to Invade Norway

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The Chairman of the JCS has said that if the automatic budget cuts kick in for the pentagon,  we will see more war:

The nation’s top military officer warned Wednesday that automatic defense cuts agreed to in last year’s bipartisan debt limit deal could lead to more war.

At a Senate Appropriations defense subcommittee hearing, Army Gen. Martin Dempsey, the chairman of the Joint Chiefs of Staff, said the Pentagon has gone along with recent targeted cuts to limited targeted cuts, but argued that the the sweeping across-the-board cuts in the so-called sequestration would weaken the country’s ability to deter adversaries and therefore lead to more war.

“Sequestration is absolutely certain to upend this balance. It would lead to further end-strength reductions, the potential cancellation of major weapons systems and the disruption of global operations,” Dempsey said. “We can’t yet say precisely how bad the damage would be, but it is clear that sequestration would risk hollowing out our force and reducing its military options available to the nation. We would go from being unquestionably powerful everywhere to being less visible globally and presenting less of an overmatch to our adversaries, and that would translate into a different deterrent calculus, and potentially, therefore, increase the likelihood of conflict.”

Who the hell are we going to war with?

We have troops and/or mercenaries in:

  • Afghanistan.
  • Iraq.
  • Iran (if it’s Thursday, but it’s a secret)
  • Bosnia
  • Kosovo
  • Germany
  • The UK
  • Poland
  • Korea
  • Japan
  • Kazakhstan
  • Pakistan
  • Belgium
  • Italy
  • Panama
  • Kuwait
  • Saudi Arabia
  • Bahrain
  • San Diego
  • etc.

Seriously, there isn’t anyone left for us to invade who has any oil but the Norwegians.

Finally

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Harry Reid has explicitly stated that Republicans are sabotaging the economy for political gain:

Senate Majority Leader Harry Reid (D-Nev.) on Tuesday accused House Majority Leader Eric Cantor (R-Va.) of deliberately trying to sabotage the U.S. economy.

Republicans immediately fired back, with Speaker John Boehner’s (R-Ohio) spokesman using an eight-letter word to rebuke the Senate leader.

“That’s bull—-,” said Boehner spokesman Michael Steel. “House Republicans are united in our desire to get a sensible, reform-minded transportation bill done, including job-creating energy initiatives like Keystone.”

Reid has grown frustrated by House Republicans’ reluctance to pass a multiyear transportation authorization bill, which Democrats say would create hundreds of thousands of jobs.

House Republicans have threatened to pull out of conference talks with Senate negotiators, according to one media report, which could scuttle any prospects for a deal. A senior House GOP aide, however, disputed the report.

They should have been saying this for at least two years.