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Skeptical Debunker

Time for Democrats to take a risk - CNN.com - 0 views

  • Reconciliation was created through the Budget Reform Act of 1974 in an effort to streamline the budget process, strengthen the ability of Congress to make tough decisions regarding deficits, and to make legislative decision-making more efficient. Congress quickly expanded on the types of measures that could be considered under reconciliation until 1985 and 1986, when the Senate passed rules proposed by Sen. Robert Byrd that limited what could or could not be included when using this process. Before moving forward, Democrats must consider two questions. The first is whether using reconciliation to pass health care is legitimate or an abuse of the process. Republicans have charged that this would be akin to forcing the program through the chamber rather than passing the bill through negotiation and compromise. On this question, the answer is easy. Reconciliation has been as much a part of the Senate in the past three decades as the filibuster. According to an article that was published in The New Republic, Congress passed 22 reconciliation bills between 1980 and 2008. Many important policy changes were enacted through this process, including the Children's Health Insurance Program, COBRA (which allows people who switch jobs to keep their health care), student aid reform, expansions in Medicaid and several major tax cuts. NPR's Julie Rovner reported that most of the health care reforms enacted in the past two decades have gone through reconciliation. President Ronald Reagan was one of the first presidents to make aggressive use of reconciliation when he pushed through his economic program in 1981. Senate Majority Leader Howard Baker said then that speed had been essential because "Every day that this is delayed makes it more difficult to pass. This is an extraordinary proposal, and these are extraordinary times." Presidents Jimmy Carter, George H.W. Bush, Bill Clinton and George W. Bush all used reconciliation as well. It is worth noting that these presidents, particularly George W. Bush, also made use of sweeping executive power to circumvent Congress altogether. The second question is more difficult and it involves perceptions. If the Democratic leadership wants to use this tactic, they have to convince enough members of their own party that this won't scare off independent voters. This argument was harder to make in 2009 than in 2010. But after a year of dealing with paralysis in the Senate and highly effective Republican obstruction, more Democrats are coming on board. The leadership must be proactive in responding to the criticism about reconciliation. They will have to explain that reconciliation is a legitimate process by pointing to the history. They will also have to connect the dots for voters frustrated with the ineffective government by explaining that the constant use of the filibuster has turned the Senate into a supermajority institution where both parties have found it extraordinarily difficult -- virtually impossible -- to pass major legislation.On this point, Republicans and Democrats actually agree. Indeed, as Democrats make this decision, Kentucky Republican Senator Jim Bunning is objecting to a unanimous consent order and single-handedly preventing the Senate from passing an important bill to assist unemployed workers.
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    After the Republicans and Democrats met at the White House summit on health care, it was clear that the parties are very far away from a bipartisan agreement. Indeed, few participants walked away with the sense that they were any closer to a deal. The White House did make clear that it was willing to move forward on health care without Republican support. The choice now becomes whether Democrats should use the budget reconciliation process to pass some parts of health care legislation. According to recent reports, Democrats are considering having the House pass the bill that was already approved in the Senate and then dealing with a package of additional reforms through reconciliation.
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    Get that? The current "god" of conservatism - Ronald Reagan - used reconciliation aggressively. So if it was good enough for him ...
Skeptical Debunker

Switzerland Keeping the Secrets of Alleged Tax Evaders - Yahoo! News - 0 views

  • Pick a dictator, almost any dictator - Cuba's Fulgencio Batista, the Philippines' Ferdinand Marcos, Haiti's Papa and Baby Doc Duvalier, the Shah of Iran, Central African Republic Emperor Jean-BÉdel Bokassa - and they all have this in common: they allegedly stashed their loot in secret, numbered accounts in Swiss banks, safely guarded by the so-called Gnomes of Zurich. This association - of bank secrecy and crime - has been fed into the public's imagination by dozens of books and movies. It's a reputation that rankles the Swiss, who have a more benevolent view of their commitment to privacy - one that happens to extend to tax privacy. Don't ask, because we won't tell. But the dramatic federal investigation of Switzerland's UBS has blown the lid off bank secrecy - and revealed how Swiss banks abet tax evasion on a far more widespread, if more banal, level. Over the past two decades, these secret banking services have been peddled progressively downmarket - first to the lesser-known fabulously wealthy, then to just the wealthy; more recently, private bankers have been tripping over themselves soliciting business from doctors, lawyers and other folks who are what the biz generally calls "high net worth" individuals. "The IRS has been concerned for decades that a combination of a global economy, the Internet, offshore banking, was really going to take offshore tax evasion from the old so-called 'gentlemen's sport' to tax evasion for the masses," says Mark Matthews, a former deputy IRS commissioner and now a tax attorney with Morgan, Lewis & Bockius LLP.
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    The federal investigation into UBS, which led to a $780 million fine and an agreement to turn over the names of more than 4,450 suspected tax cheats, is now in tatters after Swiss courts ruled against the executive-branch deal. To get around it, a special law has been proposed to accomplish the handoff, but that may not get anywhere in the legislature either. One outcome is already known: tax evasion had become a key service of the Swiss economy, not some isolated event. "They have been outed completely because a very large chunk of their business has been shown to include people cheating on taxes," says Jack Blum, a tax-haven expert. Being "reasonably conservative," he estimates 30% of Swiss banking is related to tax evasion, a figure that jibes with recently released bank data. These revelations come as the financial meltdown has punched a huge hole in projected revenues for governments, which are suddenly a whole lot less tolerant of tax cheats. That's particularly true in Germany, whose wealthy account for a significant portion (at least 10%) of the $1.8 trillion in Swiss banking assets. That translates into hundreds of millions in lost revenue and is the reason the German Finance Minister recently thundered, "There's no future for bank secrecy. It's finished. Its time has run out." The Swiss are not going to be so easily convinced. The Swiss government has already warned that it will not cooperate with German authorities if they go ahead with plans to purchase purloined data about Germans with Swiss bank accounts.
thinkahol *

Republicans Aim Info-War at Obama - 0 views

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    Finally, Congress appears ready to hold some high-profile hearings - except they won't be about the most important scandals of the past decade, like how the United States was misled into the Iraq invasion, how the Afghan War was bungled, how torture became a U.S. practice, or how bank deregulation and Wall Street greed nearly destroyed the economy.
thinkahol *

2011: Calling Time on Capitalism | CommonDreams.org - 0 views

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    Recent decades have seen a massive redistribution of wealth, imposing the cost of successive crises on the poorest. Enough!
Sarah Eeee

Income Inequality and the 'Superstar Effect' - NYTimes.com - 0 views

  • Yet the increasingly outsize rewards accruing to the nation’s elite clutch of superstars threaten to gum up this incentive mechanism. If only a very lucky few can aspire to a big reward, most workers are likely to conclude that it is not worth the effort to try.
  • It is true that the nation grew quite fast as inequality soared over the last three decades. Since 1980, the country’s gross domestic product per person has increased about 69 percent, even as the share of income accruing to the richest 1 percent of the population jumped to 36 percent from 22 percent. But the economy grew even faster — 83 percent per capita — from 1951 to 1980, when inequality declined when measured as the share of national income going to the very top of the population.
  • The cost for this tonic seems to be a drastic decline in Americans’ economic mobility. Since 1980, the weekly wage of the average worker on the factory floor has increased little more than 3 percent, after inflation. The United States is the rich country with the most skewed income distribution. According to the Organization for Economic Cooperation and Development, the average earnings of the richest 10 percent of Americans are 16 times those for the 10 percent at the bottom of the pile. That compares with a multiple of 8 in Britain and 5 in Sweden.
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  • Not coincidentally, Americans are less economically mobile than people in other developed countries. There is a 42 percent chance that the son of an American man in the bottom fifth of the income distribution will be stuck in the same economic slot. The equivalent odds for a British man are 30 percent, and 25 percent for a Swede.
  • Just as technology gave pop stars a bigger fan base that could buy their CDs, download their singles and snap up their concert tickets, the combination of information technology and deregulation gave bankers an unprecedented opportunity to reap huge rewards. Investors piled into the top-rated funds that generated the highest returns. Rewards flowed in abundance to the most “productive” financiers, those that took the bigger risks and generated the biggest profits. Finance wasn’t always so richly paid. Financiers had a great time in the early decades of the 20th century: from 1909 to the mid-1930s, they typically made about 50 percent to 60 percent more than workers in other industries. But the stock market collapse of 1929 and the Great Depression changed all that. In 1934, corporate profits in the financial sector shrank to $236 million, one-eighth what they were five years earlier. Wages followed. From 1950 through about 1980, bankers and insurers made only 10 percent more than workers outside of finance, on average.
  • Then, in the 1980s, the Reagan administration unleashed a surge of deregulation. By 1999, the Glass-Steagall Act lay repealed. Banks could commingle with insurance companies at will. Ceilings on interest rates vanished. Banks could open branches anywhere. Unsurprisingly, the most highly educated returned to banking and finance. By 2005, the share of workers in the finance industry with a college education exceeded that of other industries by nearly 20 percentage points. By 2006, pay in the financial sector was again 70 percent higher than wages elsewhere in the private sector. A third of the 2009 Princeton graduates who got jobs after graduation went into finance; 6.3 percent took jobs in government.
  • Then the financial industry blew up, taking out a good chunk of the world economy. Finance will not be tamed by tweaking the way bankers are paid. But bankers’ pay could be structured to discourage wanton risk taking
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    (Part 2 of 2 - see first part below) What impact do the incredible salaries of superstars have on the rest of us? What has changed, technologically and socially, to precipitate these inequities? This article also offers a brief look at the relationship between income inequality and economic growth, comparing the US throughout its history and the US vis a vis several European countries.
thinkahol *

Obama Budget Seeks Deep Cuts in Domestic Spending - 0 views

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    Washington - President Obama, who is proposing his third annual budget on Monday, will say that it can reduce projected deficits by $1.1 trillion over the next decade, enough to stabilize the nation's fiscal health and buy time to address its longer-term problems, according to a senior administration official.
thinkahol *

What Egypt Can Teach America - NYTimes.com - 0 views

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    The truth is that the United States has been behind the curve not only in Tunisia and Egypt for the last few weeks, but in the entire Middle East for decades. We supported corrupt autocrats as long as they kept oil flowing and weren't too aggressive toward Israel. Even in the last month, we sometimes seemed as out of touch with the region's youth as a Ben Ali or a Mubarak. Recognizing that crafting foreign policy is 1,000 times harder than it looks, let me suggest four lessons to draw from our mistakes:
thinkahol *

Ronald Reagan's 30-Year Time Bombs - 0 views

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    The time element of "30 years" keeps slipping into American official reports and news stories about the origins of crises - the latest in "The Financial Crisis Inquiry Report" - but rarely is the relevance of the three-decade span explained, and there is a reason.
thinkahol *

Gaddafi loyalists launch attacks against civilians as conflict in Libya escalates - 0 views

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    SANAA, YEMEN - Libyan warplanes and helicopters fired from the air and loyalist militias fatally shot protesters in the streets as the government of Moammar Gaddafi fought back viciously Monday against demonstrations that appear to be fast eroding the autocrat's four-decade-long hold on power.
thinkahol *

It's Official: Tunisia Now Freer than the U.S. | Informed Comment - 0 views

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    An Arab country with neither secret police nor censorship is unprecedented in recent decades. Tunisia is inspiring similar demands in Egypt and Jordan. When skeptics wonder if the Revolutions of 2011 would really change anything essential in the region, they would be wise to keep an eye on these two developments in Tunisia, which, if consolidated, would represent an epochal transformation of culture and politics. Arguably, Tunisians are now freer than Americans. The US government thinks our private emails are actually public. The FBI and NSA routinely read our email and they and other branches of the US government issue security letters in the place of warrants allowing them to tap phones and monitor whom we call, and even to call up our library records and conduct searches of our homes without telling us about it. Millions of telephone records were turned over to George W. Bush by our weaselly telecom companies. Courts allow government agents to sneak onto our property and put GPS tracking devices under our automobiles without so much as a warrant or even probable cause. Mr. Obama thinks this way of proceeding is a dandy idea.
thinkahol *

Fast Track to Inequality - NYTimes.com - 0 views

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    The clearest explanation yet of the forces that converged over the past three decades or so to undermine the economic well-being of ordinary Americans is contained in the new book, "Winner-Take-All Politics: How Washington Made the Rich Richer - and Turned Its Back on the Middle Class." The authors, political scientists Jacob Hacker of Yale and Paul Pierson of the University of California, Berkeley, argue persuasively that the economic struggles of the middle and working classes in the U.S. since the late-1970s were not primarily the result of globalization and technological changes but rather a long series of policy changes in government that overwhelmingly favored the very rich. Those changes were the result of increasingly sophisticated, well-financed and well-organized efforts by the corporate and financial sectors to tilt government policies in their favor, and thus in favor of the very wealthy. From tax laws to deregulation to corporate governance to safety net issues, government action was deliberately shaped to allow those who were already very wealthy to amass an ever increasing share of the nation's economic benefits. "Over the last generation," the authors write, "more and more of the rewards of growth have gone to the rich and superrich. The rest of America, from the poor through the upper middle class, has fallen further and further behind."
thinkahol *

Evil Corporate Tax Holiday Gains Bipartisan Support | Rolling Stone Politics | Taibblog... - 0 views

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    The madness that is the proposed tax repatriation holiday is continuing and gathering steam. More and more members of congress are coming out of the woodwork, scratching their chins in contemplative consideration as it were, pretending that they've just realized what a great day a corporate tax holiday would be - not that they've taken gazillions of dollars from the firms lobbying for it or anything. The latest convert seems to be Nevada Democrat Shelley Berkley. Berkley's plan is to offer a pseudo-holiday - not the full-fledged happy-ending massage the companies wanted (i.e. a reduction from 35 percent+ to 5.25 percent) but a mere ten-point shave: Representative Shelley Berkley, a Nevada Democrat, is the latest lawmaker to consider legislation allowing multinational companies to send offshore profits to the U.S. at a reduced tax rate. Her proposal, which was confirmed yesterday by Berkley's communications director, David Cherry, would allow companies to return profits to the U.S. at a 25 percent tax rate, 10 percentage points below the maximum statutory rate. Most companies publicly supporting a holiday, such as Duke Energy Corp., have spoken favorably of the 5.25 percent rate that is being offered by Representative Kevin Brady, a Texas Republican. One thing that people must understand about this tax repatriation business is that it's a wholly bipartisan affair. It's not solely the work of evil Republicans. This is a scheme that requires heavies in both parties to help ram the knotty, hard-to-sell legislation through. On the Democratic side, unsurprisingly, the main actor is going to be Chuck Schumer. John Kerry is also involved with this nastiness. Barbara Boxer led the 2004 effort and the failed 2009 campaign to get a holiday, and is rumored to be lurking somewhere in this business. Note that Cisco, a California corporate heavyweight and one of the companies lobbying most ravenously for this tax holiday, has been a consistent lifelong contributor
thinkahol *

Pew Opposes House Bill to Open Wyoming-Size Landscape to Development - Pew Environment ... - 0 views

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    "This legislation would undo decades of public land protections by opening up an area the size of Wyoming to new industrial activity. It would allow some of the country's most pristine and spectacular landscapes to be exploited, including the vast majority of undisturbed national forests. "Mining, logging and drilling are already permitted in more than half of our national forests and other public lands. This bill would open the door to such activity on most of the rest. As a result, valuable fish and wildlife could be lost and clean drinking water for millions of Americans compromised. "This legislation would undo the nation's tradition of managing these lands with a balanced approach. It would also disregard years of work by lawmakers from both parties to craft proposals with diverse stakeholders to safeguard these undeveloped areas. In addition, the bill would eliminate interim protections on wild places that people use and enjoy. We urge Members of Congress to oppose H.R. 1581."
thinkahol *

The Deficit Chart Republicans Hate | Mother Jones - 0 views

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    I get a little bored repeating over and over that our short-term deficit is almost entirely not Barack Obama's fault. It's mostly the fault of the Bush tax cuts, the Bush wars, and the financial collapse that happened during the Bush presidency. At this point, though, this is more in the nature of a religious debate than a factual one, and conservatives are going to keep repeating the same tired disinformation about the deficit regardless of any evidence one way or the other. Still, just on the off chance that a few people are still persuadable on this, it's nice of CBPP to update its chart showing the source of the deficit over the next decade. (Farther out than that, Medicare is largely responsible for most deficit projections.) As you can see, by 2013 or so, virtually the entire deficit is due to Bush-era policies/disasters. So cut this out and post it on your refrigerator.
thinkahol *

GRITtv » Blog Archive » Michelle Alexander: End The Drug War: Face the New Ji... - 0 views

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    The NAACP has just passed a historic resolution demanding an end to the War on Drugs.  The resolution comes as young Black male unemployment hovers near 50 percent and the wealth gap's become a veritable gulf. So why is the forty-year-old "War on Drugs" public enemy number one for the nation's oldest civil rights organization? Well here's why:  it's not extraneous - it's central: the war on drugs is the engine of 21st century discrimination - an engine that has brought Jim Crow into the age of Barack Obama.     Author Michelle Alexander lays out the statistics -- and the stories --  of 21st Century Jim Crow in her ought-to-blow-your-socks off book: "The New Jim Crow: Mass Incarceration in an Age of Colorblindness." I had a chance to sit down with Alexander earlier this summer. We'll be posting the full interview in two parts.     "We have managed decades after the civil rights movement to create something like a caste system in the United States," says Alexander in part one here  "In major urban areas, the majority of African American men are either behind bars, under correctional control or saddled with criminal record and once branded as criminal or a felon, they're trapped for life in 2nd class status."     It's not just about people having a hard time getting ahead and climbing the ladder of success. It's about a rigged system. Sound familiar?  Like the Pew Research Center report on household wealth and the Great Recession -- the NAACP resolution story was a one-day news-blip - despite the fact that it pierces the by-your-bootstraps myth that is at the heart of - you pick it - the deficit, the stimulus, the tax code - every contemporary US economic debate.     White America just maybe ought to pay attention. With more and more Americans falling out of jobs and into debt, criminal records are a whole lot easier to come by than life-sustaining employment.  Contrary to the conventional media version, the "Drug War" story is not a people with problems
thinkahol *

Lowering America's War Ceiling? | Truthout - 0 views

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    On July 25th, for instance, while John Boehner raced around the Capitol desperately pressing Republican House members for votes on a debt-ceiling bill that Harry Reid was calling dead-on-arrival in the Senate, America's new ambassador to Afghanistan, Ryan Crocker, took his oath of office in distant Kabul.  According to the New York Times, he then gave a short speech "warning" that "Western powers needed to 'proceed carefully'" and emphasized that when it came to the war, there would "be no rush for the exits." If, in Washington, people were rushing for those exits, no chance of that in Kabul almost a decade into America's second Afghan War.  There, the air strikes, night raids, assassinations, roadside bombs, and soldier and civilian deaths, we are assured, will continue to 2014 and beyond.  In a war in which every gallon of gas used by a fuel-guzzling US military costs $400 to $800 to import, time is no object and -- despite the panic in Washington over debt payments -- neither evidently is cost.
thinkahol *

Keeping a Curious Bush Secret | Consortiumnews - 0 views

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    Exclusive: One of the strange mysteries from the Reagan-Bush era is where did George H.W. Bush go on one Sunday in October 1980 when some witnesses placed him meeting with Iranians in Paris. More than three decades later, Bush's supposed alibi remains a state secret, Robert Parry reports.
thinkahol *

Dailymotion - GasLand 1 - une vidéo Life & Style - 0 views

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    In May 2008, Josh Fox received a letter from a natural gas company offering to lease his family's land in Milanville, Pennsylvania for $100,000 to drill for gas.[1]Following the lease offer, he looked for information about natural gas drilling in the Marcellus Shale under large parts of Pennsylvania, New York, Ohio and West Virginia. He visited Dimock, Pennsylvania where natural gas drilling was already taking place. In Dimock, he met families able to light their tap water on fire as well as suffering from numerous health issues and fearing their well water had been contaminated.Fox then set out to see how communities are being affected in the west where a natural gas drilling boom has been underway for the last decade. He spent time with citizens in their homes and on their land as they relayed their stories of natural gas drilling in Colorado, Wyoming, Utah and Texas, among others. He spoke with residents who have experienced a variety of chronic health problems as well as contamination of their air, water wells or surface water. In some instances, the residents are reporting that they obtained a court injunction or settlement monies from gas companies to replace the affected water supplies with potable water or water purification kits.[2]Throughout the documentary, Fox reached out to scientists, politicians and gas industry executives and ultimately found himself in the halls of Congress as a subcommittee was discussing the Fracturing Responsibility and Awareness of Chemicals Act, "a bill to amend the Safe Drinking Water Act to repeal a certain exemption for hydraulic fracturing."[3] Hydraulic fracturing was exempted from the Safe Drinking Water Act in the Energy Policy Act of 2005.[4]Making appearances in the film are Dr. Theo Colborn, founder of the Endocrine Disruption Exchange (TEDX); John Hanger, Secretary of the Pennsylvania Department of Environmental Protection (DEP); Dr. Al Armendariz, Environmental Protection Agency (EPA) Administrator for Region 6; W
thinkahol *

The death of trickledown: will the great con of the last 30 years survive the riots? | ... - 0 views

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    Trickledown was a lovely theory . The fact it didn't work was never a deterrent to our politicians who have allowed themselves to be guided by it for decades. To be fair, its failure was always disguised behind a huge bubble of debt (both public and private) which is now deflating to reveal the tangled mess of inequality , social dysfunction and economic stagnation hidden behind. With vast sums of money being sucked relentlessly upwards it is not surprising that we have a squeezed middle and that others talk of growth without gain for large sections of the population. It also appears that the winners in our economic casino are now shirking the one responsibility that trickledown demanded of them - to invest. Some even talk of a strike by Europe's investor class . Meanwhile conspicuous consumption continues unabated so we at least have some clues as to where the money is going.
Chuck Bartok

Should We Retire the One Dollar Bill? - 0 views

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    Rep. David Schweikert (Ariz.) and two other House Republicans - including supercommittee co-chairman Jeb Hensarling (Texas) - introduced legislation last week aimed at retiring the paper dollar.... According to the proponents the retirement of the US One Dollar Bill could save save billions of dollars over the next few decades by transitioning to a one dollar coin in four years, or as soon as $600 million worth of dollar coins are in circulation. Rep. Schweikert said, "Metal coins would last longer and therefore save money. But two Massachusetts Lawmakers, Scott Brown and John Kerry oppose the suggestion on ground it costs too much too produce the coins.... But it seem to me they would last longer...isn't that what smart business buy, products that are Value Purchased not cost purchased. It is also interesting also The Dollar Coin Alliance, which favors the House bill, said the two Massachusetts senators have a specific reason for wanting to protect the dollar bill, arguing that the Senate bill is aimed at protecting Massachusetts-based Crane & Co., the sole-source supplier of paper used to produce dollar bills. So what else is NEW! More cronyism? A poll conducted this year for the Dollar Coin Alliance showed 65 percent of Americans favored the move to a coin, and that more supported it once they realized the savings associated with the switch. And other countries who have done same have benefited overall in the Cost of Producing currency. "Other countries that have replaced a low-denomination note with a coin, such as Canada and the United Kingdom, stopped producing the note," the GAO said in March. "Officials from both countries told GAO that this step was essential to the success of their transition and that, with no alternative to the note, public resistance dissipated within a few years."
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    Always appreciate comments on the blog posts
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