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Gov. Arnold Schwarzenegger (R-CA) yesterday signed into law a measure requiring the state's giant public pensions systems to rid themselves of investments in companies that help the Sudanese government.


STATE WATCH

CALIFORNIA: Despite supporting legislation to fight global warming, Gov. Arnold Schwarzenegger (R) and many California lawmakers still use gas-guzzling vehicles.

COLORADO: After pushing for a tough state ID law, state Sen. Andy McElhany (R) is now outraged that his daughter recently had trouble obtaining her learner's permit because she did not have proper documentation.

ENVIRONMENT: Yellowstone National Park gets into recycling.

EDUCATION: Federal government set to announce "it will supply hazard warning radios to all 97,000 public schools in the United States."


BLOG WATCH

THINK PROGRESS: Rice falsely claims Bush's pre-9/11 anti-terror efforts were "at least as aggressive" as Clinton's.

RISING HEGEMON: For U.S. readers, Newsweek scrubs cover story on "Losing Afghanistan."

TPM MUCKRAKER: At detainee hearing, witness puts senator on the stand.

MYDD: With Senate bill stalled, net neutrality fight goes local, first to Pennsylvania


DAILY GRILL

"Look, it’s despicable and the United Nations should not be used as that kind of forum."
-- Sen. John McCain (R-AZ), 9/24/06, reacting to Venezuelan President Hugo Chavez's reference to President Bush as the devil

VERSUS

"I think he was joking. I’m -- from what I was told, he was laughing."
-- McCain, 9/24/06, reacting to Rev. Jerry Falwell's reference to Sen. Hillary Clinton (D-NY) as Lucifer


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September 26, 2006
Preying On Our Troops
Go Beyond The Headlines
Coffee and Donuts Not Included
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Preying On Our Troops

Predatory lending is seriously harming our military. A Defense Department report issued last month found that as many as one in five U.S. service members “are being preyed on by loan centers set up near military bases,” which can charge annual interest rates of 400 percent or more. Increasingly, soldiers have debt levels so high they are barred from serving overseas; others suffer from “bankruptcies, divorces and ruined careers” due to the strain and stress of debt. The Pentagon has joined consumer, military, and veterans groups in backing a bipartisan amendment from Sens. Jim Talent (R-MO) and Bill Nelson (D-FL) that places a cap of 36 percent on high interest rates for short-term payday loans to military members. But two conservatives -- Reps. Geoff Davis (R-KY) and Steve Buyer (R-IN) -- have been working to block Congress from making this bill law. Take a moment to call their offices -- use the toll-free congressional switchboard: (866) 808-0065 -- and tell them to support the Talent/Nelson amendment.

THE PAYDAY LENDING TRAP: Payday lenders offer high-cost, short-term loans "marketed as cash advances on the borrower’s next paycheck to cover an emergency need." Lenders charge roughly $15 to $25 per $100 loan for two weeks, and "most loans are extended for several weeks" because the borrower is unable to pay back the original loan amount. The average loan "is $350 and has an annual interest rate of 390 percent to 780 percent," meaning the average borrower "pays back $834 for a $339 loan." Between 13 percent and 19 percent of U.S. servicemembers -- roughly 175,000 people -- took out such loans last year. "Because of the high-risk terms, borrowers often get caught in a vicious cycle of chronic debt. When they cannot afford to pay back the fees plus the principal at the end of the two week period, borrowers are forced to pay another high fee to roll over the loan for an additional two weeks or take out another loan to pay off the first loan, thereby getting trapped in a costly and often devastating cycle of 'back-to-back' loans."

PREDATORY LENDERS WEAKENING OUR MILITARY: Payday lenders systematically target military families, who are "an ideal demographic for payday lenders because they usually have a steady government paycheck with little to spare at an average of $1,200 a month for new recruits." A 2005 report found that in 19 of 20 states studied, payday lenders were "located in counties and ZIP codes adjacent to military bases in significantly greater numbers and densities than other areas." The Pentagon states that payday lending "undermines military readiness, harms the morale of troops and their families, and adds to the cost of fielding an all volunteer fighting force," problems already exacerbated by the war in Iraq. Debt can distract service members from their duties or cause them to become security risks open to compromise. The Navy and Marine Corps denied security clearance to about 2,000 service members nationwide last year because of concerns that their indebtedness could compromise key operations. The Pentagon report outlines current efforts to combat abusive practices through education and credit counseling for service members, but also acknowledges that education is only part of the solution. The report states unequivocally that our men and women in uniform can only be adequately protected by strong legislative action.

LENDING AND BANKING INDUSTRIES CHOOSE PROFITS OVER U.S. TROOPS: Lending and banking industry lobbyists have moved aggressively to try to block a national cap on payday loans. The lending industry's main lobbying group, the Community Financial Services Association, called the Defense Department report "nothing but a re-hash of flawed data, biased analysis and anti-business philosophy pushed by fringe activists." One member of Congress, Rep. Geoff Davis (R-KY), has taken up their cause. Davis recently proposed language, praised by the payday lending industry, that would gut the Talent/Nelson amendment and set no real limits on predatory lenders. One of Davis’s aides admitted that he consulted on the legislation with “CNG Financial of Mason, Ohio, one of his top campaign donors and owner of national payday lender Check ‘n Go." After facing intense local criticism for aiding and abetting predatory lenders, Davis yesterday announced that he no longer opposes the 36 percent cap on payday loans. But few have seen Davis's "compromise" language, which is being negotiated behind closed doors, and the Center for Responsible Lending says it will "remain worried about loopholes until we see the actual language and get a final vote."

THE NATIONWIDE DEBT CRISIS: U.S. service members are not the only Americans suffering from predatory lending abuses. As American Progress analyst Almas Sayeed has written, the payday industry "has exploded in the last decade, reporting $10 billion in sales in 2000 to $40 billion, including $6 billion in interest rates and fees, in 2003." The industry's growth has paralleled a growing debt crisis in America, in which health care, education, and housing costs have soared while real wages have fallen. The nation's working poor have been hit the hardest, having to "pay much more than moderate- and high-income households for life's essentials." Rising costs, a proliferation of credit cards, and an increasing reliance on payday loans have left people with few savings and mountains of debt. According to a poll sponsored by the Center for American Progress, the public is "more worried about falling into debt, particularly from medical bills, than about being the victim of a terrorist attack or natural disaster." The average savings rate in 2005 was negative 0.5 percent, "the lowest since the Great Depression."

Under the Radar

INTELLIGENCE -- BIPARTISAN MEMBERS OF SENATE INTEL COMMITTEE CALL FOR DECLASSIFICATION OF NIE: Yesterday, Sen. John Rockefeller (D-WV), the ranking member of the Intelligence Committee, called for the declassification of the recently-disclosed National Intelligence Estimate (NIE), which concluded "the Iraq war has fueled the growth of Islamic extremism and terror groups." Declassification is not without precedent. In July 2004, the CIA declassified portions of the October 2002 NIE that laid out the case for Iraq's purported weapons of destruction program. In a letter addressed to the Director of National Intelligence John Negroponte, Rockefeller asked for declassification -- "to the fullest extent possible" -- of the key judgments of the April 2006 NIE. Sen. Pat Roberts (R-KS), the Chairman of the Intelligence Committee, seconded the call. “I think the administration should declassify this document so the American people can see the material for themselves and come to their own conclusions,” he said in a statement. The Wall Street Journal's conservative editorial board offers the same advice: "So here's our suggestion for President Bush: Declassify the entire NIE." The report's conclusions, the consensus findings of 16 U.S. intelligence agencies, reach the same judgment made by terrorism experts across the political spectrum, according to a Center for American Progress/Foreign Policy Magazine survey. Asked whether the Iraq war was having a negative impact on national security, 87 percent of the experts agreed.

HEALTH CARE--CITIZEN'S WORKING GROUP CALLS FOR UNIVERSAL COVERAGE:
A report released by the Citizens Healthcare Working Group on Monday finds "overwhelming support for a [health care] plan that covers all Americans." The report is based on a series of 84 meetings, organized in conjunction with community organizations across the country, where the committee heard from over 6,500 people. The committee also received 14,000 responses to an Internet poll solicited for the study. Citing spiraling costs, decreasing efficiency, and rising numbers of uninsured, the Working Group asserts that "Americans should have a health care system in which everyone participates, regardless of their financial resources or health status, with...access to appropriate high-quality care without endangering individual or family financial security." The group demands this policy be "established immediately and implemented by 2012." The group also calls for financial protection against high health care costs, fostering of integrated community health care networks, and a "non-partisan public/private group, staffed by experts, to define America's core benefits and services and update them on an ongoing basis." The Working Group was established as a part of the 2003 Prescription Drug Bill. Its membership includes Health and Human Services Secretary Mike Leavitt and 14 other representatives from consumer and disabilities groups, business leaders, organized labor, and health care providers.

MEDIA -- PROGRESSIVE RADIO HOSTS MORE ACCEPTING OF DISSENTING VIEWS THAN CONSERVATIVE HOSTS
: Research 2000 recently conducted a survey testing whether progressive or conservative talk radio shows are more open to callers with dissenting points of view. The organization made 15 calls (with a point of view that was not compatible with the host) to six radio shows -- three progressive (Stephanie Miller, Randi Rhodes, Ed Schultz) and three conservative (Sean Hannity, Laura Ingraham, Rush Limbaugh). The survey found that all the progressive hosts were more willing to take calls from dissenters than were the conservative hosts. Progressive host Ed Schultz was the most accessible to dissenting callers. His screeners asked callers for their names and location only. Following Schultz, in order of accessibility, were Rhodes, Miller, Ingraham, Limbaugh, and Hannity. Not a single caller with a dissenting point of view was allowed on the air by Hannity. Eleven of the 15 were told by Hannity's screeners "either 'I will pass it on' or 'call our liberal hotline' and then disconnected." Only two dissenters managed to get on Limbaugh's show, but only after going through three screeners. Ingraham, Miller, and Rhodes showed "no significant differences" in getting on the air, but the wait time for Ingraham's show was the longest of the three -- 40 minutes to one hour and 15 minutes. t bill passed in the Congress of the United States, I hope you know that."



Think Fast

“In a new sign of mounting strain from the war in Iraq,” the Pentagon said that 3,800 U.S. soldiers will be staying in Iraq about six weeks beyond their one-year combat tours. Defense Secretary Donald Rumsfeld flew to the tiny nation of Montenegro “with hopes of tapping a new source of troops for Iraq and Afghanistan.”

6: The United States’ position on the World Economic Forum’s competitiveness rankings, a fall from first last year. “The U.S. lost its position as the world’s most competitive economy to Switzerland as budget and trade deficits prompted a slide.”

The Earth’s temperature “has climbed to levels not seen in thousands of years, warming that has begun to affect plants and animals,” the National Academy of Sciences reported. “This evidence implies that we are getting close to dangerous levels of human-made pollution,” NASA’s James Hansen said.

“Americans clearly want a system that guarantees health care for everyone,” concludes a new report by the Citizens Health Care Working Group. The group was created by Congress and is composed of 15 members, including Health and Human Services Secretary Mike Leavitt.

At yesterday’s Democratic Policy Committee hearing on Iraq planning, retired Maj. Gen. John Batiste, the former commander of the Army’s 1st Infantry Division in Iraq, said the administration’s “plan allowed the insurgency to take root and metastasize to where it is today.” He and retired Maj. Gen. Paul Eaton declared that Rumsfeld must go. “He knows everything, except ‘how to win,’” Batiste said. Click here to see highlights of the hearing.

Larry J. Sabato, “one of Virginia’s most-quoted political science professors and a classmate of Allen’s in the early 1970s,” yesterday confirmed that he heard Allen use a racial slur to refer to blacks, a charge the senator has denied.

The African Union will add 4,000 troops to its mission in Darfur, bringing the number of police and soldiers to 11,000. Sudan has refused to allow a U.N. peacekeeping force into the region. Approximately 200,000 people have died since violence flared in 2003.

Iranian foreign minister Manouchehr Mottaki expressed optimism yesterday that negotiations would resolve the dangerous impasse over his country’s nuclear program. “We do believe that the issue is once again on track now based on negotiations. All the parties should help and support.”

And finally: No rock, paper, scissors? A coin flip decided the primary race for Alaska House of Representatives yesterday. Deadlocked in a 767-767 tie, incumbent Rep. Carl Moses and challenger Bryce Edgmon watched nervously as a “gold-and-silver commemorative coin spun through the air” and “landed on a sea otter pelt - tails up - giving” Edgmon the spot on the ballot.


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