ECONOMY
More Hungry Mouths To Feed

Skyrocketing food prices have wreaked havoc around the world. Food shortages and starvation have led to riots in Bangladesh and Egypt, political upheaval in Haiti, military intervention in Asia, increased hunger across much of the developing world, and the worst food inflation that the United States has seen in seventeen years. At a news conference on Sunday, World Bank president Robert Zoellick explained to Bank and IMF officials, "We have to put our money where our mouth is now -- so that we can put food into hungry mouths." America is not immune from the crisis. Food banks, soup kitchens, and food pantries report an estimated 20 percent increase in visitors since April of last year. Over the past twelve months, the United States has seen the number of citizens enrolled in food stamp programs grow by 1.3 million, the highest ever. CNN reports, "At $1.32, the average price of a loaf of bread has increased 32 percent since January 2005. In the last year alone, the average price of carton of eggs has increased almost 50 percent." The federal government is expected to release new data on domestic food prices today, with notable increases expected. 

THE CAUSES: No single factor has caused the dramatic increase in prices. Irregular weather, dietary changes, high energy prices, and alternative fuels have redefined the global market for food. Drought in key grain-producing countries, such as Australia and China, has dramatically decreased global supply. Increased meat consumption in Asia has also boosted the need for grain, as the current supply must now feed livestock along with humans. It takes 8.3 grams of corn feed to produce a 1 gram of beef, or 3.1 grams for pork. High oil prices pushed by global demand, a low dollar, and tight supply have elevated transportation costs, raising the price tag on everything from tractor fuel to fossil fuel based fertilizers, to long-haul trucking and freight expenses. The recent surge in alternative fuel production, aided by new government fuel targets and subsidies in the United States and Europe, has also impacted markets. In addition to generating traditional food and feed, farmers have begun diverting grain and arable land toward first generation biofuels. Despite the contributions of traditional biofuels towards the rise in food prices, biofuels are not wholly responsible for the current volatile situation. With current wheat stockpiles in the United States at 60 year lows, there is no flexibility in today's infrastructure. And in the face of these cascading disturbances, there is little on which to fall back.

THE SOLUTIONS: International action is necessary. The United Nations, in partnership with the World Bank and IMF, has requested an emergency appeal of $500 million from its donor countries. The Bush administration has taken the first step in doing its part, pledging Monday to draw an estimated $200 million from a food reserve known as the Bill Emerson Humanitarian Trust. But more must be done. The United States must devote more resources to help increase productivity in developing countries, with the goal of reducing these states' dependence on food imports from the developed world. An overview of the import ratio for grains shows this glaring need: Eritrea, 88 percent; Sierra Leone, 85 percent; Niger, 81 percent; Liberia, 75 percent; Botswana, 72 percent; Haiti 67 percent; Bangladesh, 65 percent. America must act with others in the international community to increase output in developing nations so that these states can become self-sufficient. Working hand-in-hand, the western nations must cut subsidies and tariffs so that, once produced, developing countries can sell their goods both domestically and on the international market. International food aid programs must also be reformed so that money is given directly into the hands of growers, producers and local authorities, rather than Western shippers, suppliers, and corporations. Finally, the world must move to the next generation of biofuels on semi-arable land that are not overly dependent on corn and do not compete with food crops.    

THE ROLE OF CONGRESS: The $286 billion farm bill, which has already been passed by both the House and Senate, gives Congress a legislative opportunity to help solve the domestic and international food crisis. Providing more than just a safety net to America's agricultural system, the farm bill grants the critical funding to our nation's poverty, nutrition, land conservation, energy, and international trade programs. However, final compromise on this contentious measure has still not yet been reached, despite the current farm bill's expiration this Friday. Congress "has produced a bill that makes commendable progress in the areas of conservation, food stamps, nutrition and ag-based renewable energy -- in particular, support for the next generation of sustainably produced biofuels. Nonetheless, a glaring weakness remains in the current legislation," said Jake Caldwell, an agriculture, trade and energy expert at the Center for American Progress. That weakness is commodity subsidies. The current menu of commodity subsidies in the farm bill goes to just five crops and leaves 57 percent of American farmers out in the cold. These subsidies distort markets, impede expansion of social programs, and take funding away from the research and development of new sources of alternative energy. Their reform would mean more money for proposals that progressive members of Congress are so hotly fighting to ensure, which would feed Americans and help alleviate the hunger problem around the world. The farm bill, as it currently stands, represents a missed opportunity to remove oppressive subsidies that could have a dramatic impact on this crisis both at home and abroad.

Under the Radar

ADMINISTRATION -- PERINO CLAIMS POPE 'UNDERSTANDS' SUCCESS OF IRAQ SURGE: Yesterday, Pope Benedict XVI arrived in Washington, and today he will meet with President Bush, where they are expected to discuss Iraq. The pope has been a staunch critic of the war in Iraq in the past. In his 2007 Easter message, he said, "Nothing positive comes from Iraq, torn apart by continual slaughter as the civil population flees." Just last month, on Palm Sunday, the pope decried the continuing turmoil: "Enough with the bloodshed, enough with the violence, enough with the hatred in Iraq!" Yesterday, however, White House Press Secretary Dana Perino washed over the pope's criticism of Bush's war. She admitted that "there was a difference of opinion, back in 2003 and beyond" but declared that "now I think there is an understanding that, with the strategy that's working in Iraq right now, that the most important thing we can do is help solidify the situation." It is no surprise that Perino added, "I really don't think that the president is planning to spend a lot of time talking about the issues of Iraq with the pope." 

BUDGET -- SHORTCHANGING CHILDREN IN BUSH'S BUDGET: First Focus recently released its Children's Budget 2008, a "comprehensive guide to all federal spending on children, finding that total spending for children only makes up "10% of the entire non-defense budget." While all other non-defense spending increased by 8 percent over the last four years, "spending on children has declined by more than 6%." The Children's Budget 2008 also showed that spending on education for children dropped by 9.9 percent over the past five years with a 10.6 percent drop in funding for Head Start programs. Health care also has fared poorly under the Bush administration. In February, the National Association of Children's Hospitals reported that Bush's FY2009 budget cut "$700 million from discretionary health programs that children depend on," including Medicaid and the Emergency Medical Services for Children program. Bruce Lesley, president of First Focus, called Bush's FY2009 budget cuts on children a "tragedy" and noted that this is just "another year where the President has failed to make children a priority in his federal budget."

ECONOMY -- GRAHAM CLAIMS AMERICANS' ECONOMIC 'UNCERTAINTIES' STEM FROM FEAR OF TAX INCREASES: In an op-ed yesterday in The Greenville News (SC), Sen. Lindsey Graham (R-SC) argued that making President Bush's tax cuts permanent will solve the economic burdens that South Carolinians face on Tax Day. As evidence of the efficacy of tax cuts, Graham said they resulted in "more" federal tax revenue, adding that the "uneasiness taxpayers feel today about the economy is driven by concerns" that Bush's tax cuts will expire. However, many economists disagree with Graham's claim that tax cuts boost revenue. Treasury Secretary Henry M. Paulson has said that "as a general rule, I don't believe that tax cuts pay for themselves," while Federal Reserve chairman Ben Bernanke once noted that tax cuts only "partially offset the losses in revenues." But claiming that the fear of Bush's tax cuts expiring drives Americans' negative attitudes toward the economy ignores a number of key factors that are more indicative: the housing and credit crises, job losses, rising unemployment, a volatile stock market, high gas prices, flat wages, and rising health care costs -- not to mention the economic effects of the Iraq war.

Think Fast

A day of mourning on Virginia Tech's campus began at midnight Wednesday, "exactly one year after the worst mass shooting in modern U.S. history left 32 people and the gunman dead." Among the commemorative ceremonies taking place today, Virginia Gov. Tim Kaine (D) has "ordered state flags flown at half-staff" and "a moment of silence at noon." A candle lit on campus "at midnight will burn there for 24 hours."

At 2:45 PM ET today, President Bush will give a speech outlining "goals for limiting" greenhouse gas emissions, a first for a White House that has dragged its feet "in addressing the problem of climate change." Though Bush will "talk about a strategy for a way forward and principles for dealing with the problems," Press Secretary Dana Perino said, "This speech is not going to lay out a specific proposal."

Freedom's Watch has allegedly "coordinated its advertising" with the National Republican Congressional Committee (NRCC), which is illegal under federal election laws. The Democratic Congressional Campaign Committee plans to file a complaint with the Federal Election Commission today charging that a Freedom's Watch script for a television ad in Louisiana originated with the NRCC.

Yesterday, Justice Department Inspector General Glenn Fine told lawmakers that the FBI "might have committed as many as 6,400 intelligence violations in the course of its use of national security letters," which allow investigators to obtain people's personal information without first obtaining a warrant. A recent report by Fine found that "the FBI issued 49,425 national security letters in 2006 alone."

Sen. Joe Lieberman (I-CT) may give a keynote address at the Republican National Convention in September "on behalf of Sen. John McCain (R-AZ)" "If Sen. McCain, who I support so strongly, asked me to do it, if he thinks it will help him, I will," Lieberman told The Hill. Though McCain has yet to ask, "a Lieberman aide" says "it is a "'likely possibility' he will address the Republican audience in some form."

Sen. John McCain (R-AZ) "was less than forthcoming" about his "rogue-state rollback" policy yesterday saying that it involves only "efforts to modify the behavior of other nations" which does not include "declar[ing] war." But in 2000, McCain said he would "arm, train, equip, both from without and from within, forces that would eventually overthrow the governments and install free and democratically- elected governments."

"In my administration, there will be no more subsidies for special pleaders, no more corporate welfare," McCain said in a speech on the economy yesterday. Yet "much of what he detailed was a corporate special pleader's dream: a cut in the corporate income tax rate, from 35 percent to 25 percent, a proposal to allow businesses to write off the cost of new equipment and technology from their taxes...and a permanent tax credit for research and development."

"Dangling the popular highway funding bill as his hostage," Senate Minority Leader Mitch McConnell (R-KY) "struck a deal Tuesday night with Majority Leader Harry Reid (D-NV) to dislodge a handful of President Bush's stalled appellate court nominees." The plan will advance at least three outstanding appointments before Memorial Day.

"A company of Iraqi soldiers abandoned their positions on Tuesday night in Sadr City, defying American soldiers who implored them to hold the line against Shiite militias. The retreat left a crucial stretch of road on the front lines undefended for hours."

And finally: The Academy Awards planned to announce its 2009 Oscar nominees on Jan. 20. But it has moved the ceremony to Jan. 22, since the presidential inauguration will also be on Jan. 20. Andrew Malcolm of the Los Angeles Times writes, "It isn't enough that the country must endure about 24 months of political blather and rhetorical positioning to choose the next leader of the free world. ... But now the world must wait an extra 48 hours -- 48! -- to learn who's been nominated to receive an Oscar. The outrage."

Good News

"Governors from across the United States who bypassed the Bush administration by introducing laws to cut greenhouse emissions are slated to meet this week to broaden their fight against climate change."

State Watch

MASSACHUSETTS: "Thousands of Massachusetts public high school graduates arrive at college unprepared for even the most basic math and English classes."

OKLAHOMA: "[S]tories of displacement and abuse while in state custody are unusually common in Oklahoma."

ENVIRONMENT: New water-sharing plan in Southeast is "likely to harm threatened species."

Blog Watch

THINK PROGRESS: Secretary of State Condoleezza Rice: I'm "offended" by diplomats who don't want to serve in Iraq.

WONK ROOM: Iraq's ticking time bomb: the right of return for refugees.

MOJO BLOG: Conservative bias at the new Newseum?

INTEL DUMP: President Bush admits that he claimed things were better in Iraq in 2006 than they were in order to "boost morale" adds insult to injury.

Daily Grill

"I think the economy -- the media has been beating the drum for years and years and years that the economy stinks. And after a while, that begins to color people's attitudes."
-- Karl Rove, 2/11/08

VERSUS

"He [Rove] also acknowledged the nation's economic problems.'People made bad loans and bad business decisions. Because people got greedy,' Rove said."
-- Dayton Daily News, 4/16/08

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