George Soros at the 2003 World Economic Forum meeting in Davos, Switzerland. (Photo Credit: CC BY-SA/World Economic Forum/Flickr)

Billionaire Hungarian-American financier and philanthropist George Soros has stirred more than his fair share of controversy in the economic and political arenas. His recent statement regarding China’s government being “better functioning” than the United States government should give conservative commentators like Glenn Beck a great deal to discuss, writes Foreign Policy.

Soros says China must now take responsibility for the world

China has spent much of its time focusing on its own economic interests, rather than spreading itself too thin via some kaleidoscopic foreign policy, argues Soros. The shift of economic power from the United States to China has occurred along the way. Soros even compares the United States’ financial decline to that of the United Kingdom following World War II.

Now that the balance of economic power has swayed toward China, Soros says that China needs to now look outward. It has a responsibility to help maintain the world economic order, Soros believes. Loosening up on the reins of its currency would be one way to achieve that end.

Gridlock: A Congressional dysfunction

In The Globe and Mail, Soros argues that China has a “more vigorous economy” and a “better-functioning government” largely because Congress is so ineffective at making decisions and focusing upon key issues that would move the U.S. economy toward more solid ground. Such time-tested distractions as the filibuster, as Kay King of the Council on Foreign Relations argues in a recently released report, have hamstrung the U.S. government when it comes to such issues as national security. King’s argument mirrors many of Soros’ statements:

When Congress fails to perform, national security suffers thanks to ill-considered policies, delayed or inadequate resources, and insufficient personnel. Without congressional guidance, allies and adversaries alike devalue U.S. policies because they lack the support of the American people that is provided through their representatives in Congress.

Sources:

Council on Foreign Relations report

Foreign Policy

The Globe and Mail

Soros on a lack of confidence in currency

Republicans have said if the rich can't keep the Bush tax cuts, no one can--however John Boehner, looking ahead to the mid-term election, appears to be softening his stance. Image: Thinkstock.

The Bush tax cuts sat at the top of the agenda as Congress returned from a five-week vacation Monday. No one expects Congress to get much done before lawmakers drop everything in about four weeks to campaign for the mid-term election. Democrats propose repealing the Bush tax cuts for all but those making $250,000 a year or more. Republicans have said they will not vote for anything but making the Bush Tax Cuts permanent for everyone. The typical Congressional stalemate seemed inevitable. However, House Minority Leader John Boehner added intrigue to the debate Sunday when he said he would vote for ending the tax breaks for the rich if that was his only choice for a tax cut.

Boehner’s Bush tax cuts surprise

The Bush tax cuts applying to all taxpayers enacted in 2001 and 2003 expire at the end of the year. The Obama administration wants to extend the Bush tax cuts to everyone but America’s richest people. CNN reports that Republicans and some Democrats oppose the plan, calling it a tax increase in a weak economy. Republicans have threatened a filibuster unless the tax cuts are extended to all–which would essentially allow them to expire for all. Democrats have accused Republicans of holding middle class tax breaks hostage in order to get tax breaks for the rich. Then Boehner’s suggestion that he may compromise on the Bush tax cuts surprised everyone.

Fearful Democrats crawl in bed with Republicans

Boehner dropped his bomb even as a growing number of Democrats fearful of the mid-term election have said they may prefer to extend all the Bush tax cuts for another couple of years as the economy recovers. The Washington Post reports that half a dozen Democratic senators and Senate candidates have suggests such a temporary extension of tax cuts for the rich. In the House, the number of incumbents taking that position are growing. A third way that is getting attention proposes raising the $250,000 tax cut threshold to $1 million per household, to compensate for regions of the country with higher costs of living.

Boehner maneuvers for power, not the middle class

Democrats crowed when Boehner appeared to blink on the Bush tax cuts issue. However, the Christian Science Monitor suggests that Boehner may simply be preparing for his ascension to Speaker of the House should Republicans gain control of the government following the mid-term elections. The Monitor said that unlike the opposition leader, the speaker is actually responsible for getting bills passed. By suggesting he may be willing to compromise, Boehner could set up a tax-cut deal he could take credit for. Plus, if a tax bill gets passed in the short time that remains ahead of the mid-term election, Republicans could say it offers proof they are better than Democrats at getting results. Whether or not Boehner has the good of the middle class in mind with his strategy, the Monitor did not say.

Senator Harry Reid has failed to get cloture. Image from Wikimedia Commons

In order to head off any attempts at a filibuster, the U.S. Senate has tried to invoke cloture to wrap up debate.  The attempt was unsuccessful, and intense debate is expected to continue unabated for some time. It may take longer than previously thought to get the financial reform bill passed and onto the desk of the President.

Reid fails to get cloture

Senate Majority Leader Harry Reid (D-NV) called for a vote of cloture in order to head off debate over the financial reform bill, according to Reuters.  The vote, which requires a two-thirds majority, failed 57 to 42.  Cloture is a feature of parliamentary procedure and used to be incredibly rare. The U.S. Senate is still debating portions of the financial reform bill, and the potential for filibuster remains, so Senators may want to get personal loans for some cots and blankets.  Cloture has very specific conditions on how it can be brought about.

Haute Cloture

Cloture is a French word, and the word and meaning is derived from the same Latin word English derived the word closure from, clausura.  In terms of parliamentary procedure, it means that after a motion calling for cloture is passed, only a limited amount of debate can take place afterward.  For the Senate, only 30 more hours of debate total can take place, and no Senator may speak for more than an hour. It is a way to stop pointless and long winded debate and is the way a filibuster is stopped.

Senate unable to close debate

The row that had broken out concerned two amendments, one from Chris Dodd and one from Blanche Lincoln.  Lincoln’s amendment would prevent certain trades by banks, which Dodd is not in favor of.  Republicans oppose the amendments under debate, and the outright dropping of the Volcker rule was barely avoided.  The financial reform bill is still not finished, and it will some time before a final version is ready.