Economists Grade Obama: A Solid "F"

Wall Street Journal's Phil Izzo reports on a Journal survey of economists, asking them to grade the president's handling of the economy.

Obama's score: 59.

Timothy Geithner's score: 51.

A sampling of opinion: "The Obama team has blown it," said David Resler of Nomura Securities.

It's the banking industry, stupid.

"The most important issue in the short run is the financial rescue," said Stephen Stanley of RBS Greenwich Capital. "They overpromised and underdelivered. Secretary Geithner scheduled a big speech and came out with just a vague blueprint. The uncertainty is hanging over everyone's head."
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Another One Bites The Dust

Intelligence Pick Withdraws Name Amid Controversy
National Intelligence Director Dennis Blair announced former Ambassador Chas Freeman's decision in a statement Tuesday.

Chas Freeman, the former ambassador appointed to be the military's top intelligence analyst, has withdrawn his name following complaints from Democratic and Republican lawmakers who said he was too entangled in foreign affairs to handle the job.

National Intelligence Director Dennis Blair, who originally appointed Freeman to the post of National Intelligence Council chairman, announced the move in a statement Tuesday.

"Charles W. Freeman Jr. has requested that his selection to be Chairman of the National Intelligence Council not proceed. Director Blair accepted Ambassador Freeman's decision with regret," the statement said.

The announcement came just hours after Blair defended Freeman before a Senate committee.

But Freeman had become a political lightning rod since he was tapped two weeks ago for the post.

Lawmakers had objected to several controversial statements Freeman has made about Israel and Iraq. And they said the former U.S. ambassador to Saudi Arabia was too close to that country, as well as to China.

Following those complaints, the inspector general for the director of national intelligence agreed last week to examine Freeman's foreign ties. At the time, Blair said the inquiry would put to rest any questions about Freeman.

But a number of top lawmakers, most of them Republicans, suggested Freeman's conflicts could be disqualifying.

Among their concerns were:

-- Freeman's role as president of the Middle East Policy Council, a think tank they say received funding from the Kingdom of Saudi Arabia. Fuad A. Rihani, a consultant for the bin Ladin family's Saudi BinLadin Group, also sits on the group's board of directors -- another trouble spot for Freeman's critics. And they complained the council did not disclose its donors.

-- Freeman's role on a board for the Chinese National Offshore Oil Corporation, owned by China, and that company's reportedly $16 billion agreement with Iran to develop a gas field in the Middle Eastern country.

The controversy surrounding Freeman heated up last week when Michigan Rep. Pete Hoekstra, ranking Republican on the House Intelligence Committee, said he wanted Freeman to withdraw his name. That was after he wrote to Blair on Monday expressing his doubt that Freeman could restore credibility to the national intelligence estimates, or NIEs, the intelligence reports Freeman would be involved in producing.

"I am ... deeply concerned that an individual who reportedly holds radical and extreme views would be chosen to oversee NIEs, the IC's most comprehensive and authoritative intelligence assessments," Hoekstra wrote, according to a copy of the letter obtained by FOXNews.com.

As NIC chairman, Freeman would have been responsible for drawing from assessments from all 16 intelligence agencies and formulating mid-and-long-term strategic intelligence plans.

More than a dozen lawmakers had already called for an investigation by the time Blair's inspector general, Edward Maguire, decided to launch one. Democratic Rep. Steve Israel, N.Y., first urged Maguire to launch a probe in a letter Saturday.

Rep. Mark Kirk, R-Ill., and Israel also asked Maguire to look into Freeman's work with the Chinese National Offshore Oil Corporation and its deal with Iran.

Blair argued that Freeman's rich background would make him an asset to the intelligence community and other foreign policy analysts had dismissed the criticism of him as a smear campaign.

Freeman has a formidable resume of foreign policy positions that include U.S. ambassador to Saudi Arabia under George H.W. Bush and assistant secretary of defense for international security affairs -- a position that earned him public service awards for his role in creating a NATO-centered post-Cold War European security system. Freeman also served as Richard Nixon's chief translator in China in 1972.

Blair's office said he did not seek White House approval for the appointment, which did not require Senate approval.

But statements the former ambassador made over the last three decades on U.S. peace efforts in the Middle East and Iran's threat to the international community had also prompted some to question his objectivity in a role that requires it.

In a speech to the Pacific Council on International Policy in October 2007, Freeman said the U.S. has "abandoned the role of Middle East peacemaker to back Israel's efforts to pacify its captive and increasingly ghettoized Arab populations."

"We wring our hands while sitting on them as the Jewish state continues to seize ever more Arab land for its colonists," he said.

In reference to the Iraq war, Freeman said, "Now the United States has brought the Palestinian experience -- of humiliation, dislocation, and death -- to millions more in Afghanistan and Iraq.

"By invading Iraq, we transformed an intervention in Afghanistan most Muslims had supported into what looks to them like a wider war against Islam. We destroyed the Iraqi state and catalyzed anarchy, sectarian violence, terrorism and civil war in that country."

Also, The Weekly Standard recently posted a 2006 e-mail from Freeman to a listserv in which he said the Chinese government was "overly cautious" in its effort to "intervene on a timely basis to nip the demonstrations in the bud" during the 1989 Tiananmen Square protests.

FOX News' James Rosen contributed to this report.
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A Chicken in Every Pot and a Jet for Every Deomocrat

Pelosi Made Repeated Requests for Military Aircraft, Documents Show
Representatives for Judicial Watch, which obtained e-mails and other documents showing the requests, say House Speaker Nancy Pelosi has treated the Air Force as her "personal airline."

House Speaker Nancy Pelosi has repeatedly requested military aircraft to shuttle her and her colleagues and family around the country, according to a new report from a conservative watchdog group.

Representatives for Judicial Watch, which obtained e-mails and other documents from a Freedom of Information request, said the correspondence shows Pelosi has abused the system in place to accommodate congressional leaders and treated the Air Force as her "personal airline."

Pelosi's office disputed the claim, pointing to White House policy enacted after the Sept. 11 attacks allowing for the House speaker to travel to his or her congressional district via military aircraft whenever possible for security reasons. Her office said she typically uses the same kind of aircraft used by her predecessor, Dennis Hastert.

But Judicial Watch said that Pelosi was notorious for making special demands for high-end aircraft, lodging last-minute cancellations and racking up additional expenses for the military.

The e-mails showed repeated attempts by Pelosi aides to request aircraft, sometimes aggressively, and by Department of Defense officials to accommodate them.

"I think that's above and beyond what other members of Congress are doing and what is expected of our elected officials," said Jenny Small, a researcher with the group.

In one e-mail, aide Kay King complained to the military that they had not made available any aircraft the House speaker wanted for Memorial Day recess.

"It is my understanding there are NO G5s available for the House during the Memorial Day recess. This is totally unacceptable ... The Speaker will want to know where the planes are," King wrote.

In another, when told a certain type of aircraft would not be available, King wrote: "This is not good news, and we will have some very disappointed folks, as well as a very upset Speaker."

Pelosi spokesman Nadeam Elshami said the report seemed to be based on only "a few e-mails," and defended the requests for military aircraft for her colleagues as a "function of the speaker's office." Elshami said at least one of the requests in the above e-mails referenced requests made for other members.

Pelosi's office noted that the Department of Defense ultimately makes all decisions on use of military aircraft for travel, and that Pelosi is "extraordinarily appreciative" of the department's effort to accommodate Congress.

Click here to read the full report from Judicial Watch.




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Broken Campaign Promises Meets Bad Economics

Senate Passes $410B Spending Bill

WASHINGTON--The Democratic-controlled U.S. Congress on Tuesday approved a $410 billion bill to fund most of the government through September 30, sending it to President Barack Obama despite Republican objections to the price tag.

After a contentious fight the Senate, by voice vote, approved the bill which funds the departments of transportation and agriculture, among others. It also begins to roll back strict limits on travel and trade with Cuba -- a move Obama supports.

"It takes care of these government agencies that have been, over the Bush years, so underfunded," said Democratic Senate Majority Leader Harry Reid, referring to President George W. Bush's administration.

Many Republicans fought the measure because it raised government spending by 8% above fiscal 2008 levels. They said it added more money to programs already funded by the $787 billion economic stimulus package approved last month.

The debate, at times full of bitter partisan rancor over the U.S. embargo on Cuba and abortion, foreshadows even bigger fights over Obama's $3.55 trillion 2010 budget and overhauling healthcare, which Congress will turn to in the coming weeks.

Senators from both parties objected to billions of dollars for lawmakers' pet projects, but rejected several attempts to freeze the spending at last year's levels and strip out so-called earmarks.

"The bill costs far too much for a government that should be watching every dime," said Republican leader Mitch McConnell, who called the legislation a "missed opportunity" to restrain spending amid a deep recession.

Republicans were able to slow the legislation down and get more amendments considered, but none were adopted. Amendments also rejected include ending automatic pay raises for lawmakers and scrapping language that Republicans said would end a Washington, D.C. school voucher program.

The extra debate gave the Obama administration time to address concerns by two senators about the Cuba provisions. Two Democrats, Senators Bill Nelson of Florida and Robert Menendez of New Jersey, were against the bill until the administration offered their views about the provisions.

Treasury Secretary Timothy Geithner wrote to the senators saying that the provisions about doing business with Cuba would not amount to a major reversal of the decades-old U.S. policy of isolating the communist-run island.
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