Today’s Early Bird leads with an article from the Los Angeles Times (reprinted under The Associated Press imprint in many more newspapers) that reports that the Marines would like to deploy more than 15,000 troops if Defense Secretary Robert M. Gates and Army Gen. David H. Petraeus, newly named head of the U.S. Central Command, approve. About 2,300 Marines have already been sent to Afghanistan to replace units from Twentynine Palms, Calif., and Camp Lejeune, N.C., that are returning home after eight months. Gates said Friday that he wanted to supplement the more than 30,000 American troops, mostly from the Army, already in Afghanistan. An additional 30,000 troops from other North Atlantic Treaty Organization countries and allies are also stationed in Afghanistan to combat the Taliban and other Islamist insurgent forces.
Also high in the Early Bird comes a story from The Associated Press reporting that President-elect Barack Obama told Afghanistan's leader that he would dedicate more U.S. aid and military power to the region's fight against militants once he takes office, the Afghan presidential office said yesterday. The telephone conversation between Obama and President Hamid Karzai on Saturday was the first reported contact between the two, although Obama spoke to at least 15 other world leaders in the three days after winning the election.
Elsewhere in the EB, two senior U.S. military officials say the U.S.-led war on terror is facing challenges in part because Pakistan's young military officers don't have the same relationship with their U.S. counterparts that their predecessors had. In a recent interview with The Washington Times, Adm. Michael Mullen, chairman of the Joint Chiefs of Staff, said a top priority for the Pentagon is healing the longtime rift between the two militaries, which he said has deprived both nations of the trust needed to combat extremism. "We don't know each other well enough, and us participating with them in their country is equally as important as them participating with us in our country," he said. Army Maj. Gen. John M. Custer agreed. The commander of the U.S. Army Intelligence Center at Fort Huachuca, Ariz., he said U.S. forces are "dealing with guys who don't have any exposure to us.”
Other noteworthy articles in today’s EB:
§ The Los Angeles Times reports that an increasingly bold Iraqi Prime Minister Nouri Maliki has sanctioned politically charged arrests of prominent Sunnis, personally supervised military operations and moved to sideline rivals in recent months, actions that have evoked memories of the country's authoritarian past.
§ The Chicago Tribune carries a story subtitled “America’s hidden war in Somalia” that alleds a covert war in which the CIA has recruited gangs of unsavory warlords to hunt down and kidnap Islamic militants and … secretly imprison them offshore, aboard U.S. warships
§ USA Today reports that Russian oil companies could soon begin searching for oil in the Gulf of Mexico off Cuba. Russian oil companies have "concrete projects" for drilling in Cuba's part of the gulf, Mikhail Kamynin, Russia's ambassador to Cuba, told state-run Cuban business magazine Opciones. He said Russian companies would like to help build storage tanks for crude oil and modernize pipelines, as well as help Venezuela refurbish a Soviet-era refinery in the port city of Cienfuegos, according to the magazine article.
§ The Christian Science Monitor reports that Venezuela's colorful leftist leader, Hugo Chávez, has claimed that the US intends to use Forward Operating Base Hato in Curaçao as a launch pad for an invasion of his country, which lies just 50 miles to the south. US officials say the military presence here is limited to sailors on rest and relaxation port calls and airmen flying drug-interdiction missions. This week's joint Russo-Venezuelan naval exercises – to take place in the vicinity of Curaçao – only up the ante. The exercises include the nuclear-powered missile cruiser Peter the Great, flagship of Russia's Northern Fleet, and the anti-submarine frigate Admiral Chabanenko, and follow $4.4 billion in Russian arms sales to Venezuela, including helicopters, fighter jets, and 100,000 assault rifles.
§ Meanwhile, the Washington Post Foreign Service reports that the presidents of Georgia and Poland encountered gunfire while attempting to visit a Russian checkpoint near the South Ossetian border on Sunday, an assertion Russia immediately denied and described as a provocation and "wishful thinking." Georgian President Mikheil Saakashvili and visiting Polish President Lech Kaczynski said Russian troops fired machine guns as the leaders' motorcade approached a checkpoint near the breakaway province of South Ossetia, which Moscow recognized as an independent state after defeating Georgia in a five-day war in August.
Media Summary:
1. Leading newspaper headlines: The New York Times, Los Angeles Times, and Wall Street Journal lead with the late-night announcement of a plan to rescue ailing banking giant Citigroup. (Slate Magazine)
2. Jones would bring broad experience to security post: If President-elect Barack Obama turns to James L. Jones Jr. to be his national security adviser, his administration would gain someone whose career spans much of the contemporary security landscape. (Washington Post)
3. Marine Corps growth puts pressure on hospitals: Hospitals near Camp Lejeune Marine Base are facing a shortage of doctors and a new report says the Marine Corps growth will make that shortage worse. (WHQR 91.3 Public Radio, Eastern North Carolina)
4. Navy recommends new P8A planes for Marine Base Hawaii: Marine Corps Base Hawai'i would receive three squadrons of P-8A Multi-Mission Maritime Aircraft to replace the retiring P-3C planes under a final environmental impact statement released by the Navy. (Honolulu Advertiser)
Leading newspaper headlines
The New York Times, Los Angeles Times, and Wall Street Journal lead with the late-night announcement of a plan to rescue ailing banking giant Citigroup. Under a plan that the NYT describes as "radical" and "complex," the federal government will protect Citigroup from potential losses on a pool of troubled assets worth around $306 billion. On top of that, the Treasury Department will inject $20 billion into the company—in addition to the $25 billion the financial institution has already received from the department's Troubled Asset Relief Program. The LAT highlights that this is "the largest single rescue effort thus far in the current financial crisis."
The Washington Post off-leads the Citigroup rescue but leads with word that President-elect Barack Obama and Democratic leaders are considering a huge fiscal stimulus plan that could total $700 billion over the next two years. Transition officials aren't confirming that something of that magnitude is being considered, but more Democrats are raising it as a possibility. USA Today leads with a look at how those who will be flying over the Thanksgiving holiday have a better chance of making it to their destination on time this year. Efforts to decrease congestion at New York airports coupled with the schedule cutbacks by financially struggling airlines have cut down on traffic and have decreased delays.
After Citigroup's stock plunged about 60 percent last week when it became engulfed in a crisis of confidence, executives and federal officials began intense negotiations to try to prevent the problem from spreading to other big banks. "This time … the company in jeopardy is truly gigantic," notes the WP. Citigroup is the largest U.S. bank by assets. It is involved in so many aspects of the financial system—and in more than 100 countries—that it seems to fit the very definition of "too big to fail."
Under the plan, the government will protect Citigroup from losses on a $306 billion portfolio of assets mostly made up of loans and securities that are backed by residential and commercial real estate. Citigroup will be responsible for covering the first $29 billion in losses. (The LAT says $36 billion, because, it specifies, the $29 billion would be on top of approximately $7 billion already in a rainy-day fund.) After that threshold has been reached, the Treasury Department, the Federal Deposit Insurance Corp., and the Federal Reserve will absorb 90 percent of any further losses.
For its trouble, the government will receive $7 billion in preferred shares—on top of the $20 billion of preferred stock it will get for its additional cash infusion. The government didn't mandate any changes to the company's leadership, but the banking giant did agree to grant the government power over its operations. The LAT notes that the government can now "effectively prohibit stock dividends for the next three years" and everyone says Citigroup had to accept limits on executive compensation and to agree to implement a plan to modify mortgages to avoid foreclosures.
Of course, no one knows whether it will be successful. The NYT highlights that this will be the "government's third effort in three months" to stabilize the markets and could be used as a precedent to rescue other financial firms. To recap: First, the government said it would buy troubled assets, then scrapped that plan in favor of injecting money into financial institutions. Now it's made it clear that it's ready to try a mixture of the two for certain institutions. The previous efforts led to a bit of optimism in Wall Street, but that optimism has always proved short-lived. The WSJ points out that the portfolio involved in this rescue is really only a drop in the bucket for a company that has $3 trillion in assets, including $667 billion in mortgage-related securities alone.
In a separate piece inside, the NYT points out that this new plan "raises about as many questions as it answers," particularly if it's seen as a model for an industrywide rescue. How does the government decide which assets to include? How would potential losses be calculated? Has it even considered all the assets that could lead to losses in the future? Even if this helps the market as a whole, there's no guarantee that it will pervent problems in financial institutions further down the road.
It's unclear how influential President-elect Barack Obama's pick for Treasury secretary, Timothy Geithner, was in the weekend's negotiations. The WP and LAT both say that as president of the Federal Reserve Bank of New York, Geithner was involved and kept Obama updated. The NYT agrees Geithner was critical to the negotiations on Friday, but says he backed away a bit after news began circulating that he would be appointed.
The WP adds a little historical gem by pointing out that Citi's origins can be traced back to a firm called First National City Bank that, in the 1920s, repackaged and sold bad loans from Latin America and billed them as safe securities. After the scheme collapsed, it became Citibank. Decades later, repackaging bad loans as safe securities is at least part of the reason why Citigroup is suffering so much heartache. Curious about how Citigroup got into the predicament it's in today? If so, be sure to read yesterday's detailed NYT piece that explains how the company went from being worth $244 billion two years ago to $20.5 billion today. The story is particularly interesting, considering that Robert Rubin, Treasury secretary under President Clinton and an economic adviser in Obama's transition team, plays a starring role in the saga.
Speaking of Rubin, the NYT takes a look at how Obama is creating "a virtual Rubin constellation" in his economic team. Obama's three top economic advisers "are past protégés" of Rubin, who also has ties to other members of the president-elect's transition team. But even though the three advisers once shared Rubin's formula of favoring balanced budgets, free trade, and financial deregulation that was so popular in the 1990s, they all recognize that times have changed. They're now following Obama as he promises to increase regulation and plans to take the country deeper into debt.
While the WP says the next fiscal stimulus package could involve as much as $700 billion, the real number could prove to be even greater. The LAT says "congressional allies" are talking about a program that could total as much as $900 billion of new spending and tax cuts. Whatever the exact number may be, everyone says Democrats in Congress want to pass legislation at the beginning of the new year so Obama can sign the new stimulus package quickly. Besides the obvious point that such huge amounts of spending will dramatically increase the national debt, there's also concern that it could prove too much stimulus, which would create massive inflation once the economy recovers. But many seem to agree the real risk is doing not enough rather than too much.
The WSJ also notes Treasury Secretary Henry Paulson is considering asking for the second half of the $700 billion bailout package to implement new programs, which would mark a reversal from what he said last week. Paulson apparently would use the funds to make it easier for households to borrow money and to reduce foreclosures.
The WP takes a look at how the Federal Reserve has been playing a relatively quiet role in the crisis. Even as the Treasury's every move is analyzed and debated, the Fed has lent $893 billion to a variety of institutions that are having trouble getting a hold of cash to continue operating. In some ways, it's carrying out the original goal of the TARP program by allowing financial institutions to put up troubled assets as collateral for the loans. But it's doing it all out of public view, as the Fed is refusing to reveal not only which companies are asking for money but what collateral they pledged. The Fed insists this type of secrecy is necessary to avoid creating a stigma for the firms that ask to borrow money, which would make the program much less effective, because companies would be reluctant to seek the central bank's help.
In other news, the LAT takes a look at how there's growing concern in Iraq that Prime Minister Nouri al-Maliki is setting himself up to become "a benevolent Shiite Saddam." Once dismissed as a weak leader without real power, Maliki has been able to navigate his relationship with the United States and stands to gain if the security agreement is approved this week as expected. He would then officially become the man who brought an end to U.S. occupation, which could help him consolidate power in January's provincial elections. Supporters dismiss the suggestion that Maliki could become a dictator but say that Iraq needs strong leadership in order to move forward. "In some ways, we are seeing a return to traditional Iraqi political culture, where authority is centralized in the person of the leader in Baghdad," A U.S. official said.
The NYT points out that after preaching to his 20,000-member congregation that they should strengthen their marriages through Seven Days of Sex, the Rev. Ed Young told the couples yesterday to keep going. "We should try to double up the amount of intimacy we have in marriage," Young said. "And when I say intimacy, I don't mean holding hands in the park or a back rub." Young insists this is not a publicity gimmick but rather a simple way to feel closer to a spouse and to God. "If you've said, 'I do,' do it," he said. What about singles? "I don't know, try eating chocolate cake."
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Jones Would Bring Broad Experience To Security Post
James L. Jones Jr. served as Marine commandant and NATO commander. (Heesoon Yim - AP)
By Michael A. Fletcher
Washington Post Staff Writer Saturday, November 22, 2008; Page A04
If President-elect Barack Obama turns to James L. Jones Jr. to be his national security adviser, his administration would gain someone whose career spans much of the contemporary security landscape.
During 40 years in the Marine Corps, Jones, 64, rose from being a platoon and company commander in Vietnam to Marine commandant. In the international realm, he has served as supreme allied commander of NATO and as a special envoy for Middle East security. In the public policy arena, he has chaired the Independent Commission on the Security Forces of Iraq, a congressionally appointed panel that assessed the readiness of Iraqi troops.
Since retiring from the Marines last year as a highly decorated four-star general, Jones has worked on energy issues as the chief executive of the U.S. Chamber of Commerce's Institute for 21st Century Energy.
"He has a broad range of skills and experiences," said retired Army Maj. Gen. William L. Nash, who has worked with Jones through the years. "He is also an internationalist. He understands a lot of people and a lot of different cultures. He also is someone who has the interpersonal skills to bring together a wide range of people to focus on issues."
Several sources said Jones has moved to the top of the list to be Obama's national security adviser, a job that would put his skills to the test. The incoming administration will be faced with a crammed national security agenda. It has to manage wars in Iraq and Afghanistan while working to curtail Iran's nuclear ambitions, monitor North Korea's promise to dismantle its nuclear arsenal, and help stabilize a shaky Pakistan. At the same time, it has to tend to the nation's energy and economic security interests.
The national security adviser plays a crucial role in such issues, managing an interagency process intended to funnel vital information to the president -- a function that critics say has at times faltered during the Bush administration.
In a recent speech to the National Defense Industrial Association, Jones said the next administration should broaden the council's role to encompass more energy matters. Currently, the council, which meets with the president and vice president, includes intelligence officials as well as officials from the Defense, State and Treasury departments.
Jones is seen as a bipartisan figure. He served as an informal adviser to Obama during the campaign, although he did not publicly back any candidate. His name was mentioned briefly as a possible Obama vice presidential pick, but he has also served as a Middle East envoy for President Bush.
During his ascent through the Marine Corps, Jones held a wide range of posts, including company commander in Okinawa, Japan, Marine Corps liaison officer to the U.S. Senate, deputy director of the U.S. European Command and military assistant to Secretary of Defense William S. Cohen.
Jones was born in Kansas City, Mo., but he spent his formative years in France, where his father sold farm machinery. The 6-foot-4-inch Jones is a graduate of Georgetown University, where he played on the school's basketball team. He is also a graduate of the National War College.
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Marine Corps Growth Puts Pressure on Hospitals Peter Biello
(Editor’s Note: Related stories in audio and print can be accessed at this link: http://www.publicbroadcasting.net/whqr/news.newsmain)WILMINGTON, NC (2008-11-24) Hospitals near Camp Lejeune Marine Base are facing a shortage of doctors and a new report says the Marine Corps growth will make that shortage worse.
The report commissioned by the Military Growth Task Force shows a shortage of a variety of types of doctors, including cardiologists and general surgeons.
The Marine Corps plans to add more than 11,000 Marines to Camp Lejeune and two nearby air stations by 2011.
Commanding Officer of the Naval Hospital Captain Gerard Cox says Marine families often use facilities off base.
"We rely very heavily on the local civilian medical community, including hospitals like Onslow Memorial and New Hanover Regional Medical Center in Wilmington, where we refer patients routinely for subspecialty medical care."
Cox says doctor deployments make it difficult to keep a stable team of doctors at the Naval Hospital.
The report also says the military growth will exacerbate the shortage of mental health and substance abuse services.
To read the Military Growth Task Force report on the impact of military growth in eastern North Carolina, click here.
Do you have insight or expertise on this topic? Please e-mail us, we'd like to hear from you. news@whqr.org.
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Navy recommends new P-8A planes for Marine Corps Base Hawaii
Advertiser Staff
Marine Corps Base Hawai'i would receive three squadrons of P-8A Multi-Mission Maritime Aircraft to replace the retiring P-3C planes under a final environmental impact statement released by the Navy.
The plan would also involve basing five fleet squadrons of P-8As at Naval Air Station Jacksonville, Fla. And four at NAS Whidbey Island, Wash.
"The proposed action is needed to transition from existing P-3C aircraft to the P-8A MMA while maintaining the Navy's overall maritime patrol capability supporting national defense objectives and policies without interruption or impediment to operations or combat readiness," the Navy said in a statement.
The statement did not say when the squadron replacements would occur.
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