Savage Washington

Savage Washington

Luiza Ch. Savage covers political life south of the border. Follow Luiza on Twitter: @luizachsavage

Dick Cheney, economist

By Luiza Ch. Savage - Thursday, September 8, 2011 - 5 Comments

It is an interesting exercise to read Dick Cheney’s new memoir, In My Time, amid the anti-Wall Street bailout and anti-deficit clamour among many Republicans in Washington and on the campaign trail.

Cheney writes of his support for the the $700 billion Troubled Assets Relief Program (TARP):

“I had long been an advocate of keeping government intervention in the private sector to a minimum. What we were now talking about now was the largest such intervention in the history of the republic, and I was a strong supporter.  [...] There was no other option.”

Knowing that Republicans in Congress would hate it, the administration even considered acting unilaterally:

“We briefly contemplated not seeking congressional authority. [...] [Federal Reserve Board Chairman] Ben Bernanke made clear, however, that he would feel much more comfortable with congressional approval, so we went to work trying to secure it.”

Cheney goes on to defend the bailout of the banks as a “success.”

As for the Bush-Cheney administration’s contribution to the federal deficit, he writes about the resistance they faced in 2003 when they proposed a $550-billion second round of tax cuts. A few Republicans were worried about the cuts adding to the deficit:

“I have been quoted as saying around this time that ‘deficits don’t matter’ and citing Ronald Reagan to bolster the case, but of course I thought deficits mattered. I just believed that it was important to see them in context, to note that while Ronald Reagan’s dramatic increases in the defense budget and his historic tax cuts did push the deficit from 2.7 percent of the gross domestic product in fiscal year 1980 to 6 percent in fiscal year 1983, his spending on defense helped put the Soviet Union out of business, and his tax cuts helped spur one ofthe longest sustained waves of properity in our history. The result was a peace dividend, increased federal revenues, and, eventually, lower deficits.”

Not much of a Tea Partier, that Cheney.

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  • Rick Perry’s Ron Paul problem

    By Luiza Ch. Savage - Thursday, September 8, 2011 at 2:32 PM - 12 Comments

    Watching now front-runner Texas governor Rick Perry campaign for the Republican presidential nomination in New Hampshire over the weekend, it was easy to see how he had managed to leap over Mitt Romney and Michele Bachmann in the polls. He has charisma and the kind of unapologetic swagger many conservatives are looking for and touts a record of job creation in Texas. Primary voters who came to see him speak found some of his more 0ver-the-top comments to be less evidence of un-electability than proof that  the guy sticks to his guns and “tells it like it is”. (Story in this week’s print magazine.)

    But last night’s Republican debate threw up two red flags. First, calling Social Security a “Ponzi scheme” doesn’t play as well on national television as it does in a more intimate back and forth with voters when its couched in folksy, I’m-just-bein’-straight-with-ya rhetoric. Every time Perry repeated the phrase last night, it was hard not to imagine Democrats cutting an attack ad.

    Second, having to share the stage with a fellow Texan familiar with the details of your record presents a problem — especially if he is a libertarian and you are trying to run against Romney from the right. It was Rep. Ron Paul who last night put the pressure on Perry over his executive order that Grade Six girls in Texas get vaccines against a sexually transmitted disease that causes cancer — portraying it as not only an assault on parental rights, but also as an abuse of an executive order to get around taking the matter to the state legislature. And in past years, it was Paul who has criss-crossed the country denouncing the toll-roads Perry tried to build in Texas, portraying them as part of a nefarious “Nafta Superhighway.”

    It will be interesting to see what impact the debate has on Perry’s poll numbers — and how the Texan-on-Texan dynamic will unfold going forward.

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  • State Dept.: no major enviro probs with oil sands pipeline

    By Luiza Ch. Savage - Friday, August 26, 2011 at 2:14 PM - 6 Comments

    August 26, 2011

    The State Department today issued its final Environmental Impact Statement concerning TransCanada’s proposed Keystone XL pipeline from Alberta to the Gulf Coast. (Available for download here.)

    While this is only one step in the review process that will lead to a decision on whether or not State grants a permit — a decision that will be made by Dec. 30th — it bodes well for TransCanada.

    After a prolonged environmental review process that included several drafts that came under criticism from the Environmental Protection Agency, State concluded that there will be no major environmental impacts along the route of the pipeline, as long as TransCanada makes some small adjustments to the route.

    The State Dept. ruled out requiring that the pipeline be re-routed around a large chunk of Nebraska despite concerns that the pipeline would cross a major acquifer there.

    And despite concerns by environmentalists that the pipeline will lead to more development of the oil sands and therefore more carbon emissions into the global atmosphere, the State Dept. concluded that the oil sands will be developed regardless of whether or not the pipeline is built. Therefore, they reasoned, emissions will be unchanged. I asked on a State Dept. conference call whether State was assuming that the proposed pipeline to the West Coast would be approved, and the official said no, but that the assumption was that the oil would be removed one way or another — by truck or barge, for example.

    Also in TransCanada’s favour, the State Dept. report noted that technology would help bring down emissions over time in the oil sands. The report also noted that State is not legally required to consider environmental impacts in Canada.

    The State Dept. today emphasized in a conference call with reporters that this report is “not a rubber stamp” and that no final decision has been made. But it is hard to see this development as not pointing to eventual approval since the fiercest opposition to the pipeline has been on environmental grounds.

    The next step in the process is a 90-day comment period in which government agencies and the public are invited to comment on whether the project is in the “National Interest.” This will include discussion of issues such as energy security and foreign policy, which cut in the project’s favor given turmoil in the Middle East, for example.

    With demonstrations and sit-ins in front of the White House this month, environmentalists are trying to put political pressure on the Obama administration to take a stand against oil sands imports on climate change grounds. But leading Republican presidential candidates are casting doubt on the very notion of man-made climate change, giving Obama political room to come down somewhere in the middle.

    Environmentalists say their next step will be to take the battle to court.

    National Wildlife Federation executive, Jim Lyon said, in a statement,“After two failed rounds of environmental review, this looks like strike three for the State Department.  The document still fails to address the key concerns for landowners and wildlife. It is almost certain to be scrutinized in other venues, including a probable legal challenge. This only escalates the controversy in a process that is far from over.”

    The Pembina Institute calls the report “unfathomable.”

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  • Double-dip? Or 7-year “debt de-leveraging”?

    By Luiza Ch. Savage - Monday, August 8, 2011 at 10:11 AM - 14 Comments

    In a depressing reality-check on the US economy, Ezra Klein quotes an economist who has studied the aftermath of various financial crises and finds they are quite different from regular business-cycle recessions.

    Writes Klein:

    “In a paper co-authored with her husband, economist Vincent Reinhart, Carmen Reinhart looked at the aftermath of the 15 post-World War II financial crises. “The monetary policies in these episodes were quite different. The fiscal policies were quite different. And the exchange rates were all over the place,” she says. But wherever there was a substantial overhang of private debt, there was a long road to recovery.”

    “Debt de-leveraging takes about seven years. That’s the essence,” she says. “And in the decade following severe financial crises, you tend to grow by 1 to 1.5 percentage points less than in the decade before, because the decade before was fueled by a boom in private borrowing, and not all of that growth was real. The unemployment figures in advanced economies after falls are also very dark. Unemployment remains anchored about five percentage points above what it was in the decade before.”

    Full article at the Washington Post: Don’t Call it a Recession.

  • Clinton & Baird on Keystone, Syria and Somalia

    By Luiza Ch. Savage - Thursday, August 4, 2011 at 5:48 PM - 4 Comments

    Foreign Minister John Baird met with Secretary of State Hillary Clinton at the State Department today. Their press conference afterward included a few notable word choices.

    On bilateral issues, Clinton used language that should be music to the Canadian government’s ears. She described the border as a “connector.” That image certainly fits with the kind of conceptualization of the border that successive Canadian governments and the Canadian business community have been arguing for.

    Clinton said: “As close neighbors who work, trade and interact with one another, we are seeking ways to create jobs for our own citizens, Canadians and Americans alike.  Therefore it’s critical that we ensure our border remains a safe, vibrant connector of people, trade and energy.  And today the minister and I discussed other ways to expand trade and investment — for example, by reducing unnecessary regulations that get in the way of our businesses doing business.”

    It’s also notable that she didn’t just say connector of people and trade but also energy — given the controversy over the proposed Keystone XL pipeline that would carry oil sands crude to the US Gulf Coast, which is being reviewed by her department.

    Later in the press conference, she was asked what environmental concerns the administration still has about the pipeline and why the process has been taking so long. Without getting into details, she said environmental questions are being closely examined along with pipeline safety issues.  “We are leaving no stone unturned in this process,” she said, and reiterated that there would be a decision by the end of the year. She added that pipeline safety was on the department’s “highest priorities.” But she also went out of her way to say that the department was “working very hard to understand” all the issues, “including the very important point the minister made to me about energy security.”

    For his part, Baird presented the Conservative government’s parliamentary majority as a mandate for the perimeter security talks: “Our government recently received a strong mandate from Canadians to create jobs and to secure the global recovery.  To that end, even stronger cooperation between Canada and the United States simply makes sense,” he said. “We must speed up legitimate trade and travel between our two countries, while also enhancing security and protecting our citizens’ privacy.” And he called the proposed pipeline “tremendously important to the future prosperity of the Canadian economy.”

    On Syria, Clinton said the US government believes some 2,000 people have been killed by the Syrian regime and expressed some frustration with the difficulty of raising international outrage at the sight of the Syrian regime killing its own citizens. She noted in particular the shooting of a one-year old child.

    “We know that it’s taken time to pull together a broader international coalition to speak out against what is happening in Syria, but we are committed to doing all we can to increase the pressure, including additional sanctions, but not just U.S. sanctions, because frankly we don’t have a lot of business with Syria.  We need to get Europeans and others.  We need to get the Arab states.  We need to get a much louder, more effective chorus of voices that are putting pressure on the Assad regime, and we’re working to obtain them.”

    She said there was progress because a UN Security Council Resolution condemning Syria that was adopted Wednesday night. “We are working very hard to increase that international will.  What happened last night in the Security Council could not have happened a week ago.” She said it was the “first step in what we hope will be a series of steps.”

    With regard to the famine in Somalia, Clinton noted that Jill Biden, the wife of the vice president as well as Raj Shah, the head of USAID would be visiting aid operations in Kenya. She called on al-Shebab militants to allow access to food relief efforts. She also said that laws banning aid to terrorist groups would be waived for those groups attempting to help feed the starving people in areas controlled by al-Shebab.

     

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  • Q&A with the U.S. State Dept. official leading the Keystone XL pipeline review

    By Luiza Ch. Savage - Monday, June 20, 2011 at 1:06 PM - 4 Comments

    Below is  my interview with Daniel Clune, Principal Deputy Assistant Secretary of State — the official at the US State Department responsible for managing the review process of TransCanada PipeLines Ltd.’s application to build the Keystone XL pipeline from Alberta to the Gulf of Mexico.

    The review process consists of two main parts: an Environmental Impact Statement and a National Interest Determination.

    My article based on the interview is here: What’s blocking the Keystone XL pipeline?

    (The transcript has been slightly condensed.)

    Q – Why is this approval process taking so much longer than the ones for Keystone I and Alberta Clipper?

    Continue…

  • U.S. EPA announces "environmental objections" to oil sands pipeline

    By Luiza Ch. Savage - Tuesday, June 7, 2011 at 12:32 PM - 13 Comments

    The US Environmental Protection Agency has sent a letter to the State Department raising “environmental objections” to  TransCanada’s proposed Keystone XL pipeline that would carry crude oil from the Alberta oil sands through the American Midwest to refineries on the Gulf Coast. The State Department is considering whether or not to issue a permit for the pipeline, which has the support of the Alberta and Canadian governments.

    (The letter is in response to the State Department’s Supplemental Environmental Impact Statement. The supplemental was issued after the EPA criticized the first EIS as inadequate. But the EPA says that State again did not provide sufficient analysis in its supplemental EIS.)

    In yesterday’s letter, the EPA said that it has “environmental objections” to the Keystone XL project.

    (The “environmental objections” rating is explained on page 8 of the letter — out of 4 possible rankings, this is the second-most negative and requires either “corrective measures” or “alternative actions” to be taken.)

    The EPA says it has concerns about pipeline safety and spills, impacts on nearby communities, and greenhouse gas emissions, among others.

    The full letter is here.

    Meanwhile, yesterday the State Dept. said it would hold six additional field hearings on the proposed pipeline — something environmentalists had been asking for.  The move is a disappointment to House Republicans who have been urging the Obama administration to fast-track the project both as a means to “energy security” and as way to create construction jobs in the US. (They even introduced a bill that would require the administration to reach a permit decision by Nov. 1. State has said it will make a decision by the end of 2011.)

    The letter comes after the US pipeline safety regulator ordered the existing Keystone pipeline shut down on Friday after a series of leaks. It was allowed to reopen the next day.

    Environmentalists were encouraged by the EPA’s letter:

    “With this rating, the EPA is standing up for the people who would be hurt by the Keystone XL pipeline, including Midwest farmers and low-income people around Texas refineries,” said Alex Moore, dirty fuels campaigner at Friends of the Earth. “All eyes are on Secretary of State Clinton. Will she comply with the law and ensure that these impacts are studied or not?”

    Meanwhile, Andrew Leach argues at the Globe and Mail’s website that the pipeline’s potential impact on greenhouse gas emissions is being overstated.

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    On Twitter at luizachsavage

  • Cdn and US manufacturers pitch 3-tier plan for border

    By Luiza Ch. Savage - Friday, June 3, 2011 at 5:16 PM - 0 Comments

    A group of major US and Canadian manufacturers, including automakers, have made their own submission to the US and Canadian working groups that are advising the two governments on an ‘action plan’ for perimeter security. (They estimate that their members account for about 35% of trade across the border.)

    The group, Businesses for Better Borders, calls for non-stop “unimpeded access” to crossing the physical land  border (i.e. no inspection, no paperwork) for companies that have undertaken approved measures.

    Their plan would separate commercial traffic into three levels. From their submission:

    Level 1. Companies that have not invested in trade compliance or security partnerships with government who must provide full transactional data details well in advance of shipmentarrival at the shared border so that governments can complete the necessary risk analysis. Data requirements and reporting timeframes should be harmonized to the existing U.S. Automated Customs Environment.

    Level 2. Companies that have only invested in supply chain security trusted trader programs should be provided dedicated primary inspection lanes with data requirements and reporting time frames aligned with current U.S. C-TPAT/FAST.

    Level 3. Companies that have invested in both supply chain security and trade compliance trusted trader programs should be provided with unimpeded access across the border with a rolling stop process that eliminates transactional data reporting requirements with full data reported summarily post importation. This process would be an enhanced version of the current Canadian CSA/FAST requirements.

    Their full submission is here: B3 Recommendations BBWG – May 18_11

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  • Cdn and US Chambers of Commerce submit plan for 'perimeter security'

    By Luiza Ch. Savage - Friday, June 3, 2011 at 4:15 PM - 0 Comments

    The Canadian and US Chambers of Commerce have submitted a joint proposal to the government’s Beyond the Border Working Group that is preparing a perimeter security action plan for the Harper government.

    Their proposals include centralized border oversight:

    1. Create a temporary cabinet-level subcommittee to provide centralized oversight and to review border operations across various government departments.
    2. Increase border-related metrics to identify existing border policies and limitations so as to increase border efficiency.
    3. Undertake a review of border processes with the goal of removing redundancies where possible.

    The two Chambers also make suggestions for improving and harmonized the “trusted shipper” and “trusted traveler” vetting programs. They urge pre-clearance for freight traveling by train and truck. And they also urge Canada to move on reforming intellectual property laws.

    The full paper is here:

    CCC-USCC submission to the BBWG Final (1)

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  • House GOP press for Keystone XL approval by Nov. 1

    By Luiza Ch. Savage - Friday, May 20, 2011 at 12:10 PM - 9 Comments

    House Republicans have drafted legislation that would require the Obama administration to approve by Nov. 1 TransCanada’s proposed Keystone XL pipeline from the oil sands in Alberta to the Gulf Coast.

    On Monday, members of House Energy and Commerce committee will hold a hearing to make the case for “North American made energy security”.

    It’s interesting that the notion of  ”North American energy security” (as opposed to the oft-cited “American energy security”) is gaining political traction in Washington, DC.

    Links to witness list, written testimony, press release, and Monday webcast are here.

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  • John Manley, CEOs, propose details on perimeter security

    By Luiza Ch. Savage - Thursday, May 19, 2011 at 3:24 PM - 5 Comments

    The Canadian Council of Chief Executives, the business group headed by former deputy prime minister John Manley, who worked closely with then-DHS secretary Tom Ridge on the “smart border” initiative in the wake of 9/11, has issued its proposal to the US and Canadian governments as part of the “beyond the border” public consultation process that Harper and Obama launched in February. Working groups in each country are preparing an “action plan” aimed at improving the flow of goods and services and cross-border trade .

    The group, which represents 150 CEOs of large companies, make a wide range of proposals that they say could be implemented immediately or within two years.

    Some of their suggestions include:

    On border security:

    - Move cargo inspections away from the border to the factor gate for trusted frequent shippers,

    - A pilot project to eliminate border re-inspections for meat that has already been inspected within earch country

    - Raise duty-free allowances and gift exemptions

    - Inspect goods coming from outside of the US/Canada only once upon entry rather than re-inspecting at the border

    - Automated information sharing on entry/exit data at the land border

    - Align passenger screening programs

    - Canada should invest in more biometric technology compatible with existing US systems

    On regulatory cooperation:

    - Canada should update is copyright legislation

    - Eliminate country of origin labeling for meat

    - Eliminate agricultural inspection fees

    - Harmonize food safety and animal health standards

    - Develop energy and environment accord with common standards on advanced technologies

    - Align ‘market-driven energy policies’

    - Streamline energy infrastructure approvals

    - Avoid border charges on greenhouse gas emissions

    - Cooperate on clean energy projects

    The full document is here.

  • Canadians sue for right to donate to US campaigns

    By Luiza Ch. Savage - Thursday, May 12, 2011 at 12:42 PM - 4 Comments

    Politico has an interesting story today about a group of Canadians who are challenging a ban on foreigners making contributions to US political campaigns. (Perhaps such a suit was inevitable. During the 2008 presidential race, one would run into Canadians at many rallies and events — usually on the Obama side.)

    …The FEC’s lawyers, for instance, predicted in a filing defending the contribution ban, that its reversal “could open the door to millions — or even billions — of dollars of campaign advocacy by foreign corporations,” as well as “attack ads against American candidates” financed by “an individual paid by a foreign government to conduct espionage on the United States and harm American interests.”

    And the White House-allied ThinkProgress blog ominously suggested that liberal bogeymen such as Koch Industries and the U.S. Chamber of Commerce may be secretly funding the suit to further deregulate campaign rules and pave the way for foreign corporations to try to buy U.S. elections.

    Those claims are “ludicrous,” said Yaakov Roth, one of the two young lawyers at the elite firm of Jones Day trying the case on a pro-bono basis. Roth – a Canadian who graduated from Harvard Law School and clerked for conservative Supreme Court Justice Antonin Scalia, first became interested in the foreign contribution ban when he learned it barred him from making political donations. He contends it stems partly “from hostility and suspicion about the views of aliens. And that’s directly contrary to what the First Amendment is about.”

    Roth and Warren Postman – an American who graduated from Harvard Law with Roth and clerked at the same time for then-Justice David Souter, a liberal – brought the lawsuit on behalf of two young foreigners living, working and paying taxes in New York City as legally admitted temporary residents – Benjamin Bluman, a Canadian lawyer who went to law school with Roth and Postman, and Asenath Steiman, a doctor who is a dual Canadian-Israeli citizen doing her medical residency in New York.

    According to their lawsuit, Bluman supports same-sex marriage, net neutrality and environmental protection, and would like to contribute $100 a piece to the campaigns of Democrats he believes will advance those positions, including Obama and Rep. Jay Inslee (D-Wash.). And Steiman is a free-market conservative and opponent of Obama’s healthcare overhaul who wants to contribute $100 each to Sen. Tom Coburn (R-Okla.), the National Republican Senatorial Committee, the Club for Growth and “her preferred candidate for the Republican (presidential) nomination.”

    The full article is here: Lawsuit revives fear of foreign cash [Politico]

  • The first Republican presidential debate in a nutshell

    By Luiza Ch. Savage - Thursday, May 5, 2011 at 10:57 PM - 5 Comments

    And they’re off…

    Given how few big-name potential candidates showed up in Greenville, SC tonight, the debate was really a chance for former Minnesota governor Tim Pawlenty to introduce himself to a national audience and make some headlines, but it’s hard to see that he made a huge impression. One of his most memorable moments came when Fox News called him out for having supported cap-and-trade and he gave a full-throated apology and mea culpa (“I was wrong, it was a mistake, and I’m sorry”).  He now says would be damaging to the economy.

    Pawlenty, who in the past has called Obama “weak” on national security, took a hawkish position. He said he supports waterboarding in some situations. While he said he “tipped his cap” to Obama for hunting down bin Laden, he also took the position that bin Laden was killed thanks to intelligence from Bush-era interrogation techniques that President Obama opposed. (Though this is not clear from the record.) He also called for an ultimatum to Pakistan: cooperate with us in Afghanistan or lose your aid.

    His is a much tougher position than the one being taken by Republican committee leaders in the US Congress who say they have “tough questions” for Pakistan’s government about their role in protecting bin Laden, but add that the US has a lot at stake in Pakistan and has been receiving cooperation on a number of fronts, including being allowed to make drone attacks on militants. (See my piece in the new Maclean’s print magazine for more on this subject.) Pawlenty also called the United Nations a “pathetic organization.”

    Former Pennsylvania senator Rick Santorum was the field’s standard bearer for social conservatism. Santorum gave his most impassioned answer when arguing that “rights come from God.” He said there could be “no truce on moral issues” and was forced by Fox News questioners to defend past comments that appeared to link working women and what he called “radical feminism.” (He said he blamed radical feminism for celebrating women’s decision to work—rather than equally celebrating the decision of those who stay home to be wives and mothers.) He said he supports making English the official language of the US calling the “language of success” in America. He criticized Obama for not giving more support to the Iranian student movement and said that anything Obama has done right on foreign policy “was a continuation of Bush.”

    Atlanta businessman Herman Cain was the only participant who said he would not release the photo of a dead Osama Bin Laden. He said the war in Libya lacks a “plan for victory” and also took socially conservative positions.

    Texas Congressman Ron Paul thinks secret prisons are “authoritarian,” would not support raising the federal debt limit even if it led to a default, believes America’s fiscal problems result from its “militarism,” and doesn’t think many people would try heroin if it were legal.

    New Mexico governor Gary Johnson ran 30 marathons, climbed Mount Everest, and wants to legalize pot.

  • Interview with South Carolina governor Nikki Haley

    By Luiza Ch. Savage - Thursday, May 5, 2011 at 5:38 PM - 1 Comment

    South Carolina Governor Nikki Haley held a round-table interview this afternoon with several reporters in Greenville, SC ahead of the first Republican presidential debate here this evening. The following is a condensed excerpt of the exchange. A daughter of Sikh immigrants from India, she is the first woman and the first non-white governor of the state. At age 39, she is also the youngest governor in US.

    Tonight’s televised debate is the first in the Republican presidential nomination contest.

    Q – The obvious question is that there is a sense of frustration that some of the bigger names aren’t here for this debate. We wanted to get your reaction…

    A – I don’t know that it’s frustration. What we are looking at is the fact that some candidates want to be here early and want to show their aggressiveness they are doing that and I applaud them for doing that. The others are going to have to make up for lost time. And they’ll have to realize that when they come, they have missed the first chance to get that messaging out there. But they are all coming. And the people of South Carolina are ready and excited to hear what they have to say.

    Q – Are they making a mistake in judgment?

    A – I will tell you anybody that ignores the state of South Carolina is making a huge mistake.  To me as a candidate, you went anywhere and everywhere to let people know how much you cared. I think that the candidates need to show the people of South Carolina that they will be anywhere and everywhere to show how much they care.

    Q – You have been very critical of the message you have heard from the candidates so far? Have you heard that yet, or what are you looking to hear?

    A – The people of South Carolina and I don’t want a candidate coming in here telling us how they are going to win. We want a candidate that is talking about policy. What are they going to do to make us more energy independent? What are they going to do in reference to what the NLRB [National Labor Relations Board] has done with the unions against Boeing? What are they going to do in terms of our debt ceiling? What are they going to in terms of improvement of our quality of life and make sure we have more industry in the United States. What are they going to do in reference to our military and the fact that now we have Bin Laden now but now we have to continue to be vigilant.

    The people of South Carolina want specifics. Any candidate who comes in and thinks they are just going to bring their high-powered consultants and visit GOP groups, they are making a mistake. They have to see every corner of the state, see every person, and talk about specifics. I did not win my election by the GOP establishment or the money people. I won by the cooks in the kitchen, and the parking meter attendants, and the law enforcement officers. People talk doesn’t go over well in this state but results and pure substance does.

    Q – Tim Pawlenty has tried to impress you. Has he made any progress?

    A – Absolutely. I applaud him for responding to the lawsuit against Boeing. And I challenge every other candidate to do the same.

    When a candidate responds, he shows he is listening and answering tough questions, we have to give them credit…

    Q – You mention energy independence. Have you thought about the issue of the proposed pipeline form Canada bringing more oil sands [crude]?

    A – The one thing that we are hearing from our constituents are oil prices. … All I want are permanent solutions. I want someone who will come in and say,  this is how we’re going to handle it. This is where we’ll be a year from now and this is where we’re going to be two years from now. I would like to see us start to drill…

    Q – South Carolina is known, particularly among Canadians, as being the South and everything that implies. You are the first female, Indo-American governor, you are in the your 30s, are you representative of some kind of new face of the Republican Party and what can you do to help the party nationally?

    A – I represent a state that is going to show every other state in the country what a good state looks like. I am incredibly proud of our state.  I will tell you that I absolutely agree with my friend and national columnist, George Will, who said, “I you are looking for the state that has changed the most in the last 50 years, you’d say it was California. But if you are looking for the state that has changed for the best in the last 50 years, you’d definitely say South Carolina.” That is what the state is excited about. There is a new energy in our state. Unemployment rates are down for fourth month in a row, tourism rates are up, exports are up. We’ve got jobs coming in left and right.

    I am on the phone with companies every day and they want to come. And the types of companies we are talking to are automotive, aerospace, manufacturing, research and development. They are coming because the cost of doing business in South Carolina is low and the trained workforce we are supplying to them. We are a strong right to work state that does not want the labour unions anywhere around us. The phones are ringing and we are quite excited.

    Q – When you talk to Mitt Romney’s supporters about why he is not coming here, you hear, you know, people don’t like Mormons in South Carolina and that’s why he didn’t do well last time. You backed him last time. Do you think there is anything to that?

    A – No. The people of South Carolina are good people. This will be very much like my election. It doesn’t matter if you are male or female or black or white, or what your religions is. What matters is what you are going to do to influences people’s lives… The person who communicates that the best and reaches out among everybody will win. I want to remind you that anybody who has won SC has gone on to win the Republican nomination. That is because South Carolina represents the country and all that is great about this country.

    Q – How much of the NLRB decision do you blame on President Obama?

    A – All of it. Absolutely all of it. He appointed Mr. Solomon to the NELB board. To sue a company just because they chose to expand into a right-to-work state is the biggest insult they could do to right to work state. They have picked the wrong state to mess with. I will tell you that this is a desperate attempt of the labour unions to get relevant and it’s just not going to work.

    Q – Would you be interested in being Vice President in 2012, on the ticket?

    A – No, everybody wants to talk about VP with me and what I tell them they need to be focused on the top of the ticket. We don’t have the luxury of talking about VP right now.

    Q – What would you say is your biggest accomplishment since becoming governor?

    A – For me, the biggest accomplishment is the fact that now every single legislator has to record their vote on record, that became law, and not only that, they have to show how they vote on every section of the budget. We went from being one of the weakest states on transparency to one of the strongest on accountability in the country and I’m incredibly proud of that.

    Q – But you took on many in your own party for that, though. Do you think you’ll pay for that down the road?

    A – No. Both parties have made mistakes. What we saw in last election is a chance for Republican party to define itself as conservatives again and to define itself about real issues again. That’s something I’m going to encourage through how I lead in South Carolina and something I’m going to encourage in how people talk to the presidential candidates.

  • South Carolina gears up for first Republican presidential debate tonight

    By Luiza Ch. Savage - Thursday, May 5, 2011 at 5:24 PM - 5 Comments

    Mitt Romney is not showing up. Nor is Sarah Palin, Jon Huntsman, Mike Huckabee, Michele Bachmann, or even Donald Trump. But tonight’s the first televised debate of the race for the Republican presidential nomination is taking place tonight regardless. The biggest name is former Minnesota governor Tim Pawlenty, who will have a chance to grab the national spotlight. No Republican has ever won the party’s presidential nomination without winning the primary in South Carolina. It’s an early primary state where and heavily-Republican one that serves as a litmus test of a candidate’s appeal to the party and to the American South.

    “I will tell you, anyone who ignores the State of South Carolina is making a big mistake,” South Carolina Governor Nikki Haley told reporters yesterday. Just ask Rudy Giuliani, the former New York City mayor whose attempt to win the nomination without campaigning in South Carolina was a bust. Romney and Trump are scheduled to appear in the state later this month, and Bachmann has been through. Huntsman is scheduled to give a commencement speech in the state on Saturday.

    David Wilkins, the former US ambassador to Canada and the former Speaker of the South Carolina legislature, said the issue for voters in the state’s Republican primary will be “the economy, jobs, deficits, out of control spending, and fiscal restraint.”

    At a round table with reporters at his Greenville law office, Wilkins recalled his time as chairman of the late Strom Thurmond’s senate campaign in 1996: “All we talked about was ‘Strom Thurmond brings home the bacon. Strom Thurmond brings home the goods,” he recalled. “Now that’s not what people want to hear. Now it’s: ‘What are you going to do to curtail spending?’” Indeed, Tea Party activists were holding a rally blocks away from the debate to press their small-government cause.

  • Next up: rush for perimeter security, regulatory harmonization

    By Luiza Ch. Savage - Tuesday, May 3, 2011 at 9:14 AM - 12 Comments

    With the Harper government winning a majority, expect a sense of urgency on moving ahead with the perimeter security and regulatory harmonization talks with the US. Harper campaigned on this issue and is being warned that the window to move ahead is closing as the presidential campaign cycle draws nearer.

    Working groups made up of senior officials from both  governments have been holding consultations with a variety of on what perimeter security and regulatory harmonization should look like. They are working on putting together “action plans” for the leaders. There are expectations for another Harper-Obama meeting this summer at which the leaders would approve the action plans and instruct their governments to implement them.

    The consultations in Canada have not been made public, but my story in Maclean’s rounds up some of the proposals the US government is receiving. They include some ambitious ideas such as a two-country visa,  mutual recognition of agricultural inspections, and cross-border embedding of customs inspectors, among many others.

    Story is here:

    The US and Canada — singing in harmony? US and Canadian groups are urging their governments to coordinate rules and ease restrictions

  • How bin Laden was caught and killed

    By Luiza Ch. Savage - Monday, May 2, 2011 at 9:49 AM - 11 Comments

    Below is a transcript of a briefing late last night in which White House officials explained how Osama bin Laden was tracked down at a high-security compound in Pakistan, built in 2005, with 12-18 foot walls topped with barbed wire, without telephone or Internet service, and where security measures included burning all the trash. The mastermind of 9/11 was killed in a 40-minute “surgical raid” that resulted in a fire fight and a downed helicopter. Three men and a woman were killed, but there were no US casualties.

    Continue…

  • Highlights from Canada WikiLeaks cables

    By Luiza Ch. Savage - Friday, April 29, 2011 at 11:33 AM - 1 Comment

    Here are a few interesting cables concerning Canada in the latest WikiLeaks release:

    - In late 2009, US diplomats questioned “optimistic” numbers in Harper budget, report that it leaves “some economists scratching their heads”: Cable.

    - In 2009, Canada and Obama official discussed oil sands PR strategy: US official suggested “additional fact-based, third party research, trends on energy efficiency improvements, and increasing visibility and accessibility of more positive news stories.” Cable.

    - In 2009, then federal environment minister told US ambassador that Ottawa would step in and regulate the oil sands if Alberta did not do enough: Cable.

    - In 2008, a US diplomat put together a cheeky “Christmas wish list” for Stephen Harper: Cable.

    - In 2008, the US expressed “frustration” at Canadian inaction on copyright law reform: Cable.

    - In 2007, US officials cast doubt on Canada’s contention that the border was “thickening”: Cable.

    - In 2003, US officials encounter broad support among Alberta government and oil executives for US invasion of Iraq, US officials “all but had to cut off pro-Washington, anti-Ottawa tirades”: Cable.

    
    								
    								
  • State Dept. gives good news to oil sands

    By Luiza Ch. Savage - Friday, April 15, 2011 at 4:55 PM - 5 Comments

    I have a story in this week’s magazine about why Alberta’s energy minister was wrong when he said Obama should “sign the bloody order” already to permit TransCanada’s proposed  Keystone XL pipeline that would bring oil sands crude from Alberta through the American mid-West to the Gulf Coast.

    There is a review process underway by the State Dept. looking at a variety of impacts of the pipeline — and the increase in imports that would accompany it. If Obama were to intervene in the review process, which was legislated by Congress, he would open the final decision up to litigation by environmental groups or other critics — and subject it to unknown delays.

    But it seems that Alberta may find some comfort in the massive Supplemental Environmental Impact Statement that the State Dept. issued today.

    TransCanada is still reading the report, but environmentalists are already attacking it. An Alberta business professor opines that it is full of good news for the oil sands.

    The executive summary suggests that State has not uncovered any major new issues since their previous review, which was judged inadequate by the US Environmental Protection Agency. The executive summary of today’s report says:

    Conclusions: The draft EIS provided information on key environmental issues to allow a full understanding of the analysis of environmental effects.  Although DOS received thousands of comments on a wide variety of topics addressed in the draft EIS during the comment period, no new issues of substance emerged from the comments received. DOS nonetheless determined that submitting the portions of the EIS that were revised to address the new and additional information and to address comments on the draft EIS for public and agency review would further the purposes of NEPA and prepared and issued this SDEIS.  However, the information provided in this SDEIS does not alter the conclusions reached in the draft EIS regarding the need for and the potential impacts of the proposed Project.

    Also, State did not grant environmental groups that additional 120 days for public hearings that they asked for.

    There will be 45 days for public comment, and then State will make a “National Interest Determination”, which will be subject to comment as well. State has said they will make a decision on the permit by the end of the year.

    ***

    On Twitter at luizachsavage

  • Obama: 'questions' about 'destructive' oil sands; Senator wants trade inquiry

    By Luiza Ch. Savage - Wednesday, April 6, 2011 at 5:21 PM - 7 Comments

    President Obama was asked about oil sands at an energy town hall today in Pennsylvania. He said it was a “good thing” to get oil from friendly and stable countries such as Canada, but said he would not pre-judge the State Department permit process for the proposed Keystone XL pipeline from Alberta to the Gulf Coast. He raised environmental concerns:

    “These tar sands, there are some environmental questions about how destructive they are, potentially, what are the dangers there, and we’ve got to examine all those questions.”

    More of his comments here.

    *

    Separately today, a US senator has asked the US Federal Trade Commission to investigate what he calls secret agreements among Canadian oil companies to drive up oil prices in the US.  Senator Ron Wyden, a Democrat from Oregon, asked the FTC:

    “…to investigate confidential agreements between seven Canadian oil companies planning to construct a pipeline from Canadian tar sands oil deposits to refineries in along the Gulf of Mexico, bypassing refineries in the Midwest. Should the pipeline be built, the result will drive up prices at those Midwest refineries and the cost will be transferred to gasoline consumers.”

    His press release and full letter here.

    ***

    On Twitter at luizachsavage

  • What would a U.S. government shutdown mean for Canada and Republicans?

    By Luiza Ch. Savage - Wednesday, April 6, 2011 at 12:14 PM - 4 Comments

    The U.S. government faces the possibility of a shutdown if House and Senate leaders cannot reach agreement over reauthorizing government spending by Friday. That would mean federal workers would be required to stay home and shut off their government issued cell phones. National Parks and the Smithsonian museums would close and the processing of paper federal tax returns would be suspended, among many other impacts.

    A senior administration official said this morning on a conference call with reporters that roughly 800,000 government jobs could be affected.

    The official said there would be various impacts on the U.S. economy. For example,  the shutdown would mean a freeze on processing of loan guarantees by the Federal Housing administration, which now account for one in three American mortgages. “Having the FHA unable to guarantee loans in this period will have a significant impact on the housing market that is very fragile.”  The processing of loans and loan guarantees by the Small Business Administration would also be suspended, the official said.

    The potential shutdown would not affect jobs that are considered essential to the protection of life and property such as law enforcement and uniformed military. But many civilian Pentagon employees would stay home. Continue…

  • US House to hear "Urgent case for Canadian oil"

    By Luiza Ch. Savage - Wednesday, March 30, 2011 at 5:03 PM - 7 Comments

    The US House of Representatives is having a hearing tomorrow entitled

    “Rising Oil Prices and Dependence on Hostile Regimes:
    The Urgent Case for Canadian Oil”

    Alberta’s Pembina Institute weighs in on the hearing and on Obama’s energy speech here.

  • Obama: Cut oil imports, but not from Canada

    By Luiza Ch. Savage - Wednesday, March 30, 2011 at 12:39 PM - 15 Comments

    In his speech today about reducing US oil imports by one-third in ten years, President Obama said the US would keep importing from Canada:

    Obama said: “obviously we’ve got to look at neighbors like Canada and Mexico who are steady and stable” and “we can share American know-how and technology with them”

    His prepared remarks said:

    “I set this goal knowing that imported oil will remain an important part of our energy portfolio for quite some time.  And when it comes to the oil we import from other nations, we can partner with neighbors like Canada, Mexico, and Brazil, which recently discovered significant new oil reserves, and with whom we can share American technology and know-how.”

    Full speech is here. It mostly concerns domestic measures for production and efficiency.

    Live video here.

    Washington Post background story here.

    ***

    On Twitter at luizachsavage

  • Parse this, Gadhafi

    By Luiza Ch. Savage - Tuesday, March 22, 2011 at 3:53 PM - 22 Comments

    From a White House transcript of a briefing by Ben Rhodes, Obama’s deputy national security advisor for strategic communications:

     

    Q    Ben, do you agree that the need to protect civilians lasts as long as Qaddafi is in power?

     

    MR. RHODES:  The need to protect civilians lasts as long as civilians are under risk of attack in the way in which we’ve seen them attacked over the course of the last several weeks.

     

    ***

    On Twitter at luizachsavage

  • Connect2Canada interviews me

    By Luiza Ch. Savage - Tuesday, March 8, 2011 at 10:01 AM - 1 Comment

    Turning the tables on this reporter, Connect2Canada has interviewed me about how I came to cover Washington for Maclean’s and to found my new website dedicated to tracking Canada-US relations, Bilateralist.com. You can listen to the podcast here. I’m honored!

    For whose that don’t know, Connect2Canada is a Website that aims to keep ex-pat Canadians, living in the United States, in touch with their roots through targeted news, events, social networking, as a rich array of information about what is happening in Canada in the form of email newsletters, website features and a variety of social media.  It’s run out of the Canadian Embassy in Washington with help from Canadian consulates around the US.  One of their periodic features is a podcast interview with Canadians in the US. Other recent interviews include a Canadian astronaut and the artistic director of the Cirque du Soleil.

    I had tried to profile the director for the Get to Know… section of Bilateralist, but there was a lot of discomfort in singling out any particular person as the face of the service because it’s such a collective enterprise. So instead we have a “Get to Know” profile of Connect2Canada itself. Apparently, it likes to drink ice wine.

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    You can follow me on Twitter at luizachsavage

     

From Macleans