Change is coming to President Barack Obama’s cabinet, as is typical for a second term. After the jump I’ve posted some links and recent news on possible appointees.

Any comments about the cabinet are welcome in this thread.

President Barack Obama went to Las Vegas yesterday to unveil his administration’s latest proposal to help homeowners facing possible foreclosure. About a quarter of all U.S. homeowners are “underwater,” which means their homes are not worth as much as they owe on their mortgages. Nevada has an extremely high foreclosure rate and suffered one of the worst boom-bust cycles in the housing market. It’s also a swing state in presidential elections, which made it a perfect venue for Obama yesterday. I wish his team were putting as much effort into crafting a housing policy that would help people.

Last week’s deal to raise the U.S. debt ceiling in exchange for long-term deficit reduction wasn’t what the doctor ordered to reassure investors. Stock markets around the world dropped sharply today, reflecting fears about lousy economic prospects in the U.S. and abroad.  

What’s on your mind this weekend, Bleeding Heartland readers?

Yesterday’s employment report was so awful (1 on a scale of 1 to 10) that a double-dip recession seems more likely than ever. At the Naked Capitalism blog, Edward Harrison reposted a piece from November 2009 on why Treasury Secretary Timothy Geithner and economic adviser Larry Summers would be President Barack Obama’s Dick Cheney and Donald Rumsfeld. It’s worth a read. At the Bonddad blog, New Deal Democrat went over lots of weekly indicators and found more evidence of an economic “stall” than a contraction (so far).

I’m still surprised by some of the bills that didn’t get through the Iowa legislature during this year’s extra-long session. I learned this week that Iowa wasn’t the only state where pro-nuclear legislation faltered. The nuclear industry failed to persuade lawmakers in five other state legislatures to advance favored bills. After the jump I’ve posted a press release from Nuclear Bailout, a project of Physicians for Social Responsibility. The Iowa chapter of Physicians for Social Responsibility lobbied hard against the bill written exclusively for the benefit of MidAmerican Energy.

In case you missed it, Iowa Senate Majority Leader Mike Gronstal and Minority Leader Paul McKinley reflected on the 2011 session during the July 1 edition of Iowa Public Television’s “Iowa Press” program. Click the link to read the transcript or watch the video. Both of them expect some progress on property tax reform next year, though they may get a crack at that sooner if Governor Terry Branstad calls a special legislative session later this year.

I’ll post Bleeding Heartland’s final news roundup on what passed and didn’t pass during the 2011 session after Branstad signs or vetoes the bills that reached his desk during the last week of June.

This is an open thread.

UPDATE: Best slip of the tongue I’ve heard this year: while phone-banking for Republican presidential candidate Michele Bachmann, State Senator Brad Zaun says he’s calling on behalf of “Congressman Boswell.” Democrat Leonard Boswell beat Zaun during the 2010 Congressional race in Iowa’s third district.

The Associated Press is reporting that President Barack Obama has selected William Daley as his next chief of staff. It appears that Howie Klein is right: Obama was able to pick an even worse top staffer than Rahm Emanuel. After running the White House staff for nearly two years, Emanuel recently resigned in order to run for mayor of Chicago.

Open Secrets posted a “Revolving Door” profile on Daley showing his employment history in government and as a lobbyist. More background on why Daley’s a terrible choice can be found after the jump.

The Atlantic’s Joshua Green thinks so:

I think Summers is going to leave sooner rather than later, possibly before the mid-term elections, and if not then, soon afterward.

Why? Because Summers is frustrated by his role, and his colleagues are clearly frustrated with him. Alexis Simendinger had a devastating item in last week’s National Journal suggesting that Summers’s “legendary self-regard” and “ego the size of the national debt” had gotten out of control. Some of Summers’s frustration no doubt stems from his wanting to be Treasury secretary. When that plum went to Geithner, Summers cast his eye on the Fed chairmanship and agreed to bide his time until Ben Bernanke’s term ended at the NEC–a staff position well below his old job as Clinton’s Treasury secretary. Most administration officials tactfully avoid pointing this out, because Summers has a fragile ego. But that’s why Joe Biden is so great. “How many former Secretaries of the Treasury would come in not as Secretary of the Treasury?” Biden blurted out to the New Yorker’s Ryan Lizza last fall.

But Summers didn’t get the Fed job either. Apparently that didn’t sit well. Administration insiders told Simendinger that Summers demanded a series of perks as compensation, including cabinet status, golf dates with the president, and a personal car and driver. In the “No Drama” Obama administration, such behavior stands out.  […]

Summers always seemed a bad fit for NEC director because the job entails dispassionately presenting the president with the counsel of his competing economic advisers. Summers doesn’t do “dispassionate” and he didn’t want to limit himself to fielding others’ advice–he had plenty of his own to offer. In other words, he was supposed to be the referee, but he also wanted to play power forward.

Summers was one of President Obama’s worst appointments, in my opinion, but I wouldn’t expect the president to reshuffle his economic team unless a mostly-jobless recovery continues, or the worst-case scenario of a douple-dip recession develops. Anyway, Summers’ departure wouldn’t herald a real change in economic policy if Green is right about Timothy Geithner being “ever more secure at Treasury.”

What do you think, Bleeding Heartland readers?

UPDATE: Cenk Uygur asks and answers a very good question: Why is Fox News leaving Geithner alone?

Let’s hope the latest scandalous revelation about Timothy Geithner will bring a rapid end to his service as Treasury secretary:

Jan. 7 (Bloomberg) — The Federal Reserve Bank of New York, then led by Timothy Geithner, told American International Group Inc. to withhold details from the public about the bailed-out insurer’s payments to banks during the depths of the financial crisis, e-mails between the company and its regulator show.

AIG said in a draft of a regulatory filing that the insurer paid banks, which included Goldman Sachs Group Inc. and Societe Generale SA, 100 cents on the dollar for credit-default swaps they bought from the firm. The New York Fed crossed out the reference, according to the e-mails, and AIG excluded the language when the filing was made public on Dec. 24, 2008. The e-mails were obtained by Representative Darrell Issa, ranking member of the House Oversight and Government Reform Committee.

The New York Fed took over negotiations between AIG and the banks in November 2008 as losses on the swaps, which were contracts tied to subprime home loans, threatened to swamp the insurer weeks after its taxpayer-funded rescue. The regulator decided that Goldman Sachs and more than a dozen banks would be fully repaid for $62.1 billion of the swaps, prompting lawmakers to call the AIG rescue a “backdoor bailout” of financial firms.

“It appears that the New York Fed deliberately pressured AIG to restrict and delay the disclosure of important information,” said Issa, a California Republican. Taxpayers “deserve full and complete disclosure under our nation’s securities laws, not the withholding of politically inconvenient information.” […]

Barney Frank, a Massachusetts Democrat and chairman of the House Financial Services Committee, said the e-mail exchanges were “troubling” and that he supports holding congressional hearings to review them.

I’ve been hoping for the last year that President Obama would ditch Geithner sooner rather than later. President Obama didn’t react publicly to the November report from the Office of the Special Inspector General for the Troubled Asset Relief Program, which slammed Geithner’s conduct during the AIG bailout. But it’s clear that Geithner wasn’t looking out for the public interest in his last job and never should have been promoted to his current position.  

Following up on the diary I posted this morning, this post compiles links to Bleeding Heartland’s coverage of national politics from July through December 2009. Health care reform was again the number one topic. I wish there had been a happy ending.

It took me a week longer than I anticipated, but I finally finished compiling links to Bleeding Heartland’s coverage from last year. This post and part 2, coming later today, include stories on national politics, mostly relating to Congress and Barack Obama’s administration. Diaries reviewing Iowa politics in 2009 will come soon.

One thing struck me while compiling this post: on all of the House bills I covered here during 2009, Democrats Leonard Boswell, Bruce Braley and Dave Loebsack voted the same way. That was a big change from 2007 and 2008, when Blue Dog Boswell voted with Republicans and against the majority of the Democratic caucus on many key bills.

No federal policy issue inspired more posts last year than health care reform. Rereading my earlier, guardedly hopeful pieces was depressing in light of the mess the health care reform bill has become. I was never optimistic about getting a strong public health insurance option through Congress, but I thought we had a chance to pass a very good bill. If I had anticipated the magnitude of the Democratic sellout on so many aspects of reform in addition to the public option, I wouldn’t have spent so many hours writing about this issue. I can’t say I wasn’t warned (and warned), though.

Links to stories from January through June 2009 are after the jump. Any thoughts about last year’s political events are welcome in this thread.

Members of the House Populist Caucus, chaired by Representative Bruce Braley (IA-01), held a press conference on Thursday to endorse a bill that would “assess a small fee on Wall Street day traders to pay down the national deficit and invest in America’s middle class families.”

Details about the bill are after the jump.

The Office of the Special Inspector General for the Troubled Asset Relief Program released a report yesterday on last year’s government bailout of the insurance giant AIG. Timothy Geithner headed the Federal Reserve Bank of New York at the time, and he failed miserably.

President Barack Obama’s cabinet is complete just in time for his 100th day in office, now that the Senate has confirmed Kansas Governor Kathleen Sebelius for Health and Human Services secretary by a vote of 65 to 31. Senator Chuck Grassley joined most of his Republican colleagues in voting no, citing her ties to George Tiller, a Kansas doctor who performs late-term abortions.

When Obama picked Sebelius I didn’t expect her confirmation to become controversial, since she is a popular Democratic governor in a conservative state. (Both of the Republican senators representing Kansas voted to confirm Sebelius.) However, anti-abortion groups have been fighting the nomination because when asked how much money Dr. Tiller had donated to her, Sebelius initially reported only his contributions to her campaign funds and not his contributions to her political action committee.

For a time Republicans threatened to filibuster Sebelius’s nomination, but they never appeared to have the votes to support a filibuster. Grassley indicated last week that although he opposed Sebelius, he would not have backed a filibuster of her nomination.

Republicans did manage to hold up her confirmation vote for a while. The silver lining behind that obstructionist cloud was that Sebelius remained governor long enough to veto a bill that would have paved the way for two huge coal-burning power plants in Kansas.

Sebelius’s 31 no votes in the Senate make her the second most-controversial Obama cabinet member. Treasury Secretary Timothy Geithner was opposed by 34 senators, including both Grassley and Tom Harkin.

Earlier this year it seemed that Republican opposition would be strongest to Obama’s choice for attorney general, but Eric Holder drew only 21 no votes in the Senate. Grassley voted to confirm Holder despite some doubts, saying he was influenced by his (then Republican) colleague Arlen Specter.

Grassley also voted for the fourth most controversial Obama nominee, Labor Secretary Hilda Solis. Seventeen Republican senators voted against her confirmation.

I was against the Wall Street bailout from the beginning, but hoped to be wrong about what it would achieve.

Unfortunately, it’s turned out like I expected–a huge taxpayer giveaway that has does nothing to get credit flowing or stabilize the banking sector.

Read this piece by bobswern and explain to me why President Obama is letting Treasury Secretary Timothy Geithner and economic adviser Larry Summers steer him in this disastrous direction. Obama is too smart not to be able to figure out what’s wrong with continuing the expensive, accountability-free Bush policy.

More links to commentaries on the corporate bailouts are in this diary by Jerome Armstrong.

Mark my words: later this year, Washington pundits and so-called “centrist Democrats” who claimed we had to “do something” to save the banking sector will warn us that we can’t afford universal health care reform.

Remember how urgent it was for Congress to approve the Wall Street bailout last fall to free up credit? Not surprisingly, things didn’t work out that way:

A new report out of the Treasury Department Tuesday confirmed what many lawmakers, housing advocates, small businesses and individual consumers have known all along: That despite hundreds of billions of dollars flowing from Washington to the finance industry, bank lending among recipients of the Troubled Asset Relief Program fell in the last three months of 2008.

Among the 20 largest TARP recipients, median mortgage and business lending both fell by 1 percent over that span, Treasury found, while median credit card lending rose 2 percent, “reflecting greater reliance on existing credit lines by consumers.”

The findings were based on a survey of the 20 banks receiving the most federal help under the TARP, and marks the first in what will be a series of monthly reports analyzing the lending trends among bailed-out banks.

It would be nice to know what the banks are doing with the bailout money, but they don’t want to tell anyone.

How disappointing that Barack Obama’s Treasury Secretary Timothy Geithner wants to continue the misguided effort begun by George Bush’s Treasury Secretary, Henry Paulson.

Here are some more links on why Geithner’s plan “fails on almost every level.” Excerpt:

Robert Kuttner offers a strong analysis of Geithner’s strategy to salvage the banking industry in The American Prospect, noting that Geithner is explicitly avoiding the simplest and cheapest solution in favor of propping up the current Wall Street regime. The current plan is designed to support a financial architecture that has proven completely ineffective in maintaining the nation’s basic economic functions.

Someone who works for a non-profit organization told me last week that he has filled out a detailed six-page application for a $1,000 federal grant, while Geithner wants to get $350 billion on the basis of a vague two-page proposal.

Josh Marshall notes that “a lot of key political appointments at the Treasury haven’t been made yet, let alone been confirmed.” He takes a stab at explaining why:

one of the big issues is that it’s actually hard to find people with the requisite knowledge of banks and the capital markets who aren’t also compromised — either in policy or business terms — by the housing bubble and the rest of the financial collapse. And that raises again as a question: why have none of the people who were financial orthodoxy dissidents and saw what was coming been brought in to the administration. I know I’m hardly the first one to bring this up. And we know that the big appointees — Summers and Geithner — were part of the mix. But there aren’t even any of them further down into the appointment structure. They’re all still on the outside.

Disturbing.

When Barack Obama nominated Timothy Geithner for Treasury Secretary and appointed Larry Summers to be the chief presidential economics adviser, I became very worried. Summers had a hand in some of Bill Clinton’s deregulation policies that have contributed to our current economic problems, and Geithner was a key architect of the Wall Street bailout last fall.

Here and at other blogs, some commenters urged me to “give Obama a chance–he hasn’t even been inaugurated yet.”

Geithner confirmed my worst fears today when he rolled out the new-and-improved bailout plan (using the second $350 billion tranche from the Troubled Assets Relief Program). Economist James Galbraith came up with the name Bad Assets Relief Fund (BARF) to describe Geithner’s plan.

Other bloggers have already explained why Geithner’s proposal is an unimaginably pricey gift to Wall Street bankers at the expense of the public interest. This diary by MyDD user bobswern hits all the main points, drawing on a front-page story in the New York Times and other sources.

Writing about how Geithner prevailed over presidential advisers like David Axelrod, who wanted to attach more strings to the taxpayer money Wall Street bankers would receive, David Sirota observed,

Interestingly, the divide inside the administration seems to hearken back to a divide discussed very early on in the formation of the administration – the one whereby progressives were put in strictly political positions, and zombie conservatives were put in the policymaking positions. In this case, more progressive politicos like Axelrod was overruled by corporate cronies like Geithner.

The good news is that at least there seems to be something of a debate inside the administration, however tepid. The bad news is what I and others predicted: namely, that progressives seem to have been ghettoized into the political/salesmanship jobs, the conservative zombies shaping policy aren’t interested in having any debate with them. Worse, we’re now learning that those zombies are as rigidly ideological as their initial policies seemed to suggest.

I stand by my prediction that Geithner will turn out to be one of Barack Obama’s worst appointments. I can’t fathom why Obama wants to “own” the very worst aspects of the Bush administration’s failed Wall Street bailout, while also depriving the government of cash needed for other domestic priorities.

The stock market fell sharply today, perhaps because investors have no confidence in Geithner’s scheme and perhaps because the compromise stimulus bill that passed the U.S. Senate came straight out of bizarro world (do click that link, you’ll enjoy it).

I hope Obama will recognize his mistake and let Geithner and Summers go within a year or so, but they’re already poised to do plenty of damage to his administration.

Speaking of bad appointments, isn’t it amazing that Obama didn’t even make Senator Judd Gregg of New Hampshire promise to vote for the stimulus bill in exchange for being named Commerce Secretary? Why would you put someone in a cabinet position with influence over economic policy if that person doesn’t even support the president’s stimulus plan?

Apparently Obama’s also considering making a lobbyist for the Chamber of Commerce the main presidential adviser on judicial appointments. I’ve long anticipated that judges appointed by Obama would be corporate-friendly, pro-choice moderates in the Stephen Breyer mode, but I never imagined that a Chamber of Commerce lobbyist would be in a position to recommend only judges who would favor business interests.

If Tennessee Governor Phil Bredesen becomes Secretary of Health and Human Services, the Obama-Biden magnet is coming off my car.

The U.S. Senate confirmed Timothy Geithner as Treasury Secretary today by a vote of 60 to 34, but as you can see from the roll call, both of Iowa’s senators voted no.

Grassley was joined by 29 other Republicans. He voted against Geithner in the Senate Finance Committee a few days ago, citing the nominee’s failure to fully meet his tax obligations during some previous years.

Harkin was one of only three Senate Democrats to vote against confirming Geithner. According to the Des Moines Register,

Harkin voiced concerns about Geithner’s failure to pay some income taxes several years ago, amounting to about $34,000. […]

Harkin also said Geithner was at fault for how some of the $700-billion financial rescue money, authorized by Congress in October, was spent. Harkin voted for the bailout, but said later he would have voted against it had he known the money would go to banks, rather than to buy bad loans.

Geithner was a key figure in the crafting and administering of the money as the president of the Federal Reserve Bank of New York. In the post, Geithner also was partly to blame for the financial meltdown, which stemmed from inadequate regulation, Harkin argued.

“Mr. Geithner made serious errors of judgment in failing to pay his taxes, and he made serious errors in his job as chief regulator of the financial institutions at the heart of the current financial crisis,” Harkin said in a statement released after the vote.

I am surprised that so many senators voted against Geithner. I stand by my opinion that if he were not a white male, the tax problems would have sunk his nomination.

Speaking of Senate confirmations, some Republican has reportedly put an anonymous hold on the nomination of Hilda Solis as Labor Secretary. I called Grassley’s office today, and a staffer told me it wasn’t him.

Will President Barack Obama go to the mat to get Solis confirmed? Will the Republicans filibuster this strong supporter of workers’ rights and the Employee Free Choice Act?

I had assumed that Attorney-General designee Eric Holder would be the cabinet appointment most fiercely opposed by Republicans, but perhaps it will be Solis.

UPDATE: Geithner’s actions during his first day on the job are not encouraging. I believe he will turn out to be one of Obama’s worst appointments.

Senator Chuck Grassley voted against Timothy Geithner’s nomination for Treasury Secretary today:

Grassley had praised Geithner for being qualified for the job and for apologizing for his failure to pay $34,000 in income taxes several years ago. But Grassley said he gave inconsistent answers during his testimony to the committee during his confirmation hearing Wednesday.

“The explanations for irregularities have ranged from statements that he should have known, to proclamations that if only his accountants had warned him he would have done the right thing,” Grassley said in a statement released after the committee vote.

“I received a message yesterday from a constituent in Dubuque expressing concern about this nomination. The constituent wrote, ‘If the man cannot handle his own finances, how is he going to handle the country’s?’ “

Geither will be confirmed easily by the full Senate. Only four other Republicans on the Senate Finance Committee joined Grassley in voting against him.

I am surprised that Grassley voted against Geithner, given that the Wall Street establishment is uniformly behind this nomination.

I wasn’t crazy about this pick because of Geithner’s role in the bailout. The Des Moines Register makes clear that Grassley did not oppose Geithner for that reason.

I think it’s reasonable for people to object when the prospective head of the Treasury Department did not fully meet his tax obligations for several years in a row. I also suspect that if Geithner were not a white male, a lot more senators would view his past tax problems as disqualifying.

I expect all of Obama’s cabinet appointments to be confirmed, with Eric Holder perhaps getting the most “no” votes for Attorney General.

Interestingly, only two Republicans voted against confirming Hillary Clinton as Secretary of State yesterday.

The Senate unanimously confirmed Secretary of Agriculture Tom Vilsack and five other Obama appointees on Tuesday.  

Tom Vilsack appears to be on track for unanimous confirmation by the Senate as Secretary of Agriculture in Barack Obama’s cabinet. At his confirmation hearing yesterday, Republicans didn’t ask hostile questions, and Vilsack didn’t have to explain away any embarrassing behavior like Treasury Secretary-nominee Timothy Geithner’s failure to fully meet his tax obligations over a period of years.

Despite the lack of drama, Vilsack made a number of noteworthy comments during the hearing. Here are some highlights.

Vilsack told senators on Wednesday that

The Obama administration wants to accelerate the development of new versions of biofuels made form crop residue and non-food crops such as switchgrass. The plants’ fibrous material, or cellulose, can be converted into alcohols or even new versions of gasoline or diesel.

“Moving toward next-generation biofuels, cellulosic ethanol, is going to be really important in order to respond” to concerns about the impact on food prices of using grain for fuel, he said.

Vilsack addressed a range of other issues, pledging, for example, to promote fruit and vegetable consumption and promising to ensure that any new international trade agreement is a “net plus for all of agriculture.”

It makes a lot of sense to produce ethanol from perennial plants that are less energy-intensive to grow and need fewer herbicides, pesticides and fertilizer than corn.

Vilsack’s opening statement also

promised swift implementation of the Conservation Stewardship Program (CSP) which, alone among farm bill conservation programs, has languished under the Bush Administration since passage of the 2008 Farm Bill last May.

A little later during the hearing, Vilsack described the Conservation Stewardship Program as important for the environment and cited its potential to boost farm income and create jobs.

By the way, Vilsack’s disclosure documents show that he collects payments from the US Department of Agriculture on some Iowa farmland he and his wife own:

The former Iowa governor and his wife, Christie, have been receiving payments since 2000 for an acreage in Davis County that is enrolled in the land-idling Conservation Reserve Program, according to USDA data compiled by the Environmental Working Group.

In a Jan. 8 letter to USDA ethics officials, Vilsack said he would seek a waiver to continue receiving CRP payments while he is secretary. Otherwise, experts said, he would have to break his contract and reimburse the USDA for all previous payments he has received, which would total nearly $60,000.

Craig Cox, Midwest vice president of the Environmental Working Group, a research and advocacy organization, welcomed having an agriculture secretary who receives conservation payments.

At a time “when simultaneously protecting our soil, water, wildlife habitat and climate is an urgent priority, it is encouraging that our new secretary of agriculture is personally participating in a conservation program that does just that,” he said.

I’m with Cox; it’s good for the secretary of agriculture to have first-hand knowledge of the conservation reserve program’s value.

Earlier this week the Register published an article on the opening statement Vilsack prepared for his confirmation hearing:

Tom Vilsack is promising to use the U.S. Department of Agriculture to “aggressively address” global warming and energy independence.

In an opening statement prepared for his Senate confirmation hearing on Wednesday, President-elect Barack Obama’s nominee for agriculture secretary also said he would use the department to “create real and meaningful opportunities” for farmers and to guarantee that rural communities grow and prosper. […]

Vilsack, a former mayor of Mount Pleasant, also said rural communities continue to lose population and “find it increasingly difficult to keep pace with the ever-changing national and global economy.”

He pledged to try to resolve the long-standing civil rights claims against the department.

“If I’m confirmed, the message will be clear: discrimination in any form will not be tolerated,” Vilsack said.

After reading that Register article, La Vida Locavore’s Jill Richardson commented,

I want to see our subsidy structure change to reward farmers for sustainability instead of yield. I want the government to ease the financial risk on any farmer transitioning to organic because it appears to me that being an organic farmer isn’t so bad on your bank account, but transitioning alone might break several farmers financially. I want to outlaw CAFOs altogether. But will Vilsack do this? Let me just say this: I am so confident he won’t that I promise now to entirely shave my head if he DOES do each of these 3 things.

I think we can all agree that Jill is not going to look like Sinead O’Connor anytime soon. I totally agree with her first two suggestions. As for CAFOs, it’s not realistic to expect them to be banned, but I believe they would be greatly reduced in number and size (over time) if government policy made them pay for the harm they cause.

On a more encouraging note, I read this at the U.S. Food Policy blog:

Some highlights included Vilsack’s encouragement of locally grown fruits and vegetables and pronouncement that they should be grown not just in rural areas, but everywhere. He announced that he met with Health and Human Services nominee Tom Daschle last week in order to demonstrate the importance of working together for nutrition. “It’s going to be important for us to promote fresh fruits and vegetables as part of our children’s diets. . .that means supporting those who supply those products” and making it easier for consumers to buy locally grown products, Vilsack said.

Maybe Vilsack and Daschle will take some of Angie Tagtow’s excellent advice on how their agencies can work together to improve human health. I would also encourage them to read this recent piece by Steph Larsen: “For healthy food and soil, we need affordable health care for farmers.”

I am curious about what Vilsack means by “supporting those who supply” locally-grown fresh fruits and vegetables. One problem with our current agricultural policy is that commodity farmers lose all federal subsidies if they put more than two acres into growing fruits or vegetables. Apparently that was the price needed to get California’s Congressional delegation to vote for various farm bills over the years. Even though almost no subsidies go directly to California farmers, this penalty limits the competition California growers might otherwise face from Midwestern farmers.

So, very little of the produce consumed by Iowans is grown in Iowa, and our grocery stores are full of produce trucked in from thousands of miles away. Most of the crops Iowa farmers grow are inedible for humans without processing.

A few years back the Leopold Center for Sustainable Agriculture at Iowa State University published a report on “Food, Fuel and Freeways.” It showed how far food travels to Iowans and how much Iowans could reduce greenhouse-gas emissions if we increased the proportion of locally-grown food in our diets to even 10 percent of what we eat.

Getting back to the Vilsack hearing, members of the Senate Agriculture, Nutrition and Forestry Committee made some notable comments yesterday. who questioned Vilsack made some notable comments on Wednesday. Iowa’s own Tom Harkin, who chairs the committee, gave Vilsack a warm welcome:

“I just couldn’t be more proud to see you sitting there. I don’t think President-elect [Barack] Obama could have picked a better person for this position,” Harkin said.

Harkin also discussed federal child nutrition programs:

Agriculture Chairman Tom Harkin , D-Iowa, said reauthorization of a law (PL 108-265) governing school lunches and other child nutrition programs “is really the only thing that we have to do this year.” […]

During the hearing, Harkin said he will propose that the Department of Agriculture use Institute of Medicine guidelines to set standards for junk food sold in schools. Current USDA school food standards exempt most snack foods, because they aren’t a part of subsidized lunches.

During the last renewal of the child nutrition act, then-Gov. Vilsack wrote a letter to lawmakers and the Bush administration expressing concern about childhood obesity and the problem of vending machine snacks that compete with school meals.

At the time, Vilsack backed limits on the kinds of snacks and beverages students can buy outside the lunch line. Nutrition advocates want junk food kicked out of schools, but many schools use the cash from sales to cover the rising costs of meal services.

(Side note: the state of Iowa is now considering banning the sale of junk food in public schools.)

Meanwhile, Iowa’s Republican Senator Chuck Grassley urged Vilsack to act quickly on several other fronts, including rule-making that would protect smaller volume livestock producers. Also, Grassley and Democratic Senator Byron Dorgan of North Dakota wrote an open letter to Vilsack asking him to close a loophole affecting commodity program payment limits. Ferd Hoefner, Policy Director of the National Sustainable Agriculture Coalition, explains that “This particular loophole is the single most important one allowing mega farming operations to collect payments in multiples of what otherwise appears to be the statutory dollar limit.”

According to Hoefner,

Another former chairman, Pat Leahy (D-VT), weighed in with a comment that the Department is not keeping up with the rapid growth of organic and then with a question asking whether it wasn’t time for the Department to get on with the business of actually actively promoting organic.  Vilsack said we need to “celebrate and support” organic and USDA should view it as one very legitimate option in a menu of options for improving farm incomes.  Then, in response to an extended monologue from Senator Pat Roberts (R-KS) deriding organic as marginal, Vilsack held his ground, but diffused the implied antagonism, saying the Department needs to support the full diversity of American agriculture.

The Ethicurean blog published an excerpt of Roberts’ insult to “small family farmers”:

That small family farmer is about 5’2″ … and he’s a retired airline pilot and sits on his porch on a glider reading Gentleman’s Quarterly – he used to read the Wall Street Journal but that got pretty drab – and his wife works as stock broker downtown. And he has 40 acres, and he has a pond and he has an orchard and he grows organic apples. Sometimes there is a little more protein in those apples than people bargain for, and he’s very happy to have that.

How disappointing that an imbecile like this could easily get re-elected in Kansas. Roberts’ caricature does not resemble any of the sustainable farmers I know. They work just as hard as Roberts’ idealized “production agriculture farmer” but don’t receive any federal subsidies, despite growing high-quality food and being good stewards of the land.

If you haven’t already done so, please go to the Food Democracy Now site and sign their new petition recommending 12 good candidates for undersecretary positions at the USDA. These will be important appointments, since Vilsack won’t single-handedly be setting the USDA’s policy direction.

The Center for Rural Affairs has also launched a petition worth signing, which urges Vilsack to implement a number of programs that would benefit farmers and rural economies.

Apologies for not getting this thread posted yesterday, when President-elect Barack Obama unveiled his economic team.

On the plus side, there are no incompetent hacks in this group. I’ve heard particularly good things about Peter Orszag’s work at the Congressional Budget Office, and he will produce reliable numbers at the Office of Management and Budget.

People I respect speak quite highly of Melody Barnes, who will run Obama’s Domestic Policy Council.

Also, it’s encouraging that Obama is committed to a major stimulus bill that will focus on infrastructure investments. I’ll reserve further judgment until we see more specifics about Obama’s plans, because spending $350 billion on stuff worth doing is a lot better than spending $350 billion on boondoggles.

I also agree with Matthew Yglesias that if you’re going to throw tens of billions of dollars at the economy, high-speed rail in the Midwest would be an excellent place to start. (UPDATE: Senator John Kerry has introduced a major bill that would promote high-speed rail development across the country.)

On the down side, since I opposed the series of Wall Street bailouts we’ve been seeing this fall, I’m not thrilled to see Timothy Geithner as Treasury Secretary and Larry Summers as chief of the National Economic Council. During Bill Clinton’s presidency, I wanted economic policy to be more in the direction that Labor Secretary Robert Reich was proposing, but Clinton and now Obama are clearly favoring the approach of Clinton’s Treasury Secreatry, Robert Rubin. Almost everyone on Obama economic team has close ties to Rubin.

I think Bill Richardson will do fine at the Commerce Department, but I would have preferred to see him in a different cabinet position.

If you were one of those Obama supporters who claimed during the primaries that he would govern in a much more progressive way than Hillary Clinton, now would be a good time to rethink your views.

Meanwhile, George W. Bush’s team is taking care of one troubled financial firm after another. The latest bailout plan, for Citigroup, is a particularly bad deal for taxpayers, according to Paul Krugman (who reluctantly supported the $700 billion bailout package approved before the election).

What do you think about the team Obama is assembling to handle the economy?

UPDATE: The members of the New York Times editorial board are not wild about putting Geithner and Summers in charge:

As treasury secretary in 2000, Mr. Summers championed the law that deregulated derivatives, the financial instruments – a k a toxic assets – that have spread the financial losses from reckless lending around the globe. He refused to heed the critics who warned of dangers to come.

That law, still on the books, reinforced the false belief that markets would self-regulate. And it gave the Bush administration cover to ignore the ever-spiraling risks posed by derivatives and inadequate supervision.

Mr. Summers now will advise a president who has promised to impose rational and essential regulations on chaotic financial markets. What has he learned?

At the New York Fed, Mr. Geithner has been one of the ringmasters of this year’s serial bailouts. His involvement includes the as-yet-unexplained flip-flop in September when a read-my-lips, no-new-bailouts policy allowed Lehman Brothers to go under – only to be followed less than two days later by the even costlier bailout of the American International Group and last weekend by the bailout of Citigroup.

It is still unclear what Mr. Geithner and other policy makers knew or did not know – or what they thought they knew but didn’t – in arriving at those decisions, including who exactly is on the receiving end of the billions of dollars of taxpayer money now flooding the system.

Confidence in the system will not be restored as long as top officials fail or refuse to fully explain their actions.

The more I think about it, the more I think Hillary Clinton should stay in the Senate. However, most analysts are speculating she will accept Barack Obama’s offer to become Secretary of State. Here’s a roundup of recent coverage on the appointment.

Tom Harkin thinks Hillary will be secretary of state, and he likes the idea:

Harkin said he was confident that former President Bill Clinton would not pose conflicts, as he’s agreed to make public the donors to his foundation and clear his travel schedule and speeches with the Obama administration, should his wife become secretary of state.

“If he’s willing to do whatever the Obama team and the president wants – and he should understand it, he’s a former president – that would be fine,” Harkin said.

He also said Obama naming her would be a demonstration of unity to the world. Sen. Clinton and Obama waged an intense, six-month campaign for the Democratic presidential nomination this year.

“I think it would send a good signal to the world if Hillary Clinton were secretary of state,” Harkin said. “The signal it sends to the world is we can have big fights politically here in the United States and yet after the election’s over, we pull together.”

Where does that leave Bill Richardson? I hope he ends up in the cabinet. UPDATE: ragbrai08 has heard rumblings Richardson might become Secretary of the Interior, which would be a decent fit for him.

Kia Franklin of the Drum Major Institute wrote an interesting piece on Eric Holder, the likely attorney general, and where he stands on civil justice issues.

John Crabtree of the Center for Rural Affairs blog offers “A Different View of [Tom] Vilsack,” the front-runner to run the U.S. Department of Agriculture:

It is difficult, if not impossible, to predict when, where and from whom leadership will emerge. The book on Tom Vilsack is not complete, and perhaps that is a good thing. He does not get a perfect score on my litmus tests. But, when I disagree with him in the future I will continue to engage him, just as I always have, whether he is a private citizen or the Secretary of Agriculture. And he will engage me, just as he always has.

I hope that, at the end of the day, our next Secretary of Agriculture is the kind of leader that can help create a future for rural America with thriving family farms and ranches and vibrant rural communities. I believe Governor Vilsack can provide that leadership. Perhaps he just might get the chance.

James L. of Swing State Project is concerned that Obama might choose either Representative Stephanie Herseth-Sandlin or Representative Collin Peterson for the USDA job. Both are from Republican-leaning districts that would be hard for a different Democrat to hold.

Obama supposedly was leaning toward offering the Commerce Department position to uber-fundraiser Penny Pritzker, but she withdrew her name from consideration.

Haven’t heard much about a possible secretary of transportation. Obama supports greater investment in core infrastructure as well as high-speed rail and public mass transit, so I am hopeful he will put someone with vision in charge of this department. The highway bill comes up for reauthorization in 2009 and is sure to be one of the major battlegrounds in Congress.

Still no word on a Treasury Secretary. Matt Stoller remembered another reason why Larry Summers is wrong for the job.

Most people seem to think Robert Gates will stay on as Defense Secretary. I don’t see why Obama can’t appoint a Democrat for that position. We have plenty of qualified people in our party. Keeping the Republicans in charge of defense supports their propaganda that the GOP is best for defending the country.

The Mayor of Miami, Manny Diaz, is being considered either for Transportation or for Housing and Urban Development. Representative Jim Clyburn of South Carolina is not interested in the HUD appointment.

Share your opinions or predictions in the comments.

UPDATE: Why does Obama want to reinforce Republican stereotypes about how they’re the only ones who can handle national security? Now General Jim Jones, a supporter of the Iraq War and John McCain, is tipped to run the National Security Agency. That is just crazy. Put some Democrats in charge, please. It’s not as if we don’t have people who could do this job well. I would not be surprised if Jones undermines Obama in this position.

UPDATE 2: The New York Times says Hillary Clinton will take the Secretary of State job.

Several news outlets are saying Timothy Geithner, about whom I know nothing, will be Obama’s Treasury Secretary nominee. Geithner is president of the Federal Reserve Bank of New York.

NBC News says Bill Richardson will be Commerce Secretary. I don’t like him nearly so much for that job as I would like him for Secretary of State, Transportation, or Interior. Richardson’s a corporate Democrat, judging from his record in the 1990s. He ran the whip to get NAFTA through the House during Bill Clinton’s first term.

Still no progressives in Obama’s cabinet.

UPDATE 3: My brother, who works in the investment field and is much more of a moderate Democrat than I am, is “sick” about the prospect of Geithner running Treasury. His other comment about Geithner is not printable at this blog.

UPDATE 4: This is from a speech Geithner gave in May 2006:

Credit derivatives have contributed to dramatic changes in the process of credit intermediation, and the benefits of these changes seem compelling. They have made possible substantial improvements in the way credit risk is managed and facilitated a broad distribution of risk outside the banking system. By spreading risk more widely, by making it easier to purchase and sell protection against credit risk and to actively trade credit risk, and by facilitating the participation of a large and very diverse pool of non-bank financial institutions in the business of credit, these changes probably improve the overall efficiency and resiliency of financial markets.

With the advent of credit derivatives, concentrations of credit risk are made easier to mitigate, and diversification made easier to achieve. Credit losses, whether from specific, individual defaults or the more widespread distress that accompanies economic recessions, will be diffused more broadly across institutions with different risk appetite and tolerance, and across geographic borders. Our experience since the introduction of these new instruments-a period that includes a major asset price shock and a global recession-seems to justify the essentially positive judgment we have about the likely benefits of ongoing growth in these markets.

Despite the benefits to financial resilience, the changes in the credit markets that are the subject of your conference have also provoked some concerns and unease, even among those on the frontier of innovation and the most active participants in these markets.

These concerns are based in part on uncertainty-a candid acknowledgment that there is a lot we do not yet know about how these instruments and the increased role of nonbank institutions in these markets will affect how the financial markets are likely to function in conditions of stress.  […]

Let me conclude by reiterating the fundamental view that the wave of innovation underway in credit derivatives offers substantial benefits to both the efficiency and stability of our financial system.

Hmmm, he didn’t seem to have seen any of the current problems coming. Also, he apparently was involved in the bailout negotiations. So it seems like this is a very status quo pick for Obama.

On an even less encouraging note, Obama’s leading candidate to run the CIA is a “Bush-Cheney apologist.”

That’s not exactly “change we can believe in.”

UPDATE 5: Two people on Obama’s short list would both be highly competent and celebrated by progressives: Representative Raul Grijalva for Interior (he heads the House Progressive Caucus) and former Representative David Bonior for Labor (he has close ties to organized labor).