Week in Review 7/17/10

RALEIGH — The first tax under ObamaCare is a 10 percent sales tax on indoor tanning salons. The Patient Protection and Affordable Care Act required tanning salons to start collecting the tax July 1. However, business owners across the country are unsure of details related to the tax, because the IRS released its rules only weeks before the deadline.

The influential American Academy of Dermatology pushed for the inclusion of the tax, which is projected to collect $2.7 billion over 10 years. But the academy hopes individuals will stop patronizing indoor tanning salons altogether, which would result in the collection of no tax revenues.

To watch CarolinaJournal.tv's full report on the tanning tax, click on the video.

Rev. Peterson Repudiates NAACP’s Anti-Tea Party Resolution and Blasts Michelle Obama for Embracing Racist Black Group

LOS ANGELES, July 14 /Standard Newswire/ — Rev. Jesse Lee Peterson (photo), Founder and President of BOND Action, is repudiating the NAACP (National Association for The Advancement of Colored People) for passing a resolution condemning members of the conservative Tea Party movement as “racists.” The NAACP is charging Tea Party members with using “racial epithets” and accusing them of engaging in “explicitly racist behavior.” Rev. Peterson is calling the NAACP’s claims “baseless” and is blasting First Lady Michelle Obama for appearing as the keynote speaker at their annual convention. The following is Rev. Peterson’s statement:

“This resolution is a politically motivated attack by the NAACP designed to smear, intimidate, and derail a great conservative grass roots movement. Where’s the NAACP’s resolution condemning the New Black Panther Party and its members for advocating the killing of ‘white crackers’ and ‘white babies’? Where’s their proof of ‘racist’ Tea Party behavior? This is the height of hypocrisy.

“The NAACP is a racist and bigoted group. And shame on Michelle Obama for embracing their racist platform. Instead of condemning this hateful resolution and rebuking the organization, she encouraged them to ‘increase their intensity.’ This is pure wickedness. Read more.

Governors: Obama’s Immigration Suit Is ‘Toxic’

Democratic governors expressed “grave” concerns to White House officials this weekend about the Obama administration’s suit against Arizona’s new immigration law, warning it could cost the party in crucial elections this fall, The New York Times reported late Sunday.

The closed-door meeting took place at the National Governors Association in Boston on Saturday, according to two unnamed governors who spoke to the Times.

“Universally the governors are saying, ‘We’ve got to talk about jobs, and all of a sudden we have immigration going on,’” Gov. Phil Bredesen of Tennessee, a Democrat, was quoted as saying. “It is such a toxic subject, such an important time for Democrats.”

The Arizona law, which is facing a U.S. Justice Department challenge, requires police to question people about their immigration status while enforcing other laws if there’s reason to suspect someone is in the country illegally. Read more.

Terror Experts Blast Obama Move to Drop References to Islamic Extremism

WASHINGTON — The Obama administration’s recent move to drop references to Islamic radicalism is drawing fire in a new report warning the decision ignores the role religion can play in motivating terrorists.

Several prominent counterterror experts are challenging the administration’s shift in its recently unveiled National Security Strategy, saying the terror threat should be defined in order to fight it.

The question of how to frame the conflict against Al Qaeda and other terrorists poses a knotty problem. The U.S. is trying to mend fences with Muslim communities while toughening its strikes against militant groups. Read more.

States Can’t Count on Bailout, Obama Appointees Say

(Bloomberg) — States can’t count on the federal government for more budget bailouts, the heads of President Barack Obama’s debt commission told governors.

States expecting Congress to authorize more assistance are “going to be left with a very large hole to fill,” said Erskine Bowles, co-chairman of the National Commission on Fiscal Responsibility and Reform. States including New York and California have urged Congress to extend stimulus spending authorized to combat the recession, including extra Medicaid funding and money to pay public school teachers.

“I don’t think we can count on the federal government again,” Bowles, White House chief of staff under former President Bill Clinton, said yesterday at the National Governors Association meeting in Boston. “They just do not have the financial resources.” Read more.

Obama Raises $500,000 for Robin Carnahan in Missouri Senate Race

KANSAS CITY, Mo. (AP) — With a handshake and hug, President Barack Obama embraced Democratic Senate candidate Robin Carnahan on Thursday, while proclaiming that she would be an independent voice if elected.

Obama appeared with Carnahan at a pair of Kansas City fundraisers that her campaign said would bring in at least $500,000. It marked the first time the president has campaigned with Carnahan, who was noticeably absent when Obama came to Missouri in March to raise money for Democratic Senate candidates.

Obama drew a fine line in his praise of Carnahan on Thursday as he defended his own policies on the economy, health care and energy. He portrayed Carnahan both as a loyal supporter and someone unafraid to take her own stand.

“We are moving in the right direction and I know that Robin Carnahan gets it — she’s going to help us keep on moving in the right direction,” Obama said during a fundraiser that drew about 750 people to the Folly Theater. Read more.

Obama DOJ corruption case has ties to Robin Carnahan

Barack Obama visited Kansas City on Thursday, July 8th, ostensibly to highlight the products of Smith Electric Vehicles (SEV) which produces electric delivery vehicles.

SEV’s web site claims its vehicles “dramatically reduce noise and deadly exhaust” as well as reduce energy and maintenance costs. Obama claimed credit for creating jobs at SEV, all 50 of them, while the current first time unemployment claims revealed another 450 thousand jobless Americans. Smith is the recipient of $32 million in government grants. SEV is owned by private investors, senior management, and a British firm, Tanfield Group, PLC.

But the real reason for Obama’s visit was to campaign for Robin Carnahan, current Missouri Secretary of State and Democrat candidate for the U.S. Senate seat currently held by Republican, Christopher “Kit” Bond. Bond is retiring. Carnahan’s Republican opponent likely will be Congressman, Roy Blunt. Read more.

week in Review 6/26/10

Immigration back on front burner due to Ariz. law

TUCSON, Ariz. (AP) — With the scrawl of a pen, GOP Gov. Jan Brewer of Arizona awakened the dormant but explosive issue of illegal immigration, sending shock waves across the political spectrum in an election year when both parties had hoped to sidestep the topic.

Two months after Brewer signed a law instructing police to demand proof of a questionable person’s legal status, voters have refocused on a topic that had faded into the background after Congress failed to overhaul the immigration system in 2007.

Protests have flared. Lawsuits have followed. Arizona boycotts are under way. More than 20 states are discussing similar efforts. Read more.

EXCLUSIVE: AWOL Afghans Found … on Facebook

At least 11 of the 17 members of the Afghan military who went AWOL from an Air Force base in Texas and are considered deserters by their nation have turned up in the exact place you’d expect to find them in the year 2010.

They’re on Facebook.

And, by the look of things, they’re not unlike millions of other young men on the social networking site. One proclaims to be a fan of Paris Hilton and is a member of a group named “FREE Webcam Sex with ME!” Another is a fan of hip hop music, Michael Jackson, the tearjerker movie The Notebook, Family Guy and Sports Center. Another is a fan of soccer and the Godfather. Read more.

Senate Republicans Defeat Jobless Aid Measure Over Deficit Fears

The Senate has failed to reach an agreement to extend weekly jobless benefits, leaving more than a million out-of-work Americans without anunemployment check by week’s end.

The 57-41 loss was a major blow for President Obama and Democrats. They needed three more votes — for a total of 60 — to stop a GOP filibuster.

The rejected bill would also have provided billions of dollars in new aid, protecting the jobs of tens of thousands of state and local government workers as the country begins to emerge from the worst recession in seven decades. Read more.

Alternative Energy Partners (AEGY) CEO Calls for Obama to Take Charge of Climate Bill

“We need to hold British Petroleum responsible for its reckless actions in the Gulf. But to truly solve the problems caused by our dependence on fossil fuels, we must as a nation transition to clean, renewable energy sources. There are so many practical and affordable options; we need strength in leadership to guide the market.

“Yesterday, leading Democratic Senators asked President Obama to take charge of the climate control bill to ensure it passes with strong clean energy provisions. We join the Senators in urging the President to use his influence to advance the legislation quickly and to get the job done. Read more.

McChrystal resigns, but problems persist in Afghanistan

WASHINGTON — President Barack Obama’s decision to accept Gen. Stanley McChrystal’s resignation and draft his superior, Gen. David Petraeus, to lead the war in Afghanistan eliminates a source of friction, but it doesn’t address the problems plaguing U.S. policy there.

The change in command, Obama made clear Wednesday, is a change in personnel, not in a policy that’s hampered by, among other things:

The absence of a political strategy.

Rising U.S. casualties.

Growing ethnic tensions.

Endemic political corruption.

The administration’s July 2011 deadline for beginning a troop withdrawal.

A stalled offensive in the country’s second-largest city. Read more.

Ill. official who dealt with Emanuel to testify, IL

SPRINGFIELD, Ill. (AP) — Former Governor Rod Blagojevich’s top aide asked Rahm Emanuel for help in 2006.

Bradley Tusk was Blagojevich’s deputy governor when he asked Emanuel to write a letter to a newspaper defending Blagojevich.

Emanuel is now President Barack Obama’s chief of staff. In 2006, he was an Illinois congressman and political ally of the governor now on trial for political corruption.

Emanuel’s staff asked for Tusk’s help in releasing a state grant on the same day Tusk asked for his favor.

Tusk testified Monday in Blagojevich’s corruption trial about an alleged extortion attempt by Blagojevich involving the grant.

Tusk told The Associated Press after court he didn’t remember the letter to the newspaper.

The White House didn’t respond to requests for comment.

Election-year deficit fears stall Obama stimulus plan

Barely a week after President Obama tried to re-energize his push for more spending on the economy, his agenda is stalled on Capitol Hill, mired in election-year anxiety about the deficit.

Congress has delivered only about a quarter of the $266 billion in “temporary recovery measures” the president sought in his February budget request and ignored much of the rest. There is unlikely to be another “recovery” check for Social Security recipients. Come December, Obama’s “Making Work Pay” tax credit — the signature initiative he regularly touts as a tax cut for 95 percent of Americans — will probably be gone. Read more.

Week in Review 6/5/10

Without any boundaries, we live in chaos

It’s time to wake up America, and smell the coffee before we become toast! The question, “Is it morning for America, or has our day in the sun passed?” has often been asked.

Well, there is no doubt that dark days have descended on this republic. When President Barrack Obama, Attorney General Eric Holder and Secretary of Homeland Security Janet Napolitano demean, defame and ridicule the duly elected legislature, the governor, and the people of Arizona for protecting their property, we are indeed in trouble.

All admit they have not read the law. Well, why not apply the government program adopted to encourage children to read, to the executive branch? Read more.

Wake up, America

You might think that Europe’s economic turmoil would inject a note of urgency into America’s budget debate. After all, high government deficits and debt are the roots of Europe’s problems, and these same problems afflict the United States. But no. Most Americans, starting with the nation’s political leaders, dismiss what’s happening in Europe as a continental drama with little relevance to them.

What Americans resolutely avoid is a realistic debate about the desirable role of government. How big should it be? Should it favor the old or the young? Will social spending crowd out defense spending? Will larger government dampen economic growth through higher deficits or taxes? No one engages this debate, because if rigorously conducted, it would disappoint both liberals and conservatives.

Confronted with huge spending increases — reflecting an aging population and soaring health costs — liberals would have to concede that benefits and spending ought to be reduced. Seeing that total government spending would rise even after these cuts (more people would receive benefits, even if benefit levels fell), conservatives would have to concede the need for higher taxes. On both left and right, true believers would howl. Read more.

Right, Left Pan Obama Border Plan

Rep. Luis Gutierrez (D-Ill.) said Sunday that President Barack Obama has so far lacked the “political will” and “political courage” to resolve the contentious issue of illegal immigration.

The liberal Chicago congressman and conservative former Rep. J.D. Hayworth, running for the Republican Senate nomination in Arizona, seemed to agree on one thing, though for very different reasons, in a joint interview on NBC’s “Meet the Press:” The president’s plan to send as many as 1,200 National Guard troops to the Arizona border is more political than practical.

For Hayworth, the troop level is too low to keep illegal immigrants out of the country. For Gutierrez, sending troops to the border is an easy political act that ignores significant questions of what to do with immigrants currently in the country illegally. Read more.

Issa: Explanation of Sestak Deal Is Bad Cover-Up of Crime

A California congressman who called it an “impeachable” offense for the administration to offer Rep. Joe Sestak a job in exchange for his quitting a Senate bid said Sunday the cover-up, as usual, appears worse than the crime.

Republican Rep. Darrell Issa said the explanation for the Sestak affair — that former President Bill Clinton offered the Democratic congressman an unpaid position on an advisory board if he would drop his challenge against party-switching Pennsylvania Sen. Arlen Specter — is not plausible because as a sitting congressman Sestak couldn’t have served on a presidential commission.

“It’s a crime because they’ve admitted that they offered this position … So that begs the real question. Do we believe this is a further cover-up because he’s — they’re now talking about a job that President Clinton himself should have known Sestak couldn’t take? ” he said. Read more.

Netanyahu cancels White House visit

CHICAGO — Israeli Prime Minister Benjamin Netanyahu has cancelled a scheduled meeting with President Barack Obama Tuesday in the wake of Israeli military action to block a flotilla bringing aid to the Gaza Strip. At least 10 people were killed in the attack.

The incident underscores how tenuous and difficult Middle East peace negotiations have been for Obama. It follows a long stretch of mounting tensions between the United States and Israel that had just begun to deescalate as the White House, under fire for taking a hard line with the Israelis, had moved to mend relations.

Obama spoke to Netanyahu by phone between 11 a.m. and 11:15 a.m. Eastern on Monday. Obama “said he understood the Prime Minister’s decision to return immediately to Israel to deal with today’s events. They agreed to reschedule their meeting at the first opportunity,” the White House said in a statement. Read more.

GOP sees a way to revive old debate

President Barack Obama spent the last year insisting he doesn’t want to turn the American health care system into a carbon copy of the government-run British system.

But Obama’s pick to run Medicaid and Medicare — Donald Berwick — is a pediatrician and Harvard University professor with a self-professed “love” of the British system.

Berwick has called Britain’s National Health Service “one of the greatest health care institutions in human history” and “a global treasure.” He once said it sets an “example” for the United States to follow. And his decadelong efforts to improve the NHS were so well-regarded that Queen Elizabeth granted him an honorary knighthood in 2005.

Now Senate Republicans are vowing to press their case against Obama’s sweeping new health care law by challenging Berwick’s nomination — just in time to resurrect the brutal yearlong health reform battle ahead of the midterm elections. Read more.

Brewer Says She’s Ready for Potential Federal Court Challenge Over Immigration Law

Bring it on.

That’s the attitude Arizona Gov. Jan Brewer is taking toward the possibility that the Obama administration could file a legal challenge to her state’s immigration law.

“We’ll meet you in court,” she said in an interview Tuesday. “I have a pretty good record of winning in court.”

Attorney General Eric Holder has said the Department of Justice may challenge the law, which President Obama has called “misguided.” Brewer has staunchly defended the policy — which makes illegal immigration a state crime — and is expected to meet with the president Thursday, a White House official told FoxNews.com. Read more.

Anti-incumbency takes down another congressman

MONTGOMERY, Ala. (AP) – The political shooting-star otherwise known as anti-incumbency fell on Alabama, taking down a first-term congressman who switched from Democrat to Republican just last December.

The hotly-contested health care overhaul was among the issues working against Rep. Parker Griffith, voted out by Republicans Tuesday in the 5th Congressional District in favor of Madison County Commissioner Mo Brooks. With tea party support and the backing of local GOP leaders still bitter about losing to Griffith in 2008, Brooks won Tuesday’s primary with slightly more than 50 percent of the vote in a three-candidate field.

Griffith’s ouster came on a day in which Rep. Artur Davis lost his bid to become Alabama’s first black governor in the state’s Democratic primary and New Mexico’s gubernatorial primary set up a general election to decide who becomes the state’s first female governor. Read more.

US defense chief blames Chinese military for lack of progress in improving ties to US

Singapore (AP) — U.S. Defense Secretary Robert Gates says China’s military isn’t as interested in developing a better relationship with the United States as its political leaders are.

Gates says he is disappointed that China disinvited him for a proposed visit that he had hoped would signal stronger ties between the U.S. and Chinese militaries.

Gates is in Singapore for three days of security talks with Asian powers. He had hoped to visit China afterward.

Gates says establishing better ties between the militaries could provide clarity and confidence for both sides. He says the U.S.-Chinese military relationship lags behind the political and economic ones.

In a speech this weekend, Gates will tell other Asian powers that the U.S. and China cannot afford to be in the dark about one another’s intentions.

Carville doesn’t regret ripping W.H.

James Carville walked into one of his favorite New Orleans eateries, Eleven 79, Tuesday night — and was stunned to find BP CEO Tony Hayward and Coast Guard Adm. Thad Allen, the two men tasked with stopping the Gulf spill, eating dinner together.

Hayward, looking up from his Gulf shrimp and pasta, wasted no time defending his embattled and vilified company — to the rail-thin Democratic operative who has come to embody the growing popular disgust at BP and the federal government.

“You’ve said some harsh things,” Hayward said, according to Carville, who sat with the pair for about 30 minutes — the time it took the Louisiana-born Democratic consultant to polish off a Maker’s Mark. Read more.

BP’s Shaky Financial Condition Spurs Talk of U.S. Takeover

Each day oil continues to spew into the Gulf of Mexico, investors are shaving billions of dollars off of BP’s value and raising the uncomfortable prospect of the British oil giant collapsing into the arms of the U.S. government as Wall Street and the auto industry did.

A grassroots campaign called Seize BP is protesting in more than 50 cities from Thursday through Saturday. And a former labor secretary has urged President Obama to take over BP, at least temporarily, until the oil spill is stopped.

Analysts said it appeared unlikely that the U.S. could or, if even possible, would take over BP in the event of its demise but didn’t rule out the possibility.

James Gattuso, a senior research fellow in regulatory policy at the conservative Heritage Foundation, told FoxNews.com that it is more likely that a British bankruptcy court would put BP into receivership and continue the cleanup efforts. Read more.

US National Deficit Hits $13 Trillion

So just how big is the U.S. national debt in 2010? Well, according to the U.S. Treasury Department, on June 1st, the U.S. National Debt was $13,050,826,460,886.97. For those not used to seeing such big numbers, that is over 13 trillion dollars. To give you an idea of just how much a trillion dollars is, if you had started spending one million dollars every single day when Christ was born, you still would not have spent one trillion dollars by now. And yet somehow the U.S. government has accumulated a debt of over 13 trillion dollars. This is a debt that we have callously placed on the backs of future generations of Americans. Somehow we have the gall to expect our progeny to pay off the biggest mountain of debt in the history of the world. What we have done to future generations is beyond sickening.

But hey, if you are feeling especially generous today, the federal government is actually taking online donations that will go towards paying off the national debt. Read more.

Week in Review 5/15/10

Americans look for Supreme Court to restrain federal power, not expand it

The breathtaking expansion of government — highlighted by record federal spending and a dramatic new federal role in the health-care system — is a source of deep concern across the political spectrum. People are increasingly worried that Washington is exceeding the limits set by the Constitution, asserting too large a role in American life.

So when President Obama announces his next Supreme Court nominee, the American people will want to know whether he is choosing someone who is committed to the text of the Constitution and the vision of the Founding Fathers, or whether his nominee is an activist who will shed a judge’s neutral, constitutional role to push a progressive policy agenda. Read more.

Utah US Rep. Matheson forced into Dem primary

Claudia Wright captured 45 percent of the vote Saturday at the Utah Democratic Party convention. Matheson won 55 percent of delegates’ votes – not the 60 percent he needed to avoid a primary. Matheson is Utah’s lone Democrat in Congress and has never had to run in a primary before.

President Obama’s home-state headache

President Barack Obama’s enemies like to call him a creature of the “Chicago machine,” but when it comes to the politics of his home state of Illinois, the White House doesn’t seem to know where the gears are.

Indeed, Chicago has delivered an unending stream of embarrassment, frustration and discomfort to the administration of its favorite son, from an indicted governor to a failed Olympics bid to a series of smaller political blows.

In the latest encounter with political quicksand, the White House — already burned by a series of failures to fill Obama’s Senate seat with a chosen candidate — has been forced to proceed with extreme caution toward the damaged Democratic Senate nominee, Alexi Giannoulias, waiting to see if he drops out even as some of its allies want the White House to take a heavier hand. Read more.

Outrage: Obama Administration Targets Military for Pay Reductions

President Barack Obama — who came to power with the help of government employee unions across the nation and has lavished on them hundreds of billions in stimulus funds to keep them on federal, state and local payrolls with no strings attached — is moving to cut spending on salaries for military personnel.

This weekend The Washington Post headlined story, “Pentagon Asking Congress to Hold Back on Generous Increases in Troop Pay,” disclosed that the Obama administration is “pleading” with Congress to give military personnel a much smaller increase in pay than lawmakers have proposed.

The Pentagon contends that Congress simply has been too generous with troops during the past decade. Read more.

National Democrats blew it

The Democratic big boys in Washington mishandled North Carolina by waiting too long for Congressman Bob Etheridge to decide whether to run, by not either backing Marshall or, if they didn’t like her chances, clearing the field for Cunningham. As Burr keeps building his $5 million war chest, the runoff will put the Democrats further behind. Read more.

To Kill an America

You probably missed this in the rush of news, but there was actually a report that someone in Pakistan had published in a newspaper, an offer of a reward to anyone who killed an American, any American.

So an Australian dentist wrote an editorial the following day to let everyone know what an American is . So they would know when they found one. (Good one, mate!!!!)

‘An American is English, or French, or Italian, Irish, German, Spanish , Polish, Russian or Greek. An American may also be Canadian, Mexican, African, Indian, Chinese, Japanese, Korean, Australian, Iranian, Asian, or Arab, or Pakistani or Afghan.

An American may also be a Comanche, Cherokee, Osage, Blackfoot, Navaho, Apache, Seminole or one of the many other tribes known as native Americans. Read more.

After Arizona, why are 10 states considering immigration bills?

Given the anger sparked by Arizona’s immigration bill nationwide – including protests and calls to boycott Arizona – the campaign promises of Colorado gubernatorial candidate Scott McInnis could be seen as a bit of a surprise.

He has vowed to follow Arizona’s lead and pass a tough new anti-illegal immigration law. “We are stopping the retreat. No more retreat,” he said in a local radio interview. “Federal government, if you are not going to do it, we are going to do it.”

Mr. McInnis’s comments are but one example of how the Arizona firestorm has hardly scared off politicians in other states around the country. In some cases, it might actually be encouraging them. Read more.

History warns Obama on primaries

President Barack Obama is deeply enmeshed in the Pennsylvania Democratic Senate primary.

The White House promised full support to GOP Sen. Arlen Specter when he switched to the Democratic Party a year ago. So Obama’s team had approached Rep. Joe Sestak, the primary challenger now gaining on Specter, in an effort to ward off this intraparty contest.

Obama is entangled in other Democratic primaries, as well. His White House has endorsed incumbent moderate Democrats in a handful of key midterm races. It has actively intervened in support of Sens. Michael Bennet of Colorado, Kirsten Gillibrand of New York and Blanche Lincoln of Arkansas. Read more.

GOP: Medicare pick favors ‘rationing’

Senate Republicans revived their health care “rationing” theme Wednesday evening as they fired their first salvo in what’s expected to be a fierce battle over the confirmation Donald M. Berwick to be administrator of the Centers for Medicare and Medicaid Services.

Republicans say Berwick supports the idea of rationing health care, a charge they deployed to stir public anger against the Democrats’ health care overhaul. While they focused on the public insurance option that ultimately was dropped from the legislation, they also said that a series of programs that made it into the final legislation, such as the U.S. Preventive Services Task Force, would also lead to denying health care to save money.

“Dr. Berwick is the perfect nominee for a president whose aim has always been to save money by rationing health care,” Sen. Pat Roberts (R-Kan.) said Wednesday. Read more.

Blagojevich lawyers subpoena Sen. Harry Reid

WASHINGTON–Lawyers for former Gov. Blagojevich have subpoenaed Senate Majority Leader Harry Reid (D-Nv.) in to testify at his federal corruption trial, the Chicago Sun-Times has learned.

“Ex-Governor Blagojevich’s counsel contacted Senator Reid’s counsel regarding service of a subpoena related to Mr. Blagojevich’s pending trial, as he has apparently contacted many others. As a routine legal matter, Senator Reid’s attorney accepted service. This action does not mean that Senator Reid will testify at trial,” Reid spokesman Jim Manley told me.

Last month, Sen. Dick Durbin (D-Ill.) revealed that he was also subpoenaed by Blagojevich’s defense team. “Given the former Governor’s previous antics regarding this case, it’s no surprise he is casting a wide net – apparently from the President down to dogcatcher,” said Durbin spokesman Joe Shoemaker. Read more.

Underground broker network a bane in terror probes

NEW YORK (AP) – Long before there was MoneyGram and Western Union, people in South Asian countries often used an informal network of brokers, called an “hawala,” to transfer money over long distances when it was too inconvenient or dangerous to send cash by courier.

Today, the centuries-old system still exists and is used to move billions of dollars annually in and out of countries like Pakistan,Afghanistan and Somalia — often to the chagrin of U.S. law enforcement.

A federal law enforcement official told The Associated Press that terror suspect Faisal Shahzad is believed to have tapped into such a network to help fund a plot to detonate a car bomb in Times Square on May 1. The official spoke on condition of anonymity because the investigation is ongoing. Read more.

Week in Review 5/8/10

House passes Puerto Rico bill

The House Thursday evening passed a bill which mandates that the citizens of Puerto Rico vote on their relationship with the United States. The Puerto Rican Democracy Act enjoyed bipartisan support and opposition, but passed 223-169 after a whole slew of amendments were debated and voted on.

The motion to recommit the legislation – a tactic meant to essentially kill a bill and send it back to committee – narrowly failed. But two of the most prominent Hispanic Democrats in Congress carried their all-out offensive to kill the bill late into the day Thursday. They took direct aim at their leadership.

Read More.

Pakistani Taliban claims NYC car bomb

CAIRO (AP)– The Pakistani Taliban claimed responsibility in a video posted on the Internet Sunday for the attempted car bomb attack in New York City’s Times Square, according to the SITE Intelligence Group.

In the 1 minute, 11 second video allegedly released by the Pakistani Taliban, the militant group says the attack is revenge for the death of its leader, Baitullah Mehsud, and the recent slaying of al-Qaida in Iraq leaders Abu Omar al-Baghdadi and Abu Ayyub al-Masri, who were killed by U.S. and Iraqi troops last month north of Baghdad.

SITE, a U.S.-based terrorist tracking organization, first uncovered the video on YouTube. The tape, which later appeared to have been removed from the website, makes no specific reference to the attack in New York, nor does it mention that the location or that it was a car bomb. Read more.

Republicans on Offense as Dems Slip

WASHINGTON — Republicans are on offense in scores of House and Senate races as persistent economic woes and lukewarm support for President Barack Obama continue to weaken Democrats’ hold on Congress.

The president and his party are determined to minimize the losses six months before the November elections. But Democrats privately acknowledge the economy and support for Obama must improve before then to avoid the defeats that could cost them control of the House and possibly the Senate.

Primaries in Indiana, Ohio and North Carolina on Tuesday kick off an intense eight weeks of contested elections. There also are two special House elections to fill vacant Democratic-held seats in Pennsylvania and Hawaii. The outcome could be a clear indicator of the political mood.

“I need your help once more,” Obama says in a video message to backers, a plea that underscores the troubles for Democrats. “This year, the stakes are higher than ever,” the president adds, warning that Republicans would “undo all that we have accomplished.” Read more.

Despite Ariz. Law, Illegals Vow to Keep Coming

NOGALES, Mexico (AP) — The line of Mexicans waiting to go shopping in Arizona snakes twice around the sun-drenched plaza, even as politicians nearby slap stickers on cars calling for a boycott of the U.S. state.

And the illegal migrants targeted by a tough new Arizona law dismiss it as just another obstacle that pales in comparison to the extortion, arrests and kidnappings they already risk to reach U.S. soil. They vow to keep on coming.

Resentment has erupted throughout Mexico over the immigration law in Arizona that is considered racist here. But crossing back and forth between the countries is so intrinsic to their lives that many Mexicans find it hard to give it up despite calls by immigration activists for a boycott of Arizona. Read more.

Holder: Car bomb suspect tried to fly to Dubai

WASHINGTON (AP) — Faisal Shahzad, the man arrested Monday in connection with the failed plot to detonate a car bomb in New York’s Times Square, was trying to board a flight to Dubai when he was apprehended, Attorney General Eric Holder said Tuesday. Holder said Shahzad, a U.S. citizen, was detained by agents from Customs and Border Protection at New York’s John F. Kennedy International Airport.

The attorney general described the investigation as “multifaceted” and said federal, state and local authorities are continuing to pursue a number of leads. “As we move forward, we will focus on not just holding those responsible for it accountable, but also on obtaining any intelligence about terrorist organizations overseas,” he said. Read more.

Pacific Legal Foundation at the front lines in fight against Big Government

The fight against Big Government must now move to the courts. From coast to coast, impassioned rallies protest what many view as the rise of European-style socialism in America.

Marches in Washington, hundreds of “tea parties” around the country, contentious congressional town hall meetings and switchboard-swamping phone calls to Congress are rampant. People worry aloud that our children and grandchildren won’t enjoy the freedoms we’ve taken for granted. As a woman at the April 15 rally in Palm Desert told The Desert Sun, “The tea party movement isn’t about complaining. It’s about standing for something — and that’s our Constitution.” Read more.

Just How Involved In Our Lives Is North Carolina State Government?

In the constant, on-going debate between the political left and right about the proper role of government, this question is typically answered with a discussion that focuses on issues such as taxes, government spending, or healthcare. There are two items, however, that illustrate the size and scope of government control that often go unnoticed.

The first overlooked measure is the North Carolina State Government Fee Report. This document, produced by the Office of State Budget and Management, lists over 2,700 fees that are assessed each year by the State of North Carolina. Essentially, lawmakers and bureaucrats have come up with nearly 3,000 ways—in addition to taxes—to extract money from its citizens. And this number does not include fees assessed by the community college system or the University of North Carolina system. Excluding those fees, the state collected nearly $2 billion in fees during the 2007-08 fiscal year. By comparison, the state collected $1.2 billion in total corporate taxes that year. The $2 billion in fees was an increase of almost $63 million from the previous year, and an increase of more than $700 million from 2002-03. Read more.

Iran begins new military maneuvers in Persian Gulf

TEHRAN, Iran (AP) — Iran on Wednesday kicked off new war games and military maneuvers in the strategic Persian Gulf waters, the country’s second military show of force in less than a month.

The exercises reflect Iran’s desire to flex its military muscle at a time of a deepening standoff with the West over Tehran’s controversial nuclear program. The war games, held annually since 2006, also act as a warning, should U.S. or Israel consider a military strike on Iran’s nuclear facilities.

The new maneuvers, dubbed “Velayat 89,” are to last eight days in the Strait of Hormuz and the Sea of Oman and cover about 97,000 square miles (250,000 square kilometers) of Iranian territorial waters, reported state TV. Read more.

Obama wants to begin work on immigration reform

WASHINGTON — President Barack Obama said Wednesday he wants to begin work this year on legislation overhauling the nation’s immigration system, firming up his commitment on a key priority for Latino voters and lawmakers.

Obama’s comments at a Cinco de Mayo celebration at the White House reaffirmed his long-held support for immigration reform. He went a step further than he has in the past by calling for the work to begin this year.

Latino groups have been calling for Obama to deliver on his campaign promise of making immigration reform a top priority, with some activists and lawmakers in the Congressional Hispanic Caucus complaining he wasn’t doing enough.

Obama clouded the issue last week by saying “there may not be an appetite” in Congress to deal with another hot-button issue immediately after grueling fights over health care and financial regulation. Read more.

Obama biggest recipient of BP cash

While the BP oil geyser pumps millions of gallons of petroleum into the Gulf of Mexico, President Barack Obama and members of Congress may have to answer for the millions in campaign contributions they’ve taken from the oil and gas giant over the years.

BP and its employees have given more than $3.5 million to federal candidates over the past 20 years, with the largest chunk of their money going to Obama, according to the Center for Responsive Politics. Donations come from a mix of employees and the company’s political action committees — $2.89 million flowed to campaigns from BP-related PACs and about $638,000 came from individuals.

On top of that, the oil giant has spent millions each year on lobbying — including $15.9 million last year alone — as it has tried to influence energy policy. Read more.

Budget From Governor Relies on Gimmicks, Misses Opportunities

RALEIGH — Budget gimmicks help Gov. Bev Perdue avoid the tough decisions that would improve North Carolina state government’s finances and operations. That’s the assessment the John Locke Foundation’s top budget expert offers in a new Spotlight report.

“Gimmicks are at the core of the governor’s budget proposal for the new fiscal year that starts in July,” said Joseph Coletti, JLF Director of Health and Fiscal Policy Studies. “These gimmicks leave the state fundamentally unprepared for recovery. The governor’s budget proposal represents a missed opportunity.”

The primary gimmick is Perdue’s claim that her budget cuts $1 billion in state spending, Coletti said. “The press release tied to this budget plan crowed about $1 billion in cuts, but it ignored a key point,” he said. “More than half of the so-called cut — $578 million — is new federal stimulus money that replaces state dollars.” Read more.

Lindsey Graham wants to ‘pause’ on climate bill

Sen. Lindsey Graham (R-S.C.) has gone from fence-sitting to urging Democrats to scrap climate change legislation before the midterms — saying the Gulf Oil spill warrants a pause in the effort.

“As I have previously indicated, a serious debate on energy legislation is significantly compromised with the cynical politics of comprehensive immigration reform hanging over the Senate,” Graham said in a statement Friday morning.

“In addition to immigration, we now have to deal with a catastrophic oil spill in the Gulf of Mexico, which creates new policy and political challenges not envisioned in our original discussions. In light of this, I believe it would be wise to pause the process and reassess where we stand.”

Graham’s statement came after senators John Kerry (D-Mass.) and Joe Lieberman (I-Conn.) announced plans to push ahead with a climate bill Graham had previously signed off on.

The White House has become increasingly frustrated with Graham, who agreed to be a pivotal bipartisan bridge on energy, climate change and terror detention — but has yet to follow through on any of those issues.