VA: Extended shutdown could stop disability pay
The Veterans Affairs Department warned Saturday that an extended government shutdown could result in a cutoff of veterans’ benefits checks by the end of October.

In a sharp change from what the VA was saying days earlier, officials said a prolonged shutdown would hurt the 3.4 million veterans receiving disability compensation, plus survivors and veterans expecting GI Bill living stipends.

“The administration strongly believes that a lapse in appropriations should not occur,” the VA said in a statement. “There is enough time for Congress to prevent a lapse in appropriations, and the administration is willing to work with Congress to enact a short-term continuing resolution to fund critical Government operations and allow Congress the time to complete the full year 2014 appropriations.”

“In the event of a prolonged shutdown, VA will continue to review and update its plan in conjunction with the applicable legal requirements and circumstances,” the statement says.

Bernanke to Republicans: Stop Being the Stupid Party
Congressional Republicans have been critical of the Fed's loose monetary policies for quite some time. Today, the Fed announced that monetary policy would stay loose for the foreseeable future, and Fed chair Ben Bernanke explained that part of the reason for this is....

The austerity crusade of congressional Republicans. The Fed's official statement noted bluntly that "fiscal policy is restraining economic growth," and Bernanke expanded on that in his press conference later in the day:

Federal fiscal policy continues to be an important restraint on growth and a source of
downside risk...and upcoming fiscal debates may involve additional risks to financial markets and to the broader economy. In light of these uncertainties, the Committee decided to await more evidence that the recovery’s progress will be sustained before adjusting the pace of asset purchases.

If it's Yellen, Wall Street gets the Fed chief it wanted, not expected
Wall Street looks set to get who it wants as Federal Reserve chairman, but definitely not who it expected.


The CNBC September Fed Survey, conducted Thursday and Friday, found Wall Street participants by a 2-to-1 margin believed President Barack Obama would nominate former Treasury Secretary Larry Summers to be the next Fed Chairman.

But by about a 5-to-1 margin, they wanted current Vice Chairwoman Janet Yellen to accede to the top post over Summers.



In a surprise announcement on Sunday, Summers, the presumed frontrunner, told President Obama he no longer wanted to be considered for the job. Summers, who was strongly opposed by some Democrats on the left, cited the high political price the president might have to pay for the nomination to succeed.

Iran Hostage Rescue Attempt: Is Consultation Always Necessary and Possible?
After an unsuccessful attempt on April 24, 1980, to rescue American hostages being held in Iran, President Carter submitted a report to Congress to meet the requirements of the War Powers Resolution, but he did not consult in advance. The Administration took the position that consultation was not required because the mission was a rescue attempt, not an act of force or aggression against Iran. In addition, the Administration contended that consultation was not possible or required because the mission depended upon total surprise.

Some Members of Congress complained about the lack of consultation, especially because legislative-executive meetings had been going on since the Iranian crisis had begun the previous year. Just before the rescue attempt, the Senate Foreign Relations Committee had sent a letter to Secretary of State Cyrus Vance requesting formal consultations under the War Powers Resolution. Moreover, shortly before the rescue attempt, the President outlined plans for a rescue attempt to Senate Majority Leader Robert Byrd but did not say it had begun. Senate Foreign Relations Committee Chairman Frank Church stressed as guidelines for the future: (1) consultation required giving Congress an opportunity to participate in the decision making process, not just informing Congress that an operation was underway; and (2) the judgment could not be made unilaterally but should be made by the President and Congress. (23)