The Golden Report

BREAKING I- US Sharpens Warning to Pakistan- “The Obama administration has sharply warned Pakistan that it must cut ties with a leading Taliban group based in the tribal region along the Afghan border and help eliminate its leaders, according to officials from both countries. In what amounts to an ultimatum, administration officials have indicated that the United States will act unilaterally if Pakistan does not comply.” Senior Administration officials, including Defense Secretary Panetta, CIA Director Petraeus and Secretary of State Clinton, have been delivering hard-line messages to their Pakistani counterparts in recent days, including at the United Nations General Assembly in New York and a 3 1/2 hour meeting that Clinton held on Sunday. 

BREAKING II- The Washington Post is reporting exclusively tonight that that the United States is building a series of secret bases across North Africa and the Arabian Peninsula from which to launch drone attacks. Last week in THE EVENING REPORTED we mentioned a series of US drone attacks in the nation of Yemen- one of the nations, and an al-Qaeda stronghold, that the United States has targeted in a renewed series of unmanned predator drone attacks this year. The information was first obtained through the WikiLeaks cables. “One of the installations is being established in Ethi­o­pia, a U.S. ally in the fight against al-Shabab, the Somali militant group that controls much of the country. Another base is in the Seychelles, an archipelago in the Indian Ocean, where a small fleet of “hunter killer” drones resumed operations this month after an experimental mission demonstrated that the unmanned aircraft could effectively patrol Somali territory from there,” the report says. 

BREAKING III- President Obama will meet tomorrow evening with Palestinian President Mahmoud Abbas. Earlier today, it was announced that the President will meet with Israeli Prime Minister Benjamin Netanyahu tomorrow morning. The meetings are expected to be high-stakes ahead of a vote on Palestinian recognition [that the US has said it will block]. A bilateral meeting is not expected.

TOP STORY- Former Afghan President Burhanuddin Rabbani was killed in a car bombing in Afghanistan today- hours before President Obama met with current Afghan President Hamid Karzai at the United Nations. After meeting with the President, Karzai cut short his trip to New York in order to return to Afghanistan. The assassination is the latest setback for the US and coalition effort in Afghanistan. Last week, insurgents placed the US & other European embassies in Kabul under siege in a protracted firefight. And last month, 33 Navy SEALS were killed when their helicopter was targeted and brought down by insurgents. In July, President Obama announced his plan for a drawdown of US forces from Afghanistan, beginning next year, and the end of the surge he announced in 2009. 

The INTERNATIONAL MONETARY FUND lowered its projects for economic growth for both the United States and Europe, as the Associated Press Reports, “The fund said it expected the American economy to grow just 1.5 percent this year and 1.8 percent in 2012. Its June forecast was 2.5 percent in 2011 and 2.7 percent next year. The organization also lowered its outlook for the 17 European Union countries that use the euro. It predicted 1.6 percent growth this year and 1.1 percent next year, down from its June projections of 2 percent and 1.7 percent, respectively.”

WALL STREET ended the day mixed:

• DOW up 7.65 
• NASDAQ down 22
• S&P 500 down 2

2012: Just a week after announcing her candidacy in the Massachusetts 2012 Senate race, Harvard Professor Elizabeth Warren has a 46%-44% lead according to a new poll out today. Democrats will be targeting Massachusetts as one of their only chances of a Senate pick-up next year. 

GOVERNMENT SHUTDOWN POSSIBLE- Senate Majority Leader Harry Reid today suggested that the government may shutdown at the end of last week if the House & Senate can not reach an agreement over disaster funding. Earlier this week, it appeared that a deal was imminent to pass an continuing resolution through November 23rd [the same date the Supercommittee is expected to report back] and avoid a government shutdown. Although the conventional wisdom is that a shutdown will still be avoided, the current stalemate could extend into the weekend, and possibly force the House to stay in session through its planned Rosh Hashanah Recess. The sticking point is over offsetting additional funding for FEMA and both sides appear to be ready to go to the mat. “There is not going to be a government shutdown,” Minority Leader Mitch McConnell said today. “I’m not so sure about that, ” Majority Leader Reid repleid.

WATCH TOMORROW: The Federal Reserve will complete a two-day meeting and announce a decision on interest rate policy. No change is expected.

FINALLY- Glam Media has purchased the social networking company Ning- a platform that allowed individuals and organizations to create their own social networks. Last year, Ning shifted from a free service to a subscription-based model. Terms of the deal were not disclosed but TechCrunch reports it is likely higher than the $35 million that NewsCorp paid to acquire MySpace, but less than the estimated $100 million the company is estimated to have raised. 

HAPPENING NOW: The 63rd Primetime Emmy Awards from Hollywood, CA. “The Daily Show” with Jon Stewart just won the Emmy for Best Variety Show, for the ninth consecutive year. Earlier tonight, “The Amazing Race” won Best Reality Competition, Melissa McCarthy from “Modern Family” won Best Actress, Comedy, and “Modern Family” won Best Direction, Comedy. But of course- there are many more awards to come. 

TOP STORY TODAY AND TOMORROW: President Obama will use a 10:30am rose garden press appearance tomorrow to announce his revenue recommendations to the Congressional supercommittee. The President is expected to announce a new millionaire tax- nicknamed the “Buffett Rule” after Warren Buffett. The full proposal will be released at 9am- and include other deficit reduction measures- defense and Medicare cuts included- the will constitute the Administration’s proposal to the supercommittee. The move to specifically target millionaires is essentially dead on arrival in the Republican-controlled House of Representatives (its future among the bi-partsian group of twelve panel is less clear but thought to be nearing impossibility) but is expect to energize the President’s populist supporter base. 

ALREADY…House Budget Committee chairman Paul Ryan is calling the President’s proposal “Class Warfare”. 

WATCH FOR a lot of heated rhetoric, press conferences, statements..and a full-court press by a beleaguered White House tomorrow. 

MEANWHILE…the President is preparing for an important foreign policy week at the United Nations General Assembly. On Tuesday, he will host a high-level meeting on Libya, and meet with Afghan President Hamid Karzai. On Wednesday, he speaks to both the General Assembly and (across-town) to the Clinton Global Initiative, and meetings with other world leaders. Meetings with Israeli Prime Minister Netanyahu and Palestinian Prime Minister Abbas are also possible/expected. 

VIOLENCE IN YEMEN today is being blamed for at least 24 deaths in the increasingly more hostile Arab nation. Over 200 Yemenis are also reported wounded after shots rained from rooftops and street corners. The violence comes after the United States has stepped up unmanned predator drone attacks in the country (unlike in Pakistan, where the CIA has a presidential directive for drone attacks, each drone mission over Yemen must be approved by the White House) and raises concerns about a protracted anti-government insurgency.

IN WASHINGTON THIS WEEK..annual meetings of the International Monetary Fund and the World Bank. Aside from increased security in Foggy Bottom, these meetings will be watched very closely for any indication on an international resolution to the Greek monetary crisis and the continuing threat of default. The Greek Prime Minister, however, decided to remain in his country and not make the trip to Washington this week. Wall Street will be watching these meetings, any news out of European central banks and reaction to the President’s fiscal policy plan closely this week. In early trading Monday, Asian stocks are lower.

“MORAL FAILING”- the quote heard ‘round the world today and the top talker tomorrow..from former IMF President Dominique Strauss-Kahn, in his first interview since his arrest on sexual assault charges in New York City that cost him his job. He said in the interview with French television that the encounter with a hotel maid “did not involve violence, constraint or aggression,” but was “a moral failing and I am not proud of it. I regret it infinitely. I have regretted it everyday for the past four months and I think I’m not done regretting it.”

THREE THINGS TO WATCH THIS WEEK

1/ At the United Nations General Assembly, the Palestinian Authority is expected to seek membership status- putting the international community- and the United States in particular- in an uncomfortable and difficult situation. Watch to see the diplomacy- both in front of the camera and behind the scenes- and look for process stories (such as in today’s Sunday Washington Post) about the concurrent history of the United Nations and the Israeli/Palestinian conflict

2/ The politics of the President’s revenue/deficit reduction plan..how the plays with the President’s base- and potentially quiets the story of rising dissent among Democrats with the Administration (the Administration also hopes that a busy week- in New York, then a sharp pivot back to jobs, will distract attention from these stories, including details in Ron Suskin’s new book, to be released Tuesday, that is highly critical (and apparently partially-fabricated) of the Administration’s first two and a half years. Also watch to see how Republican presidential candidates react (in unison opposition) at this week’s debate- on Thursday night from Orlando, Florida.

3/ Last week, Iranian President Mahmoud Ahmadinejad told NBC’s Ann Curry that two jailed American hikers would be released in a “matter of days” Over the weekend, news broke that a judge needed to carry out the release process was on vacation. As of yet, there have been no visible signs that Iran is moving to release the Americans. Watch to see if this happens this week- perhaps as Ahmadinejad prepares to address the UN in New York City and what the US reaction is if and when the hikers are freed. 

FINALLY- Tonight’s Emmy Awards are airing on the FOX television network, a unit of News Corp. According to the Washington Post, “A pre-taped comedy sketch generated controversy because Alec Baldwin’s part was cut after he included a joke about the News Corp. phone hacking scandal. Baldwin tweeted that Fox killed the joke about the hacking scandal in Britain involving the now-closed News of the World tabloid. Fox said it believed the joke was inappropriate to make light of an issue being taken very seriously by the company. Leonard Nimoy stepped in and the bit was retaped. It featured host Jane Lynch celebrating television in a musical number, singing about TV as “a vast wonderland, a kingdom of joy in a box.”