Possible Austerity Poses Threat to Slow-Moving Recovery

February 28, 2013

A glimpse, by definition, is a brief preview of what lies ahead.

The last quarter of 2012, last October through December, provided a glimpse of what happens when federal spending is cut.
The economy shrunk. Not much – only 0.1% – but it shrunk. When the economy shrinks for two straight quarters, a recession is declared. That doesn’t have to happen unless we make it happen.

During the third quarter of 2012 (last July, August, and September), the economy grew at 3.1%, almost the nation’s average of 3.2% since the end of World War II.

Over the past three months, the private sec- tor did pretty well. Consumer spending went up. Durable goods like appliances and furniture al- most doubled. Investment in equipment and soft- ware increased six times. Even housing invest- ment increased.

What went down? Federal government spending declined at a 15% rate due to a drop in defense spending. In fact, government spending has declined in 10 of the last 12 quarters slowing the country’s overall economic growth.

Government spending has kept the economy out of recession since 2009. The United States is the only economy on earth, of any size, that has grown in the past three years. Austerity – reductions in government spending – hasn’t worked anywhere in the world except arguably in two small countries.

Greece and Spain are getting a great deal of attention for their economic woes. Their budget cuts have led to downward spirals and 25% un- employment. Great Britain adopted an austerity plan last year and just entered its THIRD recession in five years.
The poster children for “austerity works” are Estonia and Latvia, two Baltic states tucked be- tween Russia, Poland, and Scandinavia and together about the size of Ohio. Their combined population is about 3 million, a little more than half the D.C. metro area. Though their economies are now growing, they are still suffering with unemployment rates of 12-15%.

Government spending matters. Reductions in unemployment benefits, food stamps, and social security hurt small businesses and grocery stores. When housing assistance is reduced, the pain is felt by both landlords with more vacancies and lower rents and by local governments with lower property values and reduced tax collections. Reduced highway construction today puts construction workers out of work and reduces economic growth tomorrow.

Nonetheless, Congress is currently focused only on cutting spending with several deadlines quickly approaching. In two weeks, the “sequester” – automatic across-the-board spending cuts that Congress imposed on the nation when it couldn’t agree on what to cut – take effect. In late March, the nation hits the debt limit – like a credit card limit – that would not allow the government to pay the bills it promised to pay a few months ago. That’s like buying a car and then telling the bank you’re not going to make the payments.
By disagreeing on budget priorities, Congress has kicked the can down the road for three years. Oddly, that’s probably been best for the economy.

The last few months both in the U.S. and Great Britain provide a glimpse into the future. What do we really want? Austerity or more can- kicking? ?

Heating Plant Bid at $15.8 Million


The West Heating Plant, the two-acre government property continues to get bids between two or three bidders. As of Feb. 26, the winning stood at $15.8 million, with bidding extended another 24 hours. Advised the General Services Administration: “We are now with the soft-close period. Bidders are encouraged to check back frequently to the remaining auction time.” If no one bids on the plant for more than 24 hours, the GSA will then decide if the auction is to be concluded.

Fiola Mare Signs 15-Year Lease with Washington Harbour


Chef Fabio Trabocchi signed a 15-year lease last week with MRP Realty for a new restaurant in Georgetown, according to the real estate group, which owns Washington Harbour, the popular multi-use complex between K Street and the Potomac River. Trabocchi plans to open the 9,000-square-foot Fiola Mare by the end of 2013; he already operates Fiola in downtown D.C. To be located on the west side of Washington Harbour, the fish-happy eatery will have inside and outside dining along with a raw bar.

“Fiola Mare will be exceptional complement to the restaurant tenant mix we have at Washington Harbour,” said Bob Murphy, managing principal of MRP Realty. “Having recently completed a significant renovation project at Washington Harbour, Fiola Mare will add to the level of sophistication that we are bringing to our tenants, residents and the community.”

District board of directors vice president, John Asadoorian of Asadoorian Retail Solutions, represented MRP Realty during the transaction, according to MRP.

Dean & DeLuca Reopens One Day After Closure


Georgetown’s Dean & DeLuca grocery store has reopened after being forced to close Feb. 6, due to violations of D.C. food code regulations.

The store’s closing generated lots of media attention in a town and city, known for its rodent problems

The gourmet market’s customers discovered a closed business and locked doors Wednesday morning, which was explained by the “Food Establishment Closure Notice” from the Department of Health, taped to the window. As was stated on the sign, the violations presented “imminent health hazard(s) to the public.”

Among these health threats were “live birds, rat droppings and mice droppings found inside of the café” and “live roaches and mice droppings cited around the cheese section in the customer service and product display area,” according to the Food Establishment Inspection Report. There were eight critical violations and 11 noncritical violations in total.

The report also said that every risk factor “must be abated and approved” by the Department of Health and that a re-inspection fee would be required for the license to be reinstated. The store was cleaned. It passed re-inspection Feb. 7 and was allowed to reopen.

While the M Street operation reopened to the public Thursday afternoon, the patio-style espresso bar — which is outside the store — remains closed until further notice. It may re-open within the store sometime in the next few weeks, one employee said.

Dean & DeLuca’s corporate office issued this statement Feb. 7:

“Yesterday, our Georgetown store was temporarily closed, primarily due to issues in our open-air cafe that arose from major construction next door. We have been working closely with the health department today to immediately address all areas of concern and are pleased to report that the market has re-opened.

“The cafe outside remains closed for service, but only because there are birds that have flown into the open air space. While we are unable to serve food and beverages at the cafe, guests are still welcome to sit there and enjoy food bought inside the market. Additionally, we are in the process of temporarily moving the espresso bar inside, until the outdoor cafe issues are resolved. We hope to re-open with full service as soon as possible.

“As always, Dean & DeLuca is committed to offering our team and guests the cleanest and most hygienic environment, and we will continue to work tirelessly to achieve the highest standards.”

Founded 1977 in the SoHo neighborhood of New York City, Dean & DeLuca opened at 3276 M St., NW, in 1993 — the first of the franchise outside New York City. The Georgetown location has been the site of a market of one sort or another for about 200 years. Today, Dean & DeLuca, headquarted in Wichita, Kan., boasts stores and cafes from California to Singapore and Qatar.
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President Obama Delivers His State of the Union Address (photos)


President Barack Obama delivered the State of the Union Address before a joint session of Congress in the House Chamber at the U.S. Capitol., Feb. 12. The president called for Congress to vote on a variety of gun control proposals that are currently up for debate. The audience included dozens of persons whose lives had been affected by gun violence, including several families from Newtown, Conn., and the parents of Hadiya Pendleton, a young woman shot and killed by a gang member recently in Chicago, and had marched in Washington, D.C., during the president’s inauguration.

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Largest Climate Rally Ever Calls for Obama to Reject Keystone Pipeline (photos)


An estimated 40,000 activists gathered on Feb. 17 in the shadow of the Washington Monument in what has been described as the largest U.S. climate rally ever. The rally preceded a march to the White House to urge President Obama to reject the proposed Keystone XL Pipeline. The event was headlined by Bill McKibben, founder of 350.org, and Michael Brune, the executive dIrector of the Sierra Club. In addition to derailing the pipeline, organizers called for the president to limit greenhouse gas emissions and work for cleaner, renewable energy.

350.org takes its name from the atmospheric concentration of carbon dioxide, in parts per million, which climate scientists and activists say is a safe upper limit for preventing significant climate change. The year 2012 was the hottest year on record. Many scientists believe that the continued burning of greenhouse gasses will raise global temperatures further and increase the likelihood of extreme weather events. In his recent State of the Union address, the president seemed to agree, but gave few specifics on how to combat climate change.

View our photos of the rally and march by clicking on the photo icons below. [gallery ids="142343,142229,142222,142217,142210,142203,142196,142190,142184,142177,142170,142162,142154,142146,142236,142242,142250,142336,142330,142323,142316,142310,142303,142296,142290,142283,142276,142269,142263,142256,142139,142132,142124,142012,142005,141998,141990,141984,141976,142350,141968,142354,141960,142360,141952,142366,142019,142026,142032,142117,142111,142104,142096,142091,142084,142078,142071,142064,142057,142051,142045,142038,101168" nav="thumbs"]

Spicy, Friendly Das Restaurant Warms Up Biz Group Gathering


On a cold Feb. 20 evening, members and guests of the Georgetown Business Association gathered at the warm Das Ethiopian Restaurant at 28th and M Streets, NW, for its monthly networking reception after its board meeting.
Beside earlier discussions on zoning and streetcars, some of the lively biz folks’ thoughts turned to spring and visions of cherry blossoms and Washington’s annual festival. GBA vice president Janine Schoonover said she wants to get a group together for a cherry blossom event in Georgetown. (One of Washington’s biggest annual event — the 101st National Cherry Blossom Festival — starts March 20.)

As for Das, the two-story restaurant provided drinks and heavy hors d’ouevres of the spicy kind that added to the lively conversations. The reception on the second floor prompted an editor of the Georgetowner Newspaper to remind those willing to listen that the very space they stood in was once part of the offices for the Georgetowner, along with another office for Bobby Poe’s music service — to which a few responded: where hasn’t the Georgetowner offices been over the course of seven decades?
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D.C. Council Rebukes Jim Graham


Well, the District Council went and did what Chairman Phil Mendelson said it was going to do. They reprimanded Councilman Jim Graham, D-Ward 1, over accusations that he attempted to intervene in a city lottery contract dispute four years ago. The vote was 11-2; Graham and Ward 8 Council- man Marion Barry were the lone nay votes.

Yet, it probably didn’t settle the issue, except to put a stain on Graham’s council record. Graham was also stripped of his power to oversee District liquor licenses and alcohol issues on the Human Services Committee, which he chairs. They did not strip him of his chairmanship.

The reprimand followed several investigations of Graham and the D.C. Lottery contract. The D.C. Board of Ethics and Government Accountability concluded that they had found “substantial evidence” that Graham had broken the District’s code of employee conduct but did not sanction him, according to a Washington Post report. Another independent investigation by the Metro board, of which Graham was then a member, concluded that Graham had improperly mingled his Council and board duties. In addition, there’s an ongoing investigation of the lottery contract process by the U.S. attorney, not to mention numerous negative editorials in the Washington Post about Graham’s activities and roles.

Graham promised to fight the reprimand at the hearing but remained relatively silent, indicating that the is- sue was now closed.

“There’s the saying, ‘All’s well that ends well,’ ” he told WRC 4 reporter Tom Sherwood. “Well, all’s well that ends.” Graham sounded more than anything relieved and argued that the voters would have their say on him in the 2014 elections, when apparently he will run for his seat yet again.

Mendelson chose to have Graham reprimanded it seems from here because quite a bit of how Graham operates in his various roles give not so much the fact of wrong doing or ethical wrong doing, but the appearance of them.
Often, Graham’s defense has been to claim loudly that has not been indicted or that he was not the target of an investigation, as in the taxi commission bribe scandal which involved his chief of staff.

Ward One voters have repeatedly voted Graham back into office. Newly elected At-large Councilman David Gross said he would not support him next time around.

It seems though that there was little substance behind a public reprimand or even taking away his committee duties. The act smacked a little bit of grandstanding on the Council’s part, designed to do nothing more except perhaps to give the appearance of a serious smackdown and the appearance that the Council is finally serious about ethical matters, given Kwame Brown, Harry Thomas, Jr., Mayor’s Gray’s campaign and other matters.

This is not to suggest that Graham is innocent of everything he’s been accused of, but rather that he should be proven guilty of something. In the very least, the Council might have ordered an investigation of its own—by a legal entity or attorney—as it did in the case of Marion Barry, who was censured after such an investigation of his role in a legal services contract in 2010. That hearing, conducted and ordered by then Council Chairman Vincent Gray had the gravitas it and Barry de- served. Not, apparently, going to happen. ?

Ave atque Vale, Benedicte


The Roman Catholic Church will soon be without a pope. Pope Benedict XVI renounced his absolute powers as if a last lesson to his flock: for them and the church, the Bishop of Rome freely released his grip on the papal crosier because of his failing health.

The 265th pope succeeded the popular John Paul II. While both are seen as high intellects, Benedict often seemed to play Truman to John Paul’s FDR.

The seemingly mild-mannered pope, nevertheless, pursued his goals, sounding conservative or liberal in his speeches and readings because he thinks on a different moral scale than mere secular political observers.

Read Benedict’s encyclical on love or his essays on Jesus Christ.

As the Vatican is vacant of its leader, all manner of rumors, accusations and grief are let loose. One can imagine a scene from “Angels & Demons.”

The revelation of pedophile and perverted priests — and the sinful cover-up by superiors — has poisoned the church. Indeed, for this alone, some condemn the oldest followers of Western Christendom. Regardless, a comprehensive solution must be applied now.

The College of Cardinals is set to do its primary duty. Whom will it choose? Ask the Holy Spirit.

For us, some of whom are Catholic, it is a time of reflection, supercharged by Lent, looking forward to a new pope for Easter.
For all of us living in Washington, look to your Federal City, bookended by high-powered Catholic institutions — Georgetown University on the west and Catholic University, Trinity University and the Shrine of the Immaculate Conception on the east.

These educators are impressive influencers, grounded in religion and guided by art and science, that look toward the masonic overlay of Washington’s architecture. They know more than you know, and there is a reason that they are here.

In the coming weeks, much speculation will be offered about the papacy and the church. Reserve your own judgment, and let some prayers and thanks come into your own thoughts.

Hail and farewell, Benedict XVI. Auf wiedersehen, Joseph Ratzinger.

What is next for this 2,000-year Christian institution, full of human achievements, injuries and foibles?

Expect a miracle. ?

Weekend Round Up February 21, 2013

February 25, 2013

Tickets Lottery for the 2013 Easter Egg Roll Opens Today

February 21st, 2013 at 08:00 AM | Event Website

Don’t miss your chance to join the First Family for the 135th annual White House Easter Egg Roll on Monday April 1. This year’s theme is “Be Healthy, Be Active, Be You” — and more than 35,000 people will be joining the First Family on the South Lawn for activities including games, stories, singing, dancing, and of course, the traditional egg roll.

Address

The White House; 1600 Pennsylvania Ave., NW

DC Shorts WINS!

February 22nd, 2013 at 07:00 PM | $12 | Event Website

DC Shorts WINS! are special showcases of award-winning films from previous D.C. Shorts — and a few we wish we programmed. Some films have Oscar connections, and all of the films have won accolades.
Tickets: $12 /showcase

Showtime: 90 minutes, Age: 18+

Shows:

Friday, February 22, Show 1: 7:00pm Show 2: 9:00pm

Saturday, February 23, Show 3: 7:00pm Show 4: 9:00pm

Sunday, February 24, Show 1: 12:00pm Show 3: 2:00pm

Address

US Navy Memorial Burke Theater; 701 Pennsylvania Avenue, NW

Entertainment Cruises — Black History Month Cruise

February 23rd, 2013 at 11:30 AM | $46.90 | Tel: 866.302.2469 | Event Website

On Feb. 23, guests can enjoy a special narration highlighting momentous events in African American history followed by the music of Duke Ellington, Marvin Gaye, Diana Ross, Prince and more. The DJ’s song-list will cross all genres – from Jazz and Blues to Pop and R&B, showcasing how these great African American artists paved the way for today’s contemporaries. After working up an appetite from all the dancing on deck, guests can indulge in a mouth-watering, multi-course grande buffet.

Address

Gangplank Marina; 600 Water St., SW

AYPO Presents ‘Symphonic Serenade’ Concert with NSO Violist Tsuna Sakamoto

February 24th, 2013 at 08:00 PM | $15 adult, $10 senior (65+), $10 student, free for music teachers | outreach@aypo.org | Tel: 703-642-8051 | Event Website

AYPO Presents “Symphonic Serenade” Concert featuring Violist Tsuna Sakamoto of the National Symphony Orchestra and American Youth Symphonic Orchestra with Conductor Carl J. Bianchi.

PROGRAM

Bartók: Concerto for Viola and Orchestra

Sibelius: “Alla Marcia” from Karelia Suite, Op. 11

Sibelius: Symphony No. 5 in E flat major, Op. 82

Address

Hylton Performing Arts Center; George Mason University; 10960 George Mason Circle; Manassas, Va. 20109

Snuggle With the Stars: DC’s Only Official Oscar Experience

February 24th, 2013 at 6:30 PM | $50 | info@dcshorts.com | Event Website

Washington, D.C.’s only official Oscar experience. Forget the formalities; we are presenting a pajama party. Watch the broadcast on a two-story HD screen while enjoying beverages from Buffalo & Bergen and gourmet snacks from Whole Foods. Age 21+
General pass: $50. Includes: Open bar, buffet and swag bag.

VIP pass: $100. Includes: General pass plus Snuggie, official Academy Award program and poster, passes to watch the nominated shorts at Landmark’s E Street Cinema and West End Cinema.

Address

U.S. Navy Memorial Burke Theater; 701 Pennsylvania Ave., NW

Miner Family Wines Wine Dinner: Capital Wine Festival

February 26th, 2013 at 6:30 PM | $125 | bbaskervill@fairfaxembassyrow.com | Tel: 202 736-1453 | Event Website

Four-course wine dinner featuring wines of Miner Family Wines: Winemaker Gary Bookman hosts the evening’s dinner. This is a great opportunity to experience the vineyard’s sensational portfolio of wines including its single-vineyard Pinot Noir, Oakville Cabernet as well as their proprietal blend, Oracle. Executive Chef Chris Ferrier will create a customized menu to complement the vintner’s selection for the dinner. Dinner will be served in 2100 Prime, providing an intimate dining experience.

Address

The Fairfax at Embassy Row; 2100 Massachusetts Ave., NW