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Yesterday, the Washington Post broke a blockbuster. A memo was leaked detailing all the current House Ethics Committee investigations. And guess what, most of them are Democrats. In fact, the only Republican mentioned in it was Sam Graves, who has been cleared by the Committee.

So what did we learn? The Post says, regarding the inquiry of lawmakers tied to PMA, a now defunct lobbying shop, that “the inquiry was broader than initially believed”. And we learned that there is yet another investigation of Charlie Rangel:

Ethics committee staff members have interviewed House Ways and Means Chairman Charles B. Rangel (D-N.Y.) about one element of the complex investigation of his personal finances, as well as the lawmaker’s top aide and his son. Rangel said he spoke with ethics committee staff members regarding a conference that he and four other members of the Congressional Black Caucus attended last November in St. Martin. The trip initially was said to be sponsored by a nonprofit foundation run by a newspaper. But the three-day event, at a luxury resort, was underwritten by major corporations such as Citigroup, Pfizer and AT&T. Rules passed in 2007, shortly after Democrats reclaimed the majority following a wave of corruption cases against Republicans, bar private companies from paying for congressional travel.

This is in addition to all the other problems that Rangel has, including his not disclosing bank accounts, breaking New York City laws about rent control, and his holding hostage Puerto Rican grandmas for his rum buddies.

David Corn at Politics Daily has a smart take that Rangel will ultimately become a symbol of a corrupt Democratic Congress and Nancy Pelosi’s broken promise to drain the swamp.

Why might the Post article and this widening investigation of ties between lawmakers and lobbyists — neither of which relate to Rangel — matter for him? Though the probe has not yet found any of these House members guilty of wrongdoing, this episode will place pressure on Pelosi and her colleagues to show they’re not a party of sleaze. Consequently, Rangel is more vulnerable to the Republican’s campaign against him. If the PMA investigation heats up, he would make a great sacrificial lamb. And if the GOP continues to pursue Rangel, his party, burdened by this other ethics investigation, will have a tougher time protecting him.

Obviously, Barack Obama had a bad day in Copenhagen today with the failure of Chicago’s bid for the Olympics. Of course, many Chicagoans were mixed. (I was negative for a variety of reasons including the inability of the South Side, where I lived for 8 years, to handle the infrastructural requirements)

But it is worth pointing out that this story will not go away. In two months, Obama will be heading back to Copenhagen for another failure, the UN Climate Conference. He will be going to Copenhagen empty handed, with no climate change bill to show. Indeed, the top story right now at the official site notes that “the honeymoon appears to be over” and compares Obama to former President George W. Bush. Indeed The Economist echoes this language, in a story dated yesterday entitled “The honeymoon between Europe and Barack Obama’s America is over.”

European Union politicians and officials are dismayed that, with a poisonous debate over health reform chewing up his political capital in Congress, Mr Obama may not secure legislation fixing binding emissions targets for America before the climate-change summit in Copenhagen in December. They also think the health-care impasse explains the lack of progress on the Doha world-trade talks. Nor did Europeans enjoy the G20 meeting that Mr Obama hosted in Pittsburgh. Despite hogging a ludicrous number of seats at the table, the EU came away with only one big Europe-specific agreement: alas, for them, it was a plan to cut their voting power at the IMF.

Today, we saw that Obama’s international celebrity is not matched by his international clout. And this message is going to get nailed home with issue after issue, whether it is Afghanistan, the next Copenhagen meeting, or whatever else happens.

It must be tough having to live with a persona and a rhetoric that has nothing to do with reality.

And now for a little bit of European news on a day that may he packed with it due to President Obama abandoning our allies in Eastern Europe for the Russians. Yesterday, the European Parliament re-elected Manuel Barroso as President of the European Commission. Not a big deal right? Not exactly. You see, this is the first time that the leadership of the European Union has been elected without a “Grand Coalition” of the right and left. Instead, the center-right European Peoples’ Party joined forces with the right-leaning (aka econmic) Liberals and Euro-skeptics.

Here’s what Bloomberg reported:

Barroso’s victory in the EU Parliament stemmed from support by the Christian Democrats, the biggest faction, and the pro- business Liberals, the third-largest group. The vote was 382 to 219, with 117 abstentions.

Socialist and Green members, still unhappy that Barroso supported the U.S.-led invasion of Iraq in 2003 when he was Portuguese government leader, refused to back his reappointment while failing to present a rival candidate. The Socialists, the second-biggest faction, said Barroso could pick up their support when putting together his next team of commissioners, who will need Parliament approval as a whole.

The leadership of the European Parliament has an option for the first time in history. They can decide to govern from the center-right. This vote was the first example of this coalition actually working. This follows after a crushing defeat of the left in the European elections and the right governing in the leading European countries: Italy, France, Germany, Poland, Sweden, and others, and David Cameron all but certain to be the next Prime Minister of the United Kingdom. This gives the right the control of the European Council, in addition to the Commission and Parliament.

Let’s see if the leadership of the European Parliament learns this lesson.

We now have a pattern on our hands. When the math behind Barack Obama’s health care plans doesn’t work, Obama attacks math. Now, he doesn’t do it directly. He gets Peter Orzsag to debase his intellect for Obama’s political ends. First, he did it with the IMF score. Then this week he pressured the CBO scorers early this week after their math provided defeat after defeat to his healthcare dreams. And then this weekend, Orzsag has attacked Doug Elmendorf, the CBO director.

Case 1: The IMF. At a G-20 meeting earlier this year, Barack Obama came away empty-handed. The only success was to send money to the IMF. $100b. This wasn’t going to pass on its own, so they attached it to the Supplemental that paid for our troops. And claimed that $100b leaving the treasury costs nothing. According to the Politico, Orzsag had a totally unprecedented meeting with the OMB scorers putting political pressure on them to cook the books. Only a little comment at the time. Oh … and no one bought Orzsag’s nonsense, and the amount became a focus of attention as a bailout of European banks.

Case 2: CBO Whitehouse meeting. Earlier this week, the President meant with the Director of the CBO. According to Jake Tapper, there was a lot of pushback against the unprecedented nature of the meeting:

Said Senate Minority Leader Mitch McConnell, R-Kentucky: “I noticed that the CBO director was sort of called down to the White House yesterday. It strikes me as somewhat akin as the owner of the team asking the umpires to come up to the owner’s box.”

McConnell said that “if the CBO is to have credibility, they’re the umpire. They’re not players in this game.”

CBO is tasked with providing “objective, nonpartisan, and timely analyses to aid in economic and budgetary decisions on the wide array of programs covered by the federal budget.”

Case 3: Keith Hennessey puts it nicely, “CBO Kills the President’s Medicare Comission Proposal”. You see, the CBO found that Obama’s great plan to limit costs was to create a commission only saved $2b. One half of one percent of the total cost. So what happens? Orzsag goes after Elmendorff in all but name:

A final note is worth underscoring. As a former CBO director, I can attest that CBO is sometimes accused of a bias toward exaggerating costs and underestimating savings. Unfortunately, parts of today’s analysis from CBO could feed that perception. For example, and without specifying precisely how the various modifications would work, CBO somehow concluded that the council could “eventually achieve annual savings equal to several percent of Medicare spending…[which] would amount to tens of billions of dollars per year after 2019.” Such savings are welcome (and rare!), but it is also the case that (for good reason) CBO has restricted itself to qualitative, not quantitative, analyses of long-term effects from legislative proposals.  In providing a quantitative estimate of long-term effects without any analytical basis for doing so, CBO seems to have overstepped.

What is going on is crystal clear. The CBO is not caving to extended political pressure. After weeks of Pelosi “scolding” and Baucus aides “expressing frustration” it has come to open attacks on the CBO, its director, and the institution’s integrity.

Well. I have to say, finally Barack Obama is bringing change I can believe in. Chicago-style change.

Most state budgets are in crisis. The Big Picture’s Barry Ritholtz notes that state tax revenue has fallen sharply the last two quarters. The left wing Center for Budget and Policy Priorities notes that “[a]t least 48 states addressed or are facing shortfalls in their budgets for the upcoming year.”

Not Indiana. Under Mitch Daniels’ leadership the state reported a $1.3b surplus. The State Auditor Tim Berry noted that they even raised school funding:

Berry stood in front of charts Friday that show Indiana increased school funding, avoided a tax hike, and maintained a surplus of about 10%. [...]

“Measures that were taken early on by Governor Mitch Daniels to restrain spending have amounted for a large amount of these fiscal reserves,” Berry said.

The Louisville paper notes that tax revenue was even down $1.2b below projections:

The state had $1.33 billion in its main checking account and reserves when the fiscal year ended June 30. That’s roughly the same as one year ago, even though state taxes brought in $1.2 billion less than originally projected.

How’s that for successful governance? No wonder there is a draft movement for Mitch Daniels for President.

(Crossposted from The Next Right)